Canada’s Interfor Corporation, one of the largest lumber producers in the world, has recorded Net earnings in Q2 ’21 of $419.2 million, or $6.45 per share, compared to $264.5 million, or $4.01 per share in Q1 ’21 and $3.2 million, or $0.05 per share in Q2 ’20.
Adjusted net earnings in Q2 ’21 were $433.5 million compared to $270.6 million in Q1 ’21 and $10.6 million in Q2 ’20.
Robust lumber prices in North America and strong operating performance during the second quarter of 2021 led to Interfor realizing record financial results, including records for net earnings, adjusted EBITDA and cash flow from operations.
Adjusted EBITDA was $611.3 million on sales of $1.1 billion in Q2 ’21 versus $392.1 million on sales of $849.3 million in Q1 ’21. $484.5 million of cash flow was generated from operations before changes in working capital, or $7.46 per share.
These record financial results bolstered Interfor’s balance sheet and enabled the deployment of a significant amount of capital in the quarter. Interfor’s balanced approach to capital allocation included growth through a four-sawmill acquisition and strategic capital expenditures, and rewarding shareholders with returns of capital through share repurchases and a special cash dividend.
Even with a significant amount of capital deployed in the quarter, Interfor’s balance sheet remains very well positioned to support further strategic investment. Net debt ended the quarter at $(490.7) million, or (46.1)% of invested capital, resulting in available liquidity of $1.2 billion.