Revenue during the quarter grew 5.12 percent to $53.22 million from $50.62 million in the previous year period. Gross margin for the quarter expanded 222 basis points over the previous year period to 30.10 percent. Total expenses were 92.49 percent of quarterly revenues, down from 93.65 percent for the same period last year. This has led to an improvement of 116 basis points in operating margin to 7.51 percent.

Operating income for the quarter was $4 million, compared with $3.22 million in the previous year period.

"Deltic continues to benefit from its well-positioned asset base and solid team, which have allowed the Company to improve financial performance over the prior year’s first quarter," commented John D. Enlow, Deltic’s president and chief executive officer. "Our average sales price for lumber sold increased 10 percent, along with slightly higher sales volumes compared to the first quarter a year ago. Stronger lumber demand and uncertainty over the Canada-U.S. trade dispute and duties favorably impacted our markets. In addition, improved operating metrics at our MDF plant lowered per-unit costs for MDF when compared to last year’s first quarter. As discussed last quarter, we anticipate the facility’s near-term performance will be negatively impacted by worn press chains, which are scheduled to be replaced in the third quarter of this year. Currently in our Real Estate segment, we are developing new residential lot offerings in our Chenal Valley and Wildwood developments to fulfill demand, and expect to have a successful lot offering in the Wildwood development during the second quarter of 2017."

The company has spent $7.55 million cash to meet investing activities during the quarter as against cash outgo of $10.70 million in the last year period.

Cash flow from financing activities was $4.18 million for the quarter, down 40.28 percent or $2.82 million, when compared with the last year period.

Cash and cash equivalents stood at $3.74 million as on Mar. 31, 2017, down 17.02 percent or $0.77 million from $4.51 million on Mar. 31, 2016.

Working capital turns positive
Working capital of Deltic Timber Corporation has turned positive to $12.90 million on Mar. 31, 2017 from negative $21.97 million on Mar. 31, 2016. Current ratio was at 1.75 as on Mar. 31, 2017, up from 0.61 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 25 days for the last year period. Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 15 days for the quarter compared with 29 days for the previous year period. At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.