Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Nine Months Ended | |||||||
September 30, 2007 | September 30, 2006 | ||||||
(In Millions, Except Per Share Amounts) | |||||||
Revenues: | |||||||
Timber | $ | 589 | $ | 603 | |||
Real Estate | 204 | 242 | |||||
Manufacturing | 363 | 388 | |||||
Other | 15 | 15 | |||||
Total Revenues | 1,171 | 1,248 | |||||
Costs and Expenses: | |||||||
Cost of Goods Sold: | |||||||
Timber | 391 | 361 | |||||
Real Estate | 72 | 96 | |||||
Manufacturing | 349 | 353 | |||||
Other | 2 | 2 | |||||
Total Cost of Goods Sold | 814 | 812 | |||||
Selling, General and Administrative | 88 | 78 | |||||
Total Costs and Expenses | 902 | 890 | |||||
Other Operating Income (Expense), net | — | 2 | |||||
Operating Income | 269 | 360 | |||||
Interest Expense, net | 109 | 98 | |||||
Income before Income Taxes | 160 | 262 | |||||
Provision (Benefit) for Income Taxes | (2 | ) | 16 | ||||
Income From Continuing Operations | 162 | 246 | |||||
Gain on Sale of Properties, net of tax | 2 | — | |||||
Income Before Cumulative Effect of Accounting Change | 164 | 246 | |||||
Cumulative Effect of Accounting Change, net of tax | — | 2 | |||||
Net Income | $ | 164 | $ | 248 | |||
Per Share Amounts: | |||||||
Income From Continuing Operations per Share | |||||||
- Basic | $ | 0.93 | $ | 1.35 | |||
- Diluted | $ | 0.92 | $ | 1.35 | |||
Net Income per Share | |||||||
- Basic | $ | 0.94 | $ | 1.36 | |||
- Diluted | $ | 0.93 | $ | 1.36 | |||
Weighted Average Number of Shares Outstanding | |||||||
- Basic | 175.3 | 181.7 | |||||
- Diluted | 175.7 | 182.1 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | |||||||
September 30, 2007 | September 30, 2006 | ||||||
(In Millions, Except Per Share Amounts) | |||||||
Revenues: | |||||||
Timber | $ | 190 | $ | 196 | |||
Real Estate | 94 | 129 | |||||
Manufacturing | 119 | 124 | |||||
Other | 4 | 5 | |||||
Total Revenues | 407 | 454 | |||||
Costs and Expenses: | |||||||
Cost of Goods Sold: | |||||||
Timber | 133 | 127 | |||||
Real Estate | 32 | 55 | |||||
Manufacturing | 113 | 113 | |||||
Other | 1 | 1 | |||||
Total Cost of Goods Sold | 279 | 296 | |||||
Selling, General and Administrative | 29 | 24 | |||||
Total Costs and Expenses | 308 | 320 | |||||
Other Operating Income (Expense), net | (1 | ) | — | ||||
Operating Income | 98 | 134 | |||||
Interest Expense, net | 38 | 33 | |||||
Income before Income Taxes | 60 | 101 | |||||
Provision for Income Taxes | 1 | 9 | |||||
Net Income | $ | 59 | $ | 92 | |||
Per Share Amounts: | |||||||
Net Income per Share | |||||||
- Basic | $ | 0.34 | $ | 0.51 | |||
- Diluted | $ | 0.34 | $ | 0.51 | |||
Weighted Average Number of Shares Outstanding | |||||||
- Basic | 173.2 | 178.5 | |||||
- Diluted | 173.6 | 178.9 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, 2007 | December 31, 2006 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 168 | $ | 273 | ||||
Restricted Advance from Customer | — | 4 | ||||||
Accounts Receivable | 49 | 40 | ||||||
Like-Kind Exchange Funds Held in Escrow | 13 | — | ||||||
Inventories | 73 | 83 | ||||||
Deferred Tax Asset | 7 | 7 | ||||||
Real Estate Development Properties | 5 | 3 | ||||||
Assets Held for Sale | 70 | 82 | ||||||
Other Current Assets | 22 | 21 | ||||||
407 | 513 | |||||||
Timber and Timberlands - Net | 3,918 | 3,876 | ||||||
Property, Plant and Equipment - Net | 202 | 216 | ||||||
Investment in Grantor Trusts | 26 | 28 | ||||||
Other Assets | 30 | 28 | ||||||
Total Assets | $ | 4,583 | $ | 4,661 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 47 | $ | 125 | ||||
Accounts Payable | 48 | 42 | ||||||
Interest Payable | 40 | 30 | ||||||
Wages Payable | 19 | 27 | ||||||
Taxes Payable | 28 | 24 | ||||||
Deferred Revenue | 19 | 17 | ||||||
Other Current Liabilities | 17 | 16 | ||||||
218 | 281 | |||||||
Long-Term Debt | 1,919 | 1,617 | ||||||
Line of Credit | 514 | 581 | ||||||
Deferred Tax Liability | 18 | 25 | ||||||
Other Liabilities | 74 | 68 | ||||||
Total Liabilities | 2,743 | 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) - 172.3 at September 30, 2007, and 177.1 at December 31, 2006 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,201 | 2,190 | ||||||
Retained Earnings | 156 | 214 | ||||||
Treasury Stock, at cost, Common Shares - 14.6 at September 30, 2007, and 9.5 at December 31, 2006 | (509 | ) | (307 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (10 | ) | (10 | ) | ||||
Total Stockholders' Equity | 1,840 | 2,089 | ||||||
Total Liabilities and Stockholders' Equity | $ | 4,583 | $ | 4,661 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended | ||||||||
September 30, 2007 | September 30, 2006 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 164 | $ | 248 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization (Includes $4 Loss Related to Forest Fires in 2007) | 102 | 94 | ||||||
Basis of Real Estate Sold | 45 | 66 | ||||||
Deferred Income Taxes | (7 | ) | 8 | |||||
Gain on Sales of Properties and Other Assets | (2 | ) | — | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (13 | ) | (10 | ) | ||||
Other Working Capital Changes | 18 | 18 | ||||||
Expenditures for Real Estate Development | (13 | ) | (5 | ) | ||||
Other | 10 | 1 | ||||||
Net Cash Provided By Operating Activities | 304 | 420 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (59 | ) | (60 | ) | ||||
Timberlands Acquired | (96 | ) | (22 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 3 | 1 | ||||||
Other | 2 | (4 | ) | |||||
Net Cash Used In Investing Activities | (150 | ) | (85 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (222 | ) | (219 | ) | ||||
Borrowings on Line of Credit | 2,179 | 2,167 | ||||||
Repayments on Line of Credit | (2,246 | ) | (2,144 | ) | ||||
Repayment of Short-Term Debt | — | (50 | ) | |||||
Proceeds from Issuance of Long-Term Debt | 350 | 216 | ||||||
Principal Payments and Retirement of Long-Term Debt | (125 | ) | (29 | ) | ||||
Proceeds from Stock Option Exercises | 7 | 6 | ||||||
Acquisition of Treasury Stock | (202 | ) | (262 | ) | ||||
Net Cash Used In Financing Activities | (259 | ) | (315 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | (105 | ) | 20 | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 273 | 369 | ||||||
End of Period | $ | 168 | $ | 389 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
September 30, 2007 | September 30, 2006 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 59 | $ | 92 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization (Includes $4 Loss Related to Forest Fires in 2007) | 37 | 34 | ||||||
Basis of Real Estate Sold | 22 | 43 | ||||||
Deferred Income Taxes | (2 | ) | 8 | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | 45 | (30 | ) | |||||
Other Working Capital Changes | 32 | 24 | ||||||
Expenditures for Real Estate Development | (7 | ) | (3 | ) | ||||
Other | 7 | — | ||||||
Net Cash Provided By Operating Activities | 193 | 168 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (26 | ) | (24 | ) | ||||
Timberlands Acquired | (87 | ) | (5 | ) | ||||
Proceeds from Sales of Properties and Other Assets | 1 | — | ||||||
Other | — | (1 | ) | |||||
Net Cash Used In Investing Activities | (112 | ) | (30 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (73 | ) | (72 | ) | ||||
Borrowings on Line of Credit | 583 | 693 | ||||||
Repayments on Line of Credit | (414 | ) | (691 | ) | ||||
Principal Payments and Retirement of Long-Term Debt | (26 | ) | — | |||||
Proceeds from Stock Option Exercises | 1 | 3 | ||||||
Acquisition of Treasury Stock | (91 | ) | (78 | ) | ||||
Net Cash Used In Financing Activities | (20 | ) | (145 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | 61 | (7 | ) | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 107 | 396 | ||||||
End of Period | $ | 168 | $ | 389 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Nine Months 2007 | Nine Months 2006 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 264 | $ | 308 | ||||
Southern Resources | 374 | 358 | ||||||
Real Estate | 204 | 242 | ||||||
Manufacturing | 363 | 388 | ||||||
Other | 15 | 15 | ||||||
Eliminations | (49 | ) | (63 | ) | ||||
Total Revenues | $ | 1,171 | $ | 1,248 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 41 | $ | 81 | ||||
Southern Resources | 126 | 136 | ||||||
Real Estate | 129 | 143 | ||||||
Manufacturing | 3 | 24 | ||||||
Other | 13 | 13 | ||||||
Other Costs and Eliminations | (43 | ) | (37 | ) | ||||
Total Operating Income | $ | 269 | $ | 360 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Third Quarter 2007 | Third Quarter 2006 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 86 | $ | 106 | ||||
Southern Resources | 121 | 115 | ||||||
Real Estate | 94 | 129 | ||||||
Manufacturing | 119 | 124 | ||||||
Other | 4 | 5 | ||||||
Eliminations | (17 | ) | (25 | ) | ||||
Total Revenues | $ | 407 | $ | 454 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 8 | $ | 25 | ||||
Southern Resources | 39 | 38 | ||||||
Real Estate | 61 | 72 | ||||||
Manufacturing | 2 | 6 | ||||||
Other | 3 | 4 | ||||||
Other Costs and Eliminations | (15 | ) | (11 | ) | ||||
Total Operating Income | $ | 98 | $ | 134 | ||||
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
2007 | 2006 | ||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||
Sales Realization | Units | ||||||||||||||||||||||||||||
Southern Resources | |||||||||||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 32 | $ | 31 | $ | 31 | $ | 31 | $ | 35 | $ | 36 | $ | 33 | $ | 33 | $ | 34 | ||||||||||
Pulpwood | $/Ton Stumpage | $ | 9 | $ | 9 | $ | 9 | $ | 9 | $ | 8 | $ | 8 | $ | 7 | $ | 8 | $ | 8 | ||||||||||
Northern Resources | |||||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 71 | $ | 76 | $ | 76 | $ | 74 | $ | 77 | $ | 78 | $ | 81 | $ | 74 | $ | 77 | ||||||||||
Pulpwood | $/Ton Delivered | $ | 37 | $ | 38 | $ | 36 | $ | 37 | $ | 37 | $ | 37 | $ | 38 | $ | 37 | $ | 37 | ||||||||||
Lumber (1) | $/MBF | $ | 390 | $ | 400 | $ | 405 | $ | 398 | $ | 467 | $ | 456 | $ | 410 | $ | 385 | $ | 431 | ||||||||||
Plywood (1) | $/MSF | $ | 398 | $ | 407 | $ | 416 | $ | 407 | $ | 452 | $ | 455 | $ | 431 | $ | 407 | $ | 437 | ||||||||||
Fiberboard (1) | $/MSF | $ | 490 | $ | 529 | $ | 542 | $ | 521 | $ | 445 | $ | 480 | $ | 518 | $ | 506 | $ | 486 | ||||||||||
Sales Volume | |||||||||||||||||||||||||||||
Southern Resources | |||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,681 | 1,691 | 1,639 | 5,011 | 1,749 | 1,685 | 1,548 | 1,629 | 6,611 | |||||||||||||||||||
Pulpwood | 1,000 Tons | 1,954 | 1,901 | 1,841 | 5,696 | 1,642 | 1,651 | 1,917 | 2,319 | 7,529 | |||||||||||||||||||
Total Harvest | 3,635 | 3,592 | 3,480 | 10,707 | 3,391 | 3,336 | 3,465 | 3,948 | 14,140 | ||||||||||||||||||||
Northern Resources | |||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 960 | 789 | 821 | 2,570 | 1,151 | 877 | 954 | 1,093 | 4,075 | |||||||||||||||||||
Pulpwood | 1,000 Tons | 819 | 527 | 635 | 1,981 | 766 | 517 | 734 | 725 | 2,742 | |||||||||||||||||||
Total Harvest | 1,779 | 1,316 | 1,456 | 4,551 | 1,917 | 1,394 | 1,688 | 1,818 | 6,817 | ||||||||||||||||||||
Lumber | MBF | 95,265 | 95,701 | 82,217 | 273,183 | 99,367 | 97,059 | 93,925 | 86,880 | 377,231 | |||||||||||||||||||
Plywood | MSF | 72,582 | 72,454 | 69,796 | 214,832 | 75,769 | 71,269 | 70,109 | 60,845 | 277,992 | |||||||||||||||||||
Fiberboard | MSF | 64,872 | 65,938 | 64,039 | 194,849 | 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 | 3rd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||
Acres Sold | |||||||||||||||||||||||||||
Small Non-strategic | 8,645 | 21,255 | 30,735 | 60,635 | 15,050 | 11,765 | 19,040 | 14,240 | 60,095 | ||||||||||||||||||
Large Non-strategic | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Conservation | 4,210 | 480 | 2,650 | 7,340 | 2,580 | 2,185 | 4,600 | 15,020 | 24,385 | ||||||||||||||||||
HBU/Recreation | 3,750 | 8,695 | 10,400 | 22,845 | 3,095 | 7,225 | 7,875 | 4,575 | 22,770 | ||||||||||||||||||
Development Properties | 45 | 595 | 890 | 1,530 | 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 | n/a | ||||||||||||||||||
16,650 | 31,025 | 44,675 | 92,350 | 21,800 | 21,820 | 33,485 | 34,470 | 111,575 | |||||||||||||||||||
Price per Acre | |||||||||||||||||||||||||||
Small Non-strategic | $ | 1,445 | $ | 1,295 | $ | 1,400 | $ | 1,370 | $ | 1,465 | $ | 1,270 | $ | 1,765 | $ | 1,730 | $ | 1,585 | |||||||||
Large Non-strategic | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Conservation | $ | 1,740 | $ | 6,660 | $ | 2,150 | $ | 2,210 | $ | 2,085 | $ | 1,500 | $ | 3,865 | $ | 990 | $ | 1,695 | |||||||||
HBU/Recreation | $ | 4,300 | $ | 3,150 | $ | 3,675 | $ | 3,580 | $ | 5,310 | $ | 4,140 | $ | 3,775 | $ | 3,620 | $ | 4,070 | |||||||||
Development Properties | $ | 22,045 | $ | 21,260 | $ | 8,410 | $ | 13,795 | $ | 8,595 | $ | 5,295 | $ | 21,950 | $ | 14,995 | $ | 15,125 | |||||||||
Conservation Easements | — | — | — | — | $ | 1,300 | — | $ | 605 | — | $ | 885 | |||||||||||||||
Revenue, ($ millions) | |||||||||||||||||||||||||||
Small Non-strategic | $ | 13 | $ | 28 | $ | 43 | $ | 84 | $ | 22 | $ | 15 | $ | 33 | $ | 26 | $ | 96 | |||||||||
Large Non-strategic | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Conservation | $ | 7 | $ | 3 | $ | 6 | $ | 16 | $ | 5 | $ | 3 | $ | 18 | $ | 15 | $ | 41 | |||||||||
HBU/Recreation | $ | 16 | $ | 27 | $ | 38 | $ | 81 | $ | 17 | $ | 30 | $ | 30 | $ | 16 | $ | 93 | |||||||||
Development Properties | $ | 1 | $ | 13 | $ | 7 | $ | 21 | $ | 9 | $ | 4 | $ | 43 | $ | 9 | $ | 65 | |||||||||
Conservation Easements | — | — | — | — | $ | 8 | — | $ | 5 | — | $ | 13 | |||||||||||||||
$ | 37 | $ | 71 | $ | 94 | $ | 202 | $ | 61 | $ | 52 | $ | 129 | $ | 66 | $ | 308 | ||||||||||
Proceeds from Joint Ventures(1) | $ | 2 | — | — | $ | 2 | — | — | — | — | — | ||||||||||||||||
Basis of Real Estate Sold | $ | 9 | $ | 14 | $ | 22 | $ | 45 | $ | 10 | $ | 13 | $ | 43 | $ | 19 | $ | 85 | |||||||||
($ millions) |
(1) | Not reflected in the Land Sale Statistics (Acres Sold, Price per Acre and Revenue) |