Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - WEYERHAEUSER CO | wy2016q1ex-991.htm |
| 8-K - 8-K - WEYERHAEUSER CO | wyq1168kearningsrelease.htm |
Weyerhaeuser Company | Exhibit 99.2 | ||||||||||
Q1.2016 Analyst Package | |||||||||||
Preliminary results, subject to audit | |||||||||||
The balances presented as of and for the quarter ended March 31, 2016 reflect the balances and results of operations acquired in our merger with Plum Creek Timber, Inc. for the period from the merger date of February 19, 2016 to March 31, 2016. | |||||||||||
Consolidated Statement of Operations | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Net sales | $ | 1,741 | $ | 1,835 | $ | 1,727 | |||||
Cost of products sold | 1,390 | 1,475 | 1,385 | ||||||||
Gross margin | 351 | 360 | 342 | ||||||||
Selling expenses | 30 | 27 | 28 | ||||||||
General and administrative expenses | 84 | 85 | 74 | ||||||||
Research and development expenses | 7 | 6 | 5 | ||||||||
Charges for integration and restructuring, closures and asset impairments | 24 | 117 | 14 | ||||||||
Other operating costs (income), net | (11 | ) | (61 | ) | 21 | ||||||
Operating income | 217 | 186 | 200 | ||||||||
Equity earnings (loss) from joint ventures | (87 | ) | 3 | (6 | ) | ||||||
Interest income and other | 9 | 9 | 9 | ||||||||
Interest expense, net of capitalized interest | (88 | ) | (97 | ) | (83 | ) | |||||
Earnings before income taxes | 51 | 101 | 120 | ||||||||
Income taxes | 19 | (20 | ) | (19 | ) | ||||||
Net earnings | 70 | 81 | 101 | ||||||||
Dividends on preference shares | (11 | ) | (11 | ) | (11 | ) | |||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 59 | $ | 70 | $ | 90 | |||||
Per Share Information | |||||||||||
Q4 | Q1 | ||||||||||
December 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted | $ | 0.11 | $ | 0.11 | $ | 0.17 | |||||
Dividends paid per common share | $ | 0.31 | $ | 0.31 | $ | 0.29 | |||||
Weighted average shares outstanding (in thousands): | |||||||||||
Basic | 511,175 | 632,004 | 523,426 | ||||||||
Diluted | 514,167 | 634,872 | 527,423 | ||||||||
Common shares outstanding at end of period (in thousands) | 510,483 | 759,044 | 518,735 | ||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Net earnings | $ | 70 | $ | 81 | $ | 101 | |||||
Equity (earnings) loss from joint ventures | 87 | (3 | ) | 6 | |||||||
Interest income and other | (9 | ) | (9 | ) | (9 | ) | |||||
Interest expense, net of capitalized interest | 88 | 97 | 83 | ||||||||
Income taxes | (19 | ) | 20 | 19 | |||||||
Operating income | 217 | 186 | 200 | ||||||||
Depreciation, depletion and amortization | 120 | 142 | 123 | ||||||||
Basis of real estate sold | 5 | 17 | 10 | ||||||||
Non-operating pension and postretirement credits | (3 | ) | (12 | ) | (3 | ) | |||||
Special items | 22 | 80 | 13 | ||||||||
Adjusted EBITDA* | $ | 361 | $ | 413 | $ | 343 | |||||
*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Effective for the quarter ended March 31, 2016, we have revised our definition of Adjusted EBITDA to add back the basis of real estate sold. We have revised our prior-period presentation to conform to our current reporting. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, basis of real estate sold, pension and postretirement costs not allocated to business segments and special items. Adjusted EBITDA excludes results from joint ventures. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. | |||||||||||
Page 1 of 9
Weyerhaeuser Company | ||||||||
Q1.2016 Analyst Package | ||||||||
Preliminary results, subject to audit | ||||||||
Consolidated Balance Sheet | ||||||||
in millions | March 31, 2016 | December 31, 2015 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 415 | $ | 1,012 | ||||
Receivables, less allowances | 578 | 487 | ||||||
Receivables for taxes | 25 | 30 | ||||||
Inventories | 677 | 568 | ||||||
Prepaid expenses and other current assets | 135 | 77 | ||||||
Total current assets | 1,830 | 2,174 | ||||||
Property and equipment, net | 2,763 | 2,572 | ||||||
Construction in progress | 223 | 195 | ||||||
Timber and timberlands at cost, less depletion charged to disposals | 14,548 | 6,480 | ||||||
Minerals and mineral rights, net | 325 | 14 | ||||||
Investments in and advances to joint ventures | 1,011 | 74 | ||||||
Goodwill | 40 | 40 | ||||||
Deferred tax assets | 15 | 4 | ||||||
Other assets | 409 | 302 | ||||||
Restricted financial investments held by variable interest entities | 615 | 615 | ||||||
Total assets | $ | 21,779 | $ | 12,470 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Notes payable | $ | 4 | $ | 4 | ||||
Accounts payable | 385 | 326 | ||||||
Accrued liabilities | 595 | 545 | ||||||
Total current liabilities | 984 | 875 | ||||||
Note payable to timberland venture | 835 | — | ||||||
Long-term debt | 7,803 | 4,875 | ||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 511 | 511 | ||||||
Deferred income taxes | 71 | 86 | ||||||
Deferred pension and other postretirement benefits | 983 | 987 | ||||||
Other liabilities | 311 | 267 | ||||||
Total liabilities | 11,498 | 7,601 | ||||||
Total equity | 10,281 | 4,869 | ||||||
Total liabilities and equity | $ | 21,779 | $ | 12,470 | ||||
Page 2 of 9
Weyerhaeuser Company | |||||||||||
Q1.2016 Analyst Package | |||||||||||
Preliminary results, subject to audit | |||||||||||
Consolidated Statement of Cash Flows | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Cash flows from operations: | |||||||||||
Net earnings | $ | 70 | $ | 81 | $ | 101 | |||||
Noncash charges (credits) to income: | |||||||||||
Depreciation, depletion and amortization | 120 | 142 | 123 | ||||||||
Basis of real estate sold | 5 | 17 | 10 | ||||||||
Deferred income taxes, net | (10 | ) | 18 | 13 | |||||||
Pension and other postretirement benefits | 10 | 4 | 10 | ||||||||
Share-based compensation expense | 9 | 24 | 8 | ||||||||
Charges for impairment of assets | 1 | — | 13 | ||||||||
Equity (earnings) loss from joint ventures | 87 | (3 | ) | 6 | |||||||
Net gains on dispositions of assets and operations | (8 | ) | (41 | ) | (16 | ) | |||||
Foreign exchange transaction (gains) losses | 6 | (13 | ) | 29 | |||||||
Change in: | |||||||||||
Receivables less allowances | 58 | (47 | ) | (16 | ) | ||||||
Receivable for taxes | (16 | ) | 10 | 2 | |||||||
Inventories | 19 | (43 | ) | (57 | ) | ||||||
Prepaid expenses | 5 | (1 | ) | (11 | ) | ||||||
Accounts payable and accrued liabilities | 12 | (70 | ) | (91 | ) | ||||||
Pension and postretirement contributions | (24 | ) | (17 | ) | (20 | ) | |||||
Distributions received from joint ventures | 15 | 5 | — | ||||||||
Other | (20 | ) | (19 | ) | (17 | ) | |||||
Net cash from operations | 339 | 47 | 87 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures: | |||||||||||
Purchases of property and equipment | (167 | ) | (57 | ) | (71 | ) | |||||
Timberlands reforestation costs | (7 | ) | (16 | ) | (18 | ) | |||||
Acquisition of timberlands | (2 | ) | (6 | ) | (32 | ) | |||||
Proceeds from sale of assets | 12 | 70 | 2 | ||||||||
Distributions received from joint ventures | — | 24 | — | ||||||||
Cash and cash equivalents acquired in the merger with Plum Creek | — | 9 | — | ||||||||
Other | 1 | — | — | ||||||||
Cash from (used in) investing activities | (163 | ) | 24 | (119 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Cash dividends on common shares | (159 | ) | (241 | ) | (152 | ) | |||||
Cash dividends on preference shares | (22 | ) | — | — | |||||||
Proceeds from issuance of long-term debt | — | 1,098 | — | ||||||||
Payments of long-term debt | — | (720 | ) | — | |||||||
Repurchase of common stock | (34 | ) | (798 | ) | (253 | ) | |||||
Other | 3 | (7 | ) | 15 | |||||||
Cash from financing activities | (212 | ) | (668 | ) | (390 | ) | |||||
Net change in cash and cash equivalents | (36 | ) | (597 | ) | (422 | ) | |||||
Cash and cash equivalents at beginning of period | 1,048 | 1,012 | 1,580 | ||||||||
Cash and cash equivalents at end of period | $ | 1,012 | $ | 415 | $ | 1,158 | |||||
Cash paid (received) during the year for: | |||||||||||
Interest, net of amount capitalized | $ | 57 | $ | 125 | $ | 114 | |||||
Income taxes | $ | 10 | $ | (13 | ) | $ | 1 | ||||
Noncash investing and financing activities: | |||||||||||
Equity issued as consideration for our merger with Plum Creek | $ | — | $ | 6,383 | $ | — | |||||
Page 3 of 9
Weyerhaeuser Company | Total Company Statistics | ||||||||||
Q1.2016 Analyst Package | |||||||||||
Preliminary results, subject to audit | |||||||||||
Special Items Included in Net Earnings (income tax affected) | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 59 | $ | 70 | $ | 90 | |||||
Plum Creek merger-related costs | 14 | 98 | — | ||||||||
Gain on sale of non-strategic asset | — | (22 | ) | — | |||||||
Restructuring, impairments and other charges | 5 | 4 | 9 | ||||||||
Impairment charge recorded by equity method affiliate | 56 | — | — | ||||||||
Tax adjustments | (13 | ) | — | — | |||||||
Net earnings attributable to Weyerhaeuser common shareholders before special items | $ | 121 | $ | 150 | $ | 99 | |||||
Q4 | Q1 | ||||||||||
December 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders | $ | 0.11 | $ | 0.11 | $ | 0.17 | |||||
Plum Creek merger-related costs | 0.03 | 0.15 | — | ||||||||
Gain on sale of non-strategic asset | — | (0.03 | ) | — | |||||||
Restructuring, impairments and other charges | 0.01 | 0.01 | 0.02 | ||||||||
Impairment charge recorded by equity method affiliate | 0.12 | — | — | ||||||||
Tax adjustments | (0.03 | ) | — | — | |||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items | $ | 0.24 | $ | 0.24 | $ | 0.19 | |||||
Selected Total Company Items | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Pension and postretirement costs: | |||||||||||
Pension and postretirement costs allocated to business segments | $ | 13 | $ | 11 | $ | 13 | |||||
Pension and postretirement credits not allocated | (3 | ) | (12 | ) | (3 | ) | |||||
Accelerated pension costs included in Plum Creek merger-related costs (not allocated) | — | 5 | — | ||||||||
Total company pension and postretirement costs | $ | 10 | $ | 4 | $ | 10 | |||||
Cash spent for capital expenditures | $ | (174 | ) | $ | (73 | ) | $ | (89 | ) | ||
Page 4 of 9
Weyerhaeuser Company | Timberlands Segment | |||||||||||
Q1.2016 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Sales to unaffiliated customers | $ | 312 | $ | 387 | $ | 323 | ||||||
Intersegment sales | 205 | 222 | 228 | |||||||||
Total net sales | 517 | 609 | 551 | |||||||||
Cost of products sold | 390 | 459 | 395 | |||||||||
Gross margin | 127 | 150 | 156 | |||||||||
Selling expenses | 1 | 1 | 2 | |||||||||
General and administrative expenses | 21 | 28 | 21 | |||||||||
Research and development expenses | 6 | 4 | 3 | |||||||||
Other operating income, net | (8 | ) | (12 | ) | (9 | ) | ||||||
Operating income | 107 | 129 | 139 | |||||||||
Interest income and other | — | — | — | |||||||||
Net contribution to earnings | $ | 107 | $ | 129 | $ | 139 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Operating income | $ | 107 | $ | 129 | $ | 139 | ||||||
Depreciation, depletion and amortization | 53 | 70 | 53 | |||||||||
Adjusted EBITDA* | $ | 160 | $ | 199 | $ | 192 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Selected Segment Items | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Total decrease (increase) in working capital (1) | $ | 4 | $ | (53 | ) | $ | (26 | ) | ||||
Cash spent for capital expenditures | $ | (17 | ) | $ | (20 | ) | $ | (24 | ) | |||
(1) Working capital does not include cash balances. Represents the change in combined working capital of Timberlands and Real Estate & ENR. | ||||||||||||
Segment Statistics(2) | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Third Party Net Sales (millions) | Delivered logs: | |||||||||||
West | $ | 203 | $ | 215 | $ | 210 | ||||||
South | 61 | 101 | 58 | |||||||||
North | — | 13 | — | |||||||||
Canada | 7 | 7 | 8 | |||||||||
Total delivered logs | 271 | 336 | 276 | |||||||||
Stumpage and pay-as-cut timber | 10 | 15 | 4 | |||||||||
Products from international operations | 18 | 16 | 24 | |||||||||
Recreational and other lease revenue | 7 | 6 | 6 | |||||||||
Other | 6 | 14 | 13 | |||||||||
Total | $ | 312 | $ | 387 | $ | 323 | ||||||
Delivered Logs Third Party Sales Realizations (per ton) | West | $ | 101.54 | $ | 100.71 | $ | 104.36 | |||||
South | $ | 36.87 | $ | 35.59 | $ | 37.08 | ||||||
North | $ | — | $ | 59.31 | $ | — | ||||||
Canada | $ | 43.06 | $ | 42.98 | $ | 43.43 | ||||||
International | $ | 16.60 | $ | 15.73 | $ | 17.55 | ||||||
Delivered Logs Third Party Sales Volumes (tons, thousands) | West (conversion factor of 1.056 m3 = 1 ton) | 2,005 | 2,133 | 2,008 | ||||||||
South (conversion factor of 0.818 m3 = 1 ton) | 1,636 | 2,844 | 1,555 | |||||||||
North | — | 210 | — | |||||||||
Canada (conversion factor of 1.244 m3 = 1 ton) | 167 | 169 | 196 | |||||||||
International (conversion factor of 0.907 m3 = 1 ton) | 158 | 146 | 165 | |||||||||
Total | 3,966 | 5,502 | 3,924 | |||||||||
Fee Harvest Volumes (tons, thousands) | West (conversion factor of 1.056 m3 = 1 ton) | 2,596 | 2,801 | 2,757 | ||||||||
South (conversion factor of 0.818 m3 = 1 ton) | 3,565 | 5,030 | 3,341 | |||||||||
North | — | 260 | — | |||||||||
International (conversion factor of 0.907 m3 = 1 ton) | 255 | 299 | 263 | |||||||||
Total | 6,416 | 8,390 | 6,361 | |||||||||
(2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. | ||||||||||||
Page 5 of 9
Weyerhaeuser Company | Real Estate, Energy and Natural Resources Segment | |||||||||||
Q1.2016 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Total net sales | $ | 32 | $ | 39 | $ | 34 | ||||||
Cost of products sold | 5 | 20 | 10 | |||||||||
Gross margin | 27 | 19 | 24 | |||||||||
General and administrative expenses | 3 | 4 | 1 | |||||||||
Other operating income, net | (3 | ) | — | — | ||||||||
Operating income | 27 | 15 | 23 | |||||||||
Equity earnings (loss) from joint ventures(1) | — | — | — | |||||||||
Interest income and other | — | — | — | |||||||||
Net contribution to earnings | $ | 27 | $ | 15 | $ | 23 | ||||||
(1) Equity earnings (loss) from joint ventures attributed to the Real Estate and ENR segment are generated from our investments in our real estate development ventures. | ||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Operating income | 27 | 15 | 23 | |||||||||
Depreciation, depletion and amortization | 1 | 2 | — | |||||||||
Basis of real estate sold | 5 | 17 | 10 | |||||||||
Adjusted EBITDA* | $ | 33 | $ | 34 | $ | 33 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Selected Segment Items | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Cash spent for capital expenditures | $ | — | $ | — | $ | — | ||||||
Segment Statistics | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Net Sales (millions) | Real Estate | $ | 25 | $ | 30 | $ | 27 | |||||
Energy and natural resources | $ | 7 | $ | 9 | $ | 7 | ||||||
Acres sold | Real Estate | 6,765 | 15,225 | 14,375 | ||||||||
Price per acre | Real Estate | $ | 3,450 | $ | 1,980 | $ | 1,820 | |||||
Page 6 of 9
Weyerhaeuser Company | Wood Products Segment | |||||||||||
Q1.2016 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Sales to unaffiliated customers | $ | 922 | $ | 979 | $ | 923 | ||||||
Intersegment sales | 21 | 22 | 19 | |||||||||
Total net sales | 943 | 1,001 | 942 | |||||||||
Cost of products sold | 841 | 862 | 829 | |||||||||
Gross margin | 102 | 139 | 113 | |||||||||
Selling expenses | 25 | 22 | 23 | |||||||||
General and administrative expenses | 28 | 27 | 27 | |||||||||
Research and development expenses | — | 1 | — | |||||||||
Restructuring, closures and impairment | 9 | 1 | — | |||||||||
Other operating costs (income), net | — | 1 | 1 | |||||||||
Operating income | 40 | 87 | 62 | |||||||||
Interest income and other | — | — | — | |||||||||
Net contribution to earnings | $ | 40 | $ | 87 | $ | 62 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Operating income | $ | 40 | $ | 87 | $ | 62 | ||||||
Depreciation, depletion and amortization | 27 | 30 | 26 | |||||||||
Special items | 8 | — | — | |||||||||
Adjusted EBITDA* | $ | 75 | $ | 117 | $ | 88 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Restructuring, impairments, and other charges | $ | (8 | ) | $ | — | $ | — | |||||
Selected Segment Items | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Total decrease (increase) in working capital (1) | $ | 79 | $ | (132 | ) | $ | (99 | ) | ||||
Cash spent for capital expenditures | $ | (122 | ) | $ | (29 | ) | $ | (37 | ) | |||
(1) Working capital does not include cash balances. | ||||||||||||
Segment Statistics | ||||||||||||
in millions, except for third-party sales realizations | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Structural Lumber (board feet) | Third party net sales | $ | 402 | $ | 419 | $ | 434 | |||||
Third party sales realizations | $ | 360 | $ | 364 | $ | 403 | ||||||
Third party sales volumes(2) | 1,114 | 1,152 | 1,075 | |||||||||
Production volumes | 1,035 | 1,129 | 1,043 | |||||||||
Engineered Solid Section (cubic feet) | Third party net sales | $ | 105 | $ | 109 | $ | 94 | |||||
Third party sales realizations | $ | 1,987 | $ | 1,971 | $ | 1,965 | ||||||
Third party sales volumes(2) | 5.3 | 5.5 | 4.8 | |||||||||
Production volumes | 5.1 | 5.6 | 5.0 | |||||||||
Engineered I-joists (lineal feet) | Third party net sales | $ | 68 | $ | 66 | $ | 61 | |||||
Third party sales realizations | $ | 1,515 | $ | 1,507 | $ | 1,510 | ||||||
Third party sales volumes(2) | 45 | 44 | 41 | |||||||||
Production volumes | 44 | 46 | 43 | |||||||||
Medium Density Fiberboard (square feet 3/4') | Third party net sales | $ | — | $ | 20 | $ | — | |||||
Third party sales realizations | $ | — | $ | 660 | $ | — | ||||||
Third party sales volumes(2) | — | 30 | — | |||||||||
Production volumes | — | 25 | — | |||||||||
Oriented Strand Board (square feet 3/8') | Third party net sales | $ | 160 | $ | 163 | $ | 137 | |||||
Third party sales realizations | $ | 221 | $ | 214 | $ | 196 | ||||||
Third party sales volumes(2) | 723 | 759 | 700 | |||||||||
Production volumes | 697 | 749 | 704 | |||||||||
Softwood Plywood (square feet 3/8') | Third party net sales | $ | 27 | $ | 35 | $ | 33 | |||||
Third party sales realizations | $ | 308 | $ | 317 | $ | 366 | ||||||
Third party sales volumes(2) | 91 | 110 | 89 | |||||||||
Production volumes | 57 | 88 | 61 | |||||||||
(2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. | ||||||||||||
Page 7 of 9
Weyerhaeuser Company | Cellulose Fibers Segment | |||||||||||
Q1.2016 Analyst Package | ||||||||||||
Preliminary results, subject to audit | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Total net sales | $ | 475 | $ | 430 | $ | 447 | ||||||
Cost of products sold | 393 | 386 | 394 | |||||||||
Gross margin | 82 | 44 | 53 | |||||||||
Selling expenses | 4 | 4 | 3 | |||||||||
General and administrative expenses | 17 | 18 | 17 | |||||||||
Research and development expenses | 1 | 1 | 2 | |||||||||
Other operating income, net | (7 | ) | (9 | ) | (8 | ) | ||||||
Operating income | 67 | 30 | 39 | |||||||||
Equity loss from joint venture(1) | (87 | ) | (2 | ) | (6 | ) | ||||||
Net contribution to earnings | $ | (20 | ) | $ | 28 | $ | 33 | |||||
(1) Equity loss from joint ventures attributed to the Cellulose Fibers segment are generated from our investment in our newsprint and publishing papers venture. Q4 2015 includes an $84 million non-cash charge for our share of an asset impairment recorded by this venture. | ||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Operating income | 67 | 30 | 39 | |||||||||
Depreciation, depletion and amortization | 38 | 38 | 39 | |||||||||
Adjusted EBITDA* | $ | 105 | $ | 68 | $ | 78 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Impairment charge recorded by Newsprint Venture | $ | (84 | ) | $ | — | $ | — | |||||
Selected Segment Items | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Total decrease (increase) in working capital (2) | $ | (13 | ) | $ | (2 | ) | $ | 40 | ||||
Cash spent for capital expenditures | $ | (33 | ) | $ | (22 | ) | $ | (27 | ) | |||
(2) Working capital does not include cash balances. | ||||||||||||
Segment Statistics | ||||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | ||||||||||
Pulp (air-dry metric tons) | Third party net sales (millions) | $ | 388 | $ | 351 | $ | 360 | |||||
Third party sales realizations | $ | 800 | $ | 755 | $ | 854 | ||||||
Third party sales volumes (thousands) | 484 | 464 | 421 | |||||||||
Production volumes (thousands) | 481 | 457 | 442 | |||||||||
Liquid Packaging Board (metric tons) | Third party net sales (millions) | $ | 73 | $ | 67 | $ | 74 | |||||
Third party sales realizations | $ | 1,203 | $ | 1,068 | $ | 1,194 | ||||||
Third party sales volumes (thousands) | 61 | 63 | 62 | |||||||||
Production volumes (thousands) | 63 | 64 | 60 | |||||||||
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Weyerhaeuser Company | Unallocated Items | ||||||||||
Q1.2016 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 financing and the elimination of intersegment profit in inventory, equity earnings from our Timberland Venture, and the LIFO reserve. | |||||||||||
Contribution to Earnings | |||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | ||||||||
Unallocated corporate function expenses | $ | (7 | ) | $ | (9 | ) | $ | (9 | ) | ||
Unallocated share-based compensation | (4 | ) | (2 | ) | 3 | ||||||
Unallocated pension & postretirement credits | 3 | 12 | 3 | ||||||||
Foreign exchange gains (losses) | (6 | ) | 13 | (29 | ) | ||||||
Elimination of intersegment profit in inventory and LIFO | 1 | (6 | ) | (12 | ) | ||||||
Gain on sale of non-strategic asset | — | 36 | — | ||||||||
Plum Creek merger-related costs | (14 | ) | (110 | ) | — | ||||||
Restructuring, impairments and other charges | (1 | ) | (6 | ) | (14 | ) | |||||
Other | 4 | (3 | ) | (5 | ) | ||||||
Operating income (loss) | (24 | ) | (75 | ) | (63 | ) | |||||
Equity earnings from joint venture(1) | — | 5 | — | ||||||||
Interest income and other | 9 | 9 | 9 | ||||||||
Net contribution to earnings | $ | (15 | ) | $ | (61 | ) | $ | (54 | ) | ||
(1) Equity earnings from joint venture included in Unallocated Items is generated from our investment in our timberland venture. | |||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||
in millions | Q4.2015 | Q1.2016 | Q1.2015 | ||||||||
Operating income (loss) | (24 | ) | (75 | ) | (63 | ) | |||||
Depreciation, depletion and amortization | 1 | 2 | 5 | ||||||||
Non-operating pension and postretirement credits | (3 | ) | (12 | ) | (3 | ) | |||||
Special items | 14 | 80 | 13 | ||||||||
Adjusted EBITDA* | $ | (12 | ) | $ | (5 | ) | $ | (48 | ) | ||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | |||||||||||
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Gain on sale of non-strategic asset | $ | — | $ | 36 | $ | — | |||||
Plum Creek merger-related costs | (14 | ) | (110 | ) | — | ||||||
Restructuring, impairments and other charges | — | (6 | ) | (13 | ) | ||||||
Total | $ | (14 | ) | $ | (80 | ) | $ | (13 | ) | ||
Unallocated Selected Items | |||||||||||
Q4.2015 | Q1.2016 | Q1.2015 | |||||||||
Cash spent for capital expenditures | $ | (2 | ) | $ | (2 | ) | $ | (1 | ) | ||
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