During the Q1 2024, Acadian Timber Corp. generated sales of $28.8 million, compared to $22.4 million in the prior year period. Acadian’s first significant sale of carbon credits occurred during the Q1 and contributed $4.9 million to sales. Timber sales volumes increased 35% year-over-year primarily as a result of increased contractor availability, which was partially offset by the impacts of unfavourable weather conditions, as well as lower timber services activity. Biomass sales volume decreased 59% from the prior year quarter due to limited processing capacity and fiber availability.
Adjusted EBITDA was $10.6 million during the Q1 2024 compared to $5.6 million in the prior year period. Adjusted EBITDA margin for the quarter was 37% compared to 25% in the prior year period. Free Cash Flow was $7.8 million, which is $4.2 million higher than the same period in the prior year.
Net income for the Q1 2024 totaled $6.0 million, or $0.35 per share, compared to net income of $5.6 million, or $0.33 per share in the same period of 2023. Higher operating income was offset by lower non-cash fair value adjustments and lower gains on sale of timberlands and other fixed assets, as well as higher income tax expense, as compared to the prior year period.
“Achieving our first significant sale of carbon credits, entering a renewable energy option to lease, and purchasing additional timberlands in New Brunswick, together with solid results from our timber operations, resulted in a compelling Q1 2024,” said Adam Sheparski, President and CEO. “Rebounding timber sales volumes stemming from the hard work by the Acadian team to improve contractor availability and the pending monetization of our remaining registered carbon credits are expected to result in a robust fiscal 2024."
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.
