PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $3.8 million, or $0.05 per diluted share, on revenues of $253.1 million for the quarter ended December 31, 2022. Excluding after tax special items consisting of CatchMark merger related expenses and an environmental charge, adjusted net income was $9.3 million, or $0.12 per diluted share for the fourth quarter of 2022. Net income was $39.2 million, or $0.58 per diluted share, on revenues of $248.4 million for the quarter ended December 31, 2021. Excluding a net loss on fire damage, adjusted net income was $39.9 million, or $0.59 per diluted share for the fourth quarter of 2021.
Net income for the full year 2022 was $333.9 million, or $4.58 per diluted share, on revenues of $1.3 billion. Excluding after tax special items consisting of a pension settlement charge, a gain on insurance recoveries, CatchMark merger related expenses and an environmental charge, adjusted net income was $350.0 million, or $4.80 per diluted share for 2022. Net income for the full year 2021 was $423.9 million, or $6.26 per diluted share, on revenues of $1.3 billion. Excluding a net gain on insurance recoveries, adjusted net income was $421.4 million, or $6.22 per diluted share for 2021.
2022 Highlights
- Generated Total Adjusted EBITDDA of $574.1 million and Total Adjusted EBITDDA margin of 43%
- Acquired CatchMark Timber Trust, Inc. adding nearly 350,000 acres of superior site index southern timberlands
- Also acquired 46,000 acres of well stocked timberlands in three bolt-on transactions
- Announced $131 million expansion and modernization of Waldo, Arkansas sawmill
- Rebuilt and restarted the large log line at the Ola, Arkansas sawmill
- Returned $208 million to shareholders through regular dividends and a Q4 special dividend
- Repurchased 1.2 million shares for $55 million, or $45 per share
- Maintained strong liquidity position of $643 million as of December 31, 2022
“Each of our businesses delivered exceptional results in 2022 leading to our second highest Total Adjusted EBITDDA on record and marking our third straight year of very strong financial performance,” said Eric Cremers, president and chief executive officer. “2022 was also a very active year for successfully deploying capital, including acquiring nearly 400,000 acres of high-quality timberland and committing to expand and modernize our Waldo, Arkansas sawmill. Additionally, we returned $263 million to shareholders in 2022, including $55 million of share repurchases and a $76 million special dividend. With our disciplined capital allocation strategy and our strong balance sheet and liquidity we are well positioned to continue increasing shareholder value,” stated Mr. Cremers.
Financial Highlights
(in millions, except per share data - unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q4 2021 |
|
|
|||
Revenues |
|
$ |
253.1 |
|
|
$ |
306.7 |
|
|
$ |
248.4 |
|
|
Net income |
|
$ |
3.8 |
|
|
$ |
46.0 |
|
|
$ |
39.2 |
|
|
Weighted average shares outstanding, diluted (in thousands) |
|
|
80,578 |
|
|
|
71,632 |
|
|
|
67,974 |
|
|
Net income per diluted share |
|
$ |
0.05 |
|
|
$ |
0.64 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted Net Income |
|
$ |
9.3 |
|
|
$ |
53.2 |
|
|
$ |
39.9 |
|
|
Adjusted Net Income Per Diluted Share |
|
$ |
0.12 |
|
|
$ |
0.74 |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Adjusted EBITDDA |
|
$ |
52.3 |
|
|
$ |
101.1 |
|
|
$ |
75.7 |
|
|
Dividends per share1 |
|
$ |
1.40 |
|
|
$ |
0.44 |
|
|
$ |
4.44 |
|
|
Net cash from operations |
|
$ |
33.5 |
|
|
$ |
80.3 |
|
|
$ |
51.6 |
|
|
Cash and cash equivalents |
|
$ |
343.8 |
|
|
$ |
484.0 |
|
|
$ |
296.2 |
|
|
1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 and $4.00 per share was paid in Q4 2022 and 2021, respectively. |
|||||||||||||
Business Performance: Q4 2022 vs. Q3 2022
Timberlands
Fourth Quarter 2022 Highlights
- Timberlands Adjusted EBITDDA decreased $13.9 million from Q3 2022
- Northern sawlog prices decreased 18% due primarily to lower indexed sawlog prices
- A seasonal decline in Southern harvest volumes was moderated by the first full quarter of CatchMark operations
- Southern sawlog prices increased 3%, reflecting the addition of strong CatchMark markets
- Higher log & haul costs were primarily due to inflationary pressures, including increased diesel costs
(in millions - unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
$ Change |
|
|||
Timberlands Revenues |
|
$ |
121.9 |
|
|
$ |
134.6 |
|
|
$ |
(12.7 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Timberlands Adjusted EBITDDA |
|
$ |
50.6 |
|
|
$ |
64.5 |
|
|
$ |
(13.9 |
) |
Wood Products
Fourth Quarter 2022 Highlights
- Wood Products Adjusted EBITDDA decreased $28.9 million from Q3 2022
- Average lumber price decreased 17% to $473 per MBF in Q4 2022
- Lumber production declined in Q4 2022 leading to lower fixed cost absorption
- Log costs decreased primarily due to lower index pricing in Idaho
- Plywood shipments and price realizations declined on lower demand
(in millions - unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
$ Change |
|
|||
Wood Products Revenues |
|
$ |
156.8 |
|
|
$ |
193.4 |
|
|
$ |
(36.6 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Wood Products Adjusted EBITDDA |
|
$ |
2.4 |
|
|
$ |
31.3 |
|
|
$ |
(28.9 |
) |
Real Estate
Fourth Quarter 2022 Highlights
- Real Estate Adjusted EBITDDA decreased $6.9 million from Q3 2022
- Sold 1,329 acres of rural land at an average price of $2,837 per acre
- Sold 24 residential lots at an average price of $132,000 per lot
- Sold 5 commercial acres at an average of $437,407 per acre
(in millions - unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
$ Change |
|
|||
Real Estate Revenues |
|
$ |
11.7 |
|
|
$ |
19.0 |
|
|
$ |
(7.3 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Real Estate Adjusted EBITDDA |
|
$ |
7.2 |
|
|
$ |
14.1 |
|
|
$ |
(6.9 |
) |
Outlook
“While higher interest rates and their expected impact on housing starts are expected to create headwinds for our operating results in 2023, we continue to remain very bullish on long-term housing-related fundamentals that drive demand in our business. We are encouraged by the recent increase in lumber prices and improvement in housing affordability. During 2023, we expect to harvest 7.7 million tons in our Timberlands segment, ship around 1.1 billion board feet in lumber in our Wood Products segment and sell about 18,000 rural acres and 150 residential lots in our Real Estate segment,” stated Mr. Cremers.
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, January 31, 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 February 7, 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; expected liquidity; the U.S. economic condition, including the housing market and long-term housing-related fundamentals; the success of the company’s business strategies; the strength of the timber markets associated with the merger with CatchMark Timber Trust, Inc.; the company’s capital allocation strategies; favorable capital structure and strong balance sheet; the company’s FY 2023 outlook relating to its timber harvest volumes, lumber shipment volumes and prices, and real estate sales; expected successful implementation of our Waldo, Arkansas sawmill modernization; and similar matters. Words such as “anticipate,” “assumes,” “believe,” “can,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “may,” “on track,” “plan,” “potential,” “predicting,” “project,” “schedule,” “seek,” “should,” “target,” “will,” 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 pandemic disease 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 shortages and 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 sawmill; the company’s ability to meet expectations for the Ola sawmill’s new large log line; 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 |
|
|
Year Ended |
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
||||||||
(in thousands, except per share amounts) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
Revenues |
|
$ |
253,140 |
|
|
$ |
306,693 |
|
|
$ |
248,406 |
|
|
$ |
1,330,780 |
|
|
$ |
1,337,435 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold |
|
|
214,765 |
|
|
|
220,876 |
|
|
|
178,163 |
|
|
|
806,822 |
|
|
|
715,846 |
|
Selling, general and administrative expenses |
|
|
20,922 |
|
|
|
18,878 |
|
|
|
18,650 |
|
|
|
76,506 |
|
|
|
73,432 |
|
CatchMark merger-related expenses |
|
|
1,318 |
|
|
|
26,007 |
|
|
|
— |
|
|
|
27,325 |
|
|
|
— |
|
Environmental charge |
|
|
5,550 |
|
|
|
— |
|
|
|
— |
|
|
|
5,550 |
|
|
|
— |
|
(Gain) loss on fire damage |
|
|
— |
|
|
|
(24,913 |
) |
|
|
1,033 |
|
|
|
(34,505 |
) |
|
|
(3,361 |
) |
|
|
|
242,555 |
|
|
|
240,848 |
|
|
|
197,846 |
|
|
|
881,698 |
|
|
|
785,917 |
|
Operating income |
|
|
10,585 |
|
|
|
65,845 |
|
|
|
50,560 |
|
|
|
449,082 |
|
|
|
551,518 |
|
Interest expense, net |
|
|
(8,807 |
) |
|
|
(8,280 |
) |
|
|
(8,861 |
) |
|
|
(27,400 |
) |
|
|
(29,275 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14,165 |
) |
|
|
— |
|
Non-operating pension and other postretirement costs |
|
|
(2,592 |
) |
|
|
(1,808 |
) |
|
|
(3,271 |
) |
|
|
(8,138 |
) |
|
|
(13,227 |
) |
Other |
|
|
(66 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
(Loss) income before income taxes |
|
|
(880 |
) |
|
|
55,756 |
|
|
|
38,428 |
|
|
|
399,312 |
|
|
|
509,016 |
|
Income taxes |
|
|
4,723 |
|
|
|
(9,801 |
) |
|
|
754 |
|
|
|
(65,412 |
) |
|
|
(85,156 |
) |
Net income |
|
$ |
3,843 |
|
|
$ |
45,955 |
|
|
$ |
39,182 |
|
|
$ |
333,900 |
|
|
$ |
423,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
$ |
0.05 |
|
|
$ |
0.64 |
|
|
$ |
0.58 |
|
|
$ |
4.59 |
|
|
$ |
6.29 |
|
Diluted |
|
$ |
0.05 |
|
|
$ |
0.64 |
|
|
$ |
0.58 |
|
|
$ |
4.58 |
|
|
$ |
6.26 |
|
Dividends per share1 |
|
$ |
1.40 |
|
|
$ |
0.44 |
|
|
$ |
4.44 |
|
|
$ |
2.72 |
|
|
$ |
5.67 |
|
Weighted-average shares outstanding (in thousands): |
|
|
|
|
|
. |
|
|
|
|
|
|
|
|||||||
Basic |
|
|
80,356 |
|
|
|
71,486 |
|
|
|
67,572 |
|
|
|
72,740 |
|
|
|
67,352 |
|
Diluted |
|
|
80,578 |
|
|
|
71,632 |
|
|
|
67,974 |
|
|
|
72,922 |
|
|
|
67,719 |
|
1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 and $4.00 per share was paid in Q4 2022 and 2021, respectively. |
||||||||||||||||||||
PotlatchDeltic Corporation |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
Unaudited |
||||||||
|
|
|
|
|||||
|
|
At December 31, |
|
|||||
(in thousands, except per share amounts) |
|
2022 |
|
|
2021 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
343,809 |
|
|
$ |
296,151 |
|
Customer receivables, net |
|
|
22,813 |
|
|
|
31,028 |
|
Inventories, net |
|
|
67,958 |
|
|
|
72,369 |
|
Other current assets |
|
|
36,955 |
|
|
|
21,630 |
|
Total current assets |
|
|
471,535 |
|
|
|
421,178 |
|
Property, plant and equipment, net |
|
|
318,184 |
|
|
|
292,320 |
|
Investment in real estate held for development and sale |
|
|
55,490 |
|
|
|
65,604 |
|
Timber and timberlands, net |
|
|
2,508,372 |
|
|
|
1,682,671 |
|
Intangible assets, net |
|
|
17,420 |
|
|
|
15,491 |
|
Other long-term assets |
|
|
179,554 |
|
|
|
57,951 |
|
Total assets |
|
$ |
3,550,555 |
|
|
$ |
2,535,215 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
94,861 |
|
|
$ |
78,209 |
|
Current portion of long-term debt |
|
|
39,979 |
|
|
|
42,977 |
|
Current portion of pension and other postretirement employee benefits |
|
|
4,926 |
|
|
|
4,993 |
|
Total current liabilities |
|
|
139,766 |
|
|
|
126,179 |
|
Long-term debt |
|
|
992,701 |
|
|
|
715,279 |
|
Pension and other postretirement employee benefits |
|
|
77,396 |
|
|
|
83,674 |
|
Deferred tax liabilities, net |
|
|
41,790 |
|
|
|
34,874 |
|
Other long-term obligations |
|
|
35,749 |
|
|
|
49,076 |
|
Total liabilities |
|
|
1,287,402 |
|
|
|
1,009,082 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock, $1 par value |
|
|
79,683 |
|
|
|
69,064 |
|
Additional paid-in capital |
|
|
2,294,797 |
|
|
|
1,781,217 |
|
Accumulated deficit |
|
|
(208,979 |
) |
|
|
(280,910 |
) |
Accumulated other comprehensive income (loss) |
|
|
97,652 |
|
|
|
(43,238 |
) |
Total stockholders’ equity |
|
|
2,263,153 |
|
|
|
1,526,133 |
|
Total liabilities and stockholders' equity |
|
$ |
3,550,555 |
|
|
$ |
2,535,215 |
|
PotlatchDeltic Corporation |
||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||
(in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
3,843 |
|
|
$ |
45,955 |
|
|
$ |
39,182 |
|
|
$ |
333,900 |
|
|
$ |
423,860 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
|
30,274 |
|
|
|
27,707 |
|
|
|
20,060 |
|
|
|
98,234 |
|
|
|
77,425 |
|
Basis of real estate sold |
|
|
4,897 |
|
|
|
6,845 |
|
|
|
4,627 |
|
|
|
29,921 |
|
|
|
27,360 |
|
Change in deferred taxes |
|
|
(3,898 |
) |
|
|
730 |
|
|
|
(3,196 |
) |
|
|
(5,257 |
) |
|
|
25 |
|
Pension and other postretirement benefits |
|
|
4,323 |
|
|
|
3,539 |
|
|
|
5,484 |
|
|
|
15,259 |
|
|
|
22,079 |
|
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,165 |
|
|
|
— |
|
Equity-based compensation expense |
|
|
2,356 |
|
|
|
11,717 |
|
|
|
2,262 |
|
|
|
18,497 |
|
|
|
8,607 |
|
(Gain) loss on fire damage |
|
|
— |
|
|
|
(24,913 |
) |
|
|
1,033 |
|
|
|
(34,505 |
) |
|
|
(3,361 |
) |
Other, net |
|
|
(780 |
) |
|
|
144 |
|
|
|
(270 |
) |
|
|
(1,235 |
) |
|
|
363 |
|
Change in working capital and operating-related activities, net |
|
|
(4,660 |
) |
|
|
(5,901 |
) |
|
|
(13,117 |
) |
|
|
9,411 |
|
|
|
(33,199 |
) |
Real estate development expenditures |
|
|
(1,116 |
) |
|
|
(1,796 |
) |
|
|
(2,795 |
) |
|
|
(8,102 |
) |
|
|
(9,229 |
) |
Funding of pension and other postretirement employee benefits |
|
|
(1,775 |
) |
|
|
(1,026 |
) |
|
|
(1,626 |
) |
|
|
(5,065 |
) |
|
|
(9,044 |
) |
Proceeds from insurance recoveries |
|
|
— |
|
|
|
17,250 |
|
|
|
— |
|
|
|
26,678 |
|
|
|
— |
|
Net cash from operating activities |
|
|
33,464 |
|
|
|
80,251 |
|
|
|
51,644 |
|
|
|
491,901 |
|
|
|
504,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property, plant and equipment additions |
|
|
(12,976 |
) |
|
|
(7,223 |
) |
|
|
(12,656 |
) |
|
|
(56,976 |
) |
|
|
(38,947 |
) |
Timberlands reforestation and roads |
|
|
(5,498 |
) |
|
|
(3,832 |
) |
|
|
(4,165 |
) |
|
|
(17,718 |
) |
|
|
(16,401 |
) |
Acquisition of timber and timberlands |
|
|
(14,029 |
) |
|
|
(53,863 |
) |
|
|
(17,616 |
) |
|
|
(110,110 |
) |
|
|
(20,066 |
) |
Proceeds from property insurance |
|
|
8,750 |
|
|
|
— |
|
|
|
1,750 |
|
|
|
8,750 |
|
|
|
15,000 |
|
Cash acquired in CatchMark merger |
|
|
— |
|
|
|
23,571 |
|
|
|
— |
|
|
|
23,571 |
|
|
|
— |
|
Other, net |
|
|
4,028 |
|
|
|
2,318 |
|
|
|
276 |
|
|
|
4,963 |
|
|
|
1,269 |
|
Net cash from investing activities |
|
|
(19,725 |
) |
|
|
(39,029 |
) |
|
|
(32,411 |
) |
|
|
(147,520 |
) |
|
|
(59,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Distributions to common stockholders |
|
|
(111,555 |
) |
|
|
(35,530 |
) |
|
|
(305,779 |
) |
|
|
(208,133 |
) |
|
|
(388,241 |
) |
Repurchase of common stock |
|
|
(50,022 |
) |
|
|
(371 |
) |
|
|
— |
|
|
|
(54,549 |
) |
|
|
— |
|
Proceeds from long-term debt |
|
|
40,000 |
|
|
|
277,500 |
|
|
|
40,000 |
|
|
|
317,500 |
|
|
|
40,000 |
|
Repayment of long-term debt |
|
|
(40,000 |
) |
|
|
(300,000 |
) |
|
|
(46,366 |
) |
|
|
(343,000 |
) |
|
|
(46,366 |
) |
Other, net |
|
|
(1,260 |
) |
|
|
(4,026 |
) |
|
|
(3,083 |
) |
|
|
(7,380 |
) |
|
|
(6,702 |
) |
Net cash from financing activities |
|
|
(162,837 |
) |
|
|
(62,427 |
) |
|
|
(315,228 |
) |
|
|
(295,562 |
) |
|
|
(401,309 |
) |
Change in cash, cash equivalents and restricted cash |
|
|
(149,098 |
) |
|
|
(21,205 |
) |
|
|
(295,995 |
) |
|
|
48,819 |
|
|
|
44,432 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
494,689 |
|
|
|
515,894 |
|
|
|
592,767 |
|
|
|
296,772 |
|
|
|
252,340 |
|
Cash, cash equivalents and restricted cash at end of period1 |
|
$ |
345,591 |
|
|
$ |
494,689 |
|
|
$ |
296,772 |
|
|
$ |
345,591 |
|
|
$ |
296,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1 Includes $1.8 million, $10.7 million and $0.6 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively, intended to be reinvested in timber and timberlands and classified as restricted cash in Other long-term assets in the Condensed Consolidated Balance Sheets. |
||||||||||||||||||||
PotlatchDeltic Corporation |
||||||||||||||||||||
Segment Information |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
Three months ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
||||||||
(in thousands) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
|
$ |
121,871 |
|
|
$ |
134,576 |
|
|
$ |
86,772 |
|
|
$ |
485,590 |
|
|
$ |
449,447 |
|
Wood Products |
|
|
156,805 |
|
|
|
193,431 |
|
|
|
174,158 |
|
|
|
912,612 |
|
|
|
988,888 |
|
Real Estate |
|
|
11,682 |
|
|
|
19,008 |
|
|
|
14,005 |
|
|
|
91,491 |
|
|
|
63,813 |
|
|
|
|
290,358 |
|
|
|
347,015 |
|
|
|
274,935 |
|
|
|
1,489,693 |
|
|
|
1,502,148 |
|
Intersegment Timberlands revenues |
|
|
(37,218 |
) |
|
|
(40,322 |
) |
|
|
(26,529 |
) |
|
|
(158,913 |
) |
|
|
(164,713 |
) |
Consolidated revenues |
|
$ |
253,140 |
|
|
$ |
306,693 |
|
|
$ |
248,406 |
|
|
$ |
1,330,780 |
|
|
$ |
1,337,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
|
$ |
50,567 |
|
|
$ |
64,482 |
|
|
$ |
41,804 |
|
|
$ |
249,373 |
|
|
$ |
262,944 |
|
Wood Products |
|
|
2,442 |
|
|
|
31,258 |
|
|
|
37,204 |
|
|
|
290,907 |
|
|
|
393,858 |
|
Real Estate |
|
|
7,178 |
|
|
|
14,140 |
|
|
|
10,007 |
|
|
|
73,258 |
|
|
|
47,457 |
|
Corporate |
|
|
(13,189 |
) |
|
|
(12,629 |
) |
|
|
(12,365 |
) |
|
|
(49,314 |
) |
|
|
(47,393 |
) |
Eliminations and adjustments |
|
|
5,335 |
|
|
|
3,839 |
|
|
|
(932 |
) |
|
|
9,931 |
|
|
|
(3,995 |
) |
Total Adjusted EBITDDA |
|
|
52,333 |
|
|
|
101,090 |
|
|
|
75,718 |
|
|
|
574,155 |
|
|
|
652,871 |
|
Interest expense, net2 |
|
|
(8,807 |
) |
|
|
(8,280 |
) |
|
|
(8,861 |
) |
|
|
(27,400 |
) |
|
|
(29,275 |
) |
Depreciation, depletion and amortization |
|
|
(29,862 |
) |
|
|
(27,329 |
) |
|
|
(19,477 |
) |
|
|
(96,700 |
) |
|
|
(75,633 |
) |
Basis of real estate sold |
|
|
(4,897 |
) |
|
|
(6,845 |
) |
|
|
(4,627 |
) |
|
|
(29,921 |
) |
|
|
(27,360 |
) |
CatchMark merger-related expenses |
|
|
(1,318 |
) |
|
|
(26,007 |
) |
|
|
— |
|
|
|
(27,325 |
) |
|
|
— |
|
Environmental charge |
|
|
(5,550 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,550 |
) |
|
|
— |
|
Gain (loss) on fire damage |
|
|
— |
|
|
|
24,913 |
|
|
|
(1,033 |
) |
|
|
34,505 |
|
|
|
3,361 |
|
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14,165 |
) |
|
|
— |
|
Non-operating pension and other postretirement employee benefits |
|
|
(2,592 |
) |
|
|
(1,808 |
) |
|
|
(3,271 |
) |
|
|
(8,138 |
) |
|
|
(13,227 |
) |
(Loss) gain on fixed assets |
|
|
(121 |
) |
|
|
23 |
|
|
|
(21 |
) |
|
|
(82 |
) |
|
|
(1,721 |
) |
Other |
|
|
(66 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
(Loss) income before income taxes |
|
$ |
(880 |
) |
|
$ |
55,756 |
|
|
$ |
38,428 |
|
|
$ |
399,312 |
|
|
$ |
509,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
|
$ |
18,845 |
|
|
$ |
16,963 |
|
|
$ |
11,611 |
|
|
$ |
59,532 |
|
|
$ |
45,403 |
|
Wood Products |
|
|
10,727 |
|
|
|
10,069 |
|
|
|
7,541 |
|
|
|
35,953 |
|
|
|
28,802 |
|
Real Estate |
|
|
177 |
|
|
|
175 |
|
|
|
163 |
|
|
|
695 |
|
|
|
640 |
|
Corporate |
|
|
113 |
|
|
|
122 |
|
|
|
162 |
|
|
|
520 |
|
|
|
788 |
|
|
|
|
29,862 |
|
|
|
27,329 |
|
|
|
19,477 |
|
|
|
96,700 |
|
|
|
75,633 |
|
Bond discounts and deferred loan fees2 |
|
|
412 |
|
|
|
378 |
|
|
|
583 |
|
|
|
1,534 |
|
|
|
1,792 |
|
Total depreciation, depletion and amortization |
|
$ |
30,274 |
|
|
$ |
27,707 |
|
|
$ |
20,060 |
|
|
$ |
98,234 |
|
|
$ |
77,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate |
|
$ |
4,899 |
|
|
$ |
6,845 |
|
|
$ |
4,630 |
|
|
$ |
29,932 |
|
|
$ |
27,381 |
|
Eliminations and adjustments |
|
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
(11 |
) |
|
|
(21 |
) |
Total basis of real estate sold |
|
$ |
4,897 |
|
|
$ |
6,845 |
|
|
$ |
4,627 |
|
|
$ |
29,921 |
|
|
$ |
27,360 |
|
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 |
|
|
Year ended |
|
||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
||||||||
(in thousands, except per share amounts) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|||||
Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (GAAP) |
|
$ |
3,843 |
|
|
$ |
45,955 |
|
|
$ |
39,182 |
|
|
$ |
333,900 |
|
|
$ |
423,860 |
|
Interest, net |
|
|
8,807 |
|
|
|
8,280 |
|
|
|
8,861 |
|
|
|
27,400 |
|
|
|
29,275 |
|
Income taxes |
|
|
(4,723 |
) |
|
|
9,801 |
|
|
|
(754 |
) |
|
|
65,412 |
|
|
|
85,156 |
|
Depreciation, depletion and amortization |
|
|
29,862 |
|
|
|
27,329 |
|
|
|
19,477 |
|
|
|
96,700 |
|
|
|
75,633 |
|
Basis of real estate sold |
|
|
4,897 |
|
|
|
6,845 |
|
|
|
4,627 |
|
|
|
29,921 |
|
|
|
27,360 |
|
CatchMark merger-related expenses |
|
|
1,318 |
|
|
|
26,007 |
|
|
|
— |
|
|
|
27,325 |
|
|
|
— |
|
(Gain) loss on fire damage |
|
|
— |
|
|
|
(24,913 |
) |
|
|
1,033 |
|
|
|
(34,505 |
) |
|
|
(3,361 |
) |
Environmental charge |
|
|
5,550 |
|
|
|
— |
|
|
|
— |
|
|
|
5,550 |
|
|
|
— |
|
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,165 |
|
|
|
— |
|
Non-operating pension and other postretirement benefit costs |
|
|
2,592 |
|
|
|
1,808 |
|
|
|
3,271 |
|
|
|
8,138 |
|
|
|
13,227 |
|
Loss (gain) on fixed assets |
|
|
121 |
|
|
|
(23 |
) |
|
|
21 |
|
|
|
82 |
|
|
|
1,721 |
|
Other |
|
|
66 |
|
|
|
1 |
|
|
|
— |
|
|
|
67 |
|
|
|
— |
|
Total Adjusted EBITDDA |
|
$ |
52,333 |
|
|
$ |
101,090 |
|
|
$ |
75,718 |
|
|
$ |
574,155 |
|
|
$ |
652,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (GAAP) |
|
$ |
3,843 |
|
|
$ |
45,955 |
|
|
$ |
39,182 |
|
|
$ |
333,900 |
|
|
$ |
423,860 |
|
Special items after tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CatchMark merger-related expenses |
|
|
1,318 |
|
|
|
25,823 |
|
|
|
— |
|
|
|
27,140 |
|
|
|
— |
|
(Gain) loss on fire damage |
|
|
— |
|
|
|
(18,559 |
) |
|
|
748 |
|
|
|
(25,706 |
) |
|
|
(2,504 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,553 |
|
|
|
— |
|
Environmental charge |
|
|
4,135 |
|
|
|
— |
|
|
|
— |
|
|
|
4,135 |
|
|
|
— |
|
Adjusted Net Income |
|
$ |
9,296 |
|
|
$ |
53,219 |
|
|
$ |
39,930 |
|
|
$ |
350,022 |
|
|
$ |
421,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted Net Income Per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income per diluted share (GAAP) |
|
$ |
0.05 |
|
|
$ |
0.64 |
|
|
$ |
0.58 |
|
|
$ |
4.58 |
|
|
$ |
6.26 |
|
Special items after tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CatchMark merger-related expenses |
|
|
0.02 |
|
|
|
0.36 |
|
|
|
— |
|
|
|
0.37 |
|
|
|
— |
|
(Gain) loss on fire damage |
|
|
— |
|
|
|
(0.26 |
) |
|
|
0.01 |
|
|
|
(0.35 |
) |
|
|
(0.04 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.14 |
|
|
|
— |
|
Environmental charge |
|
|
0.05 |
|
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
Adjusted Net Income Per Diluted Share |
|
$ |
0.12 |
|
|
$ |
0.74 |
|
|
$ |
0.59 |
|
|
$ |
4.80 |
|
|
$ |
6.22 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230130005621/en/
Contacts
(Investors)
Jerry Richards
509.835.1521
(Media)
Anna Torma
509.835.1558
