Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
Quarter Ended | |||||||
March 31, 2007 | March 31, 2006 | ||||||
(In Millions, Except Per Share Amounts) | |||||||
Revenues: | |||||||
Timber | $ | 209 | $ | 214 | |||
Real Estate | 39 | 61 | |||||
Manufacturing | 115 | 134 | |||||
Other | 6 | 5 | |||||
Total Revenues | 369 | 414 | |||||
Costs and Expenses: | |||||||
Cost of Goods Sold: | |||||||
Timber | 134 | 121 | |||||
Real Estate | 17 | 16 | |||||
Manufacturing | 113 | 123 | |||||
Other | 1 | 1 | |||||
Total Cost of Goods Sold | 265 | 261 | |||||
Selling, General and Administrative | 29 | 28 | |||||
Total Costs and Expenses | 294 | 289 | |||||
Other Operating Income (Expense), net | 2 | 2 | |||||
Operating Income | 77 | 127 | |||||
Interest Expense, net | 36 | 31 | |||||
Income before Income Taxes | 41 | 96 | |||||
Provision (Benefit) for Income Taxes | (4 | ) | 4 | ||||
Income From Continuing Operations | 45 | 92 | |||||
Cumulative Effect of Accounting Change, net of tax | — | 2 | |||||
Net Income | $ | 45 | $ | 94 | |||
Income From Continuing Operations per Share | |||||||
- Basic | $ | 0.26 | $ | 0.50 | |||
- Diluted | $ | 0.25 | $ | 0.50 | |||
Net Income per Share | |||||||
- Basic | $ | 0.26 | $ | 0.51 | |||
- Diluted | $ | 0.25 | $ | 0.51 | |||
Weighted Average Number of Shares Outstanding | |||||||
- Basic | 177.1 | 184.2 | |||||
- Diluted | 177.5 | 184.7 |
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
March 31, 2007 | December 31, 2006 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 210 | $ | 273 | ||||
Restricted Advance from Customer | — | 4 | ||||||
Accounts Receivable | 44 | 40 | ||||||
Like-Kind Exchange Funds Held in Escrow | 10 | — | ||||||
Inventories | 86 | 83 | ||||||
Deferred Tax Asset | 7 | 7 | ||||||
Real Estate Development Properties | 5 | 3 | ||||||
Assets Held for Sale | 84 | 82 | ||||||
Other Current Assets | 20 | 21 | ||||||
466 | 513 | |||||||
Timber and Timberlands - Net | 3,850 | 3,876 | ||||||
Property, Plant and Equipment - Net | 210 | 216 | ||||||
Investment in Grantor Trusts | 25 | 28 | ||||||
Other Assets | 29 | 28 | ||||||
Total Assets | $ | 4,580 | $ | 4,661 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 100 | $ | 125 | ||||
Accounts Payable | 36 | 42 | ||||||
Interest Payable | 40 | 30 | ||||||
Wages Payable | 12 | 27 | ||||||
Taxes Payable | 16 | 24 | ||||||
Deferred Revenue | 8 | 17 | ||||||
Other Current Liabilities | 15 | 16 | ||||||
227 | 281 | |||||||
Long-Term Debt | 1,570 | 1,617 | ||||||
Lines of Credit | 653 | 581 | ||||||
Deferred Tax Liability | 22 | 25 | ||||||
Other Liabilities | 64 | 68 | ||||||
Total Liabilities | 2,536 | 2,572 | ||||||
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) - 176.8 at March 31, 2007, and 177.1 at December 31, 2006 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,197 | 2,190 | ||||||
Retained Earnings | 184 | 214 | ||||||
Treasury Stock, at cost, Common Shares - 10.1 at March 31, 2007, and 9.5 at December 31, 2006 | (329 | ) | (307 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (10 | ) | (10 | ) | ||||
Total Stockholders’ Equity | 2,044 | 2,089 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,580 | $ | 4,661 | ||||
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
Quarter Ended | ||||||||
March 31, 2007 | March 31, 2006 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 45 | $ | 94 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 33 | 31 | ||||||
Basis of Real Estate Sold | 9 | 10 | ||||||
Deferred Income Taxes | (3 | ) | 1 | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (10 | ) | 29 | |||||
Other Working Capital Changes | (31 | ) | (20 | ) | ||||
Expenditures for Real Estate Development | (2 | ) | — | |||||
Other | (3 | ) | (5 | ) | ||||
Net Cash Provided By Operating Activities | 38 | 140 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (11 | ) | (17 | ) | ||||
Other | 2 | — | ||||||
Net Cash Used In Investing Activities | (9 | ) | (17 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (75 | ) | (74 | ) | ||||
Borrowings on Line of Credit | 649 | 663 | ||||||
Repayments on Line of Credit | (577 | ) | (663 | ) | ||||
Principal Payments and Retirement of Long-Term Debt | (72 | ) | — | |||||
Proceeds from Stock Option Exercises | 5 | 2 | ||||||
Acquisition of Treasury Stock | (22 | ) | — | |||||
Other | — | (1 | ) | |||||
Net Cash Used In Financing Activities | (92 | ) | (73 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | (63 | ) | 50 | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 273 | 369 | ||||||
End of Period | $ | 210 | $ | 419 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
First Quarter 2007 | First Quarter 2006 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 99 | $ | 115 | ||||
Southern Resources | 127 | 122 | ||||||
Real Estate | 39 | 61 | ||||||
Manufacturing | 115 | 134 | ||||||
Other | 6 | 5 | ||||||
Eliminations | (17 | ) | (23 | ) | ||||
Total Revenues | $ | 369 | $ | 414 | ||||
Operating Costs, Expenses and Other: | ||||||||
Northern Resources | $ | 80 | $ | 80 | ||||
Southern Resources | 81 | 72 | ||||||
Real Estate | 18 | 17 | ||||||
Manufacturing | 116 | 126 | ||||||
Other | 1 | — | ||||||
Other Costs and Eliminations | (4 | ) | (8 | ) | ||||
Total Costs, Expenses and Other | $ | 292 | $ | 287 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 19 | $ | 35 | ||||
Southern Resources | 46 | 50 | ||||||
Real Estate | 21 | 44 | ||||||
Manufacturing | (1 | ) | 8 | |||||
Other | 5 | 5 | ||||||
Other Costs and Eliminations | (13 | ) | (15 | ) | ||||
Total Operating Income | $ | 77 | $ | 127 | ||||
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
2007 | 2006 | |||||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Sales Realization | Units | |||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 32 | $ | 35 | $ | 36 | $ | 33 | $ | 33 | $ | 34 | |||||||
Pulpwood | $/Ton Stumpage | $ | 9 | $ | 8 | $ | 8 | $ | 7 | $ | 8 | $ | 8 | |||||||
Northern Resources | ||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 71 | $ | 77 | $ | 78 | $ | 81 | $ | 74 | $ | 77 | |||||||
Pulpwood | $/Ton Delivered | $ | 37 | $ | 37 | $ | 37 | $ | 38 | $ | 37 | $ | 37 | |||||||
Lumber (1) | $/MBF | $ | 390 | $ | 467 | $ | 456 | $ | 410 | $ | 385 | $ | 431 | |||||||
Plywood (1) | $/MSF | $ | 398 | $ | 452 | $ | 455 | $ | 431 | $ | 407 | $ | 437 | |||||||
Fiberboard (1) | $/MSF | $ | 490 | $ | 445 | $ | 480 | $ | 518 | $ | 506 | $ | 486 | |||||||
Sales Volume | ||||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 1,681 | 1,749 | 1,685 | 1,548 | 1,629 | 6,611 | |||||||||||||
Pulpwood | 1,000 Tons | 1,954 | 1,642 | 1,651 | 1,917 | 2,319 | 7,529 | |||||||||||||
Total Harvest | 3,635 | 3,391 | 3,336 | 3,465 | 3,948 | 14,140 | ||||||||||||||
Northern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 960 | 1,151 | 877 | 954 | 1,093 | 4,075 | |||||||||||||
Pulpwood | 1,000 Tons | 819 | 766 | 517 | 734 | 725 | 2,742 | |||||||||||||
Total Harvest | 1,779 | 1,917 | 1,394 | 1,688 | 1,818 | 6,817 | ||||||||||||||
Lumber | MBF | 95,265 | 99,367 | 97,059 | 93,925 | 86,880 | 377,231 | |||||||||||||
Plywood | MSF | 72,582 | 75,769 | 71,269 | 70,109 | 60,845 | 277,992 | |||||||||||||
Fiberboard | MSF | 64,872 | 69,076 | 70,411 | 63,698 | 51,502 | 254,687 |
(1) | Represents prices at mill level. |
Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)
2007 | 2006 | |||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||
Acres Sold | ||||||||||||||||||
Small Non-strategic | 8,645 | 15,050 | 11,765 | 19,040 | 14,240 | 60,095 | ||||||||||||
Large Non-strategic | — | — | — | — | — | — | ||||||||||||
Conservation | 4,210 | 2,580 | 2,185 | 4,600 | 15,020 | 24,385 | ||||||||||||
HBU/Recreation | 3,750 | 3,095 | 7,225 | 7,875 | 4,575 | 22,770 | ||||||||||||
Development Properties | 45 | 1,075 | 645 | 1,970 | 635 | 4,325 | ||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||
16,650 | 21,800 | 21,820 | 33,485 | 34,470 | 111,575 | |||||||||||||
Price per Acre | ||||||||||||||||||
Small Non-strategic | $ | 1,445 | $ | 1,465 | $ | 1,270 | $ | 1,765 | $ | 1,730 | $ | 1,585 | ||||||
Large Non-strategic | — | — | — | — | — | — | ||||||||||||
Conservation | $ | 1,740 | $ | 2,085 | $ | 1,500 | $ | 3,865 | $ | 990 | $ | 1,695 | ||||||
HBU/Recreation | $ | 4,300 | $ | 5,310 | $ | 4,140 | $ | 3,775 | $ | 3,620 | $ | 4,070 | ||||||
Development Properties | $ | 22,045 | $ | 8,595 | $ | 5,295 | $ | 21,950 | $ | 14,995 | $ | 15,125 | ||||||
Conservation Easements | — | $ | 1,300 | — | $ | 605 | — | $ | 885 | |||||||||
Revenue, ($ millions) | ||||||||||||||||||
Small Non-strategic | $ | 13 | $ | 22 | $ | 15 | $ | 33 | $ | 26 | $ | 96 | ||||||
Large Non-strategic | — | — | — | — | — | — | ||||||||||||
Conservation | $ | 7 | $ | 5 | $ | 3 | $ | 18 | $ | 15 | $ | 41 | ||||||
HBU/Recreation | $ | 16 | $ | 17 | $ | 30 | $ | 30 | $ | 16 | $ | 93 | ||||||
Development Properties | $ | 1 | $ | 9 | $ | 4 | $ | 43 | $ | 9 | $ | 65 | ||||||
Conservation Easements | — | $ | 8 | — | $ | 5 | — | $ | 13 | |||||||||
$ | 37 | $ | 61 | $ | 52 | $ | 129 | $ | 66 | $ | 308 | |||||||
Proceeds from Joint Ventures (1) | $ | 2 | — | — | — | — | — | |||||||||||
Basis of Real Estate Sold | $ | 9 | $ | 10 | $ | 13 | $ | 43 | $ | 19 | $ | 85 | ||||||
($ millions) |
(1) | Not reflected in the Land Sale Statistics (Acres Sold, Price per Acre and Revenue) |