Wednesday, November 12, 2014
Acadian Timber Corp. has recently announced the financial and operating results for the three months ended September 27, 2014 (the “third quarter”).
“Acadian’s financial performance improved significantly year-over-year”, commented Reid Carter, Chief Executive Officer of Acadian. “Solid demand for the majority of our products resulted in improved prices which, combined with good summer operating conditions, led to higher net sales and a 50% increase in Adjusted EBITDA.”
For the third quarter, Acadian generated net sales of $21.6 million on sales volume of 368 thousand m3 , a $2.8 million increase compared to the same period in 2013. The increase in net sales year-over-year reflects a 7% increase in sales volume and a 9% increase in the weighted average log selling price with the majority of the increase in this sales volume and selling price occurring in Acadian’s higher margin spruce-fir sawlog sort. On a year-to-date basis, net sales are 4% higher than in the same period last year with a 7% decline in sales volume more than offset by a 10% increase in the weighted average log price.
Adjusted EBITDA of $5.7 million for the third quarter was $1.9 million higher than in the third quarter of 2013, while Adjusted EBITDA margin increased to 26%, up 6% from the same period in 2013. Free Cash Flow was $4.7 million during the third quarter, also an increase of $1.9 million compared to the prior year. These improvements reflect the log price and volume improvements noted above along with minimal change in overall average per unit variable costs.