Advertisement
Price levels for most commodity items have come off in recent weeks following traditional seasonal patterns. While some further weakening may occur, prices are expected to remain above the levels recorded at the same time in recent years. Interest rates are forecasted to remain low and the Canadian dollar is expected to continue to trade at close to par against the U.S. dollar.
As always, Interfor will maintain its disciplined approach to production, cost control, inventory management and capital spending to help position the Company to deliver above average returns on invested capital as conditions improve. At the same time, Interfor will remain alert to opportunities to position the Company for long-term success.
Additional Information
Additional information relating to the Company and its operations can be found on its website at www.interfor.com, in the Annual Information Form and on SEDAR at www.sedar.com. Interfor's trading symbol on the Toronto Stock Exchange is IFP.A.
Lawrence Sauder Duncan K. DaviesChairman President and Chief Executive Officer
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGSFor the three months ended March 31, 2013 and 2012 (unaudited)(thousands of Canadian dollars except earnings per share) 3 Months 3 Months Mar. 31, 2013 Mar. 31, 2012---------------------------------------------------------------------------- Re-stated (note 3(a))Sales $ 242,499 $ 186,660Costs and expenses: Production (note 3(a)) 198,302 171,829 Selling and administration 7,075 5,305 Long term incentive compensation expense 6,620 1,317 Export taxes (recovery) (2) 2,533 Depreciation of plant and equipment (note 9) 8,564 6,792 Depletion and amortization of timber, roads and other (note 9) 4,599 4,525---------------------------------------------------------------------------- 225,158 192,301----------------------------------------------------------------------------Operating earnings (loss) before restructuring costs 17,341 (5,641)Restructuring costs (103) -----------------------------------------------------------------------------Operating earnings (loss) 17,238 (5,641)Finance costs (notes 3(a) and 8) (1,788) (1,573)Other foreign exchange gain (loss) (715) 432Other income 89 122---------------------------------------------------------------------------- (2,414) (1,019)----------------------------------------------------------------------------Earnings (loss) before income taxes 14,824 (6,660)Income taxes (recovery):Current (269) 114Deferred (86) (74)---------------------------------------------------------------------------- (355) 40----------------------------------------------------------------------------Net earnings (loss) $ 15,179 $ (6,700)----------------------------------------------------------------------------Net earnings (loss) per share, basic and diluted (note 10) $ 0.27 $ (0.12)----------------------------------------------------------------------------CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFor the three months ended March 31, 2013 and 2012 (unaudited)---------------------------------------------------------------------------- 3 Months 3 Months Mar. 31, 2013 Mar. 31, 2012---------------------------------------------------------------------------- Re-stated (note 3(a))Net earnings (loss) $ 15,179 $ (6,700)Other comprehensive income (loss): Foreign currency translation differences - foreign operations 2,752 (2,458) Defined benefit plan actuarial losses (note 3(a)) (394) (419) Gain (loss) in fair value of interest rate swaps (note 12) (375) 566 Income tax expense on other comprehensive income (55) (74)---------------------------------------------------------------------------- 1,928 (2,385)----------------------------------------------------------------------------Total comprehensive income (loss) for the period $ 17,107 $ (9,085)----------------------------------------------------------------------------See accompanying notes to consolidated financial statementsCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the three months ended March 31, 2013 and 2012 (unaudited)(thousands of Canadian dollars) 3 Months 3 Months Mar. 31, 2013 Mar. 31, 2012-------------------------------------------------------------------------- Re-stated (note 3(a))Cash provided by (used in):Operating activities: Net earnings (loss) $ 15,179 $ (6,700) Items not involving cash: Depreciation of plant and equipment 8,564 6,792 Depletion and amortization of timber, roads and other 4,599 4,525 Income tax expense (recovery) (355) 40 Finance costs (note 3(a)) 1,788 1,573 Reforestation liability 2,662 2,807 Other assets 152 - Other liabilities and provisions (6) (406) Foreign exchange losses 338 120 Other (48) (97)-------------------------------------------------------------------------- 32,873 8,654 Cash generated from (used in) operating working capital: Trade accounts receivable and other (22,154) (7,865) Inventories (19,038) (3,182) Prepayments (1,820) (286) Trade accounts payable and accrued liabilities 19,956 (318) Income taxes paid (368) (310)-------------------------------------------------------------------------- 9,449 (3,307)Investing activities: Additions to property, plant and equipment (5,180) (6,365) Additions to logging roads (2,615) (4,495) Additions to timber and other intangible assets (245) - Proceeds on disposal of property, plant, and equipment 62 127 Acquisition (note 4) (82,766) - Investments and other assets 20 (86)-------------------------------------------------------------------------- (90,724) (10,819)Financing activities: Interest payments (1,482) (1,312) Additions to prepaid finance costs (799) - Additions to long-term debt (notes 4 and 7) 84,418 30,000 Repayments of long-term debt (note 7) (5,083) (15,000)-------------------------------------------------------------------------- 77,054 13,688Foreign exchange gain (loss) on cash and cash equivalents held in a foreign currency 225 (8)--------------------------------------------------------------------------Decrease in cash (3,996) (446)Cash and cash equivalents, beginning of year 14,994 10,435--------------------------------------------------------------------------Cash and cash equivalents, end of period $ 10,998 $ 9,989--------------------------------------------------------------------------See accompanying notes to consolidated financial statementsCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONMarch 31, 2013 and December 31, 2011 and 2012 (unaudited)(thousands of Canadian dollars) Mar. 31, Dec. 31, Dec. 31, 2013 2012 2011---------------------------------------------------------------------------- Re-stated Re-stated (note 3(a)) (note 3(a))AssetsCurrent assets: Cash and cash equivalents $ 10,998 $ 14,994 $ 10,435 Trade accounts receivable and other 73,742 47,392 44,000 Income taxes receivable 37 - - Inventories (note 6) 123,777 98,024 97,645 Prepayments 13,625 11,749 10,757---------------------------------------------------------------------------- 222,179 172,159 162,837Employee future benefits 412 878 1,256Other investments and assets 4,739 4,198 2,836Property, plant and equipment 423,670 349,779 340,034Logging roads and bridges 16,168 17,316 16,753Timber licences 73,264 73,796 76,792Other intangible assets 708 738 1,250Goodwill 13,078 13,078 13,078Deferred income taxes 129 98 ----------------------------------------------------------------------------- $ 754,347 $ 632,040 $ 614,836----------------------------------------------------------------------------Liabilities and EquityCurrent liabilities: Trade accounts payable and accrued liabilities $ 94,167 $ 70,597 $ 60,692 Reforestation liability 11,618 10,864 14,121 Income taxes payable - 593 1,058---------------------------------------------------------------------------- 105,785 82,054 75,871Reforestation liability 20,362 17,621 17,777Long-term debt (note 7) 213,835 135,046 110,713Employee future benefits 9,581 9,631 8,186Other liabilities and provisions 11,647 11,658 11,467Equity: Share capital Class A subordinate voting shares 342,285 342,285 342,285 Class B common shares 4,080 4,080 4,080 Contributed surplus 7,476 7,476 7,476 Reserves (5,628) (7,950) (5,432) Retained earnings 44,924 30,139 42,413---------------------------------------------------------------------------- 393,137 376,030 390,822---------------------------------------------------------------------------- $ 754,347 $ 632,040 $ 614,836----------------------------------------------------------------------------Commitment (note 13)Subsequent event (note 14)See accompanying notes to consolidated financial statementsOn behalf of the Board:L. Sauder D. WhiteheadDirector DirectorCONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFor the three months ended March 31, 2013 and 2012 (unaudited)----------------------------------------------------------------------------(thousands of Class A Class B Canadian dollars) Share Share Contributed Translation Capital Capital Surplus Reserve----------------------------------------------------------------------------Balance at December 31, 2012 $ 342,285 $ 4,080 $ 7,476 $ (7,818)Net earnings (loss) for the period: - - - -Other comprehensive earnings (loss):Foreign currency translation differences, net of tax - - - 2,697Defined benefit plan actuarial losses - - - -Gain (loss) in fair value of interest rate swaps - - - -----------------------------------------------------------------------------Balance at March 31, 2013 $ 342,285 $ 4,080 $ 7,476 $ (5,121)----------------------------------------------------------------------------Balance at December 31, 2011 $ 342,285 $ 4,080 $ 7,476 $ (4,929)Net earnings (loss) for the period (note 3(a)): - - - -Other comprehensive earnings (loss):Foreign currency translation differences, net of tax - - - (2,532)Defined benefit plan actuarial losses (note 3(a)) - - - -Gain (loss) in fair value of interest rate swaps - - - -----------------------------------------------------------------------------Balance at March 31, 2012 $ 342,285 $ 4,080 $ 7,476 $ (7,461)----------------------------------------------------------------------------CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFor the three months ended March 31, 2013 and 2012 (unaudited)--------------------------------------------------------------(thousands of Canadian dollars) Hedging Retained Reserve Earnings Total--------------------------------------------------------------Balance at December 31, 2012 $ (132) $ 30,139 $ 376,030Net earnings (loss) for the period: - 15,179 15,179Other comprehensive earnings (loss):Foreign currency translation differences, net of tax - - 2,697Defined benefit plan actuarial losses - (394) (394)Gain (loss) in fair value of interest rate swaps (375) (375)--------------------------------------------------------------Balance at March 31, 2013 $ (507) $ 44,924 $ 393,137--------------------------------------------------------------Balance at December 31, 2011 $ (503) $ 42,413 $ 390,822Net earnings (loss) for the period (note 3(a)): - (6,700) (6,700)Other comprehensive earnings (loss):Foreign currency translation differences, net of tax - - (2,532)Defined benefit plan actuarial losses (note 3(a)) - (419) (419)Gain (loss) in fair value of interest rate swaps 566 - 566--------------------------------------------------------------Balance at March 31, 2012 $ 63 $ 35,294 $ 381,737--------------------------------------------------------------
