SEATTLE - Plum Creek Timber Company, Inc. (NYSE:PCL) today announced third quarter earnings of $61 million, or $0.34 per diluted share, on revenues of $375 million. Third quarter earnings include a $3 million, or $0.02 per diluted share, after-tax gain from insurance recoveries related to the fire at the MDF plant in Montana earlier in the year.

Earnings for the third quarter of 2013 were $72 million, or $0.44 per diluted share, on revenues of $366 million. The results for the third quarter of 2013 include a $4 million, or $0.02 per diluted share, non-cash expense related to forest fire losses experienced in Montana and Oregon during the quarter.

Earnings for the first nine months of 2014 were $146 million, or $0.82 per diluted share, on revenues of $1.0 billion. The results for the first nine months include $2 million, or $0.01 per share, after-tax gain related to the MDF fire. For the first nine months of 2013, earnings were $174 million, or $1.06 per diluted share, on revenues of $1.0 billion. The 2013 results include the non-cash expense related to the forest fire losses referenced above.

Adjusted EBITDA, a non-GAAP measure of operating performance, for the first nine months of 2014 was $389 million, slightly higher than the $384 million in the same period of 2013. A reconciliation of adjusted EBITDA to net income and cash flow from operations is provided as an attachment to this release.

“During the third quarter, Plum Creek performed well in a continuing slow-growth environment,” said Rick Holley, chief executive officer. “Strong timber markets in our Northern Resources segment, combined with incremental harvest from the timberlands acquired last December, resulted in good operating income growth from our timber resources segments. Our Manufacturing operations are producing another strong year of performance while our Energy and Natural Resources segment is contributing to earnings and cash flow growth as well.

“The assets we acquired from MeadWestvaco continue to perform in-line with our expectations, and have contributed more than $61 million in operating cash flow for the first nine months of the year. As expected, the acquisition will be cash accretive on a per share basis in 2014.”

Review of Third Quarter Operations

The Northern Resources segment reported operating income of $13 million during the third quarter, compared to the $5 million reported during the third quarter of 2013. The 2013 results were adversely impacted by a $4 million non-cash loss from forest fires in the West. Overall harvest volumes were largely unchanged. Sawlog prices have advanced $7 per ton, about 9 percent, over the past year on continued strong sawlog demand in the West and increased demand for hardwood sawtimber in the Northeast. Average hardwood pulpwood prices increased $3 per ton, about 7 percent over the third quarter of 2013. Good demand for pulpwood combined with periods of wet weather kept pulpwood inventories tight at paper mills in the Northern Hardwoods region.

Operating income in the Southern Resources segment was $35 million, up $8 million from the $27 million reported for the third quarter of 2013. Average sawlog prices were unchanged compared to the third quarter of 2013. Pulpwood prices have increased $1 per ton, approximately 9 percent, from third quarter 2013 levels. Southern timberlands acquired in December 2013 drove all of the 16 percent increase in harvest volume over the prior year’s quarter, and contributed approximately $6 million of the $8 million increase in operating income.

The Real Estate segment reported revenue of $69 million and operating income of $34 million in the third quarter of 2014. Third quarter 2013 revenue was $96 million and operating income was $63 million. During the third quarter of 2014, the company sold a total of 25,775 acres of recreation lands for $2,445 per acre and 3,245 acres of small, non-strategic timberlands at an average price of $1,030 per acre. The company also sold 2,455 acres of conservation lands at an average price of $1,230 per acre.

The Manufacturing segment reported operating income of $16 million for the third quarter. These results include a $5 million pre-tax insurance recovery gain. Excluding the non-recurring gain, results for the Manufacturing segment were similar to the $11 million reported for the third quarter of 2013. Improved pricing for lumber and plywood grew profits from those product lines. These improvements were offset by lower MDF demand that impacted sales volume.

Share Repurchase

During the third quarter of 2014, the company repurchased $50 million, or approximately 1.2 million shares, of its common stock at an average price of $40.21 per share. As of September 30, 2014, the company had approximately 176 million shares outstanding and $125 million remaining on its current share repurchase authorization.

Outlook

Residential construction markets have been slower to recover than the company and many experts expected. Housing starts in 2014 are expected to increase about 8 percent, a labored pace compared to prior recoveries. Over the next few years the company expects residential construction activity will grow to demographically supportable levels of about 1.5 million starts. However, the company currently expects residential construction markets will likely maintain their slow growth during the balance of 2014 and 2015. The company now expects housing starts to increase approximately 10 percent in 2015 to about 1.1 million starts.

“With residential construction growth continuing at a slow pace, we are planning to operate conservatively during the balance of 2014 and into 2015,” continued Holley. “Our long standing goal of maximizing the net present value of our harvest means we plan to maintain our current harvest level until Southern sawlog prices improve.”

During the fourth quarter, harvest levels in the Northern and Southern Resources segments are expected to be similar to third quarter levels. As a result, overall harvest levels for the year are expected to be in the 19.2 to 19.5 million ton range.

Fourth quarter Real Estate segment revenues are expected to be between $105 and $125 million. These expectations include the Washington state portion of the conservation transaction with The Nature Conservancy. The company expects full-year Real Estate segment sales to be between $275 and $295 million.

The Manufacturing segment is expected to report fourth quarter results similar to the third quarter excluding any gains recognized as part of the MDF reconstruction.

The company expects to report fourth quarter earnings between $0.29 and $0.39 per share, resulting in full-year 2014 net income between $1.10 and $1.20 per share excluding any impacts from the second quarter MDF fire.

“Long-term planning and disciplined capital allocation are always at the center of our strategies to protect and create shareholder value. Consistent with this strategy, we repurchased $50 million of stock during the third quarter at a compelling discount to our net asset value and will continue to look at additional repurchase opportunities,” concluded Holley.

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 
 

Nine Months Ended
September 30,

(In Millions, Except Per Share Amounts) 2014   2013
REVENUES:
Timber $ 563 $ 487
Real Estate 169 227
Manufacturing 275 279
Energy and Natural Resources 26 16
Other 15    
Total Revenues 1,048   1,009  
 
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber 407 364
Real Estate 75 83
Manufacturing 241 237
Energy and Natural Resources 8 3
Other 14    
Total Cost of Goods Sold 745 687
Selling, General and Administrative 82   89  
Total Costs and Expenses 827   776  
 
Other Operating Income (Expense), net 9   (2 )
 
Operating Income 230 231
 
Earnings from Unconsolidated Entities 44 47
 
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties) 81 61
Interest Expense (Note Payable to Timberland Venture) 43   43  
Total Interest Expense, net 124 104
 
Income before Income Taxes 150 174
 
Provision (Benefit) for Income Taxes 4
   
Net Income $ 146   $ 174  
 
PER SHARE AMOUNTS:
 
Net Income per Share – Basic $ 0.82 $ 1.06
Net Income per Share – Diluted $ 0.82 $ 1.06
 
Weighted-Average Number of Shares Outstanding
– Basic 177.0 162.7
– Diluted 177.3 163.2
 
 
SUPPLEMENTAL INCOME STATEMENT INFORMATION:
Equity Earnings from Timberland Venture $ 48 $ 47
Equity Loss from Real Estate Development Ventures (4 )  
Earnings from Unconsolidated Entities $ 44 $ 47
 
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 
 

Quarter Ended
September 30,

(In Millions, Except Per Share Amounts) 2014   2013
REVENUES:
Timber $ 200 $ 171
Real Estate 69 96
Manufacturing 91 94
Energy and Natural Resources 8 5
Other 7    
Total Revenues 375   366  
 
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber 144 132
Real Estate 35 31
Manufacturing 78 80
Energy and Natural Resources 3 1
Other 6    
Total Cost of Goods Sold 266 244
Selling, General and Administrative 23   28  
Total Costs and Expenses 289   272  
 
Other Operating Income (Expense), net 5   (3 )
 
Operating Income 91 91
 
Earnings from Unconsolidated Entities 15 16
 
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties) 27 20
Interest Expense (Note Payable to Timberland Venture) 14   14  
Total Interest Expense, net 41 34
 
Income before Income Taxes 65 73
 
Provision (Benefit) for Income Taxes 4 1
   
Net Income $ 61   $ 72  
 
PER SHARE AMOUNTS:
 
Net Income per Share – Basic $ 0.34 $ 0.44
Net Income per Share – Diluted $ 0.34 $ 0.44
 
Weighted-Average Number of Shares Outstanding
– Basic 176.8 163.0
– Diluted 177.1 163.4
 
 
SUPPLEMENTAL INCOME STATEMENT INFORMATION:
Equity Earnings from Timberland Venture $ 16 $ 16
Equity Loss from Real Estate Development Ventures (1 )  
Earnings from Unconsolidated Entities $ 15 $ 16
 
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 
(In Millions, Except Per Share Amounts)   September 30,
2014
  December 31,
2013
ASSETS
Current Assets:
Cash and Cash Equivalents $ 90 $ 433
Accounts Receivable 44 29
Inventories 59 55
Deferred Tax Asset 4 9
Assets Held for Sale 30 92
Other Current Assets 21   15  
248 633
 
Timber and Timberlands, net 4,156 4,180
Minerals and Mineral Rights, net 292 298
Property, Plant and Equipment, net 119 118
Equity Investment in Timberland Venture 202 211
Equity Investment in Real Estate Development Ventures 139 139
Deferred Tax Asset 20 17
Investment in Grantor Trusts (at Fair Value) 47 45
Other Assets 54   54  
Total Assets $ 5,277   $ 5,695  
 
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt $ $
Line of Credit 152 467
Accounts Payable 36 24
Interest Payable 32 22
Wages Payable 20 29
Taxes Payable 17 10
Deferred Revenue 29 26
Other Current Liabilities 8   10  
294 588
 
Long-Term Debt 2,415 2,414
Note Payable to Timberland Venture 783 783
Other Liabilities 81   78  
Total Liabilities 3,573   3,863  
 
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) – 175.9 at September 30, 2014 and 177.0 at December 31, 2013 2 2
Additional Paid-In Capital 2,952 2,942
Retained Earnings (Accumulated Deficit) (261 ) (173 )
Treasury Stock, at Cost, Common Shares – 28.3 at September 30, 2014 and 27.0 at December 31, 2013 (992 ) (940 )
Accumulated Other Comprehensive Income (Loss) 3   1  
Total Stockholders’ Equity 1,704   1,832  
Total Liabilities and Stockholders’ Equity $ 5,277   $ 5,695  
 
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 
 

Nine Months Ended September 30,

(In Millions) 2014   2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 146 $ 174
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $2 MDF Fire Impairment Loss in 2014 and $4 Loss Related to Forest Fires in 2013) 101 86
Basis of Real Estate Sold 60 69
Earnings from Unconsolidated Entities (44 ) (47 )
Distributions from Timberland Venture 57 56
Deferred Income Taxes 2 (1 )
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) (4 ) (6 )
Timber Deed Acquired (18 )
Working Capital Changes 4 (12 )
Other   19  
Net Cash Provided By (Used In) Operating Activities 322   320  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures, Excluding Timberland Acquisitions (Includes $9 MDF Fire Replacement Capital in 2014) (65 ) (51 )
Timberlands Acquired (80 )
Mineral Rights Acquired (156 )
Contributions to Real Estate Development Ventures (9 )
Distributions from Real Estate Development Ventures 5
Insurance Recoveries (Property Damage) 3    
Net Cash Provided By (Used In) Investing Activities (66 ) (287 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends (234 ) (212 )
Borrowings on Line of Credit 985 1,251
Repayments on Line of Credit (1,300 ) (848 )
Principal Payments and Retirement of Long-Term Debt (174 )
Proceeds from Stock Option Exercises 2 35
Acquisition of Treasury Stock (52 ) (2 )
Net Cash Provided By (Used In) Financing Activities (599 ) 50  
 
Increase (Decrease) In Cash and Cash Equivalents (343 ) 83
Cash and Cash Equivalents:
Beginning of Period 433 356
   
End of Period $ 90   $ 439  
 
 

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 
 

Quarter Ended September 30,

(In Millions) 2014   2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 61 $ 72
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $4 Loss Related to Forest Fires in 2013) 35 35
Basis of Real Estate Sold 29 27
Earnings from Unconsolidated Entities (15 ) (16 )
Distributions from Timberland Venture 29 29
Deferred Income Taxes 2
Deferred Revenue from Long-Term Gas Leases (Net of Amortization) (2 ) (2 )
Working Capital Changes (3 ) 28
Other (3 ) 7  
Net Cash Provided By (Used In) Operating Activities 133   180  
 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures, Excluding Timberland Acquisitions (Includes $5 MDF Fire Replacement Capital in 2014) (25 ) (20 )
Timberlands Acquired (2 )
Mineral Rights Acquired (156 )
Contributions to Real Estate Development Ventures (5 )
Distributions from Real Estate Development Ventures 4
Insurance Recoveries (Property Damage) 3    
Net Cash Provided By (Used In) Investing Activities (23 ) (178 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends (78 ) (72 )
Borrowings on Line of Credit 237 530
Repayments on Line of Credit (237 ) (376 )
Proceeds from Stock Option Exercises 1
Acquisition of Treasury Stock (50 )  
Net Cash Provided By (Used In) Financing Activities (127 ) 82  
 
Increase (Decrease) In Cash and Cash Equivalents (17 ) 84
Cash and Cash Equivalents:
Beginning of Period 107 355
   
End of Period $ 90   $ 439  
 
 

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)

 
  Nine Months Ended September 30,
(In Millions) 2014   2013
Revenues:
Northern Resources $ 198 $ 194
Southern Resources 386 313
Real Estate 169 227
Manufacturing 275 279
Energy and Natural Resources 26 16
Other 15
Eliminations (21 ) (20 )
Total Revenues $ 1,048   $ 1,009  
 
Operating Income (Loss):
Northern Resources $ 34 $ 24
Southern Resources 99 74
Real Estate 91 138
Manufacturing (A) 35 35
Energy and Natural Resources 18 14
Other (B) (5 )
Other Costs and Eliminations, net (C) (46 ) (54 )
Total Operating Income $ 226   $ 231  
 
Adjusted EBITDA by Segment: (D)
Northern Resources $ 55 $ 47
Southern Resources 158 119
Real Estate 152 208
Manufacturing 47 47
Energy and Natural Resources 24 16
Other (2 )
Other Costs and Eliminations, net (45 ) (53 )
Total $ 389   $ 384  
 

(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 first nine months of 2014, we also recorded a $9 million gain related to partial insurance recoveries the company expects to receive. The amount of insurance recoveries was based on the costs incurred during the first nine months of 2014 to rebuild or replace the damaged building and equipment. Substantially all of these costs were capitalized during the first nine months of 2014. 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) For Segment reporting, Equity Loss from Real Estate Development Ventures of $(4) million is included in Operating Income (Loss) for the Other Segment.

(C) During the first nine months of 2013, the company recorded a loss of $5 million related to the early termination of an equipment lease. The lease was accounted for as an operating lease. This amount is reported as an operating loss in Other Costs and Eliminations, net and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

(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 September 30,
(In Millions) 2014   2013
Revenues:
Northern Resources $ 71 $ 67
Southern Resources 136 111
Real Estate 69 96
Manufacturing 91 94
Energy and Natural Resources 8 5
Other 7
Eliminations (7 ) (7 )
Total Revenues $ 375   $ 366  
 
Operating Income (Loss):
Northern Resources $ 13 $ 5
Southern Resources 35 27
Real Estate 34 63
Manufacturing (A) 16 11
Energy and Natural Resources 6 5
Other (B) (1 )
Other Costs and Eliminations, net (C) (13 ) (20 )
Total Operating Income $ 90   $ 91  
 
Adjusted EBITDA by Segment: (D)
Northern Resources $ 20 $ 16
Southern Resources 57 44
Real Estate 64 91
Manufacturing 19 15
Energy and Natural Resources 8 6
Other 1
Other Costs and Eliminations, net (13 ) (20 )
Total $ 156   $ 152  
 

(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 third quarter of 2014, we recorded a $5 million gain related to partial insurance recoveries the company expects to receive. The amount of insurance recoveries was based on the costs incurred during the third quarter of 2014 to rebuild or replace the damaged building and equipment. Substantially all of these costs were capitalized during the third quarter of 2014. 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) For Segment reporting, Equity Loss from Real Estate Development Ventures of $(1) million is included in Operating Income (Loss) for the Other Segment.

(C) During the third quarter of 2013, the company recorded a loss of $5 million related to the early termination of an equipment lease. The lease was accounted for as an operating lease. This amount is reported as an operating loss in Other Costs and Eliminations, net and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

(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
September 30, 2014
(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 second quarter and third quarter 2014 operating income and the estimates that are expected to impact our fourth quarter 2014 operating income.

 
  2014
(In Millions) 2nd Qtr   3rd Qtr   4th Qtr   Total

Impacts on Operating Results:

Foregone MDF Income $ (4 ) $ $ $ (4 )
Business Interruption Recoveries(1) $ $ $ 4 $ 4
Loss on Property, Plant and Equipment $ (2 ) $ $ $ (2 )
Property Insurance Recoveries(1) $ 4   $ 5   $ 1   $ 10  
Net Impact on Manufacturing Operating Income $ (2 ) $ 5   $ 5   $ 8  
Impact on Net Income $ (1 ) $ 3   $ 3   $ 5  
Impact on Diluted EPS $ (0.01 ) $ 0.02   $ 0.02   $ 0.03  
 

(1) The expected insurance recoveries reflect the impact of our cumulative $1 million deductible. Business interruption recoveries will be recorded when the cash payment is received. Property insurance recoveries are recorded when the repair expenditures have been incurred by the company. As of September 30, 2014, $3 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 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:

 
  Nine Months Ended September 30, 2014
     

Operating
Income

Depreciation,
Depletion and
Amortization

Basis of
Real Estate
Sold

Adjusted
EBITDA

By Segment (1)
Northern Resources $ 34 $ 21 $ $ 55
Southern Resources 99 59 158
Real Estate 91 1 60 152
Manufacturing 35 12 47
Energy and Natural Resources 18 6 24
Other (5 ) 1 2 (2 )
Other Costs and Eliminations (48 ) 1 (47 )
Other Unallocated Operating Income (Expense), net 2       2  
Total $ 226   $ 101   $ 62   $ 389  
 
Reconciliation to Net Income (2)
Equity Earnings from Timberland Venture 48
Interest Expense (124 )
(Provision) Benefit for Income Taxes (4 )
Net Income $ 146  
 
Reconciliation to Net Cash Provided By Operating Activities (1)
Net Cash Flows from Operations $ 322
Interest Expense 124
Amortization of Debt Costs (1 )
Provision / (Benefit) for Income Taxes 4
Distributions from Timberland Venture (57 )
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures (1 )
Deferred Income Taxes (2 )
Gain on Sale of Properties and Other Assets
Deferred Revenue from Long-Term Gas Leases 4
Timber Deed Acquired
Pension Plan Contributions
Working Capital Changes (4 )
Other  
Adjusted EBITDA $ 389  
 

(1) Includes Equity Loss from Real Estate Development Ventures ($4 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 ($2 million) from this equity method investment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

 
  Nine Months Ended September 30, 2013
     

Operating
Income

Depreciation,
Depletion and
Amortization (1)

Basis of
Real Estate
Sold

Adjusted
EBITDA

By Segment
Northern Resources $ 24 $ 23 $ $ 47
Southern Resources 74 45 119
Real Estate 138 1 69 208
Manufacturing 35 12 47
Energy and Natural Resources 14 2 16
Other
Other Costs and Eliminations (51 ) 1 (50 )
Other Unallocated Operating Income (Expense), net (3 )     (3 )
Total $ 231   $ 84   $ 69   $ 384  
 
Reconciliation to Net Income (2)
Equity Earnings from Timberland Venture 47
Interest Expense (104 )
(Provision) Benefit for Income Taxes  
Net Income $ 174  
 
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations $ 320
Interest Expense 104
Amortization of Debt Costs (2 )
Provision / (Benefit) for Income Taxes
Distributions from Timberland Venture (56 )
Equity Earnings, Depletion, Amortization and Basis of Real Estate Sold from Real Estate Development Ventures
Deferred Income Taxes 1
Gain on Sale of Properties and Other Assets
Deferred Revenue from Long-Term Gas Leases 6
Timber Deed Acquired 18
Pension Plan Contributions
Working Capital Changes 12
Other (19 )
Adjusted EBITDA $ 384  
 

(1) Includes a $4 million loss due to forest fire damages in the Northern Resources Segment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

 
  Quarter Ended September 30, 2014
     

Operating
Income

Depreciation,
Depletion and
Amortization

Basis of
Real Estate
Sold

Adjusted
EBITDA

By Segment (1)
Northern Resources $ 13 $ 7 $ $ 20
Southern Resources 35 22 57
Real Estate 34 1 29 64
Manufacturing 16 3 19
Energy and Natural Resources 6 2 8
Other (1 ) 2 1
Other Costs and Eliminations (13 ) (13 )
Other Unallocated Operating Income (Expense), net        
Total $ 90   $ 35   $ 31   $ 156  
 
Reconciliation to Net Income (2)
Equity Earnings from Timberland Venture 16
Interest Expense (41 )
(Provision) Benefit for Income Taxes (4 )
Net Income $ 61  
 
Reconciliation to Net Cash Provided By Operating Activities (1)
Net Cash Flows from Operations $ 133
Interest Expense 41
Amortization of Debt Costs
Provision / (Benefit) for Income Taxes 4
Distributions from Timberland Venture (29 )
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures 1
Deferred Income Taxes (2 )
Gain on Sale of Properties and Other Assets
Deferred Revenue from Long-Term Gas Leases 2
Timber Deed Acquired
Pension Plan Contributions
Working Capital Changes 3
Other 3  
Adjusted EBITDA $ 156  
 

(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 million), and basis in real estate sold ($2 million) from this equity method investment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

 
  Quarter Ended September 30, 2013
     

Operating
Income

Depreciation,
Depletion and
Amortization (1)

Basis of
Real Estate
Sold

Adjusted
EBITDA

By Segment
Northern Resources $ 5 $ 11 $ $ 16
Southern Resources 27 17 44
Real Estate 63 1 27 91
Manufacturing 11 4

15
Energy and Natural Resources 5 1 6
Other

 

Other Costs and Eliminations (16 ) (16 )
Other Unallocated Operating Income (Expense), net (4 )     (4 )
Total $ 91   $ 34   $ 27   $ 152  
 
Reconciliation to Net Income (2)
Equity Earnings from Timberland Venture 16
Interest Expense (34 )
(Provision) Benefit for Income Taxes (1 )
Net Income $ 72  
 
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations $ 180
Interest Expense 34
Amortization of Debt Costs (1 )
Provision / (Benefit) for Income Taxes 1
Distributions from Timberland Venture (29 )
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures
Deferred Income Taxes
Gain on Sale of Properties and Other Assets
Deferred Revenue from Long-Term Gas Leases 2
Timber Deed Acquired
Pension Plan Contributions
Working Capital Changes (28 )
Other (7 )
Adjusted EBITDA $ 152  
 

(1) Includes a $4 million loss due to forest fire damages in the Northern Resources Segment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

 

Source: Plum Creek Timber Company, Inc.

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