PCH - PotlatchDeltic Corporation Reports First Quarter 2023 Results
PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $16.3 million, or $0.20 per diluted share, on revenues of $258.0 million for the quarter ended March 31, 2023. Excluding CatchMark merger-related expenses, adjusted net income was $18.5 million, or $0.23 per diluted share for the first quarter of 2023. Net income was $163.9 million, or $2.35 per diluted share, on revenues of $411.4 million for the quarter ended March 31, 2022. Excluding after tax special items consisting of a non-cash pension settlement charge and a loss on fire damage, adjusted net income was $174.6 million, or $2.50 per diluted share for the first quarter of 2022.
First Quarter 2023 Highlights
- Generated Total Adjusted EBITDDA of $57.7 million and Total Adjusted EBITDDA margin of 22%
- Timberlands set quarterly harvest volume record of 2.1 million tons
- Completed insourcing timberlands management for legacy CatchMark operations
- Maintained strong liquidity position of $625 million as of March 31, 2023
“Our Timberlands and Real Estate businesses had strong operational performance during the quarter, offsetting weakness in Wood Products,” said Eric Cremers, president and chief executive officer. “During the quarter our Timberlands business did an outstanding job and produced our highest quarterly harvest volume on record, and our Real Estate business experienced strong rural real estate sales activity, including a sizable conservation land sale in Alabama. As we head into the spring building season we are encouraged by the recent upward trend in lumber prices and we continue to remain optimistic on long-term housing-related fundamentals that drive demand in our business. Our strong balance sheet and commitment to a disciplined capital allocation strategy position us to continue to grow shareholder value," stated Mr. Cremers.
Financial Highlights
| ($ in millions, except per share data) |
|
|
| Q1 2023 |
|
|
|
|
| Q4 2022 |
|
|
|
|
| Q1 2022 |
|
|
| Revenues |
|
|
| $ |
| 258.0 |
|
|
|
|
| $ |
| 253.1 |
|
|
|
|
| $ |
| 411.4 |
|
|
| Net income |
|
|
| $ |
| 16.3 |
|
|
|
|
| $ |
| 3.8 |
|
|
|
|
| $ |
| 163.9 |
|
|
| Weighted average shares outstanding, diluted (in thousands) |
|
|
|
|
| 80,167 |
|
|
|
|
|
|
| 80,578 |
|
|
|
|
|
|
| 69,623 |
|
|
| Net income per diluted share |
|
|
| $ |
| 0.20 |
|
|
|
|
| $ |
| 0.05 |
|
|
|
|
| $ |
| 2.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income |
|
|
| $ |
| 18.5 |
|
|
|
|
| $ |
| 9.3 |
|
|
|
|
| $ |
| 174.6 |
|
|
| Adjusted Net Income per diluted share |
|
|
| $ |
| 0.23 |
|
|
|
|
| $ |
| 0.12 |
|
|
|
|
| $ |
| 2.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Adjusted EBITDDA |
|
|
| $ |
| 57.7 |
|
|
|
|
| $ |
| 52.3 |
|
|
|
|
| $ |
| 245.6 |
|
|
| Dividends per share 1 |
|
|
| $ |
| 0.45 |
|
|
|
|
| $ |
| 1.40 |
|
|
|
|
| $ |
| 0.44 |
|
|
| Net cash from operations |
|
|
| $ |
| 39.1 |
|
|
|
|
| $ |
| 33.5 |
|
|
|
|
| $ |
| 230.3 |
|
|
| Cash and cash equivalents |
|
|
| $ |
| 325.6 |
|
|
|
|
| $ |
| 343.8 |
|
|
|
|
| $ |
| 470.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. |
Business Performance: Q1 2023 vs. Q4 2022
Timberlands
First Quarter 2023 Highlights
- Timberlands Adjusted EBITDDA decreased $4.0 million from Q4 2022
- Northern sawlog prices decreased 19% primarily due to lower indexed sawlog prices and seasonally heavier sawlogs
- Total harvest of 2.1 million tons exceeded plan driven by favorable harvest conditions
- Southern sawlog prices decreased 3% primarily due to seasonally lower hardwood volumes and pine sawlog prices
- Forest management costs decreased due to seasonally lower activities and insourcing of timberlands management on legacy CatchMark operations
| ($ in millions) |
|
|
| Q1 2023 |
|
|
|
|
| Q4 2022 |
|
|
|
|
| $ Change |
|
|
| Timberlands Revenues |
|
|
| $ |
| 115.2 |
|
|
|
|
| $ |
| 121.9 |
|
|
|
|
| $ |
| (6.7 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands Adjusted EBITDDA |
|
|
| $ |
| 46.6 |
|
|
|
|
| $ |
| 50.6 |
|
|
|
|
| $ |
| (4.0 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wood Products
First Quarter 2023 Highlights
- Wood Products Adjusted EBITDDA decreased $2.4 million from Q4 2022
- Average lumber price decreased 8% to $435 per MBF in Q1 2023
- Lumber production increased in Q1 2023 leading to higher fixed cost absorption
- Log costs decreased primarily due to lower indexed pricing in Idaho
- Increased plywood shipments were partially offset by lower price realizations
| ($ in millions) |
|
|
| Q1 2023 |
|
|
|
|
| Q4 2022 |
|
|
|
|
| $ Change |
|
|
| Wood Products Revenues |
|
|
| $ |
| 152.8 |
|
|
|
|
| $ |
| 156.8 |
|
|
|
|
| $ |
| (4.0 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Wood Products Adjusted EBITDDA |
|
|
| $ |
| — |
|
|
|
|
| $ |
| 2.4 |
|
|
|
|
| $ |
| (2.4 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
First Quarter 2023 Highlights
- Real Estate Adjusted EBITDDA increased $12.3 million from Q4 2022
- Sold 6,939 acres of rural land at an average price of $2,568 / acre
- Sold 24 residential lots at an average price of $116,429 / lot
| ($ in millions) |
|
|
| Q1 2023 |
|
|
|
|
| Q4 2022 |
|
|
|
|
| $ Change |
|
|
| Real Estate Revenues |
|
|
| $ |
| 23.9 |
|
|
|
|
| $ |
| 11.7 |
|
|
|
|
| $ |
| 12.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real Estate Adjusted EBITDDA |
|
|
| $ |
| 19.5 |
|
|
|
|
| $ |
| 7.2 |
|
|
|
|
| $ |
| 12.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP.
Management uses Adjusted EBITDDA to evaluate the performance of the company. This is a non-GAAP measure that represents EBITDDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses.
Adjusted Net Income and Adjusted Net Income Per Diluted Share are non-GAAP measures that represent GAAP net income and GAAP net income per diluted share before certain items that impact the ability of investors, securities analysts and other interested parties to compare the performance of our business, either period-over-period or with other businesses.
Reconciliations to GAAP are set forth in the accompanying schedules.
Conference Call Information
A live conference call and webcast will be held Tuesday, April 25, 2023, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time). Investors may access the webcast at www.potlatchdeltic.com by clicking on the Investors link or by conference call at 1-888-510-2008 for U.S./Canada and 1-646-960-0306 for international callers. Participants will be asked to provide conference I.D. number 7281983. Supplemental materials that will be discussed during the call are available on the website.
A replay of the conference call will be available two hours following the call until May 2, 2023 by calling 1-800-770-2030 for U.S./Canada or 1-647-362-9199 for international callers. Callers must enter conference I.D. number 7281983 to access the replay.
About PotlatchDeltic
PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana. Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com .
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenues, costs and expenses; long-term housing market fundamentals and lumber prices; disciplined capital allocation strategy; and similar matters. Words such as “anticipate,” “expect,” “will,” “intend,” “plan,” “target,” “project,” “believe,” “seek,” “schedule,” “estimate,” “could,” “can,” “may,” and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other “forward-looking” information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic’s control, changes in the U.S. housing market; changes in timberland values; changes in timber harvest levels on the company's lands; changes in timber prices; changes in policy regarding governmental timber sales; availability of logging contractors and shipping capacity; changes in the United States and international economies and effects on our customers and suppliers; changes in interest rates; credit availability and homebuyers’ ability to qualify for mortgages; availability of labor and developable land; changes in the level of construction and remodeling activity; changes in foreign demand; changes in tariffs, quotas and trade agreements involving wood products; currency fluctuation; changes in demand for our products and real estate; changes in production and production capacity in the forest products industry; competitive pricing pressures for our products; unanticipated manufacturing disruptions; disruptions or inefficiencies in our supply chain and/or operations; changes in general and industry-specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; fires at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; the successful execution of the company’s strategic plans; the company’s ability and its contractors’ ability to implement the modernization plan for the Waldo, Arkansas sawmill, the company’s ability to meet expectations; and the other factors described in PotlatchDeltic’s Annual Report on Form 10-K and in the company’s other filings with the SEC. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.
| PotlatchDeltic Corporation |
| Condensed Consolidated Statements of Operations |
| Unaudited |
|
|
|
|
|
|
|
|
| Three Months Ended |
|
|
|
|
| March 31, |
|
|
|
|
| December 31, |
|
|
|
|
|
|
| March 31, |
|
|
| (in thousands, except per share amounts) |
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
|
|
| 2022 |
|
|
| Revenues |
| $ |
| 257,962 |
|
|
|
|
| $ |
| 253,140 |
|
|
|
|
|
|
| $ |
| 411,350 |
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
| 224,350 |
|
|
|
|
|
|
| 214,765 |
|
|
|
|
|
|
|
|
| 179,847 |
|
|
| Selling, general and administrative expenses |
|
|
| 18,230 |
|
|
|
|
|
|
| 20,922 |
|
|
|
|
|
|
|
|
| 16,294 |
|
|
| CatchMark merger-related expenses |
|
|
| 2,209 |
|
|
|
|
|
|
| 1,318 |
|
|
|
|
|
|
|
|
| — |
|
|
| Environmental charge |
|
|
| — |
|
|
|
|
|
|
| 5,550 |
|
|
|
|
|
|
|
|
| — |
|
|
| Loss on fire damage |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
|
|
| 276 |
|
|
|
|
|
|
| 244,789 |
|
|
|
|
|
|
| 242,555 |
|
|
|
|
|
|
|
|
| 196,417 |
|
|
| Operating income |
|
|
| 13,173 |
|
|
|
|
|
|
| 10,585 |
|
|
|
|
|
|
|
|
| 214,933 |
|
|
| Interest expense, net |
|
|
| (199 |
| ) |
|
|
|
|
| (8,807 |
| ) |
|
|
|
|
|
|
| (2,894 |
| ) |
| Pension settlement charge |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
|
|
| (14,165 |
| ) |
| Non-operating pension and other postretirement employee benefit costs |
|
|
| (228 |
| ) |
|
|
|
|
| (2,592 |
| ) |
|
|
|
|
|
|
| (1,929 |
| ) |
| Other |
|
|
| 10 |
|
|
|
|
|
|
| (66 |
| ) |
|
|
|
|
|
|
| — |
|
|
| Income (loss) before income taxes |
|
|
| 12,756 |
|
|
|
|
|
|
| (880 |
| ) |
|
|
|
|
|
|
| 195,945 |
|
|
| Income taxes |
|
|
| 3,504 |
|
|
|
|
|
|
| 4,723 |
|
|
|
|
|
|
|
|
| (32,065 |
| ) |
| Net income |
| $ |
| 16,260 |
|
|
|
|
| $ |
| 3,843 |
|
|
|
|
|
|
| $ |
| 163,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
| $ |
| 0.20 |
|
|
|
|
| $ |
| 0.05 |
|
|
|
|
|
|
| $ |
| 2.36 |
|
|
| Diluted |
| $ |
| 0.20 |
|
|
|
|
| $ |
| 0.05 |
|
|
|
|
|
|
| $ |
| 2.35 |
|
|
| Dividends per share 1 |
| $ |
| 0.45 |
|
|
|
|
| $ |
| 1.40 |
|
|
|
|
|
|
| $ |
| 0.44 |
|
|
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
| 80,027 |
|
|
|
|
|
|
| 80,356 |
|
|
|
|
|
|
|
|
| 69,419 |
|
|
| Diluted |
|
|
| 80,167 |
|
|
|
|
|
|
| 80,578 |
|
|
|
|
|
|
|
|
| 69,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. |
| PotlatchDeltic Corporation |
| Condensed Consolidated Balance Sheets |
| Unaudited |
| (in thousands, except per share amounts) |
|
|
| March 31, |
|
|
|
|
| December 31, |
|
|
| 2023 |
| 2022 |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
| $ |
| 325,632 |
|
|
|
|
| $ |
| 343,809 |
|
|
| Customer receivables, net |
|
|
|
|
| 29,565 |
|
|
|
|
|
|
| 22,813 |
|
|
| Inventories, net |
|
|
|
|
| 66,189 |
|
|
|
|
|
|
| 67,958 |
|
|
| Other current assets |
|
|
|
|
| 44,698 |
|
|
|
|
|
|
| 36,955 |
|
|
| Total current assets |
|
|
|
|
| 466,084 |
|
|
|
|
|
|
| 471,535 |
|
|
| Property, plant and equipment, net |
|
|
|
|
| 312,791 |
|
|
|
|
|
|
| 318,184 |
|
|
| Investment in real estate held for development and sale |
|
|
|
|
| 54,945 |
|
|
|
|
|
|
| 55,490 |
|
|
| Timber and timberlands, net |
|
|
|
|
| 2,488,956 |
|
|
|
|
|
|
| 2,508,372 |
|
|
| Intangible assets, net |
|
|
|
|
| 16,975 |
|
|
|
|
|
|
| 17,420 |
|
|
| Other long-term assets |
|
|
|
|
| 160,019 |
|
|
|
|
|
|
| 179,554 |
|
|
| Total assets |
|
|
| $ |
| 3,499,770 |
|
|
|
|
| $ |
| 3,550,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
|
| $ |
| 78,268 |
|
|
|
|
| $ |
| 94,861 |
|
|
| Current portion of long-term debt |
|
|
|
|
| 39,985 |
|
|
|
|
|
|
| 39,979 |
|
|
| Current portion of pension and other postretirement employee benefits |
|
|
|
|
| 4,926 |
|
|
|
|
|
|
| 4,926 |
|
|
| Total current liabilities |
|
|
|
|
| 123,179 |
|
|
|
|
|
|
| 139,766 |
|
|
| Long-term debt |
|
|
|
|
| 992,988 |
|
|
|
|
|
|
| 992,701 |
|
|
| Pension and other postretirement employee benefits |
|
|
|
|
| 78,096 |
|
|
|
|
|
|
| 77,396 |
|
|
| Deferred tax liabilities, net |
|
|
|
|
| 41,756 |
|
|
|
|
|
|
| 41,790 |
|
|
| Other long-term obligations |
|
|
|
|
| 35,488 |
|
|
|
|
|
|
| 35,749 |
|
|
| Total liabilities |
|
|
|
|
| 1,271,507 |
|
|
|
|
|
|
| 1,287,402 |
|
|
| Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 79,916 and 79,683 shares |
|
|
|
|
| 79,916 |
|
|
|
|
|
|
| 79,683 |
|
|
| Additional paid-in capital |
|
|
|
|
| 2,296,927 |
|
|
|
|
|
|
| 2,294,797 |
|
|
| Accumulated deficit |
|
|
|
|
| (228,766 |
| ) |
|
|
|
|
| (208,979 |
| ) |
| Accumulated other comprehensive income |
|
|
|
|
| 80,186 |
|
|
|
|
|
|
| 97,652 |
|
|
| Total stockholders’ equity |
|
|
|
|
| 2,228,263 |
|
|
|
|
|
|
| 2,263,153 |
|
|
| Total liabilities and stockholders' equity |
|
|
| $ |
| 3,499,770 |
|
|
|
|
| $ |
| 3,550,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PotlatchDeltic Corporation |
| Condensed Consolidated Statements of Cash Flows |
| Unaudited |
|
|
| Three Months Ended |
|
|
| (in thousands) |
| March 31, |
|
|
|
|
| December 31, |
|
|
|
|
| March 31, |
|
|
| 2023 |
| 2022 |
| 2022 |
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
| $ |
| 16,260 |
|
|
|
|
| $ |
| 3,843 |
|
|
|
|
| $ |
| 163,880 |
|
|
| Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
| 32,173 |
|
|
|
|
|
|
| 30,274 |
|
|
|
|
|
|
| 19,874 |
|
|
| Basis of real estate sold |
|
|
| 10,631 |
|
|
|
|
|
|
| 4,897 |
|
|
|
|
|
|
| 10,854 |
|
|
| Change in deferred taxes |
|
|
| 394 |
|
|
|
|
|
|
| (3,898 |
| ) |
|
|
|
|
| (2,123 |
| ) |
| Pension and other postretirement employee benefits |
|
|
| 1,611 |
|
|
|
|
|
|
| 4,323 |
|
|
|
|
|
|
| 3,857 |
|
|
| Pension settlement charge |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 14,165 |
|
|
| Equity-based compensation expense |
|
|
| 2,279 |
|
|
|
|
|
|
| 2,356 |
|
|
|
|
|
|
| 2,056 |
|
|
| Loss on fire damage |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 276 |
|
|
| Other, net |
|
|
| (3,509 |
| ) |
|
|
|
|
| (780 |
| ) |
|
|
|
|
| (291 |
| ) |
| Change in working capital and operating-related activities, net |
|
|
| (17,205 |
| ) |
|
|
|
|
| (4,660 |
| ) |
|
|
|
|
| 21,208 |
|
|
| Real estate development expenditures |
|
|
| (2,408 |
| ) |
|
|
|
|
| (1,116 |
| ) |
|
|
|
|
| (2,161 |
| ) |
| Funding of pension and other postretirement employee benefits |
|
|
| (1,087 |
| ) |
|
|
|
|
| (1,775 |
| ) |
|
|
|
|
| (1,296 |
| ) |
| Net cash from operating activities |
|
|
| 39,139 |
|
|
|
|
|
|
| 33,464 |
|
|
|
|
|
|
| 230,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property, plant and equipment additions |
|
|
| (4,255 |
| ) |
|
|
|
|
| (12,976 |
| ) |
|
|
|
|
| (12,566 |
| ) |
| Timberlands reforestation and roads |
|
|
| (6,118 |
| ) |
|
|
|
|
| (5,498 |
| ) |
|
|
|
|
| (4,648 |
| ) |
| Acquisition of timber and timberlands |
|
|
| — |
|
|
|
|
|
|
| (14,029 |
| ) |
|
|
|
|
| — |
|
|
| Proceeds from property insurance |
|
|
| — |
|
|
|
|
|
|
| 8,750 |
|
|
|
|
|
|
| — |
|
|
| Interest received under swaps with other-than-insignificant financing element |
|
|
| 5,055 |
|
|
|
|
|
|
| 2,798 |
|
|
|
|
|
|
| — |
|
|
| Other, net |
|
|
| 422 |
|
|
|
|
|
|
| 1,230 |
|
|
|
|
|
|
| 92 |
|
|
| Net cash from investing activities |
|
|
| (4,896 |
| ) |
|
|
|
|
| (19,725 |
| ) |
|
|
|
|
| (17,122 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributions to common stockholders |
|
|
| (35,962 |
| ) |
|
|
|
|
| (111,555 |
| ) |
|
|
|
|
| (30,524 |
| ) |
| Repurchase of common stock |
|
|
| — |
|
|
|
|
|
|
| (50,022 |
| ) |
|
|
|
|
| — |
|
|
| Proceeds from issuance of long-term debt |
|
|
| — |
|
|
|
|
|
|
| 40,000 |
|
|
|
|
|
|
| — |
|
|
| Repayment of long-term debt |
|
|
| — |
|
|
|
|
|
|
| (40,000 |
| ) |
|
|
|
|
| (3,000 |
| ) |
| Other, net |
|
|
| (838 |
| ) |
|
|
|
|
| (1,260 |
| ) |
|
|
|
|
| (1,071 |
| ) |
| Net cash from financing activities |
|
|
| (36,800 |
| ) |
|
|
|
|
| (162,837 |
| ) |
|
|
|
|
| (34,595 |
| ) |
| Change in cash, cash equivalents and restricted cash |
|
|
| (2,557 |
| ) |
|
|
|
|
| (149,098 |
| ) |
|
|
|
|
| 178,582 |
|
|
| Cash, cash equivalents and restricted cash, beginning |
|
|
| 345,591 |
|
|
|
|
|
|
| 494,689 |
|
|
|
|
|
|
| 296,772 |
|
|
| Cash, cash equivalents and restricted cash, ending 1 |
| $ |
| 343,034 |
|
|
|
|
| $ |
| 345,591 |
|
|
|
|
| $ |
| 475,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Includes $17.4 million, $1.8 million and $4.4 million at March 31, 2023, December 31, 2022 and March 31, 2022, respectively, that were or are intended to be reinvested in timber and timberlands and classified as restricted cash in Other current and long-term assets in the Condensed Consolidated Balance Sheets . |
| PotlatchDeltic Corporation |
| Segment Information |
| Unaudited |
|
|
|
|
|
|
|
|
| Three Months Ended |
|
|
|
|
| March 31, |
|
|
|
|
| December 31, |
|
|
|
|
| March 31, |
|
|
| (in thousands) |
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2022 |
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands |
| $ |
| 115,238 |
|
|
|
|
| $ |
| 121,871 |
|
|
|
|
| $ |
| 123,657 |
|
|
| Wood Products |
|
|
| 152,795 |
|
|
|
|
|
|
| 156,805 |
|
|
|
|
|
|
| 295,742 |
|
|
| Real Estate |
|
|
| 23,863 |
|
|
|
|
|
|
| 11,682 |
|
|
|
|
|
|
| 34,065 |
|
|
|
|
|
|
| 291,896 |
|
|
|
|
|
|
| 290,358 |
|
|
|
|
|
|
| 453,464 |
|
|
| Intersegment Timberlands revenues |
|
|
| (33,934 |
| ) |
|
|
|
|
| (37,218 |
| ) |
|
|
|
|
| (42,114 |
| ) |
| Consolidated revenues |
| $ |
| 257,962 |
|
|
|
|
| $ |
| 253,140 |
|
|
|
|
| $ |
| 411,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDDA 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands |
| $ |
| 46,639 |
|
|
|
|
| $ |
| 50,567 |
|
|
|
|
| $ |
| 76,434 |
|
|
| Wood Products |
|
|
| (31 |
| ) |
|
|
|
|
| 2,442 |
|
|
|
|
|
|
| 149,951 |
|
|
| Real Estate |
|
|
| 19,465 |
|
|
|
|
|
|
| 7,178 |
|
|
|
|
|
|
| 30,124 |
|
|
| Corporate |
|
|
| (10,741 |
| ) |
|
|
|
|
| (13,189 |
| ) |
|
|
|
|
| (9,584 |
| ) |
| Eliminations and adjustments |
|
|
| 2,445 |
|
|
|
|
|
|
| 5,335 |
|
|
|
|
|
|
| (1,363 |
| ) |
| Total Adjusted EBITDDA |
|
|
| 57,777 |
|
|
|
|
|
|
| 52,333 |
|
|
|
|
|
|
| 245,562 |
|
|
| Interest expense, net 2 |
|
|
| (199 |
| ) |
|
|
|
|
| (8,807 |
| ) |
|
|
|
|
| (2,894 |
| ) |
| Depreciation, depletion and amortization |
|
|
| (31,764 |
| ) |
|
|
|
|
| (29,862 |
| ) |
|
|
|
|
| (19,502 |
| ) |
| Basis of real estate sold |
|
|
| (10,631 |
| ) |
|
|
|
|
| (4,897 |
| ) |
|
|
|
|
| (10,854 |
| ) |
| CatchMark merger-related expenses |
|
|
| (2,209 |
| ) |
|
|
|
|
| (1,318 |
| ) |
|
|
|
|
| — |
|
|
| Environmental charge |
|
|
| — |
|
|
|
|
|
|
| (5,550 |
| ) |
|
|
|
|
| — |
|
|
| Loss on fire damage |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (276 |
| ) |
| Pension settlement charge |
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (14,165 |
| ) |
| Non-operating pension and other postretirement employee benefits |
|
|
| (228 |
| ) |
|
|
|
|
| (2,592 |
| ) |
|
|
|
|
| (1,929 |
| ) |
| Gain (loss) on disposal of fixed assets |
|
|
| — |
|
|
|
|
|
|
| (121 |
| ) |
|
|
|
|
| 3 |
|
|
| Other |
|
|
| 10 |
|
|
|
|
|
|
| (66 |
| ) |
|
|
|
|
| — |
|
|
| Income before income taxes |
| $ |
| 12,756 |
|
|
|
|
| $ |
| (880 |
| ) |
|
|
| $ |
| 195,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands |
| $ |
| 20,461 |
|
|
|
|
| $ |
| 18,845 |
|
|
|
|
| $ |
| 12,161 |
|
|
| Wood Products |
|
|
| 11,035 |
|
|
|
|
|
|
| 10,727 |
|
|
|
|
|
|
| 7,021 |
|
|
| Real Estate |
|
|
| 156 |
|
|
|
|
|
|
| 177 |
|
|
|
|
|
|
| 170 |
|
|
| Corporate |
|
|
| 112 |
|
|
|
|
|
|
| 113 |
|
|
|
|
|
|
| 150 |
|
|
|
|
|
|
| 31,764 |
|
|
|
|
|
|
| 29,862 |
|
|
|
|
|
|
| 19,502 |
|
|
| Bond discounts and deferred loan fees 2 |
|
|
| 409 |
|
|
|
|
|
|
| 412 |
|
|
|
|
|
|
| 372 |
|
|
| Total depreciation, depletion and amortization |
| $ |
| 32,173 |
|
|
|
|
| $ |
| 30,274 |
|
|
|
|
| $ |
| 19,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real Estate |
| $ |
| 10,631 |
|
|
|
|
| $ |
| 4,899 |
|
|
|
|
| $ |
| 10,860 |
|
|
| Eliminations and adjustments |
|
|
| — |
|
|
|
|
|
|
| (2 |
| ) |
|
|
|
|
| (6 |
| ) |
| Total basis of real estate sold |
| $ |
| 10,631 |
|
|
|
|
| $ |
| 4,897 |
|
|
|
|
| $ |
| 10,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA below. |
| 2 Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations . |
| PotlatchDeltic Corporation |
| Reconciliations |
| Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
|
|
|
|
|
|
| March 31, |
|
|
|
|
| December 31, |
|
|
|
|
| March 31, |
|
|
| (in thousands, except per share amount) |
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2022 |
|
|
| Total Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
|
| $ |
| 16,260 |
|
|
|
|
| $ |
| 3,843 |
|
|
|
|
| $ |
| 163,880 |
|
|
| Interest expense, net |
|
|
|
|
| 199 |
|
|
|
|
|
|
| 8,807 |
|
|
|
|
|
|
| 2,894 |
|
|
| Income taxes |
|
|
|
|
| (3,504 |
| ) |
|
|
|
|
| (4,723 |
| ) |
|
|
|
|
| 32,065 |
|
|
| Depreciation, depletion and amortization |
|
|
|
|
| 31,764 |
|
|
|
|
|
|
| 29,862 |
|
|
|
|
|
|
| 19,502 |
|
|
| Basis of real estate sold |
|
|
|
|
| 10,631 |
|
|
|
|
|
|
| 4,897 |
|
|
|
|
|
|
| 10,854 |
|
|
| CatchMark merger-related expenses |
|
|
|
|
| 2,209 |
|
|
|
|
|
|
| 1,318 |
|
|
|
|
|
|
| — |
|
|
| Loss on fire damage |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 276 |
|
|
| Environmental charge |
|
|
|
|
| — |
|
|
|
|
|
|
| 5,550 |
|
|
|
|
|
|
| — |
|
|
| Pension settlement charge |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 14,165 |
|
|
| Non-operating pension and other postretirement benefit costs |
|
|
|
|
| 228 |
|
|
|
|
|
|
| 2,592 |
|
|
|
|
|
|
| 1,929 |
|
|
| Loss (gain) on disposal of fixed assets |
|
|
|
|
| — |
|
|
|
|
|
|
| 121 |
|
|
|
|
|
|
| (3 |
| ) |
| Other |
|
|
|
|
| (10 |
| ) |
|
|
|
|
| 66 |
|
|
|
|
|
|
| — |
|
|
| Total Adjusted EBITDDA |
|
|
| $ |
| 57,777 |
|
|
|
|
| $ |
| 52,333 |
|
|
|
|
| $ |
| 245,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
|
| $ |
| 16,260 |
|
|
|
|
| $ |
| 3,843 |
|
|
|
|
| $ |
| 163,880 |
|
|
| Special items after tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CatchMark merger-related expenses |
|
|
|
|
| 2,209 |
|
|
|
|
|
|
| 1,318 |
|
|
|
|
|
|
| — |
|
|
| Loss on fire damage |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 205 |
|
|
| Pension settlement charge |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 10,553 |
|
|
| Environmental charge |
|
|
|
|
| — |
|
|
|
|
|
|
| 4,135 |
|
|
|
|
|
|
| — |
|
|
| Adjusted Net Income |
|
|
| $ |
| 18,469 |
|
|
|
|
| $ |
| 9,296 |
|
|
|
|
| $ |
| 174,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income Per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per diluted share (GAAP) |
|
|
| $ |
| 0.20 |
|
|
|
|
| $ |
| 0.05 |
|
|
|
|
| $ |
| 2.35 |
|
|
| Special items after tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CatchMark merger-related expenses |
|
|
|
|
| 0.03 |
|
|
|
|
|
|
| 0.02 |
|
|
|
|
|
|
| — |
|
|
| Pension settlement charge |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 0.15 |
|
|
| Environmental charge |
|
|
|
|
| — |
|
|
|
|
|
|
| 0.05 |
|
|
|
|
|
|
| — |
|
|
| Adjusted Net Income Per Diluted Share |
|
|
| $ |
| 0.23 |
|
|
|
|
| $ |
| 0.12 |
|
|
|
|
| $ |
| 2.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005779/en/
(Investors)
Wayne Wasechek
509.835.1521
(Media)
Anna Torma
509.835.1558