Plum Creek Reports Results for Fourth Quarter and Full Year 2013

  Plum Creek Reports Results for Fourth Quarter and Full Year 2013

Business Wire

SEATTLE -- January 27, 2014

Plum Creek Timber Company, Inc. (NYSE: PCL) today announced fourth quarter
earnings of $40 million, or $0.24 per share, on revenues of $331 million.
Earnings for the fourth quarter of 2012 were $79 million, or $0.49 per share,
on revenues of $354 million.

Results for the fourth quarter include $12 million of expenses directly
related to the completion of the company’s December acquisition of timberland,
real estate, and subsurface resources from MeadWestvaco Corporation (NYSE:
MWV). Excluding these expenses, adjusted fourth quarter earnings were $52
million, or $0.31 per share. A reconciliation of adjusted earnings to GAAP net
income is provided as an attachment to this release.

Earnings for the full year of 2013 were $214 million, or $1.30 per share, on
revenues of $1.34 billion. Excluding the expenses associated with the
acquisition mentioned above and the $4 million fire loss recorded in the third
quarter, adjusted earnings for 2013 were $230 million, or $1.39 per share.
Earnings for the full year of 2012 were $203 million, or $1.25 per diluted
share, on revenues of $1.34 billion.

Adjusted EBITDA, a non-GAAP measure of operating performance, for 2013 was
$502 million and was $530 million for 2012. As planned, lower real estate
activity accounted for the decline in adjusted EBITDA. A reconciliation of
adjusted EBITDA to net income and cash flow from operations is provided as an
attachment to this release.

“Over the course of the past year, results have improved significantly in our
timber resources, manufacturing and non-timber resource businesses,” said Rick
Holley, chief executive officer. “Importantly, we achieved our goal of growing
the adjusted EBITDA from these three business segments by approximately $50
million. We completed a very good fourth quarter, with earnings coming in at
the high-end of our initial expectations after taking into consideration the
expenses related to closing the acquisition. Momentum is building and we are
well positioned to grow the company’s overall cash flow in 2014.

“During 2013, Western log prices recovered to pre-recession levels and
Southern log prices ended the year approximately 12 percent higher than they
were at the end of 2012. We believe the improvements in the South represent
the early stages of recovery in the region.

“Our December acquisition of assets from MeadWestvaco added 501,000 acres of
productive, well-stocked timberlands to our Southeast portfolio and grows our
presence in these attractive, long-term markets. We integrated these assets
into our operations in December and expect them to be accretive to the
company’s cash flow on a per share basis in 2014. We expect their contribution
to expand in 2015 and beyond.”

Summary of 2013 Results

The company reported $295 million in operating income for 2013, $14 million
higher than 2012’s $281 million operating income. Improving results from the
company’s timber business segments grew operating income by $30 million while
operating income from the manufacturing business grew $14 million. This growth
was partially offset by a planned reduction in land sale activities and higher
corporate expenses during 2013.

The company’s timber resource segments generated operating income of $140
million compared to 2012’s $110 million operating income. Timber prices
increased over the course of the year as the result of strengthening domestic
demand for lumber and other wood products and strong demand from export log
markets on the West Coast. Average Northern sawlog prices were up 15 percent
for the year and average Southern sawlog prices were up 9 percent. Pulpwood
prices in both regions grew as well. Average Northern pulpwood prices were up
2 percent for the year and average Southern pulpwood prices were up 13
percent.

In the Real Estate segment, the company reported revenue of $286 million in
2013, a planned reduction from $352 million in 2012. Segment operating income
was $169 million during 2013 compared with $187 million during 2012. Per acre
values of the various land types sold were consistent with those realized for
the past five years.

Operating income from the company’s Manufacturing segment was $43 million, up
$14 million from the $29 million reported in 2012. Continued improvement in
demand and higher pricing for the company’s lumber and panel products drove
the year-over-year improvement in profitability.

Review of Quarterly Operations

The Northern Resources segment reported operating profit of $8 million for the
fourth quarter, compared to a $5 million profit reported in the fourth quarter
of 2012. Profits improved as stronger sawlog prices more than offset modestly
lower harvest volumes. Northern sawlog prices increased nearly 20 percent over
the past year on strong customer competition for both softwood and hardwood
logs. Northern pulpwood markets remained resilient with prices improving
slightly. As planned, harvest volumes were approximately 4 percent lower when
compared to the fourth quarter of 2012.

The Southern Resources segment reported fourth quarter operating profit of $34
million, an increase of $10 million from the fourth quarter of 2012. Both
sawlog and pulpwood prices in the South have improved as customer demand in
the region has grown. Sawlog prices have increased approximately 12 percent
while pulpwood prices have increased approximately 10 percent over the past
twelve months. As planned, the fourth quarter sawlog harvest was 30 percent
higher than the harvest levels of the fourth quarter of 2012. The pulpwood
harvest was approximately 3 percent higher when compared to the same period.

As expected, sales activity in the Real Estate segment was lower than the same
period of 2012. The Real Estate segment reported revenue of $59 million and
operating profit of $31 million in the fourth quarter of 2013. The segment
reported $109 million of revenue and $74 million of operating profit for the
fourth quarter of 2012. Properties sold consisted of 20,100 acres of rural
recreation lands that captured approximately $2,100 per acre, 6,125 acres of
conservation lands sold for more than $1,000 per acre, and nearly 4,000 acres
of lower productivity, non-strategic properties were priced at $1,290 per
acre.

The Manufacturing segment reported operating profit of $8 million for the
fourth quarter of 2013, up $1 million from the same period of 2012. Profits
from the sale of lumber products drove the improved results. Fourth quarter
lumber sales volume was approximately 40 percent higher than the same period
of 2012 reflecting the restart of the company’s stud lumber mill earlier in
2013.

Acquisition Financing

During the fourth quarter, Plum Creek completed the $1.1 billion acquisition
of timberland, real estate, and related sub-surface resources from
MeadWestvaco. The company financed the transaction through a combination of
equity and debt designed to maintain the capital profile of the company.

The company issued 13.9 million shares of common stock, generating $607
million of net proceeds, and increased debt by approximately $480 million.
Changes to the company’s individual debt obligations are detailed in an
attached schedule.

At the end of the year, the company’s weighted average cost of third-party
debt was approximately 4 percent with a mix of 76 percent fixed and 24 percent
floating rate debt.

Outlook

The company expects continued demand growth from its lumber, plywood, and
oriented strandboard (OSB) customers as residential construction activity is
expected to grow to 1.1 million starts in 2014. As sawlog customers increase
production to meet this demand, the company expects sawlog prices to improve,
particularly in the lower-cost U.S. South. Pulpwood demand from pulp and paper
mills throughout the nation remains good. Recovering demand from OSB producers
and emerging demand from wood pellet producers are expected to keep pulpwood
prices strong in both Southern and Northeastern markets.

The acquisition of 501,000 acres of productive Southern timberland from
MeadWestvaco in December will add about 3 million tons to the company’s annual
harvest in 2014. As a result, 2014’s total harvest volume is expected to be
between 20 and 21 million tons.

Continued interest in rural land investments and improving consumer confidence
is expected to provide a solid foundation for rural real estate activity in
2014. Real Estate segment sales for the year are expected to be between $240
million and $280million. The company anticipates that segment sales will
follow a typical seasonal pattern with activity weighted toward the second
half of the year. The company expects to gradually reduce annual sales in this
segment closer to $200 million over time. First quarter Real Estate segment
sales are expected to be between $20 and $25 million. Land basis for 2014, the
book value of the properties sold, is expected to be between 30 and 35 percent
of sales, comparable to 2013’s 32 percent of sales.

Lumber, specialty plywood and medium density fiberboard markets are expected
to remain strong. Manufacturing segment results are expected to grow modestly
in 2014.

Earnings and cash flow from the company’s non-timber resources business are
expected to grow with the addition of new royalty streams from coal, wind, and
aggregate assets acquired during 2013.

Third-party interest expense in 2014 is expected to be approximately $110
million.

The company expects to report a small tax expense of less than $4 million as
income from the Manufacturing segment grows in 2014.

“We expect our cash flow from operations to grow in 2014 as business
conditions continue to improve and the newly acquired assets add to our
ongoing cash flow. As we initially expected, the acquired assets should be
modestly cash flow accretive on a per share basis, but EPS dilutive in 2014,”
continued Holley. “Overall, we expect operating income growth from our timber
resources, manufacturing and non-timber resource businesses to more than
offset the impact of our planned reduction in land sales.”

Reflecting all of these factors, the company expects 2014 net income to be
between $1.30 and $1.50 per share. The company expects to report first quarter
net income between $0.12 and $0.17 per share, a disproportionately lower share
of the full-year outlook due to the timing of real estate sales.

“We are experiencing fundamental improvement in our businesses and continue to
manage the company to maximize the value of each and every acre we own. We
will continue our disciplined approach to capital allocation with the goal of
increasing the long-term value of each shareholder’s investment in Plum
Creek,” concluded Holley.

Earnings Conference Call and Supplemental Information

Plum Creek will hold a conference call today, Jan. 27, at 5:00 p.m. ET (2:00
p.m. PT). A live webcast of the conference call may be accessed through Plum
Creek’s Internet site at www.plumcreek.com by clicking on the “Investors”
link.

Investors without Internet access should dial 1-800-572-9852 at least 10
minutes prior to the start of the call, referencing Plum Creek’s earnings
conference call. Those wishing to access the call from outside the United
States and Canada should dial 1-706-645-9676, also referencing Plum Creek’s
earnings conference call. Replay of the call will be available for 48 hours
after completion of the live call and can be accessed at 1-855-859-2056 or
1-404-537-3406 (international calls), using the code 27967689.

Supplemental financial information for Plum Creek operations, including
statistical data and reconciliations to non-GAAP measures is available in the
Investors section of Plum Creek’s website at www.plumcreek.com.

Plum Creek is one of the largest landowners in the nation and the most
geographically diverse, with approximately 6.8 million acres of timberlands in
major timber producing regions of the United States and wood products
manufacturing facilities in the Northwest. For more information, visit
www.plumcreek.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Litigation Reform Act of 1995 as amended. Some of these
forward-looking statements can be identified by the use of forward-looking
words such as "believes," "expects," "may," "will," "should," "seek,"
"approximately," "intends," "plans," "estimates," or "anticipates," or the
negative of those words or other comparable terminology. The accuracy of such
statements is subject to a number of risks, uncertainties and assumptions
including, but not limited to, the cyclical nature of the forest products
industry, our ability to harvest our timber, our ability to execute our
acquisition strategy, the market for and our ability to sell or exchange
non-strategic timberlands and timberland properties that have higher and
better uses, and various regulatory constraints. These and other risks,
uncertainties and assumptions are detailed from time to time in our filings
with the Securities and Exchange Commission under the Securities Exchange Act
of 1934, as amended, and the Securities Act of 1933, as amended. It is likely
that if one or more of the risks materializes, or if one or more assumptions
prove to be incorrect, the current expectations of Plum Creek and its
management will not be realized. Forward-looking statements are not guarantees
of performance, and speak only as of the date made, and neither Plum Creek nor
its management undertakes any obligation to update or revise any
forward-looking statements.


PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
                                                                
(In Millions, Except Per Share Amounts)                Year Ended December 31,
                                                    2013         2012
REVENUES:
Timber                                                 $  669         $ 641
Real Estate                                            286            352
Manufacturing                                          362            324
Energy and Natural Resources                           23            22     
Total Revenues                                         1,340         1,339  
                                                                      
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber                                                 495            498
Real Estate                                            110            157
Manufacturing                                          310            286
Energy and Natural Resources                           5             2      
Total Cost of Goods Sold                               920            943
Selling, General and Administrative                    123           116    
Total Costs and Expenses                               1,043         1,059  
                                                                      
Other Operating Income (Expense), net                  (2       )     1      
                                                                      
Operating Income                                       295            281
                                                                      
Equity Earnings from Timberland Venture                63             59
Equity Earnings from Real Estate Development           —              —
Joint Ventures
                                                                      
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated        83             82
Parties)
Interest Expense (Note Payable to Timberland           58            58     
Venture)
Total Interest Expense, net                            141            140
                                                                      
Loss on Extinguishment of Debt                         (4       )     —      
                                                                      
Income before Income Taxes                             213            200
                                                                      
Provision (Benefit) for Income Taxes                   (1       )     (3     )
                                                                     
Net Income                                             $  214        $ 203  
                                                                      
PER SHARE AMOUNTS:
                                                                      
Net Income per Share – Basic                           $  1.30        $ 1.25
Net Income per Share – Diluted                         $  1.30        $ 1.25
                                                                      
Weighted-Average Number of Shares Outstanding
– Basic                                                164.6          161.5
– Diluted                                              165.0          161.9
                                                                             


PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
                                                               
(In Millions, Except Per Share Amounts)             Quarter Ended December 31,
                                                 2013            2012
REVENUES:
Timber                                              $  182            $ 161
Real Estate                                         59                109
Manufacturing                                       83                78
Energy and Natural Resources                        7                6      
Total Revenues                                      331              354    
                                                                      
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber                                              131               124
Real Estate                                         27                33
Manufacturing                                       73                69
Energy and Natural Resources                        2                1      
Total Cost of Goods Sold                            233               227
Selling, General and Administrative                 34               30     
Total Costs and Expenses                            267              257    
                                                                      
Other Operating Income (Expense), net               —                —      
                                                                      
Operating Income                                    64                97
                                                                      
Equity Earnings from Timberland Venture             16                17
Equity Earnings from Real Estate Development        —                 —
Joint Ventures
                                                                      
Interest Expense, net:
Interest Expense (Debt Obligations to               22                21
Unrelated Parties)
Interest Expense (Note Payable to Timberland        15               15     
Venture)
Total Interest Expense, net                         37                36
                                                                      
Loss on Extinguishment of Debt                      (4       )        —      
                                                                      
Income before Income Taxes                          39                78
                                                                      
Provision (Benefit) for Income Taxes                (1       )        (1     )
                                                                     
Net Income                                          $  40            $ 79   
                                                                      
PER SHARE AMOUNTS:
                                                                      
Net Income per Share – Basic                        $  0.24           $ 0.49
Net Income per Share – Diluted                      $  0.24           $ 0.49
                                                                      
Weighted-Average Number of Shares Outstanding
– Basic                                             170.0             161.7
– Diluted                                           170.4             162.2
                                                                             


PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                                                            
                                                 December 31,     December 31,
(In Millions, Except Per Share Amounts)          2013             2012
ASSETS
Current Assets:
Cash and Cash Equivalents                        $  433           $  356
Accounts Receivable                              29               22
Inventories                                      55               49
Deferred Tax Asset                               6                7
Assets Held for Sale                             92               61
Other Current Assets                             15              13        
                                                 630              508
                                                                  
Timber and Timberlands, net                      4,180            3,363
Minerals and Mineral Rights, net                 298              87
Property, Plant and Equipment, net               118              127
Equity Investment in Timberland Venture          211              204
Equity Investment in Real Estate                 139              —
Development Joint Ventures
Deferred Tax Asset                               20               19
Investment in Grantor Trusts (at Fair            45               39
Value)
Other Assets                                     54              37        
Total Assets                                     $  5,695        $  4,384  
                                                                  
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt                $  —             $  248
Line of Credit                                   467              104
Accounts Payable                                 24               26
Interest Payable                                 22               26
Wages Payable                                    29               29
Taxes Payable                                    10               9
Deferred Revenue                                 26               23
Other Current Liabilities                        10              7         
                                                 588              472
                                                                  
Long-Term Debt                                   2,414            1,815
Note Payable to Timberland Venture               783              783
Other Liabilities                                78              91        
Total Liabilities                                3,863           3,161     
                                                                  
Commitments and Contingencies
                                                                  
STOCKHOLDERS’ EQUITY
Preferred Stock, $0.01 Par Value,
Authorized Shares – 75.0, Outstanding –          —                —
None
Common Stock, $0.01 Par Value, Authorized
Shares – 300.6, Outstanding (net of              2                2
Treasury Stock) – 177.0 at December 31,
2013 and 162.0 at December 31, 2012
Additional Paid-In Capital                       2,942            2,288
Retained Earnings (Accumulated Deficit)          (173      )      (97       )
Treasury Stock, at Cost, Common Shares –
27.0 at December 31, 2013 and 26.9 at            (940      )      (938      )
December 31, 2012
Accumulated Other Comprehensive Income           1               (32       )
(Loss)
Total Stockholders’ Equity                       1,832           1,223     
Total Liabilities and Stockholders’ Equity       $  5,695        $  4,384  
                                                                            


PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                                                
                                                       Year Ended December 31,
(In Millions)                                          2013           2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income                                             $   214        $  203
Adjustments to Reconcile Net Income to Net Cash
Provided By Operating Activities:
Depreciation, Depletion and Amortization
(Includes $4 Loss Related to Forest Fires in           119            114
2013)
Basis of Real Estate Sold                              91             138
Equity Earnings from Timberland Venture                (63      )     (59    )
Distributions from Timberland Venture                  56             56
Deferred Income Taxes                                  (3       )     (3     )
Loss on Extinguishment of Debt                         4              —
Deferred Revenue from Long-Term Gas Leases (Net        (8       )     (8     )
of Amortization)
Timber Deed Acquired                                   (18      )     (98    )
Pension Plan Contributions                             —              (20    )
Working Capital Changes                                (17      )     15
Other                                                  29            15     
Net Cash Provided By (Used In) Operating               404           353    
Activities
                                                                      
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland             (71      )     (72    )
Acquisitions)
Timberlands Acquired                                   (81      )     (18    )
Minerals and Mineral Rights Acquired                   (156     )     (76    )
Payment for Acquisition of MeadWestvaco ("MWV")        (221     )     —
Timberland Assets, net
Other                                                  —             (1     )
Net Cash Provided By (Used In) Investing               (529     )     (167   )
Activities
                                                                      
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends                                              (290     )     (272   )
Borrowings on Line of Credit                           1,771          1,843
Repayments on Line of Credit                           (1,408   )     (2,087 )
Proceeds from Issuance of Long-Term Debt               —              773
Debt Issuance Costs                                    (1       )     (5     )
Principal Payments and Retirement of Long-Term         (513     )     (353   )
Debt
Proceeds from Stock Option Exercises                   37             18
Acquisition of Treasury Stock                          (2       )     (1     )
Proceeds from Issuance of Common Stock                 607            —
Other                                                  1             —      
Net Cash Provided By (Used In) Financing               202           (84    )
Activities
                                                                      
Increase (Decrease) In Cash and Cash Equivalents       77             102
Cash and Cash Equivalents:
Beginning of Period                                    356            254
                                                                     
End of Period                                          $   433       $  356 
                                                                      
                                                                      
NON-CASH INVESTING AND FINANCING ACTIVITIES NOT
REFLECTED ABOVE:
Issuance of Note Payable to MWV as Consideration       $   860        $  —
for Timberland Assets Acquired
                                                                             


PLUM CREEK TIMBER COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                                              
                                                    Quarter Ended December 31,
(In Millions)                                       2013             2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income                                          $  40            $  79
Adjustments to Reconcile Net Income to Net
Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization            33               27
Basis of Real Estate Sold                           22               27
Equity Earnings from Timberland Venture             (16     )        (17     )
Deferred Income Taxes                               (2      )        (2      )
Loss on Extinguishment of Debt                      4                —
Deferred Revenue from Long-Term Gas Leases          (2      )        (2      )
(Net of Amortization)
Pension Plan Contributions                          —                (10     )
Working Capital Changes                             (5      )        10
Other                                               10              4       
Net Cash Provided By (Used In) Operating            84              116     
Activities
                                                                     
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland          (20     )        (20     )
Acquisitions)
Timberlands Acquired                                (1      )        —
Minerals and Mineral Rights Acquired                —                (76     )
Payment for Acquisition of MeadWestvaco             (221    )        —       
("MWV") Timberland Assets, net
Net Cash Provided By (Used In) Investing            (242    )        (96     )
Activities
                                                                     
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends                                           (78     )        (68     )
Borrowings on Line of Credit                        520              131
Repayments on Line of Credit                        (560    )        (378    )
Proceeds from Issuance of Long-Term Debt            —                323
Debt Issuance Costs                                 (1      )        (2      )
Principal Payments and Retirement of                (339    )        (3      )
Long-Term Debt
Proceeds from Stock Option Exercises                2                13
Proceeds from Issuance of Common Stock              607              —
Other                                               1               —       
Net Cash Provided By (Used In) Financing            152             16      
Activities
                                                                     
Increase (Decrease) In Cash and Cash                (6      )        36
Equivalents
Cash and Cash Equivalents:
Beginning of Period                                 439              320
                                                                    
End of Period                                       $  433          $  356  
                                                                     
                                                                     
NON-CASH INVESTING AND FINANCING ACTIVITIES
NOT REFLECTED ABOVE:
Issuance of Note Payable to MWV as                  $  860           $  —
Consideration for Timberland Assets Acquired
                                                                             


PLUM CREEK TIMBER COMPANY, INC.
SEGMENT DATA
(UNAUDITED)
                                                       
                                    Year Ended December 31,
(In Millions)                       2013                       2012
Revenues:
Northern Resources                  $    260                   $   246
Southern Resources                  435                        417
Real Estate                         286                        352
Manufacturing                       362                        324
Energy and Natural                  23                         22
Resources
Eliminations                        (26           )            (22         )
Total Revenues                      $    1,340                $   1,339   
                                                               
Operating Income
(Loss):
Northern Resources                  $    32                    $   20
Southern Resources                  108                        90
Real Estate                         169                        187
Manufacturing                       43                         29
Energy and Natural                  19                         19
Resources
Other Costs and
Eliminations, net                   (76           )            (64         )
^(A)
Total Operating                     $    295                  $   281     
Income
                                                               
Adjusted EBITDA by
Segment: ^(B)
Northern Resources                  $    62                    $   46
Southern Resources                  173                        157
Real Estate                         261                        326
Manufacturing                       59                         44
Energy and Natural                  22                         20
Resources
Other Costs and                     (75           )            (63         )
Eliminations, net
Total                               $    502                  $   530     
                                                                           
(A) During 2013, the company recorded a loss of $5 million related to the
early termination of an equipment lease. The lease was accounted for as an
operating lease. This amount is reported as an operating loss in Other Costs
and Eliminations, net and is included in Other Operating Income (Expense), net
in the Consolidated Statements of Income.

(B) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for
reconciliations of Adjusted EBITDA to operating income and net cash provided
by operating activities.



PLUM CREEK TIMBER COMPANY, INC.
SEGMENT DATA
(UNAUDITED)
                                                         
                                       Quarter Ended December 31,
(In Millions)                          2013                      2012
Revenues:
Northern Resources                     $    66                   $   61
Southern Resources                     122                       105
Real Estate                            59                        109
Manufacturing                          83                        78
Energy and Natural                     7                         6
Resources
Eliminations                           (6          )             (5        )
Total Revenues                         $    331                 $   354   
                                                                 
Operating Income
(Loss):
Northern Resources                     $    8                    $   5
Southern Resources                     34                        24
Real Estate                            31                        74
Manufacturing                          8                         7
Energy and Natural                     5                         5
Resources
Other Costs and                        (22         )             (18       )
Eliminations, net
Total Operating Income                 $    64                  $   97    
                                                                 
Adjusted EBITDA by
Segment: ^(A)
Northern Resources                     $    15                   $   11
Southern Resources                     54                        39
Real Estate                            53                        101
Manufacturing                          12                        11
Energy and Natural                     6                         6
Resources
Other Costs and                        (22         )             (18       )
Eliminations, net
Total                                  $    118                 $   150   

(A) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for
reconciliations of Adjusted EBITDA to operating income and net cash provided
by operating activities.


PLUM CREEK TIMBER COMPANY, INC.
DEBT REPAYMENT SCHEDULE
(UNAUDITED)
                                                            
(In
Millions)             September                                       December
Debt                  30,                                             31,
Issuance,          2013            Borrowings   Repayments     2013
Interest                                               ^(E)
Rate
Line of
Credit,               $  507            —              (40      )     $  467
1.38% ^(A)
                                                                      
Term Credit
Agreement             450               —              (225     )     225
due 2019,
1.0% ^(B)
                                                                      
Private
Debt:
Senior Notes
due 2013,             72                —              (72      )     —
7.76%
Senior Notes
due                   14                —              (14      )     —
2013-2016,
8.05%
                                                                      
Public Debt:
^(C)
Senior Notes
due 2015,             456               —              (18      )     438
5.875%
Senior Notes
due 2021,             575               —              (7       )     568
4.70%
Senior Notes
due 2023,             322               —              —              323
3.25%
                                                                      
Installment
Note Payable          —                 860            —              860
due 2023,
4.5% ^ (D)
                                                                      
Note Payable
to
Timberland            783               —              —              783
Venture due
2018, 7.375%
                                                                   
Total Debt            $  3,179         $  860        $  (376  )     $  3,664
                                                                         
(A) Variable rate debt, represents interest rate as of September 30, 2013.

(B) Variable rate debt, represents interest rate as of September 30, 2013, net
of expected patronage.

(C) Beginning and ending balances for Public Debt are stated net of discount.
Amounts may not total across the columns.

(D) Estimated effective rate, net of expected patronage.

(E) Repayments do not include $2 million prepayment penalty paid by the
company to retire Private Debt, or $2 million premium paid by the company to
retire Public Debt.



Plum Creek Timber Company, Inc.
Reconciliation of GAAP Net Income to Adjusted Net Income Excluding
Items Related to the Acquisition of Timberland Assets from MWV
(Unaudited)

The following table reconciles the company's reported GAAP net income and
earnings per diluted share (EPS) during the quarterly and twelve month periods
ended December 31, 2013 to adjusted amounts:
                                                             
                         Year Ended December 31,           Quarter Ended
                                                           December 31,
                         2013                              2013
(In Millions,                                                          Diluted
Except Per               Dollars          Diluted EPS      Dollars     EPS
Share Amounts)
Reported GAAP            $  214           $  1.30          $  40       $  0.24
Net Income
                                                                       
Loss Related to
Forest Fires             4                0.02             —           —
^(A)
                                                                       
MWV Acquisition
Adjustments
Loss on
Extinguishment           4                0.03             4           0.02
of Debt ^(B)
Transaction              5                0.03             5           0.03
Expenses ^ (C)
Increased
Interest                 3                0.02             3           0.02
Expense, Net
^(D)
                                                                    
Non-GAAP
Adjusted Net
Income and               $  230          $  1.39         $  52      $  0.31
Per-Share
Amounts ^(E)

(A) During the third quarter of 2013, the company's Northern Resources Segment
recognized a $4 million loss, representing the book basis of timber volume
destroyed as a result of forest fires in Montana and Oregon.

(B) Consists primarily of prepayment penalties and premiums related to early
debt repayments reported as Loss on Extinguishment of Debt in the Consolidated
Statements of Income.

(C) Includes closing costs and acquisition expenses reported in Selling,
General and Administrative Expense in the Consolidated Statements of Income.

(D) Includes additional Interest Expense related to the $860 million
Installment Note Payable, partially offset by the impact of early debt
repayments.

(E) Diluted per share amounts are computed independently for each caption
presented. Therefore, the sum of the per share components from the table above
may not equal the per share amount presented.



Plum Creek Timber Company, Inc.
Segment Data - Adjusted EBITDA
Reconciliation of Operating Income and Net Cash
Provided by Operating Activities
(Unaudited)

We define Adjusted EBITDA as earnings from continuing operations, excluding
equity method earnings, and before interest, taxes, depreciation, depletion,
amortization, and basis in lands sold. Adjusted EBITDA is not considered a
measure of financial performance under U.S. generally accepted accounting
principles (U.S. GAAP) and the items excluded from Adjusted EBITDA are
significant components of our consolidated financial statements.

We present Adjusted EBITDA as a supplemental performance measure because we
believe it facilitates operating performance comparisons from period to
period, and each business segment’s contribution to that performance, by
eliminating non-cash charges to earnings, which can vary significantly by
business segment. These non-cash charges include timber depletion,
depreciation of fixed assets and the basis in lands sold. We also use Adjusted
EBITDA as a supplemental liquidity measure because we believe it is useful in
measuring our ability to generate cash. In addition, we believe Adjusted
EBITDA is commonly used by investors, lenders and rating agencies to assess
our financial performance.

A reconciliation of Adjusted EBITDA to net income and net cash from operating
activities, the most directly comparable U.S. GAAP performance and liquidity
measures, is provided in the following schedules:
                                                            
                        Year Ended December 31, 2013
                                                                      
                                      Depreciation,
                                                           Basis
                        Operating     Depletion and        of         Adjusted
                                                           Real
                        Income        Amortization^(1)     Estate     EBITDA
                                                           Sold
By Segment
Northern                $  32         $    30              $ —        $  62
Resources
Southern                108           65                   —          173
Resources
Real Estate             169           1                    91         261
Manufacturing           43            16                   —          59
Energy and
Natural                 19            3                    —          22
Resources
Other Costs and         (73     )     1                    —          (72    )
Eliminations
Other
Unallocated
Operating               (3      )     —                   —         (3     )
Income
(Expense), net
Total                   $  295       $    116            $ 91      $  502 
                                                                      
Reconciliation
to Net
Income^(2)
Equity Earnings
from Timberland         63
Venture
Interest                (141    )
Expense
Gain (Loss) on
Extinguishment          (4      )
of Debt
(Provision)
Benefit for             1       
Income Taxes
Net Income              $  214  
                                                                      
Reconciliation
to Net Cash
Provided By
Operating
Activities
Net Cash Flows                                                        $  404
from Operations
Interest                                                              141
Expense
Amortization of                                                       (3     )
Debt Costs
Provision /
(Benefit) for                                                         (1     )
Income Taxes
Distributions
from Timberland                                                       (56    )
Venture
Deferred Income                                                       3
Taxes
Gain on Sale of
Properties and                                                        —
Other Assets
Deferred
Revenue from                                                          8
Long-Term Gas
Leases
Timber Deed                                                           18
Acquired
Pension Plan                                                          —
Contributions
Working Capital                                                       17
Changes
Other                                                                 (29    )
Adjusted EBITDA                                                       $  502 
                                                                             
(1) Includes a $4 million loss due to fire damages in the Northern Resources
Segment.
(2) Includes reconciling items not allocated to segments for financial
reporting purposes.


                                                            
                       Year Ended December 31, 2012
                                                                      
                                     Depreciation,
                       Operating     Depletion and     Basis of       Adjusted
                                                       Real
                       Income        Amortization      Estate         EBITDA
                                                       Sold
By Segment
Northern               $  20         $   26            $  —           $  46
Resources
Southern               90            67                —              157
Resources
Real Estate            187           1                 138            326
Manufacturing          29            15                —              44
Energy and
Natural                19            1                 —              20
Resources
Other Costs and        (65     )     1                 —              (64    )
Eliminations
Other
Unallocated            1            —                —             1      
Operating Income
(Expense), net
Total                  $  281       $   111          $  138        $  530 
                                                                      
Reconciliation
to Net
Income^(1)
Equity Earnings
from Timberland        59
Venture
Interest Expense       (140    )
(Provision)
Benefit for            3       
Income Taxes
Net Income             $  203  
                                                                      
Reconciliation
to Net Cash
Provided By
Operating
Activities
Net Cash Flows                                                        $  353
from Operations
Interest Expense                                                      140
Amortization of                                                       (3     )
Debt Costs
Provision /
(Benefit) for                                                         (3     )
Income Taxes
Distributions
from Timberland                                                       (56    )
Venture
Deferred Income                                                       3
Taxes
Gain on Sale of
Properties and                                                        —
Other Assets
Deferred Revenue
from Long-Term                                                        8
Gas Leases
Timber Deed                                                           98
Acquired
Pension Plan                                                          20
Contributions
Working Capital                                                       (15    )
Changes
Other                                                                 (15    )
Adjusted EBITDA                                                       $  530 
                                                                             
(1) Includes reconciling items not allocated to segments for financial
reporting purposes.


                                                            
                        Quarter Ended December 31, 2013
                                                                      
                                      Depreciation,
                        Operating     Depletion and     Basis of      Adjusted
                                                        Real
                        Income        Amortization      Estate        EBITDA
                                                        Sold
By Segment
Northern                $  8          $    7            $  —          $  15
Resources
Southern                34            20                —             54
Resources
Real Estate             31            —                 22            53
Manufacturing           8             4                 —             12
Energy and              5             1                 —             6
Natural Resources
Other Costs and         (22    )      —                 —             (22    )
Eliminations
Other Unallocated
Operating Income        —            —                —            —      
(Expense), net
Total                   $  64        $    32          $  22        $  118 
                                                                      
Reconciliation to
Net Income^(1)
Equity Earnings
from Timberland         16
Venture
Interest Expense        (37    )
Gain (Loss) on
Extinguishment of       (4     )
Debt
(Provision)
Benefit for             1      
Income Taxes
Net Income              $  40  
                                                                      
Reconciliation to
Net Cash Provided
By Operating
Activities
Net Cash Flows                                                        $  84
from Operations
Interest Expense                                                      37
Amortization of                                                       (1     )
Debt Costs
Provision /
(Benefit) for                                                         (1     )
Income Taxes
Distributions
from Timberland                                                       —
Venture
Deferred Income                                                       2
Taxes
Gain on Sale of
Properties and                                                        —
Other Assets
Deferred Revenue
from Long-Term                                                        2
Gas Leases
Timber Deed                                                           —
Acquired
Pension Plan                                                          —
Contributions
Working Capital                                                       5
Changes
Other                                                                 (10    )
Adjusted EBITDA                                                       $  118 

(1) Includes reconciling items not allocated to segments for financial
reporting purposes.


                                                            
                        Quarter Ended December 31, 2012
                                                                      
                                      Depreciation,
                        Operating     Depletion and     Basis of      Adjusted
                                                        Real
                        Income        Amortization      Estate        EBITDA
                                                        Sold
By Segment
Northern                $  5          $    6            $  —          $  11
Resources
Southern                24            15                —             39
Resources
Real Estate             74            —                 27            101
Manufacturing           7             4                 —             11
Energy and              5             1                 —             6
Natural Resources
Other Costs and         (18    )      —                 —             (18    )
Eliminations
Other Unallocated
Operating Income        —            —                —            —      
(Expense), net
Total                   $  97        $    26          $  27        $  150 
                                                                      
Reconciliation to
Net Income^(1)
Equity Earnings
from Timberland         17
Venture
Interest Expense        (36    )
(Provision)
Benefit for             1      
Income Taxes
Net Income              $  79  
                                                                      
Reconciliation to
Net Cash Provided
By Operating
Activities
Net Cash Flows                                                        $  116
from Operations
Interest Expense                                                      36
Amortization of                                                       (1     )
Debt Costs
Provision /
(Benefit) for                                                         (1     )
Income Taxes
Distributions
from Timberland                                                       —
Venture
Deferred Income                                                       2
Taxes
Gain on Sale of
Properties and                                                        —
Other Assets
Deferred Revenue
from Long-Term                                                        2
Gas Leases
Timber Deed                                                           —
Acquired
Pension Plan                                                          10
Contributions
Working Capital                                                       (10    )
Changes
Other                                                                 (4     )
Adjusted EBITDA                                                       $  150 

(1) Includes reconciling items not allocated to segments for financial
reporting purposes.

Contact:

Plum Creek Timber Company, Inc.
Investors:
John Hobbs, 1-800-858-5347
or
Media:
Kathy Budinick, 1-888-467-3751
 
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