Crown Pacific Partners Reports 1Q01 Loss, Provides Second Quarter 2001 Outlook; Names Gary N. Cremer Vice President of Resources

Apr 17, 2001, 01:00 ET from Crown Pacific Partners, L.P.

    PORTLAND, Ore., April 17 /PRNewswire/ -- Crown Pacific Partners, L.P.
 (NYSE:   CRO), a leading integrated forest products company, today announced its
 financial results for the first quarter of 2001 and its outlook for the second
 quarter of 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000224/CROWN )
     Crown Pacific reported a first quarter 2001 loss of $13.0 million, or
 ($0.42) per unit, compared to net income of $8.3 million, or $0.27 per unit,
 for the same quarter in 2000. Revenue was $138.8 million, compared to
 $231.7 million for the same 2000 period. Operating income for the
 first quarter was $3.0 million, compared to $22.2 million for the first
 quarter of 2000.
     "Although depressed markets continue, we have aggressively pursued
 maximizing production efficiencies," said Crown Pacific president and chief
 executive officer Peter W. Stott. "By reducing the Partnership's expenses,
 curtailing production where prudent and conserving our asset base, we are
 navigating through difficult markets and positioning the Partnership for a
 market rebound."
     The Partnership also announced that it has reached agreement in principle
 with its bank group to amend its loan agreement to allow the Partnership to
 continue its strategy of preserving its timber assets until market conditions
 improve. "We are pleased to have the flexibility to meet our operating cash
 flow needs without compromising our long-term asset values," said Mr. Stott.
     The Partnership reiterated its January 2001 announcement that a
 significant improvement in both log and lumber markets from current levels is
 necessary before considering a resumption of the Partnership's distribution to
 Unitholders.
     It was also announced that Gary N. Cremer has been promoted to Vice
 President of Resources. Mr. Cremer joined Crown Pacific in 1993 as a resource
 manager of the Montana Division, and has since been fee lands manager, and
 land and timber manager for the Oregon Division. Mr. Cremer has more than
 29 years of experience in timberland management, procurement and acquisitions.
 Prior to working in the wood products industry, he held the positions of
 service forester, forest practices, and senior forester for the State of Idaho
 Department of Forestry. Mr. Cremer will be assuming the responsibilities of
 Mr. W. Ray Jones who left the Partnership.
 
     Segment Results
 
     Timberlands --
     Revenues from this segment were $22.6 million in the first quarter of
 2001, compared to $35.0 million during the same period last year.
 First quarter operating income was $5.7 million, compared to $18.4 million in
 2000. These results primarily reflect the impact of lower log realizations and
 the Partnership's efforts to reduce the harvest of its fee timber until log
 and lumber prices improve, partially offset by increased property sales
 income.
 
     Manufacturing/Sawmills --
     The manufacturing segment reported revenues of $31.9 million in the
 first quarter of 2001, down from $67.9 million for the same quarter in 2000.
 The segment reported an operating loss of $2.1 million, compared to operating
 income of $5.0 million last year. The lower results reflect the impact of
 lower sales volumes and pricing. During the first quarter, the Partnership
 completed a new planer mill at its Gilchrist, Oregon, facility, completing a
 major technology investment in the facility that was initiated in mid 2000.
     "This highly efficient facility produced positive cash flow while
 protecting production jobs even in a difficult marketplace," said Mr. Stott.
 "Our Gilchrist mill has already exceeded productivity and output expectations,
 and it has clearly enhanced our ability to process both large and small logs."
 
     Wholesale/Marketing Operations --
     Revenues for this segment were $84.2 million in the first quarter 2001,
 compared to $125.7 million last year. Operating income was $3.0 million,
 compared to $4.6 million in 2000. The lower current results primarily reflect
 the impact of lower building product prices.
 
     2Q01 Operating Outlook
 
     Based upon current conditions, the Partnership expects to report a
 second quarter 2001 loss in the range of ($0.22) to ($0.32) per unit and its
 outlook for the full year remains unchanged in the range of ($0.50) to ($1.00)
 per unit. However, the Partnership believes it will continue to produce
 positive cash flow.
 
     Timberlands --
     Fee harvest volume is expected to decline due to seasonal reasons during
 the second quarter of 2001 but overall log sales realizations are expected to
 slightly improve during the same period. Combined with cost reductions and a
 planned increase in property sales, segment profit during the second quarter
 of 2001 is expected to increase from first quarter of 2001 levels.
 
     Manufacturing/Sawmills --
     Overall shipment volume is expected to increase due to production
 increases at three Partnership sawmills. Average sale realizations should be
 modestly higher during the second quarter of 2001 compared to the
 first quarter due to price improvement that occurred in lumber markets during
 March and early April. Given these positive factors, the manufacturing segment
 results are expected to improve from first quarter 2001 levels during the
 period and be much closer to break even.
     With regard to the expiration of the Softwood Lumber Agreement on
 March 31, 2001, the company is following carefully the progress of trade
 negotiations between Canada and the United States. "We support a fair and
 balanced approach that fosters both a healthy market for our products and a
 healthy environment in both countries," said Mr. Stott. "To reduce price
 volatility and uncertainty in the marketplace, we hope that a satisfactory
 agreement can be reached as soon as possible," he added.
 
     Wholesale/Marketing Operations --
     Seasonally stronger demand, improved building product pricing and modest
 cost reductions are expected to drive better sequential operating results for
 the Wholesale/Marketing segment during the second quarter of 2001.
 
     About Crown Pacific
     Crown Pacific Partners, L.P. is a leading integrated forest products
 company. The Partnership owns and manages approximately 800,000 acres of prime
 timberland, and uses modern forest practices to balance growth with
 environmental protection. Its six highly efficient mills in Oregon, Washington
 and Idaho are capable of producing more than 600 million board feet of lumber
 annually for domestic and export markets. Crown Pacific's strategic network of
 marketing and sales offices in the West provide cost-effective product
 distribution, and have made the Partnership a market leader in several of the
 nation's fastest growing housing markets.
     Further details and discussion of the Partnership's operating performance
 and outlook, as well as copies of Partnership news releases, may be obtained
 from Crown Pacific's web site at www.crownpacificpartners.com or by calling
 the Partnership directly at 888-NYSE CRO (697-3276).
 
     Forward-Looking Statements
     Information contained in all sections of this release includes
 forward-looking statements including statements regarding the Partnership's
 expectations, hopes, beliefs, intentions or strategies regarding the future
 that are not purely historical, but are based on assumptions that in the
 future may prove not to be accurate. These assumptions include, harvest
 volumes, species mix, prices for logs and lumber, demand for housing and
 levels and amounts received for stumpage and property sales. Crown Pacific
 Partners, L.P.'s business and prospects are subject to a number of risks,
 including the volatility of timber and lumber prices, factors limiting
 harvesting of timber including contractual obligations, governmental
 restrictions, weather and access limitations -- as well as the substantial
 capital expenditures required to supply its operations.
     Additional factors that could affect future performance include
 environmental risks, operating risks normally associated with the timber
 industry, competition, government regulations and policies, and economic
 changes in the regions where the Partnership's products or substitute products
 are sold, including Southeast Asia and Japan. Other risk factors include the
 increase in the value of the U.S. dollar against foreign currencies, and the
 ability of the partnership to implement its business strategy. These and other
 risks are described in the partnership's registration statements and reports
 filed from time to time on forms 10-K, 8-K, and 10-Q and reports to
 unitholders, which are available from the Partnership or the United States
 Securities and Exchange Commission.
 
 
                            Crown Pacific Partners, L.P.
                          Consolidated Statement of Income
                   (In thousands, except unit and per unit data)
                                    (Unaudited)
 
                                                For The Quarter Ended
                                                       March 31,
                                                  2001          2000
 
     Revenues                                   $138,819       $231,723
 
     Operating costs:
       Cost of products sold                     126,387        198,071
       Selling, general and
        administrative expenses                    9,388         11,445
 
     Operating income                              3,044         22,207
 
     Interest expense                             15,914         14,126
     Amortization of debt issuance costs             232            255
     Other income net                               (123)          (437)
 
     Net (loss) income                          $(12,979)        $8,263
 
     Net (loss) income per unit                   $(0.42)         $0.27
 
     Weighted average units outstanding       30,505,095     30,383,678
 
     Cash flow*                                  $14,458        $37,450
 
     *Cash flow is defined as EBITDDA or earnings before interest, income
 taxes, depreciation, depletion, and amortization.  EBITDDA is provided because
 management believes EBITDDA provides useful information for evaluating the
 Company's ability to service debt and support its cash distributions to
 unitholders.
 
 
                            Crown Pacific Partners, L.P.
                             Consolidated Balance Sheet
                          (In thousands, except unit data)
 
                                       Assets
 
                                                March 31,    December 31,
                                                  2001           2000
                                               (unaudited)
 
     Current assets:
       Cash and cash equivalents                  $5,866        $14,537
       Accounts receivable                       107,544        113,560
       Notes receivable                            4,308          4,502
       Inventories                                61,258         58,560
       Deposits on timber cutting contracts        2,495          2,811
       Prepaid and other current assets            1,346          1,491
 
         Total current assets                    182,817        195,461
     Property, plant and equipment, net           80,140         79,162
     Timber, timberlands and roads, net          626,176        633,926
     Intangible assets, net                       34,965         34,182
     Other assets                                 11,812         12,448
 
         Total assets                           $935,910       $955,179
 
                         Liabilities and Partners' Capital
 
     Current liabilities:
       Notes payable                             $38,000        $32,000
       Accounts payable                           40,634         50,683
       Accrued expenses                           14,878         20,315
       Accrued interest                           13,962         10,711
       Current portion of long-term debt             169            166
 
         Total current liabilities               107,643        113,875
     Long-term debt                              687,872        688,965
     Other non-current liabilities                   719            729
                                                 796,234        803,569
 
     Commitments and contingent liabilities
 
     Partners' capital:
       General partners                              109            194
       Limited partners (30,527,030 and
        30,410,906 units outstanding at
        March 31, 2001 and
        December 31, 2000,
        respectively                             139,567        151,416
         Total partners' capital                 139,676        151,610
 
         Total liabilities and
          partners' capital                     $935,910       $955,179
 
 
                            Crown Pacific Partners, L.P.
                        Consolidated Statement of Cash Flows
                                   (In thousands)
                                    (Unaudited)
 
                                                 For The Quarter Ended
                                                       March 31,
                                                 2001            2000
 
     Cash flows from operating activities:
       Net (loss) income                        $(12,979)        $8,263
       Adjustments to reconcile net (loss)
        income to net cash provided
        by operating activities:
         Depletion, depreciation
          and amortization                        11,523         15,061
         Gain on sale of property                 (4,416)          (605)
         Other                                        --             --
       Net change in current assets
        and current liabilities,
        net of the effects of the
        business combination:
         Accounts and notes receivable             6,218        (16,374)
         Inventories                              (2,698)        (6,791)
         Deposits on timber
          cutting contracts                          316            (57)
         Prepaid and other
          current assets                              69            259
         Accounts payable and
          accrued expenses                       (12,235)         2,808
     Net cash (used) provided by
      operating activities                       (14,202)         2,564
 
     Cash flows from investing activities:
       Additions to timberlands                   (2,340)       (79,218)
       Additions to timber cutting rights           (397)        (3,343)
       Additions to equipment                     (3,555)       (12,224)
       Proceeds from sales of property             6,434            439
       Advance proceeds on
        future asset sale                             --          4,200
       Principal payments received on notes          444            586
       Purchase of businesses                         --         (3,511)
       Other investing activities                 (1,000)          (960)
     Net cash used by
      investing activities                          (414)       (94,031)
 
     Cash flows from financing activities:
       Net increase in short-term
        borrowings                                 6,000         28,000
       Proceeds from issuance
        of long-term debt                             --         84,444
       Repayments of long-term debt               (1,090)          (729)
       Contributions of capital                    1,045            980
       Distributions to partners                      --        (17,481)
       Other financing activities                    (10)           276
     Net cash provided by
      financing activities                         5,945         95,490
 
     Net (decrease) increase in
      cash and cash equivalents                   (8,671)         4,023
     Cash and cash equivalents
      at beginning of period                      14,537         21,616
 
     Cash and cash equivalents
      at end of period                            $5,866        $25,639
 
 
                            Crown Pacific Partners, L.P.
                          Supplemental Segment Information
                                   (In thousands)
                                    (Unaudited)
 
                                            For The Quarter Ended March 31,
                                                  2001           2000
     Business Segment Net Revenues
       Timberlands:
       Trade                                     $22,598        $34,996
       Intersegment                               24,887         63,434
                                                  47,485         98,430
       Manufacturing:
       Trade                                      31,864         67,935
       Intersegment                                4,258          3,682
                                                  36,122         71,617
       Wholesale Marketing:
       Trade                                      84,156        125,697
       Intersegment                                5,974         11,980
                                                  90,130        137,677
       Corporate and Other:
       Trade                                         201          3,095
       Intersegment                                  322            815
                                                     523          3,910
       Total revenues                            174,260        311,634
       Elimination of intersegment
        revenues                                 (35,441)       (79,911)
       Total                                    $138,819       $231,723
 
     Business Operating (loss) Income
       Timberlands                                $5,685        $18,375
       Manufacturing                              (2,124)         5,019
       Wholesale Marketing                         3,039          4,630
       Corporate and Other                        (3,556)        (5,817)
       Operating income                           $3,044        $22,207
 
 
     Crown Pacific
     Selected Statistics
 
                            1st Qtr  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr   YTD
                             2001     2000     2000     2000     2000     2000
     Sales Returns
      ($/MBF) - Lumber
         Oregon              $287     $608     $554     $456     $384     $517
         Inland               276      379      338      293      271      331
         Washington           250      319      293      250      251      281
         Total Sales
          Returns             272      433      382      307      305      368
 
     Sales Volumes (MBF)
      - Lumber
         Oregon -
          External         36,378   46,153   36,496   15,971   33,174  131,794
         Oregon -
          Internal          1,756      268      540      635    1,621    3,064
         Oregon - Total    38,134   46,421   37,036   16,606   34,795  134,858
 
         Inland -
          External         35,022   62,865   64,925   38,809   26,853  193,452
         Inland -
          Internal          5,883    6,045    6,263    5,983    2,832   21,123
         Inland - Total    40,905   68,910   71,188   44,792   29,685  214,575
 
         Washington -
          External         29,733   35,502   33,193   31,560   30,384  130,639
         Washington -
          Internal          2,337    2,880    2,819    1,129    2,044    8,872
         Washington -
          Total            32,070   38,382   36,012   32,689   32,428  139,511
 
         Total Sales
          Volumes         111,109  153,713  144,236   94,087   96,908  488,944
 
     Non-fee and
      Purchased Logs
      (MBF)
         Oregon            21,602   18,294   23,494    3,499   26,771   72,058
         Inland             5,738   17,769   26,754   17,462   14,912   76,897
         Washington         5,612   11,278    9,941    3,147    6,729   31,095
           Total           32,952   47,341   60,189   24,108   48,412  180,050
 
     Fee Production (MBF)
         Oregon            35,439   18,406   29,647    1,118    3,602   52,773
         Inland            21,066   56,246   24,629  102,651   55,810  239,336
         Hamilton           9,491   11,947   13,924   11,008   31,820   68,699
         Olympic           15,928   24,599   18,240   13,380   15,253   71,472
           Total           81,924  111,198   86,440  128,157  106,485  432,280
 
 
     Crown Pacific
     Selected Statistics
 
                            1st Qtr  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr   YTD
                             2001     2000     2000     2000     2000     2000
     Sales Returns
      ($/MBF) - Logs
         Oregon -
          External           $154     $500     $490     $440     $400     $479
         Oregon -
          Internal            369      567      521      477      402      570
         Inland -
          External *          421      292      350      249      253      264
         Inland -
          Internal            346      470      454      395      379      441
         Hamilton -
          Export              646      708      671      652      609      655
         Hamilton -
          Domestic -
          External *          434      507      400      614      445      468
         Hamilton -
          Domestic -
          Internal            353      464      444      415      354      423
         Olympic - Export     392      574      539      662      500      575
         Olympic -
          Domestic -
          External *          386      468      460      471      383      447
         Olympic -
          Domestic -
          Internal            408      483      484      418      436      461
 
         Washington
          Export -
          Weighted
          Average             589      657      623      655      590      632
         Domestic -
          Weighted
          Average             266      376      430      286      328      339
         Internal -
          Weighted
          Average             367      506      483      413      396      489
         Total - Weighted
          Average             330      461      466      320      364      417
 
     Sales Volumes (MBF)
      - Logs
         Oregon -
          External*        25,031    6,684   16,201      234      183   23,302
         Oregon -
          Internal         29,020   45,510   36,025    4,384   28,802  114,721
         Inland -
          External *        3,842   42,790   11,785  101,858   47,542  203,975
         Inland -
          Internal         23,856   60,728   39,642   18,696   23,908  142,974
         Hamilton -
          Export              905    2,069    1,040    2,164    2,605    7,878
         Hamilton -
          Domestic -
          External *        7,988   10,347   12,036    7,134   26,017   55,534
         Hamilton -
          Domestic -
          Internal          3,000    5,193    4,928    2,074    4,236   16,431
         Olympic - Export     260    1,283      588      736      546    3,153
         Olympic -
          Domestic -
          External *        7,325   15,326   11,086    7,562    9,918   43,892
         Olympic -
          Domestic -
          Internal         11,574   13,758   12,386    7,483   10,860   44,487
 
         Washington
          Export - Total    1,165    3,352    1,628    2,900    3,151   11,031
         Domestic - Total  44,186   75,147   51,108  116,788   83,660  326,703
         Internal - Total  67,450  125,189   92,981   32,637   67,806  318,613
         Total Sales
          Volume          112,801  203,688  145,717  152,325  154,617  656,347
 
         *Amounts adjusted to include stumpage sales
 
     Crown Pacific
     Selected Statistics
 
                              1st Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr    YTD
                                2001    2000    2000    2000    2000    2000
       Mill Log Usage (MBF)
         Oregon                25,996  35,596  29,233  10,253  23,853   98,935
         Inland                23,453  40,893  38,628  24,168  16,112  119,801
         Washington            14,509  16,227  15,339  14,333  14,031   59,930
 
           Total               63,958  92,716  83,200  48,754  53,996  278,666
 
       Wood Chips - $/BDU
         Oregon Sawmills          $70     $54     $55     $56     $55      $55
         Inland                    63      54      51      58      63       58
         Washington                92      98      98      98     100       98
 
         Wood Chip - Weighted
          Average                 $74     $68     $67     $75     $75      $71
 
       Wood Chips - BDUs
         Oregon Sawmills       17,073  12,564  11,740   5,249  13,745   43,298
         Inland                16,550  26,940  27,786  17,378  12,976   85,080
         Washington            15,031  18,025  18,806  16,516  16,436   69,783
 
         Total                 48,654  57,529  58,332  39,143  43,157  198,161
 
 

SOURCE Crown Pacific Partners, L.P.
    PORTLAND, Ore., April 17 /PRNewswire/ -- Crown Pacific Partners, L.P.
 (NYSE:   CRO), a leading integrated forest products company, today announced its
 financial results for the first quarter of 2001 and its outlook for the second
 quarter of 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000224/CROWN )
     Crown Pacific reported a first quarter 2001 loss of $13.0 million, or
 ($0.42) per unit, compared to net income of $8.3 million, or $0.27 per unit,
 for the same quarter in 2000. Revenue was $138.8 million, compared to
 $231.7 million for the same 2000 period. Operating income for the
 first quarter was $3.0 million, compared to $22.2 million for the first
 quarter of 2000.
     "Although depressed markets continue, we have aggressively pursued
 maximizing production efficiencies," said Crown Pacific president and chief
 executive officer Peter W. Stott. "By reducing the Partnership's expenses,
 curtailing production where prudent and conserving our asset base, we are
 navigating through difficult markets and positioning the Partnership for a
 market rebound."
     The Partnership also announced that it has reached agreement in principle
 with its bank group to amend its loan agreement to allow the Partnership to
 continue its strategy of preserving its timber assets until market conditions
 improve. "We are pleased to have the flexibility to meet our operating cash
 flow needs without compromising our long-term asset values," said Mr. Stott.
     The Partnership reiterated its January 2001 announcement that a
 significant improvement in both log and lumber markets from current levels is
 necessary before considering a resumption of the Partnership's distribution to
 Unitholders.
     It was also announced that Gary N. Cremer has been promoted to Vice
 President of Resources. Mr. Cremer joined Crown Pacific in 1993 as a resource
 manager of the Montana Division, and has since been fee lands manager, and
 land and timber manager for the Oregon Division. Mr. Cremer has more than
 29 years of experience in timberland management, procurement and acquisitions.
 Prior to working in the wood products industry, he held the positions of
 service forester, forest practices, and senior forester for the State of Idaho
 Department of Forestry. Mr. Cremer will be assuming the responsibilities of
 Mr. W. Ray Jones who left the Partnership.
 
     Segment Results
 
     Timberlands --
     Revenues from this segment were $22.6 million in the first quarter of
 2001, compared to $35.0 million during the same period last year.
 First quarter operating income was $5.7 million, compared to $18.4 million in
 2000. These results primarily reflect the impact of lower log realizations and
 the Partnership's efforts to reduce the harvest of its fee timber until log
 and lumber prices improve, partially offset by increased property sales
 income.
 
     Manufacturing/Sawmills --
     The manufacturing segment reported revenues of $31.9 million in the
 first quarter of 2001, down from $67.9 million for the same quarter in 2000.
 The segment reported an operating loss of $2.1 million, compared to operating
 income of $5.0 million last year. The lower results reflect the impact of
 lower sales volumes and pricing. During the first quarter, the Partnership
 completed a new planer mill at its Gilchrist, Oregon, facility, completing a
 major technology investment in the facility that was initiated in mid 2000.
     "This highly efficient facility produced positive cash flow while
 protecting production jobs even in a difficult marketplace," said Mr. Stott.
 "Our Gilchrist mill has already exceeded productivity and output expectations,
 and it has clearly enhanced our ability to process both large and small logs."
 
     Wholesale/Marketing Operations --
     Revenues for this segment were $84.2 million in the first quarter 2001,
 compared to $125.7 million last year. Operating income was $3.0 million,
 compared to $4.6 million in 2000. The lower current results primarily reflect
 the impact of lower building product prices.
 
     2Q01 Operating Outlook
 
     Based upon current conditions, the Partnership expects to report a
 second quarter 2001 loss in the range of ($0.22) to ($0.32) per unit and its
 outlook for the full year remains unchanged in the range of ($0.50) to ($1.00)
 per unit. However, the Partnership believes it will continue to produce
 positive cash flow.
 
     Timberlands --
     Fee harvest volume is expected to decline due to seasonal reasons during
 the second quarter of 2001 but overall log sales realizations are expected to
 slightly improve during the same period. Combined with cost reductions and a
 planned increase in property sales, segment profit during the second quarter
 of 2001 is expected to increase from first quarter of 2001 levels.
 
     Manufacturing/Sawmills --
     Overall shipment volume is expected to increase due to production
 increases at three Partnership sawmills. Average sale realizations should be
 modestly higher during the second quarter of 2001 compared to the
 first quarter due to price improvement that occurred in lumber markets during
 March and early April. Given these positive factors, the manufacturing segment
 results are expected to improve from first quarter 2001 levels during the
 period and be much closer to break even.
     With regard to the expiration of the Softwood Lumber Agreement on
 March 31, 2001, the company is following carefully the progress of trade
 negotiations between Canada and the United States. "We support a fair and
 balanced approach that fosters both a healthy market for our products and a
 healthy environment in both countries," said Mr. Stott. "To reduce price
 volatility and uncertainty in the marketplace, we hope that a satisfactory
 agreement can be reached as soon as possible," he added.
 
     Wholesale/Marketing Operations --
     Seasonally stronger demand, improved building product pricing and modest
 cost reductions are expected to drive better sequential operating results for
 the Wholesale/Marketing segment during the second quarter of 2001.
 
     About Crown Pacific
     Crown Pacific Partners, L.P. is a leading integrated forest products
 company. The Partnership owns and manages approximately 800,000 acres of prime
 timberland, and uses modern forest practices to balance growth with
 environmental protection. Its six highly efficient mills in Oregon, Washington
 and Idaho are capable of producing more than 600 million board feet of lumber
 annually for domestic and export markets. Crown Pacific's strategic network of
 marketing and sales offices in the West provide cost-effective product
 distribution, and have made the Partnership a market leader in several of the
 nation's fastest growing housing markets.
     Further details and discussion of the Partnership's operating performance
 and outlook, as well as copies of Partnership news releases, may be obtained
 from Crown Pacific's web site at www.crownpacificpartners.com or by calling
 the Partnership directly at 888-NYSE CRO (697-3276).
 
     Forward-Looking Statements
     Information contained in all sections of this release includes
 forward-looking statements including statements regarding the Partnership's
 expectations, hopes, beliefs, intentions or strategies regarding the future
 that are not purely historical, but are based on assumptions that in the
 future may prove not to be accurate. These assumptions include, harvest
 volumes, species mix, prices for logs and lumber, demand for housing and
 levels and amounts received for stumpage and property sales. Crown Pacific
 Partners, L.P.'s business and prospects are subject to a number of risks,
 including the volatility of timber and lumber prices, factors limiting
 harvesting of timber including contractual obligations, governmental
 restrictions, weather and access limitations -- as well as the substantial
 capital expenditures required to supply its operations.
     Additional factors that could affect future performance include
 environmental risks, operating risks normally associated with the timber
 industry, competition, government regulations and policies, and economic
 changes in the regions where the Partnership's products or substitute products
 are sold, including Southeast Asia and Japan. Other risk factors include the
 increase in the value of the U.S. dollar against foreign currencies, and the
 ability of the partnership to implement its business strategy. These and other
 risks are described in the partnership's registration statements and reports
 filed from time to time on forms 10-K, 8-K, and 10-Q and reports to
 unitholders, which are available from the Partnership or the United States
 Securities and Exchange Commission.
 
 
                            Crown Pacific Partners, L.P.
                          Consolidated Statement of Income
                   (In thousands, except unit and per unit data)
                                    (Unaudited)
 
                                                For The Quarter Ended
                                                       March 31,
                                                  2001          2000
 
     Revenues                                   $138,819       $231,723
 
     Operating costs:
       Cost of products sold                     126,387        198,071
       Selling, general and
        administrative expenses                    9,388         11,445
 
     Operating income                              3,044         22,207
 
     Interest expense                             15,914         14,126
     Amortization of debt issuance costs             232            255
     Other income net                               (123)          (437)
 
     Net (loss) income                          $(12,979)        $8,263
 
     Net (loss) income per unit                   $(0.42)         $0.27
 
     Weighted average units outstanding       30,505,095     30,383,678
 
     Cash flow*                                  $14,458        $37,450
 
     *Cash flow is defined as EBITDDA or earnings before interest, income
 taxes, depreciation, depletion, and amortization.  EBITDDA is provided because
 management believes EBITDDA provides useful information for evaluating the
 Company's ability to service debt and support its cash distributions to
 unitholders.
 
 
                            Crown Pacific Partners, L.P.
                             Consolidated Balance Sheet
                          (In thousands, except unit data)
 
                                       Assets
 
                                                March 31,    December 31,
                                                  2001           2000
                                               (unaudited)
 
     Current assets:
       Cash and cash equivalents                  $5,866        $14,537
       Accounts receivable                       107,544        113,560
       Notes receivable                            4,308          4,502
       Inventories                                61,258         58,560
       Deposits on timber cutting contracts        2,495          2,811
       Prepaid and other current assets            1,346          1,491
 
         Total current assets                    182,817        195,461
     Property, plant and equipment, net           80,140         79,162
     Timber, timberlands and roads, net          626,176        633,926
     Intangible assets, net                       34,965         34,182
     Other assets                                 11,812         12,448
 
         Total assets                           $935,910       $955,179
 
                         Liabilities and Partners' Capital
 
     Current liabilities:
       Notes payable                             $38,000        $32,000
       Accounts payable                           40,634         50,683
       Accrued expenses                           14,878         20,315
       Accrued interest                           13,962         10,711
       Current portion of long-term debt             169            166
 
         Total current liabilities               107,643        113,875
     Long-term debt                              687,872        688,965
     Other non-current liabilities                   719            729
                                                 796,234        803,569
 
     Commitments and contingent liabilities
 
     Partners' capital:
       General partners                              109            194
       Limited partners (30,527,030 and
        30,410,906 units outstanding at
        March 31, 2001 and
        December 31, 2000,
        respectively                             139,567        151,416
         Total partners' capital                 139,676        151,610
 
         Total liabilities and
          partners' capital                     $935,910       $955,179
 
 
                            Crown Pacific Partners, L.P.
                        Consolidated Statement of Cash Flows
                                   (In thousands)
                                    (Unaudited)
 
                                                 For The Quarter Ended
                                                       March 31,
                                                 2001            2000
 
     Cash flows from operating activities:
       Net (loss) income                        $(12,979)        $8,263
       Adjustments to reconcile net (loss)
        income to net cash provided
        by operating activities:
         Depletion, depreciation
          and amortization                        11,523         15,061
         Gain on sale of property                 (4,416)          (605)
         Other                                        --             --
       Net change in current assets
        and current liabilities,
        net of the effects of the
        business combination:
         Accounts and notes receivable             6,218        (16,374)
         Inventories                              (2,698)        (6,791)
         Deposits on timber
          cutting contracts                          316            (57)
         Prepaid and other
          current assets                              69            259
         Accounts payable and
          accrued expenses                       (12,235)         2,808
     Net cash (used) provided by
      operating activities                       (14,202)         2,564
 
     Cash flows from investing activities:
       Additions to timberlands                   (2,340)       (79,218)
       Additions to timber cutting rights           (397)        (3,343)
       Additions to equipment                     (3,555)       (12,224)
       Proceeds from sales of property             6,434            439
       Advance proceeds on
        future asset sale                             --          4,200
       Principal payments received on notes          444            586
       Purchase of businesses                         --         (3,511)
       Other investing activities                 (1,000)          (960)
     Net cash used by
      investing activities                          (414)       (94,031)
 
     Cash flows from financing activities:
       Net increase in short-term
        borrowings                                 6,000         28,000
       Proceeds from issuance
        of long-term debt                             --         84,444
       Repayments of long-term debt               (1,090)          (729)
       Contributions of capital                    1,045            980
       Distributions to partners                      --        (17,481)
       Other financing activities                    (10)           276
     Net cash provided by
      financing activities                         5,945         95,490
 
     Net (decrease) increase in
      cash and cash equivalents                   (8,671)         4,023
     Cash and cash equivalents
      at beginning of period                      14,537         21,616
 
     Cash and cash equivalents
      at end of period                            $5,866        $25,639
 
 
                            Crown Pacific Partners, L.P.
                          Supplemental Segment Information
                                   (In thousands)
                                    (Unaudited)
 
                                            For The Quarter Ended March 31,
                                                  2001           2000
     Business Segment Net Revenues
       Timberlands:
       Trade                                     $22,598        $34,996
       Intersegment                               24,887         63,434
                                                  47,485         98,430
       Manufacturing:
       Trade                                      31,864         67,935
       Intersegment                                4,258          3,682
                                                  36,122         71,617
       Wholesale Marketing:
       Trade                                      84,156        125,697
       Intersegment                                5,974         11,980
                                                  90,130        137,677
       Corporate and Other:
       Trade                                         201          3,095
       Intersegment                                  322            815
                                                     523          3,910
       Total revenues                            174,260        311,634
       Elimination of intersegment
        revenues                                 (35,441)       (79,911)
       Total                                    $138,819       $231,723
 
     Business Operating (loss) Income
       Timberlands                                $5,685        $18,375
       Manufacturing                              (2,124)         5,019
       Wholesale Marketing                         3,039          4,630
       Corporate and Other                        (3,556)        (5,817)
       Operating income                           $3,044        $22,207
 
 
     Crown Pacific
     Selected Statistics
 
                            1st Qtr  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr   YTD
                             2001     2000     2000     2000     2000     2000
     Sales Returns
      ($/MBF) - Lumber
         Oregon              $287     $608     $554     $456     $384     $517
         Inland               276      379      338      293      271      331
         Washington           250      319      293      250      251      281
         Total Sales
          Returns             272      433      382      307      305      368
 
     Sales Volumes (MBF)
      - Lumber
         Oregon -
          External         36,378   46,153   36,496   15,971   33,174  131,794
         Oregon -
          Internal          1,756      268      540      635    1,621    3,064
         Oregon - Total    38,134   46,421   37,036   16,606   34,795  134,858
 
         Inland -
          External         35,022   62,865   64,925   38,809   26,853  193,452
         Inland -
          Internal          5,883    6,045    6,263    5,983    2,832   21,123
         Inland - Total    40,905   68,910   71,188   44,792   29,685  214,575
 
         Washington -
          External         29,733   35,502   33,193   31,560   30,384  130,639
         Washington -
          Internal          2,337    2,880    2,819    1,129    2,044    8,872
         Washington -
          Total            32,070   38,382   36,012   32,689   32,428  139,511
 
         Total Sales
          Volumes         111,109  153,713  144,236   94,087   96,908  488,944
 
     Non-fee and
      Purchased Logs
      (MBF)
         Oregon            21,602   18,294   23,494    3,499   26,771   72,058
         Inland             5,738   17,769   26,754   17,462   14,912   76,897
         Washington         5,612   11,278    9,941    3,147    6,729   31,095
           Total           32,952   47,341   60,189   24,108   48,412  180,050
 
     Fee Production (MBF)
         Oregon            35,439   18,406   29,647    1,118    3,602   52,773
         Inland            21,066   56,246   24,629  102,651   55,810  239,336
         Hamilton           9,491   11,947   13,924   11,008   31,820   68,699
         Olympic           15,928   24,599   18,240   13,380   15,253   71,472
           Total           81,924  111,198   86,440  128,157  106,485  432,280
 
 
     Crown Pacific
     Selected Statistics
 
                            1st Qtr  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr   YTD
                             2001     2000     2000     2000     2000     2000
     Sales Returns
      ($/MBF) - Logs
         Oregon -
          External           $154     $500     $490     $440     $400     $479
         Oregon -
          Internal            369      567      521      477      402      570
         Inland -
          External *          421      292      350      249      253      264
         Inland -
          Internal            346      470      454      395      379      441
         Hamilton -
          Export              646      708      671      652      609      655
         Hamilton -
          Domestic -
          External *          434      507      400      614      445      468
         Hamilton -
          Domestic -
          Internal            353      464      444      415      354      423
         Olympic - Export     392      574      539      662      500      575
         Olympic -
          Domestic -
          External *          386      468      460      471      383      447
         Olympic -
          Domestic -
          Internal            408      483      484      418      436      461
 
         Washington
          Export -
          Weighted
          Average             589      657      623      655      590      632
         Domestic -
          Weighted
          Average             266      376      430      286      328      339
         Internal -
          Weighted
          Average             367      506      483      413      396      489
         Total - Weighted
          Average             330      461      466      320      364      417
 
     Sales Volumes (MBF)
      - Logs
         Oregon -
          External*        25,031    6,684   16,201      234      183   23,302
         Oregon -
          Internal         29,020   45,510   36,025    4,384   28,802  114,721
         Inland -
          External *        3,842   42,790   11,785  101,858   47,542  203,975
         Inland -
          Internal         23,856   60,728   39,642   18,696   23,908  142,974
         Hamilton -
          Export              905    2,069    1,040    2,164    2,605    7,878
         Hamilton -
          Domestic -
          External *        7,988   10,347   12,036    7,134   26,017   55,534
         Hamilton -
          Domestic -
          Internal          3,000    5,193    4,928    2,074    4,236   16,431
         Olympic - Export     260    1,283      588      736      546    3,153
         Olympic -
          Domestic -
          External *        7,325   15,326   11,086    7,562    9,918   43,892
         Olympic -
          Domestic -
          Internal         11,574   13,758   12,386    7,483   10,860   44,487
 
         Washington
          Export - Total    1,165    3,352    1,628    2,900    3,151   11,031
         Domestic - Total  44,186   75,147   51,108  116,788   83,660  326,703
         Internal - Total  67,450  125,189   92,981   32,637   67,806  318,613
         Total Sales
          Volume          112,801  203,688  145,717  152,325  154,617  656,347
 
         *Amounts adjusted to include stumpage sales
 
     Crown Pacific
     Selected Statistics
 
                              1st Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr    YTD
                                2001    2000    2000    2000    2000    2000
       Mill Log Usage (MBF)
         Oregon                25,996  35,596  29,233  10,253  23,853   98,935
         Inland                23,453  40,893  38,628  24,168  16,112  119,801
         Washington            14,509  16,227  15,339  14,333  14,031   59,930
 
           Total               63,958  92,716  83,200  48,754  53,996  278,666
 
       Wood Chips - $/BDU
         Oregon Sawmills          $70     $54     $55     $56     $55      $55
         Inland                    63      54      51      58      63       58
         Washington                92      98      98      98     100       98
 
         Wood Chip - Weighted
          Average                 $74     $68     $67     $75     $75      $71
 
       Wood Chips - BDUs
         Oregon Sawmills       17,073  12,564  11,740   5,249  13,745   43,298
         Inland                16,550  26,940  27,786  17,378  12,976   85,080
         Washington            15,031  18,025  18,806  16,516  16,436   69,783
 
         Total                 48,654  57,529  58,332  39,143  43,157  198,161
 
 SOURCE  Crown Pacific Partners, L.P.

RELATED LINKS

http://www.crownpacificpartners.com