Keweenaw Land Association, Limited announces 3Q 2016 net income of $0.18 per share compared to net income of $0.44 for the same period in 2015. Timber sales decreased by 23% year-over-year to $2.8 million in 3Q 2016.
In the 3Q 2016, a total of 21,278 cd-eq were harvested, down 16% from the 25,373 cd-eq in 2015.
The company sold logs totaling $2.7 million compared to $3.6 million in 2015, a 23% decrease. Gross margin was also lower, falling to 32% compared to 40% in 2015.
Pricing for both sawtimber and pulpwood continue to be lower due to higher mill inventory leading to less demand.
Sawtimber realization for the quarter was $450 per mbf compared to $463 in 2015, down 3%. Pulpwood pricing was $103 per cd-eq, down approximately 10% from the $115 per cord realized in the 3Q last year. On a year-to-date comparison, the overall sawtimber realization was $436 per mbf, approximately the same as the $437 per mbf in 2015.
Gross Margin on a per cd-eq basis (EBITDA) was $41 per cd-eq for the quarter, down $16 per unit, compared to $57 per cd-eq in the same period last year. Cost of Goods Sold for the period was at $88 per unit compared to $86 last year, primarily driven by increased production costs associated with the wet weather and the storms affecting the western Upper Peninsula of Michigan and Northern Wisconsin.
Keweenaw Land Association, Limited, a forest products and land management company, owns and manages mineral rights and timberlands in the United States.
