Keweenaw Land Association, Ltd. · OTC:KEWL
Keweenaw Land Association — Shareholder Meeting (May 2020)
20 slides from Keweenaw Land Association's shareholder meeting presentation, May 11, 2020
Slide 1: Agenda: 112th Annual Meeting of Shareholders
AGENDA 112TH ANNUAL MEETING OF SHAREHOLDERS OF KEWEENAW LAND ASSOCIATION, LIMITED May 11, 2020 9:00 am CT INTRODUCTION 1. Chairman calls meeting to order and explains virtual meeting protocols. 2. Chairman introduces Inspectors of Election. 3. Chairman states if quorum is present. 4. Chairman introd
Slide 2: 2020 Annual Meeting of Shareholders Management Presentation
2020 Annual Meeting of Shareholders Management Presentation May 11, 2020 Keweenaw Land Association, Limited
Slide 3: Keweenaw at a Glance
Keweenaw at a Glance 183,432 acres of timberland located in Western Upper Peninsula of Michigan and Northern Wisconsin 401,793 acres mineral rights Land management and log marketing Recreational and Higher and Better Use real estate 3 Keweenaw Land Association, Limited
Slide 4: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Certain statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act
Slide 5: Meeting Agenda
Meeting Agenda • Covid-19 • Review of 2019 Accomplishments • First Quarter 2020 and Full Year 2019 Operational and Financial Review • Mineral Development • Q&A Keweenaw Land Association, Limited 5
Slide 6: Covid-19
Covid-19 • Forest Products is deemed an “Essential Critical Infrastructure Workforce”. • To our knowledge, all of Keweenaw’s customers continue to operate at some level. • Our Pulp and Paper customers have told us they are experiencing some market related downtime. • Solid wood products demand is do
Slide 7: Covid-19 (continued): Impacts on Keweenaw
Covid-19 (continued) • Impacts on Keweenaw – There was no material impact to our first quarter economic results. – We expect the effect on second quarter to be muted due to the seasonal spring thaw slowdown. – Our long term, guaranteed supply contracts are set up to mitigate any reductions in pulpwo
Slide 8: Covid-19 (continued): Financial Impacts
Covid-19 (continued) • Financial Impacts – Weakening of demand for sawtimber may reduce sales through the third quarter. – Anticipating reduction in real estate sales, but it’s too early to predict. – Our present intention is to continue to operate the business with a full staff. – We performed exte
Slide 9: 2019 Accomplishments – Look Back
2019 Accomplishments – Look Back • Completed extensive review of Keweenaw’s operational practices, marketing and cost effectiveness. – Benchmarking of competitive position found Keweenaw to be slightly better than regional peers in log and haul costs and pulpwood margins. – Developed metric reports
Slide 10: 2019 Accomplishments – Look Back (continued)
2019 Accomplishments – Look Back (continued) • Reduced debt by $8.5 million, from $18.5 million to $10.0 million. • Completed a Conservation Easement Sale resulting in $3.94 million of net cash. • Increased timber revenues by 11% over 2018 to $15.7 million. • Reduced non-recurring expenses by $1.9 m
Slide 11: Annual Sales Volume - Total Cords
2019 harvest volume up by 13% over prior year, 58% increase since 2015 • 2019 volume 125,292 cords – Company: 117,675 cords – Procured: 7,617 cords • Harvesting growth on Company Annual Sales Volume • Increased Harvest of Procured Annual Sales Volume - Total Cords 120,000 110,000 • 10% increase in a
Slide 12: Quarterly Sales Volume - Total Cords
First Quarter 2020 volume up by 24% over First Quarter 2019 • First Quarter 2020 volume 47,254 cords • 39,979 cords from Company land • 7,275 cords from Procured First Quarter Sales Volume 50,000 Quarterly Sales Volume - Total Cords 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 Q1 2018 Q1
Slide 13: Total Timber Revenues
Total Timber Revenues Revenues Year Ended December 31, 3 Months Ended March 31, 2018 2019 2019 2020 Veneer $965,288 $1,049,165 $299,439 $396,152 Sawlogs $2,410,624 $2,730,803 $615,509 $950,054 Sawbolts $1,985,620 $2,341,357 $803,452 $789,946 Pulpwood $8,864,301 $9,621,843 $3,026,923 $3,735,671 Total
Slide 14: 2019 and Q1 2020 Other Income
2019 and Q1 2020 Other Income Year Ended December 31, 3 Months Ended March 31, Other Income 2018 2019 2019 2020 In thousands Sort Yard Services $160 $202 $53 $53 Minerals, Leases $235 $253 $97 $93 Land Sales $1,510 1,316 $640 $89 Conservation Easement Sale $0 $3,941 $0 $0 Profit(Loss) on Security Sa
Slide 15: 2019 and First Quarter 2020 P&L Highlights
2019 and First Quarter 2020 P & L Highlights Year Ended December 31, 3 Months Ended March 31, % % In Thousands 2018 2019 2019 2020 change change Timber Sales $14,212 $15,743 11% $4,745 $5,872 24% Total Sales $16,118 $21,455 33% $5,535 $6,107 10% Gross Profit $3,919 $4,292 10% $1,552 $1,420 -9% Selli
Slide 16: 2019 and First Quarter 2020 Balance Sheet Highlights
2019 and First Quarter 2020 Balance Sheet Highlights In Thousands 2018 2019 2020 Cash, Cash Equivalents and Cash in Escrow $2,740 $2,576 $1,835 Total Current Assets $6,366 $4,128 $3,874 Timber and Timberlands $31,701 $26,966 $26,800 Total Non-Current Assets $33,388 $28,557 $28,359 Total Assets $39,7
Slide 17: Minerals Update
Minerals Update • KLA owns 401,793 acres of minerals • Rich history of mining • More pro-active marketing approach • Modest 2020 capital budget for exploration • UP minerals of interest (copper, nickel, zinc, gold, iron) Keweenaw Land Association, Limited 17
Slide 18: Questions?
Questions? Keweenaw Land Association, Limited 18
Slide 19: Thank you to the board, 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 20: Thank You!
Thank You! Keweenaw Land Association, Limited
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