Document


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
  
 
Date of Report (Date of Earliest Event Reported) November 7, 2016
 
 
Pope Resources, A Delaware Limited Partnership
(Exact name of registrant as specified in its charter)
  
 
Delaware
(State or other jurisdiction of
incorporation or organization)
91-1313292
(I.R.S. Employer
Identification No.)
 
  
19550 Seventh Avenue NE, Poulsbo, Washington       98370
(Address of principal executive offices)                (ZIP Code)
 
 
Registrant's telephone number, including area code (360) 697-6626

 
 
NOT APPLICABLE
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (SEE General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





INFORMATION TO BE INCLUDED IN THE REPORT
 
 
Item 2.02
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
  

On November 7, 2016, the registrant issued a press release relating to its earnings for the quarter ended September 30, 2016. A copy of that press release is furnished herewith as Exhibit 99.1.
   
Item 9.01.
FINANCIAL STATEMENTS AND EXHIBITS

The information included in Exhibit 99.1 pursuant to Item 9.01 of this Current Report on Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
  
Exhibit No.
Description
 
 
99.1
Press release of the registrant dated November 7, 2016.
  
SIGNATURES 
 
Pursuant to the requirements of Section 13 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. 
 
 
POPE RESOURCES, A DELAWARE LIMITED PARTNERSHIP
 
 
 
 
 
 
DATE: November 7, 2016
BY:  
/s/ John D. Lamb
 
 
John D. Lamb
 
 
Vice President and Chief Financial Officer, Pope Resources, A Delaware Limited Partnership, and Pope MGP, Inc., General Partner





Exhibit 99.1
Press Release of the Registrant dated November 7, 2016



Exhibit
POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016



https://cdn.kscope.io/68d485182ac2c9515be6586aabf01268-popelogoa11.jpg
Contact: John Lamb
VP & CFO
360.697.6626
investors@orminc.com

NEWS RELEASE

FOR IMMEDIATE RELEASE                             NASDAQ:POPE

POULSBO, Wash.
November 7, 2016

POPE RESOURCES REPORTS THIRD QUARTER INCOME OF $2.0 MILLION

Pope Resources (NASDAQ:POPE) reported net income attributable to unitholders of $2.0 million, or $0.45 per ownership unit, on revenue of $13.2 million for the quarter ended September 30, 2016. This compares to net income attributable to unitholders of $615,000, or $0.13 per ownership unit, on revenue of $15.2 million for the comparable period in 2015.

Net income attributable to unitholders for the nine months ended September 30, 2016 totaled $1.4 million, or $0.30 per ownership unit, on revenue of $37.0 million. For the nine months ended September 30, 2015 the Partnership reported net income attributable to unitholders of $8.7 million, or $2.01 per ownership unit, on revenue of $56.0 million.

Cash used in operations for the quarter ended September 30, 2016 was $4.7 million, compared to cash provided by operations of $4.7 million for the third quarter of 2015. For the nine months ended September 30, 2016, cash used in operations was $9.0 million, compared to cash provided by operations of $16.9 million in 2015.

“Our overall average log price realizations remained relatively flat compared to the previous several quarters," said Tom Ringo, President and CEO, "though we started to ramp up harvest volume at the tail end of the quarter in anticipation of modest price appreciation over the next several months. Meanwhile, our Real Estate segment closed on two sales of undeveloped land in Q3 and invested $4.8 million in our Harbor Hill project to prepare for the anticipated sale of up to 127 residential lots in the fourth quarter. The most noteworthy event of the quarter was the 7,324-acre Carbon River tree farm acquisition that closed in July. Pairing Carbon River with a series of other small-tract timberland acquisitions completed of late underscores the significant progress we are making toward our objective to grow the Partnership's land base as an engine for future earnings and distributions."

Third quarter highlights

Harvest volume was 17.0 MMBF in Q3 2016 compared to 17.8 MMBF in Q3 2015, a 4% decrease. Harvest volume for the first nine months of 2016 was 53.6 MMBF compared to 57.4 MMBF for 2015, a 7% decrease. These harvest volume figures do not include timber deed sales of 1.3 MMBF

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POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


in Q3 2016 and 0.6 MMBF in Q1 2015. The harvest volume and log price realization metrics cited below also exclude these timber deed sales, except as noted otherwise.
Average realized log price per thousand board feet (MBF) was $573 in Q3 2016 compared to $579 per MBF in Q3 2015. For the first nine months of 2016, the average realized log price was $574 per MBF compared to $587 per MBF for 2015.
As a percentage of total harvest, volume sold to export markets in Q3 2016 decreased to 16% from 26% in Q3 2015, while the mix of volume sold to domestic markets was 65% in Q3 2016 compared to 53% in Q3 2015. For the first nine months of 2016, the relative percentages of volume sold to export and domestic markets were 16% and 64%, respectively, compared to 20% and 58%, respectively, in 2015. Hardwood, cedar and pulpwood log sales make up the balance of harvest volume.
As noted last quarter, in July the Partnership closed on a 7,324-acre timberland acquisition for $32.0 million consisting of 6,746 owned acres and a timber deed on 578 acres that expires in 2051.
The Partnership closed on the sale of two parcels of undeveloped land comprising 265 acres for $1.7 million.

Third quarter and year-to-date operating results

Fee Timber:
Fee Timber operating income for Q3 2016 was $3.3 million compared to $1.3 million for Q3 2015. Our Q3 2015 results reflect a $1.1 million loss on the sale of 858 acres from Fund III's timberland, and the absence of a counterpart in our Q3 2016 results is the primary reason for the improvement in operating income. Q3 2016 includes the sale of 1.3 MMBF of timber via timber deed sales from both Partnership and Fund tree farms that had no counterpart in Q3 2015. A 3% increase in harvest volume (including volume from timber deed sales) was partially offset by a 1% decrease in average realized log prices. A $391,000 decrease in operating expenses also helped improve operating income.

Fee Timber operating income for the first nine months of 2016 was $8.8 million compared to $7.8 million in 2015, due to 2015 results including a $1.1 million loss on sale of 858 acres from Fund III's timberland, compared to 2016 results which include a $226,000 gain on sale of 205 acres of Fund timberland. Excluding these timberland sales, Fee Timber operating income was $8.5 million in 2016 and $8.9 million in 2015. This decrease resulted from a 5% decrease in harvest volume (including timber deed sales), a 2% decline in average realized log prices, and a decrease in other revenue from a lack of commercial thinning activity in the current year. These factors were offset partially by a 15% decrease in cost of sales, driven by a combination of lower harvest volume and a lower average depletion rate as we harvested more volume from Partnership tree farms in 2016, which have a lower average depletion rate than Fund tree farms.

Since the October 2015 expiration of the Softwood Lumber Agreement (SLA), Canadian lumber has been sold duty-free into the U.S. market. The combination of this duty-free entry and a weak Canadian currency has boosted Canadian exports of softwood lumber to the U.S. during the first eight months of 2016 by 34% over the corresponding period of 2015, based on data from the U.S. Census Bureau. The influx of Canadian lumber has played a role in keeping log prices in check when compared to last year.

Timberland Management:
Operating losses incurred by this segment for Q3 2016 and Q3 2015 totaled $644,000 and $494,000, respectively, after eliminating revenue earned from managing the Funds of $772,000 and $779,000 for Q3 2016 and Q3 2015, respectively. The increase in operating loss is attributable to costs associated with our fourth timber fund which we expect to launch by the end of 2016.

2

POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


Operating losses incurred by this segment for first nine months of 2016 and 2015 totaled $1.9 million and $2.0 million, respectively, after eliminating management fees earned from the Funds of $2.4 million for each of the first nine months of 2016 and 2015.

Real Estate:
Our Real Estate segment posted operating income of $463,000 for Q3 2016 compared to an operating loss of $503,000 for Q3 2015. In Q3 2016, we closed on the sale of two parcels of undeveloped land comprising 265 acres for $1.7 million ($6,600 per acre). In Q3 2015, we closed on the sale of a parcel zoned for multi-family residential use from our Harbor Hill development. 

For the first nine months of 2016, the Real Estate segment reported an operating loss of $1.7 million, having sold only nine single-family residential lots from our Harbor Hill development and the two parcels of undeveloped land noted above. This compares to 2015 operating income of $5.2 million in 2015, driven primarily by the sale of 75 residential lots from Harbor Hill for $9.0 million and on $6.6 million of conservation land and easement sales covering 3,861 acres.

General & Administrative (G&A):
G&A expenses were $1.2 million for both of Q3 2016 and 2015. For the first nine months of 2016 and 2015, G&A expenses were $3.8 million and $3.6 million, respectively. The increase in 2016 is due primarily to being fully staffed relative to the prior year.

Outlook

Over the course of 2016, we have made investments that we believe will pay off in the fourth quarter.  In our Fee Timber segment, we expect to realize over 40% of our planned annual harvest volume in the fourth quarter. This back-end loading of our 2016 harvest is timed to coincide with anticipated log pricing improvement, consistent with typical seasonal patterns.  We expect our total 2016 harvest volume to be between 96 and 100 MMBF, including timber deed sales. In our Real Estate segment, we have invested nearly $10 million in our Harbor Hill project this year in order to close on the anticipated sale of up to 127 residential lots in the fourth quarter.

The financial schedules accompanying this earnings release provide detail on individual segment results and operating statistics.

About Pope Resources

Pope Resources, a publicly traded limited partnership, and its subsidiaries Olympic Resource Management and Olympic Property Group, own or manage 217,000 acres of timberland and development property in Washington, Oregon, and California. We also manage, co-invest in, and consolidate two private equity timber funds, for which we earn management fees. These funds provide an efficient means of investing our own capital in Pacific Northwest timberland while earning fees from managing the funds for third-party investors. The Partnership and its predecessor companies have owned and managed timberlands and development properties for over 160 years. Additional information on the company can be found at www.poperesources.com. The contents of our website are not incorporated into this release or into our filings with the Securities and Exchange Commission.

Forward Looking Statements

This press release contains a number of projections and statements about our expected financial condition, operating results, business plans and objectives, and about management's plans for future operations and

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POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


strategies. These statements reflect management's estimates based on current goals and its expectations about future developments. Because these statements describe our goals, objectives, and anticipated performance, they are inherently uncertain, and some or all of these statements may not come to pass. Accordingly, they should not be interpreted as promises of future management actions or financial performance. Our future actions and actual performance will vary from current expectations and under various circumstances the results of these variations may be material and adverse. Among those forward-looking statements contained in this report are statements about management’s expectations for future log prices, harvest volumes and markets, and statements about our expectations for future sales in our Real Estate segment. However, readers should note that all statements other than expressions of historical fact are forward-looking in nature. Some of the factors that may cause actual operating results and financial condition to fall short of expectations, or that may cause us to deviate from our current plans, include our ability to accurately predict fluctuations in log markets domestically and internationally, and to adjust our harvest volumes timely and appropriately; our ability to anticipate and manage interest rate risk as it affects our borrowing costs; fluctuations in interest rates that affect the U.S. housing market and related demand for our products from that market; our ability to estimate the cost of ongoing and changing environmental remediation obligations, including our ability to anticipate and address the political and regulatory climate that affects these obligations; our ability to consummate various pending and anticipated real estate transactions on the terms management expects; our ability to manage our timber funds and their assets in a manner that our investors consider acceptable, and to raise additional capital or establish new funds on terms that are advantageous to the Partnership; conditions in the housing construction and wood-products markets, both domestically and globally, that affect demand for our products; the effects of competition, particularly by larger and better-financed competitors; fluctuations in foreign currency exchange rates that affect both competition for sales of our products and our customers’ demand for them; the effect of treaties and other international agreements that affect the supply of logs in the United States and demand for logs overseas; conditions affecting credit markets as they affect the availability of capital and costs of borrowing; labor, equipment and transportation costs that affect our net income; our ability to anticipate and mitigate potential impacts of our operations on adjacent properties; the impacts of natural disasters on our timberlands and on surrounding areas; and our ability to discover and to accurately estimate other liabilities associated with our assets. Other factors are set forth in that part of our Annual Report on Form 10-K entitled “Risk Factors.”

Other issues that may have an adverse and material impact on our business, operating results, and financial condition include those risks and uncertainties discussed in our other filings with the Securities and Exchange Commission. Forward-looking statements in this release are made only as of the date shown above, and we cannot undertake to update these statements.




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POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(all amounts in $000's, except per unit amounts)
 
 
 
 
 
 
 
 
 
Quarter ended September 30,
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
Revenue
$
13,178

 
$
15,208

 
$
36,960

 
$
56,020

Cost of sales
(6,211
)
 
(9,746
)
 
(20,822
)
 
(33,058
)
Operating expenses
(4,982
)
 
(5,232
)
 
(15,059
)
 
(14,479
)
Gain (loss) on sale of timberland

 
(1,103
)
 
226

 
(1,103
)
Operating income (loss)
1,985

 
(873
)
 
1,305

 
7,380

Interest expense, net
(953
)
 
(726
)
 
(2,358
)
 
(2,248
)
Income (loss) before income taxes
1,032

 
(1,599
)
 
(1,053
)
 
5,132

Income tax expense
(116
)
 
(1
)
 
(166
)
 
(369
)
Net income (loss)
916

 
(1,600
)
 
(1,219
)
 
4,763

Net loss attributable to noncontrolling interests
1,054

 
2,215

 
2,590

 
3,950

Net income attributable to Pope Resources' unitholders
$
1,970

 
$
615

 
$
1,371

 
$
8,713

 
 
 
 
 
 
 
 
Basic and diluted weighted average units outstanding
4,312

 
4,298

 
4,312

 
4,297

 
 
 
 
 
 
 
 
Basic and diluted earnings per unit
$
0.45

 
$
0.13

 
$
0.30

 
$
2.01



5

POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


CONDENSED CONSOLIDATING BALANCE SHEETS
(all amounts in $000's)
 
 
 
 
 
 
 
 
 
 
 
September 30, 2016
 
December 31, 2015
Assets:
Pope
 
ORM
Timber Funds
 
Consolidating Entries
 
 Consolidated
 
 
Cash and cash equivalents
$
2,078

 
$
1,376

 
$

 
$
3,454

 
$
9,706

Land held for sale
10,750

 


 


 
10,750

 
3,642

Other current assets
5,321

 
908

 
(646
)
 
5,583

 
4,048

  Total current assets
18,149

 
2,284

 
(646
)
 
19,787

 
17,396

Timber and roads, net
62,183

 
228,621

 


 
290,804

 
266,104

Timberland
17,875

 
38,996

 


 
56,871

 
53,879

Land held for development
28,005

 


 


 
28,005

 
25,653

Buildings and equipment, net
5,683

 
14

 


 
5,697

 
6,024

Investment in ORM Timber Funds
18,213

 


 
(18,213
)
 

 

Deposit for acquisition of timberland
265

 
 
 
 
 
265

 

Other assets
918

 


 


 
918

 
1,000

    Total assets
$
151,291

 
$
269,915

 
$
(18,859
)
 
$
402,347

 
$
370,056

 
 
 
 
 
 
 
 
 
 
Liabilities and equity:
 
 
 
 
 
 
 
 
 
Current liabilities
$
5,465

 
$
1,892

 
$
(646
)
 
$
6,711

 
$
5,426

Current portion of long-term debt
5,118

 
 
 


 
5,118

 
114

Current portion of environmental remediation
10,254

 


 


 
10,254

 
11,200

  Total current liabilities
20,837

 
1,892

 
(646
)
 
22,083

 
16,740

Long-term debt
71,382

 
57,263

 


 
128,645

 
84,537

Environmental remediation and other long-term liabilities
1,354

 


 


 
1,354

 
5,713

  Total liabilities
93,573

 
59,155

 
(646
)
 
152,082

 
106,990

Partners' capital
57,718

 
210,760

 
(211,088
)
 
57,390

 
64,548

Noncontrolling interests
 
 
 
 
192,875

 
192,875

 
198,518

    Total liabilities and equity
$
151,291

 
$
269,915

 
$
(18,859
)
 
$
402,347

 
$
370,056



6

POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


RECONCILIATION BETWEEN NET INCOME (LOSS) AND CASH FLOWS FROM OPERATIONS
(all amounts in $000's)
 
 
 
 
 
 
 
 
 
Quarter ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
Net income (loss)
$
916

 
$
(1,600
)
 
$
(1,219
)
 
$
4,763

Add back (deduct):
 
 
 
 
 
 
 
Depletion
1,908

 
2,250

 
6,101

 
7,198

Equity-based compensation
162

 
142

 
756

 
722

Excess tax benefit of equity-based compensation

 

 

 
(5
)
Real estate project expenditures
(5,373
)
 
(2,438
)
 
(10,598
)
 
(7,053
)
Depreciation and amortization
183

 
152

 
554

 
466

Deferred taxes
49

 
(4
)
 
49

 
199

Cost of land sold
102

 
2,743

 
1,139

 
9,246

(Gain) loss on sale of timberland

 
1,103

 
(226
)
 
1,103

Gain on disposal of property and equipment

 

 
(24
)
 

Change in environmental remediation liability
(1,105
)
 
(1,007
)
 
(5,280
)
 
(1,579
)
Change in other operating accounts
(1,502
)
 
3,370

 
(209
)
 
1,843

Cash provided by (used in) operations
$
(4,660
)
 
$
4,711

 
$
(8,957
)
 
$
16,903


SEGMENT INFORMATION
(all amounts in $000's)
 
 
 
 
 
 
 
 
 
Quarter ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
Partnership Fee Timber
$
7,834

 
$
6,406

 
$
20,358

 
$
19,967

Funds Fee Timber
3,231

 
4,910

 
12,729

 
16,567

    Total Fee Timber
11,065

 
11,316

 
33,087

 
36,534

Timberland Management

 

 
8

 

Real Estate
2,113

 
3,892

 
3,865

 
19,486

    Total
$
13,178

 
$
15,208

 
$
36,960

 
$
56,020

Operating income (loss):
 
 
 
 
 
 
 
Fee Timber
$
3,317

 
$
1,326

 
$
8,770

 
$
7,774

Timberland Management
(644
)
 
(494
)
 
(1,913
)
 
(2,008
)
Real Estate
463

 
(503
)
 
(1,738
)
 
5,204

General & Administrative
(1,151
)
 
(1,202
)
 
(3,814
)
 
(3,590
)
    Total
$
1,985

 
$
(873
)
 
$
1,305

 
$
7,380



7

POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


SELECTED STATISTICS
 
 
 
 
 
 
 
 
 
Quarter ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Log sale volumes by species (million board feet):
 
 
 
 
 
 
 
Sawlogs
 
 
 
 
 
 
 
Douglas-fir
9.8

 
9.9

 
27.9

 
29.0

Whitewood
3.0

 
3.5

 
11.1

 
12.4

Pine
0.5

 
0.1

 
1.7

 
1.3

Cedar
0.5

 
0.6

 
2.5

 
2.3

Hardwood
0.8

 
0.7

 
2.0

 
2.6

Pulpwood - all species
2.4

 
3.0

 
8.4

 
9.8

Total
17.0

 
17.8

 
53.6

 
57.4

 
 
 
 
 
 
 
 
Log sale volumes by destination (million board feet):
 
 
 
 
 
 
 
Export
2.8

 
4.7

 
8.9

 
11.5

Domestic
11.0

 
9.4

 
34.3

 
33.5

Hardwood
0.8

 
0.7

 
2.0

 
2.6

Pulpwood
2.4

 
3.0

 
8.4

 
9.8

Subtotal log sale volumes
17.0

 
17.8

 
53.6

 
57.4

Timber deed sale
1.3

 

 
1.3

 
0.6

Total
18.3

 
17.8

 
54.9

 
58.0



8

POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


Average price realizations by species (per thousand board feet):
Quarter ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
Sawlogs
 
 
 
 
 
 
 
Douglas-fir
$
629

 
$
623

 
$
615

 
$
627

Whitewood
506

 
522

 
524

 
542

Pine
418

 
420

 
478

 
539

Cedar
1,321

 
1,426

 
1,370

 
1,405

Hardwood
640

 
559

 
571

 
606

Pulpwood - all species
284

 
349

 
296

 
332

Overall
573

 
579

 
574

 
587

 
 
 
 
 
 
 
 
Average price realizations by destination (per thousand board feet):
 
 
 
 
 
 
 
Export
$
621

 
$
616

 
$
631

 
$
634

Domestic
621

 
638

 
629

 
645

Hardwood
640

 
559

 
571

 
606

Pulpwood
284

 
346

 
296

 
332

Overall log sales
573

 
579

 
574

 
587

Timber deed sale
381

 

 
381

 
389

 
 
 
 
 
 
 
 
Owned timber acres
119,000

 
111,000

 
119,000

 
111,000

Acres owned by Funds
94,000

 
79,000

 
94,000

 
79,000

Depletion expense per MBF - Partnership tree farms
$
67

 
$
47

 
$
52

 
$
47

Depletion expense per MBF - Fund tree farms
$
181

 
$
212

 
$
196

 
$
197

Capital and development expenditures ($000's)
$
5,750

 
$
2,844

 
$
12,033

 
$
8,723



9

POPE RESOURCES REPORTS SECOND QUARTER 2016 EARNINGS
November 7, 2016


PERIOD TO PERIOD COMPARISONS
(Amounts in $000's except per unit data)
 
 
 
 
 
Q3 2016 vs.
 
YTD 2016 vs.
 
Q3 2015
 
YTD 2015
Net income attributable to Pope Resources' unitholders:
 
 
 
3rd Quarter 2016
$
1,970

 
$
1,371

3rd Quarter 2015
615

 
8,713

   Variance
$
1,355

 
$
(7,342
)
 
 
 
 
Detail of earnings variance:
 
 
 
Fee Timber
 
 
 
Log volumes (A)
$
(463
)
 
$
(2,231
)
Log price realizations (B)
(102
)
 
(697
)
Gain/loss on sale of timberland
1,103

 
1,329

Timber deed sale
485

 
255

Production costs
405

 
2,291

Depletion
343

 
1,018

Other Fee Timber
220

 
(969
)
Timberland Management
(150
)
 
95

Real Estate
 
 
 
Land sales
(493
)
 
(3,827
)
Conservation easement sales

 
(4,311
)
Other Real Estate
1,459

 
1,196

General & Administrative costs
51

 
(224
)
Net interest expense
(227
)
 
(110
)
Income taxes
(115
)
 
203

Noncontrolling interest
(1,161
)
 
(1,360
)
Total variance
$
1,355

 
$
(7,342
)

(A) Volume variance calculated by extending change in sales volume by the average log sales price for the comparison period.
(B) Price variance calculated by extending the change in average realized price by current period volume.


10