During the 3Q 2019, Acadian Timber Corp. (“Acadian”) generated sales of $25.4 million, compared to $26.6 million in the prior year period, as the company said in the press release received by Lesprom Network.
While improved markets for pulpwood drove a 7% increase in the sales volume of logs, excluding biomass, compared to the prior year period, biomass volumes fell and there was less activity in our timber services business. Additionally, the weighted average selling price, excluding biomass, fell 2% from the prior year period with weakness in softwood sawlog pricing in Maine mostly offset by improved prices for pulpwood.
Operating costs and expenses were $20.6 million during the 3Q, compared to $21.2 million during the prior year period, with savings from reduced activity in our timber services business largely offset by higher land management and reforestation costs due to the timing of these activities and higher administrative costs resulting from the early settlement of annual performance fees due to Brookfield LP as a result of the termination of the management agreement.
Adjusted EBITDA was $5.1 million during the 3Q, compared to $6.1 million in the prior year period, while the Adjusted EBITDA margin for the quarter was 20%, compared to 23% in the prior year period. This year-over-year decrease reflects the factors discussed above as well as decreased gains from the sale of timberlands and other assets.
Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of 2.4 million acres of land under management, Acadian is one of the largest timberland operators in New Brunswick and Maine.
