SEATTLE, Oct. 22 /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, 1998. The Company also
announced the declaration of its third quarterly distribution to Unitholders
of $.50 per unit.
Cash flow for the third quarter of 1998, as measured by EBITDDA, increased
62.1% to $18.8 million, or $1.44 per unit, compared to cash flow of $11.6
million, or $0.88 per unit, for the third quarter of 1997. EBITDDA is defined
as operating income plus depletion, depreciation, road amortization and cost
of timber and property sales. The Company reported net income for the third
quarter of $3.4 million, or $0.26 per unit, compared with a loss before
extraordinary item of $1.1 million, or a loss before extraordinary item of
$0.08 per unit, for the same period in 1997. Third quarter 1998 results
include $1.3 million of expense related to a mark-to-market adjustment on a
financial instrument. The third quarter 1997 net loss after a $3.6 million
extraordinary loss on the extinguishment of debt was $4.6 million. Revenues
for the third quarter of 1998 increased 50.9% to $26.1 million compared with
$17.3 million for the same period in 1997.
Cash flow for the first nine months of 1998, as measured by EBITDDA,
increased 46.2% to $36.1 million, or $2.75 per unit, compared to cash flow of
$24.7 million, or $1.88 per unit, for the same period of 1997. The Company
reported a net loss for the nine month period of $4.2 million, or a loss of
$0.32 per unit, compared with a loss before extraordinary item of $6.8
million, or a loss before extraordinary item of $0.52 per unit, for the same
period in 1997. For the first nine months of 1997 the net loss after a $3.6
million extraordinary loss on the extinguishment of debt was $10.4 million.
Revenues for the first nine months of 1998 increased 35.5% to $55.7 million
compared with $41.1 million for the same period in 1997.
John M. Rudey, Chairman, stated, "While the market for the Company's
products is down compared to last year, we continue to operate on budget. The
increases in results for the current period compared to last year are the
result of the positive contribution of the Ochoco property acquisition made in
July of 1997 as well as increased production."
The third quarterly distribution to Unitholders of $.50 per unit will be
paid on November 13, 1998 to Unitholders of record as of November 3, 1998.
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 four million conifer
seedlings annually from its nursery, approximately two hundred fifty thousand
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 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,
1998 1997
Revenues $26,096 $17,261
Cost and expenses:
Cost of goods sold 5,024 4,065
Cost of timber and property sales - -
Depletion, depreciation and
road amortization 8,561 5,363
Silviculture expenses 200 225
Selling, general and
administrative 2,026 1,408
Total cost and expenses 15,811 11,061
Operating income 10,285 6,200
Interest expense 5,587 6,941
Interest income (116) (418)
Financing fees 169 756
Other (income) expense -- net 1,248 (28)
Income (loss) before
extraordinary item 3,397 (1,051)
Extraordinary item -- loss on
extinguishment of debt - 3,571
Net income (loss) $ 3,397 $(4,622)
Income (loss) per Unit (before
extraordinary item) (A) $ 0.26 $ (0.08)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA(B) $18,846 $11,563
EBITDDA per Unit (A) $ 1.44 $ 0.88
(A) Units outstanding used to compute net loss and EBITDDA 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. Calculations of
per unit amounts are made after giving effect to the General Partner's
allocation of net 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,
1998 1997
Revenues $ 55,667 $ 41,057
Cost and expenses:
Cost of goods sold 11,712 11,445
Cost of timber and
property sales 5,917 1,191
Depletion, depreciation and
road amortization 16,494 10,758
Silviculture expenses 412 656
Selling, general and
administrative 7,416 4,300
Total cost and expenses 41,951 28,350
Operating income 13,716 12,707
Interest expense 16,685 17,818
Interest income (386) (1,192)
Financing fees 506 2,954
Other (income) expense - net 1,138 (48)
Loss before extraordinary item (4,227) (6,825)
Extraordinary item -- loss on
extinguishment of debt - 3,571
Net loss $(4,227) $(10,396)
Loss per Unit (before
extraordinary item) (A) $ (0.32) $ (0.52)
Units outstanding (A) 12,859,607 12,859,607
EBITDDA (B) $36,127 $ 24,656
EBITDDA per Unit (A) $ 2.75 $ 1.88
(A) Units outstanding used to compute net loss and EBITDDA 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. Calculations of
per unit amounts are made after giving effect to the General Partner's
allocation of net 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, 1998 December 31, 1997
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 10,936 $ 10,625
Accounts receivable -- net 4,449 2,526
Prepaid and other 4,081 1,781
Total current assets 19,466 14,932
Timber, timberlands and
roads -- net 337,631 359,349
Seed orchard and nursery stock 1,768 1,828
Property, plant and
equipment -- net 1,194 1,261
Long term receivable 678 1,171
Deferred financing fees 6,167 6,673
Total assets $366,904 $385,214
Liabilities
Current liabilities:
Accounts payable and accrued
liabilities $ 12,389 $ 7,353
Deferred revenue 2,766 5,744
Total current liabilities 15,155 13,097
Long-term debt 225,000 225,000
Minority interest 1,267 1,471
Partners' Capital
Partners' capital 125,482 145,646
Total liabilities and
partners' capital $366,904 $385,214
U.S. TIMBERLANDS COMPANY, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended September 30,
1998 1997
Cash Flows From Operating Activities:
Net loss $(4,227) $(10,396)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation, depletion, road
amortization and cost of timber
and property sold 22,411 12,503
Write-off of deferred financing fees - 3,452
Other non-cash items 1,776 -
Working capital changes -- net (3,532) 4,132
Net cash provided by
operating activities 16,428 9,691
Cash Flows From Investing Activities:
Ochoco acquisition - (110,873)
Timber and road additions, net (530) (371)
Repayment of receivable from affiliate - 10,000
Advance from affiliate - 3,000
Repayment of advance from affiliate - (3,000)
Capitalized seed orchard and
nursery costs, net 92 (137)
Purchase of property, plant and
equipment, net (32) (290)
Proceeds from sale of logging equipment - 400
Net cash used in investing activities (470) (101,271)
Cash Flows From Financing Activities:
Long-term borrowings - 285,000
Repayment of long-term borrowings - (177,000)
Deferred financing fees 0 (5,970)
Distribution to Unitholders (16,140) -
Distribution to member - (1,191)
Deferred MLP Common Units offering costs - (1,840)
Long term receivables - net 493 -
Net cash provided by (used in)
financing activities (15,647) 98,999
Increase in cash and cash equivalents 311 7,419
Cash and cash equivalents -
beginning of period 10,625 16,613
Cash and cash equivalents -
end of period $ 10,936 $ 24,032
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,
206-652-5000; or Stefanie King of Edelman Financial,
212-704-8291, for U.S. Timberlands
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