deltic timber corporation l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Deltic Timber Corporation PowerPoint Presentation
Download Presentation
Deltic Timber Corporation

Loading in 2 Seconds...

play fullscreen
1 / 41

Deltic Timber Corporation - PowerPoint PPT Presentation


  • 298 Views
  • Uploaded on

Deltic Timber Corporation. Annual Meeting – April 27, 2006. Forward-Looking Statements.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Deltic Timber Corporation


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
deltic timber corporation

Deltic Timber Corporation

Annual Meeting – April 27, 2006

forward looking statements
Forward-Looking Statements

This presentation contains forward-looking statements. Such statements can be identified by the use of words such as “believes”, “expects”, “may”, “will”, “should”, “plans”, “intends”, “estimates”, or “anticipates”, and other comparable terminology.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those described in the forward-looking statements. These factors are discussed in greater detail in the Company’s Form 10-K as filed with the Securities Exchange Commission.

enterprise value

900

750

600

450

300

150

-

132% increase

Dollar (millions)

March 31, 2006

March 31, 1997

Market capitalization plus long-term debt, less cash and cash equivalents

Enterprise Value

deltic timber share price nyse del

$65.00

$55.00

$45.00

$35.00

$25.00

$15.00

01/02/97 12/31/98 12/31/00 12/31/02 12/31/04 3/31/06

Deltic Timber Share Price(NYSE – DEL)
shareholder return 1 1 1997 3 31 2006

350%

300%

250%

200%

150%

100%

50%

0%

DEL

Russell

2000

S&P 500

Paper &

Forest

Products

S&P 500

Dividends reinvested

Shareholder Return(1/1/1997 – 3/31/2006)

value of land and timber ownership
Value of Landand Timber Ownership
  • Consistent earnings and cash flows
  • Integration with sawmills
  • Higher and better use potential
  • Hunting lease and oil & gas income
timberland ownership

450

28% increase

400

Acres (thousands)

350

300

250

January 1, 1997

December 31, 2005

TimberlandOwnership
timberland profile december 31 2005

Pine plantations

156,200

Hardwood forest

23,500

Other

41,900

Pine Forest

216,100

Timberland ProfileDecember 31, 2005

437,700 Acres

pine sawtimber inventory

12

11

10

Tons (millions)

9

8

1997

1998

1999

2000

2001

2002

2003

2004

2005

Pine Sawtimber Inventory
slide11

4,000/acre

6,000/acre

Thornburg

10,000/acre

Hwy 9

Lake

Maumelle

14.5 miles

21,200/acre

15,700/acre

Ferguson

Ranch

Paron

39,000/acre

31,000/acre

235,000/acre

Hwy 10

211,000/acre

9,000/acre

6,000/acre

Chenal Pkwy

Kanis Rd

41,000/acre

27,500/acre

13,000/acre

27,700/acre

15,000/acre

34,500/acre

21.5 miles

Chenal Valley

Comparable Sales

Deltic Timberland (Approx. 58,000 acres)

Deltic Sales

Potential Higher and Better Use Lands

hunting lease and oil gas income

2,500

54% Increase

2,000

1,500

Dollars (thousands)

1,000

500

-

2005

2002

2003

2004

Hunting Lease andOil & Gas Income
deltic timberlands near the fayetteville shale area

Generalized

Boundary of

Fayetteville

Shale Play

Surface Acres

Owned:

0-5,000

5,000-10,000

10,000-15,000

15,000-20,000

>20,000

Deltic Timberlands Near the Fayetteville Shale Area

woodlands segment net sales and operating income

Net Sales

Operating Income

24

36

22

34

Dollars (millions)

Dollars (millions)

20

32

18

30

16

28

2005

2004

2004

2005

Woodlands SegmentNet Sales and Operating Income
value of manufacturing operations
Value of ManufacturingOperations
  • Value added to timberland ownership

Logs must be converted into lumber

Hedge against lower stumpage prices

  • Generally provides positive cash flow
slide16

450

425

400

375

350

325

300

275

250

$ per MBF

1Q99 1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06

Composite lumber price

Trend line

Source: RandomLengths

Six-year average manufacturing cost of comparable mills

Composite Lumber Price

slide17

18% increase

2005

2002

2003

2004

Average Log Cost

60

55

50

45

40

Dollars per ton

mill modernization projects 2003 2005
Ola Mill

($6.5 million)

J-hook sorter system

Unscrambler & trimmer

Trimmer optimizer

Planermill tilt hoist

Automated grading

system

Sawmill breakdown modification

Waldo Mill

($12.4 million)

J-hook sorter system

Curve-sawing gang

Third boiler

Upgrade kilns

Automated grading

system

Step feeder

Mill ModernizationProjects (2003 – 2005)
hourly production rate

40,000

36,000

32,000

28,000

24,000

44% increase

29% Increase

Board Feet per Hour

2005

2006E

2002

2003

2004

Hourly Production Rate
annual lumber production

325

300

275

250

225

200

175

53% Increase

Million Board Feet

2002

2003

2004

2005

2006E

Annual LumberProduction
lumber recovery ratio tons of logs used to produce each mbf of lumber

4.35

4.30

4.25

4.20

4.15

Tons per MBF

2003

2004

2005

2006E

Lumber RecoveryRatio(Tons of Logs Used to Produce each MBF of Lumber)
slide22

Net Sales

Operating Income

130

115

100

85

70

7

6

5

4

3

Dollars (millions)

Dollars (millions)

2004

2005

2005

2004

Mills SegmentNet Sales and Operating Income

value of real estate development
Value of Real EstateDevelopment

Prime example of higher and better use land

Natural diversification for a timber company

  • Consistently generates income

Attracts a broader class of shareholders

mortgage interest rates 30 year fixed rate mortgage

7.50%

7.00%

6.50%

6.00%

5.50%

5.00%

Jan- Jul- Jan- Jul- Jan- Jul- Jan- Jul- Jan- Dec-

02 02 03 03 04 04 05 05 06 06E

Source: Freddie Mac and National Association of Realtors

Trend line

Mortgage interest rate

Mortgage Interest Rates30-Year Fixed Rate Mortgage

u s housing starts
U.S. Housing Starts

2.10

2.00

1.90

1.80

1.70

1.60

1.50

Units (millions)

2005

2006E

2003

2004

2002

Source: U.S. Bureau of the Census (Construction Reports) and National Association of Realtors

residential lot sales

300

250

200

150

100

50

0

Lots

2005

2006E

2003

2004

2002

Residential Lot Sales
residential lot prices average per lot

100,000

90,000

80,000

70,000

60,000

Dollars

2005

2006E

2003

2004

2002

Residential Lot Prices(Average per lot)
commercial acreage sales

80

60

40

20

0

Acres

2005

2006E

2003

2004

2002

Commercial Acreage Sales
commercial acreage prices average per acre

1,000

800

600

400

200

-

Dollars (thousands)

2005

2006E

2002

2004

2003

CommercialAcreage Prices(Average per Acre)
chenal valley development
Chenal ValleyDevelopment

(December 31, 2005)

Commercial

Residential

16

272

264

1.914

2,314

470

4,500 Lots*

750 Acres*

Undeveloped

Sold

Developed/Unsold

* Approximate

red development area

RED Development Site

Existing Commercial

Village at Rahling Road

Bank Site

Future Commercial

RED Development Area

Chenal Valley

Little Rock, Arkansas

(15 Acres)

Bank

Site

Village

At Rahling

Road

Future

Commercial

(125 Acres)

Promenade

At Chenal

GMAC

real estate segment net sales and operating income

Net Sales

Operating Income

33

32

31

30

29

11

10

9

8

7

Dollars (millions)

Dollars (millions)

2004

2005

2005

2004

Real Estate SegmentNet Sales and Operating Income
slide33

12

4

(4)

(12)

(20)

Dollars (millions)

2005

2003

2004

2002

Operating Results

Cash Flow

Del-Tin FiberFinancial Performance

consolidated net sales

175

150

125

100

19% increase

5.3% increase

Dollars (millions)

29% increase

2002

2003

2004

2005

Consolidated Net Sales
consolidated net income

15

10

5

-

(5)

31% increase

35% increase

Dollars (millions)

2002*

2005

2003

2004

* Excludes write-off of Deltic’s investment in Del-Tin Fiber of $11.4 million net of income tax impact

Consolidated Net Income
cash flow versus capital expenditures

45

40

35

30

25

20

Dollars (millions)

2005

2003

2004

2002

Cash Flow

Capital Expenditures

Cash Flow versusCapital Expenditures
capital expenditures

Corporate

1%

Woodlands

18%

Real Estate

59%

Mills

22%

Capital Expenditures

2006 Budget

long term debt

120

100

80

60

$29.4 million

decrease

$11.2 million

decrease

$3.5 million

decrease

Dollars (millions)

12/31/2002

12/31/2003

12/31/2004

12/31/2005

3/31/2006

Long-Term Debt
debt to capital employed december 31 2005

75%

50%

25%

0%

DEL

LPX

PCH

GEF

TIN

WY

LFB

PCL

GP

IP

POP

Debt to Capital EmployedDecember 31, 2005
first quarter financial results

Net Sales

Net Income

42

4.0

3.0

2.0

1.0

-

41

Dollars (millions)

Dollars (millions)

40

39

38

1Q2005

1Q2006

1Q2005

1Q2006

First QuarterFinancial Results