NEW YORK, Oct. 20 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced cash flow and operating results for the third
quarter and nine month period ended September 30, 1999. The Company also
announced the declaration of its seventh consecutive quarterly distribution to
Unitholders of $0.50 per unit.
Cash flow for the third quarter of 1999, as measured by EBITDDA, increased
2% to $17.7 million, or $1.35 per unit, compared to cash flow of
$17.3 million, or $1.32 per unit, for the third quarter of 1998. 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 third quarter increased 54% to $4.0 million, or $0.30 per unit, as
compared to net income of $2.6 million, or $0.20 per unit, for the same period
in 1998. Revenues for the third quarter of 1999 increased 7% to $26.2 million
compared with $24.5 million for the same period in 1998.
Cash flow in the first nine months of 1999, as measured by EBITDDA,
increased 26% to $39.5 million, or $3.01 per unit, compared to cash flow of
$31.4 million, or $2.39 per unit, for the same period in 1998. The Company
reported net income for the first nine months of $6.7 million, or $0.51 per
unit, as compared with a loss of $7.0 million, or ($0.54) per unit for the
same period in 1998. Revenues for the first nine months of 1999 increased 13%
to $57.6 million compared with $50.9 million for the same period in 1998.
John M. Rudey, Chairman and Chief Executive Officer, stated "The strong
results for the quarter and nine months are attributable to the fine effort of
our operating and marketing staffs during the period. Also, I am pleased to
report that on October 4, 1999 the Company's affiliate, U.S. Timberlands
Yakima, LLC, closed its previously announced acquisition of 56,000 acres of
timberland in central Washington from Boise Cascade Corporation for about
$60 million. This acquisition adds approximately 460 million board feet of
primarily Douglas-fir and Ponderosa Pine to our portfolios and diversifies our
northwest holdings at the same time. In addition, U.S. Timberlands Yakima,
LLC entered into a five-year long supply agreement with Boise Cascade
Corporation covering 79 million board feet of log volume over the period of
the contract."
The seventh quarterly distribution to Unitholders of $0.50 per unit will
be paid on November 15, 1999 to Unitholders of record as of October 29, 1999.
U.S. Timberlands Company, L.P. and its affiliates, own 671,000 fee acres
of timberland and cutting rights on 3,700 acres of timberland containing total
merchantable timber volume estimated to be approximately 2.5 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.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Unit)
(Unaudited)
Quarter Ended September 30,
1999 1998
Revenues $26,175 $24,528
Costs and expenses
Cost of goods sold 6,322 5,024
Depletion, depreciation
and road amortization 8,077 7,774
Silviculture 387 200
Selling, general and
administrative 1,801 2,026
Total costs and expenses 16,587 15,024
Operating income 9,588 9,504
Interest expense 5,495 5,587
Interest income (55) (70)
Financing fees 169 169
Other (income) expense (2) 1,248
Net income $3,981 $2,570
Net income per Unit (A) $0.30 $0.20
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $17,665 $17,278
EBITDDA per Unit (A) $1.35 $1.32
(A) Calculations of per unit amounts are made after giving effect to the
General Partner's allocation of net income (loss) 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.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Unit)
(Unaudited)
Nine Months Ended September 30,
1999 1998
Revenues $57,601 $50,907
Costs and expenses
Cost of goods sold 10,981 11,712
Cost of timberland sales -- 5,917
Depletion, depreciation
and road amortization 17,329 14,490
Silviculture 524 412
Selling, general and
administrative 6,641 7,416
Total costs and expenses 35,475 39,947
Operating income 22,126 10,960
Interest expense 16,461 16,685
Interest income (405) (339)
Financing fees 506 506
Other (income) expense (1,143) 1,138
Net income (loss) $6,707 $(7,030)
Net income (loss)
per Unit (A) $0.51 $(0.54)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $39,455 $31,367
EBITDDA per Unit (A) $3.01 $2.39
(A) Calculations of per unit amounts are made after giving effect to the
General Partner's allocation of net income (loss) 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.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
September 30, December 31,
1999 1998
(Unaudited) *
Assets
Current assets
Cash and cash equivalents $5,743 $4,824
Accounts and current
portion of notes
receivable - net 6,481 2,706
Prepaid expenses and other 1,780 1,539
Total current assets 14,004 9,069
Timber, timberlands and
roads - net 317,254 332,593
Seed and nursery stock 1,068 1,883
Property, plant and
equipment - net 1,078 1,154
Notes receivable - long term 2,547 --
Deferred financing fees 5,492 5,998
Total assets $341,443 $350,697
Liabilities
Current liabilities
Accounts payable and
accrued liabilities $11,130 $6,052
Deferred revenue 257 1,614
Total current liabilities 11,387 7,666
Long-term debt 225,000 225,000
Minority interest 1,051 1,180
Partners' Capital
Partners' capital 104,005 116,851
Total liabilities
and partners' capital $341,443 $350,697
* Derived from audited Consolidated Balance Sheet as of December 31, 1998.
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended September 30,
1999 1998
Cash Flows From Operating Activities:
Net income (loss) $6,707 $(7,030)
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depletion, depreciation
and road amortization 17,329 14,490
Cost of timberlands sold -- 5,917
Financing fees 506 506
Other non-cash items -- 1,270
Working capital
changes - net (586) 598
Net cash provided by
operating activities 23,956 15,751
Cash Flows From Investing
Activities:
Timber, timberlands and
road additions (1,618)) (530)
Purchase of property, plant
and equipment - net (36) (32)
Capitalized seed and
nursery costs - net 847 92
(Increase) decrease in
notes receivable - net (2,547) 1,170
Net cash used in investing
activities (3,354) 700
Cash Flows From Financing
Activities:
Distributions to
Unitholders (19,683) (16,140)
Net cash used in
financing activities (19,683) (16,140)
Increase in cash and
cash equivalents 919 311
Cash and cash equivalents
- beginning of period 4,824 10,625
Cash and cash equivalents
- end of period $5,743 $10,936
SOURCE U.S. Timberlands Company, L.P.
 back to top
Company News On-Call:
http://www.prnewswire.com/comp/128507.html or fax,
800-758-5804, ext. 128507
CONTACT:
Greg Byrne, Chief Financial Officer of U.S.
Timberlands Company, L.P., 212-755-1100; or Edward F. Kuhlenkamp,
Senior Vice President of Edelman Financial Worldwide,
212-704-8243, for U.S. Timberlands Company
|
