Keweenaw Land Association, Limited Reports Unaudited Fourth Quarter and Year Ended December 31, 2011 Results

February 1, 2012

Keweenaw Land Association, Limited reported sales from timber operations for its year ended December 31, 2011 rose 18.2% to $9.74 million compared to $8.24 million in 2010.  Sales from timber operations in the fourth quarter were up 48.9% to $3.25 million versus $2.18 million during the fourth quarter of 2010.  Revenues benefited from a strong fourth quarter due to better margins from sawtimber sales and a record harvest in the fourth quarter.

Net income for the year jumped 217% to $521 thousand or $0.40 per share compared to net income of $164 thousand or $0.13 per share in 2010.  Comprehensive income for the year was higher by 90% to $373 thousand or $0.29 per share compared to comprehensive income of $196 thousand or $0.15 per share in 2010. Net income during the year benefited from a 1240% increase in operating income driven by higher sales and relatively flat operating expenses.  Comprehensive income was was hurt slightly by the recording of unrealized losses on securities versus a modest gain in 2010.

Net income for the fourth quarter slipped 7% to $235 thousand or $0.18 per share compared to net income of $252 thousand or $0.20 per share during the fourth quarter of 2010.  Comprehensive income climbed 223% to $357 thousand or $0.28 per share versus comprehensive income of $111 thousand or $0.09 per share in the fourth quarter of 2010.  Net income for the 2011 fourth quarter was negatively impacted by a much higher provision for income taxes which was in part due to removing a deferred tax asset which had a nearly $175 thousand impact in the quarter.  The quarter also lacked any gains on the sale of securities for which $438 thousand was recorded during the fourth quarter of 2010.  Comprehensive income for the 2011 fourth quarter benefited from an unrealized gain on securities of $122 thousand compared to an unrealized loss of $142 thousand recorded in the fourth quarter of 2010.

As of December 31, 2011, the balance sheet reflected cash and equivalents of $894 thousand, current assets of $1.72 million, total assets of $17.24 million, current liabilities of $720 thousand and total liabilities of $2.27 million.  Total capital increased a modest 3% to $14.97 million during 2011.

The company noted that it is actively exploring opportunities to develop a timberland management business to leverage the expertise of management and produce an additional income stream.  In addition, a subsidiary of Orvana Minerals Corp. (OTC Grey Market: ORVMF.PK) completed its 82-hole, 13,000-meter drill program in October under a mineral lease.

Keweenaw Land Association, Limited owns and manages 159,831 surface acres and 405,985 acres of both severed and attached mineral rights in the Upper Peninsula of Michigan as well as 1,700 surface acres in northern Wisconsin.  The company produces timber from its approximately 153,074 acres of productive timberland’s and is involved in other real estate development activities including the sale of lots for residential and recreational use.

Source: Keweenaw Land Association, Limited


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