SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): October 19, 1999
PLUM CREEK TIMBER COMPANY, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-10239 91-1912863
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification Number)
incorporation or
organization)
999 Third Avenue, Suite 2300
Seattle, Washington 98104-4096
Telephone: (206) 467-3600
Item 5. OTHER EVENTS
On October 19, 1999, Plum Creek Timber Company, Inc. issued a press
release announcing its financial results for the third quarter and
first nine months of 1999. The text of the press release is attached
to this Report as Exhibit 99.1
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release, dated October 19, 1999
Forward-looking Statements
This Report contains forward-looking statements within the meaning of
the Private Litigation Reform Act of 1995, which are generally
identified by words such as "may," "should," "seeks," "believes,"
"expects," "intends," "estimates," "projects," "strategy" and similar
expressions or the negative of those words. Forward looking
statements are subject to a number of known and unknown risks and
uncertainties that could cause actual results to differ materially
from those projected, expressed or implied in the statements. These
risks and uncertainties, many of which are not within the company's
control, include, but are not limited to, the cyclical nature of the
forest products industry, our ability to harvest our timber, our
ability to execute our acquisition strategy, and regulatory
constraints. These risks are detailed from time to time in our
filings with the Securities and Exchange Commission. Forward-looking
statements speak only as of the date made, and neither the company nor
its management undertakes any obligation to update or revise any
forward-looking statements. It is likely that if one or more of the
risks and uncertainties materializes, the current expectations of the
Company and its management will not be realized.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
PLUM CREEK TIMBER COMPANY, INC.
-------------------------------
(Registrant)
By:/s/ William R. Brown
-----------------------
William R. Brown
Executive Vice President and
Chief Financial Officer
Date: October 19, 1999
Exhibit Index
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Exhibit Description
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99.1 Press Release, dated October 19, 1999
Exhibit 99.1
Contact: Emilio Ruocco
Director, Investor Relations
(206) 467-3618 or 1-800-858-5347
www.plumcreek.com
PLUM CREEK TIMBER COMPANY ANNOUNCES FINANCIAL RESULTS
FOR THIRD QUARTER OF 1999
--
QUARTERLY CASH DIVIDEND OF $0.57 PER SHARE
SEATTLE, WASHINGTON -- October 19, 1999 -- Plum Creek Timber
Company, Inc. (NYSE: PCL) today announced its financial results for
the third quarter and first nine months of 1999.
Earnings for the quarter were $45.6 million, or $0.72 per share,
compared with $16.0 million, or $0.16 per Unit, last year. Earnings
for the nine months were $86.0 million, or $1.32 per share, compared
with $53.5 million, or $0.61 per Unit, last year. The quarter's
earnings include a one-time, non-cash tax benefit of $14.0 million, or
$0.22 per share, resulting from a required transfer of manufacturing
operations to taxable corporate subsidiaries as part of the Company's
conversion to a Real Estate Investment Trust (REIT). The reported
earnings per share are not comparable to prior years since REIT
earnings represent income per share, while historical Master Limited
Partnership (MLP) earnings per Unit represented earnings allocable to
limited partners after the deduction of the general partner's interest
and incentive allocations.
On July 1, 1999, the Company converted from a MLP to a REIT and
financial results are now reported in accordance with accounting
principles for REITs. Therefore, reported revenues are not comparable
with prior periods because REIT accounting excludes revenues from
unconsolidated manufacturing subsidiaries. Reflecting that change,
reported revenues for the quarter were $52.0 million compared to
$174.5 million last year, and for the nine months were $414.6 million
compared with $510.6 million last year. On a comparable basis,
including the unconsolidated manufacturing subsidiaries, revenues
would have been $200.8 million and $563.3 million for the quarter and
nine months, as compared with $174.5 million and $510.6 million,
respectively, in the prior year periods.
EBITDA, defined as operating income plus depreciation, depletion and
amortization, was $73.9 million for the quarter and $191.9 million for
the nine months. The figure is inclusive of the unconsolidated
subsidiaries, and compares to $50.5 million and $151.3 million for the
comparable year-earlier periods.
The Company also stated that the quarterly cash dividend to
shareholders would be $0.57 per share, payable on November 24, 1999,
to stockholders of record as of November 12, 1999.
Rick R. Holley, President and Chief Executive Officer noted, "We are
very pleased with both our operating performance and our financial
results, which were excellent. In addition to overall pricing
improvement, the results reflect productivity enhancements at all our
manufacturing facilities and excellent cost performance in our
resources business."
During the quarter, the continued strong U.S. economy and housing
market pushed overall lumber and plywood prices significantly higher,
and improved log prices for our Northwest timber operations.
As a result, prices for the Company's Northwest lumber products
were 13% above the third quarter of 1998, with Southern Region lumber
prices up 8% over the year ago period. Strong demand in industrial
markets pushed plywood prices 20% above the third quarter of 1998, and
better overall demand drove Medium Density Fiberboard (MDF) prices up
4% from the same period a year ago.
Domestic log prices in the Cascade Region averaged 19% above the
prior year third quarter due to strong lumber markets, while export
log markets were generally stable. Rocky Mountain Region log prices
were up 3% over the third quarter of 1998 from strong product markets.
Log and pulpwood prices in the Southern Region were weaker than in
the third quarter of 1998, by 9% and 5% respectively, due to a general
oversupply of logs related to dry weather and favorable harvesting
conditions throughout the region. Northeast Region log and pulpwood
prices were unchanged from the second quarter of 1999.
Plum Creek is one of the largest timberland owners in the nation with
timberlands and mills located in the Northwestern, Southern and
Northeastern regions of the United States.
Forward-looking Statements
- --------------------------
This press release contains forward-looking statements within the
meaning of the Private Litigation Reform Act of 1995, which are
generally identified by words such as "may," "should," "seeks,"
"believes," "expects," "intends," "estimates," "projects," "strategy"
and similar expressions or the negative of those words. Forward
looking statements are subject to a number of known and unknown risks
and uncertainties that could cause actual results to differ materially
from those projected, expressed or implied in the statements. These
risks and uncertainties, many of which are not within the company's
control, include, but are not limited to, the cyclical nature of the
forest products industry, our ability to harvest our timber, our
ability to execute our acquisition strategy, and regulatory
constraints. These risks are detailed from time to time in our
filings with the Securities and Exchange Commission. Forward-looking
statements speak only as of the date made, and neither the company nor
its management undertakes any obligation to update or revise any
forward-looking statements. It is likely that if one or more of the
risks and uncertainties materializes, the current expectations of the
Company and its management will not be realized.
