During the Q2 2024, Acadian Timber Corp. generated sales of $41.2 million, compared to $20.7 million in the prior year period. The sale of 600,000 voluntary carbon credits contributed $19.7 million to total sales. Timber sales volume, excluding biomass, increased 17% year-over-year primarily as a result of increased contractor availability and favourable weather conditions. Biomass sales volume was negligible during the Q2 due to limited processing capacity.
Adjusted EBITDA was $20.6 million during the Q2 compared to $5.7 million in the prior year period, as a result of carbon credit sales. Adjusted EBITDA margin for the quarter was 50% compared to 27% in the prior year period. Free Cash Flow was $16.4 million, which is $12.3 million higher than the same period in the prior year.
Net income for the Q2 2024 totaled $7.9 million, or $0.46 per share, compared to $5.8 million, or $0.34 per share in the same period of 2023. Higher operating income was partially offset by lower non-cash fair value adjustments and lower gains on sale of timberlands and other fixed assets, as well as higher income tax expense, as compared to the prior year period.
“The agreement reached during the Q1 to sell nearly all of our registered carbon credits was fulfilled during the Q2 and resulted in record quarterly Adjusted EBITDA and Free Cash Flow,” said Adam Sheparski, President and CEO. “Within our timber operations, favourable weather and improved contractor availability enabled Acadian to harvest and sell additional volume, despite starting to experience some pricing pressure."
During the first half of 2024, Acadian generated sales of $70.0 million as compared to $43.1 million in the prior year period.
For the six months ended June 29, 2024, net income was $13.9 million, or $0.81 per share, which represents an increase of $2.5 million compared to the prior year period, primarily the result of higher operating income, partially offset by lower noncash fair value adjustments and lower gains on sale of timberlands and other fixed assets, as well as higher income tax 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. Acadian owns and manages approximately 777,000 acres of freehold timberlands in New Brunswick, approximately 300,000 acres of freehold timberlands in Maine and provides timber services relating to approximately 1.3 million acres of Crown licensed timberlands in New Brunswick.
