This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Plum Creek Timber's CEO Discusses Q1 2012 Results - Earnings Call Transcript

We continue to work to facilitate the development of export markets for both sawlogs and biomass, which will go to Western Europe, China, India and Turkey. Our goal is to bring this incremental demand to the geographic markets where we have a presence.

During the first quarter, we exported approximately 55,000 tons to China from Oregon, 30,000 tons to Turkey from the U.S. South. We believe that in 2012, we can grow our export sawlog business to 300,000 tons or more, roughly a 50% increase from 2011 levels.

We continue to actively manage our timberland portfolio. Late in the first quarter, we completed a large non-strategic timberland sale of approximately $84 million. The property sold consisted of 70,000 acres of Southern timberlands located primarily in the Florida panhandle. The price of over -- just over $1,200 per acre is a good value for these lands and reflects the young age of the forest, the local timber market and a higher proportion of hardwood lands when compared to Plum Creek's typical southern forest.

We continue to evaluate timberlands for both purchase and sale. During the quarter, we capped the bank markets to refinance our revolving credit agreement, and we replaced the maturing term loan agreement. As you can see from our press release, both financings were priced very attractively. The 5-year revolving credit agreement at LIBOR plus 1.25%, and the 7-year term loan priced an effective net interest cost of LIBOR plus 1%.

With these refinancings complete, we have a well-laddered debt maturity schedule at very attractive rates. Our balance sheet is in great shape, and we have excellent liquidity.

Now David will talk about the quarter and our outlook for you.

David W. Lambert

Thank you, Rick. Our first quarter results of $0.18 were about $0.05 below the midpoint of our guidance range, while the reduction is attributable to the timing of sales from our Real Estate segment. We closed on $100 million of sales during the quarter rather than the $120 million as we initially expected.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs