Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | ||||||||
March 31, 2009 | March 31, 2008 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 139 | $ | 201 | ||||
Real Estate | 268 | 52 | ||||||
Manufacturing | 58 | 105 | ||||||
Other | 5 | 5 | ||||||
Total Revenues | 470 | 363 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 108 | 139 | ||||||
Real Estate | 95 | 16 | ||||||
Manufacturing | 76 | 112 | ||||||
Other | — | — | ||||||
Total Cost of Goods Sold | 279 | 267 | ||||||
Selling, General and Administrative | 32 | 30 | ||||||
Total Costs and Expenses | 311 | 297 | ||||||
Other Operating Income (Expense), net | — | 3 | ||||||
Operating Income | 159 | 69 | ||||||
Equity Earnings from Timberland Venture | 15 | — | ||||||
Interest Expense, net: | ||||||||
Interest Expense (Debt Obligations to Unrelated Parties) | 24 | 36 | ||||||
Interest Expense (Note Payable to Timberland Venture) | 14 | — | ||||||
Total Interest Expense, net | 38 | 36 | ||||||
Gain on Extinguishment of Debt | 1 | — | ||||||
Income before Income Taxes | 137 | 33 | ||||||
Benefit for Income Taxes | (20 | ) | (5 | ) | ||||
Net Income | $ | 157 | $ | 38 | ||||
Per Share Amounts: | ||||||||
Net Income per Share - Basic | $ | 0.95 | $ | 0.22 | ||||
Net Income per Share - Diluted | $ | 0.95 | $ | 0.22 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 164.7 | 171.6 | ||||||
- Diluted | 164.8 | 172.1 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, 2009 | December 31, 2008 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 355 | $ | 369 | ||||
Accounts Receivable | 29 | 22 | ||||||
Like-Kind Exchange Funds Held in Escrow | 3 | 48 | ||||||
Taxes Receivable | 24 | 23 | ||||||
Inventories | 66 | 74 | ||||||
Deferred Tax Asset | 13 | 11 | ||||||
Real Estate Development Properties | 3 | 4 | ||||||
Assets Held for Sale | 79 | 137 | ||||||
Other Current Assets | 17 | 11 | ||||||
589 | 699 | |||||||
Timber and Timberlands, net | 3,609 | 3,638 | ||||||
Property, Plant and Equipment, net | 163 | 177 | ||||||
Equity Investment in Timberland Venture | 189 | 199 | ||||||
Deferred Tax Asset | 11 | — | ||||||
Investment in Grantor Trusts (at Fair Value) | 22 | 25 | ||||||
Other Assets | 41 | 42 | ||||||
Total Assets | $ | 4,624 | $ | 4,780 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 110 | $ | 158 | ||||
Accounts Payable | 32 | 35 | ||||||
Interest Payable | 35 | 30 | ||||||
Wages Payable | 12 | 28 | ||||||
Taxes Payable | 17 | 18 | ||||||
Deferred Revenue | 11 | 17 | ||||||
Other Current Liabilities | 16 | 21 | ||||||
233 | 307 | |||||||
Long-Term Debt | 1,736 | 1,793 | ||||||
Line of Credit | 211 | 231 | ||||||
Note Payable to Timberland Venture | 783 | 783 | ||||||
Deferred Tax Liability | — | 4 | ||||||
Other Liabilities | 87 | 90 | ||||||
Total Liabilities | 3,050 | 3,208 | ||||||
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) - 162.8 at March 31, 2009, and 166.0 at December 31, 2008 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,228 | 2,225 | ||||||
Retained Earnings | 237 | 149 | ||||||
Treasury Stock, at cost, Common Shares - 24.8 at March 31, 2009, and 21.5 at December 31, 2008 | (860 | ) | (773 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (33 | ) | (31 | ) | ||||
Total Stockholders’ Equity | 1,574 | 1,572 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,624 | $ | 4,780 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Quarter Ended | ||||||||
March 31, 2009 | March 31, 2008 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 157 | $ | 38 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2009) | 33 | 33 | ||||||
Basis of Real Estate Sold | 89 | 10 | ||||||
Equity Earnings from Timberland Venture | (15 | ) | — | |||||
Distribution from Timberland Venture | 25 | — | ||||||
Expenditures for Real Estate Development | — | (3 | ) | |||||
Deferred Income Taxes | (17 | ) | (2 | ) | ||||
Gain on Extinguishment of Debt | (1 | ) | — | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | 45 | (31 | ) | |||||
Other Working Capital Changes | (31 | ) | (39 | ) | ||||
Other | (1 | ) | (7 | ) | ||||
Net Cash Provided By (Used In) Operating Activities | 284 | (1 | ) | |||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (17 | ) | (13 | ) | ||||
Timberlands Acquired | — | (1 | ) | |||||
Net Cash Used In Investing Activities | (17 | ) | (14 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (69 | ) | (72 | ) | ||||
Borrowings on Line of Credit | 225 | 477 | ||||||
Repayments on Line of Credit | (245 | ) | (664 | ) | ||||
Proceeds from Issuance of Long-Term Debt | — | 250 | ||||||
Principal Payments and Retirement of Long-Term Debt | (105 | ) | (47 | ) | ||||
Acquisition of Treasury Stock | (87 | ) | (51 | ) | ||||
Net Cash Used In Financing Activities | (281 | ) | (107 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | (14 | ) | (122 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 369 | 240 | ||||||
End of Period | $ | 355 | $ | 118 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Three Months 2009 | Three Months 2008 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 57 | $ | 94 | ||||
Southern Resources | 83 | 122 | ||||||
Real Estate | 268 | 52 | ||||||
Manufacturing | 58 | 105 | ||||||
Other | 5 | 5 | ||||||
Eliminations | (1 | ) | (15 | ) | ||||
Total Revenues | $ | 470 | $ | 363 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 2 | $ | 14 | ||||
Southern Resources | 20 | 37 | ||||||
Real Estate | 170 | 33 | ||||||
Manufacturing | (22 | ) | (9 | ) | ||||
Other | 5 | 5 | ||||||
Other Costs and Eliminations | (16 | ) | (14 | ) | ||||
Other Operating Income (Expense), net | — | 3 | ||||||
Total Operating Income | $ | 159 | $ | 69 | ||||
Plum Creek Timber Company, Inc.
Selected Operating Statistics
(Unaudited)
2009 | 2008 | |||||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Sales Realization | Units | |||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 24 | $ | 29 | $ | 26 | $ | 25 | $ | 26 | $ | 26 | |||||||
Pulpwood | $/Ton Stumpage | $ | 11 | $ | 10 | $ | 10 | $ | 10 | $ | 12 | $ | 10 | |||||||
Northern Resources | ||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 57 | $ | 67 | $ | 68 | $ | 74 | $ | 68 | $ | 69 | |||||||
Pulpwood | $/Ton Delivered | $ | 43 | $ | 39 | $ | 43 | $ | 45 | $ | 44 | $ | 43 | |||||||
Lumber (1) | $/MBF | $ | 374 | $ | 366 | $ | 367 | $ | 384 | $ | 367 | $ | 371 | |||||||
Plywood (1) | $/MSF | $ | 362 | $ | 398 | $ | 404 | $ | 396 | $ | 382 | $ | 397 | |||||||
Fiberboard (1) | $/MSF | $ | 601 | $ | 591 | $ | 600 | $ | 610 | $ | 625 | $ | 604 | |||||||
Sales Volume | ||||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 942 | 1,459 | 1,666 | 1,425 | 1,020 | 5,570 | |||||||||||||
Pulpwood | 1,000 Tons | 1,487 | 1,976 | 2,221 | 2,089 | 1,741 | 8,027 | |||||||||||||
Total Harvest | 2,429 | 3,435 | 3,887 | 3,514 | 2,761 | 13,597 | ||||||||||||||
Northern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 525 | 978 | 739 | 828 | 821 | 3,366 | |||||||||||||
Pulpwood | 1,000 Tons | 613 | 738 | 504 | 725 | 649 | 2,616 | |||||||||||||
Total Harvest | 1,138 | 1,716 | 1,243 | 1,553 | 1,470 | 5,982 | ||||||||||||||
Lumber | MBF | 35,123 | 69,596 | 83,477 | 74,100 | 62,660 | 289,833 | |||||||||||||
Plywood | MSF | 35,439 | 68,746 | 68,616 | 62,112 | 37,509 | 236,983 | |||||||||||||
Fiberboard | MSF | 34,044 | 58,784 | 63,205 | 44,371 | 31,071 | 197,431 |
(1) | Represents prices at mill level. |
Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)
2009 | 2008 | |||||||||||||||||
1st Qtr (1) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr (2) | YTD | |||||||||||||
Acres Sold | ||||||||||||||||||
Small Non-strategic | 1,665 | 17,145 | 13,215 | 14,800 | 47,125 | 92,285 | ||||||||||||
Large Non-strategic | — | — | — | — | — | — | ||||||||||||
Conservation | 113,355 | 1,015 | 595 | 39,880 | 134,250 | 175,740 | ||||||||||||
HBU/Recreation | 2,180 | 10,635 | 11,785 | 15,640 | 7,550 | 45,610 | ||||||||||||
Development Properties | 1,485 | 65 | 700 | 10 | 45 | 820 | ||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||
118,685 | 28,860 | 26,295 | 70,330 | 188,970 | 314,455 | |||||||||||||
Price per Acre | ||||||||||||||||||
Small Non-strategic | $ | 1,330 | $ | 1,180 | $ | 1,285 | $ | 1,145 | $ | 745 | $ | 965 | ||||||
Large Non-strategic | — | — | — | — | — | — | ||||||||||||
Conservation | $ | 2,225 | $ | 395 | $ | 1,555 | $ | 1,035 | $ | 1,170 | $ | 1,140 | ||||||
HBU/Recreation | $ | 3,420 | $ | 2,875 | $ | 2,740 | $ | 3,220 | $ | 2,965 | $ | 2,975 | ||||||
Development Properties | $ | 4,075 | $ | 5,825 | $ | 9,630 | $ | 13,130 | $ | 4,095 | $ | 8,770 | ||||||
Conservation Easements | — | — | — | — | — | — | ||||||||||||
Revenue, ($ millions) | ||||||||||||||||||
Small Non-strategic | $ | 2 | $ | 20 | $ | 17 | $ | 17 | $ | 35 | $ | 89 | ||||||
Large Non-strategic | — | — | — | — | — | — | ||||||||||||
Conservation | $ | 252 | — | $ | 1 | $ | 41 | $ | 157 | $ | 200 | |||||||
HBU/Recreation | $ | 7 | $ | 31 | $ | 32 | $ | 50 | $ | 22 | $ | 136 | ||||||
Development Properties | $ | 6 | — | $ | 7 | — | — | $ | 7 | |||||||||
Conservation Easements | — | — | — | — | — | — | ||||||||||||
$ | 268 | $ | 52 | $ | 57 | $ | 108 | $ | 215 | $ | 432 | |||||||
Basis of Real Estate Sold (3) | $ | 89 | $ | 10 | $ | 13 | $ | 26 | $ | 100 | $ | 149 |
(1) | During the 1st quarter of 2009 we sold 112,000 acres in Montana to a conservation buyer for $250 million. The sale is presented as a Conservation sale. The transaction included 56,000 acres of Conservation property, 10,000 acres of Small Non-strategic property, 45,000 acres of HBU/Recreation property, and 1,000 acres of Development property. |
(2) | During the 4th quarter of 2008 we sold 130,000 acres in Montana to a conservation buyer for $150 million. The sale is presented as a Conservation sale. The transaction included 59,000 acres of Conservation property, 51,000 acres of Small Non-strategic property, 16,000 acres of HBU/Recreation property, and 4,000 acres of Development property. |
(3) | Includes $85 million in the first quarter of 2009 for a 112,000 acre conservation sale in Montana and $75 million in the fourth quarter of 2008 for a 130,000 acre conservation sale in Montana. |
PLUM CREEK TIMBER COMPANY, INC.
DEBT MATURITIES SCHEDULE
MARCH 31, 2009
(UNAUDITED)
Borrowings (1) | ||||
Principal | Weighted Avg. Interest Rate | |||
Quarterly Maturities through 2010: | ||||
3rd Qtr 2009 | 58 | 8.730% | ||
1st Qtr 2010 | 53 | 5.480% | ||
4th Qtr 2010 | 3 | 8.050% | ||
Annual Maturities through 2014: | ||||
2011 | 416 | 7.739%(2) | ||
2012 | 603 | — (3) | ||
2013 | 250 | 6.663%(4) | ||
2014 | 3 | 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 $74 million, $3 million, $290 million and $49 million and interest rates of 7.970%, 8.050%, 7.660% and 7.830%, respectively. |
(3) | Includes $600 million of maturities for the company’s two term credit agreements and senior notes with principal of $3 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%. |
(4) | Principal amount composed of senior notes with principal amounts of $3 million, $72 million and $174 million and interest rates of 8.050%, 7.760% and 6.180%, respectively. |