Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q4 2012 Earnings Presentation
20 slides from Weyerhaeuser's earnings presentation, Jan 25, 2013
Slide 1: Earnings Release – 4th Quarter 2012
WEYERHAEUSER Earnings Release – 4th Quarter 2012 1 | 07/27/2012
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: 2012 Q4 Consolidated Results
Chart 1 2012 Q4 CONSOLIDATED RESULTS $ Millions EXCEPT EPS 2012 Q3 2012 Q4 $ Millions EXCEPT EPS 2012 2012 Revenue $1,772 $2,000 Contribution to Pre-Tax Earnings Q3 Q4 Change Adjusted EBITDA1. $327 $391 Timberlands $80 $95 $15 Net Income $117 $143 Wood Products 59 38 (21) Diluted EPS $0.22 $0.26 Cel
Slide 5: Timberlands Segment
Chart 2 TIMBERLANDS SEGMENT TIMBERLANDS ($ Millions) 2012 Q3 2012 Q4 Third Party Revenues1. $262 $291 Intersegment Revenues1. $103 $117 Contribution to Pre-Tax Earnings $80 $95 Adjusted EBITDA2. $114 $131 Operating Margin3. 22% 23% 1. 2012 Q4 excludes $7 million of third party revenue and $68 millio
Slide 6: Western/Southern Timberlands
Chart 3 WESTERN/SOUTHERN TIMBERLANDS 3rd-Party Log Sales and Realizations - West 3rd-Party Log Sales and Realizations - South 2,500 $109 $125 2,500 $50 $104 $100 $42 $43 $100 $99 $41 $41 $40 $40 $41 $94 $96 $39 $89 Volumes (Thousands of m3) 2,000 $100 2,000 $40 Volumes (Thousands of m3) Realizations
Slide 7: Wood Products Segment
Chart 4 WOOD PRODUCTS SEGMENT WOOD PRODUCTS ($ Millions) 2012 Q3 2012 Q4 Third Party Revenues $816 $832 Intersegment Revenues $18 $16 Contribution to Pre-Tax Earnings $59 $38 Adjusted EBITDA1. $92 $71 Operating Margin2. 7% 4% 1. A reconciliation to GAAP is set forth on Chart 16, and at www.weyerhaeu
Slide 8: 3rd-Party Sales Volumes and Realizations
Chart 5 3RD-PARTY SALES VOLUMES AND REALIZATIONS Lumber OSB $290 2,000 $400 1,200 $300 $268 $359 $366 Volumes (Millions of Square Ft.) $350 Volumes (Millions of Board Ft.) $214 Realizations ($/M 3/8”) 1,600 $350 $197 Realizations ($/MBF) $315 $311 900 $191 $225 $301 $301 $296 $177 $176 $173 643 630
Slide 9: Cellulose Fibers Segment
Chart 6 CELLULOSE FIBERS SEGMENT CELLULOSE FIBERS ($ Millions) 2012 Q3 2012 Q4 Total Revenues $459 $463 Contribution to Pre-Tax Earnings $78 $61 Adjusted EBITDA1. $112 $99 Operating Margin2. 17% 13% Days of Scheduled Annual Maintenance 13 6 1. A reconciliation to GAAP is set forth on Chart 16, and a
Slide 10: Cellulose Fibers Segment
Chart 7 CELLULOSE FIBERS SEGMENT 3rd-Party Sales Volumes and Realizations – Pulp Production Volumes – Pulp 600 $960 $1,000 600 $912 $920 $895 Volumes (Thousands of ADMT) Volumes (Thousands of ADMT) Realizations ($/ADMT) 550 $900 550 $818 $819 $818 $799 500 $800 500 468 462 460 465 449 456 453 450 43
Slide 11: Real Estate Segment
Chart 8 REAL ESTATE SEGMENT REAL ESTATE ($ Millions) 2012 Q3 2012 Q4 Total Revenues $230 $407 Contribution to Pre-Tax Earnings $17 $81 Adjusted EBITDA1. $24 $91 Operating Margin2. 7% 20% 1. A reconciliation to GAAP is set forth on Chart 16, and at www.weyerhaeuser.com. 2. Contribution to Pre-Tax Ear
Slide 12: Single Family Homebuilding
Chart 9 SINGLE FAMILY HOMEBUILDING Average Closing Price and Home Closings and Cancellation Rate Gross Margin Excluding Impairments 1,200 20% 35% $450 17% 18% 18% $419 16% 16% $403 $398 15% $391 Cancellation Rate (%) 30% $376 $374 $372 $381 $400 Price ($ Thousands) 950 15% Gross Margin (%) 12% 842 H
Slide 13: Unallocated Items
Chart 10 UNALLOCATED ITEMS1. UNALLOCATED ITEMS ($ Millions) 2012 Q3 2012 Q4 Unallocated Corporate Function Expenses ($5) ($8) Unallocated Share-Based Compensation (7) (3) Unallocated Pension & Postretirement Costs (7) (8) Foreign Exchange Gains (Losses) 11 (2) Elimination of Intersegment Profit in I
Slide 14: Outlook: 2013 Q1
OUTLOOK: 2013 Q1 Chart 11 SEGMENT COMMENTS • Improved selling prices for Western domestic and export logs • Seasonally lower Southern fee harvest volumes, and slightly lower log price realizations Timberlands • Lower earnings from disposition of non-strategic timberlands • Excluding dispositions of
Slide 15: Financial Items
FINANCIAL ITEMS Chart 12 Cash from Operations $267 $252 300 ($ Millions) 2012 Q3 2012 Q4 200 $147 $122 $114 $117 ($ Millions) 100 Ending Cash Balance $608 $898 0 Long-Term Debt $4,291 $4,291 (100) ($60) ($87) (200) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 Scheduled Debt Maturities Capital Expenditures as o
Slide 16: Appendix
APPEN DIX 16 | 01/25/2013
Slide 17: Intersegment Profit / LIFO Adjustment
Chart 13 INTERSEGMENT PROFIT / LIFO ADJUSTMENT Weyerhaeuser began holding elimination of intersegment profit on inventory and the LIFO reserve as part of Unallocated Items during 2012 Q2. This change provides a better understanding of business segment operating results. Contributions to pre-tax earn
Slide 18: Earnings Summary
EARNINGS SUMMARY Chart 14 Weyerhaeuser began holding elimination of intersegment profit on inventory and the LIFO reserve as part of Unallocated Items during 2012 Q2. Contributions to pre-tax earnings for prior periods have been adjusted to reflect this change. A reconciliation to contribution to pr
Slide 19: Earnings Per Share Reconciliation
Chart 15 EARNINGS PER SHARE RECONCILIATION 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Diluted EPS Before Special Items $0.00 $0.06 $0.12 $0.14 $0.02 $0.09 $0.22 $0.26 Special Items: Net Gain on Sale of Assets, Operations 0.18 (0.01) 0.06 -- -- 0.01 -- -- and Property Gain on Postretirement Plan -- -- -- -- 0
Slide 20: EBITDA Reconciliation
Chart 16 EBITDA RECONCILIATION $ Millions 2012 Q3 2012 Q4 Wood Cellulose Real Unallocated Wood Cellulose Real Unallocated Timberlands Products Fibers Estate Items Total Timberlands Products Fibers Estate Items Total Adjusted EBITDA Excluding $114 $92 $112 $24 ($15) $327 $131 $71 $99 $91 ($1) $391 Sp