Pope Resources (NASDAQ:POPE) reported net income attributable to unitholders of $1.1 million, or $0.22 per diluted ownership unit, on revenue of $8.6 million for the third quarter ended September 30, 2010. This compares to net income attributable to unitholders of $920,000, or $0.20 per diluted ownership unit, on revenue of $6.6 million for the comparable period in 2009.
Net income attributable to unitholders for the nine months ended September 30, 2010, totaled $375,000, or $0.07 per diluted ownership unit, on revenue of $22.6 million. Net income attributable to unitholders for the corresponding period in 2009 totaled $104,000, or $0.02 per diluted ownership unit, on revenue of $15.3 million.
Cash provided by operations for the quarter ended September 30, 2010, was $4.2 million, compared to $884,000 for the third quarter of 2009. For the nine months ended September 30, 2010, cash provided by operations was $5.3 million, compared to cash used by operations of $191,000 for the first nine months of 2009.
“Strong log demand from China contributed to higher harvest levels and a significantly higher export mix, both of which led to improved performance,” said David L. Nunes, President and CEO. “We were able to successfully navigate this year’s volatile log markets to deliver higher than anticipated profit and cash flow. While business challenges remain for both our industry and company, the same economic forces that have created operational challenges have also provided opportunities to grow our asset base. In the third quarter, we acquired, on behalf of ORM Timber Fund II, two tree farms totaling over 25,000 acres for a combined purchase price of $58 million. We expect these properties to generate significant cash flows for both Pope Resources and Fund II’s non-controlling interests in the years to come. In addition, these lands will generate management fees, improve economies of scale, and position us to capitalize on future improvements in log prices.”