Earnings for the 3Q 2013 were $72 million, or $0.44 per diluted share, on revenues of $366 million.
Earnings for the first nine months of 2014 were $146 million, or $0.82 per diluted share, on revenues of $1.0 billion. The results for the first nine months include $2 million, or $0.01 per share, after-tax gain related to the MDF fire. For the first nine months of 2013, earnings were $174 million, or $1.06 per diluted share, on revenues of $1 billion.
Adjusted EBITDA, a non-GAAP measure of operating performance, for the first nine months of 2014 was $389 million, slightly higher than the $384 million in the same period of 2013. A reconciliation of adjusted EBITDA to net income and cash flow from operations is provided as an attachment to this release.
“During the 3Q, Plum Creek performed well in a continuing slow-growth environment,” said Rick Holley, CEO. “Strong timber markets in our Northern Resources segment, combined with incremental harvest from the timberlands acquired last December, resulted in good operating income growth from our timber resources segments. Our Manufacturing operations are producing another strong year of performance while our Energy and Natural Resources segment is contributing to earnings and cash flow growth as well.
“The assets we acquired from MeadWestvaco continue to perform in-line with our expectations, and have contributed more than $61 million in operating cash flow for the first nine months of the year. As expected, the acquisition will be cash accretive on a per share basis in 2014.”
“With residential construction growth continuing at a slow pace, we are planning to operate conservatively during the balance of 2014 and into 2015,” continued Holley. “Our long standing goal of maximizing the net present value of our harvest means we plan to maintain our current harvest level until Southern sawlog prices improve.”
During the 4Q, harvest levels in the Northern and Southern Resources segments are expected to be similar to third quarter levels. As a result, overall harvest levels for the year are expected to be in the 19.2 to 19.5 million ton range.
Plum Creek is among the largest and most geographically diverse private landowners in the nation with approximately 6.7 million acres of timberlands in forest ecosystems across the northern and southeastern United States.