Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Six Months Ended | ||||||
June 30, 2006 | June 30, 2005 | |||||
(In Millions, Except Per Share Amounts) | ||||||
Revenues: | ||||||
Timber | $ | 407 | $ | 392 | ||
Real Estate | 113 | 104 | ||||
Manufacturing | 264 | 257 | ||||
Other | 10 | 5 | ||||
Total Revenues | 794 | 758 | ||||
Costs and Expenses: | ||||||
Cost of Goods Sold: | ||||||
Timber | 234 | 201 | ||||
Real Estate | 41 | 40 | ||||
Manufacturing | 240 | 235 | ||||
Other | 1 | 1 | ||||
Total Cost of Goods Sold | 516 | 477 | ||||
Selling, General and Administrative | 52 | 45 | ||||
Total Costs and Expenses | 568 | 522 | ||||
Operating Income | 226 | 236 | ||||
Interest Expense, net | 65 | 54 | ||||
Income before Income Taxes | 161 | 182 | ||||
Provision for Income Taxes | 7 | 11 | ||||
Income from Continuing Operations | 154 | 171 | ||||
Gain on Sale of Properties, net of tax | — | 20 | ||||
Net Income Before Cumulative Effect of Accounting Change | 154 | 191 | ||||
Cumulative Effect of Accounting Change, net of tax | 2 | — | ||||
Net Income | $ | 156 | $ | 191 | ||
Income from Continuing Operations per Share | ||||||
- Basic | $ | 0.84 | $ | 0.93 | ||
- Diluted | $ | 0.84 | $ | 0.93 | ||
Net Income per Share | ||||||
- Basic | $ | 0.85 | $ | 1.04 | ||
- Diluted | $ | 0.85 | $ | 1.03 | ||
Weighted Average Number of Shares Outstanding | ||||||
- Basic | 183.2 | 183.9 | ||||
- Diluted | 183.7 | 184.6 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | ||||||
June 30, 2006 | June 30, 2005 | |||||
(In Millions, Except Per Share Amounts) | ||||||
Revenues: | ||||||
Timber | $ | 193 | $ | 192 | ||
Real Estate | 52 | 36 | ||||
Manufacturing | 130 | 128 | ||||
Other | 5 | 2 | ||||
Total Revenues | 380 | 358 | ||||
Costs and Expenses: | ||||||
Cost of Goods Sold: | ||||||
Timber | 113 | 99 | ||||
Real Estate | 25 | 16 | ||||
Manufacturing | 117 | 117 | ||||
Other | — | — | ||||
Total Cost of Goods Sold | 255 | 232 | ||||
Selling, General and Administrative | 26 | 24 | ||||
Total Costs and Expenses | 281 | 256 | ||||
Operating Income | 99 | 102 | ||||
Interest Expense, net | 34 | 27 | ||||
Income before Income Taxes | 65 | 75 | ||||
Provision for Income Taxes | 3 | 6 | ||||
Net Income | $ | 62 | $ | 69 | ||
Net Income per Share | ||||||
- Basic | $ | 0.34 | $ | 0.37 | ||
- Diluted | $ | 0.34 | $ | 0.37 | ||
Weighted Average Number of Shares Outstanding | ||||||
- Basic | 182.3 | 184.0 | ||||
- Diluted | 182.8 | 184.6 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2006 | December 31, 2005 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 396 | $ | 369 | ||||
Restricted Advance from Customer | 20 | 23 | ||||||
Accounts Receivable | 56 | 44 | ||||||
Like-Kind Exchange Funds Held in Escrow | 10 | 30 | ||||||
Inventories | 72 | 75 | ||||||
Deferred Tax Asset | 17 | 17 | ||||||
Real Estate Development Properties | 25 | 26 | ||||||
Assets Held for Sale | 65 | 43 | ||||||
Other Current Assets | 17 | 16 | ||||||
678 | 643 | |||||||
Timber and Timberlands - Net | 3,845 | 3,887 | ||||||
Property, Plant and Equipment - Net | 226 | 234 | ||||||
Investment in Grantor Trusts | 25 | 26 | ||||||
Other Assets | 23 | 22 | ||||||
Total Assets | $ | 4,797 | $ | 4,812 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 231 | $ | 161 | ||||
Short-Term Debt | — | 50 | ||||||
Accounts Payable | 40 | 45 | ||||||
Interest Payable | 31 | 30 | ||||||
Wages Payable | 16 | 25 | ||||||
Taxes Payable | 21 | 18 | ||||||
Deferred Revenue | 41 | 35 | ||||||
Other Current Liabilities | 16 | 11 | ||||||
396 | 375 | |||||||
Long-Term Debt | 1,643 | 1,524 | ||||||
Lines of Credit | 516 | 495 | ||||||
Deferred Tax Liability | 39 | 39 | ||||||
Other Liabilities | 47 | 54 | ||||||
Total Liabilities | 2,641 | 2,487 | ||||||
Commitments and Contingencies | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred Stock, $0.01 par value, authorized shares - 75.0, outstanding - none | — | — | ||||||
Common Stock, $0.01 par value, authorized shares - 300.6, issued (including Treasury Stock) - 186.4 at June 30, 2006, and 186.2 at December 31, 2005 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,184 | 2,179 | ||||||
Retained Earnings | 195 | 186 | ||||||
Treasury Stock, at cost, Common Shares - 7.2 at June 30, 2006, and 2.0 at December 31, 2005 | (228 | ) | (44 | ) | ||||
Other Equity | 3 | 2 | ||||||
Total Stockholders’ Equity | 2,156 | 2,325 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,797 | $ | 4,812 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended | ||||||||
June 30, 2006 | June 30, 2005 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 156 | $ | 191 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 60 | 55 | ||||||
Basis of Real Estate Sold | 23 | 28 | ||||||
Deferred Income Taxes | — | (1 | ) | |||||
Gain on Sales of Properties and Other Assets | — | (21 | ) | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | 20 | (46 | ) | |||||
Other Working Capital Changes | (6 | ) | (8 | ) | ||||
Other | (1 | ) | — | |||||
Net Cash Provided By Operating Activities | 252 | 198 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (36 | ) | (28 | ) | ||||
Timberlands Acquired | (17 | ) | (50 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 1 | 5 | ||||||
Other | (3 | ) | — | |||||
Net Cash Used In Investing Activities | (55 | ) | (73 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (147 | ) | (140 | ) | ||||
Borrowings on Line of Credit | 1,474 | 1,140 | ||||||
Repayments on Line of Credit | (1,453 | ) | (1,093 | ) | ||||
Proceeds from Issuance of Short-Term Debt | — | 50 | ||||||
Repayment of Short-Term Debt | (50 | ) | — | |||||
Proceeds from Issuance of Long-Term Debt | 216 | — | ||||||
Principal Payments and Retirement of Long-Term Debt | (29 | ) | (49 | ) | ||||
Proceeds from Stock Option Exercises | 3 | 4 | ||||||
Acquisition of Treasury Stock | (184 | ) | — | |||||
Net Cash Used In Financing Activities | (170 | ) | (88 | ) | ||||
Increase In Cash and Cash Equivalents | 27 | 37 | ||||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 369 | 347 | ||||||
End of Period | $ | 396 | $ | 384 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
June 30, 2006 | June 30, 2005 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 62 | $ | 69 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 29 | 28 | ||||||
Basis of Real Estate Sold | 13 | 10 | ||||||
Deferred Income Taxes | (1 | ) | — | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (9 | ) | (15 | ) | ||||
Other Working Capital Changes | 14 | 25 | ||||||
Other | 4 | 2 | ||||||
Net Cash Provided By Operating Activities | 112 | 119 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (19 | ) | (18 | ) | ||||
Timberlands Acquired | (17 | ) | (50 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 1 | 4 | ||||||
Other | (3 | ) | — | |||||
Net Cash Used In Investing Activities | (38 | ) | (64 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (73 | ) | (70 | ) | ||||
Borrowings on Line of Credit | 811 | 611 | ||||||
Repayments on Line of Credit | (790 | ) | (564 | ) | ||||
Proceeds from Issuance of Short-Term Debt | — | 50 | ||||||
Repayment of Short-Term Debt | (50 | ) | — | |||||
Proceeds from Issuance of Long-Term Debt | 216 | — | ||||||
Principal Payments and Retirement of Long-Term Debt | (28 | ) | (48 | ) | ||||
Proceeds from Stock Option Exercises | 1 | 1 | ||||||
Acquisition of Treasury Stock | (184 | ) | — | |||||
Net Cash Used In Financing Activities | (97 | ) | (20 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | (23 | ) | 35 | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 419 | 349 | ||||||
End of Period | $ | 396 | $ | 384 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Six Months 2006 | Six Months 2005 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 202 | $ | 159 | ||||
Southern Resources | 243 | 266 | ||||||
Real Estate | 113 | 104 | ||||||
Manufacturing | 264 | 257 | ||||||
Other | 10 | 5 | ||||||
Eliminations | (38 | ) | (33 | ) | ||||
Total Revenues | $ | 794 | $ | 758 | ||||
Operating Costs and Expenses: | ||||||||
Northern Resources | $ | 146 | $ | 111 | ||||
Southern Resources | 145 | 141 | ||||||
Real Estate | 42 | 42 | ||||||
Manufacturing | 246 | 241 | ||||||
Other | 1 | 1 | ||||||
Other Costs and Eliminations | (12 | ) | (14 | ) | ||||
Total Costs and Expenses | $ | 568 | $ | 522 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 56 | $ | 48 | ||||
Southern Resources | 98 | 125 | ||||||
Real Estate | 71 | 62 | ||||||
Manufacturing | 18 | 16 | ||||||
Other | 9 | 4 | ||||||
Other Costs and Eliminations | (26 | ) | (19 | ) | ||||
Total Operating Income | $ | 226 | $ | 236 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Second Quarter 2006 | Second Quarter 2005 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 87 | $ | 71 | ||||
Southern Resources | 121 | 135 | ||||||
Real Estate | 52 | 36 | ||||||
Manufacturing | 130 | 128 | ||||||
Other | 5 | 2 | ||||||
Eliminations | (15 | ) | (14 | ) | ||||
Total Revenues | $ | 380 | $ | 358 | ||||
Operating Costs and Expenses: | ||||||||
Northern Resources | $ | 66 | $ | 52 | ||||
Southern Resources | 73 | 73 | ||||||
Real Estate | 25 | 17 | ||||||
Manufacturing | 120 | 120 | ||||||
Other | 1 | — | ||||||
Other Costs and Eliminations | (4 | ) | (6 | ) | ||||
Total Costs and Expenses | $ | 281 | $ | 256 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 21 | $ | 19 | ||||
Southern Resources | 48 | 62 | ||||||
Real Estate | 27 | 19 | ||||||
Manufacturing | 10 | 8 | ||||||
Other | 4 | 2 | ||||||
Other Costs and Eliminations | (11 | ) | (8 | ) | ||||
Total Operating Income | $ | 99 | $ | 102 | ||||
Selected Operating Statistics
(Unaudited)
2006 | 2005 | |||||||||||||||||||||||||
1st Qtr | 2nd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||
Sales Realization | Units | |||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 35 | $ | 36 | $ | 36 | $ | 38 | $ | 38 | $ | 36 | $ | 37 | $ | 37 | |||||||||
Pulpwood | $/Ton Stumpage | $ | 8 | $ | 8 | $ | 8 | $ | 9 | $ | 9 | $ | 8 | $ | 7 | $ | 8 | |||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 77 | $ | 78 | $ | 78 | $ | 76 | $ | 77 | $ | 79 | $ | 77 | $ | 77 | |||||||||
Pulpwood | $/Ton Delivered | $ | 37 | $ | 37 | $ | 37 | $ | 37 | $ | 37 | $ | 39 | $ | 38 | $ | 38 | |||||||||
Lumber (1) | $/MBF | $ | 467 | $ | 456 | $ | 462 | $ | 483 | $ | 459 | $ | 440 | $ | 435 | $ | 454 | |||||||||
Plywood (1) | $/MSF | $ | 452 | $ | 455 | $ | 453 | $ | 419 | $ | 422 | $ | 418 | $ | 444 | $ | 425 | |||||||||
Fiberboard (1) | $/MSF | $ | 445 | $ | 480 | $ | 462 | $ | 449 | $ | 458 | $ | 441 | $ | 434 | $ | 446 | |||||||||
Sales Volume | ||||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,749 | 1,685 | 3,434 | 1,899 | 1,899 | 1,553 | 1,624 | 6,975 | |||||||||||||||||
Pulpwood | 1,000 Tons | 1,642 | 1,651 | 3,293 | 1,592 | 1,825 | 1,690 | 1,696 | 6,803 | |||||||||||||||||
Total Harvest | 3,391 | 3,336 | 6,727 | 3,491 | 3,724 | 3,243 | 3,320 | 13,778 | ||||||||||||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,151 | 877 | 2,028 | 906 | 774 | 898 | 1,011 | 3,589 | |||||||||||||||||
Pulpwood | 1,000 Tons | 766 | 517 | 1,283 | 499 | 319 | 467 | 529 | 1,814 | |||||||||||||||||
Total Harvest | 1,917 | 1,394 | 3,311 | 1,405 | 1,093 | 1,365 | 1,540 | 5,403 | ||||||||||||||||||
Lumber | MBF | 99,367 | 97,059 | 196,426 | 102,857 | 105,028 | 103,099 | 96,003 | 406,987 | |||||||||||||||||
Plywood | MSF | 75,769 | 71,269 | 147,038 | 75,483 | 75,235 | 76,692 | 71,115 | 298,525 | |||||||||||||||||
Fiberboard | MSF | 69,076 | 70,411 | 139,487 | 61,806 | 61,843 | 62,231 | 62,407 | 248,287 |
Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)
2006 | 2005 | ||||||||||||||||||||||||
1st Qtr | 2nd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||||||||
Acres Sold | |||||||||||||||||||||||||
Small Non-strategic | 15,050 | 11,765 | 26,815 | 18,525 | 13,315 | 85,610 | 30,750 | 148,200 | |||||||||||||||||
Large Non-strategic | — | — | — | — | 625 | * | — | 39,375 | 40,000 | ||||||||||||||||
Conservation | 1,815 | 2,185 | 4,000 | 8,650 | 450 | 11,600 | 1,900 | 22,600 | |||||||||||||||||
HBU/Recreation | 3,860 | 7,225 | 11,085 | 9,100 | 4,510 | 5,620 | 1,770 | 21,000 | |||||||||||||||||
Development Properties | 1,075 | 645 | 1,720 | 20 | 140 | 20 | 20 | 200 | |||||||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||
21,800 | 21,820 | 43,620 | 36,295 | 19,040 | 102,850 | 73,815 | 232,000 | ||||||||||||||||||
Price per Acre | |||||||||||||||||||||||||
Small Non-strategic | $ | 1,465 | $ | 1,270 | $ | 1,380 | $ | 1,225 | $ | 1,425 | $ | 1,050 | $ | 905 | $ | 1,075 | |||||||||
Large Non-strategic | — | — | — | — | $ | 1,820 | — | $ | 763 | $ | 780 | ||||||||||||||
Conservation | $ | 1,475 | $ | 1,500 | $ | 1,490 | $ | 1,550 | $ | 3,225 | $ | 760 | $ | 1,225 | $ | 1,151 | |||||||||
HBU/Recreation | $ | 4,960 | $ | 4,140 | $ | 4,425 | $ | 2,600 | $ | 2,550 | $ | 3,030 | $ | 3,905 | $ | 2,814 | |||||||||
Development Properties | $ | 8,595 | $ | 5,295 | $ | 7,355 | $ | 23,500 | $ | 13,785 | $ | 14,300 | $ | 10,700 | $ | 14,500 | |||||||||
Conservation Easements | $ | 1,300 | — | $ | 1,300 | $ | 427 | — | — | $ | 490 | $ | 450 | ||||||||||||
Revenue, ($ millions) | |||||||||||||||||||||||||
Small Non-strategic | $ | 22 | $ | 15 | $ | 37 | $ | 23 | $ | 19 | $ | 90 | $ | 28 | $ | 160 | |||||||||
Large Non-strategic | — | — | — | — | $ | 1 | — | $ | 30 | $ | 31 | ||||||||||||||
Conservation | $ | 3 | $ | 3 | $ | 6 | $ | 13 | $ | 2 | $ | 9 | $ | 2 | $ | 26 | |||||||||
HBU/Recreation | $ | 19 | $ | 30 | $ | 49 | $ | 24 | $ | 11 | $ | 17 | $ | 7 | $ | 59 | |||||||||
Development Properties | $ | 9 | $ | 4 | $ | 13 | — | $ | 3 | — | — | $ | 3 | ||||||||||||
Conservation Easements | $ | 8 | — | $ | 8 | $ | 8 | — | — | $ | 5 | $ | 13 | ||||||||||||
$ | 61 | $ | 52 | $ | 113 | $ | 68 | $ | 36 | $ | 116 | $ | 72 | $ | 292 | ||||||||||
Basis of Real Estate Sold | $ | 10 | $ | 13 | $ | 23 | $ | 18 | $ | 10 | $ | 54 | $ | 42 | $ | 124 | |||||||||
($ millions) |
* | Represents the completion of the sale of our Pennsylvania properties. Initial sale was in 2004. |