Keweenaw Land Association, Ltd. · OTC:KEWL
Keweenaw Land Association — Shareholder Meeting (May 2019)
17 slides from Keweenaw Land Association's shareholder meeting presentation, May 6, 2019
Slide 1: 2019 Annual Shareholders Meeting
2019 Annual Shareholders Meeting May 6, 2019 Keweenaw Land Association, Limited 2019 Annual Shareholder Meeting | May 6, 2019
Slide 2: Safe Harbor
Safe Harbor This presentation contains some forward-looking statements. These forward-looking statements are subject to a number of risks and should not be relied upon as predictions of future events or promises of a given course of action. A number of factors such as land use, environmental and oth
Slide 3: Accomplishments since 2018 Annual Meeting
Accomplishments since 2018 Annual Meeting • Change of control issues resolved • Corporate governance objectives achieved – Established committees and charters – best practices – Eliminated corporate defenses • Improved shareholder disclosure • 2018 audit opinion provided by PCAOB-registered accounti
Slide 4: Keweenaw at a glance
Keweenaw at a glance 184,300 acres of timberland located in western UP of MI and northern WI 401,867 acres mineral rights Land management and log marketing Recreational and HBU real estate sales 4 Keweenaw Land Association, Limited 2019 Annual Shareholder Meeting | May 6, 2019
Slide 5: Annual Volume - Total Cords
2018 harvest volume up by 17% over prior year, 41% increase since 2015 • 2018 volume 111,319 cords • 10% increase in acreage Annual Volume • 25% increase timber inventory 120,000 Annual Volume - Total Cords restatement in 2017 110,000 100,000 90,000 80,000 70,000 60,000 2015 2016 2017 2018 Company L
Slide 6: Annual Volume - Total Cords (Q1)
Q1-19 volume up by 8% over Q1-18 • Q1-19 volume 38,136 cords • 35,093 cords from Company land 1st Quarter Volume 40,000 • 3,043 cords from Procured 35,000 Annual Volume - Total Cords 30,000 25,000 20,000 15,000 10,000 Q1 2018 Q1 2019 Company Lands Procured Keweenaw Land Association, Limited 2019 Ann
Slide 7: Historical Product Mix
Historical Product Mix % Product Mix 2015 2016 2017 2018 Q1-18 Q1-19 Veneer 3% 3% 2% 2% 2% 2% Sawlogs 9% 9% 8% 9% 6% 7% Sawbolts 18% 15% 16% 12% 12% 15% Pulpwood 70% 73% 74% 77% 80% 76% • Product mix key driver in revenue • Veneer Highest Value and Lowest Volume • Pulpwood Lowest Value and Highest V
Slide 8: Historical Average Realized Price Per Cord
Historical Average Realized Price Per Cord Sales Price by Product $ Per Cord 2015 2016 2017 2018 Q1-18 Q1-19 Veneer $444 $461 $422 $438 $411 $410 Sawlogs $235 $223 $221 $240 $222 $236 Sawbolts $152 $139 $129 $143 $144 $141 Pulpwood $117 $103 $101 $104 $100 $104 Total $143 $129 $121 $128 $118 $124 •
Slide 9: Total Revenues up 23.7% year over year
Total Revenues up 23.7% year over year Revenues - Volume and Mix Impacts Changes Attributed to: 2017 2018 Volume Price/Mix Veneer $742,252 $965,288 25.2% 4.8% Sawlogs $1,628,038 $2,410,624 36.2% 11.9% Sawbolts $1,985,620 $1,985,620 -10.7% 9.9% Pulpwood $7,132,875 $8,864,301 20.7% 3.6% Total $11,488,
Slide 10: Total Revenues up 13.7% Q1-19 over Q1-18
Total Revenues up 13.7% Q1-19 over Q1-18 Revenues - Volume and Mix Impacts Changes Attributed to: Q1-18 Q1-19 Volume Price/Mix Veneer $285,815 $299,439 5.2% -0.4% Sawlogs $441,449 $615,509 30.9% 8.5% Sawbolts $599,496 $803,452 36.1% -2.1% Pulpwood $2,847,681 $3,026,923 1.9% 4.4% Total $4,174,440 $4,
Slide 11: 2018 and Q1 2019 Cost of Goods Sold
2018 and Q1 2019 Cost of Goods Sold Cost of Goods Sold $ Per Cord 2015 2016 2017 2018 Q1-18 Q1-19 Logging $49.70 $49.90 $46.40 $45.60 $45.17 $45.38 Freight $26.20 $26.40 $28.90 $34.30 $29.00 $34.69 Roads $6.40 $6.60 $5.70 $5.40 $5.10 $6.84 Other/Yard $2.70 $2.50 $2.80 $3.50 $1.88 $2.02 Depletion $4.
Slide 12: 2018 and Q1 2019 Gross Margin
2018 and Q1 2019 Gross Margin Gross Margin Per CD EQ 2015 2016 2017 2018 Q1-18 Q1-19 Log Sales $142 $129 $121 $128 $118 $124 Cost of Sales $90 $89 $88 $93 $86 $94 Gross Margin $53 $40 $32 $34 $32 $30 • 6% increase 2018 over 2017 • 6% decrease Q1-19 over Q1-18 • Drivers affecting gross margin • Decre
Slide 13: 2018 and Q1 2019 Other Income
2018 and Q1 2019 Other Income Other Income 2015 2016 2017 2018 Q1-18 Q1-19 In thousands Minerals, Leases, Yard Services $326 $360 $490 $263 $217 $111 Land Sales $207 $90 $167 $1,510 -0- $640 Profit(Loss) on Security Sales ($14) $132 $796 -0- -0- $1,494 Investment Earnings $87 $89 $99 $74 $8 $9 Total
Slide 14: 2018 and Q1 2019 P & L Highlights
2018 and Q1 2019 P & L Highlights % % In Thousands 2017 2018 Q1-18 Q1-19 change change Timber Sales $11,490 $14,210 24% $4,170 $4,750 14% Total Sales $12,150 $15,990 32% $4,390 $5,500 25% Gross Profit $2,440 $3,920 61% $1,060 $1,550 46% Selling, Management & Administration $1,710 $1,610 -6% $620 $73
Slide 15: Questions?
Questions? Keweenaw Land Association, Limited 2019 Annual Shareholder Meeting | May 6, 2019 15
Slide 16: Thank you to the board of directors, employees and shareholders
Thank you to the board of directors, our employees, and to our shareholders for their continued support If you have questions or wish to contact us regarding this presentation material, please call or email us at: Toll Free – 877-539-3362 Email – Investors@keweenaw.com James A. Mai – Chairman Mark A
Slide 17: Thank You!
Thank You! Keweenaw Land Association, Limited 2019 Annual Shareholder Meeting | May 6, 2019
Keweenaw Land Association — Shareholder Meeting (May 2019) on 6ix