Fresh Off Merger, Deltic Reports 3Q Earnings


Fresh Off Merger, Deltic Reports 3Q Earnings

Deltic Timber Corp., the El Dorado natural resources company that announced its merger with Potlatch Corp. on Monday morning, reported preliminary third-quarter financial results on Monday evening, noting higher sales and income over the same quarter last year.

The company, which is merging with Potlatch of Spokane, Washington, in an all-stock transaction that gave Deltic investors 1.8 Potlatch shares for each share of Deltic, a 7 percent premium, had $2.5 million in third-quarter profits compared with $1.5 million a year ago. Net sales were $61.6 million, compared with $53.6 million in 2016. Earnings were 20 cents per diluted share; they had been 12 cents last year.

The company attributed the improved results to increased operating income in its woodlands and real estate segments, as well as a reduction in general and administrative expenses. Manufacturing results, which were down from the same period a year ago, were hampered by planned maintenance at Deltic’s fiberboard manufacturing operation in El Dorado, where press chains and a press belt had to be replaced. The company also repaid $2 million in debt on its revolving credit facility during the quarter.

The company’s real estate segment sold more residential lots in 2017 compared with last year, and a Deltic news release said additional lot offerings are planned in the fourth quarter in the Wildwood subdivision in Little Rock, as well as in three neighborhoods in Chenal Valley.

The release included no remarks from CEO John Enlow, who will coordinate the company’s integration with Potlatch, resulting in a $3.3 billion corporation called PotlatchDeltic, which will be based in Spokane but will have its southern operational headquarters at Deltic’s home base in El Dorado. Enlow will become vice chairman of the merged company, with the deal expected to close in the first half of next year.