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Interfor Reports Q1’24 Results

General News
Interfor Corporation Logo - Lumber Sawmill

Adjusted EBITDA loss of $22 million and Net Loss of $73 million

INTERFOR CORPORATION (“Interfor” or the “Company”) recorded a Net loss in Q1’24 of $72.9 million, or $1.42 per share, compared to a Net loss of $169.0 million, or $3.29 per share in Q4’23 and a Net loss of $41.3 million, or $0.80 per share in Q1’23.

Adjusted EBITDA was a loss of $22.3 million on sales of $813.2 million in Q1’24 versus a loss of $51.4 million on sales of $785.9 million in Q4’23 and Adjusted EBITDA of $26.1 million on sales of $829.9 million in Q1’23.

Notable items:

  • Ongoing Weak Lumber Market
    • Lumber prices continued to reflect an imbalance of lumber supply and demand, with demand continuing to be impacted by the elevated interest rate environment and ongoing economic uncertainty. Lumber prices improved slightly during Q1’24 as reflected in Interfor’s average selling price of $610 per mfbm, up $9 per mfbm versus Q4’23.
    • Lumber production totalled 1.1 billion board feet, representing a 33 million board feet decrease over Q4’23. This decrease reflects the indefinite curtailment of the Philomath, OR sawmill and temporary production curtailments at the Company’s B.C. operations during Q1’24, primarily related to the ongoing weak lumber market conditions and low log inventory levels. Lumber shipments were 1.1 billion board feet, or 54 million board feet higher than Q4’23.
    • On April 30, 2024, Interfor announced plans to reduce its lumber production by approximately 175 million board feet between May and September of 2024, representing just under 10% of its normal operating stance.
  • Strategic Capital Investments
    • Capital spending was $26.0 million, including $15.8 million of discretionary investment focused on the multi-year rebuild of the Thomaston, GA sawmill.
  • Ongoing Monetization of Coastal B.C. Operations
    • The Company sold Coastal B.C. forest tenures totalling approximately 205,000 cubic metres of allowable annual cut (“AAC”) and related assets and liabilities for proceeds of $31.5 million and a gain of $31.2 million. Interfor held approximately 1,187,000 cubic metres of AAC for disposition at March 31, 2024, subject to approvals from the Ministry of Forests.
  • Financial Position
    • Net debt at quarter-end was $897.4 million, or 34.7% of invested capital, with available liquidity of $299.7 million.
    • On March 26, 2024, the Company issued US$33.3 million of Senior Secured Notes, bearing interest at 6.37% with principal repayment due at final maturity on March 26, 2030. The proceeds were used to settle US$33.3 million of principal under the Company’s existing Senior Secured Notes due on March 26, 2024. Interfor’s Senior Secured Notes now have a weighted average interest rate of 5.46% with laddered maturities spanning 2025-2033.
    • Liquidity is expected to benefit over the course of 2024 from the collection of income taxes receivable totalling $64.3 million and the ongoing monetization of Coastal B.C. operations.
  • Softwood Lumber Duties
    • Interfor expensed $7.5 million of duties in the quarter, representing the full amount of countervailing (“CV”) and anti-dumping (“AD”) duties incurred on shipments of softwood lumber from its Canadian operations to the U.S. at a combined rate of 8.05%.
    • On February 1, 2024, the U.S. Department of Commerce issued its preliminary combined all others rate of 13.86% for its fifth administrative review covering shipments for the year ended December 31, 2022. The preliminary rate is subject to change until the final rate determinations, which are expected in mid-2024. At such time, the final combined rate will be applied to new lumber shipments. No adjustments have been recorded in the financial statements as of March 31, 2024 to reflect the preliminary all others duty rate announced.
    • Interfor has cumulative duties of US$560.0 million, or approximately $10.77 per share on an after-tax basis, held in trust by U.S. Customs and Border Protection as at March 31, 2024. Except for US$161.8 million recorded as a receivable in respect of overpayments arising from duty rate adjustments and the fair value of rights to duties acquired, Interfor has recorded the duty deposits as an expense.


North American lumber markets over the near term are expected to remain depressed as the economy continues to adjust to inflationary pressures, elevated interest rates, labour shortages and geo-political uncertainty, and industry-wide lumber production continues to adjust to match demand.

Interfor expects that over the mid-term, lumber markets will continue to benefit from favourable underlying supply and demand fundamentals. Positive demand factors include the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors, while growth in lumber supply is expected to be limited by extended capital project completion and ramp-up timelines, labour availability and constrained global fibre availability.

Interfor’s strategy of maintaining a diversified portfolio of operations in multiple regions allows the Company to both reduce risk and maximize returns on capital over the business cycle. In the event of a sustained lumber market downturn, Interfor maintains flexibility to significantly reduce capital expenditures and working capital levels, and to proactively adjust its lumber production to match demand.


Balance Sheet

Interfor’s Net debt at March 31, 2024 was $897.4 million, or 34.7% of invested capital, representing an increase of $54.7 million from the level of Net debt at December 31, 2023.

As at March 31, 2024 the Company had net working capital of $352.7 million and available liquidity of $299.7 million, based on the available borrowing capacity under its $600.0 million Revolving Term Line (“Term Line”).

The Term Line and Senior Secured Notes are subject to financial covenants, including a net debt to total capitalization ratio 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.

On March 26, 2024, the Company issued US$33.3 million of Series I Senior Secured Notes, bearing
interest at 6.37% with principal repayment due at final maturity on March 26, 2030. The proceeds
were used to settle US$33.3 million of principal under the Company’s existing Series C Senior Secured
Notes due on March 26, 2024.

Capital Resources

Interfor’s Term Line matures in December 2026 and its Senior Secured Notes have maturities in the years 2025-2033.

As of March 31, 2024, the Company had commitments for capital expenditures totaling $48.8 million for both maintenance and discretionary capital projects.

For full first quarter results click here.

About Interfor

Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual lumber production capacity of approximately 5.2 billion board feet and offers a diverse line of lumber products to customers around the world. For more information about Interfor, visit our website at


Richard Pozzebon – Executive Vice President and Chief Financial Officer – (604) 422-3400 

Source: Interfor Corporation