Exhibit 99.1
Plum Creek Timber Company, Inc. 999 Third Avenue, Suite 4300 Seattle, WA 98104 206 467 3600 |  |
News Release
For more information contact: | |
For immediate release | Investors: John Hobbs 1-800-858-5347 |
July 29, 2013 | Media: Kathy Budinick 1-888-467-3751 |
Plum Creek Reports Results for Second Quarter 2013
SEATTLE - Plum Creek Timber Company, Inc. (NYSE: PCL) today announced second quarter earnings of $46 million, or $0.28 per diluted share, on revenues of $303 million. Earnings for the second quarter of 2012 were $36 million, or $0.22 per diluted share, on revenues of $294 million.
Earnings for the first six months of 2013 improved $37 million compared to the same period of 2012. Earnings were $102 million, or $0.62 per diluted share, on revenues of $643 million. Earnings for the first six months of 2012 were $65 million, or $0.40 per diluted share, on revenues of $631 million.
Adjusted EBITDA, a non-GAAP measure of operating performance, for the first six months of 2013 was $232 million, similar to the $234 million in the same period of 2012. The company ended the quarter with $355 million in cash and cash equivalents. A reconciliation of adjusted EBITDA to net income and cash flow from operations is provided as an attachment to this release.
“Each of our business segments performed well during the second quarter,” said Rick Holley, chief executive officer. “We are experiencing fundamental demand improvement and better pricing; although, we remain in the very early stages of the housing recovery. As the industry adjusts to this change in the demand environment, regional markets we serve are recovering at different rates. This is when our unmatched, geographic diversity gives us tremendous operating flexibility. It allows us to act and capitalize on strong local markets, growing earnings and cash flow while maximizing the long-term value of our asset base.”
Review of Quarterly Operations
The Northern Resources segment reported operating profit of $8 million during the second quarter, an increase of $4 million compared to the second quarter of 2012. Average sawlog prices increased $8 per ton, or 11 percent, compared to second quarter 2012 levels on improved demand from both domestic and export customers. Pulpwood prices were similar to the prices realized during the second quarter of 2012. As planned, total Northern segment volumes decreased approximately 160,000 tons, or 17 percent, from the second quarter harvest of 2012. Most of the reduction in harvest volume consisted of lower-margin pulpwood.
Operating profit in the Southern Resources segment was $23 million, up $1 million from the $22 million reported for second quarter of 2012. Higher prices for both sawlogs and pulpwood offset lower harvest
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Exhibit 99.1
volumes. Sawlog prices increased $1 per ton, or 5 percent, and pulpwood prices increased $1 per ton, or 10 percent, compared to the second quarter of 2012. Overall the Southern harvest declined about 500,000 tons, or 14 percent, compared to the second quarter of 2012. While our full-year 2013 Southern harvest is planned to be similar to 2012's harvest level, the 2013 harvest is weighted to the second half of the year to capture the expected improvement in log prices.
The Real Estate segment reported revenue of $53 million and operating income of $30 million in the second quarter of 2013. Second quarter 2012 revenue was $47 million and operating income was $29 million. During the quarter the company sold 9,800 acres of HBU/recreation lands for $1,925 per acre and 17,100 acres of small, non-strategic timberlands at an average price of $1,185 per acre. The company also sold about 17,500 acres of conservation land at an average price of $835 per acre.
The Manufacturing segment reported operating income of $14 million, a $5 million improvement over the second quarter of 2012. Strong demand and pricing continued to benefit each of the company's manufactured product lines. Plywood prices increased 13 percent compared to the second quarter of 2012 on strong industrial demand. Plywood sales volume declined 6 percent compared to the same period of 2012 due to reduced log availability. MDF prices were up 8 percent compared to second quarter 2012 while sales volume grew 15 percent. In April of this year, the company re-opened its Evergreen lumber mill, boosting lumber sales volume by 21 percent compared to the second quarter of 2012. Average lumber prices declined approximately one percent as the product mix shifted to include lower-priced stud lumber from the re-opened mill.
Outlook
Improving production trends for lumber and structural panels are expected to result in greater demand and higher pricing for sawlogs as the housing recovery continues to advance. Sawlog prices during the second half of 2013 are expected to be higher than the prices for the second half of 2012 in all regions.
The company continues to expect to harvest between 17.5 and 18 million tons of timber this year. During the third quarter, harvests in the Northern Resources segment are expected to increase seasonally from their second quarter low. The Southern harvest is expected to increase from the second quarter's level as log demand and prices gradually improve.
The company expects full-year Real Estate segment sales to be between $260 million and $290 million. Third quarter Real Estate segment sales are expected to be between $85 million and $95 million.
Earnings for the Manufacturing segment are expected to remain very good on sustained demand and continued strong pricing for the company's industrial plywood, MDF and lumber products.
Reflecting all of these factors, the company expects 2013 income to be between $1.30 and $1.45 per share. The company expects to report third quarter income between $0.38 and $0.43 per share.
“We continue to see positive trends from the recovering housing market and the general economy resulting in stronger demand for wood products,” continued Holley.
“Mill owners are investing significant capital today in their facilities to improve efficiency and increase their future production capacity. Capital investment translates directly into a stronger customer base and increased demand for our logs in the future. This gives us great confidence in our ability to grow our earnings and cash flow from our core timber business as the recovery continues.
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Exhibit 99.1
"Disciplined capital allocation remains our top priority as we continue to evaluate opportunities for growth. We firmly believe that superior capital allocation makes the difference between good returns and exceptional returns over the long term,” concluded Holley.
Earnings Conference Call and Supplemental Information
Plum Creek will hold a conference call today, July 29, 2013 at 5:00 p.m. ET (2:00 p.m. PT). A live webcast of the conference call may be accessed through Plum Creek's website at www.plumcreek.com by clicking on the “Investors” section.
Investors without Internet access should dial 1-800-572-9852 at least 10 minutes prior to the start of the call, referencing Plum Creek's earnings conference call. Those wishing to access the call from outside the United States and Canada should dial 1-706-645-9676, also referencing Plum Creek's earnings conference call. Replay of the call will be available for 48 hours after completion of the live call and can be accessed at 1-855-859-2056 or 1-404-537-3406 (international calls), using the code 31587215.
Supplemental financial information for Plum Creek operations, including statistical data and reconciliations to non-GAAP measures is available in the Investors section of Plum Creek's website at www.plumcreek.com.
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Plum Creek is among the largest and most geographically diverse private landowners in the nation with approximately 6.3 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest. For more information, visit www.plumcreek.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seek," "approximately," "intends," "plans," "estimates," or "anticipates," or the negative of those words or other comparable terminology. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the cyclical nature of the forest products industry, our ability to harvest our timber, our ability to execute our acquisition strategy, the market for and our ability to sell or exchange non-strategic timberlands and timberland properties that have higher and better uses, and various regulatory constraints. These and other risks, uncertainties and assumptions are detailed from time to time in our filings with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, and the Securities Act of 1933, as amended. It is likely that if one or more of the risks materializes, or if one or more assumptions prove to be incorrect, the current expectations of Plum Creek and its management will not be realized. Forward-looking statements are not guarantees of performance, and speak only as of the date made, and neither Plum Creek nor its management undertakes any obligation to update or revise any forward-looking statements.
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Exhibit 99.1
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In Millions, Except Per Share Amounts) | Six Months Ended June 30, | |||||||
2013 | 2012 | |||||||
REVENUES: | ||||||||
Timber | $ | 316 | $ | 312 | ||||
Real Estate | 131 | 147 | ||||||
Manufacturing | 185 | 161 | ||||||
Other | 11 | 11 | ||||||
Total Revenues | 643 | 631 | ||||||
COSTS AND EXPENSES: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 232 | 244 | ||||||
Real Estate | 52 | 84 | ||||||
Manufacturing | 157 | 143 | ||||||
Other | 2 | 1 | ||||||
Total Cost of Goods Sold | 443 | 472 | ||||||
Selling, General and Administrative | 61 | 55 | ||||||
Total Costs and Expenses | 504 | 527 | ||||||
Other Operating Income (Expense), net | 1 | 1 | ||||||
Operating Income | 140 | 105 | ||||||
Equity Earnings from Timberland Venture | 31 | 28 | ||||||
Interest Expense, net: | ||||||||
Interest Expense (Debt Obligations to Unrelated Parties) | 41 | 40 | ||||||
Interest Expense (Note Payable to Timberland Venture) | 29 | 29 | ||||||
Total Interest Expense, net | 70 | 69 | ||||||
Income before Income Taxes | 101 | 64 | ||||||
Provision (Benefit) for Income Taxes | (1 | ) | (1 | ) | ||||
Net Income | $ | 102 | $ | 65 | ||||
PER SHARE AMOUNTS: | ||||||||
Net Income per Share – Basic | $ | 0.63 | $ | 0.40 | ||||
Net Income per Share – Diluted | $ | 0.62 | $ | 0.40 | ||||
Weighted-Average Number of Shares Outstanding | ||||||||
– Basic | 162.6 | 161.4 | ||||||
– Diluted | 163.1 | 161.7 | ||||||
Exhibit 99.1
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In Millions, Except Per Share Amounts) | Quarter Ended June 30, | |||||||
2013 | 2012 | |||||||
REVENUES: | ||||||||
Timber | $ | 146 | $ | 157 | ||||
Real Estate | 53 | 47 | ||||||
Manufacturing | 99 | 85 | ||||||
Other | 5 | 5 | ||||||
Total Revenues | 303 | 294 | ||||||
COSTS AND EXPENSES: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 108 | 123 | ||||||
Real Estate | 22 | 16 | ||||||
Manufacturing | 82 | 73 | ||||||
Other | 1 | 1 | ||||||
Total Cost of Goods Sold | 213 | 213 | ||||||
Selling, General and Administrative | 29 | 27 | ||||||
Total Costs and Expenses | 242 | 240 | ||||||
Other Operating Income (Expense), net | 1 | 1 | ||||||
Operating Income | 62 | 55 | ||||||
Equity Earnings from Timberland Venture | 17 | 15 | ||||||
Interest Expense, net: | ||||||||
Interest Expense (Debt Obligations to Unrelated Parties) | 20 | 19 | ||||||
Interest Expense (Note Payable to Timberland Venture) | 15 | 15 | ||||||
Total Interest Expense, net | 35 | 34 | ||||||
Income before Income Taxes | 44 | 36 | ||||||
Provision (Benefit) for Income Taxes | (2 | ) | — | |||||
Net Income | $ | 46 | $ | 36 | ||||
PER SHARE AMOUNTS: | ||||||||
Net Income per Share – Basic | $ | 0.28 | $ | 0.22 | ||||
Net Income per Share – Diluted | $ | 0.28 | $ | 0.22 | ||||
Weighted-Average Number of Shares Outstanding | ||||||||
– Basic | 162.9 | 161.5 | ||||||
– Diluted | 163.4 | 161.7 | ||||||
Exhibit 99.1
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In Millions, Except Per Share Amounts) | June 30, 2013 | December 31, 2012 | ||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 355 | $ | 356 | ||||
Accounts Receivable | 40 | 22 | ||||||
Inventories | 49 | 49 | ||||||
Deferred Tax Asset | 8 | 7 | ||||||
Assets Held for Sale | 49 | 61 | ||||||
Other Current Assets | 37 | 13 | ||||||
538 | 508 | |||||||
Timber and Timberlands, net | 3,420 | 3,363 | ||||||
Mineral Rights, net | 87 | 87 | ||||||
Property, Plant and Equipment, net | 118 | 127 | ||||||
Equity Investment in Timberland Venture | 208 | 204 | ||||||
Deferred Tax Asset | 19 | 19 | ||||||
Investment in Grantor Trusts (at Fair Value) | 42 | 39 | ||||||
Other Assets | 33 | 37 | ||||||
Total Assets | $ | 4,465 | $ | 4,384 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 74 | $ | 248 | ||||
Line of Credit | 353 | 104 | ||||||
Accounts Payable | 28 | 26 | ||||||
Interest Payable | 22 | 26 | ||||||
Wages Payable | 15 | 29 | ||||||
Taxes Payable | 13 | 9 | ||||||
Deferred Revenue | 33 | 23 | ||||||
Other Current Liabilities | 10 | 7 | ||||||
548 | 472 | |||||||
Long-Term Debt | 1,815 | 1,815 | ||||||
Note Payable to Timberland Venture | 783 | 783 | ||||||
Other Liabilities | 91 | 91 | ||||||
Total Liabilities | 3,237 | 3,161 | ||||||
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) – 163.0 at June 30, 2013 and 162.0 at December 31, 2012 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,328 | 2,288 | ||||||
Retained Earnings (Accumulated Deficit) | (135 | ) | (97 | ) | ||||
Treasury Stock, at Cost, Common Shares – 27.0 at June 30, 2013 and 26.9 at December 31, 2012 | (940 | ) | (938 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (27 | ) | (32 | ) | ||||
Total Stockholders’ Equity | 1,228 | 1,223 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,465 | $ | 4,384 | ||||
Exhibit 99.1
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended June 30, | ||||||||
(In Millions) | 2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income | $ | 102 | $ | 65 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 51 | 56 | ||||||
Basis of Real Estate Sold | 42 | 75 | ||||||
Equity Earnings from Timberland Venture | (31 | ) | (28 | ) | ||||
Distributions from Timberland Venture | 27 | 28 | ||||||
Deferred Income Taxes | (1 | ) | (1 | ) | ||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | (4 | ) | (5 | ) | ||||
Timber Deed Acquired | (18 | ) | (98 | ) | ||||
Pension Plan Contributions | — | (7 | ) | |||||
Working Capital Changes | (40 | ) | (2 | ) | ||||
Other | 12 | 6 | ||||||
Net Cash Provided By (Used In) Operating Activities | 140 | 89 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (31 | ) | (35 | ) | ||||
Timberlands Acquired | (78 | ) | (13 | ) | ||||
Other | — | (1 | ) | |||||
Net Cash Provided By (Used In) Investing Activities | (109 | ) | (49 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividends | (140 | ) | (136 | ) | ||||
Borrowings on Line of Credit | 721 | 1,129 | ||||||
Repayments on Line of Credit | (472 | ) | (1,026 | ) | ||||
Debt Issuance Costs | — | (3 | ) | |||||
Principal Payments and Retirement of Long-Term Debt | (174 | ) | — | |||||
Proceeds from Stock Option Exercises | 35 | 3 | ||||||
Acquisition of Treasury Stock | (2 | ) | (1 | ) | ||||
Net Cash Provided By (Used In) Financing Activities | (32 | ) | (34 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | (1 | ) | 6 | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 356 | 254 | ||||||
End of Period | $ | 355 | $ | 260 | ||||
Exhibit 99.1
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended June 30, | ||||||||
(In Millions) | 2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income | $ | 46 | $ | 36 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 25 | 29 | ||||||
Basis of Real Estate Sold | 17 | 12 | ||||||
Equity Earnings from Timberland Venture | (17 | ) | (15 | ) | ||||
Deferred Income Taxes | (2 | ) | — | |||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | (1 | ) | (3 | ) | ||||
Pension Plan Contributions | — | (7 | ) | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | 53 | — | ||||||
Other Working Capital Changes | 12 | 28 | ||||||
Other | 6 | 3 | ||||||
Net Cash Provided By (Used In) Operating Activities | 139 | 83 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (17 | ) | (17 | ) | ||||
Timberlands Acquired | (76 | ) | (11 | ) | ||||
Net Cash Provided By (Used In) Investing Activities | (93 | ) | (28 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividends | (72 | ) | (68 | ) | ||||
Borrowings on Line of Credit | 430 | 370 | ||||||
Repayments on Line of Credit | (355 | ) | (370 | ) | ||||
Proceeds from Stock Option Exercises | 10 | — | ||||||
Net Cash Provided By (Used In) Financing Activities | 13 | (68 | ) | |||||
Increase (Decrease) In Cash and Cash Equivalents | 59 | (13 | ) | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 296 | 273 | ||||||
End of Period | $ | 355 | $ | 260 | ||||
Exhibit 99.1
PLUM CREEK TIMBER COMPANY, INC.
SEGMENT DATA
(UNAUDITED)
Six Months Ended June 30, | ||||||||
(In Millions) | 2013 | 2012 | ||||||
Revenues: | ||||||||
Northern Resources | $ | 127 | $ | 120 | ||||
Southern Resources | 202 | 202 | ||||||
Real Estate | 131 | 147 | ||||||
Manufacturing | 185 | 161 | ||||||
Other | 11 | 11 | ||||||
Eliminations | (13 | ) | (10 | ) | ||||
Total Revenues | $ | 643 | $ | 631 | ||||
Operating Income (Loss): | ||||||||
Northern Resources | $ | 19 | $ | 10 | ||||
Southern Resources | 47 | 43 | ||||||
Real Estate | 75 | 59 | ||||||
Manufacturing | 24 | 13 | ||||||
Other | 9 | 9 | ||||||
Other Costs and Eliminations, net | (34 | ) | (29 | ) | ||||
Total Operating Income | $ | 140 | $ | 105 | ||||
Adjusted EBITDA by Segment: (A) | ||||||||
Northern Resources | $ | 31 | $ | 23 | ||||
Southern Resources | 75 | 76 | ||||||
Real Estate | 117 | 135 | ||||||
Manufacturing | 32 | 20 | ||||||
Other | 10 | 9 | ||||||
Other Costs and Eliminations, net | (33 | ) | (29 | ) | ||||
Total | $ | 232 | $ | 234 | ||||
(A) 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 99.1
PLUM CREEK TIMBER COMPANY, INC.
SEGMENT DATA
(UNAUDITED)
Quarter Ended June 30, | ||||||||
(In Millions) | 2013 | 2012 | ||||||
Revenues: | ||||||||
Northern Resources | $ | 53 | $ | 56 | ||||
Southern Resources | 98 | 105 | ||||||
Real Estate | 53 | 47 | ||||||
Manufacturing | 99 | 85 | ||||||
Other | 5 | 5 | ||||||
Eliminations | (5 | ) | (4 | ) | ||||
Total Revenues | $ | 303 | $ | 294 | ||||
Operating Income (Loss): | ||||||||
Northern Resources | $ | 8 | $ | 4 | ||||
Southern Resources | 23 | 22 | ||||||
Real Estate | 30 | 29 | ||||||
Manufacturing | 14 | 9 | ||||||
Other | 4 | 4 | ||||||
Other Costs and Eliminations, net | (17 | ) | (13 | ) | ||||
Total Operating Income | $ | 62 | $ | 55 | ||||
Adjusted EBITDA by Segment: (A) | ||||||||
Northern Resources | $ | 13 | $ | 10 | ||||
Southern Resources | 37 | 40 | ||||||
Real Estate | 47 | 42 | ||||||
Manufacturing | 18 | 12 | ||||||
Other | 5 | 4 | ||||||
Other Costs and Eliminations, net | (16 | ) | (13 | ) | ||||
Total | $ | 104 | $ | 95 | ||||
(A) 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 99.1
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 method earnings, and before interest, taxes, depreciation, depletion, amortization, and basis in lands sold. 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 lands 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, 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 | ||||||||||||
Other | 9 | 1 | — | 10 | ||||||||||||
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 | ) | ||||||||||||||
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 99.1
Six Months Ended June 30, 2012 | ||||||||||||||||
Operating Income | Depreciation, Depletion and Amortization | Basis of Real Estate Sold | Adjusted EBITDA | |||||||||||||
By Segment | ||||||||||||||||
Northern Resources | $ | 10 | $ | 13 | $ | — | $ | 23 | ||||||||
Southern Resources | 43 | 33 | — | 76 | ||||||||||||
Real Estate | 59 | 1 | 75 | 135 | ||||||||||||
Manufacturing | 13 | 7 | — | 20 | ||||||||||||
Other | 9 | — | — | 9 | ||||||||||||
Other Costs and Eliminations | (30 | ) | — | — | (30 | ) | ||||||||||
Other Unallocated Operating Income (Expense), net | 1 | — | — | 1 | ||||||||||||
Total | $ | 105 | $ | 54 | $ | 75 | $ | 234 | ||||||||
Reconciliation to Net Income(1) | ||||||||||||||||
Equity Earnings from Timberland Venture | 28 | |||||||||||||||
Interest Expense | (69 | ) | ||||||||||||||
(Provision) Benefit for Income Taxes | 1 | |||||||||||||||
Net Income | $ | 65 | ||||||||||||||
Reconciliation to Net Cash Provided By Operating Activities | ||||||||||||||||
Net Cash Flows from Operations | $ | 89 | ||||||||||||||
Interest Expense | 69 | |||||||||||||||
Amortization of Debt Costs | (2 | ) | ||||||||||||||
Provision / (Benefit) for Income Taxes | (1 | ) | ||||||||||||||
Distributions from Timberland Venture | (28 | ) | ||||||||||||||
Deferred Income Taxes | 1 | |||||||||||||||
Gain on Sale of Properties and Other Assets | — | |||||||||||||||
Deferred Revenue from Long-Term Gas Leases | 5 | |||||||||||||||
Timber Deed Acquired | 98 | |||||||||||||||
Pension Plan Contributions | 7 | |||||||||||||||
Working Capital Changes | 2 | |||||||||||||||
Other | (6 | ) | ||||||||||||||
Adjusted EBITDA | $ | 234 | ||||||||||||||
(1) Includes reconciling items not allocated to segments for financial reporting purposes.
Exhibit 99.1
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 | ||||||||||||
Other | 4 | 1 | — | 5 | ||||||||||||
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 | — | |||||||||||||||
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.
Exhibit 99.1
Quarter Ended June 30, 2012 | ||||||||||||||||
Operating Income | Depreciation, Depletion and Amortization | Basis of Real Estate Sold | Adjusted EBITDA | |||||||||||||
By Segment | ||||||||||||||||
Northern Resources | $ | 4 | $ | 6 | $ | — | $ | 10 | ||||||||
Southern Resources | 22 | 18 | — | 40 | ||||||||||||
Real Estate | 29 | 1 | 12 | 42 | ||||||||||||
Manufacturing | 9 | 3 | — | 12 | ||||||||||||
Other | 4 | — | — | 4 | ||||||||||||
Other Costs and Eliminations | (14 | ) | — | — | (14 | ) | ||||||||||
Other Unallocated Operating Income (Expense), net | 1 | — | — | 1 | ||||||||||||
Total | $ | 55 | $ | 28 | $ | 12 | $ | 95 | ||||||||
Reconciliation to Net Income(1) | ||||||||||||||||
Equity Earnings from Timberland Venture | 15 | |||||||||||||||
Interest Expense | (34 | ) | ||||||||||||||
(Provision) Benefit for Income Taxes | — | |||||||||||||||
Net Income | $ | 36 | ||||||||||||||
Reconciliation to Net Cash Provided By Operating Activities | ||||||||||||||||
Net Cash Flows from Operations | $ | 83 | ||||||||||||||
Interest Expense | 34 | |||||||||||||||
Amortization of Debt Costs | (1 | ) | ||||||||||||||
Provision / (Benefit) for Income Taxes | — | |||||||||||||||
Distributions from Timberland Venture | — | |||||||||||||||
Deferred Income Taxes | — | |||||||||||||||
Gain on Sale of Properties and Other Assets | — | |||||||||||||||
Deferred Revenue from Long-Term Gas Leases | 3 | |||||||||||||||
Timber Deed Acquired | — | |||||||||||||||
Pension Plan Contributions | 7 | |||||||||||||||
Working Capital Changes | (28 | ) | ||||||||||||||
Other | (3 | ) | ||||||||||||||
Adjusted EBITDA | $ | 95 | ||||||||||||||
(1) Includes reconciling items not allocated to segments for financial reporting purposes.