Interfor Reports Q3’19 Results

EBITDA¹ of $17 million on Sales of $486 million
Net Debt to Invested Capital¹ of 19%; Liquidity of $381 million
Reconfiguration of B.C. Coastal Business is Underway

VANCOUVER, British Columbia, Nov. 07, 2019 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded a net loss in Q3’19 of $35.6 million, or $0.53 per share, compared to a net loss of $11.2 million, or $0.17 per share in Q2’19 and net earnings of $28.2 million, or $0.40 per share in Q3’18. 

Adjusted net loss in Q3’19 was $11.8 million compared to an Adjusted net loss of $16.2 million in Q2’19 and Adjusted net earnings of $28.3 million in Q3’18.

Adjusted EBITDA was $16.8 million on sales of $486.5 million in Q3’19 versus $12.6 million on sales of $481.3 million in Q2’19. 

Included in the Company’s results for Q3’19 are $23.2 million (after-tax) for capital asset write-downs and restructuring costs, or $31.8 million on a pre-tax basis.  This includes $14.0 million of non-cash impairments for capital asset write-downs on buildings, equipment and other assets related to the permanent closure of Interfor’s Hammond sawmill and $17.8 million of accruals for the settlement of various human resource matters related to the reconfiguration of the Company’s B.C. Coastal business and succession arrangements related to the announced retirement of Interfor’s CEO.

Other notable items in the quarter included:

•  Mixed Lumber Price Movements

• Movements in key benchmark prices were mixed quarter-over-quarter with the SYP Composite dropping by US$18 to US$355 per mfbm while the Western SPF Composite benchmark rose by US$15 to US$338 per mfbm and the KD H-F Stud 2x4 9’ benchmark remained relatively flat at US$337 per mfbm.  Interfor’s average lumber selling price fell $20 from Q2’19 to $583 per mfbm.   

•  Production Increased; Balanced with Shipments

• Total lumber production was 685 million board feet, up 38 million board feet from the prior quarter.  Production in the U.S. South region increased to 348 million board feet from 320 million board feet in the preceding quarter as the Monticello and Meldrim sawmills ramped up production after completion of the Phase I capital projects at these locations.  The B.C. and U.S. Northwest regions accounted for 205 million board feet and 131 million board feet, respectively, compared to 187 million board feet and 140 million board feet in Q2’19.  Production in Q2’19 was affected by the curtailments taken in the B.C. Interior in response to weak lumber prices and continuing high log costs.
  
  
• Total lumber shipments were 692 million board feet, including agency and wholesale volumes, or 18 million board feet higher than Q2’19.
  
  
• Lumber inventories at September 30, 2019 were 215 million board feet, up 4 million board feet quarter-over-quarter.

 •  Continued Strong Financial Position

• Net debt ended the quarter at $212.7 million, or 19.4% of invested capital, resulting in available liquidity of $380.9 million. 

• Interfor generated $2.3 million of cash flow from operations before changes in working capital, or $0.03 per share.  Total cash generated from operations was $29.7 million, primarily the result of reduced log inventories in B.C. 
  
  
• Capital spending was $35.7 million in Q3’19, including $25.5 million on high-return discretionary projects, primarily in the U.S. South and the remainder related to maintenance capital and woodlands projects.

 •  Softwood Lumber Duties

• Interfor expensed $12.1 million of duties in the quarter, representing the full amount of countervailing (“CV”) and anti-dumping (“AD”) duties incurred on its Canadian shipments of softwood lumber into the U.S. at a combined rate of 20.23%.
  
  
• Cumulative duties of US$85.8 million have been paid by Interfor since the inception of the current trade dispute and are held in trust by the U.S.  Except for US$3.3 million in respect of overpayments arising from duty rate adjustments, Interfor has recorded the duty deposits as an expense.

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

Reconfiguration of B.C. Coastal Business

On September 3, 2019, Interfor announced a plan to reconfigure its B.C. Coastal business, including the permanent closure of its Hammond sawmill, located in Maple Ridge, B.C., and the reorganization of its forestry and woodlands operations. 

This plan is expected to result in the repatriation of working capital tied up at Hammond, the monetization of related real estate and improved results in the years ahead.  In addition, the Company’s B.C. Coastal forestry and woodlands operations will be reorganized to focus on value realization rather than operational integration with Hammond.

The closure is expected to be completed in the fourth quarter, after the mill’s remaining log and lumber inventories are processed and shipped.

Strategic Capital Plan Update

Interfor’s previously announced Phase I strategic capital projects at the Meldrim, Georgia and Monticello, Arkansas sawmills were substantially completed at the end of the prior quarter and are now in the ramp-up phase.  Total project costs are expected to be US$70.9 million.  As of September 30, 2019, US$69.9 million has been capitalized.

The Phase II projects at the Thomaston and Eatonton sawmills in Georgia and the Georgetown sawmill in South Carolina, with a budget of US$240 million, are on track for completion in various stages over the period of 2019 to 2022.  As of September 30, 2019, US$43.9 million has been capitalized and the projects remain on budget.

Acquisition of B.C. Interior Cutting Rights from Canfor

On June 3, 2019, Interfor entered into a purchase agreement with Canadian Forest Products Ltd. to acquire two replaceable timber licences with annual cutting rights of approximately 349,000 cubic metres, an interest in a non-replaceable forest licence and other related forestry assets in the Adams Lake area of the B.C. Interior and assume certain liabilities for total cash compensation of $60 million.

The transaction remains subject to various consents, including that by the Government of B.C. and is currently targeted to close in the fourth quarter, 2019 as consultation with stakeholders continues.     

Senior Leadership Transition

On August 26, 2019, Interfor announced that long-time President & CEO Duncan Davies will step down on December 31, 2019 and Ian Fillinger, currently the Company’s Senior Vice President & COO, has been appointed President & CEO effective January 1, 2020.  Mr. Fillinger will also serve on the Company's Board of Directors following this date. 

Mr. Davies will also step down from his role as a director of the Company and has agreed to remain with the Company in an advisory capacity through the end of 2020.

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	2019		2018		2019			2019		2018
		(restated)2							(restated)2
Financial Highlights3
Total sales	$MM	486.5		570.5		481.3			1,419.0		1,718.0
Lumber	$MM	403.5		480.3		406.9			1,190.9		1,453.2
Logs, residual products and other	$MM	83.0		90.2		74.4			228.1		264.8
Operating earnings (loss)	$MM	(44.8)		41.8		(18.2)			(79.8)		174.8
Net earnings (loss)	$MM	(35.6)		28.2		(11.2)			(62.1)		124.6
Net earnings (loss) per share, basic	$/share	(0.53)		0.40		(0.17)			(0.92)		1.78
Adjusted net earnings (loss)4	$MM	(11.8)		28.3		(16.2)			(40.7)		133.7
Adjusted net earnings (loss) per share, basic4	$/share	(0.17)		0.40		(0.24)			(0.60)		1.91
Operating cash flow per share (before working capital changes)4	$/share	0.03		1.04		0.15			0.43		3.96
Adjusted EBITDA4	$MM	16.8		72.5		12.6			45.8		282.7
Adjusted EBITDA margin4	%	3.5%		12.7%		2.6%			3.2%		16.5%
Total assets	$MM	1,421.0		1,575.7		1,459.8			1,421.0		1,575.7
Total debt	$MM	264.9		258.9		261.7			264.9		258.9
Net debt	$MM	212.7		3.8		198.2			212.7		3.8
Net debt to invested capital4	%	19.4%		0.4%		17.9%			19.4%		0.4%
Annualized return on invested capital4	%	6.1%		29.1%		4.6%			5.7%		38.6%
Operating Highlights
Lumber production	million fbm	685		674		647			1,978		2,029
Total lumber sales	million fbm	692		685		674			1,987		2,033
Lumber sales - Interfor produced	million fbm	681		675		664			1,955		1,999
Lumber sales - wholesale and commission	million fbm	11		10		10			32		34
Lumber - average selling price5	$/thousand fbm	583		701		603			599		715
Average USD/CAD exchange rate6	1 USD in CAD	1.3204		1.3070		1.3377			1.3292		1.2876
Closing USD/CAD exchange rate6	1 USD in CAD	1.3243		1.2945		1.3087			1.3243		1.2945

Notes:

1. Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
2. Financial information has been restated for implementation of IFRS 16, Leases.
3. Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.
4. Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company’s consolidated financial statements. 
5. Gross sales before duties.
6. Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor’s net debt at September 30, 2019 was $212.7 million, or 19.4% of invested capital, for an increase of $208.9 million from the level at September 30, 2018 and an increase of $148.8 million from December 31, 2018. 

YTD’19 net debt was positively impacted by a stronger Canadian Dollar against the U.S. Dollar as all debt held was denominated in U.S. Dollars; this was partially offset by the Company’s U.S. Dollar cash balances.

	For the 3 months ended Sept. 30,					For the 9 months ended Sept. 30,
Thousands of Dollars	2019		2018				2019			2018
Net debt
Net debt, period opening	$198,209		$34,415			$63,825			$119,300
Net drawing on credit facilities	-		112				755			111
Impact on U.S. Dollar denominated debt from (strengthening) weakening CAD	3,120		(4,572)				(8,735)			7,889
Decrease (increase) in cash and cash equivalents	11,747		61,248				110,665			(31,254)
Decrease (increase) in marketable securities	-		(91,011)				41,766			(91,011)
Impact on U.S. Dollar denominated cash and cash equivalents and marketable securities from strengthening (weakening) CAD	(402)		3,608				4,398			(1,235)
Net debt, period ending, CAD	$212,674		$3,800			$212,674			$3,800

On March 28, 2019, the Company completed a modernization of its credit facilities.  The new facility replaced the U.S. Operating Line, Canadian Operating Line, and Revolving Term Line with one consolidated facility.  The new facility increased credit availability to $350 million and matures in March 2024.

As at September 30, 2019, the Company had net working capital of $216.2 million and available liquidity of $380.9 million, including cash and borrowing capacity on its term line facility.

These resources, in addition to cash generated from operations, will be used to support working capital requirements, debt servicing commitments and capital expenditures.  We believe that Interfor will have enough liquidity to fund operating and capital requirements for the foreseeable future. 

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of September 30, 2019:

	Revolving		Senior
	Term		Secured
Thousands of Canadian Dollars	Line		Notes		Total
Available line of credit	$350,000		$264,860		$614,860
Maximum borrowing available	$350,000		$264,860		$614,860
Less:
Drawings		-		264,860		264,860
Outstanding letters of credit included in line utilization		21,246		-		21,246
Unused portion of facility	$328,754		$            -			328,754
Add:
Cash and cash equivalents						52,186
Available liquidity at September 30, 2019					$380,940

As of September 30, 2019, the Company had commitments for capital expenditures totaling $104.9 million for both maintenance and discretionary capital projects. 

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: Adjusted net earnings (loss), Adjusted net earnings (loss) per share, EBITDA, Adjusted EBITDA, Net debt to invested capital and Operating cash flow per share (before working capital changes) 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
	Sept. 30			Sept. 30			Jun. 30				Sept. 30			Sept. 30
Thousands of Canadian Dollars except number of shares and per share amounts		2019			2018			2019				2019			2018
	(restated)¹										(restated)¹
Adjusted Net Earnings (Loss)
Net earnings (loss)	$(35,648)			$28,173			$(11,159)				$(62,109)			$124,570
Add:
Capital asset write-downs and restructuring costs		31,814			5,848			87				33,566			10,753
Other foreign exchange loss (gain)		(216)			1,847			321				(235)			(144)
Long term incentive compensation expense (recovery)		1,049			(7,503)			(851)				2,181			1,351
Other (income) expense		100			(192)			(6,487)				(6,223)			66
Post closure wind-down costs and losses		-			-			-				-			4
Income tax effect of above adjustments		(8,867)			149			1,866				(7,876)			(2,926)
Adjusted net earnings (loss)	$(11,768)			$28,322			$(16,223)				$(40,696)			$133,674
Weighted average number of shares - basic ('000)		67,253			69,908			67,252				67,284			69,993
Adjusted net earnings (loss) per share	$(0.17)			$0.40			$(0.24)				$(0.60)			$1.91
Adjusted EBITDA
Net earnings (loss)	$(35,648)			$28,173			$(11,159)				$(62,109)			$124,570
Add:
Depreciation of plant and equipment		20,595			20,022			19,410				59,727			60,824
Depletion and amortization of timber, roads and other		8,142			12,301			12,201				30,080			34,919
Capital asset write-downs and restructuring costs		31,814			5,848			87				33,566			10,753
Finance costs		3,784			2,980			3,324				11,284			9,694
Other foreign exchange loss (gain)		(216)			1,847			321				(235)			(144)
Income tax expense (recovery)		(12,804)			9,028			(4,196)				(22,508)			40,645
EBITDA		15,667			80,199			19,988				49,805			281,261
Add:
Long term incentive compensation expense (recovery)		1,049			(7,503)			(851)				2,181			1,351
Other (income) expense		100			(192)			(6,487)				(6,223)			66
Post closure wind-down costs and losses		-			-			-				-			4
Adjusted EBITDA	$16,816			$72,504			$12,650				$45,763			$282,682
Sales	$486,494			$570,486			$481,345				$1,419,002			$1,718,023
Adjusted EBITDA margin		3.5%			12.7%			2.6%				3.2%			16.5%
Net debt to invested capital
Net debt
Total debt	$264,860			$258,900			$261,740				$264,860			$258,900
Cash and cash equivalents		(52,186)			(165,553)			(63,531)				(52,186)			(165,553)
Marketable Securities		-			(89,547)			-				-			(89,547)
Total net debt	$212,674			$3,800			$198,209				$212,674			$3,800
Invested capital
Net debt	$212,674			$3,800			$198,209				$212,674			$3,800
Shareholders' equity		880,854			980,389			911,409				880,854			980,389
Total invested capital	$1,093,528			$984,189			$1,109,618				$1,093,528			$984,189
Net debt to invested capital2		19.4%			0.4%			17.9%				19.4%			0.4%
Operating cash flow per share (before working capital changes)
Cash provided by operating activities	$29,658			$86,719			$32,302				$3,610			$244,516
Cash used in (generated from) operating working capital		(27,336)			(13,926)			(22,443)				25,656			32,710
Operating cash flow (before working capital changes)	$2,322			$72,793			$9,859				$29,266			$277,226
Weighted average number of shares - basic ('000)		67,253			69,908			67,252				67,284			69,993
Operating cash flow per share (before working capital changes)	$0.03			$1.04			$0.15				$0.43			$3.96
Annualized return on invested capital
Adjusted EBITDA	$16,816			$72,504			$12,650				$45,763			$282,682
Invested capital, beginning of period	$1,109,618			$1,006,696			$1,106,255				$1,032,591			$968,852
Invested capital, end of period		1,093,528			984,189			1,109,618				1,093,528			984,189
Average invested capital	$1,101,573			$995,443			$1,107,937				$1,063,060			$976,521
Adjusted EBITDA divided by average invested capital		1.5%			7.3%			1.1%				4.3%			28.9%
Annualization factor		4.0			4.0			4.0				1.3			1.3
Annualized return on invested capital		6.1%			29.1%			4.6%				5.7%			38.6%

Notes:

1. Financial information has been restated for implementation of IFRS 16, Leases.
2. 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, 2019 and 2018 (unaudited)
(thousands of Canadian Dollars except earnings per share)			Three Months			Three Months			Nine Months			Nine Months
			Sept. 30, 2019			Sept. 30, 2018			Sept. 30, 2019			Sept. 30, 2018
						(restated)¹						(restated)¹
Sales			$486,494			$570,486			$1,419,002			$1,718,023
Costs and expenses:
	Production			448,214			469,482			1,309,440			1,351,554
	Selling and administration			9,383			12,580			29,756			40,115
	Long term incentive compensation expense (recovery)			1,049			(7,503)			2,181			1,351
	U.S. countervailing and anti-dumping duty deposits			12,081			15,920			34,043			43,676
	Depreciation of plant and equipment			20,595			20,022			59,727			60,824
	Depletion and amortization of timber, roads and other			8,142			12,301			30,080			34,919
				499,464			522,802			1,465,227			1,532,439
Operating earnings (loss) before restructuring costs				(12,970)			47,684			(46,225)			185,584
Capital asset write-downs and restructuring costs				31,814			5,848			33,566			10,753
Operating earnings (loss)				(44,784)			41,836			(79,791)			174,831
Finance costs				(3,784)			(2,980)			(11,284)			(9,694)
Other foreign exchange gain (loss)				216			(1,847)			235			144
Other income (expense)				(100)			192			6,223			(66)
				(3,668)			(4,635)			(4,826)			(9,616)
Earnings (loss) before income taxes				(48,452)			37,201			(84,617)			165,215
Income tax expense (recovery):
	Current			416			663			809			3,000
	Deferred			(13,220)			8,365			(23,317)			37,645
				(12,804)			9,028			(22,508)			40,645
Net earnings (loss)			$(35,648)			$28,173			$(62,109)			$124,570
Net earnings (loss) per share, basic and diluted			$(0.53)			$0.40			$(0.92)			$1.78

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the three and nine months ended September 30, 2019 and 2018 (unaudited)
(thousands of Canadian Dollars)		Three Months			Three Months			Nine Months			Nine Months
		Sept. 30, 2019			Sept. 30, 2018			Sept. 30, 2019			Sept. 30, 2018
					(restated)¹						(restated)¹
Net earnings (loss)		$(35,648)			$28,173			$(62,109)			$124,570
Other comprehensive income (loss):
Items that will not be recycled to Net earnings (loss):
	Defined benefit plan actuarial gain (loss), net of tax		(1,151)			957			(1,018)		2,846
Items that are or may be recycled to Net earnings (loss):
	Foreign currency translation differences for
	foreign operations, net of tax		6,020			(9,284)			(17,581)		14,670
Total other comprehensive income (loss), net of tax			4,869			(8,327)			(18,599)		17,516
Comprehensive income (loss)		$(30,779)			$19,846			$(80,708)			$142,086

Notes:

1. Financial information has been restated for implementation of IFRS 16, Leases.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2019 and 2018 (unaudited)
(thousands of Canadian Dollars)				Three Months		Three Months			Nine Months			Nine Months
				Sept. 30, 2019		Sept. 30, 2018			Sept. 30, 2019			Sept. 30, 2018
						(restated)¹						(restated)¹
Cash provided by (used in):
Operating activities:
	Net earnings (loss)			$(35,648)		$28,173			$(62,109)			$124,570
	Items not involving cash:
			Depreciation of plant and equipment	20,595			20,022			59,727			60,824
			Depletion and amortization of timber, roads and other	8,142			12,301			30,080			34,919
			Income tax expense (recovery)	(12,804)			9,028			(22,508)			40,645
			Finance costs	3,784			2,980			11,284			9,694
			Other assets	202			241			523			(176)
			Reforestation liability	(1,834)			(2,111)			(2,577)			(684)
			Provisions and other liabilities	6,210			(3,672)			5,206			(3,992)
			Stock options	224			212			541			558
			Write-down of plant, equipment and intangibles	14,583			5,823			16,394			10,687
			Unrealized foreign exchange loss (gain)	(150)			(12)			10			115
			Other expense (income)	(982)			(192)			(7,305)			66
				2,322			72,793			29,266			277,226
	Cash generated from (used in) operating working capital:
			Trade accounts receivable and other	(4,741)			20,766			(25,189)			(3,204)
			Inventories	37,647			951			28,082			(30,975)
			Prepayments	(1,340)			(602)			(7,082)			(3,260)
			Trade accounts payable and provisions	(3,933)			(5,235)			(20,595)			8,005
			Income taxes paid	(297)			(1,954)			(872)			(3,276)
				29,658			86,719			3,610			244,516
Investing activities:
	Additions to property, plant and equipment			(31,951)			(28,968)			(126,781)			(56,133)
	Additions to roads and bridges			(3,767)			(9,473)			(17,272)			(23,641)
	Additions to timber licences and other intangible assets			(5)			(40)			(77)			(90)
	Proceeds on disposal of property, plant and equipment and other			309			324			8,449			509
	Net proceeds from (additions to) marketable securities,
	deposits and other assets			370			(93,354)			47,130			(106,933)
				(35,044)			(131,511)			(88,551)			(186,288)
Financing activities:
	Issuance of share capital, net of expenses			-			-			80			143
	Share repurchases			-			(11,950)			(7,825)			(11,950)
	Interest payments			(3,431)			(2,048)			(8,848)			(7,880)
	Lease liability payments			(2,927)			(2,503)			(8,692)			(7,328)
	Debt refinancing costs			(3)			(67)			(1,194)			(70)
	Change in operating line components of long term debt			-			-			5			(1)
	Additions to long term debt			-			155,909			197,925			155,909
	Repayments of long term debt			-			(155,797)			(197,175)			(155,797)
				(6,361)			(16,456)			(25,724)			(26,974)
Foreign exchange gain (loss) on cash and
	cash equivalents held in a foreign currency			402			(2,144)			(3,301)			2,699
Increase (decrease) in cash				(11,345)			(63,392)			(113,966)			33,953
Cash and cash equivalents, beginning of period				63,531			228,945			166,152			131,600
Cash and cash equivalents, end of period				$52,186		$165,553			$52,186			$165,553

Notes:

1. Financial information has been restated for implementation of IFRS 16, Leases.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, 2019, December 31, 2018 and January 1, 2018 (unaudited)
(thousands of Canadian Dollars)
		Sept. 30, 2019		Dec. 31, 2018		Jan. 1, 2018
				(restated)¹		(restated)¹
Assets
Current assets:
	Cash and cash equivalents	$52,186		$166,152		$131,600
	Marketable securities		-		42,863		-
	Trade accounts receivable and other		113,685		90,384		112,470
	Income taxes receivable		2,869		3,008		1,289
	Inventories		177,216		209,178		165,156
	Prepayments		23,349		16,833		12,186
			369,305		528,418		422,701
Employee future benefits			110		303		502
Deposits and other assets			10,617		16,842		6,404
Right of use assets			31,996		37,778		38,600
Property, plant and equipment			755,130		723,773		669,165
Roads and bridges			29,629		29,829		24,092
Timber licences			61,234		64,153		66,589
Other intangible assets			3,803		5,288		14,170
Goodwill			154,537		158,799		147,081
Deferred income taxes			4,635		133		253
		$1,420,996		$1,565,316		$1,389,557
Liabilities and Shareholders’ Equity
Current liabilities:
	Trade accounts payable and provisions	$128,400		$154,869		$152,355
	Reforestation liability		14,430		13,947		12,873
	Lease liabilities		10,026		10,158		8,019
	Income taxes payable		238		356		224
			153,094		179,330		173,471
Reforestation liability			26,021		28,235		27,535
Lease liabilities			27,063		33,954		36,165
Long term debt			264,860		272,840		250,900
Employee future benefits			13,133		8,687		8,249
Provisions and other liabilities			19,644		16,421		25,808
Deferred income taxes			36,327		57,083		17,877
Equity:
	Share capital		533,563		537,534		555,388
	Contributed surplus		4,357		3,851		8,582
	Translation reserve		66,812		84,393		40,733
	Retained earnings		276,122		342,988		244,849
			880,854		968,766		849,552
		$1,420,996		$1,565,316		$1,389,557
Notes: Financial information has been restated for implementation of IFRS 16, Leases.

Approved on behalf of the Board:

	“L. Sauder”	“Thomas 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.  Generally, statements containing forward-looking information can be identified by the use of words such as: believe, expect, intend, forecast, plan, target, budget, outlook, opportunity, risk, strategy or variations or comparable language, or statements that certain actions, events or results may, could, would, should, might, or will occur or not occur.  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 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 assumptions regarding 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; the effects of 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 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; and the efficacy of information systems security.  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 3.1 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 consolidated financial statements and Management’s Discussion and Analysis for Q3’19 are available at www.sedar.com and www.interfor.com. 

There will be a conference call on Friday, November 8, 2019 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its third quarter 2019 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 9, 2019.  The number to call is 1-855-859-2056, Passcode 3995419.

For further information:
Martin L. Juravsky, Senior Vice President and Chief Financial Officer
(604) 689-6873