Canfor Announces 2020 And Fourth Quarter 2020 Results

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VANCOUVER, BC, Feb. 24, 2021 - Canfor Corporation (TSX: CFP) today reported 2020 and fourth quarter 2020 results:

Overview

  • Record-high 2020 reported operating income of $727 million; adjusted operating income of $735 million; shareholder net income of $544 million, or $4.35 per share
  • Fourth quarter of 2020 reported operating income of $420 million; adjusted operating income of $321 million; shareholder net income of $336 million, or $2.68 per share
  • Net debt of $270 million at December 31, 2020, improvement of $256 million from prior quarter; available liquidity of $1.4 billion; net debt to capitalization of 9.3% at December 31, 2020
  • Cumulative cash deposits of $594 million on countervailing and anti-dumping duties at December 31, 2020

2020 was an exceptional yet volatile year for Canfor. The unprecedented challenges stemming from the coronavirus outbreak ("COVID-19") weighed heavily on results in the first half of 2020. However, through the second half of 2020 there were several positive developments, including an unexpected increase in demand and record global pricing. This, coupled with a solid operating performance, resulted in record-high operating income of $727.3 million and net income per share of $4.35 for the year overall. These results compared to an operating loss of $294.3 million and net loss per share of $2.10 in 2019.

For the fourth quarter of 2020, the Company reported operating income of $419.6 million, $120.0 million higher than operating income of $299.6 million in the third quarter of 2020. Reported results for the fourth quarter of 2020 include a net duty recovery of $95.5 million, largely resulting from the finalization of countervailing ("CVD") and anti-dumping duty ("ADD") rates applicable to the first period of review ("POR1"), compared to a net duty expense of $50.7 million reported in the third quarter of 2020.

After adjusting for the aforementioned duty recovery and other one-time items, the Company's operating income was $321.1 million for the fourth quarter of 2020, compared to similarly adjusted operating income of $347.3 million for the third quarter of 2020.

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Source: Canfor