Results were less than the same period last year reflecting the delayed recognition of sales in the prior year due to the vendor managed inventory program that was in place at the New Brunswick operation. On a year-to-date basis, net sales are 2% lower than in the same period last year with a slower start-up of operations in the 2Q due to an extended mud season being largely offset by improved log pricing.
Adjusted EBITDA of $1.9 million for the 2Q was $1 million lower than in the 2Q 2013, while Adjusted EBITDA margin decreased to 16% from 19% in the same period of last year. On a year-to-date basis, Free Cash Flow improved $1 million to $6.7 million resulting in a payout ratio of 104%, below the ratio of 121% in the same period last year.
Operating earnings for the 2Q, at $1.8 million, decreased $0.9 million year-over-year, largely reflecting the timing of sales.
Net income totaled $4.7 million, or $0.28 per share, for the 2Q, an increase of $5.6 million or $0.33 per share from the same period in 2013. The increase in net income reflects a higher non-cash fair value adjustment due to lower harvest levels and a $2.7 million unrealized exchange gain on long-term debt compared to a $2.5 million unrealized loss in the same period of the prior year.
"Demand remains strong in Acadian's operating region," said Reid Carter, CEO of Acadian. "Softwood timber selling prices are benefiting from the continued positive outlook for lumber demand and strong demand from regional hardwood pulp and structural panel producers is supporting hardwood pulpwood prices."
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 second largest timberland operator in New Brunswick and Maine.
