Stephen Simpson, CFA
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Feb. 16, 5:58 PM
Nov. 9, 2015, 12:45 PM
Nov. 9, 2015, 9:14 AM
Nov. 9, 2015, 9:06 AM
- The two companies are currently holding a joint conference call to discuss the deal with investors and analysts.
- Webcast and presentation slides
- WY -5.35% to $28.84 and PCL +13.6% to $45.75 premarket.
- The deal is expected to close late in Q1 or early in Q2, and the merged company's 13-member board will have eight from WY and five from PCL. The $1.24 per share annual dividend is maintained for WY holders, but represents a 13% increase for PCL owners. FAD per share accretion is expected in year one.
- The merger is not contingent on WY's ongoing strategic alternatives review of its cellulose fibers business. Options are still business as usual, or a sale/spin of the unit.
- Previously: Weyerhaeuser acquiring Plum Creek to make $23B timber giant (Nov. 8)
Oct. 28, 2014, 11:06 AM
- The recovery in fundamentals (i.e., busier housing starts) is likely to be pushed further out, says analyst George Staphos, following the Q3 earnings report.
- CEO Rick Holley on the earnings call (transcript): "We did not grow our Southern harvest to the extent that we had planned for the third quarter. Some of the demand growth and price intention, we have forecast for the second half of this year has not materialized."
- Staphos: "The dividend increase at least as far as you can see, for '15 are probably on hold for now?"
- Holley: "I think that's a fair assessment."
- PCL -3%
- Previously: Plum Creek Timber beats by $0.02, misses on revenue
Jul. 28, 2014, 5:36 PM
Apr. 29, 2014, 1:37 PM
- Adjusted EBITDA of $93M fell from $128M one year ago. Timberlands and other assets acquired from MeadWestvaco late last year contributed $9M to adjusted EBITDA during Q1. Greater contributions are expected for rest of year.
- Northern Resources segment operating profit of $16M is up from $11M one year ago, with sawlog prices up 11%. Southern Resources segment operating profit of $31M is up $7M with increased harvest volumes (acquisitions) combining with a 6% boost in sawlog prices.
- Real Estate segment revenue of $23M and operating profit of $12M vs. $78M and $45M a year ago (included $53M sale of timberlands). Manufacturing segment operating income of $9M falls from $10M a year ago, with plywood sales volumes dropping 17%. Weather was an issue.
- Outlook: 20M-21M tons of timber expected to be harvested in 2014. Full-year Real Estate sales are expected between $240M-$280M. Full year income of $1.30-$1.50 per share and Q2 income of $0.27-$0.32.
- Commenting on the results, SA Pro's Stephen Simpson - who recently published a bullish piece on Plum Creek (PCL +1.9%) - likes the strong guidance (Q2 consensus is $0.28), but notes management pushed out the timeline for Southern sawlog price recovery, and pricing in the Northwest seems to be getting a little softer.
- Previously: Plum Creek Timber Company, Inc. beats by $0.02, beats on revenue
Jan. 28, 2014, 8:59 AM
- Northern Resources unit operating profit of $8M gains from $5M a year ago thanks to stronger sawlog prices offsetting modestly lower harvest volumes. Southern Resources unit operating profit of $34M vs. $10M a year ago.
- Real Estate unit revenue and operating profit of $59M and $31M, respectively, falls sharply from $109M and $74M a year ago.
- Manufacturing unit operating profit of $8M up from $1M a year ago as lumber sales volume grew 40% thanks to the restarting of the company's stud lumber mill this year.
- $1.1B purchase of timberland, real estate, and related from MeadWestvaco closed in Q4, financed with 13.9M share issuance and the taking on of about $480M in debt.
- The 2014 outlook is shy of consensus: Real estate segment sales are expected at $240M-$280M. Net income is expected at $1.30-$1.50 per share, with Q1 net income of just $0.12-$0.17 per share thanks to the timing of real estate sales.
- DA Davidson upgrades to Buy with $50 price target.
- PCL -4.8% premarket
Oct. 30, 2013, 9:31 AM
Jan. 28, 2013, 5:43 PM
Jan. 28, 2013, 4:19 PMPlum Creek Timber (PCL): Q4 EPS of $0.49 beats by $0.20. Revenue of $354M (+12.3% Y/Y) beats by $54M. Shares +2.6% AH. (PR) | Jan. 28, 2013, 4:19 PM
Oct. 1, 2012, 2:44 PM
Plum Creek Timber (PCL -2%) shares are downgraded to Neutral from Buy at D.A. Davidson based on valuation. While the firm expects real estate to continue to improve into 2013, expectations are already discounted into PCL's valuation; absent acceleration beyond the current consensus of 900K units, the firm sees no catalyst to increase shares past $45.| Oct. 1, 2012, 2:44 PM
May 1, 2012, 12:25 PM
Plum Creek Timber's (PCL -4.9%) Q1 earnings fell 24% as the REIT was hurt by weaker earnings at its real estate business where segment sales rose but missed expectations. For the quarter, EPS was $0.18 vs. $0.24 consensus; revenues rose 22.5% Y/Y to $337M vs. $332M consensus. Q2 EPS guidance was lowered to $0.15-$0.20 vs. $0.27 consensus.| May 1, 2012, 12:25 PM | 2 Comments