Q3 2024 Acadian Timber Corp Earnings Call Transcript
Key Points
- Acadian Timber Corp (ACAZF) experienced favorable operating conditions, resulting in a 15% increase in sales volume excluding biomass compared to the prior year period.
- The company maintained steady harvest volumes during the third quarter, supported by sufficient contractor capacity in New Brunswick.
- Acadian Timber Corp (ACAZF) is advancing efforts to maximize cash flows from timberland assets and real estate activities, including the purchase of a meteorological tower to explore renewable energy opportunities.
- The company entered into an agreement to sell approximately 2,100 acres of timberland, expected to result in gross proceeds of $1.4 million and a gain of approximately $400,000.
- Acadian Timber Corp (ACAZF) is progressing with its carbon credit project in Maine, expecting to register additional credits for sale by the end of the year.
- Sales for the third quarter were $26 million, a decrease from $26.6 million in the same quarter of 2023, due to pricing impacts from changes in product mix and end-use markets.
- The weighted average selling price excluding biomass decreased 5% year over year, with softwood sawlog pricing decreasing 13% and hardwood sawlog pricing decreasing 5%.
- Operating costs and expenses increased to $22.1 million during the third quarter, reflecting higher timber sales volumes and increased variable costs.
- Adjusted EBITDA was $4 million during the third quarter, down from $4.9 million in the prior year period, with a margin decrease from 18% to 16%.
- Net income for the third quarter totaled $2.2 million, a significant drop from $6.4 million in the same period of 2023, primarily due to lower non-cash fair value adjustments and operating income.
Good day. And thank you for standing by. Welcome to the Acadian Timber Q3, 2024 analyst conference call and webcast. (Operator Instruction) I would now like to hand the conference over to your speaker today, Susan Wood Chief Financial Officer.
Thank you operator. Good afternoon, everyone and welcome to Acadian Timber's third quarter conference call with me on the call. Today is Adam Sheparski Acadian's President and Chief Executive Officer.
Before discussing Acadian's results. I'll first remind everyone that in discussing our third quarter financial and operating performance, the outlook for the remainder of 2024 and into 2025 and responding to your questions, we may make forward-looking statements.
These statements are subject to known and unknown risks and future results may differ materially for further information on our known risk factors. I encourage you to review our news release and MDNA, which are available on [CR Plus] and on our website at Acadian timber.com.
I'll
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