SEATTLE, Wash., April 23 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) announced cash flow and operating results for the first
quarter ended March 31, 1998. The Company also announced the declaration of
its first quarterly distribution to Unitholders of $0.73 per unit.
Cash flow for the first quarter of 1998, as measured by EBITDDA, was
$1.5 million compared to cash flow of $7.6 million for the first quarter of
1997. EBITDDA is defined as operating income plus depletion, depreciation,
amortization and cost of timber and property sales. The Company reported a
net loss in the first quarter of $6.7 million, or a loss of $0.51 per unit,
compared with a net loss of $1.9 million, or a loss of $0.15 per unit, in the
same period of 1997. Revenues for the first quarter of 1998 were $7.8 million
compared with $12.3 million in the same period in 1997.
Allen E. Symington, president and chief financial officer, stated, "Cash
flow and operating results were in-line with our expectations for the first
quarter of 1998, reflecting a planned reduction in logging activity as a
result of spring "break-up," and certain one-time expenses. In addition, the
Company recorded certain non-recurring income in the first quarter of 1997
compared to the first quarter of 1998. We are confident in our cash flow
prospects for 1998 and expect EBITDDA to be at a level adequate to meet our
Minimum Quarterly Distributions."
The quarterly distribution to Unitholders of $0.73 per unit will be paid
on May 15, 1998 to Unitholders of record as of May 5, 1998. This first
distribution represents the sum of the $0.50 Minimum Quarterly Distribution
for the first quarter of 1998, plus $0.23 for the pro-rata portion of the
Minimum Quarterly Distribution for the period from November 19, 1997, the day
the Company completed its initial public offering, through December 31, 1997.
U.S. Timberlands log sales averaged $418 per MBF for the first quarter of
1998, compared to $413 per MBF for the first quarter of 1997. Stumpage sales
averaged $447 per MBF for the first quarter, compared to no stumpage sales in
the same period of 1997. The volume of log and stumpage sales totaled
18.4 MMBF for the first quarter, compared to 21.4 MMBF for the first quarter
of 1997 reflecting the Company's operating strategy to target more sales
volume in the second half of 1998.
John M. Rudey, chairman, stated, "Export and domestic demand have both
begun to show positive signs during the first quarter of 1998 helping to
stabilize the overall demand for logs. Western log prices had fallen in the
second half of 1997 largely due to a reduction in log exports to Japan. Logs
previously shipped overseas were diverted to domestic mills causing a rise in
domestic log supply and log inventories as well as an associated reduction in
prices. The impact on producers east of the Cascade Mountain Range, such as
U.S. Timberlands, has generally been less than that experienced west of the
Cascades. In addition, U.S. Timberlands' expanded log marketing efforts have
led to a larger regional customer base offsetting the general market price
decline."
U.S. Timberlands Company, L.P. owns 633,000 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 primarily 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, 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 Securities and Exchange Commission.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Unit)
(Unaudited)
Quarter Ended March 31,
1998 1997
Revenues $7,757 $12,334
Cost and expenses:
Cost of goods sold 2,654 3,525
Cost of timber and
property sales -- 1,191
Selling, general
and administrative 3,626 1,190
Depletion, depreciation
and road amortization 2,760 2,360
Total cost and expenses 9,040 8,266
Operating income (loss) (1,283) 4,068
Interest expense 5,463 5,319
Interest income (176) (366)
Amortization of financing fees 169 999
Other (income) expense - net (25) 63
Net loss (6,714) (1,947)
General partner
and minority interest 134 --
Net loss allocable
to Unitholders $(6,580) $(1,947)
Net loss per Unit $(0.51) $(0.15)
Units outstanding (a) 12,859,607 12,859,607
EBITDDA (b) $1,477 $7,619
(a) Units outstanding used to compute loss per unit are based on the
weighted average number of units outstanding. The 1997 weighted
average units outstanding assumes that the units issued in the
Company's initial public offering were issued as of January 1,
1997.
(b) EBITDDA is defined as operating income (loss) plus depletion,
depreciation, amortization and cost of timber and property sales.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
March 31, 1998 December 31, 1997
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $11,501 $10,625
Accounts receivable - net 232 2,526
Prepaid and other 1,719 1,781
Total current assets 13,452 14,932
Timber, timberlands
and roads - net 356,629 359,349
Seed orchard and nursery stock 1,892 1,828
Property, plant
and equipment - net 1,254 1,261
Long term receivable 1,171 1,171
Deferred financing fees 6,504 6,673
Total assets $380,902 $385,214
Liabilities
Current liabilities:
Accounts payable and
accrued liabilities $10,353 $7,353
Deferred revenue 5,146 5,744
Total current liabilities 15,499 13,097
Long-term debt 225,000 225,000
Minority interest 1,404 1,471
Partners' Capital
Partners' capital 138,999 145,646
Total liabilities
and partners' capital $380,902 $385,214
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
(Unaudited)
Quarter Ended March 31,
1998 1997
Cash Flows From
Operating Activities:
Net loss $(6,714) $(1,947)
Adjustments to reconcile
net loss to
net cash provided
by operating activities:
Depreciation, depletion,
road amortization and
cost of timber and
property sold 2,760 3,551
Amortization of
deferred financing fees 169 224
Working capital changes - net 4,758 1,597
Net cash provided
by operating activities 973 3,425
Cash Flows From Investing Activities:
Timber and road additions -- (42)
Repayment of receivable
from affiliate -- 10,000
Capitalized seed orchard
and nursery costs (64) (64)
Purchase of property,
plant and equipment (33) (93)
Net cash provided by
(used in) investing activities (97) 9,801
Cash Flows From Financing Activities:
Distribution to member -- (1,191)
Net cash used in
financing activities -- (1,191)
Increase in cash and
cash equivalents 876 12,035
Cash and cash equivalents
- beginning of period 10,625 16,613
Cash and cash equivalents
- end of period $11,501 $28,648
U.S. TIMBERLANDS COMPANY, L.P.
SELECTED OPERATING STATISTICS
(Unaudited)
MBF $/MBF Property
Sales Volume Price Realization Sales
Logs Stumpage Logs Stumpage ($000)
1998 1st Qtr 16,409 1,984 $418 $447 --
1997 1st Qtr
Logs 21,373 -- $413 -- --
Timber
Deed 11,045 -- $316 -- --
32,418 -- $380 -- --
1997 2nd Qtr 23,094 2,303 $441 $350 --
1997 3rd Qtr 25,867 10,056 $436 $569 --
1997 4th Qtr 27,415 17,830 $487 $577 $11,750
1997 Year 108,794 30,189 $433 $557 $11,750
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 or
fax, 800-758-5804, ext. 128507
CONTACT:
John C. McDowell of U.S. Timberlands Company,
L.P., 206-652-5000; or Stefanie King of Edelman Financial,
212-704-8291, for U.S. Timberlands
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