NEW YORK, Jan. 26 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced cash flow and operating results for the fourth
quarter and year ended December 31, 1999. The Company also announced the
declaration of its eighth consecutive quarterly distribution to Unitholders of
$0.50 per unit.
Cash flow for the fourth quarter of 1999, as measured by EBITDDA,
decreased 13% to $11.1 million, or $0.85 per unit, compared to cash flow of
$12.8 million, or $0.98 per unit, for the same period in 1998. EBITDDA is
defined as operating income plus depletion, depreciation, road amortization
and cost of timber and property sales. The Company reported a net loss of
$0.3 million, or $.03 per unit, for the fourth quarter as compared to net
income of $0.6 million, or $0.05 per unit, for the same period in 1998.
Revenues for the fourth quarter of 1999 decreased 5% to $19.4 million compared
with $20.4 million for the same period in 1998. The decrease in revenues
resulted from a planned 2.6 million board feet decrease in log and timber
sales in the fourth quarter of 1999 versus the same period in 1998. The
decreases in earnings and EBITDDA for the quarter were primarily a result of
the sales volume decrease and the Company's $0.9 million share of a non-cash
loss from an affiliate.
Cash flow for the year ended December 31, 1999, as measured by EBITDDA,
increased 14% to $50.6 million, or $3.85 per unit, compared to cash flow of
$44.2 million, or $3.37 per unit, for the same period in 1998. The Company
reported net income for 1999 of $6.2 million, or $0.48 per unit, as compared
with a loss of $6.3 million, or $0.49 per unit for the same period in 1998.
Revenues for 1999 increased 8% to $77.0 million compared with $71.3 million
for the same period in 1998.
John M. Rudey, Chairman and Chief Executive Officer, stated, "I am pleased
that through the fine efforts of our management team, the Company generated
$50.6 million of EBITDDA in 1999. Also, as previously announced, in the
fourth quarter of 1999 the Company's affiliate, U.S. Timberlands Yakima, LLC,
closed its acquisition of 56,000 acres of Central Washington timberlands with
460 million board feet of primarily Douglas-fir and ponderosa pine timber. We
are looking forward to pursuing additional new opportunities in 2000."
The quarterly distribution to Unitholders of $0.50 per unit will be paid
on February 16, 2000 to Unitholders of record as of February 7, 2000.
U.S. Timberlands Company, L.P. and its affiliates, own 671,000 fee acres
of timberland and cutting rights on 3,700 acres of timberland containing total
merchantable timber volume estimated to be approximately 2.4 billion board
feet in Oregon and Washington, east of the Cascade Range. U.S. Timberlands
specializes in the growing of trees and the sale of logs and standing timber.
Logs harvested from the timberlands are sold to unaffiliated domestic
conversion facilities. These logs are processed for sale as lumber, molding
products, doors, millwork, commodity, specialty and overlaid plywood products,
laminated veneer lumber, engineered wood I-beams, particleboard, hardboard,
paper and other wood products. These products are used in residential,
commercial and industrial construction, home remodeling and repair and general
industrial applications as well as a variety of paper products. U.S.
Timberlands also owns and operates its own seed orchard and produces
approximately five million conifer seedlings annually from its nursery,
approximately half of which are used for its own internal reforestation
programs, with the balance sold to other forest products companies.
Certain information discussed in this press release may constitute
forward-looking statements within the meaning of the Federal securities laws.
Although U.S. Timberlands believes that expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it can give
no assurance that its expectations will be achieved. Forward-looking
information is subject to certain risks, trends, and uncertainties that could
cause actual results to differ materially from those projected. Such risks,
trends and uncertainties include the highly cyclical nature of the forest
products industry, economic conditions in export markets, the possibility that
timber supply could increase if governmental, environmental or endangered
species policies change, and limitations on U.S. Timberlands' ability to
harvest its timber due to adverse natural conditions or increased governmental
restrictions. For a more complete description of factors, which could impact
U.S. Timberlands and the statements contained herein, reference should be made
to U.S. Timberlands' filings with the United States Securities and Exchange
Commission.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Unit)
(Unaudited)
Quarter Ended December 31,
1999 1998
Revenues $19,393 $20,417
Cost of timber harvested 5,339 4,238
Depletion, depreciation and
road amortization 5,988 7,448
Silviculture 211 321
Gross profit 7,855 8,410
Selling, general and
administrative 1,837 3,047
Share of net loss of affiliate 900 --
Operating income 5,118 5,363
Interest expense 5,476 5,497
Interest (income) (160) (121)
Financing fees 169 169
Other (income) (19) (830)
Income (loss) before
general partner and
minority interest (348) 648
Minority interest 3 (6)
Net income (loss) (345) 642
General partner interest 3 (6)
Net income (loss) applicable
to common and
subordinated units $(342) $636
Net income (loss)
per Unit (A) $(0.03) $0.05
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $11,106 $12,811
EBITDDA per Unit (A) $0.85 $0.98
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Unit)
(Unaudited)
Year Ended December 31,
1999 1998
Revenues $76,993 $71,324
Cost of timber harvested 16,320 15,950
Cost of timberland sales -- 5,917
Depletion, depreciation and
road amortization 23,317 21,938
Silviculture 734 733
Gross Profit 36,622 26,786
Selling, general and
administrative 8,478 10,462
Share of net loss of
affiliate 900 -
Operating income 27,244 16,324
Interest expense 21,935 22,183
Interest (income) (565) (460)
Financing fees 675 675
Other (income)
expense - net (1,160) 309
Income (loss) before general
partner and minority interest 6,359 (6,383)
Minority interest (64) 64
Net income (loss) 6,295 (6,319)
General partner interest (64) 64
Net income (loss) applicable
to common and
subordinated units $6,231 $(6,255)
Net income (loss) per Unit (A) $0.48 $(0.49)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $50,561 $44,179
EBITDDA per Unit (A) $3.85 $3.37
(A) Calculations of per unit amounts are made after giving effect to the
General Partner's and Minority Interest's allocation of net income
(loss) or EBITDDA.
(B) EBITDDA is defined as operating income plus depletion, depreciation,
road amortization and cost of timber and property sales.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
December 31, December 31,
1999 1998
(Unaudited) *
Assets
Current assets
Cash and cash equivalents $2,798 $4,824
Accounts and current portion
of notes receivable - net 3,140 3,819
Prepaid expenses and
other current assets 981 426
Total current assets 6,919 9,069
Timber, timberlands
and roads - net 293,828 334,476
Property, plant
and equipment - net 1,038 1,154
Notes receivable - long term 2,304 -
Investment in affiliate 18,245 -
Deferred financing fees 5,323 5,998
Total assets $327,657 $350,697
Liabilities
Current liabilities
Accounts payable and
accrued liabilities $4,472 $6,052
Deferred revenue 39 1,614
Total current liabilities 4,511 7,666
Long-term debt 225,000 225,000
Minority interest 981 1,180
Partners' Capital
Partners' capital 97,165 116,851
Total liabilities and
partners' capital $327,657 $350,697
* Derived from audited Consolidated Balance Sheet as of December 31, 1998.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Year Ended December 31,
1999 1998
Cash Flows From Operating Activities:
Net income (loss) $6,295 $(6,319)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depletion, depreciation
and road amortization 23,318 21,938
Cost of timberlands sold -- 5,917
Share of net loss of affiliate 900 --
Financing fees 675 675
Other non-cash items 357 297
Working capital
changes - net (3,941) (5,029)
Net cash provided by
operating activities 27,604 17,479
Cash Flows From Investing Activities:
Timber, timberlands and
road additions (752) (610)
Purchase of property, plant
and equipment - net (36) (32)
(Increase) decrease in
notes receivable - net (2,304) 1,065
Investment in affiliate (294) -
Net cash used in
investing activities (3,386) 423
Cash Flows From Financing Activities:
Distributions to
Unitholders (26,244) (22,703)
Payment to affiliate - (1,000)
Net cash used in
financing activities (26,244) (23,703)
Decrease in cash and
cash equivalents (2,026) (5,801)
Cash and cash equivalents -
beginning of period 4,824 10,625
Cash and cash equivalents -
end of period $2,798 $4,824
SOURCE U.S. Timberland Company, L.P.
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Related links:
http://www.ustimberlands.com
CONTACT:
Greg Byrne, Chief Financial Officer of U.S.
Timberlands Company, L.P., 212-755-1100; or Ed Bisno, Vice
President of Edelman Financial Worldwide, 212-704-8212, for U.S.
Timberlands Company, L.P.
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