During the 2Q 2021, Acadian Timber Corp. generated sales of $18.4 million, compared to $11.5 million in the prior year period. Sales volume, excluding biomass, increased 55% over the prior year period due to favourable operating conditions and stable demand.
Adjusted EBITDA was $3.8 million during the 2Q 2021, compared to $1.4 million in the prior year period while the Adjusted EBITDA margin for the quarter was 21%, compared to 12% in the prior year period for the reasons discussed above. Free Cash Flow was $2.9 million compared to $0.2 million of negative Free Cash Flow in the same period in 2020.
Net income for the 2Q 2021 totaled $5.9 million, or $0.35 per share, compared to a net income of $5.2 million, or $0.31 per share in the same period in 2020. The increase in net income from the prior year period is due to increased operating earnings offset by a combination of lower non-cash fair value adjustments and unrealized foreign exchange gain on long-term debt in 2021 compared to 2020.
“With favourable operating conditions and steady demand for our products, we were able to reduce our inventory and recover the volume shortfall of the first quarter,” commented Erika Reilly, CEO. “Acadian expects continued steady demand for its key products for the remainder of the year.”
During the first half of 2021, Acadian sales of $44.3 million increased 3% compared to the prior year period. The weighted average selling price, excluding biomass, decreased 1%, and the sales volume was flat year-over-year. Operating costs and expenses of $33.8 million were also flat year-over-year. Strong sawlogs prices, lower administrative costs, and increased timber services revenues resulted in Adjusted EBITDA of $10.7 million compared to $9.7 million during the first half of 2020. Adjusted EBITDA margin improved to 24% from 23%.
For the six months ended June 26, 2021, net income was $11.7 million, or $0.70 per share, which represents an increase of $10.2 million compared to the prior period, primarily as a result of a non-cash unrealized foreign exchange gain on long term debt of $3.5 million this year compared to a loss of $5.2 million in 2020 combined with lower administrative costs and interest expense.
Acadian Timber Corp. is one of the largest timberland owners in Eastern Canada and the Northeastern U.S. and has a total of approximately 2.4 million acres of land under management.
