Acadian Timber Corp. reported financial and operating results for the three months ended September 30, 2017 (the 3Q). In the quarter, Acadian generated Adjusted EBITDA of $6.7 million compared to $5.2 million in the prior year period driven by the impact of stronger log sales volumes, partially offset by higher operating costs from increased average haul distances.
In the 3Q, Acadian generated net sales of $22.2 million compared to $19.3 million in the prior year period primarily due to a 20% increase in log sales volumes.
Adjusted EBITDA margin increased to 30% from 27% in the prior year period as the benefits of higher log sales volumes and stronger sales of higher and better use (HBU) land in Maine were partially offset by higher operating costs due to longer average haul distances.
Net income for the 3Q totaled $9.7 million, or $0.58 per share, compared to $2.8 million, or $0.17 per share, respectively, for the same period in 2016. The increase is primarily due to higher Adjusted EBITDA as described above and favourable foreign exchange revaluation of long-term debt.
During the first nine months of 2017, Acadian’s net sales were $57.9 million, reflecting an improvement over the prior year period of $54.4 million primarily attributed to a 15% increase in log sales volumes from favourable harvest conditions throughout the year, particularly for spruce and fir stands.
For the nine months ended September 30, 2017, net income improved to $18.5 million, or $1.10 per share, representing an increase of $5.5 million over the prior year period primarily due to higher Adjusted EBITDA as described above and favourable foreign exchange revaluation of U.S. dollar denominated long-term debt.
“Demand across Acadian’s sawtimber and hardwood pulpwood markets remained strong during the 3Q”, said Mark Bishop, CEO of Acadian. “While seasonally drier than normal summer weather supported strong third quarter log production, annual harvest levels will continue to reflect our long term sustainable targets.”
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.
