Crown Pacific announces second quarter distribution to unitholders and improved second 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)--July 19, 1995--Crown Pacific Partners L.P. (NYSE NYSE See: New York Stock Exchange :CRO) today announced an increase in earnings in the second quarter 1995 over the second quarter 1994. For the three months ended June June: see month. 30, 1995, net income was $4.2 million (23 cents per unit) compared with net income of $1.0 million in the same period a year ago. Revenues were $88.7 million compared to $94.3 million in the second quarter a year ago. Crown Pacific also announced it will pay its second quarter 1995 planned quarterly distribution of 51 cents per unit on August 14, 1995, to unitholders of record on July 31, 1995. "Despite the difficult operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. in the second quarter where 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 continued to decline, Crown Pacific improved its earnings and generated strong cash flow of $23.0 million," said Peter W. Stott, president and chief executive officer. "In addition, we have been actively cutting costs and working to improve operating efficiencies at all our facilities during this time." "In addition," Stott noted, "we exchanged and sold non-strategic timberlands in Central Washington Central Washington is a region of the United States defined as the western half of Eastern Washington, or those counties lying east of the Cascade Mountains but west of the 119th meridian. for timberlands intermingled with our Western Washington
Western Washington is a region of the United States defined as that part of Washington west of the Cascade Mountains. tree farm. This transaction not only improved our bottom line in the second quarter by $1.5 million (8 cents per unit), but also strengthened our asset base for 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 net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). received from the sale will be used to acquire additional high valued timberlands adjacent to our Western Washington tree farm. Through these transactions, Crown Pacific will consolidate its tree farm management in an area that is of higher value and more productive." Stott further commented, "Over the past few weeks we've seen a modest improvement in lumber markets brought about by a decline in interest rates and improving demand. Looking forward, we're guardedly guard·ed adj. 1. Protected; defended. 2. Watched over; supervised. 3. Cautious; restrained: We view these changes with guarded optimism. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that pricing for Crown Pacific's lumber products should improve further. We believe the slowing U.S. economy will continue to provide support for lower interest rates that should spur both housing activity and demand for wood products. However, we don't expect a rapid return to the price levels of a year ago, but more of a steady, modest strengthening in lumber prices. In the interim, Crown Pacific will continue to focus on producing stable cash flows through the production of higher margin products, cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and selectively reinvesting the proceeds of non-strategic asset sales. In addition, we continue to assess acquisition opportunities that will enhance cash flow and increase long-term returns to our unitholders." For the first six months of 1995, net income was $8.3 million (45 cents per unit) on revenues of $186.5 million, which compares to net income of $16.3 million on revenues of $210.2 million in the first half of 1994. Crown Pacific is a leading timber and forest products manufacturing partnership with extensive timber holdings and eight 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. -0-
CROWN PACIFIC PARTNERS, L.P.
Combined Statement of Income
(Unaudited, in thousands)
For the three months ended
June 30,
1995 1994
Company Predecessor
Revenues $ 88,674 $ 94,338 Operating costs: Cost of products sold/a 71,646 81,282 Selling, general and administrative expenses 4,957 5,129 Operating income 12,071 7,927 Interest expense 7,699 5,831 Amortization of debt issuance costs 132 941 Other (income) expense, net 74 (567) Income before provision for income taxes 4,166 1,722 Provision for income taxes -- 762 Net income 4,166 960 Accretion and income relative to mandatorily redeemable partnership interests -- 2,463 Net income allocated to partnership and shareholders' interests 4,166 (1,503) Net income per unit 23 cents /a In the first quarter 1995, the company completed the update of its timber inventory system to reflect the 3.4 billion board feet of timber it owns. The resulting increase in timber volumes reduced depletion cost for the second quarter 1995, by $1.7 million or 9 cents per unit and had no impact on cash flow.
For the six months ended
June 30,
1995 1994
Company Predecessor
Revenues $186,508 $210,245 Operating costs: Cost of products sold/a 152,641 168,285 Selling, general and administrative expenses 10,266 10,240 Operating income 23,601 31,720 Interest expense 15,221 11,698 Amortization of debt issuance costs 248 1,874 Other (income), net (150) (540) Income before provision for income taxes 8,282 18,688 Provision for income taxes -- 2,407 Net income 8,282 16,281 Accretion and income relative to mandatorily redeemable partnership interests -- 4,626 Net income allocated to partnership and shareholders' interests 8,282 11,655 Net income per unit 45 cents /a In the first quarter 1995, the company completed the update of its timber inventory system to reflect the 3.4 billion board feet of timber it owns. The resulting increase in timber volumes reduced depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able cost for the six months ended June 30, 1995, by $3.7 million or 20 cents per unit and had no impact on cash flow. 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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