Exhibit 99.2
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended | ||||||||
March 31, 2011 | March 31, 2010 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
Revenues: | ||||||||
Timber | $ | 141 | $ | 151 | ||||
Real Estate | 62 | 99 | ||||||
Manufacturing | 67 | 60 | ||||||
Other | 5 | 7 | ||||||
Total Revenues | 275 | 317 | ||||||
Costs and Expenses: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 107 | 109 | ||||||
Real Estate | 22 | 35 | ||||||
Manufacturing | 61 | 54 | ||||||
Other | — | — | ||||||
Total Cost of Goods Sold | 190 | 198 | ||||||
Selling, General and Administrative | 28 | 29 | ||||||
Total Costs and Expenses | 218 | 227 | ||||||
Other Operating Income (Expense), net | 3 | 5 | ||||||
Operating Income | 60 | 95 | ||||||
Equity Earnings from Timberland Venture | 14 | 14 | ||||||
Interest Expense, net: | ||||||||
Interest Expense (Debt Obligations to Unrelated Parties) | 21 | 20 | ||||||
Interest Expense (Note Payable to Timberland Venture) | 14 | 14 | ||||||
Total Interest Expense, net | 35 | 34 | ||||||
Income before Income Taxes | 39 | 75 | ||||||
Provision (Benefit) for Income Taxes | 1 | (1 | ) | |||||
Income from Continuing Operations | 38 | 76 | ||||||
Gain on Sale of Properties, net of tax | — | 11 | ||||||
Net Income | $ | 38 | $ | 87 | ||||
Per Share Amounts: | ||||||||
Income from Continuing Operations – Basic | $ | 0.23 | $ | 0.47 | ||||
Income from Continuing Operations – Diluted | $ | 0.23 | $ | 0.47 | ||||
Net Income per Share – Basic | $ | 0.23 | $ | 0.54 | ||||
Net Income per Share – Diluted | $ | 0.23 | $ | 0.54 | ||||
Dividends Declared – per Common Share Outstanding | $ | 0.42 | $ | 0.42 | ||||
Weighted Average Number of Shares Outstanding | ||||||||
- Basic | 161.8 | 162.9 | ||||||
- Diluted | 162.1 | 163.1 |
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, 2011 | December 31, 2010 | |||||||
(In Millions, Except Per Share Amounts) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 254 | $ | 252 | ||||
Accounts Receivable | 32 | 21 | ||||||
Taxes Receivable | 4 | 2 | ||||||
Inventories | 52 | 49 | ||||||
Deferred Tax Asset | 8 | 7 | ||||||
Assets Held for Sale | 38 | 57 | ||||||
Other Current Assets | 15 | 22 | ||||||
403 | 410 | |||||||
Timber and Timberlands, net | 3,398 | 3,405 | ||||||
Property, Plant and Equipment, net | 144 | 146 | ||||||
Equity Investment in Timberland Venture | 187 | 201 | ||||||
Deferred Tax Asset | 6 | 10 | ||||||
Investment in Grantor Trusts (at Fair Value) | 37 | 35 | ||||||
Other Assets | 42 | 44 | ||||||
Total Assets | $ | 4,217 | $ | 4,251 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 45 | $ | 94 | ||||
Line of Credit | 215 | 166 | ||||||
Accounts Payable | 30 | 25 | ||||||
Interest Payable | 26 | 23 | ||||||
Wages Payable | 8 | 23 | ||||||
Taxes Payable | 10 | 12 | ||||||
Deferred Revenue | 20 | 25 | ||||||
Other Current Liabilities | 9 | 7 | ||||||
363 | 375 | |||||||
Long-Term Debt | 1,643 | 1,643 | ||||||
Note Payable to Timberland Venture | 783 | 783 | ||||||
Other Liabilities | 75 | 76 | ||||||
Total Liabilities | 2,864 | 2,877 | ||||||
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 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,252 | 2,243 | ||||||
Retained Earnings | 21 | 51 | ||||||
Treasury Stock, at cost, Common Shares – 26.2 at March 31, 2011, | (912 | ) | (911 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (10 | ) | (11 | ) | ||||
Total Stockholders’ Equity | 1,353 | 1,374 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,217 | $ | 4,251 | ||||
PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended | ||||||||
March 31, 2011 | March 31, 2010 | |||||||
(In Millions) | ||||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 38 | $ | 87 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 22 | 24 | ||||||
Basis of Real Estate Sold | 19 | 32 | ||||||
Equity Earnings from Timberland Venture | (14 | ) | (14 | ) | ||||
Distributions from Timberland Venture | 28 | 28 | ||||||
Deferred Income Taxes | 3 | 1 | ||||||
Gain on Sales of Properties and Other Assets | — | (11 | ) | |||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | 7 | 8 | ||||||
Working Capital Changes | (30 | ) | (32 | ) | ||||
Other | 3 | 6 | ||||||
Net Cash Provided By Operating Activities | 76 | 129 | ||||||
Cash Flows From Investing Activities: | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (12 | ) | (13 | ) | ||||
Proceeds from Sales of Properties and Other Assets | — | 11 | ||||||
Net Cash Used In Investing Activities | (12 | ) | (2 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Dividends | (68 | ) | (68 | ) | ||||
Borrowings on Line of Credit | 245 | 568 | ||||||
Repayments on Line of Credit | (196 | ) | (568 | ) | ||||
Principal Payments and Retirement of Long-Term Debt | (49 | ) | (53 | ) | ||||
Proceeds from Stock Option Exercises | 7 | — | ||||||
Acquisition of Treasury Stock | (1 | ) | (1 | ) | ||||
Net Cash Used In Financing Activities | (62 | ) | (122 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | 2 | 5 | ||||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 252 | 299 | ||||||
End of Period | $ | 254 | $ | 304 | ||||
Plum Creek Timber Company, Inc.
Segment Data
(Unaudited)
Three Months Ended | ||||||||
March 31, 2011 | March 31, 2010 | |||||||
(In Millions) | ||||||||
Revenues: | ||||||||
Northern Resources | $ | 55 | $ | 59 | ||||
Southern Resources | 89 | 98 | ||||||
Real Estate | 62 | 99 | ||||||
Manufacturing | 67 | 60 | ||||||
Other | 5 | 7 | ||||||
Eliminations | (3 | ) | (6 | ) | ||||
Total Revenues | $ | 275 | $ | 317 | ||||
Operating Income (Loss) | ||||||||
Northern Resources | $ | 7 | $ | 4 | ||||
Southern Resources | 19 | 30 | ||||||
Real Estate | 38 | 62 | ||||||
Manufacturing | 4 | 4 | ||||||
Other(A) | 7 | 11 | ||||||
Other Costs and Eliminations, net | (15 | ) | (16 | ) | ||||
Total Operating Income | $ | 60 | $ | 95 | ||||
(A) | During the first quarter of 2011, the company received a payment of $2 million for the settlement of a dispute that related to certain mineral rights. During the first quarter of 2010, the company agreed to terminate a land lease, accounted for as an operating lease, for consideration of $5 million from the lessor. The consideration was primarily for the release of mineral rights. These amounts are reported as Other Operating Gain/(Loss) in our Other Segment and are included in Other Operating Income (Expense), net in the Consolidated Statements of Income. |
Plum Creek Timber Company, Inc
Selected Operating Statistics
(Unaudited)
2011 | 2010 | |||||||||||||||||||||||||
1st Qtr | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | |||||||||||||||||||||
Sales Realization | Units | |||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Stumpage | $ | 20 | $ | 23 | $ | 23 | $ | 23 | $ | 22 | $ | 23 | |||||||||||||
Pulpwood | $/Ton Stumpage | $ | 10 | $ | 13 | $ | 12 | $ | 11 | $ | 10 | $ | 12 | |||||||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | $/Ton Delivered | $ | 69 | $ | 59 | $ | 66 | $ | 66 | $ | 62 | $ | 63 | |||||||||||||
Pulpwood | $/Ton Delivered | $ | 40 | $ | 38 | $ | 38 | $ | 39 | $ | 39 | $ | 39 | |||||||||||||
Lumber (1) | $/MBF | $ | 533 | $ | 501 | $ | 522 | $ | 490 | $ | 514 | $ | 507 | |||||||||||||
Plywood (1) | $/MSF | $ | 371 | $ | 352 | $ | 397 | $ | 388 | $ | 374 | $ | 378 | |||||||||||||
Fiberboard (1) | $/MSF | $ | 608 | $ | 588 | $ | 607 | $ | 629 | $ | 598 | $ | 606 | |||||||||||||
Sales Volume | ||||||||||||||||||||||||||
Southern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 1,286 | 1,274 | 1,122 | 1,209 | 1,416 | 5,021 | |||||||||||||||||||
Pulpwood | 1,000 Tons | 1,494 | 1,526 | 1,448 | 1,674 | 1,798 | 6,446 | |||||||||||||||||||
Total Harvest | 2,780 | 2,800 | 2,570 | 2,883 | 3,214 | 11,467 | ||||||||||||||||||||
Northern Resources | ||||||||||||||||||||||||||
Sawlog | 1,000 Tons | 506 | 627 | 484 | 537 | 486 | 2,134 | |||||||||||||||||||
Pulpwood | 1,000 Tons | 478 | 527 | 348 | 517 | 431 | 1,823 | |||||||||||||||||||
Total Harvest | 984 | 1,154 | 832 | 1,054 | 917 | 3,957 | ||||||||||||||||||||
Lumber | MBF | 29,250 | 28,791 | 30,813 | 29,305 | 27,181 | 116,090 | |||||||||||||||||||
Plywood | MSF | 44,156 | 45,104 | 47,002 | 44,223 | 36,387 | 172,716 | |||||||||||||||||||
Fiberboard | MSF | 40,690 | 35,347 | 50,010 | 39,394 | 32,266 | 157,017 |
(1) | Represents prices at mill level. |
Plum Creek Timber Company, Inc.
Land Sale Statistics
(Unaudited)
2011 | 2010 | |||||||||||||||||||||||
1st Qtr (1) | 1st Qtr (2) | 2nd Qtr | 3rd Qtr | 4th Qtr (3) | YTD | |||||||||||||||||||
Acres Sold | ||||||||||||||||||||||||
Small Non-strategic | 2,560 | 29,640 | 1,950 | 10,270 | 21,375 | 63,235 | ||||||||||||||||||
Large Non-strategic | 30,295 | 24,310 | — | — | — | 24,310 | ||||||||||||||||||
Conservation | 335 | 35,120 | 215 | 2,870 | 77,900 | 116,105 | ||||||||||||||||||
HBU/Recreation | 7,795 | 9,080 | 18,175 | 9,870 | 16,140 | 53,265 | ||||||||||||||||||
Development Properties | — | 730 | 60 | — | 55 | 845 | ||||||||||||||||||
Conservation Easements | n/a | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||
40,985 | 98,880 | 20,400 | 23,010 | 115,470 | 257,760 | |||||||||||||||||||
Price per Acre | ||||||||||||||||||||||||
Small Non-strategic | $ | 1,015 | $ | 885 | $ | 1,120 | $ | 1,025 | $ | 1,045 | $ | 970 | ||||||||||||
Large Non-strategic | $ | 1,405 | $ | 1,320 | — | — | — | $ | 1,320 | |||||||||||||||
Conservation | $ | 1,685 | $ | 545 | $ | 1,450 | $ | 1,865 | $ | 1,245 | $ | 1,050 | ||||||||||||
HBU/Recreation | $ | 2,100 | $ | 2,125 | $ | 2,210 | $ | 2,335 | $ | 1,950 | $ | 2,140 | ||||||||||||
Development Properties | — | $ | 3,050 | $ | 5,985 | — | $ | 5,535 | $ | 3,415 | ||||||||||||||
Conservation Easements | — | — | — | — | $ | 455 | $ | 455 | ||||||||||||||||
Revenue, ($ millions) | ||||||||||||||||||||||||
Small Non-strategic | $ | 3 | $ | 26 | $ | 2 | $ | 11 | $ | 22 | $ | 61 | ||||||||||||
Large Non-strategic | $ | 43 | $ | 32 | — | — | — | $ | 32 | |||||||||||||||
Conservation | $ | 1 | $ | 19 | — | $ | 5 | $ | 97 | $ | 122 | |||||||||||||
HBU/Recreation | $ | 16 | $ | 19 | $ | 40 | $ | 23 | $ | 31 | $ | 114 | ||||||||||||
Development Properties | — | $ | 2 | — | — | — | $ | 3 | ||||||||||||||||
Conservation Easements | — | — | — | — | $ | 4 | $ | 4 | ||||||||||||||||
$ | 62 | $ | 99 | $ | 43 | $ | 39 | $ | 155 | $ | 336 | |||||||||||||
Basis of Real Estate Sold(4) | $ | 19 | $ | 32 | $ | 11 | $ | 14 | $ | 75 | $ | 132 |
(1) | During the first quarter of 2011 the company sold 30,300 acres of Large Non-strategic lands located in Mississippi for $42.6 million. |
(2) | 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. |
(3) | During the fourth quarter of 2010 the company sold 69,600 acres in Montana to a conservation buyer for $88.8 million. The sale is presented as a Conservation sale. The transaction included 60,900 acres of Conservation property and 8,700 acres of HBU property. |
(4) | Includes $13 million in the first quarter of 2011 from a 30,300 acre Large Non-strategic sale in Mississippi, $52 million in the fourth quarter of 2010 from a 69,600 acre conservation sale in Montana, and $7 million in the first quarter of 2010 for a 24,000 acre Large Non-strategic sale in Louisiana. |
PLUM CREEK TIMBER COMPANY, INC.
DEBT MATURITIES SCHEDULE
March 31, 2011
(UNAUDITED)
Borrowings | ||||||||
Principal | Weighted Avg. Interest Rate | |||||||
Quarterly Maturities through 2012: | ||||||||
4th Qtr 2011 | $ | 46 | 7.712 | % (1) | ||||
2nd Qtr 2012 | $ | 350 | — | (2) | ||||
4th Qtr 2012 | $ | 3 | 8.050 | % | ||||
Annual Maturities through 2014: | ||||||||
2013 | $ | 250 | 6.663 | % (3) | ||||
2014 | $ | 3 | 8.050 | % |
(1) | Principal amount composed of senior notes with principal amounts of $3 million, $3 million and $40 million and interest rates of 7.970%, 8.050% and 7.660% , respectively. |
(2) | Represents the company’s term credit agreement. As of March 31, 2011, the interest rate is based on LIBOR plus 0.45%. |
(3) | 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. |