VANCOUVER, BRITISH COLUMBIA - INTERNATIONAL FOREST PRODUCTS LIMITED ("Interfor" or the "Company") (TSX:IFP.A) reported a net loss of $6.5 million or $0.12 per share in the first quarter of 2012. Included in the Company's results in the quarter was the effect of unrecognized tax assets of $1.8 million or $0.03 per share.
Excluding the tax allowance and other one-time items, Interfor recorded a net loss of $5.2 million or $0.09 per share in the first quarter of 2012 compared to a net loss of $3.7 million or $0.07 per share in the immediately preceding quarter and a net loss of $1.7 million or $0.03 per share in the first quarter of 2011.
Also included in the Company's accounts in the first quarter was a provision for share-based compensation of $1.3 million or $0.02 per share compared to a provision of $0.9 million or $0.02 per share in the immediately preceding quarter.
Key factors impacting the Company's results in the first quarter were lower sales revenue, which fell $2 million or 1% vs the immediately preceding quarter, and higher log costs, particularly on the B.C. Coast.
EBITDA for the quarter (adjusted to exclude one-time items and "other income") was $5.8 million, down $0.9 million versus the fourth quarter of 2011 and down $5.8 million versus the first quarter of 2011.
Lumber production in the first quarter was 323 million board feet, up 29 million board feet or 10 percent compared to the immediately preceding quarter, reflecting increased volumes in each of the Company's operating regions. Sales volume, including wholesale activities, was 320 million board feet, up 2 million board feet compared with the fourth quarter.
In the quarter, SPF 2x4 in the North American market averaged US$266 per mfbm, up US$28 per mfbm versus the fourth quarter, and Hem-Fir studs were $US294 per mfbm, up US$34 per mfbm. Activity levels in China remained strong and sales values improved as the quarter progressed. Japan, however, experienced a modest slowing of activities as winter conditions impacted building activity in that market. Pricing in Japan was adversely affected by a weakening of the Yen/US dollar ratio while the cedar market was firm as mild weather in North America and low inventories throughout the distribution channel helped to support demand.
In the quarter, Interfor generated $8.7 million in cash before changes in working capital were considered. Changes in working capital used was $12.0 million in the quarter mostly due to an increase in accounts receivable which in turn was attributable to high shipments prior to quarter-end. Cash capital spending amounted to $10.9 million, including $4.5 million on the Grand Forks and Castlegar upgrades with construction now underway.