The following is a summary of the Interfor Corporation (IFSPF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Interfor recorded an adjusted EBITDA loss of $17 million this quarter with total revenue of $771 million, reflecting a 5% quarter-over-quarter decrease.

• The company managed a net loss of $76 million due to the persistent weakness in the lumber market.

• Significant focus on cost efficiencies resulted in the production costs per unit of lumber sold reducing by 2% quarter-over-quarter.

• Notable cash flow from operations, largely due to the effective management of log and lumber inventories and asset sales, including the former sawmill in Philomath, Oregon, sustained the financial position.

Business Progress:

• In response to industry challenges, Interfor plans to curtail several low margin mills, curtailments equivalent to approximately 15% of their production volume or around 280 million to 350 million board feet.

• Interfor anticipates further adjustments and efficiency enhancements in operations in alignment with market conditions.

Opportunities:

• The anticipated collection of tax refunds totaling approximately $59 million and further proceeds from the sale of coastal BC forest tenures, with estimated total proceeds of about $70 million.

Risks:

• The lumber industry faces continued market weakness, with Interfor expecting more supply reductions.

• The softwood lumber duties on Canadian producers are set to increase significantly, which might increase market uncertainty and influence production decisions.

More details: INTERFOR CORP IR

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