PCH PotlatchDeltic Corporation

PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $13.7 million, or $0.17 per diluted share, on revenues of $320.7 million for the quarter ended June 30, 2024. Net income was $22.3 million, or $0.28 per diluted share, on revenues of $246.1 million for the quarter ended June 30, 2023. Excluding after-tax special items consisting of gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $5.2 million, or $0.06 per diluted share, for the second quarter of 2023.

Second Quarter 2024 Highlights

• Generated Total Adjusted EBITDDA of $103.2 million and Total Adjusted EBITDDA margin of 32%
• Completed the sale of 34,100 acres of four-year average age Southern timberlands for $57 million, or $1,700 per acre
• Repurchased 610,000 shares for $25 million, or $41 per share
• Finalizing construction of the $131 million Waldo, Arkansas sawmill expansion and modernization project
• Maintained strong liquidity of nearly $500 million as of June 30, 2024

“All of our business segments delivered solid operational execution in the second quarter in spite of languishing lumber markets and the current economic backdrop,” said Eric Cremers, President and Chief Executive Officer. “Our Real Estate business generated strong rural sales activity that created high value transactions with significant premiums to timberland values, highlighted by the closing of our previously announced 34,100-acre timberland sale to Forest Investment Associates for $57 million. Additionally, our Wood Products business is diligently focused on the final phase of construction on our Waldo, Arkansas sawmill expansion and modernization project for completion in the third quarter. As for capital allocation, our strong balance sheet and liquidity continues to allow us the flexibility to execute on our disciplined and opportunistic strategy, which included $25 million of share repurchases during the quarter. Looking ahead, we continue to believe long-term underlying housing fundamentals remain favorable and are optimistic that lumber markets will gain renewed momentum as inflation and interest rates improve,” stated Mr. Cremers.

Financial Highlights

($ in millions, except per share data)

 

Q2 2024

 

 

Q1 2024

 

 

Q2 2023

 

Revenues

 

$

320.7

 

 

$

228.1

 

 

$

246.1

 

Net income (loss)

 

$

13.7

 

 

$

(0.3

)

 

$

22.3

 

Weighted-average shares outstanding, diluted (in thousands)

 

 

79,741

 

 

 

79,677

 

 

 

80,416

 

Net income (loss) per diluted share

 

$

0.17

 

 

$

—

 

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss)1

 

$

13.7

 

 

$

(0.3

)

 

$

5.2

 

Adjusted Net Income (Loss) Per Diluted Share1

 

$

0.17

 

 

$

—

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDDA1

 

$

103.2

 

 

$

29.7

 

 

$

45.5

 

Total Adjusted EBITDDA Margin1

 

 

32.2

%

 

 

13.0

%

 

 

18.5

%

Dividends per share

 

$

0.45

 

 

$

0.45

 

 

$

0.45

 

Net cash from operations

 

$

100.6

 

 

$

16.0

 

 

$

37.2

 

Cash and cash equivalents

 

$

199.7

 

 

$

180.2

 

 

$

331.2

 

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: Q2 2024 vs. Q1 2024

Timberlands

Second Quarter 2024 Highlights

• Timberlands Adjusted EBITDDA decreased $0.5 million from Q1 2024
• Northern sawlog prices increased 9% primarily due to seasonally lighter logs and higher cedar sawlog prices
• Southern sawlog prices remained relatively flat
• Forest management costs increased due to seasonally higher activities

($ in millions)

 

Q2 2024

 

 

Q1 2024

 

 

$ Change

 

Timberlands Revenues

 

$

98.8

 

 

$

93.0

 

 

$

5.8

 

 

 

 

 

 

 

 

 

 

 

Timberlands Adjusted EBITDDA1

 

$

34.2

 

 

$

34.7

 

 

$

(0.5

)

1

Refer to Segment Information below for additional information.

Wood Products

Second Quarter 2024 Highlights

• Wood Products Adjusted EBITDDA decreased $6.7 million from Q1 2024
• Average lumber prices decreased 2% to $423 per thousand board feet (MBF) in Q2 2024
• Higher per-unit manufacturing costs primarily due to impacts from the expansion project at the Waldo sawmill

($ in millions)

 

Q2 2024

 

 

Q1 2024

 

 

$ Change

 

Wood Products Revenues

 

$

153.6

 

 

$

148.6

 

 

$

5.0

 

 

 

 

 

 

 

 

 

 

 

Wood Products Adjusted EBITDDA1

 

$

(6.8

)

 

$

(0.1

)

 

$

(6.7

)

1

Refer to Segment Information below for additional information.

Real Estate

Second Quarter 2024 Highlights

• Real Estate Adjusted EBITDDA increased $83.4 million from Q1 2024
• Sold 43,121 acres of rural land at an average price of $1,968 per acre, including the sale of 34,100 acres to Forest Investment Associates for $57 million
• Sold 13 residential lots at an average price of $112,721 per lot
• Sold 12 commercial acres for $492,746 per acre

($ in millions)

 

Q2 2024

 

 

Q1 2024

 

 

$ Change

 

Real Estate Revenues

 

$

95.7

 

 

$

11.1

 

 

$

84.6

 

 

 

 

 

 

 

 

 

 

 

Real Estate Adjusted EBITDDA1

 

$

89.6

 

 

$

6.2

 

 

$

83.4

 

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, July 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 August 6, 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 completion of the Waldo, AR sawmill expansion and modernization project; long-term housing fundamentals, inflation, interest rates, and demand for lumber; and similar matters. Words such as “believe,” “looking ahead,” “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 to complete our Waldo, Arkansas sawmill expansion and modernization project on budget and schedule and to achieve the expected increases in production capacity, reduction in cash processing costs, and recovery improvement; 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

 

Six Months Ended

(in thousands, except per share amounts)

June 30, 2024

 

March 31, 2024

 

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Revenues

$

320,671

 

 

$

228,127

 

 

 

$

246,101

 

 

$

548,798

 

 

$

504,063

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

282,473

 

 

 

212,160

 

 

 

 

215,063

 

 

 

494,633

 

 

 

439,413

 

Selling, general and administrative expenses

 

20,752

 

 

 

20,727

 

 

 

 

17,585

 

 

 

41,479

 

 

 

35,815

 

CatchMark merger-related expenses

 

—

 

 

 

—

 

 

 

 

 

244

 

 

 

—

 

 

 

2,453

 

Gain on fire damage

 

—

 

 

 

—

 

 

 

 

(23,110

)

 

 

—

 

 

 

(23,110

)

 

 

303,225

 

 

 

232,887

 

 

 

 

209,782

 

 

 

536,112

 

 

 

454,571

 

Operating income (loss)

 

17,446

 

 

 

(4,760

)

 

 

 

36,319

 

 

 

12,686

 

 

 

49,492

 

Interest expense, net

 

(8,696

)

 

 

282

 

 

 

 

(7,613

)

 

 

(8,414

)

 

 

(7,812

)

Non-operating pension and other postretirement employee benefits

 

201

 

 

 

201

 

 

 

 

(229

)

 

 

402

 

 

 

(457

)

Other

 

(23

)

 

 

(145

)

 

 

 

 

258

 

 

 

(168

)

 

 

268

 

Income (loss) before income taxes

 

8,928

 

 

 

(4,422

)

 

 

 

28,735

 

 

 

4,506

 

 

 

41,491

 

Income taxes

 

4,750

 

 

 

4,117

 

 

 

 

(6,429

)

 

 

8,867

 

 

 

(2,925

)

Net income (loss)

$

13,678

 

 

$

(305

)

 

 

$

22,306

 

 

$

13,373

 

 

$

38,566

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Basic

$

0.17

 

 

$

—

 

 

 

$

0.28

 

 

$

0.17

 

 

$

0.48

 

Diluted

$

0.17

 

 

$

—

 

 

 

$

0.28

 

 

$

0.17

 

 

$

0.48

 

Dividends per share

$

0.45

 

 

$

0.45

 

 

 

$

0.45

 

 

$

0.90

 

 

$

0.90

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

79,627

 

 

 

79,677

 

 

 

 

80,145

 

 

 

79,656

 

 

 

80,087

 

Diluted

 

79,741

 

 

 

79,677

 

 

 

 

80,416

 

 

 

79,756

 

 

 

80,297

 

 

 

 

 

 

 

 

 

 

 

 

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

 

(in thousands, except per share amounts)

 

June 30, 2024

 

 

December 31, 2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

199,723

 

 

$

230,118

 

Customer receivables, net

 

 

29,977

 

 

 

21,892

 

Inventories, net

 

 

80,097

 

 

 

78,665

 

Other current assets

 

 

47,132

 

 

 

46,258

 

Total current assets

 

 

356,929

 

 

 

376,933

 

Property, plant and equipment, net

 

 

377,060

 

 

 

372,832

 

Investment in real estate held for development and sale

 

 

55,298

 

 

 

56,321

 

Timber and timberlands, net

 

 

2,394,709

 

 

 

2,440,398

 

Intangible assets, net

 

 

14,751

 

 

 

15,640

 

Other long-term assets

 

 

180,304

 

 

 

169,132

 

Total assets

 

$

3,379,051

 

 

$

3,431,256

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

95,477

 

 

$

82,383

 

Current portion of long-term debt

 

 

175,692

 

 

 

175,615

 

Current portion of pension and other postretirement employee benefits

 

 

4,535

 

 

 

4,535

 

Total current liabilities

 

 

275,704

 

 

 

262,533

 

Long-term debt

 

 

858,617

 

 

 

858,113

 

Pension and other postretirement employee benefits

 

 

68,621

 

 

 

67,856

 

Deferred tax liabilities, net

 

 

27,680

 

 

 

36,641

 

Other long-term obligations

 

 

35,830

 

 

 

35,015

 

Total liabilities

 

 

1,266,452

 

 

 

1,260,158

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $1 par value, 200,000 shares authorized, 78,902 and 79,365 shares issued and outstanding

 

 

78,902

 

 

 

79,365

 

Additional paid-in capital

 

 

2,309,555

 

 

 

2,303,992

 

Accumulated deficit

 

 

(397,967

)

 

 

(315,291

)

Accumulated other comprehensive income

 

 

122,109

 

 

 

103,032

 

Total stockholders’ equity

 

 

2,112,599

 

 

 

2,171,098

 

Total liabilities and stockholders' equity

 

$

3,379,051

 

 

$

3,431,256

 

 

 

 

 

 

 

 

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

 

 

Three Months Ended

 

Six Months Ended

(in thousands)

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income (loss)

$

13,678

 

 

$

(305

)

 

$

22,306

 

 

$

13,373

 

 

$

38,566

 

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

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

29,674

 

 

 

30,802

 

 

 

27,496

 

 

 

60,476

 

 

 

59,669

 

Basis of real estate sold

 

56,525

 

 

 

4,092

 

 

 

4,884

 

 

 

60,617

 

 

 

15,515

 

Change in deferred taxes

 

(4,694

)

 

 

(4,145

)

 

 

(2,609

)

 

 

(8,839

)

 

 

(2,215

)

Pension and other postretirement employee benefits

 

1,145

 

 

 

1,143

 

 

 

1,612

 

 

 

2,288

 

 

 

3,223

 

Equity-based compensation expense

 

2,962

 

 

 

2,560

 

 

 

1,577

 

 

 

5,522

 

 

 

3,856

 

Gain on fire damage

 

—

 

 

 

—

 

 

 

(23,110

)

 

 

—

 

 

 

(23,110

)

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

 

(7,509

)

 

 

(7,458

)

 

 

(6,313

)

 

 

(14,967

)

 

 

(11,767

)

Other, net

 

2,351

 

 

 

2,961

 

 

 

1,911

 

 

 

5,312

 

 

 

3,856

 

Change in working capital and operating-related activities, net

 

9,256

 

 

 

(13,252

)

 

 

2,871

 

 

 

(3,996

)

 

 

(14,334

)

Real estate development expenditures

 

(1,587

)

 

 

(1,135

)

 

 

(1,896

)

 

 

(2,722

)

 

 

(4,304

)

Funding of pension and other postretirement employee benefits

 

(1,221

)

 

 

(914

)

 

 

(1,217

)

 

 

(2,135

)

 

 

(2,304

)

Proceeds from insurance recoveries

 

—

 

 

 

1,680

 

 

 

9,706

 

 

 

1,680

 

 

 

9,706

 

Net cash from operating activities

 

100,580

 

 

 

16,029

 

 

 

37,218

 

 

 

116,609

 

 

 

76,357

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Property, plant and equipment additions

 

(21,608

)

 

 

(4,995

)

 

 

(5,880

)

 

 

(26,603

)

 

 

(10,135

)

Timberlands reforestation and roads

 

(4,940

)

 

 

(7,874

)

 

 

(4,596

)

 

 

(12,814

)

 

 

(10,714

)

Acquisition of timber and timberlands

 

(43

)

 

 

(31,438

)

 

 

(1,621

)

 

 

(31,481

)

 

 

(1,621

)

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

 

6,986

 

 

 

6,938

 

 

 

5,849

 

 

 

13,924

 

 

 

10,904

 

Other, net

 

245

 

 

 

373

 

 

 

242

 

 

 

618

 

 

 

664

 

Net cash from investing activities

 

(19,360

)

 

 

(36,996

)

 

 

(6,006

)

 

 

(56,356

)

 

 

(10,902

)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Distributions to common stockholders

 

(35,677

)

 

 

(35,779

)

 

 

(35,958

)

 

 

(71,456

)

 

 

(71,920

)

Repurchase of common stock

 

(23,905

)

 

 

—

 

 

 

(394

)

 

 

(23,905

)

 

 

(394

)

Other, net

 

(1,444

)

 

 

(792

)

 

 

(1,117

)

 

 

(2,236

)

 

 

(1,955

)

Net cash from financing activities

 

(61,026

)

 

 

(36,571

)

 

 

(37,469

)

 

 

(97,597

)

 

 

(74,269

)

Change in cash, cash equivalents and restricted cash

 

20,194

 

 

 

(57,538

)

 

 

(6,257

)

 

 

(37,344

)

 

 

(8,814

)

Cash, cash equivalents and restricted cash, beginning

 

180,150

 

 

 

237,688

 

 

 

343,034

 

 

 

237,688

 

 

 

345,591

 

Cash, cash equivalents and restricted cash, ending1

$

200,344

 

 

$

180,150

 

 

$

336,777

 

 

$

200,344

 

 

$

336,777

 

1

Includes $0.7 million, $0, and $5.6 million at June 30, 2024, March 31, 2024, and June 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

 

Six Months Ended

(in thousands)

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Revenues

 

 

 

 

 

 

 

 

 

Timberlands

$

98,802

 

 

$

92,950

 

 

$

88,617

 

 

$

191,752

 

 

$

203,855

 

Wood Products

 

153,579

 

 

 

148,598

 

 

 

167,669

 

 

 

302,177

 

 

 

320,464

 

Real Estate

 

95,732

 

 

 

11,107

 

 

 

17,064

 

 

 

106,839

 

 

 

40,927

 

 

 

348,113

 

 

 

252,655

 

 

 

273,350

 

 

 

600,768

 

 

 

565,246

 

Intersegment Timberlands revenues

 

(27,442

)

 

 

(24,528

)

 

 

(27,243

)

 

 

(51,970

)

 

 

(61,177

)

Other intersegment revenues

 

—

 

 

 

—

 

 

 

(6

)

 

 

—

 

 

 

(6

)

Consolidated revenues

$

320,671

 

 

$

228,127

 

 

$

246,101

 

 

$

548,798

 

 

$

504,063

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

Timberlands

$

34,124

 

 

$

34,748

 

 

$

29,316

 

 

$

68,872

 

 

$

75,955

 

Wood Products

 

(6,805

)

 

 

(139

)

 

 

11,967

 

 

 

(6,944

)

 

 

11,936

 

Real Estate

 

89,568

 

 

 

6,228

 

 

 

12,237

 

 

 

95,796

 

 

 

31,702

 

Corporate

 

(11,756

)

 

 

(12,665

)

 

 

(10,521

)

 

 

(24,421

)

 

 

(21,262

)

Eliminations and adjustments

 

(1,958

)

 

 

1,550

 

 

 

2,446

 

 

 

(408

)

 

 

4,891

 

Total Adjusted EBITDDA

 

103,173

 

 

 

29,722

 

 

 

45,445

 

 

 

132,895

 

 

 

103,222

 

Interest expense, net2

 

(8,696

)

 

 

282

 

 

 

(7,613

)

 

 

(8,414

)

 

 

(7,812

)

Depreciation, depletion and amortization

 

(29,268

)

 

 

(30,395

)

 

 

(27,087

)

 

 

(59,663

)

 

 

(58,851

)

Basis of real estate sold

 

(56,525

)

 

 

(4,092

)

 

 

(4,884

)

 

 

(60,617

)

 

 

(15,515

)

CatchMark merger-related expenses

 

—

 

 

 

—

 

 

 

(244

)

 

 

—

 

 

 

(2,453

)

Gain on fire damage

 

—

 

 

 

—

 

 

 

23,110

 

 

 

—

 

 

 

23,110

 

Non-operating pension and other postretirement employee benefits

 

201

 

 

 

201

 

 

 

(229

)

 

 

402

 

 

 

(457

)

Gain (loss) on disposal of fixed assets

 

66

 

 

 

5

 

 

 

(21

)

 

 

71

 

 

 

(21

)

Other

 

(23

)

 

 

(145

)

 

 

258

 

 

 

(168

)

 

 

268

 

Income (loss) before income taxes

$

8,928

 

 

$

(4,422

)

 

$

28,735

 

 

$

4,506

 

 

$

41,491

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

 

 

 

 

 

 

 

Timberlands

$

16,790

 

 

$

17,625

 

 

$

15,895

 

 

$

34,415

 

 

$

36,356

 

Wood Products

 

12,227

 

 

 

12,516

 

 

 

10,948

 

 

 

24,743

 

 

 

21,983

 

Real Estate

 

136

 

 

 

138

 

 

 

121

 

 

 

274

 

 

 

277

 

Corporate

 

115

 

 

 

116

 

 

 

123

 

 

 

231

 

 

 

235

 

 

 

29,268

 

 

 

30,395

 

 

 

27,087

 

 

 

59,663

 

 

 

58,851

 

Bond discounts and deferred loan fees2

 

406

 

 

 

407

 

 

 

409

 

 

 

813

 

 

 

818

 

Total depreciation, depletion and amortization

$

29,674

 

 

$

30,802

 

 

$

27,496

 

 

$

60,476

 

 

$

59,669

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold

 

 

 

 

 

 

 

 

 

Real Estate

$

56,528

 

 

$

4,094

 

 

$

4,887

 

 

$

60,622

 

 

$

15,518

 

Eliminations and adjustments

 

(3

)

 

 

(2

)

 

 

(3

)

 

 

(5

)

 

 

(3

)

Total basis of real estate sold

$

56,525

 

 

$

4,092

 

 

$

4,884

 

 

$

60,617

 

 

$

15,515

 

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

 

Six Months Ended

(in thousands, except per share amount)

 

June 30, 2024

 

March 31, 2024

 

June 30, 2023

 

June 30, 2024

 

June 30, 2023

Total Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

 

$

13,678

 

 

$

(305

)

 

$

22,306

 

 

$

13,373

 

 

$

38,566

 

Interest expense, net

 

 

8,696

 

 

 

(282

)

 

 

7,613

 

 

 

8,414

 

 

 

7,812

 

Income taxes

 

 

(4,750

)

 

 

(4,117

)

 

 

6,429

 

 

 

(8,867

)

 

 

2,925

 

Depreciation, depletion and amortization

 

 

29,268

 

 

 

30,395

 

 

 

27,087

 

 

 

59,663

 

 

 

58,851

 

Basis of real estate sold

 

 

56,525

 

 

 

4,092

 

 

 

4,884

 

 

 

60,617

 

 

 

15,515

 

CatchMark merger-related expenses

 

 

—

 

 

 

—

 

 

 

244

 

 

 

—

 

 

 

2,453

 

Gain on fire damage

 

 

—

 

 

 

—

 

 

 

(23,110

)

 

 

—

 

 

 

(23,110

)

Non-operating pension and other postretirement employee benefits

 

 

(201

)

 

 

(201

)

 

 

229

 

 

 

(402

)

 

 

457

 

(Gain) loss on disposal of fixed assets

 

 

(66

)

 

 

(5

)

 

 

21

 

 

 

(71

)

 

 

21

 

Other

 

 

23

 

 

 

145

 

 

 

(258

)

 

 

168

 

 

 

(268

)

Total Adjusted EBITDDA

 

$

103,173

 

 

$

29,722

 

 

$

45,445

 

 

$

132,895

 

 

$

103,222

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss)1

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

 

$

13,678

 

 

$

(305

)

 

$

22,306

 

 

$

13,373

 

 

$

38,566

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

—

 

 

 

—

 

 

 

244

 

 

 

—

 

 

 

2,453

 

Gain on fire damage

 

 

—

 

 

 

—

 

 

 

(17,333

)

 

 

—

 

 

 

(17,333

)

Adjusted Net Income (Loss)

 

$

13,678

 

 

$

(305

)

 

$

5,217

 

 

$

13,373

 

 

$

23,686

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss) Per Diluted Share1

 

 

 

 

 

 

 

 

 

 

Net income (loss) per diluted share (GAAP)

 

$

0.17

 

 

$

—

 

 

$

0.28

 

 

$

0.17

 

 

$

0.48

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.03

 

Gain on fire damage

 

 

—

 

 

 

—

 

 

 

(0.22

)

 

 

—

 

 

 

(0.22

)

Adjusted Net Income (Loss) Per Diluted Share

 

$

0.17

 

 

$

—

 

 

$

0.06

 

 

$

0.17

 

 

$

0.29

 

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/20240729303934/en/

Investors Wayne Wasechek 509.835.1521 Media Anna Torma 509.835.1558