Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Six Months Ended | |||||||
June 30, 2007 | June 30, 2006 | ||||||
(In Millions, Except Per Share Amounts) | |||||||
Revenues: | |||||||
Timber | $ | 399 | $ | 407 | |||
Real Estate | 110 | 113 | |||||
Manufacturing | 244 | 264 | |||||
Other | 11 | 10 | |||||
Total Revenues | 764 | 794 | |||||
Costs and Expenses: | |||||||
Cost of Goods Sold: | |||||||
Timber | 258 | 234 | |||||
Real Estate | 40 | 41 | |||||
Manufacturing | 236 | 240 | |||||
Other | 1 | 1 | |||||
Total Cost of Goods Sold | 535 | 516 | |||||
Selling, General and Administrative | 59 | 54 | |||||
Total Costs and Expenses | 594 | 570 | |||||
Other Operating Income (Expense), net | 1 | 2 | |||||
Operating Income | 171 | 226 | |||||
Interest Expense, net | 71 | 65 | |||||
Income before Income Taxes | 100 | 161 | |||||
Provision (Benefit) for Income Taxes | (3 | ) | 7 | ||||
Income From Continuing Operations | 103 | 154 | |||||
Gain on Sale of Properties, net of tax | 2 | — | |||||
Income Before Cumulative Effect of Accounting Change | 105 | 154 | |||||
Cumulative Effect of Accounting Change, net of tax | — | 2 | |||||
Net Income | $ | 105 | $ | 156 | |||
Income From Continuing Operations per Share | |||||||
—Basic | $ | 0.58 | $ | 0.84 | |||
—Diluted | $ | 0.58 | $ | 0.84 | |||
Net Income per Share | |||||||
—Basic | $ | 0.59 | $ | 0.85 | |||
—Diluted | $ | 0.59 | $ | 0.85 | |||
Weighted Average Number of Shares Outstanding | |||||||
—Basic | 176.4 | 183.2 | |||||
—Diluted | 176.8 | 183.7 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | |||||||
June 30, 2007 | June 30, 2006 | ||||||
(In Millions, Except Per Share Amounts) | |||||||
Revenues: | |||||||
Timber | $ | 190 | $ | 193 | |||
Real Estate | 71 | 52 | |||||
Manufacturing | 129 | 130 | |||||
Other | 5 | 5 | |||||
Total Revenues | 395 | 380 | |||||
Costs and Expenses: | |||||||
Cost of Goods Sold: | |||||||
Timber | 124 | 113 | |||||
Real Estate | 23 | 25 | |||||
Manufacturing | 123 | 117 | |||||
Other | — | — | |||||
Total Cost of Goods Sold | 270 | 255 | |||||
Selling, General and Administrative | 30 | 26 | |||||
Total Costs and Expenses | 300 | 281 | |||||
Other Operating Income (Expense), net | (1 | ) | — | ||||
Operating Income | 94 | 99 | |||||
Interest Expense, net | 35 | 34 | |||||
Income before Income Taxes | 59 | 65 | |||||
Provision for Income Taxes | 1 | 3 | |||||
Income from Continuing Operations | 58 | 62 | |||||
Gain on Sale of Properties, net of tax | 2 | — | |||||
Net Income | $ | 60 | $ | 62 | |||
Income from Continuing Operations per Share | |||||||
—Basic | $ | 0.33 | $ | 0.34 | |||
—Diluted | $ | 0.33 | $ | 0.34 | |||
Net Income per Share | |||||||
—Basic | $ | 0.34 | $ | 0.34 | |||
—Diluted | $ | 0.34 | $ | 0.34 | |||
Weighted Average Number of Shares Outstanding | |||||||
—Basic | 175.7 | 182.3 | |||||
—Diluted | 176.1 | 182.8 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2007 | December 31, 2006 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 107 | $ | 273 | ||||
Restricted Advance from Customer | — | 4 | ||||||
Accounts Receivable | 47 | 40 | ||||||
Like-Kind Exchange Funds Held in Escrow | 58 | — | ||||||
Inventories | 75 | 83 | ||||||
Deferred Tax Asset | 7 | 7 | ||||||
Real Estate Development Properties | 4 | 3 | ||||||
Assets Held for Sale | 86 | 82 | ||||||
Other Current Assets | 20 | 21 | ||||||
404 | 513 | |||||||
Timber and Timberlands—Net | 3,836 | 3,876 | ||||||
Property, Plant and Equipment—Net | 206 | 216 | ||||||
Investment in Grantor Trusts | 26 | 28 | ||||||
Other Assets | 34 | 28 | ||||||
Total Assets | $ | 4,506 | $ | 4,661 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 72 | $ | 125 | ||||
Accounts Payable | 42 | 42 | ||||||
Interest Payable | 29 | 30 | ||||||
Wages Payable | 18 | 27 | ||||||
Taxes Payable | 22 | 24 | ||||||
Deferred Revenue | 12 | 17 | ||||||
Other Current Liabilities | 15 | 16 | ||||||
210 | 281 | |||||||
Long-Term Debt | 1,920 | 1,617 | ||||||
Line of Credit | 345 | 581 | ||||||
Deferred Tax Liability | 20 | 25 | ||||||
Other Liabilities | 68 | 68 | ||||||
Total Liabilities | 2,563 | 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)—174.6 at June 30, 2007, and 177.1 at December 31, 2006 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,199 | 2,190 | ||||||
Retained Earnings | 170 | 214 | ||||||
Treasury Stock, at cost, Common Shares—12.3 at June 30, 2007, and 9.5 at December 31, 2006 | (418 | ) | (307 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (10 | ) | (10 | ) | ||||
Total Stockholders’ Equity | 1,943 | 2,089 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,506 | $ | 4,661 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended | ||||||||
June 30, 2007 | June 30, 2006 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 105 | $ | 156 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 65 | 60 | ||||||
Basis of Real Estate Sold | 23 | 23 | ||||||
Deferred Income Taxes | (5 | ) | — | |||||
Gain on Sales of Properties and Other Assets | (2 | ) | — | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (58 | ) | 20 | |||||
Other Working Capital Changes | (14 | ) | (6 | ) | ||||
Expenditures for Real Estate Development | (6 | ) | (2 | ) | ||||
Other | 3 | 1 | ||||||
Net Cash Provided By Operating Activities | 111 | 252 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (33 | ) | (36 | ) | ||||
Timberlands Acquired | (9 | ) | (17 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 2 | 1 | ||||||
Other | 2 | (3 | ) | |||||
Net Cash Used In Investing Activities | (38 | ) | (55 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (149 | ) | (147 | ) | ||||
Borrowings on Line of Credit | 1,596 | 1,474 | ||||||
Repayments on Line of Credit | (1,832 | ) | (1,453 | ) | ||||
Repayment of Short-Term Debt | — | (50 | ) | |||||
Proceeds from Issuance of Long-Term Debt | 350 | 216 | ||||||
Principal Payments and Retirement of Long-Term Debt | (99 | ) | (29 | ) | ||||
Proceeds from Stock Option Exercises | 6 | 3 | ||||||
Acquisition of Treasury Stock | (111 | ) | (184 | ) | ||||
Net Cash Used In Financing Activities | (239 | ) | (170 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | (166 | ) | 27 | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 273 | 369 | ||||||
End of Period | $ | 107 | $ | 396 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
June 30, 2007 | June 30, 2006 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 60 | $ | 62 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 32 | 29 | ||||||
Basis of Real Estate Sold | 14 | 13 | ||||||
Deferred Income Taxes | (2 | ) | (1 | ) | ||||
Gain on Sale of Properties and Other Assets | (2 | ) | — | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (48 | ) | (9 | ) | ||||
Other Working Capital Changes | 17 | 14 | ||||||
Expenditures for Real Estate Development | (4 | ) | (2 | ) | ||||
Other | 6 | 6 | ||||||
Net Cash Provided By Operating Activities | 73 | 112 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (22 | ) | (19 | ) | ||||
Timberlands Acquired | (9 | ) | (17 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 2 | 1 | ||||||
Other | — | (3 | ) | |||||
Net Cash Used In Investing Activities | (29 | ) | (38 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (74 | ) | (73 | ) | ||||
Borrowings on Line of Credit | 947 | 811 | ||||||
Repayments on Line of Credit | (1,255 | ) | (790 | ) | ||||
Repayment of Short-Term Debt | — | (50 | ) | |||||
Proceeds from Issuance of Long-Term Debt | 350 | 216 | ||||||
Principal Payments and Retirement of Long-Term Debt | (27 | ) | (28 | ) | ||||
Proceeds from Stock Option Exercises | 1 | 1 | ||||||
Acquisition of Treasury Stock | (89 | ) | (184 | ) | ||||
Net Cash Used In Financing Activities | (147 | ) | (97 | ) | ||||
Decrease In Cash and Cash Equivalents | (103 | ) | (23 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 210 | 419 | ||||||
End of Period | $ | 107 | $ | 396 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Six Months 2007 | Six Months 2006 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 178 | $ | 202 | ||||
Southern Resources | 253 | 243 | ||||||
Real Estate | 110 | 113 | ||||||
Manufacturing | 244 | 264 | ||||||
Other | 11 | 10 | ||||||
Eliminations | (32 | ) | (38 | ) | ||||
Total Revenues | $ | 764 | $ | 794 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 33 | $ | 56 | ||||
Southern Resources | 87 | 98 | ||||||
Real Estate | 68 | 71 | ||||||
Manufacturing | 1 | 18 | ||||||
Other | 10 | 9 | ||||||
Other Costs and Eliminations | (28 | ) | (26 | ) | ||||
Total Operating Income | $ | 171 | $ | 226 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Second Quarter 2007 | Second Quarter 2006 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 79 | $ | 87 | ||||
Southern Resources | 126 | 121 | ||||||
Real Estate | 71 | 52 | ||||||
Manufacturing | 129 | 130 | ||||||
Other | 5 | 5 | ||||||
Eliminations | (15 | ) | (15 | ) | ||||
Total Revenues | $ | 395 | $ | 380 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 14 | $ | 21 | ||||
Southern Resources | 41 | 48 | ||||||
Real Estate | 47 | 27 | ||||||
Manufacturing | 2 | 10 | ||||||
Other | 5 | 4 | ||||||
Other Costs and Eliminations | (15 | ) | (11 | ) | ||||
Total Operating Income | $ | 94 | $ | 99 | ||||
Plum Creek Timber Company, Inc.
Selected Operating Statistics
(Unaudited)
2007 | 2006 | |||||||||||||||||||||||||
1st Qtr | 2nd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||
Sales Realization | Units | |||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 32 | $ | 31 | $ | 31 | $ | 35 | $ | 36 | $ | 33 | $ | 33 | $ | 34 | |||||||||
Pulpwood | $/Ton Stumpage | $ | 9 | $ | 9 | $ | 9 | $ | 8 | $ | 8 | $ | 7 | $ | 8 | $ | 8 | |||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 71 | $ | 76 | $ | 73 | $ | 77 | $ | 78 | $ | 81 | $ | 74 | $ | 77 | |||||||||
Pulpwood | $/Ton Delivered | $ | 37 | $ | 38 | $ | 38 | $ | 37 | $ | 37 | $ | 38 | $ | 37 | $ | 37 | |||||||||
Lumber (1) | $/MBF | $ | 390 | $ | 400 | $ | 395 | $ | 467 | $ | 456 | $ | 410 | $ | 385 | $ | 431 | |||||||||
Plywood (1) | $/MSF | $ | 398 | $ | 407 | $ | 402 | $ | 452 | $ | 455 | $ | 431 | $ | 407 | $ | 437 | |||||||||
Fiberboard (1) | $/MSF | $ | 490 | $ | 529 | $ | 510 | $ | 445 | $ | 480 | $ | 518 | $ | 506 | $ | 486 | |||||||||
Sales Volume | ||||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,681 | 1,691 | 3,372 | 1,749 | 1,685 | 1,548 | 1,629 | 6,611 | |||||||||||||||||
Pulpwood | 1,000 Tons | 1,954 | 1,901 | 3,855 | 1,642 | 1,651 | 1,917 | 2,319 | 7,529 | |||||||||||||||||
Total Harvest | 3,635 | 3,592 | 7,227 | 3,391 | 3,336 | 3,465 | 3,948 | 14,140 | ||||||||||||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 960 | 789 | 1,749 | 1,151 | 877 | 954 | 1,093 | 4,075 | |||||||||||||||||
Pulpwood | 1,000 Tons | 819 | 527 | 1,346 | 766 | 517 | 734 | 725 | 2,742 | |||||||||||||||||
Total Harvest | 1,779 | 1,316 | 3,095 | 1,917 | 1,394 | 1,688 | 1,818 | 6,817 | ||||||||||||||||||
Lumber | MBF | 95,265 | 95,701 | 190,966 | 99,367 | 97,059 | 93,925 | 86,880 | 377,231 | |||||||||||||||||
Plywood | MSF | 72,582 | 72,454 | 145,036 | 75,769 | 71,269 | 70,109 | 60,845 | 277,992 | |||||||||||||||||
Fiberboard | MSF | 64,872 | 65,938 | 130,810 | 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 | 2nd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||
Acres Sold | ||||||||||||||||||||||||
Small Non-strategic | 8,645 | 21,255 | 29,900 | 15,050 | 11,765 | 19,040 | 14,240 | 60,095 | ||||||||||||||||
Large Non-strategic | — | — | — | — | — | — | — | — | ||||||||||||||||
Conservation | 4,210 | 480 | 4,690 | 2,580 | 2,185 | 4,600 | 15,020 | 24,385 | ||||||||||||||||
HBU/Recreation | 3,750 | 8,695 | 12,445 | 3,095 | 7,225 | 7,875 | 4,575 | 22,770 | ||||||||||||||||
Development Properties | 45 | 595 | 640 | 1,075 | 645 | 1,970 | 635 | 4,325 | ||||||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||
16,650 | 31,025 | 47,675 | 21,800 | 21,820 | 33,485 | 34,470 | 111,575 | |||||||||||||||||
Price per Acre | ||||||||||||||||||||||||
Small Non-strategic | $ | 1,445 | $ | 1,295 | $ | 1,340 | $ | 1,465 | $ | 1,270 | $ | 1,765 | $ | 1,730 | $ | 1,585 | ||||||||
Large Non-strategic | — | — | — | — | — | — | — | — | ||||||||||||||||
Conservation | $ | 1,740 | $ | 6,660 | $ | 2,240 | $ | 2,085 | $ | 1,500 | $ | 3,865 | $ | 990 | $ | 1,695 | ||||||||
HBU/Recreation | $ | 4,300 | $ | 3,150 | $ | 3,495 | $ | 5,310 | $ | 4,140 | $ | 3,775 | $ | 3,620 | $ | 4,070 | ||||||||
Development Properties | $ | 22,045 | $ | 21,260 | $ | 21,310 | $ | 8,595 | $ | 5,295 | $ | 21,950 | $ | 14,995 | $ | 15,125 | ||||||||
Conservation Easements | — | — | — | $ | 1,300 | — | $ | 605 | — | $ | 885 | |||||||||||||
Revenue, ($ millions) | ||||||||||||||||||||||||
Small Non-strategic | $ | 13 | $ | 28 | $ | 41 | $ | 22 | $ | 15 | $ | 33 | $ | 26 | $ | 96 | ||||||||
Large Non-strategic | — | — | — | — | — | — | — | — | ||||||||||||||||
Conservation | $ | 7 | $ | 3 | $ | 10 | $ | 5 | $ | 3 | $ | 18 | $ | 15 | $ | 41 | ||||||||
HBU/Recreation | $ | 16 | $ | 27 | $ | 43 | $ | 17 | $ | 30 | $ | 30 | $ | 16 | $ | 93 | ||||||||
Development Properties | $ | 1 | $ | 13 | $ | 14 | $ | 9 | $ | 4 | $ | 43 | $ | 9 | $ | 65 | ||||||||
Conservation Easements | — | — | — | $ | 8 | — | $ | 5 | — | $ | 13 | |||||||||||||
$ | 37 | $ | 71 | $ | 108 | $ | 61 | $ | 52 | $ | 129 | $ | 66 | $ | 308 | |||||||||
Proceeds from Joint Ventures(1) | $ | 2 | — | $ | 2 | — | — | — | — | — | ||||||||||||||
Basis of Real Estate Sold | $ | 9 | $ | 14 | $ | 23 | $ | 10 | $ | 13 | $ | 43 | $ | 19 | $ | 85 |
(1) | Not reflected in the Land Sale Statistics (Acres Sold, Price per Acre and Revenue) |