Deltic Timber Corp. (DEL) Sees Sharp Rise in Q2 EPS, Sales

Deltic Timber Corp. (NYSE: DEL) reported Q2 EPS of $0.35, versus $0.07 reported last year. Revenue for the quarter came in at $56.7 million, versus $45.7 million reported last year.

Commenting on the results, President and Chief Executive Officer, Ray C. Dillon, stated, “The Company’s financial performance for the second quarter is indicative of the potential income and cash flow that Deltic’s excellent group of operating assets can produce, even when markets are only marginally favorable. In the Woodlands segment, we continue to achieve a sustainable harvest volume of our pine sawtimber; however, pine pulpwood markets remain weak. Our investment in a new small-log line at our Ola Mill, that will be operational in October, will allow us to better utilize smallwood from our forest-maintenance thinning activity in our sawmill. In the Manufacturing segment, we saw an improvement in the lumber market during the quarter, allowing us to run additional hours and sell more lumber at a higher average sales price, while maintaining our market share and balancing supply with demand. Both operating and financial performance at our MDF plant continue to improve, and the plant generated increased operating income and cash flow from the first quarter of 2016. In our Real Estate segment, we closed the sale of several of the lots that were offered during the first quarter of 2016 in a neighborhood in our Chenal Valley development, resulting in sales of 22 lots during the second quarter at an attractive average sales price per lot. We also closed on the sale of a 10.8-acre commercial real estate site during the quarter, indicating the increased interest in our mix of properties in Chenal Valley that are zoned for commercial development.

“Deltic’s financial results also continue to benefit from the capital gains treatment for income from our timber harvesting activity due to a provision of the TREE Act that applies to C-corporations, such as Deltic, thus reducing the Company’s effective income tax rate for 2016. We are also benefiting from the bonus depreciation deduction that is available to us due to the capital investments we are making in our manufacturing facilities.”

For earnings history and earnings-related data on Deltic Timber Corp. (DEL) click here.

You May Also Be Interested In

• Tesla to launch Cybercab in Austin this month - report
• Fabrinet (FN) Tops Q4 EPS by 29c, Beats on Revenue; Offers Guidance
• Enovix Corporation (ENVX) PT Lowered to $5 at BofA Securities