Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Nine Months Ended | ||||||||
September 30, 2008 | September 30, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 587 | $ | 589 | ||||
Real Estate | 217 | 204 | ||||||
Manufacturing | 330 | 363 | ||||||
Other | 19 | 15 | ||||||
Total Revenues | 1,153 | 1,171 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 420 | 391 | ||||||
Real Estate | 69 | 69 | ||||||
Manufacturing | 345 | 349 | ||||||
Other | 2 | 2 | ||||||
Total Cost of Goods Sold | 836 | 811 | ||||||
Selling, General and Administrative | 94 | 91 | ||||||
Total Costs and Expenses | 930 | 902 | ||||||
Other Operating Income (Expense), net | 2 | — | ||||||
Operating Income | 225 | 269 | ||||||
Interest Expense, net | 105 | 109 | ||||||
Income before Income Taxes | 120 | 160 | ||||||
Benefit for Income Taxes | (18 | ) | (2 | ) | ||||
Income From Continuing Operations | 138 | 162 | ||||||
Gain on Sale of Properties, net of tax | — | 2 | ||||||
Net Income | $ | 138 | $ | 164 | ||||
Per Share Amounts: | ||||||||
Income From Continuing Operations - Basic | $ | 0.81 | $ | 0.93 | ||||
Income From Continuing Operations - Diluted | $ | 0.80 | $ | 0.92 | ||||
Net Income per Share - Basic | $ | 0.81 | $ | 0.94 | ||||
Net Income per Share - Diluted | $ | 0.80 | $ | 0.93 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 171.3 | 175.3 | ||||||
- Diluted | 171.8 | 175.7 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | ||||||||
September 30, 2008 | September 30, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 194 | $ | 190 | ||||
Real Estate | 108 | 94 | ||||||
Manufacturing | 104 | 119 | ||||||
Other | 8 | 4 | ||||||
Total Revenues | 414 | 407 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 144 | 133 | ||||||
Real Estate | 33 | 31 | ||||||
Manufacturing | 105 | 113 | ||||||
Other | 1 | 1 | ||||||
Total Cost of Goods Sold | 283 | 278 | ||||||
Selling, General and Administrative | 31 | 30 | ||||||
Total Costs and Expenses | 314 | 308 | ||||||
Other Operating Income (Expense), net | (1 | ) | (1 | ) | ||||
Operating Income | 99 | 98 | ||||||
Interest Expense, net | 35 | 38 | ||||||
Income before Income Taxes | 64 | 60 | ||||||
Provision (Benefit) for Income Taxes | (5 | ) | 1 | |||||
Net Income | $ | 69 | $ | 59 | ||||
Per Share Amounts: | ||||||||
Net Income per Share - Basic | $ | 0.40 | $ | 0.34 | ||||
Net Income per Share - Diluted | $ | 0.40 | $ | 0.34 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 171.2 | 173.2 | ||||||
- Diluted | 171.8 | 173.6 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, 2008 | December 31, 2007 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 175 | $ | 240 | ||||
Accounts Receivable | 48 | 33 | ||||||
Like-Kind Exchange Funds Held in Escrow | 69 | - | ||||||
Inventories | 80 | 82 | ||||||
Deferred Tax Asset | 7 | 7 | ||||||
Real Estate Development Properties | 4 | 5 | ||||||
Assets Held for Sale | 132 | 64 | ||||||
Other Current Assets | 21 | 25 | ||||||
536 | 456 | |||||||
Timber and Timberlands, net | 3,863 | 3,949 | ||||||
Property, Plant and Equipment, net | 179 | 202 | ||||||
Investment in Grantor Trusts (at Fair Value) | 25 | 27 | ||||||
Other Assets | 41 | 30 | ||||||
Total Assets | $ | 4,644 | $ | 4,664 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 300 | $ | 147 | ||||
Accounts Payable | 48 | 48 | ||||||
Interest Payable | 39 | 29 | ||||||
Wages Payable | 22 | 25 | ||||||
Taxes Payable | 20 | 23 | ||||||
Deferred Revenue | 22 | 13 | ||||||
Other Current Liabilities | 22 | 18 | ||||||
473 | 303 | |||||||
Long-Term Debt | 1,870 | 1,820 | ||||||
Line of Credit | 432 | 556 | ||||||
Deferred Tax Liability | 9 | 20 | ||||||
Other Liabilities | 72 | 64 | ||||||
Total Liabilities | 2,856 | 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) - 171.6 at September 30, 2008, and 172.3 at December 31, 2007 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,222 | 2,204 | ||||||
Retained Earnings | 124 | 202 | ||||||
Treasury Stock, at cost, Common Shares - 15.9 at September 30, 2008, and 14.6 at December 31, 2007 | (560 | ) | (509 | ) | ||||
Accumulated Other Comprehensive Income | — | 2 | ||||||
Total Stockholders’ Equity | 1,788 | 1,901 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,644 | $ | 4,664 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended | ||||||||
September 30, 2008 | September 30, 2007 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 138 | $ | 164 | ||||
Adjustments to Reconcile Net Income to | ||||||||
Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2008 and $4 Loss Related to Forest Fires in 2007) | 109 | 102 | ||||||
Basis of Real Estate Sold | 49 | 45 | ||||||
Expenditures for Real Estate Development | (6 | ) | (13 | ) | ||||
Deferred Income Taxes | (11 | ) | (7 | ) | ||||
Gain on Sales of Properties and Other Assets | (3 | ) | (2 | ) | ||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | 17 | — | ||||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (69 | ) | (13 | ) | ||||
Other Working Capital Changes | (1 | ) | 18 | |||||
Other | 2 | 10 | ||||||
Net Cash Provided By Operating Activities | 225 | 304 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (47 | ) | (59 | ) | ||||
Timberlands Acquired | (65 | ) | (96 | ) | ||||
Other | (1 | ) | 5 | |||||
Net Cash Used In Investing Activities | (113 | ) | (150 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (216 | ) | (222 | ) | ||||
Borrowings on Line of Credit | 1,275 | 2,179 | ||||||
Repayments on Line of Credit | (1,399 | ) | (2,246 | ) | ||||
Proceeds from Issuance of Long-Term Debt | 250 | 350 | ||||||
Principal Payments and Retirement of Long-Term Debt | (50 | ) | (125 | ) | ||||
Proceeds from Stock Option Exercises | 14 | 7 | ||||||
Acquisition of Treasury Stock | (51 | ) | (202 | ) | ||||
Net Cash Used In Financing Activities | (177 | ) | (259 | ) | ||||
Decrease In Cash and Cash Equivalents | (65 | ) | (105 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 240 | 273 | ||||||
End of Period | $ | 175 | $ | 168 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
September 30, 2008 | September 30, 2007 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 69 | $ | 59 | ||||
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) | 33 | 37 | ||||||
Basis of Real Estate Sold | 27 | 22 | ||||||
Expenditures for Real Estate Development | (1 | ) | (7 | ) | ||||
Deferred Income Taxes | (3 | ) | (2 | ) | ||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | (1 | ) | — | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | (8 | ) | 45 | |||||
Other Working Capital Changes | 16 | 32 | ||||||
Other | (1 | ) | 7 | |||||
Net Cash Provided By Operating Activities | 131 | 193 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (18 | ) | (26 | ) | ||||
Timberlands Acquired | (64 | ) | (87 | ) | ||||
Other | (1 | ) | 1 | |||||
Net Cash Used In Investing Activities | (83 | ) | (112 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (72 | ) | (73 | ) | ||||
Borrowings on Line of Credit | 520 | 583 | ||||||
Repayments on Line of Credit | (457 | ) | (414 | ) | ||||
Principal Payments and Retirement of Long-Term Debt | (3 | ) | (26 | ) | ||||
Proceeds from Stock Option Exercises | 13 | 1 | ||||||
Acquisition of Treasury Stock | — | (91 | ) | |||||
Other | 1 | — | ||||||
Net Cash Provided By (Used In) Financing Activities | 2 | (20 | ) | |||||
Increase In Cash and Cash Equivalents | 50 | 61 | ||||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 125 | 107 | ||||||
End of Period | $ | 175 | $ | 168 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Nine Months 2008 | Nine Months 2007 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 263 | $ | 264 | ||||
Southern Resources | 366 | 374 | ||||||
Real Estate | 217 | 204 | ||||||
Manufacturing | 330 | 363 | ||||||
Other | 19 | 15 | ||||||
Eliminations | (42 | ) | (49 | ) | ||||
Total Revenues | $ | 1,153 | $ | 1,171 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 33 | $ | 41 | ||||
Southern Resources | 103 | 126 | ||||||
Real Estate | 141 | 129 | ||||||
Manufacturing | (24 | ) | 3 | |||||
Other | 17 | 13 | ||||||
Other Costs and Eliminations | (47 | ) | (43 | ) | ||||
Other Operating Income (Expense), net | 2 | — | ||||||
Total Operating Income | $ | 225 | $ | 269 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Third Quarter 2008 | Third Quarter 2007 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 95 | $ | 86 | ||||
Southern Resources | 116 | 121 | ||||||
Real Estate | 108 | 94 | ||||||
Manufacturing | 104 | 119 | ||||||
Other | 8 | 4 | ||||||
Eliminations | (17 | ) | (17 | ) | ||||
Total Revenues | $ | 414 | $ | 407 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 12 | $ | 8 | ||||
Southern Resources | 29 | 39 | ||||||
Real Estate | 73 | 61 | ||||||
Manufacturing | (4 | ) | 2 | |||||
Other | 7 | 3 | ||||||
Other Costs and Eliminations | (17 | ) | (14 | ) | ||||
Other Operating Income (Expense), net | (1 | ) | (1 | ) | ||||
Total Operating Income | $ | 99 | $ | 98 | ||||
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
2008 | 2007 | ||||||||||||||||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||
Sales Realization | Units | ||||||||||||||||||||||||||||
Southern Resources | |||||||||||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 29 | $ | 26 | $ | 25 | $ | 27 | $ | 32 | $ | 31 | $ | 31 | $ | 30 | $ | 31 | ||||||||||
Pulpwood | $/Ton Stumpage | $ | 10 | $ | 10 | $ | 10 | $ | 10 | $ | 9 | $ | 9 | $ | 9 | $ | 9 | $ | 9 | ||||||||||
Northern Resources | |||||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 67 | $ | 68 | $ | 74 | $ | 70 | $ | 71 | $ | 76 | $ | 76 | $ | 71 | $ | 73 | ||||||||||
Pulpwood | $/Ton Delivered | $ | 39 | $ | 43 | $ | 45 | $ | 42 | $ | 37 | $ | 38 | $ | 36 | $ | 38 | $ | 37 | ||||||||||
Lumber (1) | $/MBF | $ | 366 | $ | 367 | $ | 384 | $ | 372 | $ | 390 | $ | 400 | $ | 405 | $ | 410 | $ | 400 | ||||||||||
Plywood (1) | $/MSF | $ | 398 | $ | 404 | $ | 396 | $ | 399 | $ | 398 | $ | 407 | $ | 416 | $ | 399 | $ | 405 | ||||||||||
Fiberboard (1) | $/MSF | $ | 591 | $ | 600 | $ | 610 | $ | 600 | $ | 490 | $ | 529 | $ | 542 | $ | 538 | $ | 525 | ||||||||||
Sales Volume | |||||||||||||||||||||||||||||
Southern Resources | |||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,459 | 1,666 | 1,425 | 4,550 | 1,681 | 1,691 | 1,639 | 1,401 | 6,412 | |||||||||||||||||||
Pulpwood | 1,000 Tons | 1,976 | 2,221 | 2,089 | 6,286 | 1,954 | 1,901 | 1,841 | 2,020 | 7,716 | |||||||||||||||||||
Total Harvest | 3,435 | 3,887 | 3,514 | 10,836 | 3,635 | 3,592 | 3,480 | 3,421 | 14,128 | ||||||||||||||||||||
Northern Resources | |||||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 978 | 739 | 828 | 2,545 | 960 | 789 | 821 | 1,032 | 3,602 | |||||||||||||||||||
Pulpwood | 1,000 Tons | 738 | 504 | 725 | 1,967 | 819 | 527 | 635 | 645 | 2,626 | |||||||||||||||||||
Total Harvest | 1,716 | 1,243 | 1,553 | 4,512 | 1,779 | 1,316 | 1,456 | 1,677 | 6,228 | ||||||||||||||||||||
Lumber | MBF | 69,596 | 83,477 | 74,100 | 227,173 | 95,265 | 95,701 | 82,217 | 77,248 | 350,431 | |||||||||||||||||||
Plywood | MSF | 68,746 | 68,616 | 62,112 | 199,474 | 72,582 | 72,454 | 69,796 | 62,614 | 277,446 | |||||||||||||||||||
Fiberboard | MSF | 58,784 | 63,205 | 44,371 | 166,360 | 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 | 3rd Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||
Acres Sold | |||||||||||||||||||||||||||
Small Non-strategic | 17,145 | 13,215 | 14,800 | 45,160 | 8,645 | 21,255 | 30,735 | 16,895 | 77,530 | ||||||||||||||||||
Large Non-strategic | — | — | — | — | — | — | — | 99,325 | 99,325 | ||||||||||||||||||
Conservation | 1,015 | 595 | 39,880 | 41,490 | 4,210 | 480 | 2,650 | 24,505 | 31,845 | ||||||||||||||||||
HBU/Recreation | 10,635 | 11,785 | 15,640 | 38,060 | 3,750 | 8,695 | 10,400 | 14,220 | 37,065 | ||||||||||||||||||
Development Properties | 65 | 700 | 10 | 775 | 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 | n/a | ||||||||||||||||||
28,860 | 26,295 | 70,330 | 125,485 | 16,650 | 31,025 | 44,675 | 158,705 | 251,055 | |||||||||||||||||||
Price per Acre | |||||||||||||||||||||||||||
Small Non-strategic | $ | 1,180 | $ | 1,285 | $ | 1,145 | $ | 1,200 | $ | 1,445 | $ | 1,295 | $ | 1,400 | $ | 1,510 | $ | 1,400 | |||||||||
Large Non-strategic | — | — | — | — | — | — | — | $ | 705 | $ | 705 | ||||||||||||||||
Conservation | $ | 395 | $ | 1,555 | $ | 1,035 | $ | 1,030 | $ | 1,740 | $ | 6,660 | $ | 2,150 | $ | 1,080 | $ | 1,340 | |||||||||
HBU/Recreation | $ | 2,875 | $ | 2,740 | $ | 3,220 | $ | 2,975 | $ | 4,300 | $ | 3,150 | $ | 3,675 | $ | 3,315 | $ | 3,475 | |||||||||
Development Properties | $ | 5,825 | $ | 9,630 | $ | 13,130 | $ | 9,045 | $ | 22,045 | $ | 21,260 | $ | 8,410 | $ | 7,640 | $ | 9,440 | |||||||||
Conservation Easements | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Revenue, ($ millions) | |||||||||||||||||||||||||||
Small Non-strategic | $ | 20 | $ | 17 | $ | 17 | $ | 54 | $ | 13 | $ | 28 | $ | 43 | $ | 26 | $ | 110 | |||||||||
Large Non-strategic | — | — | — | — | — | — | — | $ | 70 | $ | 70 | ||||||||||||||||
Conservation | — | $ | 1 | $ | 41 | $ | 42 | $ | 7 | $ | 3 | $ | 6 | $ | 26 | $ | 42 | ||||||||||
HBU/Recreation | $ | 31 | $ | 32 | $ | 50 | $ | 113 | $ | 16 | $ | 27 | $ | 38 | $ | 47 | $ | 128 | |||||||||
Development Properties | — | $ | 7 | — | $ | 7 | $ | 1 | $ | 13 | $ | 7 | $ | 29 | $ | 50 | |||||||||||
Conservation Easements | — | — | �� | — | — | — | — | — | — | — | |||||||||||||||||
$ | 52 | $ | 57 | $ | 108 | $ | 217 | $ | 37 | $ | 71 | $ | 94 | $ | 198 | $ | 400 | ||||||||||
Proceeds from Joint Ventures(1) | — | — | — | — | $ | 2 | — | — | — | $ | 2 | ||||||||||||||||
Basis of Real Estate Sold (2) | $ | 10 | $ | 13 | $ | 26 | $ | 49 | $ | 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 |
PLUM CREEK TIMBER COMPANY, INC.
DEBT MATURITIES SCHEDULE
September 30, 2008
(UNAUDITED)
Borrowings(1) | ||||||
Principal | Weighted Avg. Interest Rate | |||||
Quarterly Maturities through 2010: | ||||||
4th Qtr 2008 | $ | 100 | 7.405% | (2) | ||
1st Qtr 2009 | 50 | 7.670% | ||||
3rd Qtr 2009 | 150 | 8.730% | ||||
1st Qtr 2010 | 55 | 5.480% | ||||
4th Qtr 2010 | 4 | 8.050% | ||||
Annual Maturities through 2014: | ||||||
2011 | 424 | 7.738% | (3) | |||
2012 | 604 | — | (4) | |||
2013 | 257 | 6.668% | (5) | |||
2014 | 4 | 8.050% |
(1) | Does not include repayments on the company’s $750 million revolving line of credit due in 2011. |
(2) | Principal amount composed of senior notes with principal amounts of $25 million and $75 million and interest rates of 7.870% and 7.250%, respectively. |
(3) | Principal amount composed of senior notes with principal amounts of $75 million, $4 million, $295 million and $50 million and interest rates of 7.970%, 8.050%, 7.660% and 7.830%, respectively. |
(4) | Includes $600 million of maturities for the company’s two term credit agreements and senior notes with principal of $4 million and an interest rate of 8.050%. The interest rate on the $350 million term credit agreement is currently based on LIBOR plus 0.45%. The interest rate on the $250 million term credit agreement is currently based on LIBOR plus 1.00%. |
(5) | Principal amount composed of senior notes with principal amounts of $4 million, $75 million and $178 million and interest rates of 8.050%, 7.760% and 6.180%, respectively. |