The following is a summary of the Acadian Timber Corp. (ACAZF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Acadian Timber Corp. reported Q4 sales of $23.8 million, with sales volume (excluding biomass) increasing by 4% YoY.

• The operating costs and expenses were slightly lower than the previous year at $19.5 million.

• Adjusted EBITDA for Q4 was recorded at $4.4 million, a slight increase from the prior year, though net income fell to $11.6 million from $22 million YoY.

• The company declared dividends of $5 million and generated free cash flow of $2.8 million in this quarter.

• Yearly sales for 2023 was $93.5 million, marking an increase from $90.5 million in 2022.

• 2023's adjusted EBITDA was $20.6 million and free cash flow was $15 million with declared dividends of $19.8 million to shareholders.

Business Progress:

• With improved contractor availability, sales volume in New Brunswick increased by 10%, though decreased volumes were recorded in Maine due to persistent challenges in contractor availability.

• The company ended the quarter with a net liquidity position of $14.8 million, and expects cash reserves to be replenished heading into the busiest season.

• The company executed a lease agreement for 10,000 acres of its Maine Timberlands for a solar-power project, expected to provide significant cash flows in the future.

• The first tranche of carbon credits was sold at strong pricing and registration for future tranches is underway.

• Strategies to increase harvesting capacity are ongoing, with principal emphasis on Maine in 2024.

• The company remains vigilant about the impacts of inflation but retains a positive outlook on the stability of primary forest product pricing.

• Growth in both Maine and New Brunswick operations remains a core focus for Acadian in 2024.

More details: ACADIAN TIMBER CORP IR

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