PotlatchDeltic Corporation (Nasdaq: PCH) today reported a net
loss of $0.3 million, or $0.00 per diluted share, on revenues of
$228.1 million for the quarter ended March 31, 2024. Net income was
$16.3 million, or $0.20 per diluted share, on revenues of $258.0
million for the quarter ended March 31, 2023. Excluding CatchMark
merger-related expenses, adjusted net income was $18.5 million, or
$0.23 per diluted share, for the first quarter of 2023.
First Quarter 2024 Highlights
- Generated Total Adjusted EBITDDA of $29.7 million and Total
Adjusted EBITDDA margin of 13%
- Acquired 16,000 acres of high-quality mature Southern
timberlands for $31 million, or $1,900/acre
- Announced agreement to sell 34,000 acres of under four-year
aged Southern timberlands for $58 million, or $1,700/acre
- On track to complete our expansion and modernization of Waldo,
Arkansas sawmill in 2024
- Maintained strong liquidity of $479 million as of March 31,
2024
“Our business segments delivered solid operational performance
in the first quarter despite various market and weather-related
challenges,” said Eric Cremers, President and Chief Executive
Officer. “Additionally, during the quarter we capitalized on market
opportunities to enhance shareholder value by acquiring
high-quality mature timberland and agreeing to divest young-aged
timberland at a sales price that is at a significant premium to our
timberland value. Our strong balance sheet and liquidity provide
flexibility as we navigate through the current economic environment
and we remain committed to our disciplined capital allocation
strategy to drive value for our shareholders over the long term,”
stated Mr. Cremers.
Financial Highlights
($ in millions, except per share
data)
Q1 2024
Q4 2023
Q1 2023
Revenues
$
228.1
$
254.5
$
258.0
Net income (loss)
$
(0.3
)
$
(0.1
)
$
16.3
Weighted-average shares outstanding,
diluted (in thousands)
79,677
$
79,630
80,167
Net income (loss) per diluted share
$
—
$
—
$
0.20
Adjusted Net Income (Loss)1
$
(0.3
)
$
(0.1
)
$
18.5
Adjusted Net Income (Loss) Per Diluted
Share1
$
—
$
—
$
0.23
Total Adjusted EBITDDA1
$
29.7
$
40.7
$
57.7
Total Adjusted EBITDDA Margin1
13.0
%
16.0
%
22.4
%
Dividends per share
$
0.45
$
0.45
$
0.45
Net cash from operations
$
16.0
$
41.8
$
39.1
Cash and cash equivalents
$
180.2
$
230.1
$
325.6
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.
Business Performance: Q1 2024 vs. Q4 2023
Timberlands
First Quarter 2024 Highlights
- Timberlands Adjusted EBITDDA increased $1.4 million from Q4
2023
- Northern sawlog prices decreased 5% primarily due to seasonally
heavier logs
- Southern sawlog prices decreased 3% on seasonally lower mix of
hardwood volumes and smaller diameter logs
- Lower log and haul costs were primarily driven by decreased
fuel costs and shorter haul distances
- Forest management costs decreased due to seasonally lower
activity
($ in millions)
Q1 2024
Q4 2023
$ Change
Timberlands Revenues
$
93.0
$
97.4
$
(4.4
)
Timberlands Adjusted EBITDDA1
$
34.7
$
33.3
$
1.4
1
Refer to Segment
Information below for additional information.
Wood Products
First Quarter 2024 Highlights
- Wood Products Adjusted EBITDDA increased $6.4 million from Q4
2023
- Average lumber price increased 4% to $430 per thousand board
feet (MBF) in Q1 2024
- Lumber production increased in Q1 2024 leading to improved
fixed cost absorption
- Lumber inventory charges were $2.3 million lower compared to Q4
2023
($ in millions)
Q1 2024
Q4 2023
$ Change
Wood Products Revenues
$
148.6
$
150.1
$
(1.5
)
Wood Products Adjusted EBITDDA1
$
(0.1
)
$
(6.5
)
$
6.4
1
Refer to Segment
Information below for additional information.
Real Estate
First Quarter 2024 Highlights
- Real Estate Adjusted EBITDDA decreased $15.7 million from Q4
2023
- Sold 1,801 acres of rural land at an average price of $3,069
per acre
- Sold 24 residential lots at an average price of $119,750 per
lot
($ in millions)
Q1 2024
Q4 2023
$ Change
Real Estate Revenues
$
11.1
$
27.9
$
(16.8
)
Real Estate Adjusted EBITDDA1
$
6.2
$
21.9
$
(15.7
)
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 (Loss) and Adjusted Net Income (Loss) Per
Diluted Share are non-GAAP measures that represent GAAP net income
(loss) and GAAP net income (loss) 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
(Loss) and Adjusted Net Income (Loss) 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, April
30, 2024, 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 May 7, 2024 by calling 1-800-770-2030 for
U.S./Canada or 1-609-800-9909 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, expenses and liquidity;
disciplined and opportunistic capital allocation strategy; expected
completion of the Waldo, AR sawmill expansion and modernization
project; the planned sale of timberland at a premium to our
timberland value, 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; our ability and our contractor’s ability
to complete the expansion and modernization of our Waldo, Arkansas
sawmill on time; the failure to close the announced sale of
timberland on the terms described; 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
(in thousands, except per share
amounts)
March 31, 2024
December 31, 2023
March 31, 2023
Revenues
$
228,127
$
254,503
$
257,962
Costs and expenses:
Cost of goods sold
212,160
233,862
224,350
Selling, general and administrative
expenses
20,727
20,612
18,230
CatchMark merger-related expenses
—
—
2,209
232,887
254,474
244,789
Operating income (loss)
(4,760
)
29
13,173
Interest expense, net
282
(8,435
)
(199
)
Non-operating pension and other
postretirement employee benefits
201
(229
)
(228
)
Other
(145
)
629
10
Income (loss) before income taxes
(4,422
)
(8,006
)
12,756
Income taxes
4,117
7,866
3,504
Net income (loss)
$
(305
)
$
(140
)
$
16,260
Net income (loss) per share:
Basic
$
—
$
—
$
0.20
Diluted
$
—
$
—
$
0.20
Dividends per share
$
0.45
$
0.45
$
0.45
Weighted-average shares outstanding:
Basic
79,677
79,630
80,027
Diluted
79,677
79,630
80,167
PotlatchDeltic Corporation
Condensed Consolidated Balance
Sheets
Unaudited
(in thousands, except per share
amounts)
March 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
180,150
$
230,118
Customer receivables, net
27,132
21,892
Inventories, net
77,572
78,665
Other current assets
84,844
46,258
Total current assets
369,698
376,933
Property, plant and equipment, net
375,891
372,832
Investment in real estate held for
development and sale
55,524
56,321
Timber and timberlands, net
2,415,818
2,440,398
Intangible assets, net
15,196
15,640
Other long-term assets
176,812
169,132
Total assets
$
3,408,939
$
3,431,256
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities
$
80,697
$
82,383
Current portion of long-term debt
175,654
175,615
Current portion of pension and other
postretirement employee benefits
4,535
4,535
Total current liabilities
260,886
262,533
Long-term debt
858,365
858,113
Pension and other postretirement employee
benefits
68,391
67,856
Deferred tax liabilities, net
32,546
36,641
Other long-term obligations
35,479
35,015
Total liabilities
1,255,667
1,260,158
Commitments and contingencies
Stockholders' equity:
Common stock, $1 par value, 200,000 shares
authorized, 79,508 and 79,365 shares issued and outstanding
79,508
79,365
Additional paid-in capital
2,306,499
2,303,992
Accumulated deficit
(351,463
)
(315,291
)
Accumulated other comprehensive income
118,728
103,032
Total stockholders’ equity
2,153,272
2,171,098
Total liabilities and stockholders'
equity
$
3,408,939
$
3,431,256
PotlatchDeltic Corporation
Condensed Consolidated Statements
of Cash Flows
Unaudited
Three Months Ended
(in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss)
$
(305
)
$
(140
)
$
16,260
Adjustments to reconcile net income (loss)
to net cash from operating activities:
Depreciation, depletion and
amortization
30,802
30,827
32,173
Basis of real estate sold
4,092
9,768
10,631
Change in deferred taxes
(4,145
)
(5,290
)
394
Pension and other postretirement employee
benefits
1,143
1,613
1,611
Equity-based compensation expense
2,560
2,643
2,279
Interest received under swaps with
other-than-insignificant financing element
(7,458
)
(6,995
)
(5,454
)
Other, net
2,961
2,234
1,945
Change in working capital and
operating-related activities, net
(13,252
)
(2,081
)
(17,205
)
Real estate development expenditures
(1,135
)
(4,261
)
(2,408
)
Funding of pension and other
postretirement employee benefits
(914
)
(1,160
)
(1,087
)
Proceeds from insurance recoveries
1,680
14,645
—
Net cash from operating activities
16,029
41,803
39,139
CASH FLOWS FROM INVESTING
ACTIVITIES
Property, plant and equipment
additions
(4,995
)
(67,848
)
(4,255
)
Timberlands reforestation and roads
(7,874
)
(6,850
)
(6,118
)
Acquisition of timber and timberlands
(31,438
)
(158
)
—
Interest received under swaps with
other-than-insignificant financing element
6,938
6,478
5,055
Other, net
373
496
422
Net cash from investing activities
(36,996
)
(67,882
)
(4,896
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Distributions to common stockholders
(35,779
)
(35,715
)
(35,962
)
Repurchase of common stock
—
(13,605
)
—
Proceeds from long-term debt
—
40,000
—
Repayment of long-term debt
—
(40,000
)
—
Other, net
(792
)
(789
)
(838
)
Net cash from financing activities
(36,571
)
(50,109
)
(36,800
)
Change in cash, cash equivalents and
restricted cash
(57,538
)
(76,188
)
(2,557
)
Cash, cash equivalents and restricted
cash, beginning
237,688
313,876
345,591
Cash, cash equivalents and restricted
cash, ending1
$
180,150
$
237,688
$
343,034
1
Includes $0, $7.6 million and $17.4
million at March 31, 2024, December 31, 2023 and March 31, 2023,
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
(in thousands)
March 31, 2024
December 31, 2023
March 31, 2023
Revenues
Timberlands
$
92,950
$
97,414
$
115,238
Wood Products
148,598
150,100
152,795
Real Estate
11,107
27,909
23,863
252,655
275,423
291,896
Intersegment Timberlands revenues
(24,528
)
(20,920
)
(33,934
)
Consolidated revenues
$
228,127
$
254,503
$
257,962
Adjusted EBITDDA1
Timberlands
$
34,748
$
33,304
$
46,639
Wood Products
(139
)
(6,488
)
(31
)
Real Estate
6,228
21,908
19,465
Corporate
(12,665
)
(12,448
)
(10,741
)
Eliminations and adjustments
1,550
4,458
2,445
Total Adjusted EBITDDA
29,722
40,734
57,777
Interest expense, net2
282
(8,435
)
(199
)
Depreciation, depletion and
amortization
(30,395
)
(30,419
)
(31,764
)
Basis of real estate sold
(4,092
)
(9,768
)
(10,631
)
CatchMark merger-related expenses
—
—
(2,209
)
Non-operating pension and other
postretirement employee benefits
201
(229
)
(228
)
Gain (loss) on disposal of fixed
assets
5
(518
)
—
Other
(145
)
629
10
Income (loss) before income taxes
$
(4,422
)
$
(8,006
)
$
12,756
Depreciation, depletion and
amortization
Timberlands
$
17,625
$
19,386
$
20,461
Wood Products
12,516
10,783
11,035
Real Estate
138
129
156
Corporate
116
121
112
30,395
30,419
31,764
Bond discounts and deferred loan fees2
407
408
409
Total depreciation, depletion and
amortization
$
30,802
$
30,827
$
32,173
Basis of real estate sold
Real Estate
$
4,094
$
9,802
$
10,631
Eliminations and adjustments
(2
)
(34
)
—
Total basis of real estate sold
$
4,092
$
9,768
$
10,631
1
Management uses Adjusted EBITDDA to
evaluate company and segment performance. See the reconciliation of
Total Adjusted EBITDDA in Non-GAAP Reconciliations.
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
(in thousands, except per share
amount)
March 31, 2024
December 31, 2023
March 31, 2023
Total Adjusted EBITDDA1
Net income (loss) (GAAP)
$
(305
)
$
(140
)
$
16,260
Interest expense, net
(282
)
8,435
199
Income taxes
(4,117
)
(7,866
)
(3,504
)
Depreciation, depletion and
amortization
30,395
30,419
31,764
Basis of real estate sold
4,092
9,768
10,631
CatchMark merger-related expenses
—
—
2,209
Non-operating pension and other
postretirement employee benefits
(201
)
229
228
(Gain) loss on disposal of fixed
assets
(5
)
518
—
Other
145
(629
)
(10
)
Total Adjusted EBITDDA
$
29,722
$
40,734
$
57,777
Adjusted Net Income (Loss)1
Net income (loss) (GAAP)
$
(305
)
$
(140
)
$
16,260
Special items after tax:
CatchMark merger-related expenses
—
—
2,209
Gain on fire damage
—
—
—
Pension settlement charge
—
—
—
Adjusted Net Income (Loss)
$
(305
)
$
(140
)
$
18,469
Adjusted Net Income (Loss) Per Diluted
Share1
Net income (loss) per diluted share
(GAAP)
$
—
$
—
$
0.20
Special items after tax:
CatchMark merger-related expenses
—
—
0.03
Gain on fire damage
—
—
—
Pension settlement charge
—
—
—
Adjusted Net Income (Loss) Per Diluted
Share
$
—
$
—
$
0.23
1
See "Non-GAAP Measures" for further
details on management's use of these measures.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429195117/en/
Investors Wayne Wasechek 509.835.1521 Media Anna Torma
509.835.1558
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