NEW YORK, April 20 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced cash flow and operating results for the
quarter ended March 31, 2000. The Company also announced the declaration of
its ninth consecutive quarterly distribution to Unitholders of $0.50 per unit,
to be paid on May 15, 2000 to Unitholders of record as of April 28, 2000.
Cash flow for the first quarter of 2000, as measured by EBITDDA, increased
4% to $7.1 million, or $0.54 per unit, compared to cash flow of $6.8 million,
or $0.51 per unit, for the same period in 1999. EBITDDA is defined as
operating income plus depletion, depreciation, road amortization and cost of
timber and property sales. The Company reported that net loss for the first
quarter of 2000 decreased 12% to $1.5 million, or $0.12 per unit, as compared
to net loss of $1.7 million, or $0.13 per unit, for the same period in 1999.
Revenues for the first quarter of 2000 increased 7% to $11.9 million as
compared with $11.1 million for the same period in 1999.
John M. Rudey, Chairman and Chief Executive Officer, stated, "We are
pleased with our results for the first quarter of 2000, particularly given
that this quarter is our seasonal low for generating sales and EBITDDA due to
winter snows and spring breakup. With the payment of our first quarter 2000
distribution, the Company will have distributed $4.73 per unit since going
public in November of 1997."
U.S. Timberlands Company, L.P. and its affiliate, own 670,000 fee acres of
timberland and cutting rights on 3,700 acres of timberland containing total
merchantable timber volume estimated to be approximately 2.3 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.
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Unit Information)
(Unaudited)
Quarter Ended March 31,
2000 1999
Revenues $11,924 $11,129
Cost of timber harvested 3,887 2,021
Depletion, depreciation and road amortization 3,803 3,984
Gross profit 4,234 5,124
Selling, general and administrative 1,956 2,351
Equity in net (income) of affiliate (996) --
Operating income 3,274 2,773
Interest expense 5,454 5,469
Interest (income) (122) (251)
Financing fees 169 169
Other (income) (658) (882)
Loss before general partner and
minority interest (1,569) (1,732)
Minority interest 16 17
Net loss (1,553) (1,715)
General partner interest 16 17
Net loss applicable to common and
subordinated units $(1,537) $(1,698)
Net income per Unit (A) $(0.12) $(0.13)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $7,077 $6,757
EBITDDA per Unit (A) $0.54 $0.51
(A) Calculations of per unit amounts are made after giving effect to the
General Partner'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.
Condensed Consolidated Balance Sheets
(In Thousands)
March 31, December 31,
2000 1999
(Unaudited) *
ASSETS
Current assets:
Cash and cash equivalents $3,329 $2,798
Accounts and current portion
of notes receivable - net 3,361 3,140
Prepaid expenses and other current assets 440 981
Total current assets 7,130 6,919
Timber and timberlands, net 290,575 293,828
Property, plant and equipment, net 987 1,038
Notes receivable - long-term 311 2,304
Investment in affiliate 19,789 18,243
Deferred financing fees 5,155 5,323
Total assets $323,947 $327,655
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable and accrued liabilities $8,932 $4,472
Deferred revenue -- 39
Total current liabilities 8,932 4,511
Long-term debt 225,000 225,000
Minority Interest 900 981
Partners' capital:
Partners' capital 89,115 97,163
Total liabilities and partners' capital $323,947 $327,655
* Derived from audited Consolidated Balance Sheet as of December 31, 1999
U.S. Timberlands Company, L.P.
Condensed Consolidated Statements Of Cash Flows
(In Thousands)
(Unaudited)
Three Months Ended March 31,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities $7,469 $1,746
CASH FLOWS FROM INVESTING ACTIVITIES:
Timber, timberlands and road additions (417) (61)
Purchase of property, plant and equipment - net (6) (36)
Proceeds from sale of assets 46 --
Increase in other assets -- (1,000)
Net cash used in investing activities (377) (1,097)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term borrowings - 1,300
Distributions to unitholders, general partner,
and minority interest (6,561) (6,561)
Net cash used in financing activities (6,561) (5,261)
Decrease in cash and cash equivalents 531 (4,612)
Cash and cash equivalents - beginning of period 2,798 4,824
Cash and cash equivalents - end of period $3,329 $ 212
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, 212-755-1100
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