PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2023 Results

PotlatchDeltic Corporation (Nasdaq: PCH) today reported a net loss of $0.1 million, or $0.00 per diluted share, on revenues of $254.5 million for the quarter ended December 31, 2023. Net income was $3.8 million, or $0.05 per diluted share, on revenues of $253.1 million for the quarter ended December 31, 2022. Excluding after tax special items consisting of CatchMark merger-related expenses and an environmental charge, adjusted net income was $9.3 million, or $0.12 per diluted share, for the fourth quarter of 2022.

Net income for the full year 2023 was $62.1 million, or $0.77 per diluted share, on revenues of $1.0 billion. Excluding after tax special items consisting of a gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $35.0 million, or $0.43 per diluted share, for 2023. Net income for the full year 2022 was $333.9 million, or $4.58 per diluted share, on revenues of $1.3 billion. Excluding after tax special items consisting of gain on insurance recoveries, CatchMark merger-related expenses, a pension settlement charge, and an environmental charge, adjusted net income was $350.0 million, or $4.80 per diluted share, for 2022.

2023 Highlights

  • Generated Total Adjusted EBITDDA of $200.2 million and Total Adjusted EBITDDA margin of 20%
  • Timberlands set an annual harvest volume record of 7.7 million tons
  • Wood Products set an annual shipment record of 1.1 billion board feet of lumber
  • Real Estate capitalized on higher value opportunities on acquired CatchMark timberlands
  • On track to complete our expansion and modernization of Waldo, Arkansas sawmill in 2024
  • Repurchased 556,000 shares for $25 million, or $45 per share
  • Maintained strong liquidity position of $529 million as of December 31, 2023

“Each of our business segments delivered solid operational and financial results in 2023,” said Eric Cremers, president and chief executive officer. “Our Timberlands and Wood Products businesses each achieved operational milestones amongst the backdrop of challenging market conditions, while our Real Estate segment generated significant value from the stratification of our CatchMark timberlands. Additionally, we returned $169 million to shareholders in 2023 through $144 million in quarterly dividends and $25 million of share repurchases. Looking forward to 2024, we recently entered into an agreement with Forest Investment Associates to sell approximately 34,000 acres of four-year average age Southern timberlands for approximately $58 million, or $1,700 an acre. The sale price is at a significant premium to our underlying timberland value and is non-dilutive given the young nature of these timberlands. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2024. Proceeds from this sale will further enhance our strong liquidity position and provide additional flexibility for our disciplined and opportunistic capital allocation strategy to continue to enhance shareholder value,” stated Mr. Cremers.

Financial Highlights

(in millions, except per share data - unaudited)

 

Q4 2023

 

 

Q3 2023

 

 

Q4 2022

 

Revenues

 

$

254.5

 

 

$

265.5

 

 

$

253.1

 

Net income (loss)

 

$

(0.1

)

 

$

23.7

 

 

$

3.8

 

Weighted average shares outstanding, diluted (in thousands)

 

 

79,630

 

 

 

80,379

 

 

 

80,578

 

Net income (loss) per diluted share

 

$

 

 

$

0.29

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss)1

 

$

(0.1

)

 

$

11.4

 

 

$

9.3

 

Adjusted Net Income (Loss) Per Diluted Share1

 

$

 

 

$

0.14

 

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDDA1

 

$

40.7

 

 

$

56.3

 

 

$

52.3

 

Total Adjusted EBITDDA Margin1

 

 

16.0

%

 

 

21.2

%

 

 

20.7

%

Dividends per share2

 

$

0.45

 

 

$

0.45

 

 

$

1.40

 

Net cash from operations

 

$

41.8

 

 

$

41.0

 

 

$

33.5

 

Cash and cash equivalents

 

$

230.1

 

 

$

302.8

 

 

$

343.8

 

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 A special dividend of $0.95 per share was paid in Q4 2022.

Business Performance: Q4 2023 vs. Q3 2023

Timberlands

Fourth Quarter 2023 Highlights

  • Timberlands Adjusted EBITDDA decreased $8.7 million from Q3 2023
  • Northern harvest volumes decreased due to normal seasonality
  • Northern sawlog prices decreased 15% primarily due to lower indexed sawlog prices
  • Southern sawlog and pulpwood prices were stable

(in millions - unaudited)

 

Q4 2023

 

 

Q3 2023

 

 

$ Change

 

Timberlands Revenues

 

$

97.4

 

 

$

109.8

 

 

$

(12.4

)

 

 

 

 

 

 

 

 

 

 

Timberlands Adjusted EBITDDA1

 

$

33.3

 

 

$

42.0

 

 

$

(8.7

)

1 Refer to "Segment Information" below for additional information.

Wood Products

Fourth Quarter 2023 Highlights

  • Wood Products Adjusted EBITDDA decreased $21.6 million from Q3 2023
  • Average lumber price decreased 14% to $415 per MBF, or thousand board feet, in Q4 2023
  • Per-unit log costs decreased primarily on lower indexed pricing in Idaho
  • Lumber inventory charge was $3.6 million higher compared to Q3 2023

(in millions - unaudited)

 

Q4 2023

 

 

Q3 2023

 

 

$ Change

 

Wood Products Revenues

 

$

150.1

 

 

$

165.1

 

 

$

(15.0

)

 

 

 

 

 

 

 

 

 

 

Wood Products Adjusted EBITDDA1

 

$

(6.5

)

 

$

15.1

 

 

$

(21.6

)

1 Refer to "Segment Information" below for additional information.

Real Estate

Fourth Quarter 2023 Highlights

  • Real Estate Adjusted EBITDDA increased $7.7 million from Q3 2023
  • Sold 6,620 acres of rural land at an average price of $3,102 per acre
  • Sold 30 residential lots at an average price of $106,580 per lot
  • Sold 5 commercial acres for $0.9 million, or $169,757 per acre

(in millions - unaudited)

 

Q4 2023

 

 

Q3 2023

 

 

$ Change

 

Real Estate Revenues

 

$

27.9

 

 

$

19.2

 

 

$

8.7

 

 

 

 

 

 

 

 

 

 

 

Real Estate Adjusted EBITDDA1

 

$

21.9

 

 

$

14.2

 

 

$

7.7

 

1 Refer to "Segment Information" below for additional information.

Outlook

“While interest rates have recently moderated, housing affordability and the macroeconomic environment continue to remain a headwind for the broader housing market. Nonetheless, we maintain a very positive outlook on long-term housing-related fundamentals that drive growth in our business. During 2024, we expect to harvest 7.6 million tons in our Timberlands segment, ship 1.1 billion board feet of lumber in our Wood Products segment and sell about 51,000 rural acres, including the sale of approximately 34,000 acres in the South to Forest Investment Associates, and 130 residential lots in our Real Estate segment,” stated Mr. Cremers.

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, January 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 February 7, 2024 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 practices, 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; expectations for harvest volumes, wood products shipments, and real estate sales in 2024; and similar matters. Words such as "expect," "long-term," "looking forward," "outlook," "will," and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other “forward-looking” information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic’s control, 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 state and federal laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; pandemic disease; 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

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

(in thousands, except per share amounts)

 

2023

 

2023

 

2022

 

2023

 

2022

Revenues

 

$

254,503

 

 

$

265,509

 

 

$

253,140

 

 

$

1,024,075

 

 

$

1,330,780

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

233,862

 

 

 

226,303

 

 

 

214,765

 

 

 

899,578

 

 

 

806,822

 

Selling, general and administrative expenses

 

 

20,612

 

 

 

19,303

 

 

 

20,922

 

 

 

75,730

 

 

 

76,506

 

CatchMark merger-related expenses

 

 

 

 

 

 

 

 

1,318

 

 

 

2,453

 

 

 

27,325

 

Environmental charge

 

 

 

 

 

 

 

 

5,550

 

 

 

 

 

 

5,550

 

Gain on fire damage

 

 

 

 

 

(16,326

)

 

 

 

 

 

(39,436

)

 

 

(34,505

)

 

 

 

254,474

 

 

 

229,280

 

 

 

242,555

 

 

 

938,325

 

 

 

881,698

 

Operating income

 

 

29

 

 

 

36,229

 

 

 

10,585

 

 

 

85,750

 

 

 

449,082

 

Interest expense, net

 

 

(8,435

)

 

 

(7,971

)

 

 

(8,807

)

 

 

(24,218

)

 

 

(27,400

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,165

)

Non-operating pension and other postretirement costs

 

 

(229

)

 

 

(228

)

 

 

(2,592

)

 

 

(914

)

 

 

(8,138

)

Other

 

 

629

 

 

 

370

 

 

 

(66

)

 

 

1,267

 

 

 

(67

)

Income (loss) before income taxes

 

 

(8,006

)

 

 

28,400

 

 

 

(880

)

 

 

61,885

 

 

 

399,312

 

Income taxes

 

 

7,866

 

 

 

(4,725

)

 

 

4,723

 

 

 

216

 

 

 

(65,412

)

Net income (loss)

 

$

(140

)

 

$

23,675

 

 

$

3,843

 

 

$

62,101

 

 

$

333,900

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

0.30

 

 

$

0.05

 

 

$

0.78

 

 

$

4.59

 

Diluted

 

$

 

 

$

0.29

 

 

$

0.05

 

 

$

0.77

 

 

$

4.58

 

Dividends per share1

 

$

0.45

 

 

$

0.45

 

 

$

1.40

 

 

$

1.80

 

 

$

2.72

 

Weighted-average shares outstanding (in thousands):

 

 

 

 

 

 

 

 

Basic

 

 

79,630

 

 

 

80,132

 

 

 

80,356

 

 

 

79,985

 

 

 

72,740

 

Diluted

 

 

79,630

 

 

 

80,379

 

 

 

80,578

 

 

 

80,167

 

 

 

72,922

 

1 A special dividend of $0.95 per share was paid in Q4 2022.

 

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

 

 

 

At December 31,

(in thousands, except per share amounts)

 

2023

 

2022

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

230,118

 

 

$

343,809

 

Customer receivables, net

 

 

21,892

 

 

 

22,813

 

Inventories, net

 

 

78,665

 

 

 

67,958

 

Other current assets

 

 

46,258

 

 

 

36,955

 

Total current assets

 

 

376,933

 

 

 

471,535

 

Property, plant and equipment, net

 

 

372,832

 

 

 

318,184

 

Investment in real estate held for development and sale

 

 

56,321

 

 

 

55,490

 

Timber and timberlands, net

 

 

2,440,398

 

 

 

2,508,372

 

Intangible assets, net

 

 

15,640

 

 

 

17,420

 

Other long-term assets

 

 

169,132

 

 

 

179,554

 

Total assets

 

$

3,431,256

 

 

$

3,550,555

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

82,383

 

 

$

94,861

 

Current portion of long-term debt

 

 

175,615

 

 

 

39,979

 

Current portion of pension and other postretirement employee benefits

 

 

4,535

 

 

 

4,926

 

Total current liabilities

 

 

262,533

 

 

 

139,766

 

Long-term debt

 

 

858,113

 

 

 

992,701

 

Pension and other postretirement employee benefits

 

 

67,856

 

 

 

77,396

 

Deferred tax liabilities, net

 

 

36,641

 

 

 

41,790

 

Other long-term obligations

 

 

35,015

 

 

 

35,749

 

Total liabilities

 

 

1,260,158

 

 

 

1,287,402

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $1 par value, 200,000 and 100,000 shares authorized and 79,365 and 79,683 shares issued and outstanding

 

 

79,365

 

 

 

79,683

 

Additional paid-in capital

 

 

2,303,992

 

 

 

2,294,797

 

Accumulated deficit

 

 

(315,291

)

 

 

(208,979

)

Accumulated other comprehensive income

 

 

103,032

 

 

 

97,652

 

Total stockholders’ equity

 

 

2,171,098

 

 

 

2,263,153

 

Total liabilities and stockholders' equity

 

$

3,431,256

 

 

$

3,550,555

 

 

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(in thousands)

 

2023

 

2023

 

2022

 

2023

 

2022

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(140

)

 

$

23,675

 

 

$

3,843

 

 

$

62,101

 

 

$

333,900

 

Adjustments to reconcile net income (loss) to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

30,827

 

 

 

30,658

 

 

 

30,274

 

 

 

121,154

 

 

 

98,234

 

Basis of real estate sold

 

 

9,768

 

 

 

6,109

 

 

 

4,897

 

 

 

31,392

 

 

 

29,921

 

Change in deferred taxes

 

 

(3,702

)

 

 

(1,764

)

 

 

(3,898

)

 

 

(7,681

)

 

 

(5,257

)

Pension and other postretirement benefits

 

 

1,613

 

 

 

1,610

 

 

 

4,323

 

 

 

6,446

 

 

 

15,259

 

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,165

 

Equity-based compensation expense

 

 

2,643

 

 

 

2,616

 

 

 

2,356

 

 

 

9,115

 

 

 

18,497

 

Gain on fire damage

 

 

 

 

 

(16,326

)

 

 

 

 

 

(39,436

)

 

 

(34,505

)

Interest received under swaps with other-than-insignificant financing element

 

 

(6,995

)

 

 

(6,884

)

 

 

(3,002

)

 

 

(25,646

)

 

 

(3,002

)

Other, net

 

 

646

 

 

 

1,792

 

 

 

2,222

 

 

 

6,294

 

 

 

1,767

 

Change in working capital and operating-related activities, net

 

 

(2,081

)

 

 

(9,773

)

 

 

(4,660

)

 

 

(26,188

)

 

 

9,411

 

Real estate development expenditures

 

 

(4,261

)

 

 

(2,939

)

 

 

(1,116

)

 

 

(11,504

)

 

 

(8,102

)

Funding of pension and other postretirement employee benefits

 

 

(1,160

)

 

 

128

 

 

 

(1,775

)

 

 

(3,336

)

 

 

(5,065

)

Proceeds from insurance recoveries

 

 

14,645

 

 

 

12,049

 

 

 

 

 

 

36,400

 

 

 

26,678

 

Net cash from operating activities

 

 

41,803

 

 

 

40,951

 

 

 

33,464

 

 

 

159,111

 

 

 

491,901

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment additions

 

 

(67,848

)

 

 

(17,933

)

 

 

(12,976

)

 

 

(95,916

)

 

 

(56,976

)

Timberlands reforestation and roads

 

 

(6,850

)

 

 

(6,299

)

 

 

(5,498

)

 

 

(23,863

)

 

 

(17,718

)

Acquisition of timber and timberlands

 

 

(158

)

 

 

(55

)

 

 

(14,029

)

 

 

(1,834

)

 

 

(110,110

)

Proceeds from property insurance

 

 

 

 

 

1,356

 

 

 

8,750

 

 

 

1,356

 

 

 

8,750

 

Cash acquired in CatchMark merger

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,571

 

Interest received under swaps with other-than-insignificant financing element

 

 

6,478

 

 

 

6,375

 

 

 

2,798

 

 

 

23,757

 

 

 

2,798

 

Other, net

 

 

496

 

 

 

36

 

 

 

1,230

 

 

 

1,196

 

 

 

2,165

 

Net cash from investing activities

 

 

(67,882

)

 

 

(16,520

)

 

 

(19,725

)

 

 

(95,304

)

 

 

(147,520

)

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Distributions to common stockholders

 

 

(35,715

)

 

 

(35,960

)

 

 

(111,555

)

 

 

(143,595

)

 

 

(208,133

)

Repurchase of common stock

 

 

(13,605

)

 

 

(11,012

)

 

 

(50,022

)

 

 

(25,011

)

 

 

(54,549

)

Proceeds from long-term debt

 

 

40,000

 

 

 

 

 

 

40,000

 

 

 

40,000

 

 

 

317,500

 

Repayment of long-term debt

 

 

(40,000

)

 

 

 

 

 

(40,000

)

 

 

(40,000

)

 

 

(343,000

)

Other, net

 

 

(789

)

 

 

(360

)

 

 

(1,260

)

 

 

(3,104

)

 

 

(7,380

)

Net cash from financing activities

 

 

(50,109

)

 

 

(47,332

)

 

 

(162,837

)

 

 

(171,710

)

 

 

(295,562

)

Change in cash, cash equivalents and restricted cash

 

 

(76,188

)

 

 

(22,901

)

 

 

(149,098

)

 

 

(107,903

)

 

 

48,819

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

313,876

 

 

 

336,777

 

 

 

494,689

 

 

 

345,591

 

 

 

296,772

 

Cash, cash equivalents and restricted cash at end of period1

 

$

237,688

 

 

$

313,876

 

 

$

345,591

 

 

$

237,688

 

 

$

345,591

 

1 Includes $7.6 million, $11.1 million and $1.8 million at December 31, 2023, September 30, 2023 and December 31, 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

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

(in thousands)

 

2023

 

2023

 

2022

 

2023

 

2022

Revenues

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

97,414

 

 

$

109,808

 

 

$

121,871

 

 

$

411,077

 

 

$

485,590

 

Wood Products

 

 

150,100

 

 

 

165,108

 

 

 

156,805

 

 

 

635,672

 

 

 

912,612

 

Real Estate

 

 

27,909

 

 

 

19,152

 

 

 

11,682

 

 

 

87,988

 

 

 

91,491

 

 

275,423

 

 

 

294,068

 

 

 

290,358

 

 

 

1,134,737

 

 

 

1,489,693

 

Intersegment Timberlands revenues

 

 

(20,920

)

 

 

(28,559

)

 

 

(37,218

)

 

 

(110,656

)

 

 

(158,913

)

Other intersegment revenues

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

Consolidated revenues

 

$

254,503

 

 

$

265,509

 

 

$

253,140

 

 

$

1,024,075

 

 

$

1,330,780

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

33,304

 

 

$

42,062

 

 

$

50,567

 

 

$

151,321

 

 

$

249,373

 

Wood Products

 

 

(6,488

)

 

 

15,039

 

 

 

2,442

 

 

 

20,487

 

 

 

290,907

 

Real Estate

 

 

21,908

 

 

 

14,165

 

 

 

7,178

 

 

 

67,775

 

 

 

73,258

 

Corporate

 

 

(12,448

)

 

 

(11,696

)

 

 

(13,189

)

 

 

(45,406

)

 

 

(49,314

)

Eliminations and adjustments

 

 

4,458

 

 

 

(3,292

)

 

 

5,335

 

 

 

6,057

 

 

 

9,931

 

Total Adjusted EBITDDA

 

 

40,734

 

 

 

56,278

 

 

 

52,333

 

 

 

200,234

 

 

 

574,155

 

Interest expense, net2

 

 

(8,435

)

 

 

(7,971

)

 

 

(8,807

)

 

 

(24,218

)

 

 

(27,400

)

Depreciation, depletion and amortization

 

 

(30,419

)

 

 

(30,248

)

 

 

(29,862

)

 

 

(119,518

)

 

 

(96,700

)

Basis of real estate sold

 

 

(9,768

)

 

 

(6,109

)

 

 

(4,897

)

 

 

(31,392

)

 

 

(29,921

)

CatchMark merger-related expenses

 

 

 

 

 

 

 

 

(1,318

)

 

 

(2,453

)

 

 

(27,325

)

Environmental charge

 

 

 

 

 

 

 

 

(5,550

)

 

 

 

 

 

(5,550

)

Gain on fire damage

 

 

 

 

 

16,326

 

 

 

 

 

 

39,436

 

 

 

34,505

 

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,165

)

Non-operating pension and other postretirement employee benefits

 

 

(229

)

 

 

(228

)

 

 

(2,592

)

 

 

(914

)

 

 

(8,138

)

Loss on fixed assets

 

 

(518

)

 

 

(18

)

 

 

(121

)

 

 

(557

)

 

 

(82

)

Other

 

 

629

 

 

 

370

 

 

 

(66

)

 

 

1,267

 

 

 

(67

)

Income (loss) before income taxes

 

$

(8,006

)

 

$

28,400

 

 

$

(880

)

 

$

61,885

 

 

$

399,312

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

19,386

 

 

$

19,267

 

 

$

18,845

 

 

$

75,009

 

 

$

59,532

 

Wood Products

 

 

10,783

 

 

 

10,740

 

 

 

10,727

 

 

 

43,506

 

 

 

35,953

 

Real Estate

 

 

129

 

 

 

120

 

 

 

177

 

 

 

526

 

 

 

695

 

Corporate

 

 

121

 

 

 

121

 

 

 

113

 

 

 

477

 

 

 

520

 

 

 

 

30,419

 

 

 

30,248

 

 

 

29,862

 

 

 

119,518

 

 

 

96,700

 

Bond discounts and deferred loan fees2

 

 

408

 

 

 

410

 

 

 

412

 

 

 

1,636

 

 

 

1,534

 

Total depreciation, depletion and amortization

 

$

30,827

 

 

$

30,658

 

 

$

30,274

 

 

$

121,154

 

 

$

98,234

 

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold

 

 

 

 

 

 

 

 

 

 

Real Estate

 

$

9,802

 

 

$

6,111

 

 

$

4,899

 

 

$

31,431

 

 

$

29,932

 

Eliminations and adjustments

 

 

(34

)

 

 

(2

)

 

 

(2

)

 

 

(39

)

 

 

(11

)

Total basis of real estate sold

 

$

9,768

 

 

$

6,109

 

 

$

4,897

 

 

$

31,392

 

 

$

29,921

 

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

 

Year ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

(in thousands, except per share amounts)

 

2023

 

2023

 

2022

 

2023

 

2022

Total Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

 

$

(140

)

 

$

23,675

 

 

$

3,843

 

 

$

62,101

 

 

$

333,900

 

Interest, net

 

 

8,435

 

 

 

7,971

 

 

 

8,807

 

 

 

24,218

 

 

 

27,400

 

Income taxes

 

 

(7,866

)

 

 

4,725

 

 

 

(4,723

)

 

 

(216

)

 

 

65,412

 

Depreciation, depletion and amortization

 

 

30,419

 

 

 

30,248

 

 

 

29,862

 

 

 

119,518

 

 

 

96,700

 

Basis of real estate sold

 

 

9,768

 

 

 

6,109

 

 

 

4,897

 

 

 

31,392

 

 

 

29,921

 

CatchMark merger-related expenses

 

 

 

 

 

 

 

 

1,318

 

 

 

2,453

 

 

 

27,325

 

Gain on fire damage

 

 

 

 

 

(16,326

)

 

 

 

 

 

(39,436

)

 

 

(34,505

)

Environmental charge

 

 

 

 

 

 

 

 

5,550

 

 

 

 

 

 

5,550

 

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,165

 

Non-operating pension and other postretirement benefit costs

 

 

229

 

 

 

228

 

 

 

2,592

 

 

 

914

 

 

 

8,138

 

Loss on fixed assets

 

 

518

 

 

 

18

 

 

 

121

 

 

 

557

 

 

 

82

 

Other

 

 

(629

)

 

 

(370

)

 

 

66

 

 

 

(1,267

)

 

 

67

 

Total Adjusted EBITDDA

 

$

40,734

 

 

$

56,278

 

 

$

52,333

 

 

$

200,234

 

 

$

574,155

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss)1

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

 

$

(140

)

 

$

23,675

 

 

$

3,843

 

 

$

62,101

 

 

$

333,900

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

 

 

 

 

 

 

1,318

 

 

 

2,453

 

 

 

27,140

 

Gain on fire damage

 

 

 

 

 

(12,244

)

 

 

 

 

 

(29,577

)

 

 

(25,706

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,553

 

Environmental charge

 

 

 

 

 

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Adjusted Net Income (Loss)

 

$

(140

)

 

$

11,431

 

 

$

9,296

 

 

$

34,977

 

 

$

350,022

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss) Per Diluted Share1

 

 

 

 

 

 

 

 

 

 

Net income (loss) per diluted share (GAAP)

 

$

 

 

$

0.29

 

 

$

0.05

 

 

$

0.77

 

 

$

4.58

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

 

 

 

 

 

 

0.02

 

 

 

0.03

 

 

 

0.37

 

Gain on fire damage

 

 

 

 

 

(0.15

)

 

 

 

 

 

(0.37

)

 

 

(0.35

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.14

 

Environmental charge

 

 

 

 

 

 

 

 

0.05

 

 

 

 

 

 

0.06

 

Adjusted Net Income (Loss) Per Diluted Share

 

$

 

 

$

0.14

 

 

$

0.12

 

 

$

0.43

 

 

$

4.80

 

 

 

 

 

 

 

 

 

 

 

 

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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