Acadian Timber Corp’s third quarter results
Acadian Timber Corp. recently reported financial and operating results for the third quarter, ending September 25, 2021.
“Steady prices and strong demand for our sawlogs have enabled us to generate solid operating and financial performance for the third quarter. Acadian expects continued steady demand for its key products for the remainder of the year,” commented Adam Sheparski, President and CEO. “We are also very proud to report no recordable safety incidents among employees or contractors for three straight quarters. Health and safety remain a key focus for Acadian.”
Acadian owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine and provides timber services relating to approximately 1.3 million acres of Crown licensed timberlands in New Brunswick. Acadian’s products include softwood and hardwood sawlogs, pulpwood, and biomass by-products, sold to approximately 90 regional customers.
Acadian generated $3.6 million of Free Cash Flow and declared dividends of $4.8 million to its shareholders during the third quarter. Acadian’s balance sheet remains solid with $23.0 million of net liquidity as of September 25, 2021, including funds available under their credit facilities.
During the third quarter, Acadian generated sales of $22.7 million. The weighted average selling price, excluding biomass, increased 8% year-over-year benefiting from increased sawlog pricing driven by favourable market dynamics.
For the nine months ended September 25, 2021, net income was $11.8 million, or $0.71 per share, which represents an increase of $5.0 million compared to the prior period, primarily as a result of a non-cash unrealized foreign exchange gain on long-term debt of $0.4 million this year compared to a loss of $2.9 million in 2020 combined with lower administrative costs and interest expense.
During the first nine months of 2021, New Brunswick Timberlands’ sales of $50.7 million was 3% higher than the prior-year period. Sales volume, excluding biomass, decreased 5% due to a weak demand for softwood pulpwood relative to the first nine months of 2020. The weighted average selling price, excluding biomass, increased 5% due to high sawlog prices and a favourable product mix. Operating costs and expenses of $37.7 million during the first nine months of 2021 were $0.3 million higher than the prior-year period due to additional timber services activity. Adjusted EBITDA was $13.1 million compared to $11.9 million during the first nine months of 2020 and Adjusted EBITDA margin increased by 2%.
There were no recordable safety incidents amongst employees or contractors during the third quarter of 2021.
Acadian is pleased to announce a dividend of $0.29 per share, payable on January 14, 2022, to shareholders of record on December 31, 2021.