Acadian Timber Corp
TSX:ADN
Acadian Timber Corp
Acadian Timber Corp. engages in the operation of timberland and supplies forest products. The company is headquartered in Edmundston, New Brunswick. The company went IPO on 2006-01-31. The firm owns and manages Maine approximately 761,000 acres of freehold timberlands in New Brunswick (NB Timberlands) and approximately 300,000 acres of freehold timberlands in Maine (Maine Timberlands). The firm operates through two segments: NB Timberlands and Maine Timberlands. The firm provides timber services, which includes approximately 1.3 million acres of Crown licensed timberlands in New Brunswick. The firm's products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The firm has approximately 2.4 million acres of land under management. The company sells its products to approximately 90 regional customers.
Acadian Timber Corp. engages in the operation of timberland and supplies forest products. The company is headquartered in Edmundston, New Brunswick. The company went IPO on 2006-01-31. The firm owns and manages Maine approximately 761,000 acres of freehold timberlands in New Brunswick (NB Timberlands) and approximately 300,000 acres of freehold timberlands in Maine (Maine Timberlands). The firm operates through two segments: NB Timberlands and Maine Timberlands. The firm provides timber services, which includes approximately 1.3 million acres of Crown licensed timberlands in New Brunswick. The firm's products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The firm has approximately 2.4 million acres of land under management. The company sells its products to approximately 90 regional customers.
Revenue Decline: Sales fell to $23 million from $26 million last year, driven by lower timber volumes and regional operational challenges.
Mixed Regional Results: New Brunswick performed solidly, while Maine faced significant volume and delivery issues due to contractor shortages and internal transition.
Pricing Trends: Softwood sawlog prices increased 10%, but hardwood sawlog prices dropped 11%; overall average selling prices remained stable year-over-year.
Profitability: Adjusted EBITDA fell to $3.5 million (15% margin) from $4 million (16%) last year, but net income rose to $2.9 million due to favorable noncash and tax items.
Operational Transition: Maine's shift from contractors to internal logging increased costs and reduced production in the short term, but recent improvements in output are noted.
Outlook: Management expects near-term demand and pricing to remain pressured, especially for pulpwood, but sees longer-term stability as macro conditions support housing.
