SEATTLE
Plum Creek Timber Company, Inc. (NYSE: PCL) today announced fourth
quarter earnings of $79 million, or $0.49 per diluted share, on revenues
of $354 million. Earnings for the fourth quarter of 2011 were $61
million, or $0.38 per diluted share, on revenues of $315 million.
Earnings for the full year of 2012 were $203 million, or $1.25 per
diluted share, on revenues of $1.34 billion. Earnings for the full year
of 2011 were $193 million, or $1.19 per diluted share, on revenues of
$1.17 billion.
“We were able to post a five percent growth in full-year net income,
ending 2012 on a strong note,” said Rick Holley, president and chief
executive officer. “We exceeded our initial expectations for the fourth
quarter, benefitting from continued strong demand for well-managed
timberlands. In 2012 we grew adjusted EBITDA to $530 million, or an
increase of 19 percent, exceeding our goal for the year.
“During the year, we continued to position ourselves to benefit from the
emerging recovery in residential construction. We’ve worked closely with
logging contractors over the past several years to ensure we are in
preferred positions to serve the growing demand from our traditional
customers as well as emerging bioenergy customers.
“We maintained our capital discipline. We sold non-strategic timberlands
when we could lock-in very attractive returns for those properties
today. We also invested more than $195 million in timber and non-timber
resources that will add to our earnings and cash flow for years to come.
Financially we’re in great shape to take advantage of opportunities to
grow the long-term value of Plum Creek.
“We’re excited about the prospects for continued recovery and growth in
2013 and expect that the opportunities beyond are even more compelling.
Over the past year, housing has moved from being a drag on the economy
to being a bright spot. We are seeing improving demand for lumber and
wood panels that is expected to translate into higher demand and pricing
for logs in 2013.”
Summary of 2012 Results
The company reported $281 million in operating income for 2012, $6
million higher than 2011’s $275 million operating income. Profit
improvement in the timber and manufacturing businesses were partially
offset by lower income from the real estate segment.
The company’s timber resource segments reported a combined $110 million
of operating income for 2012, up $12 million from 2011’s level. Sawlog
prices were largely unchanged from year to year while pulpwood prices
increased approximately $1 per ton in both the Northern and Southern
regions. The company’s harvest level of 17.9 million tons was 13 percent
higher than the 2011 harvest of 15.8 million tons. In the North, the
total harvest grew nearly 190,000 tons, or 5 percent. In the South, the
total harvest grew approximately 1.9 million tons, a 17 percent increase
in harvest volume compared to 2011. The company’s early 2012 timber deed
acquisition contributed approximately 650,000 tons of the increase.
In the Real Estate segment, the company reported revenue of $352 million
in 2012 and $301 million in 2011. Operating income was $187 million
during 2012 compared with $195 million during 2011. Per acre values of
the various land types sold were consistent with those realized for the
past four years. The decline in operating margin in the segment was due
entirely to higher-than-typical book basis of the land sold during 2012.
Operating income from the company’s Manufacturing segment was $29
million, nearly double the $15 million reported in 2011. Product prices
in each of the segment’s product lines increased between three and ten
percent when compared to 2011 prices. Sales volumes for plywood and
Medium Density Fiberboard (MDF) increased 16 percent and 24 percent
respectively while lumber sales volumes were largely unchanged.
Review of Quarterly Operations
The Northern Resources segment reported operating profit of $5 million
for the fourth quarter, compared to a $7 million profit reported in the
fourth quarter of 2011. As planned, the company’s fourth quarter harvest
volumes were lower than those of the same period of 2011. The eleven
percent lower harvest volumes combined with temporarily higher road
expenses offset the benefit of slightly higher prices for both sawlogs
and pulpwood experienced in the fourth quarter of 2012.
The Southern Resources segment reported fourth quarter operating profit
of $24 million, an increase of $5 million from the fourth quarter of
2011. Average pulpwood prices have increased approximately $2 per ton,
or 16 percent, compared to the fourth quarter of 2011 as strong demand
from pulp and paper customers and recovering demand from Oriented
Strandboard (OSB) producers have kept pressure on the resource
throughout the region. The company increased its pulpwood harvest
approximately 10 percent over fourth quarter 2011 levels to serve
customer needs and capture attractive pricing. Southern sawlog prices
were unchanged from their fourth quarter 2011 level. The 5 percent
increase in the fourth quarter sawlog harvest came exclusively from the
timber deed acquired in the first quarter of 2012.
The Real Estate segment reported revenue of $109 million and operating
profit of $74 million in the fourth quarter of 2012. The segment
reported $93 million of revenue and $61 million of operating profit for
the fourth quarter of 2011. The company sold approximately 47,000 acres
of land in the fourth quarter of 2012. Sales included an approximately
16,600 acre large, non-strategic sale of western Oregon timberlands for
$58 million, or $3,500 per acre. The balance of the properties sold
consisted of 9,700 acres of rural recreation lands that captured
approximately $1,950 per acre, approximately 3,550 acres of conservation
lands sold for more than $2,250 per acre, and 17,100 acres of lower
productivity, non-strategic properties captured $1,365 per acre.
The Manufacturing segment reported operating profit of $7 million for
the fourth quarter of 2012, up $4 million from the same period of 2011.
Prices for lumber, plywood, and MDF were higher than fourth quarter 2011
levels. Plywood prices in particular were up nearly 19 percent from
their fourth quarter 2011 level while lumber and MDF prices increased
more modestly, one and four percent respectively. Lumber sales volumes
were similar to those of the fourth quarter of 2011, while plywood and
MDF sales volumes improved nine percent and 25 percent, respectively.
Fourth Quarter Debt Issue
As previously announced, during the fourth quarter the company issued
$325 million of 3.25% senior unsecured notes due 2023.
Outlook
Lumber, plywood, and OSB customers are anticipating continued demand
growth in 2013 as residential construction activity continues to recover
and housing starts approach 1 million units for the first time since
2007. As sawlog customers increase production to meet this demand
growth, the company expects sawlog prices to improve. Pulpwood demand
from pulp and paper mills throughout the nation remains very good and
recovering demand from OSB producers and emerging demand from wood
pellet producers are expected to result in improved pulpwood prices in
the South and continued attractive prices in the North.
The company plans to harvest between 17.5 and 18.0 million tons of
timber this year, similar to 2012’s 17.9 million ton harvest. While the
total harvest volume is expected to be largely unchanged, the company
expects to shift the mix of its harvest during 2013 as sawlog demand and
pricing improves.
Improving consumer confidence and continued interest in hard asset
investments is expected to provide a solid foundation for rural real
estate activity, particularly in the Gulf South and Lake State regions.
Real Estate segment sales for the year are expected to be between $250
million and $300 million with land basis expense between 30 and 35
percent of sales. First quarter sales are expected to be between $80 and
$85 million.
Lumber, specialty plywood and MDF markets are expected to remain strong
and grow further in the coming year. As a result, Manufacturing segment
results are expected to continue to improve in 2013.
Third-party interest expense in 2013 is expected to be approximately $80
million; about $2 million lower than 2012’s expense.
Reflecting all of these factors, the company expects 2013 income to be
between $1.25 and $1.50 per share. The company expects to report first
quarter income between $0.28 and $0.33 per share.
“We expect improving results from our timber resource and manufacturing
businesses in 2013,” continued Holley. “We expect real estate sales to
moderate as we do not expect to repeat the relatively high level of
large, non-strategic timberland sales concluded in 2012.
“The management team and I are as excited about the future at Plum Creek
as we have ever been. Recovering demand and the structural changes to
timber supply and demand in North America are setting the table for
excellent growth in the coming years. Years of thoughtful, disciplined
capital allocation have positioned us to benefit tremendously as these
shifts in the marketplace occur. We have an unmatched asset base, strong
balance sheet and excellent financial flexibility, all the tools
required to continue our disciplined approach to long-term value
creation for our shareholders,” concluded Holley.
Earnings Conference Call and Supplemental Information
Plum Creek will hold a conference call today, Jan. 28, at 5:00 p.m. ET
(2:00 p.m. PT). A live webcast of the conference call may be accessed
through Plum Creek’s Internet site at www.plumcreek.com
by clicking on the “Investors” link.
Investors without Internet access should dial 1-800-572-9852 at least 10
minutes prior to the start of the call, referencing Plum Creek’s
earnings conference call. Those wishing to access the call from outside
the United States and Canada should dial 1-706-645-9676, also
referencing Plum Creek’s earnings conference call. Replay of the call
will be available for 48 hours after completion of the live call and can
be accessed at 1-855-859-2056 or 1-404-537-3406 (international calls),
using the code 31584649.
Supplemental financial information for Plum Creek operations, including
statistical data and reconciliations to non-GAAP measures is available
in the Investors section of Plum Creek’s website at www.plumcreek.com.
Plum Creek is one of the largest landowners in the nation and the most
geographically diverse, with approximately 6.4 million acres of
timberlands in major timber producing regions of the United States and
wood products manufacturing facilities in the Northwest. For more
information, visit www.plumcreek.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Litigation Reform Act of 1995 as amended. Some of
these forward-looking statements can be identified by the use of
forward-looking words such as "believes," "expects," "may," "will,"
"should," "seek," "approximately," "intends," "plans," "estimates," or
"anticipates," or the negative of those words or other comparable
terminology. The accuracy of such statements is subject to a number of
risks, uncertainties and assumptions including, but not limited to, the
cyclical nature of the forest products industry, our ability to harvest
our timber, our ability to execute our acquisition strategy, the market
for and our ability to sell or exchange non-strategic timberlands and
timberland properties that have higher and better uses, and various
regulatory constraints. These and other risks, uncertainties and
assumptions are detailed from time to time in our filings with the
Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended, and the Securities Act of 1933, as amended. It is
likely that if one or more of the risks materializes, or if one or more
assumptions prove to be incorrect, the current expectations of Plum
Creek and its management will not be realized. Forward-looking
statements are not guarantees of performance, and speak only as of the
date made, and neither Plum Creek nor its management undertakes any
obligation to update or revise any forward-looking statements.
|
|
| PLUM CREEK TIMBER COMPANY, INC. |
| CONSOLIDATED STATEMENTS OF INCOME |
| (UNAUDITED) |
|
| | | |
| | | |
|
(In Millions, Except Per Share Amounts)
| | Year Ended December 31, |
|
| 2012 |
|
2011
|
| REVENUES: | | | | |
|
Timber
| | $ | 641 | | |
$
|
572
| |
|
Real Estate
| | 352 | | |
301
| |
|
Manufacturing
| | 324 | | |
273
| |
|
Other
| | 22 |
| |
21
|
|
|
Total Revenues
| | 1,339 |
| |
1,167
|
|
| | | |
|
| COSTS AND EXPENSES: | | | | |
|
Cost of Goods Sold:
| | | | |
|
Timber
| | 498 | | |
445
| |
|
Real Estate
| | 157 | | |
92
| |
|
Manufacturing
| | 286 | | |
250
| |
|
Other
| | 2 |
| |
2
|
|
|
Total Cost of Goods Sold
| | 943 | | |
789
| |
|
Selling, General and Administrative
| | 116 |
| |
106
|
|
|
Total Costs and Expenses
| | 1,059 |
| |
895
|
|
| | | |
|
|
Other Operating Income (Expense), net
| | 1 |
| |
3
|
|
| | | |
|
|
Operating Income
| | 281 | | |
275
| |
| | | |
|
|
Equity Earnings from Timberland Venture
| | 59 | | |
56
| |
| | | |
|
|
Interest Expense, net:
| | | | |
|
Interest Expense (Debt Obligations to Unrelated Parties)
| | 82 | | |
81
| |
|
Interest Expense (Note Payable to Timberland Venture)
| | 58 |
| |
58
|
|
|
Total Interest Expense, net
| | 140 | | |
139
| |
| | | |
|
|
Income before Income Taxes
| | 200 | | |
192
| |
| | | |
|
|
Provision (Benefit) for Income Taxes
| | (3 | ) | |
(1
|
)
|
| |
| |
|
|
Net Income
| | $ | 203 |
| |
$
|
193
|
|
| | | |
|
| PER SHARE AMOUNTS: | | | | |
| | | |
|
|
Net Income per Share – Basic
| | $ | 1.25 | | |
$
|
1.19
| |
|
Net Income per Share – Diluted
| | $ | 1.25 | | |
$
|
1.19
| |
| | | |
|
|
Weighted-Average Number of Shares Outstanding
| | | | |
|
– Basic
| | 161.5 | | |
161.7
| |
|
– Diluted
| | 161.9 | | |
162.0
| |
| | | | | |
|
|
|
| PLUM CREEK TIMBER COMPANY, INC. |
| CONSOLIDATED STATEMENTS OF INCOME |
| (UNAUDITED) |
|
| | | |
| | | |
|
(In Millions, Except Per Share Amounts)
| | Quarter Ended December 31, |
|
| 2012 |
|
2011
|
| REVENUES: | | | | |
|
Timber
| | $ | 161 | | |
$
|
151
| |
|
Real Estate
| | 109 | | |
93
| |
|
Manufacturing
| | 78 | | |
65
| |
|
Other
| | 6 |
| |
6
|
|
Total Revenues
| | 354 |
| |
315
|
|
| | | |
|
| COSTS AND EXPENSES: | | | | |
|
Cost of Goods Sold:
| | | | |
|
Timber
| | 124 | | |
118
| |
|
Real Estate
| | 33 | | |
24
| |
|
Manufacturing
| | 69 | | |
60
| |
|
Other
| | 1 |
| |
1
|
|
|
Total Cost of Goods Sold
| | 227 | | |
203
| |
|
Selling, General and Administrative
| | 30 |
| |
29
|
|
|
Total Costs and Expenses
| | 257 |
| |
232
|
|
| | | |
|
|
Other Operating Income (Expense), net
| | — |
| |
—
|
|
| | | |
|
|
Operating Income
| | 97 | | |
83
| |
| | | |
|
|
Equity Earnings from Timberland Venture
| | 17 | | |
12
| |
| | | |
|
|
Interest Expense, net:
| | | | |
|
Interest Expense (Debt Obligations to Unrelated Parties)
| | 21 | | |
20
| |
|
Interest Expense (Note Payable to Timberland Venture)
| | 15 |
| |
15
|
|
|
Total Interest Expense, net
| | 36 | | |
35
| |
| | | |
|
|
Income before Income Taxes
| | 78 | | |
60
| |
| | | |
|
|
Provision (Benefit) for Income Taxes
| | (1 | ) | |
(1
|
)
|
| |
| |
|
|
Net Income
| | $ | 79 |
| |
$
|
61
|
|
| | | |
|
| PER SHARE AMOUNTS: | | | | |
| | | |
|
|
Net Income per Share – Basic
| | $ | 0.49 | | |
$
|
0.38
| |
|
Net Income per Share – Diluted
| | $ | 0.49 | | |
$
|
0.38
| |
| | | |
|
|
Weighted-Average Number of Shares Outstanding
| | | | |
|
– Basic
| | 161.7 | | |
161.4
| |
|
– Diluted
| | 162.2 | | |
161.6
| |
| | | | | |
|
|
|
| PLUM CREEK TIMBER COMPANY, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (UNAUDITED) |
|
| | | |
| | | |
|
(In Millions, Except Per Share Amounts)
| | December 31, 2012 | |
December 31, 2011
|
| ASSETS | | | | |
|
Current Assets:
| | | | |
|
Cash and Cash Equivalents
| | $ | 356 | | |
$
|
254
| |
|
Accounts Receivable
| | 22 | | |
28
| |
|
Inventories
| | 49 | | |
48
| |
|
Deferred Tax Asset
| | 7 | | |
5
| |
|
Assets Held for Sale
| | 61 | | |
103
| |
|
Other Current Assets
| | 13 |
| |
15
|
|
| | 508 | | |
453
| |
| | | |
|
|
Timber and Timberlands, net
| | 3,363 | | |
3,365
| |
|
Mineral Rights, net
| | 87 | | |
12
| |
|
Property, Plant and Equipment, net
| | 127 | | |
138
| |
|
Equity Investment in Timberland Venture
| | 204 | | |
201
| |
|
Deferred Tax Asset
| | 19 | | |
18
| |
|
Investment in Grantor Trusts (at Fair Value)
| | 39 | | |
36
| |
|
Other Assets
| | 37 |
| |
36
|
|
|
Total Assets
| | $ | 4,384 |
| |
$
|
4,259
|
|
| | | |
|
| LIABILITIES | | | | |
|
Current Liabilities:
| | | | |
|
Current Portion of Long-Term Debt
| | $ | 248 | | |
$
|
352
| |
|
Line of Credit
| | 104 | | |
348
| |
|
Accounts Payable
| | 26 | | |
25
| |
|
Interest Payable
| | 26 | | |
26
| |
|
Wages Payable
| | 29 | | |
20
| |
|
Taxes Payable
| | 9 | | |
9
| |
|
Deferred Revenue
| | 23 | | |
27
| |
|
Other Current Liabilities
| | 7 |
| |
8
|
|
| | 472 | | |
815
| |
| | | |
|
|
Long-Term Debt
| | 1,815 | | |
1,290
| |
|
Note Payable to Timberland Venture
| | 783 | | |
783
| |
|
Other Liabilities
| | 91 |
| |
108
|
|
|
Total Liabilities
| | 3,161 |
| |
2,996
|
|
| | | |
|
|
Commitments and Contingencies
| | | | |
| | | |
|
| STOCKHOLDERS’ EQUITY | | | | |
|
Preferred Stock, $0.01 Par Value, Authorized Shares – 75.0,
Outstanding – None
| | — | | |
—
| |
|
Common Stock, $0.01 Par Value, Authorized Shares – 300.6,
Outstanding (net of Treasury Stock) – 162.0 at December 31, 2012 and
161.3 at December 31, 2011
| | 2 | | |
2
| |
|
Additional Paid-In Capital
| | 2,288 | | |
2,261
| |
|
Retained Earnings (Accumulated Deficit)
| | (97 | ) | |
(28
|
)
|
|
Treasury Stock, at Cost, Common Shares – 26.9 at December 31, 2012
and 26.9 at December 31, 2011
| | (938 | ) | |
(937
|
)
|
|
Accumulated Other Comprehensive Income (Loss)
| | (32 | ) | |
(35
|
)
|
|
Total Stockholders’ Equity
| | 1,223 |
| |
1,263
|
|
|
Total Liabilities and Stockholders’ Equity
| | $ | 4,384 |
| |
$
|
4,259
|
|
| | | | | | | |
|
|
|
| PLUM CREEK TIMBER COMPANY, INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (UNAUDITED) |
|
| | | |
| | | |
| | Year Ended December 31, |
|
(In Millions)
| | 2012 | |
2011
|
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | |
|
Net Income
| | $ | 203 | | |
$
|
193
| |
|
Adjustments to Reconcile Net Income to Net Cash Provided By
Operating Activities:
| | | | |
|
Depreciation, Depletion and Amortization
| | 114 | | |
96
| |
|
Basis of Real Estate Sold
| | 138 | | |
77
| |
|
Equity Earnings from Timberland Venture
| | (59 | ) | |
(56
|
)
|
|
Distributions from Timberland Venture
| | 56 | | |
56
| |
|
Deferred Income Taxes
| | (3 | ) | |
—
| |
|
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)
| | (8 | ) | |
11
| |
|
Timber Deed Acquired
| | (98 | ) | |
(5
|
)
|
|
Pension Plan Contributions
| | (20 | ) | |
(3
|
)
|
|
Working Capital Changes Impacting Cash Flow:
| | | | | | |
|
Income Tax Receivable
| | — | | |
(1
|
)
|
|
Other Working Capital Changes
| | 15 | | |
(7
|
)
|
|
Other
| | 15 |
| |
13
|
|
|
Net Cash Provided By Operating Activities
| | 353 |
| |
374
|
|
| | | |
|
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | |
|
Capital Expenditures (Excluding Timberland Acquisitions)
| | (72 | ) | |
(70
|
)
|
|
Timberlands Acquired
| | (18 | ) | |
(89
|
)
|
|
Mineral Rights Acquired
| | (76 | ) | |
(12
|
)
|
|
Other
| | (1 | ) | |
—
|
|
|
Net Cash Used In Investing Activities
| | (167 | ) | |
(171
|
)
|
| | | |
|
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | |
|
Dividends
| | (272 | ) | |
(272
|
)
|
|
Borrowings on Line of Credit
| | 1,843 | | |
1,921
| |
|
Repayments on Line of Credit
| | (2,087 | ) | |
(1,739
|
)
|
|
Proceeds from Issuance of Long-Term Debt
| | 773 | | |
—
| |
|
Debt Issuance Costs
| | (5 | ) | |
—
| |
|
Principal Payments and Retirement of Long-Term Debt
| | (353 | ) | |
(95
|
)
|
|
Proceeds from Stock Option Exercises
| | 18 | | |
10
| |
|
Acquisition of Treasury Stock
| | (1 | ) | |
(26
|
)
|
|
Net Cash Used In Financing Activities
| | (84 | ) | |
(201
|
)
|
| | | |
|
|
Increase (Decrease) In Cash and Cash Equivalents
| | 102 | | |
2
| |
|
Cash and Cash Equivalents:
| | | | |
|
Beginning of Period
| | 254 | | |
252
| |
| |
| |
|
|
End of Period
| | $ | 356 |
| |
$
|
254
|
|
| | | | | | | |
|
|
|
| PLUM CREEK TIMBER COMPANY, INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (UNAUDITED) |
|
| | | |
| | | |
| | Quarter Ended December 31, |
|
(In Millions)
| | 2012 | |
2011
|
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | |
|
Net Income
| | $ | 79 | | |
$
|
61
| |
|
Adjustments to Reconcile Net Income to Net Cash Provided By
Operating Activities:
| | | | |
|
Depreciation, Depletion and Amortization
| | 27 | | |
26
| |
|
Basis of Real Estate Sold
| | 27 | | |
20
| |
|
Equity Earnings from Timberland Venture
| | (17 | ) | |
(12
|
)
|
|
Deferred Income Taxes
| | (2 | ) | |
(2
|
)
|
|
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)
| | (2 | ) | |
(3
|
)
|
|
Timber Deed Acquired
| | — | | |
(5
|
)
|
|
Pension Plan Contributions
| | (10 | ) | |
—
| |
|
Working Capital Changes
| | 10 | | |
(8
|
)
|
|
Other
| | 4 |
| |
3
|
|
|
Net Cash Provided By Operating Activities
| | 116 |
| |
80
|
|
| | | |
|
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | |
|
Capital Expenditures (Excluding Timberland Acquisitions)
| | (20 | ) | |
(27
|
)
|
|
Timberlands Acquired
| | — | | |
(13
|
)
|
|
Mineral Rights Acquired
| | (76 | ) | |
—
|
|
|
Net Cash Used In Investing Activities
| | (96 | ) | |
(40
|
)
|
| | | |
|
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | |
|
Dividends
| | (68 | ) | |
(68
|
)
|
|
Borrowings on Line of Credit
| | 131 | | |
824
| |
|
Repayments on Line of Credit
| | (378 | ) | |
(778
|
)
|
|
Proceeds from Issuance of Long-Term Debt
| | 323 | | |
—
| |
|
Debt Issuance Costs
| | (2 | ) | |
—
| |
|
Principal Payments and Retirement of Long-Term Debt
| | (3 | ) | |
(46
|
)
|
|
Proceeds from Stock Option Exercises
| | 13 | | |
1
| |
|
Acquisition of Treasury Stock
| | — |
| |
(10
|
)
|
|
Net Cash Provided By (Used In) Financing Activities
| | 16 |
| |
(77
|
)
|
| | | |
|
|
Increase (Decrease) In Cash and Cash Equivalents
| | 36 | | |
(37
|
)
|
|
Cash and Cash Equivalents:
| | | | |
|
Beginning of Period
| | 320 | | |
291
| |
| |
| |
|
|
End of Period
| | $ | 356 |
| |
$
|
254
|
|
| | | | | | | |
|
|
|
| PLUM CREEK TIMBER COMPANY, INC. |
| SEGMENT DATA |
| (UNAUDITED) |
|
| | | |
| | | |
| | Year Ended December 31, |
|
(In Millions)
| | 2012 | |
2011
|
| Revenues: | | | | |
|
Northern Resources
| | $ | 246 | | |
$
|
233
| |
|
Southern Resources
| | 417 | | |
359
| |
|
Real Estate
| | 352 | | |
301
| |
|
Manufacturing
| | 324 | | |
273
| |
|
Other
| | 22 | | |
21
| |
|
Eliminations
| | (22 | ) | |
(20
|
)
|
|
Total Revenues
| | $ | 1,339 |
| |
$
|
1,167
|
|
| | | |
|
| Operating Income (Loss): | | | | |
|
Northern Resources
| | $ | 20 | | |
$
|
24
| |
|
Southern Resources
| | 90 | | |
74
| |
|
Real Estate
| | 187 | | |
195
| |
|
Manufacturing
| | 29 | | |
15
| |
|
Other (A) | | 19 | | |
21
| |
|
Other Costs and Eliminations, net
| | (64 | ) | |
(54
|
)
|
|
Total Operating Income
| | $ | 281 |
| |
$
|
275
|
|
| | | |
|
| Adjusted EBITDA by Segment: (B) | | | | |
|
Northern Resources
| | $ | 46 | | |
$
|
50
| |
|
Southern Resources
| | 157 | | |
125
| |
|
Real Estate
| | 326 | | |
274
| |
|
Manufacturing
| | 44 | | |
28
| |
|
Other
| | 20 | | |
21
| |
|
Other Costs and Eliminations, net
| | (63 | ) | |
(52
|
)
|
|
Total
| | $ | 530 |
| |
$
|
446
|
|
| | | | | | | |
|
(A) During 2011, the company received a payment of $2 million for
the settlement of a dispute that related to certain mineral rights. This
amount is reported as Other Operating Gain/(Loss) in our Other Segment
and is included in Other Operating Income (Expense), net in the
Consolidated Statements of Income.
(B) Refer to the separate schedule, "Segment Data - Adjusted
EBITDA" for reconciliations of Adjusted EBITDA to operating income and
net cash provided by operating activities.
|
|
| PLUM CREEK TIMBER COMPANY, INC. |
| SEGMENT DATA |
| (UNAUDITED) |
|
| | | |
| | | |
| | Quarter Ended December 31, |
|
(In Millions)
| | 2012 | |
2011
|
| Revenues: | | | | |
|
Northern Resources
| | $ | 61 | | |
$
|
66
| |
|
Southern Resources
| | 105 | | |
93
| |
|
Real Estate
| | 109 | | |
93
| |
|
Manufacturing
| | 78 | | |
65
| |
|
Other
| | 6 | | |
6
| |
|
Eliminations
| | (5 | ) | |
(8
|
)
|
|
Total Revenues
| | $ | 354 |
| |
$
|
315
|
|
| | | |
|
| Operating Income (Loss): | | | | |
|
Northern Resources
| | $ | 5 | | |
$
|
7
| |
|
Southern Resources
| | 24 | | |
19
| |
|
Real Estate
| | 74 | | |
61
| |
|
Manufacturing
| | 7 | | |
3
| |
|
Other
| | 5 | | |
5
| |
|
Other Costs and Eliminations, net
| | (18 | ) | |
(12
|
)
|
|
Total Operating Income
| | $ | 97 |
| |
$
|
83
|
|
| | | |
|
| Adjusted EBITDA by Segment: (A) | | | | |
|
Northern Resources
| | $ | 11 | | |
$
|
14
| |
|
Southern Resources
| | 39 | | |
33
| |
|
Real Estate
| | 101 | | |
82
| |
|
Manufacturing
| | 11 | | |
6
| |
|
Other
| | 6 | | |
5
| |
|
Other Costs and Eliminations, net
| | (18 | ) | |
(11
|
)
|
|
Total
| | $ | 150 |
| |
$
|
129
|
|
| | | | | | | |
|
(A) Refer to the separate schedule, "Segment Data - Adjusted
EBITDA" for reconciliations of Adjusted EBITDA to operating income and
net cash provided by operating activities.
Plum Creek Timber Company, Inc
Segment Data - Adjusted EBITDA
Reconciliation of Operating Income and Net Cash
Provided by Operating Activities
(Unaudited)
We define Adjusted EBITDA as earnings from continuing operations,
excluding equity method earnings, and before interest, taxes,
depreciation, depletion, amortization, and basis in lands sold. Adjusted
EBITDA is not considered a measure of financial performance under U.S.
generally accepted accounting principles (U.S. GAAP) and the items
excluded from Adjusted EBITDA are significant components of our
consolidated financial statements.
We present Adjusted EBITDA as a supplemental performance measure because
we believe it facilitates operating performance comparisons from period
to period, and each business segment’s contribution to that performance,
by eliminating non-cash charges to earnings, which can vary
significantly by business segment. These non-cash charges include timber
depletion, depreciation of fixed assets and the basis in lands sold. We
also use Adjusted EBITDA as a supplemental liquidity measure because we
believe it is useful in measuring our ability to generate cash. In
addition, we believe Adjusted EBITDA is commonly used by investors,
lenders and rating agencies to assess our financial performance.
A reconciliation of Adjusted EBITDA to net income and net cash from
operating activities, the most directly comparable U.S. GAAP performance
and liquidity measures, is provided in the following schedules:
|
|
|
| | | |
| | | |
| | | |
| | | |
| | Year Ended December 31, 2012 |
| | | | | | | |
|
| |
Operating Income
| |
Depreciation, Depletion and Amortization
| |
Basis of Real Estate Sold
| |
Adjusted EBITDA
|
| By Segment | | | | | | | | |
|
Northern Resources
| |
$
|
20
| | |
$
|
26
| | |
$
|
—
| | |
$
|
46
| |
|
Southern Resources
| |
90
| | |
67
| | |
—
| | |
157
| |
|
Real Estate
| |
187
| | |
1
| | |
138
| | |
326
| |
|
Manufacturing
| |
29
| | |
15
| | |
—
| | |
44
| |
|
Other
| |
19
| | |
1
| | |
—
| | |
20
| |
|
Other Costs and Eliminations
| |
(65
|
)
| |
1
| | |
—
| | |
(64
|
)
|
|
Other Unallocated Operating Income (Expense), net
| |
1
|
| |
—
|
| |
—
|
| |
1
|
|
|
Total
| |
$
|
281
|
| |
$
|
111
|
| |
$
|
138
|
| |
$
|
530
|
|
| | | | | | | |
|
| Reconciliation to Net Income(1) | | | | | | | | |
|
Equity Earnings from Timberland Venture
| |
59
| | | | | | | |
|
Interest Expense
| |
(140
|
)
| | | | | | |
|
(Provision) Benefit for Income Taxes
| |
3
|
| | | | | | |
|
Net Income
| |
$
|
203
|
| | | | | | |
| | | | | | | |
|
| Reconciliation to Net Cash Provided By Operating Activities | | | | | | | | |
|
Net Cash Flows from Operations
| | | | | | | |
$
|
353
| |
|
Interest Expense
| | | | | | | |
140
| |
|
Amortization of Debt Costs
| | | | | | | |
(3
|
)
|
|
Provision / (Benefit) for Income Taxes
| | | | | | | |
(3
|
)
|
|
Distributions from Timberland Venture
| | | | | | | |
(56
|
)
|
|
Deferred Income Taxes
| | | | | | | |
3
| |
|
Gain on Sale of Properties and Other Assets
| | | | | | | |
—
| |
|
Deferred Revenue from Long-Term Gas Leases
| | | | | | | |
8
| |
|
Timber Deed Acquired
| | | | | | | |
98
| |
|
Pension Plan Contributions
| | | | | | | |
20
| |
|
Working Capital Changes
| | | | | | | |
(15
|
)
|
|
Other
| | | | | | | |
(15
|
)
|
|
Adjusted EBITDA
| | | | | | | |
$
|
530
|
|
| | | | | | | | | |
|
(1) Includes reconciling items not allocated to segments
for financial reporting purposes.
|
|
|
|
| | | |
| | | |
| | | |
| | | |
| | Year Ended December 31, 2011 |
| | | | | | | |
|
| |
Operating Income
| |
Depreciation, Depletion and Amortization
| |
Basis of Real Estate Sold
| |
Adjusted EBITDA
|
| By Segment | | | | | | | | |
|
Northern Resources
| |
$
|
24
| | |
$
|
26
| | |
$
|
—
| | |
$
|
50
| |
|
Southern Resources
| |
74
| | |
51
| | |
—
| | |
125
| |
|
Real Estate
| |
195
| | |
2
| | |
77
| | |
274
| |
|
Manufacturing
| |
15
| | |
13
| | |
—
| | |
28
| |
|
Other
| |
21
| | |
—
| | |
—
| | |
21
| |
|
Other Costs and Eliminations
| |
(55
|
)
| |
2
| | |
—
| | |
(53
|
)
|
|
Other Unallocated Operating Income (Expense), net
| |
1
|
| |
—
|
| |
—
|
| |
1
|
|
|
Total
| |
$
|
275
|
| |
$
|
94
|
| |
$
|
77
|
| |
$
|
446
|
|
| | | | | | | |
|
| Reconciliation to Net Income(1) | | | | | | | | |
|
Equity Earnings from Timberland Venture
| |
56
| | | | | | | |
|
Interest Expense
| |
(139
|
)
| | | | | | |
|
(Provision) Benefit for Income Taxes
| |
1
|
| | | | | | |
|
Net Income
| |
$
|
193
|
| | | | | | |
| | | | | | | |
|
| Reconciliation to Net Cash Provided By Operating Activities | | | | | | | | |
|
Net Cash Flows from Operations
| | | | | | | |
$
|
374
| |
|
Interest Expense
| | | | | | | |
139
| |
|
Amortization of Debt Costs
| | | | | | | |
(2
|
)
|
|
Provision / (Benefit) for Income Taxes
| | | | | | | |
(1
|
)
|
|
Distributions from Timberland Venture
| | | | | | | |
(56
|
)
|
|
Deferred Income Taxes
| | | | | | | |
—
| |
|
Gain on Sale of Properties and Other Assets
| | | | | | | |
—
| |
|
Deferred Revenue from Long-Term Gas Leases
| | | | | | | |
(11
|
)
|
|
Timber Deed Acquired
| | | | | | | |
5
| |
|
Pension Plan Contributions
| | | | | | | |
3
| |
|
Working Capital Changes
| | | | | | | |
8
| |
|
Other
| | | | | | | |
(13
|
)
|
|
Adjusted EBITDA
| | | | | | | |
$
|
446
|
|
| | | | | | | | | |
|
(1) Includes reconciling items not allocated to segments
for financial reporting purposes.
|
|
|
|
| | | |
| | | |
| | | |
| | | |
| | Quarter Ended December 31, 2012 |
| | | | | | | |
|
| |
Operating Income
| |
Depreciation, Depletion and Amortization
| |
Basis of Real Estate Sold
| |
Adjusted EBITDA
|
| By Segment | | | | | | | | |
|
Northern Resources
| |
$
|
5
| | |
$
|
6
| | |
$
|
—
| | |
$
|
11
| |
|
Southern Resources
| |
24
| | |
15
| | |
—
| | |
39
| |
|
Real Estate
| |
74
| | |
—
| | |
27
| | |
101
| |
|
Manufacturing
| |
7
| | |
4
| | |
—
| | |
11
| |
|
Other
| |
5
| | |
1
| | |
—
| | |
6
| |
|
Other Costs and Eliminations
| |
(18
|
)
| |
—
| | |
—
| | |
(18
|
)
|
|
Other Unallocated Operating Income (Expense), net
| |
—
|
| |
—
|
| |
—
|
| |
—
|
|
|
Total
| |
$
|
97
|
| |
$
|
26
|
| |
$
|
27
|
| |
$
|
150
|
|
| | | | | | | |
|
| Reconciliation to Net Income(1) | | | | | | | | |
|
Equity Earnings from Timberland Venture
| |
17
| | | | | | | |
|
Interest Expense
| |
(36
|
)
| | | | | | |
|
(Provision) Benefit for Income Taxes
| |
1
|
| | | | | | |
|
Net Income
| |
$
|
79
|
| | | | | | |
| | | | | | | |
|
| Reconciliation to Net Cash Provided By Operating Activities | | | | | | | | |
|
Net Cash Flows from Operations
| | | | | | | |
$
|
116
| |
|
Interest Expense
| | | | | | | |
36
| |
|
Amortization of Debt Costs
| | | | | | | |
(1
|
)
|
|
Provision / (Benefit) for Income Taxes
| | | | | | | |
(1
|
)
|
|
Distributions from Timberland Venture
| | | | | | | |
—
| |
|
Deferred Income Taxes
| | | | | | | |
2
| |
|
Gain on Sale of Properties and Other Assets
| | | | | | | |
—
| |
|
Deferred Revenue from Long-Term Gas Leases
| | | | | | | |
2
| |
|
Timber Deed Acquired
| | | | | | | |
—
| |
|
Pension Plan Contributions
| | | | | | | |
10
| |
|
Working Capital Changes
| | | | | | | |
(10
|
)
|
|
Other
| | | | | | | |
(4
|
)
|
|
Adjusted EBITDA
| | | | | | | |
$
|
150
|
|
| | | | | | | | | |
|
(1) Includes reconciling items not allocated to segments
for financial reporting purposes.
|
|
|
|
| | | |
| | | |
| | | |
| | | |
| | Quarter Ended December 31, 2011 |
| | | | | | | |
|
| |
Operating Income
| |
Depreciation, Depletion and Amortization
| |
Basis of Real Estate Sold
| |
Adjusted EBITDA
|
| By Segment | | | | | | | | |
|
Northern Resources
| |
$
|
7
| | |
$
|
7
| | |
$
|
—
| | |
$
|
14
| |
|
Southern Resources
| |
19
| | |
14
| | |
—
| | |
33
| |
|
Real Estate
| |
61
| | |
1
| | |
20
| | |
82
| |
|
Manufacturing
| |
3
| | |
3
| | |
—
| | |
6
| |
|
Other
| |
5
| | |
—
| | |
—
| | |
5
| |
|
Other Costs and Eliminations
| |
(12
|
)
| |
1
| | |
—
| | |
(11
|
)
|
|
Other Unallocated Operating Income (Expense), net
| |
—
|
| |
—
|
| |
—
|
| |
—
|
|
|
Total
| |
$
|
83
|
| |
$
|
26
|
| |
$
|
20
|
| |
$
|
129
|
|
| | | | | | | |
|
| Reconciliation to Net Income(1) | | | | | | | | |
|
Equity Earnings from Timberland Venture
| |
12
| | | | | | | |
|
Interest Expense
| |
(35
|
)
| | | | | | |
|
(Provision) Benefit for Income Taxes
| |
1
|
| | | | | | |
|
Net Income
| |
$
|
61
|
| | | | | | |
| | | | | | | |
|
| Reconciliation to Net Cash Provided By Operating Activities | | | | | | | | |
|
Net Cash Flows from Operations
| | | | | | | |
$
|
80
| |
|
Interest Expense
| | | | | | | |
35
| |
|
Amortization of Debt Costs
| | | | | | | |
—
| |
|
Provision / (Benefit) for Income Taxes
| | | | | | | |
(1
|
)
|
|
Distributions from Timberland Venture
| | | | | | | |
—
| |
|
Deferred Income Taxes
| | | | | | | |
2
| |
|
Gain on Sale of Properties and Other Assets
| | | | | | | |
—
| |
|
Deferred Revenue from Long-Term Gas Leases
| | | | | | | |
3
| |
|
Timber Deed Acquired
| | | | | | | |
5
| |
|
Pension Plan Contributions
| | | | | | | |
—
| |
|
Working Capital Changes
| | | | | | | |
8
| |
|
Other
| | | | | | | |
(3
|
)
|
|
Adjusted EBITDA
| | | | | | | |
$
|
129
|
|
| | | | | | | | | |
|
(1) Includes reconciling items not allocated to segments
for financial reporting purposes.
|
|
|
Plum Creek Timber Company, Inc.
Investors: John Hobbs,
1-800-858-5347
Media: Kathy Budinick, 1-888-467-3751