NEW YORK, July 20 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced cash flow and operating results for the
quarter ended June 30, 2000. The Company also announced the declaration of
its tenth consecutive quarterly distribution to Unitholders of $0.50 per unit,
to be paid on August 14, 2000 to Unitholders of record as of July 31, 2000.
Cash flow for the second quarter of 2000, as measured by EBITDDA,
increased 24% to $18.6 million, or $1.41 per unit, compared to cash flow of
$15.0 million, or $1.15 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 income
for the second quarter of 2000 increased 18% to $5.3 million, or $0.40 per
unit, as compared to net income of $4.5 million, or $0.34 per unit, for the
same period in 1999. Revenues for the second quarter of 2000 increased 18% to
$24.0 million as compared with $20.3 million for the same period in 1999.
Cash flow in the first six months of 2000, as measured by EBITDDA,
increased 17% to $25.6 million, or $1.95 per unit, compared to cash flow of
$21.8 million, or $1.66 per unit, for the same period in 1999. The Company
reported net income for the first six months of $3.7 million, or $0.28 per
unit, as compared with net income of $2.7 million, or $0.21 per unit for the
same period in 1999. Revenues for the first six months of 2000 were
$35.9 million compared with $31.4 million for the same period in 1999.
John M. Rudey, Chairman and Chief Executive Officer, stated, "Our
operations performed well for the first six months of 2000, particularly given
tight market conditions during the second quarter and that the first quarter
is our seasonal low for generating sales and EBITDDA due to winter snows and
spring breakup. With the payment of our second quarter 2000 distribution, the
Company will have distributed $5.23 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER UNIT INFORMATION)
(UNAUDITED)
Quarter Ended June 30,
2000 1999
Revenues $23,960 $20,296
Cost of timber harvested (2,937) (2,774)
Depletion, depreciation and road amortization (8,142) (5,268)
Gross profit 12,881 12,254
Selling, general and administrative (2,205) (2,489)
Equity in net loss of affiliate (255) --
Operating income 10,421 9,765
Interest expense (5,402) (5,495)
Interest income 108 99
Financing fees (168) (169)
Other income 345 257
Income before general partner
and minority interest 5,304 4,457
Minority interest (54) (45)
Net income 5,250 4,412
General partner interest (54) (45)
Net income applicable to common
and subordinated units $5,196 $4,367
Net income per Unit (A) $0.40 $0.34
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $18,563 $15,033
EBITDDA per Unit (A) $1.41 $1.15
(A) Calculations of per unit amounts are made after giving effect to the
General Partner's allocation of net income or EBITDDA.
(B) EBITDDA is defined as operating income plus depletion, depreciation,
road amortization and cost of timber and property sales.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER UNIT INFORMATION)
(UNAUDITED)
Six months ended June 30,
2000 1999
Revenues $35,884 $31,425
Cost of timber harvested (6,824) (4,796)
Depletion, depreciation and road amortization (11,945) (9,252)
Gross profit 17,115 17,377
Selling, general and administrative (4,161) (4,839)
Equity in net income of affiliate 741 --
Operating income 13,695 12,538
Interest expense (10,856) (10,965)
Interest income 230 351
Financing fees (337) (338)
Other income 1,004 1,139
Income before general partner
and minority interest 3,736 2,725
Minority interest (38) (27)
Net income 3,698 2,698
General partner interest (38) (27)
Net income applicable to
common and subordinated units $3,660 $2,671
Net income per Unit (A) $0.28 $0.21
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $25,640 $21,790
EBITDDA per Unit (A) $1.95 $1.66
(A) Calculations of per unit amounts are made after giving effect to the
General Partner's allocation of net income 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)
June 30, December 31,
2000 1999
(UNAUDITED) *
ASSETS
Current assets:
Cash and cash equivalents $2,762 $2,798
Accounts and current portion of
notes receivable - net 5,226 3,140
Prepaid expenses and other current assets 81 981
Total current assets 8,069 6,919
Timber and timberlands, net 284,279 293,828
Property, plant and equipment, net 993 1,038
Notes receivable - long-term -- 2,304
Investment in affiliate 19,809 18,243
Deferred financing fees 4,986 5,323
Total assets $318,136 $327,655
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable and accrued liabilities $4,378 $4,472
Deferred revenue -- 39
Total current liabilities 4,378 4,511
Long-term debt 225,000 225,000
Minority Interest 888 981
Partners' capital:
Partners' capital 87,870 97,163
Total liabilities and partners' capital $318,136 $327,655
* Derived from audited Consolidated Balance Sheet as of December 31, 1999
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Six Months Ended June 30,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities $15,235 $9,880
CASH FLOWS FROM INVESTING ACTIVITIES:
Timber, timberlands and road additions (2,143) (541)
Purchase of property, plant and equipment - net (52) (36)
Proceeds from sale of assets 46 --
Increase in other assets -- (1,000)
Net cash used in investing activities (2,149) (1,577)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term borrowings -- 1,000
Distributions to unitholders, general partner,
and minority interest (13,122) (13,122)
Net cash used in financing activities (13,122) (12,122)
Decrease in cash and cash equivalents (36) (3,819)
Cash and cash equivalents - beginning of period 2,798 4,824
Cash and cash equivalents - end of period $2,762 $1,005
SOURCE U.S. Timberlands Company, L.P.
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Related links:
http://www.ustimberlands.com
CONTACT:
Greg Byrne, Chief Financial Officer of U.S.
Timberlands Company, L.P., 212-755-1100
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