In This Article:
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Operating Cash Flow: $144 million positive operating cash flow for 2024.
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Adjusted EBITDA: $80 million for Q4.
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Total Revenue: $747 million for Q4, an 8% increase quarter over quarter.
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Average Realized Lumber Price: 16% increase quarter over quarter.
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Production Costs: 5% reduction in production costs per unit of lumber sold quarter over quarter.
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Net Loss: $50 million for Q4, including a $42 million foreign exchange loss.
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Operating Cash Flow: $75 million for Q4.
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Capital Expenditures: $11 million in Q4, with 2025 guidance refined to approximately $85 million.
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Debt Repayment: $35 million in Q4.
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Liquidity: Available liquidity grew to over $380 million.
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BC Coast Tenure Sales: Gross proceeds of $67 million from eight tenure sales in 2024.
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Financial Leverage: Remained flat at 36% quarter over quarter.
Release Date: February 14, 2025
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) achieved positive operating cash flow of $144 million in a challenging market with low lumber prices.
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The company completed a new planer project at the Thomaston, Georgia mill, meeting all KPI targets within 30 operating days.
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Interfor Corp (IFSPF) reduced mill conversion costs across most regions despite significant market-related curtailments.
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Employee turnover rates improved across the company's platform.
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The company generated adjusted EBITDA of $80 million for Q4, with all operating regions in Canada and the US being EBITDA positive.
Negative Points
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Interfor Corp (IFSPF) recorded a net loss of $50 million in Q4, including a $42 million foreign exchange loss.
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The company faces ongoing volatility in the lumber industry due to uncertain economic and political environments.
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Canadian lumber is facing headwinds for shipments to the US markets, with potential tariffs adding to cost pressures.
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Lumber demand is showing signs of decline due to economic uncertainties, impacting short-term market stability.
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The threat of tariffs creates a fluid and uncertain demand environment, with customers hesitant to build inventory.
Q & A Highlights
Q: With net debt to capitalization stable at 35%-36%, do you need to use non-operational levers to prevent your net debt ratio from rising, especially considering the potential impact of tariffs on market value? A: Ian Fillinger, President and CEO, stated that the impact of selling non-operational assets, such as BC Coast tenures, is not affected by tariff threats. These sales align with the BC government's mandate towards First Nations' ownership and are not tied to the dimensional market. The sales planned for 2025 are already advanced, and they do not foresee a value hit due to tariffs.