POULSBO, Wash., May 7, 2019 /PRNewswire/ -- Pope Resources
(NASDAQ:POPE) reported net income attributable to unitholders of
$3.3 million, or $0.75 per ownership unit, on consolidated revenue
of $25.0 million, for Q1 2019. This
compares to net income attributable to unitholders of $5.7 million, or $1.31 per ownership unit, on consolidated revenue
of $25.0 million, for Q1 2018.
Consolidated cash provided by operations during Q1 2019 was
$5.0 million compared to $10.7 million during Q1 2018.
Cash available for distribution (CAD)1 was
$2.7 million during Q1 2019 compared
to $6.3 million during Q1 2018.
"Log demand in our Pacific Northwest operating region was
moderate in Q1 2019," said Tom
Ringo, President and CEO, "as a harsh winter for the west
coast produced disappointing housing starts and lumber take-away,
while uncertainty in trade relations with China constrained export markets. We are
cautiously optimistic that log prices will strengthen as the spring
and summer building season leads to improved log and lumber demand.
If and when a trade agreement with China is reached, our export log market should
improve as well, providing an additional catalyst for further
improvement in log prices. Meanwhile, higher Q1 volume this year
compared to last is due to several factors: volume sliding into
early 2019 due to severe weather in late 2018, the Partnership's
10% increase in annual sustainable volume, plus more harvest from
the Funds' timberlands due to acquisitions."
The following tables summarize key metrics for the quarters
ended March 31, 2019, and 2018. Metrics presented on a
look-through2 basis consist of the sum of the
Partnership on a stand-alone basis plus the Partnership's share of
its three private equity timber funds, based on the Partnership's
percentage ownership interest in each fund, which ranges from 5% to
20%.
(in millions, except
volume and price data)
|
|
|
|
Q1 2019
|
Q1 2018
|
Volume (MMBF) -
Partnership
|
23.4
|
|
18.8
|
|
Volume (MMBF) -
Funds
|
14.1
|
|
13.1
|
|
Volume (MMBF) -
Look-through 2
|
25.2
|
|
20.5
|
|
Delivered log price
($/MBF) - Partnership
|
$629
|
|
$779
|
|
Delivered log price
($/MBF) - Funds
|
$631
|
|
$728
|
|
Delivered log price
($/MBF) - Look-through 2
|
$628
|
|
$775
|
|
Revenue -
Consolidated
|
$25.0
|
|
$25.0
|
|
Net income -
Consolidated
|
$0.8
|
|
$5.7
|
|
Net income
attributable to unitholders
|
$3.3
|
|
$5.7
|
|
Cash flow from
operations - Consolidated
|
$5.0
|
|
$10.7
|
|
Cash available for
distribution (CAD) 1
|
$2.7
|
|
$6.3
|
|
|
|
March 31,
2019
|
December 31,
2018
|
Debt, net of
unamortized debt issuance costs - Partnership
|
$99.1
|
|
$94.1
|
|
Debt, net of
unamortized debt issuance costs - Funds
|
$57.3
|
|
$57.3
|
|
Partnership Timber
Partnership Timber operating income during Q1 2019 was
$6.9 million, compared to
$8.8 million in Q1 2018. Adjusted
EBITDDA3 for this segment during Q1 2019 was
$8.5 million, versus $10.0 million in Q1 2018. Harvest volume
increased 24% in Q1 2019 when compared to Q1 2018, as we began to
implement our higher annual sustainable cut level in the first
quarter of the year. Average realized log prices, however,
decreased 19% between the two periods. Compared to historically
high log prices in Q1 2018, the Q1 2019 prices were impacted by a
reduction in export demand due to uncertainty in trade negotiations
with China, which had the further
impact of increasing log supply available to domestic mills. In
addition, on a per-MBF basis, the harvest, haul and tax rate
increased by 21% due to logging in more expensive cable-based units
and longer haul distances during the current quarter.
Funds Timber
Funds Timber operating loss during Q1 2019 was a loss of
$877,000, compared to income of
$1.8 million in Q1 2018. Adjusted
EBITDDA for this segment during Q1 2019 was $2.7 million, versus $4.2
million in Q1 2018. Delivered log volume increased 8% in Q1
2019 versus Q1 2018, due to the Fund IV acquisitions during Q1
2018, while average realized log prices were down 13% due to the
aforementioned uncertainty in China trade relations and resulting increase
in available log supply. The Partnership's share of Adjusted
EBITDDA for Q1 2019 was $303,000,
versus $539,000 during Q1 2018.
Timberland Investment Management (TIM)
In January 2019, we acquired 7,100
acres in south central Washington
on behalf of Fund IV for $20.3
million, of which the Partnership's share was $3.0 million.
Total revenue, on an internal reporting basis, substantially all
of which is eliminated in consolidation, amounted to $1.4 million during Q1 2019 versus $1.0 million in Q1 2018. The increase in revenue
is attributable to the three acquisitions by Fund IV during 2018,
and the aforementioned January 2019
acquisition. After eliminations, TIM generated an operating loss of
$1.2 million during Q1 2019, compared
to an operating loss of $1.1 million
in Q1 2018. Adjusted EBITDDA during Q1 2019 was $92,000 versus $42,000 in Q1 2018.
Real Estate
Real Estate generated an operating loss of $673,000 during Q1 2019, compared to an operating
loss of $934,000 in Q1 2018. Adjusted
EBITDDA for the Real Estate segment was negative $519,000 during Q1 2019, versus negative
$766,000 in Q1 2018. The improvement
in both metrics is due primarily to a consulting project in the
current year that had no counterpart in Q1 2018, and relatively
lower project planning, legal, and personnel costs in Q1 2019.
General & Administrative (G&A)
G&A expenses were $1.76
million during Q1 2019 compared to $1.62 million in Q1 2018. The increase in G&A
expenses is due primarily to higher legal and professional
fees.
Partnership Capital Allocation and Liquidity
In March, the Partnership paid a cash distribution to
unitholders of $4.4 million. During
Q1 2019, the Partnership invested $3.0
million in Fund IV, representing its share of a timberland
acquisition. Maintenance capital expenditures during Q1 2019 for
the Partnership totaled $551,000, and
the Partnership repurchased 2,456 units at an average price of
$67.56 per unit, totaling
$166,000, under a new unit repurchase
authorization that started in March.
The aforementioned Q1 2019 capital outflows were financed by a
combination of the following: net borrowings on credit facilities
of $5.1 million and CAD of
$2.7 million (that is net of Real
Estate development project expenditures of $1.0 million and environmental remediation
payments totaling $158,000).
In April, we refinanced the Partnership's $9.8 million, September
2019 debt maturity with Northwest Farm Credit Services by
entering into a 12-year note of the same amount with the same
lender. The refinancing lowers the Partnership's weighted average
interest rate on its debt to 3.58%, resulting in a $205,000 annual reduction in interest expense,
net of expected annual patronage payments from the Farm Credit
system.
Outlook
We expect 2019 harvest volume will range between 63-67 MMBF for
the Partnership, and 87-91 MMBF for the Funds, including timber
deed sales. The Partnership volume includes 6-10 MMBF of volume
from timber located on real estate properties that is not factored
into our long-term, sustainable harvest plan of 57 MMBF. On a
look-through basis, total 2019 harvest volume, including timber
deed sales, is expected to be 75-78 MMBF.
We expect the Partnership to close on the remaining 65
residential lots from our Harbor Hill project in Gig Harbor, Washington; a parcel of timberland
in Kitsap County; and an
assortment of conservation easement, industrial lot, and
residential lot sales.
We will soon post an updated investor presentation to the
Investor Relations section of our web site at
www.poperesources.com. On Wednesday, June 12, we will conduct
our annual Pope Resources investor teleconference.
Further details on how to participate in this call will be
distributed later this month.
The contents of that presentation are not incorporated into this
release or into any of our filings with the Securities and Exchange
Commission.
About Pope Resources
Pope Resources, a publicly traded limited partnership, and its
subsidiaries Olympic Resource Management and Olympic Property
Group, own and manage 120,000 acres of timberland and 2,000 acres
of development property in Washington. In addition, Pope Resources
co-invests in and consolidates three private equity timber funds
that own 141,000 acres of timberland in Washington, Oregon, and California. The Partnership and its
predecessor companies have owned and managed timberlands and
development properties for over 165 years. Additional information
on the company can be found at www.poperesources.com. The contents
of our website are not incorporated into this release or into our
filings with the Securities and Exchange Commission.
Forward Looking Statements
This press release contains a number of projections and
statements about our expected financial condition, operating
results, business plans and objectives, and about management's
plans for future operations and strategies. These statements
reflect management's estimates and intentions based on current
goals and expectations about future developments. Because these
statements describe our goals, objectives, and anticipated
performance, they are inherently uncertain, and some or all of
these statements may not come to pass. Accordingly, they should not
be interpreted as promises of future management actions or
financial performance. Our future actions and actual performance
will vary from current expectations and under various circumstances
the results of these variations may be material and adverse. Among
those forward-looking statements contained in this report are
statements about management's expectations for future log prices,
harvest volumes and markets, and statements about our expectations
for future sales in our Real Estate segment and our Fund
operations. Readers, however, should note that all statements
other than expressions of historical fact are forward-looking in
nature. Some of the factors that may cause actual operating results
and financial condition to fall short of expectations, or that may
cause us to deviate from our current plans, include our ability to
accurately predict fluctuations in log markets domestically and
internationally, and to adjust our harvest volumes in a timely and
appropriate manner; political sensitivities and events, including
the reactions of foreign governments and international treaty
organizations and similar bodies, that may affect the cost of
competing products and demand for our products; our ability to
anticipate and manage interest rate risk as it affects our
borrowing costs; fluctuations in interest rates and other factors
that affect the U.S. housing market and related demand for our
products from that market; our ability to estimate the cost of
ongoing and changing environmental remediation obligations,
including our ability to anticipate and address the political and
regulatory climate that impacts these obligations; increasing
reliance on engineered, recycled, and other alternative products as
a competitive factor for our products; housing market conditions
that affect demand for both our forest products and our real estate
offerings; our ability to manage our timber funds and their assets
in a manner that our investors consider acceptable, and to raise
additional capital or establish new funds on terms that are
advantageous to the Partnership; conditions in the housing
construction and wood-products markets, both domestically and
globally, that affect demand for our products; our ability to
consummate various pending and anticipated real estate transactions
on the terms management expects; the effects of competition,
particularly by larger and better-financed competitors;
fluctuations in foreign currency exchange rates that affect both
competition for sales of our products and our customers' demand for
them; conditions affecting credit markets as they affect the
availability of capital and costs of borrowing for us, and the
related impacts on purchasers of forest products and development
properties; localized housing market conditions in the Puget Sound
region of Washington State, which
affect demand for our real estate offerings; our ability to manage
our timber funds and their assets in a manner that our investors
consider acceptable, and to raise additional capital or establish
new funds on terms that are advantageous to the Partnership; labor,
equipment and transportation costs that affect our net income; our
ability to anticipate and mitigate potential impacts of our
operations on adjacent properties; and our ability to discover and
to accurately estimate other liabilities associated with our
assets. Other factors are set forth in that part of our Annual
Report on Form 10-K entitled "Risk Factors," and in our other
filings with the Securities and Exchange Commission from time to
time.
Forward-looking statements in this release are made only as of
the date shown above, and we cannot undertake to update these
statements.
|
|
1
Management uses cash available for distribution (CAD) as a
meaningful indicator of liquidity and, as such, has provided this
information in addition to the generally accepted accounting
principles (GAAP)-based presentation of cash provided by operating
activities. Management considers CAD in evaluating capital
allocation alternatives. CAD is calculated for the Partnership only
and is a measure of cash generated by the Partnership that starts
with GAAP-based consolidated cash provided by operating activities
and subtracts cash provided by operating activities for the Funds
and capital expenditures of the Partnership only, and adds
distributions received by the Partnership from the Funds. CAD
represents cash generated that is available to the Partnership for
capital allocation alternatives, such as distributions to
unitholders, repurchasing units, paying down debt, co-investing in
the Funds, acquisition of timberland and real estate, and other
discretionary and nondiscretionary activities. Our definition of
CAD is limited in that it does not solely represent residual cash
flows available for discretionary expenditures since the measure
does not deduct required principal payments on the Partnership's
debt and other contractual obligations. We believe, therefore, it
is important to view CAD as a measure that provides supplemental
information to our Consolidated Statements of Cash Flows. Our
definition of CAD may be different from similarly titled measures
reported by other companies, including those in our industry. CAD
is not necessarily indicative of the CAD that may be generated in
future periods. CAD is a non-GAAP liquidity measure which is
reconciled to the GAAP measure of cash provided by operating
activities in the tables below.
|
|
2"Look-through" results present the
Partnership on a stand-alone basis plus the Partnership's minority
share of each fund: 20% for Fund II, 5% for Fund III, and 15% for
Fund IV.
|
|
3We
define Adjusted EBITDDA as earnings before interest, taxes,
depletion, depreciation, amortization, gain or loss on timberland
sold, and environmental remediation expense. In addition, we
reflect Adjusted EBITDDA on an internal reporting basis without
eliminating inter-segment activity, which has no net impact on
total Adjusted EBITDDA. Accordingly, fees earned from managing the
funds are reflected in the Timberland Investment Management segment
and this same amount is reflected as expense in the Funds Timber
segment. We believe Adjusted EBITDDA captures the ongoing
operations of each of our segments and is a useful supplemental
metric to assess the segments' financial performance. Our
definition of Adjusted EBITDDA may be different from similarly
titled measures reported by other companies, including those in our
industry. Adjusted EBITDDA is not necessarily indicative of the
Adjusted EBITDDA that may be generated in future periods. Adjusted
EBITDDA is a non-GAAP performance measure which is reconciled to
the GAAP measure of operating income in the tables
below.
|
CONDENSED
CONSOLIDATING STATEMENTS OF INCOME (LOSS)
(in millions, except
per unit amounts)
|
|
|
Quarter Ended
March 31, 2019
|
|
Quarter Ended March
31, 2018
|
|
Partner-
ship
|
|
ORM
Timber
Funds
|
|
Consol-
idating
Entries
|
|
Consol-
idated
|
|
Partner-
ship
|
|
ORM
Timber
Funds
|
|
Consol-
idating
Entries
|
|
Consol-
idated
|
Revenue
|
$17.3
|
|
|
$9.4
|
|
|
($1.7)
|
|
|
$25.0
|
|
|
$16.7
|
|
|
$9.5
|
|
|
($1.3)
|
|
|
$25.0
|
|
Cost of
sales
|
(7.5)
|
|
|
(9.1)
|
|
|
—
|
|
|
(16.6)
|
|
|
(5.3)
|
|
|
(7.0)
|
|
|
—
|
|
|
(12.3)
|
|
Operating
expenses
|
(5.3)
|
|
|
(2.5)
|
|
|
1.7
|
|
|
(6.1)
|
|
|
(5.2)
|
|
|
(1.8)
|
|
|
1.3
|
|
|
(5.7)
|
|
Operating income
(loss)
|
4.6
|
|
|
(2.2)
|
|
|
—
|
|
|
2.4
|
|
|
6.2
|
|
|
0.8
|
|
|
—
|
|
|
7.0
|
|
Net interest
expense
|
(1.0)
|
|
|
(0.6)
|
|
|
—
|
|
|
(1.5)
|
|
|
(0.6)
|
|
|
(0.6)
|
|
|
—
|
|
|
(1.1)
|
|
Income tax
expense
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
Net income
(loss)
|
3.6
|
|
|
(2.8)
|
|
|
—
|
|
|
0.8
|
|
|
5.6
|
|
|
0.2
|
|
|
—
|
|
|
5.7
|
|
Net loss attributable
to noncontrolling interests
|
|
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
—
|
|
Net income
attributable to unitholders
|
|
|
|
|
|
|
$3.3
|
|
|
|
|
|
|
|
|
$5.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average units outstanding
|
|
|
|
|
|
|
4.325
|
|
|
|
|
|
|
|
|
4.321
|
|
Basic and diluted
earnings per unit
|
|
|
|
|
|
|
$0.75
|
|
|
|
|
|
|
|
|
$1.31
|
|
CONDENSED
CONSOLIDATING BALANCE SHEETS
(in
millions)
|
|
|
March 31,
2019
|
|
December 31,
2018
|
Assets:
|
Partner-
ship
|
|
ORM
Timber
Funds
|
|
Consol-
idating
Entries
|
|
Consol-
idated
|
|
Partner-
ship
|
|
ORM
Timber
Funds
|
|
Consol-
idating
Entries
|
|
Consol-
idated
|
Cash
|
$2.0
|
|
|
$2.8
|
|
|
$—
|
|
|
$4.8
|
|
|
$1.8
|
|
|
$3.3
|
|
|
$—
|
|
|
$5.1
|
|
Restricted
cash
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Land and timber held
for sale
|
6.7
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
|
5.7
|
|
|
—
|
|
|
—
|
|
|
5.7
|
|
Other current
assets
|
5.7
|
|
|
6.3
|
|
|
(1.1)
|
|
|
10.9
|
|
|
4.6
|
|
|
4.9
|
|
|
(1.0)
|
|
|
8.6
|
|
Total current
assets
|
15.2
|
|
|
9.1
|
|
|
(1.1)
|
|
|
23.2
|
|
|
13.1
|
|
|
8.3
|
|
|
(1.0)
|
|
|
20.4
|
|
Timber and
roads
|
71.0
|
|
|
318.1
|
|
|
—
|
|
|
389.2
|
|
|
72.4
|
|
|
305.6
|
|
|
—
|
|
|
378.0
|
|
Timberland
|
19.6
|
|
|
57.4
|
|
|
—
|
|
|
77.0
|
|
|
19.7
|
|
|
54.5
|
|
|
—
|
|
|
74.3
|
|
Land held for
development
|
21.0
|
|
|
—
|
|
|
—
|
|
|
21.0
|
|
|
20.9
|
|
|
—
|
|
|
—
|
|
|
20.9
|
|
Buildings and
equipment, net
|
5.6
|
|
|
—
|
|
|
—
|
|
|
5.6
|
|
|
5.5
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
Investment in ORM
Timber Funds
|
44.2
|
|
|
—
|
|
|
(38.3)
|
|
|
5.9
|
|
|
36.0
|
|
|
—
|
|
|
(36.0)
|
|
|
—
|
|
Other
assets
|
1.7
|
|
|
0.2
|
|
|
—
|
|
|
1.9
|
|
|
7.3
|
|
|
2.0
|
|
|
—
|
|
|
9.3
|
|
Total assets
|
$178.3
|
|
|
$384.9
|
|
|
($39.5)
|
|
|
$523.8
|
|
|
$174.9
|
|
|
$370.4
|
|
|
($37.0)
|
|
|
$508.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
$5.7
|
|
|
$3.9
|
|
|
($1.1)
|
|
|
$8.4
|
|
|
$6.5
|
|
|
$3.2
|
|
|
($1.0)
|
|
|
$8.8
|
|
Current portion of
long-term debt
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Current portion of
environmental remediation
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
Total current
liabilities
|
6.7
|
|
|
3.9
|
|
|
(1.1)
|
|
|
9.4
|
|
|
7.7
|
|
|
3.2
|
|
|
(1.0)
|
|
|
10.0
|
|
Long-term debt, net
of current portion and unamortized debt issuance costs
|
99.0
|
|
|
57.3
|
|
|
—
|
|
|
156.3
|
|
|
93.9
|
|
|
57.3
|
|
|
—
|
|
|
151.2
|
|
Environmental
remediation and other long-term liabilities
|
8.2
|
|
|
0.1
|
|
|
—
|
|
|
8.3
|
|
|
8.1
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
Total
liabilities
|
113.9
|
|
|
61.3
|
|
|
(1.1)
|
|
|
174.1
|
|
|
109.8
|
|
|
60.9
|
|
|
(1.0)
|
|
|
161.2
|
|
Partners'
capital
|
64.4
|
|
|
323.6
|
|
|
(331.2)
|
|
|
56.8
|
|
|
59.2
|
|
|
309.5
|
|
|
(311.3)
|
|
|
57.5
|
|
Noncontrolling
interests
|
—
|
|
|
—
|
|
|
292.9
|
|
|
292.9
|
|
|
5.9
|
|
|
—
|
|
|
275.2
|
|
|
281.1
|
|
Total liabilities and equity
|
$178.3
|
|
|
$384.9
|
|
|
($39.5)
|
|
|
$523.8
|
|
|
$174.9
|
|
|
$370.4
|
|
|
($37.0)
|
|
|
$508.2
|
|
RECONCILIATION
BETWEEN NET INCOME AND CASH FLOWS FROM OPERATIONS
(in
millions)
|
|
|
Quarter ended March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Net income
|
$0.8
|
|
|
$5.7
|
|
Add back
(deduct):
|
|
|
|
Depletion
|
6.5
|
|
|
4.7
|
|
Equity-based
compensation
|
0.6
|
|
|
0.5
|
|
Real estate project
expenditures
|
(1.0)
|
|
|
(0.3)
|
|
Depreciation and
amortization
|
0.2
|
|
|
0.1
|
|
(Gain) loss on
disposal of property and equipment
|
(0.1)
|
|
|
—
|
|
Environmental
remediation payments
|
(0.2)
|
|
|
(0.2)
|
|
Change in other
operating accounts
|
(1.9)
|
|
|
—
|
|
Cash provided by
operations
|
$5.0
|
|
|
$10.7
|
|
SEGMENT ADJUSTED
EBITDDA
(in
millions)
|
|
Partnership
Timber
|
Funds
Timber
|
|
TIM
|
|
Real
Estate
|
|
G&A and
Other
|
|
Consolidated
|
Q1 2019
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - external
|
$6.9
|
|
($0.9)
|
|
|
($1.2)
|
|
|
($0.7)
|
|
|
($1.8)
|
|
|
$2.4
|
|
Intersegment
activity
|
—
|
|
(1.3)
|
|
|
1.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Operating income
(loss) - internal
|
6.9
|
|
(2.2)
|
|
|
0.1
|
|
|
(0.6)
|
|
|
(1.8)
|
|
|
2.4
|
|
Depletion,
depreciation, and amortization
|
1.6
|
|
4.9
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
6.7
|
|
Adjusted
EBITDDA
|
8.5
|
|
2.7
|
|
|
0.1
|
|
|
(0.5)
|
|
|
(1.8)
|
|
|
9.1
|
|
Less Adjusted EBITDDA
attributable to NCI
|
—
|
|
(2.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4)
|
|
Look-through Adjusted
EBITDDA
|
$8.5
|
|
$0.3
|
|
|
$0.1
|
|
|
($0.5)
|
|
|
($1.8)
|
|
|
$6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - external
|
$8.8
|
|
$1.8
|
|
|
($1.1)
|
|
|
($0.9)
|
|
|
($1.6)
|
|
|
$7.0
|
|
Intersegment
activity
|
(0.1)
|
|
(1.0)
|
|
|
1.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Operating income
(loss) - internal
|
8.7
|
|
0.8
|
|
|
(0.1)
|
|
|
(0.8)
|
|
|
(1.7)
|
|
|
7.0
|
|
Depletion,
depreciation, and amortization
|
1.3
|
|
3.4
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
4.8
|
|
Adjusted
EBITDDA
|
10.0
|
|
4.2
|
|
|
—
|
|
|
(0.8)
|
|
|
(1.6)
|
|
|
11.8
|
|
Less Adjusted EBITDDA
attributable to NCI
|
—
|
|
(3.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.7)
|
|
Look-through Adjusted
EBITDDA
|
$10.0
|
|
$0.5
|
|
|
$—
|
|
|
($0.8)
|
|
|
($1.6)
|
|
|
$8.1
|
|
CASH AVAILABLE FOR
DISTRIBUTION (CAD)
(In
millions)
|
|
Quarter ended March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Cash provided by
operations - consolidated
|
$5.0
|
|
|
$10.7
|
|
Less: Cash provided
by operations - Funds
|
(2.2)
|
|
|
(4.0)
|
|
Less: Partnership
capital expenditures (1)
|
(0.6)
|
|
|
(0.8)
|
|
Add: Partnership's
share of Fund distributions
|
0.4
|
|
|
0.4
|
|
Cash available for
distribution (CAD)
|
$2.7
|
|
|
$6.3
|
|
|
|
(1)
|
Capital expenditures
by the Partnership only and excluding timberland
acquisitions.
|
The following two tables reflect the Partnership's share of the
Funds' assets, liabilities, and operating results based on its 20%,
5%, and 15% ownership interest in Fund II, Fund III, and Fund IV,
respectively. We present this as additional information to help
readers understand the financial benefit we receive from investing
in these private equity vehicles and the resulting economics of
owning Pope Resources units. These results will fluctuate between
periods based on the relative activity in each fund and the
Partnership's different ownership interest in each fund:
PARTNERSHIP'S
SHARE OF TIMBER FUNDS - ASSETS AND LIABILITIES
(In
millions)
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
|
|
Cash
|
$0.3
|
|
|
$0.7
|
|
Other current
assets
|
0.9
|
|
|
0.6
|
|
Timber and
roads
|
36.1
|
|
|
34.0
|
|
Timberland
|
6.9
|
|
|
6.4
|
|
Other
assets
|
—
|
|
|
1.9
|
|
|
|
|
|
Current liabilities,
excluding current portion of long-term debt
|
0.8
|
|
|
0.4
|
|
Total debt
|
7.1
|
|
|
7.1
|
|
PARTNERSHIP'S
SHARE OF TIMBER FUNDS - REVENUE AND EXPENSES
(In
millions)
|
|
Quarter ended March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Revenue
|
$1.2
|
|
|
$1.2
|
|
Cost of
sales
|
(1.1)
|
|
|
(0.8)
|
|
Operating
expenses
|
(0.3)
|
|
|
(0.2)
|
|
Interest expense,
net
|
(0.1)
|
|
|
(0.1)
|
|
VOLUME DATA -
LOOK-THROUGH BASIS
|
|
Quarter ended March
31,
|
|
2019
|
|
2018
|
Volumes by species
(million board feet):
|
|
|
|
Douglas-fir
domestic
|
13.3
|
|
|
12.7
|
|
Douglas-fir
export
|
5.2
|
|
|
2.0
|
|
Whitewood
domestic
|
0.7
|
|
|
1.0
|
|
Whitewood
export
|
0.2
|
|
|
0.5
|
|
Cedar
|
0.5
|
|
|
0.4
|
|
Hardwood
|
1.3
|
|
|
0.7
|
|
Pulpwood - all
species
|
4.0
|
|
|
3.2
|
|
Total log sale
volume
|
25.2
|
|
|
20.5
|
|
Timber deed sale
volume
|
—
|
|
|
—
|
|
Total
volume
|
25.2
|
|
|
20.5
|
|
PRICE DATA -
LOOK-THROUGH BASIS
|
|
Quarter ended March
31,
|
|
2019
|
|
2018
|
Average price
realizations by species (per thousand board feet):
|
|
|
|
Douglas-fir
domestic
|
$
|
654
|
|
|
$
|
849
|
|
Douglas-fir
export
|
730
|
|
|
926
|
|
Whitewood
domestic
|
523
|
|
|
630
|
|
Whitewood
export
|
541
|
|
|
759
|
|
Pine
|
410
|
|
|
646
|
|
Cedar
|
967
|
|
|
1,451
|
|
Hardwood
|
646
|
|
|
709
|
|
Pulpwood - all
species
|
383
|
|
|
374
|
|
Overall delivered log
price
|
628
|
|
|
775
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/pope-resources-reports-first-quarter-2019-results-300844858.html
SOURCE Pope Resources