|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: GENESIS ENERGY LP, 10-Q, 1999-05-12 |
Next: CARDIMA INC, 10-Q, 1999-05-12 |
<PAGE>
================================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(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, 1999
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
incorporation or organization) Identification Number)
210 East Elm Street, P. O. Box 7200, 71731-7200
El Dorado, Arkansas (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (870) 881-9400
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
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 ____.
---
Number of shares of Common Stock, $.01 Par Value, outstanding at April 30, 1999,
was 12,582,066.
================================================================================
<PAGE>
TABLE OF CONTENTS - FIRST QUARTER 1999 FORM 10-Q REPORT
<TABLE>
<CAPTION>
Page
Number
------
<S> <C> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 2. Change in Securities 15
Item 3. Defaults Upon Senior Securities 15
Item 4. Submission of Matters to a Vote of Security Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 16
Signatures 16
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheets
---------------------------
(Thousands of dollars)
<TABLE>
<CAPTION>
March 31, Dec. 31,
1998 1999
------------ -----------
(unaudited)
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 5,248 8,160
Trade accounts receivable - net 9,125 3,995
Other receivables 1,430 1,328
Inventories 6,460 5,851
Prepaid expenses and other current assets 3,461 3,882
---------- ----------
Total current assets 25,724 23,216
Investment in real estate held for development and sale 27,491 27,295
Investment in Del-Tin Fiber 5,112 6,699
Timber and timberlands - net 168,053 166,588
Property, plant, and equipment - net 46,603 44,104
Deferred charges and other assets 4,555 4,642
---------- ----------
Total assets $ 277,538 272,544
========== ==========
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt $ 924 990
Notes payable - 387
Trade accounts payable 2,477 2,164
Accrued taxes other than income taxes 1,349 1,025
Bank overdraft 1,236 817
Other accrued liabilities 2,214 1,294
---------- ----------
Total current liabilities 8,200 6,677
Long-term debt 51,036 45,198
Deferred credits and other noncurrent liabilities 8,254 7,535
Redeemable preferred stock 30,000 30,000
Stockholders' equity
Preferred stock - -
Common stock 128 128
Capital in excess of par value 68,808 68,808
Retained earnings 117,028 114,498
Unamortized restricted stock awards (275) (300)
Treasury stock (5,641) -
---------- ----------
Total stockholders' equity 180,048 183,134
---------- ----------
Total liabilities and stockholders' equity $ 277,538 272,544
=========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended March 31,
------------------------------------------------
(Thousands of dollars, except per share amounts)
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
Net sales $ 31,325 27,008
--------- ---------
Costs and expenses
Cost of sales 17,652 17,138
Depreciation, amortization, and
cost of fee timber harvested 3,071 1,729
General and administrative expenses 1,833 1,752
--------- ---------
Total costs and expenses 22,556 20,619
--------- ---------
Operating income 8,769 6,389
Equity in loss of Del-Tin Fiber (1,629) (404)
Interest income 67 327
Interest expense (779) (48)
Other income/(expense) 79 35
--------- ---------
Income before income taxes 6,507 6,299
Income taxes (2,612) (2,493)
--------- ---------
Net income $ 3,895 3,806
========= =========
Earnings per Common share
Basic $ .26 .25
========= =========
Assuming dilution $ .26 .25
========= =========
Dividends declared per Common share $ .0625 .0625
========= =========
Average Common shares outstanding (thousands) 12,745 12,806
========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended March 31,
-------------------------------------------------
(Thousands of dollars)
<TABLE>
<CAPTION>
1999 1998
------- -------
<S> <C> <C>
Operating activities
Net income $ 3,895 3,806
Adjustments to reconcile above income to
net cash provided/(required) by operating activities
Depreciation, amortization, and cost of fee timber harvested 3,071 1,729
Deferred income taxes 882 (63)
(Gains)/losses from sales of assets (13) (11)
Real estate costs recovered upon sale 2,121 954
Equity in loss of Del-Tin Fiber 1,629 404
(Increase)/decrease in operating working capital
other than cash and cash equivalents (3,863) 2,325
Other (79) (226)
--------- -------
Net cash provided/(required) by operating activities 7,643 8,918
--------- -------
Investing activities
Capital expenditures requiring cash (7,392) (9,789)
Net change in purchased stumpage inventory (2,096) (3,731)
Proceeds from sales of assets 24 18
Investment in and advances to Del-Tin Fiber - net - 67
Other - net 112 130
--------- ---------
Net cash provided/(required) by investing activities (9,352) (13,305)
--------- ---------
Financing activities
Proceeds from long-term borrowings 6,000 -
Repayments of long-term debt (616) (1,984)
Treasury stock purchases (5,641) -
Increase/(decrease) in bank overdraft 419 153
Preferred Stock dividends paid (566) (566)
Common Stock dividends paid (799) (801)
--------- --------
Net cash provided/(required) by financing activities (1,203) (3,198)
--------- --------
Net increase/(decrease) in cash and cash equivalents (2,912) (7,585)
Cash and cash equivalents at January 1 8,160 31,045
--------- --------
Cash and cash equivalents at March 31 $ 5,248 23,460
========= ========
Supplemental disclosures
Income taxes paid, net of refunds $ 523 309
========= ========
Interest paid, net of amounts capitalized $ 136 163
========= ========
Additions to debt - owner financing $ - 347
========= ========
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity
-----------------------------------------------
(Thousands of dollars)
<TABLE>
<CAPTION>
March 31, Dec. 31,
1999 1998
---------- ----------
(unaudited)
<S> <C> <C>
Cumulative Preferred Stock - $.01 par, authorized
20,000,000 shares, 600,000 shares issued as
Redeemable Preferred Stock $ - -
-------- ----------
Common Stock - $.01 par, authorized 50,000,000 shares;
12,813,879 shares issued in 1999 and 1998 128 128
-------- ----------
Capital in excess of par value
Balance at beginning of year 68,808 68,372
Exercise of stock options - 58
Restricted stock awards - 378
-------- ----------
Balance at end of period 68,808 68,808
-------- ----------
Retained earnings
Balance at beginning of year 114,498 111,496
Net income 3,895 8,474
Preferred Stock dividends accrued (566) (2,269)
Common Stock dividends declared (799) (3,203)
-------- ----------
Balance at end of period 117,028 114,498
-------- ----------
Unamortized restricted stock awards
Balance at beginning of year (300) -
Stock awards - (378)
Amortization to expense 25 78
-------- ----------
Balance at end of period (275) (300)
-------- ----------
Treasury stock
Balance at beginning of year - -
Shares purchased (5,641) -
Balance at end of period - 231,813 shares of Common
Stock in 1999, at cost (5,641) -
-------- ----------
Total stockholder' equity $ 180,048 183,134
======== ==========
</TABLE>
6
<PAGE>
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1999
-----------------------------------------
(Unaudited, except for December 31, 1998)
NOTE 1 - 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 1998
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 1999
presentation format.
NOTE 2 - EARNINGS PER COMMON SHARE
The amounts used in computing earnings per share consisted of the following:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
(Thousands of dollars) 1999 1998
-------- --------
<S> <C> <C>
Net income $ 3,895 3,806
Less Preferred dividends (566) (566)
-------- --------
Income available to Common shareholders $ 3,329 3,240
======== ========
Weighted average number of Common shares
used in basic EPS 12,745 12,806
Effect of dilutive stock options 14 27
-------- --------
Weighted average number of Common shares
and dilutive potential Common Stock used in
EPS assuming dilution 12,759 12,833
======== ========
Earnings per Common share
Basic $ .26 .25
======== ========
Assuming dilution $ .26 .25
======== ========
</TABLE>
NOTE 3 - INVENTORIES
Inventories at the balance sheet dates consisted of the following:
<TABLE>
<CAPTION>
Mar. 31, Dec. 31,
(Thousands of dollars) 1999 1998
------- --------
<S> <C> <C>
Logs $ 2,257 1,942
Finished products 3,902 3,616
Materials and supplies 301 293
-------- --------
$ 6,460 5,851
======== ========
</TABLE>
7
<PAGE>
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1999
------------------------------------------
(Unaudited, except for December 31, 1998)
NOTE 4 - INVESTMENT IN DEL-TIN FIBER
The Company owns 50 percent of the membership interest of Del-Tin Fiber, which
completed construction of a medium density fiberboard plant in April 1998. The
Company's investment in Del-Tin Fiber is carried at cost, adjusted for the
Company's proportionate share of undistributed earnings or losses recorded on
a one-month lag basis.
The results of operations for the periods ended March 31 and financial
position for Del-Tin Fiber as of the balance sheet dates consisted of the
following:
<TABLE>
<CAPTION>
March 31, Dec. 31,
(Thousands of Dollars) 1999 1998
--------- ---------
(unaudited)
<S> <C> <C>
Condensed Balance Sheet Information
Current assets $ 9,974 6,243
Property, plant, and equipment - net 99,407 98,147
Other noncurrent assets 5,994 9,146
--------- ---------
Total assets $ 115,375 113,536
========= =========
Current liabilities $ 16,108 10,805
Long-term debt 89,000 89,000
Members' capital/(deficit) 10,267 13,731
--------- ---------
Total liabilities and members' capital/(deficit) $ 115,375 113,536
========= =========
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------
1999 1998
--------- ---------
(unaudited)
<S> <C> <C>
Condensed Income Statement Information $ 6,436 --
Net sales --------- ---------
Costs and expenses 6,184 642
Cost of sales 927 3
Depreciation 1,617 331
General and administrative expenses --------- ---------
8,728 976
Total costs and expenses --------- ---------
(2,292) (976)
Operating income/(loss)
38 --
Interest income (1,210) --
Interest expense --------- ---------
$ (3,464) (976)
Net income/(loss) ========= =========
</TABLE>
8
<PAGE>
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1999
------------------------------------------
(Unaudited, except for December 31, 1998)
NOTE 5 - TIMBER AND TIMBERLANDS
Timber and timberlands at the balance sheet dates consisted of the following:
<TABLE>
<CAPTION>
Mar. 31, Dec. 31,
(Thousands of dollars) 1999 1998
-------- --------
<S> <C> <C>
Purchased stumpage inventory $ 15,306 13,210
Timberlands 55,114 54,710
Fee timber 128,878 128,242
Logging facilities 1,617 1,610
-------- --------
200,915 197,772
Less accumulated costs of fee timber harvested
and facilities depreciation (32,862) (31,184)
-------- --------
$ 168,053 166,588
======== ========
</TABLE>
NOTE 6 - PROPERTY, PLANT, AND EQUIPMENT
Property, plant, and equipment at the balance sheet dates consisted of the
following:
<TABLE>
<CAPTION>
Mar. 31, Dec. 31,
(Thousands of dollars) 1999 1998
-------- --------
<S> <C> <C>
Land $ 4,425 4,425
Land improvements 4,048 4,046
Buildings and structures 8,651 8,573
Machinery and equipment 66,623 62,949
------- -------
83,747 79,993
Less accumulated depreciation (37,144) (35,889)
------- -------
$ 46,603 44,104
======= =======
</TABLE>
9
<PAGE>
DELTIC TIMBER CORPORATION
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1999
----------------------------------------
(Unaudited, except for December 31, 1998)
NOTE 7 - BUSINESS SEGMENTS
Information about the Company's business segments consisted of the following:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
(Thousands of dollars) 1999 1998
-------- --------
<S> <C> <C>
Net sales
Woodlands $ 8,244 9,026
Mills 18,288 17,007
Real Estate 7,745 2,413
Agriculture 448 463
Eliminations* (3,400) (1,901)
-------- --------
$ 31,325 27,008
======== ========
Income before income taxes
Operating income
Woodlands $ 5,785 7,786
Mills 457 (164)
Real Estate 4,071 229
Agriculture 90 55
Corporate (1,643) (1,581)
Eliminations 9 64
-------- --------
Operating income 8,769 6,389
Equity in loss of Del-Tin Fiber (1,629) (404)
Interest income 67 327
Interest expense (779) (48)
Other income/(expense) 79 35
-------- --------
$ 6,507 6,299
======== ========
Depreciation, amortization, and
cost of fee timber harvested
Woodlands $ 1,774 629
Mills 971 821
Real Estate 116 97
Agriculture 145 125
Corporate 65 57
-------- --------
$ 3,071 1,729
-------- --------
Capital expenditures
Woodlands $ 1,322 6,815
Mills 2,762 1,964
Real Estate 3,213 1,269
Agriculture 49 65
Corporate 46 23
-------- --------
$ 7,392 10,136
======== ========
</TABLE>
*Intersegment sales of timber from Woodlands to Mills
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net income for the first quarter of 1999 was $3.9 million, $.26 a
share, a $.1 million increase when compared to the first quarter 1998 earnings
of $3.8 million, $.25 a share. Operating income for the current quarter totaled
$8.8 million, an increase of 37 percent when compared to $6.4 million in the
same quarter of 1998. Net cash provided by operating activities was $7.6 million
compared to $8.9 million in the first quarter of 1998.
In the current quarter, operating income increased $2.4 million. The
Woodlands segment decreased $2 million due primarily to a 20 percent decrease in
the average price for pine sawtimber sold and a $1.1 million increase in the
cost of fee timber harvested. The Company's Mills segment increased $.7 million
as a result of a five percent decrease in the average manufacturing cost per
thousand board feet ("MBF") of finished lumber sold, a two percent increase in
average lumber sales price, and a four percent increase in the volume of lumber
sold. Real Estate operations increased $3.9 million primarily due to the sale of
an approximately 72-acre commercial site.
The Company's Woodlands segment net sales totaled $8.2 million in the
current quarter compared to $9 million a year ago. Sales of pine sawtimber
decreased $1.1 million as a result of a $12 per ton decrease in the average
sales price of pine sawtimber sold to $47 per ton, partially offset by a 11,300
ton increase in the harvest level to 152,000 tons. Operating income was $5.8
million in 1999 compared to $7.8 million in 1998, mainly due to the decrease in
net sales combined with a $1.1 million increase in the cost of fee timber
harvested resulting from the increase in harvest levels and a higher cost per
ton of timber harvested due primarily to recent acquisitions of timberland.
The Mills segment generated net sales of $18.3 million in the first
quarter of 1999 compared to $17 million in the first quarter of 1998. Finished
lumber sales increased $1 million due to a $9 rise in the average sales price
per MBF sold to $369, combined with a four percent increase in sales volume to
41.6 million board feet. Operating income was $.5 million in 1999 which compares
to an operating loss of $.2 million in 1998. This increase was due primarily to
a $20 per MBF decrease in lumber manufacturing cost, mainly as the result of a
$14 reduction in the log cost per MBF of lumber produced, and the increase in
net sales.
The Real Estate segment reported net sales of $7.7 million in the
current year period compared to $2.4 million a year ago. A 72-acre commercial
site was sold in the current quarter for $60,000 per acre, while no commercial
development acreage was sold in the first quarter of 1998. Residential lot sales
increased by 8 lots to 48, while the average sales price increased from $40,500
to $54,200 per lot due to sales mix. Operating income was $4.1 million in the
first quarter of 1999 compared to $.2 million during the first quarter of 1998
primarily as the result of the margin from increased commercial development
sales.
Agriculture operations recorded net sales of $.5 million and operating
income of $.1 million for each of the reporting periods, due primarily to the
seasonality of farming.
Equity in the loss of Del-Tin Fiber recorded by the Company was $1.6
million in 1999, which compares to 1998's equity loss, incurred prior to plant
start-up, amounting to $.4 million. Corporate interest expense increased $.8
million due to increased borrowings resulting from the Company's timberland
acquisition program.
11
<PAGE>
FINANCIAL CONDITION
During the first quarter of 1999, net cash provided by operating
activities totaled $7.6 million compared to $8.9 million during the first
quarter of 1998. Changes in operating working capital, other than cash and cash
equivalents, required cash of $3.9 million for the first three months of 1999
but provided $2.3 million for the 1998 period.
Capital expenditures required cash of $7.4 million in the current
quarter and $9.8 million a year ago. The decrease was due primarily to $6.6
million utilized to acquire timberland acreage during the 1998 period. Total
capital expenditures, summarized by segment, consisted of the following:
<TABLE>
<CAPTION>
-------------------------------------------------------------------
Three Months
Ended March 31,
-------------------------------------------------------------------
(Thousands of dollars) 1999 1998
-------------------------------------------------------------------
<S> <C> <C>
Woodlands $ 1,322 6,815
Mills 2,762 1,964
Real Estate 3,213 1,269
Agriculture 49 65
Corporate 46 23
-------------------------------------------------------------------
Total capital expenditures 7,392 10,136
Owner-financed expenditures - (347)
-------------------------------------------------------------------
Expenditures requiring cash $ 7,392 9,789
===================================================================
</TABLE>
The net change in purchased stumpage inventory to be utilized in the
Company's sawmill operations required cash of $2.1 million in 1999 and $3.7
million a year ago. During both periods, Deltic paid dividends of $1.4 million,
consisting of $.8 million for Common Stock and $.6 million for Redeemable
Preferred Stock. In the current year, borrowings under the Company's revolving
credit facility provided $6 million and Deltic made repayments of debt in the
amount of $.6 million, while such repayments utilized $2 million in the 1998
period. During the current quarter, treasury stock purchases required cash of
$5.6 million. These net uses of funds resulted in a $2.9 million reduction in
the Company's cash and cash equivalents since December 31, 1998.
On January 14, 1999, the Company's Board of Directors authorized a
stock repurchase program through which the Company's management has approval to
purchase up to $10 million of Common Stock, initially. Under the program, the
Company can purchase shares through the open market and privately negotiated
transactions at prices deemed appropriate by management, utilizing cash provided
by operations and/or from its credit facility. As of March 31, 1999, Deltic had
repurchased 231,813 shares at an average cost of approximately $24 per share.
Deltic's management believes that the cash generated by its operating
activities and the remaining amount available under its credit facility will be
sufficient to meet its expected cash needs and planned expenditures, including
those of the Company's continued timberland acquisition and authorized Common
Stock repurchase programs, for the foreseeable future.
YEAR 2000 ISSUE
Changes since December 31, 1998, in the Company's status of obtaining
Year 2000 compliance are included in the following disclosures. The Company's
disclosures set forth under
12
<PAGE>
the caption, "Management's Discussion and Analysis", in Item 7 of Part II of its
1998 annual report on Form 10-K includes a detailed discussion of the Year 2000
issue and should be read in conjunction with this Form 10-Q.
The Company has completed the process of identifying the computers,
application software, and related equipment that must be modified, upgraded, or
replaced to minimize the possibility of a material disruption of its business.
The process of modifying or upgrading systems which have been assessed as
affected by the Year 2000 problem is progressing as planned. For critical
internal computerized systems, the Company has completed this process. For
remaining major systems and equipment, including those at operational
facilities, the Company still anticipates the completion of any modifications or
upgrades required no later than the third quarter of 1999. To- date, the Company
has still not incurred significant costs for these modifications since most have
been provided by the supplier at no or minimal cost to Deltic. Therefore, the
Company continues to anticipate that the cost related to the Year 2000 issue,
incurred by the Company, will not be material.
The Company has communicated with third party suppliers of its major
computers, software, and other equipment used, operated, or maintained by the
Company, including those at its operational facilities, to identify and, to the
extent possible, resolve issues involving the Year 2000 problem. Since the
Company has limited or no control over the actions of these suppliers, there can
be no assurance that these suppliers will resolve all Year 2000 problems,
whether currently known or not, or that the Company will be able to obtain
replacement suppliers, before the occurrence of a material disruption to the
business of the Company.
In addition, the Company has issued written communication to all of its
suppliers and significant customers in order to attempt to obtain the status of
their Year 2000 compliance. To-date, the majority of these suppliers and
customers have responded to such communications and have continued to indicate
that they have already achieved Year 2000 compliance or expect to do so prior to
December 31, 1999. However, the Company can give no assurance that is suppliers
or customers will not be materially impacted by the Year 2000 issue. In
addition, the Company can give no assurance that failure by its suppliers or
customers to achieve Year 2000 compliance will not have a significant impact on
the Company's business. However, Deltic is continuing with follow-up
communications with critical suppliers and customers.
Deltic is continuing to develop a contingency plan which would be
implemented in the event that any of the Company's efforts to identify and
correct Year 2000 problems are not effective. Deltic expects to finalize this
contingency plan, for any system or facility for which Year 2000 compliance is
not reasonably certain, as its assessment of Year 2000 compliance is nearer to
completion.
The discussion of the Company's efforts, and its management's
expectations, relating to Year 2000 compliance are "forward-looking statements"
within the meaning of the federal securities laws. Such statements reflect the
Company's current expectations and involve risks and uncertainties. Actual
results could differ materially from those included in such forward-looking
statements. The Company's ability to achieve Year 2000 compliance and the level
of incremental costs associated therewith, could be adversely impacted by, among
other things, the availability and cost of programming and testing resources,
suppliers' ability to modify proprietary software, and unanticipated problems
identified in the ongoing compliance review.
13
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's market risk has not changed significantly from that set
forth under the caption "Quantitative and Qualitative Disclosures About Market
Risk", in Item 7A of Part II of its 1998 annual report on Form 10-K. Those
disclosures should be read in conjunction with this Form 10-Q.
14
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, the Company is involved in litigation incidental to
its business. Currently, there are no material legal proceedings.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule.
(b) Reports on Form 8-K
The following item was reported in the Form 8-K dated January 20,
1999:
Item 5. Other Events - Press release announcing the authorization
of Deltic's Common Stock repurchase program.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DELTIC TIMBER CORPORATION
By: /s/ Ron L. Pearce Date: May 10, 1998
----------------------------------- ---------------------
Ron L. Pearce, President
(Principal Executive Officer)
/s/ Clefton D. Vaughan Date: May 10, 1998
- -------------------------------------- ---------------------
Clefton D. Vaughan, Vice President,
Finance and Administration
(Principal Financial Officer)
/s/ Emily R. Evers Date: May 10, 1998
- -------------------------------------- ---------------------
Emily R. Evers, Controller
(Principal Accounting Officer)
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 5,248
<SECURITIES> 0
<RECEIVABLES> 10,759
<ALLOWANCES> 204
<INVENTORY> 6,460
<CURRENT-ASSETS> 25,724
<PP&E> 83,747
<DEPRECIATION> 37,144
<TOTAL-ASSETS> 277,538
<CURRENT-LIABILITIES> 8,200
<BONDS> 0
30,000
0
<COMMON> 128
<OTHER-SE> 179,920
<TOTAL-LIABILITY-AND-EQUITY> 277,538
<SALES> 31,325
<TOTAL-REVENUES> 31,471
<CGS> 17,652
<TOTAL-COSTS> 20,723
<OTHER-EXPENSES> 1,829
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 779
<INCOME-PRETAX> 6,507
<INCOME-TAX> 2,612
<INCOME-CONTINUING> 3,895
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,895
<EPS-PRIMARY> 0.26
<EPS-DILUTED> 0.26
</TABLE>
|
|