CROWN PACIFIC REPORTS INCREASED QUARTERLY DISTRIBUTION AND HIGHER FIRST QUARTER RESULTS.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)--April 22, 1997-Crown Pacific Partners, L.P. (NYSE NYSE See: New York Stock Exchange :CRO) today announced improved results for the first quarter of 1997, and declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a 2.7% increase in its quarterly distribution to unitholders. First quarter net income increased more than 60% to $6.7 million on record quarterly revenues of $117.4 million, a 39% increase, compared to net income of $4.2 million on revenues of $84.6 million in the first quarter of 1996. Net income per Unit increased slightly, to $0.24 per Unit, calculated using the 9 million additional Units issued in August 1996, from $0.23 per Unit in last year's first quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter increased 33%, to $16.5 million, versus $12.4 million for the same period in 1996. The partnership also announced it would increase its quarterly distribution to $0.538 per Unit from $0.524 per Unit, payable May 15, 1997 to unitholders of record on May 5, 1997. "This cash distribution highlights our continued, strong growth and commitment to provide ongoing value to our unitholders," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. President and Chief Executive Officer Peter W. Stott. "We are pleased with our performance for the first quarter. Higher prices for our 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 products were one of the reasons for our improved results, combined with greater production volumes in most of our regions and product lines. "Looking to the near-term near-term adj. Of, for, or involving a short period of time in the near future. ," Stott added, "We expect wood products prices to hold steady, despite an uncertain outlook for interest rates and the resulting effect on housing. The domestic housing and remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling market continued its strong performance during the quarter. Lumber prices were 12% higher in our 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. Region and 26% higher in our Inland Region compared to the first quarter of 1996. The export log market has softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. as a result of recent declines in the value of 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. against the U.S. dollar, while the domestic log market is expected to remain strong during the construction season." "In addition to solid lumber prices," Stott added, "production volumes were stable or increased at virtually all of our operations during the quarter, even while installing capital equipment upgrades at some of our facilities." 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 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.'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 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 capital expenditures required to maintain 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, and the ability of the Partnership to implement its business strategy. These and other risks are described in the Partnerships's reports and registration statements that are available from 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 partnership with extensive timber holdings and conversion facilities located in Oregon, 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. , 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 http://www.businesswire.com/cnn/cro.htm or by calling the partnership directly. -0-
Crown Pacific Partners, L.P.
Consolidated Statement of Income
(In thousands, except for Unit data)
(Unaudited)
For the Three Months Ended
March 31,
1997 1996
Revenues $ 117,391 $ 84,555
Operating costs:
Cost of products sold 94,171 66,882
Selling, general and
administrative expenses 6,720 5,312
Operating income 16,500 12,361
Interest expense 9,479 8,245
Amortization of debt
issuance costs 182 126
Other expense (income), net 142 (174)
Net income $ 6,697 $ 4,164
Net income per Unit/a $ 0.24 $ 0.23
Weighted average Units
outstanding 27,104,277 18,133,527
Cash flow/b $ 25,523 $ 21,413
(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)
Assets
March 31, December 31,
1997 1996
(Unaudited)
Current assets:
Cash and cash equivalents $ 15,807 $ 16,818
Accounts receivable 54,155 42,810
Notes receivable 3,892 5,605
Inventories 26,706 35,746
Deposits on timber
cutting contracts 4,417 4,771
Prepaid and other current assets 3,141 2,674
Total current assets 108,118 108,424
Property, plant and equipment, net 43,295 43,679
Timber, timberlands and roads, net 506,759 511,869
Other assets 11,151 11,789
Total assets $ 669,323 $ 675,761
Liabilities and Partners' Capital
Current liabilities:
Notes payable $ 15,000 $ 15,000
Accounts payable 8,389 11,363
Accrued expenses 9,988 10,470
Accrued interest 11,032 5,369
Current portion of long-term debt 1,000 1,000
Total current liabilities 45,409 43,202
Long-term debt 391,000 392,000
Other non-current liabilities 712 561
437,121 435,763
Commitments and contingent liabilities
Partners' capital:
General partners 2,632 2,708
Limited partners (27,104,277 Units
outstanding at March 31, 1997 and
December 31, 1996) 229,570 237,290
Total partners' capital 232,202 239,998
Total liabilities and partners'
capital $ 669,323 $ 675,761
Crown Pacific Partners, L.P.
Consolidated Statement of Cash Flows
(In thousands, except for Unit data)
(Unaudited)
For the Three Months Ended
March 31,
1997 1996
Cash flows from operating activities:
Net income $ 6,697 $4,164
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion, depreciation and
amortization 9,347 9,005
Loss (gain) on sale of property 44 (2,073)
Other (232) 1
Net change in current assets and
current liabilities:
Accounts and notes receivable (6,498) (2,758)
Inventories 3,904 2,271
Deposits on cutting contracts 354 1,209
Prepaid and other current assets (442) (328)
Accounts payable and accrued
expenses 2,357 8,725
Net cash provided by operating
activities 15,531 20,216
Cash flows from investing activities:
Additions to timberlands (1,577) (2,924)
Additions to timber cutting rights (1,275) (12,842)
Additions to equipment (2,277) (2,456)
Proceeds from sales of property 1,097 979
Principal payments received on notes 3,070 -
Other investing activities 14 (116)
Net cash used in investing activities (948) (17,359)
Cash flows from financing activities:
Net decrease in short-term borrowing - (4,000)
Proceeds from issuance of long-term debt - 32,000
Repayments of long-term debt (1,000) (18,000)
Distributions to partners (14,492) (9,436)
Other financing activities (102) (37)
Net cash (used in) provided by financing
activities (15,594) 527
Net (decrease) increase in cash and
cash equivalents (1,011) 3,384
Cash and cash equivalents at beginning
of period 16,818 10,292
Cash and cash equivalents at end of
period $ 15,807 $ 13,676
CONTACT: 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. Crown Pacific Crown Pacific 503/274-2300 503/274-2300 |
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