Acadian Timber posts positive Q4 and year-end results
February 10, 2022 By Acadian Timber Corp.
Acadian Timber is reporting positive results in its Q4 and end-of-year report, including higher sales than in the previous year periods.
“Acadian is extremely proud to announce that there were no recordable safety incidents among employees and contractors during the year while delivering solid operational results,” commented Adam Sheparski, president and CEO. “Market demand for our products remains strong with a number of new customers beginning to take delivery and we continue to seek business development opportunities and improvements throughout the business.”
Acadian generated sales of $25.9 million, compared to $24.9 million in the prior year period. The weighted average selling price, excluding biomass, increased seven per cent year-over-year benefiting from favourable operating conditions and increased sawlog pricing. Sales volume, excluding biomass, decreased seven per cent due to lower hardwood pulpwood sales. Biomass sales volume decreased 27 per cent due to lower domestic sales.
Operating costs and expenses were $19.8 million during the fourth quarter, compared to $18.1 million during the prior year period. This year-over-year increase reflects higher harvesting activity in Maine and increased timber services in New Brunswick. Weighted average variable costs, excluding biomass, increased 10 per cent reflecting higher log processing and fuel costs, partially offset by a stronger Canadian dollar.
Adjusted EBITDA was $6.3 million during the fourth quarter, compared to $7.3 million in the prior year period and Adjusted EBITDA margin for the quarter was 24 per cent compared to 29 per cent in the prior year period.
Net income for the fourth quarter totalled $6.5 million, or $0.39 per share, compared to $15.3 million, or $0.92 per share in the same period of 2020. Net income was impacted by a combination of lower gains on non-cash items such as unrealized foreign exchange on long-term debt and fair value adjustments in 2021 compared to 2020.
Acadian generated sales of $95.7 million, compared to $91.0 million in the prior year. Sales volume, excluding biomass, decreased five per cent primarily due to lower softwood pulpwood sales due to the competition of sawmill residuals and to a lesser extent lower hardwood pulpwood sales due to increased regional inventories. Acadian’s weighted average selling price, excluding biomass, increased four per cent with a higher value product mix and strong sawlog prices.
Operating costs and expenses were $74.0 million during 2021, compared to $70.2 million in the prior year due to higher harvesting costs and timber services activity. Weighted average variable costs, excluding biomass, increased two per cent due to higher fuel costs partially offset by a stronger Canadian dollar.
Adjusted EBITDA for the year ended December 31, 2021 was $22.5 million, compared to $21.5 million in the prior year, while Adjusted EBITDA margin was 23 per cent compared to 24 per cent in the prior year.
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