Interfor Corp T.IFP

$6.69

[SleepingGiant64]

It didn't quite get to $6.69. The consensus actually moved to $7.04 in the run up to the release so I guess that's disappointing insomuch as a company trading at 5x this quarter's earnings can be.
I'm trying to figure out why they missed because revenues at $1349 beat the $1281 consensus.

Production was 921m and sales 860m avg selling price C$1410. Inventory build? Up to a whopping $511,993,000 from $250,481,000 at the start of the year.

EACOM adjustments might have eaten it up too. They ended up paying $731.2m including inventories so it only contributed $5.1m in EBITDA.

Price at $1410 is interesting. Assuming USD$1020 now, that works out to $1315 so we're not so far off that for this quarter, though it was $100 lower in April. We'll probably see a step down after the May contract rolls off but that remains to be seen. In any case, they should be able to easily beat the $3.85 consensus in Q2.

Net debt at $340m. They generated $378.9m in FCF this quarter so could in theory pay it off this quarter but spending $32.9m on the April buyback and $55.6m on GFP kills that.

Share count at 59,357 at quarter end then take away another 1.015m afterwards. Call it 58,350,000, down from 70m in 2018 (-16.6%)

Not much in the way of guidance.

Lots of questions for the call tomorrow.

[FreddieMac]

Good post and analysis.  One minor but important correction:  the share capital at end of quarter is not 59,357,000 since that is, as the financials say, the WEIGHTED AVERAGE number of shares outstanding during the quarter.  The actual figure at end of quarter is lower. They started 2022 with 60,787,000 shares outstanding Per today’s press release, in Q1 they repurchased 5,026,305

[sunshine7]

so which share count was used to determine eps?

[FreddieMac]

They used, as is usual, the "average weighted" figure, which is the HIGHER share count number. In this case that means they used 59,357,000 shares. Since they were down to 55,760,695 shares by end of March, that means that even without the April repurchases they will have a substantially lower share count denominator for the Q2 EPS calculations.

[Tothemoon2]

It looks like the EACOM adjustments did add cost. Inventory build because of tranpotation issues will be worked out but hope the sales happen while lumber price is still high. I assume they will integrate the AECOM purchase before pursuing GFP. Don't see anything that will make me want to sell.

[lifeisgood1010]

The REAL eps came in at $7.09 It's only because of accounting rules. If you read the note carefully, you will noticed that IFP deducted the full cost of the Q1 purchased ($234,995,000 )while using the treasury stock method to calculated the number of share used for EPS. So they divided the earnings ($397,031,000 )by 59,584,729 instead of the actual number of outstanding share count of 55,803