Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q1 2012 Earnings Presentation
20 slides from Weyerhaeuser's earnings presentation, Apr 27, 2012
Slide 1: Earnings Release – 1st Quarter 2012
WEYERHAEUSER Earnings Release – 1st Quarter 2012 1 | 04/27/2012
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 Q1 Consolidated Results
Chart 1 2012 Q1 CONSOLIDATED RESULTS 2011 Q4 2012 Q1 $ Millions EXCEPT EPS 2011 2012 Net Income Contribution to Pre-Tax Earnings $77 $9 Q4 Q1 Change Before Special Items1. Before Special Items Diluted EPS Timberlands $70 $71 $1 $0.14 $0.02 Before Special Items1. Wood Products (61) (22) 39 EBITDA Cel
Slide 5: Earnings Before Special Items
Chart 2 EARNINGS BEFORE SPECIAL ITEMS Reconciliation to GAAP 2011 Q4 2012 Q1 Contribution Contribution After-Tax After-Tax $ Millions EXCEPT EPS to Pre-Tax Earnings Diluted EPS to Pre-Tax Earnings Diluted EPS Earnings Earnings Earnings Before Special Items $162 $77 $0.14 $75 $9 $0.02 Special Items:
Slide 6: Timberlands Segment
Chart 3 TIMBERLANDS SEGMENT TIMBERLANDS ($ Millions) 2011 Q4 2012 Q1 Third Party Revenues1. $269 $242 Intersegment Revenues1. $102 $112 Contribution to Pre-Tax Earnings $70 $71 EBITDA2. $104 $105 Operating Margin3. 19% 20% 1. Revenues exclude Canadian Forestland operations. 2. A reconciliation to GA
Slide 7: Western/Southern Timberlands
Chart 4 WESTERN/SOUTHERN TIMBERLANDS 3rd-Party Log Sales and Realizations - West 3rd-Party Log Sales and Realizations - South 2,500 $109 $125 2,500 $50 $100 $104 $100 $41 $41 $40 $40 $99 $39 Volumes (Thousands of m3) 2,000 $100 2,000 $40 Volumes (Thousands of m3) Realizations ($/m3) Realizations ($/
Slide 8: Wood Products Segment
Chart 5 WOOD PRODUCTS SEGMENT WOOD PRODUCTS ($ Millions) 2011 Q4 2012 Q1 Third Party Revenues $542 $634 Intersegment Revenues $19 $20 Charge to Pre-Tax Earnings Before Special Items ($61) ($22) Pre-Tax Special Items (19) -- Charge to Pre-Tax Earnings Including Special Items ($80) ($22) EBITDA, exclu
Slide 9: 3rd-Party Sales Volumes and Realizations
Chart 6 3RD-PARTY SALES VOLUMES AND REALIZATIONS1. Lumber OSB 1,600 $350 1,000 $250 Volumes (Millions of Square Ft.) $315 $311 $197 $301 $301 $191 Volumes (Millions of Board Ft.) $296 $177 $176 Realizations ($/M 3/8”) 800 $173 $200 Realizations ($/MBF) 1,200 $300 963 934 937 565 863 600 546 516 $150
Slide 10: Cellulose Fibers Segment
Chart 7 CELLULOSE FIBERS SEGMENT CELLULOSE FIBERS ($ Millions) 2011 Q4 2012 Q1 Total Revenues $523 $473 Contribution to Pre-Tax Earnings $134 $44 EBITDA1. $170 $82 Operating Margin2. 26% 9% Days of Scheduled Annual Maintenance 0 27 1. A reconciliation to GAAP is set forth on Chart 16, and at www.wey
Slide 11: Cellulose Fibers Segment: Pulp Sales and Production
Chart 8 CELLULOSE FIBERS SEGMENT 3rd-Party Sales Volumes and Realizations -- Pulp Production Volumes -- Pulp 600 $1,000 600 $960 $900 Volumes (Thousands of ADMT) Volumes (Thousands of ADMT) $912 $920 550 $895 550 Realizations ($/ADMT) $800 $818 500 $700 500 468 $600 462 460 449 450 436 450 437 438 4
Slide 12: Real Estate Segment
Chart 9 REAL ESTATE SEGMENT REAL ESTATE ($ Millions) 2011 Q4 2012 Q1 Total Revenues $276 $137 Contribution (Charge) to Pre-Tax Earnings $41 ($8) EBITDA1. $53 ($4) Operating Margin2. 15% (6%) 1. A reconciliation to GAAP is set forth on Chart 16, and at www.weyerhaeuser.com. 2. Contribution to Pre-Tax
Slide 13: Single Family Homebuilding
Chart 10 SINGLE FAMILY HOMEBUILDING Average Closing Price and Home Closings and Cancellation Rate Gross Margin Excluding Impairments 1,200 20% 35% $450 $419 $403 $398 18% $391 Cancellation Rate (%) 950 15% 30% $400 Price ($ Thousands) 17% $376 Gross Margin (%) Homes Closed (Units) 16% 700 12% 10% 25
Slide 14: Outlook: 2012 Q2
OUTLOOK: 2012 Q2 Chart 11 SEGMENT COMMENTS • Flat export volumes and slightly lower export realizations • Slightly improved domestic log prices in the West, and flat pricing in the South Timberlands • Increased fee harvest volume • Increased fuel costs, and seasonally higher silvicultural expenses •
Slide 15: Financial Items
FINANCIAL ITEMS Chart 12 Cash from Operations 200 $147 $114 $117 ($ Millions) 2011 Q4 2012 Q1 100 ($ Millions) Ending Cash Balance $953 $728 0 ($60) ($87) Long-Term Debt $4,478 $4,476 (100) (200) Q1 Q2 Q3 Q4 Q1 2011 2012 Scheduled Debt Maturities Capital Expenditures as of March 31, 2012 500 150 $40
Slide 16: Unallocated Items
Chart 13 UNALLOCATED ITEMS1. UNALLOCATED ITEMS ($ Millions) 2011 Q4 2012 Q1 Unallocated Corporate Function Expenses ($8) ($6) Unallocated Share-Based Compensation (6) (5) Unallocated Pension & Postretirement Costs (5) (7) Foreign Exchange Gains 4 6 Other (7) 2 Charge to Pre-Tax Earnings Before Speci
Slide 17: Appendix
Appendix 17 | 04/27/2012
Slide 18: Earnings Summary
EARNINGS SUMMARY Chart 14 $ Millions EXCEPT EPS 2011 2012 Contribution to Pre-Tax Earnings Before Special Items Q1 Q2 Q3 Q4 Q1 Timberlands $89 $112 $62 $70 $71 Wood Products (36) (53) (43) (61) (22) Cellulose Fibers 86 80 135 134 44 Real Estate (1) 8 10 41 (8) Unallocated Items (43) (11) (16) (22) (
Slide 19: Earnings Per Share Reconciliation
Chart 15 EARNINGS PER SHARE RECONCILIATION 2011 2012 Q1 Q2 Q3 Q4 Q1 Diluted EPS Before Special Items $0.00 $0.06 $0.12 $0.14 $0.02 Special Items: Gain on Postretirement Plan Amendment -- -- -- -- 0.06 Income Tax Adjustments and Credits -- -- 0.15 -- 0.02 Closures, Restructuring, Impairments, -- -- (
Slide 20: EBITDA Reconciliation
Chart 16 EBITDA RECONCILIATION $ Millions 2011 Q4 2012 Q1 Wood Cellulose Real Unallocated Wood Cellulose Real Unallocated Timberlands Products Fibers Estate Items Total Timberlands Products Fibers Estate Items Total EBITDA Excluding Special $104 ($26) $170 $53 ($22) $279 $105 $11 $82 ($4) ($15) $179