Deltic Timber’s buyout of a stake in Del-Tin Fiber continues to pay dividends.
The El Dorado-based timber and real estate firm posted third quarter profits of $5.8 million compared to $3.2 million one year ago. Revenues rose from $36.5 million in last year’s third quarter to $56.5 million in the current quarterly report.
The 80% increase in net income was largely attributed to Deltic’s manufacturing segment.
Earlier this year, Deltic acquired the balance of the ownership interest in Del-Tin Fiber from its former joint venture partner and has since consolidated the operating results of Del-Tin Fiber into the company’s manufacturing segment.
“Deltic’s commitment to a vertical integration strategy, consisting of owning pine timberland and operating efficient wood products manufacturing facilities, continues to serve the company well in a balanced and profitable way,” said Deltic Timber CEO Ray Dillon. “This was evidenced by the financial performance of the company for the quarter. The additional cash flow from operations allowed us to fund our capital program, pay the increased quarterly dividend, repurchase $2.2 million of our stock, and repay $6 million of debt during the third quarter.”
Deltic said its real estate division, which includes the prestigious west Little Rock Chenal Valley development, saw a slight decline in residential lot sales during the quarter. The company said it was offering 25 new lots for development in Chenal Valley and anticipated all of them being under contract within the next 120 days.
There were no sales of commercial real estate acreage in the third quarter of either year.
Deltic Timber (NYSE: DEL) shares closed trading on Wednesday at $66.91. The company’s stock has traded between $57.29-$73.97 per share during the past year.