NEW YORK, Aug. 17 /PRNewswire/ --
U.S. Timberlands Company, L.P. (Nasdaq: TIMBZ) today announced cash flow and
operating results for the quarter ended June 30, 2001.
Cash flow for the second quarter of 2001, as measured by EBITDDA, was
$2.2 million, or $0.17 per unit, compared to cash flow of $18.7 million, or
$1.43 per unit, for the same period in 2000. 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 for the second quarter
of 2001 was $8.5 million, or $0.66 per unit, as compared to net income of
$5.0 million, or $0.39 per unit, for the same period in 2000. Revenues for
the second quarter of 2001 decreased to $7.3 million as compared with
$24.0 million for the same period in 2000.
Cash flow in the first six months of 2001, as measured by EBITDDA,
decreased to $3.7 million, or $0.28 per unit, compared to cash flow of
$26.1 million, or $1.99 per unit, for the same period in 2000. The Company
reported a net loss for the first six months of $17.2 million, or $1.34 per
unit, as compared with net income of $3.3 million, or $0.25 per unit for the
same period in 2000. Revenues for the first six months of 2001 were
$16.8 million compared with $35.9 million for the same period in 2000.
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.
(financial statements to follow)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER UNIT INFORMATION)
(UNAUDITED)
Quarter Ended June 30,
2001 2000
Revenues $7,327 $23,960
Cost of timber harvested (2,299) (2,937)
Depletion, depreciation and road amortization (5,280) (8,142)
Gross profit (loss) (252) 12,881
Selling, general and administrative (1,882) (2,205)
Equity in net loss of affiliate (928) (114)
Operating income (loss) (3,062) 10,562
Interest expense (5,544) (5,402)
Interest income 9 108
Financing fees (169) (168)
Other income 79 70
Income (loss) before general partner and
minority interest (8,687) 5,170
Minority interest 87 (52)
Net income (loss) (8,600) 5,118
General partner interest 87 (52)
Net income (loss) applicable to common and
subordinated units $(8,513) $5,066
Net income (loss) per Unit (A) $(0.66) $0.39
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $2,218 $18,704
EBITDDA per Unit (A) $0.17 $1.43
(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,
2001 2000
Revenues $16,794 $35,884
Cost of timber harvested (6,991) (6,824)
Depletion, depreciation and road
amortization (10,187) (11,945)
Gross profit (384) 17,115
Selling, general and administrative (4,435) (4,161)
Equity in net income (loss) of
affiliate (1,691) 1,163
Operating income (6,510) 14,117
Interest expense (10,947) (10,856)
Interest income 83 230
Amortization of financing fees (337) (337)
Other income (loss) 120 179
Income (loss) before general partner
and minority interest (17,591) 3,333
Minority interest 176 (33)
Net income (loss) (17,415) 3,300
General partner interest 176 (33)
Net income (loss) applicable to
common and subordinated units $(17,239) $3,267
Net income (loss) per Unit (A) $(1.34) $0.25
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $3,677 $26,062
EBITDDA per Unit (A) $0.28 $1.99
(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 or property sales
U.S. TIMBERLANDS COMPANY, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
June 30, December 31,
2001 2000
(UNAUDITED) *
ASSETS
Current assets:
Cash and cash equivalents $620 $3,168
Accounts and current portion of notes
receivable - net 1,319 6,875
Prepaid expenses and other current assets 36 35
Total current assets 1,975 10,078
Timber and timberlands, net 241,944 264,673
Property, plant and equipment, net 858 926
Notes receivable - long-term 479
Investment in affiliate 36,646 20,542
Deferred financing fees 4,311 4,648
Total assets $286,213 $300,867
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable and accrued liabilities $3,620 $4,548
Payable to General Partner & Affiliate 3,495 $2,065
Borrowings under Affiliate Credit Facility 10,470
Deferred revenue -- 1,474
Total current liabilities 17,585 8,087
Long-term debt 225,000 225,000
Minority interest 437 678
Partners' capital:
Partners' capital 43,191 67,102
Total liabilities and partners' capital $286,213 $300,867
*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,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating
activities $156 $15,235
CASH FLOWS FROM INVESTING ACTIVITIES:
Timber, timberlands and road
additions (6,628) (2,143)
Purchase of property, plant and
equipment - net (52)
Proceeds from sale of assets 15 46
Increase in other assets -- --
Net cash used in investing activities (6,613) (2,149)
CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term borrowings 10,470 --
Distributions to unitholders, general partner,
and minority interest (6,561) (13,122)
Net cash used in financing activities 3,909 (13,122)
Decrease in cash and cash equivalents (2,548) (36)
Cash and cash equivalents - beginning
of period 3,168 2,798
Cash and cash equivalents - end of
period $620 $2,762
SOURCE U.S. Timberlands Company, L.P.
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Related links:
http://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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