NEW YORK, Aug. 14 /PRNewswire-FirstCall/ --
U.S. Timberlands Company, L.P. (Nasdaq: TIMBZ) today announced cash flow and
operating results for the quarter ended June 30, 2002.
Cash flow for the second quarter of 2002, as measured by EBITDDA, was
$7.3 million, or $0.55 per unit, compared to cash flow of $2.2 million, or
$0.17 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 its net loss applicable to the
common and subordinated units for the second quarter of 2002 was
$11.9 million, or $0.93 per unit, as compared to net loss of $8.5 million, or
$0.66 per unit, for the same period in 2001. Revenues for the second quarter
of 2002 increased to $15.5 million as compared with $7.3 million for the same
period in 2001.
Cash flow in the first six months of 2002, as measured by EBITDDA,
increased to $4.7 million, or $0.36 per unit, compared to cash flow of
$3.7 million, or $0.28 per unit, for the same period in 2001. The Company
reported a net loss applicable to the common and subordinated units for the
first six months of $20.9 million, or $1.63 per unit, as compared with net
loss of $17.2 million, or $1.34 per unit for the same period in 2001.
Revenues for the first six months of 2002 were $17.6 million compared with
$16.8 million for the same period in 2001.
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 75% 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)
Three Months Ended June 30,
2002 2001
Revenues (including $9,900 to an
affiliate in 2002) $ 15,460 $ 7,327
Cost of timber harvested (3,263) (2,299)
Depletion, depreciation and road
amortization (13,928) (5,280)
Gross profit (loss) (1,731) (252)
Selling, general and administrative (1,515) (1,882)
Equity in net loss of affiliate (3,409) (928)
Operating income (loss) (6,655) (3,062)
Interest expense (5,415) (5,544)
Interest income 1 9
Amortization of deferred financing
fees (169) (169)
Other income, net 62 79
Loss before general partner and
minority interest (12,176) (8,687)
Minority interest 122 87
Net loss (12,054) (8,600)
General partner interest 122 87
Net loss applicable to common and
subordinated units $ (11,932) $ (8,513)
Net loss per Unit (a) $ (0.93) $ (0.66)
Units outstanding (a) 12,859,607 12,859,607
EBITDDA (b) $ 7,273 $ 2,218
EBITDDA per Unit (a) $ 0.55 $ 0.17
(a) Calculations of per unit amounts are made after giving effect to the
General Partner's allocation of net income and 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,
2002 2001
Revenues (including $9,900 to an
affiliate in 2002) $ 17,615 $ 16,794
Cost of timber harvested (4,300) (6,991)
Depletion, depreciation and road
amortization (14,994) (10,187)
Gross profit (loss) (1,679) (384)
Selling, general and administrative (2,896) (4,435)
Equity in net loss of affiliate (5,736) (1,691)
Operating income (loss) (10,311) (6,510)
Interest expense (10,799) (10,947)
Interest income 4 83
Amortization of deferred financing
fees (338) (337)
Other income, net 105 120
Loss before general partner and
minority interest (21,339) (17,591)
Minority interest 213 176
Net loss (21,126) (17,415)
General partner interest 213 176
Net loss applicable to common and
subordinated units $ (20,913) $ (17,239)
Net loss per Unit (a) $ (1.63) $( 1.34)
Units outstanding (a) 12,859,607 12,859,607
EBITDDA (b) $ 4,683 $ 3,677
EBITDDA per Unit (a) $ 0.36 $ 0.28
(a) Calculations of per unit amounts are made after giving effect to the
General Partner's allocation of net income and 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,
2002 2001
(UNAUDITED) *
ASSETS
Current assets:
Cash and cash equivalents $ 402 $ 1,070
Accounts receivable, net 1,527 311
Other receivables 247 280
Notes receivable 303 1,153
Prepaid expenses and
other current assets 120 225
Total current
assets 2,599 3,039
Timber and timberlands,
net 200,542 214,511
Investment in affiliate 25,873 31,609
Property, plant and
equipment, net 788 811
Notes receivable, less
current portion 340 428
Deferred financing fees,
net 3,636 3,973
Total assets $ 233,778 $ 254,371
LIABILITIES AND PARTNERS' CAPITAL
Currrent liabilities:
Accounts payable $ 913 $ 1,334
Accrued liabilities $ 3,176 $ 3,331
Advances from affiliates 1,225 --
Payable to general
partner and affiliate 136 41
Total current
liabilities 5,450 4,706
Long-term debt 225,000 225,000
Minority interest 33 247
Partners' capital:
General partner interest 33 247
Limited partner interest
(12,859,607 units issued
and outstanding) 3,262 24,171
Total
liabilities and
partners'
capital $ 233,778 $ 254,371
* Derived from audited Consolidated Balance Sheet of December 31, 2001
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Six Months Ended June 30,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by
operating activities $ (915) $ 156
CASH FLOWS FROM INVESTING ACTIVITIES:
Timber, timberlands and
road additions (969) (6,628)
Purchase of property,
plant and equipment -
net (9) --
Proceeds from sale of
assets -- 15
Net cash used in investing activities (978) (6,613)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under
affiliate credit
facility 1,225 10,470
Distributions to
unitholders, general
partner, and minority
interest -- (6,561)
Net cash provided by financing
activities 1,225 3,909
Decrease in cash and cash equivalents (668) (2,548)
Cash and cash equivalents - beginning
of period 1,070 3,168
Cash and cash equivalents - end of
period $ 402 $ 620
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
CONTACT:
Thomas C. Ludlow, Chief Financial Officer,
U.S. Timberlands Company, L.P., +1-212-755-1100
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