The decrease was mainly due to weak markets for wood products, combined with decreased oil and gas-related income and increased expenses for the cost of fee timber harvested and interest expense, due to borrowings used to fund capital projects and share repurchases.
Partially offsetting the impact of these unfavorable items was a benefit due to the decrease in Deltic’s effective income tax rate for the current year’s first quarter as a result of the Company’s income from timber harvesting activities being taxed at a capital gains tax rate for 2016 provided by the TREE Act.
Net cash provided by the Company’s operating activities for the 1Q 2016 was $2.8 million, compared to $9.2 million a year ago.
Deltic Timber Corporation is a natural resources company focused on the efficient and environmentally responsible management of its land holdings.
