Interfor Reports Record Q3’20 Results and Announces Share Buyback Program

EBITDA¹ of $222 million on Sales of $645 million
Net Debt to Invested Capital¹ of 8%; Liquidity of $637 million

BURNABY, British Columbia, Nov. 05, 2020 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded net earnings in Q3’20 of $121.6 million, or $1.81 per share, compared to $3.2 million, or $0.05 per share in Q2’20 and a net loss of $35.6 million, or $0.53 per share in Q3’19. Adjusted net earnings in Q3’20 were $140.0 million compared to $10.6 million in Q2’20 and an Adjusted net loss of $11.8 million in Q3’19.

Adjusted EBITDA was a record $221.7 million on sales of $644.9 million in Q3’20 versus $42.8 million on sales of $396.8 million in Q2’20.

Notable items in the quarter:

• Higher Lumber Prices

• Interfor’s average lumber selling price increased $264 per mfbm from Q2’20 to $910 per mfbm. The key benchmark prices rose significantly quarter-over-quarter with the SYP Composite, Western SPF Composite and KD H-F Stud 2x4 9’ benchmarks increasing by US$320, US$361 and US$349 per mfbm to US$748, US$711 and US$764 per mfbm, respectively.   Interfor’s average selling price lags the key benchmark price changes due to timing differences between orders and shipments.  
• While lumber prices fell sharply in the initial stages of COVID-19, industry-wide production curtailments in Q2’20 and growing demand from repair and renovation activities and U.S. housing starts contributed to the robust price environment during Q3’20.

• Strengthened Financial Position

• Net debt ended the quarter at $88.7 million, or 8.3% of invested capital, resulting in available liquidity of $636.7 million.
• Interfor generated $214.8 million of cash flow from operations before changes in working capital, or $3.19 per share.
• Capital spending was $23.4 million, including $16.2 million on high-return discretionary projects, primarily in the U.S. South. US$84.6 million has been spent on the Company’s Phase II strategic capital plan through September 30, 2020.  
• Reflecting its strengthened financial position and available internal investment opportunities with attractive returns, Interfor has revised its planned capital expenditures for 2020 and 2021 to now total approximately $115.0 million and $150.0 million, respectively.

• Production Increased to Meet Demand

• Total lumber production in Q3’20 was 642 million board feet, representing an increase of 221 million board feet quarter-over-quarter. Production in the B.C. region increased to 193 million board feet from 115 million board feet in the preceding quarter. The U.S. South and U.S. Northwest regions accounted for 331 million board feet and 118 million board feet, respectively, compared to 230 million board feet and 76 million board feet in Q2’20.
• Total lumber shipments were 618 million board feet, including agency and wholesale volumes, or 120 million board feet higher than Q2’20.

• Asset Write-downs and Restructuring Costs

• Asset write-downs and restructuring costs in Q3’20 are $9.8 million (after-tax), or $13.0 million on a pre-tax basis. This includes $10.8 million of non-cash impairments for asset write-downs on buildings, equipment and parts inventory related to the sale of the sawmill in Gilchrist, Oregon.   The sale was completed on October 29, 2020.

• Softwood Lumber Duties

• Interfor expensed $19.7 million of duties in the quarter, representing the full amount of countervailing and anti-dumping duties incurred on its Canadian shipments of softwood lumber into the U.S. at a combined rate of 20.23%. Cumulative duties of US$121.1 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by U.S. Customs and Border Protection.
• On February 3, 2020 the U.S. Department of Commerce issued preliminary revised combined rates of 8.37% for 2017 and 8.21% for 2018. These rates remain preliminary, with final rate determinations not expected until November 2020. At such time, the final rates will be applied to new lumber shipments. No adjustments have been recorded in the financial statements as of September 30, 2020 to reflect the preliminary revised duty rates.

^{1 Refer to Adjusted EBITDA and Net debt to invested capital in the Non-GAAP Measures section}

Normal Course Issuer Bid (“NCIB”)

The Toronto Stock Exchange (“TSX”) has approved the launch by the Company of a NCIB.

The NCIB will allow for the purchase during the twelve-month period commencing on November 11, 2020 and ending on November 10, 2021 of up to 5,981,751 common shares, which represents 10% of the Company’s public float as at November 5, 2020. The Company purchased no common shares under the prior NCIB that expired on March 6, 2020. The Company was authorized to purchase up to 6,652,006 common shares under the prior NCIB.

Under TSX rules, Interfor will be allowed to purchase daily a maximum of 88,590 common shares, representing 25% of the average daily trading volume of 354,363 common shares over the six-month period ending October 31, 2020, subject to certain exemptions for block purchases. As of November 5, 2020, the Company has 67,274,878 common shares issued and outstanding. All purchases will be made through open market transactions through the facilities of the TSX or other Canadian alternative trading systems and will conform to their rules and regulations. The price to be paid by Interfor for any common shares will be the market price at the time of acquisition. All common shares purchased pursuant to the NCIB will be cancelled.

Interfor has also entered into an automatic securities purchase plan agreement with a securities broker under which the broker will act as the Company’s agent to acquire Interfor common shares under the NCIB during the Company’s scheduled blackout periods in the course of the NCIB. Purchases by the broker under the NCIB during these periods will be made at the broker’s discretion, subject to certain parameters established by Interfor prior to each period with respect to price and number of common shares.

The Company believes that, from time to time, the market price of its common shares may be attractive and their purchase would represent a prudent allocation of capital.

Outlook

Near term lumber demand is expected to be impacted by uncertainties related to COVID-19 within the North American economy as well as a traditional fall/winter seasonal slowdown that can be weather dependent.  

Interfor expects lumber demand to continue to grow over the mid-term, as repair and renovation activities and U.S. housing starts benefit from favourable underlying economic fundamentals and trends.   

Interfor’s strategy of maintaining a diversified portfolio of operations allows the Company to both reduce risk and maximize returns on invested capital over the business cycle.

While uncertainty remains as to the duration and extent of the economic impact from the COVID-19 pandemic, Interfor is well positioned with its strong balance sheet and significant available liquidity.

Financial and Operating Highlights¹  

		For the 3 months ended							For the 9 months ended
		Sept. 30		Sept. 30		Jun. 30			Sept. 30		Sept. 30
	Unit	2020		2019		2020			2020		2019
Financial Highlights2
Total sales	$MM	644.9		486.5		396.8			1,521.3		1,419.0
Lumber	$MM	562.4		403.5		322.1			1,263.8		1,190.9
Logs, residual products and other	$MM	82.5		83.0		74.7			257.5		228.1
Operating earnings (loss)	$MM	171.4		(44.8	)	13.3			199.3		(79.8	)
Net earnings (loss)	$MM	121.6		(35.6	)	3.2			131.1		(62.1	)
Net earnings (loss) per share, basic	$/share	1.81		(0.53	)	0.05			1.95		(0.92	)
Adjusted net earnings (loss)3	$MM	140.0		(11.8	)	10.6			151.4		(40.7	)
Adjusted net earnings (loss) per share, basic3	$/share	2.08		(0.17	)	0.16			2.25		(0.60	)
Operating cash flow per share (before working capital changes) 3	$/share	3.19		0.03		0.56			4.32		0.43
Adjusted EBITDA3	$MM	221.7		16.8		42.8			301.1		45.8
Adjusted EBITDA margin3	%	34.4%		3.5%		10.8%			19.8%		3.2%
Total assets	$MM	1,731.9		1,421.0		1,538.8			1,731.9		1,421.0
Total debt	$MM	400.2		264.9		408.8			400.2		264.9
Net debt3	$MM	88.7		212.7		239.1			88.7		212.7
Net debt to invested capital3	%	8.3%		19.4%		21.6%			8.3%		19.4%
Annualized return on invested capital3	%	81.3%		6.1%		14.8%			37.7%		5.7%
Operating Highlights
Lumber production	million fbm	642		685		421			1,690		1,978
Total lumber sales	million fbm	618		692		499			1,758		1,987
Lumber sales - Interfor produced	million fbm	609		681		488			1,729		1,955
Lumber sales - wholesale and commission	million fbm	9		11		11			29		32
Lumber - average selling price4	$/thousand fbm	910		583		646			719		599
Average USD/CAD exchange rate5	1 USD in CAD	1.3321		1.3204		1.3862			1.3541		1.3292
Closing USD/CAD exchange rate5	1 USD in CAD	1.3339		1.3243		1.3628			1.3339		1.3243

Notes:

1. Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
2. Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.
3. Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company’s unaudited condensed consolidated interim financial statements.
4. Gross sales before duties.
5. Based on Bank of Canada foreign exchange rates.
   

Liquidity

Balance Sheet

Interfor’s net debt at September 30, 2020 was $88.7 million, or 8.3% of invested capital, representing a decrease of $136.2 million since December 31, 2019.  

As at September 30, 2020 the Company had net working capital of $452.8 million and available liquidity of $636.7 million, based on the full borrowing capacity under its $350 million Revolving Term Line.

The Revolving Term Line and Senior Secured Notes are subject to financial covenants, including net debt to total capitalization ratios, and an EBITDA interest coverage ratio.

Management believes, based on circumstances known today, that Interfor has sufficient working capital and liquidity to fund operating and capital requirements for the foreseeable future.

	For the 3 months ended Sept. 30,							For the 9 months ended Sept. 30,
Thousands of Dollars		2020			2019				2020			2019
Net debt
Net debt, period opening	$	239,114		$	198,209			$	224,860		$	63,825
Issuance of Senior Secure Notes		-			-				140,770			-
Term Line net drawings (repayments)		(23	)		-				(82	)		755
Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD		(8,647	)		3,120				(278	)		(8,735	)
Decrease (increase) in cash and cash equivalents		(144,849	)		11,747				(285,473	)		110,665
Decrease in marketable securities		-			-				-			41,766
Impact on U.S. Dollar denominated cash and cash equivalents and marketable securities from strengthening (weakening) CAD		3,110			(402	)			8,908			4,398
Net debt, period ending	$	88,705		$	212,674			$	88,705		$	212,674

On March 26, 2020, the Company issued US$50,000,000 of Series F Senior Secured Notes, bearing interest at 3.34%, and US$50,000,000 of Series G Senior Secured Notes, bearing interest at 3.25%. Each series of these Senior Secured Notes have equal payments of US$16,667,000 due on each of March 26, 2028, 2029 and on maturity in 2030.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of September 30, 2020:

	Revolving		Senior
	Term		Secured
Thousands of Canadian Dollars	Line		Notes		Total
Available line of credit and maximum borrowing available	$	350,000	$	400,170	$	750,170
Less:
Drawings		-		400,170		400,170
Outstanding letters of credit included in line utilization		24,773		-		24,773
Unused portion of facility	$	325,227	$	-		325,227
Add:
Cash and cash equivalents						311,465
Available liquidity at September 30, 2020					$	636,692

Interfor’s Revolving Term Line matures in March 2024 and its Senior Secured Notes have maturities principally in the years 2024-2030.

As of September 30, 2020, the Company had commitments for capital expenditures totaling $37.8 million for both maintenance and discretionary capital projects.

Non-GAAP Measures

This MD&A makes reference to the following non-GAAP measures: Adjusted net earnings (loss), Adjusted net earnings (loss) per share, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes), and Return on invested capital which are used by the Company and certain investors to evaluate operating performance and financial position.   These non-GAAP measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

The following table provides a reconciliation of these non-GAAP measures to figures as reported in the Company’s unaudited condensed consolidated interim financial statements prepared in accordance with IFRS:

	For the 3 months ended										For the 9 months ended
	Sept. 30			Sept. 30			Jun. 30				Sept. 30			Sept. 30
Thousands of Canadian Dollars except number of shares and per share amounts		2020			2019			2020				2020			2019
Adjusted Net Earnings (Loss)
Net earnings (loss)	$	121,604		$	(35,648	)	$	3,235			$	131,148		$	(62,109	)
Add:
Asset write-downs and restructuring costs		12,985			31,814			115				13,471			33,566
Other foreign exchange loss (gain)		2,907			(216	)		4,963				8,719			(235	)
Long term incentive compensation expense		5,576			1,049			5,629				2,259			2,181
Other (income) expense		43			100			(586	)			(428	)		(6,223	)
Post closure wind-down costs		3,085			-			-				3,085			-
Income tax effect of above adjustments		(6,206	)		(8,867	)		(2,712	)			(6,875	)		(7,876	)
Adjusted net earnings (loss)	$	139,994		$	(11,768	)	$	10,644			$	151,379		$	(40,696	)
Weighted average number of shares - basic ('000)		67,270			67,253			67,260				67,263			67,284
Adjusted net earnings (loss) per share	$	2.08		$	(0.17	)	$	0.16			$	2.25		$	(0.60	)
Adjusted EBITDA
Net earnings (loss)	$	121,604		$	(35,648	)	$	3,235			$	131,148		$	(62,109	)
Add:
Depreciation of plant and equipment		20,850			20,595			15,601				56,512			59,727
Depletion and amortization of timber, roads and other		7,922			8,142			8,108				26,560			30,080
Asset write-downs and restructuring costs		12,985			31,814			115				13,471			33,566
Finance costs		4,907			3,784			5,185				14,188			11,284
Other foreign exchange loss (gain)		2,907			(216	)		4,963				8,719			(235	)
Income tax expense (recovery)		41,916			(12,804	)		563				45,684			(22,508	)
EBITDA		213,091			15,667			37,770				296,282			49,805
Add:
Long term incentive compensation expense		5,576			1,049			5,629				2,259			2,181
Other (income) expense		43			100			(586	)			(428	)		(6,223	)
Post closure wind-down costs		2,967			-			-				2,967			-
Adjusted EBITDA	$	221,677		$	16,816		$	42,813			$	301,080		$	45,763
Sales	$	644,884		$	486,494		$	396,778			$	1,521,308		$	1,419,002
Adjusted EBITDA margin		34.4%			3.5%			10.8%				19.8%			3.2%
Net debt to invested capital
Net debt
Total debt	$	400,170		$	264,860		$	408,840			$	400,170		$	264,860
Cash and cash equivalents		(311,465	)		(52,186	)		(169,726	)			(311,465	)		(52,186	)
Total net debt	$	88,705		$	212,674		$	239,114			$	88,705		$	212,674
Invested capital
Net debt	$	88,705		$	212,674		$	239,114			$	88,705		$	212,674
Shareholders' equity		983,225			880,854			869,443				983,225			880,854
Total invested capital	$	1,071,930		$	1,093,528		$	1,108,557			$	1,071,930		$	1,093,528
Net debt to invested capital1		8.3%			19.4%			21.6%				8.3%			19.4%
Operating cash flow per share (before working capital changes)
Cash provided by operating activities	$	175,492		$	29,658		$	103,003			$	296,837		$	3,610
Cash used in (generated from) operating working capital		39,346			(27,336	)		(65,439	)			(6,013	)		25,656
Operating cash flow (before working capital changes)	$	214,838		$	2,322		$	37,564			$	290,824		$	29,266
Weighted average number of shares - basic ('000)		67,270			67,253			67,260				67,263			67,284
Operating cash flow per share (before working capital changes)	$	3.19		$	0.03		$	0.56			$	4.32		$	0.43
Annualized return on invested capital
Adjusted EBITDA	$	221,677		$	16,816		$	42,813			$	301,080		$	45,763
Invested capital, beginning of period	$	1,108,557		$	1,109,618		$	1,204,953			$	1,055,842		$	1,032,591
Invested capital, end of period		1,071,930			1,093,528			1,108,557				1,071,930			1,093,528
Average invested capital	$	1,090,244		$	1,101,573		$	1,156,755			$	1,063,886		$	1,063,060
Adjusted EBITDA divided by average invested capital		20.3%			1.5%			3.7%				28.3%			4.3%
Annualization factor		4.0			4.0			4.0				1.3			1.3
Annualized return on invested capital		81.3%			6.1%			14.8%				37.7%			5.7%

Note: 1 Net debt to invested capital as of the period end.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the three and nine months ended September 30, 2020 and 2019 (unaudited)
(thousands of Canadian Dollars except earnings per share)		Three Months			Three Months			Nine Months			Nine Months
		Sept. 30, 2020			Sept. 30, 2019			Sept. 30, 2020			Sept. 30, 2019
Sales		$	644,884		$	486,494		$	1,521,308		$	1,419,002
Costs and expenses:
	Production		394,463			448,214			1,154,825			1,309,440
	Selling and administration		11,992			9,383			30,664			29,756
	Long term incentive compensation expense		5,576			1,049			2,259			2,181
	U.S. countervailing and anti-dumping duty deposits		19,719			12,081			37,706			34,043
	Depreciation of plant and equipment		20,850			20,595			56,512			59,727
	Depletion and amortization of timber, roads and other		7,922			8,142			26,560			30,080
			460,522			499,464			1,308,526			1,465,227
Operating earnings (loss) before write-downs and restructuring cost			184,362			(12,970	)		212,782			(46,225	)
Asset write-downs and restructuring costs			12,985			31,814			13,471			33,566
Operating earnings (loss)			171,377			(44,784	)		199,311			(79,791	)
Finance costs			(4,907	)		(3,784	)		(14,188	)		(11,284	)
Other foreign exchange gain (loss)			(2,907	)		216			(8,719	)		235
Other income (expense)			(43	)		(100	)		428			6,223
			(7,857	)		(3,668	)		(22,479	)		(4,826	)
Earnings (loss) before income taxes			163,520			(48,452	)		176,832			(84,617	)
Income tax expense (recovery):
	Current		1,515			416			1,651			809
	Deferred		40,401			(13,220	)		44,033			(23,317	)
			41,916			(12,804	)		45,684			(22,508	)
Net earnings (loss)		$	121,604		$	(35,648	)	$	131,148		$	(62,109	)
Net earnings (loss) per share, basic and diluted		$	1.81		$	(0.53	)	$	1.95		$	(0.92	)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three and nine months ended September 30, 2020 and 2019 (unaudited)
(thousands of Canadian Dollars)		Three Months			Three Months			Nine Months			Nine Months
		Sept. 30, 2020			Sept. 30, 2019			Sept. 30, 2020			Sept. 30, 2019
Net earnings (loss)		$	121,604		$	(35,648	)	$	131,148		$	(62,109	)
Other comprehensive income (loss):
Items that will not be recycled to Net earnings (loss):
	Defined benefit plan actuarial loss, net of tax		(109	)		(1,151	)		(1,365	)		(1,018	)
Items that are or may be recycled to Net earnings (loss):
	Foreign currency translation differences for foreign operations, net of tax		(8,027	)		6,020			21,656			(17,581	)
Total other comprehensive income (loss), net of tax			(8,136	)		4,869			20,291			(18,599	)
Comprehensive income (loss)		$	113,468		$	(30,779	)	$	151,439		$	(80,708	)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2020 and 2019 (unaudited)
(thousands of Canadian Dollars)				Three Months			Three Months			Nine Months			Nine Months
				Sept. 30, 2020			Sept. 30, 2019			Sept. 30, 2020			Sept. 30, 2019
Cash provided by (used in):
Operating activities:
	Net earnings (loss)			$	121,604		$	(35,648	)	$	131,148		$	(62,109	)
	Items not involving cash:
			Depreciation of plant and equipment		20,850			20,595			56,512			59,727
			Depletion and amortization of timber, roads and other		7,922			8,142			26,560			30,080
			Deferred income tax expense (recovery)		40,401			(13,220	)		44,033			(23,317	)
			Current income tax expense		1,515			416			1,651			809
			Finance costs		4,907			3,784			14,188			11,284
			Other assets		355			202			841			523
			Reforestation liability		(139	)		(1,834	)		(1,989	)		(2,577	)
			Provisions and other liabilities		4,638			6,210			(662	)		5,206
			Stock options		123			224			613			541
			Write-down of plant, equipment and other		9,807			14,583			9,754			16,394
			Unrealized foreign exchange loss (gain)		2,812			(150	)		8,603			10
			Other expense (income)		43			(982	)		(428	)		(7,305	)
				214,838				2,322			290,824			29,266
	Cash generated from (used in) operating working capital:
			Trade accounts receivable and other		(69,994	)		(4,741	)		(100,548	)		(25,189	)
			Inventories		(9,919	)		37,647			57,404			28,082
			Prepayments		(209	)		(1,340	)		1,698			(7,082	)
			Trade accounts payable and provisions		40,035			(3,933	)		46,706			(20,595	)
			Income tax refund (payment)		741			(297	)		753			(872	)
				175,492				29,658			296,837			3,610
Investing activities:
	Additions to property, plant and equipment			(19,736		)		(31,951	)		(65,724	)		(126,781	)
	Additions to roads and bridges			(3,686		)		(3,767	)		(8,829	)		(17,272	)
	Additions to intangible assets			-				(5	)		-			(77	)
	Acquisition of timber license, roads and other assets net of assumed liabilities			-				-			(56,606	)		-
	Proceeds on disposal of property, plant and equipment and other			229				309			1,096			8,449
	Net proceeds from marketable securities,
	deposits and other assets			25				370			123			47,130
				(23,168		)		(35,044	)		(129,940	)		(88,551	)
Financing activities:
	Issuance of share capital, net of expenses			191				-			191			80
	Share repurchases			-				-			-			(7,825	)
	Interest payments			(4,583		)		(3,431	)		(13,092	)		(8,848	)
	Lease liability payments			(3,052		)		(2,927	)		(9,060	)		(8,692	)
	Debt refinancing costs			(8		)		(3	)		(151	)		(1,194	)
	Operating line net drawings (repayments)			(23		)		-			(82	)		5
	Additions to long term debt			-				-			140,770			197,925
	Repayments of long term debt			-				-			-			(197,175	)
				(7,475		)		(6,361	)		118,576			(25,724	)
Foreign exchange gain (loss) on cash and cash equivalents held in a foreign currency				(3,110		)		402			(8,908	)		(3,301	)
Increase (decrease) in cash				141,739				(11,345	)		276,565			(113,966	)
Cash and cash equivalents, beginning of period				169,726				63,531			34,900			166,152
Cash and cash equivalents, end of period				$	311,465		$	52,186		$	311,465		$	52,186

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, 2020 and December 31, 2019 (unaudited)
(thousands of Canadian Dollars)
			Sept. 30, 2020		Dec. 31, 2019
Assets
Current assets:
	Cash and cash equivalents		$	311,465	$	34,900
	Trade accounts receivable and other			189,357		86,608
	Income taxes receivable			76		1,995
	Inventories			128,987		181,577
	Prepayments			19,421		20,449
				649,306		325,529
Employee future benefits				110		673
Deposits and other assets				8,632		9,296
Right of use assets				38,788		32,780
Property, plant and equipment				752,173		739,515
Roads and bridges				20,615		24,353
Timber licences				115,888		60,596
Goodwill and other intangible assets				145,238		142,214
Deferred income taxes				1,131		6,961
			$	1,731,881	$	1,341,917
Liabilities and Shareholders’ Equity
Current liabilities:
	Trade accounts payable and provisions		$	159,370	$	114,358
	Current portion of long term debt			7,225		-
	Reforestation liability			16,673		13,021
	Lease liabilities			12,579		10,105
	Income taxes payable			626		163
				196,473		137,647
Reforestation liability				29,753		27,401
Lease liabilities				31,251		27,718
Long term debt				392,945		259,760
Employee future benefits				12,842		11,843
Provisions and other liabilities				19,390		18,957
Deferred income taxes				66,002		27,609
Equity:
	Share capital			533,958		533,685
	Contributed surplus			5,002		4,471
	Translation reserve			78,415		56,759
	Retained earnings			365,850		236,067
				983,225		830,982
			$	1,731,881	$	1,341,917

Approved on behalf of the Board:

“L. Sauder” Director

“Thomas V. Milroy” Director

FORWARD-LOOKING STATEMENTS

This release contains forward-looking information about the Company’s business outlook, objectives, plans, strategic priorities and other information that is not historical fact. A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information may include words such as: will, could, should, believe, expect, anticipate, intend, forecast, projection, target, outlook, opportunity, risk or strategy. Readers are cautioned that actual results may vary from the forward-looking information in this release, and undue reliance should not be placed on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor’s third quarter and annual Management’s Discussion & Analysis under the heading “Risks and Uncertainties”, which is available on www.interfor.com and under Interfor’s profile on www.sedar.com. Material factors and assumptions used to develop the forward-looking information in this release include volatility in the selling prices for lumber, logs and wood chips; the Company’s ability to compete on a global basis; the availability and cost of log supply; natural or man-made disasters; currency exchange rates; changes in government regulations; the availability of the Company’s allowable annual cut (“AAC”); claims by and treaty settlements with Indigenous peoples; the Company’s ability to export its products; the softwood lumber trade dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia; environmental impacts of the Company’s operations; labour disruptions; information systems security; and the existence of a public health crisis (such as the current COVID-19 pandemic). Unless otherwise indicated, the forward-looking information in this release is based on the Company’s expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information, except as required by law.

ABOUT INTERFOR

Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of approximately 3.0 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.

The Company’s unaudited condensed consolidated interim financial statements and Management’s Discussion and Analysis for Q3’20 are available at www.sedar.com and www.interfor.com.

There will be a conference call on Friday, November 6, 2020 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its third quarter 2020 financial results.

The dial-in number is 1-833-297-9919. The conference call will also be recorded for those unable to join in for the live discussion and will be available until December 6, 2020. The number to call is 1-855-859-2056, Passcode 8550308.

For further information:
Richard Pozzebon, Senior Vice President and Chief Financial Officer
[phone]