In This Article:
-
Fourth Quarter Sales: $20.3 million, down from $23.8 million in Q4 2023.
-
Operating Costs and Expenses: $17 million, down from $19.5 million in Q4 2023.
-
Adjusted EBITDA: $3.7 million, down from $4.4 million in Q4 2023.
-
Adjusted EBITDA Margin: 18%, compared to 19% in Q4 2023.
-
Net Income: $5.6 million or $0.32 per share, down from $11.6 million or $0.68 per share in Q4 2023.
-
Free Cash Flow: $3.1 million.
-
Dividends Declared: $5.1 million or $0.29 per share.
-
New Brunswick Sales: $19.2 million, down from $19.8 million in Q4 2023.
-
Maine Sales: $3 million, down from $4 million in Q4 2023.
-
Net Liquidity Position: $29.3 million, including a cash balance of $15.3 million.
-
Full Year 2024 Sales: $116.2 million, up from $93.5 million in 2023.
-
Full Year Adjusted EBITDA: $38.9 million, up from $20.6 million in 2023.
-
Full Year Adjusted EBITDA Margin: 33%, compared to 22% in 2023.
-
Full Year Free Cash Flow: $29.7 million, up from $15 million in 2023.
-
Full Year Dividends Declared: $20.3 million.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Acadian Timber Corp (ACAZF) achieved a significant increase in total sales for 2024, reaching $116.2 million compared to $93.5 million in 2023.
-
The company generated record free cash flow of $29.7 million for 2024, up from $15 million in the previous year.
-
Acadian Timber Corp (ACAZF) introduced an Environmental Solutions segment, contributing $24.6 million to total sales through the sale of carbon credits.
-
The company completed the acquisition of approximately 16,000 acres of timberland in New Brunswick, enhancing its operational capacity.
-
Acadian Timber Corp (ACAZF) has established its own harvesting operation in Maine, aiming to expand capacity and reduce operating costs.
Negative Points
-
Sales for the fourth quarter of 2024 were $20.3 million, down from $23.8 million in the same period of 2023.
-
Softwood sawlog pricing decreased by 5% and hardwood sawlog pricing decreased by 10% due to weak end use markets.
-
Contractor availability remained a significant challenge in Maine, impacting volumes.
-
Biomass pricing decreased by 63% due to a shift from delivered sales to more roadside sales.
-
Adjusted EBITDA for the fourth quarter was $3.7 million, down from $4.4 million in the prior year period, with a margin decrease from 19% to 18%.
Q & A Highlights
Q: Are you now at the scale you expect for your internal harvesting operations in Maine, or do you plan to acquire further equipment? A: We believe the equipment we purchased, either on our own or through the acquisition that will close in Q1, puts us at scale. We expect to harvest the volumes needed to achieve our plans and expected cuts in the future. - Adam Sheparski, President, CEO