- Announces Quarterly Distribution to Unitholders -
NEW YORK, Oct. 18 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced cash flow and operating results for the
quarter and nine month period ended September 30, 2000. The Company also
announced the declaration of its eleventh consecutive quarterly distribution
to Unitholders of $0.50 per unit, to be paid on November 14, 2000 to
Unitholders of record as of October 30, 2000.
Cash flow for the third quarter of 2000, as measured by EBITDDA, was $6.7
million or $0.51 per unit, compared to cash flow of $17.7 million, or $1.35
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 a net loss for the third quarter of 2000
of $5.2 million, or $0.40 per unit, as compared to net income of $3.9 million,
or $0.30 per unit, for the same period in 1999. Revenues for the third
quarter of 2000 were $14.1 million as compared with $26.2 million for the same
period in 1999.
Cash flow in the first nine months of 2000, as measured by EBITDDA, was
$32.3 million, or $2.46 per unit, compared to cash flow of $39.5 million, or
$3.01 per unit, for the same period in 1999. The Company reported a net loss
for the first nine months of $1.5 million, or $0.12 per unit, as compared with
net income of $6.6 million, or $0.51 per unit for the same period in 1999.
Revenues for the first nine months of 2000 were $49.9 million compared with
$57.6 million for the same period in 1999.
John M. Rudey, Chairman and Chief Executive Officer, stated, "Our
operating results during the third quarter of 2000 were lower than levels
attained during 1999 and were below the Company's expectations. The continued
decline in the lumber and plywood markets has resulted in industry-wide
declines. Market trends, however, appear to indicate improved pricing for
the next 6 to 12 months. With the payment of our third quarter distribution,
the Company will have distributed $5.73 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 September 30,
2000 1999
Revenues $ 14,064 $ 26,175
Cost of timber harvested (4,785) (6,709)
Depletion, depreciation and road amortization (6,563) (8,077)
Gross profit 2,716 11,389
Selling, general and administrative (2,525) (1,801)
Equity in net loss of affiliate (61) --
Operating income 130 9,588
Interest expense (5,569) (5,495)
Interest income 85 55
Financing fees (169) (169)
Other income 233 2
Income (loss) before general partner
and minority interest (5,290) 3,981
Minority interest 53 (40)
Net income (loss) (5,237) 3,941
General partner interest 53 (40)
Net income (loss) applicable to
common and subordinated units $ (5,184) $ 3,901
Net income (loss) per Unit (A) $ (0.40) $ 0.30
Units Outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $ 6,693 $ 17,665
EBITDDA per Unit (A) $ 0.51 $ 1.35
(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)
Nine Months Ended September 30,
2000 1999
Revenues $ 49,948 $ 57,600
Cost of timber harvested. (11,609) (11,505)
Depletion, depreciation and road amortization (18,508) (17,329)
Gross profit 19,831 28,766
Selling, general and administrative (6,686) (6,640)
Equity in net income of affiliate 680 --
Operating income 13,825 22,l26
Interest expense (16,425) (16,460)
Interest income 315 406
Financing fees (506) (507)
Other income 1,237 1,141
Income (loss) before general
partner and minority interest (1,554) 6,706
Minority interest 15 (67)
Net income (loss) (1,539) 6,639
General partner interest 15 (67)
Net income (loss) applicable to
common and subordinated units $ (1,524) $ 6,572
Net income (loss) per Unit (A) $ (0.12) $ 0.51
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $ 32,333 $ 39,455
EBITDDA per Unit (A) $ 2.46 $ 3.01
(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)
September 30, December 31,
2000 1999
(UNAUDITED) *
ASSETS
Current assets:
Cash and cash equivalents $1,419 $2,798
Accounts and current
portion of notes receivable - net 7,252 3,140
Prepaid expenses and other current assets 16 981
Total current assets 8,687 6,919
Timber and timberlands, net 278,022 293,828
Investment in affiliate 19,960 18,243
Property, plant and equipment, net 964 1,038
Notes receivable - long-term -- 2,304
Deferred financing fees 4,817 5,323
Total assets $ 312,450 $ 327,655
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable, and accrued liabilities $ 10,543 $ 4,472
Deferred revenue -- 39
Total current liabilities 10,543 4,511
Long-term debt 225,000 225,000
Minority Interest 769 981
Partners' capital:
Partners' capital 76,138 97,163
Total liabilities and partners' capital $ 312,450 $ 327,655
*Derived from audited Consolidated Balance Sheet as of December 31, 1999
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Nine Months Ended September 30,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities $ 20,589 $ 21,408
CASH FLOWS FROM INVESTING ACTIVITIES
Timber, timberlands and road additions (2,279) (771)
Purchase of property, plant and
equipment -- net (52) (36)
Proceeds from sale of assets 46 --
Net cash used in investing activities (2,285) (807)
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to unitholders, general partner,
and minority interest (19,683) (19,682)
Net cash used in financing activities (19,683) (19,682)
Decrease in cash and cash equivalents (1,379) 919
Cash and cash equivalents --
beginning of period 2,798 4,824
Cash and cash equivalents --
end of period $ 1,419 $ 5,743
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., 212-755-1100
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