Advent-Acadian Timber Corp. Reports Fourth Quarter and Year End Results

Core Insights - Acadian Timber Corp. reported strong financial results for the fourth quarter and the full fiscal year 2024, with total sales reaching $116.2 million, a significant increase from$ 93.5 million in 2023, driven by the sale of voluntary carbon credits and improved timber sales volume [2][3][13]. Financial Performance - For the fourth quarter, Acadian generated sales of $20.3 million, down from$ 23.8 million in the prior year, with timber sales volume remaining consistent [9][12]. - The company achieved Free Cash Flow of $29.7 million for the year, compared to$ 15.0 million in 2023, reflecting higher Adjusted EBITDA and proceeds from timberland sales [3][16]. - Net income for 2024 was $21.7 million, or$ 1.24 per share, down from $29.4 million, or$ 1.72 per share, in 2023, primarily due to lower non-cash fair value adjustments [17]. Operational Highlights - Acadian established its own internal harvesting operation in Maine to address contractor availability issues, purchasing harvesting equipment and hiring operators [4][41]. - The company signed an agreement to acquire logging assets from A & A Brochu for $4.8 million to further enhance its harvesting capabilities [5]. Segment Performance - In New Brunswick, timber sales totaled$ 74.3 million, down from $77.1 million in 2023, with freehold sales volume increasing 18% due to improved contractor availability [23][24]. - Maine Timberlands reported sales of$ 17.3 million, up from $16.3 million in 2023, with a 9% increase in sales volume, although contractor availability remained a challenge [33][34]. Environmental Solutions - Acadian's voluntary carbon credit project sold 752,100 credits in 2024, contributing$ 24.6 million to total sales, with an average price of approximately U.S.$24 per credit [3][39]. - The company is planning to register additional carbon credits in 2025, which is expected to enhance its environmental solutions segment [39]. Outlook - The company anticipates stable demand for sawlogs in the near term, with pricing challenges expected until end-use markets improve [40][42]. - Acadian plans to increase production and reduce operating costs in Maine through its internal harvesting operations, with expectations for gradual improvements in financial results throughout 2025 [41].