EX-99.2 3 dex992.htm SUPPLEMENTAL FINANCIAL AND STATISTICAL INFORMATION Supplemental Financial and Statistical Information

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

     Six Months Ended  
     June 30,
2010		    June 30,
2009		  
     (In Millions, Except Per Share Amounts)  

Revenues:

      

Timber

    $ 284    $ 262   

Real Estate

      142      346   

Manufacturing

      138      124   

Other

      11      10   
               

Total Revenues

      575      742   
               

Costs and Expenses:

      

Cost of Goods Sold:

      

Timber

      209      206   

Real Estate

      51      128   

Manufacturing

      122      140   

Other

      1      1   
               

Total Cost of Goods Sold

      383      475   

Selling, General and Administrative

      50      55   
               

Total Costs and Expenses

      433      530   
               

Other Operating Income (Expense), net

      9      —     
               

Operating Income

      151      212   

Equity Earnings from Timberland Venture

      29      29   

Interest Expense, net:

      

Interest Expense (Debt Obligations to Unrelated Parties)

      39      47   

Interest Expense (Note Payable to Timberland Venture)

      29      29   
               

Total Interest Expense, net

      68      76   

Gain on Extinguishment of Debt

      —        1   

Income before Income Taxes

      112      166   

Provision (Benefit) for Income Taxes

      1      (23 ) 
               

Income From Continuing Operations

      111      189   

Gain on Sale of Properties, net of tax

      11      —     
               

Net Income

    $ 122    $ 189   
               

Per Share Amounts:

      

Income From Continuing Operations - Basic

    $ 0.68    $ 1.15   

Income From Continuing Operations - Diluted

    $ 0.68    $ 1.15   

Net Income per Share - Basic

    $ 0.75    $ 1.15   

Net Income per Share - Diluted

    $ 0.75    $ 1.15   

Weighted Average Number of Shares Outstanding

      

- Basic

      162.6      163.8   

- Diluted

      162.8      163.9   

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

     Quarter Ended  
     June 30,
2010		    June 30,
2009		  
     (In Millions, Except Per Share Amounts)  

Revenues:

      

Timber

    $ 133    $ 123   

Real Estate

      43      78   

Manufacturing

      78      66   

Other

      4      5   
               

Total Revenues

      258      272   
               

Costs and Expenses:

      

Cost of Goods Sold:

      

Timber

      100      98   

Real Estate

      16      33   

Manufacturing

      68      64   

Other

      1      1   
               

Total Cost of Goods Sold

      185      196   

Selling, General and Administrative

      21      23   
               

Total Costs and Expenses

      206      219   
               

Other Operating Income (Expense), net

      4      —     
               

Operating Income

      56      53   

Equity Earnings from Timberland Venture

      15      14   

Interest Expense, net:

      

Interest Expense (Debt Obligations to Unrelated Parties)

      19      23   

Interest Expense (Note Payable to Timberland Venture)

      15      15   
               

Total Interest Expense, net

      34      38   

Income before Income Taxes

      37      29   

Provision (Benefit) for Income Taxes

      2      (3 ) 
               

Net Income

    $ 35    $ 32   
               

Per Share Amounts:

      

Net Income per Share - Basic

    $ 0.21    $ 0.19   

Net Income per Share - Diluted

    $ 0.21    $ 0.19   

Weighted Average Number of Shares Outstanding

      

- Basic

      162.3      162.8   

- Diluted

      162.5      162.9   

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

     June 30,
2010		     December 31,
2009		  
     (In Millions, Except Per Share Amounts)  
ASSETS     

Current Assets:

     

Cash and Cash Equivalents

    $ 250      $ 299   

Accounts Receivable

      35        24   

Taxes Receivable

      1        15   

Inventories

      45        46   

Deferred Tax Asset

      7        6   

Assets Held for Sale

      98        115   

Other Current Assets

      21        14   
                
     457        519   

Timber and Timberlands, net

      3,455        3,487   

Property, Plant and Equipment, net

      149        156   

Equity Investment in Timberland Venture

      202        201   

Deferred Tax Asset

      12        14   

Investment in Grantor Trusts (at Fair Value)

      32        33   

Other Assets

      36        38   
                

Total Assets

    $ 4,343      $ 4,448   
                
LIABILITIES     

Current Liabilities:

     

Current Portion of Long-Term Debt

    $ 51      $ 55   

Line of Credit

      320        —     

Accounts Payable

      30        32   

Interest Payable

      24        25   

Wages Payable

      14        20   

Taxes Payable

      16        14   

Deferred Revenue

      31        16   

Other Current Liabilities

      12        21   
                
     498        183   

Long-Term Debt

      1,577        1,625   

Line of Credit

      —          320   

Note Payable to Timberland Venture

      783        783   

Other Liabilities

      79        71   
                

Total Liabilities

      2,937        2,982   
                

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) - 161.6 at June 30, 2010, and 162.8 at December 31, 2009

      2        2   

Additional Paid-In Capital

      2,239        2,233   

Retained Earnings

      96        110   

Treasury Stock, at cost, Common Shares - 26.2 at June 30, 2010, and 24.8 at December 31, 2009

      (911 )      (860 ) 

Accumulated Other Comprehensive Income (Loss)

      (20 )      (19 ) 
                

Total Stockholders’ Equity

      1,406        1,466   
                

Total Liabilities and Stockholders’ Equity

    $ 4,343      $ 4,448   
                

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     Six Months Ended  
     June 30,
2010		     June 30,
2009		  
     (In Millions)  

Cash Flows From Operating Activities:

     

Net Income

    $ 122      $ 189   

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

     

Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2009)

      48        57   

Basis of Real Estate Sold

      43        118   

Equity Earnings from Timberland Venture

      (29 )      (29 ) 

Distributions from Timberland Venture

      28        25   

Deferred Income Taxes

      1        (21 ) 

Gain on Sales of Properties and Other Assets

      (13 )      —     

Deferred Revenue from Long-Term Gas Leases (Net of Amortization)

      6        (4 ) 

Working Capital Changes Impacting Cash Flow:

     

Like-Kind Exchange Funds

      —          48   

Income Tax Receivable

      14        17   

Other Working Capital Changes

      (21 )      (8 ) 

Other

      8        2   
                

Net Cash Provided By Operating Activities

      207        394   
                

Cash Flows From Investing Activities:

     

Capital Expenditures (Excluding Timberland Acquisitions)

      (31 )      (28 ) 

Proceeds from Sales of Properties and Other Assets

      13        —     
                

Net Cash Used In Investing Activities

      (18 )      (28 ) 
                

Cash Flows From Financing Activities:

     

Dividends

      (136 )      (138 ) 

Borrowings on Line of Credit

      1,137        431   

Repayments on Line of Credit

      (1,137 )      (456 ) 

Principal Payments and Retirement of Long-Term Debt

      (53 )      (138 ) 

Proceeds from Stock Option Exercises

      2        —     

Acquisition of Treasury Stock

      (51 )      (87 ) 
                

Net Cash Used In Financing Activities

      (238 )      (388 ) 
                

Increase (Decrease) In Cash and Cash Equivalents

      (49 )      (22 ) 

Cash and Cash Equivalents:

     

Beginning of Period

      299        369   
                

End of Period

    $ 250      $ 347   
                

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     Quarter Ended  
     June 30,
2010		     June 30,
2009		  
     (In Millions)  

Cash Flows From Operating Activities:

     

Net Income

    $ 35      $ 32   

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

     

Depreciation, Depletion and Amortization

      24        24   

Basis of Real Estate Sold

      11        29   

Equity Earnings from Timberland Venture

      (15 )      (14 ) 

Deferred Income Taxes

      —          (4 ) 

Gain on Sales of Properties and Other Assets

      (2 )      —     

Deferred Revenue from Long-Term Gas Leases (Net of Amortization)

      (2 )      (2 ) 

Working Capital Changes Impacting Cash Flow:

     

Income Tax Receivable

      14        18   

Other Working Capital Changes

      11        25   

Other

      2        2   
                

Net Cash Provided By Operating Activities

      78        110   
                

Cash Flows From Investing Activities:

     

Capital Expenditures (Excluding Timberland Acquisitions)

      (18 )      (11 ) 

Proceeds from Sales of Properties and Other Assets

      2        —     
                

Net Cash Used In Investing Activities

      (16 )      (11 ) 
                

Cash Flows From Financing Activities:

     

Dividends

      (68 )      (69 ) 

Borrowings on Line of Credit

      569        206   

Repayments on Line of Credit

      (569 )      (211 ) 

Principal Payments and Retirement of Long-Term Debt

      —          (33 ) 

Proceeds from Stock Option Exercises

      2        —     

Acquisition of Treasury Stock

      (50 )      —     
                

Net Cash Used In Financing Activities

      (116 )      (107 ) 
                

Increase (Decrease) In Cash and Cash Equivalents

      (54 )      (8 ) 

Cash and Cash Equivalents:

     

Beginning of Period

      304        355   
                

End of Period

    $ 250      $ 347   
                

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

 

     Six
Months
2010		     Six
Months
2009		  
     (In Millions)  

Revenues:

     

Northern Resources

    $ 105      $ 92   

Southern Resources

      187        172   

Real Estate

      142        346   

Manufacturing

      138        124   

Other

      11        10   

Eliminations

      (8 )      (2 ) 
                

Total Revenues

    $ 575      $ 742   
                

Operating Income (Loss)

     

Northern Resources

    $ 7      $ (5 ) 

Southern Resources

      54        43   

Real Estate

      88        214   

Manufacturing

      14        (22 ) 

Other (A)

     15        9   

Other Costs and Eliminations, net

      (27 )      (27 ) 
                

Total Operating Income

    $ 151      $ 212   
                

 

(A)

During the first quarter of 2010, the company agreed to terminate a land lease for consideration of $5 million from the lessor. The land lease had been accounted for as an operating lease. The $5 million consideration is reported as Other Operating Gain/(Loss) in our Other Segment since the consideration was primarily for the release of mineral rights. The $5 million is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

Plum Creek Timber Company, Inc.

Segment Data

(Unaudited)

 

     Second
Quarter
2010		     Second
Quarter
2009		  
     (In Millions)  

Revenues:

     

Northern Resources

    $ 46      $ 35   

Southern Resources

      89        89   

Real Estate

      43        78   

Manufacturing

      78        66   

Other

      4        5   

Eliminations

      (2 )      (1 ) 
                

Total Revenues

    $ 258      $ 272   
                

Operating Income (Loss)

     

Northern Resources

    $ 3      $ (7 ) 

Southern Resources

      24        23   

Real Estate

      26        44   

Manufacturing

      10        —     

Other

      4        4   

Other Costs and Eliminations, net

      (11 )      (11 ) 
                

Total Operating Income

    $ 56      $ 53   
                

Plum Creek Timber Company, Inc

Selected Operating Statistics

(Unaudited)

 

          2010    2009
          1st Qtr    2nd Qtr    YTD    1st Qtr    2nd Qtr    3rd Qtr    4th Qtr    YTD
     Units                                        

Sales Realization

                           

Southern Resources

                           

Sawlog

    $/Ton Stumpage    $ 23    $ 23    $ 23    $ 24    $ 22    $ 22    $ 21    $ 22

Pulpwood

    $/Ton Stumpage    $ 13    $ 12    $ 13    $ 11    $ 9    $ 9    $ 10    $ 10

Northern Resources

                           

Sawlog

    $/Ton Delivered    $ 59    $ 66    $ 62    $ 57    $ 50    $ 56    $ 56    $ 55

Pulpwood

    $/Ton Delivered    $ 38    $ 38    $ 38    $ 43    $ 38    $ 38    $ 38    $ 40

Lumber (1)

    $/MBF    $ 501    $ 522    $ 512    $ 374    $ 340    $ 448    $ 477    $ 397

Plywood (1)

    $/MSF    $ 352    $ 397    $ 375    $ 362    $ 353    $ 361    $ 352    $ 357

Fiberboard (1)

    $/MSF    $ 588    $ 607    $ 599    $ 601    $ 593    $ 596    $ 599    $ 597

Sales Volume

                           

Southern Resources

                           

Sawlog

    1,000 Tons      1,274      1,122      2,396      942      1,217      1,250      993      4,402

Pulpwood

    1,000 Tons      1,526      1,448      2,974      1,487      1,849      2,014      1,649      6,999
                                                          

Total Harvest

         2,800      2,570      5,370      2,429      3,066      3,264      2,642      11,401

Northern Resources

                           

Sawlog

    1,000 Tons      627      484      1,111      525      371      632      609      2,137

Pulpwood

    1,000 Tons      527      348      875      613      397      691      567      2,268
                                                          

Total Harvest

         1,154      832      1,986      1,138      768      1,323      1,176      4,405

Lumber

    MBF      28,791      30,813      59,604      35,123      60,371      40,590      28,428      164,512

Plywood

    MSF      45,104      47,002      92,106      35,439      40,729      41,479      37,271      154,918

Fiberboard

    MSF      35,347      50,010      85,357      34,044      32,802      34,282      30,964      132,092

 

(1) Represents prices at mill level.

Plum Creek Timber Company, Inc.

Land Sale Statistics

(Unaudited)

 

     2010    2009
     1st Qtr (1)    2nd Qtr    YTD    1st Qtr (2)    2nd Qtr    3rd Qtr    4th Qtr    YTD

Acres Sold

                        

Small Non-strategic

      29,640      1,950      31,590      1,665      9,840      5,545      2,570      19,620

Large Non-strategic

      24,310      —        24,310      —        59,160      —        —        59,160

Conservation

      35,120      215      35,335      113,355      3,895      43,695      4,910      165,855

HBU/Recreation

      9,080      18,175      27,255      2,180      10,955      10,440      26,700      50,275

Development Properties

      730      60      790      1,485      25      515      35      2,060

Conservation Easements

      n/a      n/a      n/a      n/a      n/a      n/a      n/a      n/a
                                                       
     98,880      20,400      119,280      118,685      83,875      60,195      34,215      296,970

Price per Acre

                        

Small Non-strategic

    $ 885    $ 1,120    $ 900    $ 1,330    $ 900    $ 970    $ 855    $ 950

Large Non-strategic

    $ 1,320      —      $ 1,320      —      $ 650      —        —      $ 650

Conservation

    $ 545    $ 1,450    $ 550    $ 2,225    $ 1,705    $ 350    $ 1,280    $ 1,690

HBU/Recreation

    $ 2,125    $ 2,210    $ 2,185    $ 3,420    $ 2,200    $ 2,115    $ 2,200    $ 2,235

Development Properties

    $ 3,050    $ 5,985    $ 3,270    $ 4,075    $ 13,650    $ 9,190    $ 7,485    $ 5,520

Conservation Easements

      —        —        —        —        —        —        —        —  

Revenue, ($ millions)

                        

Small Non-strategic

    $ 26    $ 2    $ 28    $ 2    $ 9    $ 5    $ 2    $ 19

Large Non-strategic

    $ 32      —      $ 32      —      $ 38      —        —      $ 38

Conservation

    $ 19      —      $ 19    $ 252    $ 7    $ 15    $ 6    $ 280

HBU/Recreation

    $ 19    $ 40    $ 59    $ 7    $ 24    $ 22    $ 59    $ 112

Development Properties

    $ 2      —      $ 3    $ 6      —      $ 5      —      $ 12

Conservation Easements

      —        —        —        —        —        —        —        —  
                                                       
   $ 99    $ 43    $ 142    $ 268    $ 78    $ 48    $ 67    $ 461

Revenue from Non-Cash Exchange (3 )

      —        —        —        —        —      $ 25      —      $ 25

Basis of Real Estate Sold (4)

   $ 32    $ 11    $ 43    $ 89    $ 29    $ 21    $ 16    $ 155

 

 

(1) During the first quarter of 2010 the company sold 24,000 acres of Large Non-strategic lands located in Louisiana for $32 million. In addition, the company sold two larger Conservation properties totaling 35,000 acres in Wisconsin and Arkansas and an aggregation of 23,000 acres of Small Non-strategic timberlands located primarily in the Lake States region.

 

(2) During the 1st quarter of 2009 we sold 112,000 acres in Montana to a conservation buyer for $250 million. The sale is presented as a Conservation sale. The transaction included 56,000 acres of Conservation property, 10,000 acres of Small Non-strategic property, 45,000 acres of HBU/Recreation property, and 1,000 acres of Development property.

 

(3) During the 3rd quarter of 2009 we completed a non-cash exchange with the State of Washington. We relinquished 20,600 acres, in King County, in exchange for 37 parcels containing more than 6,000 acres in nine counties.

 

(4) Includes $7 million in the first quarter of 2010 for a 24,000 acre Large Non-strategic sale in Louisiana, $16 million in the second quarter of 2009 for a 59,000 acre Large Non-strategic sale in Wisconsin and $85 million in the first quarter of 2009 for a 112,000 acre Conservation sale in Montana.

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

June 30, 2010

(UNAUDITED)

 

     Borrowings (1)      
     Principal    Weighted Avg.
Interest Rate		      

Quarterly Maturities through 2010:

        

4th Qtr 2010

    $ 3    8.050 %   

Annual Maturities through 2014:

        

2011

    $ 308    7.732 %    (2)

2012

    $ 603    —        (3)

2013

    $ 250    6.663 %    (4)

2014

    $ 3    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 $40 million, $3 million, $216 million and $49 million and interest rates of 7.970%, 8.050%, 7.660% and 7.830%, respectively.

 

(3) Includes $600 million of maturities for the company’s two term credit agreements and senior notes with principal of $3 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%.

 

(4) Principal amount composed of senior notes with principal amounts of $3 million, $73 million and $174 million and interest rates of 8.050%, 7.760% and 6.180%, respectively.