The Rising Influence of Rising Affluence

[DewDiligence]

PCL reports 4Q13 results and 2014 outlook:

http://finance.yahoo.com/news/plum-creek-reports-results-fourth-210300015.html

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.

…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.

…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.

The outlook for 2014 is generally positive. GAAP EPS (which has almost no relevance for investing purposes—see #msg-95575182) is expected to be $1.30-1.50 for the full year 2014 and $0.12-0.17 for 1Q14 (due to real-estate sales being havilty weighted toward the second half of the year).