Interfor (IFP) Q4 2023 earnings summary

Executive summary

• Q4’23 net loss was $169.0 million, or $3.29 per share, with an Adjusted EBITDA loss of $51.4 million on sales of $785.9 million.

• 32 facilities and 5.2 BBF of capacity span major North American timber regions; long-term strategy emphasizes geographic diversification, mill investment and disciplined capital allocation.

Financial highlights

• Q4’23 sales were $785.9 million versus $828.1 million in Q3’23 and $810.3 million in Q4’22; operating loss was $174.2 million.

• Q4’23 Adjusted EBITDA loss was $51.4 million, or 6.5% of sales, versus income of $31.9 million in Q3’23 and a loss of $68.7 million in Q4’22.

• FY2023 sales were $3,315.7 million, with an operating loss of $252.4 million and net loss of $266.8 million, or $5.19 per share; FY2022 had net earnings of $598.2 million.

• 2023 revenue mix: softwood lumber 80%, wood chips and other by-products 9%, logs 7%, and other wood products 4%.

Outlook and guidance

• 2024 planned capital expenditures were reduced to $90 million from a preliminary $140 million estimate, reflecting weak markets, inflation and reassessed project returns.

• Near-term North American lumber markets are expected to remain depressed; mid-term demand is supported by aging U.S. housing stock, housing shortages and demographic factors.

• Production can be adjusted to demand, with capital expenditures and working capital reducible if the downturn is sustained.

• Expected Coastal B.C. tenure sales over the next 12–24 months are subject to Ministry of Forests approvals and are expected to generate proceeds above the remaining provision.