Deltic Announces Third Quarter 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
THIRD QUARTER 2005 2004
Net sales $ 36,827,000 43,255,000
Net income 3,238,000 3,707,000
Earnings per common share
Basic .26 .31
Assuming dilution .26 .30
Average shares outstanding 12,256,730 12,245,895
YEAR-TO-DATE 2005 2004
Net sales $122,242,000 105,063,000
Net income 12,158,000 7,774,000
Earnings per common share
Basic .99 .64
Assuming dilution .99 .64
Average shares outstanding 12,244,406 12,095,899
Deltic Timber Corporation (NYSE: DEL) announced today that net income for the third quarter of 2005 totaled $3.3 million, $.26 a share, which compares to $3.7 million, $.31 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. for the current period was $4.6 million, a $2.2 million decrease from the third quarter of 2004, due primarily to the timing of sales activity within Deltic's Real Estate segment and lower profit margins at the Company's sawmills. Net cash provided by operating activities was $8.2 million for the third quarter of 2005, which compares to $16.6 million a year ago. Pursuant to the Company's August 15, 2005 filing of an amendment to its 2004 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. to amend and restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state the Company's financial statements and other financial information for the years 2002 through 2004 and certain quarters in 2002, 2003 and 2004, financial data for comparable periods of 2004, included within this release, have been restated as necessary. Commenting on the results, President and Chief Executive Officer, Ray C. Dillon Dillon may refer to: People
, stated, "In the face of the devastating dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. effects of the recent hurricanes that struck the Gulf Coast states, Deltic fortunately incurred no direct impact to our timberland holdings or operating facilities. The third quarter earnings of the Company once again extended the trend of consecutive quarterly operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for each of Deltic's three operating segments. Our Woodlands segment continues to benefit from a strong timber market evidenced by a nine percent increase in the average per-ton pine sawtimber price when compared to the third quarter of 2004. The Company's Mills segment maintained its profitability during the third quarter despite facing lower pricing levels and increased raw material costs. We will continue to focus on production efficiencies and manufacturing cost reductions within these facilities. Our Real Estate segment closed a lower level of residential lot sales during the third quarter of 2005, simply due to the scheduling of the current year lot offerings and the inherent time lag between the offering of a neighborhood and the actual closing of sales from that offering. Our 50 percent-owned joint venture, Del-Tin Fiber, also continued its profitability during the third quarter as the facility's management successfully recovered from 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. Looking toward the future growth of Deltic, we are pleased that the Company has secured a new $260 million revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. during the third quarter of 2005. The funds available through this agreement will enable Deltic to take full advantage of value-adding growth opportunities as they present themselves." The Woodlands segment earned $6 million in the third quarter of 2005, an increase of $1 million when compared to $5 million for the same period of 2004. The Company's pine sawtimber harvest increased from 150,415 tons in the prior-year quarter to 159,512 tons in 2005's third quarter. Average pine sawtimber price was $47 per ton for the current quarter versus $43 per ton a year ago. Deltic's Mills segment earned $1.7 million in the third quarter of 2005, a decrease of $1.3 million when compared to the corresponding quarter of 2004. 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 average sales price decreased $15 per thousand board feet to $374, and lumber sales volume increased two percent to 64.9 million board feet when compared to 2004's third quarter. The Company's Real Estate segment earned $.4 million in the third quarter of 2005, which compares to $3.1 million for the same quarter of 2004. Residential lot sales for the third quarter of 2005 decreased from 108 lots to 31 when compared to a year ago, however, the average lot price increased by $18,000, due to sales mix sales mix See product mix. , to $82,600 per lot. No commercial sales occurred in the third quarter of 2005 or 2004; however, 2004's third quarter benefited from the sale of a 94-acre tract of undeveloped real estate property, resulting in a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of $1.7 million. 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 $3.1 million for 2005's third quarter, which compares to $3.8 million for the corresponding quarter of 2004. Deltic's equity in Del-Tin Fiber was income of $.1 million for the third quarter of 2005, a decrease of $.4 million when compared to income of $.5 million a year ago. The Company realized virtually no income tax expense during the third quarter of 2005 due to an income tax benefit created primarily by the impact of a reversal of the estimated 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. . Capital expenditures were $10.8 million for 2005's third quarter and $25.2 million for the nine months ended September 30, 2005. Capital expenditures were $6.1 million for 2004's third quarter and $16.5 million for the nine months ended September 30, 2004. For the first nine months of 2005, net income totaled $12.2 million, $.99 a share. Financial results for the nine months ended September 30, 2004, were net income of $7.8 million, $.64 a share. Net cash provided by operating activities was $28.9 million for the 2005 period compared to $33.6 million a year ago. Pine sawtimber harvest level for the nine months ended September 30, 2005, was 494,554 tons, a nine percent increase when compared to 452,619 tons during the same period of 2004. Average pine sawtimber price of $45 per ton increased $5 per ton from the prior-year period. Finished lumber average sales price increased $8, or two percent, from $369 per thousand board feet to $377. Lumber sales increased 28.4 million board feet to 202.9 million. Residential lot sales for the first nine months of 2005 totaled 158 lots at an average price of $83,500, which compares to 190 lots at $65,800 per lot for the corresponding period of 2004. Results for the first nine months of 2005 included a sale of .99 acres of commercial property averaging $632,600 per acre, while 2.03 commercial acres were sold for $152,200 per acre during the prior-year period. Sales of undeveloped real estate property during the first nine months of 2005 were 6.7 acres at an average price of $64,000, which compares to 94 acres at $27,700 per acre for the corresponding period of 2004. Regarding the outlook for the fourth quarter and for the year of 2005, Mr. Dillon noted, "We currently anticipate the pine sawtimber harvest to be 65,000 to 80,000 tons and 560,000 to 575,000 tons, respectively. Significant sales of timberland identified to have a higher and better use or to be non-strategic are not anticipated, but may reach 100 acres for the year. Finished lumber production and sales are estimated at 75 to 85 million board feet for the fourth quarter and 275 to 285 million for the year. Residential lot sales are projected at 105 to 125 lots and 260 to 280 lots for the fourth quarter and year of 2005, 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 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 Wednesday, October 19, 2005, at 10:00 a.m. Central Time to discuss third quarter 2005 earnings. Interested parties may participate in the call by dialing 1-800-930-1344. 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, November 2, by dialing 1-888-203-1112 and referencing replay passcode identification number 9788474. |
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