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
TheStreet Open House

Plum Creek Timber Company, Inc. Reports Results For Third Quarter 2012

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In Millions, Except Per Share Amounts)   Nine Months Ended September 30,
2012   2011
REVENUES:  
Timber $ 480 $ 421
Real Estate 243 208
Manufacturing 246 208
Other 16   15
Total Revenues 985   852
 
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber 374 327
Real Estate 124 68
Manufacturing 217 190
Other 1   1
Total Cost of Goods Sold 716 586
Selling, General and Administrative 86   77
Total Costs and Expenses 802   663
 
Other Operating Income (Expense), net 1   3
 
Operating Income 184 192
 
Equity Earnings from Timberland Venture 42 44
 
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties) 61 61
Interest Expense (Note Payable to Timberland Venture) 43   43
Total Interest Expense, net 104 104
 
Income before Income Taxes 122 132
 
Provision (Benefit) for Income Taxes (2 )
   
Net Income $ 124   $ 132
 
PER SHARE AMOUNTS:
 
Net Income per Share – Basic $ 0.77 $ 0.81
Net Income per Share – Diluted $ 0.76 $ 0.81
 
Weighted-Average Number of Shares Outstanding
– Basic 161.5 161.9
– Diluted 161.8 162.2
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In Millions, Except Per Share Amounts)   Quarter Ended September 30,
  2012   2011
REVENUES:  
Timber $ 168 $ 154
Real Estate 96 67
Manufacturing 85 67
Other 5   5  
Total Revenues 354   293  
 
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber 130 119
Real Estate 40 19
Manufacturing 74 62
Other    
Total Cost of Goods Sold 244 200
Selling, General and Administrative 31   24  
Total Costs and Expenses 275   224  
 
Other Operating Income (Expense), net    
 
Operating Income 79 69
 
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 58 49
 
Provision (Benefit) for Income Taxes (1 ) (1 )
   
Net Income $ 59   $ 50  
 
PER SHARE AMOUNTS:
 
Net Income per Share – Basic $ 0.36 $ 0.31
Net Income per Share – Diluted $ 0.36 $ 0.31
 
Weighted-Average Number of Shares Outstanding
– Basic 161.5 161.9
– Diluted 161.9 162.2
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In Millions, Except Per Share Amounts)   September 30, 2012   December 31,2011
ASSETS
Current Assets:
Cash and Cash Equivalents $ 320 $ 254
Accounts Receivable 39 28
Inventories 49 48
Deferred Tax Asset 6 6
Assets Held for Sale 44 103
Other Current Assets 14   15  
472 454
 
Timber and Timberlands, net 3,423 3,377
Property, Plant and Equipment, net 128 138
Equity Investment in Timberland Venture 187 201
Deferred Tax Asset 18 17
Investment in Grantor Trusts (at Fair Value) 38 36
Other Assets 37   36  
Total Assets $ 4,303   $ 4,259  
 
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt $ 176 $ 352
Line of Credit 351 348
Accounts Payable 29 25
Interest Payable 25 26
Wages Payable 19 20
Taxes Payable 16 9
Deferred Revenue 31 27
Other Current Liabilities 9   8  
656 815
 
Long-Term Debt 1,567 1,290
Note Payable to Timberland Venture 783 783
Other Liabilities 98   108  
Total Liabilities 3,104   2,996  
 
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) – 161.6 at September 30, 2012 and 161.3 at December 31, 2011 2 2
Additional Paid-In Capital 2,273 2,261
Retained Earnings (Accumulated Deficit) (108 ) (28 )
Treasury Stock, at Cost, Common Shares – 26.9 at September 30, 2012 and 26.9 at December 31, 2011 (938 ) (937 )
Accumulated Other Comprehensive Income (Loss) (30 ) (35 )
Total Stockholders’ Equity 1,199   1,263  
Total Liabilities and Stockholders’ Equity $ 4,303   $ 4,259  
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

  Nine Months Ended September 30,
(In Millions) 2012   2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 124 $ 132
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization 87 70
Basis of Real Estate Sold 111 57
Equity Earnings from Timberland Venture (42 ) (44 )
Distributions from Timberland Venture 56 56
Deferred Income Taxes (1 ) 2
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) (6 ) 14
Timber Deed Acquired (98 )
Pension Plan Contributions (10 ) (3 )
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds
Other Working Capital Changes 5
Other 11   10  
Net Cash Provided By Operating Activities 237   294  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions) (52 ) (43 )
Timberlands and Minerals Acquired (18 ) (88 )
Other (1 )  
Net Cash Used In Investing Activities (71 ) (131 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends (204 ) (204 )
Borrowings on Line of Credit 1,712 1,097
Repayments on Line of Credit (1,709 ) (961 )
Proceeds from Issuance of Long-Term Debt 450
Debt Issuance Costs (3 )
Principal Payments and Retirement of Long-Term Debt (350 ) (49 )
Proceeds from Stock Option Exercises 5 9
Acquisition of Treasury Stock (1 ) (16 )
Net Cash Used In Financing Activities (100 ) (124 )
 
Increase (Decrease) In Cash and Cash Equivalents 66 39
Cash and Cash Equivalents:
Beginning of Period 254 252
   
End of Period $ 320   $ 291  
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

  Quarter Ended September 30,
(In Millions) 2012   2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 59 $ 50
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization 31 26
Basis of Real Estate Sold 36 14
Equity Earnings from Timberland Venture (14 ) (14 )
Distributions from Timberland Venture 28 28
Deferred Income Taxes (2 )
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) (1 ) 2
Pension Plan Contributions (3 ) (3 )
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds 35
Other Working Capital Changes 7 (4 )
Other 5   5  
Net Cash Provided By Operating Activities 148   137  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions) (17 ) (15 )
Timberlands and Minerals Acquired (5 ) (76 )
Net Cash Used In Investing Activities (22 ) (91 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends (68 ) (68 )
Borrowings on Line of Credit 583 542
Repayments on Line of Credit (683 ) (467 )
Proceeds from Issuance of Long-Term Debt 450
Debt Issuance Costs
Principal Payments and Retirement of Long-Term Debt (350 )
Proceeds from Stock Option Exercises 2
Acquisition of Treasury Stock   (15 )
Net Cash Used In Financing Activities (66 ) (8 )
 
Increase (Decrease) In Cash and Cash Equivalents 60 38
Cash and Cash Equivalents:
Beginning of Period 260 253
   
End of Period $ 320   $ 291  
 

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)

  Nine Months Ended September 30,
(In Millions) 2012   2011
Revenues:
Northern Resources $ 185 $ 167
Southern Resources 312 266
Real Estate 243 208
Manufacturing 246 208
Other 16 15
Eliminations (17 ) (12 )
Total Revenues $ 985   $ 852  
 
Operating Income (Loss):
Northern Resources $ 15 $ 17
Southern Resources 66 55
Real Estate 113 134
Manufacturing 22 12
Other ( A) 14 16
Other Costs and Eliminations, net (46 ) (42 )
Total Operating Income $ 184   $ 192  
 
Adjusted EBITDA by Segment: (B)
Northern Resources $ 35 $ 36
Southern Resources 118 92
Real Estate 225 192
Manufacturing 33 22
Other 14 16
Other Costs and Eliminations, net (45 ) (41 )
Total $ 380   $ 317  
 

(A) During the first nine months of 2011, the company received a payment of $2 million for the settlement of a dispute that related to certain mineral rights. This amount is reported as Other Operating Gain/(Loss) in our Other Segment and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

(B) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for reconciliations of Adjusted EBITDA to operating income and net cash provided by operating activities.

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)

  Quarter Ended September 30,
(In Millions) 2012   2011
Revenues:
Northern Resources $ 65 $ 68
Southern Resources 110 93
Real Estate 96 67
Manufacturing 85 67
Other 5 5
Eliminations (7 ) (7 )
Total Revenues $ 354   $ 293  
 
Operating Income (Loss):
Northern Resources $ 5 $ 7
Southern Resources 23 21
Real Estate 54 46
Manufacturing 9 3
Other 5 5
Other Costs and Eliminations, net (17 ) (13 )
Total Operating Income $ 79   $ 69  
 
Adjusted EBITDA by Segment: (A)
Northern Resources $ 12 $ 14
Southern Resources 42 35
Real Estate 90 60
Manufacturing 13 7
Other 5 5
Other Costs and Eliminations, net (16 ) (13 )
Total $ 146   $ 108  
 

(A) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for reconciliations of Adjusted EBITDA to operating income and net cash provided by operating activities.

Plum Creek Timber Company, Inc

Segment Data - Adjusted EBITDA

Reconciliation of Operating Income and Net Cash

Provided by Operating Activities

(Unaudited)

We define Adjusted EBITDA as earnings from continuing operations, excluding equity method earnings, and before interest, taxes, depreciation, depletion, amortization, and basis in lands sold. Adjusted EBITDA is not considered a measure of financial performance under U.S. generally accepted accounting principles (U.S. GAAP) and the items excluded from Adjusted EBITDA are significant components of our consolidated financial statements.

5 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs