Deltic Announces Fourth Quarter and Year of 2005 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
FOURTH QUARTER 2005 2004
Net sales $ 46,108,000 36,954,000
Net income 2,360,000 3,319,000
Earnings per common share
Basic .19 .27
Assuming dilution .19 .27
Average shares outstanding 12,306,538 12,198,921
YEAR OF 2005 2005 2004
Net sales $ 168,350,000 142,017,000
Net income 14,518,000 11,093,000
Earnings per common share
Basic 1.18 .92
Assuming dilution 1.17 .91
Average shares outstanding 12,260,067 12,121,795
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 fourth quarter and year of 2005 totaled $2.3 million, $.19 a share, and $14.5 million, $1.18 a share, respectively. Results for the year of 2005 are a 31 percent increase in net income from $11.1 million, $.92 a share, for the twelve months ended December December: see month. 31, 2004. The quarterly results represent a decrease of $1 million when compared to $3.3 million, $.27 a share, a year ago and resulted primarily from lower pine sawtimber harvest volumes and an increase in general and administrative expenses, partially offset by the sale of a 4.72-acre commercial real estate site. For the year of 2005, net cash provided by operating activities was $43.1 million, an increase of $1 million when compared to the prior year. Net cash provided by operating activities for the fourth quarter of 2005, was $13.5 million, an increase of $5 million when compared to a year ago. Commenting on the results, Mr. Dillon stated, "The highlight of the fourth quarter of 2005 came from our Real Estate segment through the sale of one of the prime commercial tracts within our Chenal Valley real estate development in Little Rock, Arkansas Little Rock, Arkansas required military intervention to desegregate schools (1957–1958). [Am. Hist.: Van Doren, 556–557] See : Bigotry . Regarding the full year of 2005, the Company's Woodlands segment realized its highest average pine sawtimber price in five years, and our sawmill sawmill, installation or facility in which cut logs are sawed into standard-sized boards and timbers. The saws used in such an installation are generally of three types: the circular saw, which consists of a disk with teeth around its edge; the band saw, which operations produced and sold the largest volume of finished 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 in the history of the Company. Deltic's Real Estate segment had its second best year of residential lot closings, as well as noteworthy commercial sales activity. Our 50 percent-owned joint venture, Del-Tin Fiber, finished the year at financial breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations , a significant achievement in light of the fire-related temporary production curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. experienced during the first quarter of 2005. Cash flow generated by the Company was sufficient to fund Deltic's ongoing capital expenditure program and lower long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by $11.2 million. In summary, we are pleased with the Company's performance and trend of increased earnings in 2005. We will enter 2006 with our focus on continuing operating improvement." The Woodlands segment earned $3 million in the fourth quarter of 2005 compared to $4.7 million for the same period of 2004. The Company's pine sawtimber harvest decreased from 125,605 tons in the prior-year quarter to 86,688 tons in 2005's fourth quarter. This decrease in harvest volume was due to the Company strategically increasing harvest levels earlier in the year to capture higher prices within our regional markets. Average pine sawtimber price was $41 per ton for the current quarter versus $42 per ton a year ago. Sales of timberland during the fourth quarter of 2005 totaled approximately 26 acres at a gain of $.1 million compared to sales of approximately 393 acres of timberland at a $.5 million gain for the corresponding quarter of 2004. Deltic's Mills segment reported a loss of $.2 million in the fourth quarter of 2005, a decrease of $.6 million when compared to earnings of $.4 million for the corresponding quarter of 2004. Finished lumber average sales price decreased $5 per thousand board feet to $347, and lumber sales volume increased 33 percent to 73.1 million board feet when compared to 2004's fourth quarter. The segment's quarterly performance was adversely affected by higher log costs and temporary operational disruptions from the installation of capital projects. The Company's Real Estate segment earned $5.8 million in the fourth quarter of 2005, which compares to $3.6 million for the same quarter of 2004. Results for 2005 included a sale of 4.72 acres of commercial property averaging $1,011,500 per acre, while 2.17 commercial acres were sold for $295,500 per acre during the prior year's fourth quarter. Residential lot sales for the fourth quarter of 2005 decreased by nine to 91 and the average lot price decreased, due to sales mix sales mix See product mix. , by $16,200 to $70,200 per lot, when compared to the fourth quarter of 2004. 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 $3.7 million for 2005's fourth quarter, which compares to $2.5 million for the corresponding period of 2004. The increase in Corporate operating expense was due to increased incentive plan expense, employee benefits and charitable contributions charitable contribution n. in taxation, a contribution to an organization which is officially created for charitable, religious, educational, scientific, artistic, literary, or other good works. . Deltic's equity in Del-Tin Fiber was a loss of $.1 million for the fourth quarter of 2005 and was unchanged when compared to the fourth quarter of 2004. Capital expenditures were $8 million for 2005's fourth quarter and $33.2 million for the year of 2005. For the corresponding periods of 2004, capital expenditures totaled $7.7 million and $24.2 million, respectively. For the year of 2005, the pine sawtimber harvest level was 581,242 tons compared to 578,224 tons for 2004. Average pine sawtimber price of $45 per ton increased $5 per ton from the prior-year period. Sales of timberland for the year of 2005 totaled approximately 45 acres at a gain of $.3 million compared to sales of approximately 1,150 acres of timberland at a $1.1 million gain for 2004. Sales of finished lumber were up 20 percent, from 229.4 million board feet in 2004 to 276 million in 2005. Finished lumber sales price increased $4 per thousand board feet to $369 for 2005. Residential lot sales for the current year totaled 249 lots at an average price of $78,600 per lot versus 2004's sales of 290 lots at $72,900 per lot. During 2005, 5.7 acres of commercial property were sold for $945,800 per acre, while 4.2 acres were sold for $226,200 per acre in 2004. Deltic's equity in Del-Tin Fiber was virtually zero for 2005, compared to income of $.4 million in 2004. The Company realized a non-cash income tax benefit of $1.7 million during 2005, created by a reversal of the valuation allowance related to accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. state net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. , as it is now more likely than not that the future benefits of these state net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. will be utilized in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. . Regarding the outlook for the first quarter and year of 2006, Mr. Dillon noted, "We currently anticipate the pine sawtimber harvest to be 150,000 to 175,000 tons and 570,000 to 585,000 tons, respectively. Finished lumber production and sales volumes are estimated at 70 to 80 million board feet for the first quarter and 300 to 315 million for the year, but these volumes are dependent upon market conditions. Residential lot sales are projected at 15 to 25 lots and 140 to 175 lots for the first quarter and year of 2006, 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 Thursday, February 9, 2006 at 10:00 a.m. Central Time to discuss fourth quarter and year of 2005 earnings. Interested parties may participate in the call by dialing 1-800-319-9003. 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 11:59 p.m. Central Time on Wednesday, February 22, by dialing 1-888-203-1112 and referencing replay passcode identification number 4916299. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion