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

Attached files

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8-K - FORM 8-K - PLUM CREEK TIMBER CO INC	a201406308k.htm
EX-99.1 - PRESS RELEASE - PLUM CREEK TIMBER CO INC	exhibit99120140630.htm

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)




	Six Months Ended June 30,
(In Millions, Except Per Share Amounts)	2014			2013
REVENUES:
Timber	$	363		$	316
Real Estate	100			131
Manufacturing	184			185
Energy and Natural Resources	18			11
Other	8			—
Total Revenues	673			643

COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	263			232
Real Estate	40			52
Manufacturing	163			157
Energy and Natural Resources	5			2
Other	8			—
Total Cost of Goods Sold	479			443
Selling, General and Administrative	59			61
Total Costs and Expenses	538			504

Other Operating Income (Expense), net	4			1

Operating Income	139			140

Earnings from Unconsolidated Entities, net	29			31

Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	54			41
Interest Expense (Note Payable to Timberland Venture)	29			29
Total Interest Expense, net	83			70

Income before Income Taxes	85			101

Provision (Benefit) for Income Taxes	—			(1		)

Net Income	$	85		$	102

PER SHARE AMOUNTS:

Net Income per Share – Basic	$	0.48		$	0.63
Net Income per Share – Diluted	$	0.47		$	0.62

Weighted-Average Number of Shares Outstanding
– Basic	177.1			162.6
– Diluted	177.4			163.1


SUPPLEMENTAL INCOME STATEMENT INFORMATION:
Equity Earnings from Timberland Venture	$	32		$	31
Equity Loss from Real Estate Development Ventures	(3		)	—
Earnings from Unconsolidated Entities, net	$	29		$	31

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



	Quarter Ended June 30,
(In Millions, Except Per Share Amounts)	2014			2013
REVENUES:
Timber	$	171		$	146
Real Estate	77			53
Manufacturing	94			99
Energy and Natural Resources	9			5
Other	5			—
Total Revenues	356			303

COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	125			108
Real Estate	30			22
Manufacturing	84			82
Energy and Natural Resources	3			1
Other	5			—
Total Cost of Goods Sold	247			213
Selling, General and Administrative	30			29
Total Costs and Expenses	277			242

Other Operating Income (Expense), net	3			1

Operating Income	82			62

Earnings from Unconsolidated Entities, net	15			17

Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	27			20
Interest Expense (Note Payable to Timberland Venture)	15			15
Total Interest Expense, net	42			35

Income before Income Taxes	55			44

Provision (Benefit) for Income Taxes	—			(2		)

Net Income	$	55		$	46

PER SHARE AMOUNTS:

Net Income per Share – Basic	$	0.31		$	0.28
Net Income per Share – Diluted	$	0.31		$	0.28

Weighted-Average Number of Shares Outstanding
– Basic	177.1			162.9
– Diluted	177.4			163.4


SUPPLEMENTAL INCOME STATEMENT INFORMATION:
Equity Earnings from Timberland Venture	$	17		$	17
Equity Loss from Real Estate Development Ventures	(2		)	—
Earnings from Unconsolidated Entities, net	$	15		$	17

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



(In Millions, Except Per Share Amounts)	June 30, 2014			December 31, 2013
ASSETS
Current Assets:
Cash and Cash Equivalents	$	107		$	433
Accounts Receivable	44			29
Inventories	51			55
Deferred Tax Asset	6			9
Assets Held for Sale	55			92
Other Current Assets	20			15
	283			633

Timber and Timberlands, net	4,170			4,180
Minerals and Mineral Rights, net	294			298
Property, Plant and Equipment, net	115			118
Equity Investment in Timberland Venture	215			211
Equity Investment in Real Estate Development Ventures	139			139
Deferred Tax Asset	20			17
Investment in Grantor Trusts (at Fair Value)	46			45
Other Assets	55			54
Total Assets	$	5,337		$	5,695

LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	—		$	—
Line of Credit	152			467
Accounts Payable	36			24
Interest Payable	26			22
Wages Payable	17			29
Taxes Payable	14			10
Deferred Revenue	36			26
Other Current Liabilities	11			10
	292			588

Long-Term Debt	2,414			2,414
Note Payable to Timberland Venture	783			783
Other Liabilities	81			78
Total Liabilities	3,570			3,863

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) – 177.1 at June 30, 2014 and 177.0 at December 31, 2013	2			2
Additional Paid-In Capital	2,950			2,942
Retained Earnings (Accumulated Deficit)	(244		)	(173		)
Treasury Stock, at Cost, Common Shares – 27.0 at June 30, 2014 and 27.0 at December 31, 2013	(942		)	(940		)
Accumulated Other Comprehensive Income (Loss)	1			1
Total Stockholders’ Equity	1,767			1,832
Total Liabilities and Stockholders’ Equity	$	5,337		$	5,695

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



	Six Months Ended June 30,
(In Millions)	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	85		$	102
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $2 MDF Fire Impairment Loss in 2014)	66			51
Basis of Real Estate Sold	31			42
Earnings from Unconsolidated Entities, net	(29		)	(31		)
Distributions from Timberland Venture	28			27
Deferred Income Taxes	—			(1		)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(2		)	(4		)
Timber Deed Acquired	—			(18		)
Working Capital Changes	7			(40		)
Other	3			12
Net Cash Provided By (Used In) Operating Activities	189			140

CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures, Excluding Timberland Acquisitions (Includes $4 MDF Fire Replacement Capital in 2014)	(40		)	(31		)
Timberlands Acquired	—			(78		)
Contributions to Real Estate Development Ventures	(4		)	—
Distributions from Real Estate Development Ventures	1			—
Net Cash Provided By (Used In) Investing Activities	(43		)	(109		)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(156		)	(140		)
Borrowings on Line of Credit	748			721
Repayments on Line of Credit	(1,063		)	(472		)
Principal Payments and Retirement of Long-Term Debt	—			(174		)
Proceeds from Stock Option Exercises	1			35
Acquisition of Treasury Stock	(2		)	(2		)
Net Cash Provided By (Used In) Financing Activities	(472		)	(32		)

Increase (Decrease) In Cash and Cash Equivalents	(326		)	(1		)
Cash and Cash Equivalents:
Beginning of Period	433			356

End of Period	$	107		$	355

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



	Quarter Ended June 30,
(In Millions)	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	55		$	46
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $2 MDF Fire Impairment Loss in 2014)	34			25
Basis of Real Estate Sold	25			17
Earnings from Unconsolidated Entities, net	(15		)	(17		)
Deferred Income Taxes	—			(2		)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	—			(1		)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds	—			53
Other Working Capital Changes	31			12
Other	2			6
Net Cash Provided By (Used In) Operating Activities	132			139

CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures, Excluding Timberland Acquisitions (Includes $4 MDF Fire Replacement Capital in 2014)	(24		)	(17		)
Timberlands Acquired	—			(76		)
Distributions from Real Estate Development Ventures	1			—
Net Cash Provided By (Used In) Investing Activities	(23		)	(93		)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(78		)	(72		)
Borrowings on Line of Credit	465			430
Repayments on Line of Credit	(493		)	(355		)
Proceeds from Stock Option Exercises	—			10
Net Cash Provided By (Used In) Financing Activities	(106		)	13

Increase (Decrease) In Cash and Cash Equivalents	3			59
Cash and Cash Equivalents:
Beginning of Period	104			296

End of Period	$	107		$	355

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)



	Six Months Ended June 30,
(In Millions)	2014			2013
Revenues:
Northern Resources	$	127		$	127
Southern Resources	250			202
Real Estate	100			131
Manufacturing	184			185
Energy and Natural Resources	18			11
Other	8			—
Eliminations	(14		)	(13		)
Total Revenues	$	673		$	643

Operating Income (Loss): ^(A)
Northern Resources	$	21		$	19
Southern Resources	64			47
Real Estate	57			75
Manufacturing	19			24
Energy and Natural Resources	12			9
Other	(4		)	—
Other Costs and Eliminations, net	(33		)	(34		)
Total Operating Income	$	136		$	140

Adjusted EBITDA by Segment: ^(B)
Northern Resources	$	35		$	31
Southern Resources	101			75
Real Estate	88			117
Manufacturing	28			32
Energy and Natural Resources	16			10
Other	(3		)	—
Other Costs and Eliminations, net	(32		)	(33		)
Total	$	233		$	232

(A)

For Segment reporting, Equity Loss from Real Estate Development Ventures of $3 million is included in Operating Income (Loss) for the Other Segment. During the second quarter of 2014, we experienced a fire at our MDF facility. We recorded a $2 million loss representing the net book value of the building and equipment damaged or destroyed by the fire. During the second quarter of 2014, we also recorded a $4 million gain related to partial insurance recoveries the company expects to receive. The amount of insurance recoveries was based on the costs incurred during the second quarter to repair or replace the damaged building and equipment. Substantially all of these costs were capitalized during the second quarter of 2014. Both the building and equipment loss and the insurance recoveries are reported as Other Operating Gain/(Loss) in our Manufacturing Segment and are 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.

SEGMENT DATA

(UNAUDITED)



	Quarter Ended June 30,
(In Millions)	2014			2013
Revenues:
Northern Resources	$	50		$	53
Southern Resources	127			98
Real Estate	77			53
Manufacturing	94			99
Energy and Natural Resources	9			5
Other	5			—
Eliminations	(6		)	(5		)
Total Revenues	$	356		$	303

Operating Income (Loss): ^(A)
Northern Resources	$	5		$	8
Southern Resources	33			23
Real Estate	45			30
Manufacturing	10			14
Energy and Natural Resources	6			4
Other	(3		)	—
Other Costs and Eliminations, net	(16		)	(17		)
Total Operating Income	$	80		$	62

Adjusted EBITDA by Segment: ^(B)
Northern Resources	$	11		$	13
Southern Resources	52			37
Real Estate	70			47
Manufacturing	16			18
Energy and Natural Resources	8			5
Other	(2		)	—
Other Costs and Eliminations, net	(15		)	(16		)
Total	$	140		$	104

(A) For Segment reporting, Equity Loss from Real Estate Development Ventures of $2 million is included in Operating Income (Loss) for the Other Segment. During the second quarter of 2014, we experienced a fire at our MDF facility. We recorded a $2 million loss representing the net book value of the building and equipment damaged or destroyed by the fire. During the second quarter of 2014, we also recorded a $4 million gain related to partial insurance recoveries the company expects to receive. The amount of insurance recoveries was based on the costs incurred during the second quarter to repair or replace the damaged building and equipment. Substantially all of these costs were capitalized during the second quarter of 2014. Both the building and equipment loss and the insurance recoveries are reported as Other Operating Gain/(Loss) in our Manufacturing Segment and are 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)



		2014
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	22	$	22					$	22
Pulpwood	$/Ton Stumpage	$	12	$	12					$	12
Northern Resources
Sawlog	$/Ton Delivered	$	86	$	83					$	85
Pulpwood	$/Ton Delivered	$	43	$	41					$	43

Lumber⁽¹⁾	$/MBF	$	573	$	594					$	584
Plywood ⁽¹⁾	$/MSF	$	451	$	468					$	460
Fiberboard ⁽¹⁾	$/MSF	$	678	$	675					$	677

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,550		1,619						3,169
Pulpwood	1,000 Tons	2,054		2,159						4,213
Total Harvest		3,604		3,778		—		—		7,382
Northern Resources
Sawlog	1,000 Tons	667		499						1,166
Pulpwood	1,000 Tons	470		248						718
Total Harvest		1,137		747		—		—		1,884

Lumber	MBF	37,703		39,697						77,400
Plywood	MSF	39,188		37,620						76,808
Fiberboard	MSF	50,681		54,831						105,512

		2013
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	21	$	21	$	22	$	22	$	22
Pulpwood	$/Ton Stumpage	$	11	$	11	$	11	$	12	$	11
Northern Resources
Sawlog	$/Ton Delivered	$	77	$	79	$	79	$	81	$	79
Pulpwood	$/Ton Delivered	$	43	$	42	$	43	$	43	$	43

Lumber⁽¹⁾	$/MBF	$	568	$	544	$	498	$	536	$	534
Plywood ⁽¹⁾	$/MSF	$	462	$	464	$	457	$	450	$	458
Fiberboard ⁽¹⁾	$/MSF	$	639	$	668	$	680	$	672	$	665

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,339		1,276		1,544		1,733		5,892
Pulpwood	1,000 Tons	1,771		1,688		1,952		2,153		7,564
Total Harvest		3,110		2,964		3,496		3,886		13,456
Northern Resources
Sawlog	1,000 Tons	704		581		636		566		2,487
Pulpwood	1,000 Tons	414		209		387		401		1,411
Total Harvest		1,118		790		1,023		967		3,898

Lumber	MBF	30,535		36,770		40,622		37,990		145,917
Plywood	MSF	46,905		48,364		46,709		45,164		187,142
Fiberboard	MSF	52,329		60,273		54,795		46,250		213,647

(1) Represents prices at mill level.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

LAND SALE STATISTICS

(UNAUDITED)



	2014
	1st Qtr		2nd Qtr ⁽¹⁾		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	3,035		23,640						26,675
Large Non-strategic	—		—						—
Conservation	3,415		11,875						15,290
HBU/Recreation	4,125		31,530						35,655
Development Properties	—		—						—
Conservation Easements	n/a		n/a						n/a
	10,575		67,045		—		—		77,620
Price per Acre
Small Non-strategic	$	1,325	$	790					$	850
Large Non-strategic	$	—	$	—					$	—
Conservation	$	1,685	$	635					$	865
HBU/Recreation	$	2,200	$	1,485					$	1,570
Development Properties	$	—	$	—					$	—
Conservation Easements	$	340	$	300					$	320

Revenue, ($ millions)
Small Non-strategic	$	4	$	19					$	23
Large Non-strategic	$	—	$	—					$	—
Conservation	$	6	$	8					$	14
HBU/Recreation	$	9	$	46					$	55
Development Properties	$	—	$	—					$	—
Conservation Easements	$	4	$	4					$	8
	$	23	$	77	$	—	$	—	$	100

Basis of Real Estate Sold ⁽²⁾	$	6	$	25					$	31
	2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	5,685		17,130		17,300		3,985		44,100
Large Non-strategic ⁽³⁾	36,000		—		15,370		—		51,370
Conservation	970		17,525		1,385		6,125		26,005
HBU/Recreation	7,595		9,825		9,455		20,095		46,970
Development Properties	—		—		—		—		—
Conservation Easements	n/a		n/a		n/a		n/a		n/a
	50,250		44,480		43,510		30,205		168,445
Price per Acre
Small Non-strategic	$	1,230	$	1,185	$	1,280	$	1,290	$	1,235
Large Non-strategic	$	1,475	$	—	$	3,415	$	—	$	2,050
Conservation	$	2,580	$	835	$	1,920	$	1,015	$	1,000
HBU/Recreation	$	2,015	$	1,925	$	1,925	$	2,100	$	2,010
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	—	$	—	$	—	$	600	$	600

Revenue, ($ millions)
Small Non-strategic	$	7	$	20	$	22	$	5	$	54
Large Non-strategic	$	53	$	—	$	53	$	—	$	106
Conservation	$	3	$	14	$	3	$	6	$	26
HBU/Recreation	$	15	$	19	$	18	$	43	$	95
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	—	$	—	$	—	$	5	$	5
	$	78	$	53	$	96	$	59	$	286

Basis of Real Estate Sold ⁽²⁾	$	25	$	17	$	26	$	22	$	90

Exhibit 99.2

Plum Creek Timber Company, Inc.

Notes to Land Sale Statistics

(Unaudited)

(1) During the second quarter of 2014, the company sold approximately 49,400 acres in Wisconsin for $45.3 million. The transaction consisted of approximately 22,400 acres of HBU/Recreation property with an estimated value of $28.7 million, approximately 17,000 acres of Small Non-strategic property with an estimated value of $11.6 million, and approximately 10,000 acres of Conservation property with an estimated value of $5.0 million.


(2)	Includes $12 million in the second quarter of 2014 for a 49,400 acre sale located in Wisconsin, $9 million in the third quarter of 2013 for a 15,370 acre Large Non-Strategic sale located in Oregon and $18 million in the first quarter of 2013 from a 36,000 acre Large Non-strategic sale located in Texas and Oklahoma.

(3) During the third quarter of 2013, the company sold 15,370 acres of Large Non-strategic lands located in Oregon for $52.5 million. During the first quarter of 2013, the company sold 36,000 acres of Large Non-strategic lands located in Texas and Oklahoma for $52.7 million.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

June 30, 2014

(UNAUDITED)



	Borrowings
(In Millions)	Principal		Interest Rate
Annual Maturities through 2017:
2015	$	439	5.875	%

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

MEDIUM DENSITY FIBERBOARD ("MDF") FACILITY FIRE - OPERATING INCOME IMPACT

June 30, 2014

(UNAUDITED)

On June 10, 2014, we experienced a fire at our MDF facility. Production at the facility resumed on July 10, 2014. The schedule below details the components that impacted second quarter 2014 operating income and the estimates that are expected to impact our third and fourth quarter 2014 operating income.



	2014
(In Millions)	2nd Qtr			2nd Half			Total
Impacts on Manufacturing Operating Income:
Foregone MDF Income	$	(4	)	$	(1	)	$	(5	)
Business Interruption Recoveries⁽¹⁾	$	—		$	5		$	5
Loss on Property, Plant and Equipment	$	(2	)	$	—		$	(2	)
Property Insurance Recoveries⁽¹⁾	$	4		$	5		$	9
Net Impact on Manufacturing Operating Income	$	(2	)	$	9		$	7

(1) The expected insurance recoveries reflect the impact of our cumulative $1 million deductible. Business interruption recoveries will be recorded when the cash payment is received. Property insurance recoveries are recorded when the repair expenditures have been incurred by the company. As of June 30, 2014, no cash payments from insurance recoveries have been received.

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 Earnings from the Timberland Venture, and before interest expense (including any gains or losses from extinguishment of debt), taxes, depreciation, depletion, amortization, and basis in real estate sold. In addition to including Equity Earnings from Real Estate Development Ventures in Adjusted EBITDA, we also include, as an add back to Operating Income for the Other Segment, our proportional share of depreciation, depletion, amortization, and basis in real estate sold from this equity method investment. 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 real estate 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:



	Six Months Ended June 30, 2014

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment ⁽¹⁾
Northern Resources	$	21		$	14	$	—	$	35
Southern Resources	64			37		—		101
Real Estate	57			—		31		88
Manufacturing	19			9		—		28
Energy and Natural Resources	12			4		—		16
Other	(4		)	1		—		(3		)
Other Costs and Eliminations	(35		)	1		—		(34		)
Other Unallocated Operating Income (Expense), net	2			—		—		2
Total	$	136		$	66	$	31	$	233

Reconciliation to Net Income ⁽²⁾
Equity Earnings from Timberland Venture	32
Interest Expense	(83		)
(Provision) Benefit for Income Taxes	—
Net Income	$	85

Reconciliation to Net Cash Provided By Operating Activities ⁽¹⁾
Net Cash Flows from Operations								$	189
Interest Expense								83
Amortization of Debt Costs								(1		)
Provision / (Benefit) for Income Taxes								—
Distributions from Timberland Venture								(28		)
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures								(2		)
Deferred Income Taxes								—
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								2
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								(7		)
Other								(3		)
Adjusted EBITDA								$	233

(1) Includes Equity Loss from Real Estate Development Ventures ($3 million) in Operating Income for the Other Segment, along with our proportional share of depreciation, depletion, amortization ($1 million), and basis in real estate sold ($0) from this equity method investment.

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

Exhibit 99.2



	Six Months Ended June 30, 2013

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	19		$	12	$	—	$	31
Southern Resources	47			28		—		75
Real Estate	75			—		42		117
Manufacturing	24			8		—		32
Energy and Natural Resources	9			1		—		10
Other	—			—		—		—
Other Costs and Eliminations	(35		)	1		—		(34		)
Other Unallocated Operating Income (Expense), net	1			—		—		1
Total	$	140		$	50	$	42	$	232

Reconciliation to Net Income ⁽¹⁾
Equity Earnings from Timberland Venture	31
Interest Expense	(70		)
(Provision) Benefit for Income Taxes	1
Net Income	$	102

Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	140
Interest Expense								70
Amortization of Debt Costs								(1		)
Provision / (Benefit) for Income Taxes								(1		)
Distributions from Timberland Venture								(27		)
Equity Earnings, Depletion, Amortization and Basis of Real Estate Sold from Real Estate Development Ventures								—
Deferred Income Taxes								1
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								4
Timber Deed Acquired								18
Pension Plan Contributions								—
Working Capital Changes								40
Other								(12		)
Adjusted EBITDA								$	232

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

Exhibit 99.2



	Quarter Ended June 30, 2014

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment ⁽¹⁾
Northern Resources	$	5		$	6	$	—	$	11
Southern Resources	33			19		—		52
Real Estate	45			—		25		70
Manufacturing	10			6		—		16
Energy and Natural Resources	6			2		—		8
Other	(3		)	1		—		(2		)
Other Costs and Eliminations	(17		)	1		—		(16		)
Other Unallocated Operating Income (Expense), net	1			—		—		1
Total	$	80		$	35	$	25	$	140

Reconciliation to Net Income ⁽²⁾
Equity Earnings from Timberland Venture	17
Interest Expense	(42		)
(Provision) Benefit for Income Taxes	—
Net Income	$	55

Reconciliation to Net Cash Provided By Operating Activities ⁽¹⁾
Net Cash Flows from Operations								$	132
Interest Expense								42
Amortization of Debt Costs								—
Provision / (Benefit) for Income Taxes								—
Distributions from Timberland Venture								—
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures								(1		)
Deferred Income Taxes								—
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								—
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								(31		)
Other								(2		)
Adjusted EBITDA								$	140

(1) Includes Equity Loss from Real Estate Development Ventures ($2 million) in Operating Income for the Other Segment, along with our proportional share of depreciation, depletion, amortization ($1 million), and basis in real estate sold ($0) from this equity method investment.

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

Exhibit 99.2



	Quarter Ended June 30, 2013

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	8		$	5	$	—	$	13
Southern Resources	23			14		—		37
Real Estate	30			—		17		47
Manufacturing	14			4		—		18
Energy and Natural Resources	4			1		—		5
Other	—			—		—		—
Other Costs and Eliminations	(18		)	1		—		(17		)
Other Unallocated Operating Income (Expense), net	1			—		—		1
Total	$	62		$	25	$	17	$	104

Reconciliation to Net Income ⁽¹⁾
Equity Earnings from Timberland Venture	17
Interest Expense	(35		)
(Provision) Benefit for Income Taxes	2
Net Income	$	46

Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	139
Interest Expense								35
Amortization of Debt Costs								—
Provision / (Benefit) for Income Taxes								(2		)
Distributions from Timberland Venture								—
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures								—
Deferred Income Taxes								2
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								1
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								(65		)
Other								(6		)
Adjusted EBITDA								$	104

(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 - July 28, 2014

Attached files

PLUM CREEK TIMBER CO INC Reports