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Deltic Timber Corp. (DEL) filed Quarterly Report for the period ended 2011-09-30.
Deltic Timber Corp. has a market cap of $855.3 million; its shares were traded at around $67.95 with a P/E ratio of 205.9 and P/S ratio of 6. The dividend yield of Deltic Timber Corp. stocks is 0.4%.
This is the annual revenues and earnings per share of DEL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DEL.
Highlight of Business Operations:
The Company reported net income of $.8 million for the third quarter of 2011, compared to $3.3 million for the same period of 2010. The decrease from the prior year was mainly due to lower operating results from the Real Estate segment and a reduced equity in the earnings of Del-Tin Fiber LLC (“Del-Tin Fiber”), partially offset by improved results from the Woodlands and Mills segments. The Real Estate segment had an operating loss of $1 million compared to income of $4 million a year ago. The decrease was primarily due to no commercial acreage sales in 2011 versus selling a 19-acre commercial real estate tract in 2010. The Woodlands segment reported operating income of $6.1 million, an increase of $1.1 million from the third quarter of 2010 due primarily to increased revenues from sales of pine pulpwood and non-strategic timberland, along with reduced costs for cull timber removal and fee timber harvested, partially offset by lower income from sales of other timber products. The Mills segment reported operating income of $.5 million, an improvement of $.8 million from a third quarter loss in 2010, due mostly to a decrease in the cost of logs used to manufacture lumber. The Corporate segment’s general and administrative expenses were $.2 million lower during the current-year quarter than in the same period a year ago. Deltic owns a 50 percent interest in Del-Tin Fiber and recorded break-even equity in its financial results for the third quarter of 2011 compared to $1 million in the third quarter of 2010. This decrease was the result of a lower average per-unit sales price and reduced sales volume, along with an increase in raw material resin glue cost used to manufacture medium density fiberboard (“MDF”).For the third quarter of 2011, the pine sawtimber harvest of 207,777 tons increased when compared to the 2010 third quarter harvest of 159,487 tons. The average per-ton sales price decreased to $22 per ton, or 21 percent, from the 2010 third quarter per-ton price of $28. The increased harvest for the third quarter was due to the unusually dry logging conditions in the Company’s operating area, which enabled it to accelerate its annual harvest schedule; however, Deltic plans for its 2011 harvest volume to be essentially the same as in 2010. The pine pulpwood harvest of 129,174 tons was an increase of 54,601 tons from the harvest in the third quarter of 2010. The average sales price received for pine pulpwood was $8 per ton in both years. The Company sold 500 acres of non-strategic recreational-use hardwood bottomland at an average sales price of $1,821 per acre during the third quarter of 2011 compared to sales of 370 acres at an average price of $1,499 per acre for the same period of 2010. Hunting lease income was $.5 million for the third quarters of both 2011 and 2010.
Net sales increased $1.5 million in the third quarter of 2011 when compared to the 2010 third quarter. Sales of pine sawtimber increased $.1 million due to a 30 percent increase in harvest volume, partially offset by a $6 per ton, or 21 percent, lower average sales price than in the third quarter of 2010. Pine pulpwood sales increased $.5 million due to a 73 percent increase in harvest volume. Revenues from hardwood sawtimber decreased $.4 million due to a lower harvest volume and a lower average per-ton sales price. Hardwood pulpwood sales decreased $.1 million because of a lower harvest volume and a lower per-ton average sales price. Revenues from timberland sales increased $.3 million due to more acres sold at a higher per-acre sales price. Oil and gas lease rentals increased $.1 million when compared to the same period of 2010. Revenues from hauling stumpage to other mills increased $.9 million when compared to the third quarter of 2010. Operating income was $6.1 million in the third quarter of 2011 compared to $5 million in the third quarter of 2010. This increase was due to the same factors that increased net sales, combined with benefits from lower salaries and benefits, cull timber removal expenses, road maintenance expense on fee timberlands, and the cost of fee timber harvested, while the cost of hauling stumpage to other mills offset the hauling revenues.
Operating income decreased $9.7 million from 2010. The Mills segment decreased $8 million mainly due to a lower average lumber sales price and reduced sales volume, partially offset by a lower cost per unit sold. The Real Estate segment’s operating income decreased $2.9 million due primarily to a lower margin from sales of commercial acreage. Equity in earnings of Del-Tin Fiber decreased $2.8 million compared to 2010 due mainly to a lower sales volume, a lower average per-unit sales price, and increased raw material costs. Corporate expenses decreased $1 million mainly due to lower general and administrative expenses, primarily employee incentive plan expenses.
Net sales in 2011 increased $1.5 million when compared to 2010. Sales of pine sawtimber decreased $.5 million due to a lower average sales price of $24 per ton, or 11 percent, which was partially offset by a higher harvest volume. Sales of pine pulpwood decreased $.1 million due to a 33 percent lower average per-ton sales price of $8, offset somewhat by an increase in the volume harvested. Revenues from hardwood sawtimber and hardwood pulpwood declined $.5 million and $.4 million, respectively. Revenues from timberland sales increased $.5 million due to additional acres sold, but at a lower per-acre average sales price. Revenues from hauling fee stumpage to other mills increased $2.2 million. Revenues from oil and gas lease rentals increased $.4 million, and oil and gas royalty income increased $.1 million. Revenues from easements and rights-of-way decreased $.2 million. The decrease in operating income was due to an increase of $2.2 million in costs for hauling fee stumpage to other mills and was partially offset by decreases in expenses for road maintenance, cull timber removal expenses, salaries and benefits, and cost of fee timber harvested, as well as the same items affecting net sales.
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