Investors, analysts and other interested parties
can access Acadian Timber Corp.’s 2018 First Quarter Results via
conference call or webcast on Tuesday May 8, 2018 at 9:00AM ET,
please dial 1-866-521-4909 toll free in North America (Canada and
the USA), or for overseas calls, please dial 1-647-427-2311 at
approximately 8:50AM ET. For those unable to participate, a taped
rebroadcast will be available until midnight June 8, 2018. To
access this rebroadcast, please dial 1-800-585-8367 or
1-416-621-4642 Conference ID #5756359.
Acadian Timber Corp. (“Acadian” or the “Company”) (TSX:ADN) today
reported financial and operating results1 for the three months
ended March 31, 2018 (the “first quarter”).
“Acadian posted a strong start to the year with
operations benefiting from favourable winter conditions which
supported seasonally strong log production. We believe we are well
positioned to maintain this momentum through 2018”, commented Mark
Bishop, Chief Executive Officer of Acadian. “We are pleased to
announce that our Board of Directors has approved a 3% increase in
Acadian’s quarterly dividend.”
Acadian had a solid start to the year and posted
strong performance for the three-month period ended March 31, 2018.
The Company generated Adjusted EBITDA1 of $8.9 million for the
first quarter, up from $8.0 million in the prior year, as our
operations benefitted from favourable winter harvest conditions and
strong seasonal demand that led to an increase in log sales volumes
of 17% compared to the same quarter of 2017. Demand for most of our
products continues to be solid with our weighted average log
selling price per cubic meter remaining in-line with the first
quarter of last year.
During the first quarter of 2018, Acadian
generated $7.3 million of Free Cash Flow1 and declared dividends of
$4.6 million to our shareholders. This represents a payout ratio of
63%, which is comfortably below our long-term annual target of 95%
but in-line with expectations given the seasonality of our
operations.
1 |
This news
release makes reference to Adjusted EBITDA, Adjusted EBITDA margin
and Free Cash Flow which are key performance measures in evaluating
Acadian’s operations and are important in enhancing investors’
understanding of Acadian’s operating performance. Acadian’s
management defines Adjusted EBITDA as earnings before interest,
taxes, fair value adjustments, recovery of or impairment of land
and roads, unrealized exchange gain/loss on debt, depreciation and
amortization and Adjusted EBITDA margin as Adjusted EBITDA as a
percentage of its total revenue. Free Cash Flow is defined as
Adjusted EBITDA less interest paid, current income tax expense, and
capital expenditures plus net proceeds from the sale of fixed
assets (selling price less gains or losses included in Adjusted
EBITDA). As these performance measures do not have
standardized meanings prescribed by International Financial
Reporting Standards (“IFRS”), they may not be comparable to similar
measures presented by other companies. As a result, we have
provided in this news release reconciliations of net income, as
determined in accordance with IFRS, to Adjusted EBITDA, Adjusted
EBITDA margin and Free Cash Flow. |
Operating Leadership
Transition
Acadian announced today the start of a
retirement transition for Marcia McKeague, Vice President of
Operations for Acadian’s Maine Timberlands since Acadian’s
inception. Marcia will retire at the end of 2018 and in the interim
period will continue to work with the Acadian team supporting the
leadership transition, while also working on various strategic
initiatives. Marcia has had a long, accomplished career spanning
over 35 years and is a well-recognized professional forester in the
State of Maine. “The entire management team would like to thank Ms.
McKeague for her passionate dedication and significant
contributions to Acadian”, commented Mr. Bishop.
Acadian also announced that Luc Ouellet has been
promoted to Senior Vice President of Operations assuming
responsibility for the Maine operations in addition to his current
New Brunswick responsibilities. Mr. Ouellet has served as Vice
President of Acadian’s New Brunswick operations since the company’s
inception. He is a Registered Professional Forester in both New
Brunswick and Maine, a member of the Professional Engineer
Association in New Brunswick and has been involved in managing
timberlands for over 30 years.
“I look forward to working with Luc and Marcia
through the transition, and fully anticipate that the Maine and New
Brunswick teams under Luc’s leadership will continue to apply their
long-demonstrated spirit of innovation to secure Acadian’s safety,
sustainable forest management and financial performance as “best in
class””, added Mr. Bishop.
Review of Operations
Financial and Operating Highlights
Three Months Ended(CAD thousands, except per share
information) |
|
March 31, 2018 |
|
|
|
March 25, 2017 |
|
Sales volume (000s
m3) |
|
419.7 |
|
|
|
356.0 |
|
Net
sales1 |
$ |
32,948 |
|
|
$ |
28,012 |
|
Net
income |
|
1,986 |
|
|
|
4,758 |
|
Adjusted
EBITDA |
$ |
8,870 |
|
|
$ |
8,030 |
|
Free Cash
Flow |
$ |
7,258 |
|
|
$ |
7,388 |
|
Dividends
declared |
|
4,601 |
|
|
|
4,601 |
|
Payout
ratio |
|
63 |
% |
|
|
62 |
% |
Per share –
basic and
diluted |
|
|
|
Net
income |
$ |
0.12 |
|
|
$ |
0.28 |
|
Free Cash
Flow |
|
0.43 |
|
|
|
0.44 |
|
Dividends
declared |
|
0.275 |
|
|
|
0.275 |
|
1. Certain prior year amounts have been
reclassified to conform to the current year presentation as a
result of adoption of IFRS 15, Revenue From Contracts with
Customers, on January 1, 2018
For the first quarter, Acadian generated net
sales of $32.9 million, compared to $28.0 million in the comparable
period of 2017, as favourable winter harvest conditions and strong
demand for softwood sawlogs resulted in a 17% increase in total log
sales volumes compared to the prior year. Acadian’s weighted
average log selling price remained in-line with the prior year as
the benefit from a demand-driven 5% increase in softwood sawlog
prices was offset by changes in the sales mix.
As a result of the aforementioned increase in
log sales volumes, which was partially offset by an increase in
variable log harvest costs per m3, Adjusted EBITDA climbed to $8.9
million during the quarter from $8.0 million in the prior year.
However, the Adjusted EBITDA margin for the quarter of 27% was down
from 29% in the prior year due to reduced higher and better use
land sales in Maine as well as timing of operating costs.
Net income totaled $2.0 million, or $0.12 per
share, for the first quarter, compared to $4.8 million, or $0.28
per share, for the same period in 2017 as the aforementioned
increase in Adjusted EBITDA was more than offset by the impact of
foreign exchange revaluation on Acadian’s U.S. dollar denominated
long-term debt.
Acadian’s balance sheet continues to be solid
with $97.6 million of net liquidity as at March 31, 2018, including
funds available under Acadian’s Revolving Facility and our stand-by
equity commitment with Brookfield.
Total dividends declared to shareholders during
the three months ended March 31, 2018 were $4.6 million, or $0.275
per share, unchanged from the prior year.
Segment Performance
New Brunswick Timberlands
The table below summarizes operating and
financial results for New Brunswick Timberlands.
|
Three Months Ended March 31, 2018 |
Three Months Ended March 25, 2017 |
|
Harvest |
Sales |
Sales |
|
|
Results |
|
Harvest |
Sales |
Sales |
|
|
Results |
|
|
(000s
m3) |
(000s
m3) |
Mix |
|
|
($000s) |
|
(000s
m3) |
(000s
m3) |
Mix |
|
|
($000s) |
|
Softwood |
158.6 |
157.4 |
54 |
% |
$ |
8,885 |
|
135.3 |
126.5 |
47 |
% |
$ |
7,258 |
|
Hardwood |
93.0 |
83.0 |
28 |
% |
|
6,566 |
|
115.3 |
94.7 |
36 |
% |
|
7,602 |
|
Biomass |
52.9 |
52.9 |
18 |
% |
|
1,451 |
|
45.3 |
45.3 |
17 |
% |
|
965 |
|
|
304.5 |
293.3 |
100 |
% |
|
16,902 |
|
295.9 |
266.5 |
100 |
% |
|
15,825 |
|
Timber
services and other sales1 |
|
|
|
|
6,218 |
|
|
|
|
|
5,428 |
|
Net
sales1 |
|
|
|
$ |
23,120 |
|
|
|
|
$ |
21,253 |
|
Adjusted EBITDA |
|
|
|
$ |
5,857 |
|
|
|
|
$ |
6,128 |
|
Adjusted
EBITDA margin |
|
|
|
|
25 |
% |
|
|
|
|
29 |
% |
1. Certain prior year amounts have been
reclassified to conform to the current year presentation as a
result of adoption of IFRS 15, Revenue From Contracts with
Customers, on January 1, 2018
Net sales for our New Brunswick Timberlands
totaled $23.1 million compared to $21.3 million in the prior year.
Log sales volumes, excluding biomass, increased 9% to 240 thousand
m3 from 221 thousand m3 in the first quarter of 2017 reflecting
favourable harvest conditions, particularly for spruce and fir
stands, strong seasonal demand for softwood sawlogs, and improved
demand for softwood pulpwood. In addition, timber services and
other sales increased 15% compared to the prior year primarily due
to the timing of harvest activities.
The weighted average log selling price during
the quarter was $64.28 per m3, down from $67.19 per m3 in the prior
year. Demand for softwood sawlogs in New Brunswick remained strong
with prices increasing 2%, however this was more than offset by
lower relative volumes of higher-valued hardwood pulpwood and
higher relative volumes of lower-valued softwood pulpwood. Prices
for these products remained in-line with the prior year.
Biomass product sales volumes increased by 17%
year-over-year as shipments to export markets have recently
resumed. The return of the export markets also resulted in a 26%
increase in gross margin earned compared to the first quarter of
2017.
Operating costs for the quarter were $17.3
million, compared to $15.1 million in the first quarter of 2017,
primarily due to higher harvest volumes and the timing of timber
services and other sales. Variable log harvest costs per m3
increased 4% primarily due to longer hauling distances and
increased fuel costs.
Adjusted EBITDA was $5.9 million during the
first quarter of 2018, compared to $6.1 million in the prior year,
as the impact of the aforementioned increase in log sales volumes
were more than offset by lower weighted average log selling prices
and higher variable harvest costs per m3. Adjusted EBITDA margin
decreased to 25% for the quarter from 29% during the same period in
the prior year.
There was one minor recordable safety incident
among employees and none among contractors during the first quarter
of 2018 at our New Brunswick Timberlands.
Maine Timberlands
The table below summarizes operating and
financial results for Maine Timberlands.
|
Three Months Ended March 31, 2018 |
Three Months Ended March 25, 2017 |
|
Harvest |
Sales |
Sales |
|
|
Results |
|
Harvest |
Sales |
Sales |
|
|
Results |
|
|
(000s m3) |
(000s m3) |
Mix |
|
|
($000s) |
|
(000s m3) |
(000s m3) |
Mix |
|
|
($000s) |
|
Softwood |
91.6 |
91.2 |
72 |
% |
$ |
7,321 |
|
62.8 |
62.6 |
70 |
% |
$ |
4,751 |
|
Hardwood |
33.9 |
30.7 |
24 |
% |
|
2,254 |
|
29.4 |
25.7 |
29 |
% |
|
1,892 |
|
Biomass |
4.5 |
4.5 |
4 |
% |
|
7 |
|
1.2 |
1.2 |
1 |
% |
|
2 |
|
|
130.0 |
126.4 |
100 |
% |
|
9,582 |
|
93.4 |
89.5 |
100 |
% |
|
6,645 |
|
Other
sales |
|
|
|
|
246 |
|
|
|
|
|
114 |
|
Net
sales |
|
|
|
$ |
9,828 |
|
|
|
|
$ |
6,759 |
|
Adjusted EBITDA |
|
|
|
$ |
3,464 |
|
|
|
|
$ |
2,156 |
|
Adjusted
EBITDA margin |
|
|
|
|
35 |
% |
|
|
|
|
32 |
% |
Net sales totaled $9.8 million compared to $6.8
million for the same period last year as log sales volumes
increased meaningfully to 122 thousand m3 from 88 thousand m3 in
the prior year. This increase was primarily driven by strong
seasonal demand for softwood sawlogs, which had been impacted in
the prior year by high customer inventories and limited markets for
sawmill residuals, as well as an increase in the number of
operating days in the first quarter of 2018 as compared to the same
quarter of 2017.
The weighted average log selling price in
Canadian dollar terms was $78.51 per m3, up from $75.26 per m3 in
the same period of 2017. The weighted average log selling price in
U.S. dollar terms was $62.09 per m3, up 9% year-over-year,
reflecting improved demand for softwood sawlogs and hardwood
pulpwood as well as a favourable change in log sales product
mix.
Costs for the first quarter were $6.3 million,
compared to $5.1 million during the same period in 2017 due to
increased log sales volumes which were partially offset by a 6%
decrease in variable log harvest costs per m3 due to shorter
hauling distances and foreign exchange.
As a result of the aforementioned factors,
Adjusted EBITDA for the quarter was $3.5 million compared to $2.2
million in the prior year and Adjusted EBITDA margin improved to
35%, relative to 32% in 2017.
There were no recordable safety incidents among
employees or contractors during the first quarter of 2018 at our
Maine Timberlands.
Adoption of IFRS 15, Revenue from contracts
with customers
IFRS 15 supersedes previous revenue standards
(IAS 18, Revenue) and related interpretations and it applies to all
revenue arising from contracts with customers. On January 1, 2018,
the Company adopted IFRS 15 using the full retrospective approach.
The adoption of this standard on January 1, 2018 resulted in a
change in presentation from net to gross for timber services, which
does not impact the Company’s operating earnings or net income. As
a result of this change in presentation, net sales for the
three-month period ended March 25, 2017 increased by $4.9 million,
with a corresponding increase in operating costs and expenses. Net
sales are net of discounts and rebates to customers. Revenue is
recognized when control passes to the customer, which is generally
when timber is delivered to the customer and actual quantities
delivered are determined. Sales are governed primarily by contract
and in some cases by standard industry terms. Pursuant to the Crown
Lands Services Agreement, Acadian provides harvesting,
transportation and other services to Crown licensees and
sub-licensees. Acadian receives payment for these services which
are recognized upon delivery of the timber and when actual
quantities delivered are determined.
Market Outlook
The following contains forward-looking
statements about Acadian Timber Corp.’s market outlook for the
remainder of fiscal 2018. Reference should be made to the
“Forward-looking Statements” section of this news release. For a
description of material factors that could cause actual results to
differ materially from the forward-looking statements in the
following, please see the Risk Factors section of our management’s
discussion and analysis of Acadian’s most recent Annual Report and
Annual Information Form available on our website at
www.acadiantimber.com or filed with SEDAR at www.sedar.com.
Acadian’s key markets include softwood
sawtimber, hardwood sawtimber and hardwood pulpwood. Northeast
North American softwood dimension sawmills represent over one third
of Acadian’s end-use market and are the primary market for our
softwood sawtimber. Economic forecasters continue to call for
steady growth in U.S. housing starts, with year-over-year
improvements averaging over 7% in 2018 and 5% in 2019. While tight
construction labour markets and declining housing affordability may
present headwinds, the underlying fundamental driver of pent-up
household formation remains highly compelling. Further encouraging
is the transitioning mix in the U.S. to a higher and more typical
single family home proportion of starts which consume significantly
greater volumes of wood per start. As a result, North American
sawtimber demand is expected to grow at over 4% per year over the
next few years to support expanding domestic construction
needs.
Benchmark SPF and SYP lumber prices were up over
the sequential quarter by 11% and 24%, respectively, passing on the
full application of 20.23% average export duties on U.S.-bound
shipments to consumers. However, while the duties were a factor in
higher prices, the combination of robust demand and supply
constraints including severe winter conditions and tight rail and
truck transport availability were important factors driving pricing
gains. While lumber pricing volatility should be expected due to
uncertainty of ongoing application and pass through of duties or a
potential future softwood lumber dispute settlement including
quotas, forecasters anticipate the underlying supply demand drivers
will continue to support strength in lumber pricing through 2019.
By extension, Acadian anticipates continued strong support in end
use markets for softwood sawtimber pricing through this period.
Since the final determination of combined duties
were announced by the U.S. Department of Commerce and finalized by
the International Trade Commission in late Q4 2017, industry
officials indicate there have been no material softwood
negotiations between the U.S. and Canada. As there is little
expectation that a softwood settlement will factor into the current
broader NAFTA trade negotiations, there remains little visibility
on relief from duties in the near to medium term.
Hardwood sawtimber markets, typically oriented
to millwork and higher value specialty markets, are expected to
remain at healthy current levels throughout the remainder of the
year. While hardwood pulpwood markets remain historically very
strong, we expect seasonally high consumer inventories will
continue to impact log pricing through mid-year. While continued
oversupply of softwood sawmill residuals and softwood pulpwood
markets remains a concern, regional timberland owners have
continued to operate with reduced pulpwood harvest which we expect
will continue though the remainder of the year. In New Brunswick,
biomass markets have benefitted from the gradual recovery in export
volumes which we expect will continue through the second half of
the year.
Quarterly Dividend
Acadian is pleased to announce a dividend of
$0.2825 per share, payable on July 13, 2018 to shareholders of
record on June 30, 2018.
Acadian Timber Corp. is a
leading supplier of primary forest products in Eastern Canada and
the Northeastern U.S. With a total of 2.4 million acres of land
under management, Acadian is the third largest timberland operator
in New Brunswick and Maine.
Acadian owns and manages approximately 1.1
million acres of freehold timberlands in New Brunswick and Maine,
and provides timber services relating to approximately 1.3 million
acres of Crown licensed timberlands in New Brunswick. Acadian also
owns and operates a forest nursery in Second Falls, New Brunswick.
Acadian's products include softwood and hardwood sawlogs, pulpwood
and biomass by-products, sold to approximately 85 regional
customers.
Acadian’s business strategy is to maximize cash
flows from its existing timberland assets while growing our
business by acquiring assets on a value basis and utilizing our
operations-oriented approach 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:Jon
SyrnykInvestor RelationsTel: 604-661-9622Email:
jsyrnyk@acadiantimber.com
Forward-Looking Statements
This News Release contains forward-looking
information 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. When used
in this News Release, such statements may contain such words as
“may,” “will,” “intend,” “should,” “expect,” “believe,” “outlook,”
“predict,” “remain,” “anticipate,” “estimate,” “potential,”
“continue,” “plan,” “could,” “might,” “project,” “targeting” or the
negative of these terms or other similar terminology.
Forward-looking information in this News Release includes, without
limitation, statements made in the section entitled “Market
Outlook” and 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. These statements, which reflect
management’s current expectations regarding future events and
operating performance, are based on information currently available
to management and speak only as of the date of this News Release.
All forward-looking statements in this News Release 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. Factors that could
cause actual results to differ materially from the results
discussed in the forward-looking statements include, but are not
limited to: general economic and market conditions; product demand;
concentration of customers; commodity pricing; interest rate and
foreign currency fluctuations; seasonality; weather and natural
conditions; regulatory, trade or environmental policy changes;
changes in Canadian income tax law; economic situation of key
customers; Brookfield’s ability to source and secure potential
investment opportunities; the availability of potential
acquisitions that suit Acadian’s growth profile; and other risks
and factors discussed under the heading “Risk Factors” in each of
the Annual Information Form dated March 28, 2018 and the Management
Information Circular dated March 28, 2018, and other filings of
Acadian made with securities regulatory authorities, which are
available on SEDAR at www.sedar.com. Forward-looking information is
based on various material factors or assumptions, which are based
on information currently available to Acadian. Material factors or
assumptions that were applied in drawing a conclusion or making an
estimate set out in the forward-looking information may include,
but are not limited to: anticipated financial performance;
anticipated market conditions; business prospects; the economic
situation of key customers; strategies; regulatory developments;
exchange rates; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the availability and cost of
labour and services and the ability to obtain financing on
acceptable terms. Readers are cautioned that the preceding list of
material factors or assumptions is not exhaustive. Although the
forward-looking statements contained in this News Release 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 News Release are made as of the date of this News Release, and
should not be relied upon as representing Acadian’s views as of any
date subsequent to the date of this News Release. 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 Consolidated Statements of Net
Income(unaudited)
Three Months Ended(CAD thousands, except per share data) |
|
March 31, 2018 |
|
|
March 25, 20171 |
|
Net sales |
$ |
32,948 |
|
$ |
28,012 |
|
Operating costs and expenses |
|
|
|
|
|
|
Cost of
sales |
|
21,494 |
|
|
18,240 |
|
Selling,
administration and other |
|
2,506 |
|
|
2,239 |
|
Reforestation |
|
7 |
|
|
— |
|
Depreciation and amortization |
|
84 |
|
|
78 |
|
|
|
24,091 |
|
|
20,557 |
|
Operating earnings |
|
8,857 |
|
|
7,455 |
|
Interest
expense, net |
|
(958 |
) |
|
(747 |
) |
Other
items |
|
|
|
|
|
|
Fair
value adjustments and other |
|
(2,125 |
) |
|
(1,475 |
) |
Unrealized exchange (loss) / gain on long-term debt |
|
(2,288 |
) |
|
465 |
|
Gain on
sale of timberlands |
|
177 |
|
|
497 |
|
Loss on
disposal of roads and other fixed assets |
|
(248 |
) |
|
— |
|
Earnings before income taxes |
|
3,415 |
|
|
6,195 |
|
Current
income tax expense |
|
(1,365 |
) |
|
(147 |
) |
Deferred income tax expense |
|
(64 |
) |
|
(1,290 |
) |
Net income |
$ |
1,986 |
|
$ |
4,758 |
|
Net income per share – basic and diluted |
$ |
0.12 |
|
$ |
0.28 |
|
1. Certain prior year amounts have been
reclassified to conform to the current year presentation as a
result of adoption of IFRS 15, Revenue From Contracts with
Customers, on January 1, 2018
Acadian Timber
Corp.Interim Consolidated Statements of
Comprehensive Income(unaudited)
Three Months Ended(CAD thousands) |
|
March 31, 2018 |
|
|
March 25, 2017 |
|
Net income |
$ |
1,986 |
|
$ |
4,758 |
|
Other
comprehensive income / (loss) |
|
|
|
|
|
|
Item
that may be reclassified subsequently to net income: |
|
|
|
|
|
|
Unrealized foreign currency translation income gain / (loss) |
|
3,366 |
|
|
(622 |
) |
Deferred
income tax (expense) / recovery |
|
(246 |
) |
|
93 |
|
Comprehensive income |
$ |
5,106 |
|
$ |
4,229 |
|
Acadian Timber
Corp.Interim Consolidated Balance
Sheets(unaudited)
As at(CAD thousands) |
|
March 31, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
|
Current
Assets |
|
|
|
|
Cash and
cash equivalents |
$ |
22,264 |
$ |
23,951 |
Accounts
receivable and other assets |
|
11,009 |
|
11,007 |
Inventory |
|
2,289 |
|
1,226 |
|
|
35,562 |
|
36,184 |
Timber |
|
330,862 |
|
330,879 |
Land,
roads and other fixed assets |
|
89,442 |
|
89,013 |
Intangible assets |
|
6,140 |
|
6,140 |
|
$ |
462,006 |
$ |
462,216 |
Liabilities and shareholders’ equity |
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts
payable and accrued liabilities |
$ |
8,253 |
$ |
12,476 |
Dividends
payable to shareholders |
|
4,601 |
|
4,601 |
|
|
12,854 |
|
17,077 |
Long-term debt |
|
90,517 |
|
90,866 |
Deferred
income tax liability |
|
81,979 |
|
80,188 |
Shareholders’ equity |
|
276,656 |
|
274,085 |
|
$ |
462,006 |
$ |
462,216 |
Acadian Timber
Corp.Interim Consolidated Statements of Cash
Flows(unaudited)
Three Months Ended(CAD thousands) |
|
March 31, 2018 |
|
|
March 25, 2017 |
|
Cash provided by / (used for): |
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
Net
income |
$ |
1,986 |
|
$ |
4,758 |
|
Adjustments to net income: |
|
|
|
|
|
|
Deferred
income tax expense |
|
64 |
|
|
1,290 |
|
Depreciation and amortization |
|
84 |
|
|
78 |
|
Fair
value adjustments and other |
|
2,125 |
|
|
1,475 |
|
Unrealized exchange loss / (gain) on long-term debt |
|
2,288 |
|
|
(465 |
) |
Gain on
sale of timberlands |
|
(177 |
) |
|
(497 |
) |
Loss on
disposal of roads and other fixed assets |
|
248 |
|
|
— |
|
Net change in non-cash working capital balances and other |
|
(4,070 |
) |
|
878 |
|
|
|
2,548 |
|
|
7,517 |
|
Financing activities |
|
|
|
|
|
|
Dividends paid to shareholders |
|
(4,601 |
) |
|
(4,183 |
) |
|
|
(4,601 |
) |
|
(4,183 |
) |
Investing activities |
|
|
|
|
|
|
Additions to timber, land, roads and other fixed assets |
|
(5 |
) |
|
(114 |
) |
Acquisition of Katahdin Timberlands LLC |
|
— |
|
|
(1,276 |
) |
Proceeds
from sale of timberlands |
|
192 |
|
|
837 |
|
Proceeds from sale of roads and other fixed assets |
|
179 |
|
|
— |
|
|
|
366 |
|
|
(553 |
) |
(Decrease) / Increase in cash and cash equivalents during the
period |
|
(1,687 |
) |
|
2,781 |
|
Cash and cash equivalents, beginning of period |
|
23,951 |
|
|
19,654 |
|
Cash and cash equivalents, end of period |
$ |
22,264 |
|
$ |
22,435 |
|
Reconciliations to Adjusted EBITDA and
Free Cash Flow
Three Months Ended(CAD thousands) |
|
March 31, 2018 |
|
|
March 25, 2017 |
|
Net
income |
$ |
1,948 |
|
$ |
4,758 |
|
Add /
(deduct): |
|
|
|
|
|
|
Interest
expense, net |
|
958 |
|
|
747 |
|
Current
income tax expense |
|
1,365 |
|
|
147 |
|
Deferred
income tax expense |
|
64 |
|
|
1,290 |
|
Depreciation and amortization |
|
84 |
|
|
78 |
|
Fair
value adjustments and other |
|
2,125 |
|
|
1,475 |
|
Unrealized exchange loss / (gain) on long-term debt |
|
2,288 |
|
|
(465 |
) |
Adjusted EBITDA |
$ |
8,870 |
|
$ |
8,030 |
|
Add /
(deduct): |
|
|
|
|
|
|
Interest
paid on debt, net |
|
(684 |
) |
|
(721 |
) |
Additions
to timber, land, roads and other fixed assets |
|
(5 |
) |
|
(114 |
) |
Gain on
sale of timberlands |
|
(177 |
) |
|
(497 |
) |
Loss on
disposal of roads and other fixed assets |
|
248 |
|
|
— |
|
Proceeds
from sale of timberlands |
|
192 |
|
|
837 |
|
Proceeds
from sale of roads and other fixed assets |
|
179 |
|
|
— |
|
Current income tax expense |
|
(1,365 |
) |
|
(147 |
) |
Free cash flow |
$ |
7,258 |
|
$ |
7,388 |
|
Dividends declared |
$ |
4,601 |
|
$ |
4,601 |
|
Payout ratio |
|
63 |
% |
|
62 |
% |
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