Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | ||||||||
March 31, 2008 | March 31, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 201 | $ | 209 | ||||
Real Estate | 52 | 39 | ||||||
Manufacturing | 105 | 115 | ||||||
Other | 5 | 6 | ||||||
Total Revenues | 363 | 369 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 139 | 134 | ||||||
Real Estate | 16 | 16 | ||||||
Manufacturing | 112 | 113 | ||||||
Other | — | 1 | ||||||
Total Cost of Goods Sold | 267 | 264 | ||||||
Selling, General and Administrative | 30 | 30 | ||||||
Total Costs and Expenses | 297 | 294 | ||||||
Other Operating Income (Expense), net | 3 | 2 | ||||||
Operating Income | 69 | 77 | ||||||
Interest Expense, net | 36 | 36 | ||||||
Income before Income Taxes | 33 | 41 | ||||||
Benefit for Income Taxes | (5 | ) | (4 | ) | ||||
Net Income | $ | 38 | $ | 45 | ||||
Per Share Amounts: | ||||||||
Net Income per Share | ||||||||
- Basic | $ | 0.22 | $ | 0.26 | ||||
- Diluted | $ | 0.22 | $ | 0.25 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 171.6 | 177.1 | ||||||
- Diluted | 172.1 | 177.5 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, 2008 | December 31, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 118 | $ | 240 | ||||
Accounts Receivable | 39 | 33 | ||||||
Like-Kind Exchange Funds Held in Escrow | 31 | — | ||||||
Inventories | 86 | 82 | ||||||
Deferred Tax Asset | 7 | 7 | ||||||
Real Estate Development Properties | 6 | 5 | ||||||
Assets Held for Sale | 66 | 64 | ||||||
Other Current Assets | 24 | 25 | ||||||
377 | 456 | |||||||
Timber and Timberlands, net | 3,924 | 3,949 | ||||||
Property, Plant and Equipment, net | 196 | 202 | ||||||
Investment in Grantor Trusts (At Fair Value) | 24 | 27 | ||||||
Other Assets | 35 | 30 | ||||||
Total Assets | $ | 4,556 | $ | 4,664 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 150 | $ | 147 | ||||
Accounts Payable | 37 | 48 | ||||||
Interest Payable | 39 | 29 | ||||||
Wages Payable | 11 | 25 | ||||||
Taxes Payable | 15 | 23 | ||||||
Deferred Revenue | 7 | 13 | ||||||
Other Current Liabilities | 17 | 18 | ||||||
276 | 303 | |||||||
Long-Term Debt | 2,020 | 1,820 | ||||||
Line of Credit | 369 | 556 | ||||||
Deferred Tax Liability | 18 | 20 | ||||||
Other Liabilities | 57 | 64 | ||||||
Total Liabilities | 2,740 | 2,763 | ||||||
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) - 171.1 at March 31, 2008, and 172.3 at December 31, 2007 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,206 | 2,204 | ||||||
Retained Earnings | 168 | 202 | ||||||
Treasury Stock, at cost, Common Shares - 15.9 at March 31, 2008, and 14.6 at December 31, 2007 | (560 | ) | (509 | ) | ||||
Accumulated Other Comprehensive Income | — | 2 | ||||||
Total Stockholders’ Equity | 1,816 | 1,901 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,556 | $ | 4,664 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
March 31, 2008 | March 31, 2007 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 38 | $ | 45 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 33 | 33 | ||||||
Basis of Real Estate Sold | 10 | 9 | ||||||
Expenditures for Real Estate Development | (3 | ) | (2 | ) | ||||
Deferred Income Taxes | (2 | ) | (3 | ) | ||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (31 | ) | (10 | ) | ||||
Other Working Capital Changes | (39 | ) | (31 | ) | ||||
Other | (7 | ) | (3 | ) | ||||
Net Cash Provided By (Used In) Operating Activities | (1 | ) | 38 | |||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (13 | ) | (11 | ) | ||||
Timberlands Acquired | (1 | ) | �� | — | ||||
Other | — | 2 | ||||||
Net Cash Used In Investing Activities | (14 | ) | (9 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (72 | ) | (75 | ) | ||||
Borrowings on Line of Credit | 477 | 649 | ||||||
Repayments on Line of Credit | (664 | ) | (577 | ) | ||||
Proceeds from Issuance of Long-Term Debt | 250 | — | ||||||
Principal Payments and Retirement of Long-Term Debt | (47 | ) | (72 | ) | ||||
Proceeds from Stock Option Exercises | — | 5 | ||||||
Acquisition of Treasury Stock | (51 | ) | (22 | ) | ||||
Net Cash Used In Financing Activities | (107 | ) | (92 | ) | ||||
Decrease In Cash and Cash Equivalents | (122 | ) | (63 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 240 | 273 | ||||||
End of Period | $ | 118 | $ | 210 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Three Months 2008 | Three Months 2007 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 94 | $ | 99 | ||||
Southern Resources | 122 | 127 | ||||||
Real Estate | 52 | 39 | ||||||
Manufacturing | 105 | 115 | ||||||
Other | 5 | 6 | ||||||
Eliminations | (15 | ) | (17 | ) | ||||
Total Revenues | $ | 363 | $ | 369 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 14 | $ | 19 | ||||
Southern Resources | 37 | 46 | ||||||
Real Estate | 33 | 21 | ||||||
Manufacturing | (9 | ) | (1 | ) | ||||
Other | 5 | 5 | ||||||
Other Costs and Eliminations | (11 | ) | (13 | ) | ||||
Total Operating Income | $ | 69 | $ | 77 | ||||
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
2008 | 2007 | |||||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Sales Realization | Units | |||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 29 | $ | 32 | $ | 31 | $ | 31 | $ | 30 | $ | 31 | |||||||
Pulpwood | $/Ton Stumpage | $ | 10 | $ | 9 | $ | 9 | $ | 9 | $ | 9 | $ | 9 | |||||||
Northern Resources | ||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 67 | $ | 71 | $ | 76 | $ | 76 | $ | 71 | $ | 73 | |||||||
Pulpwood | $/Ton Delivered | $ | 39 | $ | 37 | $ | 38 | $ | 36 | $ | 38 | $ | 37 | |||||||
Lumber (1) | $/MBF | $ | 366 | $ | 390 | $ | 400 | $ | 405 | $ | 410 | $ | 400 | |||||||
Plywood (1) | $/MSF | $ | 398 | $ | 398 | $ | 407 | $ | 416 | $ | 399 | $ | 405 | |||||||
Fiberboard (1) | $/MSF | $ | 591 | $ | 490 | $ | 529 | $ | 542 | $ | 538 | $ | 525 | |||||||
Sales Volume | ||||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 1,459 | 1,681 | 1,691 | 1,639 | 1,401 | 6,412 | |||||||||||||
Pulpwood | 1,000 Tons | 1,976 | 1,954 | 1,901 | 1,841 | 2,020 | 7,716 | |||||||||||||
Total Harvest | 3,435 | 3,635 | 3,592 | 3,480 | 3,421 | 14,128 | ||||||||||||||
Northern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 978 | 960 | 789 | 821 | 1,032 | 3,602 | |||||||||||||
Pulpwood | 1,000 Tons | 738 | 819 | 527 | 635 | 645 | 2,626 | |||||||||||||
Total Harvest | 1,716 | 1,779 | 1,316 | 1,456 | 1,677 | 6,228 | ||||||||||||||
Lumber | MBF | 69,596 | 95,265 | 95,701 | 82,217 | 77,248 | 350,431 | |||||||||||||
Plywood | MSF | 68,746 | 72,582 | 72,454 | 69,796 | 62,614 | 277,446 | |||||||||||||
Fiberboard | MSF | 58,784 | 64,872 | 65,938 | 64,039 | 59,179 | 254,028 |
(1) | Represents prices at mill level. |
Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)
2008 | 2007 | |||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||
Acres Sold | ||||||||||||||||||
Small Non-strategic | 17,145 | 8,645 | 21,255 | 30,735 | 16,895 | 77,530 | ||||||||||||
Large Non-strategic | — | — | — | — | 99,325 | 99,325 | ||||||||||||
Conservation | 1,015 | 4,210 | 480 | 2,650 | 24,505 | 31,845 | ||||||||||||
HBU/Recreation | 10,635 | 3,750 | 8,695 | 10,400 | 14,220 | 37,065 | ||||||||||||
Development Properties | 65 | 45 | 595 | 890 | 3,760 | 5,290 | ||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||
28,860 | 16,650 | 31,025 | 44,675 | 158,705 | 251,055 | |||||||||||||
Price per Acre | ||||||||||||||||||
Small Non-strategic | $ | 1,180 | $ | 1,445 | $ | 1,295 | $ | 1,400 | $ | 1,510 | $ | 1,400 | ||||||
Large Non-strategic | — | — | — | — | $ | 705 | $ | 705 | ||||||||||
Conservation | $ | 395 | $ | 1,740 | $ | 6,660 | $ | 2,150 | $ | 1,080 | $ | 1,340 | ||||||
HBU/Recreation | $ | 2,875 | $ | 4,300 | $ | 3,150 | $ | 3,675 | $ | 3,315 | $ | 3,475 | ||||||
Development Properties | $ | 5,825 | $ | 22,045 | $ | 21,260 | $ | 8,410 | $ | 7,640 | $ | 9,440 | ||||||
Conservation Easements | — | — | — | — | — | — | ||||||||||||
Revenue, ($ millions) | ||||||||||||||||||
Small Non-strategic | $ | 20 | $ | 13 | $ | 28 | $ | 43 | $ | 26 | $ | 110 | ||||||
Large Non-strategic | — | — | — | — | $ | 70 | $ | 70 | ||||||||||
Conservation | — | $ | 7 | $ | 3 | $ | 6 | $ | 26 | $ | 42 | |||||||
HBU/Recreation | $ | 31 | $ | 16 | $ | 27 | $ | 38 | $ | 47 | $ | 128 | ||||||
Development Properties | — | $ | 1 | $ | 13 | $ | 7 | $ | 29 | $ | 50 | |||||||
Conservation Easements | — | — | — | — | — | — | ||||||||||||
$ | 52 | $ | 37 | $ | 71 | $ | 94 | $ | 198 | $ | 400 | |||||||
Proceeds from Joint Ventures(1) | — | $ | 2 | — | — | — | $ | 2 | ||||||||||
Basis of Real Estate Sold (2) | $ | 10 | $ | 9 | $ | 14 | $ | 22 | $ | 63 | $ | 108 | ||||||
($ 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 |