Keweenaw Land Association, Limited announces 4Q 2016 net income of $0.18 per share compared to $0.25 for the same period in 2015. Timber sales increased by 2% year-over-year to $3.2 million in 4Q 2016, as the company said in the press release received by Lesprom Network.
In the final three months of 2016, a total of 24,966 cd-eq were harvested compared to 21,423 cd-eq produced in the same period last year.
Keweenaw realized a 33% gross margin during the quarter compared to 41% realized in the same period in 2015 when pulpwood pricing was more favorable.
Gross margin on a per cd-eq basis (EBITDA) was $42 per cd-eq, a 28% decrease from the $58 per cd-eq realized in the same period last year. A $17 drop in the price of pulpwood over last year is the main cause.
Cost of Goods Sold was $84 per unit compared to $85 per unit last year. Demand for pulpwood is expected to remain soft in the first half of 2017.
In the 4Q, Timber Operations Income on an EBITDA basis was $482,616, a 43% decrease from the $841,386 realized in 2015. Timber Operations Income for the full year was $1,729,239, compared to $2,686,387 realized in 2015, down approximately $957,000 or 36%.
Keweenaw Land Association, Limited, a forest products and land management company, owns and manages mineral rights and timberlands in the United States.
