Strong market demand, the strengthening of the U.S. dollar and the discontinuation of the vendor managed inventory ("VMI") program in its New Brunswick operation drove this improved performance.
Adjusted EBITDA of $6.7 million for the 1Q was $2 million higher than in the 1Q 2013, while Adjusted EBITDA margin increased to 32% from 26% in the same period of last year.
Operating earnings for the period, at $6.5 million, increased $2 million year-over-year reflecting improved log selling prices and sales volumes. Net income totaled $0.7 million, or $0.04 per share, for the 1Q, a decrease of $0.6 million or $0.04 per share from the same period in 2013. The decrease in net income primarily reflects a higher non-cash fair value adjustment to timber and an increased unrealized exchange loss on long-term debt.
"Acadian's operations ran well this quarter with favorable winter operating conditions extending through the end of the quarter", said Reid Carter, CEO of Acadian. "Recent announcements of capital investments and additional operating shifts in the region are expected to result in continued strong demand for softwood sawlogs going forward."
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.
