Acadian Timber’s net sales up to $22.2 million in 3Q | 15 Nov 2017

Posted by Jo English on 15th November 2017

In the 3Q, Acadian Timber Corp. 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 2017 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.

“Demand across Acadian’s sawtimber and hardwood pulpwood markets remained strong during the third quarter,” 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.”

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.

This positive impact was partially offset by a 3% decrease in the weighted average log selling price driven by weaker sawlog and pulpwood pricing. Adjusted EBITDA improved to $17.3 million from $15.5 million during this period while the Adjusted EBITDA margin improved to 30% from 28% benefiting from the aforementioned sales volume increase as well as higher HBU land sales in Maine.

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.

Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S.