Included in the Company's results for 2Q 2015 is a pre-tax loss of $7.7 millionassociated with the operations of the Tacoma sawmill, which was acquired from Simpson Lumber Company, LLC earlier this year as part of a larger transaction involving a total of four mills.
Excluding the Tacoma loss and certain other items, the Company reported an adjusted net lossof $14.7 million, or $0.21 per share, in 2Q 2015 versus adjusted net earningsof $4.5 million in 1Q 2015 and $21.1 million in 2Q 2014.
Adjusted EBITDA, which excludes the results associated with Tacoma and certain other items, was $12.7 million in 2Q 2015 versus $31.8 million in 1Q 2015 and $47.3 million in 2Q 2014.
"The decision to exit the Tacoma sawmill was taken after much analysis and deliberation," said Duncan Davies, Interfor's President and CEO. "We understood at the time the mill was acquired that a turnaround was required at Tacoma. While good progress has been made from an operating standpoint, the drop in product prices experienced in 2Q 2015 resulted in operating losses greater than expected when the mill was acquired. In the face of continued uncertainty, we have concluded that we would be better served to exit the mill and to redeploy the capital associated with the facility elsewhere within our system. We understand the uncertainty this decision brings to the mill's employees and to others associated with the operation and will do everything we can to bring matters to conclusion as soon as possible."
Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of 3.2 billion board feet and offers one of the most diverse lines of lumber products to customers around the world.
