SEATTLE, July 23 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced cash flow and operating results for the second
quarter and six month period ended June 30, 1998. The Company also announced
the declaration of its second quarterly distribution to Unitholders of
$0.50 per unit.
Cash flow for the second quarter of 1998, as measured by EBITDDA, was
$15.8 million, or $1.20 per unit, compared to cash flow of $5.5 million, or
$0.42 per unit, for the second 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 for the second quarter of
$0.9 million, or a loss of $0.07 per unit, compared with a net loss of
$3.8 million, or a loss of $0.29 per unit, for the same period in 1997.
Revenues for the second quarter of 1998 were $21.8 million compared with
$11.5 million for the same period in 1997.
Cash flow in the first six months of 1998, as measured by EBITDDA, was
$17.3 million, or $1.32 per unit, compared to cash flow of $13.1 million, or
$1.00 per unit, for the same period of 1997. The Company reported a net loss
for the six month period of $7.6 million, or a loss of $0.58 per unit,
compared with a net loss of $5.8 million, or a loss of $0.44 per unit, for the
same period in 1997. Revenues for the first six months of 1998 were
$29.6 million compared with $23.8 million for the same period in 1997.
"We are pleased with the results of the second quarter and for the first
six months of 1998," stated Allen E. Symington, President. "Our strong
performance in the second quarter under adverse weather conditions and weak
log markets is attributable largely to the fine efforts of our management
team. They achieved excellent sales realizations from log and stumpage sales
and enhanced efficiencies in timber operations and log manufacturing,
distribution and marketing. Additional factors contributing to the good
second quarter results were the increase in log and stumpage sales from the
Ochoco properties, acquired in 1997 and $6.4 million of non-strategic property
sales."
The second quarterly distribution to Unitholders of $0.50 per unit will be
paid on August 14, 1998 to Unitholders of record as of August 4, 1998.
U.S. Timberlands log sales averaged $432 per MBF for the second quarter of
1998, compared to $441 per MBF for the second quarter of 1997. Stumpage sales
averaged $431 per MBF for the second quarter, compared to $350 per MBF for the
same period in 1997. The volume of log and stumpage sales totaled 34.6 MMBF
for the second quarter of 1998, compared to 25.4 MMBF for the second quarter
of 1997. This reflects an 8.4 MMBF increase in stumpage sales in the second
quarter of 1998.
John Rudey, Chairman, added, "At this time we believe earnings will
continue to be on plan for the remainder of 1998. The Company is well
positioned to take advantage of market opportunities as they develop, and we
are continuing to review timberland acquisition opportunities."
U.S. Timberlands Company, L.P. owns 617,000 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 Securities and Exchange Commission.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Unit)
(Unaudited)
Quarter Ended June 30,
1998 1997
Revenues $21,814 $11,462
Cost and expenses:
Cost of goods sold 4,246 4,286
Cost of timber and
property sales 5,917 --
Selling, general
and administrative 1,763 1,702
Depletion, depreciation
and road amortization 5,173 3,035
Total cost and expenses 17,099 9,023
Operating income 4,715 2,439
Interest expense
and commitment fees 5,635 5,558
Interest income (94) (408)
Amortization of financing fees 169 1,199
Other income - net (85) (83)
Net loss (910) (3,827)
Net loss per Unit $(0.07) $(0.29)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $15,804 $5,474
EBITDDA per Unit $1.20 $0.42
(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 plus depletion, depreciation,
road amortization and cost of timber and property sales.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Unit)
Six Months Ended June 30,
1998 1997
(Unaudited)
Revenues $29,571 $23,796
Cost and expenses:
Cost of goods sold 6,899 7,811
Cost of timber and
property sales 5,917 1,191
Selling, general and
administrative 5,390 2,892
Depletion, depreciation and
road amortization 7,933 5,395
Total cost and expenses 26,139 17,289
Operating income 3,432 6,507
Interest expense and
commitment fees 11,098 10,877
Interest income (269) (774)
Amortization of financing fees 337 2,198
Other income - net (110) (20)
Net loss (7,624) (5,774)
Net loss per Unit $(0.58) $(0.44)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $17,282 $13,093
EBITDDA per Unit $1.32 $1.00
(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 plus depletion, depreciation,
road amortization and cost of timber and property sales.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
June 30, December 31,
1998 1997
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 3,334 $ 10,625
Accounts receivable - net 3,920 2,526
Prepaid and other 2,040 1,781
Total current assets 9,294 14,932
Timber, timberlands and
roads - net 346,080 359,349
Seed orchard and nursery stock 1,640 1,828
Property, plant and
equipment - net 1,227 1,261
Long term receivable 1,592 1,171
Deferred financing fees 6,336 6,673
Total assets $366,169 $385,214
Liabilities
Current liabilities:
Accounts payable and
accrued liabilities $6,203 $7,353
Deferred revenue 5,053 5,744
Total current liabilities 11,256 13,097
Long-term debt 225,000 225,000
Minority interest 1,299 1,471
Partners' Capital
Partners' capital 128,614 145,646
Total liabilities and
partners' capital $366,169 $385,214
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
Six Months Ended June 30,
1998 1997
(Unaudited)
Cash Flows From
Operating Activities:
Net loss $(7,624) $(5,774)
Adjustments to reconcile net
loss to net cash provided
by operating activities:
Depreciation, depletion, road
amortization and cost of
timber and property sold 13,850 6,934
Amortization of financing fees 337 348
Working capital changes - net (3,510) 4,615
Net cash provided by
operating activities 3,053 6,123
Cash Flows From Investing Activities:
Timber and road additions (503) (326)
Repayment of receivable
from affiliate -- 10,000
Capitalized seed orchard
and nursery costs 188 (81)
Purchase of property,
plant and equipment (28) (283)
Proceeds from sale of
logging equipment -- 400
Net cash provided by (used in)
investing activities (343) 9,710
Cash Flows From Financing Activities:
Distribution to Unitholders (9,580) --
Distribution to member -- (1,191)
Deferred MLP Common Units
offering costs -- (868)
Long term receivables - net (421) --
Net cash used in
financing activities (10,001) (2,059)
Increase (decrease) in cash
and cash equivalents (7,291) 13,774
Cash and cash equivalents
- beginning of period 10,625 16,613
Cash and cash equivalents
- end of period $3,334 $30,387
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 Company
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