Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q4 2014 Earnings Presentation
24 slides from Weyerhaeuser's earnings presentation, Jan 30, 2015
Slide 1: Earnings Results: 4th Quarter 2014
WEYERHAEUSER EARNINGS RESULTS: 4th Quarter 2014 January 30, 2015
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains statements concerning the company’s future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on various assumptions and may not be acc
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES • During the course of this presentation, certain non-U.S. GAAP financial information will be presented. A reconciliation of those numbers to U.S. GAAP financial measures is included in this presentation which is available on the company’s website at www.weyerhaeuser.com
Slide 4: 2014 Consolidated Results
2014 CONSOLIDATED RESULTS Chart 1 2014 Notes $ Millions Consolidated Statement of Operations 2013 2014 Change • 22 percent increase in earnings Before Special Items from continuing operations before Timberlands $ 470 $ 613 $ 143 special items Wood Products 451 327 (124) Cellulose Fibers 200 291 91 •
Slide 5: 2014 Q4 Consolidated Results
2014 Q4 CONSOLIDATED RESULTS Chart 2 $ Millions 2014 2014 $ Millions EXCEPT EPS 2014 2014 Contribution to Earnings Q3 Q4 Change Consolidated Statement of Operations Q3 Q4 Before Special Items Before Special Items Timberlands $ 136 $ 143 $ 7 Net sales $ 1,915 $ 1,788 Wood Products 105 56 (49) Cost of
Slide 6: Earnings Before Special Items
EARNINGS BEFORE SPECIAL ITEMS Chart 3 $ Millions EXCEPT EPS 2014 Q3 2014 Q4 Pre-Tax After-Tax Diluted Pre-Tax After-Tax Diluted Earnings1 Earnings EPS Earnings1 Earnings EPS Earnings From Continuing Operations Before $ 222 $ 178 $ 0.33 $ 183 $ 145 $ 0.27 Special Items Special Items: Gain on postreti
Slide 7: Timberlands Segment
TIMBERLANDS SEGMENT Chart 4 4th Quarter Notes TIMBERLANDS ($ Millions) 2014 2014 Segment Statement of Operations Q3 Q4 • Higher Western fee harvest volumes and log realizations Third party sales2 $ 358 $ 348 • Higher fee harvest volumes and Intersegment sales2 141 150 slightly higher realizations in
Slide 8: Sales Volumes and Realizations
SALES VOLUMES AND REALIZATIONS Chart 5 1 3rd-Party Log Sales and Realizations - West 3rd-Party Log Sales and Realizations - South $115 $114 $46 3,600 $105 $105 $105 $109 $107 $120 2,500 $44 $45 $45 $45 $50 $43 $43 $43 Volumes (Thousands of m3) Volumes (Thousands of m3) $102 Realizations ($/m3) Reali
Slide 9: Western/Southern Timberlands
WESTERN/SOUTHERN TIMBERLANDS Chart 6 Intersegment Log Sales Volume1 Fee Harvest Volume 2 2,000 3,500 3,007 2,875 2,888 2,950 3,145 (Thousands of m3) (Thousands of m3) 1,619 1,612 1,574 1,548 1,631 1,665 1,487 1,596 2,833 2,828 2,928 3,000 1,500 2,500 2,866 2,715 1,000 686 712 709 720 786 2,686 2,656
Slide 10: Wood Products Segment
WOOD PRODUCTS SEGMENT Chart 7 WOOD PRODUCTS ($ Millions) 2014 2014 WOOD PRODUCTS ($ Millions) 2014 2014 EBITDA by Business Q3 Q4 Segment Statement of Operations Q3 Q4 Lumber $ 93 $ 65 Third party sales $ 1,048 $ 947 OSB 11 7 Intersegment sales 20 20 Engineered Wood Products 27 14 Total sales 1,068 9
Slide 11: 3rd-Party Sales Volumes and Realizations
3RD-PARTY SALES VOLUMES AND REALIZATIONS1 Chart 8 Lumber OSB $359 2,000 $440 $434 $432 $427 $431 $415 $500 2,100 $332 $375 Volumes (Millions of Square Ft.) Volumes (Millions of Board Ft.) $404 $413 Realizations ($/M 3/8") Realizations ($/MBF) 1,600 $400 $246 $237 1,156 1,189 1,206 1,162 $230 $226 $2
Slide 12: Cellulose Fibers Segment
CELLULOSE FIBERS SEGMENT Chart 9 4th Quarter Notes CELLULOSE FIBERS ($ Millions) 2014 2014 Segment Statement of Operations Q3 Q4 • Higher pulp price realizations and slightly lower sales volumes Total Sales $ 503 $ 482 Cost of products sold 427 379 • Lower shipment volumes in liquid packaging board
Slide 13: Cellulose Fibers Segment: Sales, Volumes and Maintenance
CELLULOSE FIBERS SEGMENT Chart 10 3rd-Party Sales Volumes and 3rd-Party Sales Volumes and Realizations - Pulp Realizations - Liquid Packaging $886 $1,185 600 $900 400 $1,165 $1,200 $845 $858 Volumes (Thousands of ADMT) Volumes (Thousands of tons) Realizations ($/ADMT) $818 $825 Realizations ($/ADMT)
Slide 14: Unallocated Items
1 UNALLOCATED ITEMS Chart 11 UNALLOCATED ITEMS ($ Millions) 2014 2014 UNALLOCATED ITEMS ($ Millions) 2014 2014 Q3 Q4 By Natural Expense Q3 Q4 Unallocated corporate function expenses $ (3) $ (7) Credit to products sold3 $ 26 $ 12 Unallocated share-based compensation 1 (7) G&A expenses4 (3) (15) Unall
Slide 15: Outlook: 2015 Q1
OUTLOOK: 2015 Q1 Chart 12 SEGMENT COMMENTS TIMBERLANDS ● Higher fee harvest volumes and realizations, and seasonally lower costs in the West ● Lower fee harvest volumes in the South ● Higher earnings from dispositions of non-strategic timberlands ● Expect 2015 Q1 earnings to be significantly higher
Slide 16: Financial Items
FINANCIAL ITEMS Chart 13 KEY FINANCIAL METRICS 2014 2014 ($ Millions) Q3 Q4 Cash from Operations 4 Ending Cash Balance1 $ 1,620 $ 1,580 $374 $353 $400 $343 $348 $322 $304 Long-Term Debt $ 4,891 $ 4,891 $300 ($ Millions) Gross Debt to Adjusted EBITDA $200 3.1 3.0 (LTM)2 $100 3 $109 Net Debt to Enterp
Slide 17: Appendix
APPENDIX 17 1/30/2015
Slide 18: Pension and Postretirement Expense
PENSION AND POSTRETIREMENT EXPENSE Chart 15 $ Millions 2013 2014 Net Pension and Postretirement Costs1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Timberlands $ 2 $ 3 $ 2 $ 3 $ 3 $ 3 $ 2 $ 2 Wood Products 7 6 8 7 5 6 6 7 Cellulose Fibers 4 5 5 4 2 3 3 3 Unallocated Items 10 10 11 9 (10) (11) (12) (12) Total Company Pen
Slide 19: Earnings Summary
EARNINGS SUMMARY Chart 16 $ Millions EXCEPT EPS 2013 2014 Contribution to Earnings Before Special Items Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Timberlands $ 104 $ 114 $ 118 $ 134 $ 470 $ 164 $ 170 $ 136 $ 143 $ 613 Wood Products 178 136 79 58 451 64 102 105 56 327 Cellulose Fibers 31 57 47 65 200 54 91 59 87
Slide 20: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION Chart 17 $ Millions EXCEPT EPS 2013 2014 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Weighted Average Shares Outstanding, Diluted1,2 551 558 587 589 571 589 590 536 529 561 Diluted EPS from Continuing Operations Before Special Items $ 0.26 $ 0.33 $ 0.23 $ 0.19 $ 0.99 $ 0.24 $ 0.4
Slide 21: EBITDA Reconciliation by Segment
EBITDA RECONCILIATION BY SEGMENT Chart 18 $ MILLIONS 2014 Q3 2014 Q4 Wood Cellulose Unallocated Wood Cellulose Unallocated Timberlands Products Fibers Items Total Timberlands Products Fibers Items Total 1 Adjusted EBITDA $ 187 $ 135 $ 99 $ (7) $ 414 $ 196 $ 86 $ 126 $ (32) $ 376 Depletion, depreciat
Slide 22: EBITDA Reconciliation - Timberlands
EBITDA RECONCILIATION - TIMBERLANDS Chart 19 $ MILLIONS 2014 Q3 2014 Q4 Longview Longview Legacy Timber Legacy Timber Timberlands acquisition Total Timberlands acquisition Total 1 Adjusted EBITDA $ 151 $ 36 $ 187 $ 152 $ 44 $ 196 Depletion, depreciation & amortization (37) (14) (51) (37) (16) (53) S
Slide 23: EBITDA Reconciliation - Wood Products
EBITDA RECONCILIATION - WOOD PRODUCTS Chart 20 $ Millions 2014 Q3 2014 Q4 Lumber OSB ELP Distribution Other Total Lumber OSB ELP Distribution Other Total 1 Adjusted EBITDA $ 93 $ 11 $ 27 $ 5 $ (1) $ 135 $ 65 $ 7 $ 14 $ (1) $ 1 $ 86 Depletion, depreciation (11) (7) (10) (2) — (30) (10) (8) (10) (2) —
Slide 24: Gross Debt to EBITDA Reconciliation
GROSS DEBT TO EBITDA RECONCILIATION Chart 21 $ MILLIONS 2014 2014 Q3 Q4 1,2 Gross Debt to Adjusted EBITDA (LTM) 3.1 3.0 Long-Term Debt $ 4,891 $ 4,891 Adjusted EBITDA (LTM)1 $ 1,603 $ 1,634 Depletion, depreciation & amortization (493) (493) Non-operating pension & postretirement costs 24 45 Special