- Announces Quarterly Distribution to Unitholders -
- Board of Directors Authorizes Unit Buyback Program -
NEW YORK, April 21 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced cash flow and operating results for the
quarter ended March 31, 1999. The Company also announced the declaration of
its fifth quarterly distribution to Unitholders of $0.50 per unit and the
Board of Directors authorization of a unit buyback program.
Cash flow for the first quarter of 1999, as measured by EBITDDA, increased
353% to $6.8 million, or $0.51 per unit, compared to cash flow of
$1.5 million, or $0.11 per unit, for the first quarter of 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 for
the first quarter of $1.7 million, or $0.13 per unit, compared with a loss of
$6.7 million, or $0.51 per unit, for the same period in 1998. Included in the
first quarter 1999 net loss is $0.8 million of income related to a
mark-to-market adjustment on a financial instrument. Revenues for the first
quarter of 1999 increased 42% to $11.1 million compared with $7.8 million for
the same period in 1998. The increase in EBITDDA and revenues during the
first quarter of 1999 is due principally to the recognition of deferred
revenue through the conversion to timber deeds of approximately $5.5 million
of stumpage sales executed in 1998.
John M. Rudey, Chairman stated, "We are pleased with the results of the
first quarter of 1999 and are encouraged by improving lumber prices since the
end of 1998. Despite a competitive market environment we continue to provide
consistent value to Unitholders through quarterly cash distributions. In
addition, our management team is actively pursuing acquisition opportunities
that will create accretive cash flow for the Company as well as, developing
new fiber marketing strategies that will enhance equity value."
The fifth quarterly distribution to Unitholders of $0.50 per unit will be
paid on May 14, 1999 to Unitholders of record as of May 4, 1999.
The Company's Board of Directors has authorized a buyback program of up to
2,572,000 units or 20% of its outstanding units. Purchases may be made at the
Company's option from time to time in open market transactions at prevailing
prices or through privately negotiated transactions.
U.S. Timberlands Company, L.P. owns 615,000 fee acres of timberland and
cutting rights on 3,000 acres of timberland containing total merchantable
timber volume estimated to be approximately 2.1 billion board feet in Oregon
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.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Unit)
(Unaudited)
Quarter Ended March 31,
1999 1998
Revenues $11,129 $7,757
Costs and expenses
Cost of goods sold 2,021 2,654
Depletion, depreciation
and road amortization 3,984 2,760
Selling, general and
administrative 2,351 3,626
Total costs and expenses 8,356 9,040
Operating income 2,773 (1,283)
Interest expense 5,469 5,463
Interest income (251) (176)
Financing fees 169 169
Other income (882) (25)
Net loss $(1,732) $(6,714)
Net loss per Unit (A) $(0.13) $(0.51)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $6,757 $1,477
EBITDDA per Unit (A) $0.51 $0.11
(A) Calculations of per unit amounts are made after giving effect to the
General Partner's allocation of net 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)
March 31, December 31,
1999 1998
(Unaudited) *
Assets
Current assets
Cash and cash equivalents $212 $4,824
Accounts and current portion
of notes receivable -- net 4,165 2,706
Prepaid expenses and other 509 1,539
Total current assets 4,886 9,069
Timber, timberlands and
roads -- net 329,411 333,317
Seed and nursery stock 1,281 1,159
Property, plant and
equipment -- net 1,159 1,154
Notes receivable 1,117 --
Deferred financing fees 5,830 5,998
Other assets 1,000 --
Total assets $344,684 $350,697
Liabilities
Current liabilities
Accounts payable and
accrued liabilities $8,645 $6,052
Deferred revenue -- 1,614
Short-term debt 1,300 --
Total current liabilities 9,945 7,666
Long-term debt 225,000 225,000
Minority interest 1,097 1,180
Partners' Capital
Partners' Capital 108,642 116,851
Total liabilities and
partners' capital $344,684 $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)
Three Months Ended March 31,
1999 1998
Cash Flows From
Operating Activities:
Net loss $(1,732) $(6,714)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Depletion, depreciation
and road amortization 3,984 2,760
Financing fees 169 169
Other non-cash items (800) --
Working capital
changes -- net 4,389 4,758
Net cash provided by
operating activities 6,010 973
Cash Flows From
Investing Activities:
Purchase of property, plant
and equipment -- net (36) (33)
Increase in notes receivable (4,264) --
Capitalized seed and
nursery costs -- net (61) (64)
Increase in other assets (1,000) --
Net cash used in investing
activities (5,361) (97)
Cash Flows From
Financing Activities:
Short-term borrowings 1,300 --
Distributions to unitholders (6,561) --
Net cash used in financing
activities (5,261) --
(Decrease) increase in cash
and cash equivalents (4,612) 876
Cash and cash equivalents
-- beginning of period 4,824 10,625
Cash and cash equivalents
-- end of period $212 $11,501
SOURCE U.S. Timberlands Company, L.P.
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Related links:
http://www.ustimberlands.com
Company News On-Call:
http://www.prnewswire.com/comp/128507.html or fax,
800-758-5804, ext. 128507
CONTACT:
Greg Byrne of U.S. Timberlands Company, L.P.,
212-755-1100; Stefanie King, 212-704-8291, or Denise Roche,
212-704-4533; both of Edelman Financial, for U.S. Timberlands
Company, L.P.
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