Adjusted EBITDA of $129.5 million and Net Earnings of $3.5 million

BURNABY, British Columbia, Nov. 03, 2022 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded Net earnings in Q3’22 of $3.5 million, or $0.06 per share, compared to $269.9 million, or $4.92 per share in Q2’22 and $65.6 million, or $1.05 per share in Q3’21. Adjusted net earnings in Q3’22 were $31.5 million compared to $280.2 million in Q2’22 and $46.7 million in Q3’21.

Adjusted EBITDA was $129.5 million on sales of $1.0 billion in Q3’22 versus $428.6 million on sales of $1.4 billion in Q2’22.

Notable items in the quarter:

  • Lumber Production Balanced with Demand
    • Lumber production totaled 986 million board feet, representing a decrease of 30 million board feet quarter-over-quarter. The U.S. South and U.S. Northwest regions accounted for 470 million board feet and 159 million board feet, respectively, compared to 467 million board feet and 163 million board feet in Q2’22. The Eastern Canada Operations produced 198 million board feet versus 211 million board feet in Q2’22. Production in the B.C. region decreased to 159 million board feet from 174 million board feet in Q2’22, in part due to the sale of the Acorn sawmill during Q2’22.
    • Lumber shipments were 1.1 billion board feet, or 18 million board feet lower than Q2’22, leading to a reduction of lumber inventories by 36 million board feet during the quarter. Lumber inventories ended the quarter within our target range.
  • Moderating Lumber Demand
    • Lumber demand moderated during the quarter due in part to rising interest rates across North America, contributing to significantly lower lumber prices quarter-over-quarter. Interfor’s average selling price was $800 per mfbm, down $304 per mfbm versus Q2’22. The SYP Composite, Western SPF Composite, KD H-F Stud 2x4 9’ and ESPF Composite price benchmarks decreased quarter-over-quarter by US$127, US$287, US$264 and US$281 per mfbm to US$555, US$550, US$627 and US$657 per mfbm, respectively.
  • Financial Flexibility Maintained
    • Net debt ended the quarter at $249.7 million, or 10.5% of invested capital, resulting in ample available liquidity of $601.4 million.
  • DeQuincy, LA Sawmill at Full Production
    • The DeQuincy, LA sawmill, with an annual two-shift capacity of 200 million board feet, reached its full production run-rate in Q3 2022.
  • Strategic Capital Investments
    • Capital spending was $86.1 million, including $50.8 million on discretionary projects. The majority of this discretionary spending was focused on the multi-year rebuilds of the Eatonton, GA and Thomaston, GA sawmills, a new planer at the Castlegar, B.C. sawmill and upgrades to the Perry, GA sawmill.   
    • The comprehensive rebuild of the Eatonton, GA sawmill was successfully completed during the quarter and it is currently ramping up as expected towards the designed production capacity of 230 million board feet per year.
  • Substantial Issuer Bid (“SIB”)
    • On July 26, 2022, Interfor announced a SIB pursuant to which the Company offered to purchase up to $100.0 million in value of its outstanding common shares for cancellation from holders of common shares for cash. The SIB proceeded by way of a “modified Dutch auction” procedure with a tender price range from $29.00 to $34.00 per common share.
    • On September 12, 2022, the Company purchased for cancellation 3,355,704 common shares for total consideration of $100.0 million at a price of $29.80 per share or 0.72 times book value per share at September 30, 2022.
  • Softwood Lumber Duties Rate Adjustment
    • In Q3'22, the U.S. Department of Commerce (“DoC”) published the final rates for countervailing (“CV”) and anti-dumping (“AD”) duties based on the results of its third administrative review (“AR3”) covering shipments for the year ended December 31, 2020. The final combined rate for 2020 was 8.59%, compared to the cash deposit rate of 20.23% from January to November 2020 and 8.99% for December 2020. To reflect the lower amended final rates for 2020, Interfor recorded a $26.1 million reduction to duties expense in Q3'22 and a corresponding receivable on its balance sheet.
    • Interfor has cumulative duties of US$418.9 million held in trust by U.S. Customs and Border Protection as at September 30, 2022. Except for US$124.2 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.

Acquisition of Chaleur Forest Products

On October 3, 2022, the Company announced it had reached an agreement with an affiliate of the Kilmer Group to acquire 100% of the equity interests in the entities comprising Chaleur Forest Products (“Chaleur”) for a purchase price of $325.0 million, which includes $31.0 million of net working capital. In addition, Interfor will assume Chaleur’s CV and AD duty deposits at closing, for consideration equal to 55% of the total deposits on an after-tax basis. The acquisition includes two sawmill operations located in Belledune and Bathurst, New Brunswick with a combined annual lumber production capacity of 350 million board feet, and a woodlands management division based in Miramichi, New Brunswick that manages approximately 30% of the total Crown forest in New Brunswick.

The transaction remains subject to customary conditions and regulatory approvals for a transaction of this kind and is currently expected to close in the fourth quarter of 2022.

Renewal of NCIB

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

The NCIB will allow for the purchase during the twelve-month period commencing on November 11, 2022 and ending on November 10, 2023 of up to 5,105,002 common shares, which represents 10% of the Company’s public float as at October 28, 2022. Under the prior NCIB that expires on November 10, 2022, the Company was authorized to purchase and purchased 6,041,701 common shares at a volume weighted average price of $37.60 per common share.

Under TSX rules, Interfor will be allowed to purchase daily a maximum of 73,486 common shares, representing 25% of the average daily trading volume of the Company’s common shares over the six-month period ending October 31, 2022, subject to certain exemptions for block purchases. As of October 28, 2022, the Company had 51,434,895 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 continues to believe that, from time to time, the market price of its common shares may be attractive and their purchase would represent a prudent use of its capital to increase shareholder value.

Outlook

North American lumber markets over the near term are expected to be volatile as the economy continues to adjust to inflationary pressures, higher interest rates, supply chain constraints, labour shortages and geo-political uncertainty.

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 and constrained overall 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. Interfor is well positioned with its strong balance sheet and significant available liquidity to continue pursuing its strategic plans despite ongoing economic and geo-political uncertainty globally.

Financial and Operating Highlights1  

  For the 3 months ended For the 9 months ended
  Sept. 30Sept. 30Jun. 30 Sept. 30Sept. 30
 Unit202220212022 20222021
        
Financial Highlights2       
Total sales$MM1,035.6664.31,389.1 3,773.72,613.3
Lumber$MM837.8559.61,190.8 3,241.12,334.9
Logs, residual products and other$MM197.8104.7198.3 532.6278.4
Operating earnings$MM75.954.8385.9 974.4978.7
Net earnings$MM3.565.6269.9 670.4749.4
Net earnings per share, basic$/share0.061.054.92 11.9511.61
Adjusted net earnings3$MM31.546.7280.2 704.1750.9
Adjusted net earnings per share, basic3$/share0.580.745.11 12.5511.63
Operating cash flow per share (before working capital changes)3,5$/share(0.02)1.094.43 10.8614.42
Adjusted EBITDA3$MM129.593.9428.6 1,128.21,097.3
Adjusted EBITDA margin3%12.5%14.1%30.9% 29.9%42.0%
        
Total assets$MM3,294.62,488.73,269.5 3,294.62,488.7
Total debt$MM396.4375.3372.6 396.4375.3
Net debt3$MM249.7(133.8)102.0 249.7(133.8)
Net debt to invested capital3%10.5%(9.3%)4.6% 10.5%(9.3%)
Annualized return on capital employed3%5.6%16.0%52.9% 47.8%69.2%
        
Operating Highlights       
Lumber productionmillion fbm9867311,016 2,9182,133
Lumber salesmillion fbm1,0647531,082 2,9892,133
Lumber - average selling price4$/thousand fbm8007441,104 1,0841,095
        
Average USD/CAD exchange rate61 USD in CAD1.30561.26001.2768 1.28281.2513
Closing USD/CAD exchange rate61 USD in CAD1.37071.27411.2886 1.37071.2741

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 including duties.
  5. Financial information has been adjusted for a reclassification in the presentation of unrealized foreign exchange loss (gain) within cashflow from operations resulting in a $/share change of $(0.06) – Q3 2021; $0.45 - Q2 2022; and $(0.06) – YTD Q3 2021.
  6. Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor’s Net debt at September 30, 2022 was $249.7 million, or 10.5% of invested capital, representing an increase of $412.6 million from the level of Net debt at December 31, 2021.

As at September 30, 2022 the Company had net working capital of $513.1 million and available liquidity of $601.4 million, based on the available borrowing capacity under its $500 million Revolving Term Line.

The Revolving 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.

 For the 3 months ended
Sept. 30,
 For the 9 months ended
Sept. 30,
Thousands of Dollars20222021 20222021
      
Net debt     
Net debt (cash), period opening$101,991$(490,682) $(162,886)$(75,432)
Repayments of Senior Secured Notes-- (7,005)(6,671)
Revolving Term Line net drawings (repayments)-1 (3,850)1
Impact on U.S. Dollar denominated debt from weakening CAD23,74110,221 31,54138
Decrease (increase) in cash and cash equivalents130,156365,553 406,460(48,016)
Impact on U.S. Dollar denominated cash and cash equivalents from weakening CAD(6,170)(18,922) (14,542)(3,749)
Net debt (cash), period ending$249,718$(133,829) $249,718$(133,829)

On December 17, 2021, the Company completed an early renewal and expansion of its Revolving Term Line. The commitment under the facility was increased by $150 million to a total of $500 million, and the term was extended from March 2024 to December 2026.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of September 30, 2022:

 RevolvingSenior 
 TermSecured 
Thousands of Canadian DollarsLineNotesTotal
Available line of credit and maximum borrowing available$500,000$396,361$896,361
Less:   
Drawings-396,361396,361
Outstanding letters of credit included in line utilization45,293-45,293
Unused portion of facility$454,707$           -454,707
Add:   
Cash and cash equivalents  146,643
Available liquidity at September 30, 2022  $601,350

Interfor’s Revolving Term Line matures in December 2026 and its Senior Secured Notes have maturities principally in the years 2024-2030.

As of September 30, 2022, the Company had commitments for capital expenditures totaling $199.6 million for both maintenance and discretionary capital projects.

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: Adjusted net earnings, Adjusted net earnings per share, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes), and Annualized return on capital employed 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 audited consolidated financial statements (unaudited for interim periods) prepared in accordance with IFRS:

 For the 3 months ended For the 9 months ended
Thousands of Canadian Dollars except number of shares and per share amountsSept. 30Sept. 30Jun. 30 Sept. 30Sept. 30
202220212022 20222021
       
Adjusted Net Earnings       
Net earnings$ 3,501$65,630$269,881 $670,414$749,358
Add:      
Asset write-downs and restructuring costs7639971,088 5,0493,352
Other foreign exchange loss (gain)46,918(9,104)20,299 54,394(2,113)
Long-term incentive compensation expense (recovery)2,5034,809(10,403) (4,229)23,624
Other expense (income) excluding business interruption insurance(11,857)(22,571)3,085 (9,167)(23,522)
Post closure wind-down costs (recoveries)-(24)- -451
Income tax effect of above adjustments(10,320)6,956(3,787) (12,313)(264)
Adjusted net earnings    $31,508$46,693    $280,163 $704,148$750,886
Weighted average number of shares - basic ('000)54,096 62,741 54,874  56,089 64,539
Adjusted net earnings per share$0.58$0.74$5.11 $12.55$11.63
       
Adjusted EBITDA      
Net earnings$ 3,501$65,630$269,881 $670,414$749,358
Add:      
Depreciation of plant and equipment40,55125,89941,647 115,31170,090
Depletion and amortization of timber, roads and other9,7807,3969,154 28,05921,033
Finance costs1,4784,4444,357 11,00213,405
Income tax expense35,83116,43989,474 257,331241,617
EBITDA91,141119,808414,513 1,082,1171,095,503
Add:      
Long-term incentive compensation expense (recovery)2,5034,809(10,403) (4,229)23,624
Other foreign exchange loss (gain)46,918(9,104)20,299 54,394(2,113)
Other expense (income) excluding business interruption insurance(11,857)(22,571)3,085 (9,167)(23,522)
Asset write-downs and restructuring costs7639971,088 5,0493,352
Post closure wind-down costs (recoveries)-(24)- -451
Adjusted EBITDA$129,468$93,915$428,582 $1,128,164$1,097,295
Sales$1,035,597$664,274$1,389,050 3,773,684$2,613,251
Adjusted EBITDA margin12.5%14.1%30.9% 29.9%42.0%
       
Net debt to invested capital      
Net debt      
Total debt$396,361$375,328$372,620 $396,361$375,328
Cash and cash equivalents(146,643)(509,157)(270,629) (146,643)(509,157)
Total net debt$249,718$(133,829)$101,991 $249,718$(133,829)
Invested capital      
Net debt$249,718$(133,829)$101,991 $249,718$(133,829)
Shareholders' equity2,123,3071,567,0632,106,097 2,123,3071,567,063
Total invested capital$2,373,025$1,433,234$2,208,088 $2,373,025$1,433,234
Net debt to invested capital (1)10.5%(9.3%)4.6% 10.5%(9.3%)
       
Operating cash flow per share (before working capital changes)(2)      
Cash provided by operating activities$47,031$196,375$393,806 $722,051$966,178
Cash generated from operating working capital(47,908)(127,858)(150,755) (113,185)(35,757)
Operating cash flow (before working capital changes)$(877)$68,517$243,051 $608,866$930,421
Weighted average number of shares - basic ('000)54,096 62,741 54,874  56,089 64,539
Operating cash flow per share (before working capital changes)$(0.02)$1.09$4.43 $10.86$14.42
       
Annualized return on capital employed      
Net earnings$3,501$65,630$269,881 $670,414$749,358
Add:      
Finance costs1,4784,4444,357 11,00213,405
Income tax expense35,83116,43989,474 257,331241,617
Earnings before income taxes and finance costs$40,810$86,513$363,712 $938,747$1,004,380
Capital Employed      
Total assets$3,294,576$2,488,693$3,269,508 $3,294,576$2,488,693
Current liabilities(378,779)(307,349)(421,383) (378,779)(307,349)
Less:      
Current portion of long-term debt7,4256,9016,980 7,4256,901
Current portion of lease liabilities15,57811,92114,776 15,57811,921
Capital employed, end of period$2,938,800$2,200,166$2,869,881 $2,938,800$2,200,166
Capital employed, beginning of period2,869,8812,142,7782,630,448 2,303,1771,672,103
Average capital employed$2,904,340$2,171,472$2,750,164 $2,620,989$1,936,135
Earnings before income taxes and finance costs divided by average
capital employed
1.4%4.0%13.2% 35.8%51.9%
Annualization factor4.04.04.0 1.31.3
Annualized return on capital employed5.6%16.0%52.9% 47.8%69.2%

Notes:
(1) Net debt to invested capital as of the period end.
(2) Financial information has been adjusted for a reclassification in the presentation of unrealized foreign exchange loss (gain) within cashflow from operations resulting in a $/share change of $(0.06) – Q3 2021; $0.45 - Q2 2022; and $(0.06) – YTD Q3 2021.


CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the three and nine months ended September 30, 2022 and 2021 (unaudited)
(thousands of Canadian Dollars except earnings per share)Three MonthsThree MonthsNine MonthsNine Months
 Sept. 30, 2022Sept. 30, 2021Sept. 30, 2022Sept. 30, 2021
     
Sales$1,035,597$664,274$3,773,684$2,613,251
Costs and expenses:    
Production902,844550,4942,535,9621,439,990
Selling and administration15,64813,72749,37838,742
Long-term incentive compensation expense (recovery)2,5034,809(4,229)23,624
U.S. countervailing and anti-dumping duty deposits(12,363)6,11469,76537,675
Depreciation of plant and equipment40,55125,899115,31170,090
Depletion and amortization of timber, roads and other9,7807,39628,05921,033
 958,963608,4392,794,2461,631,154
     
Operating earnings before write-downs and restructuring costs76,63455,835979,438982,097
     
Asset write-downs and restructuring costs7639975,0493,352
Operating earnings75,87154,838974,389978,745
     
Finance costs(1,478)(4,444)(11,002)(13,405)
Other foreign exchange gain (loss)(46,918)9,104(54,394)2,113
Other income11,85722,57118,75223,522
 (36,539)27,231(46,644)12,230
     
Earnings before income taxes39,33282,069927,745 990,975
     
Income tax expense (recovery):    
Current27,498(14,737)242,906203,576
Deferred8,33331,17614,42538,041
 35,83116,439257,331241,617
     
Net earnings $3,501$65,630$670,414$749,358
     
Net earnings per share    
Basic$0.06$1.05$11.95$11.61
Diluted$0.06$1.04$11.91$11.58


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three and nine months ended September 30, 2022 and 2021 (unaudited)
(thousands of Canadian Dollars)Three MonthsThree MonthsNine MonthsNine Months
 Sept. 30, 2022Sept. 30, 2021Sept. 30, 2022Sept. 30, 2021
     
Net earnings
$3,501$65,630$670,414$749,358
     
Other comprehensive income:    
Items that will not be recycled to Net earnings:    
Defined benefit plan actuarial gain (loss), net of tax(1,202)9635206,545
     
Items that are or may be recycled to Net earnings:    
Foreign currency translation differences for foreign operations, net of tax114,99128,841142,88611,078
Total other comprehensive income, net of tax113,78929,804143,40617,623
     
Comprehensive income $117,290$95,434$813,820$766,981


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2022 and 2021 (unaudited)
(thousands of Canadian Dollars)Three MonthsThree MonthsNine MonthsNine Months
 Sept. 30, 2022Sept. 30, 2021Sept. 30, 2022Sept. 30, 2021
     
Cash provided by (used in):    
Operating activities:    
Net earnings$3,501$65,630$670,414$749,358
Items not involving cash:    
Depreciation of plant and equipment40,55125,899115,31170,090
Depletion and amortization of timber, roads and other9,7807,39628,05921,033
Deferred income tax expense8,33331,17614,42538,041
Current income tax expense (recovery)27,498(14,737)242,906203,576
Finance costs1,4784,44411,00213,405
Other assets(27,533)(155)(30,020)69
Reforestation liability(2,920)(1,033)(2,849)(1,724)
Provisions and other liabilities(1,814)3,386(27,522)10,273
Stock options237247691610
Write-down of plant and equipment8361,0053,1763,040
Unrealized foreign exchange loss (gain)42,712(10,266)50,924(2,103)
Other income(11,857)(22,571)(18,752)(23,522)
Income taxes paid(91,679)(21,904)(448,899)(151,725)
 (877)68,517608,866930,421
Cash generated from (used in) operating working capital:    
Trade accounts receivable and other19,37655,97935,073(16,558)
Inventories42,56237,22175,4484,060
Prepayments7551,777(5,853)(2,936)
Trade accounts payable and provisions(14,785) 32,8818,51751,191
 47,031 196,375722,051966,178
     
Investing activities:    
Additions to property, plant and equipment(82,480)(38,019)(194,442)(100,613)
Additions to roads and bridges(3,587)(5,932)(7,646)(13,129)
Acquisitions-(466,311)(536,087)(539,941)
Proceeds on disposal of property, plant and equipment20,64039,77332,01145,749
Investment in GreenFirst Forest Products Inc.--(55,648)-
Net additions to deposits and other assets(3,406)(993)(3,238)(111)
 (68,833)(471,482)(765,050)(608,045)
     
Financing activities:    
Issuance of share capital, net of expenses523084292,654
Share repurchases, net of expenses
(100,369)(83,131)(327,606)(152,869)
Dividend paid---(130,625)
Interest payments(3,791)(4,221)(13,117)(12,640)
Lease liability payments(4,246)(3,403)(12,049)(9,967)
Debt refinancing costs--(263)-
Term line net drawings (repayments)-1(3,850)1
Repayments of Senior Secured Notes--(7,005)(6,671)
 (108,354)(90,446)(363,461)(310,117)
     
Foreign exchange gain on cash and cash equivalents held in a foreign currency6,17018,92214,5423,749
Increase (decrease) in cash(123,986)(346,631)(391,918)51,765
     
Cash and cash equivalents, beginning of period270,629855,788538,561457,392
     
Cash and cash equivalents, end of period$146,643$509,157$146,643$509,157


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, 2022 and December 31, 2021 (unaudited)
(thousands of Canadian Dollars)Sept. 30, 2022Dec. 31, 2021
   
Assets  
Current assets:  
Cash and cash equivalents$146,643$538,561
Trade accounts receivable and other253,673147,764
Income tax receivable34,57512,776
Inventories426,680250,481
Prepayments30,32916,125
 891,900965,707
   
Employee future benefits18,0878,338
Deposits and other assets234,53452,221
Right of use assets33,83733,547
Property, plant and equipment1,566,1451,067,754
Roads and bridges34,54227,101
Timber licences143,105106,136
Goodwill and other intangible assets371,936342,291
Deferred income taxes490415
   
 $3,294,576$2,603,510
   
Liabilities and Shareholders’ Equity  
Current liabilities:
  
Bank indebtedness$-$2,202
Trade accounts payable and provisions324,461218,825
Current portion of long-term debt7,4256,868
Reforestation liability19,11016,670
Lease liabilities15,57812,239
Income taxes payable12,20564,838
 378,779321,642
   
Reforestation liability26,93229,250
Lease liabilities19,95226,850
Long-term debt388,936366,605
Employee future benefits9,8139,069
Provisions and other liabilities26,93543,686
Deferred income taxes319,922170,435
   
Equity:  
Share capital408,886484,721
Contributed surplus5,2014,694
Translation reserve201,30658,420
Retained earnings1,507,9141,088,138
   
 2,123,3071,635,973
   
 $3,294,576$2,603,510


Approved on behalf of the Board:
    
 L. Sauder” T.V. Milroy 
  Director 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 and Analysis under the heading “Risks and Uncertainties”, which are 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; Indigenous reconciliation; the Company’s ability to export its products; the softwood lumber trade dispute between Canada and the U.S.; environmental impacts of the Company’s operations; labour disruptions; information systems security; and the existence of a public health crisis. Unless otherwise indicated, the forward-looking statements in this release are based on the Company’s expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law.

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 4.8 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 www.interfor.com.

The Company’s unaudited condensed consolidated interim financial statements and Management’s Discussion and Analysis for Q3’22 are available at www.sedar.com and www.interfor.com.

There will be a conference call on Friday, November 4, 2022 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its third quarter 2022 financial results.

The dial-in number is 1-888-396-8049. The conference call will also be recorded for those unable to join in for the live discussion and will be available until December 4, 2022. The number to call is 1-877-674-7070, Passcode 771071#.

For further information:
Richard Pozzebon, Executive Vice President and Chief Financial Officer
(604) 422-3400