Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Year Ended | ||||||
December 31, 2006 | December 31, 2005 | |||||
(In Millions, Except Per Share Amounts) | ||||||
Revenues: | ||||||
Timber | $ | 807 | $ | 764 | ||
Real Estate | 308 | 292 | ||||
Manufacturing | 493 | 504 | ||||
Other | 19 | 16 | ||||
Total Revenues | 1,627 | 1,576 | ||||
Costs and Expenses: | ||||||
Cost of Goods Sold: | ||||||
Timber | 487 | 418 | ||||
Real Estate | 126 | 152 | ||||
Manufacturing | 455 | 463 | ||||
Other | 3 | 3 | ||||
Total Cost of Goods Sold | 1,071 | 1,036 | ||||
Selling, General and Administrative | 113 | 97 | ||||
Total Costs and Expenses | 1,184 | 1,133 | ||||
Gain from Canadian Lumber Settlement | 14 | — | ||||
Other Operating Income (Expense), net | 4 | 5 | ||||
Operating Income | 461 | 448 | ||||
Interest Expense, net | 133 | 109 | ||||
Income before Income Taxes | 328 | 339 | ||||
Provision for Income Taxes | 13 | 8 | ||||
Income from Continuing Operations | 315 | 331 | ||||
Gain on Sale of Properties, net of tax | — | 23 | ||||
Income Before Cumulative Effect of Accounting Change | 315 | 354 | ||||
Cumulative Effect of Accounting Change, net of tax | 2 | — | ||||
Net Income | $ | 317 | $ | 354 | ||
Income from Continuing Operations per Share | ||||||
- Basic | $ | 1.75 | $ | 1.80 | ||
- Diluted | $ | 1.74 | $ | 1.79 | ||
Net Income per Share | ||||||
- Basic | $ | 1.76 | $ | 1.92 | ||
- Diluted | $ | 1.75 | $ | 1.92 | ||
Weighted Average Number of Shares Outstanding | ||||||
- Basic | 180.5 | 184.0 | ||||
- Diluted | 180.9 | 184.6 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | |||||||
December 31, 2006 | December 31, 2005 | ||||||
(In Millions, Except Per Share Amounts) | |||||||
Revenues: | |||||||
Timber | $ | 204 | $ | 192 | |||
Real Estate | 66 | 72 | |||||
Manufacturing | 105 | 121 | |||||
Other | 4 | 6 | |||||
Total Revenues | 379 | 391 | |||||
Costs and Expenses: | |||||||
Cost of Goods Sold: | |||||||
Timber | 126 | 110 | |||||
Real Estate | 30 | 47 | |||||
Manufacturing | 102 | 114 | |||||
Other | 1 | 1 | |||||
Total Cost of Goods Sold | 259 | 272 | |||||
Selling, General and Administrative | 35 | 25 | |||||
Total Costs and Expenses | 294 | 297 | |||||
Gain from Canadian Lumber Settlement | 14 | — | |||||
Other Operating Income (Expense), net | 2 | 1 | |||||
Operating Income | 101 | 95 | |||||
Interest Expense, net | 35 | 29 | |||||
Income before Income Taxes | 66 | 66 | |||||
Provision (Benefit) for Income Taxes | (3 | ) | 2 | ||||
Income from Continuing Operations | 69 | 64 | |||||
Gain on Sale of Properties, net of tax | — | 3 | |||||
Net Income | $ | 69 | $ | 67 | |||
Income from Continuing Operations per Share | |||||||
- Basic | $ | 0.39 | $ | 0.34 | |||
- Diluted | $ | 0.39 | $ | 0.34 | |||
Net Income per Share | |||||||
- Basic | $ | 0.39 | $ | 0.36 | |||
- Diluted | $ | 0.39 | $ | 0.36 | |||
Weighted Average Number of Shares Outstanding | |||||||
- Basic | 177.0 | 184.0 | |||||
- Diluted | 177.4 | 184.6 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, 2006 | December 31, 2005 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 273 | $ | 369 | ||||
Restricted Advance from Customer | 4 | 23 | ||||||
Accounts Receivable | 40 | 44 | ||||||
Like-Kind Exchange Funds Held in Escrow | — | 30 | ||||||
Inventories | 83 | 75 | ||||||
Deferred Tax Asset | 7 | 17 | ||||||
Real Estate Development Properties | 3 | 26 | ||||||
Assets Held for Sale | 82 | 43 | ||||||
Other Current Assets | 21 | 16 | ||||||
513 | 643 | |||||||
Timber and Timberlands - Net | 3,876 | 3,887 | ||||||
Property, Plant and Equipment - Net | 216 | 234 | ||||||
Investment in Grantor Trusts | 28 | 26 | ||||||
Other Assets | 28 | 22 | ||||||
Total Assets | $ | 4,661 | $ | 4,812 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 125 | $ | 161 | ||||
Short-Term Debt | — | 50 | ||||||
Accounts Payable | 42 | 45 | ||||||
Interest Payable | 30 | 30 | ||||||
Wages Payable | 27 | 25 | ||||||
Taxes Payable | 24 | 18 | ||||||
Deferred Revenue | 17 | 35 | ||||||
Other Current Liabilities | 16 | 11 | ||||||
281 | 375 | |||||||
Long-Term Debt | 1,617 | 1,524 | ||||||
Lines of Credit | 581 | 495 | ||||||
Deferred Tax Liability | 25 | 39 | ||||||
Other Liabilities | 68 | 54 | ||||||
Total Liabilities | 2,572 | 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, outstanding (net of Treasury Stock) - 177.1 at December 31, 2006, and 184.2 at December 31, 2005 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,190 | 2,179 | ||||||
Retained Earnings | 214 | 186 | ||||||
Treasury Stock, at cost, Common Shares - 9.5 at December 31, 2006, and 2.0 at | (307 | ) | (44 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (10 | ) | 2 | |||||
Total Stockholders’ Equity | 2,089 | 2,325 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,661 | $ | 4,812 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Year Ended | ||||||||
December 31, 2006 | December 31, 2005 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 317 | $ | 354 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 128 | 113 | ||||||
Basis of Real Estate Sold | 85 | 124 | ||||||
Deferred Income Taxes | 1 | (13 | ) | |||||
Gain on Sales of Properties and Other Assets | (1 | ) | (24 | ) | ||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | 30 | (21 | ) | |||||
Other Working Capital Changes | (1 | ) | (15 | ) | ||||
Other | (3 | ) | (2 | ) | ||||
Net Cash Provided By Operating Activities | 556 | 516 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (86 | ) | (89 | ) | ||||
Timberlands Acquired | (111 | ) | (501 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 2 | 29 | ||||||
Other | (4 | ) | (2 | ) | ||||
Net Cash Used In Investing Activities | (199 | ) | (563 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (290 | ) | (279 | ) | ||||
Borrowings on Lines of Credit | 3,483 | 2,468 | ||||||
Repayments on Lines of Credit | (3,397 | ) | (2,421 | ) | ||||
Proceeds from Issuance of Short-Term Debt | — | 50 | ||||||
Repayment of Short-Term Debt | �� | (50 | ) | — | ||||
Proceeds from Issuance of Long-Term Debt | 216 | 297 | ||||||
Principal Payments and Retirement of Long-Term Debt | (159 | ) | (53 | ) | ||||
Proceeds from Stock Option Exercises | 7 | 9 | ||||||
Acquisition of Treasury Stock | (263 | ) | (1 | ) | ||||
Other | — | (1 | ) | |||||
Net Cash Provided By (Used In) Financing Activities | (453 | ) | 69 | |||||
Increase (Decrease) In Cash and Cash Equivalents | (96 | ) | 22 | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Year | 369 | 347 | ||||||
End of Year | $ | 273 | $ | 369 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
December 31, 2006 | December 31, 2005 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 69 | $ | 67 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 34 | 28 | ||||||
Basis of Real Estate Sold | 19 | 42 | ||||||
Deferred Income Taxes | (7 | ) | (8 | ) | ||||
Gain on Sale of Properties | (1 | ) | (2 | ) | ||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | 40 | 47 | ||||||
Other Working Capital Changes | (19 | ) | (17 | ) | ||||
Other | 1 | (3 | ) | |||||
Net Cash Provided By Operating Activities | 136 | 154 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (26 | ) | (36 | ) | ||||
Timberlands Acquired | (89 | ) | (383 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 1 | 2 | ||||||
Other | — | (1 | ) | |||||
Net Cash Used In Investing Activities | (114 | ) | (418 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (71 | ) | (70 | ) | ||||
Borrowings on Lines of Credit | 1,316 | 662 | ||||||
Repayments on Lines of Credit | (1,253 | ) | (668 | ) | ||||
Proceeds from Issuance of Long-Term Debt | — | 297 | ||||||
Principal Payments and Retirement of Long-Term Debt | (130 | ) | (2 | ) | ||||
Proceeds from Stock Option Exercises | 1 | 5 | ||||||
Acquisition of Treasury Stock | (1 | ) | — | |||||
Net Cash Provided By (Used In) Financing Activities | (138 | ) | 224 | |||||
Decrease In Cash and Cash Equivalents | (116 | ) | (40 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 389 | 409 | ||||||
End of Period | $ | 273 | $ | 369 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Twelve Months | Twelve Months 2005 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 413 | $ | 347 | ||||
Southern Resources | 479 | 501 | ||||||
Real Estate | 308 | 292 | ||||||
Manufacturing | 493 | 504 | ||||||
Other | 19 | 16 | ||||||
Eliminations | (85 | ) | (84 | ) | ||||
Total Revenues | $ | 1,627 | $ | 1,576 | ||||
Operating Costs, Expenses and Other: | ||||||||
Northern Resources | $ | 308 | $ | 248 | ||||
Southern Resources | 301 | 284 | ||||||
Real Estate | 130 | 156 | ||||||
Manufacturing | 471 | 475 | ||||||
Other | 3 | 3 | ||||||
Other Costs and Eliminations | (33 | ) | (38 | ) | ||||
Total Costs, Expenses and Other | $ | 1,180 | $ | 1,128 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 105 | $ | 99 | ||||
Southern Resources | 178 | 217 | ||||||
Real Estate | 178 | 136 | ||||||
Manufacturing | 22 | 29 | ||||||
Other | 16 | 13 | ||||||
Other Costs and Eliminations | (52 | ) | (46 | ) | ||||
Gain from Canadian Lumber Settlement | 14 | — | ||||||
Total Operating Income | $ | 461 | $ | 448 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Fourth Quarter 2006 | Fourth Quarter 2005 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 105 | $ | 98 | ||||
Southern Resources | 121 | 119 | ||||||
Real Estate | 66 | 72 | ||||||
Manufacturing | 105 | 121 | ||||||
Other | 4 | 6 | ||||||
Eliminations | (22 | ) | (25 | ) | ||||
Total Revenues | $ | 379 | $ | 391 | ||||
Operating Costs, Expenses and Other: | ||||||||
Northern Resources | $ | 81 | $ | 72 | ||||
Southern Resources | 79 | 71 | ||||||
Real Estate | 31 | 48 | ||||||
Manufacturing | 107 | 117 | ||||||
Other | 1 | 1 | ||||||
Other Costs and Eliminations | (7 | ) | (13 | ) | ||||
Total Costs, Expenses and Other | $ | 292 | $ | 296 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 24 | $ | 26 | ||||
Southern Resources | 42 | 48 | ||||||
Real Estate | 35 | 24 | ||||||
Manufacturing | (2 | ) | 4 | |||||
Other | 3 | 5 | ||||||
Other Costs and Eliminations | (15 | ) | (12 | ) | ||||
Gain from Canadian Lumber Settlement | 14 | — | ||||||
Total Operating Income | $ | 101 | $ | 95 | ||||
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
��
2006 | 2005 | |||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||||
Sales Realization | Units | |||||||||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 35 | $ | 36 | $ | 33 | $ | 33 | $ | 34 | $ | 38 | $ | 38 | $ | 36 | $ | 37 | $ | 37 | |||||||||||
Pulpwood | $/Ton Stumpage | $ | 8 | $ | 8 | $ | 7 | $ | 8 | $ | 8 | $ | 9 | $ | 9 | $ | 8 | $ | 7 | $ | 8 | |||||||||||
Northern Resources | ||||||||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 77 | $ | 78 | $ | 81 | $ | 74 | $ | 77 | $ | 76 | $ | 77 | $ | 79 | $ | 77 | $ | 77 | |||||||||||
Pulpwood | $/Ton Delivered | $ | 37 | $ | 37 | $ | 38 | $ | 37 | $ | 37 | $ | 37 | $ | 37 | $ | 39 | $ | 38 | $ | 38 | |||||||||||
Lumber (1) | $/MBF | $ | 467 | $ | 456 | $ | 410 | $ | 385 | $ | 431 | $ | 483 | $ | 459 | $ | 440 | $ | 435 | $ | 454 | |||||||||||
Plywood (1) | $/MSF | $ | 452 | $ | 455 | $ | 431 | $ | 407 | $ | 437 | $ | 419 | $ | 422 | $ | 418 | $ | 444 | $ | 425 | |||||||||||
Fiberboard (1) | $/MSF | $ | 445 | $ | 480 | $ | 518 | $ | 506 | $ | 486 | $ | 449 | $ | 458 | $ | 441 | $ | 434 | $ | 446 | |||||||||||
Sales Volume | ||||||||||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,749 | 1,685 | 1,548 | 1,629 | 6,611 | 1,899 | 1,899 | 1,553 | 1,624 | 6,975 | |||||||||||||||||||||
Pulpwood | 1,000 Tons | 1,642 | 1,651 | 1,917 | 2,319 | 7,529 | 1,592 | 1,825 | 1,690 | 1,696 | 6,803 | |||||||||||||||||||||
Total Harvest | 3,391 | 3,336 | 3,465 | 3,948 | 14,140 | 3,491 | 3,724 | 3,243 | 3,320 | 13,778 | ||||||||||||||||||||||
Northern Resources | ||||||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,151 | 877 | 954 | 1,093 | 4,075 | 906 | 774 | 898 | 1,011 | 3,589 | |||||||||||||||||||||
Pulpwood | 1,000 Tons | 766 | 517 | 734 | 725 | 2,742 | 499 | 319 | 467 | 529 | 1,814 | |||||||||||||||||||||
Total Harvest | 1,917 | 1,394 | 1,688 | 1,818 | 6,817 | 1,405 | 1,093 | 1,365 | 1,540 | 5,403 | ||||||||||||||||||||||
Lumber | MBF | 99,367 | 97,059 | 93,925 | 86,880 | 377,231 | 102,857 | 105,028 | 103,099 | 96,003 | 406,987 | |||||||||||||||||||||
Plywood | MSF | 75,769 | 71,269 | 70,109 | 60,845 | 277,992 | 75,483 | 75,235 | 76,692 | 71,115 | 298,525 | |||||||||||||||||||||
Fiberboard | MSF | 69,076 | 70,411 | 63,698 | 51,502 | 254,687 | 61,806 | 61,843 | 62,231 | 62,407 | 248,287 |
(1) | Represents prices at mill level. |
Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)
2006 | 2005 | ||||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||||||||||||
Acres Sold | |||||||||||||||||||||||||||||||
Small Non-strategic | 15,050 | 11,765 | 19,040 | 14,240 | 60,095 | 18,525 | 13,315 | 85,610 | 30,750 | 148,200 | |||||||||||||||||||||
Large Non-strategic | — | — | — | — | — | — | 625 | * | — | 39,375 | 40,000 | ||||||||||||||||||||
Conservation | 2,580 | 2,185 | 4,600 | 15,020 | 24,385 | 8,650 | 450 | 11,600 | 1,900 | 22,600 | |||||||||||||||||||||
HBU/Recreation | 3,095 | 7,225 | 7,875 | 4,575 | 22,770 | 9,100 | 4,510 | 5,620 | 1,770 | 21,000 | |||||||||||||||||||||
Development Properties | 1,075 | 645 | 1,970 | 635 | 4,325 | 20 | 140 | 20 | 20 | 200 | |||||||||||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||||||
21,800 | 21,820 | 33,485 | 34,470 | 111,575 | 36,295 | �� | 19,040 | 102,850 | 73,815 | 232,000 | |||||||||||||||||||||
Price per Acre | |||||||||||||||||||||||||||||||
Small Non-strategic | $ | 1,465 | $ | 1,270 | $ | 1,765 | $ | 1,730 | $ | 1,585 | $ | 1,225 | $ | 1,425 | $ | 1,050 | $ | 905 | $ | 1,075 | |||||||||||
Large Non-strategic | — | — | — | — | — | — | $ | 1,820 | — | $ | 763 | $ | 780 | ||||||||||||||||||
Conservation | $ | 2,085 | $ | 1,500 | $ | 3,865 | $ | 990 | $ | 1,695 | $ | 1,550 | $ | 3,225 | $ | 760 | $ | 1,225 | $ | 1,151 | |||||||||||
HBU/Recreation | $ | 5,310 | $ | 4,140 | $ | 3,775 | $ | 3,620 | $ | 4,070 | $ | 2,600 | $ | 2,550 | $ | 3,030 | $ | 3,905 | $ | 2,814 | |||||||||||
Development Properties | $ | 8,595 | $ | 5,295 | $ | 21,950 | $ | 14,995 | $ | 15,125 | $ | 23,500 | $ | 13,785 | $ | 14,300 | $ | 10,700 | $ | 14,500 | |||||||||||
Conservation Easements | $ | 1,300 | — | $ | 605 | — | $ | 885 | $ | 427 | — | — | $ | 490 | $ | 450 | |||||||||||||||
Revenue, ($ millions) | |||||||||||||||||||||||||||||||
Small Non-strategic | $ | 22 | $ | 15 | $ | 33 | $ | 26 | $ | 96 | $ | 23 | $ | 19 | $ | 90 | $ | 28 | $ | 160 | |||||||||||
Large Non-strategic | — | — | — | — | — | — | $ | 1 | — | $ | 30 | $ | 31 | ||||||||||||||||||
Conservation | $ | 5 | $ | 3 | $ | 18 | $ | 15 | $ | 41 | $ | 13 | $ | 2 | $ | 9 | $ | 2 | $ | 26 | |||||||||||
HBU/Recreation | $ | 17 | $ | 30 | $ | 30 | $ | 16 | $ | 93 | $ | 24 | $ | 11 | $ | 17 | $ | 7 | $ | 59 | |||||||||||
Development Properties | $ | 9 | $ | 4 | $ | 43 | $ | 9 | $ | 65 | — | $ | 3 | — | — | $ | 3 | ||||||||||||||
Conservation Easements | $ | 8 | — | $ | 5 | — | $ | 13 | $ | 8 | — | — | $ | 5 | $ | 13 | |||||||||||||||
$ | 61 | $ | 52 | $ | 129 | $ | 66 | $ | 308 | $ | 68 | $ | 36 | $ | 116 | $ | 72 | $ | 292 | ||||||||||||
Basis of Real Estate Sold | $ | 10 | $ | 13 | $ | 43 | $ | 19 | $ | 85 | $ | 18 | $ | 10 | $ | 54 | $ | 42 | $ | 124 | |||||||||||
($ millions) |
* | Represents the completion of the sale of our Pennsylvania properties. Initial sale was in 2004. |