Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Six Months Ended | ||||||||
June 30, 2008 | June 30, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 393 | $ | 399 | ||||
Real Estate | 109 | 110 | ||||||
Manufacturing | 226 | 244 | ||||||
Other | 11 | 11 | ||||||
Total Revenues | 739 | 764 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 276 | 258 | ||||||
Real Estate | 36 | 38 | ||||||
Manufacturing | 240 | 236 | ||||||
Other | 1 | 1 | ||||||
Total Cost of Goods Sold | 553 | 533 | ||||||
Selling, General and Administrative | 63 | 61 | ||||||
Total Costs and Expenses | 616 | 594 | ||||||
Other Operating Income (Expense), net | 3 | 1 | ||||||
Operating Income | 126 | 171 | ||||||
Interest Expense, net | 70 | 71 | ||||||
Income before Income Taxes | 56 | 100 | ||||||
Benefit for Income Taxes | (13 | ) | (3 | ) | ||||
Income From Continuing Operations | 69 | 103 | ||||||
Gain on Sale of Properties, net of tax | — | 2 | ||||||
Net Income | $ | 69 | $ | 105 | ||||
Per Share Amounts: | ||||||||
Income From Continuing Operations per Share | ||||||||
- Basic | $ | 0.40 | $ | 0.58 | ||||
- Diluted | $ | 0.40 | $ | 0.58 | ||||
Net Income per Share | ||||||||
- Basic | $ | 0.40 | $ | 0.59 | ||||
- Diluted | $ | 0.40 | $ | 0.59 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 171.4 | 176.4 | ||||||
- Diluted | 171.8 | 176.8 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | ||||||||
June 30, 2008 | June 30, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 192 | $ | 190 | ||||
Real Estate | 57 | 71 | ||||||
Manufacturing | 121 | 129 | ||||||
Other | 6 | 5 | ||||||
Total Revenues | 376 | 395 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 137 | 124 | ||||||
Real Estate | 20 | 22 | ||||||
Manufacturing | 128 | 123 | ||||||
Other | 1 | — | ||||||
Total Cost of Goods Sold | 286 | 269 | ||||||
Selling, General and Administrative | 33 | 31 | ||||||
Total Costs and Expenses | 319 | 300 | ||||||
Other Operating Income (Expense), net | — | (1 | ) | |||||
Operating Income | 57 | 94 | ||||||
Interest Expense, net | 34 | 35 | ||||||
Income before Income Taxes | 23 | 59 | ||||||
Provision (Benefit) for Income Taxes | (8 | ) | 1 | |||||
Income from Continuing Operations | 31 | 58 | ||||||
Gain on Sale of Properties, net of tax | — | 2 | ||||||
Net Income | $ | 31 | $ | 60 | ||||
Per Share Amounts: | ||||||||
Income from Continuing Operations per Share | ||||||||
Net Income per Share - Basic | $ | 0.18 | $ | 0.33 | ||||
Net Income per Share - Diluted | $ | 0.18 | $ | 0.33 | ||||
Net Income per Share | ||||||||
- Basic | $ | 0.18 | $ | 0.34 | ||||
- Diluted | $ | 0.18 | $ | 0.34 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 171.1 | 175.7 | ||||||
- Diluted | 171.6 | 176.1 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, 2008 | December 31, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 125 | $ | 240 | ||||
Accounts Receivable | 44 | 33 | ||||||
Like-Kind Exchange Funds Held in Escrow | 61 | — | ||||||
Inventories | 71 | 82 | ||||||
Deferred Tax Asset | 7 | 7 | ||||||
Real Estate Development Properties | 3 | 5 | ||||||
Assets Held for Sale | 61 | 64 | ||||||
Other Current Assets | 25 | 25 | ||||||
397 | 456 | |||||||
Timber and Timberlands, net | 3,908 | 3,949 | ||||||
Property, Plant and Equipment, net | 182 | 202 | ||||||
Investment in Grantor Trusts (at Fair Value) | 25 | 27 | ||||||
Other Assets | 36 | 30 | ||||||
Total Assets | $ | 4,548 | $ | 4,664 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 150 | $ | 147 | ||||
Accounts Payable | 42 | 48 | ||||||
Interest Payable | 27 | 29 | ||||||
Wages Payable | 16 | 25 | ||||||
Taxes Payable | 17 | 23 | ||||||
Deferred Revenue | 22 | 13 | ||||||
Other Current Liabilities | 19 | 18 | ||||||
293 | 303 | |||||||
Long-Term Debt | 2,020 | 1,820 | ||||||
Line of Credit | 369 | 556 | ||||||
Deferred Tax Liability | 12 | 20 | ||||||
Other Liabilities | 76 | 64 | ||||||
Total Liabilities | 2,770 | 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 June 30, 2008, and 172.3 at December 31, 2007 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,208 | 2,204 | ||||||
Retained Earnings | 127 | 202 | ||||||
Treasury Stock, at cost, Common Shares - 15.9 at June 30, 2008, and 14.6 at December 31, 2007 | (560 | ) | (509 | ) | ||||
Accumulated Other Comprehensive Income | 1 | 2 | ||||||
Total Stockholders’ Equity | 1,778 | 1,901 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,548 | $ | 4,664 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended | ||||||||
June 30, 2008 | June 30, 2007 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 69 | $ | 105 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2008) | 76 | 65 | ||||||
Basis of Real Estate Sold | 22 | 23 | ||||||
Expenditures for Real Estate Development | (5 | ) | (6 | ) | ||||
Deferred Income Taxes | (8 | ) | (5 | ) | ||||
Gain on Sales of Properties and Other Assets | (3 | ) | (2 | ) | ||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | 18 | — | ||||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (61 | ) | (58 | ) | ||||
Other Working Capital Changes | (17 | ) | (14 | ) | ||||
Other | 3 | 3 | ||||||
Net Cash Provided By Operating Activities | 94 | 111 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (29 | ) | (33 | ) | ||||
Timberlands Acquired | (1 | ) | (9 | ) | ||||
Other | — | 4 | ||||||
Net Cash Used In Investing Activities | (30 | ) | (38 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (144 | ) | (149 | ) | ||||
Borrowings on Line of Credit | 755 | 1,596 | ||||||
Repayments on Line of Credit | (942 | ) | (1,832 | ) | ||||
Proceeds from Issuance of Long-Term Debt | 250 | 350 | ||||||
Principal Payments and Retirement of Long-Term Debt | (47 | ) | (99 | ) | ||||
Proceeds from Stock Option Exercises | 1 | 6 | ||||||
Acquisition of Treasury Stock | (51 | ) | (111 | ) | ||||
Other | (1 | ) | — | |||||
Net Cash Used In Financing Activities | (179 | ) | (239 | ) | ||||
Decrease In Cash and Cash Equivalents | (115 | ) | (166 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 240 | 273 | ||||||
End of Period | $ | 125 | $ | 107 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
June 30, 2008 | June 30, 2007 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 31 | $ | 60 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2008) | 43 | 32 | ||||||
Basis of Real Estate Sold | 12 | 14 | ||||||
Expenditures for Real Estate Development | (2 | ) | (4 | ) | ||||
Deferred Income Taxes | (6 | ) | (2 | ) | ||||
Gain on Sale of Properties and Other Assets | — | (2 | ) | |||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | 18 | — | ||||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (30 | ) | (48 | ) | ||||
Other Working Capital Changes | 22 | 17 | ||||||
Other | 7 | 6 | ||||||
Net Cash Provided By Operating Activities | 95 | 73 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (16 | ) | (22 | ) | ||||
Timberlands Acquired | — | (9 | ) | |||||
Proceeds from Sales of Properties and Other Assets | — | 2 | ||||||
Net Cash Used In Investing Activities | (16 | ) | (29 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (72 | ) | (74 | ) | ||||
Borrowings on Line of Credit | 278 | 947 | ||||||
Repayments on Line of Credit | (278 | ) | (1,255 | ) | ||||
Proceeds from Issuance of Long-Term Debt | — | 350 | ||||||
Principal Payments and Retirement of Long-Term Debt | — | (27 | ) | |||||
Proceeds from Stock Option Exercises | 1 | 1 | ||||||
Acquisition of Treasury Stock | — | (89 | ) | |||||
Other | (1 | ) | — | |||||
Net Cash Used In Financing Activities | (72 | ) | (147 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | 7 | (103 | ) | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 118 | 210 | ||||||
End of Period | $ | 125 | $ | 107 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Six Months 2008 | Six Months 2007 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 168 | $ | 178 | ||||
Southern Resources | 250 | 253 | ||||||
Real Estate | 109 | 110 | ||||||
Manufacturing | 226 | 244 | ||||||
Other | 11 | 11 | ||||||
Eliminations | (25 | ) | (32 | ) | ||||
Total Revenues | $ | 739 | $ | 764 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 21 | $ | 33 | ||||
Southern Resources | 74 | 87 | ||||||
Real Estate | 68 | 68 | ||||||
Manufacturing | (20 | ) | 1 | |||||
Other | 10 | 10 | ||||||
Other Costs and Eliminations | (27 | ) | (28 | ) | ||||
Total Operating Income | $ | 126 | $ | 171 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Second Quarter 2008 | Second Quarter 2007 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 74 | $ | 79 | ||||
Southern Resources | 128 | 126 | ||||||
Real Estate | 57 | 71 | ||||||
Manufacturing | 121 | 129 | ||||||
Other | 6 | 5 | ||||||
Eliminations | (10 | ) | (15 | ) | ||||
Total Revenues | $ | 376 | $ | 395 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 7 | $ | 14 | ||||
Southern Resources | 37 | 41 | ||||||
Real Estate | 35 | 47 | ||||||
Manufacturing | (11 | ) | 2 | |||||
Other | 5 | 5 | ||||||
Other Costs and Eliminations | (16 | ) | (15 | ) | ||||
Total Operating Income | $ | 57 | $ | 94 | ||||
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
2008 | 2007 | |||||||||||||||||||||||||
1st Qtr | 2nd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||
Sales Realization | Units | |||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 29 | $ | 26 | $ | 27 | $ | 32 | $ | 31 | $ | 31 | $ | 30 | $ | 31 | |||||||||
Pulpwood | $/Ton Stumpage | $ | 10 | $ | 10 | $ | 10 | $ | 9 | $ | 9 | $ | 9 | $ | 9 | $ | 9 | |||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 67 | $ | 68 | $ | 67 | $ | 71 | $ | 76 | $ | 76 | $ | 71 | $ | 73 | |||||||||
Pulpwood | $/Ton Delivered | $ | 39 | $ | 43 | $ | 41 | $ | 37 | $ | 38 | $ | 36 | $ | 38 | $ | 37 | |||||||||
Lumber (1) | $/MBF | $ | 366 | $ | 367 | $ | 367 | $ | 390 | $ | 400 | $ | 405 | $ | 410 | $ | 400 | |||||||||
Plywood (1) | $/MSF | $ | 398 | $ | 404 | $ | 401 | $ | 398 | $ | 407 | $ | 416 | $ | 399 | $ | 405 | |||||||||
Fiberboard (1) | $/MSF | $ | 591 | $ | 600 | $ | 596 | $ | 490 | $ | 529 | $ | 542 | $ | 538 | $ | 525 | |||||||||
Sales Volume | ||||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,459 | 1,666 | 3,125 | 1,681 | 1,691 | 1,639 | 1,401 | 6,412 | |||||||||||||||||
Pulpwood | 1,000 Tons | 1,976 | 2,221 | 4,197 | 1,954 | 1,901 | 1,841 | 2,020 | 7,716 | |||||||||||||||||
Total Harvest | 3,435 | 3,887 | 7,322 | 3,635 | 3,592 | 3,480 | 3,421 | 14,128 | ||||||||||||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 978 | 739 | 1,717 | 960 | 789 | 821 | 1,032 | 3,602 | |||||||||||||||||
Pulpwood | 1,000 Tons | 738 | 504 | 1,242 | 819 | 527 | 635 | 645 | 2,626 | |||||||||||||||||
Total Harvest | 1,716 | 1,243 | 2,959 | 1,779 | 1,316 | 1,456 | 1,677 | 6,228 | ||||||||||||||||||
Lumber | MBF | 69,596 | 83,477 | 153,073 | 95,265 | 95,701 | 82,217 | 77,248 | 350,431 | |||||||||||||||||
Plywood | MSF | 68,746 | 68,616 | 137,362 | 72,582 | 72,454 | 69,796 | 62,614 | 277,446 | |||||||||||||||||
Fiberboard | MSF | 58,784 | 63,205 | 121,989 | 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 | 2nd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||
Acres Sold | ||||||||||||||||||||||||
Small Non-strategic | 17,145 | 13,215 | 30,360 | 8,645 | 21,255 | 30,735 | 16,895 | 77,530 | ||||||||||||||||
Large Non-strategic | — | — | — | — | — | — | 99,325 | 99,325 | ||||||||||||||||
Conservation | 1,015 | 595 | 1,610 | 4,210 | 480 | 2,650 | 24,505 | 31,845 | ||||||||||||||||
HBU/Recreation | 10,635 | 11,785 | 22,420 | 3,750 | 8,695 | 10,400 | 14,220 | 37,065 | ||||||||||||||||
Development Properties | 65 | 700 | 765 | 45 | 595 | 890 | 3,760 | 5,290 | ||||||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||
28,860 | 26,295 | 55,155 | 16,650 | 31,025 | 44,675 | 158,705 | 251,055 | |||||||||||||||||
Price per Acre | ||||||||||||||||||||||||
Small Non-strategic | $ | 1,180 | $ | 1,285 | $ | 1,225 | $ | 1,445 | $ | 1,295 | $ | 1,400 | $ | 1,510 | $ | 1,400 | ||||||||
Large Non-strategic | — | — | — | — | — | — | $ | 705 | $ | 705 | ||||||||||||||
Conservation | $ | 395 | $ | 1,555 | $ | 820 | $ | 1,740 | $ | 6,660 | $ | 2,150 | $ | 1,080 | $ | 1,340 | ||||||||
HBU/Recreation | $ | 2,875 | $ | 2,740 | $ | 2,805 | $ | 4,300 | $ | 3,150 | $ | 3,675 | $ | 3,315 | $ | 3,475 | ||||||||
Development Properties | $ | 5,825 | $ | 9,630 | $ | 9,300 | $ | 22,045 | $ | 21,260 | $ | 8,410 | $ | 7,640 | $ | 9,440 | ||||||||
Conservation Easements | — | — | — | — | — | — | — | — | ||||||||||||||||
Revenue, ($ millions) | ||||||||||||||||||||||||
Small Non-strategic | $ | 20 | $ | 17 | $ | 37 | $ | 13 | $ | 28 | $ | 43 | $ | 26 | $ | 110 | ||||||||
Large Non-strategic | — | — | — | — | — | — | $ | 70 | $ | 70 | ||||||||||||||
Conservation | — | $ | 1 | $ | 1 | $ | 7 | $ | 3 | $ | 6 | $ | 26 | $ | 42 | |||||||||
HBU/Recreation | $ | 31 | $ | 32 | $ | 63 | $ | 16 | $ | 27 | $ | 38 | $ | 47 | $ | 128 | ||||||||
Development Properties | — | $ | 7 | $ | 7 | $ | 1 | $ | 13 | $ | 7 | $ | 29 | $ | 50 | |||||||||
Conservation Easements | — | — | — | — | — | — | — | — | ||||||||||||||||
$ | 52 | $ | 57 | $ | 109 | $ | 37 | $ | 71 | $ | 94 | $ | 198 | $ | 400 | |||||||||
Proceeds from Joint Ventures(1) | — | — | — | $ | 2 | — | — | — | $ | 2 | ||||||||||||||
Basis of Real Estate Sold (2) | $ | 10 | $ | 13 | $ | 23 | $ | 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 |