PCH - PotlatchDeltic Corporation Reports Second Quarter 2022 Results
PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $120.2 million, or $1.72 per diluted share, on revenues of $359.6 million for the quarter ended June 30, 2022. Excluding an after-tax gain on insurance recoveries, adjusted net income was $112.9 million, or $1.61 per diluted share for the second quarter of 2022. Net income was $187.9 million, or $2.77 per diluted share, on revenues of $447.5 million for the quarter ended June 30, 2021.
Second Quarter 2022 Highlights
- Generated Total Adjusted EBITDDA of $175.1 million and Total Adjusted EBITDDA margin of 49%
- Entered into definitive merger agreement with CatchMark to create leading integrated timber REIT
- Announced $131 million expansion and modernization of Waldo, Arkansas sawmill
- Closed or pending timberland bolt-on acquisitions were $101 million
- Widened strong liquidity position to $810 million as of June 30, 2022
“Our second quarter 2022 financial results reflect strong performance across all of our businesses,” said Eric Cremers, president and chief executive officer. “We continue to capitalize on attractive lumber prices, which we expect to remain higher than long-term averages for the rest of 2022. Key recent accomplishments include the announcement of our pending merger with CatchMark, a decision to spend $131 million to modernize and expand our Waldo, Arkansas sawmill, and returning cash of $35 million to shareholders, including $5 million of share repurchases. I am very excited about our growth opportunities and we are well-positioned with our strong balance sheet and liquidity to deliver exceptional shareholder value over the long-term,” stated Mr. Cremers.
Financial Highlights
| ($ in millions, except per share data) |
|
|
| Q2 2022 |
|
|
| Q1 2022 |
|
|
| Q2 2021 |
| Revenues |
|
|
| $ |
| 359.6 |
|
|
|
|
| $ |
| 411.4 |
|
|
|
|
| $ |
| 447.5 |
|
|
| Net income |
|
|
| $ |
| 120.2 |
|
|
|
|
| $ |
| 163.9 |
|
|
|
|
| $ |
| 187.9 |
|
|
| Weighted average shares outstanding, diluted (in thousands) |
|
|
|
|
| 69,791 |
|
|
|
|
|
|
| 69,623 |
|
|
|
|
|
|
| 67,732 |
|
|
| Net income per diluted share |
|
|
| $ |
| 1.72 |
|
|
|
|
| $ |
| 2.35 |
|
|
|
|
| $ |
| 2.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income |
|
|
| $ |
| 112.9 |
|
|
|
|
| $ |
| 174.6 |
|
|
|
|
| $ |
| 187.9 |
|
|
| Adjusted Net Income Per Diluted Share |
|
|
| $ |
| 1.61 |
|
|
|
|
| $ |
| 2.50 |
|
|
|
|
| $ |
| 2.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Adjusted EBITDDA |
|
|
| $ |
| 175.1 |
|
|
|
|
| $ |
| 245.6 |
|
|
|
|
| $ |
| 275.0 |
|
|
| Dividends per share |
|
|
| $ |
| 0.44 |
|
|
|
|
| $ |
| 0.44 |
|
|
|
|
| $ |
| 0.41 |
|
|
| Net cash from operations |
|
|
| $ |
| 147.9 |
|
|
|
|
| $ |
| 230.3 |
|
|
|
|
| $ |
| 171.4 |
|
|
| Cash and cash equivalents |
|
|
| $ |
| 511.2 |
|
|
|
|
| $ |
| 470.9 |
|
|
|
|
| $ |
| 512.0 |
|
|
Business Performance: Q2 2022 vs. Q1 2022
Timberlands
Second Quarter 2022 Highlights
- Timberlands Adjusted EBITDDA decreased $18.5 million from Q1 2022
- Northern harvest volumes decreased due to spring break-up and unseasonably wet weather in June
- Northern sawlog prices increased 7.5% primarily due to higher indexed sawlog prices and seasonally lighter logs
- Southern sawlog harvest volumes were slightly lower and saw log prices were relatively flat
- Higher log & haul costs were primarily driven by increased fuel costs
- Forest management costs increased due to seasonally higher activities
| ($ in millions) |
|
|
| Q2 2022 |
|
|
| Q1 2022 |
|
|
| $ Change |
| Timberlands Revenues |
|
|
| $ |
| 105.5 |
|
|
|
|
| $ |
| 123.7 |
|
|
|
|
| $ |
| (18.2 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands Adjusted EBITDDA |
|
|
| $ |
| 57.9 |
|
|
|
|
| $ |
| 76.4 |
|
|
|
|
| $ |
| (18.5 |
| ) |
Wood Products
Second Quarter 2022 Highlights
- Wood Products Adjusted EBITDDA decreased $42.8 million from Q1 2022
- Average lumber price decreased 20% to $865 per MBF in Q2 2022
- Log costs increased primarily due to higher indexed pricing in Idaho
- Lumber shipments increased 9% to 254 MMBF in Q2 2022
| ($ in millions) |
|
|
| Q2 2022 |
|
|
| Q1 2022 |
|
|
| $ Change |
| Wood Products Revenues |
|
|
| $ |
| 266.6 |
|
|
|
|
| $ |
| 295.7 |
|
|
|
|
| $ |
| (29.1 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Wood Products Adjusted EBITDDA |
|
|
| $ |
| 107.2 |
|
|
|
|
| $ |
| 150.0 |
|
|
|
|
| $ |
| (42.8 |
| ) |
Real Estate
Second Quarter 2022 Highlights
- Real Estate Adjusted EBITDDA decreased $8.3 million from Q1 2022
- Sold 12,749 acres of rural land at an average price of $1,290 / acre
- Sold 45 residential lots at an average price of $134,373 / lot
- Sold 3 commercial acres for $685,713 / acre
| ($ in millions) |
|
|
| Q2 2022 |
|
|
| Q1 2022 |
|
|
| $ Change |
| Real Estate Revenues |
|
|
| $ |
| 26.7 |
|
|
|
|
| $ |
| 34.1 |
|
|
|
|
| $ |
| (7.4 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real Estate Adjusted EBITDDA |
|
|
| $ |
| 21.8 |
|
|
|
|
| $ |
| 30.1 |
|
|
|
|
| $ |
| (8.3 |
| ) |
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, July 26, 2022, 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 August 2, 2022, 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 approximately 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana and Mississippi. 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; favorable housing market fundamentals and demand for lumber and lumber prices; disciplined capital allocation strategy; pending merger transaction with CatchMark Timber Trust, Inc., modernization of the Waldo, Arkansas sawmill, business conditions and strategies; 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, including the impact of COVID-19 and its variants, governmental responses to such outbreaks, and anticipated recovery from the pandemic on our business, suppliers, customers and employees; 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 failure of CatchMark’s shareholders to approve the merger transaction, or the occurrence of any event, change, or other circumstance that could give rise to a termination of the definitive agreement relating to the proposed merger transaction, 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 |
|
|
| Six Months Ended |
|
|
| June 30, |
|
|
| March 31, |
|
|
| June 30, |
|
|
| June 30, |
|
|
| June 30, |
| (in thousands, except per share amounts) |
| 2022 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Revenues |
| $ |
| 359,597 |
|
|
|
|
| $ |
| 411,350 |
|
|
|
|
| $ |
| 447,506 |
|
|
|
|
| $ |
| 770,947 |
|
|
|
|
| $ |
| 801,699 |
|
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
| 191,334 |
|
|
|
|
|
|
| 179,847 |
|
|
|
|
|
|
| 177,779 |
|
|
|
|
|
|
| 371,181 |
|
|
|
|
|
|
| 347,081 |
|
|
| Selling, general and administrative expenses |
|
|
| 20,412 |
|
|
|
|
|
|
| 16,294 |
|
|
|
|
|
|
| 19,512 |
|
|
|
|
|
|
| 36,706 |
|
|
|
|
|
|
| 36,270 |
|
|
| (Gain) loss on fire damage |
|
|
| (9,868 |
| ) |
|
|
|
|
| 276 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (9,592 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| 201,878 |
|
|
|
|
|
|
| 196,417 |
|
|
|
|
|
|
| 197,291 |
|
|
|
|
|
|
| 398,295 |
|
|
|
|
|
|
| 383,351 |
|
|
| Operating income |
|
|
| 157,719 |
|
|
|
|
|
|
| 214,933 |
|
|
|
|
|
|
| 250,215 |
|
|
|
|
|
|
| 372,652 |
|
|
|
|
|
|
| 418,348 |
|
|
| Interest expense, net |
|
|
| (7,419 |
| ) |
|
|
|
|
| (2,894 |
| ) |
|
|
|
|
| (8,199 |
| ) |
|
|
|
|
| (10,313 |
| ) |
|
|
|
|
| (11,773 |
| ) |
| Pension settlement charge |
|
|
| — |
|
|
|
|
|
|
| (14,165 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (14,165 |
| ) |
|
|
|
|
| — |
|
|
| Non-operating pension and other postretirement employee benefit costs |
|
|
| (1,809 |
| ) |
|
|
|
|
| (1,929 |
| ) |
|
|
|
|
| (3,271 |
| ) |
|
|
|
|
| (3,738 |
| ) |
|
|
|
|
| (6,685 |
| ) |
| Income before income taxes |
|
|
| 148,491 |
|
|
|
|
|
|
| 195,945 |
|
|
|
|
|
|
| 238,745 |
|
|
|
|
|
|
| 344,436 |
|
|
|
|
|
|
| 399,890 |
|
|
| Income taxes |
|
|
| (28,269 |
| ) |
|
|
|
|
| (32,065 |
| ) |
|
|
|
|
| (50,840 |
| ) |
|
|
|
|
| (60,334 |
| ) |
|
|
|
|
| (80,879 |
| ) |
| Net income |
| $ |
| 120,222 |
|
|
|
|
| $ |
| 163,880 |
|
|
|
|
| $ |
| 187,905 |
|
|
|
|
| $ |
| 284,102 |
|
|
|
|
| $ |
| 319,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
| $ |
| 1.73 |
|
|
|
|
| $ |
| 2.36 |
|
|
|
|
| $ |
| 2.79 |
|
|
|
|
| $ |
| 4.09 |
|
|
|
|
| $ |
| 4.74 |
|
|
| Diluted |
| $ |
| 1.72 |
|
|
|
|
| $ |
| 2.35 |
|
|
|
|
| $ |
| 2.77 |
|
|
|
|
| $ |
| 4.07 |
|
|
|
|
| $ |
| 4.71 |
|
|
| Dividends per share |
| $ |
| 0.44 |
|
|
|
|
| $ |
| 0.44 |
|
|
|
|
| $ |
| 0.41 |
|
|
|
|
| $ |
| 0.88 |
|
|
|
|
| $ |
| 0.82 |
|
|
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
| 69,580 |
|
|
|
|
|
|
| 69,419 |
|
|
|
|
|
|
| 67,316 |
|
|
|
|
|
|
| 69,502 |
|
|
|
|
|
|
| 67,265 |
|
|
| Diluted |
|
|
| 69,791 |
|
|
|
|
|
|
| 69,623 |
|
|
|
|
|
|
| 67,732 |
|
|
|
|
|
|
| 69,731 |
|
|
|
|
|
|
| 67,664 |
|
|
| PotlatchDeltic Corporation Condensed Consolidated Balance Sheet Unaudited |
| (in thousands, except per share amounts) |
|
|
| June 30, 2022 |
|
|
| December 31, 2021 |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
| $ |
| 511,157 |
|
|
|
|
| $ |
| 296,151 |
|
|
| Customer receivables, net |
|
|
|
|
| 43,989 |
|
|
|
|
|
|
| 31,028 |
|
|
| Inventories, net |
|
|
|
|
| 64,247 |
|
|
|
|
|
|
| 72,369 |
|
|
| Other current assets |
|
|
|
|
| 31,833 |
|
|
|
|
|
|
| 21,630 |
|
|
| Total current assets |
|
|
|
|
| 651,226 |
|
|
|
|
|
|
| 421,178 |
|
|
| Property, plant and equipment, net |
|
|
|
|
| 314,840 |
|
|
|
|
|
|
| 292,320 |
|
|
| Investment in real estate held for development and sale |
|
|
|
|
| 60,143 |
|
|
|
|
|
|
| 65,604 |
|
|
| Timber and timberlands, net |
|
|
|
|
| 1,704,256 |
|
|
|
|
|
|
| 1,682,671 |
|
|
| Intangible assets, net |
|
|
|
|
| 15,101 |
|
|
|
|
|
|
| 15,491 |
|
|
| Other long-term assets |
|
|
|
|
| 126,353 |
|
|
|
|
|
|
| 57,951 |
|
|
| Total assets |
|
|
| $ |
| 2,871,919 |
|
|
|
|
| $ |
| 2,535,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
|
| $ |
| 110,184 |
|
|
|
|
| $ |
| 78,209 |
|
|
| Current portion of long-term debt |
|
|
|
|
| 39,989 |
|
|
|
|
|
|
| 42,977 |
|
|
| Current portion of pension and other postretirement employee benefits |
|
|
|
|
| 4,993 |
|
|
|
|
|
|
| 4,993 |
|
|
| Total current liabilities |
|
|
|
|
| 155,166 |
|
|
|
|
|
|
| 126,179 |
|
|
| Long-term debt |
|
|
|
|
| 715,748 |
|
|
|
|
|
|
| 715,279 |
|
|
| Pension and other postretirement employee benefits |
|
|
|
|
| 91,703 |
|
|
|
|
|
|
| 83,674 |
|
|
| Deferred tax liabilities, net |
|
|
|
|
| 40,725 |
|
|
|
|
|
|
| 34,874 |
|
|
| Other long-term obligations |
|
|
|
|
| 25,026 |
|
|
|
|
|
|
| 49,076 |
|
|
| Total liabilities |
|
|
|
|
| 1,028,368 |
|
|
|
|
|
|
| 1,009,082 |
|
|
| Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 69,280 and 69,064 shares |
|
|
|
|
| 69,280 |
|
|
|
|
|
|
| 69,064 |
|
|
| Additional paid-in capital |
|
|
|
|
| 1,785,383 |
|
|
|
|
|
|
| 1,781,217 |
|
|
| Accumulated deficit |
|
|
|
|
| (62,074 |
| ) |
|
|
|
|
| (280,910 |
| ) |
| Accumulated other comprehensive income (loss) |
|
|
|
|
| 50,962 |
|
|
|
|
|
|
| (43,238 |
| ) |
| Total stockholders’ equity |
|
|
|
|
| 1,843,551 |
|
|
|
|
|
|
| 1,526,133 |
|
|
| Total liabilities and stockholders' equity |
|
|
| $ |
| 2,871,919 |
|
|
|
|
| $ |
| 2,535,215 |
|
|
| PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited |
|
|
| Three Months Ended |
|
|
| Six Months Ended |
| (in thousands) |
| June 30, 2022 |
|
|
| March 31, 2022 |
|
|
| June 30, 2021 |
|
|
| June 30, 2022 |
|
|
| June 30, 2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
| $ |
| 120,222 |
|
|
|
|
| $ |
| 163,880 |
|
|
|
|
| $ |
| 187,905 |
|
|
|
|
| $ |
| 284,102 |
|
|
|
|
| $ |
| 319,011 |
|
|
| Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
| 20,379 |
|
|
|
|
|
|
| 19,874 |
|
|
|
|
|
|
| 17,432 |
|
|
|
|
|
|
| 40,253 |
|
|
|
|
|
|
| 35,831 |
|
|
| Basis of real estate sold |
|
|
| 7,325 |
|
|
|
|
|
|
| 10,854 |
|
|
|
|
|
|
| 7,213 |
|
|
|
|
|
|
| 18,179 |
|
|
|
|
|
|
| 16,036 |
|
|
| Change in deferred taxes |
|
|
| 34 |
|
|
|
|
|
|
| (2,123 |
| ) |
|
|
|
|
| (928 |
| ) |
|
|
|
|
| (2,089 |
| ) |
|
|
|
|
| 562 |
|
|
| Pension and other postretirement employee benefits |
|
|
| 3,540 |
|
|
|
|
|
|
| 3,857 |
|
|
|
|
|
|
| 5,484 |
|
|
|
|
|
|
| 7,397 |
|
|
|
|
|
|
| 11,111 |
|
|
| Pension settlement charge |
|
|
| — |
|
|
|
|
|
|
| 14,165 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 14,165 |
|
|
|
|
|
|
| — |
|
|
| Equity-based compensation expense |
|
|
| 2,368 |
|
|
|
|
|
|
| 2,056 |
|
|
|
|
|
|
| 2,140 |
|
|
|
|
|
|
| 4,424 |
|
|
|
|
|
|
| 4,070 |
|
|
| (Gain) loss on fire damage |
|
|
| (9,868 |
| ) |
|
|
|
|
| 276 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (9,592 |
| ) |
|
|
|
|
| — |
|
|
| Other, net |
|
|
| (308 |
| ) |
|
|
|
|
| (291 |
| ) |
|
|
|
|
| 92 |
|
|
|
|
|
|
| (599 |
| ) |
|
|
|
|
| (295 |
| ) |
| Change in working capital and operating-related activities, net |
|
|
| (1,236 |
| ) |
|
|
|
|
| 21,208 |
|
|
|
|
|
|
| (43,867 |
| ) |
|
|
|
|
| 19,972 |
|
|
|
|
|
|
| (37,154 |
| ) |
| Real estate development expenditures |
|
|
| (3,029 |
| ) |
|
|
|
|
| (2,161 |
| ) |
|
|
|
|
| (1,684 |
| ) |
|
|
|
|
| (5,190 |
| ) |
|
|
|
|
| (3,999 |
| ) |
| Funding of pension and other postretirement employee benefits |
|
|
| (968 |
| ) |
|
|
|
|
| (1,296 |
| ) |
|
|
|
|
| (2,412 |
| ) |
|
|
|
|
| (2,264 |
| ) |
|
|
|
|
| (3,833 |
| ) |
| Proceeds from insurance recoveries |
|
|
| 9,428 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 9,428 |
|
|
|
|
|
|
| — |
|
|
| Net cash from operating activities |
|
|
| 147,887 |
|
|
|
|
|
|
| 230,299 |
|
|
|
|
|
|
| 171,375 |
|
|
|
|
|
|
| 378,186 |
|
|
|
|
|
|
| 341,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property, plant and equipment additions |
|
|
| (24,211 |
| ) |
|
|
|
|
| (12,566 |
| ) |
|
|
|
|
| (8,181 |
| ) |
|
|
|
|
| (36,777 |
| ) |
|
|
|
|
| (15,943 |
| ) |
| Timberlands reforestation and roads |
|
|
| (3,740 |
| ) |
|
|
|
|
| (4,648 |
| ) |
|
|
|
|
| (3,998 |
| ) |
|
|
|
|
| (8,388 |
| ) |
|
|
|
|
| (7,954 |
| ) |
| Acquisition of timber and timberlands |
|
|
| (42,218 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (2,192 |
| ) |
|
|
|
|
| (42,218 |
| ) |
|
|
|
|
| (2,192 |
| ) |
| Other, net |
|
|
| (1,475 |
| ) |
|
|
|
|
| 92 |
|
|
|
|
|
|
| 446 |
|
|
|
|
|
|
| (1,383 |
| ) |
|
|
|
|
| 635 |
|
|
| Net cash from investing activities |
|
|
| (71,644 |
| ) |
|
|
|
|
| (17,122 |
| ) |
|
|
|
|
| (13,925 |
| ) |
|
|
|
|
| (88,766 |
| ) |
|
|
|
|
| (25,454 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributions to common stockholders |
|
|
| (30,524 |
| ) |
|
|
|
|
| (30,524 |
| ) |
|
|
|
|
| (27,489 |
| ) |
|
|
|
|
| (61,048 |
| ) |
|
|
|
|
| (54,973 |
| ) |
| Repurchase of common stock |
|
|
| (4,156 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (4,156 |
| ) |
|
|
|
|
| — |
|
|
| Repayment of long-term debt |
|
|
| — |
|
|
|
|
|
|
| (3,000 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (3,000 |
| ) |
|
|
|
|
| — |
|
|
| Other, net |
|
|
| (1,023 |
| ) |
|
|
|
|
| (1,071 |
| ) |
|
|
|
|
| (632 |
| ) |
|
|
|
|
| (2,094 |
| ) |
|
|
|
|
| (1,223 |
| ) |
| Net cash from financing activities |
|
|
| (35,703 |
| ) |
|
|
|
|
| (34,595 |
| ) |
|
|
|
|
| (28,121 |
| ) |
|
|
|
|
| (70,298 |
| ) |
|
|
|
|
| (56,196 |
| ) |
| Change in cash, cash equivalents and restricted cash |
|
|
| 40,540 |
|
|
|
|
|
|
| 178,582 |
|
|
|
|
|
|
| 129,329 |
|
|
|
|
|
|
| 219,122 |
|
|
|
|
|
|
| 259,690 |
|
|
| Cash, cash equivalents and restricted cash, beginning |
|
|
| 475,354 |
|
|
|
|
|
|
| 296,772 |
|
|
|
|
|
|
| 382,701 |
|
|
|
|
|
|
| 296,772 |
|
|
|
|
|
|
| 252,340 |
|
|
| Cash, cash equivalents and restricted cash, ending |
| $ |
| 515,894 |
|
|
|
|
| $ |
| 475,354 |
|
|
|
|
| $ |
| 512,030 |
|
|
|
|
| $ |
| 515,894 |
|
|
|
|
| $ |
| 512,030 |
|
|
| PotlatchDeltic Corporation Segment Information Unaudited |
|
|
| Three Months Ended |
|
|
| Six Months Ended |
|
|
| June 30, |
|
|
| March 31, |
|
|
| June 30, |
|
|
| June 30, |
|
|
| June 30, |
| (in thousands) |
| 2022 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands |
| $ |
| 105,486 |
|
|
|
|
| $ |
| 123,657 |
|
|
|
|
| $ |
| 121,216 |
|
|
|
|
| $ |
| 229,143 |
|
|
|
|
| $ |
| 233,132 |
|
|
| Wood Products |
|
|
| 266,633 |
|
|
|
|
|
|
| 295,742 |
|
|
|
|
|
|
| 357,673 |
|
|
|
|
|
|
| 562,375 |
|
|
|
|
|
|
| 626,969 |
|
|
| Real Estate |
|
|
| 26,736 |
|
|
|
|
|
|
| 34,065 |
|
|
|
|
|
|
| 15,998 |
|
|
|
|
|
|
| 60,801 |
|
|
|
|
|
|
| 36,311 |
|
|
|
|
|
|
| 398,855 |
|
|
|
|
|
|
| 453,464 |
|
|
|
|
|
|
| 494,887 |
|
|
|
|
|
|
| 852,319 |
|
|
|
|
|
|
| 896,412 |
|
|
| Intersegment Timberlands revenues |
|
|
| (39,258 |
| ) |
|
|
|
|
| (42,114 |
| ) |
|
|
|
|
| (47,381 |
| ) |
|
|
|
|
| (81,372 |
| ) |
|
|
|
|
| (94,713 |
| ) |
| Consolidated revenues |
| $ |
| 359,597 |
|
|
|
|
| $ |
| 411,350 |
|
|
|
|
| $ |
| 447,506 |
|
|
|
|
| $ |
| 770,947 |
|
|
|
|
| $ |
| 801,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDDA 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands |
| $ |
| 57,890 |
|
|
|
|
| $ |
| 76,434 |
|
|
|
|
| $ |
| 77,259 |
|
|
|
|
| $ |
| 134,324 |
|
|
|
|
| $ |
| 145,117 |
|
|
| Wood Products |
|
|
| 107,256 |
|
|
|
|
|
|
| 149,951 |
|
|
|
|
|
|
| 204,533 |
|
|
|
|
|
|
| 257,207 |
|
|
|
|
|
|
| 330,088 |
|
|
| Real Estate |
|
|
| 21,816 |
|
|
|
|
|
|
| 30,124 |
|
|
|
|
|
|
| 11,788 |
|
|
|
|
|
|
| 51,940 |
|
|
|
|
|
|
| 28,381 |
|
|
| Corporate |
|
|
| (13,912 |
| ) |
|
|
|
|
| (9,584 |
| ) |
|
|
|
|
| (12,822 |
| ) |
|
|
|
|
| (23,496 |
| ) |
|
|
|
|
| (23,532 |
| ) |
| Eliminations and adjustments |
|
|
| 2,120 |
|
|
|
|
|
|
| (1,363 |
| ) |
|
|
|
|
| (5,774 |
| ) |
|
|
|
|
| 757 |
|
|
|
|
|
|
| (10,084 |
| ) |
| Total Adjusted EBITDDA |
|
|
| 175,170 |
|
|
|
|
|
|
| 245,562 |
|
|
|
|
|
|
| 274,984 |
|
|
|
|
|
|
| 420,732 |
|
|
|
|
|
|
| 469,970 |
|
|
| Interest expense, net |
|
|
| (7,419 |
| ) |
|
|
|
|
| (2,894 |
| ) |
|
|
|
|
| (8,199 |
| ) |
|
|
|
|
| (10,313 |
| ) |
|
|
|
|
| (11,773 |
| ) |
| Depreciation, depletion and amortization |
|
|
| (20,007 |
| ) |
|
|
|
|
| (19,502 |
| ) |
|
|
|
|
| (17,029 |
| ) |
|
|
|
|
| (39,509 |
| ) |
|
|
|
|
| (35,025 |
| ) |
| Basis of real estate sold |
|
|
| (7,325 |
| ) |
|
|
|
|
| (10,854 |
| ) |
|
|
|
|
| (7,213 |
| ) |
|
|
|
|
| (18,179 |
| ) |
|
|
|
|
| (16,036 |
| ) |
| Gain (loss) on fire damage |
|
|
| 9,868 |
|
|
|
|
|
|
| (276 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| 9,592 |
|
|
|
|
|
|
| — |
|
|
| Pension settlement charge |
|
|
| — |
|
|
|
|
|
|
| (14,165 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (14,165 |
| ) |
|
|
|
|
| — |
|
|
| Non-operating pension and other postretirement employee benefits |
|
|
| (1,809 |
| ) |
|
|
|
|
| (1,929 |
| ) |
|
|
|
|
| (3,271 |
| ) |
|
|
|
|
| (3,738 |
| ) |
|
|
|
|
| (6,685 |
| ) |
| Gain (loss) on disposal of fixed assets |
|
|
| 13 |
|
|
|
|
|
|
| 3 |
|
|
|
|
|
|
| (527 |
| ) |
|
|
|
|
| 16 |
|
|
|
|
|
|
| (561 |
| ) |
| Income before income taxes |
| $ |
| 148,491 |
|
|
|
|
| $ |
| 195,945 |
|
|
|
|
| $ |
| 238,745 |
|
|
|
|
| $ |
| 344,436 |
|
|
|
|
| $ |
| 399,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Timberlands |
| $ |
| 11,563 |
|
|
|
|
| $ |
| 12,161 |
|
|
|
|
| $ |
| 10,482 |
|
|
|
|
| $ |
| 23,724 |
|
|
|
|
| $ |
| 21,899 |
|
|
| Wood Products |
|
|
| 8,136 |
|
|
|
|
|
|
| 7,021 |
|
|
|
|
|
|
| 6,179 |
|
|
|
|
|
|
| 15,157 |
|
|
|
|
|
|
| 12,382 |
|
|
| Real Estate |
|
|
| 173 |
|
|
|
|
|
|
| 170 |
|
|
|
|
|
|
| 160 |
|
|
|
|
|
|
| 343 |
|
|
|
|
|
|
| 315 |
|
|
| Corporate |
|
|
| 135 |
|
|
|
|
|
|
| 150 |
|
|
|
|
|
|
| 208 |
|
|
|
|
|
|
| 285 |
|
|
|
|
|
|
| 429 |
|
|
|
|
|
|
| 20,007 |
|
|
|
|
|
|
| 19,502 |
|
|
|
|
|
|
| 17,029 |
|
|
|
|
|
|
| 39,509 |
|
|
|
|
|
|
| 35,025 |
|
|
| Bond discounts and deferred loan fees 2 |
|
|
| 372 |
|
|
|
|
|
|
| 372 |
|
|
|
|
|
|
| 403 |
|
|
|
|
|
|
| 744 |
|
|
|
|
|
|
| 806 |
|
|
| Total depreciation, depletion and amortization |
| $ |
| 20,379 |
|
|
|
|
| $ |
| 19,874 |
|
|
|
|
| $ |
| 17,432 |
|
|
|
|
| $ |
| 40,253 |
|
|
|
|
| $ |
| 35,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real Estate |
| $ |
| 7,328 |
|
|
|
|
| $ |
| 10,860 |
|
|
|
|
| $ |
| 7,219 |
|
|
|
|
| $ |
| 18,188 |
|
|
|
|
| $ |
| 16,048 |
|
|
| Eliminations and adjustments |
|
|
| (3 |
| ) |
|
|
|
|
| (6 |
| ) |
|
|
|
|
| (6 |
| ) |
|
|
|
|
| (9 |
| ) |
|
|
|
|
| (12 |
| ) |
| Total basis of real estate sold |
| $ |
| 7,325 |
|
|
|
|
| $ |
| 10,854 |
|
|
|
|
| $ |
| 7,213 |
|
|
|
|
| $ |
| 18,179 |
|
|
|
|
| $ |
| 16,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
| Six Months Ended |
|
|
|
|
| June 30, |
|
|
| March 31, |
|
|
| June 30, |
|
|
| June 30, |
|
|
| June 30, |
| (in thousands, except per share amount) |
|
|
| 2022 |
|
|
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| Total Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
|
| $ |
| 120,222 |
|
|
|
|
| $ |
| 163,880 |
|
|
|
|
| $ |
| 187,905 |
|
|
|
|
| $ |
| 284,102 |
|
|
|
|
| $ |
| 319,011 |
| Interest expense, net |
|
|
|
|
| 7,419 |
|
|
|
|
|
|
| 2,894 |
|
|
|
|
|
|
| 8,199 |
|
|
|
|
|
|
| 10,313 |
|
|
|
|
|
|
| 11,773 |
|
|
| Income taxes |
|
|
|
|
| 28,269 |
|
|
|
|
|
|
| 32,065 |
|
|
|
|
|
|
| 50,840 |
|
|
|
|
|
|
| 60,334 |
|
|
|
|
|
|
| 80,879 |
|
|
| Depreciation, depletion and amortization |
|
|
|
|
| 20,007 |
|
|
|
|
|
|
| 19,502 |
|
|
|
|
|
|
| 17,029 |
|
|
|
|
|
|
| 39,509 |
|
|
|
|
|
|
| 35,025 |
|
|
| Basis of real estate sold |
|
|
|
|
| 7,325 |
|
|
|
|
|
|
| 10,854 |
|
|
|
|
|
|
| 7,213 |
|
|
|
|
|
|
| 18,179 |
|
|
|
|
|
|
| 16,036 |
|
|
| (Gain) loss on fire damage |
|
|
|
|
| (9,868 |
| ) |
|
|
|
|
| 276 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (9,592 |
| ) |
|
|
|
|
| — |
|
|
| Pension settlement charge |
|
|
|
|
| — |
|
|
|
|
|
|
| 14,165 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 14,165 |
|
|
|
|
|
|
| — |
|
|
| Non-operating pension and other postretirement benefit costs |
|
|
|
|
| 1,809 |
|
|
|
|
|
|
| 1,929 |
|
|
|
|
|
|
| 3,271 |
|
|
|
|
|
|
| 3,738 |
|
|
|
|
|
|
| 6,685 |
|
|
| (Gain) loss on disposal of fixed assets |
|
|
|
|
| (13 |
| ) |
|
|
|
|
| (3 |
| ) |
|
|
|
|
| 527 |
|
|
|
|
|
|
| (16 |
| ) |
|
|
|
|
| 561 |
|
|
| Total Adjusted EBITDDA |
|
|
| $ |
| 175,170 |
|
|
|
|
| $ |
| 245,562 |
|
|
|
|
| $ |
| 274,984 |
|
|
|
|
| $ |
| 420,732 |
|
|
|
|
| $ |
| 469,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (GAAP) |
|
|
| $ |
| 120,222 |
|
|
|
|
| $ |
| 163,880 |
|
|
|
|
| $ |
| 187,905 |
|
|
|
|
| $ |
| 284,102 |
|
|
|
|
| $ |
| 319,011 |
|
|
| Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Gain) loss on fire damage, after tax |
|
|
|
|
| (7,351 |
| ) |
|
|
|
|
| 205 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (7,146 |
| ) |
|
|
|
|
| — |
|
|
| Pension settlement charge, after tax |
|
|
|
|
| — |
|
|
|
|
|
|
| 10,553 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 10,553 |
|
|
|
|
|
|
| — |
|
|
| Adjusted net income |
|
|
| $ |
| 112,871 |
|
|
|
|
| $ |
| 174,638 |
|
|
|
|
| $ |
| 187,905 |
|
|
|
|
| $ |
| 287,509 |
|
|
|
|
| $ |
| 319,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income Per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per diluted share (GAAP) |
|
|
| $ |
| 1.72 |
|
|
|
|
| $ |
| 2.35 |
|
|
|
|
| $ |
| 2.77 |
|
|
|
|
| $ |
| 4.07 |
|
|
|
|
| $ |
| 4.71 |
|
|
| Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Gain) loss on fire damage, after tax |
|
|
|
|
| (0.11 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| (0.10 |
| ) |
|
|
|
|
| — |
|
|
| Pension settlement charge, after tax |
|
|
|
|
| — |
|
|
|
|
|
|
| 0.15 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 0.15 |
|
|
|
|
|
|
| — |
|
|
| Adjusted net income per diluted share |
|
|
| $ |
| 1.61 |
|
|
|
|
| $ |
| 2.50 |
|
|
|
|
| $ |
| 2.77 |
|
|
|
|
| $ |
| 4.12 |
|
|
|
|
| $ |
| 4.71 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220725005675/en/
(Investors)
Jerry Richards
509.835.1521
(Media)
Anna Torma
509.835.1558