Investors, analysts and other interested parties can access Acadian
Timber Corp.'s 2010 Third Quarter Results conference call via
webcast on Wednesday, October 27, 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
taped rebroadcast can be accessed at 1-800-319-6413 or
+1-604-638-9010 and enter passcode 2826.
All figures in Canadian dollars unless otherwise noted
Acadian Timber Corp. ("Acadian") (TSX: ADN) today reported
financial and operating results(1) for the three months ended
September 25, 2010 (the "third quarter"). EBITDA of $4.8 million
for the third quarter of 2010 was $4.1 million higher than
Acadian's EBITDA in the third quarter of 2009, excluding the $0.6
million gain from a land sale in the prior year. EBITDA margin
increased to 27% from 9% in the comparable period of 2009.
"Demand for softwood sawlogs was relatively strong during the
third quarter and we were able to merchandise effectively to
achieve a larger proportion of sales from this higher margin
product. In addition, Acadian saw average selling prices increase
for all primary products", said Reid Carter, Chief Executive
Officer of Acadian. "Acadian was also very successful in its
corporate initiatives by arranging a new 5 year loan at a very
attractive interest rate with a flexible covenant package to
replace its term debt maturing in February 2011."
Subsequent to the third quarter, Acadian obtained a commitment
letter from a major institutional lender for a 5 year, US$72.5
million loan to refinance the existing debt maturing on February
27, 2011. The terms of this financing, including the interest
rates, are very favourable. Acadian anticipates that at the time of
issuance of this new loan the effective interest rate will be
approximately 3.4%, a rate management believes reflects the high
credit quality of Acadian's assets. Compared to the existing debt
facilities, Acadian expects incremental free cash flow of
approximately $1.3 million per year resulting from the lower
interest costs and the company will also benefit from a more
flexible covenant package.
For the third quarter of 2010, Acadian generated net sales of
$17.9 million on sales volume of 345.8 thousand m3, which
represents a $3.5 million, or 24% improvement in net sales revenue
over the same period in 2009. This increase was driven primarily by
higher prices across all primary products, a greater proportion of
sales being softwood sawlogs and the greater contribution from the
Crown land service agreement.
For the nine months ended September 25, 2010, Acadian generated
net sales of $50.5 million on sales volume of 1,016.8 thousand m3
as compared to net sales of $46.7 million on sales volume of 915.3
thousand m3 in the comparable period of 2009. EBITDA of $11.6
million during the nine months ended September 25, 2010 is $2.1
million more than the comparable period of 2009, excluding the $0.6
million gain from a land sale in the prior year.
Review of Operations
2010 Financial and Operating Highlights
Three Months Ended Nine Months Ended
---------------------------------------------
(CAD millions except per share Sept 25, Sept 26, Sept 25, Sept 26,
information) 2010 2009 2010 2009
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net sales $ 17.9 $ 14.4 $ 50.5 $ 46.7
EBITDA 4.8 1.3 11.6 10.1
Free cash flow 3.6 (0.3) 8.3 6.8
Dividends declared 0.9 3.5 2.8 10.3
Net income (loss)(1) 1.5 (0.2) 3.4 9.3
Per share - fully diluted
Net Income (loss)(1) 0.09 (0.01) 0.20 0.30
Free cash flow 0.22 (0.02) 0.50 0.41
Dividends declared 0.05 0.21 0.17 0.62
Sales volume (000s m3) 345.8 330.6 1,016.8 915.3
----------------------------------------------------------------------------
(1) Net income includes the impact of future income tax recovery, and
depreciation and depletion expense, which are non-cash items recorded in
each respective period. Net income for the nine months ended September 26,
2009 only, included the impact of the revaluation of the Class B Interest
Liability of a subsidiary.
Included in the net income for the three month period ended
September 25, 2010 is a non-cash future income tax expense of $0.6
million (2009 - recovery of $0.5 million). The future income tax
asset of Acadian 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 asset, and related expense, recorded during
the period is largely a result of changes in the timing of when the
differences are anticipated to reverse.
The nine month period ended September 26, 2009 included a
non-cash gain related to the Class B Interest Liability of a
subsidiary. On February 3, 2009, an affiliate of Brookfield Asset
Management Inc. converted all units representing the Class B
Interest Liability into Class A units of Acadian Timber Income Fund
on a one-for-one basis. For the nine-month period ended September
26, 2009, the revaluation of this interest resulted in a gain of
$4.7 million. The gain was comprised of a $4.1 million
mark-to-market gain plus an additional $0.6 million foreign
exchange gain due to the weakening of the Canadian currency in the
quarter.
New Brunswick Timberlands
The table below summarizes operating and financial results for
Acadian's New Brunswick Timberlands.
Three Months Ended September Three Months Ended September
25, 2010 26, 2009
------------------------------------------------------------
Harvest Sales Harvest Sales
(000s (000s Results (000s (000s Results
m3) m3) (millions) m3) m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 94.1 98.5 $ 5.2 68.6 67.8 $ 3.5
Hardwood 102.0 96.5 5.5 137.5 125.5 6.4
Biomass 68.1 68.2 0.7 80.2 80.2 1.4
----------------------------------------------------------------------------
264.2 263.2 11.4 286.3 273.5 11.3
Other sales 1.9 0.3
----------------------------------------------------------------------------
Net sales $ 13.3 $ 11.6
----------------------------------------------------------------------------
EBITDA $ 3.7 $ 1.3
EBITDA margin 28% 11%
----------------------------------------------------------------------------
Nine Months Ended September Nine Months Ended September
25, 2010 26, 2009
------------------------------------------------------------
Harvest Sales Harvest Sales
(000s (000s Results (000s (000s Results
m3) m3) (millions) m3) m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 299.9 293.1 $ 15.4 279.1 260.9 $ 15.1
Hardwood 315.9 337.3 18.9 295.3 288.8 14.5
Biomass 176.3 176.3 2.3 176.6 176.6 3.4
----------------------------------------------------------------------------
792.1 806.7 36.6 751.0 726.3 33.0
Other sales 2.9 2.5
----------------------------------------------------------------------------
Net sales $ 39.5 $ 35.5
----------------------------------------------------------------------------
EBITDA $ 9.8 $ 8.3
EBITDA margin 25% 23%
----------------------------------------------------------------------------
Softwood, hardwood and biomass shipments were 98 thousand m3, 97
thousand m3 and 68 thousand m3, respectively, for the third quarter
of 2010. Approximately 35% was sold as sawlogs, 39% as pulpwood and
26% as biomass. This compares to 29% sold as sawlogs, 42% as
pulpwood and 29% as biomass in the third quarter of 2009.
Net sales for the third quarter of 2010 was $13.3 million (2009
- $11.6 million) with an average selling price across all products
of $43.47 per m3 which compares to an average selling price of
$41.46 per m3 during the third quarter of 2009. The year-over-year
increase in the average selling price resulted from a high
percentage of softwood sawlog sales and improved prices for
hardwood pulpwood, which accounted for 31% of sales volume. Net
sales for the first nine months ended September 25, 2010 was $39.5
million, an increase of $4.0 million over the comparable period of
2009.
Costs in the third quarter were $9.6 million (2009 - $10.3
million). Variable costs per m3 were 7% lower than the third
quarter of 2009 as a result of an increased proportion of sales
made to closer proximity markets and from the woodyard which
resulted in lower transportation costs.
EBITDA for the third quarter was $3.7 million, compared to $1.3
million in the comparable period of 2009. For the nine months ended
September 25, 2010, EBITDA was $9.8 million as compared to $8.3
million for the same period last year. EBITDA margin increased to
28%, as compared to 11% for the third quarter of 2009, primarily
reflecting the impact of higher contribution from the Crown land
service agreement and a greater proportion of sales of higher
margin softwood sawlogs.
During the third quarter of 2010, NB Timberlands experienced no
recordable safety incidents among employees and one recordable
incident among contractors from which the individual has since
fully recovered.
Maine Timberlands
The table below summarizes operating and financial results for
Acadian's Maine Timberlands.
Three Months Ended September Three Months Ended September
25, 2010 26, 2009
------------------------------------------------------------
Harvest Sales Harvest Sales
(000s (000s Results (000s (000s Results
m3) m3) (millions) m3) m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 58.4 58.4 $ 3.0 38.5 40.9 $ 2.1
Hardwood 23.1 21.3 1.3 12.4 12.1 0.5
Biomass 3.0 2.9 0.1 4.1 4.1 0.1
----------------------------------------------------------------------------
84.5 82.6 4.4 55.0 57.1 2.7
Other sales 0.2 0.1
----------------------------------------------------------------------------
Net sales $ 4.6 $ 2.8
----------------------------------------------------------------------------
EBITDA $ 1.3 $ 0.8
EBITDA margin 28% 29%
----------------------------------------------------------------------------
Nine Months Ended September Nine Months Ended September
25, 2010 26, 2009
------------------------------------------------------------
Harvest Sales Harvest Sales
(000s (000s Results (000s (000s Results
m3) m3) (millions) m3) m3) (millions)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood 152.3 152.0 $ 7.8 152.3 152.0 $ 9.6
Hardwood 51.3 49.2 2.7 24.1 23.4 1.1
Biomass 9.0 8.9 0.2 13.6 13.6 0.2
----------------------------------------------------------------------------
212.6 210.1 10.7 190.0 189.0 10.9
Other sales 0.3 0.3
----------------------------------------------------------------------------
Net sales $ 11.0 $ 11.2
----------------------------------------------------------------------------
EBITDA $ 2.7 $ 3.5
EBITDA margin 25% 31%
----------------------------------------------------------------------------
Softwood, hardwood and biomass shipments were 58 thousand m3, 21
thousand m3 and 3 thousand m3, respectively, for the third quarter
of 2010. Approximately 54% was sold as sawlogs, 42% as pulpwood and
4% as biomass. This compares to 49% sold as sawlogs, 44% as
pulpwood and 7% as biomass in the third quarter of 2009.
Net sales for the third quarter of 2010 was $4.6 million (2009 -
$2.8 million) with an average selling price across all products of
$53.38 per m3 which compares to an average selling price of $46.33
per m3 during the third quarter of 2009. This increase in average
sales price is primarily the result of improved demand and pricing
for spruce-fir sawlogs and hardwood pulpwood, partially offset by
the strengthened Canadian dollar. Net sales for the first nine
months ended September 25, 2010 was $11.0 million, a decrease of
$0.2 million over the same period of 2009.
Costs for the third quarter were $3.3 million (2009 - $2.6
million, excluding the effect of the land sale in the prior year).
Variable costs per m3 increased 1% in Canadian dollar terms and 6%
in U.S. dollar terms. This increase reflects longer hauling
distances with less sales made from the woodyard as compared to the
prior year.
EBITDA for the third quarter was $1.3 million, compared to $0.8
million in the comparable period of 2009. For the nine months ended
September 25, 2010, EBITDA was $2.7 million as compared to $3.5
million for the same period of 2009. The 2009 results for the
quarter and year include a $0.6 million one-time gain from a land
sale. Excluding this gain, EBITDA margin in the third quarter of
28% was 21% higher than the third quarter of 2009.
We are pleased to report that Acadian's Maine Timberlands
experienced no recordable safety incidents among employees or
contractors during the third quarter of 2010.
Outlook
The following Outlook contains forward-looking statements about
Acadian Timber Corp.'s outlook for fiscal 2010 and 2011. 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) of Acadian
Timber Income Fund's most recent Annual Report and Acadian Timber
Corp.'s Annual Information Form available on our website at
www.acadiantimber.com or filed with SEDAR at www.sedar.com.
Acadian has benefited from the continued return to operation of
many of its softwood sawmilling customers. Acadian has also
benefited in its Maine operations from a stable labour force while
several regional competitors are struggling to find contractors,
owing to state government efforts to limit Canadian laborer's
access to work in Maine. This has created additional demand and
supported pricing. Despite these positives, we remain cautious in
our outlook for softwood sawlog demand through at least the first
quarter of 2011 as lumber demand and pricing is expected to remain
weak.
Markets for hardwood sawlogs are expected to remain stable and
positive through year end and into 2011. Acadian has benefited from
the current strong markets for market pulp with strong demand for
pulpwood throughout 2010. However, global pulp inventories
increased during the third quarter and demand and pricing are
expected to soften throughout the fourth quarter. High log
inventories at regional pulp mills are expected to further soften
demand through year end. To date Acadian's major hardwood pulpwood
customers are all operating and taking deliveries and, despite this
weak outlook, we expect prices to remain relatively stable through
the fourth quarter. We view the recent announcement of the sale of
Domtar's Woodland pulpmill to International Grand Investment Corp.
favourably as this is expected to ensure a more consistent
operating level for this key hardwood pulpwood customer going
forward. While biomass demand and prices are currently weak, we
expect demand and prices to improve with winter weather conditions
as regional consumers move to increase the proportion of biomass in
their fuel mix.
Acadian's strong performance to date this year has led to a
payout ratio that is well below the target level. With continuing
performance improvement expected and reduced interest costs
resulting from the refinancing to be completed in February 2011,
Acadian is well positioned to revisit the payout ratio in the first
quarter of next year.
Quarterly Dividend
Acadian is pleased to announce a dividend of $0.05 per share,
payable on January 14, 2011 to shareholders of record on December
31, 2010.
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
second 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
management services relating to approximately 1.3 million acres of
Crown licensed timberlands. 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 over 110 regional customers.
Acadian's shares are listed for trading on the Toronto Stock
Exchange under the symbol ADN.
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 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," "expect," "believe," "outlook,"
"remain," "anticipate," "continue," "plan," "could," 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 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; and other risks and factors discussed under the heading
"Risk Factors" in each of the Annual Information Form dated March
26, 2010 and the Management Information Circular dated March 26,
2010, and other filings of Acadian 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
execute agreements in respect of a recently obtained financing
commitment, which are subject to change based on commodity prices,
market conditions for timber and wood products, and the economic
situation of key customers. 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.
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. 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.
(1) This news release makes reference to earnings before
interest, taxes, depletion, depreciation and amortization
("EBITDA") and free cash flow. Management believes that EBITDA and
free cash flow are key performance measures in evaluating Acadian's
operations and are important in enhancing investors' understanding
of the Company's operating performance. As EBITDA and free cash
flow 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 free
cash flow.
(2) On January 1, 2010, Acadian Timber Income Fund completed a
plan of arrangement which allowed for it's conversion from an
income trust to a corporation. Subsequent to the conversion,
Acadian began operating as Acadian Timber Corp. Comparative results
for the nine-month period ended September 26, 2009 reflect the
results of Acadian Timber Income Fund and results for the three and
nine month periods ended September 25, 2010 reflect the results of
Acadian Timber Corp. References to "dividends", "free cash flow"
and "shareholders" reflect distributions, distributable cash from
operations and unitholders, respectively, of Acadian Timber Income
Fund for the comparative period in 2009.
Acadian Timber Corp.
Interim Consolidated Balance Sheet
(unaudited)
----------------------------------------------------------------------------
As at (CAD millions) September 25, 2010 December 31, 2009
----------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 3.0 $ 2.1
Accounts receivable and other assets 8.7 6.2
Note receivable - 4.0
Inventory 1.7 1.8
Future income tax asset 1.7 -
----------------------------------------------------------------------------
15.1 14.1
Intangible assets 6.1 6.1
Timberlands, logging roads and fixed assets 183.9 190.0
Future income tax asset 13.8 -
----------------------------------------------------------------------------
$ 218.9 $ 210.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 6.0 $ 4.3
Dividends payable to shareholders 0.8 -
Debt 75.5 -
Deferred credit 1.4 -
----------------------------------------------------------------------------
83.7 4.3
Deferred credit 18.4 -
Future income tax liability 4.7 13.9
Long-term debt - 80.7
Shareholders' equity 112.1 111.3
----------------------------------------------------------------------------
$ 218.9 $ 210.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acadian Timber Corp.
Interim Consolidated Statement of Operations and Deficit
(unaudited)
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
----------------------------------------------------------------------------
Sept 25, Sept 26, Sept 25, Sept 26,
(CAD millions) 2010 2009 2010 2009
----------------------------------------------------------------------------
Net sales $ 17.9 $ 14.4 $ 50.5 $ 46.7
----------------------------------------------------------------------------
Operating costs and expenses
Cost of sales 11.4 11.4 33.8 31.2
Selling, administration and other 1.7 2.3 5.1 6.0
Depreciation and depletion 1.7 1.2 4.9 5.5
----------------------------------------------------------------------------
14.8 14.9 43.8 42.7
----------------------------------------------------------------------------
Operating earnings (loss) 3.1 (0.5) 6.7 4.0
Gain on sale of timberlands - (0.6) - (0.6)
Gain on Class B Interest Liability
of a subsidiary - - - (4.7)
Interest:
Interest expense on long-term debt 1.0 0.8 2.8 2.4
Class B Interest Liability of a
subsidiary - - - 0.3
----------------------------------------------------------------------------
Earnings (loss) before income taxes 2.1 (0.7) 3.9 6.6
Income tax recovery (expense)
Current - - - -
Future (0.6) 0.5 (0.5) 2.7
----------------------------------------------------------------------------
Net income (loss) for the period 1.5 (0.2) 3.4 9.3
Deficit, beginning of period (23.0) (17.9) (23.0) (20.9)
Shareholders' dividends declared (0.9) (3.5) (2.8) (10.0)
----------------------------------------------------------------------------
Deficit, end of period $ (22.4) $ (21.6) $ (22.4) $ (21.6)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss) per share - basic $ 0.09 $ (0.01) $ 0.20 $ 0.58
Net income (loss) per share -
diluted $ 0.09 $ (0.01) $ 0.20 $ 0.30
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acadian Timber Corp.
Interim Consolidated Statement of Comprehensive Income (Loss)
(unaudited)
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
----------------------------------------------------------------------------
Sept 25, Sept 26, Sept 25, Sept 26,
(CAD millions) 2010 2009 2010 2009
----------------------------------------------------------------------------
Net income (loss) $ 1.5 $ (0.2) $ 3.4 $ 9.3
----------------------------------------------------------------------------
Other comprehensive loss
Unrealized foreign currency
translation loss (0.2) (2.0) (0.8) (4.8)
----------------------------------------------------------------------------
Comprehensive income (loss) $ 1.3 $ (2.2) $ 2.6 $ 4.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Acadian Timber Corp.
Interim Consolidated Statement of Cash Flows
(unaudited)
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
----------------------------------------------------------------------------
Sept 25, Sept 26, Sept 25, Sept 26,
(CAD millions) 2010 2009 2010 2009
----------------------------------------------------------------------------
Cash provided by (used for):
----------------------------------------------------------------------------
Operating activities
Net income (loss) $ 1.5 $ (0.2) $ 3.4 $ 9.3
Items not affecting cash:
Future income tax expense
(recovery) 0.6 (0.5) 0.5 (2.7)
Depreciation and depletion 1.7 1.2 4.9 5.5
Gain on sale of timberlands - (0.6) - (0.6)
Gain on Class B Interest Liability
of a subsidiary - - - (4.7)
----------------------------------------------------------------------------
3.8 (0.1) 8.8 6.8
Net change in non-cash working
capital balances and other - (0.4) (0.9) (3.2)
----------------------------------------------------------------------------
3.8 (0.5) 7.9 3.6
----------------------------------------------------------------------------
Investing activities
Proceeds from sale of timberlands - 0.6 - 0.6
Additions to timberlands, logging
roads and fixed assets - (0.7) (0.3) (0.8)
Silviculture expenditures (0.2) (0.1) (0.2) (0.1)
----------------------------------------------------------------------------
(0.2) (0.2) (0.5) (0.3)
----------------------------------------------------------------------------
Financing activities
Repayment of credit facility (1.0) - (4.5) -
Dividends paid to shareholders (0.9) (3.5) (2.0) (10.0)
----------------------------------------------------------------------------
(1.9) (3.5) (6.5) (10.0)
----------------------------------------------------------------------------
Increase (decrease) in cash and cash
equivalents during the period 1.7 (4.2) 0.9 (6.7)
Cash and cash equivalents, beginning
of period 1.3 6.5 2.1 9.0
----------------------------------------------------------------------------
Cash and cash equivalents, end of
period $ 3.0 $ 2.3 $ 3.0 $ 2.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Reconciliation to EBITDA and Free Cash Flow
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
----------------------------------------------------------------------------
Sept 25, Sept 26, Sept 25, Sept 26,
(CAD millions) 2010 2009 2010 2009
----------------------------------------------------------------------------
Net income (loss)(1) $ 1.5 $ (0.2) $ 3.4 $ 9.3
Add (deduct):
Interest expense on debt 1.0 0.8 2.8 2.4
Distribution on Class B Interest
Liability of a subsidiary - - - 0.3
Income tax expense (recovery) 0.6 (0.5) 0.5 (2.7)
Depreciation and depletion 1.7 1.2 4.9 5.5
Gain on Class B Interest Liability
of a subsidiary - - - (4.7)
----------------------------------------------------------------------------
EBITDA 4.8 1.3 11.6 10.1
Add (deduct):
Interest expense on debt (1.0) (0.8) (2.8) (2.4)
Silviculture and capital
expenditures (0.2) (0.4) (0.5) (0.5)
Non-cash gain on sale of
timberlands - (0.6) - (0.6)
Proceeds from sale of timberlands - 0.6 - 0.6
Acquisition of timberlands - (0.4) - (0.4)
----------------------------------------------------------------------------
Free cash flow $ 3.6 $ (0.3) $ 8.3 $ 6.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dividends declared $ 0.9 $ 3.5 $ 2.8 $ 10.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Net income includes the impact of future income tax recovery, and
depreciation and depletion expense, which are non-cash items recorded in
each respective period.Net income for the nine months ended September 26,
2009 only, included the impact of the revaluation of the Class B Interest
Liability of a subsidiary.
Contacts: Acadian Timber Corp. Robert Lee Investor Relations and
Communications +1-604-661-9607 rlee@acadiantimber.com
www.acadiantimber.com
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