Deltic Timber Corporation (DEL) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $3.14 million, or $ 0.26 a share in the quarter, against a net loss of $0.13 million, or $0.01 a share in the last year period.
Revenue during the quarter grew 17.83 percent to $58.49 million from $49.64 million in the previous year period. Gross margin for the quarter expanded 1204 basis points over the previous year period to 34.30 percent. Total expenses were 90.37 percent of quarterly revenues, down from 96.91 percent for the same period last year. This has led to an improvement of 654 basis points in operating margin to 9.63 percent.
Operating income for the quarter was $5.63 million, compared with $1.54 million in the previous year period.
"With Deltic's well positioned asset base and exceptional team, we achieved another quarter of solid operating and financial performance," commented Mark Leland, Deltic's Interim president and chief executive officer. "In addition, we are very pleased to have separately announced today that John Enlow has been appointed president and chief executive officer of Deltic, effective March 8. John has more than 25 years of experience in the natural resources industry and we are confident he brings valuable expertise and leadership skills to Deltic."
Operating cash flow improves significantly
Deltic Timber Corporation has generated cash of $43.59 million from operating activities during the year, up 46.97 percent or $13.93 million, when compared with the last year.
The company has spent $41.31 million cash to meet investing activities during the year as against cash outgo of $27.88 million in the last year. It has incurred net capital expenditure of $36.97 million on net basis during the year, up 34.12 percent or $9.41 million from year ago.
The company has spent $1.94 million cash to carry out financing activities during the year as against cash inflow of $0.89 million in the last year period.
Cash and cash equivalents stood at $5.77 million as on Dec. 31, 2016, up 6.34 percent or $0.34 million from $5.43 million on Dec. 31, 2015.
Working capital turns positive
Working capital of Deltic Timber Corporation has turned positive to $10.18 million on Dec. 31, 2016 from negative $27.75 million on Dec. 31, 2015. Current ratio was at 1.51 as on Dec. 31, 2016, up from 0.53 on Dec. 31, 2015.
Debt moves up
Deltic Timber Corporation has witnessed an increase in total debt over the last one year. It stood at $240.84 million as on Dec. 31, 2016, up 7.64 percent or $17.09 million from $223.75 million on Dec. 31, 2015. Total debt was 41.19 percent of total assets as on Dec. 31, 2016, compared with 41.50 percent on Dec. 31, 2015. Debt to equity ratio was at 0.96 as on Dec. 31, 2016, up from 0.88 as on Dec. 31, 2015. Interest coverage ratio improved to 2.49 for the quarter from 0.66 for the same period last year.
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