Acadian Timber Corp. (TSX: ADN) -
Investors, analysts and other interested parties can access
Acadian Timber Income Fund's 2009 Fourth Quarter and Year-end
Results conference call via webcast on Wednesday, February 10, 2010
at 10:00 a.m. ET at www.acadiantimber.com or via teleconference at
1-800-319-4610, toll free in North America. For overseas calls
please dial +1-604-638-5340, at approximately 9:50 a.m. ET. The
teleconference recorded rebroadcast can be accessed at
1-800-319-6413 or +1-604-638-9010 and enter passcode 2826.
Acadian Timber Corp. (the "Corporation") (TSX: ADN), formerly
Acadian Timber Income Fund ("Acadian" or the "Fund"), today
reported financial and operating results(1) for the three and
twelve month periods ended December 31, 2009.
For the three months ended December 31, 2009 (the "fourth
quarter"), Acadian generated net sales of $16.7 million on
consolidated volumes of 343 thousand m3, compared with net sales of
$19.7 million on consolidated volumes of 307 thousand m3 during the
same period last year.
EBITDA for the fourth quarter was $2.0 million or 12% of sales
as compared to EBITDA of $6.9 million or 35% of sales during the
comparable period in 2008. Results in the quarter reflect a lower
contribution from the management of the Crown licensed timberlands
by New Brunswick Timberlands and soft pricing at Maine Timberlands.
As a result of these market conditions, Acadian has continued to
reduce near-term harvest levels of our high margin spruce-fir
sawlogs allowing us to maximize opportunities when markets recover,
thus preserving the long-term value of Acadian's resource.
Additionally, the Fund incurred $0.9 million of non-recurring costs
associated with the previously announced conversion to a
corporation.
For the year ended December 31, 2009, Acadian generated net
sales of $63.4 million as compared to net sales of $67.9 million in
2008. EBITDA was $12.1 million or 19% of sales as compared to
EBITDA of $17.4 million or 26% of sales in the prior year.
"While 2009 was another very challenging year, we are pleased
with what we have achieved this year at both corporate and
operating levels. These accomplishments include successfully
completing the conversion to a corporation and extending the
maturity of our bank term credit facility," commented Reid Carter,
Chief Executive Officer of Acadian. "While 2010 is expected to be
another difficult year, we will focus on identifying and accessing
market opportunities while keeping costs low," added Mr.
Carter.
(1) This news release makes reference to earnings before
interest, taxes, depletion, depreciation and amortization
("EBITDA") and distributable cash from operations. Management
believes that EBITDA and distributable cash from operations are key
performance measures in evaluating Acadian's operations and are
important in enhancing investors' understanding of Acadian's
operating performance. As EBITDA and distributable cash from
operations do not have a standardized meaning prescribed by
Canadian GAAP, 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 and cash flow from
operations, as determined in accordance with Canadian GAAP, to
EBITDA and distributable cash from operations.
New Chief Financial Officer Appointed
Brookfield Timberlands Management LP, as Manager of Acadian,
announced that, after almost three years as Acadian's Chief
Financial Officer, Mr. Joseph Cornacchia will be leaving Acadian to
take on new responsibilities within Brookfield Asset Management.
"The entire management team would like to thank Mr. Cornacchia for
his hard work, dedication and very significant contributions to
Acadian and wish him the best in his new endeavours" commented Mr.
Carter. Effective February 10, 2010, Mr. Brian Banfill will replace
Mr. Cornacchia as Acadian's Senior Vice-President and Chief
Financial Officer. Mr. Banfill has been intimately involved with
Acadian since its inception and is a Certified General Accountant
with over 25 years of experience in the forest industry.
Review of Operations
2009 Financial and Operating Highlights
Three Months Ended Year Ended
December 31 December 31
------------------------------------------------
($millions except per unit
information) 2009 2008 2009 2008
----------------------------------------------------------------------------
Net sales $ 16.7 $ 19.7 $ 63.4 $ 67.9
EBITDA 2.0 6.9 12.1 17.4
Distributable cash from
operations 1.3 5.7 8.1 13.3
Distributions declared 1.4 3.4 11.7 13.7
Net income(1) - 15.8 9.3 18.9
Per unit - fully diluted
Net Income (loss)(1) - (0.14) 0.30 0.02
Distributable cash from
operations 0.08 0.34 0.49 0.80
Distributions declared -
Class A unitholders 0.08 0.21 0.70 0.83
Sales volume (000s m3) 343.0 306.6 1,258.3 1,251.0
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(1) Net income includes the impact of the revaluation of the Class B
Interest Liability of a subsidiary, the future income tax
expense/recovery, and the depreciation and depletion expense, which are
non-cash items recorded in each respective period.
Included in the net income for the three and twelve month
periods ended December 31, 2009 is a non-cash future income tax
recovery of $0.3 million and $3.0 million, respectively (2008 -
$6.1 million expense and $6.2 million expense, respectively). The
future income tax liability of the Fund is based on differences
between the financial reporting and tax basis of assets and
liabilities of its subsidiaries, which have been measured using the
substantially enacted tax rates and laws that are expected to be in
effect at the time the differences are anticipated to reverse. The
reduction in the future income tax liability, and related recovery,
recorded during the year is largely a result of a decline in the
substantially enacted tax rate expected to be in effect.
Also, included in net income for the year ended December 31,
2009 is a non-cash gain related to the Class B Interest Liability
of a subsidiary. The settlement obligation of this interest was
based on the trading value of Acadian's units at the time of
settlement, which required recording the liability at its fair
value at each balance sheet date with the corresponding gain
arising from a decrease in Acadian's unit price or loss arising
from an increase in Acadian's unit price included in the statement
of operations. In addition, as this Canadian dollar liability was
issued by a self-sustaining U.S. dollar subsidiary of the Fund, the
obligation was required to be converted to U.S. dollars at each
reporting period, with the corresponding gain or loss included in
the statement of operations. These items resulted in a $4.7 million
gain for the year ended December 31, 2009 (2008 - $22.2 million
gain) comprised of a $4.1 million mark-to-market gain (2008 - $15.0
million gain) and a $0.6 million foreign exchange gain (2008 - $7.2
million gain).
On February 3, 2009, an affiliate of Brookfield Asset Management
Inc. ("Brookfield") converted all units representing the Class B
Liability of a subsidiary into Class A Units of the Fund on a
one-for-one basis. Accordingly, the Class B Liability of a
subsidiary was not outstanding during the fourth quarter and was
not revalued at the end of the period.
New Brunswick Timberlands
The table below summarizes operating and financial results for
New Brunswick Timberlands.
Three Months Ended Three Months Ended
December 31, 2009 December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 57.4 68.0 $ 3.8 72.5 73.2 $ 4.4
Hardwood 148.7 143.9 7.6 81.7 78.2 4.6
Biomass 58.8 58.8 1.1 57.4 57.4 1.1
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264.9 270.7 12.5 211.6 208.8 10.1
Other sales 0.8 3.2
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Net sales $ 13.3 $ 13.3
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EBITDA $ 2.5 $ 4.5
EBITDA margin 19% 34%
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----------------------------------------------------------------------------
--------------------------------------------------------------
Year Ended December 31, 2009 Year Ended December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 336.5 328.9 $ 18.9 273.8 280.8 $ 17.0
Hardwood 444.0 432.7 22.1 389.6 413.5 23.8
Biomass 235.4 235.4 4.5 241.6 241.6 4.4
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1,015.9 997.0 45.5 905.0 935.9 45.2
Other sales 3.3 4.8
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Net sales $ 48.8 $ 50.0
----------------------------------------------------------------------------
EBITDA $ 10.8 $ 11.5
EBITDA margin 22% 23%
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----------------------------------------------------------------------------
Softwood, hardwood and biomass shipments were 68 thousand m3,
144 thousand m3 and 59 thousand m3, respectively, during the fourth
quarter, representing a 30% increase in sales volumes as compared
to same period in 2008. This increase reflects improved demand for
hardwood pulpwood as compared to the fourth quarter of 2008.
Approximately 30% of sales volumes were sold as sawlogs, 48% as
pulpwood and 22% as biomass in the fourth quarter. This compares to
34% of sales volumes sold as sawlogs, 39% as pulpwood and 27% as
biomass in the fourth quarter of 2008.
Net sales for the fourth quarter totaled $13.3 million,
consistent with the same period in 2008. The increase in sales
volumes was offset by a lower value species mix and a $2.4 million
decrease in other sales. The decrease in other sales was primarily
attributed to a reduced contribution from our management of Crown
licensed timberlands as a result of lower harvesting activity. The
weighted average selling price was $46.05 in the fourth quarter of
2009, compared to $48.79 in the same period of 2008.
Costs for the fourth quarter were $10.8 million, representing an
increase of 23% compared to the same period of 2008. This was
primarily a result of increased harvest volumes, longer hauling
distances and cable logging.
EBITDA for the fourth quarter was $2.5 million, compared to $4.5
million in the same period in 2008, while EBITDA margin decreased
from 34% to 19%.
NB Timberlands experienced no incidents among employees and
three minor reportable incidents among contractors during the
fourth quarter, from which the individuals have since fully
recovered. We are pleased to report that there were no reportable
environmental incidents during the fourth quarter.
Maine Timberlands
The table below summarizes operating and financial results for
Maine Timberlands.
Three Months Ended Three Months Ended
December 31, 2009 December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 43.7 43.6 $ 2.1 72.4 72.4 $ 4.8
Hardwood 21.2 21.2 1.1 18.1 18.7 1.4
Biomass 7.5 7.5 0.1 6.7 6.7 0.1
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72.4 72.3 3.3 97.2 97.8 6.3
Other sales 0.1 0.1
----------------------------------------------------------------------------
Net sales $ 3.4 $ 6.4
----------------------------------------------------------------------------
EBITDA $ 0.7 2.5
EBITDA margin 21% 39%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
--------------------------------------------------------------
Year Ended December 31, 2009 Year Ended December 31, 2008
--------------------------------------------------------------
Harvest Sales Results Harvest Sales Results
(000s m3) (000s m3) (millions) (000s m3) (000s m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 196.0 195.6 $ 11.7 234.4 234.2 $ 13.7
Hardwood 45.3 44.6 2.2 62.1 62.5 3.6
Biomass 21.1 21.1 0.3 18.4 18.4 0.2
----------------------------------------------------------------------------
262.4 261.3 14.2 314.9 315.1 17.5
Other sales 0.4 0.4
----------------------------------------------------------------------------
Net sales $ 14.6 $ 17.9
----------------------------------------------------------------------------
EBITDA $ 4.2 $ 6.5
EBITDA margin 29% 36%
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----------------------------------------------------------------------------
Maine Timberlands experienced strong operating conditions during
the fourth quarter, primarily as a result of favourable weather
conditions. However, difficult market conditions resulted in a
significant decline in the operation's financial performance.
Softwood, hardwood and biomass shipments were 44 thousand m3, 21
thousand m3, and 7 thousand m3, respectively, with total sales
volumes decreasing by 26% as compared to the fourth quarter of
2008. The decrease in sales volumes reflects particularly strong
volumes in the fourth quarter of 2008 as the operation's largest
contractor caught up on its contract volume after weather-related
difficulties during the spring and early summer operating season.
Approximately 43% of sales volumes were sold as sawlogs, 47% as
pulpwood and 10% as biomass during the fourth quarter. This
compares to 55% of sales volumes sold as sawlogs, 38% as pulpwood
and 7% as biomass in the fourth quarter of 2008.
Net sales for the fourth quarter totaled $3.4 million, compared
to $6.4 million for the same period last year. The year-over-year
decline in net sales is a result of lower shipment volumes, a lower
value species mix, and softer prices across all products. The
weighted average price across all products was $45.27 in the fourth
quarter, compared to $64.19 in the same period of 2008, reflecting
a 29% decrease in Canadian dollar terms. Weighted average selling
prices decreased 22% in U.S. dollar terms year over year.
Costs for the fourth quarter were $2.7 million, compared to $3.9
million for the same period in 2008. This decrease reflects lower
sales volumes and lower variable costs per m3, partially due to
lower diesel prices.
EBITDA for the fourth quarter was $0.7 million, compared to $2.5
million for the same period in 2008, while EBITDA margin decreased
from 39% to 21%.
Maine Timberlands had no recordable safety incidents among
employees and one minor reportable incident among contractors
during the fourth quarter. The individual has since fully
recovered. We are pleased to report that there were no reportable
environmental incidents during the fourth quarter.
Market and Company Outlook
The following Market Outlook contains forward-looking statements
about Acadian Timber Corp.'s market outlook for fiscal 2010.
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
(MD&A) in our most recent Annual Report and Annual Information
Form available on our website at www.acadiantimber.com or filed
with SEDAR at www.sedar.com.
Consensus forecasts for U.S. housing predict an increase in
housing starts to only 675,000 units in 2010 and 910,000 in 2011 -
a very slow recovery from 2009's post World War II low of 550,000
starts. While smaller, non-industrial timberland owners continue to
withhold timber from the market, an ample supply of Crown and
private timber has placed considerable pressure on timber prices
resulting in price declines of approximately 20% from 2006 - 2007
averages. The fact that Fraser Papers Inc. is currently expected to
operate its Edmundston Pulp mill and Plaster Rock sawmill provides
some encouragement that demand for Acadian's spruce-fir sawlogs
will be stronger in 2010 than in 2009, although prices are expected
to remain low throughout the year. Despite current difficult
softwood sawlog markets, Acadian continues to find markets for its
key products while choosing to preserve value for those products
that don't offer adequate market opportunities by reducing the
near-term harvest levels of our high margin spruce-fir sawlogs.
Weak softwood sawlog markets and relatively large inventories of
softwood pulpwood and chips is also expected to result in
uncertainties in regard to the level of activity on Fraser Papers
Inc.'s Crown licensed timberlands which is managed by Acadian,
reducing the contribution from these management services to
Acadian's net income.
Markets for hardwood sawlogs and specialty products remain
relatively stable, particularly for aspen. These markets are
expected to remain stable into 2010. Markets for hardwood have
improved since the first half of 2009 and Acadian's major hardwood
pulpwood customers continue to operate and take deliveries with
pricing improving modestly from the second and early third quarter.
Acadian has been able to sell all of its biomass, although this
market has also been under pressure due to low demand for electric
power and reduced gas and oil prices. The Biomass Crop Assistance
Program (BCAP) implemented in the U.S. during the fourth quarter of
2009 may provide limited additional opportunities for biomass sales
by our Maine Timberlands although the impact of this two-year
program on biomass sales by our New Brunswick Timberlands remains
uncertain.
"During these challenging market conditions, we remained focused
on preserving long-term value for shareholders and merchandising
all of our products for their highest value, while seeking every
opportunity to reduce costs. We continue to be confident in
Acadian's long-term outlook and the quality of our asset base. We
believe that our new tax effective corporate structure and steadily
improving market conditions will lead to improved financial
performance going forward" concluded Mr. Carter.
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, the Corporation is
the second largest timberland operator in New Brunswick and
Maine.
The Corporation owns and manages approximately 1.1 million acres
of freehold timberlands in New Brunswick and Maine, and provides
management services relating to approximately 1.3 million acres of
Crown licensed timberlands. The Corporation 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 over 110 regional customers.
Acadian Timber Corp.'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.
Forward-Looking Statements
This News Release contains forward-looking information and other
forward-looking 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 the Corporation 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 regarding management's beliefs, intentions,
results, performance, goals, achievements, future events, plans and
objectives, business strategy, access to capital, liquidity and
trading volumes, dividends, taxes, capital expenditures, projected
costs, and anticipated benefits of the conversion from an income
trust to a corporation, and similar statements concerning
anticipated future events, results, achievements, circumstances,
performance or expectations that are not historical facts. These
statements 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;
failure to realize the anticipated benefits of the conversion from
an income trust to a corporation; the risks associated with the
availability and the amount of the tax basis in connection with the
conversion from an income fund to a corporation;
and other risks and factors, to the extent they remain
applicable to the Corporation, discussed under the heading "Risk
Factors" in each of the Annual Information Form dated March 27,
2009 and the Management Information Circular dated November 23,
2009 of Acadian Timber Income Fund (the "Fund"), the predecessor
reporting issuer to the Corporation, and other filings of the Fund
and the Corporation 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; business prospects; 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, which are subject to change based on commodity
prices, market conditions for timber and wood products, the
economic situation of key customers, and the utilization of the tax
basis resulting from the conversion from an income trust to a
corporation. 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, the
Corporation cannot assure readers that actual results will be
consistent with these forward-looking statements. Certain
statements in this New Release may also be considered "financial
outlook" for the purposes of applicable Canadian securities laws,
and such financial outlook may not be appropriate for purposes
other than this News Release. 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. The Corporation
assumes no obligation to update or revise these forward-looking
statements to reflect new information, events, circumstances or
otherwise, except as required by applicable law.
Acadian Timber Income Fund
Consolidated Balance Sheets
----------------------------------------------------------------------------
As at December 31
(CAD millions) 2009 2008
----------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $ 2.1 $ 9.0
Accounts receivable and other assets 6.2 4.7
Note receivable 4.0 -
Inventory 1.8 1.4
----------------------------------------------------------------------------
14.1 15.1
Intangible assets 6.1 6.1
Timberlands, logging roads and fixed assets 190.0 207.8
----------------------------------------------------------------------------
$ 210.2 $ 229.0
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LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 4.3 $ 6.2
Distributions payable to unitholders - 0.8
----------------------------------------------------------------------------
4.3 7.0
Future income tax liability 13.9 17.7
Long-term debt 80.7 80.8
Class B Interest Liability of a subsidiary - 31.6
Unitholders' equity 111.3 91.9
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$ 210.2 $ 229.0
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Acadian Timber Income Fund
Consolidated Statements of Operations and Deficit
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Net sales $ 16.7 $ 19.7 $ 63.4 $ 67.9
Operating costs and expenses
Cost of sales 12.1 11.1 43.3 44.8
Selling, administration and
other 2.6 1.7 8.6 6.4
Depreciation and depletion 1.6 2.2 7.1 7.4
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16.3 15.0 59.0 58.6
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Operating earnings 0.4 4.7 4.4 9.3
Gain on sale of timberlands - - (0.6) (0.7)
Gain on Class B Interest
Liability of a subsidiary - (19.1) (4.7) (22.2)
Interest:
Interest income - - - (0.2)
Interest expense 0.7 1.0 3.1 3.6
Class B Interest Liability
of a subsidiary - 0.9 0.3 3.7
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Earnings (loss) before
income tax expense (0.3) 21.9 6.3 25.1
Future income tax recovery
(expense) 0.3 (6.1) 3.0 (6.2)
----------------------------------------------------------------------------
Net income for the period - 15.8 9.3 18.9
Deficit, beginning of period (21.6) (34.2) (20.9) (29.8)
Unitholders' distributions (1.4) (2.5) (11.4) (10.0)
----------------------------------------------------------------------------
Deficit, end of period $ (23.0) $ (20.9) $ (23.0) $ (20.9)
----------------------------------------------------------------------------
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Net income per unit - basic $ - $ 1.31 $ 0.58 $ 1.57
Net income (loss) per unit
diluted $ - $ (0.14) $ 0.30 $ 0.02
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Acadian Timber Income Fund
Consolidated Statement of Comprehensive Income (Loss)
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Net income $ - $ 15.8 $ 9.3 $ 18.9
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Other comprehensive income
(loss)
Unrealized foreign currency
translation gain (loss) (1.2) 1.7 (6.0) 1.5
----------------------------------------------------------------------------
Comprehensive income (loss) $ (1.2) $ 17.5 $ 3.3 $ 20.4
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Acadian Timber Income Fund
Consolidated Statements of Cash Flows
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Cash provided by (used for):
----------------------------------------------------------------------------
Operating activities
Net income $ - $ 15.8 $ 9.3 $ 18.9
Items not affecting cash:
Future income tax expense
(recovery) (0.3) 6.1 (3.0) 6.2
Depreciation and depletion 1.6 2.2 7.1 7.4
Gain on sale of timberlands - - (0.6) (0.7)
Gain on Class B Interest
Liability of a subsidiary - (19.1) (4.7) (22.2)
----------------------------------------------------------------------------
1.3 5.0 8.1 9.6
Net change in non-cash
working capital balances
and other (0.8) 1.6 (4.0) 4.5
----------------------------------------------------------------------------
0.5 6.6 4.1 14.1
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Investing activities
Sale of timberlands, logging
roads and fixed assets - - 0.6 0.8
Additions to timberlands,
logging roads and fixed
assets - (0.2) (0.8) (0.5)
Silviculture expenditures - - (0.1) (0.3)
Issuance of note receivable (4.0) - (4.0) -
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(4.0) (0.2) (4.3) -
----------------------------------------------------------------------------
Financing activities
Distributions paid to
unitholders (2.2) (2.5) (12.2) (10.0)
Borrowing from revolving
credit facility 5.5 - 5.5 -
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3.3 (2.5) (6.7) (10.0)
----------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents during
the period (0.2) 3.9 (6.9) 4.1
Cash and cash equivalents,
beginning of period 2.3 5.1 9.0 4.9
----------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 2.1 $ 9.0 $ 2.1 $ 9.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Reconciliation to EBITDA and Distributable Cash from Operations
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Net income(1) $ - $ 15.8 $ 9.3 $ 18.9
Add (deduct)
Interest income - - - (0.2)
Interest expense 0.7 1.0 3.1 3.6
Distribution on Class B
Interest Liability of a
subsidiary - 0.9 0.3 3.7
Future income tax expense
(recovery) (0.3) 6.1 (3.0) 6.2
Depreciation and depletion 1.6 2.2 7.1 7.4
Non-cash gain on Class B
Interest Liability of a
subsidiary - (19.1) (4.7) (22.2)
----------------------------------------------------------------------------
EBITDA 2.0 6.9 12.1 17.4
Add (deduct)
Interest income - - - 0.2
Interest expense (0.7) (1.0) (3.1) (3.6)
Silviculture and capital
expenditures - (0.2) (0.5) (0.8)
Non-cash gain on sale of
timberlands - - (0.6) (0.7)
Proceeds from sale of
timberlands, logging roads
and fixed assets - - 0.6 0.8
Acquisition of timberlands - - (0.4) -
----------------------------------------------------------------------------
Distributable cash from
operations $ 1.3 $ 5.7 $ 8.1 $ 13.3
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Distributions declared $ 1.4 $ 3.4 $ 11.7 $ 13.7
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(1) Net income includes the impact of the revaluation of the Class B
Interest Liability of a subsidiary, the future income tax
expense/recovery, and the depreciation and depletion expense, which are
non-cash items recorded in each respective period.
Reconciliation to Distributable Cash from Operations
----------------------------------------------------------------------------
For the Three Months For the Year Ended
Ended December 31 December 31
----------------------------------------------------------------------------
CAD millions 2009 2008 2009 2008
----------------------------------------------------------------------------
Cash flow from operating
activities $ 0.5 $ 6.6 $ 4.1 $ 14.1
Add (deduct):
Capital adjustments
Proceeds from sale of
timberlands, logging roads
and fixed assets - - 0.6 0.8
Acquisition of timberlands - - (0.4) -
Other adjustments
Change in non-cash working
capital balances and other 0.8 (1.6) 4.0 (4.5)
Distribution on Class B
Interest liability of a
subsidiary - 0.9 0.3 3.7
Silviculture and capital
expenditures - (0.2) (0.5) (0.8)
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Distributable cash from
operations $ 1.3 $ 5.7 $ 8.1 $ 13.3
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Distributions declared $ 1.4 $ 3.4 $ 11.7 $ 13.7
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Contacts: Acadian Timber Corp. Robert Lee Investor Relations and
Communications 604-661-9607 rlee@acadiantimber.com
www.acadiantimber.com
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