Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 151 | $ | 139 | ||||
Real Estate | 99 | 268 | ||||||
Manufacturing | 60 | 58 | ||||||
Other | 7 | 5 | ||||||
Total Revenues | 317 | 470 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 109 | 108 | ||||||
Real Estate | 35 | 95 | ||||||
Manufacturing | 54 | 76 | ||||||
Other | — | — | ||||||
Total Cost of Goods Sold | 198 | 279 | ||||||
Selling, General and Administrative | 29 | 32 | ||||||
Total Costs and Expenses | 227 | 311 | ||||||
Other Operating Income (Expense), net | 5 | — | ||||||
Operating Income | 95 | 159 | ||||||
Equity Earnings from Timberland Venture | 14 | 15 | ||||||
Interest Expense, net: | ||||||||
Interest Expense (Debt Obligations to Unrelated Parties) | 20 | 24 | ||||||
Interest Expense (Note Payable to Timberland Venture) | 14 | 14 | ||||||
Total Interest Expense, net | 34 | 38 | ||||||
Gain on Extinguishment of Debt | — | 1 | ||||||
Income before Income Taxes | 75 | 137 | ||||||
Benefit for Income Taxes | (1 | ) | (20 | ) | ||||
Income from Continuing Operations | 76 | 157 | ||||||
Gain on Sale of Properties, net of tax | 11 | — | ||||||
Net Income | $ | 87 | $ | 157 | ||||
Per Share Amounts: | ||||||||
Income from Continuing Operations - Basic | $ | 0.47 | $ | 0.95 | ||||
Income from Continuing Operations - Diluted | $ | 0.47 | $ | 0.95 | ||||
Net Income per Share - Basic | $ | 0.54 | $ | 0.95 | ||||
Net Income per Share - Diluted | $ | 0.54 | $ | 0.95 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 162.9 | 164.7 | ||||||
- Diluted | 163.1 | 164.8 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, 2010 | December 31, 2009 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 304 | $ | 299 | ||||
Accounts Receivable | 32 | 24 | ||||||
Taxes Receivable | 15 | 15 | ||||||
Inventories | 49 | 46 | ||||||
Deferred Tax Asset | 7 | 6 | ||||||
Assets Held for Sale | 87 | 115 | ||||||
Other Current Assets | 22 | 14 | ||||||
516 | 519 | |||||||
Timber and Timberlands, net | 3,477 | 3,487 | ||||||
Property, Plant and Equipment, net | 153 | 156 | ||||||
Equity Investment in Timberland Venture | 187 | 201 | ||||||
Deferred Tax Asset | 12 | 14 | ||||||
Investment in Grantor Trusts (at Fair Value) | 33 | 33 | ||||||
Other Assets | 36 | 38 | ||||||
Total Assets | $ | 4,414 | $ | 4,448 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 51 | $ | 55 | ||||
Accounts Payable | 35 | 32 | ||||||
Interest Payable | 34 | 25 | ||||||
Wages Payable | 9 | 20 | ||||||
Taxes Payable | 13 | 14 | ||||||
Deferred Revenue | 15 | 16 | ||||||
Other Current Liabilities | 12 | 21 | ||||||
169 | 183 | |||||||
Long-Term Debt | 1,577 | 1,625 | ||||||
Line of Credit | 320 | 320 | ||||||
Note Payable to Timberland Venture | 783 | 783 | ||||||
Other Liabilities | 79 | 71 | ||||||
Total Liabilities | 2,928 | 2,982 | ||||||
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) - 162.9 at March 31, 2010, and 162.8 at December 31, 2009 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,236 | 2,233 | ||||||
Retained Earnings | 129 | 110 | ||||||
Treasury Stock, at cost, Common Shares - 24.8 at March 31, 2010, and 24.8 at December 31, 2009 | (861 | ) | (860 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (20 | ) | (19 | ) | ||||
Total Stockholders’ Equity | 1,486 | 1,466 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,414 | $ | 4,448 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended | ||||||||
March 31, 2010 | March 31, 2009 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 87 | $ | 157 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Depreciation, Depletion and Amortization (includes $10 Lumber Impairment Loss in 2009) | 24 | 33 | ||||||
Basis of Real Estate Sold | 32 | 89 | ||||||
Equity Earnings from Timberland Venture | (14 | ) | (15 | ) | ||||
Distributions from Timberland Venture | 28 | 25 | ||||||
Deferred Income Taxes | 1 | (17 | ) | |||||
Gain on Sales of Properties | (11 | ) | — | |||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | 8 | (2 | ) | |||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Like-Kind Exchange Funds | — | 45 | ||||||
Other Working Capital Changes | (32 | ) | (31 | ) | ||||
Other | 6 | — | ||||||
Net Cash Provided By Operating Activities | 129 | 284 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (13 | ) | (17 | ) | ||||
Proceeds from Sales of Properties | 11 | — | ||||||
Net Cash Used In Investing Activities | (2 | ) | (17 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (68 | ) | (69 | ) | ||||
Borrowings on Line of Credit | 568 | 225 | ||||||
Repayments on Line of Credit | (568 | ) | (245 | ) | ||||
Principal Payments and Retirement of Long-Term Debt | (53 | ) | (105 | ) | ||||
Acquisition of Treasury Stock | (1 | ) | (87 | ) | ||||
Net Cash Used In Financing Activities | (122 | ) | (281 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | 5 | (14 | ) | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 299 | 369 | ||||||
End of Period | $ | 304 | $ | 355 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Three Months 2010 | Three Months 2009 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 59 | $ | 57 | ||||
Southern Resources | 98 | 83 | ||||||
Real Estate | 99 | 268 | ||||||
Manufacturing | 60 | 58 | ||||||
Other | 7 | 5 | ||||||
Eliminations | (6 | ) | (1 | ) | ||||
Total Revenues | $ | 317 | $ | 470 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 4 | $ | 2 | ||||
Southern Resources | 30 | 20 | ||||||
Real Estate | 62 | 170 | ||||||
Manufacturing | 4 | (22 | ) | |||||
Other(A) | 11 | 5 | ||||||
Other Costs and Eliminations | (16 | ) | (16 | ) | ||||
Other Unallocated Operating Income (Expense), net | — | — | ||||||
Total Operating Income | $ | 95 | $ | 159 | ||||
(A) | During the first quarter of 2010, the company agreed to terminate a land lease for consideration of $5 million from the lessor. The land lease had been accounted for as an operating lease. The $5 million consideration is reported as other gain/loss in our Other Segment since the consideration was primarily for the release of mineral rights. The $5 million consideration is reported as Other Operating Income (Expense), net in our Consolidated Statements of Income. |
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
2010 | 2009 | |||||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||
Sales Realization | Units | |||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 23 | $ | 24 | $ | 22 | $ | 22 | $ | 21 | $ | 22 | |||||||
Pulpwood | $/Ton Stumpage | $ | 13 | $ | 11 | $ | 9 | $ | 9 | $ | 10 | $ | 10 | |||||||
Northern Resources | ||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 59 | $ | 57 | $ | 50 | $ | 56 | $ | 56 | $ | 55 | |||||||
Pulpwood | $/Ton Delivered | $ | 38 | $ | 43 | $ | 38 | $ | 38 | $ | 38 | $ | 40 | |||||||
Lumber (1) | $/MBF | $ | 501 | $ | 374 | $ | 340 | $ | 448 | $ | 477 | $ | 397 | |||||||
Plywood (1) | $/MSF | $ | 352 | $ | 362 | $ | 353 | $ | 361 | $ | 352 | $ | 357 | |||||||
Fiberboard (1) | $/MSF | $ | 588 | $ | 601 | $ | 593 | $ | 596 | $ | 599 | $ | 597 | |||||||
Sales Volume | ||||||||||||||||||||
Southern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 1,274 | 942 | 1,217 | 1,250 | 993 | 4,402 | |||||||||||||
Pulpwood | 1,000 Tons | 1,526 | 1,487 | 1,849 | 2,014 | 1,649 | 6,999 | |||||||||||||
Total Harvest | 2,800 | 2,429 | 3,066 | 3,264 | 2,642 | 11,401 | ||||||||||||||
Northern Resources | ||||||||||||||||||||
Sawlog | 1,000 Tons | 627 | 525 | 371 | 632 | 609 | 2,137 | |||||||||||||
Pulpwood | 1,000 Tons | 527 | 613 | 397 | 691 | 567 | 2,268 | |||||||||||||
Total Harvest | 1,154 | 1,138 | 768 | 1,323 | 1,176 | 4,405 | ||||||||||||||
Lumber | MBF | 28,791 | 35,123 | 60,371 | 40,590 | 28,428 | 164,512 | |||||||||||||
Plywood | MSF | 45,104 | 35,439 | 40,729 | 41,479 | 37,271 | 154,918 | |||||||||||||
Fiberboard | MSF | 35,347 | 34,044 | 32,802 | 34,282 | 30,964 | 132,092 |
(1) | Represents prices at mill level. |
Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)
2010 | 2009 | |||||||||||||||||
1st Qtr (1) | 1st Qtr (2) | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||
Acres Sold | ||||||||||||||||||
Small Non-strategic | 29,640 | 1,665 | 9,840 | 5,545 | 2,570 | 19,620 | ||||||||||||
Large Non-strategic | 24,310 | — | 59,160 | — | — | 59,160 | ||||||||||||
Conservation | 35,120 | 113,355 | 3,895 | 43,695 | 4,910 | 165,855 | ||||||||||||
HBU/Recreation | 9,080 | 2,180 | 10,955 | 10,440 | 26,700 | 50,275 | ||||||||||||
Development Properties | 730 | 1,485 | 25 | 515 | 35 | 2,060 | ||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||
98,880 | 118,685 | 83,875 | 60,195 | 34,215 | 296,970 | |||||||||||||
Price per Acre | ||||||||||||||||||
Small Non-strategic | $ | 885 | $ | 1,330 | $ | 900 | $ | 970 | $ | 855 | $ | 950 | ||||||
Large Non-strategic | $ | 1,320 | — | $ | 650 | — | — | $ | 650 | |||||||||
Conservation | $ | 545 | $ | 2,225 | $ | 1,705 | $ | 350 | $ | 1,280 | $ | 1,690 | ||||||
HBU/Recreation | $ | 2,125 | $ | 3,420 | $ | 2,200 | $ | 2,115 | $ | 2,200 | $ | 2,235 | ||||||
Development Properties | $ | 3,050 | $ | 4,075 | $ | 13,650 | $ | 9,190 | $ | 7,485 | $ | 5,520 | ||||||
Conservation Easements | — | — | — | — | — | — | ||||||||||||
Revenue, ($ millions) | ||||||||||||||||||
Small Non-strategic | $ | 26 | $ | 2 | $ | 9 | $ | 5 | $ | 2 | $ | 19 | ||||||
Large Non-strategic | $ | 32 | — | $ | 38 | — | — | $ | 38 | |||||||||
Conservation | $ | 19 | $ | 252 | $ | 7 | $ | 15 | $ | 6 | $ | 280 | ||||||
HBU/Recreation | $ | 19 | $ | 7 | $ | 24 | $ | 22 | $ | 59 | $ | 112 | ||||||
Development Properties | $ | 2 | $ | 6 | — | $ | 5 | — | $ | 12 | ||||||||
Conservation Easements | — | — | — | — | — | — | ||||||||||||
$ | 99 | $ | 268 | $ | 78 | $ | 48 | $ | 67 | $ | 461 | |||||||
Revenue from Non-Cash Exchange (3) | — | — | — | $ | 25 | — | $ | 25 | ||||||||||
Basis of Real Estate Sold (4) | $ | 32 | $ | 89 | $ | 29 | $ | 21 | $ | 16 | $ | 155 |
(1) | During the first quarter of 2010 the company sold 24,000 acres of Large Non-strategic lands located in Louisiana for $32 million. In addition, the company sold two larger Conservation properties totaling 35,000 acres in Wisconsin and Arkansas and an aggregation of 23,000 acres of Small Non-strategic timberlands located primarily in the Lake States region. |
(2) | 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. |
(3) | During the 3rd quarter of 2009 we completed a non-cash exchange with the State of Washington. We relinquished 20,600 acres, in King County, in exchange for 37 parcels containing more than 6,000 acres in nine counties. |
(4) | Includes $7 million in the first quarter of 2010 for a 24,000 acre Large Non-strategic sale in Louisiana, $16 million in the second quarter of 2009 for a 59,000 acre Large Non-strategic sale in Wisconsin and $85 million in the first quarter of 2009 for a 112,000 acre Conservation sale in Montana. |
PLUM CREEK TIMBER COMPANY, INC.
DEBT MATURITIES SCHEDULE
March 31, 2010
(UNAUDITED)
Borrowings (1) | |||||
Principal | Weighted Avg. Interest Rate | ||||
Quarterly Maturities through 2010: | |||||
4th Qtr 2010 | 3 | 8.050 | % | ||
Annual Maturities through 2014: | |||||
2011 | 308 | 7.732 | %(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 $40 million, $3 million, $216 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, $73 million and $174 million and interest rates of 8.050%, 7.760% and 6.180%, respectively. |