Deltic Timber Reports Q4 EPS Of $0.10 Vs. $0.30 Prior, Revenues +8% Vs. Prior to $33.7M (DEL)

Deltic Timber DEL Reports Q4 EPS Of $0.10 Vs. $0.30 Prior, Revenues +8% Vs. Prior to $33.7M President and Chief Executive Officer, Ray C. Dillon, of Deltic Timber Corporation announced today that net income for the fourth quarter and year of 2010 totaled $1.3 million, $.10 a share, and $12.4 million, $.99 a share, respectively. These results compare to net income of $3.7 million, $.30 a share, for both the fourth quarter and year of 2009. The decrease in fourth quarter earnings, when compared to the prior year, was primarily due to the sale of a 17.76-acre commercial real estate site in 2009, while there were no sales of commercial real estate in the fourth quarter of 2010. Net cash provided by operating activities was $2.4 million for the fourth quarter of 2010, and $28.9 million for the twelve months ended December 31, 2010, which compares to $4.7 million in the fourth quarter of 2009, and $16.9 million for the year of 2009. Commenting on the results, Mr. Dillon stated, “Our excellent portfolio of diverse assets continued to respond well in these difficult times, and we reported profitable financial results for the seventh consecutive quarter, despite the overall depressed environment for both the forest and building products and residential and commercial real estate development businesses. The Company's financial results for 2010 were outstanding, especially when current economic conditions are taken into account. Among the significant highlights for the year were: (1) an increase in the pine sawtimber harvest level as a result of recent acquisitions and biological growth; (2) the sale of 4,061 acres of recreational-use hardwood bottomland; (3) a $1.7 million increase in oil and gas revenues, as more gas wells were drilled in the Fayetteville Shale area; (4) the ability to capitalize on a temporary supply-side driven improvement in lumber prices, as we were able to supply logs to our mills from our fee timberlands enabling the mills to operate additional hours and increase production in response to market demand; (5) the ability of Del-Tin Fiber, our medium density fiberboard joint venture, to increase production of MDF to be used in moldings after an earthquake in Chile interrupted the supply of moldings normally imported into the United States; and (6) the 19-acre commercial real estate sale in Chenal Valley to a major healthcare provider, the second of a two-part transaction in which the buyer previously purchased 17.76 acres in the fourth quarter of 2009. These sales are bringing additional interest to our acreage adjacent to this site and will further increase the value of our real estate holdings.”