Deltic Reports Record Profit of $26.2M in 2013

Deltic Timber Corp. of El Dorado reported Wednesday that it had net income of $2.3 million, or 18 cents a share, during the fourth quarter of 2013, compared with net income of $2.4 million, or 19 cents a share for fourth-quarter 2012.

Net income for 2013, however, was robust, at $26.2 million, or $2.06 a share, compared with $9.2 million, or 73 cents a share, for 2012. The company called the performance for the year a record.

"Led by our Manufacturing segment, which was expanded during the year with the acquisition of the remaining ownership interest of Del-Tin Fiber, Deltic's operations established a new record for financial performance in 2013," said Deltic President and CEO Ray Dillon.

He went on to cite the benefits to Deltic of "owning vertically integrated assets and managing them intensively to achieve growing results."

The publicly traded timber and real estate company (NYSE: DEL) blamed the slight drop for the quarter on a lower pine pulpwood harvest and a decline in sales of hardwood bottomland acreage. However, Deltic said, this was largely offset by the margin on higher sales of residential lots and lower general and administrative expenses.

The increased earnings and cash flow allowed the company to implement a $33.6 million capital program to improve operations, pay $5.2 million to acquire the rest of Del-Tin Fiber, pay increased dividends, repurchase $2.2 million of the company's common stock and still repay $2 million of debt, Dillon said.

Net sales in the fourth quarter totaled $48.4 million, compared with $36.7 million in fourth-quarter 2012. 

Net sales for 2013 totaled $199.7 million, compared with $140.9 million for 2012.