Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT - WEYERHAEUSER CO | wy2014q1ex-991.htm |
| 8-K - 8-K - WEYERHAEUSER CO | wyq1148kearningsrelease.htm |
Exhibit 99.2 | ||||||||||||
Weyerhaeuser Company | ||||||||||||
Q1.2014 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Consolidated Statement of Operations | ||||||||||||
in millions | Q4 | Q1 | ||||||||||
December 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||
Net Sales | $ | 2,256 | $ | 1,984 | $ | 1,951 | ||||||
Cost of products sold | 1,784 | 1,556 | 1,533 | |||||||||
Gross margin | 472 | 428 | 418 | |||||||||
Selling expenses | 59 | 49 | 51 | |||||||||
General and administrative expenses | 117 | 101 | 118 | |||||||||
Research and development expenses | 10 | 7 | 7 | |||||||||
Charges for restructuring, closures and impairments | 378 | 21 | 4 | |||||||||
Other operating costs (income), net | 5 | (74 | ) | (18 | ) | |||||||
Operating income (loss) | (97 | ) | 324 | 256 | ||||||||
Interest income and other | 16 | 9 | 11 | |||||||||
Interest expense, net of capitalized interest | (113 | ) | (83 | ) | (82 | ) | ||||||
Earnings (loss) before income taxes | (194 | ) | 250 | 185 | ||||||||
Income taxes | 248 | (56 | ) | (41 | ) | |||||||
Net earnings | 54 | 194 | 144 | |||||||||
Dividends on preference shares | (11 | ) | (11 | ) | — | |||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 43 | $ | 183 | $ | 144 | ||||||
Per Share Information | ||||||||||||
Q4 | Q1 | |||||||||||
December 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted | $ | 0.07 | $ | 0.31 | $ | 0.26 | ||||||
Dividends paid per common share | $ | 0.22 | $ | 0.22 | $ | 0.17 | ||||||
Weighted average shares outstanding (in thousands): | ||||||||||||
Basic | 583,610 | 584,915 | 545,234 | |||||||||
Diluted | 588,616 | 589,312 | 550,785 | |||||||||
Common shares outstanding at end of period (in thousands) | 583,548 | 584,961 | 546,573 | |||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* | ||||||||||||
in millions | Q4 | Q1 | ||||||||||
December 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||
Net earnings | $ | 54 | $ | 194 | $ | 144 | ||||||
Interest income and other | (16 | ) | (9 | ) | (11 | ) | ||||||
Interest expense, net of capitalized interest | 113 | 83 | 82 | |||||||||
Income taxes | (248 | ) | 56 | 41 | ||||||||
Operating income (loss) | (97 | ) | 324 | 256 | ||||||||
Depreciation, depletion and amortization | 129 | 126 | 112 | |||||||||
Non-operating pension and postretirement costs (credits) | 9 | (10 | ) | 10 | ||||||||
Special items | 381 | (49 | ) | — | ||||||||
Capitalized interest included in cost of products sold | 11 | 5 | 9 | |||||||||
Adjusted EBITDA, excluding special items* | $ | 433 | $ | 396 | $ | 387 | ||||||
* Non-GAAP measure - see page 9 for definition. | ||||||||||||
Page 1 of 9
Weyerhaeuser Company | |||||||
Q1.2014 Analyst Package | |||||||
Preliminary results, subject to audit | |||||||
Consolidated Balance Sheet | |||||||
in millions | March 31, 2014 | December 31, 2013 | |||||
ASSETS | |||||||
Forest Products: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 777 | $ | 830 | |||
Receivables, less allowances | 544 | 518 | |||||
Receivables for taxes | 33 | 101 | |||||
Inventories | 626 | 542 | |||||
Prepaid expenses | 101 | 117 | |||||
Deferred tax assets | 186 | 128 | |||||
Total current assets | 2,267 | 2,236 | |||||
Property and equipment, net | 2,594 | 2,687 | |||||
Construction in progress | 140 | 112 | |||||
Timber and timberlands at cost, less depletion charged to disposals | 6,574 | 6,580 | |||||
Investments in and advances to equity affiliates | 189 | 190 | |||||
Goodwill | 40 | 42 | |||||
Deferred tax assets | — | 5 | |||||
Other assets | 374 | 345 | |||||
Restricted financial investments held by variable interest entities | 615 | 615 | |||||
12,793 | 12,812 | ||||||
Real Estate(1): | |||||||
Cash and cash equivalents | 3 | 5 | |||||
Receivables, less allowances | 35 | 60 | |||||
Real estate in process of development and for sale | 918 | 842 | |||||
Land being processed for development | 583 | 583 | |||||
Investments in and advances to equity affiliates | 16 | 21 | |||||
Deferred tax assets | 288 | 289 | |||||
Other assets | 99 | 116 | |||||
1,942 | 1,916 | ||||||
Total assets | $ | 14,735 | $ | 14,728 | |||
LIABILITIES AND EQUITY | |||||||
Forest Products: | |||||||
Current liabilities: | |||||||
Notes payable | $ | 2 | $ | 2 | |||
Accounts payable | 365 | 343 | |||||
Accrued liabilities | 579 | 626 | |||||
Total current liabilities | 946 | 971 | |||||
Long-term debt | 4,891 | 4,891 | |||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 511 | 511 | |||||
Deferred income taxes | 536 | 436 | |||||
Deferred pension and other postretirement benefits | 471 | 516 | |||||
Other liabilities | 311 | 356 | |||||
7,666 | 7,681 | ||||||
Real Estate(1): | |||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 5 | 5 | |||||
Other liabilities | 179 | 210 | |||||
184 | 215 | ||||||
Total liabilities | 7,850 | 7,896 | |||||
Equity: | |||||||
Total Weyerhaeuser shareholders' interest | 6,852 | 6,795 | |||||
Noncontrolling interests | 33 | 37 | |||||
Total equity | 6,885 | 6,832 | |||||
Total liabilities and equity | $ | 14,735 | $ | 14,728 | |||
(1) In our Quarterly Report on Form 10-Q, our real estate and forest products asset and liability items will be combined into respective total asset and liability line items. | |||||||
Page 2 of 9
Weyerhaeuser Company | ||||||||||||
Q1.2014 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||
in millions | Q4 | Q1 | ||||||||||
December 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||
Cash flows from operations: | ||||||||||||
Net earnings | $ | 54 | $ | 194 | $ | 144 | ||||||
Noncash charges (credits) to income: | ||||||||||||
Depreciation, depletion and amortization | 129 | 126 | 112 | |||||||||
Deferred income taxes, net | (102 | ) | 36 | 26 | ||||||||
Pension and other postretirement benefits | 22 | (47 | ) | 24 | ||||||||
Share-based compensation expense | 8 | 9 | 12 | |||||||||
Charges for impairment of assets | 367 | — | 1 | |||||||||
Net gains on dispositions of assets | (16 | ) | (25 | ) | (7 | ) | ||||||
Foreign exchange transaction losses | 1 | 14 | 4 | |||||||||
Change in: | ||||||||||||
Receivables less allowances | 85 | (1 | ) | (165 | ) | |||||||
Receivable for taxes | (70 | ) | 67 | 30 | ||||||||
Inventories | (13 | ) | (88 | ) | (68 | ) | ||||||
Real estate and land | 13 | (72 | ) | (59 | ) | |||||||
Prepaid expenses | (10 | ) | 3 | (13 | ) | |||||||
Accounts payable and accrued liabilities | (96 | ) | (80 | ) | (66 | ) | ||||||
Deposits on land positions and other assets | (7 | ) | 12 | (1 | ) | |||||||
Pension and postretirement contributions | (33 | ) | (33 | ) | (37 | ) | ||||||
Other | 16 | (6 | ) | 2 | ||||||||
Net cash from operations | 348 | 109 | (61 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||
Property and equipment | (110 | ) | (51 | ) | (35 | ) | ||||||
Timberlands reforestation | (4 | ) | (14 | ) | (13 | ) | ||||||
Proceeds from sale of assets | 5 | 19 | 6 | |||||||||
Other | (2 | ) | — | — | ||||||||
Cash from investing activities | (111 | ) | (46 | ) | (42 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from issuance of debt | 550 | — | — | |||||||||
Cash dividends on common shares | (128 | ) | (129 | ) | (93 | ) | ||||||
Cash dividends on preference shares | (23 | ) | — | — | ||||||||
Change in book overdrafts | (1 | ) | (6 | ) | 3 | |||||||
Payments on debt | (1,227 | ) | — | (156 | ) | |||||||
Exercises of stock options | 21 | 15 | 81 | |||||||||
Other | 9 | 2 | 9 | |||||||||
Cash from financing activities | (799 | ) | (118 | ) | (156 | ) | ||||||
Net change in cash and cash equivalents | (562 | ) | (55 | ) | (259 | ) | ||||||
Cash and cash equivalents at beginning of period | 1,397 | 835 | 898 | |||||||||
Cash and cash equivalents at end of period | $ | 835 | $ | 780 | $ | 639 | ||||||
Cash paid (received) during the year for: | ||||||||||||
Interest, net of amount capitalized | $ | 91 | $ | 101 | $ | 111 | ||||||
Income taxes | $ | 12 | $ | (50 | ) | $ | (2 | ) | ||||
Page 3 of 9
Weyerhaeuser Company | Total Company Statistics | |||||||||||
Q1.2014 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Special Items Included in Net Earnings | ||||||||||||
in millions | Q4 | Q1 | ||||||||||
December 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 43 | $ | 183 | $ | 144 | ||||||
Loss on early extinguishment of debt | 25 | — | — | |||||||||
Restructuring, impairments and other charges | 247 | 13 | — | |||||||||
Gain on sale of non-strategic asset | — | (14 | ) | — | ||||||||
Costs related to Real Estate divestiture | 10 | — | — | |||||||||
Tax adjustments | (168 | ) | — | — | ||||||||
Gain on postretirement plan amendment | — | (29 | ) | — | ||||||||
Net earnings attributable to Weyerhaeuser common shareholders before special items | $ | 157 | $ | 153 | $ | 144 | ||||||
Q4 | Q1 | |||||||||||
December 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders | $ | 0.07 | $ | 0.31 | $ | 0.26 | ||||||
Loss on early retirement of debt | 0.05 | — | — | |||||||||
Restructuring, impairments and other charges | 0.42 | 0.02 | — | |||||||||
Gain on sale of non-strategic asset | — | (0.02 | ) | — | ||||||||
Costs related to Real Estate divestiture | 0.02 | — | — | |||||||||
Tax adjustments | (0.29 | ) | — | — | ||||||||
Gain on postretirement plan amendment | — | (0.05 | ) | — | ||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items | $ | 0.27 | $ | 0.26 | $ | 0.26 | ||||||
Selected Total Company Items | ||||||||||||
in millions | Q4 | Q1 | ||||||||||
December 31, 2013 | March 31, 2014 | March 31, 2013 | ||||||||||
Depreciation, depletion and amortization: | ||||||||||||
Cost of products sold | $ | 120 | $ | 117 | $ | 103 | ||||||
Selling, general and administrative expenses | 9 | 9 | 9 | |||||||||
Total depreciation, depletion and amortization | $ | 129 | $ | 126 | $ | 112 | ||||||
Pension and postretirement costs: | ||||||||||||
Pension and postretirement costs allocated to business segments | $ | 15 | $ | 11 | $ | 14 | ||||||
Pension and postretirement costs (credits) not allocated | 9 | (10 | ) | 10 | ||||||||
Total company pension and postretirement costs | $ | 24 | $ | 1 | $ | 24 | ||||||
Total increase in Forest Products working capital(1) | $ | (17 | ) | $ | (170 | ) | $ | (334 | ) | |||
Cash spent for capital expenditures | $ | (114 | ) | $ | (65 | ) | $ | (48 | ) | |||
(1) Working capital does not include cash balances. | ||||||||||||
Page 4 of 9
Weyerhaeuser Company | Timberlands Segment | |||||||||||
Q1.2014 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Sales to unaffiliated customers | $ | 364 | $ | 377 | $ | 293 | ||||||
Intersegment sales | 215 | 238 | 224 | |||||||||
Total net sales | 579 | 615 | 517 | |||||||||
Cost of products sold | 425 | 431 | 395 | |||||||||
Gross margin | 154 | 184 | 122 | |||||||||
Selling expenses | 2 | 2 | 3 | |||||||||
General and administrative expenses | 26 | 26 | 25 | |||||||||
Research and development expenses | 6 | 4 | 4 | |||||||||
Charges for restructuring, closures and impairments | — | — | 2 | |||||||||
Other operating income, net | (13 | ) | (12 | ) | (15 | ) | ||||||
Operating income | 133 | 164 | 103 | |||||||||
Interest income and other | 1 | — | 1 | |||||||||
Net contribution to earnings | $ | 134 | $ | 164 | $ | 104 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* | ||||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Operating income | $ | 133 | $ | 164 | $ | 103 | ||||||
Depreciation, depletion and amortization | 51 | 52 | 36 | |||||||||
Adjusted EBITDA, excluding special items* | $ | 184 | $ | 216 | $ | 139 | ||||||
* Non-GAAP measure - see page 9 for definition. | ||||||||||||
Selected Segment Items | ||||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | ||||||||||
Total increase in working capital(1) | $ | (7 | ) | $ | (29 | ) | $ | (10 | ) | |||
Cash spent for capital expenditures | $ | (21 | ) | $ | (19 | ) | $ | (18 | ) | |||
(1) Working capital does not include cash balances. | ||||||||||||
Segment Statistics | ||||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | ||||||||||
Third Party Net Sales (millions) | Logs: | |||||||||||
West | $ | 230 | $ | 257 | $ | 177 | ||||||
South | 64 | 62 | 61 | |||||||||
Canada | 4 | 6 | 7 | |||||||||
Total logs | 298 | 325 | 245 | |||||||||
Chip sales | 2 | 3 | 3 | |||||||||
Timberlands exchanges | 21 | 4 | 2 | |||||||||
Higher and better use land sales | 9 | 3 | 3 | |||||||||
Minerals, oil and gas | 6 | 7 | 8 | |||||||||
Products from international operations | 22 | 24 | 22 | |||||||||
Other products | 6 | 11 | 10 | |||||||||
Total | $ | 364 | $ | 377 | $ | 293 | ||||||
Logs Third Party Sales Realizations (per cubic meter) | West | $ | 104.91 | $ | 114.46 | $ | 105.38 | |||||
South | $ | 43.72 | $ | 44.88 | $ | 43.47 | ||||||
Canada | $ | 38.68 | $ | 35.30 | $ | 36.61 | ||||||
International | $ | 23.05 | $ | 16.99 | $ | 24.01 | ||||||
Logs Third Party Sales Volumes (cubic meters, thousands) | West | 2,185 | 2,246 | 1,674 | ||||||||
South | 1,468 | 1,385 | 1,399 | |||||||||
Canada | 128 | 156 | 204 | |||||||||
International | 112 | 147 | 68 | |||||||||
Total | 3,893 | 3,934 | 3,345 | |||||||||
Logs Fee Harvest Volumes (cubic meters, thousands) | West | 2,686 | 2,875 | 1,995 | ||||||||
South | 3,007 | 2,866 | 2,833 | |||||||||
International | 243 | 249 | 197 | |||||||||
Total | 5,936 | 5,990 | 5,025 | |||||||||
Page 5 of 9
Weyerhaeuser Company | Wood Products Segment | |||||||||||
Q1.2014 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Sales to unaffiliated customers | $ | 926 | $ | 898 | $ | 988 | ||||||
Intersegment sales | 16 | 19 | 18 | |||||||||
Total net sales | 942 | 917 | 1,006 | |||||||||
Cost of products sold | 826 | 791 | 770 | |||||||||
Gross margin | 116 | 126 | 236 | |||||||||
Selling expenses | 24 | 25 | 26 | |||||||||
General and administrative expenses | 32 | 37 | 36 | |||||||||
Research and development expenses | 2 | 1 | 1 | |||||||||
Charges for restructuring, closures and impairments | 11 | — | — | |||||||||
Other operating income, net | (1 | ) | (1 | ) | (5 | ) | ||||||
Operating income | 48 | 64 | 178 | |||||||||
Interest income and other | — | — | — | |||||||||
Net contribution to earnings | $ | 48 | $ | 64 | $ | 178 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* | ||||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Operating income | $ | 48 | $ | 64 | $ | 178 | ||||||
Depreciation, depletion and amortization | 30 | 29 | 31 | |||||||||
Special items | 10 | — | — | |||||||||
Adjusted EBITDA, excluding special items* | $ | 88 | $ | 93 | $ | 209 | ||||||
* Non-GAAP measure - see page 9 for definition. | ||||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | ||||||||||
Charges for restructuring, closures and impairments | $ | (10 | ) | $ | — | $ | — | |||||
Total | $ | (10 | ) | $ | — | $ | — | |||||
Selected Segment Items | ||||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | ||||||||||
Total decrease (increase) in working capital(1) | $ | 40 | $ | (137 | ) | $ | (194 | ) | ||||
Cash spent for capital expenditures | $ | (61 | ) | $ | (18 | ) | $ | (10 | ) | |||
(1) Working capital does not include cash balances. | ||||||||||||
Segment Statistics | ||||||||||||
in millions, except for third-party sales realizations | Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Structural Lumber (board feet) | Third party net sales | $ | 440 | $ | 427 | $ | 451 | |||||
Third party sales realizations | $ | 413 | $ | 432 | $ | 440 | ||||||
Third party sales volumes(1) | 1,066 | 989 | 1,025 | |||||||||
Production volumes | 970 | 1,009 | 1,021 | |||||||||
Outside purchase volumes | 83 | 78 | 102 | |||||||||
Engineered Solid Section (cubic feet) | Third party net sales | $ | 90 | $ | 90 | $ | 82 | |||||
Third party sales realizations | $ | 2,006 | $ | 1,959 | $ | 1,850 | ||||||
Third party sales volumes(1) | 4.5 | 4.6 | 4.4 | |||||||||
Production volumes | 4.2 | 4.9 | 4.6 | |||||||||
Outside purchase volumes | 0.2 | 1.8 | 0.9 | |||||||||
Engineered I-joists (lineal feet) | Third party net sales | $ | 63 | $ | 59 | $ | 56 | |||||
Third party sales realizations | $ | 1,485 | $ | 1,454 | $ | 1,300 | ||||||
Third party sales volumes(1) | 42 | 40 | 43 | |||||||||
Production volumes | 38 | 44 | 44 | |||||||||
Outside purchase volumes | 2 | 1 | 3 | |||||||||
Oriented Strand Board (square feet 3/8') | Third party net sales | $ | 161 | $ | 148 | $ | 236 | |||||
Third party sales realizations | $ | 237 | $ | 230 | $ | 359 | ||||||
Third party sales volumes(1) | 678 | 641 | 657 | |||||||||
Production volumes | 673 | 657 | 662 | |||||||||
Outside purchase volumes | 54 | 53 | 68 | |||||||||
Softwood Plywood (square feet 3/8') | Third party net sales | $ | 29 | $ | 30 | $ | 36 | |||||
Third party sales realizations | $ | 339 | $ | 332 | $ | 370 | ||||||
Third party sales volumes(1) | 87 | 90 | 99 | |||||||||
Production volumes | 55 | 59 | 61 | |||||||||
Outside purchase volumes | 40 | 33 | 42 | |||||||||
(1) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. | ||||||||||||
Page 6 of 9
Weyerhaeuser Company | Cellulose Fibers Segment | |||||||||||
Q1.2014 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Total net sales | $ | 478 | $ | 461 | $ | 474 | ||||||
Cost of products sold | 397 | 390 | 424 | |||||||||
Gross margin | 81 | 71 | 50 | |||||||||
Selling expenses | 3 | 4 | 4 | |||||||||
General and administrative expenses | 17 | 20 | 20 | |||||||||
Research and development expenses | 2 | 2 | 2 | |||||||||
Other operating income, net | (2 | ) | (9 | ) | (7 | ) | ||||||
Operating income | 61 | 54 | 31 | |||||||||
Interest income and other | 4 | — | — | |||||||||
Net contribution to earnings | $ | 65 | $ | 54 | $ | 31 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* | ||||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Operating income | $ | 61 | $ | 54 | $ | 31 | ||||||
Depreciation, depletion and amortization | 40 | 38 | 39 | |||||||||
Adjusted EBITDA, excluding special items* | $ | 101 | $ | 92 | $ | 70 | ||||||
* Non-GAAP measure - see page 9 for definition. | ||||||||||||
Selected Segment Items | ||||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | ||||||||||
Total decrease (increase) in working capital(1) | $ | (12 | ) | $ | 31 | $ | (7 | ) | ||||
Cash spent for capital expenditures | $ | (30 | ) | $ | (26 | ) | $ | (17 | ) | |||
(1) Working capital does not include cash balances. | ||||||||||||
Segment Statistics | ||||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | ||||||||||
Pulp (air-dry metric tons) | Third party net sales (millions) | $ | 390 | $ | 363 | $ | 371 | |||||
Third party sales realizations | $ | 818 | $ | 825 | $ | 796 | ||||||
Third party sales volumes (thousands) | 477 | 440 | 467 | |||||||||
Production volumes (thousands) | 450 | 459 | 445 | |||||||||
Liquid Packaging Board (tons) | Third party net sales (millions) | $ | 72 | $ | 80 | $ | 85 | |||||
Third party sales realizations | $ | 1,029 | $ | 1,122 | $ | 1,079 | ||||||
Third party sales volumes (thousands) | 70 | 71 | 78 | |||||||||
Production volumes (thousands) | 85 | 72 | 78 | |||||||||
Page 7 of 9
Weyerhaeuser Company | Real Estate Segment | ||||||||||
Q1.2014 Analyst Package | |||||||||||
Preliminary results, subject to audit | |||||||||||
Segment Statement of Operations | |||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | ||||||||
Total net sales | $ | 488 | $ | 248 | $ | 196 | |||||
Cost of products sold | 371 | 196 | 160 | ||||||||
Gross margin | 117 | 52 | 36 | ||||||||
Selling expenses | 30 | 21 | 18 | ||||||||
General and administrative expenses | 17 | 18 | 18 | ||||||||
Charges for restructuring, closures and impairments | 352 | 2 | 1 | ||||||||
Other operating income, net | (3 | ) | (1 | ) | — | ||||||
Operating income (loss) | (279 | ) | 12 | (1 | ) | ||||||
Interest income and other | 1 | — | 1 | ||||||||
Net contribution to earnings | $ | (278 | ) | $ | 12 | $ | — | ||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* | |||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | ||||||||
Operating income (loss) | $ | (279 | ) | $ | 12 | $ | (1 | ) | |||
Depreciation, depletion and amortization | 4 | 3 | 3 | ||||||||
Capitalized interest included in cost of products sold | 9 | 4 | 7 | ||||||||
Special items | 349 | — | — | ||||||||
Adjusted EBITDA, excluding special items* | $ | 83 | $ | 19 | $ | 9 | |||||
* Non-GAAP measure - see page 9 for definition. | |||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Charges for restructuring, closures and impairments | $ | (343 | ) | $ | — | $ | — | ||||
Costs related to Real Estate divestiture | (6 | ) | — | — | |||||||
Total | $ | (349 | ) | $ | — | $ | — | ||||
Selected Segment Items | |||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Cash from operations | $ | 106 | $ | (28 | ) | $ | (71 | ) | |||
Cash spent for capital expenditures | $ | (1 | ) | $ | (2 | ) | $ | (2 | ) | ||
Segment Statistics | |||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Net sales: | |||||||||||
Single-family housing | $ | 474 | $ | 242 | $ | 183 | |||||
Land | 13 | 3 | 11 | ||||||||
Other | 1 | 3 | 2 | ||||||||
Total net sales | $ | 488 | $ | 248 | $ | 196 | |||||
Single-family homes sold | 521 | 667 | 820 | ||||||||
Single-family homes closed | 1,072 | 508 | 463 | ||||||||
Single-family homes sold but not closed (backlog) | 897 | 1,056 | 1,138 | ||||||||
Single-family cancellation rate | 20.6 | % | 14.9 | % | 12.2 | % | |||||
Single-family buyer traffic | 14,252 | 16,652 | 17,764 | ||||||||
Single-family average price of homes closed (in thousands) | $ | 442 | $ | 476 | $ | 394 | |||||
Single-family gross margin(1) | 23.0 | % | 20.9 | % | 19.5 | % | |||||
(1) Single-family gross margin equals revenue less cost of sales and period costs. | |||||||||||
Page 8 of 9
Weyerhaeuser Company | Unallocated Items | ||||||||||
Q1.2014 Analyst Package | |||||||||||
Preliminary results, subject to audit | |||||||||||
Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation, pension and postretirement costs, foreign exchange transaction gains and losses associated with outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve. | |||||||||||
Contribution to Earnings | |||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | ||||||||
Unallocated corporate function expenses | $ | (7 | ) | $ | (2 | ) | $ | (3 | ) | ||
Unallocated share-based compensation | (5 | ) | 3 | (7 | ) | ||||||
Unallocated pension & postretirement credits (costs) | (9 | ) | 55 | (10 | ) | ||||||
Foreign exchange losses | (1 | ) | (15 | ) | (4 | ) | |||||
Elimination of intersegment profit in inventory and LIFO | 6 | (19 | ) | (24 | ) | ||||||
Other | (44 | ) | 8 | (7 | ) | ||||||
Operating income (loss) | (60 | ) | 30 | (55 | ) | ||||||
Interest income and other | 10 | 9 | 9 | ||||||||
Net contribution to earnings | $ | (50 | ) | $ | 39 | $ | (46 | ) | |||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items* | |||||||||||
in millions | Q4.2013 | Q1.2014 | Q1.2013 | ||||||||
Operating income (loss) | $ | (60 | ) | $ | 30 | $ | (55 | ) | |||
Depreciation, depletion and amortization | 4 | 4 | 3 | ||||||||
Non-operating pension and postretirement costs (credits) | 9 | (10 | ) | 10 | |||||||
Capitalized interest included in costs of products sold | 2 | 1 | 2 | ||||||||
Special items | 22 | (49 | ) | — | |||||||
Adjusted EBITDA, excluding special items* | $ | (23 | ) | $ | (24 | ) | $ | (40 | ) | ||
* Non-GAAP measure - see below for definition. | |||||||||||
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Gain on postretirement plan amendment | $ | — | $ | 45 | $ | — | |||||
Restructuring, impairments and other charges | (13 | ) | (18 | ) | — | ||||||
Gain on sale of non-strategic asset | — | 22 | — | ||||||||
Costs related to Real Estate divestiture | (9 | ) | — | — | |||||||
Total | $ | (22 | ) | $ | 49 | $ | — | ||||
Unallocated Selected Items | |||||||||||
Q4.2013 | Q1.2014 | Q1.2013 | |||||||||
Total increase in working capital(1) | $ | (38 | ) | $ | (35 | ) | $ | (123 | ) | ||
Cash spent for capital expenditures | $ | (1 | ) | $ | — | $ | (1 | ) | |||
(1) Working capital does not include cash balances. | |||||||||||
*Adjusted EBITDA, excluding special items is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and interest included in cost of products sold. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. | |||||||||||
Page 9 of 9