NEW YORK, Nov. 14 /PRNewswire-FirstCall/ --
U.S. Timberlands Company, L.P. (Nasdaq: TIMBZ) today announced cash flow and
operating results for the quarter ended September 30, 2002.
Cash flow for the third quarter of 2002, as measured by EBITDDA, was
$2.7 million, or $0.21 per unit, compared to cash flow of $14.7 million, or
$1.12 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 third quarter of 2002 was $9.5 million,
or $0.74 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 third quarter of 2002 decreased
to $13.3 million as compared with $24.3 million for the same period in 2001.
Cash flow in the first nine months of 2002, as measured by EBITDDA,
decreased to $7.4 million, or $0.56 per unit, compared to cash flow of
$18.3 million, or $1.40 per unit, for the same period in 2001. The Company
reported a net loss applicable to the common and subordinated units for the
first nine months of $30.4 million, or $2.36 per unit, as compared with net
loss of $25.7 million, or $2.00 per unit for the same period in 2001.
Revenues for the first nine months of 2002 were $30.9 million compared with
$41.1 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 September 30,
2002 2001
Revenues (including $9,900 to an
affiliate in 2002) $13,323 $24,299
Cost of timber harvested (5,664) (5,935)
Depletion, depreciation and road amortization (5,935) (17,600)
Cost of timber and property sales (863) -
Fire loss (657) -
Gross profit (loss) 204 764
Selling, general and administrative (1,723) (1,811)
Equity in net loss of affiliate (2,566) (1,884)
Operating income (loss) (4,085) (2,931)
Interest expense (5,414) (5,585)
Interest income 4 2
Amortization of deferred financing fees (169) (169)
Other income, net 6 13
Loss before general partner and
minority interest (9,658) (8,670)
Minority interest 34 87
Net loss (9,624) (8,583)
General partner interest 160 87
Net loss applicable to
common and subordinated units $(9,464) $(8,497)
Net loss per Unit (a) $(0.74) $(0.66)
Units outstanding (a) 12,859,607 12,859,607
EBITDDA (b) $2,713 $14,669
EBITDDA per Unit (a) $0.21 $1.12
(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)
Nine Months Ended September 30,
2002 2001
Revenues (including $9,900 to an
affiliate in 2002) $30,939 $41,093
Cost of timber harvested (9,963) (12,926)
Depletion, depreciation and road amortization (20,930) (27,787)
Cost of timber and property sales (863) -
Fire loss (657) -
Gross profit (loss) (14,474) 380
Selling, general and administrative (4,619) (6,246)
Equity in net loss of affiliate (8,302) (3,575)
Operating income (loss) (14,395) (9,441)
Interest expense (16,213) (16,532)
Interest income 9 85
Amortization of deferred financing fees (506) (506)
other income, net 112 133
Loss before general partner
and minority interest (30,993) (26,261)
Minority interest 247 263
Net loss (30,746) (25,998)
General partner interest 373 263
Net loss applicable to common and
subordinated units $(30,373) $(25,736)
Net loss per Unit (a) $ (2.36) $ (2.00)
Units outstanding (a) 12,859,607 12,859,607
EBITDDA (b) $ 7,398 $ 18,346
EBITDDA per Unit (a) $ 0.56 $ 1.40
(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)
September 30, December 31,
2002 2001
(UNAUDITED) *
ASSETS
Current assets:
Cash and cash equivalents $950 $1,070
Accounts receivable, net 1,589 311
Due from general partner 81 -
Other receivables 73 280
Notes receivable 459 1,153
Prepaid expenses and other current assets 10 225
Total current assets 3,162 3,039
Timber and timberlands, net 197,978 214,511
Investment in affiliate 23,307 31,609
Property, plant and equipment, net 772 811
Notes receivable, less current portion 130 428
Deterred financing fees, net 3,468 3,973
Total assets $228,817 $254,371
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable $1,179 $1,334
Accrued liabilities $8,967 $3,331
Payable to general partner and affiliate - 41
Total current liabilities 10,146 4,706
Long-term debt 225,000 225,000
Minority Interest - 247
Partners' capital:
General partner interest (126) 247
Limited partner interest
(12,859,607 units issued and outstanding) (6,203) 24,171
Total liabilities and partners'
capital $228,817 $254,371
* Derived from audited consolidated Balance Sheet of December 31, 2001
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
Nine Months Ended
September 30,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by
operating activities $5,681 $12,864
CASH FLOWS FROM INVESTING ACTIVITIES:
Timber, timberlands and road additions (5,792) (6,864)
Purchase of property, plant
and equipment - net (9) -
Proceeds from sale of assets - 15
Net cash used in investing activities (5,801) (6,849)
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to unitholders,
general partner, and minority interest - (6,561)
Net cash provided by financing activities - (6,561)
Decrease in cash and cash equivalents (120) (546)
Cash and cash equivalents - beginning of period 1,070 3,168
Cash and cash equivalents - end of period $950 $2,622
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 of
U.S. Timberlands Company, L.P., +1-212-755-1100
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