For the first six months of 2014, net income was $10.2 million, $.80 a share, compared to $18 million, inclusive of non-recurring gains of $5.7 million, or $1.42 a share for the first six months of 2013. Net cash provided by operating activities was $14.8 million for the first half of 2014 compared to $20.3 million for the same period of 2013.
Commenting on the results, President and CEO, Ray C. Dillon, stated, “As the harsh winter conditions that existed during the 1Q subsided, new home construction activity improved. With this, Deltic benefitted from increased sales volumes for both lumber and medium density fiberboard compared to the 2Q 2013. During the second quarter, we also began to see prices for pine sawtimber increase, resulting in improved operating income produced from our core Woodlands segment. While these rising stumpage prices resulted in increased cost for the logs used as raw material by our sawmills, the Company’s Manufacturing segment continued to generate solid financial results.
“Our Real Estate segment accomplished the sale of a 1.72-acre commercial site in Chenal Valley during the quarter for $500,900 per acre, and we are seeing interest in other commercial properties from additional potential buyers. During the quarter, we also accomplished an acquisition of 7,140 acres of timberland in the Ola Region located approximately 60 miles south of the Ola Mill. When combined with the 64,443-acres acquisition which is approximately 35 miles south of the Ola Mill that was accomplished in the first quarter, we have now acquired 71,583 acres in the Ola Region this year.”
For the first six months of 2014, the pine sawtimber harvest was 380,285 tons compared to 340,966 tons during the same period of 2013, while the average pine sawtimber sales price of $24 per ton increased $1 per ton from the prior-year period.
The pine pulpwood harvest for the first six months of 2014 was 232,716 tons, at an average price of $8 per ton, compared to 177,930 tons at an average price of $9 per ton in the first six months of 2013.
Deltic Timber Corporation is a natural resources company focused on the efficient and environmentally responsible management of its land holdings. The Company owns approximately 530,200 acres of timberland, operates two sawmills and a medium density fiberboard plant, and is engaged in real estate development.
