Interfor Corporation recorded a net loss in Q1 2024 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 2023 and a net loss of $41.3 million, or $0.80 per share in Q1 2023.
Adjusted EBITDA was a loss of $22.3 million on sales of $813.2 million in Q1 2024 versus a loss of $51.4 million on sales of $785.9 million in Q4 2023 and Adjusted EBITDA of $26.1 million on sales of $829.9 million in Q1 2023.
For the Q1 2024, Interfor's sales were $813.2 million compared to $829.9 million a year ago.
Net debt at quarter-end was $897.4 million, or 34.7% of invested capital, with available liquidity of $299.7 million.
Lumber production totalled 1.1 billion board feet, representing a 33 million board feet decrease over Q4 2023. This decrease reflects the indefinite curtailment of the Philomath, OR sawmill and temporary production curtailments at the Company’s B.C. operations during Q1 2024, 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 2023.
Outlook
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.
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 5.0 billion board feet and offers a diverse line of lumber products to customers around the world.
