Acadian Timber Corp. Reports Fourth Quarter Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/12/13 --

Investors, analysts and other interested parties can access Acadian Timber Corp.'s 2012 Fourth Quarter Results conference call via webcast on Wednesday, February 13, 2013 at 1:00 p.m. ET at www.acadiantimber.com or via teleconference at 1-800-319-4610, toll free in North America. For overseas calls please dial +1-604-638-5340, at approximately 12:50 p.m. ET. The teleconference taped rebroadcast can be accessed at 1-800-319-6413 or +1-604-638-9010 and enter passcode 2826.

All figures in Canadian dollars unless otherwise noted

Acadian Timber Corp. ("Acadian" or the "Company") (TSX:ADN) today reported financial and operating results(1) for the three months ended December 31, 2012 (the "fourth quarter").

For the fourth quarter of 2012, Acadian generated net sales of $18.4 million on sales volume of 327 thousand m3, which represents a $3.3 million, or 22%, increase in net sales compared to the same period in 2011.

Adjusted EBITDA of $5.1 million for the fourth quarter of 2012 was $1.3 million higher than in the fourth quarter of 2011, and Adjusted EBITDA margin increased to 28% from 25% in the same period of last year. The increase in margin is attributed to higher contributions to fixed costs resulting from increased sales volume.

For the year ended December 31, 2012, Acadian generated net sales of $68.8 million on sales volume of 1,304 thousand m3 as compared to net sales of $66.2 million on sales volume of 1,293 thousand m3 in 2011. Adjusted EBITDA of $16.5 million during the year ended December 31, 2012 is $1.0 million higher than the prior year.

"Acadian benefitted from strong demand and pricing for its hardwood pulpwood and average selling prices for spruce fir sawlogs remained robust in Acadian's Maine operations," said Reid Carter, Chief Executive Officer of Acadian.

Review of Operations

Financial and Operating Highlights


                                        Three Months Ended        Year Ended
                                        ------------------------------------
(CAD thousands, except per share           Dec 31   Dec 31   Dec 31   Dec 31
 information)                                2012     2011     2012     2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sales volume (000s m3)                      327.1    283.6  1,303.5  1,293.4
Net sales                                $ 18,410 $ 15,139 $ 68,838 $ 66,153
Adjusted EBITDA                             5,145    3,843   16,488   15,527
Free cash flow                              4,368    2,239   14,022   12,437
Net income                                  3,791   11,427   13,729   13,759
Dividends declared                          3,451    3,451   13,804   13,804
Per share - fully diluted                                                   
  Free cash flow                             0.26     0.13     0.84     0.74
  Net income                                 0.23     0.68     0.82     0.82
  Dividends declared                         0.21     0.21     0.83     0.83
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Despite weak markets for softwood pulp and pine sawlogs, Acadian's New Brunswick operations performed very well in the fourth quarter with strong production and sales. This strong performance was further supported by increased harvest levels at Acadian's higher margin Maine operations which benefited from improved summer and fall weather compared to the prior year along with improved harvesting and hauling contractor availability.

New Brunswick Timberlands

The tables below summarize operating and financial results for New Brunswick Timberlands:


                           Three Months Ended            Three Months Ended 
                            December 31, 2012             December 31, 2011 
                ------------------------------------------------------------
                  Harvest     Sales   Results   Harvest     Sales   Results 
                (000s m3) (000s m3)   ($000s) (000s m3) (000s m3)   ($000s) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood             96.9      96.5 $   4,855      80.3      78.2 $   4,195 
Hardwood            104.8     102.2     6,276      93.9      80.6     4,952 
Biomass              39.0      39.0       932      55.3      55.3     1,145 
----------------------------------------------------------------------------
                    240.7     237.7    12,063     229.5     214.1    10,292 
Other sales                             1,680                           986 
----------------------------------------------------------------------------
Net sales                           $  13,743                     $  11,278 
----------------------------------------------------------------------------
Adjusted EBITDA                     $   4,012                     $   3,301 
Adjusted EBITDA                                                             
 margin                                    29%                           29%
----------------------------------------------------------------------------
                                                                            
                                   Year Ended                    Year Ended 
                            December 31, 2012             December 31, 2011 
                ------------------------------------------------------------
                  Harvest     Sales   Results   Harvest     Sales   Results 
                (000s m3) (000s m3)   ($000s) (000s m3) (000s m3)   ($000s) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood            398.9     403.8 $  20,268     433.1     429.8 $  22,083 
Hardwood            403.8     416.9    25,150     440.2     418.3    24,759 
Biomass             198.7     198.7     3,677     219.5     219.5     3,575 
----------------------------------------------------------------------------
                  1,001.4   1,019.4    49,095   1,092.8   1,067.6    50,417 
Other sales                             3,930                         3,682 
----------------------------------------------------------------------------
Net sales                           $  53,025                     $  54,099 
----------------------------------------------------------------------------
Adjusted EBITDA                     $  13,239                     $  14,205 
Adjusted EBITDA                                                             
 margin                                    25%                           26%
----------------------------------------------------------------------------

Softwood, hardwood and biomass shipments were 97 thousand m3, 102 thousand m3 and 39 thousand m3, respectively, during the fourth quarter. This represents a year-over-year increase in sales volume of 23 thousand m3 or 11%. Approximately 42% of sales volume was sold as sawlogs, 42% as pulpwood and 16% as biomass in the fourth quarter. This compares to 39% of sales volume sold as sawlogs, 35% as pulpwood and 26% as biomass in the fourth quarter of 2011.

Net sales for the fourth quarter totaled $13.7 million compared to $11.3 million for the same period last year. This was primarily the result of the increase in sales volume as harvest activities in the fourth quarter of the prior year were constrained to bring the annual harvest in line with LRSY after having increased harvesting in the first three quarters of 2011 to capture market opportunities. The increase in other sales reflects lower operating and road maintenance costs on the lands operated under Acadian's timberland management services agreement. The weighted average log selling price was $56 per m3 in the fourth quarter of 2012, a 3% decrease from $58 per m3 in the same period of 2011.

Costs for the fourth quarter were $9.7 million, compared to $8.0 million in the same period in 2011. This is attributable to higher volumes sold and increased hauling costs as a lower proportion of sales were from log sort yards.

Adjusted EBITDA for the fourth quarter was $4.0 million, compared to $3.3 million in the same period in 2011. Adjusted EBITDA margin was unchanged from the prior year at 29% as modest per unit variable cost increases and declines in average log selling prices were offset by higher contributions to fixed costs as a result of increased sales volume.

During the fourth quarter of 2012, NB Timberlands experienced two reportable incidents among employees and no reportable incidents among contractors.

Maine Timberlands

The tables below summarize operating and financial results for Maine Timberlands:


                           Three Months Ended            Three Months Ended 
                            December 31, 2012             December 31, 2011 
                ------------------------------------------------------------
                  Harvest     Sales   Results   Harvest     Sales   Results 
                (000s m3) (000s m3)   ($000s) (000s m3) (000s m3)   ($000s) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood             57.9      57.7 $   3,164      47.4      47.3 $   2,527 
Hardwood             28.5      24.1     1,382      21.4      20.3     1,266 
Biomass               7.6       7.6        58       1.9       1.9        18 
----------------------------------------------------------------------------
                     94.0      89.4     4,604      70.7      69.5     3,811 
Other sales                                63                            50 
----------------------------------------------------------------------------
Net sales                           $   4,667                     $   3,861 
----------------------------------------------------------------------------
Adjusted EBITDA                     $   1,376                     $     878 
Adjusted EBITDA                                                             
 margin                                    29%                           23%
----------------------------------------------------------------------------
                                                                            
                                   Year Ended                    Year Ended 
                            December 31, 2012             December 31, 2011 
               -------------------------------------------------------------
                 Harvest     Sales    Results   Harvest     Sales   Results 
               (000s m3) (000s m3)    ($000s) (000s m3) (000s m3)   ($000s) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Softwood           199.6     199.2 $   11,111     161.2     161.4 $   8,495 
Hardwood            74.8      68.8      4,144      51.8      51.9     3,092 
Biomass             16.1      16.1        133      12.5      12.5       116 
----------------------------------------------------------------------------
                   290.5     284.1     15,388     225.5     225.8    11,703 
Other sales                               425                           351 
----------------------------------------------------------------------------
Net sales                          $   15,813                     $  12,054 
----------------------------------------------------------------------------
Adjusted EBITDA                    $    4,026                     $   2,508 
Adjusted EBITDA                                                             
 margin                                    25%                           21%
----------------------------------------------------------------------------

Softwood, hardwood and biomass shipments were 58 thousand m3, 24 thousand m3, and 8 thousand m3, respectively, during the fourth quarter. This represents a year-over-year increase in sales volume of 20 thousand m3 or 29%. Approximately 51% of sales volume was sold as sawlogs, 41% as pulpwood and 8% as biomass during the fourth quarter. This compares to 57% of sales volume sold as sawlogs, 40% as pulpwood and 3% as biomass in the fourth quarter of 2011.

Net sales for the fourth quarter totaled $4.7 million compared to $3.9 million for the same period last year. The improvement was primarily the result of increased sales volume resulting from improved fall weather compared to the prior year along with improved harvesting and hauling contractor availability. The weighted average log selling price was $56 per m3 in the fourth quarter of 2012, unchanged from $56 per m3 in the same period of 2011 in Canadian dollar terms. Weighted average log selling prices increased 2% in U.S. dollar terms during the fourth quarter.

Costs for the fourth quarter were $3.3 million, compared to $3.0 million during the same period in 2011. This increase reflects higher sales volume mostly offset by a 10% decrease in total costs per m3.

Adjusted EBITDA for the fourth quarter was $1.4 million, compared to $0.9 million for the same period in 2011, while Adjusted EBITDA margin increased from 23% to 29%.

There were no recordable safety incident among employees and two reportable incidents among contractors during the fourth quarter of 2012.

Market Outlook

The following Market Outlook contains forward-looking statements about Acadian Timber Corp.'s market outlook for fiscal 2013. Reference should be made to the "Forward-looking Statements" section of this news release. For a description of material factors that could cause actual results to differ materially from the forward-looking statements in the following, please see the Risk Factors section of our management's discussion and analysis of Acadian's most recent Annual Report and Annual Information Form available on our website at www.acadiantimber.com or filed with SEDAR at www.sedar.com.

Seasonally adjusted annualized U.S. housing starts of 954 thousand in December 2012 were 37% above year-ago levels while permits were up 29% year-over-year. For the year, housing starts climbed 28% to 780 thousand from 609 thousand in 2011 and inventories of new homes available for sale remain near 50-year record lows. U.S. home pricing has clearly moved off the early 2012 bottom with the most recent Case-Schiller 20-City Home Price Index showing a national increase of 5.5% year-over-year while the most recent statistics from CoreLogic show home prices nationwide, including distressed sales, moved up 7.4% year-over-year. This represents the biggest increase since May 2006 and the ninth consecutive increase in home prices nationally year-over-year.

Management believes the recovery of home prices removes a major psychological impediment to home buyers standing on the sidelines and should support increased rates of household formation. Additionally, mortgage rates remain at record lows and housing affordability is at near-record highs with mortgage underwriting standards becoming more accommodative. While the consensus forecast is somewhat of a moving target and risks to the forecasts are expected to be on the upside, it appears a reasonable collection of estimates is now projecting 925,000 housing starts for 2013, 1.15 million in 2014 and 1.42 million in 2015 - levels expected to result in very strong markets for timber aimed at solid wood products markets. In addition, Acadian's move to a new pricing mechanism under the fibre supply agreement with one of its major customers at the beginning of 2013 is expected to result in spruce-fir sawlog pricing becoming a better reflection of market in our New Brunswick operations.

Global pulp markets bottomed in the third quarter with strong demand late in the fourth quarter bringing markets into balance. Although pulp price increases have been announced for January and February 2013, we expect producers to have limited ability to move prices up from their current levels owing to ample global capacity. Acadian's pulpwood customers, however, continue to have high operating rates and markets for Acadian's hardwood pulpwood continue to be strong. Markets for softwood pulpwood, a relatively minor product for Acadian, remain adequate.

Markets for hardwood sawlogs and specialty products improved slightly or were stable through 2012 with a similar outlook for 2013. Demand for biomass is expected to be stable, but at low price levels, owing to continued low electricity prices and very low prices for natural gas.

"While there may be volatility, we expect 2013 to be an exciting year in the wood products industry. Acadian's adeptness in identifying and accessing market opportunities will ensure returns from all opportunities that arise are maximized in what is expected to be the first full year of recovery for the industry since the economic downturn in 2008," concluded Mr. Carter.

Quarterly Dividend

Acadian is pleased to announce a dividend of $0.20625 per share, payable on April 15, 2013 to shareholders of record on March 29, 2013.

Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of 2.4 million acres of land under management, Acadian is the second largest timberland operator in New Brunswick and Maine.

Acadian owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine, and provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian also owns and operates a forest nursery in Second Falls, New Brunswick. Acadian's products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to approximately 90 regional customers.

Acadian's shares are listed for trading on the Toronto Stock Exchange under the symbol ADN.

For further information, please visit our website at www.acadiantimber.com.

Forward-Looking Statements

This News Release contains forward-looking information and other forward-looking statements within the meaning of applicable Canadian securities laws that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Acadian Timber Corp. and its subsidiaries (collectively, "Acadian"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this News Release, such statements may contain such words as "may," "will," "intend," "should," "expect," "believe," "outlook," "predict," "remain," "anticipate," "estimate," "potential," "continue," "plan," "could," "might," "project," "targeting" "approximately," or the negative of these terms or other similar terminology. Forward-looking information in this News Release includes, without limitation, statements regarding management's beliefs, intentions, results, performance, goals, achievements, future events, plans and objectives, business strategy, access to capital, liquidity and trading volumes, dividends, taxes, capital expenditures, projected costs, and similar statements concerning anticipated future events, results, achievements, circumstances, performance or expectations that are not historical facts.

These statements which reflect management's current expectations regarding future events and operating performance are based on information currently available to management and speak only as of the date of this News Release. All forward-looking statements in this News Release are qualified by these cautionary statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Factors that could cause actual results to differ materially from the results discussed in the forward-looking statements include, but are not limited to: general economic and market conditions; product demand; future production volumes; concentration of customers; changes in competition; commodity pricing; interest rate and foreign currency fluctuations; seasonality; weather and natural conditions; regulatory, trade or environmental policy changes; changes in labour costs or other costs of production; changes in Canadian income tax law; economic situation of key customers; and other risks and factors discussed under the heading "Risk Factors" in the Annual Information Form of Acadian Timber Corp. dated March 28, 2012, available on SEDAR at www.sedar.com on or about March 28, 2012, and other filings of Acadian with securities regulatory authorities available on SEDAR at www.sedar.com.

Forward-looking information is based on various material factors or assumptions, which are based on information currently available to Acadian. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: anticipated financial performance; business prospects; strategies; regulatory developments; exchange rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services, which are subject to change based on commodity prices, market conditions for timber and wood products, general economic and market conditions; product demand; concentration of customers; commodity pricing; interest rate and foreign currency rate fluctuations; seasonality; weather and natural conditions; regulatory trade or environmental policy changes; changes in Canadian income tax law; the economic situation of key customers, and the utilization of the tax basis resulting from the conversion from an income trust to a corporation. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive. Although the forward-looking statements contained in this News Release are based upon what management believes are reasonable assumptions, Acadian cannot assure readers that actual results will be consistent with these forward-looking statements. Certain statements in this News Release may also be considered "financial outlook" for the purposes of applicable Canadian securities laws, and such financial outlook may not be appropriate for purposes other than this News Release. Such information has been included in the News Release to provide readers with a sense of the future financial outlook of Acadian. The forward-looking statements contained in this News Release are made as of the date of this News Release, and should not be relied upon as representing Acadian's views as of any date subsequent to the date of this News Release. Acadian assumes no obligation to update or revise these forward-looking statements to reflect new information, events, circumstances or otherwise, except as may be required by applicable law.


Acadian Timber Corp.                                                        
Consolidated Statements of Net Income                                       
(unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
                                     Three Months Ended          Year Ended 
----------------------------------------------------------------------------
                                      Dec. 31   Dec. 31   Dec. 31   Dec. 31 
(CAD thousands)                          2012      2011      2012      2011 
----------------------------------------------------------------------------
                                                                            
Net sales                            $ 18,410  $ 15,139  $ 68,838  $ 66,153 
----------------------------------------------------------------------------
Operating costs and expenses                                                
  Cost of sales                        11,642     9,562    46,095    43,847 
  Selling, administration and other     1,509     1,661     5,885     6,346 
  Reforestation                           174        73       493       540 
  Depreciation and amortization           137       139       548       548 
----------------------------------------------------------------------------
                                       13,462    11,435    53,021    51,281 
----------------------------------------------------------------------------
Operating earnings                      4,948     3,704    15,817    14,872 
Interest expense, net                    (720)     (735)   (2,889)   (3,157)
Other items                                                                 
  Unrealized exchange gain (loss) on                                        
   long-term debt                        (621)      455     2,148    (3,473)
  Gain on sale of timberlands and                                           
   land                                    60         -       123       107 
  Fair value adjustments                1,475    14,076     1,924    13,501 
  Loss on revaluation of roads and                                          
   land                                   (83)   (1,527)      (83)   (1,527)
----------------------------------------------------------------------------
Earnings before income taxes            5,059    15,973    17,040    20,323 
Deferred income tax expense            (1,268)   (4,546)   (3,311)   (6,564)
----------------------------------------------------------------------------
Net income for the period            $  3,791  $ 11,427  $ 13,729  $ 13,759 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per share - basic and                                            
 diluted                             $   0.23  $   0.68  $   0.82  $   0.82 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Acadian Timber Corp.                                                        
Consolidated Statements of Comprehensive Income                             
(unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
                                     Three Months Ended          Year Ended 
----------------------------------------------------------------------------
                                      Dec. 31   Dec. 31   Dec. 31   Dec. 31 
(CAD thousands)                          2012      2011      2012      2011 
----------------------------------------------------------------------------
                                                                            
Net income                           $  3,791  $ 11,427  $ 13,729  $ 13,759 
----------------------------------------------------------------------------
Other comprehensive income (loss)                                           
  Unrealized foreign currency                                               
   translation income (loss)              463      (575)   (2,774)    2,559 
  Amortization of derivatives                                               
   designated as hedges                   (49)      (51)     (195)     (321)
  Gain (loss) on revaluation of                                             
   roads and land                         688      (169)      688      (169)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Comprehensive income                 $  4,893  $ 10,632  $ 11,448  $ 15,828 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Acadian Timber Corp.                                                        
Consolidated Balance Sheets                                                 
(unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
As at                                            December 31     December 31
(CAD thousands)                                         2012            2011
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
Current Assets:                                                             
  Cash and cash equivalents                   $        6,136  $        4,019
  Accounts receivable and other assets                 6,619           8,726
  Inventory                                            1,651           2,263
----------------------------------------------------------------------------
                                                      14,406          15,008
Timber                                               230,686         231,370
Land, roads and other fixed assets                    33,307          33,438
Intangible assets                                      6,140           6,140
Deferred income tax asset                                696           3,038
----------------------------------------------------------------------------
                                              $      285,235  $      288,994
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities                                                         
  Accounts payable and accrued liabilities    $        4,685  $        4,534
  Dividends payable to shareholders                    3,451           3,451
----------------------------------------------------------------------------
                                                       8,136           7,985
Long term debt                                        71,173          73,079
Deferred income tax liability                         21,924          21,572
Shareholders' equity                                 184,002         186,358
----------------------------------------------------------------------------
                                              $      285,235  $      288,994
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Acadian Timber Corp.                                                        
Consolidated Statements of Cash Flows                                       
(unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
                                     Three Months Ended          Year Ended 
----------------------------------------------------------------------------
                                      Dec. 31   Dec. 31   Dec. 31   Dec. 31 
(CAD thousands)                          2012      2011      2012      2011 
----------------------------------------------------------------------------
Cash provided by (used for):                                                
----------------------------------------------------------------------------
Operating activities                                                        
Net income                           $  3,791  $ 11,427  $ 13,729  $ 13,759 
Adjustments to net income                                                   
  Deferred income tax expense           1,268     4,546     3,311     6,564 
  Depreciation and amortization           137       139       548       548 
  Fair value adjustments               (1,475)  (14,076)   (1,924)  (13,501)
  Loss on revaluation of roads and                                          
   land                                    83     1,527        83     1,527 
  Unrealized exchange (gain) loss on                                        
   long term debt                         621      (455)   (2,148)    3,473 
  Interest expense, net                   720       735     2,889     3,157 
  Interest paid, net                     (723)   (1,584)   (2,199)   (3,047)
  Gain on sale of timberlands             (60)        -      (123)     (107)
----------------------------------------------------------------------------
                                        4,362     2,259    14,166    12,373 
Net change in non-cash working                                              
 capital balances and other            (1,162)   (2,504)    1,900      (325)
----------------------------------------------------------------------------
                                        3,200      (245)   16,066    12,048 
----------------------------------------------------------------------------
Financing activities                                                        
Borrowing of term facility                  -         -         -    70,608 
Repayment of bank term credit                                               
 facility and term loan                     -         -         -   (73,639)
Deferred financing costs                    -         -         -    (1,205)
Dividends paid to shareholders         (3,451)   (3,451)  (13,805)  (11,190)
----------------------------------------------------------------------------
                                       (3,451)   (3,451)  (13,805)  (15,426)
----------------------------------------------------------------------------
Investing activities                                                        
Additions to timber, land, roads and                                        
 fixed assets                             (54)      (20)     (269)      (45)
Proceeds from sale of timberlands                                           
 and land                                  60         -       125       109 
----------------------------------------------------------------------------
                                            6       (20)     (144)       64 
----------------------------------------------------------------------------
Increase in cash and cash                                                   
 equivalents during the period           (245)   (3,716)    2,117    (3,314)
Cash and cash equivalents, beginning                                        
 of period                              6,381     7,735     4,019     7,333 
----------------------------------------------------------------------------
Cash and cash equivalents, end of                                           
 period                              $  6,136  $  4,019  $  6,136  $  4,019 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Reconciliation to Adjusted EBITDA and Free Cash Flow                        


----------------------------------------------------------------------------
                                     Three Months Ended          Year Ended 
----------------------------------------------------------------------------
                                      Dec. 31   Dec. 31  Dec. 31,  Dec. 31, 
(CAD thousands)                          2012      2011      2012      2011 
----------------------------------------------------------------------------
                                                                            
Net income                           $  3,791  $ 11,427  $ 13,715  $ 13,759 
Add (deduct):                                                               
  Interest expense, net                   720       735     2,889     3,157 
  Deferred income tax expense           1,268     4,546     3,426     6,564 
  Depreciation and amortization           137       139       548       548 
  Fair value adjustments               (1,475)  (14,076)   (1,924)  (13,501)
  Revaluation of roads and land            83     1,527        83     1,527 
  Unrealized exchange (gain) loss on                                        
   long term debt                         621      (455)   (2,148)    3,473 
----------------------------------------------------------------------------
Adjusted EBITDA                         5,145     3,843    16,589    15,527 
Add (deduct):                                                               
  Interest paid on debt, net             (723)   (1,584)   (2,199)   (3,047)
  Capital expenditures                    (54)      (20)     (269)      (45)
  Proceeds on sale of timberlands          60         -       125       109 
  Gain on sale of timberlands             (60)        -      (123)     (107)
----------------------------------------------------------------------------
Free cash flow                       $  4,368  $  2,239  $ 14,123  $ 12,437 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Dividends declared                   $  3,451  $  3,451  $ 13,804  $ 13,804 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Payout ratio                               79%      154%       98%      111%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1)  This news release makes reference to Adjusted EBITDA and free cash flow
     which are key performance measures in evaluating Acadian's operations  
     and are important in enhancing investors' understanding of Acadian's   
     operating performance. Acadian's management defines Adjusted EBITDA as 
     earnings before interest, taxes, fair value adjustments, unrealized    
     exchange gain/loss on debt, depreciation and amortization. As these    
     performance measures do not have standardized meanings prescribed by   
     International Financial Reporting Standards ("IFRS"), they may not be  
     comparable to similar measures presented by other companies. As a      
     result, we have provided in this news release reconciliations of net   
     income, as determined in accordance with IFRS, to Adjusted EBITDA and  
     free cash flow.                                                        

Contacts:
Acadian Timber Corp.
Robert Lee
Investor Relations and Communications
604-661-9607
rlee@acadiantimber.com
www.acadiantimber.com