Deltic Announces First Quarter 2007 Results.EL DORADO El Dorado, legendary country of South America El Dorado (ĕl`dərä`dō, –rā`–) [Span.,=the gilded man], legendary country of the Golden Man sought by adventurers in South America. , Ark. -- Deltic Timber Corporation (NYSE NYSE See: New York Stock Exchange : DEL):
DELTIC TIMBER CORPORATION > > >
CONSOLIDATED FINANCIAL DATA SUMMARY > > >
> > >
> > >
FIRST QUARTER > > >
2007
2006
> > >
Net sales > > > $
40,377,000
41,246,000
> > >
Net income > > >
6,649,000
3,968,000
> > >
Earnings per common share > > >
Basic > > >
.53
.32
Assuming dilution > > >
.53
.32
> > >
Average shares outstanding > > >
12,463,930
12,366,758
President and Chief Executive Officer, Ray C. Dillon Dillon may refer to: People
, of Deltic Timber Corporation (NYSE: DEL) announced today that net income for the first quarter of 2007 increased 65 percent to $6.6 million, $.53 a share, compared to $4 million, $.32 a share, a year ago. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. totaled $11.7 million for the first three months of 2007, up $4.4 million from the first quarter of 2006, due primarily to the sale of 680 acres of undeveloped real estate at a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margin of $7.5 million combined with a 174 percent increase in pine pulpwood pulp·wood n. Soft wood, such as spruce, aspen, or pine, used in making paper. pulpwood Noun pine, spruce, or any other soft wood used to make paper Noun 1. sales revenue. Net cash provided by operating activities was $11.7 million for the first quarter of 2007, which compares to $9 million a year ago. In commenting on the results, Mr. Dillon said, "The resolution of the condemnation Condemnation bell, book, and candle symbols of Catholic excommunication rite. [Christianity: Brewer Note-Book, 85] Bridge of Sighs passage from Doge’s court to execution chamber in Renaissance Venice. [Ital. Hist. of 680 acres of our proposed Ridges at Nowlin Creek residential real estate development by the sale of the land to Central Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. Water for $8.2 million was the culmination of extensive efforts by both parties, and I am pleased that this issue has been resolved. The reduced level of annual housing starts in the U.S. continues to cause difficult market conditions for our lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. , in addition to reduced residential lot sales in our real estate developments, but we are pleased to report that we are currently seeing some increase in activity in our Chenal Valley development. Interest in our commercial property remains high, and we are working with several potential buyers regarding sites for various uses. We again accelerated the timing of our planned annual pine sawtimber harvest volume in order to maximize average sales realizations for this timber, but we remain committed to not harvest more than estimated annual growth." Operating income for Deltic's Woodlands segment was $10 million in the first quarter of 2007, an increase of $1.5 million when compared to $8.5 million for the same period a year ago. Pine sawtimber harvest levels increased 22,910 tons to 236,825 tons in the first quarter of 2007 when compared to the first quarter of 2006. Deltic's average pine sawtimber price was $42 per ton, an 11 percent decrease from $47 for 2006's first quarter. The harvest of pine pulpwood increased 62,549 tons when compared to the first quarter a year ago, to 150,114 tons in the current-year first quarter, while the average sales price received was $14 per ton, a 56 percent increase from $9 for the first quarter of 2006. The increases were due to higher demand for pulpwood by area papermills to be chipped for raw material as a result of decreased residual chip production by area sawmills as they reduced lumber production in reaction to depressed lumber market conditions. The Company's Mills segment reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2 million in 2007's first quarter, a decrease of $3.6 million when compared to the corresponding quarter of 2006. Average finished lumber sales price decreased $72, or 20 percent, to $292 per thousand board feet. Lumber sales volume decreased from 71.7 million board feet in the first quarter a year ago to 61.6 million in the current quarter due primarily to a 16 percent decrease in lumber production resulting mainly from a reduction in operating hours due to market conditions. The Real Estate segment earned $7.4 million in the first quarter of 2007, which compares to $.7 million for the same quarter of 2006. Results for the 2007 period included a sale of 680 acres of undeveloped real estate at $12,000 per acre to Central Arkansas Water, while no undeveloped acreage sales occurred in the first quarter of 2006. Residential lot sales totaled 14 lots, a decrease of 13 lots when compared to the first quarter of 2006, and the average lot price of $100,200 decreased $4,900 per lot, or five percent, due primarily to sales mix sales mix See product mix. . Corporate operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. was $3.4 million for 2007's first quarter, which compares to $3.5 million for the corresponding period of 2006. Deltic's equity in Del-Tin Fiber was income of $.2 million for the current-year quarter compared to $.3 million for the first quarter of 2006. Income tax expense increased $1.8 million to $4.4 million, due primarily to the increased pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. . Capital expenditures were $6.6 million for the first quarter of 2007, while expenditures for the same period of 2006 totaled $4.1 million. In regard to the outlook for the second quarter and year of 2007, Mr. Dillon stated, "We currently anticipate the pine sawtimber harvest to be 80,000 to 85,000 tons and 550,000 to 575,000 tons, respectively. Finished lumber production and sales volumes are estimated at 60 to 70 million board feet for the second quarter and 250 to 275 million feet for the year, depending on market conditions. Residential lot sales are projected at 10 to 15 lots and 85 to 100 lots for the second quarter and year of 2007, respectively." Statements included herein that are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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, the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the industry, changes in interest rates and general economic conditions, adverse weather, cost and availability of materials used to manufacture the Company's products, 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. Deltic will hold a conference call on Tuesday, April 24, 2007 at 10:00 a.m. Central Time to discuss first quarter 2007 earnings. Interested parties may participate in the call by dialing 1-866-356-4279 and referencing participant passcode identification number 61234082. The call will also be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and can be accessed through the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Deltic website at www.deltic.com. Online replays of the call will be available through the Deltic website, and a recording of the call will be available until Monday, May 7, by dialing 1-888-286-8010 and referencing replay passcode identification number 32596637. |
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