Enlow named president of Deltic Timber
EL DORADO — John D. Enlow was named as president and chief executive officer of Deltic Timber Corp., during an early morning Deltic conference call on Monday.
“We are very pleased to have separately announced today (Monday) that John Enlow has been appointed president and chief executive officer of Deltic, effective March 8,” said Mark Leland, Deltic’s interim president and chief executive officer. Deltic’s former president, Ray C. Dillon, announced in October 2016, that he planned to retire from the position.
“John has more than 25 years of experience in the natural resources industry and we are confident he brings valuable expertise and leadership skills to Deltic,” Leland said.
Enlow, 49, most recently served as vice president, real estate and southern timberlands at Weyerhaeuser from 2014 to 2016, after serving over 16 years in various roles at Rayonier Inc. of Jacksonville, Florida.
“We are pleased to welcome a proven leader of John’s caliber and experience to the Deltic team,” said Robert Nolan, chairman of the Deltic board. “John’s broad industry expertise in forestry, real estate development, finance and operations will be invaluable as the company continues to capitalize on momentum in the housing and wood products markets.
“Deltic has a strong foundation in place and we are confident that, under John’s leadership, Deltic will continue to deliver high quality products, achieve strong financial and operational performance and enhance shareholder value,” Nolan said.
According to a U.S. Securities and Exchange Commission filing dated Feb. 27 by Deltic, Enlow began his professional career at Union Camp Corp., where he was employed from 1990 to 1997. He currently serves as a member of the board of directors of the Georgia Forestry Association Wood Supply Research Institute and Forest Resources Association. Enlow received his bachelor’s degree in forestry from Mississippi State University in 1990 and his master’s degree from Brenau University in 1992.
He will receive an annual base salary of $500,000 and a target annual incentive opportunity equal to 85 percent of his base salary. He will receive a sign-on bonus of $75,000 and a sign-on equity award with an aggregate value of $650,000, according to the SEC filing.
Fourth quarter and 2016 financial report Also during the conference call Monday morning, the company announced that net sales for the fourth quarter 2016 and the entire year, were up from 2015, according to a news release from the company.
For the fourth quarter 2016, net sales totaled $58.5 million, up 17.8 percent from $49.7 million for the prior-year fourth quarter and net income was $3.1 million, or 26 cents per diluted share, versus a net loss of $.1 million, or one cent per diluted share, for the same period of 2015. Net cash provided by operating activities was $15.3
million, compared to $6.1 million in the fourth quarter of 2015.
For the full year 2016, net sales totaled $219.4 million, up 13.2 percent from $193.9 million for 2015 and net income was $9.2 million, an increase of $6.5 million, or 42 percent, when compared to $2.7 million net income for full-year 2015. Net income per diluted share was 76 cents, an increase of 55 cents per share, when compared to net income per diluted share for full-year 2015. Net cash provided by operating activities was $43.6 million, an increase of $13.9 million from a year ago.
According to a news release from Deltic, the improved financial results for the fourth quarter of 2016 were primarily due to increased operating income in the company’s Manufacturing and Real Estate segments resulting from: (1) a higher average sales price for both lumber and medium density fiberboard, (2) increased sales volume of MDF, (3) improved operating performance at the company’s MDF plant, (4) the sale of two commercial real estate sites totaling 23.15 acres, and (5) the sale of 77 residential lots during the fourth quarter of 2016.
These improvements were partially offset by increased corporate segment general and administrative expense primarily related to the retirement of the company’s former president and CEO, Ray C. Dillon, during the quarter.
“With Deltic’s well positioned asset base and exceptional team, we achieved another quarter of solid operating and financial performance,” Leland said.
“We achieved outstanding results in our Real Estate Segment in the fourth quarter, which included closing on the sale of two separate commercial real estate sites in the company’s Chenal Valley development and the sale of 77 residential lots. We are pleased to see demand for our mid-market lots remaining strong and we are currently developing additional lots for sale as soon as late spring,” Leland said.
“In addition, we further capitalized on the improved markets for lumber and MDF. We achieved a 17 percent increase in average sales price for lumber sold compared to the fourth quarter a year ago. The slightly higher average sales price received for MDF sold during the fourth quarter of 2016, was on top of a 7 percent year-over-year increase in MDF sales volume achieved in the fourth quarter of 2015,” he said.
“Del-Tin Fiber has improved its operating performance and we expect to see even further improvement following the arrival and installation of the plant’s new press chains, which we expect to occur in the third quarter of this year. The new small-log line at our Ola Mill is complete and operating and we are working to process various mixes of pine sawtimber and smallwood to identify the most efficient blends of these raw materials for the mill,” Leland said.
“In the Woodlands segment, we not only achieved our planned annual harvest volume of pine sawtimber, we also took advantage of favorable logging conditions to harvest a small amount in excess of our annual harvest plan from our South Arkansas timberland. While markets for pine pulpwood remained soft, we were able to harvest and sell an increased volume of this fiber, helping to maintain the health of our forest,” he said.
“As part of our commitment to return value to our shareholders, we repurchased 32,309 common shares for $1.9 million during the fourth quarter, bringing our total repurchases for the full year to 309,739 common shares for $17 million,” Leland said.
The Monday conference call to review fourth quarter results can be accessed through the Deltic website at www.deltic.com. Online replays of the call will be available until Friday by dialing 1-888-843-7419 and referencing replay passcode identification number 44184389.