Pope Resources Reports Fourth Quarter Earnings of $7.8 Million

  
    
  
  
    
      Pope Resources (Nasdaq:POPEZ) reported net income of $7.8 million, or 
      $1.63 per diluted ownership unit, on revenues of $16.5 million for the 
      quarter ended December 31, 2006. This compares to net income of $0.9 
      million, or 18 cents per diluted ownership unit, on revenues of $8.9 
      million for the quarter ended December 31, 2005.
    
    
      Net income for the year ended December 31, 2006, totaled $24.9 million, 
      or $5.23 per diluted ownership unit, on revenues of $66.3 million. For 
      the corresponding period in 2005, net income totaled $13.7 million, or 
      $2.88 per diluted ownership unit, on revenues of $57.0 million.
    
    
      Earnings before interest, income tax, depreciation, depletion, and 
      amortization (EBITDDA) for the quarter ended December 31, 2006, were 
      $8.5 million, compared to $2.9 million for the fourth quarter of 2005. 
      For the year ended December 31, 2006, EBITDDA was $33.2 million, 
      compared to $28.4 million in 2005.
    
    
      “We enjoyed record results in 2006, thanks to 
      a series of major real estate sales that closed following years of 
      effort and planning,” said David L. Nunes, 
      President and CEO. “Over 52% of our profit and 
      27% of revenue for 2006 resulted from the sale of two real estate 
      parcels, a 200-acre residential land sale in Bremerton and the sale of a 
      17-acre commercial property in Gig Harbor.”
    
    
      Fourth quarter 2006 results for our Fee Timber segment were very modest, 
      with operating income of $0.8 million, representing half the 
      corresponding 2005 level of $1.6 million; however, this was expected as 
      we front-loaded over 90% of our annual harvest volume during the first 
      three quarters of 2006. Average realized log prices in the current 
      quarter were $619 per thousand board feet (MBF), up 12% from the 
      corresponding quarter in 2005, while log volumes decreased from 8 
      million board feet (MMBF) in 2005 to 4 MMBF in 2006. On a year-to-date 
      basis, average realized log prices increased 6%, rising from $576 per 
      MBF in 2005 to $611 per MBF in 2006. Total harvest volume decreased from 
      74 MMBF in 2005 to 55 MMBF in 2006, based on a planned reduction 
      following the completion of harvest volume coming from two acquisitions 
      made in 2004.
    
    
      Notwithstanding this 27% drop in harvest volume, Fee Timber operating 
      income declined by only 11%, from $16.3 million in 2005 to $14.6 million 
      in 2006, as a result of the increase in log price realizations and 
      because the 2005 segment results were burdened by higher than usual 
      depletion costs associated with a separate depletion pool from one of 
      the aforementioned 2004 acquisitions. Nearly 23% of our 2005 log sales 
      volume and 13% of our 2006 log sales volume related to harvests from a 
      late-2004 timberland purchase where we created a discrete depletion pool 
      because this property was stocked primarily with merchantable timber.
    
    
      For the fourth quarter, our Real Estate segment generated operating 
      income of $7.9 million on revenues of $13.0 million, compared to a $0.1 
      million loss for the fourth quarter of 2005 on revenues of $1.1 million. 
      A majority of the revenue and operating income during the fourth quarter 
      of 2006 related to the $12 million sale of a 200-acre residential parcel 
      in Bremerton, Washington; however, a portion of this revenue recognition 
      was deferred to 2007 pending our completion of certain land 
      improvements. As a result, $10.7 million of this sale was recognized as 
      revenue in the fourth quarter of 2006, contributing $7.7 million of the 
      quarter’s operating income. Full year 2006 
      results for the Real Estate segment reflect operating income of $13.9 
      million on revenues of $27.3 million, compared to $1.3 million of 
      operating income on revenues of $4.8 million for 2005. The full-year 
      improvement in segment results is driven by the Bremerton residential 
      property sale together with two closings from our Harbor Hill project in 
      Gig Harbor, Washington, an 11-acre business park transaction and the 
      aforementioned 17-acre commercial property transaction.
    
    
      Fourth quarter operating results for our Timberland Management & 
      Consulting segment declined from $1.5 million in 2005 to a $100,000 loss 
      in 2006. For the full year, this segment posted operating income of $1.3 
      million, compared to $3.5 million for 2005. The decline in operating 
      income from this segment is the result of fewer assets under management 
      as well as lower property disposition fees earned in 2006.
    
    
      The financial schedules attached to 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 430,000 acres of timberland and development property in 
      Washington and Oregon. In addition, we provide forestry consulting and 
      timberland investment management services to third-party owners and 
      managers of timberland in Washington, Oregon, and California. The 
      company and its predecessor companies have owned and managed timberlands 
      and development properties for more than 150 years. Additional 
      information on the company can be found at www.orm.com. 
      The contents of our website are not incorporated into this release or 
      into our filings with the Securities and Exchange Commission.
    
    
      This press release contains a number of projections and statements about 
      our expected financial condition, operating results, business plans and 
      objectives. 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. Some of the factors that 
      may cause actual operating results and financial condition to fall short 
      of expectations include factors that affect our ability to anticipate 
      and respond adequately to fluctuations in the market prices for our 
      products; environmental and land use regulations that limit our ability 
      to harvest timber and develop property; labor, equipment and 
      transportation costs that affect our net income; our ability to discover 
      and accurately to estimate liabilities associated with our properties; 
      and economic conditions that affect consumer demand for our products and 
      the prices we receive for them. 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.
    
    
      Management considers earnings (net income or loss) before interest 
      expense, income taxes, depreciation, depletion and amortization 
      (EBITDDA) to be an important measure of operating profitability, 
      particularly when comparing results between different timber-owning 
      companies because there are varying methods of calculating depletion 
      expense under GAAP. With different issuers employing various calculation 
      methodologies, disclosure of EBITDDA can make it easier for the reader 
      to make meaningful comparisons between the operating results and 
      cash-generating capabilities of different timber companies.
    
    
      
        
          Pope Resources, A Delaware Limited Partnership
        
      
      
        
          Unaudited
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          CONSOLIDATED STATEMENTS OF OPERATIONS
        
      
      
        
        
        
        
        
        
        
          (all amounts in $000's, except per unit amounts)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          
            Three months ended
          
          
            December 31,
          
        
        
        
        
          
            Twelve months ended
          
          
            December 31,
          
        
      
      
        
        
        
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues
        
        
        
        
          $
        
        
          16,533 
        
        
        
        
          $
        
        
          8,907 
        
        
        
        
          $
        
        
          66,250 
        
        
        
        
          $
        
        
          57,006 
        
      
      
        
          Costs and expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Cost of sales
        
        
        
        
        
        
          (4,716)
        
        
        
        
        
        
          (2,751)
        
        
        
        
        
        
          (25,753)
        
        
        
        
        
        
          (24,596)
        
      
      
        
        
        
          Operating expenses
        
        
        
        
           
        
        
          (4,235)
        
        
        
        
           
        
        
          (4,264)
        
        
        
        
           
        
        
          (14,592)
        
        
        
        
           
        
        
          (14,931)
        
      
      
        
          Operating income
        
        
        
        
        
        
          7,582 
        
        
        
        
        
        
          1,892 
        
        
        
        
        
        
          25,905 
        
        
        
        
        
        
          17,479 
        
      
      
        
        
        
          Interest, net
        
        
        
        
           
        
        
          16 
        
        
        
        
           
        
        
          (539)
        
        
        
        
           
        
        
          (625)
        
        
        
        
           
        
        
          (2,477)
        
      
      
        
          Income before income taxes and minority interest
        
        
        
        
        
        
          7,598 
        
        
        
        
        
        
          1,353 
        
        
        
        
        
        
          25,280 
        
        
        
        
        
        
          15,002 
        
      
      
        
          Income tax provision
        
        
        
        
           
        
        
          14 
        
        
        
        
           
        
        
          (435)
        
        
        
        
           
        
        
          (439)
        
        
        
        
           
        
        
          (997)
        
      
      
        
          Income before minority interest
        
        
        
        
        
        
          7,612 
        
        
        
        
        
        
          918 
        
        
        
        
        
        
          24,841 
        
        
        
        
        
        
          14,005 
        
      
      
        
        
        
          Minority interest
        
        
        
        
           
        
        
          181 
        
        
        
        
           
        
        
          (46)
        
        
        
        
           
        
        
          69 
        
        
        
        
           
        
        
          (321)
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          7,793 
        
        
        
        
          $
        
        
          872 
        
        
        
        
          $
        
        
          24,910 
        
        
        
        
          $
        
        
          13,684 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Average units outstanding - Basic
        
        
        
        
           
        
        
          4,647 
        
        
        
        
           
        
        
          4,621 
        
        
        
        
           
        
        
          4,642 
        
        
        
        
           
        
        
          4,607 
        
      
      
        
          Average units outstanding - Diluted
        
        
        
        
           
        
        
          4,778 
        
        
        
        
           
        
        
          4,773 
        
        
        
        
           
        
        
          4,762 
        
        
        
        
           
        
        
          4,751 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic net income per unit
        
        
        
        
          $
        
        
          1.68 
        
        
        
        
          $
        
        
          0.19 
        
        
        
        
          $
        
        
          5.37 
        
        
        
        
          $
        
        
          2.97 
        
      
      
        
          Diluted net income per unit
        
        
        
        
          $
        
        
          1.63 
        
        
        
        
          $
        
        
          0.18 
        
        
        
        
          $
        
        
          5.23 
        
        
        
        
          $
        
        
          2.88 
        
      
    
    
      
        
        
        
        
        
          CONSOLIDATED BALANCE SHEETS
        
      
      
        
        
        
        
        
          (all amounts in $000's)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
        
        
           
        
        
          2006 
        
        
        
        
           
        
        
          2005 
        
      
      
        
          Assets:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Cash
        
        
        
        
          $
        
        
          7,194 
        
        
        
        
          $
        
        
          3,362 
        
      
      
        
        
        
          Short term investments
        
        
        
        
        
        
          25,000 
        
        
        
        
        
        
          15,000 
        
      
      
        
        
        
          Other current assets
        
        
        
        
        
        
          8,917 
        
        
        
        
        
        
          5,769 
        
      
      
        
        
        
          Roads and timber
        
        
        
        
        
        
          97,883 
        
        
        
        
        
        
          53,019 
        
      
      
        
        
        
          Properties and equipment
        
        
        
        
        
        
          39,253 
        
        
        
        
        
        
          28,543 
        
      
      
        
        
        
          Other assets
        
        
        
        
           
        
        
          2,035 
        
        
        
        
           
        
        
          665 
        
      
      
        
        
        
          Total
        
        
        
        
          $
        
        
          180,282 
        
        
        
        
          $
        
        
          106,358 
        
      
      
        
          Liabilities and partners' capital:
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Current liabilities
        
        
        
        
          $
        
        
          14,775 
        
        
        
        
          $
        
        
          7,454 
        
      
      
        
        
        
          Long-term debt, excluding current portion
        
        
        
        
        
        
          30,866 
        
        
        
        
        
        
          32,281 
        
      
      
        
        
        
          Other long-term liabilities
        
        
        
        
           
        
        
          47,036 
        
        
        
        
           
        
        
          218 
        
      
      
        
        
        
          Total liabilities
        
        
        
        
        
        
          92,677 
        
        
        
        
        
        
          39,953 
        
      
      
        
        
        
          Partners' capital
        
        
        
        
           
        
        
          87,605 
        
        
        
        
           
        
        
          66,405 
        
      
      
        
        
        
          Total
        
        
        
        
          $
        
        
          180,282 
        
        
        
        
          $
        
        
          106,358 
        
      
    
    
      
        
          RECONCILIATION BETWEEN NET INCOME AND EBITDDA
        
      
      
        
          (all amounts in $000's)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          
            Three months ended
          
          
            December 31,
          
        
        
        
        
          
            Twelve months ended
          
          
            December 31,
          
        
      
      
        
        
        
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          7,793 
        
        
        
        
          $
        
        
          872 
        
        
        
        
          $
        
        
          24,910 
        
        
        
        
          $
        
        
          13,684 
        
      
      
        
          Added back:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Interest, net
        
        
        
        
        
        
          (16)
        
        
        
        
        
        
          539 
        
        
        
        
        
        
          625 
        
        
        
        
        
        
          2,477 
        
      
      
        
        
        
          Depletion
        
        
        
        
        
        
          522 
        
        
        
        
        
        
          922 
        
        
        
        
        
        
          6,492 
        
        
        
        
        
        
          10,611 
        
      
      
        
        
        
          Depreciation and amortization
        
        
        
        
        
        
          178 
        
        
        
        
        
        
          159 
        
        
        
        
        
        
          712 
        
        
        
        
        
        
          641 
        
      
      
        
        
        
          Income tax expense
        
        
        
        
           
        
        
          (14)
        
        
        
        
           
        
        
          435 
        
        
        
        
           
        
        
          439 
        
        
        
        
           
        
        
          997 
        
      
      
        
          EBITDDA
        
        
        
        
          $
        
        
          8,463 
        
        
        
        
          $
        
        
          2,927 
        
        
        
        
          $
        
        
          33,178 
        
        
        
        
          $
        
        
          28,410 
        
      
    
    
      
        
          RECONCILIATION BETWEEN CASH FROM OPERATIONS AND EBITDDA
        
      
      
        
          (all amounts in $000's)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          
            Three months ended
          
          
            December 31,
          
        
        
        
        
          
            Twelve months ended
          
          
            December 31,
          
        
      
      
        
        
        
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash from operations
        
        
        
        
          $
        
        
          15,148 
        
        
        
        
          $
        
        
          6,656 
        
        
        
        
          $
        
        
          43,571 
        
        
        
        
          $
        
        
          28,909 
        
      
      
        
          Added back:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Change in working capital
        
        
        
        
        
        
          3,889 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          5,324 
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          Interest
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          539 
        
        
        
        
        
        
          625 
        
        
        
        
        
        
          2,477 
        
      
      
        
        
        
          Deferred revenue
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          614 
        
      
      
        
        
        
          Minority interest
        
        
        
        
        
        
          143 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          31 
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          
            Deferred taxes
          
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          435 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          Income tax provision
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          439 
        
        
        
        
        
        
          997 
        
      
      
        
          Less:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Change in working capital
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          (4,456)
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          (4,075)
        
      
      
        
        
        
          Interest
        
        
        
        
        
        
          (16)
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          Deferred revenue
        
        
        
        
        
        
          (7,502)
        
        
        
        
        
        
          (81)
        
        
        
        
        
        
          (8,533)
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          Cost of land sold
        
        
        
        
        
        
          (2,981)
        
        
        
        
        
        
          (90)
        
        
        
        
        
        
          (7,818)
        
        
        
        
        
        
          (434)
        
      
      
        
        
        
          Deferred taxes
        
        
        
        
        
        
          (27)
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          (16)
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          Equity based compensation
        
        
        
        
        
        
          (177)
        
        
        
        
        
        
          (76)
        
        
        
        
        
        
          (444)
        
        
        
        
        
        
          (76)
        
      
      
        
        
        
          Income tax provision
        
        
        
        
        
        
          (14)
        
        
        
        
          
            - 
          
        
        
        
        
          
            - 
          
        
        
        
        
          
            - 
          
        
      
      
        
        
        
          Other
        
        
        
        
           
        
        
          - 
        
        
        
        
           
        
        
          - 
        
        
        
        
           
        
        
          (1)
        
        
        
        
           
        
        
          (2)
        
      
      
        
          EBITDDA
        
        
        
        
          $
        
        
          8,463 
        
        
        
        
          $
        
        
          2,927 
        
        
        
        
          $
        
        
          33,178 
        
        
        
        
          $
        
        
          28,410 
        
      
    
    
      
        
        
        
        
        
        
        
          SEGMENT INFORMATION
        
      
      
        
        
        
        
        
        
        
          (all amounts in $000's)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          
            Three months ended
          
          
            December 31,
          
        
        
        
        
          
            Twelve months ended
          
          
            December 31,
          
        
      
      
        
        
        
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
        
        
        
        
        
          2006 
        
        
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Fee Timber
        
        
        
        
          $
        
        
          2,973 
        
        
        
        
          $
        
        
          5,194 
        
        
        
        
          $
        
        
          35,260 
        
        
        
        
          $
        
        
          44,424 
        
      
      
        
        
        
          Timberland Management & Consulting (TM&C)
        
        
        
        
        
        
          524 
        
        
        
        
        
        
          2,641 
        
        
        
        
        
        
          3,670 
        
        
        
        
        
        
          7,764 
        
      
      
        
        
        
          Real Estate
        
        
        
        
           
        
        
          13,036 
        
        
        
        
           
        
        
          1,072 
        
        
        
        
           
        
        
          27,320 
        
        
        
        
           
        
        
          4,818 
        
      
      
        
        
        
          Total
        
        
        
        
        
        
          16,533 
        
        
        
        
        
        
          8,907 
        
        
        
        
        
        
          66,250 
        
        
        
        
        
        
          57,006 
        
      
      
        
          EBITDDA:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Fee Timber
        
        
        
        
        
        
          1,247 
        
        
        
        
        
        
          2,544 
        
        
        
        
        
        
          21,004 
        
        
        
        
        
        
          27,034 
        
      
      
        
        
        
          TM&C
        
        
        
        
        
        
          (46)
        
        
        
        
        
        
          1,508 
        
        
        
        
        
        
          1,262 
        
        
        
        
        
        
          3,637 
        
      
      
        
        
        
          Real Estate
        
        
        
        
        
        
          8,274 
        
        
        
        
        
        
          (10)
        
        
        
        
        
        
          14,511 
        
        
        
        
        
        
          1,448 
        
      
      
        
        
        
          General & administrative
        
        
        
        
           
        
        
          (1,012)
        
        
        
        
           
        
        
          (1,115)
        
        
        
        
           
        
        
          (3,599)
        
        
        
        
           
        
        
          (3,709)
        
      
      
        
        
        
          Total
        
        
        
        
        
        
          8,463 
        
        
        
        
        
        
          2,927 
        
        
        
        
        
        
          33,178 
        
        
        
        
        
        
          28,410 
        
      
      
        
          Depreciation, depletion and amortization:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Fee Timber
        
        
        
        
        
        
          318 
        
        
        
        
        
        
          950 
        
        
        
        
        
        
          6,266 
        
        
        
        
        
        
          10,714 
        
      
      
        
        
        
          TM&C
        
        
        
        
        
        
          19 
        
        
        
        
        
        
          23 
        
        
        
        
        
        
          73 
        
        
        
        
        
        
          97 
        
      
      
        
        
        
          Real Estate
        
        
        
        
        
        
          325 
        
        
        
        
        
        
          43 
        
        
        
        
        
        
          647 
        
        
        
        
        
        
          178 
        
      
      
        
        
        
          General & administrative
        
        
        
        
           
        
        
          38 
        
        
        
        
           
        
        
          65 
        
        
        
        
           
        
        
          218 
        
        
        
        
           
        
        
          263 
        
      
      
        
        
        
          Total
        
        
        
        
        
        
          700 
        
        
        
        
        
        
          1,081 
        
        
        
        
        
        
          7,204 
        
        
        
        
        
        
          11,252 
        
      
      
        
          Operating income/(loss):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Fee Timber
        
        
        
        
        
        
          783 
        
        
        
        
        
        
          1,594 
        
        
        
        
        
        
          14,592 
        
        
        
        
        
        
          16,320 
        
      
      
        
        
        
          TM&C
        
        
        
        
        
        
          (100)
        
        
        
        
        
        
          1,485 
        
        
        
        
        
        
          1,266 
        
        
        
        
        
        
          3,540 
        
      
      
        
        
        
          Real Estate
        
        
        
        
        
        
          7,949 
        
        
        
        
        
        
          (53)
        
        
        
        
        
        
          13,864 
        
        
        
        
        
        
          1,270 
        
      
      
        
        
        
          General & administrative
        
        
        
        
           
        
        
          (1,050)
        
        
        
        
           
        
        
          (1,134)
        
        
        
        
           
        
        
          (3,817)
        
        
        
        
           
        
        
          (3,651)
        
      
      
        
        
        
          Total
        
        
        
        
          $
        
        
          7,582 
        
        
        
        
          $
        
        
          1,892 
        
        
        
        
          $
        
        
          25,905 
        
        
        
        
          $
        
        
          17,479 
        
      
    
    
      
        
        
        
        
        
        
        
          SELECTED STATISTICS
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Three months ended
        
        
        
        
          Twelve months ended
        
      
      
        
        
        
        
        
        
        
          31-Dec-06
        
        
        
        
          31-Dec-05
        
        
        
        
          31-Dec-06
        
        
        
        
          31-Dec-05
        
      
      
        
          Log sale volumes (thousand board feet):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Sawlogs
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Douglas-fir
        
        
        
        
        
        
          2,046 
        
        
        
        
          4,923 
        
        
        
        
        
        
          38,954 
        
        
        
        
          43,720 
        
      
      
        
        
        
          Whitewood
        
        
        
        
        
        
          172 
        
        
        
        
          1,170 
        
        
        
        
        
        
          3,800 
        
        
        
        
          11,007 
        
      
      
        
        
        
          Cedar
        
        
        
        
        
        
          301 
        
        
        
        
          229 
        
        
        
        
        
        
          1,075 
        
        
        
        
          4,447 
        
      
      
        
        
        
          Hardwood
        
        
        
        
        
        
          421 
        
        
        
        
          699 
        
        
        
        
        
        
          3,591 
        
        
        
        
          5,143 
        
      
      
        
          Pulp
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          All species
        
        
        
        
           
        
        
          763 
        
        
        
        
          1,319 
        
        
        
        
           
        
        
          7,113 
        
        
        
        
          9,928 
        
      
      
        
        
        
          Total
        
        
        
        
           
        
        
          3,703 
        
        
        
        
          8,340 
        
        
        
        
           
        
        
          54,533 
        
        
        
        
          74,245 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Average price realizations (per thousand board feet):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Sawlogs
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Douglas-fir
        
        
        
        
        
        
          621 
        
        
        
        
          653 
        
        
        
        
        
        
          669 
        
        
        
        
          644 
        
      
      
        
        
        
          Whitewood
        
        
        
        
        
        
          419 
        
        
        
        
          446 
        
        
        
        
        
        
          445 
        
        
        
        
          472 
        
      
      
        
        
        
          Cedar
        
        
        
        
        
        
          1,183 
        
        
        
        
          908 
        
        
        
        
        
        
          1,093 
        
        
        
        
          942 
        
      
      
        
        
        
          Hardwood
        
        
        
        
        
        
          815 
        
        
        
        
          544 
        
        
        
        
        
        
          681 
        
        
        
        
          605 
        
      
      
        
          Pulp
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          All species
        
        
        
        
        
        
          328 
        
        
        
        
          225 
        
        
        
        
        
        
          268 
        
        
        
        
          213 
        
      
      
        
        
        
          Overall
        
        
        
        
        
        
          619 
        
        
        
        
          554 
        
        
        
        
        
        
          611 
        
        
        
        
          576 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Owned timber acres
        
        
        
        
        
        
          114,000 
        
        
        
        
          117,000 
        
        
        
        
        
        
          114,000 
        
        
        
        
          117,000 
        
      
      
        
          Acres under management
        
        
        
        
        
        
          
            316,000 
          
        
        
        
        
          
            439,000 
          
        
        
        
        
        
        
          
            316,000 
          
        
        
        
        
          
            439,000 
          
        
      
      
        
          Capital expenditures ($000's)
        
        
        
        
          $
        
        
          3,177 
        
        
        
        
          4,132 
        
        
        
        
          $
        
        
          10,508 
        
        
        
        
          6,756 
        
      
      
        
          Depletion ($000's)
        
        
        
        
        
        
          522 
        
        
        
        
          922 
        
        
        
        
        
        
          6,492 
        
        
        
        
          10,611 
        
      
      
        
          Depreciation ($000's)
        
        
        
        
        
        
          178 
        
        
        
        
          159 
        
        
        
        
        
        
          712 
        
        
        
        
          641 
        
      
      
        
          Debt to total capitalization
        
        
        
        
        
        
          27%
        
        
        
        
          34%
        
        
        
        
        
        
          27%
        
        
        
        
          34%
        
      
    
    
      
        
        
        
        
        
        
        
          QUARTER TO QUARTER COMPARISONS
        
      
      
        
        
        
        
        
        
        
          (Amounts in $000's except per unit data)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Q4 2006 vs. Q4 2005
        
        
        
        
        
        
          Q4 2006 vs. Q3 2006
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Total
        
        
        
        
        
        
        
        
          Total
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          4th Quarter 2006
        
        
        
        
        
        
          $
        
        
          7,793 
        
        
        
        
        
        
        
        
          $
        
        
          7,793 
        
      
      
        
        
        
          3rd Quarter 2006
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          8,279 
        
      
      
        
        
        
          4th Quarter 2005
        
        
        
        
        
        
           
        
        
          872 
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Variance
        
        
        
        
        
        
          $
        
        
          6,921 
        
        
        
        
        
        
        
        
          $
        
        
          (486)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Detail of earnings variance:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Fee Timber
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Log price realizations (A)
        
        
        
        
        
        
          $
        
        
          241 
        
        
        
        
        
        
        
        
          $
        
        
          (15)
        
      
      
        
        
        
          Log volumes (B)
        
        
        
        
        
        
        
        
          (2,569)
        
        
        
        
        
        
        
        
        
        
          (5,261)
        
      
      
        
        
        
          Depletion
        
        
        
        
        
        
        
        
          667 
        
        
        
        
        
        
        
        
        
        
          803 
        
      
      
        
        
        
          Production costs
        
        
        
        
        
        
        
        
          823 
        
        
        
        
        
        
        
        
        
        
          1,588 
        
      
      
        
        
        
          Other Fee Timber
        
        
        
        
        
        
        
        
          28 
        
        
        
        
        
        
        
        
        
        
          106 
        
      
      
        
          Timberland Management & Consulting
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Management fee changes
        
        
        
        
        
        
        
        
          (624)
        
        
        
        
        
        
        
        
        
        
          46 
        
      
      
        
        
        
          Disposition fee changes
        
        
        
        
        
        
        
        
          (1,388)
        
        
        
        
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          Other Timberland Mgmnt & Consulting
        
        
        
        
        
        
        
        
          427 
        
        
        
        
        
        
        
        
        
        
          (179)
        
      
      
        
          Real Estate
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Environmental remediation liability
        
        
        
        
        
        
        
        
          (56)
        
        
        
        
        
        
        
        
        
        
          (32)
        
      
      
        
        
        
          Land sales
        
        
        
        
        
        
        
        
          9,106 
        
        
        
        
        
        
        
        
        
        
          2,838 
        
      
      
        
        
        
          Other Real Estate
        
        
        
        
        
        
        
        
          (1,049)
        
        
        
        
        
        
        
        
        
        
          (525)
        
      
      
        
          General & administrative costs
        
        
        
        
        
        
        
        
          84 
        
        
        
        
        
        
        
        
        
        
          (189)
        
      
      
        
          Interest expense
        
        
        
        
        
        
        
        
          391 
        
        
        
        
        
        
        
        
        
        
          115 
        
      
      
        
          Other (taxes, minority int., interest inc.)
        
        
        
        
        
        
           
        
        
          840 
        
        
        
        
        
        
        
        
           
        
        
          219 
        
      
      
        
          Total change in earnings
        
        
        
        
        
        
          $
        
        
          6,921 
        
        
        
        
        
        
        
        
          $
        
        
          (486)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          (A) Price variance calculated by extending the change in average 
          realized price by current period volume.
        
      
      
        
        
        
        
        
           
        
      
      
        
          (B) Volume variance calculated by extending change in sales volume 
          by the average log sales price for the comparison period.