Pope Resources Depositary Receipts of Lt (POPE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Pope Resources Depositary Receipts Of Lt has a market cap of $155.1 million; its shares were traded at around $33.05 with and P/S ratio of 7.6. The dividend yield of Pope Resources Depositary Receipts Of Lt stocks is 3%.POPE is in the portfolios of Private Capital of Private Capital Management, Chuck Royce of Royce& Associates.
Comparing Q3 2010 to Q2 2010. Fee Timber revenue for the third quarter of 2010 increased $435,000, or 6%, from the second quarter of 2010. Revenue increased due to a 1.4 MMBF, or 10%, increase in volume harvested partially offset by a $24/MBF, or 5%, decrease in average log price realized. In spite of higher revenue, operating income for the third quarter 2010 was $374,000 lower than the period ended June 30, 2010. This is a result of third quarter s harvest units carrying higher logging and haul costs as well as a higher proportion of volume from the Funds, which carry a higher depletion rate.
Comparing Q3 2010 to Q3 2009. Fee Timber revenue and operating income for the third quarter of 2010 were $5.3 million and $2.4 million higher, respectively, than the comparable period in the prior year. The increase in revenue and operating income is due to a 9.5 MMBF, or 148%, increase in harvest volume coupled with a $105/MBF, or 27%, increase in average log price realized. Harvest volume increased in the third quarter of 2010 over 2009 to take advantage of strengthening log markets experienced in 2010. This log price increase, while slightly off from the second quarter of 2010, reflects continued strength in log markets that began in the first quarter of 2010 over 2009. Another factor that contributed to improved quarterly log price comparisons was the lower quality pulpwood stands harvested in 2009 which acted to pull down the 2009 average log price compared when compared to third quarter 2010.
Comparing YTD 2010 to YTD 2009. Fee Timber revenue and operating income for the first nine months of 2010 were $11.7 million and $6.0 million higher, respectively, than the same period in 2009. This is a result of a 19.7 MMBF, or 88%, increase in harvest volume combined with a $80/MBF, or 20%, increase in average log price realized. Harvest volume was increased as log markets strengthened relative to 2009.
ORM Timber Funds. The Funds are consolidated into our financial statements, with the 80% of these Funds owned by third parties reflected in our Statement of Operations under the caption “Net loss attributable to noncontrolling interest-ORM Timber Funds.” We deferred harvesting from each of the Funds tree farms in the first quarter of 2010 in anticipation of weak log markets. However, given improvements in domestic and export log markets in the first quarter, we began harvesting from the Funds tree farms during the second quarter to take advantage of higher prices. The Funds generated $1.7 million of revenue in the third quarter of 2010 compared with revenue of $1.4 million in the second quarter of 2010. The Funds generated no revenue in the third quarter of 2009. The Funds generated an operating loss of $99,000 for the quarter ended September 30, 2010, compared to operating income of $64,000 in the second quarter of 2010 and an operating loss of $78,000 in the third quarter of 2009. The increase in the third quarter operating loss is a result of an increase in depletion expense in the Funds in connection with increased harvest levels. The Funds have a higher basis and, as a result, higher depletion expense than the Partnership s timberlands.
Revenue generated by the Funds for the nine months ended September 30, 2010 was $3.4 million compared to $4,000 for the prior year s first three quarters. The Funds had operating income of $36,000 in the period ended September 30, 2010 compared to an operating loss of $264,000 for the three quarters of 2009. The increase in year-to-date 2010 operating income is primarily a result of the small Fund I land sale in the first quarter of 2010.
Read the The complete Report
Pope Resources Depositary Receipts Of Lt has a market cap of $155.1 million; its shares were traded at around $33.05 with and P/S ratio of 7.6. The dividend yield of Pope Resources Depositary Receipts Of Lt stocks is 3%.POPE is in the portfolios of Private Capital of Private Capital Management, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Our current strategy for adding timberland acreage is centered on our private equity timber fund business model, which consists of raising investment capital from third-party investors and investing that capital in timberland for a fee. We have raised two timber funds and have $150 million in assets under management. Our 20% co-investment in the Funds, which totals $28 million, affords us a share of the Funds operating cash flows while allowing us to earn annual asset management and timberland management fees as well as incentive fees based upon the overall success of each fund. Management also believes that this strategy allows us to maintain more sophisticated expertise in timberland acquisition, valuation, and management than could be cost-effectively maintained for the Partnership s timberlands alone.Comparing Q3 2010 to Q2 2010. Fee Timber revenue for the third quarter of 2010 increased $435,000, or 6%, from the second quarter of 2010. Revenue increased due to a 1.4 MMBF, or 10%, increase in volume harvested partially offset by a $24/MBF, or 5%, decrease in average log price realized. In spite of higher revenue, operating income for the third quarter 2010 was $374,000 lower than the period ended June 30, 2010. This is a result of third quarter s harvest units carrying higher logging and haul costs as well as a higher proportion of volume from the Funds, which carry a higher depletion rate.
Comparing Q3 2010 to Q3 2009. Fee Timber revenue and operating income for the third quarter of 2010 were $5.3 million and $2.4 million higher, respectively, than the comparable period in the prior year. The increase in revenue and operating income is due to a 9.5 MMBF, or 148%, increase in harvest volume coupled with a $105/MBF, or 27%, increase in average log price realized. Harvest volume increased in the third quarter of 2010 over 2009 to take advantage of strengthening log markets experienced in 2010. This log price increase, while slightly off from the second quarter of 2010, reflects continued strength in log markets that began in the first quarter of 2010 over 2009. Another factor that contributed to improved quarterly log price comparisons was the lower quality pulpwood stands harvested in 2009 which acted to pull down the 2009 average log price compared when compared to third quarter 2010.
Comparing YTD 2010 to YTD 2009. Fee Timber revenue and operating income for the first nine months of 2010 were $11.7 million and $6.0 million higher, respectively, than the same period in 2009. This is a result of a 19.7 MMBF, or 88%, increase in harvest volume combined with a $80/MBF, or 20%, increase in average log price realized. Harvest volume was increased as log markets strengthened relative to 2009.
ORM Timber Funds. The Funds are consolidated into our financial statements, with the 80% of these Funds owned by third parties reflected in our Statement of Operations under the caption “Net loss attributable to noncontrolling interest-ORM Timber Funds.” We deferred harvesting from each of the Funds tree farms in the first quarter of 2010 in anticipation of weak log markets. However, given improvements in domestic and export log markets in the first quarter, we began harvesting from the Funds tree farms during the second quarter to take advantage of higher prices. The Funds generated $1.7 million of revenue in the third quarter of 2010 compared with revenue of $1.4 million in the second quarter of 2010. The Funds generated no revenue in the third quarter of 2009. The Funds generated an operating loss of $99,000 for the quarter ended September 30, 2010, compared to operating income of $64,000 in the second quarter of 2010 and an operating loss of $78,000 in the third quarter of 2009. The increase in the third quarter operating loss is a result of an increase in depletion expense in the Funds in connection with increased harvest levels. The Funds have a higher basis and, as a result, higher depletion expense than the Partnership s timberlands.
Revenue generated by the Funds for the nine months ended September 30, 2010 was $3.4 million compared to $4,000 for the prior year s first three quarters. The Funds had operating income of $36,000 in the period ended September 30, 2010 compared to an operating loss of $264,000 for the three quarters of 2009. The increase in year-to-date 2010 operating income is primarily a result of the small Fund I land sale in the first quarter of 2010.
Read the The complete Report
