Acadian Timber Corp. (“Acadian” or the “Company”) (TSX:ADN) today
reported financial and operating results1 for the three months
ended March 30, 2024 (the “first quarter”).
“Achieving our first significant sale of carbon
credits, entering a renewable energy option to lease, and
purchasing additional timberlands in New Brunswick, together with
solid results from our timber operations, resulted in a compelling
first quarter of 2024,” said Adam Sheparski, President and Chief
Executive Officer. “Rebounding timber sales volumes stemming from
the hard work by the Acadian team to improve contractor
availability and the pending monetization of our remaining
registered carbon credits are expected to result in a robust fiscal
2024."
Adjusted EBITDA for the quarter was $10.6
million, compared to $5.6 million in the same period of 2023.
Acadian generated $7.8 million of Free Cash Flow during the
quarter, compared to $3.7 million in the first quarter of 2023, and
declared dividends of $5.0 million or $0.29 per share to our
shareholders.
Acadian is committed to health and safety as our
number one priority. We believe that emphasizing and achieving a
good safety record is a leading indicator of success in the broader
business. Acadian’s operations experienced two recordable safety
incidents during the quarter among contractors, which were minor in
nature, and none among employees. We remain committed to
maintaining a culture across the organization that emphasizes the
importance of strong safety performance.
________________________1 This news
release makes reference is made to “Adjusted EBITDA”, which
Acadian’s management defines as net income before interest, income
taxes, fair value adjustments, non-cash cost of sales related to
carbon credits, recovery of or impairment of land and roads and
depreciation and amortization, and to “Adjusted EBITDA margin”,
which is Adjusted EBITDA as a percentage of sales. Reference is
also made to “Free Cash Flow”, which Acadian’s management defines
as Adjusted EBITDA less interest paid, current income tax expense,
and capital expenditures excluding acquisitions of timberlands,
plus net proceeds from the sale of timberlands and other fixed
assets (proceeds less gains or losses). Reference made to “Payout
Ratio” is defined as dividends declared divided by Free Cash Flow
and “Payout Ratio with DRIP” is defined as dividends paid in cash
divided by Free Cash Flow. Management believes that Adjusted
EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Payout Ratios
are key performance measures in evaluating Acadian’s operations and
are important in enhancing investors’ understanding of the
Company’s operating performance. Adjusted EBITDA and Adjusted
EBITDA margin are indicative of the underlying profitability of
Acadian’s operating segments and are used to evaluate operational
performance. Free Cash Flow is used to evaluate Acadian’s ability
to generate sustainable cash flows from our operations while Payout
Ratios are used to evaluate Acadian’s ability to fund its
distribution using Free Cash Flow. Please refer to the section
entitled “Non-IFRS Measures” in Management’s Discussion and
Analysis for further details.
Carbon Credit Project
During the quarter, an agreement was reached to
sell 752,000 of Acadian’s registered voluntary carbon credits,
which relate to the first reporting period of its ongoing carbon
credit project in Maine. The first delivery under this agreement
for approximately 152,000 carbon credits occurred in March and has
been included in Acadian’s financial results for the first quarter.
The remaining 600,000 carbon credits included in the agreement are
expected to be delivered prior to the end of the third quarter of
2024.
Acadian’s project is registered on the ACR under
the name Anew – Katahdin Forestry Project, and requires balancing
harvest and growth, long-term planning, periodic carbon inventory
verification, and maintenance of Acadian’s sustainable forestry
certification.
The project is expected to generate an
additional 1.1 million credits over the remainder of the 10-year
crediting period. The registration process for the second and third
tranches of carbon credits for this project is expected to be
completed in the second half of 2024 and is expected to result in
approximately 360,000 credits being made available for sale. This
project has provided valuable experience to the Acadian management
team and has formed the foundation for potential further carbon
credit developments in the future.
Solar Land Lease Agreement
On February 6, 2024, Acadian executed an
agreement for the option to lease approximately 10,000 acres of its
Maine timberlands for the purpose of the development, construction,
operation, and maintenance of a solar powered electric generating
facility. The agreement includes inspection, development,
construction, and commercial operations terms with escalating
leasing fees. The incremental cash flows attributable to the
inspection and development terms are modest. However, should the
project reach the construction term, which is not expected to occur
for several years, the incremental cash flows may become material
to Acadian.
Acquisition of Timberlands
On March 14, 2024, Acadian completed the
acquisition of approximately 16,000 acres of timberland in New
Brunswick at a price of $9.0 million, financed through its existing
revolving credit facility. The timberlands are close in proximity
to Acadian’s existing operations and customer base. The property is
well stocked, benefiting from historical silviculture investments,
which will allow Acadian to expand its harvesting operations. The
property also presents significant potential for revenue
diversification through other land use opportunities.
Review of Operations
Financial and Operating
Highlights
(CAD thousands, except volume and per share information) |
March 30, 2024 |
|
March 25, 2023 |
|
Timber sales volume (000s m3) |
|
247.0 |
|
|
205.2 |
|
Carbon credit sales volume (000s credits) |
|
152.1 |
|
|
— |
|
Timber sales and services |
$ |
23,879 |
|
$ |
22,362 |
|
Carbon credit sales |
|
4,930 |
|
|
— |
|
Operating income |
|
7,598 |
|
|
5,304 |
|
Net income |
|
6,025 |
|
|
5,621 |
|
Adjusted EBITDA |
$ |
10,599 |
|
$ |
5,601 |
|
Adjusted EBITDA margin |
|
37% |
|
|
25% |
|
Free Cash Flow |
$ |
7,770 |
|
$ |
3,723 |
|
Dividends declared |
|
5,004 |
|
|
4,918 |
|
Dividends paid in cash |
|
3,723 |
|
|
3,721 |
|
Payout Ratio |
|
64% |
|
|
132% |
|
Payout Ratio with DRIP |
|
48% |
|
|
100% |
|
Per share – basic and diluted |
|
|
Net income |
$ |
0.35 |
|
$ |
0.33 |
|
Free Cash Flow |
|
0.45 |
|
|
0.22 |
|
Dividends declared |
|
0.29 |
|
|
0.29 |
|
During the first quarter, Acadian generated
sales of $28.8 million, compared to $22.4 million in the prior year
period. Acadian’s first significant sale of carbon credits occurred
during the first quarter and contributed $4.9 million to sales.
Timber sales volumes increased 35% year-over-year primarily as a
result of increased contractor availability, which was partially
offset by the impacts of unfavourable weather conditions, as well
as lower timber services activity. Biomass sales volume decreased
59% from the prior year quarter due to limited processing capacity
and fiber availability.
Weighted average selling price, excluding
biomass, decreased 2% year-over-year. Increases in softwood sawlog
and pulpwood prices were offset by decreases in hardwood sawlog
prices due to weakness in hardwood lumber markets and decreases in
hardwood pulpwood pricing, which is attributable to elevated
pricing in the first quarter of 2023 resulting from a shortage of
regional supply in that period.
Operating costs and expenses were $21.2 million
during the first quarter, compared to $17.1 million during the
prior year period. The year-over-year increase reflects the
addition of costs related to carbon credit sales as well as higher
timber sales volumes, partially offset by lower timber services
activity in New Brunswick. Weighted average variable harvesting
costs, excluding biomass, increased 5% over the prior year period
as a result of higher contractor costs and longer hauling distances
during the first quarter of 2024.
Adjusted EBITDA was $10.6 million during the
first quarter compared to $5.6 million in the prior year period.
Adjusted EBITDA margin for the quarter was 37% compared to 25% in
the prior year period. Free Cash Flow was $7.8 million, which is
$4.2 million higher than the same period in the prior year.
Net income for the first quarter totaled $6.0
million, or $0.35 per share, compared to net income of $5.6
million, or $0.33 per share in the same period of 2023. Higher
operating income was 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.
Segment Performance
New Brunswick Timberlands
The table below summarizes operating and
financial results for New Brunswick Timberlands for the first
quarter:
|
Three Months Ended |
|
March 30, 2024 |
|
March 25, 2023 |
|
Harvest (000s m3) |
|
|
Softwood |
|
113.2 |
|
|
86.9 |
|
Hardwood |
|
74.6 |
|
|
62.2 |
|
Biomass |
|
13.0 |
|
|
25.8 |
|
Total |
|
200.8 |
|
|
174.9 |
|
Sales (000s m3) |
|
|
Softwood |
|
113.9 |
|
|
85.1 |
|
Hardwood |
|
72.1 |
|
|
44.2 |
|
Biomass |
|
13.0 |
|
|
25.8 |
|
Total |
|
199.0 |
|
|
155.1 |
|
Sales Mix |
|
|
Softwood |
|
57% |
|
|
55% |
|
Hardwood |
|
36% |
|
|
28% |
|
Biomass |
|
7% |
|
|
17% |
|
Total |
|
100% |
|
|
100% |
|
Sales ($000s) |
|
|
Softwood |
$ |
8,915 |
|
$ |
6,248 |
|
Hardwood |
|
6,744 |
|
|
4,861 |
|
Biomass |
|
695 |
|
|
1,310 |
|
Total |
$ |
16,354 |
|
$ |
12,419 |
|
Timber services and other |
|
2,716 |
|
|
5,488 |
|
Sales ($000s) |
$ |
19,070 |
|
$ |
17,907 |
|
Adjusted EBITDA ($000s) |
$ |
5,996 |
|
$ |
4,883 |
|
Adjusted EBITDA margin |
|
31% |
|
|
27% |
|
Sales for New Brunswick Timberlands were $19.1
million compared to $17.9 million during the prior year period,
with increased sales volumes partially offset by lower timber
services activity. Sales volume, excluding biomass, increased 44%
due primarily to increased contractor capacity. Softwood sawlog and
hardwood sawlog sales volumes increased 35% and 28%, respectively,
and softwood pulpwood and hardwood pulpwood sales volumes increased
29% and 75%, respectively. Biomass sales volume decreased 50% from
the prior year period due to limited processing capacity and fiber
availability.
The weighted average selling price, excluding
biomass, for the first quarter was $84.19 per m3, or 2% lower than
the prior year period. Increases in softwood sawlog and softwood
pulpwood prices were offset by decreases in hardwood sawlog prices
due to weakness in hardwood lumber markets and decreases in
hardwood pulpwood pricing, which is attributable to elevated
pricing in the first quarter of 2023 resulting from a shortage of
regional supply in that period.
Operating costs and expenses were $13.2 million
during the first quarter, compared to $13.3 million in the prior
year period. Increased harvesting activity and increased weighted
average variable costs were offset by lower timber services
activity. Weighted average variable costs, excluding biomass,
increased 4% as a result of higher contractor costs compared to the
prior year period.
Adjusted EBITDA for the quarter was $6.0 million
compared to $4.9 million during the prior year period and Adjusted
EBITDA margin was 31% compared to 27%.
Maine Timberlands
The table below summarizes operating and
financial results for Maine Timberlands for the first quarter:
|
Three Months Ended |
|
March 30, 2024 |
|
March 25, 2023 |
|
Harvest (000s m3) |
|
|
Softwood |
|
28.9 |
|
|
29.3 |
|
Hardwood |
|
20.5 |
|
|
15.5 |
|
Biomass |
|
0.2 |
|
|
6.5 |
|
Total |
|
49.6 |
|
|
51.3 |
|
Sales (000s m3) |
|
|
Softwood |
|
29.7 |
|
|
28.2 |
|
Hardwood |
|
18.1 |
|
|
15.4 |
|
Biomass |
|
0.2 |
|
|
6.5 |
|
Total |
|
48.0 |
|
|
50.1 |
|
Sales Mix |
|
|
Softwood |
|
62% |
|
|
56% |
|
Hardwood |
|
38% |
|
|
31% |
|
Biomass |
|
0% |
|
|
13% |
|
Total |
|
100% |
|
|
100% |
|
Sales ($000s) |
|
|
Softwood |
$ |
2,958 |
|
$ |
2,636 |
|
Hardwood |
|
1,584 |
|
|
1,551 |
|
Biomass |
|
2 |
|
|
60 |
|
Total |
$ |
4,544 |
|
$ |
4,247 |
|
Other sales |
|
265 |
|
|
208 |
|
Sales ($000s) |
|
4,809 |
|
|
4,455 |
|
Adjusted EBITDA ($000s) |
$ |
1,163 |
|
$ |
1,099 |
|
Adjusted EBITDA margin |
|
24% |
|
|
25% |
|
Sales for Maine Timberlands during the first
quarter totaled $4.8 million compared to $4.5 million in the prior
year period. Sales volume, excluding biomass, increased 10%
reflecting increased contractor availability, partially offset by
unfavourable weather conditions.
The weighted average selling price, excluding
biomass, in Canadian dollar terms was $95.03 per m3, compared to
$96.05 per m3 during the same period of 2023. In U.S. dollar terms,
the weighted average selling price, excluding biomass, was $70.48
per m3, compared to $70.76 per m3 in 2023. Stable softwood sawlog
prices were offset by decreased hardwood pulpwood prices which is
attributable to elevated pricing in the first quarter of 2023
resulting from a shortage of regional supply in that period.
Hardwood sawlog and softwood pulpwood volumes were minimal during
the quarter.
Operating costs and expenses for the first
quarter were $3.7 million, compared to $3.4 million during the same
period in 2023, primarily due to higher weighted average variable
costs, partially offset by lower land management costs due to mild
weather conditions. Weighted average variable costs, excluding
biomass, increased 5% in Canadian dollar terms as a result of
higher contractor costs and increased hauling distances.
Adjusted EBITDA for the quarter was $1.2 million
compared to $1.1 million during the prior year period and Adjusted
EBITDA margin was 24% compared to 25%.
Environmental Solutions
As a result of increased diversification in
business activities, an additional reportable segment,
Environmental Solutions, has been added in the first quarter.
Environmental Solutions leverages the ecological functions of
Acadian’s land to address pressing environmental challenges, such
as climate change and biodiversity. In line with these objectives,
Acadian has undertaken a voluntary carbon credit project which
increases carbon sequestration and provides significant
environmental benefits. See section entitled “Carbon Credit
Project” above.
The table below summarizes operating and
financial results for Environmental Solutions for the first
quarter:
|
Three Months Ended |
|
March 30, 2024 |
|
March 25, 2023 |
|
Sales volume (000s credits) |
|
152.1 |
|
— |
|
Sales ($000s) |
$ |
4,930 |
|
— |
|
Adjusted EBITDA ($000s) |
$ |
4,138 |
|
— |
|
The registration process for the second and
third tranches of carbon credits for this project is expected to be
completed in the second half of 2024. The current model for the
project estimates an additional 1.1 million credits to be generated
over the remainder of the 10-year crediting period.
Actual credit issuances will be adjusted each
reporting period based on actual harvesting, natural disturbances,
and other factors, as well as periodic updating for inventory and
verification activities.
Outlook
While North American interest rates remain
elevated and near-term pressure on end use markets persists,
inflation has begun to show signs of easing. The consensus forecast
for U.S. housing starts is approximately 1.43 million starts in
2024 as compared to 1.42 million in 2023. We remain confident that
the stability of the northeastern forestry sector, combined with
improving long-term demand for new homes and repair and remodel
activity, will support the demand for our products as has been
demonstrated in recent years.
Although labour markets remained tight in Maine,
we continued to experience increased contractor availability in New
Brunswick through the first quarter. Management will continue to
focus on further increasing harvesting capacity through the
remainder of 2024 while ensuring that operating costs remain
reasonable. In the short to medium term, inflation is expected to
continue to impact our financial results through elevated
contractor rates and fuel surcharges, offset by the stable pricing
of primary forest products like sawlogs and pulpwood.
Demand for Acadian’s sawlogs is mainly driven by
regional supply and demand. Low regional inventories as a result of
the unfavourable weather conditions during the first quarter are
expected to contribute to stable demand as we progress through
2024. Pricing for softwood sawtimber is expected to remain stable
or slightly improved and pricing for hardwood sawtimber is expected
to remain stable. While modest recovery in hardwood lumber pricing
was noted during the quarter, it may be a longer period before
pricing for hardwood sawtimber improves. Demand and pricing for
softwood and hardwood pulpwood is expected to be steady, mainly
impacted by supply in the region.
During 2023, purchasers of voluntary carbon
credits increased their focus on carbon credits of high quality,
and expended greater time and effort performing due diligence. This
shift may have delayed some sales, however, underlying demand and
pricing for voluntary carbon credits are expected to remain stable.
The protocol for developing compliance market carbon credits from
managed forests in Canada was recently finalized. Acadian is
evaluating the protocol and the opportunities to develop eligible
carbon credits that it may present.
Quarterly Dividend
Based on a strong balance sheet and positive
outlook for the remainder of the year, Acadian is pleased to
announce a dividend of $0.29 per share, payable on July 15, 2024 to
shareholders of record June 30, 2024.
Acadian Timber Corp.
(“Acadian”) 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.
Acadian’s products include softwood and hardwood sawlogs, pulpwood
and biomass by-products, sold to approximately 90 regional
customers. Acadian also develops carbon credits for sale in
voluntary carbon credit markets.
Acadian’s business strategy is to maximize cash
flows from its existing timberland assets through sustainable
forest management and other land use activities while growing its
business by acquiring assets and actively managing these assets to
drive improved performance.
Acadian’s shares are listed for trading on the
Toronto Stock Exchange under the symbol ADN.
For further information, please visit our
website at www.acadiantimber.com or contact:
Susan WoodChief Financial OfficerTel:
506-737-2345 Email: ir@acadiantimber.com
Cautionary Statement Regarding
Forward-Looking Information and Statements
This News Release contains forward-looking
information and statements within the meaning of applicable
Canadian securities laws that involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Acadian Timber Corp. and its
subsidiaries (collectively, “Acadian”), or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Forward-looking information is included in this
MD&A and includes statements made in the sections entitled
“Carbon Credit Project”, “Solar Land Lease Agreement”, “Acquisition
of Timberlands” and “Outlook” and without limitation other
statements regarding management’s beliefs, intentions, results,
performance, goals, achievements, future events, plans and
objectives, business strategy, growth strategy and prospects,
access to capital, liquidity and trading volumes, dividends, taxes,
capital expenditures, projected costs, market trends and similar
statements concerning anticipated future events, results,
achievements, circumstances, performance or expectations that are
not historical facts. All forward-looking statements in this
MD&A are qualified by these cautionary statements.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, should not be unduly relied upon, and will
not necessarily be accurate indications of whether or not such
results will be achieved. Actual results may vary. These
forward-looking statements include, but are not limited to:
- Expectations regarding the number
and timing of carbon credits that will be successfully registered
and available for sale, as well as the timing of sales. Actual
credit issuances will be adjusted each reporting period based on
actual harvesting, natural disturbances and other factors, as well
as periodic updating for inventory and verification activities. The
timing of sales is dependent on negotiations with third
parties.
- Expectations regarding advancement
through the terms of the solar land lease agreement and the
resulting potential financial impact to Acadian, which may be
impacted by the lessee’s ability to obtain the necessary regulatory
permits and approvals for the solar project, as well as to obtain
third party financing. At any time during the inspection term or
the development term, the tenant has the right to terminate the
agreement which would terminate the lease fees paid to
Acadian.
- Expectations regarding potential
future revenue to be earned from newly acquired timberlands through
either expanding harvesting operations or realizing other land use
revenue opportunities, which may be impacted by future contractor
availability, product demand, pricing and end use markets.
- Expectations regarding product
demand, pricing and end use markets, including expectations for
U.S. housing starts, which may be impacted by changes in interest
rates, U.S. population demographics and the inventory of homes for
sale. Expectations regarding product demand and pricing are based
on anticipated market conditions, anticipated regional inventory
levels of key customers, and the economic situation of key
customers. Estimates for U.S. housing starts are based on forecasts
published by major financial institutions.
Other risks and factors are discussed in each of
the Annual Information Form dated March 28, 2024 and the Management
Information Circular dated March 28, 2024 and other filings of
Acadian made with securities regulatory authorities, which are
available on SEDAR+ at www.sedarplus.ca. Forward-looking
information is based on various material factors or assumptions,
which are based on information currently available to Acadian.
Readers are cautioned that the preceding list of material factors
or assumptions is not exhaustive. Although the forward-looking
statements contained in this MD&A are based upon what
management believes are reasonable assumptions, Acadian cannot
assure readers that actual results will be consistent with these
forward-looking statements. The forward-looking statements in this
MD&A are made as of the date of this MD&A based on
information currently available to management and should not be
relied upon as representing Acadian’s views as of any date
subsequent to the date of this MD&A. Acadian assumes no
obligation to update or revise these forward-looking statements to
reflect new information, events, circumstances or otherwise, except
as may be required by applicable law.
Acadian Timber
Corp.Interim Condensed Consolidated Balance
Sheets
(unaudited)
|
|
|
|
As at(CAD thousands) |
|
March 30, 2024 |
December 31, 2023 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash |
|
$ |
4,048 |
$ |
1,831 |
|
Accounts receivable and other assets |
|
|
11,419 |
|
9,301 |
|
Current income taxes receivable |
|
|
291 |
|
1,668 |
|
Inventories |
|
|
13,932 |
|
15,329 |
|
|
|
|
29,690 |
|
28,129 |
|
Timber |
|
|
455,429 |
|
442,830 |
|
Land, roads, and other fixed assets |
|
|
94,232 |
|
90,854 |
|
Intangible asset |
|
|
6,140 |
|
6,140 |
|
Total assets |
|
$ |
585,491 |
$ |
567,953 |
|
Liabilities and shareholders’ equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable and accrued liabilities |
|
$ |
8,129 |
$ |
9,370 |
|
Dividends payable to shareholders |
|
|
5,004 |
|
4,983 |
|
Short-term debt |
|
|
10,298 |
|
— |
|
Current portion of long-term debt |
|
|
43,360 |
|
— |
|
|
|
|
66,791 |
|
14,353 |
|
Long-term debt |
|
|
64,777 |
|
105,515 |
|
Deferred income tax liabilities, net |
|
|
130,861 |
|
129,103 |
|
Total liabilities |
|
|
262,429 |
|
248,971 |
|
Shareholders’ equity |
|
|
323,062 |
|
318,982 |
|
Total liabilities and shareholders’ equity |
|
$ |
585,491 |
$ |
567,953 |
|
Acadian Timber
Corp.Interim Condensed Consolidated Statements of
Net Income
(unaudited)
|
|
|
|
Three Months Ended(CAD thousands, except per share data) |
|
March 30, 2024 |
|
March 25, 2023 |
|
Sales |
|
$ |
28,809 |
|
$ |
22,362 |
|
Operating costs and expenses |
|
|
|
Cost of sales |
|
|
18,265 |
|
|
15,126 |
|
Selling, administration and other |
|
|
2,833 |
|
|
1,858 |
|
Silviculture |
|
|
11 |
|
|
1 |
|
Depreciation and amortization |
|
|
102 |
|
|
73 |
|
|
|
|
21,211 |
|
|
17,058 |
|
Operating income |
|
|
7,598 |
|
|
5,304 |
|
Interest expense, net |
|
|
(859 |
) |
|
(809 |
) |
Other items |
|
|
|
Fair value adjustments and other |
|
|
2,189 |
|
|
3,183 |
|
Gain on sale of timberlands and other fixed assets |
|
73 |
|
|
224 |
|
Income before income taxes |
|
|
9,001 |
|
|
7,902 |
|
Income tax expense |
|
|
(2,976 |
) |
|
(2,281 |
) |
Net income |
|
$ |
6,025 |
|
$ |
5,621 |
|
Net income per share – basic and diluted |
|
$ |
0.35 |
|
$ |
0.33 |
|
Acadian Timber
Corp.Interim Condensed Consolidated Statements of
Comprehensive Income
(unaudited)
Three Months Ended(CAD thousands) |
March 30, 2024 |
March 25, 2023 |
|
Net income |
$ |
6,025 |
$ |
5,621 |
|
Other comprehensive income |
|
|
Items that may be reclassified subsequently to net income: |
|
|
Unrealized foreign currency translation gain |
|
1,798 |
|
859 |
|
Comprehensive income |
$ |
7,823 |
$ |
6,480 |
|
Acadian Timber
Corp.Interim Condensed Consolidated Statements of
Cash Flows
(unaudited)
Three Months Ended(CAD thousands) |
March 30, 2024 |
|
March 25, 2023 |
|
Cash provided by (used for): |
|
|
Operating activities |
|
|
Net income |
$ |
6,025 |
|
$ |
5,621 |
|
Adjustments to net income: |
|
|
Income tax expense |
|
2,976 |
|
|
2,281 |
|
Depreciation and amortization |
|
102 |
|
|
73 |
|
Fair value adjustments and other |
|
(2,189 |
) |
|
(3,183 |
) |
Non-cash cost of sales related to carbon credits |
|
2,826 |
|
|
— |
|
Gain on sale of timberlands and other fixed assets |
|
(73 |
) |
|
(224 |
) |
Income taxes paid |
|
(451 |
) |
|
(395 |
) |
Net change in non-cash working capital balances and other |
|
(4,403 |
) |
|
(3,130 |
) |
|
|
4,813 |
|
|
1,043 |
|
Financing activities |
|
|
Proceeds from short-term debt |
|
10,298 |
|
|
— |
|
Dividends paid to shareholders |
|
(3,723 |
) |
|
(3,721 |
) |
|
|
6,575 |
|
|
(3,721 |
) |
Investing activities |
|
|
Additions to timber, land, roads, and other fixed assets |
|
(9,250 |
) |
|
(31 |
) |
Proceeds from sale of timberlands and other fixed assets |
|
79 |
|
|
230 |
|
|
|
(9,171 |
) |
|
199 |
|
Increase / (Decrease) in cash during the period |
|
2,217 |
|
|
(2,479 |
) |
Cash, beginning of period |
|
1,831 |
|
|
6,230 |
|
Cash, end of period |
$ |
4,048 |
|
$ |
3,751 |
|
Acadian Timber
Corp.Reconciliations to Adjusted EBITDA and Free
Cash Flow
(unaudited)
(CAD thousands) |
March 30, 2024 |
|
March 25, 2023 |
|
Net income |
$ |
6,025 |
|
$ |
5,621 |
|
Add / (deduct): |
|
|
Interest expense, net |
|
859 |
|
|
809 |
|
Income tax expense |
|
2,976 |
|
|
2,281 |
|
Depreciation and amortization |
|
102 |
|
|
73 |
|
Fair value adjustments and other |
|
(2,189 |
) |
|
(3,183 |
) |
Non-cash cost of sales related to carbon credits |
|
2,826 |
|
|
— |
|
Adjusted EBITDA |
$ |
10,599 |
|
$ |
5,601 |
|
Add / (deduct): |
|
|
Interest paid on debt, net |
|
(829 |
) |
|
(779 |
) |
Additions to land, roads, and other fixed assets |
|
(128 |
) |
|
(31 |
) |
Gain on sale of timberlands and other fixed assets |
|
(73 |
) |
|
(224 |
) |
Proceeds from sale of timberlands and other fixed assets |
|
79 |
|
|
230 |
|
Current income tax expense |
|
(1,878 |
) |
|
(1,074 |
) |
Free Cash Flow |
$ |
7,770 |
|
$ |
3,723 |
|
Dividends declared |
$ |
5,004 |
|
$ |
4,918 |
|
Dividends paid in cash |
$ |
3,723 |
|
$ |
3,721 |
|
Payout Ratio |
|
64% |
|
|
132% |
|
Payout Ratio with DRIP |
|
48% |
|
|
100% |
|
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