NEW YORK, May 20 /PRNewswire-FirstCall/ --
U.S. Timberlands Company, L.P. (Nasdaq: TIMBZ) today announced cash flow and
operating results for the quarter ended March 31, 2002.
Cash flow for the first quarter of 2002, as measured by EBITDDA, was a
negative $2.6 million, or $0.20 per unit, compared to cash flow of positive
$1.5 million, or $0.11 per unit, for the same period in 2001. 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 2002 increased 2% to $9.1 million, or $0.70 per unit, as
compared to net loss of $8.8 million, or $0.68 per unit, for the same period
in 2001. Revenues for the first quarter of 2002 decreased 77% to $2.2 million
as compared with $9.5 million for the same period in 2001. Timber markets
remained weak in the first quarter causing the Company to voluntarily curtail
sales.
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 1.9 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER UNIT INFORMATION)
(UNAUDITED)
Quarter Ended March 31,
2002 2001
Revenues $2,155 $9,467
Cost of timber harvested (1,037) (4,692)
Depletion, depreciation and road
amortization (1,066) (4,907)
Gross profit (loss) 52 (132)
Selling, general and administrative
expenses (1,381) (2,553)
Equity in net loss of affiliate (2,327) (763)
Operating loss (3,656) (3,448)
Interest expense (5,384) (5,403)
Interest income 3 74
Amortization of deferred financing fees (169) (168)
Other income, net 43 41
Loss before general partner and
minority interest (9,163) (8,904)
Minority interest 92 89
Net loss (9,071) (8,815)
General partner interest 92 89
Net loss applicable to common and
subordinated units $(8,979) $(8,726)
Net loss per unit (A) $(0.70) $(0.68)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $(2,590) $1,459
EBITDDA per unit (A) $(0.20) $0.11
(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,
2002 2001
(UNAUDITED) *
ASSETS
Current assets:
Cash and cash equivalents $491 $1,070
Accounts and other
receivable - net 290 1,744
Prepaid expenses and other
current assets 199 225
Total current assets 980 3,039
Timber and timberlands, net 213,552 214,511
Investment in affiliate 29,282 31,609
Property, plant and
equipment, net 799 811
Notes receivable - long-term 825 428
Deferred financing fees 3,805 3,973
Total assets $249,243 $254,371
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable and
accrued liabilities $8,741 $4,706
Total current liabilities 8,741 4,706
Long-term debt 225,000 225,000
Minority Interest 155 247
Partners' capital:
Partners' capital 15,347 24,418
Total liabilities and partners'
capital $249,243 $254,371
* Derived from audited Consolidated Balance Sheet as of December
31, 2001
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(UNAUDITED)
Three Months Ended March 31,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by
operating activities $(473) $5,884
CASH FLOWS FROM INVESTING ACTIVITIES:
Timber, timberlands and road additions (102) (4,546)
Purchase of property, plant and
equipment - net (4) --
Proceeds from sale of assets --
Net cash used in investing activities (106) (4,546)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash overdraft 2,056
Distributions to unitholders, general
partner, and minority interest (6,562)
Net cash used in financing activities -- (4,506)
Decrease in cash and cash equivalents (579) (3,168)
Cash and cash equivalents - beginning
of period 1,070 3,168
Cash and cash equivalents - end of
period $491 $--
SOURCE U.S. Timberlands Company, L.P.
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Related links:
www.ustimberlands.com
CONTACT:
Thomas C. Ludlow, Chief Financial Officer of
U.S. Timberlands Company, L.P., +1-212-755-1100
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