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, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231030652243/en/
Investors Wayne Wasechek 509.835.1521
Media Anna Torma 509.835.1558
Grafico Azioni PotlatchDeltic (NASDAQ:PCH)
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Grafico Azioni PotlatchDeltic (NASDAQ:PCH)
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Da Giu 2023 a Giu 2024