During the Q2, Acadian Timber Corp. generated sales of $20.7 million, compared to $16.5 million in the prior year period. The weighted average selling price, excluding biomass, increased 9% year-over-year, benefiting from strong softwood sawlog and hardwood pulpwood prices driven by strong demand.
Net income for the Q2 2023 totaled $5.8 million, or $0.34 per share, compared to $4.5 million, or $0.27 per share, in the same period of 2022. The increase in net income compared to the prior year period was primarily the result of higher operating income and gain on the sale of 16 acres of timberlands, partially offset by lower non-cash fair value adjustments.
Adjusted EBITDA was $5.7 million during the Q2 compared to $2.7 million in the prior year period, reflecting higher operating income and gain on sale of timberlands. Adjusted EBITDA margin for the quarter was 27% compared to 17% in the prior year period. Free Cash Flow was $4.1 million, being $2.2 million higher than the prior year period.
“While the Q2 of the year is traditionally our slowest due to seasonal operating conditions, favourable weather allowed harvest to continue later into the winter and to begin earlier after the spring thaw. Combined with increased contractor capacity, Acadian delivered strong Q2 results and recovered much of the volume shortfall of the first quarter,” commented Adam Sheparski, President and CEO. “We are also pleased to announce the successful registration of our first voluntary carbon credits, which are now available for sale."
During the first half of 2023, Acadian generated sales of $43.1 million, consistent with the prior year period. Sales volume, excluding biomass, was 18% lower than the first half of 2022 but was offset by a 13% increase in the weighted average selling price, excluding biomass. Operating costs and expenses of $32.5 million were $1.1 million lower year-over-year.
Adjusted EBITDA of $11.3 million was $1.6 million higher compared to the prior year period. For the six months ended June 24, 2023, net income was $11.4 million, or $0.67 per share, which represents an increase of $2.7 million compared to the prior year period, primarily the result of higher operating income, gain on sale of timberlands and non-cash fair value adjustments.
Acadian Timber Corp. is one of the largest timberland owners in Eastern Canada and the Northeastern U.S. and has a total of approximately 2.4 million acres of land under management.
