PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $23.7 million, or $0.29 per diluted share, on revenues of $265.5 million for the quarter ended September 30, 2023. Excluding an after-tax gain on insurance recoveries, adjusted net income was $11.4 million, or $0.14 per diluted share for the third quarter of 2023. Net income was $46.0 million, or $0.64 per diluted share, on revenues of $306.7 million for the quarter ended September 30, 2022. Excluding an after-tax gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $53.2 million, or $0.74 per diluted share, for the third quarter of 2022.
Third Quarter 2023 Highlights
- Generated Total Adjusted EBITDDA of $56.3 million and Total Adjusted EBITDDA margin of 21.2%
- Repurchased 283,000 shares for $12.7 million, or $45 per share
- Maintained strong liquidity position of $602 million as of September 30, 2023
“Our third quarter 2023 results reflect improved financial performance across all of our business segments,” said Eric Cremers, president and chief executive officer. “Each of our teams delivered solid results amid the backdrop of higher interest rates and an uncertain macroeconomic environment. During the third quarter, we continued to focus on strategically deploying our capital including returning $49 million to shareholders in the form of dividends and share repurchases. We remain positive on long-term housing-related fundamentals that drive demand in our business. Our balance sheet and liquidity remains strong, providing flexibility to navigate the current economic environment and grow shareholder value over the long-term," stated Mr. Cremers.
Financial Highlights
($ in millions, except per share data) |
Q3 2023 |
|
Q2 2023 |
|
Q3 2022 |
|||||||
Revenues |
|
$ |
265.5 |
|
|
$ |
246.1 |
|
|
$ |
306.7 |
|
Net income |
|
$ |
23.7 |
|
|
$ |
22.3 |
|
|
$ |
46.0 |
|
Weighted average shares outstanding, diluted (in thousands) |
|
|
80,379 |
|
|
|
80,416 |
|
|
|
71,623 |
|
Net income per diluted share |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted Net Income1 |
|
$ |
11.4 |
|
|
$ |
5.2 |
|
|
$ |
53.2 |
|
Adjusted Net Income per diluted share1 |
|
$ |
0.14 |
|
|
$ |
0.06 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total Adjusted EBITDDA1 |
|
$ |
56.3 |
|
|
$ |
45.5 |
|
|
$ |
101.1 |
|
Total Adjusted EBITDDA Margin1 |
|
|
21.2 |
% |
|
|
18.5 |
% |
|
|
33.0 |
% |
Dividends per share2 |
|
$ |
0.45 |
|
|
$ |
0.45 |
|
|
$ |
0.44 |
|
Net cash from operations |
|
$ |
41.0 |
|
|
$ |
37.2 |
|
|
$ |
80.3 |
|
Cash and cash equivalents |
|
$ |
302.8 |
|
|
$ |
331.2 |
|
|
$ |
484.0 |
|
|
|
|
|
|
|
|
|
|
|
|||
1 Adjusted Net Income, Adjusted Net Income per diluted share, Total Adjusted EBITDDA and Total Adjusted EBITDDA Margin are non-GAAP measures. Refer to "Non-GAAP Measures" and "Non-GAAP Reconciliations" below for more information and reconciliations to GAAP, where applicable. |
||||||||||||
2 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022. |
||||||||||||
Business Performance: Q3 2023 vs. Q2 2023
Timberlands
Third Quarter 2023 Highlights
- Timberlands Adjusted EBITDDA increased $12.6 million from Q2 2023
- Northern and Southern harvest volumes increased seasonally
- Northern sawlog prices increased 12% primarily due to higher indexed sawlog prices
- Southern sawlog and pulpwood prices were stable
($ in millions) |
|
Q3 2023 |
|
Q2 2023 |
|
$ Change |
||||||
Timberlands Revenues |
|
$ |
109.8 |
|
|
$ |
88.7 |
|
|
$ |
21.1 |
|
|
|
|
|
|
|
|
|
|
|
|||
Timberlands Adjusted EBITDDA1 |
|
$ |
42.0 |
|
|
$ |
29.4 |
|
|
$ |
12.6 |
|
|
|
|
|
|
|
|
|
|
|
|||
1 Refer to "Segment Information" below for additional information. |
||||||||||||
Wood Products
Third Quarter 2023 Highlights
- Wood Products Adjusted EBITDDA increased $3.2 million from Q2 2023
- Average lumber price increased 1% to $481 per MBF, or thousand board feet, in Q3 2023
- Per-unit log costs decreased on lower log costs and improved recoveries
($ in millions) |
|
Q3 2023 |
|
Q2 2023 |
|
$ Change |
||||||
Wood Products Revenues |
|
$ |
165.1 |
|
|
$ |
167.7 |
|
|
$ |
(2.6 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Wood Products Adjusted EBITDDA1 |
|
$ |
15.1 |
|
|
$ |
11.9 |
|
|
$ |
3.2 |
|
|
|
|
|
|
|
|
|
|
|
|||
1 Refer to "Segment Information" below for additional information. |
||||||||||||
Real Estate
Third Quarter 2023 Highlights
- Real Estate Adjusted EBITDDA increased $2.0 million from Q2 2023
- Sold 3,275 acres of rural land at an average price of $3,546 / acre
- Sold 32 residential lots at an average price of $89,122 / lot
- Sold 1 commercial lot for $1.4 million, or $972,222 / acre
($ in millions) |
|
Q3 2023 |
|
Q2 2023 |
|
$ Change |
||||||
Real Estate Revenues |
|
$ |
19.2 |
|
|
$ |
17.0 |
|
|
$ |
2.2 |
|
|
|
|
|
|
|
|
|
|
|
|||
Real Estate Adjusted EBITDDA1 |
|
$ |
14.2 |
|
|
$ |
12.2 |
|
|
$ |
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|||
1 Refer to "Segment Information" below for additional information. |
||||||||||||
Non-GAAP Measures
This press release includes certain financial measures that are not in accordance with accounting principles generally accepted in the United States (GAAP). Management believes that these non-GAAP measures, when read in conjunction with our GAAP financial statements, provide useful information to investors and other interested parties as described below. The presentation of these non-GAAP financial measures should be considered only as supplemental to, are not intended to be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may not be the same as or comparable to other similarly titled non-GAAP measures presented by other companies due to potential inconsistencies in methods of calculation.
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, net of tax, that management believes impact the ability to compare the performance of our business, either period-over-period or with other businesses.
Total Adjusted EBITDDA and Total Adjusted EBITDDA Margin are non-GAAP measures that remove the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis and can be used to evaluate the operational performance of assets under management.
We define Total Adjusted EBITDDA Margin as Total Adjusted EBITDDA divided by Revenues.
Reconciliations of Total Adjusted EBITDDA, Adjusted Net Income and Adjusted Net Income per diluted share to their most comparable GAAP measures are set forth in the accompanying “Non-GAAP Reconciliations” at the end of this release.
Conference Call Information
A live conference call and webcast will be held Tuesday, October 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 above website.
A replay of the conference call will be available two hours following the call until November 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 Corporation (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; disciplined and opportunistic capital allocation strategy; and similar matters. Words such as “over the long term,” 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, such as 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; 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 |
|
|
Nine Months Ended |
|
||||||||||||||||
|
September 30, |
|
|
June 30, |
|
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
||||||
(in thousands, except per share amounts) |
2023 |
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||||
Revenues |
$ |
265,509 |
|
|
$ |
246,101 |
|
|
|
$ |
306,693 |
|
|
$ |
769,572 |
|
|
$ |
1,077,640 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of goods sold |
|
226,303 |
|
|
|
215,063 |
|
|
|
|
220,876 |
|
|
|
665,716 |
|
|
|
592,057 |
|
|
Selling, general and administrative expenses |
|
19,303 |
|
|
|
17,585 |
|
|
|
|
18,878 |
|
|
|
55,118 |
|
|
|
55,584 |
|
|
CatchMark merger-related expenses |
|
— |
|
|
|
244 |
|
|
|
|
|
26,007 |
|
|
|
2,453 |
|
|
|
26,007 |
|
Gain on fire damage |
|
(16,326 |
) |
|
|
(23,110 |
) |
|
|
|
(24,913 |
) |
|
|
(39,436 |
) |
|
|
(34,505 |
) |
|
|
|
229,280 |
|
|
|
209,782 |
|
|
|
|
240,848 |
|
|
|
683,851 |
|
|
|
639,143 |
|
|
Operating income |
|
36,229 |
|
|
|
36,319 |
|
|
|
|
65,845 |
|
|
|
85,721 |
|
|
|
438,497 |
|
|
Interest expense, net |
|
(7,971 |
) |
|
|
(7,613 |
) |
|
|
|
(8,280 |
) |
|
|
(15,783 |
) |
|
|
(18,593 |
) |
|
Pension settlement charge |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
(14,165 |
) |
|
Non-operating pension and other postretirement employee benefit costs |
|
(228 |
) |
|
|
(229 |
) |
|
|
|
(1,808 |
) |
|
|
(685 |
) |
|
|
(5,546 |
) |
|
Other |
|
370 |
|
|
|
258 |
|
|
|
|
|
(1 |
) |
|
|
638 |
|
|
|
(1 |
) |
Income before income taxes |
|
28,400 |
|
|
|
28,735 |
|
|
|
|
55,756 |
|
|
|
69,891 |
|
|
|
400,192 |
|
|
Income taxes |
|
(4,725 |
) |
|
|
(6,429 |
) |
|
|
|
(9,801 |
) |
|
|
(7,650 |
) |
|
|
(70,135 |
) |
|
Net income |
$ |
23,675 |
|
|
$ |
22,306 |
|
|
|
$ |
45,955 |
|
|
$ |
62,241 |
|
|
$ |
330,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
$ |
0.30 |
|
|
$ |
0.28 |
|
|
|
$ |
0.64 |
|
|
$ |
0.78 |
|
|
$ |
4.70 |
|
|
Diluted |
$ |
0.29 |
|
|
$ |
0.28 |
|
|
|
$ |
0.64 |
|
|
$ |
0.78 |
|
|
$ |
4.69 |
|
|
Dividends per share |
$ |
0.45 |
|
|
$ |
0.45 |
|
|
|
$ |
0.44 |
|
|
$ |
1.35 |
|
|
$ |
1.32 |
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic |
|
80,132 |
|
|
|
80,145 |
|
|
|
|
71,486 |
|
|
|
80,102 |
|
|
|
70,171 |
|
|
Diluted |
|
80,379 |
|
|
|
80,416 |
|
|
|
|
71,632 |
|
|
|
80,279 |
|
|
|
70,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
PotlatchDeltic Corporation Condensed Consolidated Balance Sheets Unaudited |
||||||||
(in thousands, except per share amounts) |
|
September 30, 2023 |
|
December 31, 2022 |
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
302,799 |
|
|
$ |
343,809 |
|
Customer receivables, net |
|
|
30,762 |
|
|
|
22,813 |
|
Inventories, net |
|
|
82,537 |
|
|
|
67,958 |
|
Other current assets |
|
|
56,606 |
|
|
|
36,955 |
|
Total current assets |
|
|
472,704 |
|
|
|
471,535 |
|
Property, plant and equipment, net |
|
|
334,350 |
|
|
|
318,184 |
|
Investment in real estate held for development and sale |
|
|
55,928 |
|
|
|
55,490 |
|
Timber and timberlands, net |
|
|
2,459,508 |
|
|
|
2,508,372 |
|
Intangible assets, net |
|
|
16,085 |
|
|
|
17,420 |
|
Other long-term assets |
|
|
209,703 |
|
|
|
179,554 |
|
Total assets |
|
$ |
3,548,278 |
|
|
$ |
3,550,555 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
115,334 |
|
|
$ |
94,861 |
|
Current portion of long-term debt |
|
|
39,996 |
|
|
|
39,979 |
|
Current portion of pension and other postretirement employee benefits |
|
|
4,926 |
|
|
|
4,926 |
|
Total current liabilities |
|
|
160,256 |
|
|
|
139,766 |
|
Long-term debt |
|
|
993,562 |
|
|
|
992,701 |
|
Pension and other postretirement employee benefits |
|
|
80,581 |
|
|
|
77,396 |
|
Deferred tax liabilities, net |
|
|
38,419 |
|
|
|
41,790 |
|
Other long-term obligations |
|
|
36,363 |
|
|
|
35,749 |
|
Total liabilities |
|
|
1,309,181 |
|
|
|
1,287,402 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Common stock, $1 par value, 200,000 and 100,000 shares authorized and 79,628 and 79,683 shares issued and outstanding |
|
|
79,628 |
|
|
|
79,683 |
|
Additional paid-in capital |
|
|
2,301,301 |
|
|
|
2,294,797 |
|
Accumulated deficit |
|
|
(267,725 |
) |
|
|
(208,979 |
) |
Accumulated other comprehensive income |
|
|
125,893 |
|
|
|
97,652 |
|
Total stockholders’ equity |
|
|
2,239,097 |
|
|
|
2,263,153 |
|
Total liabilities and stockholders' equity |
|
$ |
3,548,278 |
|
|
$ |
3,550,555 |
|
|
|
|
|
|
|
|
||
PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited |
|||||||||||||||||||
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
(in thousands) |
September 30,
|
|
|
June 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
$ |
23,675 |
|
|
$ |
22,306 |
|
|
$ |
45,955 |
|
|
$ |
62,241 |
|
|
$ |
330,057 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
30,658 |
|
|
|
27,496 |
|
|
|
27,707 |
|
|
|
90,327 |
|
|
|
67,960 |
|
Basis of real estate sold |
|
6,109 |
|
|
|
4,884 |
|
|
|
6,845 |
|
|
|
21,624 |
|
|
|
25,024 |
|
Change in deferred taxes |
|
(1,764 |
) |
|
|
(2,609 |
) |
|
|
730 |
|
|
|
(3,979 |
) |
|
|
(1,359 |
) |
Pension and other postretirement employee benefits |
|
1,610 |
|
|
|
1,612 |
|
|
|
3,539 |
|
|
|
4,833 |
|
|
|
10,936 |
|
Pension settlement charge |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,165 |
|
Equity-based compensation expense |
|
2,616 |
|
|
|
1,577 |
|
|
|
11,717 |
|
|
|
6,472 |
|
|
|
16,141 |
|
Gain on fire damage |
|
(16,326 |
) |
|
|
(23,110 |
) |
|
|
(24,913 |
) |
|
|
(39,436 |
) |
|
|
(34,505 |
) |
Interest received under swaps with other-than-insignificant financing element |
|
(6,884 |
) |
|
|
(6,313 |
) |
|
|
— |
|
|
|
(18,651 |
) |
|
|
— |
|
Other, net |
|
1,792 |
|
|
|
1,911 |
|
|
|
144 |
|
|
|
5,648 |
|
|
|
(455 |
) |
Change in working capital and operating-related activities, net |
|
(9,773 |
) |
|
|
2,871 |
|
|
|
(5,901 |
) |
|
|
(24,107 |
) |
|
|
14,071 |
|
Real estate development expenditures |
|
(2,939 |
) |
|
|
(1,896 |
) |
|
|
(1,796 |
) |
|
|
(7,243 |
) |
|
|
(6,986 |
) |
Funding of pension and other postretirement employee benefits |
|
128 |
|
|
|
(1,217 |
) |
|
|
(1,026 |
) |
|
|
(2,176 |
) |
|
|
(3,290 |
) |
Proceeds from insurance recoveries |
|
12,049 |
|
|
|
9,706 |
|
|
|
17,250 |
|
|
|
21,755 |
|
|
|
26,678 |
|
Net cash from operating activities |
|
40,951 |
|
|
|
37,218 |
|
|
|
80,251 |
|
|
|
117,308 |
|
|
|
458,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property, plant and equipment additions |
|
(17,933 |
) |
|
|
(5,880 |
) |
|
|
(7,223 |
) |
|
|
(28,068 |
) |
|
|
(44,000 |
) |
Timberlands reforestation and roads |
|
(6,299 |
) |
|
|
(4,596 |
) |
|
|
(3,832 |
) |
|
|
(17,013 |
) |
|
|
(12,220 |
) |
Acquisition of timber and timberlands |
|
(55 |
) |
|
|
(1,621 |
) |
|
|
(53,863 |
) |
|
|
(1,676 |
) |
|
|
(96,081 |
) |
Proceeds from property insurance |
|
1,356 |
|
|
|
— |
|
|
|
— |
|
|
|
1,356 |
|
|
|
— |
|
Cash acquired in CatchMark merger |
|
— |
|
|
|
— |
|
|
|
23,571 |
|
|
|
— |
|
|
|
23,571 |
|
Interest received under swaps with other-than-insignificant financing element |
|
6,375 |
|
|
|
5,849 |
|
|
|
— |
|
|
|
17,279 |
|
|
|
— |
|
Other, net |
|
36 |
|
|
|
242 |
|
|
|
2,318 |
|
|
|
700 |
|
|
|
935 |
|
Net cash from investing activities |
|
(16,520 |
) |
|
|
(6,006 |
) |
|
|
(39,029 |
) |
|
|
(27,422 |
) |
|
|
(127,795 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Distributions to common stockholders |
|
(35,960 |
) |
|
|
(35,958 |
) |
|
|
(35,530 |
) |
|
|
(107,880 |
) |
|
|
(96,578 |
) |
Repurchase of common stock |
|
(11,012 |
) |
|
|
(394 |
) |
|
|
(371 |
) |
|
|
(11,406 |
) |
|
|
(4,527 |
) |
Proceeds from issuance of long-term debt |
|
— |
|
|
|
— |
|
|
|
277,500 |
|
|
|
— |
|
|
|
277,500 |
|
Repayment of long-term debt |
|
— |
|
|
|
— |
|
|
|
(300,000 |
) |
|
|
— |
|
|
|
(303,000 |
) |
Other, net |
|
(360 |
) |
|
|
(1,117 |
) |
|
|
(4,026 |
) |
|
|
(2,315 |
) |
|
|
(6,120 |
) |
Net cash from financing activities |
|
(47,332 |
) |
|
|
(37,469 |
) |
|
|
(62,427 |
) |
|
|
(121,601 |
) |
|
|
(132,725 |
) |
Change in cash, cash equivalents and restricted cash |
|
(22,901 |
) |
|
|
(6,257 |
) |
|
|
(21,205 |
) |
|
|
(31,715 |
) |
|
|
197,917 |
|
Cash, cash equivalents and restricted cash, beginning |
|
336,777 |
|
|
|
343,034 |
|
|
|
515,894 |
|
|
|
345,591 |
|
|
|
296,772 |
|
Cash, cash equivalents and restricted cash, ending1 |
$ |
313,876 |
|
|
$ |
336,777 |
|
|
$ |
494,689 |
|
|
$ |
313,876 |
|
|
$ |
494,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1 Includes $11.1 million, $5.6 million and $10.7 million at September 30, 2023, June 30, 2023 and September 30, 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 |
|
|
Nine Months Ended |
|
||||||||||||||
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|||||
(in thousands) |
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
$ |
109,808 |
|
|
$ |
88,617 |
|
|
$ |
134,576 |
|
|
$ |
313,663 |
|
|
$ |
363,719 |
|
Wood Products |
|
165,108 |
|
|
|
167,669 |
|
|
|
193,431 |
|
|
|
485,572 |
|
|
|
755,806 |
|
Real Estate |
|
19,152 |
|
|
|
17,064 |
|
|
|
19,008 |
|
|
|
60,079 |
|
|
|
79,809 |
|
|
|
294,068 |
|
|
|
273,350 |
|
|
|
347,015 |
|
|
|
859,314 |
|
|
|
1,199,334 |
|
Intersegment Timberlands revenues |
|
(28,559 |
) |
|
|
(27,243 |
) |
|
|
(40,322 |
) |
|
|
(89,736 |
) |
|
|
(121,694 |
) |
Other intersegment revenues |
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
Consolidated revenues |
$ |
265,509 |
|
|
$ |
246,101 |
|
|
$ |
306,693 |
|
|
$ |
769,572 |
|
|
$ |
1,077,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
$ |
42,062 |
|
|
$ |
29,316 |
|
|
$ |
64,482 |
|
|
$ |
118,017 |
|
|
$ |
198,806 |
|
Wood Products |
|
15,039 |
|
|
|
11,967 |
|
|
|
31,258 |
|
|
|
26,975 |
|
|
|
288,465 |
|
Real Estate |
|
14,165 |
|
|
|
12,237 |
|
|
|
14,140 |
|
|
|
45,867 |
|
|
|
66,080 |
|
Corporate |
|
(11,696 |
) |
|
|
(10,521 |
) |
|
|
(12,629 |
) |
|
|
(32,958 |
) |
|
|
(36,125 |
) |
Eliminations and adjustments |
|
(3,292 |
) |
|
|
2,446 |
|
|
|
3,839 |
|
|
|
1,599 |
|
|
|
4,596 |
|
Total Adjusted EBITDDA |
|
56,278 |
|
|
|
45,445 |
|
|
|
101,090 |
|
|
|
159,500 |
|
|
|
521,822 |
|
Interest expense, net2 |
|
(7,971 |
) |
|
|
(7,613 |
) |
|
|
(8,280 |
) |
|
|
(15,783 |
) |
|
|
(18,593 |
) |
Depreciation, depletion and amortization |
|
(30,248 |
) |
|
|
(27,087 |
) |
|
|
(27,329 |
) |
|
|
(89,099 |
) |
|
|
(66,838 |
) |
Basis of real estate sold |
|
(6,109 |
) |
|
|
(4,884 |
) |
|
|
(6,845 |
) |
|
|
(21,624 |
) |
|
|
(25,024 |
) |
CatchMark merger-related expenses |
|
— |
|
|
|
(244 |
) |
|
|
(26,007 |
) |
|
|
(2,453 |
) |
|
|
(26,007 |
) |
Gain on fire damage |
|
16,326 |
|
|
|
23,110 |
|
|
|
24,913 |
|
|
|
39,436 |
|
|
|
34,505 |
|
Pension settlement charge |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14,165 |
) |
Non-operating pension and other postretirement employee benefits |
|
(228 |
) |
|
|
(229 |
) |
|
|
(1,808 |
) |
|
|
(685 |
) |
|
|
(5,546 |
) |
(Loss) gain on disposal of fixed assets |
|
(18 |
) |
|
|
(21 |
) |
|
|
23 |
|
|
|
(39 |
) |
|
|
39 |
|
Other |
|
370 |
|
|
|
258 |
|
|
|
(1 |
) |
|
|
638 |
|
|
|
(1 |
) |
Income before income taxes |
$ |
28,400 |
|
|
$ |
28,735 |
|
|
$ |
55,756 |
|
|
$ |
69,891 |
|
|
$ |
400,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
$ |
19,267 |
|
|
$ |
15,895 |
|
|
$ |
16,963 |
|
|
$ |
55,623 |
|
|
$ |
40,687 |
|
Wood Products |
|
10,740 |
|
|
|
10,948 |
|
|
|
10,069 |
|
|
|
32,723 |
|
|
|
25,226 |
|
Real Estate |
|
120 |
|
|
|
121 |
|
|
|
175 |
|
|
|
397 |
|
|
|
518 |
|
Corporate |
|
121 |
|
|
|
123 |
|
|
|
122 |
|
|
|
356 |
|
|
|
407 |
|
|
|
30,248 |
|
|
|
27,087 |
|
|
|
27,329 |
|
|
|
89,099 |
|
|
|
66,838 |
|
Bond discounts and deferred loan fees2 |
|
410 |
|
|
|
409 |
|
|
|
378 |
|
|
|
1,228 |
|
|
|
1,122 |
|
Total depreciation, depletion and amortization |
$ |
30,658 |
|
|
$ |
27,496 |
|
|
$ |
27,707 |
|
|
$ |
90,327 |
|
|
$ |
67,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate |
$ |
6,111 |
|
|
$ |
4,887 |
|
|
$ |
6,845 |
|
|
$ |
21,629 |
|
|
$ |
25,033 |
|
Eliminations and adjustments |
|
(2 |
) |
|
|
(3 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(9 |
) |
Total basis of real estate sold |
$ |
6,109 |
|
|
$ |
4,884 |
|
|
$ |
6,845 |
|
|
$ |
21,624 |
|
|
$ |
25,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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 Non-GAAP Reconciliations Unaudited |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|||||
(in thousands, except per share amount) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Total Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (GAAP) |
|
$ |
23,675 |
|
|
$ |
22,306 |
|
|
$ |
45,955 |
|
|
$ |
62,241 |
|
|
$ |
330,057 |
|
Interest expense, net |
|
|
7,971 |
|
|
|
7,613 |
|
|
|
8,280 |
|
|
|
15,783 |
|
|
|
18,593 |
|
Income taxes |
|
|
4,725 |
|
|
|
6,429 |
|
|
|
9,801 |
|
|
|
7,650 |
|
|
|
70,135 |
|
Depreciation, depletion and amortization |
|
|
30,248 |
|
|
|
27,087 |
|
|
|
27,329 |
|
|
|
89,099 |
|
|
|
66,838 |
|
Basis of real estate sold |
|
|
6,109 |
|
|
|
4,884 |
|
|
|
6,845 |
|
|
|
21,624 |
|
|
|
25,024 |
|
CatchMark merger-related expenses |
|
|
— |
|
|
|
244 |
|
|
|
26,007 |
|
|
|
2,453 |
|
|
|
26,007 |
|
Gain on fire damage |
|
|
(16,326 |
) |
|
|
(23,110 |
) |
|
|
(24,913 |
) |
|
|
(39,436 |
) |
|
|
(34,505 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,165 |
|
Non-operating pension and other postretirement benefit costs |
|
|
228 |
|
|
|
229 |
|
|
|
1,808 |
|
|
|
685 |
|
|
|
5,546 |
|
Loss (gain) on disposal of fixed assets |
|
|
18 |
|
|
|
21 |
|
|
|
(23 |
) |
|
|
39 |
|
|
|
(39 |
) |
Other |
|
|
(370 |
) |
|
|
(258 |
) |
|
|
1 |
|
|
|
(638 |
) |
|
|
1 |
|
Total Adjusted EBITDDA |
|
$ |
56,278 |
|
|
$ |
45,445 |
|
|
$ |
101,090 |
|
|
$ |
159,500 |
|
|
$ |
521,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted Net Income1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (GAAP) |
|
$ |
23,675 |
|
|
$ |
22,306 |
|
|
$ |
45,955 |
|
|
$ |
62,241 |
|
|
$ |
330,057 |
|
Special items after tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CatchMark merger-related expenses |
|
|
— |
|
|
|
244 |
|
|
|
25,823 |
|
|
|
2,453 |
|
|
|
25,823 |
|
Gain on fire damage |
|
|
(12,244 |
) |
|
|
(17,333 |
) |
|
|
(18,559 |
) |
|
|
(29,577 |
) |
|
|
(25,706 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,553 |
|
Adjusted Net Income |
|
$ |
11,431 |
|
|
$ |
5,217 |
|
|
$ |
53,219 |
|
|
$ |
35,117 |
|
|
$ |
340,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted Net Income Per Diluted Share1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income per diluted share (GAAP) |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.64 |
|
|
$ |
0.78 |
|
|
$ |
4.69 |
|
Special items after tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CatchMark merger-related expenses |
|
|
— |
|
|
|
— |
|
|
|
0.36 |
|
|
|
0.03 |
|
|
|
0.37 |
|
Gain on fire damage |
|
|
(0.15 |
) |
|
|
(0.22 |
) |
|
|
(0.26 |
) |
|
|
(0.37 |
) |
|
|
(0.37 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.15 |
|
Adjusted Net Income Per Diluted Share |
|
$ |
0.14 |
|
|
$ |
0.06 |
|
|
$ |
0.74 |
|
|
$ |
0.44 |
|
|
$ |
4.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1 See "Non-GAAP Measures" above for further details on management's use of these measures. |
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