For the year of 2013, net income was $26.2 million, $2.06 a share, compared to $9.2 million, $.73 a share, for the twelve months ended December 31, 2012. Net cash provided by operating activities was $8.1 million for the fourth quarter of 2013, compared to $3.1 million for the same period a year ago. Cash provided by operating activities for the year of 2013 was $42.1 million compared to $24.1 million for the year of 2012.
Commenting on the results, President and CEO, Ray C. Dillon, stated, “Led by our Manufacturing segment, which was expanded during the year with the acquisition of the remaining ownership interest of Del-Tin Fiber, Deltic’s operations established a new record for financial performance in 2013. The benefits of the Company’s strategy of owning vertically integrated assets and managing them intensively to achieve growing results were very evident.
“With the increased earnings and their resulting cash flows, we had sufficient working capital available to use during 2013 to accomplish a $33.6 million capital program to further improve our operations; pay $5.2 million to acquire the remaining ownership interest of Del-Tin Fiber; pay increased dividends, for a total of $5.1 million distributed to our shareholders; repurchase $2.2 million of the Company’s common stock; and still repay $2 million of the debt outstanding under Deltic’s revolving credit facility.”
For the year of 2013, the pine sawtimber harvest level was 605,361 tons compared to 606,879 tons harvested in 2012, while the average pine sawtimber sales price was $22 per ton for both years.
The pine pulpwood harvest volume was 340,083 tons in 2013 compared to 474,834 tons in 2012, with no change in the average sales price of $8 per ton.
Sales of non-strategic timberland for the year of 2013 totaled 1,677 acres with an average sales price of $1,500 per acre, while in 2012, the Company sold 1,776 acres with a per-acre sales price of $1,600.
Regarding the outlook for the 1Q and year of 2014, Mr. Dillon stated, “We currently anticipate the pine sawtimber harvest to be 175,000 to 185,000 tons and 575,000 to 625,000 tons, respectively, depending on weather conditions in Deltic’s operating area. Finished lumber sales are estimated to be 65 to 75 million board feet for the first quarter and 270 to 290 million board feet for the year. MDF sales volumes for the 1Q and year of 2014 are forecasted to be 25 to 35 million square feet and 110 to 130 million square feet, respectively. Actual sales volumes for both finished lumber and MDF are dependent upon market conditions. Residential lot sales are projected at 15 to 20 lots and 60 to 80 lots for the 1Q and year of 2014, respectively. Commercial acreage within Chenal Valley continues to receive interest, but due to the volatile nature of commercial real estate transactions and significant number of factors involved, it is difficult to anticipate future closings.”
Deltic Timber Corporation is a natural resources company focused on the ownership and management of timberland.
