Investors, analysts and other interested parties
can access Acadian Timber Corp.’s 2017 Fourth Quarter Results
conference call via webcast on Thursday, February 15, 2018 at 9:00
a.m. ET at www.acadiantimber.com or via teleconference at
1-866-521-4909, toll free in North America. For
overseas calls please dial +1-647-427-2311, at approximately 8:50
a.m. ET. The recorded teleconference rebroadcast can be accessed at
1-800-585-8367 or +1-416-621-4642 and enter passcode 1595598.
Acadian Timber Corp. (“Acadian” or the “Company”) (TSX:ADN) today
reported financial and operating results1 for the year ended
December 31, 2017.
“Acadian posted another year of excellent
performance and we believe we are well positioned to maintain this
momentum in 2018. Market fundamentals remain robust across
our key product segments and we maintain a strong balance
sheet,” commented Mark Bishop, Chief Executive Officer of
Acadian.
Acadian continued to perform well and generated
solid results for the year-ended December 31, 2017, reflecting
strong seasonal demand and favourable operating conditions. During
the year, Acadian generated Adjusted EBITDA of $23.3 million
compared to $22.5 million during 2016, driven by the benefit of
higher log sales volumes as well as larger gains recorded from
sales of higher and better use land in Maine.
Acadian paid a dividend to shareholders of $1.10
per share in the year, representing a payout ratio of 94% which is
in-line with our long-term target of 95%. With continued
strong performance and further supported by our strong liquidity,
our Board of Directors have approved a dividend of $0.275 per share
for the first quarter of 2018.
1 This news release makes reference to
Adjusted EBITDA 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 Free Cash Flow as
Adjusted EBITDA less interest paid, current income tax expense,
additions to, and gains from the sale of, fixed assets plus losses
on, and proceeds from, the sale of fixed assets. 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 and Free Cash Flow.
Review of Operations
|
|
Three Months Ended |
Year Ended |
(CAD
thousands, except per share information) |
|
|
Dec 312017 |
Dec 312016 |
Dec 312017 |
Dec 312016 |
Sales volume (000s
m3) |
|
|
|
297.6 |
|
351.2 |
|
1,252.0 |
|
1,213.4 |
Net sales |
|
|
$ |
19,964 |
$ |
22,723 |
$ |
77,827 |
$ |
77,168 |
Net income |
|
|
|
12,348 |
|
3,121 |
|
30,819 |
|
16,072 |
Adjusted EBITDA |
|
|
|
6,005 |
|
7,049 |
|
23,344 |
|
22,547 |
Free Cash Flow |
|
|
|
4,756 |
|
6,276 |
|
19,480 |
|
19,384 |
Payout ratio |
|
|
|
97% |
|
67% |
|
94% |
|
86% |
Per share – basic and
diluted |
|
|
|
|
|
|
Net
income |
|
|
$ |
0.74 |
$ |
0.18 |
$ |
1.84 |
$ |
0.96 |
Free Cash
Flow |
|
|
|
0.28 |
|
0.38 |
|
1.16 |
|
1.16 |
Dividends declared |
|
|
|
0.275 |
|
0.25 |
|
1.10 |
|
1.00 |
Acadian generated net sales of $77.8 million in
2017, a year-over-year increase of $0.6 million as the company
benefited from a 6% increase in log sales volumes due to strong
seasonal demand and favourable operating conditions. Weighted
average log sales prices decreased 2% as hardwood pulpwood prices
decreased as a result of changes in customer mix while softwood
sawlog prices remained in-line with prior year. Contributions
from biomass products decreased 50% reflecting limited export
markets while regional demand remained solid.
Costs of $56.8 million in 2017 increased 4% from
$54.9 million in the prior year primarily due to increased log
sales volumes. Variable log costs per m3 increased marginally
reflecting slightly longer average hauling distances. In
addition, Acadian benefited from strong sales of higher and better
use (HBU) land in Maine. As a result of the aforementioned
factors, the Adjusted EBITDA margin increased to 30% during 2017
from 29% in the prior year period.
Net income for the year ended December 31, 2017
totalled $30.8 million, or $1.84 per share, compared to $16.1
million, or $0.96 per share, in 2016. The increase is primarily a
result of a favourable fair value revaluation of timber assets and
lower unrealized foreign exchange losses on long term debt.
Segment Performance
New Brunswick Timberlands
The table below summarizes operating and
financial results for New Brunswick Timberlands.
|
Three Months Ended December 31,
2017 |
Three Months Ended December 31, 2016 |
|
Harvest |
Sales |
Sales |
Results |
Harvest |
Sales |
Sales |
Results |
|
(000s m3) |
(000s m3) |
Mix |
($000s) |
(000s m3) |
(000s m3) |
Mix |
($000s) |
Softwood |
103.2 |
97.1 |
50% |
$ |
5,371 |
117.6 |
113.5 |
42% |
$ |
6,189 |
Hardwood |
68.8 |
66.9 |
34% |
|
5,111 |
115.4 |
104.7 |
39% |
|
8,251 |
Biomass |
31.6 |
31.6 |
16% |
|
549 |
51.7 |
51.7 |
19% |
|
980 |
|
203.6 |
195.6 |
100% |
|
11,031 |
284.7 |
269.9 |
100% |
|
15,420 |
Other
sales |
|
|
|
|
1,431 |
|
|
|
|
1,114 |
Net
sales |
|
|
|
$ |
12,462 |
|
|
|
$ |
16,534 |
Adjusted EBITDA |
|
|
|
$ |
4,463 |
|
|
|
$ |
5,867 |
Adjusted
EBITDA margin |
|
|
|
|
36% |
|
|
|
|
35% |
|
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
|
Harvest |
Sales |
Sales |
Results |
Harvest |
Sales |
Sales |
Results |
|
(000s m3) |
(000s m3) |
Mix |
($000s) |
(000s m3) |
(000s m3) |
Mix |
($000s) |
Softwood |
379.3 |
378.2 |
41% |
$ |
20,932 |
361.4 |
358.7 |
38% |
$ |
19,394 |
Hardwood |
345.6 |
356.9 |
39% |
|
27,295 |
373.0 |
362.5 |
39% |
|
28,948 |
Biomass |
186.4 |
186.4 |
20% |
|
3,160 |
218.1 |
218.1 |
23% |
|
5,539 |
|
911.3 |
921.5 |
100% |
$ |
51,387 |
952.5 |
939.3 |
100% |
|
53,881 |
Other
sales |
|
|
|
|
2,719 |
|
|
|
|
2,652 |
Net
sales |
|
|
|
$ |
54,106 |
|
|
|
$ |
56,533 |
Adjusted EBITDA |
|
|
|
$ |
18,073 |
|
|
|
$ |
19,320 |
Adjusted
EBITDA margin |
|
|
|
|
33% |
|
|
|
|
34% |
Year ended December 31, 2017:
Net sales for the year ended December 31, 2017
totalled $54.1 million compared to $56.5 million in 2016. This
decrease primarily reflects the impact of limited export markets
for biomass products, as log sales volumes and weighted average log
selling prices were largely in-line with the prior year. Log sales
volumes increased 2% to 735 thousand m3 in 2017, from 721 thousand
m3 in 2016, driven by favourable harvest conditions throughout the
year and the continued strength of softwood sawlog markets.
The weighted average log selling price of $65.60
per m3 in 2017 decreased marginally from $67.03 per m3 in the prior
year as softwood sawlog prices increased 2% due to strong demand
while hardwood pulpwood prices decreased 4% as a result of changes
in customer mix.
Costs were $36.0 million in 2017 compared to
$37.2 million in 2016, reflecting lower volumes and pricing for
biomass products due to limited export markets, whereas variable
log costs per m3 remained in-line with 2016. Adjusted EBITDA for
the year ended December 31, 2017 was $18.1 million compared to
$19.3 million in 2016, and the Adjusted EBITDA margin was 33%
compared to 34% in the prior year.
Maine Timberlands
The table below summarizes operating and
financial results for Maine Timberlands.
|
Three Months Ended December 31,
2017 |
Three Months Ended December 31, 2016 |
|
Harvest |
Sales |
Sales |
Results |
Harvest |
Sales |
Sales |
Results |
|
(000s m3) |
(000 m3) |
Mix |
($000s) |
(000s m3) |
(000s m3) |
Mix |
($000s) |
Softwood |
47.0 |
46.8 |
46% |
$ |
3,752 |
52.8 |
52.7 |
65% |
$ |
4,037 |
Hardwood |
44.5 |
49.7 |
49% |
|
3,620 |
25.9 |
26.6 |
33% |
|
2,094 |
Biomass |
5.5 |
5.5 |
5% |
|
9 |
2.0 |
2.0 |
2% |
|
4 |
|
97.0 |
102.0 |
100% |
|
7,381 |
80.7 |
81.3 |
100% |
|
6,135 |
Other
sales |
|
|
|
|
121 |
|
|
|
|
54 |
Net
sales |
|
|
|
$ |
7,502 |
|
|
|
$ |
6,189 |
Adjusted EBITDA |
|
|
|
$ |
2,135 |
|
|
|
$ |
1,393 |
Adjusted
EBITDA margin |
|
|
|
|
28% |
|
|
|
|
23% |
|
Year Ended December 31, 2017 |
Year Ended December 31, 2016 |
|
Harvest |
Sales |
Sales |
Results |
Harvest |
Sales |
Sales |
Results |
|
(000s m3) |
(000s m3) |
Mix |
($000s) |
(000s m3) |
(000s m3) |
Mix |
($000s) |
Softwood |
161.4 |
160.8 |
49% |
$ |
12,250 |
166.1 |
165.4 |
60% |
$ |
12,833 |
Hardwood |
144.5 |
145.1 |
44% |
|
10,855 |
94.0 |
91.4 |
34% |
|
7,353 |
Biomass |
24.6 |
24.6 |
7% |
|
38 |
17.3 |
17.3 |
6% |
|
80 |
|
330.5 |
330.5 |
100% |
|
23,143 |
277.4 |
274.1 |
100% |
|
20,266 |
Other
sales |
|
|
|
|
578 |
|
|
|
|
369 |
Net
sales |
|
|
|
$ |
23,721 |
|
|
|
$ |
20,635 |
Adjusted EBITDA |
|
|
|
$ |
6,751 |
|
|
|
$ |
4,256 |
Adjusted
EBITDA margin |
|
|
|
|
28% |
|
|
|
|
21% |
Year ended December 31, 2017:
Net sales for the year ended December 31, 2017
totaled $23.7 million compared to $20.6 million during the prior
year, primarily due to a 19% increase in log sales volumes. This
increase was driven by a meaningful 63% increase in hardwood
pulpwood sales volume as a result of favourable harvest conditions
relative to 2016 and an increase in regional market share. We
believe that Acadian has been able to capture additional market
share, in part, because it has built up a strong track record of
reliability over time, and also due to its Sustainable Forestry
Initiative® certification, which is a requirement of certain
customers.
The weighted average log selling price during
2017 in Canadian dollar terms was $75.54 per m3, a decrease from
$78.61 per m3 during the prior year. The weighted average log
selling price in U.S. dollar terms of $58.62 per m3 during 2017 was
in-line with prior year. Softwood sawlog prices, which had
been impacted during 2016 and early 2017 by higher customer
inventories and limited markets for sawmill residuals, increased 2%
over the prior year. However, this benefit was offset by the
impact of higher relative sales volumes of hardwood pulpwood which
experienced a slight decline in average pricing over the prior
year.
Costs for the year ended December 31, 2017 were
$19.3 million compared to $16.7 million during 2016, driven by the
aforementioned increase in log sales volumes. While variable
log costs per m3 in Canadian dollars remained in-line with 2016, in
U.S. dollar terms, variable log costs per m3 increased 3% over the
prior year due to longer hauling distances. Adjusted EBITDA for the
year ended December 31, 2017 was $6.8 million compared to $4.3
million in the prior year, driven by the benefit of HBU land sales
as well as the aforementioned increase in sales volumes. As a
result, the Adjusted EBITDA margin in 2017 increased to 28% from
21% in the prior year.
Market Outlook
The U.S. economy is expected to continue to grow
at an above-trend pace in 2018, which should contribute to
continued positive wage growth. Tight construction labor markets
and additional interest rate hikes remain as headwinds, but the
underlying fundamental driver of pent-up household formation
remains very strong. While economic forecasters continue to revise
their outlook for U.S. housing starts reflecting near term supply
side headwinds, all are predicting steady growth in the 6-8% range
for 2018, up from 2.5% growth in 2017. Higher proportion of
single-family starts and strong repair and renovation activity in
2018 will continue to increase demand and boost softwood lumber and
wood product pricing. Industry forecasters predict that
North American sawtimber demand will grow at over 5% per year over
the next few years to support expanding domestic construction
needs.
During the second half of 2017, a number of
supply side factors including wildfires in the BC Interior, severe
hurricane activity in the Caribbean and U.S. South, and severe cold
December weather throughout North America had a negative impact on
lumber production. These events helped push lumber prices to
multi-year highs, with average year to date 2017 benchmark prices
sitting 26% above year-ago levels. With inventories remaining low
as the typical seasonal purchasing ramps up for spring building
season, we anticipate lumber pricing to remain elevated well into
early 2018. 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. Regional mills continue
to operate on full shifts and appear to be carrying inventories
consistent with historic seasonal practices.
In the quarter, the U.S. Department of Commerce
announced final countervailing duty (CVD) and antidumping (AD)
rates, lowering the combined duty from preliminary rates set
earlier in the year of 26.75% to 20.23% for most Canadian
producers. In response, Canada launched initiatives with the North
American Free Trade Act (NAFTA) and World Trade Organization (WTO)
to review the new U.S. duties on softwood lumber imports. With U.S.
Canadian NAFTA negotiations continuing, there is little visibility
on any negotiated softwood dispute resolution. Strength in lumber
markets, combined with supply side factors are broadly expected to
continue to support a pass through of duties to the market in
2018.
Acadian’s hardwood sawtimber markets, which
focus on industrial mill work end uses, remain strong and stable
and are unaffected by U.S. trade initiatives. The supply demand
balance for northeast hardwood pulpwood markets also remains tight,
supporting an ongoing stable price environment. Acadian continues
to be a preferred partner for hardwood fibre supply to this
important market segment. Demand for Acadian’s smallest segment by
margin, softwood pulpwood and biomass, remains at historic low
levels, however, we anticipate biomass exports from New Brunswick
will resume by mid-2018.
As always, Acadian management remains vigilant
in pursuing cost efficiencies across the business, in addition to
remaining highly focused on the sustainable management of our
timberland estate. With a strong balance sheet, and highly capable
operating team, we remain well positioned to meet our quarterly
distributable cash commitments for the foreseeable future. On
behalf of the board and management of Acadian, I would like to
thank all our shareholders for their ongoing support.
Quarterly Dividend
Acadian is pleased to announce a dividend of $0.275 per share,
payable on April 13, 2018 to shareholders of record on March 31,
2018.
Appointment of New Director
The Company is pleased to announce the
appointment of Mr. Bruce Robertson, CPA, CA to its Board of
Directors effective February 14, 2018. Mr. Robertson, is
currently the Vice President, Investments of The Woodbridge Company
Limited and joined the firm in 2013. Prior to joining Woodbridge,
Mr. Robertson held various executive positions at private equity
firms focused largely on markets in Canada and the United
States. Mr. Robertson received his Bachelor of Commerce
(Honours) degree from Queens’s University in 1988 and has served on
the board of directors of both private and publicly-listed
companies.
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 management 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
100 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 Relations Tel:
604-661-9622Email: jsyrnyk@acadiantimber.com
Forward-Looking StatementsThis 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 29, 2017 and the Management Information Circular
dated March 29, 2017, 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.Consolidated Statements of Net
Income(unaudited)
|
Three Months Ended |
Year Ended |
(CAD
thousands) |
Dec 312017 |
Dec 312016 |
Dec 312017 |
Dec 312016 |
|
|
|
|
|
Net
sales |
$ |
19,964 |
$ |
22,723 |
$ |
77,827 |
$ |
77,168 |
Operating costs and
expenses |
|
|
|
|
Cost of
sales |
|
12,358 |
|
13,933 |
|
49,112 |
|
47,960 |
Selling,
administration and other |
|
1,956 |
|
1,744 |
|
7,039 |
|
6,274 |
Reforestation |
|
120 |
|
162 |
|
614 |
|
726 |
Depreciation and amortization |
|
80 |
|
131 |
|
313 |
|
502 |
|
|
14,514 |
|
15,970 |
|
57,088 |
|
55,462 |
Operating earnings |
|
5,450 |
|
6,753 |
|
20,739 |
|
21,706 |
Interest expense,
net |
|
(706) |
|
(756) |
|
(2,895) |
|
(2,942) |
Other items |
|
|
|
|
Fair value
adjustments |
|
8,307 |
|
(2,941) |
|
9,327 |
|
(705) |
Unrealized
exchange (loss) / gain on long-term debt |
|
(753) |
|
(2,277) |
|
6,301 |
|
2,856 |
Gain on sale of
timberlands |
|
475 |
|
165 |
|
2,292 |
|
339 |
Earnings before income taxes |
|
12,773 |
|
944 |
|
35,764 |
|
21,254 |
Current income tax
expense |
|
(565) |
|
(53) |
|
(1,381) |
|
(61) |
Deferred
income tax recovery / (expense) |
|
140 |
|
2,230 |
|
(3,564) |
|
(5,121) |
Net
income |
$ |
12,348 |
$ |
3,121 |
$ |
30,819 |
$ |
16,072 |
Net
income per share – basic and diluted |
$ |
0.74 |
$ |
0.18 |
$ |
1.84 |
$ |
0.96 |
Acadian Timber Corp.Consolidated
Statements of Comprehensive
Income(unaudited)
|
Three Months Ended |
Year Ended |
(CAD
thousands) |
Dec 312017 |
Dec 312016 |
Dec 312017 |
Dec 312016 |
|
|
|
|
|
Net
income |
$ |
12,348 |
$ |
3,121 |
$ |
30,819 |
$ |
16,072 |
Other comprehensive
income / (loss) |
|
|
|
|
Items that may be
reclassified subsequently to net income: |
|
|
|
|
Deferred income
tax recovery / (expense) |
|
3,322 |
|
(3,748) |
|
3,322 |
|
(3,748) |
(Loss) / gain on
revaluation of roads and land |
|
(673) |
|
9,524 |
|
(673) |
|
9,524 |
Unrealized
foreign currency translation gain / (loss) |
|
321 |
|
2,834 |
|
(8,830) |
|
(4,312) |
Comprehensive income |
$ |
15,318 |
$ |
11,731 |
$ |
24,638 |
$ |
17,536 |
Acadian Timber Corp.Consolidated
Balance Sheets(unaudited)
As at(CAD thousands) |
December 31, 2017 |
December 31, 2016 |
|
|
|
ASSETS |
|
|
Current Assets |
|
|
Cash and cash
equivalents |
$ |
23,951 |
$ |
19,654 |
Accounts
receivable and other assets |
|
11,007 |
|
6,952 |
Inventory |
|
1,226 |
|
2,149 |
|
|
36,184 |
|
28,755 |
Timber |
|
330,879 |
|
328,477 |
Land, roads and other
fixed assets |
|
89,013 |
|
91,206 |
Intangible assets |
|
6,140 |
|
6,140 |
|
$ |
462,216 |
$ |
454,578 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
Current
liabilities |
|
|
Accounts payable
and accrued liabilities |
$ |
12,476 |
$ |
3,529 |
Dividends
payable to shareholders |
|
4,601 |
|
4,183 |
|
|
17,077 |
|
7,712 |
Long-term debt |
|
90,866 |
|
97,066 |
Deferred income tax
liability |
|
80,188 |
|
81,949 |
Shareholders’ equity |
|
274,085 |
|
267,851 |
|
$ |
462,216 |
$ |
454,578 |
Acadian Timber
Corp.Consolidated Statements of Cash
Flows(unaudited)
|
Three Months Ended |
Year Ended |
(CAD
thousands) |
Dec 312017 |
Dec 312016 |
Dec 312017 |
Dec 312016 |
Cash
provided by / (used for): |
|
|
|
|
Operating
activities |
|
|
|
|
Net income |
$ |
12,348 |
$ |
3,121 |
$ |
30,819 |
$ |
16,072 |
Adjustments to net
income / (loss): |
|
|
|
|
Deferred income
tax (recovery) / expense |
|
(140) |
|
(2,230) |
|
3,564 |
|
5,121 |
Depreciation and
amortization |
|
80 |
|
131 |
|
313 |
|
502 |
Fair value
adjustments |
|
(8,307) |
|
2,941 |
|
(9,327) |
|
705 |
Unrealized
exchange loss / (gain) on long term debt |
|
753 |
|
2,277 |
|
(6,301) |
|
(2,856) |
Gain on sale of
timberlands |
|
(475) |
|
(165) |
|
(2,292) |
|
(339) |
Net
change in non-cash working capital and other |
|
3,609 |
|
(2,209) |
|
4,743 |
|
(609) |
|
|
7,868 |
|
3,866 |
|
21,519 |
|
18,596 |
Financing
activities |
|
|
|
|
Dividends
paid to shareholders |
|
(4,601) |
|
(4,183) |
|
(17,986) |
|
(16,731) |
|
|
(4,601) |
|
(4,183) |
|
(17,986) |
|
(16,731) |
Investing
activities |
|
|
|
|
Additions to timber,
land, roads and other fixed assets |
|
(100) |
|
(4) |
|
(943) |
|
(283) |
Acquisition of Katahdin
Timberlands LLC |
|
— |
|
— |
|
(1,276) |
|
— |
Proceeds from sale of
timberlands |
|
507 |
|
178 |
|
2,983 |
|
356 |
|
|
407 |
|
174 |
|
764 |
|
73 |
Increase (decrease) in
cash and cash equivalents during the period |
|
3,674 |
|
(143) |
|
4,297 |
|
1,938 |
Cash and
cash equivalents, beginning of period |
|
20,277 |
|
19,797 |
|
19,654 |
|
17,716 |
Cash and cash equivalents, end of period |
$ |
23,951 |
$ |
19,654 |
$ |
23,951 |
$ |
19,654 |
Reconciliations to Adjusted EBITDA and Free Cash
Flow
|
Three Months Ended |
Year Ended |
(CAD
thousands) |
Dec 312017 |
Dec 312016 |
Dec 312017 |
Dec 312016 |
|
|
|
|
|
Net income |
$ |
12,348 |
$ |
3,121 |
$ |
30,819 |
$ |
16,072 |
Add / (deduct): |
|
|
|
|
Interest
expense, net |
|
706 |
|
756 |
|
2,895 |
|
2,942 |
Current income
tax expense |
|
565 |
|
53 |
|
1,381 |
|
61 |
Deferred income
tax (recovery) / expense |
|
(140) |
|
(2,230) |
|
3,564 |
|
5,121 |
Depreciation and
amortization |
|
80 |
|
131 |
|
313 |
|
502 |
Fair value
adjustments |
|
(8,307) |
|
2,941 |
|
(9,327) |
|
705 |
Unrealized
exchange loss / (gain) on long-term debt |
|
753 |
|
2,277 |
|
(6,301) |
|
(2,856) |
Adjusted EBITDA |
|
6,005 |
|
7,049 |
|
23,344 |
|
22,547 |
Add / (deduct): |
|
|
|
|
Interest paid on
debt, net |
|
(681) |
|
(729) |
|
(2,790) |
|
(2,836) |
Additions to
timber, land, roads and other fixed assets |
|
(35) |
|
(4) |
|
(384) |
|
(283) |
Gain on sale of
timberlands |
|
(475) |
|
(165) |
|
(2,292) |
|
(339) |
Proceeds from
sale of timberlands |
|
507 |
|
178 |
|
2,983 |
|
356 |
Current income
tax expense |
|
(565) |
|
(53) |
|
(1,381) |
|
(61) |
Free Cash Flow |
$ |
4,756 |
$ |
6,276 |
$ |
19,480 |
$ |
19,384 |
Dividends declared |
$ |
4,601 |
$ |
4,183 |
$ |
18,404 |
$ |
16,731 |
Payout ratio |
|
97% |
|
67% |
|
94% |
|
86% |
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