Plum Creek Timber Company, Inc. (NYSE:PCL) today announced fourth
quarter earnings of $34 million, or $0.19 per diluted share, on revenues
of $323 million. Results include approximately $8 million, or $0.04 per
diluted share, of transaction costs directly related to the pending
merger with Weyerhaeuser Company (NYSE:WY).
Earnings for the fourth quarter of 2014 were $68 million, or $0.39 per
share, on revenues of $428 million. Results for the fourth quarter of
2014 included $2 million after-tax, or $0.01 per diluted share, of
insurance recoveries related to the June 2014 fire at the company’s
medium density fiberboard (MDF) plant in Montana.
Earnings for the full year of 2015 were $197 million, or $1.12 per
diluted share, on revenues of $1.45 billion. The full-year 2015 results
include the $8 million, or $0.04 per diluted share, of merger expenses
mentioned above. Earnings for the full year of 2014 were $214 million,
or $1.21 per diluted share, on revenues of $1.48 billion. The results
for 2014 included $4 million, or $0.02 per share, of after-tax gains
related to the MDF fire.
Adjusted EBITDA, a non-GAAP measure of operating performance, for 2015
was $579 million, compared to $605 million for 2014. A reconciliation of
adjusted EBITDA to net income and cash flow from operations is provided
as an attachment to this release.
Pending Merger with Weyerhaeuser
In a joint announcement on November 8, 2015, Plum Creek and Weyerhaeuser
announced the companies had entered into a definitive agreement to
create the world’s premier timber, land and forest products company. The
merger agreement requires the approval of shareholders of both
Weyerhaeuser and Plum Creek. The shareholder votes for both companies
are scheduled for February 12, 2016.
Under the terms of the agreement, the companies have agreed to
coordinate dividend schedules, designating the same record and payment
dates for quarterly dividends to ensure no shareholder of either company
receives two dividends, or fails to receive one dividend, during the
first quarter of 2016. The companies are in the process of coordinating
the dividends and Plum Creek expects to announce the anticipated timing
of its dividend following the shareholder vote on February 12, 2016.
Summary of 2015 Results
The company reported $274 million of operating income for 2015, lower
than the $322 million of operating income reported in the prior year.
After adjusting for the impact of the 2014 MDF fire, operating income
was $315 million for 2014 and $271 million for 2015. The $44 million
decline in operating income was primarily the result of lower timber
harvest volumes in 2015 and lower results from the company’s
Manufacturing segment as lumber prices declined.
The company’s timber resource segments generated operating income of
$150 million, a $31 million decline compared to the $181 million in
income reported in 2014. The company’s 2015 harvest volumes of 18.6
million tons were approximately 1 million tons, or 5 percent lower than
2014’s 19.6 million-ton harvest. The company elected to reduce harvests
in the second half of 2015 as lower lumber prices led lumber mill
customers to slow production. Average timber prices for 2015 were
relatively flat compared to the prior year.
In the Real Estate segment, the company reported revenue of $318 million
in 2015, approximately $30 million higher than 2014’s $289 million of
sales. Segment operating income was $144 million, $11 million higher
than the prior year.
The company’s Manufacturing segment produced another year of strong
earnings and cash flow. The segment reported $32 million of operating
income, $10 million lower than the $42 million reported in 2014 after
adjusting for the impact of the 2014 MDF fire. The decrease was
primarily driven by lower profitability from the company’s lumber
business.
Operating income from the Energy and Natural Resources segment was $25
million in 2015, unchanged from the prior year. Increased construction
material sales volumes and pipeline right-of-way easement sales offset
the impact of lower energy commodity prices during the year.
Review of Quarterly Operations
The Northern Resources segment reported operating profit of $5 million
for the fourth quarter, a $5 million decrease compared to the $10
million profit reported in the fourth quarter of 2014. The decline in
operating results was driven by a combination of lower harvest volumes
and lower sawlog prices when compared to the same quarter of 2014. As
planned, the segment’s 866,000 ton harvest for the quarter was about 11
percent lower compared to 2014’s 976,000 ton fourth-quarter harvest.
Average Northern sawlog prices of $79 per ton were healthy by historic
standards, but were down about 8 percent from the fourth quarter of 2014
when sawlog export markets were stronger on the West Coast. Pulpwood
prices of $49 per ton were $4 per ton, or 9 percent higher, than the
same period of 2014, the result of challenging supply conditions for
pulp and paper customers that drove pulpwood price increases earlier in
2015.
The Southern Resources segment reported fourth quarter operating profit
of $27 million, down $11 million compared to the fourth quarter of 2014.
As expected, the 3.8 million ton harvest was about 12 percent lower than
the fourth quarter of 2014. Average Southern sawlog prices declined
about $1.50 per ton compared to the fourth quarter of 2014 as lumber
producers closely managed production in light of the weaker lumber
prices in 2015. Pulpwood prices were $13 per ton, similar to the prior
year. Pulpwood demand remained strong as pulp and paper mills in certain
regions of the South competed to maintain log inventories.
The Real Estate segment reported fourth quarter revenue of $55 million
and operating income of $30 million. Fourth quarter 2014 revenue was
$120 million and operating income was $42 million. During the fourth
quarter of 2015 the company sold 16,950 acres of HBU/Recreation lands at
an average price of more than $1,900 per acre. The balance of the
quarter’s Real Estate segment results included the sale of 12,420 acres
of small, non-strategic timberlands at an average price of $1,390 per
acre, and approximately 4,600 acres of conservation lands for $800 per
acre.
The Manufacturing segment reported operating income of $4 million for
the fourth quarter of 2015, $10 million lower than the $14 million
reported in the fourth quarter of 2014. The 2014 results include a $4
million pre-tax gain from insurance recoveries related to the MDF fire.
After adjusting for the insurance recovery gain, the resulting $6
million decline in operating income was driven primarily from lower
results from the company’s lumber business.
Operating income from the Energy and Natural Resources segment was $10
million, up $3 million from the fourth quarter of 2014. A $4 million
right-of-way easement transaction helped drive the income improvement.
Supplemental Information
Supplemental financial information for Plum Creek operations, including
statistical data and reconciliations to non-GAAP measures is available
in the Investors section of Plum Creek’s website at www.plumcreek.com.
Plum Creek is among the largest and most geographically diverse private
landowners in the nation with more than 6 million acres of timberlands
in 19 states. We also operate wood products mills in the Northwest. We
manage our working forests using sustainable practices to benefit Plum
Creek’s many stakeholders. Our employees work together to create
shareholder value, serve as stewards of the environment, make wood
products for everyday use, and build strong communities. Please visit www.plumcreek.com
for the latest information about Plum Creek.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of
the Private Securities 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,” “seeks,” “approximately,” “intends,” “plans,” “estimates,”
“projects,” “strategy,” 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 are not limited to, the
following factors: (1) the risk that the conditions to the closing of
the transaction are not satisfied, including the risk that required
approvals from the shareholders of Weyerhaeuser or Plum Creek for the
transaction are not obtained; (2) litigation relating to the
transaction; (3) uncertainties as to the timing of the consummation of
the transaction and the ability of each party to consummate the
transaction; (4) risks that the proposed transaction disrupts the
current plans and operations of Weyerhaeuser or Plum Creek; (5) the
ability of Weyerhaeuser and Plum Creek to retain and hire key personnel;
(6) competitive responses to the proposed transaction; (7) unexpected
costs, charges or expenses resulting from the transaction; (8) potential
adverse reactions or changes to business relationships resulting from
the announcement or completion of the transaction; (9) the combined
companies’ ability to achieve the growth prospects and synergies
expected from the transaction, as well as delays, challenges and
expenses associated with integrating the combined companies’ existing
businesses; and (10) legislative, regulatory and economic developments.
These risks, as well as other risks associated with the proposed
transaction, are more fully discussed in the joint proxy
statement/prospectus that is included in the Registration Statement on
Form S-4 that has been filed with the SEC in connection with the
proposed transaction.
In addition, actual results are subject to other risks and uncertainties
that relate more broadly to Plum Creek’s overall business, including
those more fully described in Plum Creek’s filings with the Securities
and Exchange Commission (“SEC”) including its annual report on Form 10-K
for the fiscal year ended December 31, 2014, and its quarterly reports
filed on Form 10-Q for the fiscal year ended December 31, 2015, and
Weyerhaeuser’s overall business and financial condition, including those
more fully described in Weyerhaeuser’s filings with the SEC including
its annual report on Form 10-K for the fiscal year ended December 31,
2014, and its quarterly reports filed on Form 10-Q for its fiscal year
ended December 31, 2015. Forward looking statements are not guarantees
of performance, and speak only as of the date made, and neither Plum
Creek nor its management undertakes any obligation to update or revise
any forward-looking statements.
Additional Information And Where To Find It
This document does not constitute an offer to sell or the solicitation
of an offer to buy any securities or a solicitation of any vote or
approval nor shall there be any sale of securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. Weyerhaeuser filed with the SEC a Registration Statement
on Form S-4 that includes a joint proxy statement/prospectus of Plum
Creek and Weyerhaeuser. Each of Plum Creek and Weyerhaeuser have mailed
the joint proxy statement/prospectus to their respective shareholders.
The Registration Statement on Form S-4 was declared effective by the SEC
on December 28, 2015. Plum Creek and Weyerhaeuser also plan to file
other documents with the SEC regarding the proposed transaction. This
document is not a substitute for any prospectus, proxy statement or any
other document which Plum Creek or Weyerhaeuser have filed or may file
with the SEC in connection with the proposed transaction. INVESTORS AND
SECURITY HOLDERS OF PLUM CREEK AND WEYERHAEUSER ARE URGED TO READ THE
JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT
HAVE BEEN OR MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY
WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. You may obtain
copies of all documents filed with the SEC regarding this transaction,
free of charge, at the SEC’s website (www.sec.gov).
In addition, investors and security holders will be able to obtain free
copies of the joint proxy statement/prospectus and other documents filed
with the SEC by the parties on Plum Creek’s Investor Relations website (www.plumcreek.com/investors)
(for documents filed with the SEC by Plum Creek) or on
Weyerhaeuser’s investor relations page on its corporate web site (www.weyerhaeuser.com)
(for documents filed with the SEC by Weyerhaeuser).
Participants in the Solicitation
Plum Creek, Weyerhaeuser, and certain of their respective directors,
executive officers and other members of management and employees, under
SEC rules may be deemed to be participants in the solicitation of
proxies from Plum Creek and Weyerhaeuser shareholders in connection with
the proposed transaction. Information regarding the persons who may,
under the rules of the SEC, be deemed participants in the solicitation
of Plum Creek and Weyerhaeuser shareholders in connection with the
proposed transaction is set forth in the joint proxy
statement/prospectus. You can find more detailed information about Plum
Creek’s executive officers and directors in its definitive proxy
statement filed with the SEC on March 26, 2015. You can find more
detailed information about Weyerhaeuser’s executive officers and
directors in its definitive proxy statement filed with the SEC on April
1, 2015. Additional information about Plum Creek’s executive officers
and directors and Weyerhaeuser’s executive officers and directors can be
found in the above-referenced Registration Statement on Form S-4.
|
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
|
|
(In Millions, Except Per Share Amounts)
|
|
Year Ended December 31,
|
|
2015
|
|
2014
|
REVENUES:
|
|
|
|
|
Timber
|
|
$
|
724
|
|
|
$
|
767
|
Real Estate
|
|
318
|
|
|
289
|
Manufacturing
|
|
350
|
|
|
368
|
Energy and Natural Resources
|
|
37
|
|
|
34
|
Other
|
|
16
|
|
|
18
|
Total Revenues
|
|
1,445
|
|
|
1,476
|
|
|
|
|
|
COSTS AND EXPENSES:
|
|
|
|
|
Cost of Goods Sold:
|
|
|
|
|
Timber
|
|
538
|
|
|
555
|
Real Estate
|
|
166
|
|
|
151
|
Manufacturing
|
|
307
|
|
|
322
|
Energy and Natural Resources
|
|
11
|
|
|
10
|
Other
|
|
15
|
|
|
16
|
Total Cost of Goods Sold
|
|
1,037
|
|
|
1,054
|
Selling, General and Administrative
|
|
150
|
|
|
115
|
Total Costs and Expenses
|
|
1,187
|
|
|
1,169
|
|
|
|
|
|
Other Operating Income (Expense), net
|
|
16
|
|
|
15
|
|
|
|
|
|
Operating Income
|
|
274
|
|
|
322
|
|
|
|
|
|
Earnings from Unconsolidated Entities
|
|
83
|
|
|
66
|
|
|
|
|
|
Interest Expense, net:
|
|
|
|
|
Interest Expense (Debt Obligations to Unrelated Parties)
|
|
105
|
|
|
108
|
Interest Expense (Note Payable to Timberland Venture)
|
|
58
|
|
|
58
|
Total Interest Expense, net
|
|
163
|
|
|
166
|
|
|
|
|
|
Income before Income Taxes
|
|
194
|
|
|
222
|
|
|
|
|
|
Provision (Benefit) for Income Taxes
|
|
(3
|
)
|
|
8
|
|
|
|
|
|
Net Income
|
|
$
|
197
|
|
|
$
|
214
|
|
|
|
|
|
PER SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
Net Income per Share – Basic
|
|
$
|
1.12
|
|
|
$
|
1.21
|
Net Income per Share – Diluted
|
|
$
|
1.12
|
|
|
$
|
1.21
|
|
|
|
|
|
Weighted-Average Number of Shares Outstanding
|
|
|
|
|
– Basic
|
|
174.9
|
|
|
176.7
|
– Diluted
|
|
175.2
|
|
|
177.0
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INCOME STATEMENT INFORMATION:
|
|
|
|
|
Equity Earnings from Timberland Venture
|
|
$
|
77
|
|
|
$
|
63
|
Equity Earnings (Loss) from Real Estate Development Ventures
|
|
6
|
|
|
3
|
Earnings from Unconsolidated Entities
|
|
$
|
83
|
|
|
$
|
66
|
|
|
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
|
|
(In Millions, Except Per Share Amounts)
|
|
Quarter Ended December 31,
|
|
2015
|
|
2014
|
REVENUES:
|
|
|
|
|
Timber
|
|
$
|
176
|
|
|
$
|
204
|
Real Estate
|
|
55
|
|
|
120
|
Manufacturing
|
|
79
|
|
|
93
|
Energy and Natural Resources
|
|
13
|
|
|
8
|
Other
|
|
—
|
|
|
3
|
Total Revenues
|
|
323
|
|
|
428
|
|
|
|
|
|
COSTS AND EXPENSES:
|
|
|
|
|
Cost of Goods Sold:
|
|
|
|
|
Timber
|
|
133
|
|
|
148
|
Real Estate
|
|
22
|
|
|
76
|
Manufacturing
|
|
71
|
|
|
81
|
Energy and Natural Resources
|
|
3
|
|
|
2
|
Other
|
|
1
|
|
|
2
|
Total Cost of Goods Sold
|
|
230
|
|
|
309
|
Selling, General and Administrative
|
|
50
|
|
|
33
|
Total Costs and Expenses
|
|
280
|
|
|
342
|
|
|
|
|
|
Other Operating Income (Expense), net
|
|
10
|
|
|
6
|
|
|
|
|
|
Operating Income
|
|
53
|
|
|
92
|
|
|
|
|
|
Earnings from Unconsolidated Entities
|
|
17
|
|
|
22
|
|
|
|
|
|
Interest Expense, net:
|
|
|
|
|
Interest Expense (Debt Obligations to Unrelated Parties)
|
|
24
|
|
|
27
|
Interest Expense (Note Payable to Timberland Venture)
|
|
15
|
|
|
15
|
Total Interest Expense, net
|
|
39
|
|
|
42
|
|
|
|
|
|
Income before Income Taxes
|
|
31
|
|
|
72
|
|
|
|
|
|
Provision (Benefit) for Income Taxes
|
|
(3
|
)
|
|
4
|
|
|
|
|
|
Net Income
|
|
$
|
34
|
|
|
$
|
68
|
|
|
|
|
|
PER SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
Net Income per Share – Basic
|
|
$
|
0.19
|
|
|
$
|
0.39
|
Net Income per Share – Diluted
|
|
$
|
0.19
|
|
|
$
|
0.39
|
|
|
|
|
|
Weighted-Average Number of Shares Outstanding
|
|
|
|
|
– Basic
|
|
173.8
|
|
|
175.9
|
– Diluted
|
|
174.2
|
|
|
176.2
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INCOME STATEMENT INFORMATION:
|
|
|
|
|
Equity Earnings from Timberland Venture
|
|
$
|
18
|
|
|
$
|
15
|
Equity Earnings (Loss) from Real Estate Development Ventures
|
|
(1
|
)
|
|
7
|
Earnings from Unconsolidated Entities
|
|
$
|
17
|
|
|
$
|
22
|
|
|
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
|
(In Millions, Except Per Share Amounts)
|
|
December 31, 2015
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
88
|
|
|
$
|
92
|
|
Accounts Receivable
|
|
32
|
|
|
38
|
|
Inventories
|
|
57
|
|
|
61
|
|
Deferred Tax Asset
|
|
13
|
|
|
6
|
|
Assets Held for Sale
|
|
24
|
|
|
98
|
|
Other Current Assets
|
|
16
|
|
|
15
|
|
|
|
230
|
|
|
310
|
|
|
|
|
|
|
Timber and Timberlands, net
|
|
3,910
|
|
|
4,009
|
|
Minerals and Mineral Rights, net
|
|
281
|
|
|
289
|
|
Property, Plant and Equipment, net
|
|
113
|
|
|
120
|
|
Equity Investment in Timberland Venture
|
|
235
|
|
|
217
|
|
Equity Investment in Real Estate Development Ventures
|
|
102
|
|
|
126
|
|
Deferred Tax Asset
|
|
24
|
|
|
23
|
|
Investment in Grantor Trusts (at Fair Value)
|
|
54
|
|
|
48
|
|
Other Assets
|
|
41
|
|
|
45
|
|
Total Assets
|
|
$
|
4,990
|
|
|
$
|
5,187
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Current Portion of Long-Term Debt
|
|
$
|
—
|
|
|
$
|
439
|
|
Line of Credit
|
|
519
|
|
|
95
|
|
Accounts Payable
|
|
22
|
|
|
27
|
|
Interest Payable
|
|
19
|
|
|
22
|
|
Wages Payable
|
|
31
|
|
|
31
|
|
Taxes Payable
|
|
10
|
|
|
10
|
|
Deferred Revenue
|
|
23
|
|
|
23
|
|
Other Current Liabilities
|
|
46
|
|
|
10
|
|
|
|
670
|
|
|
657
|
|
|
|
|
|
|
Long-Term Debt
|
|
1,976
|
|
|
1,976
|
|
Note Payable to Timberland Venture
|
|
783
|
|
|
783
|
|
Other Liabilities
|
|
83
|
|
|
100
|
|
Total Liabilities
|
|
3,512
|
|
|
3,516
|
|
|
|
|
|
|
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) – 174.2 at December 31, 2015 and
175.9 at December 31, 2014
|
|
2
|
|
|
2
|
|
Additional Paid-In Capital
|
|
2,988
|
|
|
2,955
|
|
Retained Earnings (Accumulated Deficit)
|
|
(382
|
)
|
|
(271
|
)
|
Treasury Stock, at Cost, Common Shares – 30.8 at December 31, 2015
and 28.3 at December 31, 2014
|
|
(1,094
|
)
|
|
(992
|
)
|
Accumulated Other Comprehensive Income (Loss)
|
|
(36
|
)
|
|
(23
|
)
|
Total Stockholders’ Equity
|
|
1,478
|
|
|
1,671
|
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
4,990
|
|
|
$
|
5,187
|
|
|
|
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Year Ended December 31,
|
(In Millions)
|
|
2015
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net Income
|
|
$
|
197
|
|
|
$
|
214
|
|
Adjustments to Reconcile Net Income to Net Cash Provided By
Operating Activities:
|
|
|
|
|
Depreciation, Depletion and Amortization (Includes $2 MDF Fire
Impairment Loss in 2014)
|
|
133
|
|
|
138
|
|
Basis of Real Estate Sold
|
|
148
|
|
|
129
|
|
Earnings from Unconsolidated Entities
|
|
(83
|
)
|
|
(66
|
)
|
Distributions from Timberland Venture
|
|
59
|
|
|
57
|
|
Distributions from Real Estate Development Ventures
|
|
6
|
|
|
2
|
|
Deferred Income Taxes
|
|
(8
|
)
|
|
4
|
|
Pension Plan Contributions
|
|
(9
|
)
|
|
(9
|
)
|
Realized Gains from Sales of Marketable Securities
|
|
(10
|
)
|
|
—
|
|
Working Capital Changes
|
|
9
|
|
|
(11
|
)
|
Other
|
|
21
|
|
|
(1
|
)
|
Net Cash Provided By (Used In) Operating Activities
|
|
463
|
|
|
457
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Capital Expenditures, Excluding Timberland Acquisitions (Includes
$12 MDF Replacement Capital in 2014)
|
|
(82
|
)
|
|
(89
|
)
|
Timberlands Acquired
|
|
(7
|
)
|
|
—
|
|
Contributions to Real Estate Development Ventures
|
|
(5
|
)
|
|
(9
|
)
|
Distributions from Real Estate Development Ventures
|
|
29
|
|
|
23
|
|
Insurance Recoveries (Property Damage)
|
|
2
|
|
|
10
|
|
Proceeds from Sale of Properties and Other Assets
|
|
4
|
|
|
—
|
|
Investments in Assets Held in Grantor Trust
|
|
(39
|
)
|
|
(1
|
)
|
Sales of Marketable Securities Held in Grantor Trust
|
|
33
|
|
|
—
|
|
Other
|
|
(1
|
)
|
|
1
|
|
Net Cash Provided By (Used In) Investing Activities
|
|
(66
|
)
|
|
(65
|
)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Dividends
|
|
(308
|
)
|
|
(312
|
)
|
Borrowings on Line of Credit
|
|
1,008
|
|
|
1,307
|
|
Repayments on Line of Credit
|
|
(584
|
)
|
|
(1,679
|
)
|
Principal Payments and Retirement of Long-Term Debt
|
|
(439
|
)
|
|
—
|
|
Proceeds from Stock Option Exercises
|
|
24
|
|
|
3
|
|
Acquisition of Treasury Stock
|
|
(102
|
)
|
|
(52
|
)
|
Net Cash Provided By (Used In) Financing Activities
|
|
(401
|
)
|
|
(733
|
)
|
|
|
|
|
|
Increase (Decrease) In Cash and Cash Equivalents
|
|
(4
|
)
|
|
(341
|
)
|
Cash and Cash Equivalents:
|
|
|
|
|
Beginning of Period
|
|
92
|
|
|
433
|
|
|
|
|
|
|
End of Period
|
|
$
|
88
|
|
|
$
|
92
|
|
|
|
PLUM CREEK TIMBER COMPANY, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Quarter Ended December 31,
|
(In Millions)
|
|
2015
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net Income
|
|
$
|
34
|
|
|
$
|
68
|
|
Adjustments to Reconcile Net Income to Net Cash Provided By
Operating Activities:
|
|
|
|
|
Depreciation, Depletion and Amortization
|
|
34
|
|
|
37
|
|
Basis of Real Estate Sold
|
|
17
|
|
|
69
|
|
Earnings from Unconsolidated Entities
|
|
(17
|
)
|
|
(22
|
)
|
Distributions from Real Estate Development Ventures
|
|
(1
|
)
|
|
2
|
|
Deferred Income Taxes
|
|
(3
|
)
|
|
2
|
|
Pension Plan Contributions
|
|
(9
|
)
|
|
(9
|
)
|
Realized Gains from Sales of Marketable Securities
|
|
(9
|
)
|
|
—
|
|
Working Capital Changes
|
|
(16
|
)
|
|
(15
|
)
|
Other
|
|
11
|
|
|
3
|
|
Net Cash Provided By (Used In) Operating Activities
|
|
41
|
|
|
135
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Capital Expenditures, Excluding Timberland Acquisitions (Includes $3
MDF Fire Replacement Capital in 2014)
|
|
(21
|
)
|
|
(24
|
)
|
Timberlands Acquired
|
|
—
|
|
|
—
|
|
Distributions from Real Estate Development Ventures
|
|
5
|
|
|
18
|
|
Insurance Recoveries (Property Damage)
|
|
—
|
|
|
7
|
|
Proceeds from Sale of Properties and Other Assets
|
|
4
|
|
|
—
|
|
Investments in Assets Held in Grantor Trust
|
|
(37
|
)
|
|
(1
|
)
|
Sales of Marketable Securities Held in Grantor Trust
|
|
30
|
|
|
—
|
|
Other
|
|
—
|
|
|
1
|
|
Net Cash Provided By (Used In) Investing Activities
|
|
(19
|
)
|
|
1
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Dividends
|
|
(76
|
)
|
|
(78
|
)
|
Borrowings on Line of Credit
|
|
634
|
|
|
322
|
|
Repayments on Line of Credit
|
|
(157
|
)
|
|
(379
|
)
|
Principal Payments and Retirement of Long-Term Debt
|
|
(439
|
)
|
|
—
|
|
Proceeds from Stock Option Exercises
|
|
23
|
|
|
1
|
|
Net Cash Provided By (Used In) Financing Activities
|
|
(15
|
)
|
|
(134
|
)
|
|
|
|
|
|
Increase (Decrease) In Cash and Cash Equivalents
|
|
7
|
|
|
2
|
|
Cash and Cash Equivalents:
|
|
|
|
|
Beginning of Period
|
|
81
|
|
|
90
|
|
|
|
|
|
|
End of Period
|
|
$
|
88
|
|
|
$
|
92
|
|
|
|
PLUM CREEK TIMBER COMPANY, INC. SEGMENT DATA (UNAUDITED)
|
|
|
|
Year Ended December 31,
|
(In Millions)
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
Northern Resources
|
|
$
|
228
|
|
|
$
|
264
|
|
Southern Resources
|
|
521
|
|
|
531
|
|
Real Estate
|
|
318
|
|
|
289
|
|
Manufacturing
|
|
350
|
|
|
368
|
|
Energy and Natural Resources
|
|
37
|
|
|
34
|
|
Other
|
|
16
|
|
|
18
|
|
Eliminations
|
|
(25
|
)
|
|
(28
|
)
|
Total Revenues
|
|
$
|
1,445
|
|
|
$
|
1,476
|
|
|
|
|
|
|
Operating Income (Loss):
|
|
|
|
|
Northern Resources
|
|
$
|
27
|
|
|
$
|
44
|
|
Southern Resources
|
|
123
|
|
|
137
|
|
Real Estate
|
|
144
|
|
|
133
|
|
Manufacturing (A)
|
|
35
|
|
|
49
|
|
Energy and Natural Resources (B)
|
|
25
|
|
|
25
|
|
Other (C)
|
|
6
|
|
|
2
|
|
Other Costs and Eliminations, net
|
|
(80
|
)
|
|
(65
|
)
|
Total Operating Income
|
|
$
|
280
|
|
|
$
|
325
|
|
|
|
|
|
|
Adjusted EBITDA by Segment: (D)
|
|
|
|
|
Northern Resources
|
|
$
|
53
|
|
|
$
|
72
|
|
Southern Resources
|
|
207
|
|
|
219
|
|
Real Estate
|
|
293
|
|
|
263
|
|
Manufacturing
|
|
45
|
|
|
65
|
|
Energy and Natural Resources
|
|
34
|
|
|
33
|
|
Other
|
|
25
|
|
|
17
|
|
Other Costs and Eliminations, net
|
|
(78
|
)
|
|
(64
|
)
|
Total
|
|
$
|
579
|
|
|
$
|
605
|
|
|
(A) During the second quarter of 2014, we experienced a fire at
our MDF facility and recorded a $2 million loss representing the net
book value of the building and equipment damaged or destroyed by the
fire. During 2015 and 2014, we recorded gains related to insurance
recoveries of $3 million and $13 million, respectively. Insurance
recoveries were received for costs incurred to rebuild or replace the
damaged building and equipment and for business interruption costs. Both
the building and equipment loss and the insurance recoveries are
reported as Other Operating Gain in our Manufacturing Segment and are
included in Other Operating Income (Expense), net in the Consolidated
Statements of Income.
(B) During the fourth quarter of 2014, the company agreed to
terminate a land lease for consideration of $2 million from the lessor.
The land lease had been accounted for as an operating lease. The $2
million consideration is reported as Other Operating Gain in our Energy
and Natural Resources Segment as it was primarily for the release of
mineral rights and is included in Other Operating Income (Expense), net
in the Consolidated Statements of Income.
(C) For segment reporting, Equity Earnings (Loss) from Real
Estate Development Ventures is included in Operating Income (Loss) for
the Other Segment. Equity earnings of $6 million and $3 million were
recorded for 2015 and 2014, respectively.
(D) 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 December 31,
|
(In Millions)
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
Northern Resources
|
|
$
|
56
|
|
|
$
|
66
|
|
Southern Resources
|
|
128
|
|
|
145
|
|
Real Estate
|
|
55
|
|
|
120
|
|
Manufacturing
|
|
79
|
|
|
93
|
|
Energy and Natural Resources
|
|
13
|
|
|
8
|
|
Other
|
|
—
|
|
|
3
|
|
Eliminations
|
|
(8
|
)
|
|
(7
|
)
|
Total Revenues
|
|
$
|
323
|
|
|
$
|
428
|
|
|
|
|
|
|
Operating Income (Loss):
|
|
|
|
|
Northern Resources
|
|
$
|
5
|
|
|
$
|
10
|
|
Southern Resources
|
|
27
|
|
|
38
|
|
Real Estate
|
|
30
|
|
|
42
|
|
Manufacturing (A)
|
|
4
|
|
|
14
|
|
Energy and Natural Resources (B)
|
|
10
|
|
|
7
|
|
Other (C)
|
|
(1
|
)
|
|
7
|
|
Other Costs and Eliminations, net
|
|
(23
|
)
|
|
(19
|
)
|
Total Operating Income
|
|
$
|
52
|
|
|
$
|
99
|
|
|
|
|
|
|
Adjusted EBITDA by Segment: (D)
|
|
|
|
|
Northern Resources
|
|
$
|
11
|
|
|
$
|
17
|
|
Southern Resources
|
|
49
|
|
|
61
|
|
Real Estate
|
|
48
|
|
|
111
|
|
Manufacturing
|
|
6
|
|
|
18
|
|
Energy and Natural Resources
|
|
12
|
|
|
9
|
|
Other
|
|
3
|
|
|
19
|
|
Other Costs and Eliminations, net
|
|
(22
|
)
|
|
(19
|
)
|
Total
|
|
$
|
107
|
|
|
$
|
216
|
|
|
(A) During the second quarter of 2014, we experienced a fire at
our MDF facility and recorded a $2 million loss representing the net
book value of the building and equipment damaged or destroyed by the
fire. During the fourth quarters of 2015 and 2014, we recorded gains
related to insurance recoveries of $0 and $4 million, respectively.
Insurance recoveries were received for costs incurred to rebuild or
replace the damaged building and equipment and for business interruption
costs. Both the building and equipment loss and the insurance recoveries
are reported as Other Operating Gain in our Manufacturing Segment and
are included in Other Operating Income (Expense), net in the
Consolidated Statements of Income.
(B) During the fourth quarter of 2014, the company agreed to
terminate a land lease for consideration of $2 million from the lessor.
The land lease had been accounted for as an operating lease. The $2
million consideration is reported as Other Operating Gain in our Energy
and Natural Resources Segment as it was primarily for the release of
mineral rights and is included in Other Operating Income (Expense), net
in the Consolidated Statements of Income.
(C) For segment reporting, Equity Earnings (Loss) from Real
Estate Development Ventures is included in Operating Income (Loss) for
the Other Segment. An equity loss of $1 million and equity earnings of
$7 million were recorded for the quarterly periods ended December 31,
2015 and December 31, 2014, respectively.
(D) 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.
MEDIUM DENSITY FIBERBOARD
("MDF") FACILITY FIRE - OPERATING RESULTS IMPACT
December
31, 2015
(UNAUDITED)
On June 10, 2014, we experienced a fire at our MDF facility. Production
at the facility resumed on July 10, 2014. The schedule below details the
components that impacted operating income in each quarter of 2014 and
2015, and for each of the full years.
|
|
|
2014
|
|
2015
|
(In Millions)
|
|
2nd Qtr
|
|
3rd Qtr
|
|
4th Qtr
|
|
Total
|
|
1st Qtr
|
|
2nd Qtr
|
|
3rd Qtr
|
|
4th Qtr
|
|
Total
|
Impacts on Operating Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foregone MDF Income
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
Business Interruption Recoveries(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
Loss on Property, Plant and Equipment
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
Property Insurance Recoveries(1)
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
2
|
Net Impact on Manufacturing Operating Income
|
|
$
|
(2
|
)
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
3
|
Impact on Net Income
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
2
|
Impact on Diluted EPS
|
|
$
|
(0.01
|
)
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
(1) The insurance recoveries reflect the impact of our cumulative
$1 million deductible. Business interruption recoveries of $3 million
and $1 million were recorded in the fourth quarter of 2014 and the
second quarter of 2015, respectively, when the cash payments were
received. Property insurance recoveries were recorded as repair
expenditures were incurred by the company. As of December 31, 2015, $16
million of cash payments from insurance recoveries have been received.
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 Earnings from the Timberland Venture, and before
interest expense (including any gains or losses from extinguishment of
debt), taxes, depreciation, depletion, amortization, and basis in real
estate sold. In addition to including Equity Earnings or Loss from Real
Estate Development Ventures in Adjusted EBITDA, we also include, as an
add back to Operating Income for the Other Segment, our proportional
share of depreciation, depletion, amortization, and basis in real estate
sold from this equity method investment. 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.
We present Adjusted EBITDA as a supplemental performance measure because
we believe it facilitates operating performance comparisons from period
to period, and each business segment’s contribution to that performance,
by eliminating non-cash charges to earnings, which can vary
significantly by business segment. These non-cash charges include timber
depletion, depreciation of fixed assets and the basis in real estate
sold. We also use Adjusted EBITDA as a supplemental liquidity measure
because we believe it is useful in measuring our ability to generate
cash. In addition, we believe Adjusted EBITDA is commonly used by
investors, lenders and rating agencies to assess our financial
performance.
A reconciliation of Adjusted EBITDA to net income and net cash from
operating activities, the most directly comparable U.S. GAAP performance
and liquidity measures, is provided in the following schedules:
|
|
|
Year Ended December 31, 2015
|
|
|
Operating Income
|
|
Depreciation, Depletion and Amortization
|
|
Basis of Real Estate Sold
|
|
Adjusted EBITDA
|
By Segment (1)
|
|
|
|
|
|
|
|
|
Northern Resources
|
|
$
|
27
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
53
|
|
Southern Resources
|
|
123
|
|
|
84
|
|
|
—
|
|
|
207
|
|
Real Estate
|
|
144
|
|
|
1
|
|
|
148
|
|
|
293
|
|
Manufacturing
|
|
35
|
|
|
10
|
|
|
—
|
|
|
45
|
|
Energy and Natural Resources
|
|
25
|
|
|
9
|
|
|
—
|
|
|
34
|
|
Other
|
|
6
|
|
|
1
|
|
|
18
|
|
|
25
|
|
Other Costs and Eliminations
|
|
(93
|
)
|
|
2
|
|
|
—
|
|
|
(91
|
)
|
Other Unallocated Operating Income (Expense), net
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
Total
|
|
$
|
280
|
|
|
$
|
133
|
|
|
$
|
166
|
|
|
$
|
579
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Income (2)
|
|
|
|
|
|
|
|
|
Equity Earnings from Timberland Venture
|
|
77
|
|
|
|
|
|
|
|
Interest Expense
|
|
(163
|
)
|
|
|
|
|
|
|
(Provision) Benefit for Income Taxes
|
|
3
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Cash Provided By Operating Activities (1)
|
|
|
|
|
|
|
|
|
Net Cash Flows from Operations
|
|
|
|
|
|
|
|
$
|
463
|
|
Interest Expense
|
|
|
|
|
|
|
|
163
|
|
Amortization of Debt Costs
|
|
|
|
|
|
|
|
(1
|
)
|
Provision / (Benefit) for Income Taxes
|
|
|
|
|
|
|
|
(3
|
)
|
Distributions from Timberland Venture
|
|
|
|
|
|
|
|
(59
|
)
|
Distributions from Real Estate Development Ventures
|
|
|
|
|
|
|
|
(6
|
)
|
Equity Earnings, Depletion, Amortization, and Basis of Real Estate
Sold from Real Estate Development Ventures
|
|
|
|
|
|
|
|
25
|
|
Deferred Income Taxes
|
|
|
|
|
|
|
|
8
|
|
Gain on Sale of Properties and Other Assets
|
|
|
|
|
|
|
|
—
|
|
Timber Deed Acquired
|
|
|
|
|
|
|
|
—
|
|
Pension Plan Contributions
|
|
|
|
|
|
|
|
9
|
|
Realized Gains from Sales of Marketable Securities
|
|
|
|
|
|
|
|
10
|
|
Working Capital Changes
|
|
|
|
|
|
|
|
(9
|
)
|
Other
|
|
|
|
|
|
|
|
(21
|
)
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
$
|
579
|
|
|
(1) Includes Equity Earnings from Real Estate Development
Ventures ($6 million) in Operating Income for the Other Segment, along
with our proportional share of depreciation, depletion, amortization ($1
million), and basis in real estate sold ($18 million) from this equity
method investment.
(2) Includes reconciling items not allocated to segments for
financial reporting purposes.
|
|
|
Year Ended December 31, 2014
|
|
|
Operating Income
|
|
Depreciation, Depletion and Amortization
|
|
Basis of Real Estate Sold
|
|
Adjusted EBITDA
|
By Segment (1)
|
|
|
|
|
|
|
|
|
Northern Resources
|
|
$
|
44
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
72
|
|
Southern Resources
|
|
137
|
|
|
82
|
|
|
—
|
|
|
219
|
|
Real Estate
|
|
133
|
|
|
1
|
|
|
129
|
|
|
263
|
|
Manufacturing
|
|
49
|
|
|
16
|
|
|
—
|
|
|
65
|
|
Energy and Natural Resources
|
|
25
|
|
|
8
|
|
|
—
|
|
|
33
|
|
Other
|
|
2
|
|
|
2
|
|
|
13
|
|
|
17
|
|
Other Costs and Eliminations
|
|
(67
|
)
|
|
1
|
|
|
—
|
|
|
(66
|
)
|
Other Unallocated Operating Income (Expense), net
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Total
|
|
$
|
325
|
|
|
$
|
138
|
|
|
$
|
142
|
|
|
$
|
605
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Income (2)
|
|
|
|
|
|
|
|
|
Equity Earnings from Timberland Venture
|
|
63
|
|
|
|
|
|
|
|
Interest Expense
|
|
(166
|
)
|
|
|
|
|
|
|
(Provision) Benefit for Income Taxes
|
|
(8
|
)
|
|
|
|
|
|
|
Net Income
|
|
$
|
214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Cash Provided By Operating Activities (1)
|
|
|
|
|
|
|
|
|
Net Cash Flows from Operations
|
|
|
|
|
|
|
|
$
|
457
|
|
Interest Expense
|
|
|
|
|
|
|
|
166
|
|
Amortization of Debt Costs
|
|
|
|
|
|
|
|
(2
|
)
|
Provision / (Benefit) for Income Taxes
|
|
|
|
|
|
|
|
8
|
|
Distributions from Timberland Venture
|
|
|
|
|
|
|
|
(57
|
)
|
Distributions from Real Estate Development Ventures
|
|
|
|
|
|
|
|
(2
|
)
|
Equity Earnings, Depletion, Amortization, and Basis of Real Estate
Sold from Real Estate Development Ventures
|
|
|
|
|
|
|
|
18
|
|
Deferred Income Taxes
|
|
|
|
|
|
|
|
(4
|
)
|
Gain on Sale of Properties and Other Assets
|
|
|
|
|
|
|
|
—
|
|
Timber Deed Acquired
|
|
|
|
|
|
|
|
—
|
|
Pension Plan Contributions
|
|
|
|
|
|
|
|
9
|
|
Working Capital Changes
|
|
|
|
|
|
|
|
11
|
|
Other
|
|
|
|
|
|
|
|
1
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
$
|
605
|
|
|
(1) Includes Equity Earnings from Real Estate Development
Ventures ($3 million) in Operating Income for the Other Segment, along
with our proportional share of depreciation, depletion, amortization ($2
million), and basis in real estate sold ($13 million) from this equity
method investment.
(2) Includes reconciling items not allocated to segments for
financial reporting purposes.
|
|
|
Quarter Ended December 31, 2015
|
|
|
Operating Income
|
|
Depreciation, Depletion and Amortization
|
|
Basis of Real Estate Sold
|
|
Adjusted EBITDA
|
By Segment (1)
|
|
|
|
|
|
|
|
|
Northern Resources
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
11
|
|
Southern Resources
|
|
27
|
|
|
22
|
|
|
—
|
|
|
49
|
|
Real Estate
|
|
30
|
|
|
1
|
|
|
17
|
|
|
48
|
|
Manufacturing
|
|
4
|
|
|
2
|
|
|
—
|
|
|
6
|
|
Energy and Natural Resources
|
|
10
|
|
|
2
|
|
|
—
|
|
|
12
|
|
Other
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
3
|
|
Other Costs and Eliminations
|
|
(33
|
)
|
|
1
|
|
|
—
|
|
|
(32
|
)
|
Other Unallocated Operating Income (Expense), net
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
Total
|
|
$
|
52
|
|
|
$
|
34
|
|
|
$
|
21
|
|
|
$
|
107
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Income (2)
|
|
|
|
|
|
|
|
|
Equity Earnings from Timberland Venture
|
|
18
|
|
|
|
|
|
|
|
Interest Expense
|
|
(39
|
)
|
|
|
|
|
|
|
(Provision) Benefit for Income Taxes
|
|
3
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Cash Provided By Operating Activities (1)
|
|
|
|
|
|
|
|
|
Net Cash Flows from Operations
|
|
|
|
|
|
|
|
$
|
41
|
|
Interest Expense
|
|
|
|
|
|
|
|
39
|
|
Amortization of Debt Costs
|
|
|
|
|
|
|
|
—
|
|
Provision / (Benefit) for Income Taxes
|
|
|
|
|
|
|
|
(3
|
)
|
Distributions from Timberland Venture
|
|
|
|
|
|
|
|
—
|
|
Distributions from Real Estate Development Ventures
|
|
|
|
|
|
|
|
1
|
|
Equity Earnings, Depletion, Amortization, and Basis of Real Estate
Sold from Real Estate Development Ventures
|
|
|
|
|
|
|
|
3
|
|
Deferred Income Taxes
|
|
|
|
|
|
|
|
3
|
|
Gain on Sale of Properties and Other Assets
|
|
|
|
|
|
|
|
—
|
|
Timber Deed Acquired
|
|
|
|
|
|
|
|
—
|
|
Pension Plan Contributions
|
|
|
|
|
|
|
|
9
|
|
Realized Gains from Sales of Marketable Securities
|
|
|
|
|
|
|
|
9
|
|
Working Capital Changes
|
|
|
|
|
|
|
|
16
|
|
Other
|
|
|
|
|
|
|
|
(11
|
)
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
$
|
107
|
|
|
(1) Includes Equity Loss from Real Estate Development Ventures
($1 million) in Operating Income for the Other Segment, along with our
proportional share of depreciation, depletion, amortization ($0), and
basis in real estate sold ($4 million) from this equity method
investment.
(2) Includes reconciling items not allocated to segments for
financial reporting purposes.
|
|
|
Quarter Ended December 31, 2014
|
|
|
Operating Income
|
|
Depreciation, Depletion and Amortization
|
|
Basis of Real Estate Sold
|
|
Adjusted EBITDA
|
By Segment (1)
|
|
|
|
|
|
|
|
|
Northern Resources
|
|
$
|
10
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
17
|
|
Southern Resources
|
|
38
|
|
|
23
|
|
|
—
|
|
|
61
|
|
Real Estate
|
|
42
|
|
|
—
|
|
|
69
|
|
|
111
|
|
Manufacturing
|
|
14
|
|
|
4
|
|
|
—
|
|
|
18
|
|
Energy and Natural Resources
|
|
7
|
|
|
2
|
|
|
—
|
|
|
9
|
|
Other
|
|
7
|
|
|
1
|
|
|
11
|
|
|
19
|
|
Other Costs and Eliminations
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
Other Unallocated Operating Income (Expense), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
|
$
|
99
|
|
|
$
|
37
|
|
|
$
|
80
|
|
|
$
|
216
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Income (2)
|
|
|
|
|
|
|
|
|
Equity Earnings from Timberland Venture
|
|
15
|
|
|
|
|
|
|
|
Interest Expense
|
|
(42
|
)
|
|
|
|
|
|
|
(Provision) Benefit for Income Taxes
|
|
(4
|
)
|
|
|
|
|
|
|
Net Income
|
|
$
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Cash Provided By Operating Activities (1)
|
|
|
|
|
|
|
|
|
Net Cash Flows from Operations
|
|
|
|
|
|
|
|
$
|
135
|
|
Interest Expense
|
|
|
|
|
|
|
|
42
|
|
Amortization of Debt Costs
|
|
|
|
|
|
|
|
(1
|
)
|
Provision / (Benefit) for Income Taxes
|
|
|
|
|
|
|
|
4
|
|
Distributions from Timberland Venture
|
|
|
|
|
|
|
|
—
|
|
Distributions from Real Estate Development Ventures
|
|
|
|
|
|
|
|
(2
|
)
|
Equity Earnings, Depletion, Amortization, and Basis of Real Estate
Sold from Real Estate Development Ventures
|
|
|
|
|
|
|
|
19
|
|
Deferred Income Taxes
|
|
|
|
|
|
|
|
(2
|
)
|
Gain on Sale of Properties and Other Assets
|
|
|
|
|
|
|
|
—
|
|
Timber Deed Acquired
|
|
|
|
|
|
|
|
—
|
|
Pension Plan Contributions
|
|
|
|
|
|
|
|
9
|
|
Working Capital Changes
|
|
|
|
|
|
|
|
15
|
|
Other
|
|
|
|
|
|
|
|
(3
|
)
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
$
|
216
|
|
|
(1) Includes Equity Earnings from Real Estate Development
Ventures ($7 million) in Operating Income for the Other Segment, along
with our proportional share of depreciation, depletion, amortization ($1
million), and basis in real estate sold ($11 million) from this equity
method investment.
(2) Includes reconciling items not allocated to segments for
financial reporting purposes.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160203006541/en/
Copyright Business Wire 2016