PCH PotlatchDeltic Corporation

PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $3.3 million, or $0.04 per diluted share, on revenues of $255.1 million for the quarter ended September 30, 2024. Net income was $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.

Third Quarter 2024 Highlights

• Generated Total Adjusted EBITDDA of $45.9 million and Total Adjusted EBITDDA margin of 18%
• Completed construction on the Waldo, Arkansas sawmill expansion and modernization project
• Repurchased 57,000 shares for $2.4 million, or $42 per share
• Maintained strong liquidity of $460 million as of September 30, 2024

“During the third quarter, our businesses delivered solid operational performance while navigating a challenging lumber market as well as the broader economic environment,” said Eric Cremers, President and Chief Executive Officer. “Additionally, our Wood Products division achieved a significant milestone with the successful completion of the construction phase of our Waldo, Arkansas sawmill expansion and modernization project. We believe this strategic investment positions the Waldo mill to be a top quartile sawmill, enabling it to generate an additional $25 million of Adjusted EBITDDA annually under a mid-cycle sales environment once the mill reaches its new capacity output. As for capital allocation, we will continue to be disciplined stewards of our shareholders’ capital and remain focused on returning capital to shareholders while prioritizing the long-term value for our shares. Looking forward, we believe that lumber markets are stabilizing as supply and demand in the industry continue to align. We are also optimistic that reductions in interest rates will serve as a catalyst, creating positive momentum in the housing and repair and remodel markets, thereby driving demand in our business,” stated Mr. Cremers.

Financial Highlights

($ in millions, except per share data)

 

Q3 2024

 

 

Q2 2024

 

 

Q3 2023

 

Revenues

 

$

255.1

 

 

$

320.7

 

 

$

265.5

 

Net income

 

$

3.3

 

 

$

13.7

 

 

$

23.7

 

Weighted-average shares outstanding, diluted (in thousands)

 

 

79,277

 

 

 

79,741

 

 

 

80,379

 

Net income per diluted share

 

$

0.04

 

 

$

0.17

 

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income1

 

$

3.3

 

 

$

13.7

 

 

$

11.4

 

Adjusted Net Income Per Diluted Share1

 

$

0.04

 

 

$

0.17

 

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDDA1

 

$

45.9

 

 

$

103.2

 

 

$

56.3

 

Total Adjusted EBITDDA Margin1

 

 

18.0

%

 

 

32.2

%

 

 

21.2

%

Dividends per share

 

$

0.45

 

 

$

0.45

 

 

$

0.45

 

Net cash from operations

 

$

26.5

 

 

$

100.6

 

 

$

41.0

 

Cash and cash equivalents

 

$

161.1

 

 

$

199.7

 

 

$

302.8

 

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.

Business Performance: Q3 2024 vs. Q2 2024

Timberlands

Third Quarter 2024 Highlights

• Timberlands Adjusted EBITDDA increased $1.6 million from Q2 2024
• Northern harvest volumes increased due to normal seasonality
• Northern sawlog prices decreased primarily due to lower indexed sawlog prices
• Southern sawlog and pulpwood prices were relatively stable

($ in millions)

 

Q3 2024

 

 

Q2 2024

 

 

$ Change

 

Timberlands Revenues

 

$

105.1

 

 

$

98.8

 

 

$

6.3

 

 

 

 

 

 

 

 

 

 

 

Timberlands Adjusted EBITDDA1

 

$

35.8

 

 

$

34.2

 

 

$

1.6

 

1 Refer to Segment Information below for additional information.

Wood Products

Third Quarter 2024 Highlights

• Wood Products Adjusted EBITDDA decreased $2.8 million from Q2 2024
• Average lumber prices decreased 5% to $402 per thousand board feet (MBF) in Q3 2024
• Higher per-unit manufacturing costs primarily due to lower production from planned downtime and restart at the Waldo sawmill related to the expansion and modernization project

($ in millions)

 

Q3 2024

 

 

Q2 2024

 

 

$ Change

 

Wood Products Revenues

 

$

139.4

 

 

$

153.6

 

 

$

(14.2

)

 

 

 

 

 

 

 

 

 

 

Wood Products Adjusted EBITDDA1

 

$

(9.6

)

 

$

(6.8

)

 

$

(2.8

)

1 Refer to Segment Information below for additional information.

Real Estate

Third Quarter 2024 Highlights

• Real Estate Adjusted EBITDDA decreased $57.8 million from Q2 2024, which included a $57 million rural timberland sale in the South
• Sold 6,548 acres of rural land at an average price of $3,727 per acre
• Sold 53 residential lots at an average price of $204,851 per lot

($ in millions)

 

Q3 2024

 

 

Q2 2024

 

 

$ Change

 

Real Estate Revenues

 

$

38.7

 

 

$

95.7

 

 

$

(57.0

)

 

 

 

 

 

 

 

 

 

 

Real Estate Adjusted EBITDDA1

 

$

31.8

 

 

$

89.6

 

 

$

(57.8

)

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, October 29, 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 November 5, 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 over 2.1 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 incremental EBITDDA generation as a result of the recently completed Waldo, Arkansas sawmill expansion and modernization project; long-term housing fundamentals, interest rates, and demand for lumber; and similar matters. Words such as “believe,” “will continue,” “looking forward,” 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 to achieve the expected increases in production capacity, reduction in cash processing costs, and recovery improvement following the ramp-up phase of our Waldo, Arkansas sawmill expansion and modernization project; our ability to participate in the natural climate solutions and forest carbon sequestration markets; 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)

2024

 

2024

 

2023

 

2024

 

2023

Revenues

$

255,131

 

 

$

320,671

 

 

$

265,509

 

 

$

803,929

 

 

$

769,572

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

227,556

 

 

 

282,473

 

 

 

226,303

 

 

 

722,189

 

 

 

665,716

 

Selling, general and administrative expenses

 

20,403

 

 

 

20,752

 

 

 

19,303

 

 

 

61,882

 

 

 

55,118

 

CatchMark merger-related expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,453

 

Gain on fire damage

 

—

 

 

 

—

 

 

 

(16,326

)

 

 

—

 

 

 

(39,436

)

 

 

247,959

 

 

 

303,225

 

 

 

229,280

 

 

 

784,071

 

 

 

683,851

 

Operating income

 

7,172

 

 

 

17,446

 

 

 

36,229

 

 

 

19,858

 

 

 

85,721

 

Interest expense, net

 

(9,635

)

 

 

(8,696

)

 

 

(7,971

)

 

 

(18,049

)

 

 

(15,783

)

Non-operating pension and other postretirement employee benefits

 

200

 

 

 

201

 

 

 

(228

)

 

 

602

 

 

 

(685

)

Other

 

1,516

 

 

 

(23

)

 

 

370

 

 

 

1,348

 

 

 

638

 

Income (loss) before income taxes

 

(747

)

 

 

8,928

 

 

 

28,400

 

 

 

3,759

 

 

 

69,891

 

Income taxes

 

4,056

 

 

 

4,750

 

 

 

(4,725

)

 

 

12,923

 

 

 

(7,650

)

Net income

$

3,309

 

 

$

13,678

 

 

$

23,675

 

 

$

16,682

 

 

$

62,241

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

$

0.04

 

 

$

0.17

 

 

$

0.30

 

 

$

0.21

 

 

$

0.78

 

Diluted

$

0.04

 

 

$

0.17

 

 

$

0.29

 

 

$

0.21

 

 

$

0.78

 

Dividends per share

$

0.45

 

 

$

0.45

 

 

$

0.45

 

 

$

1.35

 

 

$

1.35

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

79,173

 

 

 

79,627

 

 

 

80,132

 

 

 

79,494

 

 

 

80,102

 

Diluted

 

79,277

 

 

 

79,741

 

 

 

80,379

 

 

 

79,563

 

 

 

80,279

 

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

 

(in thousands, except per share amounts)

 

September 30, 2024

 

 

December 31, 2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

161,131

 

 

$

230,118

 

Customer receivables, net

 

 

29,550

 

 

 

21,892

 

Inventories, net

 

 

79,894

 

 

 

78,665

 

Other current assets

 

 

50,623

 

 

 

46,258

 

Total current assets

 

 

321,198

 

 

 

376,933

 

Property, plant and equipment, net

 

 

395,908

 

 

 

372,832

 

Investment in real estate held for development and sale

 

 

51,769

 

 

 

56,321

 

Timber and timberlands, net

 

 

2,375,157

 

 

 

2,440,398

 

Intangible assets, net

 

 

14,306

 

 

 

15,640

 

Other long-term assets

 

 

148,766

 

 

 

169,132

 

Total assets

 

$

3,307,104

 

 

$

3,431,256

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

90,290

 

 

$

82,383

 

Current portion of long-term debt

 

 

165,113

 

 

 

175,615

 

Current portion of pension and other postretirement employee benefits

 

 

4,535

 

 

 

4,535

 

Total current liabilities

 

 

259,938

 

 

 

262,533

 

Long-term debt

 

 

869,486

 

 

 

858,113

 

Pension and other postretirement employee benefits

 

 

64,902

 

 

 

67,856

 

Deferred tax liabilities, net

 

 

23,936

 

 

 

36,641

 

Other long-term obligations

 

 

36,817

 

 

 

35,015

 

Total liabilities

 

 

1,255,079

 

 

 

1,260,158

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $1 par value, 200,000 shares authorized, 78,862 and 79,365 shares issued and outstanding

 

 

78,862

 

 

 

79,365

 

Additional paid-in capital

 

 

2,312,586

 

 

 

2,303,992

 

Accumulated deficit

 

 

(432,589

)

 

 

(315,291

)

Accumulated other comprehensive income

 

 

93,166

 

 

 

103,032

 

Total stockholders’ equity

 

 

2,052,025

 

 

 

2,171,098

 

Total liabilities and stockholders' equity

 

$

3,307,104

 

 

$

3,431,256

 

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

(in thousands)

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income

$

3,309

 

 

$

13,678

 

 

$

23,675

 

 

$

16,682

 

 

$

62,241

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

25,893

 

 

 

29,674

 

 

 

30,658

 

 

 

86,369

 

 

 

90,327

 

Basis of real estate sold

 

12,905

 

 

 

56,525

 

 

 

6,109

 

 

 

73,522

 

 

 

21,624

 

Change in deferred taxes

 

(3,057

)

 

 

(4,694

)

 

 

(1,764

)

 

 

(11,896

)

 

 

(3,979

)

Pension and other postretirement employee benefits

 

1,143

 

 

 

1,145

 

 

 

1,610

 

 

 

3,431

 

 

 

4,833

 

Equity-based compensation expense

 

2,946

 

 

 

2,962

 

 

 

2,616

 

 

 

8,468

 

 

 

6,472

 

Gain on fire damage

 

—

 

 

 

—

 

 

 

(16,326

)

 

 

—

 

 

 

(39,436

)

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

 

(7,536

)

 

 

(7,509

)

 

 

(6,884

)

 

 

(22,503

)

 

 

(18,651

)

Other, net

 

1,641

 

 

 

2,351

 

 

 

1,792

 

 

 

6,953

 

 

 

5,648

 

Change in working capital and operating-related activities, net

 

(3,040

)

 

 

9,256

 

 

 

(9,773

)

 

 

(7,036

)

 

 

(24,107

)

Real estate development expenditures

 

(2,583

)

 

 

(1,587

)

 

 

(2,939

)

 

 

(5,305

)

 

 

(7,243

)

Funding of pension and other postretirement employee benefits

 

(5,168

)

 

 

(1,221

)

 

 

128

 

 

 

(7,303

)

 

 

(2,176

)

Proceeds from insurance recoveries

 

—

 

 

 

—

 

 

 

12,049

 

 

 

1,680

 

 

 

21,755

 

Net cash from operating activities

 

26,453

 

 

 

100,580

 

 

 

40,951

 

 

 

143,062

 

 

 

117,308

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Property, plant and equipment additions

 

(25,575

)

 

 

(21,608

)

 

 

(17,933

)

 

 

(52,178

)

 

 

(28,068

)

Timberlands reforestation and roads

 

(6,476

)

 

 

(4,940

)

 

 

(6,299

)

 

 

(19,290

)

 

 

(17,013

)

Acquisition of timber and timberlands

 

(822

)

 

 

(43

)

 

 

(55

)

 

 

(32,303

)

 

 

(1,676

)

Proceeds from property insurance

 

—

 

 

 

—

 

 

 

1,356

 

 

 

—

 

 

 

1,356

 

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

 

7,010

 

 

 

6,986

 

 

 

6,375

 

 

 

20,934

 

 

 

17,279

 

Other, net

 

134

 

 

 

245

 

 

 

36

 

 

 

752

 

 

 

700

 

Net cash from investing activities

 

(25,729

)

 

 

(19,360

)

 

 

(16,520

)

 

 

(82,085

)

 

 

(27,422

)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Distributions to common stockholders

 

(35,486

)

 

 

(35,677

)

 

 

(35,960

)

 

 

(106,942

)

 

 

(107,880

)

Repurchase of common stock

 

(3,508

)

 

 

(23,905

)

 

 

(11,012

)

 

 

(27,413

)

 

 

(11,406

)

Other, net

 

(943

)

 

 

(1,444

)

 

 

(360

)

 

 

(3,179

)

 

 

(2,315

)

Net cash from financing activities

 

(39,937

)

 

 

(61,026

)

 

 

(47,332

)

 

 

(137,534

)

 

 

(121,601

)

Change in cash, cash equivalents and restricted cash

 

(39,213

)

 

 

20,194

 

 

 

(22,901

)

 

 

(76,557

)

 

 

(31,715

)

Cash, cash equivalents and restricted cash, beginning

 

200,344

 

 

 

180,150

 

 

 

336,777

 

 

 

237,688

 

 

 

345,591

 

Cash, cash equivalents and restricted cash, ending1

$

161,131

 

 

$

200,344

 

 

$

313,876

 

 

$

161,131

 

 

$

313,876

 

1

Includes $0, $0.7 million, and $11.1 million at September 30, 2024, June 30, 2024, and September 30, 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

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

(in thousands)

2024

 

2024

 

2023

 

2024

 

2023

Revenues

 

 

 

 

 

 

 

 

 

Timberlands

$

105,132

 

 

$

98,802

 

 

$

109,808

 

 

$

296,884

 

 

$

313,663

 

Wood Products

 

139,412

 

 

 

153,579

 

 

 

165,108

 

 

 

441,589

 

 

 

485,572

 

Real Estate

 

38,701

 

 

 

95,732

 

 

 

19,152

 

 

 

145,540

 

 

 

60,079

 

 

 

283,245

 

 

 

348,113

 

 

 

294,068

 

 

 

884,013

 

 

 

859,314

 

Intersegment Timberlands revenues

 

(28,114

)

 

 

(27,442

)

 

 

(28,559

)

 

 

(80,084

)

 

 

(89,736

)

Other intersegment revenues

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6

)

Consolidated revenues

$

255,131

 

 

$

320,671

 

 

$

265,509

 

 

$

803,929

 

 

$

769,572

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

Timberlands

$

35,824

 

 

$

34,124

 

 

$

42,062

 

 

$

104,696

 

 

$

118,017

 

Wood Products

 

(9,581

)

 

 

(6,805

)

 

 

15,039

 

 

 

(16,525

)

 

 

26,975

 

Real Estate

 

31,861

 

 

 

89,568

 

 

 

14,165

 

 

 

127,657

 

 

 

45,867

 

Corporate

 

(12,203

)

 

 

(11,756

)

 

 

(11,696

)

 

 

(36,624

)

 

 

(32,958

)

Eliminations and adjustments

 

1

 

 

 

(1,958

)

 

 

(3,292

)

 

 

(407

)

 

 

1,599

 

Total Adjusted EBITDDA

 

45,902

 

 

 

103,173

 

 

 

56,278

 

 

 

178,797

 

 

 

159,500

 

Interest expense, net2

 

(9,635

)

 

 

(8,696

)

 

 

(7,971

)

 

 

(18,049

)

 

 

(15,783

)

Depreciation, depletion and amortization

 

(25,487

)

 

 

(29,268

)

 

 

(30,248

)

 

 

(85,150

)

 

 

(89,099

)

Basis of real estate sold

 

(12,905

)

 

 

(56,525

)

 

 

(6,109

)

 

 

(73,522

)

 

 

(21,624

)

CatchMark merger-related expenses

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,453

)

Gain on fire damage

 

—

 

 

 

—

 

 

 

16,326

 

 

 

—

 

 

 

39,436

 

Non-operating pension and other postretirement employee benefits

 

200

 

 

 

201

 

 

 

(228

)

 

 

602

 

 

 

(685

)

Gain (loss) on disposal of assets

 

(338

)

 

 

66

 

 

 

(18

)

 

 

(267

)

 

 

(39

)

Other

 

1,516

 

 

 

(23

)

 

 

370

 

 

 

1,348

 

 

 

638

 

Income (loss) before income taxes

$

(747

)

 

$

8,928

 

 

$

28,400

 

 

$

3,759

 

 

$

69,891

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

 

 

 

 

 

 

 

Timberlands

$

16,778

 

 

$

16,790

 

 

$

19,267

 

 

$

51,193

 

 

$

55,623

 

Wood Products

 

8,395

 

 

 

12,227

 

 

 

10,740

 

 

 

33,138

 

 

 

32,723

 

Real Estate

 

138

 

 

 

136

 

 

 

120

 

 

 

412

 

 

 

397

 

Corporate

 

176

 

 

 

115

 

 

 

121

 

 

 

407

 

 

 

356

 

 

 

25,487

 

 

 

29,268

 

 

 

30,248

 

 

 

85,150

 

 

 

89,099

 

Bond discounts and deferred loan fees2

 

406

 

 

 

406

 

 

 

410

 

 

 

1,219

 

 

 

1,228

 

Total depreciation, depletion and amortization

$

25,893

 

 

$

29,674

 

 

$

30,658

 

 

$

86,369

 

 

$

90,327

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold

 

 

 

 

 

 

 

 

 

Real Estate

$

12,908

 

 

$

56,528

 

 

$

6,111

 

 

$

73,530

 

 

$

21,629

 

Eliminations and adjustments

 

(3

)

 

 

(3

)

 

 

(2

)

 

 

(8

)

 

 

(5

)

Total basis of real estate sold

$

12,905

 

 

$

56,525

 

 

$

6,109

 

 

$

73,522

 

 

$

21,624

 

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, deferred loan fees, non-cash amortization related to redesignated forward swaps, and interest income 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 amounts)

 

2024

 

2024

 

2023

 

2024

 

2023

Total Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

3,309

 

 

$

13,678

 

 

$

23,675

 

 

$

16,682

 

 

$

62,241

 

Interest expense, net

 

 

9,635

 

 

 

8,696

 

 

 

7,971

 

 

 

18,049

 

 

 

15,783

 

Income taxes

 

 

(4,056

)

 

 

(4,750

)

 

 

4,725

 

 

 

(12,923

)

 

 

7,650

 

Depreciation, depletion and amortization

 

 

25,487

 

 

 

29,268

 

 

 

30,248

 

 

 

85,150

 

 

 

89,099

 

Basis of real estate sold

 

 

12,905

 

 

 

56,525

 

 

 

6,109

 

 

 

73,522

 

 

 

21,624

 

CatchMark merger-related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,453

 

Gain on fire damage

 

 

—

 

 

 

—

 

 

 

(16,326

)

 

 

—

 

 

 

(39,436

)

Non-operating pension and other postretirement employee benefits

 

 

(200

)

 

 

(201

)

 

 

228

 

 

 

(602

)

 

 

685

 

(Gain) loss on disposal of assets

 

 

338

 

 

 

(66

)

 

 

18

 

 

 

267

 

 

 

39

 

Other

 

 

(1,516

)

 

 

23

 

 

 

(370

)

 

 

(1,348

)

 

 

(638

)

Total Adjusted EBITDDA

 

$

45,902

 

 

$

103,173

 

 

$

56,278

 

 

$

178,797

 

 

$

159,500

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income1

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

3,309

 

 

$

13,678

 

 

$

23,675

 

 

$

16,682

 

 

$

62,241

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,453

 

Gain on fire damage

 

 

—

 

 

 

—

 

 

 

(12,244

)

 

 

—

 

 

 

(29,577

)

Adjusted Net Income

 

$

3,309

 

 

$

13,678

 

 

$

11,431

 

 

$

16,682

 

 

$

35,117

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income Per Diluted Share1

 

 

 

 

 

 

 

 

 

 

Net income per diluted share (GAAP)

 

$

0.04

 

 

$

0.17

 

 

$

0.29

 

 

$

0.21

 

 

$

0.78

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.03

 

Gain on fire damage

 

 

—

 

 

 

—

 

 

 

(0.15

)

 

 

—

 

 

 

(0.37

)

Adjusted Net Income Per Diluted Share

 

$

0.04

 

 

$

0.17

 

 

$

0.14

 

 

$

0.21

 

 

$

0.44

 

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/20241028179763/en/

Investors Wayne Wasechek 509.835.1521

Media Anna Torma 509.835.1558