IFP Interfor Corporation

INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) recorded a Net loss in Q3’23 of $42.4 million, or $0.82 per share, compared to a Net loss of $14.1 million, or $0.27 per share in Q2’23 and Net earnings of $3.5 million, or $0.06 per share in Q3’22.

Adjusted EBITDA was $31.9 million on sales of $828.1 million in Q3’23 versus $41.9 million on sales of $871.8 million in Q2’23 and $129.5 million on sales of $1.0 billion in Q3’22.

Notable items in the quarter:

• Lumber Production Balanced with Demand
  • Lumber production totaled 1.0 billion board feet, representing a decrease of 26 million board feet quarter-over-quarter. The decrease was primarily due to the temporary closure of a sawmill in B.C. as a result of wildfires.
  • Lumber shipments were 1.0 billion board feet, or 108 million board feet lower than Q2’23.
• Weak Lumber Prices
  • Lumber prices continued to reflect softened demand driven by the elevated interest rate environment and ongoing economic uncertainty. Lumber prices strengthened at the beginning of Q3’23 from the effects of industry production curtailments and reduced European imports combined with increased new home construction demand but began to weaken near the end of Q3’23 as increased economic uncertainty drove interest rates higher. Interfor’s average selling price was $661 per mfbm, up $12 per mfbm versus Q2’23.
• Financial Flexibility Improved
  • Net debt at quarter-end was $777.7 million, or 28.7% of invested capital, with available liquidity of $417.9 million.
  • The net debt to invested capital leverage ratio improved compared to the end of Q2’23, driven by $107.2 million of cash flow from operations, including $70.5 million from income tax refunds.
  • Collection of an additional US$24.9 million of income tax refunds related to 2022 is expected in Q4’23.
• Strategic Capital Investments
  • Capital spending was $38.5 million, including $20.1 million of discretionary investment focused on multi-year projects in the U.S. South region.
  • Total capital expenditures planned for 2023 remains unchanged from prior guidance at approximately $210.0 million, while total preliminary capital expenditures for 2024 are estimated to be approximately $140.0 million.

• Ongoing Monetization of Coastal B.C. Operations
  • Over the course of Q3’23, Interfor advanced on its plans to monetize its Coastal B.C. operations, which consist primarily of forest tenure rights from the province of B.C. and related log harvesting activities.
  • On October 3, 2023, the Company entered into an agreement to settle certain contractual obligations in order to facilitate monetization of its Coastal B.C. operations. The settlement will result in an $85.0 million provision being recognized in the fourth quarter, 2023, the payment of which Interfor expects to be fully funded by net proceeds from the disposition of Coast B.C. forest tenures over the next several years.
  • On October 27, 2023, the Company reached an agreement for the disposition of Coastal B.C. forest tenures totalling approximately 162,000 cubic metres of allowable annual cut (“AAC”) for net proceeds of $21.0 million. The completion of the disposition has received Ministry of Forests approval and is expected to close in the fourth quarter of 2023, subject to customary conditions for a transaction of this kind.
  • Following this, Interfor held Coastal B.C. forest tenures totalling approximately 1,411,000 cubic metres of AAC available for disposition subject to approvals from the Ministry of Forests.
• Softwood Lumber Duties
  • On August 1, 2023, the U.S. Department of Commerce (“DoC”) published the final rates for countervailing (“CV”) and anti-dumping (“AD”) duties based on the results of its fourth administrative review (“AR4”) covering shipments for the year ended December 31, 2021. The final combined rate for 2021 was 8.05% compared to the cash deposit rate of 8.99% from January to November 2021 and 17.90% for December 2021. The combined rate of 8.05% applied to new shipments effective September 13, 2023. To reflect the lower amended final rates for 2021, Interfor recorded a $6.3 million reduction to duties expense in Q3’23 and a corresponding receivable on its balance sheet.  
  • Interfor has cumulative duties of US$540.0 million, or approximately $10.36 per share on an after-tax basis, held in trust by U.S. Customs and Border Protection as at September 30, 2023. Except for US$161.8 million recorded as a receivable in respect of overpayments arising from duty rate adjustments and the fair value of rights to duties acquired, Interfor has recorded the duty deposits as an expense.

Outlook

North American lumber markets over the near term are expected to remain volatile as the economy continues to adjust to inflationary pressures, elevated interest rates, labour shortages and geo-political uncertainty.

Interfor expects that over the mid-term, lumber markets will continue to benefit from favourable underlying supply and demand fundamentals. Positive demand factors include the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors, while growth in lumber supply is expected to be limited by extended capital project completion and ramp-up timelines, labour availability and constrained global fibre availability.

Interfor’s strategy of maintaining a diversified portfolio of operations in multiple regions allows the Company to both reduce risk and maximize returns on capital over the business cycle. Interfor is well positioned with its strong balance sheet and available liquidity to continue pursuing its strategic plans despite ongoing economic and geo-political uncertainty globally. In the event of a sustained lumber market downturn, Interfor maintains flexibility to significantly reduce capital expenditures and working capital levels, and to proactively adjust its lumber production to match demand.

Financial and Operating Highlights1  

		For the three months ended				For the nine months ended
		Sept. 30	Sept. 30	Jun. 30		Sept. 30	Sept. 30
	Unit	2023	2022	2023		2023	2022
Financial Highlights2
Total sales	$MM	828.1	1,035.6	871.8		2,529.8	3,773.7
Lumber	$MM	667.1	837.8	723.2		2,032.8	3,241.1
Logs, residual products and other	$MM	161.0	197.8	148.6		497.0	532.6
Operating earnings (loss)	$MM	(21.1)	75.8	(20.8)		(78.2)	974.4
Net earnings (loss)	$MM	(42.4)	3.5	(14.1)		(97.8)	670.4
Net earnings (loss) per share, basic	$/share	(0.82)	0.06	(0.27)		(1.90)	11.95
Operating cash flow per share (before working capital changes)3	$/share	1.78	(0.02)	0.68		2.93	10.86
Adjusted EBITDA3	$MM	31.9	129.5	41.9		99.8	1,128.2
Adjusted EBITDA margin3	%	3.9%	12.5%	4.8%		3.9%	29.9%
Total assets	$MM	3,577.8	3,294.6	3,603.9		3,577.8	3,294.6
Total debt	$MM	877.1	396.4	918.5		877.1	396.4
Net debt3	$MM	777.7	249.7	815.7		777.7	249.7
Net debt to invested capital3	%	28.7%	10.5%	29.6%		28.7%	10.5%
Annualized return on capital employed3	%	(4.5%)	5.6%	(1.1%)		(3.6%)	47.8%
Operating Highlights
Lumber production	million fbm	997	986	1,023		3,050	2,918
U.S. South	million fbm	470	470	468		1,412	1,390
U.S. Northwest	million fbm	162	159	165		469	495
Eastern Canada	million fbm	247	198	249		745	505
B.C.	million fbm	118	159	141		424	528
Lumber sales	million fbm	1,008	1,064	1,116		3,128	2,989
Lumber - average selling price4	$/thousand fbm	661	800	649		650	1,084
Key Statistics
Benchmark lumber prices5
SYP Composite	US$ per mfbm	429	555	446		439	785
KD H-F Stud 2x4 9’	US$ per mfbm	474	627	452		451	937
Eastern SPF Composite	US$ per mfbm	510	657	474		486	949
Western SPF Composite	US$ per mfbm	412	550	372		394	849
USD/CAD exchange rate6
Average	1 USD in CAD	1.3414	1.3056	1.3428		1.3456	1.2828
Closing	1 USD in CAD	1.3520	1.3707	1.3240		1.3520	1.3707

Notes:

1. Figures in this table may not equal or sum to figures presented elsewhere due to rounding.
2. Financial information presented for interim periods in this release is prepared in accordance with IFRS and is unaudited.
3. Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of these measures to figures reported in the Company’s unaudited condensed consolidated interim financial statements.
4. Gross sales including duties and freight.
5. Based on Random Lengths Benchmark Lumber Pricing.
6. Based on Bank of Canada foreign exchange rates.

Liquidity

Balance Sheet

Interfor’s Net debt at September 30, 2023 was $777.7 million, or 28.7% of invested capital, representing an increase of $57.3 million from the level of Net debt at December 31, 2022.

As at September 30, 2023 the Company had net working capital of $400.0 million and available liquidity of $417.9 million, based on the available borrowing capacity under its $600.0 million Revolving Term Line (“Term Line”).

The Term Line and Senior Secured Notes are subject to financial covenants, including a net debt to total capitalization ratio and an EBITDA interest coverage ratio.

Management believes, based on circumstances known today, that Interfor has sufficient working capital and liquidity to fund operating and capital requirements for the foreseeable future.

	For the three months endedSept. 30,			For the nine months endedSept. 30,
Millions of Canadian Dollars	2023	2022		2023	2022
Net debt
Net debt (cash), period opening	$815.7	$102.0		$720.3	$(162.9)
Repayment of Senior Secured Notes	-	-		(7.1)	(7.0)
Term Line net drawings (repayments)	(61.2)	-		88.3	(3.9)
Decrease (increase) in cash and cash equivalents	5.6	130.2		(23.6)	406.5
Foreign currency translation impact on U.S. Dollar denominated cash and cash equivalents and debt	17.6	17.5		(0.2)	17.0
Net debt, period ending	$777.7	$249.7		$777.7	$249.7

On December 16, 2022, the Company completed an expansion of its Term Line. The commitment under the Term Line was increased by $100.0 million to a total of $600.0 million.

On December 1, 2022, the Company issued US$200.0 million of Series H Senior Secured Notes, bearing interest at 7.06% with principal payments of US$66.7 million due on December 26, 2031, 2032 and on final maturity in 2033.

Capital Resources

The following table summarizes Interfor’s credit facilities and availability as of September 30, 2023:

	Revolving	Senior
	Term	Secured
Millions of Canadian Dollars	Line	Notes	Total
Available line of credit and maximum borrowing available	$600.0	$654.0	$1,254.0
Less:
Drawings	223.1	654.0	877.1
Outstanding letters of credit included in line utilization	58.4	-	58.4
Unused portion of facility	$318.5	$       -	318.5
Add:
Cash and cash equivalents			99.4
Available liquidity at September 30, 2023			$417.9

Interfor’s Term Line matures in December 2026 and its Senior Secured Notes have maturities in the years 2024-2033.

As of September 30, 2023, the Company had commitments for capital expenditures totaling $114.2 million for both maintenance and discretionary capital projects.

Non-GAAP Measures

This MD&A makes reference to the following non-GAAP measures: EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net debt to invested capital, Operating cash flow per share (before working capital changes), and Annualized return on capital employed which are used by the Company and certain investors to evaluate operating performance and financial position. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

The following table provides a reconciliation of these non-GAAP measures to figures as reported in the Company’s audited consolidated financial statements (unaudited for interim periods) prepared in accordance with IFRS:

	For the three months ended			For the nine months ended
	Sept. 30	Sept. 30	Jun. 30	Sept. 30	Sept. 30
Millions of Canadian Dollars except number of shares and per share amounts	2023	2022	2023	2023	2022
Adjusted EBITDA
Net earnings (loss)	$(42.4)	$3.5	$(14.1)	$(97.8)	$670.4
Add:
Depreciation of plant and equipment	46.7	40.6	46.7	138.5	115.3
Depletion and amortization of timber, roads and other	7.6	9.8	9.9	29.7	28.0
Finance costs	10.2	1.5	13.3	34.4	11.0
Income tax expense (recovery)	(5.1)	35.8	(8.1)	(24.7)	257.3
EBITDA	17.0	91.2	47.7	80.1	1,082.0
Add:
Long-term incentive compensation expense (recovery)	(1.3)	2.5	2.8	4.1	(4.2)
Other foreign exchange loss (gain)	14.0	46.9	(13.7)	0.3	54.4
Other expense (income) excluding business interruption insurance	2.2	(11.9)	5.0	13.6	(9.0)
Asset write-downs and restructuring costs	-	0.8	0.1	1.7	5.0
Adjusted EBITDA	$31.9	$129.5	$41.9	$99.8	$1,128.2
Sales	$828.1	$1,035.6	$871.8	$2,529.8	$3,773.7
Adjusted EBITDA margin	3.9%	12.5%	4.8%	3.9%	29.9%
Net debt to invested capital
Net debt
Total debt	$877.1	$396.4	$918.5	$877.1	$396.4
Cash and cash equivalents	(99.4)	(146.7)	(102.8)	(99.4)	(146.7)
Total net debt	$777.7	$249.7	$815.7	$777.7	$249.7
Invested capital
Net debt	$777.7	$249.7	$815.7	$777.7	$249.7
Shareholders' equity	1,927.9	2,123.3	1,943.2	1,927.9	2,123.3
Total invested capital	$2,705.6	$2,373.0	$2,758.9	$2,705.6	$2,373.0
Net debt to invested capital1	28.7%	10.5%	29.6%	28.7%	10.5%
Operating cash flow per share (before working capital changes)
Cash provided by operating activities	$107.2	$47.0	$123.0	$145.7	$722.0
Cash used in (generated from) operating working capital	(15.7)	(47.9)	(88.4)	4.8	(113.1)
Operating cash flow (before working capital changes)	$91.5	$(0.9)	$34.6	$150.5	$608.9
Weighted average number of shares - basic (millions)	51.4	54.1	51.4	51.4	56.1
Operating cash flow per share (before working capital changes)	$1.78	$(0.02)	$0.68	$2.93	$10.86
Annualized return on capital employed
Net earnings (loss)	$(42.4)	$3.5	$(14.1)	$(97.8)	$670.4
Add:
Finance costs	10.2	1.5	13.3	34.4	11.0
Income tax expense (recovery)	(5.1)	35.8	(8.1)	(24.7)	257.3
Earnings (loss) before income taxes and finance costs	$(37.3)	$40.8	$(8.9)	$(88.1)	$938.7
Capital Employed
Total assets	$3,577.8	$3,294.6	$3,603.9	$3,577.8	$3,294.6
Current liabilities	(345.4)	(378.8)	(318.9)	(345.4)	(378.8)
Less:
Current portion of long-term debt	45.1	7.4	44.1	45.1	7.4
Current portion of lease liabilities	16.0	15.6	15.8	16.0	15.6
Capital employed, end of period	$3,293.5	$2,938.8	$3,344.9	$3,293.5	$2,938.8
Capital employed, beginning of period	3,344.9	2,869.9	3,419.3	3,316.0	2,303.2
Average capital employed	$3,319.2	$2,904.3	$3,382.1	$3,304.7	$2,621.0
Earnings (loss) before income taxes and finance costs divided byaverage capital employed	(1.1%)	1.4%	(0.3%)	(2.7%)	35.8%
Annualization factor	4.0	4.0	4.0	1.3	1.3
Annualized return on capital employed	(4.5%)	5.6%	(1.1%)	(3.6%)	47.8%
Note 1: Net debt to invested capital as of the period end.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the three and nine months ended September 30, 2023 and 2022 (unaudited)
(millions of Canadian Dollars except per share amounts)	Three Months	Three Months	Nine Months	Nine Months
	Sept. 30, 2023	Sept. 30, 2022	Sept. 30, 2023	Sept. 30, 2022
Sales	$828.1	$1,035.6	$2,529.8	$3,773.7
Costs and expenses:
Production	778.1	902.9	2,353.4	2,536.0
Selling and administration	17.2	15.6	52.0	49.4
Long-term incentive compensation expense (recovery)	(1.3)	2.5	4.1	(4.2)
U.S. countervailing and anti-dumping duty deposits	0.9	(12.4)	28.6	69.8
Depreciation of plant and equipment	46.7	40.6	138.5	115.3
Depletion and amortization of timber, roads and other	7.6	9.8	29.7	28.0
	849.2	959.0	2,606.3	2,794.3
Operating earnings (loss) before asset write-downs and
restructuring costs	(21.1)	76.6	(76.5)	979.4
Asset write-downs and restructuring costs	-	0.8	1.7	5.0
Operating earnings (loss)	(21.1)	75.8	(78.2)	974.4
Finance costs	(10.2)	(1.5)	(34.4)	(11.0)
Other foreign exchange loss	(14.0)	(46.9)	(0.3)	(54.4)
Other income (expense)	(2.2)	11.9	(9.6)	18.7
	(26.4)	(36.5)	(44.3)	(46.7)
Earnings (loss) before income taxes	(47.5)	39.3	(122.5)	927.7
Income tax expense (recovery):
Current	(5.9)	27.5	(24.0)	242.9
Deferred	0.8	8.3	(0.7)	14.4
	(5.1)	35.8	(24.7)	257.3
Net earnings (loss)	$(42.4)	$3.5	$(97.8)	$670.4
Net earnings (loss) per share
Basic	$(0.82)	$0.06	$(1.90)	$11.95
Diluted	$(0.82)	$0.06	$(1.90)	$11.91

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three and nine months ended September 30, 2023 and 2022 (unaudited)
(millions of Canadian Dollars)	Three Months	Three Months	Nine Months	Nine Months
	Sept. 30, 2023	Sept. 30, 2022	Sept. 30, 2023	Sept. 30, 2022
Net earnings (loss)	$(42.4)	$3.5	$(97.8)	$670.4
Other comprehensive income (loss):
Items that will not be recycled to Net earnings (loss):
Defined benefit plan actuarial gain (loss), net of tax	-	(1.2)	0.7	0.6
Items that are or may be recycled to Net earnings (loss):
Foreign currency translation differences for foreign operations,
net of tax	26.9	115.0	(2.8)	142.9
Total other comprehensive income (loss), net of tax	26.9	113.8	(2.1)	143.5
Comprehensive income (loss)	$(15.5)	$117.3	$(99.9)	$813.9

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2023 and 2022 (unaudited)
(millions of Canadian Dollars)	Three Months	Three Months	Nine Months	Nine Months
	Sept. 30, 2023	Sept. 30, 2022	Sept. 30, 2023	Sept. 30, 2022
Cash provided by (used in):
Operating activities:
Net earnings (loss)	$(42.4)	$3.5	$(97.8)	$670.4
Items not involving cash:
Depreciation of plant and equipment	46.7	40.6	138.5	115.3
Depletion and amortization of timber, roads and other	7.6	9.8	29.7	28.0
Deferred income tax expense (recovery)	0.8	8.3	(0.7)	14.4
Current income tax expense (recovery)	(5.9)	27.5	(24.0)	242.9
Finance costs	10.2	1.5	34.4	11.0
Other assets	(6.4)	(27.5)	(6.1)	(30.0)
Reforestation liability	1.5	(2.9)	(0.5)	(2.8)
Provisions and other liabilities	(2.3)	(1.8)	(3.8)	(27.5)
Stock option vesting	0.2	0.2	0.6	0.7
Write-down of plant and equipment	-	0.8	1.5	3.2
Unrealized foreign exchange loss	8.8	42.7	0.4	50.9
Other expense (income)	2.2	(11.9)	9.6	(18.7)
Income taxes refunded (paid)	70.5	(91.7)	68.7	(448.9)
	91.5	(0.9)	150.5	608.9
Cash generated from (used in) operating working capital:
Trade accounts receivable and other	(1.6)	19.4	(39.3)	35.1
Inventories	(7.3)	42.5	57.6	75.4
Prepayments	4.6	0.8	(4.2)	(5.9)
Trade accounts payable and provisions	20.0	(14.8)	(18.9)	8.5
	107.2	47.0	145.7	722.0
Investing activities:
Additions to property, plant and equipment	(31.6)	(82.5)	(152.2)	(194.4)
Additions to roads and bridges	(6.9)	(3.6)	(7.6)	(7.7)
Acquisitions, net of cash acquired	-	-	0.5	(536.1)
Proceeds on disposal of property, plant, equipment and other	0.2	20.7	4.9	32.0
Investment in GreenFirst Forest Products Inc.	-	-	-	(55.6)
Net proceeds from (additions to) deposits and other assets	0.8	(3.4)	2.1	(3.2)
	(37.5)	(68.8)	(152.3)	(765.0)
Financing activities:
Issuance of share capital, net of expenses	-	-	0.1	0.4
Share repurchases, net of expenses	-	(100.4)	-	(327.6)
Interest payments	(9.4)	(3.8)	(37.5)	(13.1)
Lease liability payments	(4.7)	(4.2)	(13.4)	(12.0)
Debt refinancing costs	-	-	(0.2)	(0.3)
Term line net drawings (repayments)	(61.2)	-	88.3	(3.9)
Repayments of Senior Secured Notes	-	-	(7.1)	(7.0)
	(75.3)	(108.4)	30.2	(363.5)
Foreign exchange gain (loss) on cash and cash equivalents
held in a foreign currency	2.2	6.2	(1.8)	14.5
Increase (decrease) in cash	(3.4)	(124.0)	21.8	(392.0)
Cash and cash equivalents, beginning of period	102.8	270.6	77.6	538.6
Cash and cash equivalents, end of period	$99.4	$146.6	$99.4	$146.6

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
September 30, 2023 and December 31, 2022 (unaudited)
(millions of Canadian Dollars)	Sept. 30, 2023	Dec. 31, 2022
Assets
Current assets:
Cash and cash equivalents	$99.4	$77.6
Trade accounts receivable and other	217.0	174.1
Income tax receivable	60.1	104.1
Inventories	339.1	396.9
Prepayments	29.8	25.9
	745.4	778.6
Employee future benefits	17.8	18.4
Deposits and other assets	279.3	281.6
Right of use assets	35.7	34.0
Property, plant and equipment	1,702.9	1,701.2
Roads and bridges	35.2	38.1
Timber licences	173.2	178.4
Goodwill and other intangible assets	583.6	588.1
Deferred income taxes	4.7	1.4
	$3,577.8	$3,619.8
Liabilities and Shareholders’ Equity
Current liabilities:
Trade accounts payable and provisions	$265.3	$285.5
Current portion of long-term debt	45.1	7.3
Reforestation liability	18.0	17.9
Lease liabilities	16.0	14.8
Income taxes payable	1.0	0.3
	345.4	325.8
Reforestation liability	28.8	28.7
Lease liabilities	20.8	20.5
Long-term debt	832.0	790.6
Employee future benefits	10.5	9.9
Provisions and other liabilities	19.8	24.2
Deferred income taxes	392.6	393.0
Equity:
Share capital	408.9	408.7
Contributed surplus	6.0	5.5
Translation reserve	173.1	175.9
Retained earnings	1,339.9	1,437.0
	1,927.9	2,027.1
	$3,577.8	$3,619.8

Approved on behalf of the Board of Directors:
“L. Sauder”	“T.V. Milroy”
Director	Director

FORWARD-LOOKING STATEMENTS

This release contains forward-looking information about the Company’s business outlook, objectives, plans, strategic priorities and other information that is not historical fact. A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information may include words such as: will, could, should, believe, expect, anticipate, intend, forecast, projection, target, outlook, opportunity, risk or strategy. Readers are cautioned that actual results may vary from the forward-looking information in this release, and undue reliance should not be placed on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor’s third quarter and annual Management’s Discussion and Analysis under the heading “Risks and Uncertainties”, which are available on www.interfor.com and under Interfor’s profile on www.sedarplus.ca. Material factors and assumptions used to develop the forward-looking information in this release include the timing and value of proceeds received from the disposition of Coast B.C. forest tenures; volatility in the selling prices for lumber, logs and wood chips; the Company’s ability to compete on a global basis; the availability and cost of log supply; natural or man-made disasters; currency exchange rates; changes in government regulations; Indigenous reconciliation; the softwood lumber trade dispute between Canada and the United States; environmental impacts of the Company’s operations; labour availability; and information systems security. Unless otherwise indicated, the forward-looking statements in this release are based on the Company’s expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information or statements, except as required by law.

ABOUT INTERFOR

Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual lumber production capacity of approximately 5.2 billion board feet and offers a diverse line of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.

The Company’s unaudited condensed consolidated interim financial statements and Management’s Discussion and Analysis for Q3’23 are available at www.sedarplus.ca and www.interfor.com.

There will be a conference call on Friday, November 3, 2023 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company’s release of its third quarter 2023 financial results.

The dial-in number is 1-888-396-8049. The conference call will also be recorded for those unable to join in for the live discussion and will be available until December 3, 2023. The number to call is 1-877-674-7070, Passcode 026550#.

For further information:Richard Pozzebon, Executive Vice President and Chief Financial Officer(604) 422-3400