Interfor Corp

IFP

Equity

ISIN CA45868C1095 / Valor 24422290

Toronto Stock Exchange (2024-12-24)

CAD 16.88-0.18%

Interfor Corp
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Interfor Corporation stands as a significant player in the global forest products industry, boasting operations that span across North America and a customer base that reaches worldwide. The company has established itself with an impressive annual lumber production capacity of around 5 billion board feet, sourced from its state-of-the-art facilities. This capacity positions Interfor as a key supplier in the market, contributing to local economies through job creation and economic activity. Interfor's product portfolio includes high-quality joist products, catering to both residential and commercial sectors for floor and roof construction projects. Through its operations, Interfor emphasizes the importance of sustainable forest management, ensuring that its practices contribute positively to the environment while meeting the demands of its global customer base for sustainable building materials.

Summarized from source with an LLMView SourceSector: Non-Energy Materials

Net Loss

Interfor Corp reported a net loss of $75.8 million for the second quarter of 2024, translating to a loss of $1.47 per share. This is a slight increase from the net loss of $72.9 million, or $1.42 per share, recorded in the first quarter of 2024. Compared to the second quarter of 2023, where the net loss was $14.1 million, or $0.27 per share, the financial performance has significantly deteriorated.

Sales and Revenue

In the second quarter of 2024, Interfor Corp's total sales amounted to $771.2 million, a decrease from $813.2 million in the first quarter of 2024 and $871.8 million in the second quarter of 2023. The decline in sales is attributed to lower lumber prices and reduced sales volume. The average selling price of lumber was $602 per thousand board feet (mfbm), down from $610 per mfbm in the previous quarter.

Adjusted EBITDA

Interfor Corp reported an adjusted EBITDA loss of $16.7 million for the second quarter of 2024, an improvement from the adjusted EBITDA loss of $22.3 million in the first quarter of 2024. However, this is a significant decline compared to the adjusted EBITDA of $41.9 million reported in the second quarter of 2023. The negative EBITDA reflects ongoing market challenges and production curtailments.

Production Curtailments

During the second quarter of 2024, Interfor Corp's lumber production totaled 1.0 billion board feet, a decrease of 35 million board feet from the previous quarter. This reduction is partly due to temporary production curtailments and the indefinite curtailment of the Philomath, OR sawmill. The company plans to further reduce lumber production by approximately 280 to 350 million board feet between August and December 2024 in response to weak market conditions.

Financial Position

Interfor Corp's net debt to invested capital ratio stood at 35.0% at the end of the second quarter of 2024, slightly up from 34.7% at the end of the first quarter. The company generated $48.0 million in positive operating cash flow during the quarter, benefiting from a $72.0 million reduction in working capital. Available liquidity improved by $30.8 million quarter-over-quarter, reaching $330.5 million as of June 30, 2024.

Summarized from source with an LLMView Source

Key figures

-30.0%1Y

-52.4%3Y

14.4%5Y

Performance

36.3%1Y

43.5%3Y

50.5%5Y

Volatility