Pope Resources reported net income of $199,000, or $0.04 per ownership unit, on consolidated revenue of $27.9 million and look-through revenue of $13.4 million, for 2Q 2018. This compares to net income attributable to unitholders of $158,000, or $0.03per ownership unit, on consolidated revenue of $15.9 million, and look-through revenue of $10.5 million, for 2Q 2017, as the company said in the press release received by Lesprom Network.
Q2 2018 results include a $2.9 million increase in the environmental remediation liability for the former millsite at Port Gamble, Washington. Excluding this charge, adjusted net income attributable to unitholders for 2Q 2018 was $3.1 million, or $0.71 per ownership unit.
Cash provided by operations during 2Q 2018 was $7.7 million on a consolidated basis and $3.3 million on a look-through basis, compared to cash provided by operations of $2.9 million on a consolidated basis and $1.2 million on a look-through basis during 2Q 2017.
"Our 2Q results reflect the decision to pull Partnership volume forward to the first quarter when log prices were particularly strong and to backload Partnership volume toward the latter half of the year when we expect fire closures and subsequent winter weather to pinch supply, and thus boost prices," said Tom Ringo, President and CEO. "In addition, while the Q2 addition of $2.9 million to our Port Gamble environmental remediation accrual is noteworthy, we believe the worst is behind us at Port Gamble. Long-term prospects for the Partnership are bright, with the expansion of our high-quality Pacific Northwest timberland portfolio generating a growing stream of cash flow. We are confident that our strategies are building sustainable value for our unitholders."
Pope Resources, a publicly traded limited partnership, and its subsidiaries Olympic Resource Management and Olympic Property Group, own and manage 120,000 acres of timberland and 2,100 acres of development property in Washington. In addition, Pope Resources co-invests in and consolidates three private equity timber funds that own 124,000 acres of timberland in Washington, Oregon, and California.
