Plum Creek Legacy News Releases
Plum Creek Reports Results for Fourth Quarter and Full Year 2011
Jan 30, 2012
SEATTLE--(BUSINESS WIRE)--Jan. 30, 2012--
Earnings for the full year of 2011 were
“Plum Creek posted another good year in 2011,” said
“During the past year we acquired 60,000 acres of productive timberland and repurchased
“While we are not anticipating a significant rebound in the economy or housing in 2012, we do expect our cash flow to grow in 2012. We expect cash flow from our timber resource segments to improve in 2012 while we expect cash flows from our other business segments to be generally stable. We are well positioned, and looking forward to continued growth in 2012 and beyond.”
Summary of 2011 Results
The company generated
The company’s harvest level of 15.8 million tons was approximately 2 percent higher than the 2010 harvest of 15.4 million tons. In the North, the total harvest was unchanged. Lower pulpwood harvests in the Northeast were offset by higher sawlog harvests in
In the Real Estate segment, the company reported revenue of
Operating income from the company’s Manufacturing segment was
Review of Quarterly Operations
The Northern Resources segment reported operating profit of
The Southern Resources segment reported fourth quarter operating profit of
During the fourth quarter, the company sold approximately 40,000 acres of land, approximately 18,000 acres of which consisted of a large, non-strategic sale of timberlands in western
The Manufacturing segment reported operating profit of
Recent Acquisition of Timber
Last week the company completed the purchase of approximately 4.7 million tons of mature southern yellow pine timber in a negotiated timber deed transaction valued at
Outlook
The company plans to harvest between 16.5 and 17.0 million tons of timber this year, up from 2011’s 15.8 million ton harvest. The harvest expectations for 2012 incorporate the planned harvest volume from the recently acquired timber deed mentioned above.
Real Estate segment sales for the year are expected to be between
The Manufacturing segment is expected to generate income similar to 2011’s
Third-party interest expense in 2012 is expected to be similar to 2011’s
Reflecting all of these factors, the company expects 2012 income to be between
“The decline in the midpoint of our earnings outlook for 2012 is a function of the higher land basis expense we expect this year in our Real Estate segment. Overall, we expect the fundamental performance of our core timber resource business to improve and expect the balance of our businesses to be stable contributors in the coming year. As a result, we expect cash flow in 2012 to increase approximately
“Disciplined capital allocation is the most effective tool we use to preserve and grow shareholder value. In 2012, we will evaluate all our opportunities for value creation including debt reduction, share repurchase, and acquisitions,” concluded Holley.
Earnings Conference Call and Supplemental Information
Plum Creek will hold a conference call today,
Investors without Internet access should dial 1-800-572-9852 at least 10 minutes prior to the start of the call, referencing Plum Creek’s earnings conference call. Those wishing to access the call from outside
Supplemental financial information for Plum Creek operations, including statistical data, is available in the Investors section of Plum Creek’s website at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.plumcreek.com&esheet=50149665&lan=en-US&anchor=www.plumcreek.com&index=2&md5=e8c5a9719b728f66b5d786cdcfb7b2d3.
Plum Creek is the largest and most geographically diverse private landowner in the nation with approximately 6.6 million acres of timberlands in major timber producing regions of
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seek," "approximately," "intends," "plans," "estimates," or "anticipates," or the negative of those words or other comparable terminology. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the cyclical nature of the forest products industry, our ability to harvest our timber, our ability to execute our acquisition strategy, the market for and our ability to sell or exchange non-strategic timberlands and timberland properties that have higher and better uses, and various regulatory constraints. These and other risks, uncertainties and assumptions are detailed from time to time in our filings with the
PLUM CREEK TIMBER COMPANY, INC. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(UNAUDITED) | ||||||||
(In Millions, Except Per Share Amounts) | Year Ended December 31, | |||||||
2011 | 2010 | |||||||
REVENUES: | ||||||||
Timber | $ | 572 | $ | 569 | ||||
Real Estate | 301 | 336 | ||||||
Manufacturing | 273 | 265 | ||||||
Other | 21 | 20 | ||||||
Total Revenues | 1,167 | 1,190 | ||||||
COSTS AND EXPENSES: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 445 | 421 | ||||||
Real Estate | 92 | 148 | ||||||
Manufacturing | 250 | 236 | ||||||
Other | 2 | 2 | ||||||
Total Cost of Goods Sold | 789 | 807 | ||||||
Selling, General and Administrative | 106 | 95 | ||||||
Total Costs and Expenses | 895 | 902 | ||||||
Other Operating Income (Expense), net | 3 | 9 | ||||||
Operating Income | 275 | 297 | ||||||
Equity Earnings from Timberland Venture | 56 | 57 | ||||||
Interest Expense, net: | ||||||||
Interest Expense (Debt Obligations to Unrelated Parties) | 81 | 80 | ||||||
Interest Expense (Note Payable to Timberland Venture) | 58 | 58 | ||||||
Total Interest Expense, net | 139 | 138 | ||||||
Loss on Extinguishment of Debt | — | (13 | ) | |||||
Income before Income Taxes | 192 | 203 | ||||||
Provision (Benefit) for Income Taxes | (1 | ) | 1 | |||||
Income from Continuing Operations | 193 | 202 | ||||||
Gain on Sale of Properties, net of tax | — | 11 | ||||||
Net Income | $ | 193 | $ | 213 | ||||
PER SHARE AMOUNTS: | ||||||||
Income from Continuing Operations – Basic | $ | 1.19 | $ | 1.25 | ||||
Income from Continuing Operations – Diluted | $ | 1.19 | $ | 1.24 | ||||
Net Income per Share – Basic | $ | 1.19 | $ | 1.31 | ||||
Net Income per Share – Diluted | $ | 1.19 | $ | 1.31 | ||||
Weighted-Average Number of Shares Outstanding | ||||||||
– Basic | 161.7 | 162.1 | ||||||
– Diluted | 162.0 | 162.3 |
PLUM CREEK TIMBER COMPANY, INC. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(UNAUDITED) | ||||||||
(In Millions, Except Per Share Amounts) | Quarter Ended December 31, | |||||||
2011 | 2010 | |||||||
REVENUES: | ||||||||
Timber | $ | 151 | $ | 140 | ||||
Real Estate | 93 | 155 | ||||||
Manufacturing | 65 | 57 | ||||||
Other | 6 | 4 | ||||||
Total Revenues | 315 | 356 | ||||||
COSTS AND EXPENSES: | ||||||||
Cost of Goods Sold: | ||||||||
Timber | 118 | 104 | ||||||
Real Estate | 24 | 79 | ||||||
Manufacturing | 60 | 52 | ||||||
Other | 1 | 1 | ||||||
Total Cost of Goods Sold | 203 | 236 | ||||||
Selling, General and Administrative | 29 | 25 | ||||||
Total Costs and Expenses | 232 | 261 | ||||||
Other Operating Income (Expense), net | — | — | ||||||
Operating Income | 83 | 95 | ||||||
Equity Earnings from Timberland Venture | 12 | 13 | ||||||
Interest Expense, net: | ||||||||
Interest Expense (Debt Obligations to Unrelated Parties) | 20 | 21 | ||||||
Interest Expense (Note Payable to Timberland Venture) | 15 | 15 | ||||||
Total Interest Expense, net | 35 | 36 | ||||||
Loss on Extinguishment of Debt | — | (13 | ) | |||||
Income before Income Taxes | 60 | 59 | ||||||
Provision (Benefit) for Income Taxes | (1 | ) | — | |||||
Net Income | $ | 61 | $ | 59 | ||||
PER SHARE AMOUNTS: | ||||||||
Net Income per Share – Basic | $ | 0.38 | $ | 0.37 | ||||
Net Income per Share – Diluted | $ | 0.38 | $ | 0.37 | ||||
Weighted-Average Number of Shares Outstanding | ||||||||
– Basic | 161.4 | 161.6 | ||||||
– Diluted | 161.6 | 161.9 |
PLUM CREEK TIMBER COMPANY, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(UNAUDITED) | ||||||||
(In Millions, Except Per Share Amounts) | December 31, 2011 | December 31, 2010 | ||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 254 | $ | 252 | ||||
Accounts Receivable | 28 | 21 | ||||||
Inventories | 48 | 49 | ||||||
Deferred Tax Asset | 6 | 7 | ||||||
Assets Held for Sale | 103 | 57 | ||||||
Other Current Assets | 15 | 24 | ||||||
454 | 410 | |||||||
Timber and Timberlands, net | 3,377 | 3,405 | ||||||
Property, Plant and Equipment, net | 138 | 146 | ||||||
Equity Investment in Timberland Venture | 201 | 201 | ||||||
Deferred Tax Asset | 17 | 10 | ||||||
Investment in Grantor Trusts (at Fair Value) | 36 | 35 | ||||||
Other Assets | 36 | 44 | ||||||
Total Assets | $ | 4,259 | $ | 4,251 | ||||
LIABILITIES | ||||||||
Current Liabilities: | ||||||||
Current Portion of Long-Term Debt | $ | 352 | $ | 94 | ||||
Line of Credit | 348 | 166 | ||||||
Accounts Payable | 25 | 25 | ||||||
Interest Payable | 26 | 23 | ||||||
Wages Payable | 20 | 23 | ||||||
Taxes Payable | 9 | 12 | ||||||
Deferred Revenue | 27 | 25 | ||||||
Other Current Liabilities | 8 | 7 | ||||||
815 | 375 | |||||||
Long-Term Debt | 1,290 | 1,643 | ||||||
Note Payable to Timberland Venture | 783 | 783 | ||||||
Other Liabilities | 108 | 76 | ||||||
Total Liabilities | 2,996 | 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 (net of Treasury Stock) – 161.3 at December 31, 2011 and 161.6 at December 31, 2010 | 2 | 2 | ||||||
Additional Paid-In Capital | 2,261 | 2,243 | ||||||
Retained Earnings (Accumulated Deficit) | (28 | ) | 51 | |||||
Treasury Stock, at Cost, Common Shares – 26.9 at December 31, 2011 and 26.2 at December 31, 2010 | (937 | ) | (911 | ) | ||||
Accumulated Other Comprehensive Income (Loss) | (35 | ) | (11 | ) | ||||
Total Stockholders’ Equity | 1,263 | 1,374 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 4,259 | $ | 4,251 |
PLUM CREEK TIMBER COMPANY, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
Year Ended December 31, | ||||||||
(In Millions) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income | $ | 193 | $ | 213 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 96 | 96 | ||||||
Basis of Real Estate Sold | 77 | 132 | ||||||
Equity Earnings from Timberland Venture | (56 | ) | (57 | ) | ||||
Distributions from Timberland Venture | 56 | 57 | ||||||
Deferred Income Taxes | — | 1 | ||||||
Gain on Sale of Properties and Other Assets | — | (13 | ) | |||||
Loss on Extinguishment of Debt | — | 13 | ||||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | 11 | 3 | ||||||
Timber Deed Acquired | (5 | ) | — | |||||
Pension Plan Contributions | (3 | ) | (4 | ) | ||||
Working Capital Changes Impacting Cash Flow: | ||||||||
Income Tax Receivable | (1 | ) | 13 | |||||
Other Working Capital Changes | (7 | ) | (17 | ) | ||||
Other | 13 | 12 | ||||||
Net Cash Provided By Operating Activities | 374 | 449 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (70 | ) | (71 | ) | ||||
Timberlands and Minerals Acquired | (101 | ) | — | |||||
Proceeds from Sale of Properties and Other Assets | — | 13 | ||||||
Purchases of Marketable Securities | — | (2 | ) | |||||
Other | — | 2 | ||||||
Net Cash Used In Investing Activities | (171 | ) | (58 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividends | (272 | ) | (272 | ) | ||||
Borrowings on Line of Credit | 1,921 | 1,783 | ||||||
Repayments on Line of Credit | (1,739 | ) | (1,937 | ) | ||||
Proceeds from Issuance of Long-Term Debt | — | 575 | ||||||
Debt Issuance Costs | — | (7 | ) | |||||
Principal Payments and Retirement of Long-Term Debt | (95 | ) | (531 | ) | ||||
Proceeds from Stock Option Exercises | 10 | 2 | ||||||
Acquisition of Treasury Stock | (26 | ) | (51 | ) | ||||
Net Cash Used In Financing Activities | (201 | ) | (438 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | 2 | (47 | ) | |||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 252 | 299 | ||||||
End of Period | $ | 254 | $ | 252 |
PLUM CREEK TIMBER COMPANY, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
Quarter Ended December 31, | ||||||||
(In Millions) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income | $ | 61 | $ | 59 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ||||||||
Depreciation, Depletion and Amortization | 26 | 24 | ||||||
Basis of Real Estate Sold | 20 | 75 | ||||||
Equity Earnings from Timberland Venture | (12 | ) | (13 | ) | ||||
Distributions from Timberland Venture | — | 1 | ||||||
Deferred Income Taxes | (2 | ) | — | |||||
Loss on Extinguishment of Debt | — | 13 | ||||||
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) | (3 | ) | (2 | ) | ||||
Timber Deed Acquired | (5 | ) | — | |||||
Working Capital Changes | (8 | ) | (16 | ) | ||||
Other | 3 | (4 | ) | |||||
Net Cash Provided By Operating Activities | 80 | 137 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital Expenditures (Excluding Timberland Acquisitions) | (27 | ) | (20 | ) | ||||
Timberlands and Minerals Acquired | (13 | ) | — | |||||
Purchases of Marketable Securities | — | (2 | ) | |||||
Other | — | 1 | ||||||
Net Cash Used In Investing Activities | (40 | ) | (21 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividends | (67 | ) | (67 | ) | ||||
Borrowings on Line of Credit | 824 | 278 | ||||||
Repayments on Line of Credit | (778 | ) | (432 | ) | ||||
Proceeds from Issuance of Long-Term Debt | — | 575 | ||||||
Debt Issuance Costs | — | (7 | ) | |||||
Principal Payments and Retirement of Long-Term Debt | (46 | ) | (478 | ) | ||||
Proceeds from Stock Option Exercises | 1 | — | ||||||
Acquisition of Treasury Stock | (10 | ) | — | |||||
Other | (1 | ) | — | |||||
Net Cash Used In Financing Activities | (77 | ) | (131 | ) | ||||
Increase (Decrease) In Cash and Cash Equivalents | (37 | ) | (15 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Beginning of Period | 291 | 267 | ||||||
End of Period | $ | 254 | $ | 252 |
Click Here for 4rd Quarter 2011 Financial Supplements (in PDF)
Source:
Plum Creek Timber Company, Inc.
Investors: John Hobbs, 1-800-858-5347
Media: Kathy Budinick, 1-888-467-3751