VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/10/13 -- INTERNATIONAL FOREST PRODUCTS LIMITED ("Interfor" or the "Company") (TSX: IFP.A) reported net income of $17.8 million or $0.32 per share before share-based compensation expense and other items(1) in the first quarter of 2013.
These results compare with net earnings, reported on the same basis, of $3.5 million in the fourth quarter of 2012 and a loss of $4.1 million in the first quarter of last year.
EBITDA for the quarter, adjusted to exclude the effects of share-based compensation and other items(2), was $37.1 million compared with $19.3 million in the fourth quarter and $7.0 million in the first quarter last year.
Share-based compensation and other items(2) amounted to $7.4 million in the first quarter.
The Company's results in the current quarter were positively impacted by strong prices, the ramp-up of the rebuilt Grand Forks sawmill and the addition, on March 1st, of the Company's newly-acquired operations in the US Southeast.
Lumber production in the first quarter was a record 390 million board feet, up 11% from the previous high achieved in the third quarter of 2012.
In the quarter, SPF 2x4 in the U.S. market averaged US$391, up US$56 versus the fourth quarter, building on momentum established in late 2012. Hem-Fir studs averaged US$426, up US$66 versus the prior quarter, while SYP 2x4 East averaged US$452, up US$66. The markets in China and Japan gained in the quarter following the trend in North America. Cedar was stronger on limited supply.
Export taxes on shipments to the U.S. were 0% in the first quarter compared with an average of 8% in the fourth quarter last year.
In the quarter, Interfor generated $32.9 million in cash from operations before working capital changes and $9.4 million after working capital changes were considered. Capital spending, excluding acquisitions, amounted to $8.0 million in the quarter including $3.8 million on the final stages of the Grand Forks and Castlegar projects.
Net debt closed the quarter at $202.8 million or 34% percent of invested capital.
On February 28th, Interfor announced it had reached agreement with the members of its banking syndicate to increase and extend its credit facilities, bringing the total facility to $315 million, up from $265 million previously. Maturity has been extended from July 2015 to February 2017. Pricing of the facility has been improved as well.
During the quarter, Interfor announced it had reached agreement to purchase two timber tenures in the Kootenay Region of British Columbia from Springer Creek Forest Products Limited Partnership.
(1) Other items include certain foreign exchange gains (losses), other income (expense), restructuring costs and deferred tax assets not recognized.
(2) Other items include certain foreign exchange gains (losses), other income (expense) and restructuring costs.
The tenures, which have a combined Allowable Annual Cut (AAC) of approximately 174,000 cubic meters, will support an increase in production at the Company's sawmill at Castlegar, to be phased in over the next six to twelve months.
Most Popular Stories
- Twitter Names Woman to Board
- Obamacare Doing Just Fine, Ky. Governor Says
- Rand Paul Signs up for Obamacare
- Thalia Gets Star on Hollywood Walk of Fame
- How to Arm Yourself Against CryptoLocker Virus
- Hispanic Employment Improves in November
- World Cup Draws: Coaches, Players Offer Insights
- Trapped Florida Whales Head for Deeper Waters
- Aspen Contracting Adding 300 Jobs
- Dow Jumps 200 Points on Jobs Data