Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Year Ended | |||||||||||
December 31, 2007 | December 31, 2006 | ||||||||||
(In Millions, Except Per Share Amounts) | |||||||||||
Revenues: | |||||||||||
Timber | $ | 782 | $ | 807 | |||||||
Real Estate | 402 | 308 | |||||||||
Manufacturing | 471 | 493 | |||||||||
Other | 20 | 19 | |||||||||
Total Revenues | 1,675 | 1,627 | |||||||||
Costs and Expenses: | |||||||||||
Cost of Goods Sold: | |||||||||||
Timber | 523 | 487 | |||||||||
Real Estate | 144 | 122 | |||||||||
Manufacturing | 454 | 455 | |||||||||
Other | 3 | 3 | |||||||||
Total Cost of Goods Sold | 1,124 | 1,067 | |||||||||
Selling, General and Administrative | 127 | 117 | |||||||||
Total Costs and Expenses | 1,251 | 1,184 | |||||||||
Gain from Canadian Lumber Settlement | - | 14 | |||||||||
Other Operating Income (Expense), net | - | 4 | |||||||||
Operating Income | 424 | 461 | |||||||||
Interest Expense, net | 147 | 133 | |||||||||
Income before Income Taxes | 277 | 328 | |||||||||
Provision (Benefit) for Income Taxes | (3 | ) | 13 | ||||||||
Income From Continuing Operations | 280 | 315 | |||||||||
Gain on Sale of Properties, net of tax | 2 | - | |||||||||
Income Before Cumulative Effect of Accounting Change | 282 | 315 | |||||||||
Cumulative Effect of Accounting Change, net of tax | - | 2 | |||||||||
Net Income | $ | 282 | $ | 317 | |||||||
Per Share Amounts: | |||||||||||
Income From Continuing Operations per Share | |||||||||||
- Basic | $ | 1.60 | $ | 1.75 | |||||||
- Diluted | $ | 1.60 | $ | 1.74 | |||||||
Net Income per Share | |||||||||||
- Basic | $ | 1.61 | $ | 1.76 | |||||||
- Diluted | $ | 1.61 | $ | 1.75 | |||||||
Weighted Average Number of Shares Outstanding | |||||||||||
- Basic | 174.5 | 180.5 | |||||||||
- Diluted | 175.0 | 180.9 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | ||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||
(In Millions, Except Per Share Amounts) | ||||||||||||
Revenues: | ||||||||||||
Timber | $ | 193 | $ | 204 | ||||||||
Real Estate | 198 | 66 | ||||||||||
Manufacturing | 108 | 105 | ||||||||||
Other | 5 | 4 | ||||||||||
Total Revenues | 504 | 379 | ||||||||||
Costs and Expenses: | ||||||||||||
Cost of Goods Sold: | ||||||||||||
Timber | 132 | 126 | ||||||||||
Real Estate | 75 | 29 | ||||||||||
Manufacturing | 105 | 102 | ||||||||||
Other | 1 | 1 | ||||||||||
Total Cost of Goods Sold | 313 | 258 | ||||||||||
Selling, General and Administrative | 36 | 36 | ||||||||||
Total Costs and Expenses | 349 | 294 | ||||||||||
Gain from Canadian Lumber Settlement | - | 14 | ||||||||||
Other Operating Income (Expense), net | - | 2 | ||||||||||
Operating Income | 155 | 101 | ||||||||||
Interest Expense, net | 38 | 35 | ||||||||||
Income before Income Taxes | 117 | 66 | ||||||||||
Benefit for Income Taxes | (1 | ) | (3 | ) | ||||||||
Net Income | $ | 118 | $ | 69 | ||||||||
Per Share Amounts: | ||||||||||||
Net Income per Share | ||||||||||||
- Basic | $ | 0.68 | $ | 0.39 | ||||||||
- Diluted | $ | 0.68 | $ | 0.39 | ||||||||
Weighted Average Number of Shares Outstanding | ||||||||||||
- Basic | 172.3 | 177.0 | ||||||||||
- Diluted | 172.8 | 177.4 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, 2007 | December 31, 2006 | |||||||||||
(In Millions, Except Per Share Amounts) | ||||||||||||
ASSETS | ||||||||||||
Current Assets: | ||||||||||||
Cash and Cash Equivalents | $ | 240 | $ | 273 | ||||||||
Restricted Advance from Customer | - | 4 | ||||||||||
Accounts Receivable | 33 | 40 | ||||||||||
Inventories | 82 | 83 | ||||||||||
Deferred Tax Asset | 7 | 7 | ||||||||||
Real Estate Development Properties | 5 | 3 | ||||||||||
Assets Held for Sale | 64 | 82 | ||||||||||
Other Current Assets | 25 | 21 | ||||||||||
456 | 513 | |||||||||||
Timber and Timberlands, Net | 3,949 | 3,876 | ||||||||||
Property, Plant and Equipment, Net | 202 | 216 | ||||||||||
Investment in Grantor Trusts | 27 | 28 | ||||||||||
Other Assets | 30 | 28 | ||||||||||
Total Assets | $ | 4,664 | $ | 4,661 | ||||||||
LIABILITIES | ||||||||||||
Current Liabilities: | ||||||||||||
Current Portion of Long-Term Debt | $ | 147 | $ | 125 | ||||||||
Accounts Payable | 48 | 42 | ||||||||||
Interest Payable | 29 | 30 | ||||||||||
Wages Payable | 25 | 27 | ||||||||||
Taxes Payable | 23 | 24 | ||||||||||
Deferred Revenue | 13 | 17 | ||||||||||
Other Current Liabilities | 18 | 16 | ||||||||||
303 | 281 | |||||||||||
Long-Term Debt | 1,820 | 1,617 | ||||||||||
Line of Credit | 556 | 581 | ||||||||||
Deferred Tax Liability | 20 | 25 | ||||||||||
Other Liabilities | 64 | 68 | ||||||||||
Total Liabilities | 2,763 | 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 December 31, 2007, and 177.1 at December 31, 2006 | 2 | 2 | ||||||||||
Additional Paid-In Capital | 2,204 | 2,190 | ||||||||||
Retained Earnings | 202 | 214 | ||||||||||
Treasury Stock, at cost, Common Shares - 14.6 at December 31, 2007, and 9.5 at December 31, 2006 | (509 | ) | (307 | ) | ||||||||
Accumulated Other Comprehensive Income (Loss) | 2 | (10 | ) | |||||||||
Total Stockholders’ Equity | 1,901 | 2,089 | ||||||||||
Total Liabilities and Stockholders’ Equity | $ | 4,664 | $ | 4,661 | ||||||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Year Ended | ||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||
(In Millions) | ||||||||||||
Cash Flows From Operating Activities: | ||||||||||||
Net Income | $ | 282 | $ | 317 | ||||||||
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) | 134 | 128 | ||||||||||
Basis of Real Estate Sold | 108 | 85 | ||||||||||
Expenditures for Real Estate Development | (19 | ) | (6 | ) | ||||||||
Deferred Income Taxes | (9 | ) | 1 | |||||||||
Gain on Sales of Properties and Other Assets | (2 | ) | (1 | ) | ||||||||
Working Capital Changes Impacting Cash Flow: | ||||||||||||
Like-Kind Exchange Funds | - | 30 | ||||||||||
Other Working Capital Changes | 8 | (1 | ) | |||||||||
Other | 15 | 3 | ||||||||||
Net Cash Provided By Operating Activities | 517 | 556 | ||||||||||
Cash Flows From Investing Activities: | ||||||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (93 | ) | (86 | ) | ||||||||
Timberlands Acquired | (174 | ) | (111 | ) | ||||||||
Proceeds from Sales of Properties and Other Assets | 3 | 2 | ||||||||||
Other | 2 | (4 | ) | |||||||||
Net Cash Used In Investing Activities | (262 | ) | (199 | ) | ||||||||
Cash Flows From Financing Activities: | ||||||||||||
Dividends | (294 | ) | (290 | ) | ||||||||
Borrowings on Line of Credit | 2,795 | 3,483 | ||||||||||
Repayments on Line of Credit | (2,820 | ) | (3,397 | ) | ||||||||
Repayment of Short-Term Debt | - | (50 | ) | |||||||||
Proceeds from Issuance of Long-Term Debt | 350 | 216 | ||||||||||
Principal Payments and Retirement of Long-Term Debt | (125 | ) | (159 | ) | ||||||||
Proceeds from Stock Option Exercises | 8 | 7 | ||||||||||
Acquisition of Treasury Stock | (202 | ) | (263 | ) | ||||||||
Net Cash Used In Financing Activities | (288 | ) | (453 | ) | ||||||||
Decrease In Cash and Cash Equivalents | (33 | ) | (96 | ) | ||||||||
Cash and Cash Equivalents: | ||||||||||||
Beginning of Year | 273 | 369 | ||||||||||
End of Year | $ | 240 | $ | 273 | ||||||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||
(In Millions) | ||||||||||||
Cash Flows From Operating Activities: | ||||||||||||
Net Income | $ | 118 | $ | 69 | ||||||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||||||
Depreciation, Depletion and Amortization | 32 | 34 | ||||||||||
Basis of Real Estate Sold | 63 | 19 | ||||||||||
Expenditures for Real Estate Development | (6 | ) | (1 | ) | ||||||||
Deferred Income Taxes | (2 | ) | (7 | ) | ||||||||
Gain on Sale of Properties and Other Assets | - | (1 | ) | |||||||||
Working Capital Changes Impacting Cash Flow: | ||||||||||||
Like-Kind Exchange Funds | 13 | 40 | ||||||||||
Other Working Capital Changes | (10 | ) | (19 | ) | ||||||||
Other | 5 | 2 | ||||||||||
Net Cash Provided By Operating Activities | 213 | 136 | ||||||||||
Cash Flows From Investing Activities: | ||||||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (34 | ) | (26 | ) | ||||||||
Timberlands Acquired | (78 | ) | (89 | ) | ||||||||
Proceeds from Sales of Properties and Other Assets | - | 1 | ||||||||||
Net Cash Used In Investing Activities | (112 | ) | (114 | ) | ||||||||
Cash Flows From Financing Activities: | ||||||||||||
Dividends | (72 | ) | (71 | ) | ||||||||
Borrowings on Line of Credit | 616 | 1,316 | ||||||||||
Repayments on Line of Credit | (574 | ) | (1,253 | ) | ||||||||
Principal Payments and Retirement of Long-Term Debt | - | (130 | ) | |||||||||
Proceeds from Stock Option Exercises | 1 | 1 | ||||||||||
Acquisition of Treasury Stock | - | (1 | ) | |||||||||
Net Cash Used In Financing Activities | (29 | ) | (138 | ) | ||||||||
Increase (Decrease) In Cash and Cash Equivalents | 72 | (116 | ) | |||||||||
Cash and Cash Equivalents: | ||||||||||||
Beginning of Period | 168 | 389 | ||||||||||
End of Period | $ | 240 | $ | 273 | ||||||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Twelve Months 2007 | Twelve Months 2006 | |||||||||||
(In Millions) | ||||||||||||
Revenues: | ||||||||||||
Northern Resources | $ | 361 | $ | 413 | ||||||||
Southern Resources | 492 | 479 | ||||||||||
Real Estate | 402 | 308 | ||||||||||
Manufacturing | 471 | 493 | ||||||||||
Other | 20 | 19 | ||||||||||
Eliminations | (71 | ) | (85 | ) | ||||||||
Total Revenues | $ | 1,675 | $ | 1,627 | ||||||||
Operating Income (Loss) | ||||||||||||
Northern Resources | $ | 58 | $ | 105 | ||||||||
Southern Resources | 161 | 178 | ||||||||||
Real Estate | 250 | 178 | ||||||||||
Manufacturing | 2 | 22 | ||||||||||
Other | 17 | 16 | ||||||||||
Other Costs and Eliminations. | (64 | ) | (52 | ) | ||||||||
Gain from Canadian Lumber Settlement | - | 14 | ||||||||||
Total Operating Income. | $ | 424 | $ | 461 | ||||||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Fourth Quarter 2007 | Fourth Quarter 2006 | |||||||||||
(In Millions) | ||||||||||||
Revenues: | ||||||||||||
Northern Resources | $ | 97 | $ | 105 | ||||||||
Southern Resources . | 118 | 121 | ||||||||||
Real Estate | 198 | 66 | ||||||||||
Manufacturing | 108 | 105 | ||||||||||
Other | 5 | 4 | ||||||||||
Eliminations | (22 | ) | (22 | ) | ||||||||
Total Revenues | $ | 504 | $ | 379 | ||||||||
Operating Income (Loss) | ||||||||||||
Northern Resources | $ | 17 | $ | 24 | ||||||||
Southern Resources | 35 | 42 | ||||||||||
Real Estate | 121 | 35 | ||||||||||
Manufacturing | (1 | ) | (2 | ) | ||||||||
Other | 4 | 3 | ||||||||||
Other Costs and Eliminations. | (21 | ) | (15 | ) | ||||||||
Gain from Canadian Lumber Settlement | - | 14 | ||||||||||
Total Operating Income. | $ | 155 | $ | 101 | ||||||||
Plum Creek Timber Company, Inc.
Selected Operating Statistics
(Unaudited)
2007 | 2006 | |||||||||||||||||||||||||||||||
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 | $ | 32 | $ | 31 | $ | 31 | $ | 30 | $ | 31 | $ | 35 | $ | 36 | $ | 33 | $ | 33 | $ | 34 | |||||||||||
Pulpwood | $/Ton Stumpage | $ | 9 | $ | 9 | $ | 9 | $ | 9 | $ | 9 | $ | 8 | $ | 8 | $ | 7 | $ | 8 | $ | 8 | |||||||||||
Northern Resources | ||||||||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 71 | $ | 76 | $ | 76 | $ | 71 | $ | 73 | $ | 77 | $ | 78 | $ | 81 | $ | 74 | $ | 77 | |||||||||||
Pulpwood | $/Ton Delivered | $ | 37 | $ | 38 | $ | 36 | $ | 38 | $ | 37 | $ | 37 | $ | 37 | $ | 38 | $ | 37 | $ | 37 | |||||||||||
Lumber (1) | $/MBF | $ | 390 | $ | 400 | $ | 405 | $ | 410 | $ | 400 | $ | 467 | $ | 456 | $ | 410 | $ | 385 | $ | 431 | |||||||||||
Plywood (1) | $/MSF | $ | 398 | $ | 407 | $ | 416 | $ | 399 | $ | 405 | $ | 452 | $ | 455 | $ | 431 | $ | 407 | $ | 437 | |||||||||||
Fiberboard (1) | $/MSF | $ | 490 | $ | 529 | $ | 542 | $ | 538 | $ | 525 | $ | 445 | $ | 480 | $ | 518 | $ | 506 | $ | 486 | |||||||||||
Sales Volume | ||||||||||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,681 | 1,691 | 1,639 | 1,401 | 6,412 | 1,749 | 1,685 | 1,548 | 1,629 | 6,611 | |||||||||||||||||||||
Pulpwood | 1,000 Tons | 1,954 | 1,901 | 1,841 | 2,020 | 7,716 | 1,642 | 1,651 | 1,917 | 2,319 | 7,529 | |||||||||||||||||||||
Total Harvest | 3,635 | 3,592 | 3,480 | 3,421 | 14,128 | 3,391 | 3,336 | 3,465 | 3,948 | 14,140 | ||||||||||||||||||||||
Northern Resources | ||||||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 960 | 789 | 821 | 1,032 | 3,602 | 1,151 | 877 | 954 | 1,093 | 4,075 | |||||||||||||||||||||
Pulpwood | 1,000 Tons | 819 | 527 | 635 | 645 | 2,626 | 766 | 517 | 734 | 725 | 2,742 | |||||||||||||||||||||
Total Harvest | 1,779 | 1,316 | 1,456 | 1,677 | 6,228 | 1,917 | 1,394 | 1,688 | 1,818 | 6,817 | ||||||||||||||||||||||
Lumber | MBF | 95,265 | 95,701 | 82,217 | 77,248 | 350,431 | 99,367 | 97,059 | 93,925 | 86,880 | 377,231 | |||||||||||||||||||||
Plywood | MSF | 72,582 | 72,454 | 69,796 | 62,614 | 277,446 | 75,769 | 71,269 | 70,109 | 60,845 | 277,992 | |||||||||||||||||||||
Fiberboard | MSF | 64,872 | 65,938 | 64,039 | 59,179 | 254,028 | 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 | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||
Acres Sold | ||||||||||||||||||||||||||||||
Small Non-strategic | 8,645 | 21,255 | 30,735 | 16,895 | 77,530 | 15,050 | 11,765 | 19,040 | 14,240 | 60,095 | ||||||||||||||||||||
Large Non-strategic | - | - | - | 99,325 | 99,325 | - | - | - | - | - | ||||||||||||||||||||
Conservation | 4,210 | 480 | 2,650 | 24,505 | 31,845 | 2,580 | 2,185 | 4,600 | 15,020 | 24,385 | ||||||||||||||||||||
HBU/Recreation | 3,750 | 8,695 | 10,400 | 14,220 | 37,065 | 3,095 | 7,225 | 7,875 | 4,575 | 22,770 | ||||||||||||||||||||
Development Properties | 45 | 595 | 890 | 3,760 | 5,290 | 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 | n/a | ||||||||||||||||||||
16,650 | 31,025 | 44,675 | 158,705 | 251,055 | 21,800 | 21,820 | 33,485 | 34,470 | 111,575 | |||||||||||||||||||||
Price per Acre | ||||||||||||||||||||||||||||||
Small Non-strategic | $ | 1,445 | $ | 1,295 | $ | 1,400 | $ | 1,510 | $ | 1,400 | $ | 1,465 | $ | 1,270 | $ | 1,765 | $ | 1,730 | $ | 1,585 | ||||||||||
Large Non-strategic | - | - | - | $ | 705 | $ | 705 | - | - | - | - | - | ||||||||||||||||||
Conservation | $ | 1,740 | $ | 6,660 | $ | 2,150 | $ | 1,080 | $ | 1,340 | $ | 2,085 | $ | 1,500 | $ | 3,865 | $ | 990 | $ | 1,695 | ||||||||||
HBU/Recreation | $ | 4,300 | $ | 3,150 | $ | 3,675 | $ | 3,315 | $ | 3,475 | $ | 5,310 | $ | 4,140 | $ | 3,775 | $ | 3,620 | $ | 4,070 | ||||||||||
Development Properties | $ | 22,045 | $ | 21,260 | $ | 8,410 | $ | 7,640 | $ | 9,440 | $ | 8,595 | $ | 5,295 | $ | 21,950 | $ | 14,995 | $ | 15,125 | ||||||||||
Conservation Easements | - | - | - | - | - | $ | 1,300 | - | $ | 605 | - | $ | 885 | |||||||||||||||||
Revenue, ($ millions) | ||||||||||||||||||||||||||||||
Small Non-strategic | $ | 13 | $ | 28 | $ | 43 | $ | 26 | $ | 110 | $ | 22 | $ | 15 | $ | 33 | $ | 26 | $ | 96 | ||||||||||
Large Non-strategic | - | - | - | $ | 70 | $ | 70 | - | - | - | - | - | ||||||||||||||||||
Conservation | $ | 7 | $ | 3 | $ | 6 | $ | 26 | $ | 42 | $ | 5 | $ | 3 | $ | 18 | $ | 15 | $ | 41 | ||||||||||
HBU/Recreation | $ | 16 | $ | 27 | $ | 38 | $ | 47 | $ | 128 | $ | 17 | $ | 30 | $ | 30 | $ | 16 | $ | 93 | ||||||||||
Development Properties | $ | 1 | $ | 13 | $ | 7 | $ | 29 | $ | 50 | $ | 9 | $ | 4 | $ | 43 | $ | 9 | $ | 65 | ||||||||||
Conservation Easements | - | - | - | - | - | $ | 8 | - | $ | 5 | - | $ | 13 | |||||||||||||||||
$ | 37 | $ | 71 | $ | 94 | $ | 198 | $ | 400 | $ | 61 | $ | 52 | $ | 129 | $ | 66 | $ | 308 | |||||||||||
Proceeds from Joint Ventures (1) | $ | 2 | - | - | - | $ | 2 | - | - | - | - | - | ||||||||||||||||||
Basis of Real Estate Sold (2) | $ | 9 | $ | 14 | $ | 22 | $ | 63 | $ | 108 | $ | 10 | $ | 13 | $ | 43 | $ | 19 | $ | 85 | ||||||||||
($ millions) |
(1) | Not reflected in the Land Sale Statistics (Acres Sold, Price per Acre and Revenue) |
(2) | Includes $26 Million in the Fourth Quarter 2007 for a Large, Non-strategic Sale |
Plum Creek Timber Company, Inc.
Acreage Ownership by State
(Unaudited)
December 31, 2007 | ||
Alabama | 101,000 | |
Arkansas | 899,000 | |
Florida | 601,000 | |
Georgia | 866,000 | |
Louisiana | 492,000 | |
Maine | 929,000 | |
Michigan | 646,000 | |
Mississippi | 807,000 | |
Montana | 1,226,000 | |
New Hampshire | 33,000 | |
North Carolina | 62,000 | |
Oklahoma | 120,000 | |
Oregon | 405,000 | |
South Carolina | 199,000 | |
Texas | 47,000 | |
Washington | 124,000 | |
West Virginia | 113,000 | |
Wisconsin | 364,000 | |
Total | 8,034,000 | |