For the 1Q 2017, Acadian Timber Corp. generated net sales of $23.1 million compared to $21.4 million in the comparable period of 2016, driven primarily by favourable winter harvest conditions, particularly for spruce and fir stands. Total sales volumes were 18% higher than the same period in the prior year, driven by a 34% increase in softwood sawlog sales volumes, as the company said in the press release received by Lesprom Network.
Adjusted EBITDA for the 1Q was $8 million compared to $7 million during the comparable period in 2016. Adjusted EBITDA margin for the quarter was 35%, up from 33% in the same period last year, as the decrease in average selling price was more than offset by operating leverage from higher sales volumes and the benefit of higher and better use (HBU) land sales in Maine.
Net income totaled $4.8 million, or $0.28 per share, for the 1Q, compared to $4.3 million, or $0.26 per share, for the same period in 2016. The increase is primarily due to the aforementioned sales volumes increase and partially offset by higher fair value adjustments due to higher harvest volumes.
“Acadian generated strong free cash flow during the 1Q resulting in a payout ratio down to 62% inclusive of the impact of our recent 10% dividend increase,” said Mark Bishop, CEO of Acadian. “Our operations benefited from favorable winter conditions which supported seasonally strong log production”.
Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of 2.4 million acres of land under management, Acadian is the third largest timberland operator in New Brunswick and Maine.
