NEW YORK, Feb. 28 /PRNewswire/ --
U.S. Timberlands Company, L.P. (Nasdaq: TIMBZ) announced today an adjustment
to its cash flow and operating results for the year 2000 announced January 25,
2001. As the result of a change in the methodology of accounting for the
allocation of income from an unconsolidated affiliate, cash flow for the year
ended December 31, 2000, as measured by EBITDDA, was reduced by $0.7 million,
from $49.8 million to
$49.1 million. EBITDDA was reduced from $3.80 per unit to $3.74 per unit.
Similarly, the Company's reported loss of $3.5 million increased by
$0.7 million to $4.2 million. Earnings per unit dropped from a loss of
$0.27 per unit to a loss of $0.33 per unit. The accounting change was
recommended by the Company's auditors as a consequence of their final year end
review of the previously reviewed quarterly and year end financials after
completion of the 2000 audit. The previous methodology had been consistently
applied across all previous accounting periods and will result in amendments
of the quarterly filings for fiscal 2000. This reduction in earnings and cash
flow has no affect on the Company's cash position, its ability to pay the
previously announced distribution and violates no financial covenant with its
lenders.
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 2.5 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 law.
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.
SOURCE U.S. Timberland L.P.
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Related links:
http://www.ustimberlands.com
CONTACT:
Thomas C. Ludlow, Chief Financial Officer of
U.S. Timberlands Company, L.P., 212-755-1100
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