In This Article:
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Adjusted EBITDA: Negative $22 million.
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Total Revenue: $693 million, a 10% decline quarter-over-quarter.
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Net Loss: $106 million, including $91 million in noncash impairments.
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Operating Cash Flow: $38 million, supported by $55 million in tax refunds and $7 million release of working capital.
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Financial Leverage: Relatively flat at 36% quarter-over-quarter.
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Available Liquidity: Over $350 million.
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Lumber Shipment Volume: Decreased by 10% quarter-over-quarter.
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Average Realized Lumber Price: Dropped by 5% quarter-over-quarter.
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Production Cost per Unit: Flat quarter-over-quarter despite lower volume.
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Capital Expenditures 2024: Expected to be approximately $70 million.
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Capital Expenditures 2025: Preliminary guidance of approximately $75 million.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Interfor Corp (IFSPF) generated positive cash flow from operations despite weak earnings, aided by tax refunds and reduced working capital.
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Available liquidity increased to over $350 million, providing a strong financial position.
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Lumber prices have improved by over 20% since early July, indicating a potential market recovery.
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The company is well-positioned to benefit from the rebalancing of supply and demand in the lumber industry.
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Interfor Corp (IFSPF) has secured new volume contracts, indicating strong customer interest in securing supply for 2025.
Negative Points
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Interfor Corp (IFSPF) reported an adjusted EBITDA loss of $22 million for Q3, reflecting ongoing challenges in the lumber market.
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Total revenue declined by 10% quarter-over-quarter, driven by a decrease in lumber shipment volume and lower average realized prices.
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The company incurred a net loss of $106 million, including noncash impairments related to the sale of Quebec operations.
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Production was reduced, including indefinite closures at two mills in the US South, impacting overall output.
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The fiber supply dynamics in Quebec have worsened, leading to the decision to exit the region and sell manufacturing facilities.
Q & A Highlights
Q: Can you provide a sense of how significant the change has been in customers looking to secure more volumes for 2025? A: Customers have expressed concern about supply due to recent curtailments, leading to new inquiries and secured volume contracts. This indicates a recognition of potential supply challenges in 2025 among a significant portion of our customer base. - J. Barton Bender, Senior Vice President - Sales and Marketing