During the 3Q 2021, Acadian Timber Corp. generated sales of $22.7 million, compared to $23.2 million in the prior year period.
Operating costs and expenses were $17.9 million during the third quarter, compared to $18.8 million during the prior year period. This year-over-year decrease reflects lower harvesting and timber services activity. Weighted average variable costs, excluding biomass, increased 1% reflecting higher fuel costs, partially offset by a stronger Canadian dollar.
Adjusted EBITDA was $5.1 million during the 3Q 2021, compared to $4.5 million in the prior year period and Adjusted EBITDA margin for the quarter was 23% compared to 19% in the prior year period. Free Cash Flow was $3.6 million compared to $3.1 million in the same period of 2020.
Net income for the 3Q 2021 totaled $0.1 million, or $0.01 per share, compared to $5.2 million, or $0.31 per share in the same period of 2020. The decrease in net income from the prior year period is mainly due to a non-cash unrealized foreign exchange loss on long-term debt of $3.1 million compared to a gain of $2.2 million in the prior year period.
“Steady prices and strong demand for our sawlogs have enabled us to generate solid operating and financial performance for the 3Q. Acadian expects continued steady demand for its key products for the remainder of the year,” commented Adam Sheparski, President and CEO. “We are also very proud to report no recordable safety incidents among employees or contractors for three straight quarters. Health and safety remain a key focus for Acadian.”
During the first nine months of 2021, Acadian generated sales of $67 million compared to $66.1 million in the prior year period. A decrease in sales volume of 3% compared to the prior year period was more than offset by an increase of 2% in the weighted average selling price, excluding biomass. Operating costs and expenses of $51.7 million were $0.4 million lower than the prior year period. Lower softwood pulpwood volumes were offset by strong sawlog prices, increased timber services, and a $0.4 million gain on timberlands sales resulting in Adjusted EBITDA of $15.8 million compared to $14.2 million during the first nine months of 2020. Adjusted EBITDA margin improved to 24% from 21%.
For the nine months ended September 25, 2021, net income was $11.8 million, or $0.71 per share, which represents an increase of $5.0 million compared to the prior period, primarily as a result of a non-cash unrealized foreign exchange gain on long-term debt of $0.4 million this year compared to a loss of $2.9 million in 2020 combined with lower administrative costs and interest expense.
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.
