Crown Pacific announces first quarter results and increased quarterly distribution.PORTLAND, Ore.--(BUSINESS WIRE)--April 16, 1996--Crown Pacific Partners L.P. (NYSE NYSE See: New York Stock Exchange :CRO) today reported results for the first quarter 1996 and declared an increase in its quarterly distribution to unitholders. First quarter 1996 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. was $12.4 million vs. $11.5 million for the first quarter a year ago. Net income was $4.2 million, or 23 cents per unit, in the 1996 quarter, which compares to net income of $4.1 million, or 22 cents per unit, for the 1995 period. Revenues totaled $84.6 million and $97.8 million for the first quarter 1996 and 1995, respectively. The company also announced it would increase its quarterly distribution to $0.524 per unit from $0.51 per unit. The first quarter 1996 distribution will be payable on May 14, 1996, to unitholders of record on May 3, 1996. "Despite the lower revenues -- caused by generally lower product prices coupled with a December 1995 fire that closed an Inland Region sawmill sawmill, installation or facility in which cut logs are sawed into standard-sized boards and timbers. The saws used in such an installation are generally of three types: the circular saw, which consists of a disk with teeth around its edge; the band saw, which -- we were encouraged by our ability to improve our profit margins. This improvement is directly attributable to production efficiencies in our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and our strong timber base," said Peter W. Stott, president and chief executive officer. "Also, we have positioned the company for additional growth with the previously announced acquisition of 207,000 acres of premium northwest timberlands. When the acquisition closes, May 15, 1996, we will have increased our timber inventory by nearly 45 percent. These additional acres and volumes of merchantable Salable; of quality and type ordinarily acceptable among vendors and buyers. An item is deemed merchantable if it is reasonably fit for the ordinary purposes for which such products are manufactured and sold. For example, soap is merchantable if it cleans. timber will immediately contribute to cash flows and earnings and will further enhance the self-sufficiency of the company's manufacturing operations." "Looking to the near term," Stott continued, "we expect wood product prices to show improvement due to the strengthening U.S. economy. Additionally, the new 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 trade agreement between the U.S. and Canada is expected to reduce the imports of lower priced Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. lumber, which contributed to the decrease in lumber prices. The company also announced it will close its sawmill in Albeni Falls, Idaho. The mill will be closed due to its inefficient cost structure coupled with management's decision to further balance the Inland Region's fee harvest with the region's mill requirements. The closure is anticipated to occur on June 30, 1996, and will not have an adverse impact on the company's near-term earnings. Over the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. the closure is expected to improve the company's raw material self sufficiency, which will enhance both cash flows and net income. Crown Pacific is a leading integrated timber and forest products manufacturing partnership with extensive timber holdings and numerous 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 and Montana. Additional news releases may be obtained on the company's Internet home page at http://www.hnt.com/bizwire/cnn/710.htm. -0-
CROWN PACIFIC PARTNERS, L.P.
Combined Statement of Income
(In thousands, expect per Unit amounts)
For the Quarter Ended
March 31, March 31,
1996 1995
Revenues $ 84,555 $ 97,834 Operating costs: Cost of products sold 66,882 80,995 Selling, general and administrative expenses 5,312 5,309 Operating income 12,361 11,530 Interest expense 8,245 7,522 Amortization of debt issuance costs 126 116 Other income, net (174) (224) Net income 4,164 4,116 Net income per unit 23 cents 22 cents CONTACT: Crown Pacific Kelly E. Lang Lang language LANG Louisiana Army National Guard Lang Langobardian (linguistics) LANG Los Angeles Newspaper Guild , 503/274-2300 or Harris Massey Herinckx Fletcher Fletcher may refer to one of the following: Ideas and companies
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