PLUM CREEK TIMBER CO INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION

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8-K - FORM 8-K - PLUM CREEK TIMBER CO INC	a201203318k.htm
EX-99.1 - PRESS RELEASE - PLUM CREEK TIMBER CO INC	exhibit99120120331.htm

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



(In Millions, Except Per Share Amounts)	Quarter Ended March 31,
(In Millions, Except Per Share Amounts)	2012			2011
REVENUES:
Timber	$	155		$	141
Real Estate	100			62
Manufacturing	76			67
Other	6			5
Total Revenues	337			275

COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	121			107
Real Estate	68			22
Manufacturing	70			61
Other	—			—
Total Cost of Goods Sold	259			190
Selling, General and Administrative	28			28
Total Costs and Expenses	287			218

Other Operating Income (Expense), net	—			3

Operating Income	50			60

Equity Earnings from Timberland Venture	13			14

Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	21			21
Interest Expense (Note Payable to Timberland Venture)	14			14
Total Interest Expense, net	35			35

Income before Income Taxes	28			39

Provision (Benefit) for Income Taxes	(1		)	1

Net Income	$	29		$	38

PER SHARE AMOUNTS:

Net Income per Share – Basic	$	0.18		$	0.23
Net Income per Share – Diluted	$	0.18		$	0.23

Weighted-Average Number of Shares Outstanding
– Basic	161.4			161.8
– Diluted	161.7			162.1

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



(In Millions, Except Per Share Amounts)	March 31, 2012			December 31, 2011
ASSETS
Current Assets:
Cash and Cash Equivalents	$	273		$	254
Accounts Receivable	38			28
Inventories	50			48
Deferred Tax Asset	6			6
Assets Held for Sale	39			103
Other Current Assets	18			15
	424			454

Timber and Timberlands, net	3,475			3,377
Property, Plant and Equipment, net	135			138
Equity Investment in Timberland Venture	186			201
Deferred Tax Asset	18			17
Investment in Grantor Trusts (at Fair Value)	38			36
Other Assets	38			36
Total Assets	$	4,314		$	4,259

LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	176		$	352
Line of Credit	451			348
Accounts Payable	27			25
Interest Payable	24			26
Wages Payable	7			20
Taxes Payable	11			9
Deferred Revenue	23			27
Other Current Liabilities	9			8
	728			815

Long-Term Debt	1,467			1,290
Note Payable to Timberland Venture	783			783
Other Liabilities	105			108
Total Liabilities	3,083			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) – 161.5 at March 31, 2012 and 161.3 at December 31, 2011	2			2
Additional Paid-In Capital	2,266			2,261
Retained Earnings (Accumulated Deficit)	(67		)	(28		)
Treasury Stock, at Cost, Common Shares – 26.9 at March 31, 2012 and 26.9 at December 31, 2011	(938		)	(937		)
Accumulated Other Comprehensive Income (Loss)	(32		)	(35		)
Total Stockholders’ Equity	1,231			1,263
Total Liabilities and Stockholders’ Equity	$	4,314		$	4,259

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



	Quarter Ended March 31,
(In Millions)	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	29		$	38
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization	27			22
Basis of Real Estate Sold	63			19
Equity Earnings from Timberland Venture	(13		)	(14		)
Distributions from Timberland Venture	28			28
Deferred Income Taxes	(1		)	3
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(2		)	7
Timber Deed Acquired	(98		)	—
Working Capital Changes	(30		)	(30		)
Other	3			3
Net Cash Provided By Operating Activities	6			76

CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(18		)	(12		)
Timberlands and Minerals Acquired	(2		)	—
Other	(1		)	—
Net Cash Used In Investing Activities	(21		)	(12		)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(68		)	(68		)
Borrowings on Line of Credit	759			245
Repayments on Line of Credit	(656		)	(196		)
Debt Issuance Costs	(3		)	—
Principal Payments and Retirement of Long-Term Debt	—			(49		)
Proceeds from Stock Option Exercises	3			7
Acquisition of Treasury Stock	(1		)	(1		)
Net Cash Provided By (Used In) Financing Activities	34			(62		)

Increase (Decrease) In Cash and Cash Equivalents	19			2
Cash and Cash Equivalents:
Beginning of Period	254			252

End of Period	$	273		$	254

Exhibit 99.2

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)



	Quarter Ended March 31,
(In Millions)	2012			2011
Revenues:
Northern Resources	$	64		$	55
Southern Resources	97			89
Real Estate	100			62
Manufacturing	76			67
Other	6			5
Eliminations	(6		)	(3		)
Total Revenues	$	337		$	275

Operating Income (Loss):
Northern Resources	$	6		$	7
Southern Resources	21			19
Real Estate	30			38
Manufacturing	4			4
Other ⁽^A)	5			7
Other Costs and Eliminations, net	(16		)	(15		)
Total Operating Income	$	50		$	60

Adjusted EBITDA by Segment: ^(B)
Northern Resources	$	13		$	13
Southern Resources	36			31
Real Estate	93			57
Manufacturing	8			7
Other	5			7
Other Costs and Eliminations, net	(16		)	(15		)
Total	$	139		$	100

(A) During the first quarter of 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.

Exhibit 99.2

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)



		2012
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	19							$	19
Pulpwood	$/Ton Stumpage	$	10							$	10
Northern Resources
Sawlog	$/Ton Delivered	$	67							$	67
Pulpwood	$/Ton Delivered	$	42							$	42

Lumber⁽¹⁾	$/MBF	$	529							$	529
Plywood ⁽¹⁾	$/MSF	$	387							$	387
Fiberboard ⁽¹⁾	$/MSF	$	607							$	607

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,340								1,340
Pulpwood	1,000 Tons	1,842								1,842
Total Harvest		3,182		—		—		—		3,182
Northern Resources
Sawlog	1,000 Tons	656								656
Pulpwood	1,000 Tons	452								452
Total Harvest		1,108		—		—		—		1,108

Lumber	MBF	30,199								30,199
Plywood	MSF	53,301								53,301
Fiberboard	MSF	44,701								44,701

		2011
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	20	$	19	$	20	$	20	$	19
Pulpwood	$/Ton Stumpage	$	10	$	9	$	9	$	9	$	9
Northern Resources
Sawlog	$/Ton Delivered	$	69	$	72	$	71	$	67	$	69
Pulpwood	$/Ton Delivered	$	40	$	40	$	42	$	41	$	41

Lumber⁽¹⁾	$/MBF	$	533	$	529	$	493	$	515	$	518
Plywood ⁽¹⁾	$/MSF	$	371	$	382	$	382	$	379	$	379
Fiberboard ⁽¹⁾	$/MSF	$	608	$	608	$	607	$	611	$	608

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,286		1,126		1,289		1,268		4,969
Pulpwood	1,000 Tons	1,494		1,592		1,833		1,903		6,822
Total Harvest		2,780		2,718		3,122		3,171		11,791
Northern Resources
Sawlog	1,000 Tons	506		471		661		681		2,319
Pulpwood	1,000 Tons	478		244		500		458		1,680
Total Harvest		984		715		1,161		1,139		3,999

Lumber	MBF	29,250		29,654		29,979		27,042		115,925
Plywood	MSF	44,156		44,842		41,632		41,803		172,433
Fiberboard	MSF	40,690		43,070		38,485		37,899		160,144

(1) Represents prices at mill level.

Exhibit 99.2

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)



	2012
	1st Qtr ⁽¹⁾		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	4,385								4,385
Large Non-strategic	69,770								69,770
Conservation	1,145								1,145
HBU/Recreation	4,030								4,030
Development Properties	—								—
Conservation Easements	n/a								n/a
	79,330		—		—				79,330
Price per Acre
Small Non-strategic	$	1,115							$	1,115
Large Non-strategic	$	1,210							$	1,210
Conservation	$	1,560							$	1,560
HBU/Recreation	$	2,140							$	2,140
Development Properties	$	—							$	—
Conservation Easements	$	—							$	—

Revenue, ($ millions)
Small Non-strategic	$	5							$	5
Large Non-strategic	$	84							$	84
Conservation	$	2							$	2
HBU/Recreation	$	9							$	9
Development Properties	$	—							$	—
Conservation Easements	$	—							$	—
	$	100	$	—	$	—			$	100

Basis of Real Estate Sold ⁽⁴⁾	$	63							$	63
	2011
	1st Qtr ⁽²⁾		2nd Qtr ⁽³⁾		3rd Qtr		4th Qtr ⁽²⁾		YTD
Acres Sold
Small Non-strategic	2,560		2,695		11,525		5,385		22,165
Large Non-strategic	30,295		—		—		18,155		48,450
Conservation	335		59,425		370		7,295		67,425
HBU/Recreation	7,795		6,320		24,500		8,680		47,295
Development Properties	—		—		20		—		20
Conservation Easements	n/a		n/a		n/a		n/a		n/a
	40,985		68,440		36,415		39,515		185,355
Price per Acre
Small Non-strategic	$	1,015	$	1,125	$	1,230	$	1,345	$	1,220
Large Non-strategic	$	1,405	$	—	$	—	$	3,300	$	2,115
Conservation	$	1,685	$	1,050	$	1,270	$	980	$	1,050
HBU/Recreation	$	2,100	$	2,060	$	1,950	$	2,100	$	2,015
Development Properties	$	—	$	—	$	6,405	$	—	$	6,405
Conservation Easements	$	—	$	—	$	460	$	—	$	460

Revenue, ($ millions)
Small Non-strategic	$	2	$	4	$	14	$	7	$	27
Large Non-strategic	$	43	$	—	$	—	$	60	$	103
Conservation	$	1	$	62	$	—	$	7	$	70
HBU/Recreation	$	16	$	13	$	48	$	19	$	96
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	—	$	—	$	5	$	—	$	5
	$	62	$	79	$	67	$	93	$	301

Basis of Real Estate Sold ⁽⁴⁾	$	19	$	24	$	14	$	19	$	76

Exhibit 99.2

Plum Creek Timber Company, Inc.

Notes to Land Sale Statistics

(Unaudited)

(1) During the first quarter of 2012, the company sold 69,800 acres of Large Non-strategic lands located in the Florida panhandle area for $84.5 million.

(2) During the first quarter of 2011, the company sold 30,300 acres of Large Non-strategic lands located in Mississippi for $42.6 million. During the fourth quarter of 2011, the company sold 18,200 acres of Large Non-strategic lands located in Oregon for $60 million.

(3) During the second quarter of 2011, the company's Conservation sales consisted primarily of 26,800 acres in Arkansas and Louisiana and 31,500 acres in Florida.

(4) Includes $58 million in the first quarter of 2012 from a 69,800 acre Large Non-strategic sale located in the Florida panhandle area, $8 million in the fourth quarter of 2011 from an 18,200 acre Large Non-strategic sale in Oregon and $13 million in the first quarter of 2011 from a 30,300 acre Large Non-strategic sale in Mississippi.

Exhibit 99.2

Plum Creek Timber Company, Inc.

Debt Maturities Schedule

March 31, 2012

(Unaudited)



	Borrowings
	Principal		Weighted Avg. Interest Rate
Quarterly Maturities through 2012:
3rd Qtr 2012	$	350	—	%	⁽¹⁾
4th Qtr 2012	$	3	8.050	%
Annual Maturities through 2014:
2013	$	250	6.663	%	⁽²⁾
2014	$	3	8.050	%

(1) Represents the company's term credit agreement. As of March 31, 2012, the interest rate is based on LIBOR plus 0.375%.

(2) Principal amount composed of senior notes with principal amounts of $3 million, $73 million and $174 million and interest rates of 8.050%, 7.760% and 6.180%, respectively.

Exhibit 99.2

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:



	Three Months Ended March 31, 2012 (In Millions)

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	6		$	7	$	—	$	13
Southern Resources	21			15		—		36
Real Estate	30			—		63		93
Manufacturing	4			4		—		8
Other	5			—		—		5
Other Costs and Eliminations	(16		)	—		—		(16		)
Other Unallocated Operating Income (Expense), net	—			—		—		—
Total	$	50		$	26	$	63	$	139

Reconciliation to Net Income⁽¹⁾
Interest Expense	(35		)
(Provision) / Benefit for Income Taxes	1
Equity Earnings from Unconsolidated Subsidiary	13
Net Income	$	29

Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	6
Interest Expense								35
Amortization of Debt Costs								(1		)
Provision / (Benefit) for Income Taxes								(1		)
Working Capital Changes								30
Deferred Income Taxes								1
Deferred Revenue from Long-Term Gas Leases								2
Timber Deed Acquired								98
Distribution from Timberland Venture								(28		)
Other								(3		)
Adjusted EBITDA								$	139

Exhibit 99.2



	Three Months Ended March 31, 2011 (In Millions)

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	7		$	6	$	—	$	13
Southern Resources	19			12		—		31
Real Estate	38			—		19		57
Manufacturing	4			3		—		7
Other	7			—		—		7
Other Costs and Eliminations	(16		)	—		—		(16		)
Other Unallocated Operating Income (Expense), net	1			—		—		1
Total	$	60		$	21	$	19	$	100

Reconciliation to Net Income⁽¹⁾
Interest Expense	(35		)
(Provision) / Benefit for Income Taxes	(1		)
Equity Earnings from Unconsolidated Subsidiary	14
Net Income	$	38

Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	76
Interest Expense								35
Amortization of Debt Costs								(1		)
Provision / (Benefit) for Income Taxes								1
Working Capital Changes								30
Deferred Income Taxes								(3		)
Deferred Revenue from Long-Term Gas Leases								(7		)
Distribution from Timberland Venture								(28		)
Other								(3		)
Adjusted EBITDA								$	100

(1) Includes reconciling items not allocated to segments for financial reporting purposes.

PLUM CREEK TIMBER CO INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION - April 30, 2012

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PLUM CREEK TIMBER CO INC Reports