PotlatchDeltic Corporation Reports Third Quarter 2023 Results

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.

 

Contacts

Investors

Wayne Wasechek

509.835.1521

Media

Anna Torma

509.835.1558

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