The following is a summary of the Acadian Timber Corp. (ACAZF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Acadian Timber Corp. reported Q2 2024 sales of $41.2 million, an increase of $20.5 million from Q2 2023, attributed primarily to the sale of 600,000 voluntary carbon credits.

• Adjusted EBITDA significantly increased to $20.6 million in Q2 2024 from $5.7 million in the prior year, with margins rising to 50%.

• Net income improved to $7.9 million, or $0.46 per share, compared to $5.8 million, or $0.34 per share in Q2 2023.

• Free cash flow saw a notable rise to $16.4 million, reflecting stronger operational and financial stewardship.

Business Progress:

• The company increased forestry production volumes due to enhanced contractor availability and favorable weather conditions.

• Completed a significant sale of carbon credits, enhancing overall EBITDA contributions.

• Executed effective control over costs, despite increased activities, through improved contractor efficiency and equipment utilization.

Opportunities:

• Continued progress in developing and selling voluntary carbon credits.

• Anticipating generating additional 360,000 carbon credits by year-end, leading to increased revenue from environmental solutions initiatives.

Risks:

• Despite increased timber volumes, market conditions for hardwood lumber remain challenged, with an overall weak lumber market potentially impacting future pricing and demand.

• Softwood pricing experienced downward pressures due to regional supply adjustments and market conditions.

More details: ACADIAN TIMBER CORP IR

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