Acadian Timber Corp. · TSX:ADN
Acadian Timber — Shareholder Meeting (May 2012)
19 slides from Acadian Timber's shareholder meeting presentation, May 2, 2012
Slide 1: Acadian Timber Corp. Annual Meeting of Shareholders
ACADIAN TIMBER CORP. ANNUAL MEETING OF SHAREHOLDERS May 2, 2012
Slide 2: Directors
Directors J.W. Bud Bird* Reid Carter • David Mann* Louis J. Maroun* • Samuel J.B. Pollock * Independent Directors 2
Slide 3: Acadian Timber Corp. Annual Meeting of Shareholders
ACADIAN TIMBER CORP. ANNUAL MEETING OF SHAREHOLDERS May 2, 2012
Slide 4: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” and reliance should not be placed on them as they may involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from anticipated future results. The comp
Slide 5: Acadian Timber Corp. Annual Meeting of Shareholders
ACADIAN TIMBER CORP. ANNUAL MEETING OF SHAREHOLDERS May 2, 2012
Slide 6: Agenda
Agenda Acadian Today Performance in 2011 Outlook for 2012 Q&A 6
Slide 7: Acadian Today
© Acadian Today
Slide 8: Acadian Today
Acadian Today Leading supplier of primary forest products in Eastern Canada and Northeastern U.S. – 1.1 million acres of private timberlands under management Acadian’s business: – Forest Management – Harvesting – Sales and Marketing Timberlands under active management for over 100 years – Infr
Slide 9: 2011 Performance
© 2011 Performance
Slide 10: 2011 Highlights
2011 Highlights Commitment to safety showed positive results Maine operations obtained SFI certification Successfully refinanced Acadian’s debt for a 5 year term with favourable interest rates and a flexible covenant package – Reduced interest payments by $0.7 million compared to the previous
Slide 11: Adapting Product Mix to a Changing Market
Adapting Product Mix to a Changing Market • Softwood sawlog sales remained stable at 38% of net sales • Pulpwood accounted for 40% of net sales, up 1 % from 2010 • Hardwood sawlogs and biomass were 10% and 6% of net sales, comparable to 2010 ACADIAN’S PRODUCT MIX BY END USE* * Percentage of log sale
Slide 12: 2011 Financial Highlights
2011 Financial Highlights millions Year Ended December 31 2011 2010 Sales $ 66.2 $ 71.0 Adjusted EBITDA $ 15.5 $ 17.8 Adjusted EBITDA Margin 23% 25% 12
Slide 13: 2011 Financial Highlights
2011 Financial Highlights Year Ended December 31 2011 2010 Free Cash Flow per Share $ 0.74 $ 0.81 Declared Dividends per Share $ 0.83 $ 0.22 Payout Ratio 111% 27% 13
Slide 14: Q1 2012 Results
Q1 2012 Results Strong safety performance – no reportable incidents in the quarter Results in line with expectations Implementation of VMI program deferred $1.5 million of Adjusted EBITDA to the second quarter (millions) Three Months Ended March 31, 2012 March 26, 2011 Revenue $ 18.6 $ 21.8 Ad
Slide 15: 2012 Outlook
TIMBER © 2012 Outlook
Slide 16: 2012 Outlook
2012 Outlook Market signals remain mixed… • US housing market sending mixed signals – – Full recovery requires employment growth, improved customer confidence and a decline in inventory of unsold homes • Despite challenges softwood sawlog customers maintaining active operations • Hardwood pulp log
Slide 17: 2012 Objectives
2012 Objectives Primary Goal: Maximize value for shareholders – Optimize harvest mix in accordance with market opportunities – Focus on reducing costs wherever possible – Actively work to improve timber selling prices – Steadily improve free cash flows 17
Slide 18: Questions? Q&A
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Slide 19: Acadian Timber Corp. Annual Meeting of Shareholders
ACADIAN TIMBER CORP. ANNUAL MEETING OF SHAREHOLDERS May 2, 2012