CROWN PACIFIC REPORTS HIGHER THIRD QUARTER RESULTS; DISTRIBUTION TO UNITHOLDERS OF $0.538 PER UNIT.PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore.--(BUSINESS WIRE)--Oct. 21, 1997--Crown Pacific Partners, L.P. (NYSE NYSE See: New York Stock Exchange :CRO) today announced third quarter 1997 net income increased 14.5% to $6.8 million or $0.25 per unit, including 9 million additional units issued in August 1996. This compares to net income of $5.9 million or $0.25 per unit for the same 1996 quarter. For the quarter, revenues totaled $121.3 million, an 11.5% improvement, compared to $108.8 million for the same 1996 period. Cash flow for the third quarter of 1997 was $30.6 million, which compares to $29.4 million for the third quarter of last year. For the nine-month period, Crown Pacific reported net income of $20.8 million, or $0.76 per unit, on revenues of $364.1 million. This compares to net income of $14.5 million, or $0.72 per unit, on revenues of $289.5 million for the same period in 1996. Crown Pacific Partners Crown Pacific Partners, L.P. was a publicly traded partnership founded in 1988 which at its peak owned about 800,000 acres (3,000 km²) of timberland, half in Oregon and the rest in Washington, Idaho, and Montana. , L.P. also announced its third quarter distribution of $0.538 per unit, payable Nov. 14, 1997, to unitholders of record on Nov. 4, 1997. "After adjusting for more units, our quarterly results improved over the same period last year, despite softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. lumber lumber, term for timber that has been cut into boards for use as a building material. The major steps in producing lumber involve logging (the felling and preparation of timber for shipment to sawmills), sawing the logs into boards, grading the boards according to prices during the third quarter. In addition to steady third quarter returns, our overall results were up significantly for the first nine months of 1997 as a result of operational improvements and generally higher prices," said Crown Pacific President and Chief Executive Officer Peter W. Stott. "Nationally, lumber production began to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, demand during the third quarter," Stott added, "with lower prices realized for most of our products over second quarter levels. However, we expect prices to stabilize stabilize See peg. during the fourth quarter and perhaps even increase slightly by the end of the year and into 1998." Stott noted, "As of last week, we also closed the previously announced acquisition of timberlands located in northern Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. from Trillium trillium or wake-robin (trĭl`ēəm), any plant of the large genus Trillium, attractive spring wildflowers of the family Liliaceae (lily family), native to North America and E Asia. Corp. These timberlands are a strong fit with our existing holdings in this area, and will bring us to critical mass in the region, allowing for future growth." The information contained in this release includes certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are based on assumptions that in the future may prove not to be accurate. Those statements, and Crown Pacific Partners, L.P.'s business and prospects are subject to a number of risks, including the volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of timber timber: see lumber; wood. and lumber prices, factors limiting harvesting har·vest n. 1. The act or process of gathering a crop. 2. a. The crop that ripens or is gathered in a season. b. The amount or measure of the crop gathered in a season. c. of timber including contractual obligations, weather and access limitations, the substantial capital expenditures required to supply its operations, environmental risks, operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. normally associated with the timber industry, competition, government regulation, the value of the U.S. dollar against foreign currencies such as the Japanese yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. , and the ability of the partnership to implement its business strategy. These and other risks are described in the partnership's reports and registration statements that are available form the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission. Crown Pacific Partners, L.P. is a leading integrated forest products company with extensive timber holdings and conversion facilities located in Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , Washington, Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). and Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). . Additional information and news releases may be obtained from Crown Pacific's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the page at www.crownpacificpartners.com or by calling the partnership directly at (888) NYSE CRO. -0-
Crown Pacific Partners, L.P.
Consolidated Statement of Income
(In thousands, except unit data)
(Unaudited)
For the Three Months Ended
September 30,
1997 1996
Revenues $ 121,274 $ 108,813
Operating costs:
Cost of products sold 99,474 87,936
Selling, general and
administrative expenses 5,194 4,380
Operating income 16,606 16,497
Interest expense 9,410 10,833
Amortization of debt
issuance costs 185 170
Other (income) expense, net 245 (413)
Net income $ 6,766 $ 5,907
Net income per Unit/a $ 0.25 $ 0.25
Weighted average Units
outstanding 27,104,277 23,313,960
Cash flow/b $ 30,628 $ 29,412
(a) Net income per Unit is calculated based on weighted average
Units outstanding after deducting the General Partners' allocation of
net income.
(b) Cash flow is defined as EBITDDA or earnings before interest,
income taxes, depreciation, depletion, and amortization. EBITDDA is
provided because management believes EBITDDA provides useful
information for evaluating the Company's ability to service debt and
support its cash distributions to Unitholders.
Crown Pacific Partners, L.P.
Consolidated Balance Sheet
(In thousands, except unit data)
Assets
September 30, December 31,
1997 1996
(Unaudited)
Current assets:
Cash and cash equivalents $ 15,018 $ 16,818
Accounts receivable 41,737 42,810
Notes receivable 4,461 5,605
Inventories 43,180 35,746
Deposits on timber cutting contracts 6,414 4,771
Prepaid and other current assets 2,483 2,674
Total current assets 113,293 108,424
Property, plant and equipment, net 46,887 43,679
Timber, timberlands and roads, net 515,961 511,869
Other assets 10,594 11,789
Total assets $ 686,735 $ 675,761
Liabilities and Partners' Capital
Current liabilities:
Notes payable $ 11,500 $ 15,000
Accounts payable 17,238 11,363
Accrued expenses 21,495 10,470
Accrued interest 11,242 5,369
Current portion of long-term debt 1,000 1,000
Total current liabilities 62,475 43,202
Long-term debt 407,500 392,000
Other non-current liabilities 407 561
470,382 435,763
Commitments and contingent liabilities
Partners' capital:
General partners 2,323 2,708
Limited partners (27,104,277 Units
outstanding at September 30, 1997,
and December 31, 1996) 214,030 237,290
Total partners' capital 216,353 239,998
Total liabilities and
partners' capital $ 686,735 $ 675,761
Crown Pacific Partners, L.P.
Consolidated Statement of Income
(In thousands, except unit data)
(Unaudited)
For the Nine Months Ended
September 30,
1997 1996
Revenues $ 364,092 $ 289,450
Operating costs:
Cost of products sold 295,398 231,084
Selling, general and
administrative expenses 18,897 14,301
Operating income 49,797 44,065
Interest expense 28,194 29,387
Amortization of debt issuance costs 550 451
Other income, net 220 (287)
Net income $ 20,833 $ 14,514
Net income per Unit/a $ 0.76 $ 0.72
Weighted average Units outstanding 27,104,277 19,872,943
Cash flow/b $ 81,571 $ 75,134
(a) Net income per Unit is calculated based on weighted average
Units outstanding after deducting the General Partners' allocation of
net income.
(b) Cash flow is defined as EBITDDA or earnings before interest,
income taxes, depreciation, depletion, and amortization. EBITDDA is
provided because management believes EBITDDA provides useful
information for evaluating the Company's ability to service debt and
support its cash distributions to Unitholders.
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
For the Nine Months Ended
September 30,
1997 1996
Cash flows from operating activities:
Net income $ 20,833 $ 14,514
Adjustments to reconcile net income to
net cash provided by operating activities:
Depletion, depreciation and amortization 32,544 31,233
Gain on sale of property (1,146) (8,545)
Other (134) (699)
Net change in current assets and current
liabilities:
Accounts and notes receivable 4,396 (6,791)
Inventories (12,570) 7,798
Deposits on timber cutting contracts (1,643) 3,050
Prepaid and other current assets 194 (300)
Accounts payable and accrued expenses 16,102 14,289
Net cash provided by operating activities 58,576 54,549
Cash flows from investing activities:
Additions to timberlands (19,036) (213,201)
Additions to timber cutting rights (4,628) (12,842)
Additions to equipment (8,362) (8,555)
Proceeds from sales of property 1,990 6,643
Principal payments received on notes 6,141 -
Purchase of businesses - (6,028)
Other investing activities 53 (12)
Net cash used in investing activities (23,842) (233,995)
Cash flows from financing activities:
Net (decrease) in short-term borrowings (7,500) (5,517)
Proceeds from issuance of long-term debt 16,500 343,000
Repayments of long-term debt (1,000) (276,000)
Proceeds from sale of partnership
interests - 165,252
Distributions to partners (44,251) (28,830)
Redemption of partners Special Allocation
Units - (4,100)
Equity issuance costs (131) (10,529)
Other financing activities (152) (424)
Net cash (used in) provided by financing
activities (36,534) 182,852
Net (decrease) increase in cash and cash
equivalents (1,800) 3,406
Cash and cash equivalents at beginning of
period 16,818 10,292
Cash and cash equivalents at end of
period $ 15,018 $ 13,698
CONTACT: Crown Pacific Crown Pacific Financial Inquiries: Media Inquiries: Mark B. Conan Robert S Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. . (Bob) Hess Hess , Walter Rudolf 1881-1973. Swiss physiologist. He shared a 1949 Nobel Prize for his research on the brain's control of the body. 503/274-2300 503/274-2300 |
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