EX-99 3 ex99-2supinfo.htm SUPPLEMENTAL FINANCIAL INFORMATION Plum Creek Timber Company, Inc.

Exhibit 99.2 Supplemental Financial Information

PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Year Ended
December 31,
2005
 December 31,
2004
(In Millions, Except Per Share Amounts)
Revenues:            
     Timber   $ 764   $ 694  
     Real Estate     292    303  
     Manufacturing     504    518  
     Other     16    13  
       Total Revenues     1,576    1,528  
   
Costs and Expenses:  
     Cost of Goods Sold:  
       Timber     418    368  
       Real Estate     152    149  
       Manufacturing     463    449  
       Other     3    4  
          Total Cost of Goods Sold     1,036    970  
              
     Selling, General and Administrative     92    86  
             Total Costs and Expenses     1,128    1,056  
              
Gain on Sale of Other Assets     --    5  
Operating Income     448    477  
              
Interest Expense, net     109    111  
Income before Income Taxes     339    366  
              
Provision for Income Taxes     8    27  
Income from Continuing Operations     331    339  
              
Gain on Sale of Properties, net of tax     23    23  
Net Income    $ 354   $ 362  
   
Income from Continuing Operations per Share  
     - Basic   $ 1.80   $ 1.85  
     - Diluted   $ 1.79   $ 1.84  
   
Net Income per Share  
     - Basic   $ 1.92   $ 1.97  
     - Diluted   $ 1.92   $ 1.97  
              
Weighted Average Number of Shares Outstanding  
     - Basic     184.0    183.4  
     - Diluted     184.6    184.1  
 

PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended
December 31,
2005
 December 31,
2004
(In Millions, Except Per Share Amounts)
Revenues:            
     Timber   $ 192   $ 181  
     Real Estate     72    23  
     Manufacturing     121    122  
     Other     6    1  
       Total Revenues     391    327  
   
Costs and Expenses:  
     Cost of Goods Sold:  
       Timber     110    99  
       Real Estate     47    9  
       Manufacturing     114    117  
       Other     1    1  
          Total Cost of Goods Sold     272    226  
             
     Selling, General and Administrative     24    24  
             Total Costs and Expenses     296    250  
Operating Income     95    77  
             
Interest Expense, net     29    27  
Income before Income Taxes     66    50  
             
Provision for Income Taxes     2    --  
Income from Continuing Operations     64    50  
             
Gain on Sale of Properties, net of tax     3    23  
Net Income   $ 67   $ 73  
   
Income from Continuing Operations per Share  
     - Basic   $ 0.34 $ 0.28
     - Diluted   $ 0.34 $ 0.28
   
Net Income per Share  
     - Basic   $ 0.36 $ 0.40
     - Diluted   $ 0.36 $ 0.40
   
Weighted Average Number of Shares Outstanding  
     - Basic     184.0  183.7
     - Diluted     184.6  184.4
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31,
2005
 December 31,
2004
(In Millions, Except Per Share Amounts)
                               ASSETS            
Current Assets:  
     Cash and Cash Equivalents   $ 369   $ 347  
     Restricted Advance from Customer     23    4  
     Accounts Receivable     44    40  
     Like-Kind Exchange Funds Held in Escrow     30    11  
     Inventories     75    71  
     Deferred Tax Asset     17    10  
     Other Current Assets     16    16  
      574    499  
             
Timber and Timberlands - Net     3,961    3,595  
Property, Plant and Equipment - Net     234    248  
Investment in Grantor Trusts     26    29  
Other Assets     17    7  
     Total Assets   $ 4,812   $ 4,378  
   
                            LIABILITIES  
Current Liabilities:  
     Current Portion of Long-Term Debt   $ 161   $ 32  
     Short-Term Debt     50    --  
     Accounts Payable     45    41  
     Interest Payable     30    28  
     Wages Payable     25    25  
     Taxes Payable     18    22  
     Deferred Revenue     35    16  
     Other Current Liabilities     11    20  
      375    184  
             
Long-Term Debt     1,524    1,405  
Lines of Credit     495    448  
Deferred Tax Liability     39    45  
Other Liabilities     54    56  
     Total Liabilities     2,487    2,138  
   
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,  
     issued (including Treasury Stock) - 186.2 at December 31, 2005,  
     and 185.7 at December 31, 2004     2    2  
Additional Paid-In Capital     2,181    2,168  
Retained Earnings     186    111  
Treasury Stock, at cost, Common Shares - 2.0     (44 )  (43 )
Other Equity     --    2  
     Total Stockholders' Equity     2,325    2,240  
     Total Liabilities and Stockholders' Equity   $ 4,812   $ 4,378  
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Year Ended
December 31,
2005
 December 31,
2004
(In Millions)
Cash Flows From Operating Activities:            
Net Income   $ 354   $ 362  
Adjustments to Reconcile Net Income to  
Net Cash Provided By Operating Activities:  
     Depreciation, Depletion and Amortization (Includes $2 Loss Related to
     Hurricane in 2005 and $9 Lumber Mill Impairment Charge in 2004)		     113    114  
     Basis of Real Estate Sold (Includes Impairment Losses of $1 in 2005 and
     $21 in 2004)		     124    134  
     Deferred Income Taxes     (13 )  9  
     Gain on Sales of Properties and Other Assets     (24 )  (28 )
     Working Capital Changes     (36 )  (12 )
     Other     (2 )  3  
Net Cash Provided By Operating Activities     516    582  
   
Cash Flows From Investing Activities:  
     Capital Expenditures (Excluding Timberland Acquisitions)     (89 )  (70 )
     Timberlands Acquired      (501 )  (66 )
     Proceeds from Sales of Properties and Other Assets  
          (Including Tax-Deferred Exchange Proceeds)     29    46  
     Other     (2 )  (1 )
Net Cash Used In Investing Activities     (563 )  (91 )
   
Cash Flows From Financing Activities:  
     Dividends     (279 )  (260 )
     Borrowings under Line of Credit     2,468    2,147  
     Repayments of Borrowings under Line of Credit     (2,421 )  (2,295 )
     Proceeds from Issuance of Short-Term Debt     50    --  
     Proceeds from Issuance of Long-Term Debt     297    --  
     Principal Payments and Retirement of Long-Term Debt     (53 )  (33 )
     Proceeds from Stock Option Exercises     9    12  
     Acquisition of Treasury Stock     (1 )  --  
     Other     (1 )  --  
Net Cash Provided by (Used In) Financing Activities     69    (429 )
             
Increase In Cash and Cash Equivalents     22    62  
     Cash and Cash Equivalents:  
       Beginning of Year     347    285  
             
       End of Year   $ 369   $ 347  
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended
December 31,
2005
 December 31,
2004
(In Millions)
Cash Flows From Operating Activities:            
Net Income   $ 67   $ 73  
Adjustments to Reconcile Net Income to  
Net Cash Provided By Operating Activities:  
     Depreciation, Depletion and Amortization (Includes $9 million Lumber Mill  
        Impairment Charge in 2004)     28    36  
     Basis of Real Estate Sold (Includes Impairment Losses of $1 in 2004)     42    7  
     Deferred Income Taxes     (8 )  (3 )
     Gain on Sales of Other Assets     (2 )  (23 )
     Working Capital Changes *     30    4  
     Other     (3 )  3  
Net Cash Provided By Operating Activities     154    97  
   
Cash Flows From Investing Activities:  
     Capital Expenditures (Excluding Timberland Acquisitions)     (36 )  (21 )
     Timberlands Acquired *     (383 )  (34 )
     Proceeds from Sales of Properties and Other Assets  
          (Including Tax-Deferred Exchange Proceeds)     2    19  
     Other     (1 )  (1 )
Net Cash Used In Investing Activities     (418 )  (37 )
   
Cash Flows From Financing Activities:  
     Dividends     (70 )  (66 )
     Borrowings under Line of Credit     662    476  
     Repayments of Borrowings under Line of Credit     (668 )  (495 )
     Proceeds from Issuance of Long-Term Debt     297    --  
     Principal Payments and Retirement of Long-Term Debt     (2 )  --  
     Proceeds from Stock Option Exercises     5    3  
Net Cash Provided by (Used In) Financing Activities     224    (82 )
             
Decrease In Cash and Cash Equivalents     (40 )   (22 )
     Cash and Cash Equivalents:  
       Beginning of Period     409     369  
             
       End of Period   $ 369   $ 347  

* - During the fourth quarter of 2005, the company concluded that proceeds received from a like-kind exchange should be reflected as an investment activity under "Timberlands Acquired" in the period in which the proceeds were reinvested in timberland assets. Prior to the fourth quarter, the company reflected like-kind exchange proceeds as an investment activity under "Timberlands Acquired" in the quarter in which the company concluded that it was probable that the proceeds would be successfully reinvested in timberland assets. For the quarter ended December 31, 2005, "Working Capital Changes" and "Timberlands Acquired" includes $65 million of like-kind exchange proceeds that were reinvested in timberland assets, which was previously reported in the Cash Flow Statement for the nine months ended September 30, 2005. Prior year amounts have been reclassified to conform to this year's presentation. This change in presentation does not affect net income or operating income for any period, nor does it affect any amounts in the statement of cash flows for the years ended December 31, 2005 and 2004.


Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Twelve
Months
2005
 Twelve
Months
2004
(In Millions)
Revenues:            
      Northern Resources   $ 347   $ 325  
      Southern Resources     501    459  
      Real Estate     292    303  
      Manufacturing     504    518  
      Other     16    13  
      Eliminations     (84 )  (90 )
          Total Revenues   $ 1,576   $ 1,528  
   
Operating Costs and Expenses:  
      Northern Resources   $ 245   $ 225  
      Southern Resources     280    252  
      Real Estate     152    151  
      Manufacturing     474    460  
      Other     3    4  
      Other Costs and Eliminations     (26 )  (36 )
          Total Costs and Expenses   $ 1,128   $ 1,056  
   
Operating Income (Loss)  
      Northern Resources   $ 102   $ 100  
      Southern Resources     221    207  
      Real Estate     140    152  
      Manufacturing     30    58  
      Other     13    9  
      Other Costs and Eliminations     (58 )  (54 )
      Gain on Sale of Other Assets     --    5  
          Total Operating Income   $ 448   $ 477  
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Fourth
Quarter
2005
 Fourth
Quarter
2004
(In Millions)
Revenues:            
      Northern Resources   $ 98   $ 83  
      Southern Resources     119    121  
      Real Estate     72    23  
      Manufacturing     121    122  
      Other     6    1  
      Eliminations     (25 )  (23 )
         Total Revenues   $ 391   $ 327  
   
Operating Costs and Expenses:  
      Northern Resources   $ 71   $ 58  
      Southern Resources     70    67  
      Real Estate     47    11  
      Manufacturing     117    121  
      Other     1    1  
      Other Costs and Eliminations     (10 )  (8 )
         Total Costs and Expenses   $ 296   $ 250  
   
Operating Income (Loss)  
      Northern Resources   $ 27   $ 25  
      Southern Resources     49    54  
      Real Estate     25    12  
      Manufacturing     4    1  
      Other     5    --  
      Other Costs and Eliminations     (15 )  (15 )
         Total Operating Income   $ 95   $ 77  
Plum Creek Timber Company, Inc.
Selected Operating Statistics
Unaudited)
2005
1st Qtr
 2nd Qtr
 3rd Qtr
 4th Qtr
 YTD
Sales Realization   Units                      
    Southern Resources 
       Sawlog  $/Ton Stumpage  $         38   $         38   $         36   $       37   $         37  
       Pulpwood  $/Ton Stumpage  $           9   $           9   $           8   $         7   $           8  
  
    Northern Resources 
       Sawlog  $/Ton Delivered  $         76   $         77   $         79   $       77   $         77  
       Pulpwood  $/Ton Delivered  $         37   $         37   $         39   $       38   $         38  
                         
    Lumber (1)  $/MBF  $       483   $       459   $       440   $     435   $       454  
    Plywood (1)  $/MSF  $       419   $       422   $       418   $     444   $       425  
    Fiberboard (1)  $/MSF  $       449   $       458   $       441   $     434   $       446  
  
Sales Volume 
    Southern Resources 
       Sawlog   1,000 Tons   1,899   1,899   1,553   1,624   6,975  
       Pulpwood   1,000 Tons   1,592   1,825   1,690   1,696   6,803  
          Total Harvest     3,491   3,724   3,243   3,320   13,778  
  
    Northern Resources 
       Sawlog  1,000 Tons  906   774   898   1,011   3,589  
       Pulpwood  1,000 Tons  499   319   467   529   1,814  
          Total Harvest     1,405   1,093   1,365   1,540   5,403  
                         
    Lumber  MBF  102,857   105,028   103,099   96,003   406,987  
    Plywood  MSF  75,483   75,235   76,692   71,115   298,525  
    Fiberboard  MSF  61,806   61,843   62,231   62,407   248,287  

(1) Represents prices at mill level.


2004
1st Qtr
 2nd Qtr
 3rd Qtr
 4th Qtr
 YTD
Sales Realization   Units                      
    Southern Resources 
       Sawlog  $/Ton Stumpage  $         37   $         36   $         36   $       36   $         36  
       Pulpwood  $/Ton Stumpage  $           9   $           8   $           8   $         7   $           8  
  
    Northern Resources 
       Sawlog  $/Ton Delivered  $         70   $         72   $         80   $       78   $         75  
       Pulpwood  $/Ton Delivered  $         34   $         34   $         35   $       36   $         35  
                         
    Lumber (1)  $/MBF  $       452   $       514   $       532   $     473   $       473  
    Plywood (1)  $/MSF  $       427   $       482   $       483   $     444   $       459  
    Fiberboard (1)  $/MSF  $       379   $       415   $       436   $     440   $       418  
  
Sales Volume 
    Southern Resources 
       Sawlog  1,000 Tons  1,719   1,488   1,670   1,761   6,638  
       Pulpwood  1,000 Tons  1,587   1,512   1,834   1,757   6,690  
          Total Harvest     3,306   3,000   3,504   3,518   13,328  
  
    Northern Resources 
       Sawlog  1,000 Tons  1,089   715   856   855   3,515  
       Pulpwood  1,000 Tons  534   301   436   452   1,723  
          Total Harvest     1,623   1,016   1,292   1,307   5,238  
                         
    Lumber  MBF  102,373   100,174   103,671   99,763   405,981  
    Plywood  MSF  80,487   77,236   78,896   71,373   307,992  
    Fiberboard  MSF  61,437   65,053   64,100   55,610   246,200  

(1) Represents prices at mill level.