PotlatchDeltic Corporation Reports Third Quarter 2020 Results
PotlatchDeltic Corporation (Nasdaq:PCH) reported a net income of $81.0 million, equating to $1.20 per diluted share, for Q3 2020 on revenues of $313.0 million, compared to a net income of $20.6 million on revenues of $226.3 million in Q3 2019. The company achieved record quarterly Total Adjusted EBITDDA of $135.4 million, a margin of 43%. Key highlights include increased harvest volumes and significant profit growth in both Timberlands and Wood Products segments, driven by historic lumber prices. Liquidity strengthened to $528 million.
- Record quarterly Total Adjusted EBITDDA of $135.4 million and margin of 43%.
- Significant growth in Timberlands and Wood Products, with EBITDDA increases of $34.1 million and $70.8 million respectively.
- High average lumber prices at $637 per MBF, a 55% increase over Q2 2020.
- None.
SPOKANE, Wash.--(BUSINESS WIRE)--PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of
Third Quarter 2020 Highlights
-
Generated record quarterly Total Adjusted EBITDDA of
$135.4 million and Total Adjusted EBITDDA margin of43% - Historic lumber prices drove Wood Products record quarterly Adjusted EBITDDA performance
- Timberlands set quarterly records for harvest volume and Adjusted EBITDDA
-
Expanded strong liquidity position to
$528 million as of Q3 2020
“Our Timberlands and Wood Products businesses achieved record financial performance as outstanding operational execution by our employees capitalized on the historic run in lumber prices against the backdrop of a challenging COVID environment,” said Mike Covey, chairman and chief executive officer. “Looking to the fourth quarter of 2020, our financial results will continue to benefit from high lumber prices through an extended lumber order file and lagged index pricing on our Idaho sawlogs. Additionally, we expect that our Real Estate business will finish the year very strong by closing a large Minnesota transaction. PotlatchDeltic is well positioned to take advantage of favorable industry fundamentals and our strong liquidity provides a high degree of flexibility as we seek to maximize shareholder value,” stated Mr. Covey.
Financial Highlights
($ in millions, except per share data) |
|
Q3 2020 |
|
|
Q2 2020 |
|
|
Q3 2019 |
|
|||
Revenues |
|
$ |
313.0 |
|
|
$ |
181.6 |
|
|
$ |
226.3 |
|
Net income |
|
$ |
81.0 |
|
|
$ |
2.6 |
|
|
$ |
20.6 |
|
Weighted average shares outstanding, diluted (in thousands) |
|
|
67,528 |
|
|
|
67,359 |
|
|
|
67,545 |
|
Net income per diluted share |
|
$ |
1.20 |
|
|
$ |
0.04 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
$ |
81.0 |
|
|
$ |
2.6 |
|
|
$ |
20.6 |
|
Adjusted net income per diluted share |
|
$ |
1.20 |
|
|
$ |
0.04 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted EBITDDA |
|
$ |
135.4 |
|
|
$ |
35.3 |
|
|
$ |
55.0 |
|
Dividends per share |
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
Net cash from operations |
|
$ |
102.9 |
|
|
$ |
39.8 |
|
|
$ |
37.9 |
|
Cash and cash equivalents |
|
$ |
148.9 |
|
|
$ |
81.0 |
|
|
$ |
94.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Performance: Q3 2020 vs. Q2 2020
Timberlands
Third Quarter 2020 Highlights
-
Timberlands Adjusted EBITDDA increased
$34.1 million from Q2 levels
- Northern and Southern harvest volumes increased seasonally
-
Northern sawlog prices increased
30% due primarily to higher prices on lumber-indexed volume
($ in millions) |
|
Q3 2020 |
|
|
Q2 2020 |
|
|
$ Change |
|
|||
Timberlands Revenues |
|
$ |
117.0 |
|
|
$ |
67.3 |
|
|
$ |
49.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberlands Adjusted EBITDDA |
|
$ |
59.7 |
|
|
$ |
25.6 |
|
|
$ |
34.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wood Products
Third Quarter 2020 Highlights
-
Wood Products Adjusted EBITDDA increased
$70.8 million from Q2 2020 levels
-
Average lumber price was
$637 per MBF Q3 2020,55% higher than Q2 2020
-
Lumber shipments increased
17% in Q3 2020 driven by higher production hours
- Wood Products positively impacted by plywood mill returning to normal operating level after Q2 2020 curtailment
($ in millions) |
|
Q3 2020 |
|
|
Q2 2020 |
|
|
$ Change |
|
|||
Wood Products Revenues |
|
$ |
218.3 |
|
|
$ |
126.2 |
|
|
$ |
92.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wood Products Adjusted EBITDDA |
|
$ |
81.7 |
|
|
$ |
10.9 |
|
|
$ |
70.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
Third Quarter 2020 Highlights
-
Real Estate Adjusted EBITDDA increased
$4.1 million from Q2 2020 levels -
Sold 11,048 acres of rural land for
$1,202 /acre -
Sold 26 residential lots at an average
$83,000 /lot in Q3 2020
($ in millions) |
|
Q3 2020 |
|
|
Q2 2020 |
|
|
$ Change |
|
|||
Real Estate Revenues |
|
$ |
18.2 |
|
|
$ |
13.0 |
|
|
$ |
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Adjusted EBITDDA |
|
$ |
13.4 |
|
|
$ |
9.3 |
|
|
$ |
4.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP.
Management uses Adjusted EBITDDA to evaluate the performance of the company. This is a non-GAAP measure that represents EBITDDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses.
Adjusted Net Income and Adjusted Net Income Per Diluted Share are non-GAAP measures that represent GAAP net income and GAAP net earnings per diluted share before certain items that impact the ability of investors, securities analysts and other interested parties to compare the performance of our business, either period-over-period or with other businesses.
Reconciliations to GAAP are set forth in the accompanying schedules.
Conference Call Information
A live conference call and webcast will be held Tuesday, October 27, 2020, 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 1-833-968-2227 for U.S./Canada and 1-778-560-2697 for international callers. Participants will be asked to provide conference I.D. number 9171206. Supplemental materials that will be discussed during the call are available on the website.
A replay of the conference call will be available three hours following the call until November 3, 2020 by calling 1-800-585-8367 for U.S./Canada or 1-416-621-4642 for international callers. Callers must enter conference I.D. number 9171206 to access the replay.
About PotlatchDeltic
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. 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 current and expected liquidity; the effects of COVID-19 on demand for our products and on our ability to continue operations; the success of the company’s business strategies; the company’s intent to refinance debt maturing in 2020 and beyond; the company’s capital allocation strategies, including share repurchases and dividend expectations; maintaining the company’s investment grade credit rating; favorable capital structure and strong balance sheet; interest rates and expenses; corporate expenses; pension expenses; taxes; fourth quarter 2020 outlook; the housing market and repair and remodel market; housing starts; lumber supply, demand and pricing; revenues, costs and expenses; lumber shipment volumes; expected sawlog demand and timber harvest volumes; sawlog mix and pricing; rural real estate and residential real estate development sales, including the closing of the sale of approximately 72,000 rural acres in the fourth quarter of 2020, and average price per acre and developed lot; planned capital expenditures and anticipated internal rate of return; business conditions; and similar matters. Words such as “anticipate,” “expect,” “will,” “intend,” “plan,” “target,” “project,” “believe,” “seek,” “schedule,” “estimate,” “could,” “can,” “may,” 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, including impact of the COVID-19 outbreak on our business, suppliers, customers and employees; 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 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; the company’s ability to meet expectations; 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, |
|
||||||||
(in thousands, except per share amounts) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||||
Revenues |
|
$ |
313,046 |
|
|
$ |
181,555 |
|
|
$ |
226,302 |
|
|
$ |
703,481 |
|
|
$ |
623,599 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
182,039 |
|
|
|
149,836 |
|
|
|
182,634 |
|
|
|
503,921 |
|
|
|
512,522 |
|
Selling, general and administrative expenses |
|
|
21,046 |
|
|
|
16,811 |
|
|
|
12,472 |
|
|
|
52,064 |
|
|
|
43,994 |
|
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,176 |
) |
|
|
|
203,085 |
|
|
|
166,647 |
|
|
|
195,106 |
|
|
|
555,985 |
|
|
|
547,340 |
|
Operating income |
|
|
109,961 |
|
|
|
14,908 |
|
|
|
31,196 |
|
|
|
147,496 |
|
|
|
76,259 |
|
Interest expense, net |
|
|
(8,557 |
) |
|
|
(8,339 |
) |
|
|
(8,475 |
) |
|
|
(20,594 |
) |
|
|
(21,821 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,512 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(42,988 |
) |
|
|
— |
|
Non-operating pension and other postretirement employee benefit costs |
|
|
(3,557 |
) |
|
|
(3,478 |
) |
|
|
(935 |
) |
|
|
(10,670 |
) |
|
|
(2,804 |
) |
Income before income taxes |
|
|
97,847 |
|
|
|
3,091 |
|
|
|
21,786 |
|
|
|
73,244 |
|
|
|
46,122 |
|
Income taxes |
|
|
(16,840 |
) |
|
|
(453 |
) |
|
|
(1,221 |
) |
|
|
(6,431 |
) |
|
|
(1,860 |
) |
Net income |
|
$ |
81,007 |
|
|
$ |
2,638 |
|
|
$ |
20,565 |
|
|
$ |
66,813 |
|
|
$ |
44,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.21 |
|
|
$ |
0.04 |
|
|
$ |
0.30 |
|
|
$ |
0.99 |
|
|
$ |
0.65 |
|
Diluted |
|
$ |
1.20 |
|
|
$ |
0.04 |
|
|
$ |
0.30 |
|
|
$ |
0.99 |
|
|
$ |
0.65 |
|
Dividends per share |
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
1.20 |
|
|
$ |
1.20 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
67,149 |
|
|
|
67,176 |
|
|
|
67,446 |
|
|
|
67,263 |
|
|
|
67,781 |
|
Diluted |
|
|
67,528 |
|
|
|
67,359 |
|
|
|
67,545 |
|
|
|
67,535 |
|
|
|
67,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PotlatchDeltic Corporation Condensed Consolidated Balance Sheets Unaudited |
||||||||
(in thousands, except per share amounts) |
|
September 30, 2020 |
|
|
December 31, 2019 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
148,919 |
|
|
$ |
83,310 |
|
Customer receivables, net |
|
|
50,084 |
|
|
|
14,167 |
|
Inventories, net |
|
|
58,572 |
|
|
|
65,781 |
|
Other current assets |
|
|
21,090 |
|
|
|
20,183 |
|
Total current assets |
|
|
278,665 |
|
|
|
183,441 |
|
Property, plant and equipment, net |
|
|
289,305 |
|
|
|
286,383 |
|
Investment in real estate held for development and sale |
|
|
74,216 |
|
|
|
74,233 |
|
Timber and timberlands, net |
|
|
1,608,026 |
|
|
|
1,638,663 |
|
Intangible assets, net |
|
|
16,465 |
|
|
|
17,049 |
|
Other long-term assets |
|
|
31,236 |
|
|
|
35,290 |
|
Total assets |
|
$ |
2,297,913 |
|
|
$ |
2,235,059 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
108,425 |
|
|
$ |
60,577 |
|
Current portion of long-term debt |
|
|
45,995 |
|
|
|
45,974 |
|
Current portion of pension and other postretirement employee benefits |
|
|
6,701 |
|
|
|
6,701 |
|
Total current liabilities |
|
|
161,121 |
|
|
|
113,252 |
|
Long-term debt |
|
|
711,254 |
|
|
|
710,495 |
|
Pension and other postretirement employee benefits |
|
|
139,022 |
|
|
|
115,463 |
|
Deferred tax liabilities, net |
|
|
12,202 |
|
|
|
20,165 |
|
Other long-term obligations |
|
|
78,237 |
|
|
|
48,853 |
|
Total liabilities |
|
|
1,101,836 |
|
|
|
1,008,228 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, authorized 4,000 shares, no shares issued |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
66,872 |
|
|
|
67,221 |
|
Additional paid-in capital |
|
|
1,672,351 |
|
|
|
1,666,299 |
|
Accumulated deficit |
|
|
(388,000 |
) |
|
|
(359,330 |
) |
Accumulated other comprehensive loss |
|
|
(155,146 |
) |
|
|
(147,359 |
) |
Total stockholders’ equity |
|
|
1,196,077 |
|
|
|
1,226,831 |
|
Total liabilities and stockholders' equity |
|
$ |
2,297,913 |
|
|
$ |
2,235,059 |
|
|
|
|
|
|
|
|
|
|
PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
(in thousands) |
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
September 30, 2019 |
|
|
September 30, 2020 |
|
|
September 30, 2019 |
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
81,007 |
|
|
$ |
2,638 |
|
|
$ |
20,565 |
|
|
$ |
66,813 |
|
|
$ |
44,262 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
20,594 |
|
|
|
18,171 |
|
|
|
19,178 |
|
|
|
57,809 |
|
|
|
52,589 |
|
Basis of real estate sold |
|
|
5,249 |
|
|
|
2,693 |
|
|
|
5,228 |
|
|
|
14,440 |
|
|
|
14,211 |
|
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,176 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,512 |
|
Change in deferred taxes |
|
|
(538 |
) |
|
|
(1,466 |
) |
|
|
295 |
|
|
|
(14,387 |
) |
|
|
(16,943 |
) |
Pension and other postretirement employee benefits |
|
|
5,917 |
|
|
|
5,765 |
|
|
|
2,970 |
|
|
|
17,750 |
|
|
|
8,907 |
|
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42,988 |
|
|
|
— |
|
Equity-based compensation expense |
|
|
2,063 |
|
|
|
1,980 |
|
|
|
1,913 |
|
|
|
5,928 |
|
|
|
5,362 |
|
Other, net |
|
|
(367 |
) |
|
|
(414 |
) |
|
|
(764 |
) |
|
|
(544 |
) |
|
|
(2,692 |
) |
Change in working capital and operating-related activities, net |
|
|
(3,691 |
) |
|
|
13,840 |
|
|
|
(8,745 |
) |
|
|
12,706 |
|
|
|
13,745 |
|
Real estate development expenditures |
|
|
(1,713 |
) |
|
|
(2,109 |
) |
|
|
(1,257 |
) |
|
|
(4,200 |
) |
|
|
(5,738 |
) |
Funding of pension and other postretirement employee benefits |
|
|
(5,619 |
) |
|
|
(1,293 |
) |
|
|
(1,477 |
) |
|
|
(8,458 |
) |
|
|
(4,612 |
) |
Net cash provided by operating activities |
|
|
102,902 |
|
|
|
39,805 |
|
|
|
37,906 |
|
|
|
190,845 |
|
|
|
105,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment additions |
|
|
(4,371 |
) |
|
|
(5,256 |
) |
|
|
(10,094 |
) |
|
|
(14,666 |
) |
|
|
(25,596 |
) |
Timberlands reforestation and roads |
|
|
(4,569 |
) |
|
|
(3,466 |
) |
|
|
(5,079 |
) |
|
|
(12,345 |
) |
|
|
(13,269 |
) |
Acquisition of timber and timberlands |
|
|
(8 |
) |
|
|
(540 |
) |
|
|
— |
|
|
|
(4,738 |
) |
|
|
(278 |
) |
Proceeds on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000 |
|
|
|
58,793 |
|
Proceeds on disposition of property, plant and equipment |
|
|
335 |
|
|
|
— |
|
|
|
2,017 |
|
|
|
335 |
|
|
|
2,017 |
|
Other, net |
|
|
36 |
|
|
|
608 |
|
|
|
87 |
|
|
|
2,149 |
|
|
|
520 |
|
Net cash (used in) provided by investing activities |
|
|
(8,577 |
) |
|
|
(8,654 |
) |
|
|
(13,069 |
) |
|
|
(28,265 |
) |
|
|
22,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to common stockholders |
|
|
(26,749 |
) |
|
|
(26,744 |
) |
|
|
(26,888 |
) |
|
|
(80,434 |
) |
|
|
(80,834 |
) |
Repurchase of common stock |
|
|
— |
|
|
|
(3,009 |
) |
|
|
— |
|
|
|
(15,364 |
) |
|
|
(25,173 |
) |
Proceeds from issuance of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
150,000 |
|
Repayment of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(150,000 |
) |
Premiums and fees on debt retirement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,865 |
) |
Other, net |
|
|
(506 |
) |
|
|
(284 |
) |
|
|
(129 |
) |
|
|
(1,032 |
) |
|
|
(393 |
) |
Net cash used in financing activities |
|
|
(27,255 |
) |
|
|
(30,037 |
) |
|
|
(27,017 |
) |
|
|
(96,830 |
) |
|
|
(111,265 |
) |
Change in cash, cash equivalents and restricted cash |
|
|
67,070 |
|
|
|
1,114 |
|
|
|
(2,180 |
) |
|
|
65,750 |
|
|
|
16,349 |
|
Cash, cash equivalents and restricted cash, beginning |
|
|
82,934 |
|
|
|
81,820 |
|
|
|
97,970 |
|
|
|
84,254 |
|
|
|
79,441 |
|
Cash, cash equivalents and restricted cash, ending |
|
$ |
150,004 |
|
|
$ |
82,934 |
|
|
$ |
95,790 |
|
|
$ |
150,004 |
|
|
$ |
95,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PotlatchDeltic Corporation Segment Information Unaudited |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
Nine Months Ended |
|
||||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
|
|
September 30, |
|
||||||||||
(in thousands) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberlands |
|
$ |
116,985 |
|
|
$ |
67,345 |
|
|
$ |
98,809 |
|
|
|
|
$ |
266,755 |
|
|
|
|
$ |
233,848 |
|
Wood Products |
|
|
218,291 |
|
|
|
126,216 |
|
|
|
143,643 |
|
|
|
|
|
489,507 |
|
|
|
|
|
413,979 |
|
Real Estate |
|
|
18,151 |
|
|
|
13,105 |
|
|
|
18,863 |
|
|
|
|
|
42,225 |
|
|
|
|
|
61,459 |
|
|
|
|
353,427 |
|
|
|
206,666 |
|
|
|
261,315 |
|
|
|
|
|
798,487 |
|
|
|
|
|
709,286 |
|
Intersegment Timberlands revenues |
|
|
(40,381 |
) |
|
|
(25,111 |
) |
|
|
(35,013 |
) |
|
|
|
|
(95,006 |
) |
|
|
|
|
(85,687 |
) |
Consolidated revenues |
|
$ |
313,046 |
|
|
$ |
181,555 |
|
|
$ |
226,302 |
|
|
|
|
$ |
703,481 |
|
|
|
|
$ |
623,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberlands |
|
$ |
59,649 |
|
|
$ |
25,659 |
|
|
$ |
42,996 |
|
|
|
|
$ |
120,290 |
|
|
|
|
$ |
95,977 |
|
Wood Products |
|
|
81,644 |
|
|
|
10,907 |
|
|
|
5,903 |
|
|
|
|
|
105,780 |
|
|
|
|
|
11,058 |
|
Real Estate |
|
|
13,466 |
|
|
|
9,256 |
|
|
|
14,678 |
|
|
|
|
|
30,062 |
|
|
|
|
|
48,697 |
|
Corporate |
|
|
(15,361 |
) |
|
|
(10,534 |
) |
|
|
(6,930 |
) |
|
|
|
|
(34,567 |
) |
|
|
|
|
(26,930 |
) |
Eliminations and adjustments |
|
|
(4,012 |
) |
|
|
85 |
|
|
|
(1,635 |
) |
|
|
|
|
(3,235 |
) |
|
|
|
|
3,542 |
|
Total Adjusted EBITDDA |
|
|
135,386 |
|
|
|
35,373 |
|
|
|
55,012 |
|
|
|
|
|
218,330 |
|
|
|
|
|
132,344 |
|
Basis of real estate sold |
|
|
(5,249 |
) |
|
|
(2,693 |
) |
|
|
(5,228 |
) |
|
|
|
|
(14,440 |
) |
|
|
|
|
(14,211 |
) |
Depreciation, depletion and amortization |
|
|
(20,187 |
) |
|
|
(17,765 |
) |
|
|
(18,786 |
) |
|
|
|
|
(56,590 |
) |
|
|
|
|
(51,310 |
) |
Interest expense, net |
|
|
(8,557 |
) |
|
|
(8,339 |
) |
|
|
(8,475 |
) |
|
|
|
|
(20,594 |
) |
|
|
|
|
(21,821 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(5,512 |
) |
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
(42,988 |
) |
|
|
|
|
— |
|
Non-operating pension and other postretirement employee benefits |
|
|
(3,557 |
) |
|
|
(3,478 |
) |
|
|
(935 |
) |
|
|
|
|
(10,670 |
) |
|
|
|
|
(2,804 |
) |
Gain (loss) on disposal of fixed assets |
|
|
11 |
|
|
|
(7 |
) |
|
|
198 |
|
|
|
|
|
196 |
|
|
|
|
|
260 |
|
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
9,176 |
|
Income before income taxes |
|
$ |
97,847 |
|
|
$ |
3,091 |
|
|
$ |
21,786 |
|
|
|
|
$ |
73,244 |
|
|
|
|
$ |
46,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberlands |
|
$ |
13,821 |
|
|
$ |
11,566 |
|
|
$ |
12,627 |
|
|
|
|
$ |
37,978 |
|
|
|
|
$ |
33,361 |
|
Wood Products |
|
|
5,983 |
|
|
|
5,798 |
|
|
|
5,763 |
|
|
|
|
|
17,411 |
|
|
|
|
|
16,666 |
|
Real Estate |
|
|
149 |
|
|
|
156 |
|
|
|
152 |
|
|
|
|
|
465 |
|
|
|
|
|
508 |
|
Corporate |
|
|
234 |
|
|
|
245 |
|
|
|
244 |
|
|
|
|
|
736 |
|
|
|
|
|
775 |
|
|
|
|
20,187 |
|
|
|
17,765 |
|
|
|
18,786 |
|
|
|
|
|
56,590 |
|
|
|
|
|
51,310 |
|
Bond discounts and deferred loan fees2 |
|
|
407 |
|
|
|
406 |
|
|
|
392 |
|
|
|
|
|
1,219 |
|
|
|
|
|
1,279 |
|
Total depreciation, depletion and amortization |
|
$ |
20,594 |
|
|
$ |
18,171 |
|
|
$ |
19,178 |
|
|
|
|
$ |
57,809 |
|
|
|
|
$ |
52,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
$ |
5,257 |
|
|
$ |
3,212 |
|
|
$ |
5,283 |
|
|
|
|
$ |
14,973 |
|
|
|
|
$ |
14,326 |
|
Eliminations and adjustments |
|
|
(8 |
) |
|
|
(519 |
) |
|
|
(55 |
) |
|
|
|
|
(533 |
) |
|
|
|
|
(115 |
) |
Total basis of real estate sold |
|
$ |
5,249 |
|
|
$ |
2,693 |
|
|
$ |
5,228 |
|
|
|
|
$ |
14,440 |
|
|
|
|
$ |
14,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA on page 8, Reconciliations.
- Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations.
PotlatchDeltic Corporation Reconciliations Unaudited |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
Nine Months Ended |
|
||||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
|
|
September 30, |
|
||||||||||
(in thousands, except per share amount) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|||||
Total Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
81,007 |
|
|
$ |
2,638 |
|
|
$ |
20,565 |
|
|
|
|
$ |
66,813 |
|
|
|
|
$ |
44,262 |
|
Interest expense, net |
|
|
8,557 |
|
|
|
8,339 |
|
|
|
8,475 |
|
|
|
|
|
20,594 |
|
|
|
|
|
21,821 |
|
Income taxes |
|
|
16,840 |
|
|
|
453 |
|
|
|
1,221 |
|
|
|
|
|
6,431 |
|
|
|
|
|
1,860 |
|
Depreciation, depletion and amortization |
|
|
20,187 |
|
|
|
17,765 |
|
|
|
18,786 |
|
|
|
|
|
56,590 |
|
|
|
|
|
51,310 |
|
Basis of real estate sold |
|
|
5,249 |
|
|
|
2,693 |
|
|
|
5,228 |
|
|
|
|
|
14,440 |
|
|
|
|
|
14,211 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,512 |
|
Pension settlement charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
42,988 |
|
|
|
|
|
— |
|
Non-operating pension and other postretirement benefit costs |
|
|
3,557 |
|
|
|
3,478 |
|
|
|
935 |
|
|
|
|
|
10,670 |
|
|
|
|
|
2,804 |
|
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(9,176 |
) |
(Gain) loss on disposal of fixed assets |
|
|
(11 |
) |
|
|
7 |
|
|
|
(198 |
) |
|
|
|
|
(196 |
) |
|
|
|
|
(260 |
) |
Total Adjusted EBITDDA |
|
$ |
135,386 |
|
|
$ |
35,373 |
|
|
$ |
55,012 |
|
|
|
|
$ |
218,330 |
|
|
|
|
$ |
132,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
81,007 |
|
|
$ |
2,638 |
|
|
$ |
20,565 |
|
|
|
|
$ |
66,813 |
|
|
|
|
$ |
44,262 |
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,512 |
|
Pension settlement charge, after tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
31,811 |
|
|
|
|
|
— |
|
Gain on sale of facility, after tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(6,790 |
) |
Adjusted net income |
|
$ |
81,007 |
|
|
$ |
2,638 |
|
|
$ |
20,565 |
|
|
|
|
$ |
98,624 |
|
|
|
|
$ |
42,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted share (GAAP) |
|
$ |
1.20 |
|
|
$ |
0.04 |
|
|
$ |
0.30 |
|
|
|
|
$ |
0.99 |
|
|
|
|
$ |
0.65 |
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
0.08 |
|
Pension settlement charge, after tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
0.47 |
|
|
|
|
|
— |
|
Gain on sale of facility, after tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(0.10 |
) |
Adjusted net income per diluted share |
|
$ |
1.20 |
|
|
$ |
0.04 |
|
|
$ |
0.30 |
|
|
|
|
$ |
1.46 |
|
|
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
