Supplemental Financial Information

EX-99.2 3 dex992.htm SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Financial Information

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)


	Nine Months Ended
	September 30, 2008			September 30, 2007
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	587		$	589
Real Estate		217			204
Manufacturing		330			363
Other		19			15

Total Revenues		1,153			1,171

Costs and Expenses:
Cost of Goods Sold:
Timber		420			391
Real Estate		69			69
Manufacturing		345			349
Other		2			2

Total Cost of Goods Sold		836			811
Selling, General and Administrative		94			91

Total Costs and Expenses		930			902

Other Operating Income (Expense), net		2			—

Operating Income		225			269
Interest Expense, net		105			109

Income before Income Taxes		120			160
Benefit for Income Taxes		(18	)		(2	)

Income From Continuing Operations		138			162

Gain on Sale of Properties, net of tax		—			2

Net Income	$	138		$	164

Per Share Amounts:

Income From Continuing Operations - Basic	$	0.81		$	0.93
Income From Continuing Operations - Diluted	$	0.80		$	0.92

Net Income per Share - Basic	$	0.81		$	0.94
Net Income per Share - Diluted	$	0.80		$	0.93

Weighted Average Number of Shares Outstanding
- Basic		171.3			175.3
- Diluted		171.8			175.7

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)


	Quarter Ended
	September 30, 2008			September 30, 2007
	(In Millions, Except Per Share Amounts)
Revenues:
Timber	$	194		$	190
Real Estate		108			94
Manufacturing		104			119
Other		8			4

Total Revenues		414			407

Costs and Expenses:
Cost of Goods Sold:
Timber		144			133
Real Estate		33			31
Manufacturing		105			113
Other		1			1

Total Cost of Goods Sold		283			278
Selling, General and Administrative		31			30

Total Costs and Expenses		314			308

Other Operating Income (Expense), net		(1	)		(1	)

Operating Income		99			98
Interest Expense, net		35			38

Income before Income Taxes		64			60
Provision (Benefit) for Income Taxes		(5	)		1

Net Income	$	69		$	59

Per Share Amounts:

Net Income per Share - Basic	$	0.40		$	0.34
Net Income per Share - Diluted	$	0.40		$	0.34

Weighted Average Number of Shares Outstanding
- Basic		171.2			173.2
- Diluted		171.8			173.6

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	September 30, 2008			December 31, 2007
	(In Millions, Except Per Share Amounts)
ASSETS

Current Assets:
Cash and Cash Equivalents	$	175		$	240
Accounts Receivable		48			33
Like-Kind Exchange Funds Held in Escrow		69			-
Inventories		80			82
Deferred Tax Asset		7			7
Real Estate Development Properties		4			5
Assets Held for Sale		132			64
Other Current Assets		21			25

		536			456

Timber and Timberlands, net		3,863			3,949
Property, Plant and Equipment, net		179			202
Investment in Grantor Trusts (at Fair Value)		25			27
Other Assets		41			30

Total Assets	$	4,644		$	4,664

LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	300		$	147
Accounts Payable		48			48
Interest Payable		39			29
Wages Payable		22			25
Taxes Payable		20			23
Deferred Revenue		22			13
Other Current Liabilities		22			18

		473			303
Long-Term Debt		1,870			1,820
Line of Credit		432			556
Deferred Tax Liability		9			20
Other Liabilities		72			64

Total Liabilities		2,856			2,763

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) - 171.6 at September 30, 2008, and 172.3 at December 31, 2007		2			2
Additional Paid-In Capital		2,222			2,204
Retained Earnings		124			202
Treasury Stock, at cost, Common Shares - 15.9 at September 30, 2008, and 14.6 at December 31, 2007		(560	)		(509	)
Accumulated Other Comprehensive Income		—			2

Total Stockholders’ Equity		1,788			1,901

Total Liabilities and Stockholders’ Equity	$	4,644		$	4,664

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Nine Months Ended
	September 30, 2008			September 30, 2007
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	138		$	164
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2008 and $4 Loss Related to Forest Fires in 2007)		109			102
Basis of Real Estate Sold		49			45
Expenditures for Real Estate Development		(6	)		(13	)
Deferred Income Taxes		(11	)		(7	)
Gain on Sales of Properties and Other Assets		(3	)		(2	)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		17			—
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(69	)		(13	)
Other Working Capital Changes		(1	)		18
Other		2			10

Net Cash Provided By Operating Activities		225			304

Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(47	)		(59	)
Timberlands Acquired		(65	)		(96	)
Other		(1	)		5

Net Cash Used In Investing Activities		(113	)		(150	)

Cash Flows From Financing Activities:
Dividends		(216	)		(222	)
Borrowings on Line of Credit		1,275			2,179
Repayments on Line of Credit		(1,399	)		(2,246	)
Proceeds from Issuance of Long-Term Debt		250			350
Principal Payments and Retirement of Long-Term Debt		(50	)		(125	)
Proceeds from Stock Option Exercises		14			7
Acquisition of Treasury Stock		(51	)		(202	)

Net Cash Used In Financing Activities		(177	)		(259	)

Decrease In Cash and Cash Equivalents		(65	)		(105	)
Cash and Cash Equivalents:
Beginning of Period		240			273

End of Period	$	175		$	168

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Quarter Ended
	September 30, 2008			September 30, 2007
	(In Millions)
Cash Flows From Operating Activities:
Net Income	$	69		$	59
Adjustments to Reconcile Net Income to
Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (includes $4 Loss Related to Forest Fires in 2007)		33			37
Basis of Real Estate Sold		27			22
Expenditures for Real Estate Development		(1	)		(7	)
Deferred Income Taxes		(3	)		(2	)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)		(1	)		—
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		(8	)		45
Other Working Capital Changes		16			32
Other		(1	)		7

Net Cash Provided By Operating Activities		131			193

Cash Flows From Investing Activities:
Capital Expenditures (Excluding Timberland Acquisitions)		(18	)		(26	)
Timberlands Acquired		(64	)		(87	)
Other		(1	)		1

Net Cash Used In Investing Activities		(83	)		(112	)

Cash Flows From Financing Activities:
Dividends		(72	)		(73	)
Borrowings on Line of Credit		520			583
Repayments on Line of Credit		(457	)		(414	)
Principal Payments and Retirement of Long-Term Debt		(3	)		(26	)
Proceeds from Stock Option Exercises		13			1
Acquisition of Treasury Stock		—			(91	)
Other		1			—

Net Cash Provided By (Used In) Financing Activities		2			(20	)

Increase In Cash and Cash Equivalents		50			61
Cash and Cash Equivalents:
Beginning of Period		125			107

End of Period	$	175		$	168

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)


	Nine Months 2008			Nine Months 2007
	(In Millions)
Revenues:
Northern Resources	$	263		$	264
Southern Resources		366			374
Real Estate		217			204
Manufacturing		330			363
Other		19			15
Eliminations		(42	)		(49	)

Total Revenues	$	1,153		$	1,171

Operating Income (Loss)
Northern Resources	$	33		$	41
Southern Resources		103			126
Real Estate		141			129
Manufacturing		(24	)		3
Other		17			13
Other Costs and Eliminations		(47	)		(43	)
Other Operating Income (Expense), net		2			—

Total Operating Income	$	225		$	269

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)


	Third Quarter 2008			Third Quarter 2007
	(In Millions)
Revenues:
Northern Resources	$	95		$	86
Southern Resources		116			121
Real Estate		108			94
Manufacturing		104			119
Other		8			4
Eliminations		(17	)		(17	)

Total Revenues	$	414		$	407

Operating Income (Loss)
Northern Resources	$	12		$	8
Southern Resources		29			39
Real Estate		73			61
Manufacturing		(4	)		2
Other		7			3
Other Costs and Eliminations		(17	)		(14	)
Other Operating Income (Expense), net		(1	)		(1	)

Total Operating Income	$	99		$	98

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)


		2008								2007
		1st Qtr		2nd Qtr		3rd Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	29	$	26	$	25	$	27	$	32	$	31	$	31	$	30	$	31
Pulpwood	$/Ton Stumpage	$	10	$	10	$	10	$	10	$	9	$	9	$	9	$	9	$	9

Northern Resources
Sawlog	$/Ton Delivered	$	67	$	68	$	74	$	70	$	71	$	76	$	76	$	71	$	73
Pulpwood	$/Ton Delivered	$	39	$	43	$	45	$	42	$	37	$	38	$	36	$	38	$	37

Lumber (1)	$/MBF	$	366	$	367	$	384	$	372	$	390	$	400	$	405	$	410	$	400
Plywood (1)	$/MSF	$	398	$	404	$	396	$	399	$	398	$	407	$	416	$	399	$	405
Fiberboard (1)	$/MSF	$	591	$	600	$	610	$	600	$	490	$	529	$	542	$	538	$	525

Sales Volume
Southern Resources
Sawlog	1,000 Tons		1,459		1,666		1,425		4,550		1,681		1,691		1,639		1,401		6,412
Pulpwood	1,000 Tons		1,976		2,221		2,089		6,286		1,954		1,901		1,841		2,020		7,716

Total Harvest			3,435		3,887		3,514		10,836		3,635		3,592		3,480		3,421		14,128

Northern Resources
Sawlog	1,000 Tons		978		739		828		2,545		960		789		821		1,032		3,602
Pulpwood	1,000 Tons		738		504		725		1,967		819		527		635		645		2,626

Total Harvest			1,716		1,243		1,553		4,512		1,779		1,316		1,456		1,677		6,228

Lumber	MBF		69,596		83,477		74,100		227,173		95,265		95,701		82,217		77,248		350,431
Plywood	MSF		68,746		68,616		62,112		199,474		72,582		72,454		69,796		62,614		277,446
Fiberboard	MSF		58,784		63,205		44,371		166,360		64,872		65,938		64,039		59,179		254,028

(1)	Represents prices at mill level.

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)


	2008								2007
	1st Qtr		2nd Qtr		3rd Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic		17,145		13,215		14,800		45,160		8,645		21,255		30,735		16,895		77,530
Large Non-strategic		—		—		—		—		—		—		—		99,325		99,325
Conservation		1,015		595		39,880		41,490		4,210		480		2,650		24,505		31,845
HBU/Recreation		10,635		11,785		15,640		38,060		3,750		8,695		10,400		14,220		37,065
Development Properties		65		700		10		775		45		595		890		3,760		5,290
Conservation Easements		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

		28,860		26,295		70,330		125,485		16,650		31,025		44,675		158,705		251,055

Price per Acre
Small Non-strategic	$	1,180	$	1,285	$	1,145	$	1,200	$	1,445	$	1,295	$	1,400	$	1,510	$	1,400
Large Non-strategic		—		—		—		—		—		—		—	$	705	$	705
Conservation	$	395	$	1,555	$	1,035	$	1,030	$	1,740	$	6,660	$	2,150	$	1,080	$	1,340
HBU/Recreation	$	2,875	$	2,740	$	3,220	$	2,975	$	4,300	$	3,150	$	3,675	$	3,315	$	3,475
Development Properties	$	5,825	$	9,630	$	13,130	$	9,045	$	22,045	$	21,260	$	8,410	$	7,640	$	9,440
Conservation Easements		—		—		—		—		—		—		—		—		—

Revenue, ($ millions)
Small Non-strategic	$	20	$	17	$	17	$	54	$	13	$	28	$	43	$	26	$	110
Large Non-strategic		—		—		—		—		—		—		—	$	70	$	70
Conservation		—	$	1	$	41	$	42	$	7	$	3	$	6	$	26	$	42
HBU/Recreation	$	31	$	32	$	50	$	113	$	16	$	27	$	38	$	47	$	128
Development Properties		—	$	7		—	$	7	$	1	$	13	$	7	$	29	$	50
Conservation Easements		—		—		—		—		—		—		—		—		—

	$	52	$	57	$	108	$	217	$	37	$	71	$	94	$	198	$	400

Proceeds from Joint Ventures⁽¹⁾		—		—		—		—	$	2		—		—		—	$	2

Basis of Real Estate Sold⁽²⁾	$	10	$	13	$	26	$	49	$	9	$	14	$	22	$	63	$	108
($ millions)

(1)	Not reflected in the Land Sale Statistics (Acres Sold, Price per Acre and Revenue)

(2)	Includes $26 million in the fourth quarter 2007 for a large, non-strategic sale

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

September 30, 2008

(UNAUDITED)


	Borrowings ⁽¹⁾
	Principal		Weighted Avg. Interest Rate
Quarterly Maturities through 2010:
4th Qtr 2008	$	100	7.405%	⁽²⁾
1st Qtr 2009		50	7.670%
3rd Qtr 2009		150	8.730%
1st Qtr 2010		55	5.480%
4th Qtr 2010		4	8.050%

Annual Maturities through 2014:
2011		424	7.738%	⁽³⁾
2012		604	—	⁽⁴⁾
2013		257	6.668%	⁽⁵⁾
2014		4	8.050%

(1)	Does not include repayments on the company’s $750 million revolving line of credit due in 2011.

(2)	Principal amount composed of senior notes with principal amounts of $25 million and $75 million and interest rates of 7.870% and 7.250%, respectively.

(3)	Principal amount composed of senior notes with principal amounts of $75 million, $4 million, $295 million and $50 million and interest rates of 7.970%, 8.050%, 7.660% and 7.830%, respectively.

(4)

Includes $600 million of maturities for the company’s two term credit agreements and senior notes with principal of $4 million and an interest rate of 8.050%. The interest rate on the $350 million term credit agreement is currently based on LIBOR plus 0.45%. The interest rate on the $250 million term credit agreement is currently based on LIBOR plus 1.00%.

(5)	Principal amount composed of senior notes with principal amounts of $4 million, $75 million and $178 million and interest rates of 8.050%, 7.760% and 6.180%, respectively.