POULSBO, Wash., Aug. 4,
2017 /PRNewswire/ -- Pope Resources (NASDAQ:POPE) reported net
income attributable to unitholders of $158,000, or $0.03
per ownership unit, on revenue of $15.9
million for the quarter ended June 30, 2017. This
compares to net income attributable to unitholders of $436,000, or $0.09
per ownership unit, on revenue of $12.7
million for the second quarter of 2016.
Net income attributable to unitholders for the six months ended
June 30, 2017 totaled $3.5
million, or $0.80 per
ownership unit, on revenue of $33.2
million. For the six months ended June 30, 2016 the
Partnership reported net loss attributable to unitholders of
$599,000, or $0.15 per ownership unit, on revenue of
$23.8 million.
Cash provided by operations for the quarter ended June 30,
2017 was $2.9 million, compared to
cash used in operations of $2.3
million for the second quarter of 2016. For the six months
ended June 30, 2017, cash provided by operations was
$5.6 million, compared to cash used
in operations of $4.3 million in the
corresponding period of 2016.
"Log markets in our operating regions are strong due to a
multitude of demand and supply factors," said Tom Ringo, President and CEO. "Continued
improvement in housing starts is supporting domestic log prices and
export demand is generally adding pricing tension to our markets.
Furthermore, a new sawmill in our Hood Canal wood basket has added
a second production line, creating welcome incremental demand for
our logs. The recent fire situation in British Columbia is starting to crimp lumber
supply coming to the U.S., further tilting lumber pricing drivers
in favor of regional domestic mills, and derivatively pushing up
demand for our logs. On the supply side, reduced harvest volumes
and sales from our competitors have put upward pressure on our log
prices."
"Whereas our 2016 harvest activity was heavily weighted toward
the back end of the year, in 2017 we will have a fairly balanced
spreading of volume across the quarters. As such, the first half of
this year compares quite favorably with last year given the
significant year-to-date harvest volume coupled with the higher log
prices we are seeing."
Mr. Ringo concluded, "The Puget Sound housing market is quite
strong and our Real Estate segment enjoys some of the ripple effect
of that phenomenon, especially in our Gig
Harbor project where we have been constructing a significant
number of single-family lots to close in the second half of this
year."
Second quarter highlights
- Harvest volume was 23.3 million board feet (MMBF) in Q2
2017 compared to 20.9 MMBF in Q2 2016, an 11% increase.
Harvest volume for the first six months of 2017 was 50.6 MMBF
compared to 36.6 MMBF for the corresponding period of 2016, a 38%
increase. These harvest volume figures do not include timber deed
sales, sold by ORM Timber Fund III, of 2.1 MMBF and 2.4 MMBF for
the quarter and six months ended June 30, 2017, respectively.
The harvest volume and log price realization metrics cited below
also exclude these timber deed sales, except as noted
otherwise.
- The average realized log price was $616 per thousand board feet (MBF) in Q2 2017, a
9% increase compared to $563 per MBF
in Q2 2016. For the first six months of 2017, the average realized
log price was $605 per MBF compared
to $575 per MBF for the corresponding
period of 2016, a 5% increase.
- As a percentage of total harvest, volume sold to domestic
markets in Q2 2017 decreased to 59% from 66% in Q2 2016, while the
mix of volume sold to export markets increased to 21% in Q2 2017
from 15% in Q2 2016. For the first six months of 2017, the relative
percentages of volume sold to domestic and export markets were 59%
and 22%, respectively, compared to 63% and 17%, respectively, in
the corresponding period of 2016. Hardwood and pulpwood log sales
make up the balance of harvest volume.
- In June 2017, we modified a
credit facility to increase the Partnership's borrowing capacity
under that particular facility from $21.0
million to $31.0 million. We
also worked with the lender to amend this facility's structure.
Between now and December 31, 2019, it
will operate as a revolving line of credit and thereafter it will
convert to a term loan with multiple tranches that have an ultimate
maturity in July 2027.
- During the quarter, the Partnership repurchased 744 units at an
average price of $76.52 per unit
under our unit repurchase plan, leaving $1.1 million remaining under the plan through
June 2018.
Second quarter operating results
Fee
Timber:
Fee Timber
operating income for Q2 2017 was $4.6
million compared to $3.0
million for Q2 2016, a 53% increase. The increase in
operating income was driven primarily by a 22% increase in harvest
volume (including timber deed sales), and a 9% increase in average
realized log prices, which was partially offset by a 22% increase
in cost of sales.
Fee Timber operating income for
the first six months of 2017 was $21.2
million compared to $5.5
million in the corresponding period 2016, due to 2017
results including a $12.5 million
gain on the sale of a 6,500-acre tree farm from Fund II, compared
to 2016 results which include a $226,000 gain on sale of 205 acres of Fund
timberland. Excluding these timberland sales, Fee Timber operating income was $8.7 million in 2017 and $5.3 million in 2016, a 64% increase. This
increase resulted primarily from a 45% increase in harvest volume
(including timber deed sales), and 5% higher average realized log
prices in 2017. These factors were offset partially by a 49%
increase in cost of sales.
Timberland Investment Management:
Operating losses
incurred by this segment for Q2 2017 and Q2 2016 totaled
$751,000 and $603,000, respectively, after eliminating revenue
earned from managing the Funds of $817,000 and $788,000 for Q2 2017 and Q2 2016, respectively.
The increase in operating loss is primarily attributable to
professional fees associated with the late 2016 launch of our
fourth timber fund, as well as additional personnel costs to
acquire Pacific Northwest timberlands with this additional
capital.
Operating losses incurred by this segment for first six months
of 2017 and 2016 totaled $1.7 million
and $1.3 million, respectively, after
eliminating management fees earned from the Funds of $1.7 million and $1.6
million for the first six months of 2017 and 2016,
respectively.
Real Estate:
Our Real Estate segment posted operating
losses of $1.5 million and
$1.2 million for Q2 2017 and Q2 2016,
respectively. The increase in operating losses resulted from a
$400,000 rise in operating expenses
due primarily to legal and professional fees in connection with
planning and development for a number of properties plus the
pursuit of potential insurance recoveries for our Port Gamble environmental remediation.
For the first six months of 2017, the Real Estate segment
reported an operating loss of $2.7
million, having sold only one 10-acre undeveloped
residential lot. This compares to an operating loss in the
corresponding period of 2016 of $2.2
million, during which we sold nine residential lots from
Harbor Hill for $1.2 million. In
addition, operating expenses have increased by $500,000 due primarily to professional fees as
described above.
General & Administrative (G&A):
G&A
expenses were $1.4 million for Q2
2017 and $1.1 million for Q2 2016
with the increase primarily due to higher incentive compensation
accruals driven by this year's improvement in our unit trading
price.
Outlook
We expect our total 2017 harvest volume to be between 112 and
116 MMBF, including timber deed sales. In our Real Estate segment,
we expect to close on the sale of up to 93 single-family lots from
our Harbor Hill project, the majority of which we expect to occur
in the fourth quarter, as well as a number of other potential land
and conservation easement sales.
The financial schedules accompanying this earnings release
provide detail on individual segment results and operating
statistics.
About Pope Resources
Pope Resources, a publicly traded limited partnership, and its
subsidiaries Olympic Resource Management and Olympic Property
Group, own or manage 210,000 acres of timberland and development
property in Washington,
Oregon, and California. These acres include three private
equity timber funds that we manage, co-invest in, and consolidate
in our financial statements and from which we earn management fees.
These funds provide an efficient means of investing our own capital
in Pacific Northwest timberland and earning fee revenue from
managing the funds for third-party investors. The Partnership and
its predecessor companies have owned and managed timberlands and
development properties for over 160 years. Additional information
on the company can be found at www.poperesources.com. The contents
of our website are not incorporated into this release or into our
filings with the Securities and Exchange Commission.
Forward Looking Statements
This press release contains a number of projections and
statements about our expected financial condition, operating
results, business plans and objectives, and about management's
plans for future operations and strategies. These statements
reflect management's estimates based on current goals and its
expectations about future developments. Because these statements
describe our goals, objectives, and anticipated performance, they
are inherently uncertain, and some or all of these statements may
not come to pass. Accordingly, they should not be interpreted as
promises of future management actions or financial performance. Our
future actions and actual performance will vary from current
expectations and under various circumstances the results of these
variations may be material and adverse. Among those
forward-looking statements contained in this report are statements
about management's expectations for future log prices, harvest
volumes and markets, and statements about our expectations for
future sales in our Real Estate segment. Readers, however,
should note that all statements other than expressions of
historical fact are forward-looking in nature. Some of the factors
that may cause actual operating results and financial condition to
fall short of expectations, or that may cause us to deviate from
our current plans, include our ability to accurately predict
fluctuations in log markets domestically and internationally, and
to adjust our harvest volumes in a timely and appropriate manner;
political sensitivities and events, including the reactions of
foreign governments and international treaty organizations and
similar bodies, that may affect the cost of competing products and
demand for our products; our ability to anticipate and manage
interest rate risk as it affects our borrowing costs; fluctuations
in interest rates that affect the U.S. housing market and related
demand for our products from that market; our ability to estimate
the cost of ongoing and changing environmental remediation
obligations, including our ability to anticipate and address the
political and regulatory climate that impacts these obligations;
our ability to consummate various pending and anticipated real
estate transactions on the terms management expects; housing market
conditions that affect demand for both our forest products and our
real estate offerings; our ability to manage our timber funds and
their assets in a manner that our investors consider acceptable,
and to raise additional capital or establish new funds on terms
that are advantageous to the Partnership; conditions in the housing
construction and wood-products markets, both domestically and
globally, that affect demand for our products; the effects of
competition, particularly by larger and better-financed
competitors; fluctuations in foreign currency exchange rates that
affect both competition for sales of our products and our
customers' demand for them; the effect of current and potential
treaties and other international agreements that affect the supply
of logs in the United States and
demand for logs overseas; conditions affecting credit markets as
they affect the availability of capital and costs of borrowing for
us, and the related impacts on purchasers of forest products and
development properties; labor, equipment and transportation costs
that affect our net income; our ability to anticipate and mitigate
potential impacts of our operations on adjacent properties; the
impacts of natural disasters on our timberlands and on surrounding
areas; and our ability to discover and to accurately estimate other
liabilities associated with our assets. Other factors are set forth
in that part of our Quarterly Report on Form 10-Q entitled "Risk
Factors," and in our other filings with the Securities and Exchange
Commission from time to time.
Forward-looking statements in this release are made only as of
the date shown above, and we cannot undertake to update these
statements.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(all amounts in
$000's, except per unit amounts)
|
|
|
|
|
|
|
|
|
|
Quarter ended June
30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
15,891
|
|
|
$
|
12,713
|
|
|
$
|
33,236
|
|
|
$
|
23,782
|
|
Cost of
sales
|
(8,979)
|
|
|
(7,471)
|
|
|
(20,180)
|
|
|
(14,611)
|
|
Operating
expenses
|
(5,919)
|
|
|
(5,100)
|
|
|
(11,882)
|
|
|
(10,077)
|
|
Gain on sale of
timberland
|
—
|
|
|
—
|
|
|
12,503
|
|
|
226
|
|
Operating income
(loss)
|
993
|
|
|
142
|
|
|
13,677
|
|
|
(680)
|
|
Interest expense,
net
|
(1,117)
|
|
|
(747)
|
|
|
(2,127)
|
|
|
(1,405)
|
|
Income (loss) before
income taxes
|
(124)
|
|
|
(605)
|
|
|
11,550
|
|
|
(2,085)
|
|
Income tax
expense
|
(3)
|
|
|
—
|
|
|
(59)
|
|
|
(50)
|
|
Net income
(loss)
|
(127)
|
|
|
(605)
|
|
|
11,491
|
|
|
(2,135)
|
|
Net (income) loss
attributable to noncontrolling interests
|
285
|
|
|
1,041
|
|
|
(7,963)
|
|
|
1,536
|
|
Net income (loss)
attributable to Pope Resources' unitholders
|
$
|
158
|
|
|
$
|
436
|
|
|
$
|
3,528
|
|
|
$
|
(599)
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average units outstanding
|
4,327
|
|
|
4,313
|
|
|
4,326
|
|
|
4,312
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per unit
|
$
|
0.03
|
|
|
$
|
0.09
|
|
|
$
|
0.80
|
|
|
$
|
(0.15)
|
|
CONDENSED
CONSOLIDATING BALANCE SHEETS
(all amounts in
$000's)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
Assets:
|
Pope
|
|
ORM Timber
Funds
|
|
Consolidating
Entries
|
|
Consolidated
|
|
|
Cash
|
$
|
1,627
|
|
|
$
|
3,245
|
|
|
$
|
—
|
|
|
$
|
4,872
|
|
|
$
|
2,937
|
|
Land and timber held
for sale
|
9,416
|
|
|
—
|
|
|
|
|
9,416
|
|
|
20,503
|
|
Other current
assets
|
3,229
|
|
|
1,569
|
|
|
(646)
|
|
|
4,152
|
|
|
8,766
|
|
Total current
assets
|
14,272
|
|
|
4,814
|
|
|
(646)
|
|
|
18,440
|
|
|
32,206
|
|
Timber and roads,
net
|
69,612
|
|
|
206,992
|
|
|
|
|
276,604
|
|
|
279,793
|
|
Timberland
|
19,026
|
|
|
36,126
|
|
|
|
|
55,152
|
|
|
54,369
|
|
Land held for
development
|
25,530
|
|
|
|
|
|
|
25,530
|
|
|
24,390
|
|
Buildings and
equipment, net
|
5,440
|
|
|
12
|
|
|
|
|
5,452
|
|
|
5,628
|
|
Investment in ORM
Timber Funds
|
14,235
|
|
|
|
|
(14,235)
|
|
|
—
|
|
|
—
|
|
Deferred tax and
other assets
|
943
|
|
|
|
|
|
|
943
|
|
|
2,664
|
|
Total assets
|
$
|
149,058
|
|
|
$
|
247,944
|
|
|
$
|
(14,881)
|
|
|
$
|
382,121
|
|
|
$
|
399,050
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
$
|
4,740
|
|
|
$
|
2,248
|
|
|
$
|
(646)
|
|
|
$
|
6,342
|
|
|
$
|
7,279
|
|
Current portion of
long-term debt
|
121
|
|
|
|
|
|
|
121
|
|
|
5,119
|
|
Current portion of
environmental remediation
|
4,569
|
|
|
|
|
|
|
4,569
|
|
|
8,650
|
|
Total current
liabilities
|
9,430
|
|
|
2,248
|
|
|
(646)
|
|
|
11,032
|
|
|
21,048
|
|
Long-term
debt
|
78,411
|
|
|
57,279
|
|
|
|
|
135,690
|
|
|
125,291
|
|
Environmental
remediation and other long-term liabilities
|
4,038
|
|
|
|
|
|
|
4,038
|
|
|
4,247
|
|
Total
liabilities
|
91,879
|
|
|
59,527
|
|
|
(646)
|
|
|
150,760
|
|
|
150,586
|
|
Partners'
capital
|
57,179
|
|
|
188,417
|
|
|
(188,417)
|
|
|
57,179
|
|
|
59,133
|
|
Noncontrolling
interests
|
|
|
|
|
174,182
|
|
|
174,182
|
|
|
189,331
|
|
Total
liabilities and equity
|
$
|
149,058
|
|
|
$
|
247,944
|
|
|
$
|
(14,881)
|
|
|
$
|
382,121
|
|
|
$
|
399,050
|
|
RECONCILIATION
BETWEEN NET INCOME (LOSS) AND CASH FLOWS FROM OPERATIONS
(all amounts in
$000's)
|
|
|
|
|
|
|
|
|
|
Quarter ended June
30,
|
|
Six months ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(127)
|
|
|
$
|
(605)
|
|
|
$
|
11,491
|
|
|
$
|
(2,135)
|
|
Add back
(deduct):
|
|
|
|
|
|
|
|
Depletion
|
3,563
|
|
|
1,863
|
|
|
8,485
|
|
|
4,193
|
|
Equity-based
compensation
|
179
|
|
|
178
|
|
|
784
|
|
|
594
|
|
Real estate project
expenditures
|
(2,469)
|
|
|
(4,656)
|
|
|
(4,294)
|
|
|
(5,225)
|
|
Depreciation and
amortization
|
142
|
|
|
187
|
|
|
252
|
|
|
371
|
|
Deferred
taxes
|
(21)
|
|
|
—
|
|
|
44
|
|
|
—
|
|
Cost of land
sold
|
71
|
|
|
133
|
|
|
301
|
|
|
1,037
|
|
Gain on sale of
timberland
|
—
|
|
|
—
|
|
|
(12,503)
|
|
|
(226)
|
|
Gain on disposal of
property and equipment
|
(2)
|
|
|
(11)
|
|
|
(3)
|
|
|
(24)
|
|
Change in
environmental remediation liability
|
(951)
|
|
|
(953)
|
|
|
(4,280)
|
|
|
(4,175)
|
|
Change in other
operating accounts
|
2,511
|
|
|
1,527
|
|
|
5,343
|
|
|
1,293
|
|
Cash provided by
(used in) operations
|
$
|
2,896
|
|
|
$
|
(2,337)
|
|
|
$
|
5,620
|
|
|
$
|
(4,297)
|
|
SEGMENT
INFORMATION
(all amounts in
$000's)
|
|
|
|
|
|
|
|
|
|
Quarter ended June
30,
|
|
Six months ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Partnership Fee
Timber
|
$
|
8,169
|
|
|
$
|
8,134
|
|
|
$
|
17,275
|
|
|
$
|
12,524
|
|
Funds Fee
Timber
|
7,273
|
|
|
4,136
|
|
|
14,979
|
|
|
9,498
|
|
Total Fee Timber
|
15,442
|
|
|
12,270
|
|
|
32,254
|
|
|
22,022
|
|
Timberland Investment
Management
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
Real
Estate
|
449
|
|
|
443
|
|
|
982
|
|
|
1,752
|
|
Total
|
$
|
15,891
|
|
|
$
|
12,713
|
|
|
$
|
33,236
|
|
|
$
|
23,782
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
Fee Timber
|
$
|
4,645
|
|
|
$
|
2,969
|
|
|
$
|
21,213
|
|
|
$
|
5,453
|
|
Timberland Investment
Management
|
(751)
|
|
|
(603)
|
|
|
(1,717)
|
|
|
(1,269)
|
|
Real
Estate
|
(1,496)
|
|
|
(1,165)
|
|
|
(2,713)
|
|
|
(2,201)
|
|
General &
Administrative
|
(1,405)
|
|
|
(1,059)
|
|
|
(3,106)
|
|
|
(2,663)
|
|
Total
|
$
|
993
|
|
|
$
|
142
|
|
|
$
|
13,677
|
|
|
$
|
(680)
|
|
SELECTED
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June
30,
|
|
Six months ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Log sale volumes by
species (million board feet):
|
|
|
|
|
|
|
|
Sawlogs
|
|
|
|
|
|
|
|
Douglas-fir
|
13.7
|
|
|
9.4
|
|
|
29.7
|
|
|
18.2
|
|
Whitewood
|
3.3
|
|
|
5.4
|
|
|
8.8
|
|
|
8.0
|
|
Pine
|
1.3
|
|
|
1.2
|
|
|
1.3
|
|
|
1.2
|
|
Cedar
|
0.4
|
|
|
1.0
|
|
|
1.1
|
|
|
1.9
|
|
Hardwood
|
0.9
|
|
|
0.7
|
|
|
1.4
|
|
|
1.3
|
|
Pulpwood - all
species
|
3.7
|
|
|
3.2
|
|
|
8.3
|
|
|
6.0
|
|
Total
|
23.3
|
|
|
20.9
|
|
|
50.6
|
|
|
36.6
|
|
|
|
|
|
|
|
|
|
Log sale volumes by
destination (million board feet):
|
|
|
|
|
|
|
|
Domestic
|
13.7
|
|
|
13.8
|
|
|
29.8
|
|
|
23.2
|
|
Export
|
5.0
|
|
|
3.2
|
|
|
11.1
|
|
|
6.1
|
|
Hardwood
|
0.9
|
|
|
0.7
|
|
|
1.4
|
|
|
1.3
|
|
Pulpwood
|
3.7
|
|
|
3.2
|
|
|
8.3
|
|
|
6.0
|
|
Subtotal log sale
volumes
|
23.3
|
|
|
20.9
|
|
|
50.6
|
|
|
36.6
|
|
Timber deed
sale
|
2.1
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
Total
|
25.4
|
|
|
20.9
|
|
|
53.0
|
|
|
36.6
|
|
Average price
realizations by species (per thousand board feet):
|
Quarter ended June
30,
|
|
Six months ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Sawlogs
|
|
|
|
|
|
|
|
Douglas-fir
|
$
|
694
|
|
|
$
|
596
|
|
|
$
|
677
|
|
|
$
|
608
|
|
Whitewood
|
602
|
|
|
550
|
|
|
568
|
|
|
530
|
|
Pine
|
486
|
|
|
500
|
|
|
501
|
|
|
500
|
|
Cedar
|
1,414
|
|
|
1,271
|
|
|
1,384
|
|
|
1,384
|
|
Hardwood
|
685
|
|
|
521
|
|
|
660
|
|
|
529
|
|
Pulpwood - all
species
|
297
|
|
|
290
|
|
|
293
|
|
|
300
|
|
Overall
|
616
|
|
|
563
|
|
|
605
|
|
|
575
|
|
|
|
|
|
|
|
|
|
Average price
realizations by destination (per thousand board feet):
|
|
|
|
|
|
|
|
Domestic
|
$
|
657
|
|
|
$
|
618
|
|
|
$
|
655
|
|
|
$
|
632
|
|
Export
|
731
|
|
|
607
|
|
|
698
|
|
|
636
|
|
Hardwood
|
685
|
|
|
521
|
|
|
660
|
|
|
529
|
|
Pulpwood
|
297
|
|
|
290
|
|
|
293
|
|
|
300
|
|
Overall log
sales
|
616
|
|
|
563
|
|
|
605
|
|
|
575
|
|
Timber deed
sale
|
301
|
|
|
—
|
|
|
292
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Timberland acres
owned by the Partnership
|
120,000
|
|
|
111,000
|
|
|
120,000
|
|
|
111,000
|
|
Timberland acres
owned by Funds
|
88,000
|
|
|
94,000
|
|
|
88,000
|
|
|
94,000
|
|
Depletion expense per
MBF - Partnership tree farms
|
$
|
72
|
|
|
$
|
43
|
|
|
$
|
73
|
|
|
$
|
43
|
|
Depletion expense per
MBF - Fund tree farms
|
$
|
206
|
|
|
$
|
177
|
|
|
$
|
248
|
|
|
$
|
201
|
|
Capital and
development expenditures ($000's)
|
$
|
3,312
|
|
|
$
|
4,450
|
|
|
$
|
5,495
|
|
|
$
|
6,283
|
|
PERIOD TO PERIOD
COMPARISONS
(Amounts in $000's
except per unit data)
|
|
|
|
|
|
Q2 2017
vs.
|
|
YTD 2017
vs.
|
|
Q2 2016
|
|
YTD 2016
|
Net income (loss)
attributable to Pope Resources' unitholders:
|
|
|
|
2017
period
|
$
|
158
|
|
|
$
|
3,528
|
|
2016
period
|
436
|
|
|
(599)
|
|
Variance
|
$
|
(278)
|
|
|
$
|
4,127
|
|
|
|
|
|
Detail of earnings
variance:
|
|
|
|
Fee Timber
|
|
|
|
Log volumes
(A)
|
$
|
1,351
|
|
|
$
|
8,050
|
|
Log price
realizations (B)
|
1,235
|
|
|
1,518
|
|
Gain on sale of
timberland
|
—
|
|
|
12,277
|
|
Timber deed
sale
|
638
|
|
|
710
|
|
Production
costs
|
160
|
|
|
(1,990)
|
|
Depletion
|
(1,700)
|
|
|
(4,292)
|
|
Other Fee
Timber
|
(8)
|
|
|
(513)
|
|
Timberland Investment
Management
|
(148)
|
|
|
(448)
|
|
Real
Estate
|
|
|
|
Land sales
|
62
|
|
|
(23)
|
|
Other Real
Estate
|
(393)
|
|
|
(489)
|
|
General &
Administrative costs
|
(346)
|
|
|
(443)
|
|
Net interest
expense
|
(370)
|
|
|
(722)
|
|
Income
taxes
|
(3)
|
|
|
(9)
|
|
Noncontrolling
interest
|
(756)
|
|
|
(9,499)
|
|
Total
variance
|
$
|
(278)
|
|
|
$
|
4,127
|
|
|
|
(A)
|
Volume variance
calculated by multiplying the change in sales volume by the average
log sales price for the comparison period.
|
(B)
|
Price variance
calculated by multiplying the change in average realized price by
current period volume.
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/pope-resources-reports-second-quarter-income-of-158000-300499593.html
SOURCE Pope Resources