Deltic Timber Corporation (NYSE:DEL):
DELTIC TIMBER CORPORATION CONSOLIDATED FINANCIAL DATA
SUMMARY FOURTH QUARTER 2017 2016
Net sales $
72,041,000
58,493,000 Net income 189,000 3,143,000 Earnings per
common share Basic .02 .26 Assuming dilution .02 .26 Average
common shares outstanding Basic 12,078,004 12,022,689 Assuming
dilution 12,162,947 12,110,305
YEAR-TO-DATE 2017 2016 Net sales $ 242,265,000 219,363,000
Net income 6,488,000 9,245,000 Earnings per common
share Basic .53 .76 Assuming dilution .53 .76 Average common
shares outstanding Basic 12,070,270 12,009,534 Assuming dilution
12,150,185 12,073,888
Deltic Timber Corporation (NYSE:DEL), a natural resources
company, today announced financial results for the fourth quarter
of 2017.
Fourth Quarter 2017
Highlights
- Net sales totaled $72.1 million,
compared to $58.5 million for fourth quarter 2016
- Net income was $.2 million, or $.02
per diluted share for the fourth quarter of 2017, compared to net
income of $3.1 million, or $.26 per diluted share, for the same
period of 2016
- Fourth quarter 2017 Adjusted Net
income1, which excludes Potlatch merger-related
costs, was $11.3 million, or $.92 per diluted share, compared to
net income of $3.1 million, or $.26 per diluted share, for the same
period of 2016
Financial results for the fourth quarter of 2017 benefited from
increased operating income in the Woodlands and Manufacturing
segments as demand for the Company's timber and wood products
remained strong during the fourth quarter, but were offset by
significantly increased corporate general and administration
expenses related to the Agreement and Plan of Merger agreed upon by
Deltic and Potlatch on October 22, 2017.
Woodlands Segment
Fourth Quarter 2017 Highlights
- Sold 327,570 tons of pine sawtimber,
83% above Q4 2016
- Pine sawtimber prices averaged $28/ton,
an increase of $1/ton from previous-year fourth quarter
- Sold 185,200 tons of pine pulpwood, 74%
above Q4 2016
- Pine pulpwood prices averaged $7/ton, a
decrease of $1/ton from previous-year fourth quarter
- Sold approximately 851 acres of Higher
Better Use ("HBU") timberland for $2,400/acre, compared to no sales
in Q4 2016
Woodlands Segment Financial Results
($ in millions)
Q4 2017
Q4 2016 Q3 2017 Segment
net sales $ 18.8
9.3 11.3 Segment operating income $ 9.9
4.2 5.4
Woodlands segment operating income increased in fourth quarter
of 2017 compared to fourth quarter 2016 due to higher volumes of
sawtimber and pulpwood sold combined with sales of 851 acres of HBU
timberland. The increase in timber volume sold was mainly due to
Company sales of timber through timber deeds as part of the
Company's strategic initiatives.
Manufacturing Segment
Fourth Quarter 2017 Highlights
- Sold 68.1 million board feet of lumber,
7% above Q4 2016
- Lumber prices averaged $22/MBF higher
than Q4 2016
- Sold 24.7 million square feet of Medium
Density Fiberboard ("MDF"), 4% above Q4 2016
- MDF prices increased $8/MSF compared to
Q4 2016
Manufacturing Segment Financial Results
($ in millions)
Q4 2017 Q4
2016 Q3 2017 Segment net sales
$ 45.8 40.7 48.3
Segment operating income $ 5.2 3.2 3.7
Manufacturing segment operating income increased in fourth
quarter 2017 compared to fourth quarter 2016, principally as a
result of increased lumber sales volumes and price per MBF sold,
combined with a higher sales volume of MDF and lower per-unit cost
at the MDF plant.
Real Estate Segment
Fourth Quarter 2017 Highlights
- Sold 78 residential lots compared to 77
lots in Q4 2016
- Residential lot sales prices averaged
$98,000/lot, an increase of 19% from Q4 2016, due to mix
- Sold 4.8 acres of commercial acreage,
which included the 35,000-square-foot retail center, compared to 23
acres in Q4 2016
- Commercial sales price averaged
$1,068,000 per acre, compared to $232,000 per acre in Q4 2016
Real Estate Segment Financial Results
($ in millions)
Q4 2017 Q4 2016
Q3 2017 Segment net sales $ 13.9 13.6
6.2 Segment operating income/(loss) $ 5.1 6.4 1.0
Real Estate segment operating income was lower in the fourth
quarter of 2017 compared to fourth quarter 2016 as increased
revenue from residential lot sales was offset by a write-down to
the basis of the Company's speculative homes in our Red Oak Ridge
development. Lot sales reflect the closings of successful lot
offerings in three Chenal Valley neighborhoods and in the Wildwood
development during the fourth quarter of 2017.
Corporate Segment General and
Administrative Expense, Interest Expense, and Income Tax
Expense
Corporate segment general and administrative expense was $20.5
million, compared to $8.1 million for the same period of 2016.
The increase is primarily due to higher legal and professional fees
related to the merger with Potlatch. The provision for income tax
was a benefit of $2.8 million, compared to an expense of $.3
million in the prior-year’s fourth quarter. The current year
provision included a $2.5 million benefit from the remeasurement of
deferred tax liabilities due to the Tax Cuts and Jobs Act of
2017.
Capital Expenditures
Capital expenditures were $4 million in the fourth quarter 2017
compared to $11 million for the fourth quarter of 2016. There were
no timberland acquisition expenditures in the fourth quarter of
2017 compared to timberland acquisition expenditures of $.6 million
during the same period of 2016.
1Supplemental Disclosure Regarding Non-GAAP Financial
Information
The following table sets forth the Company's Adjusted Net Income
for the three and twelve months ended December 31, 2017 and 2016.
Adjusted Net Income is not a measure that is prepared in accordance
with U.S. generally accepted accounting principles (GAAP).
We use Adjusted Net Income in our operational and financial
decision-making, believing that the measure is useful to eliminate
certain items in order to focus on ongoing operating performance
and our ability to generate cash flow from operations. We believe
that this Non-GAAP measure, when used in conjunction with our GAAP
financials, provides useful information to investors by presenting
a key measure that we use internally when making operating
decisions and evaluating our overall performance.
Three Months Ended Twelve Months Ended December 31,
December 31, (Millions of dollars) 2017 2016 2017
2016 Net Income $ 0.2 3.1 $ 6.5 9.2 Potlatch merger costs
16.9 — 16.9 Income tax effect of merger costs (5.8 ) — (5.8
) — 1Adjusted Net Income $ 11.3 3.1 $ 17.6 9.2
Earnings per share assuming dilution $ 0.02 0.26 0.53 0.76
Potlatch merger costs 1.37 — 1.37 — Income tax effect of merger
costs (0.47 ) — (0.47 ) — 2Adjusted Earnings per share
assuming dilution $ 0.92 0.26 $ 1.43 0.76
Forward-Looking
Statements
Statements included herein that are not historical in nature are
intended to be, and are hereby identified as, “forward-looking
statements” within the meaning of the federal securities laws. Such
statements reflect the Company’s current expectations and involve
certain risks and uncertainties. Actual results could differ
materially from those included in such forward-looking statements.
Factors that could cause such differences include, but are not
limited to, pending merger with Potlatch Corporation, the cyclical
nature of the industry, changes in interest rates, credit
availability, general economic conditions, adverse weather, cost
and availability of materials used to manufacture the Company’s
products, natural gas pricing and volumes produced, and the other
risk factors described from time to time in the reports and
disclosure documents filed by the Company with the Securities and
Exchange Commission.
About Deltic
Deltic Timber Corporation is a natural resources company focused
on the efficient and environmentally responsible management of its
land holdings. The Company owns approximately 530,000 acres of
timberland, operates two sawmills and a medium density fiberboard
plant, and is engaged in real estate development. Headquartered in
El Dorado, Arkansas, the Company’s operations are located primarily
in Arkansas and north Louisiana.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180214006490/en/
Deltic Timber CorporationAnna Torma,
870-881-6463ir@deltic.com
Deltic Timber (NYSE:DEL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Deltic Timber (NYSE:DEL)
Historical Stock Chart
From Jul 2023 to Jul 2024