Plum Creek Timber Company, Inc. Reports Results for Fourth Quarter and Full Year 2000.Business EditorsSEATTLE--(BUSINESS WIRE)--Jan. 23, 2001 Plum Creek Timber Company The Plum Creek Timber Company, Inc. is a Real Estate Investment Trust (REIT) which specializes in investing in timber. Based in Seattle, Plum Creek has strategically purchased lands which show a potential to be spun off for real estate development. , Inc. (NYSE NYSE See: New York Stock Exchange :PCL (Printer Command Language) The page description language for HP LaserJet printers. It has become a de facto standard used in many printers and typesetters. PCL Level 5, introduced with the LaserJet III in 1990, also supports Compugraphic's Intellifont scalable fonts. ) today announced fourth quarter earnings of $20.8 million, or $0.30 per share. Fourth quarter 1999 earnings were $25.7 million, or $0.38 per share. Earnings for the full year 2000 were $131.9 million, or $1.91 per share, while earnings for 1999 were $125.6 million, or $1.94 per share/unit, including the cumulative effect from an accounting change related to silviculture silviculture: see forestry. expenses. The Company reported results from the first six months of 1999 on a per unit basis as a master limited partnership (MLP (Meridian Lossless Packing) The compression technique used in DVD-Audio that provides the highest audio quality. It delivers two channels at 192 kHz with 24-bit samples or six channels at 96 kHz. ), and results from the next six months of 1999 on a per share basis as a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , a measure of cash flow defined as 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. plus depreciation, 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 and amortization, was $45.2 million for the fourth quarter and $192.0 million for the full year 2000. The figures are inclusive of inclusive of prep. Taking into consideration or account; including. the Company's unconsolidated subsidiaries and compare to $57.0 million and $250.7 million for the year-earlier periods. The Company ended the year with $181.4 million in cash and cash equivalents. Fourth quarter 2000 revenues were $55.4 million, compared to $46.1 million in the prior year period. On July 1, 1999, the Company converted from an MLP to a REIT and results have subsequently been reported under REIT accounting principles. Revenues of $209.1 million for the full year 2000 are therefore not comparable to revenues for the full year 1999, because REIT accounting rules excluded revenues from unconsolidated subsidiaries. On a comparable basis, including the Company's unconsolidated subsidiaries, revenues would have been $174.0 million for the fourth quarter and $713.5 million for the full year 2000, compared to $195.2 million for the fourth quarter and $796.9 million for the full year 1999. Beginning in 2001, a new tax law with regard to REIT rules will allow Plum Creek's financial statements to consolidate results of our timberlands operations with those of our previously unconsolidated manufacturing subsidiaries. Plum Creek's quarterly dividend will be announced on January 25, following the Company's Board of Directors' meeting. "Results in the fourth quarter improved over those in the third quarter on the strength of a moderate price rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in our Northwest 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 and plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel. businesses, stable log pricing, and very strong real estate markets," Plum Creek There are at least 166 streams in the USA, called Plum Creek, including :
American biochemist. He shared a 1968 Nobel Prize for the study of genetic codes. said. "For the year, our financial results were negatively impacted by dramatic third quarter declines in lumber and plywood prices, which were due to excess production industry-wide. We optimized our performance in this environment by reducing our lumber and plywood production in the fourth quarter, and protected our long-term value by deferring a portion of our timber harvest in our Rockies and Southern Regions," Holley added. "Importantly, we executed three key strategic initiatives: we sold our St. Maries, Idaho St. Maries is a city in Benewah County, Idaho, United States. The population was 2,652 at the 2000 census. The city is the county seat of Benewah CountyGR6. Pronounced like St. Mary's. Geography St. , timberlands and our Southern lumber mills at attractive prices, and reached an agreement to merge with The Timber Company," Holley concluded. Review of Operations The Company's Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. Region export log business experienced improved fourth quarter pricing versus the third quarter, and average prices for the year were 5% above those in 1999. Domestic log prices in the Region also increased over the third quarter, but average prices were 6% lower for the year compared to 1999. In the Rockies Region, fourth quarter prices dropped 5% from the third quarter, but averaged 3% higher for 2000 compared to 1999. Southern Region sawlog The term sawlog refers to that part of a tree stem that will be processed at a sawmill. This is in contrast to those other parts of the stem that are designated pulpwood. The differences are that sawlogs will be greater in diameter, straighter and have a lower knot frequency. prices were flat for the quarter and year, while average 2000 pulpwood pulp·wood n. Soft wood, such as spruce, aspen, or pine, used in making paper. pulpwood Noun pine, spruce, or any other soft wood used to make paper Noun 1. prices were 10% lower than a year ago. In the Northeast Region, sawlog and pulpwood prices were flat compared to the third quarter while average prices for both in 2000 exceeded those of 1999 by 11%. Prices for the Company's Northwest lumber products rose during the fourth quarter from the lows of the third quarter. However, prices ended the year averaging 9% less than the strong prices of 1999. Southern lumber prices continued to decline in the fourth quarter, and the average for the year was 16% below 1999. The sale of our two Southern lumber mills to West Fraser Timber West Fraser Timber Co. Ltd. TSX: WFT is an Canadian forestry company based in Quesnel, British Columbia. In 2006 it became the second largest lumber producer in North America. External links
Plum Creek's strong fourth quarter results from higher and better use (HBU HBU Houston Baptist University (Houston, Texas) HBU How Bout U HBU Historically Black University HBU Highest and Best Use (property valuation) HBU Heat Build Up ) land sales included some transactions that had shifted from previously planned third quarter closings. For the year, HBU income more than doubled, reflecting strong demand for both development and conservation properties. Outlook As we begin 2001, we continue to see good overall wood products demand. Housing starts and the repair and remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. market are at reasonably strong levels, but will likely slow compared to 2000. The overproduction o·ver·pro·duce tr.v. o·ver·pro·duced, o·ver·pro·duc·ing, o·ver·pro·duc·es To produce in excess of need or demand. o conditions of the second half of 2000 will persist at least through the first half of 2001, keeping downward pressure on wood products prices. We anticipate a rebound in the second half of the year, as lumber and plywood production curtailments begin to bring markets into better balance. We believe that lower lumber and structural panel prices, in addition to production curtailments, will put downward pressure on sawlog prices, which are likely to be down in 2001 as compared to 2000. Pulpwood and chip prices may increase slightly due to the impact of extended 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 curtailments. Strong nationwide real estate markets will continue to keep Plum Creek's conservation and development properties in high demand. Key forecast statistics for 2001 are provided in the supplemental financial package available on Plum Creek's website at www.plumcreek.com. Earnings Conference Call and Supplemental Information Plum Creek will hold a conference call today, January 23, at 5:30 p.m. Eastern Time to discuss these results as well as the outlook for 2001. To participate in the call, dial 800-960-1013 with access code: 4896400. A live webcast as well as a webcast replay will also be available from the Investor Information section of the Company's website at www.plumcreek.com. A voice replay will be available after the call's conclusion, by dialing 800-615-3210 with access code: 4896443. Plum Creek also publishes a supplemental financial package on its website to aid in interpreting our financial results. Plum Creek, a real estate investment trust (REIT), is the fourth largest timberland owner in the nation, with timberlands in the Northwest, South and Northeast regions of 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. , and nine wood product mills in the Northwest. On July 18, 2000 Plum Creek announced an agreement to merge with The Timber Company, a separate operating group of Georgia-Pacific Corporation, which, when completed, will create the second largest timberland owner in the U.S., with approximately 7.9 million acres. 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. This press release contains forward-looking statements within the meaning of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the forest products industry, our ability to harvest our timber, our ability to execute our acquisition strategy, and regulatory constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . These risks are detailed from time to time in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made, and neither the Company nor its management undertakes any obligation to update or revise any forward-looking statements. It is likely that if one or more of the risks and uncertainties materializes, the current expectations of the Company and its management will not be realized.
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Quarter Ended December 31,
2000 1999
(REIT) (REIT)
(In Thousands, Except Per Share)
Revenues $ 55,415 $ 46,051
---------- ----------
Costs and Expenses:
Cost of Goods Sold 18,705 13,791
Selling, General and
Administrative 4,554 3,882
Merger Expenses 1,649 --
---------- ----------
Total Costs and Expenses 24,908 17,673
---------- ----------
Operating Income 30,507 28,378
Interest Expense (11,588) (12,742)
Interest Income 905 872
Gain (Loss) on Disposition
of Assets - Net (107) 3,697
Other (Expense) Income - Net (6) (156)
---------- ----------
Income before Income Taxes, Equity
in Earnings (Loss) of
Unconsolidated Subsidiaries
and Preferred Stock Dividends 19,711 20,049
(Provision) Benefit
for Income Taxes -- 60
Equity in Earnings (Loss) of Unconsolidated Subsidiaries
and Preferred Stock Dividends 1,101 5,618
---------- ----------
Net Income before Cumulative Effect of Accounting
Change $ 20,812 $ 25,727
Net Income per Share
- Basic & Diluted $ 0.30 $ 0.38
========== ==========
Weighted average number
of Shares/Units outstanding
- Basic 69,181 67,290
========== ==========
Weighted average number
of Shares/Units outstanding
- Dilutive 69,208 67,290
========== ==========
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED / COMBINED STATEMENT OF INCOME
Year Ended December 31,
2000 1999 1998
(REIT) (REIT/MLP) (MLP)
(In Thousands, Except Per Share / Unit)
Revenues $ 209,054 $ 479,589 $ 736,657
---------- ---------- ----------
Costs and Expenses:
Cost of Goods Sold 68,030 304,791 542,653
Selling, General and
Administrative 13,687 28,374 52,917
Merger Expenses 3,827 -- --
---------- ---------- ----------
Total Costs and
Expenses 85,544 333,165 595,570
---------- ---------- ----------
Operating Income 123,510 146,424 141,087
Interest Expense (46,834) (63,456) (60,622)
Interest Income 4,801 1,982 1,042
Gain (Loss) on Disposition
of Assets - Net 49,616 3,697 (805)
Reorganization Costs -- (5,053) (4,763)
Other (Expense) Income - Net 161 (789) 14
---------- ---------- ----------
Income before Income Taxes,
Equity in Earnings (Loss) of
Unconsolidated Subsidiaries
and Preferred Stock Dividends and
Cumulative Effect of
Accounting Change 131,254 82,805 75,953
(Provision) Benefit
for Income Taxes -- 13,105 (517)
Equity in Earnings (Loss) of
Unconsolidated Subsidiaries
and Preferred Stock
Dividends 648 17,522 --
---------- ---------- ----------
Net Income before Cumulative Effect of Accounting
Change $ 131,902 $ 113,432 $ 75,436
Cumulative Effect of
Accounting Change -- 12,169
---------- ---------- ----------
Net Income $ 131,902 $ 125,601 $ 75,436
General Partner Interest -- 17,162 33,713
---------- ---------- ----------
Net Income Allocable to
Common Shareholders /
Unitholders $ 131,902 $ 108,439 $ 41,723
========== ========== ==========
Income Allocable to Common Shareholders/
Unitholders per Share before
Cumulative Effect of
Accounting Change $ 1.91 $ 1.72 $ 0.90
========== ========== ==========
Cumulative Effect of Accounting
Change per Share/Unit $ -- $ 0.22 $ --
========== ========== ==========
Net Income per Share /
Unit - Basic & Diluted $ 1.91 $ 1.94 $ 0.90
========== ========== ==========
Weighted average number of Shares/
Units outstanding - Basic 69,190 55,819 46,323
---------- ---------- ----------
Weighted average number of Shares/
Units outstanding - Diluted 69,213 55,819 46,323
---------- ---------- ----------
Pro forma amounts, assuming the change in accounting was applied
retroactively, are:
Net Income $ 113,432 $ 77,223
========= =============
Net Income Allocable to
Common Shareholders/Unitholders $ 96,270 $ 43,510
========= =============
Net Income per Share $ 1.72 $ 0.94
========= =============
More information on Plum Creek Timber Plum Creek Timber (NYSE: PCL) is the largest private landowner in the United States. Most of its lands were originally purchased as timberland.[1] Headquartered in Seattle, Washington, Plum Creek was spun off from Burlington Resources as a master limited Co. may be accessed at: http://www.businesswire.com/cnn/pcl.shtml or by fax at 888/329-4694. |
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