During the Q4 2023, Acadian Timber Corp. generated sales of $23.8 million, consistent with the prior year period. Sales volume, excluding biomass, increased 4% over the prior year. New Brunswick experienced improved contractor availability and increased volumes, however, contractor availability remained a significant challenge in Maine and resulted in decreased volumes.
Adjusted EBITDA was $4.4 million during the Q4 2023, compared to $4.1 million in the prior year period and Adjusted EBITDA margin for the quarter was 19% compared to 17% in the prior year period as a result of lower variable costs. Free Cash Flow was $2.9 million compared to $2.0 million in the same period of 2022 due to lower current income tax expense
Net income for the Q4 2023 totaled $11.6 million, or $0.68 per share, compared to $22.0 million, or $1.30 per share in the same period of 2022. The decrease in net income was largely due to the impact of lower gains on non-cash fair value adjustments in 2023 compared to 2022.
Year Ended December 31, 2023
Acadian generated sales of $93.5 million, compared to $90.5 million in the prior year as a result of increased pricing partially offset by decreased sales volumes. Demand for all products remained stable, however, sales volume, excluding biomass decreased 5% as a result of challenging operating conditions in Maine including continued limited contractor availability and unfavourable weather conditions.
Adjusted EBITDA for the year ended December 31, 2023 was $20.6 million, compared to $18.2 million in the prior year, as a result of higher operating income for the reasons discussed above, combined with higher gain on sale of timberlands from the sale of 21 acres of timberlands. Adjusted EBITDA margin was 22% compared to 20% in the prior year. Free Cash Flow was $15.0 million compared to $12.2 million in 2022 due to higher Adjusted EBITDA and lower current income tax expense.
Net income for the year ended December 31, 2023 totaled $29.4 million, or $1.72 per share, compared to net income of $35.5 million, or $2.11 per share, in 2022 with higher operating income offset by lower non-cash fair value adjustments in 2023 compared to 2022.
“Acadian performed well and generated solid results for 2023, despite challenges resulting from labour shortages, unfavourable weather conditions, and inflationary pressures. Demand and pricing for our products remained stable, reflecting the favourable attributes of Northeast regional log markets,” commented Adam Sheparski, President and CEO. “We are also pleased with the progress made early in 2024 toward our growth objectives, including executing our first long-term agreement related to renewable energy."
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.
