Weyerhaeuser to Acquire Timberlands in Southwest Alabama
Key attributes include:
- Strategically located in one of the strongest inland sawlog and fiber markets in the
U.S.South, with a deep and expanding base of customers and future export opportunities
- Fee simple ownership, highly integrated with existing
- Excellent operability, with significant all-weather logging access and well-developed road network
- Well-stocked timber inventory, including 76-percent plantation acreage with average age of 14 years, and an opportunity for increased productivity over time
- Immediate and sustained cash flow, with anticipated 10-year average Adjusted EBITDA of approximately
"This transaction is a great opportunity to enhance our portfolio by acquiring high-quality, well-managed timberlands with low operating risk," said Devin W. Stockfish, president and chief executive officer. "These timberlands are located in favorable markets and well-integrated with our existing supply chain, and we have strong relationships with a diverse and reliable set of customers in the area. We expect these timberlands to drive long-term value for our company."
NON-GAAP FINANCIAL MEASURES
This news release references Adjusted EBITDA, which is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. We have not provided a reconciliation of this forward-looking non-GAAP financial measure to the most comparable GAAP measure because Adjusted EBITDA excludes the impact of certain items described above and management cannot estimate the impact these items will have on Adjusted EBITDA without unreasonable effort. We believe that the probable significance of providing this forward-looking non-GAAP financial measure without a reconciliation to net income is that investors and analysts will have certain information that we believe is useful and meaningful regarding the acquisition, but they will not have that information on a GAAP basis. As a result, investors and analysts may be unable to accurately compare the expected impact of the acquisition to our historical results or the results or expected results of other companies that may have treated such matters differently. Management believes that, given the inherent uncertainty of forward-looking statements, investors and analysts will be able to understand and appropriately take into account the limitations in the information we have provided. Investors are cautioned that we cannot predict the occurrence, timing or amount of all non-GAAP items that we exclude from Adjusted EBITDA. Accordingly, the actual effect of these items, when determined, could potentially be significant to the calculation of Adjusted EBITDA over the medium-term.
This news release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 including, without limitation, with respect to the company's expectations concerning the occurrence, timing, tax implications and expected financial contributions and economic results of the closing of its acquisition of certain
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