During the 1Q 2020, Acadian Timber Corp. generated sales of $31.4 million compared with sales of $30.9 million during the prior year period. The year-over-year change reflects a 2% decrease in the sales volume of logs, excluding biomass, more than offset by a 1% increase in the weighted average selling price, excluding biomass, and increased timber services activity.
Operating costs and expenses were $23.1 million during the 1Q 2020, compared to $22.2 million during the prior year period. Lower operating costs associated with lower harvest volumes were offset by increased variable operating costs per m3 in Maine, due in part to longer haul distances, and by expenses related to increased timber services activity.
Adjusted EBITDA and Adjusted EBITDA margin for the 1Q 2020 were $8.3 million and 27%, respectively, compared to $8.9 million and 29%, respectively, during the prior year period with the decrease primarily due to lower margins from the operations in Maine.
The net loss for the 1Q 2020 totalled $3.7 million, or $0.22 per share, compared to net income of $6.2 million, or $0.37 per share in the same period of 2019. Operating earnings decreased $0.5 million compared to the prior year period for the reasons discussed above and the Canadian dollar weakened compared to the U.S. dollar during the quarter resulting in a non-cash unrealised foreign exchange loss on long term debt of $8.2 million compared to a gain of $2.0 million in the prior year period.
“Acadian’s operations benefited from favourable winter operating conditions and good demand and pricing for most of our products during the quarter,” commented Erika Reilly, Interim CEO. “While no company is immune to issues in today’s market environment, Acadian is relatively well positioned with a strong balance sheet, well diversified customer base and experienced team.”
Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of approximately 2.4 million acres of land under management, Acadian is one of the largest timberland operators in New Brunswick and Maine.