VANCOUVER, British Columbia, July 30, 2019 -- Acadian Timber Corp. (“Acadian” or the “Company”) (TSX:ADN) today reported financial and operating results1 for the three months ended June 29, 2019 (the “second quarter”).
“A combination of favorable spring operating conditions and continued stability in key markets supported the anticipated drawdown in log inventories accumulated during the unseasonably cold first quarter”, said Mark Bishop, Chief Executive Officer of Acadian. “Acadian expects to continue to benefit from well-balanced regional softwood sawtimber and hardwood pulpwood markets for the remainder of the year”.
Acadian generated Adjusted EBITDA1 of $3.0 million during the second quarter, up from $2.6 million in the prior year period. Acadian benefited from strong demand, reflecting favourable Northeast regional log markets dynamics and operating conditions during the second quarter. As a result, year-over-year log sales volumes increased 5% while ancillary revenues improved 73%, primarily related to timing of timber services. In addition, Acadian benefited from stronger higher and better use land sales.
For the six-month period ended June 29, 2019, the Board of Directors declared dividends of $0.58 per share or $9.7 million, compared to $0.5575 per share or $9.3 million during the same period of 2018, reflecting the dividend increases announced in May 2018 and February 2019 amounting to a combined 5% increase in our quarterly dividend per share. This represents a Payout Ratio1 of 105%, which is above our long-term annual target of 95% but in line with expectations given the seasonality of our operations and the aforementioned dividend increases. We anticipate that over the long-term we will revert to a Payout Ratio consistent with our target level and, in the near-term, Acadian’s strong cash position supports a Payout Ratio in excess of our target.
Source: Acadian Timber