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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 1-12147
DELTIC TIMBER CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 71-0795870
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
200 Peach Street, P. O. Box 7200, El Dorado, Arkansas 71731-7200
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (870) 881-6634
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Stock, $.01 Par Value New York Stock Exchange, Inc.
Series A Participating Cumulative New York Stock Exchange, Inc.
Preferred Stock Purchase Rights
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days. Yes X No .
--- ---
The aggregate market value of the Common Stock held by non-affiliates of the
registrant, based on the closing sales price of the Common Stock on the New York
Stock Exchange on April 30, 1997, was $150,939,432. For purposes of this
computation, all officers, directors, and 5% beneficial owners of the registrant
are deemed to be affiliates. Such determination should not be deemed an
admission that such directors, officers, or 5% benficial owners are, in fact,
affiliates of the registrant.
Number of shares of Common Stock, $.01 Par Value, outstanding at April 30, 1997,
was 12,798,323.
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DELTIC TIMBER CORPORATION
Consolidated Balance Sheets
-------------------------------
(Thousands of dollars)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
----------- ------------
(unaudited)
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 428 16,635
U. S. government securities 11,890 1,527
Accounts receivable, less allowance for doubtful accounts 7,217 5,718
Inventories 4,965 5,436
Prepaid expenses and other current assets 2,932 2,386
-------- -------
Total current assets 27,432 31,702
Investment in real estate held for development and sale 19,322 19,558
Investment in Del-Tin Fiber, L.L.C. 10,083 6,811
Timber and timberlands - net 97,638 90,320
Property, plant, and equipment - net 28,579 28,902
Deferred charges and other assets 3,057 2,785
-------- -------
Total assets $186,111 180,078
======== =======
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt $ 1,739 1,698
Trade accounts payable 2,222 2,031
Accrued taxes other than income taxes 1,047 780
Other accrued liabilities 1,510 942
Income taxes 3,353 493
-------- -------
Total current liabilities 9,871 5,944
Long-term debt 1,002 2,685
Accrued postretirement benefits 2,268 2,187
Deferred credits and other liabilities 2,997 2,554
Stockholders' equity
Preferred stock - -
Common stock 128 128
Capital in excess of par value 68,372 68,372
Retained earnings 101,473 98,208
-------- -------
Total stockholders' equity 169,973 166,708
-------- -------
Total liabilities and stockholders' equity $186,111 180,078
======== =======
</TABLE>
See accompanying notes to consolidated financial statements.
3
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DELTIC TIMBER CORPORATION
Consolidated Statements of Income (Unaudited)
Three Months Ended March 31
---------------------------------------------
(Thousands of dollars, except per share amounts)
<TABLE>
<CAPTION>
1997 1996
--------- -------
<S> <C> <C>
Net sales $24,364 19,318
------- ------
Costs and expenses
Cost of sales 13,655 12,784
Depreciation, amortization, and
cost of fee timber harvested 1,260 1,285
General and administrative expenses 1,634 990
------- ------
Total costs and expenses 16,549 15,059
------- ------
Operating income 7,815 4,259
Interest income 351 678
Interest expense (81) (70)
Other income 31 367
------- ------
Income before income taxes 8,116 5,234
Income taxes (3,251) (2,083)
------- ------
Net income $ 4,865 3,151
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Net income per Common share* $ .38 .25
======= ======
Dividends per Common Share $ .0625 N/A
======= ======
Average Common shares outstanding (thousands)* 12,798 12,798
======= ======
</TABLE>
*1996 amounts are presented on a pro forma basis. The spin-off distribution of
the Company's Common Stock did not occur until December 31, 1996.
See accompanying notes to consolidated financial statements.
4
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DELTIC TIMBER CORPORATION
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31
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(Thousands of dollars)
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Operating activities
Net income $ 4,865 3,151
Adjustments to reconcile above income to
net cash provided by operating activities
Depreciation, amortization, and cost of fee timber harvested 1,260 1,285
Deferred income taxes (27) 162
Gains from dispositions of assets (30) (47)
Real estate costs recovered upon sale 819 684
(Increase)/decrease in operating working
capital other than cash and cash equivalents 1,513 (2,121)
Other 279 181
-------- -------
Net cash provided by operating activities 8,679 3,295
-------- -------
Investing activities
Capital expenditures requiring cash (4,910) (1,919)
Net change in purchased stumpage inventory (4,139) (1,685)
Purchases of U. S. government securities (12,501) -
Maturities of U. S. government securities 2,138 -
Proceeds from dispositions of property, plant, and equipment 51 64
Net (additions)/reductions to noncurrent receivable from Murphy - 583
Advances to Del-Tin Fiber, L.L.C. (3,000) -
Other - net 13 (35)
-------- -------
Net cash required by investing activities (22,348) (2,992)
-------- -------
Financing activities
Cash required for reductions of long-term debt (1,738) (355)
Dividends paid (800) -
-------- -------
Net cash required by financing activities (2,538) (355)
-------- -------
Net increase/(decrease) in cash and cash equivalents (16,207) (52)
Cash and cash equivalents at January 1 16,635 1,431
-------- -------
Cash and cash equivalents at March 31 $ 428 1,379
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Supplemental disclosures
Cash income taxes paid, net of refunds $ 239 -
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Interest paid $ 237 61
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Additions to debt - owner financed purchased stumpage
inventory $ 95 -
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Dividends declared, not paid $ 800 -
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</TABLE>
See accompanying notes to consolidated financial statements.
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DELTIC TIMBER CORPORATION
Consolidated Statements of Stockholders' Equity
Three Months Ended March 31
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(Thousands of dollars)
<TABLE>
<CAPTION>
1997 1996
------- -------
<S> <C> <C>
Cumulative Preferred Stock - $.01 par, authorized
20,000,000 shares, none issued $ - -
Common Stock - $.01 par, authorized 50,000,000
shares, 12,798,323 shares issued 128 128
Capital in excess of par value 68,372 68,372
Retained earnings
Balance at January 1 98,208 103,860
Net income for the quarter 4,865 3,151
Dividends declared (1,600) -
-------- -------
Balance at March 31 101,473 107,011
-------- -------
Total stockholders' equity $169,973 166,708
======== =======
</TABLE>
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DELTIC TIMBER CORPORATION
Notes to Consolidated Financial Statements
March 31, 1997
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NOTE A - INTERIM FINANCIAL STATEMENTS
The interim financial information included herein is unaudited; however, such
information reflects all adjustments which are, in the opinion of management,
necessary for a fair presentation of the Company's financial position, results
of operations, and cash flows for the interim periods. All such adjustments
are of a normal, recurring nature. The financial statements in Deltic's 1996
Annual Report on Form 10-K include a summary of significant accounting
policies of the Company and should be read in conjunction with this Form 10-Q.
Certain prior period amounts have been reclassified to conform with 1997
presentation format.
NOTE B - NET INCOME PER COMMON SHARE
This amount is computed by dividing net income for each period by the weighted
average number of Common shares outstanding during the period. For 1996, this
amount is presented on a pro forma basis and is calculated based on the number
of shares issued in connection with the spin-off. The effects of assuming
issuance of Common Stock for outstanding stock options were immaterial and do
not impact the amounts presented.
NOTE C - INVENTORIES
Inventories consisted of the following at the balance sheet dates:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
--------- ------------
<S> <C> <C>
(Thousands of dollars)
Logs $1,495 1,366
Finished products 3,359 3,912
Materials and supplies 111 158
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$4,965 5,436
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</TABLE>
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DELTIC TIMBER CORPORATION
Notes to Consolidated Financial Statements
March 31, 1997
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NOTE D - TIMBER AND TIMBERLANDS
Timber and timberlands consisted of the following at the balance sheet dates:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
---------- -------------
<S> <C> <C>
(Thousands of dollars)
Purchased stumpage inventory $ 11,468 7,235
Timberlands 37,967 37,401
Fee timber 74,941 71,919
Logging facilities 1,588 1,588
-------- -------
125,964 118,143
Less accumulated costs of fee timber harvested
and facilities depreciation (28,326) (27,823)
-------- -------
$ 97,638 90,320
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</TABLE>
NOTE E - PROPERTY, PLANT, AND EQUIPMENT
Property, plant, and equipment consisted of the following at the balance sheet
dates:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
---------- -------------
<S> <C> <C>
(Thousands of dollars)
Land and land improvements $ 7,325 7,272
Buildings and structures 7,036 6,836
Machinery and equipment 45,919 45,782
-------- -------
60,280 59,890
Less accumulated depreciation (31,701) (30,988)
-------- -------
$ 28,579 28,902
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</TABLE>
NOTE F - IMPACT OF ACCOUNTING PRONOUNCEMENTS
In March 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings per Share."
SFAS 128 establishes the requirements for the computation of basic earnings
per share and dilutive earnings per share and is effective for financial
statements issued for periods ending after December 15, 1997. The effect of
adoption of SFAS 128 is not expected to materially impact the Company's
earnings per share.
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DELTIC TIMBER CORPORATION
Notes to Consolidated Financial Statements
March 31, 1997
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NOTE G - BUSINESS SEGMENTS (UNAUDITED)
Information about the Company's business segments is summarized in the
following tables.
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------
(Thousands of dollars) 1997 1996
--------- -------
<S> <C> <C>
Net sales
Forest Products $20,682 17,810
Real Estate 2,579 1,311
Agriculture 1,103 197
------- ------
$24,364 19,318
======= ======
Income before income taxes
Forest Products $ 7,493 4,793
Real Estate 1,285 375
Agriculture 498 (31)
Corporate (1,461) (878)
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Operating income 7,815 4,259
Interest income 351 678
Interest expense (81) (70)
Other income 31 367
------- ------
$ 8,116 5,234
======= ======
Depreciation, amortization, and
cost of fee timber harvested
Forest Products $ 1,070 1,063
Real Estate 62 5
Agriculture 119 132
Corporate 9 85
------- ------
$ 1,260 1,285
======= ======
Capital expenditures
Forest Products $ 4,149 285
Real Estate 569 1,355
Agriculture 105 113
Corporate 87 166
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$ 4,910 1,919
======= ======
</TABLE>
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