EX-99.2 3 wy2013q1ex-992.htm EXHIBITS TO PRESS RELEASE WY 2013 Q1 EX-99.2


 






 
Weyerhaeuser Company
Exhibit 99.2
 
 
Q1.2013 Analyst Package



 
 
Preliminary results, subject to audit





 
Consolidated Statement of Operations
 






 
in millions
Q4

Q1
 
 
December 31,
2012

March 31,
2013
 
March 31,
2012
 
 
Net sales
$
2,000


$
1,951

 
$
1,494

 
Cost of products sold
1,580


1,533

 
1,290

 
Gross margin
420


418

 
204

 
Selling expenses
56


51

 
42

 
General and administrative expenses
126


118


108

 
Research and development expenses
9


7

 
7

 
Charges for restructuring, closures and impairments
6


4

 
12

 
Other operating income, net
(33
)

(18
)
 
(66
)
 
Operating income
256


256

 
101

 
Interest income and other
14


11

 
12

 
Interest expense, net of capitalized interest
(88
)

(82
)
 
(87
)
 
Earnings before income taxes
182


185

 
26

 
Income taxes
(40
)

(41
)
 
15

 
Net earnings
142


144

 
41

 
Add: net loss attributable to noncontrolling interests
1


—


—

 
Net earnings attributable to Weyerhaeuser common shareholders
$
143


$
144

 
$
41

 

 
Per Share Information
 

 

Q4

Q1
 
 
December 31,
2012

March 31,
2013
 
March 31,
2012
 
 
Earnings per share attributable to Weyerhaeuser common shareholders, basic and diluted
$
0.26


$
0.26


$
0.08

 
Dividends paid per share
$
0.17


$
0.17


$
0.15

 
Weighted average shares outstanding (in thousands):



 

 
Basic
542,101


545,234

 
537,368

 
Diluted
547,137


550,785

 
539,728

 
Common shares outstanding at end of period (in thousands)
542,393


546,573

 
537,409

 









 
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*
 









 
in millions
Q4

Q1
 
 
December 31,
2012

March 31,
2013
 
March 31,
2012
 
 
Operating income
$
256


$
256

 
$
101

 
Depreciation, depletion and amortization
118

 
112

 
113

 
Non-operating pension and postretirement costs
8


10


7

 
Special items
—


—


(38
)
 
Capitalized interest included in cost of products sold
9


9


3

 
Adjusted EBITDA, excluding special items*
$
391


$
387

 
$
186

 
* Non-GAAP measure - see page 9 for definition.








Page 1 of 9


Weyerhaeuser Company

 
Q1.2013 Analyst Package



Preliminary results, subject to audit



Consolidated Balance Sheet




in millions
March 31,
2013
 
December 31,
2012
 
ASSETS



Forest Products:



Current assets:



Cash and cash equivalents
$
635

  
$
893

Receivables, less allowances
628

  
468

Receivables for taxes
65


95

Inventories
596

  
531

Prepaid expenses
89

  
83

Deferred tax assets
189

  
65

Total current assets
2,202

  
2,135

Property and equipment, net
2,785

  
2,859

Construction in progress
56

  
50

Timber and timberlands at cost, less depletion charged to disposals
3,954

  
3,961

Investments in and advances to equity affiliates
191

  
192

Goodwill
40

  
40

Deferred tax assets
70


189

Other assets
351

  
358

Assets held by variable interest entities
804

  
805


10,453

  
10,589

Real Estate:



Cash and cash equivalents
4

  
5

Receivables, less allowances
75

  
72

Real estate in process of development and for sale
724

  
658

Land being processed for development
897

  
904

Investments in and advances to equity affiliates
20

  
21

Deferred tax assets
204

  
202

Other assets
100

  
94

Assets held by variable interest entities
33

  
47


2,057

  
2,003

Total assets
$
12,510

  
$
12,592





LIABILITIES AND EQUITY



Forest Products:



Current liabilities:



Current maturities of long-term debt
$
184


$
340

Accounts payable
357

  
329

Accrued liabilities
531

  
561

Total current liabilities
1,072

  
1,230

Long-term debt
3,842

  
3,842

Deferred income taxes
46

  
—

Deferred pension and other postretirement benefits
1,856

  
1,930

Other liabilities
455

  
499

Liabilities (nonrecourse to the company) held by variable interest entities
680

  
681


7,951

  
8,182

Real Estate:



Long-term debt
109

  
109

Other liabilities
172

  
187

Liabilities (nonrecourse to the company) held by variable interest entities
2

  
1


283

  
297

Total liabilities
8,234

  
8,479

Equity:



Total Weyerhaeuser shareholders' interest
4,244

  
4,070

Noncontrolling interests
32

  
43

Total equity
4,276

  
4,113

Total liabilities and equity
$
12,510

  
$
12,592


Page 2 of 9


 
Weyerhaeuser Company


 
 
Q1.2013 Analyst Package





 
Preliminary results, subject to audit





 
Consolidated Statement of Cash Flows
 






 
in millions
Q4

Q1
 
 
December 31,
2012

March 31,
2013

March 31,
2012
 
 
Cash flows from operations:





 
Net earnings
$
142


$
144


$
41

 
Noncash charges (credits) to income:





 
Depreciation, depletion and amortization
118


112


113

 
Deferred income taxes, net
40


26


(6
)
 
Pension and other postretirement benefits
20


24


(28
)
 
Share-based compensation expense
9


12


10

 
Charges for impairment of assets
5


1


8

 
Net gains on dispositions of assets
(30
)

(7
)

(7
)
 
Foreign exchange transaction (gains) losses
2


4


(7
)
 
Change in:





 
Receivables less allowances
—


(165
)

(5
)
 
Receivable for taxes
2


30


(2
)
 
Inventories
(20
)

(68
)

(40
)
 
Real estate and land
20


(59
)

(55
)
 
Prepaid expenses
2


(13
)

(8
)
 
Accounts payable and accrued liabilities
(5
)

(66
)

(56
)
 
Deposits on land positions and other assets
(7
)

(1
)

—

 
Pension and postretirement contributions
(36
)

(37
)

(35
)
 
Other
(10
)

2


17

 
Net cash from operations
252


(61
)

(60
)
 






 
Cash flows from investing activities:





 
Property and equipment
(59
)

(35
)

(54
)
 
Timberlands reforestation
(7
)

(13
)

(10
)
 
Proceeds from sale of assets
44


6


6

 
Proceeds of investments held by special purpose entities
110


—


—

 
Other
1


—


1

 
Cash from investing activities
89


(42
)

(57
)
 






 
Cash flows from financing activities:





 
Cash dividends
(92
)

(93
)

(81
)
 
Change in book overdrafts
—


3


(29
)
 
Payments on debt
—


(156
)

(2
)
 
Exercises of stock options
39


81


5

 
Other
2


9


(1
)
 
Cash from financing activities
(51
)

(156
)

(108
)
 






 
Net change in cash and cash equivalents
290


(259
)

(225
)
 
Cash and cash equivalents at beginning of period
608


898


953

 
Cash and cash equivalents at end of period
$
898


$
639


$
728

 
Cash paid (received) during the year for:





 
Interest, net of amount capitalized
$
61


$
111


$
116

 
Income taxes
$
1


$
(2
)

$
(10
)
 

Page 3 of 9


 
Weyerhaeuser Company
Total Company Statistics
 
 
Q1.2013 Analyst Package



 
 
Preliminary results, subject to audit





 
Special Items Included in Net Earnings
 






 
in millions
Q4
 
Q1
 
 
December 31,
2012
 
March 31,
2013
 
March 31,
2012
 
 
Net earnings
$
143

 
$
144

 
$
41

 
Restructuring, impairments and other charges
—


—


10

 
Gain on postretirement plan amendment
—


—


(34
)
 
Tax settlements
—


—


(8
)
 
Net earnings before special items
$
143

 
$
144

 
$
9

 

 
 
Q4
 
Q1
 
 
December 31,
2012
 
March 31,
2013
 
March 31,
2012
 
 
Net earnings per diluted share
$
0.26

 
$
0.26

 
$
0.08

 
Restructuring, impairments and other charges
—


—


0.02

 
Gain on postretirement plan amendment
—


—


(0.06
)
 
Tax settlements
—


—


(0.02
)
 
Net earnings before special items per diluted share
$
0.26

 
$
0.26

 
$
0.02

 

 
Selected Total Company Items
 

 
in millions
Q4
 
Q1
 
 
December 31,
2012
 
March 31,
2013
 
March 31,
2012
 
 
Depreciation, depletion and amortization:

 

 

 
Cost of products sold
$
109

 
$
103

 
$
102

 
Selling, general and administrative expenses
9

 
9

 
11

 
Total depreciation, depletion and amortization
$
118

 
$
112

 
$
113

 





 
Pension and postretirement costs:

 

 

 
Pension and postretirement costs allocated to business segments
$
12

 
$
14

 
$
13

 
Pension and postretirement costs not allocated
8

 
10

 
7

 
Total company pension and postretirement costs
$
20

 
$
24

 
$
20

 






 
Total increase in Forest Products working capital(1)
$
(85
)
 
$
(334
)
 
$
(148
)
 
Cash spent for capital expenditures
$
(66
)
 
$
(48
)
 
$
(64
)
 
(1) Working capital does not include cash balances.









Page 4 of 9


Weyerhaeuser Company
Timberlands Segment
 
Q1.2013 Analyst Package



 
Preliminary results, subject to audit












Segment Statement of Operations







in millions

Q4.2012
 
Q1.2013
 
Q1.2012
Sales to unaffiliated customers
$
298

 
$
293

 
$
250

Intersegment sales
185

 
224

 
190

Total net sales
483

 
517

 
440

Cost of products sold
374

 
395

 
353

Gross margin
109

 
122

 
87

Selling expenses
2

 
3

 
2

General and administrative expenses
20


25


23

Research and development expenses
6

 
4

 
4

Restructuring, closures and impairments
2


2


—

Other operating income, net
(14
)
 
(15
)
 
(11
)
Operating income
93

 
103

 
69

Interest income and other
1

 
1

 
1

Loss attributable to noncontrolling interest
1


—


—

Net contribution to earnings (see note 1 on page 9)
$
95

 
$
104

 
$
70









Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*








in millions

Q4.2012
 
Q1.2013
 
Q1.2012
Operating income
$
93

 
$
103

 
$
69

Depreciation, depletion and amortization
38

 
36

 
35

Adjusted EBITDA, excluding special items*
$
131


$
139

 
$
104

* Non-GAAP measure - see page 9 for definition.














Selected Segment Items








 

Q4.2012
 
Q1.2013
 
Q1.2012
Total increase in working capital(1)
$
(37
)
 
$
(10
)
 
$
(9
)
Cash spent for capital expenditures
$
(16
)
 
$
(18
)
 
$
(12
)
(1) Working capital does not include cash balances.














Segment Statistics










Q4.2012
 
Q1.2013
 
Q1.2012
Third Party 
Net Sales
(millions)
Logs:

  

  

West
$
151

  
$
177

  
$
130

South
67

  
61

  
50

Canada
5

  
7

  
7

Total Logs
223

  
245

  
187

Pay as cut timber sales
4

  
1

  
3

Chip sales
4


3


6

Timberlands exchanges
20

  
2

  
8

Higher and better use land sales
9

  
3

  
4

Minerals, oil and gas
9

  
8

  
7

Products from international operations
26

  
22

  
25

Other products
3

  
9

  
10

Total
$
298

  
$
293

  
$
250

Logs
Third Party Sales
Realizations
(per cubic meter)
West
$
96.46

  
$
105.38

  
$
99.10

South
$
43.30

  
$
43.47

  
$
40.48

Canada
$
38.70

  
$
36.61

  
$
36.35

International
$
24.30

  
$
24.01

  
$
22.97

Logs
Third Party Sales
Volumes
(cubic meters,
thousands)
West
1,559

  
1,674

  
1,308

South
1,563

  
1,399

  
1,228

Canada
139

  
204

  
205

International
84

  
68

  
78

Total
3,345

  
3,345

  
2,819

Logs
Fee Harvest Volumes
(cubic meters,
thousands)
West
1,876

  
1,995

  
1,679

South
3,177

  
2,833

  
2,714

International
232

  
197

  
172

Total
5,285

  
5,025

  
4,565


Page 5 of 9


Weyerhaeuser Company
Wood Products Segment
 
Q1.2013 Analyst Package



 
Preliminary results, subject to audit












Segment Statement of Operations  







in millions

Q4.2012
 
Q1.2013
 
Q1.2012
Sales to unaffiliated customers
$
832

 
$
988

 
$
634

Intersegment sales
16

 
18

 
20

Total net sales
848

 
1,006

 
654

Cost of products sold
748

 
770

 
611

Gross margin
100

 
236

 
43

Selling expenses
24

 
26

 
21

General and administrative expenses
34


36


29

Research and development expenses
1

 
1

 
1

Charges for restructuring, closures and impairments
1

 
—

 
1

Other operating costs (income), net
2

 
(5
)
 
5

Operating income (loss)
38

 
178

 
(14
)
Interest income and other
—

 
—

 
1

Net contribution to earnings (see note 1 on page 9)
$
38


$
178


$
(13
)








Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*








in millions

Q4.2012
 
Q1.2013
 
Q1.2012
Operating income (loss)
$
38

 
$
178

 
$
(14
)
Depreciation, depletion and amortization
33

 
31

 
34

Adjusted EBITDA, excluding special items*
$
71


$
209

 
$
20

* Non-GAAP measure - see page 9 for definition.














Selected Segment Items








 

Q4.2012
 
Q1.2013
 
Q1.2012
Total decrease (increase) in working capital(1)
$
9

 
$
(194
)

$
(112
)
Cash spent for capital expenditures
$
(19
)
 
$
(10
)
 
$
(6
)
(1) Working capital does not include cash balances.














Segment Statistics








in millions, except for third-party sales realizations
Q4.2012
 
Q1.2013
 
Q1.2012
Structural Lumber
(board feet)
Third Party Net Sales
$
376

  
$
451

  
$
291

Third Party Sales Realizations
$
366

  
$
440

  
$
311

Third Party Sales Volumes(1)
1,025

  
1,025

  
937

Production Volumes
939

  
1,021

  
958

Outside Purchase Volumes
77


102


32

Engineered Solid
Section
(cubic feet)
Third Party Net Sales
$
68

  
$
82

  
$
65

Third Party Sales Realizations
$
1,817

  
$
1,850

  
$
1,830

Third Party Sales Volumes(1)
3.7

  
4.4

  
3.6

Production Volumes
3.6

  
4.6

  
3.7

Outside Purchase Volumes
1.6


0.9


1.0

Engineered
I-joists
(lineal feet)
Third Party Net Sales
$
47

  
$
56

  
$
41

Third Party Sales Realizations
$
1,265

  
$
1,300

  
$
1,285

Third Party Sales Volumes(1)
37

  
43

  
32

Production Volumes
37

  
44

  
34

Outside Purchase Volumes
2


3


2

Oriented Strand
Board
(square feet 3/8')
Third Party Net Sales
$
194

  
$
236

  
$
111

Third Party Sales Realizations
$
290

  
$
359

  
$
197

Third Party Sales Volumes(1)
670

  
657

  
565

Production Volumes
642

  
662

  
601

Outside Purchase Volumes
60


68


32

Softwood Plywood
(square feet 3/8')
Third Party Net Sales
$
32

  
$
36

  
$
23

Third Party Sales Realizations
$
347

  
$
370

  
$
309

Third Party Sales Volumes(1)
91

  
99

  
73

Production Volumes
59

  
61

  
51

Outside Purchase Volumes
34


42


25

(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
 
Q1.2013 Analyst Package



 
Preliminary results, subject to audit












Segment Statement of Operations







in millions

Q4.2012
 
Q1.2013
 
Q1.2012
Total net sales
$
463

 
$
474

 
$
473

Cost of products sold
385

 
424

 
407

Gross margin
78

 
50

 
66

Selling expenses
5

 
4

 
4

General and administrative expenses
18


20


20

Research and development expenses
2

 
2

 
2

Other operating income, net
(6
)
 
(7
)
 
(9
)
Operating income
59

 
31

 
49

Interest income and other
2

 
—

 
(1
)
Net contribution to earnings (see note 1 on page 9)
$
61

 
$
31

 
$
48









Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*








in millions

Q4.2012
 
Q1.2013
 
Q1.2012
Operating income
$
59

 
$
31

 
$
49

Depreciation, depletion and amortization
40

 
39

 
37

Adjusted EBITDA, excluding special items*
$
99


$
70

 
$
86

* Non-GAAP measure - see page 9 for definition.














Selected Segment Items








 

Q4.2012
 
Q1.2013
 
Q1.2012
Total decrease (increase) in working capital(1)
$
(30
)
 
$
(7
)

$
45

Cash spent for capital expenditures
$
(26
)
 
$
(17
)
 
$
(45
)
(1) Working capital does not include cash balances.













Segment Statistics










Q4.2012
 
Q1.2013
 
Q1.2012
Pulp
(air-dry metric
tons)
Third Party Net Sales (millions)
$
364

  
$
371

  
$
367

Third Party Sales Realizations
$
799

  
$
796

  
$
818

Third Party Sales Volumes (thousands)
456

  
467

  
449

Production Volumes (thousands)
465

  
445

  
438

Liquid
Packaging
Board
(tons)
Third Party Net Sales (millions)
$
75

  
$
85

  
$
83

Third Party Sales Realizations
$
1,085

  
$
1,079

  
$
1,181

Third Party Sales Volumes (thousands)
69

  
78

  
70

Production Volumes (thousands)
72

  
78

  
65



Page 7 of 9


Weyerhaeuser Company
Real Estate Segment
 
Q1.2013 Analyst Package



 
Preliminary results, subject to audit











Segment Statement of Operations






in millions
Q4.2012
 
Q1.2013
 
Q1.2012
Total net sales
$
407

 
$
196

 
$
137

Cost of products sold
276

 
160

 
113

Gross margin
131

 
36

 
24

Selling expenses
25

 
18

 
15

General and administrative expenses
27


18


17

Charges for restructuring, closures and impairments
1

 
1

 
1

Other operating income, net
(1
)
 
—

 
—

Operating income (loss)
79

 
(1
)
 
(9
)
Interest income and other
2

 
1

 
1

Net contribution to earnings
$
81

 
$
—

 
$
(8
)






Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*






in millions
Q4.2012
 
Q1.2013
 
Q1.2012
Operating income (loss)
$
79

 
$
(1
)
 
$
(9
)
Depreciation, depletion and amortization
4

 
3

 
2

Capitalized interest included in cost of products sold
8


7


3

Adjusted EBITDA, excluding special items*
$
91


$
9

 
$
(4
)
* Non-GAAP measure - see page 9 for definition.











Selected Segment Items






 
Q4.2012
 
Q1.2013
 
Q1.2012
Cash from operations
$
77


$
(71
)

$
(32
)
Cash spent for capital expenditures
$
(2
)
 
$
(2
)
 
$
(1
)






Segment Statistics









 
Q4.2012
 
Q1.2013
 
Q1.2012
Net sales:

 

 

Single-family housing
$
320

 
$
183

 
$
131

Land
84

 
11

 
3

Other
3

 
2

 
3

Total net sales
$
407

 
$
196

 
$
137

Single-family homes sold
561

 
820

 
697

Single-family homes closed
842

 
463

 
349

Single-family homes sold but not closed (backlog)
774

 
1,131

 
777

Single-family cancellation rate
15.9
%

12.2
%

10.1
%
Single-family buyer traffic
14,567


17,764


14,272

Single-family average price of homes closed (in thousands)
$
381

 
$
394

 
$
376

Single-family gross margin(1)
20.0
%
 
19.5
%
 
17.2
%
(1) Single-family gross margin equals revenue less cost of sales and period costs.



Page 8 of 9


Weyerhaeuser Company
Unallocated Items
 
Q1.2013 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 and the LIFO reserve.






Contribution to Earnings






in millions
Q4.2012
 
Q1.2013
 
Q1.2012
Unallocated corporate function expenses
$
(8
)
 
$
(3
)
 
$
(6
)
Unallocated share-based compensation
(3
)
 
(7
)
 
(5
)
Unallocated pension & postretirement costs
(8
)
 
(10
)
 
(7
)
Foreign exchange gains (losses)
(2
)
 
(4
)
 
6

Elimination of intersegment profit in inventory and LIFO(1)
8


(24
)

(12
)
Other
—

 
(7
)
 
30

Operating income (loss)
(13
)
 
(55
)
 
6

Interest income and other
9

 
9

 
10

Net contribution to earnings
$
(4
)
 
$
(46
)
 
$
16

(1) We began reporting the elimination of intersegment profit on inventory and the LIFO reserve in Unallocated Items in second quarter 2012. Previously these company-level adjustments were recorded in the business segments. This provides a better understanding of business operating results. Prior period results have been adjusted to reflect the change.









Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization, Excluding Special Items*









in millions
Q4.2012
 
Q1.2013
 
Q1.2012
Operating income (loss)
$
(13
)
 
$
(55
)
 
$
6

Depreciation, depletion and amortization
3

 
3

 
5

Non-operating pension and postretirement costs
8


10


7

Special items
—


—

 
(38
)
Capitalized interest included in cost of products sold
1


2


—

Adjusted EBITDA, excluding special items*
$
(1
)

$
(40
)
 
$
(20
)
* Non-GAAP measure - see below for definition.

















Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)









 
Q4.2012
 
Q1.2013
 
Q1.2012
Gain on postretirement plan amendment
$
—

 
$
—

  
$
52

Restructuring, impairments and other charges
—


—


(14
)
Total
$
—


$
—


$
38










Unallocated Selected Items









 
Q4.2012
 
Q1.2013
 
Q1.2012
Total increase in working capital(1)
$
(27
)
 
$
(123
)
 
$
(72
)
Cash spent for capital expenditures
$
(3
)
 
$
(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 excluding special items, as we define it, is operating income adjusted for depreciation, depletion, amortization, special items and interest included in cost of products sold. Adjusted EBITDA excluding special items should not be considered in isolation from and is not intended to represent an alternative to our results computed under GAAP.

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