Weyerhaeuser Reports First Quarter Results

• Achieved net earnings of $151 million, or $0.21 per diluted share
• Generated Adjusted EBITDA of $395 million, a 7 percent increase compared with fourth quarter 2022
• Returned approximately $800 million in cash to shareholders through base and supplemental dividends
• Increased quarterly base dividend by 5.6 percent

SEATTLE, April 27, 2023 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $151 million, or 21 cents per diluted share, on net sales of $1.9 billion. This compares with net earnings of $771 million, or $1.03 per diluted share, on net sales of $3.1 billion for the same period last year and net earnings of $11 million for the fourth quarter of 2022. There were no special items in first quarter 2023. Net earnings before special items were $978 million for the same period last year and $171 million for the fourth quarter of 2022. Adjusted EBITDA for the first quarter of 2023 was $395 million compared with $1.5 billion for the same period last year and $369 million for the fourth quarter of 2022.

"I am pleased with the solid operational and financial results delivered by our teams in the first quarter," said Devin W. Stockfish, president and chief executive officer. "In addition, during the quarter we increased our base dividend by 5.6 percent and returned more than $830 million to shareholders through base and supplemental dividend payments and share repurchase activity. Looking forward, we remain constructive on the longer-term demand fundamentals that will drive growth for our businesses, notwithstanding the current macroeconomic headwinds. Our financial position is exceptionally strong, and we remain focused on driving operational excellence across our unmatched portfolio of assets and enhancing shareholder value through disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS		2022				2023				2022
(millions, except per share data)		Q4				Q1				Q1
Net sales		$	1,823			$	1,881			$	3,112
Net earnings		$	11			$	151			$	771
Net earnings per diluted share		$	0.02			$	0.21			$	1.03
Weighted average shares outstanding, diluted			737				734				749
Net earnings before special items(1)(2)		$	171			$	151			$	978
Net earnings per diluted share before special items(1)		$	0.24			$	0.21			$	1.31
Adjusted EBITDA(1)		$	369			$	395			$	1,497
Net cash from operations		$	167			$	126			$	957
Adjusted FAD(3)		$	(56)			$	55			$	850

(1)	Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.
(2)	Special items for prior periods presented are included in the reconciliation tables within this release.
(3)	Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS		2022				2023
(millions)		Q4				Q1				Change
Net sales		$	548			$	604			$	56
Net contribution to pretax earnings		$	86			$	120			$	34
Adjusted EBITDA		$	150			$	188			$	38

Q1 2023 Performance – In the West, fee harvest volumes were significantly higher than the fourth quarter which had one month of operations affected by the work stoppage. Sales volumes were significantly higher, particularly for export volumes to China. Sales realizations were lower, driven by domestic and Japanese export sales. Per unit log and haul costs were moderately lower and forestry and road costs were seasonally lower. In the South, fee harvest volumes were slightly higher and sales realizations were comparable. Per unit log and haul costs were slightly lower and forestry and road costs were slightly higher.

Q2 2023 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be approximately $20 million lower than the first quarter. In the West, the company expects moderately lower sales realizations, partially offset by significantly lower per unit log and haul costs and moderately higher fee harvest volumes. In the South, sales realizations and per unit log and haul costs are expected to be slightly lower, while fee harvest volumes are expected to be comparable. The company expects forestry and road costs in the West and South to be seasonally higher.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS		2022				2023
(millions)		Q4				Q1				Change
Net sales		$	55			$	101			$	46
Net contribution to pretax earnings		$	24			$	53			$	29
Pretax charge for special items		$	10			$	—			$	(10)
Net contribution to pretax earnings before special items		$	34			$	53			$	19
Adjusted EBITDA		$	46			$	89			$	43

Q1 2023 Performance – Earnings and Adjusted EBITDA increased from the fourth quarter due to higher real estate sales, partially offset by lower royalty income from the company's Energy and Natural Resources business. The number of acres sold increased significantly due to the timing of transactions, and the average price per acre decreased due to the mix of properties sold. 

Q2 2023 Outlook – Weyerhaeuser anticipates second quarter earnings will be comparable to the first quarter and Adjusted EBITDA will be approximately $20 million lower than the first quarter due to the timing and mix of real estate sales.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS		2022				2023
(millions)		Q4				Q1				Change
Net sales		$	1,331			$	1,318			$	(13)
Net contribution to pretax earnings		$	147			$	95			$	(52)
Adjusted EBITDA		$	197			$	148			$	(49)

Q1 2023 Performance – Sales realizations for lumber and oriented strand board decreased 9 percent and 20 percent, respectively, compared with fourth quarter averages. Sales and production volumes for lumber were significantly higher than the fourth quarter which had one month of operations affected by the work stoppage at mills in the Northwest. Unit manufacturing costs were significantly lower and log costs were comparable. For oriented strand board, sales volumes were significantly higher due to increased production and improved transportation networks. Unit manufacturing costs and fiber costs were both moderately lower. Sales realizations and sales volumes were lower for most engineered wood products due to softening demand. Raw material costs were lower, primarily for oriented strand board webstock.

Q2 2023 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be slightly higher than the first quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects higher sales volumes and moderately lower log costs and unit manufacturing costs. For oriented strand board, the company anticipates comparable sales volumes, slightly lower fiber costs and moderately higher unit manufacturing costs. Sales volumes are expected to be significantly higher and raw material costs are expected to be moderately lower for most engineered wood products, partially offset by moderately lower sales realizations.  

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 28, 2023, to discuss first quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 28, 2023.

To join the conference call from within North America, dial 1-877-407-0792 (access code: 13734907) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13734907). Replays will be available for two weeks at 1-844-512-2921 (access code: 13734907) from within North America, and at 1-412-317-6671 (access code: 13734907) from outside North America.

FORWARD-LOOKING STATEMENTS

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, with respect to our outlook and expectations concerning the following: the growth of our business and long-term demand drivers; earnings and Adjusted EBITDA for the company and for each of our businesses; fee harvest volumes, sales realizations, log and haul costs and forestry and road expenses for our Timberlands business; sales volumes, log costs and unit manufacturing costs for our lumber business; sales volumes, fiber costs and unit manufacturing costs for our oriented strand board business; and sales volumes, sales realizations and raw material costs for our engineered wood products business. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words and expressions such as "anticipate," "expect," "looking forward," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words and expressions. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

• the effect of general economic conditions, including employment rates, interest rate levels, inflation, housing starts, general availability and cost of financing for home mortgages and the relative strength of the U.S. dollar;
• the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
• market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
• changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
• restrictions on international trade and tariffs imposed on imports or exports;
• the availability and cost of shipping and transportation;
• economic activity in Asia, especially Japan and China;
• performance of our manufacturing operations, including maintenance and capital requirements;
• potential disruptions in our manufacturing operations;
• the level of competition from domestic and foreign producers;
• the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
• our ability to hire and retain capable employees;
• the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements;
• raw material availability and prices;
• the effect of weather;
• changes in global or regional climate conditions and governmental response to such changes;
• the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
• energy prices;
• transportation and labor availability and costs;
• federal tax policies;
• the effect of forestry, land use, environmental and other governmental regulations;
• legal proceedings;
• performance of pension fund investments and related derivatives;
• the effect of timing of employee retirements as it relates to the cost of pension benefits and changes in the market price of our common stock on charges for share-based compensation;
• the accuracy of our estimates of costs and expenses related to contingent liabilities and the accuracy of our estimates of charges related to casualty losses;
• changes in accounting principles; and
• other risks and uncertainties identified in our 2022 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS

We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) for the business segments, as those are the most directly comparable U.S. GAAP measures for each.

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2022:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	11
Interest expense, net of capitalized interest																			66
Income taxes																			(45)
Net contribution (charge) to earnings		$	86			$	24			$	147			$	(225)			$	32
Non-operating pension and other post- employment benefit costs(1)			—				—				—				216				216
Interest income and other			—				—				—				(16)				(16)
Operating income (loss)			86				24				147				(25)				232
Depreciation, depletion and amortization			64				5				50				1				120
Basis of real estate sold			—				7				—				—				7
Special items included in operating income (loss)(2)			—				10				—				—				10
Adjusted EBITDA		$	150			$	46			$	197			$	(24)			$	369

(1)	Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $205 million noncash settlement charge related to the transfer of pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract.
(2)	Operating income (loss) for Real Estate & ENR includes a pretax special item consisting of a $10 million noncash impairment charge related to the planned divestiture of legacy coal assets.

The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2023:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	151
Interest expense, net of capitalized interest																			66
Income taxes																			22
Net contribution (charge) to earnings		$	120			$	53			$	95			$	(29)			$	239
Non-operating pension and other post- employment benefit costs			—				—				—				9				9
Interest income and other			—				—				—				(12)				(12)
Operating income (loss)			120				53				95				(32)				236
Depreciation, depletion and amortization			68				3				53				2				126
Basis of real estate sold			—				33				—				—				33
Adjusted EBITDA		$	188			$	89			$	148			$	(30)			$	395

The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2022:

(millions)		Timberlands				Real Estate  & ENR				Wood  Products				Unallocated  Items				Total
Adjusted EBITDA by Segment:
Net earnings																		$	771
Interest expense, net of capitalized interest																			72
Loss on debt extinguishment(1)																			276
Income taxes																			209
Net contribution (charge) to earnings		$	182			$	81			$	1,182			$	(117)			$	1,328
Non-operating pension and other post- employment benefit costs			—				—				—				15				15
Interest income and other			—				—				—				1				1
Operating income (loss)			182				81				1,182				(101)				1,344
Depreciation, depletion and amortization			65				4				51				2				122
Basis of real estate sold			—				31				—				—				31
Adjusted EBITDA		$	247			$	116			$	1,233			$	(99)			$	1,497

(1)	Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt.

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS

We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to net earnings:

		2022				2023				2022
(millions)		Q4				Q1				Q1
Net earnings		$	11			$	151			$	771
Loss on debt extinguishment			—				—				207
Pension settlement charge			152				—				—
Restructuring, impairments and other charges			8				—				—
Net earnings before special items		$	171			$	151			$	978

The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:

		2022				2023				2022
		Q4				Q1				Q1
Net earnings per diluted share		$	0.02			$	0.21			$	1.03
Loss on debt extinguishment			—				—				0.28
Pension settlement charge			0.21				—				—
Restructuring, impairments and other charges			0.01				—				—
Net earnings per diluted share before special items		$	0.24			$	0.21			$	1.31

RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS

We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.

The table below reconciles Adjusted FAD to net cash from operations:

		2022				2023				2022
(millions)		Q4				Q1				Q1
Net cash from operations		$	167			$	126			$	957
Capital expenditures			(223)				(71)				(70)
Adjustments to FAD(1)			—				—				(37)
Adjusted FAD		$	(56)			$	55			$	850

(1)	Adjustments to FAD include a $37 million product remediation insurance recovery received in first quarter 2022.

 

Weyerhaeuser Company                                                                                                               Exhibit 99.2
Q1.2023 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Operations
		Q4				Q1
in millions		Dec 31, 2022				March 31, 2023				March 31, 2022
Net sales		$	1,823			$	1,881			$	3,112
Costs of sales			1,434				1,512				1,647
Gross margin			389				369				1,465
Selling expenses			23				22				23
General and administrative expenses			104				101				92
Other operating costs, net			30				10				6
Operating income			232				236				1,344
Non-operating pension and other post-employment benefit costs			(216)				(9)				(15)
Interest income and other			16				12				(1)
Interest expense, net of capitalized interest			(66)				(66)				(72)
Loss on debt extinguishment			—				—				(276)
(Loss) earnings before income taxes			(34)				173				980
Income taxes			45				(22)				(209)
Net earnings		$	11			$	151			$	771

 

Per Share Information
		Q4				Q1
		Dec 31, 2022				March 31, 2023				March 31, 2022
Earnings per share
Basic		$	0.02			$	0.21			$	1.03
Diluted		$	0.02			$	0.21			$	1.03
Dividends paid per common share		$	0.18			$	1.09			$	1.63
Weighted average shares outstanding (in thousands):
Basic			735,715				733,163				747,507
Diluted			736,640				733,546				748,823
Common shares outstanding at end of period (in thousands)			732,794				732,507				745,442

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)
		Q4				Q1
in millions		Dec 31, 2022				March 31, 2023				March 31, 2022
Net earnings		$	11			$	151			$	771
Non-operating pension and other post-employment benefit costs			216				9				15
Interest income and other			(16)				(12)				1
Interest expense, net of capitalized interest			66				66				72
Loss on debt extinguishment			—				—				276
Income taxes			(45)				22				209
Operating income			232				236				1,344
Depreciation, depletion and amortization			120				126				122
Basis of real estate sold			7				33				31
Special items included in operating income			10				—				—
Adjusted EBITDA(1)		$	369			$	395			$	1,497

(1)

Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Weyerhaeuser Company                                                                           Total Company Statistics
Q1.2023 Analyst Package
Preliminary results (unaudited)
Special Items Included in Net Earnings (Income Tax Affected)
		Q4				Q1
in millions		Dec 31, 2022				March 31, 2023				March 31, 2022
Net earnings		$	11			$	151			$	771
Loss on debt extinguishment(1)			—				—				207
Pension settlement charge			152				—				—
Restructuring, impairments and other charges			8				—				—
Net earnings before special items(2)		$	171			$	151			$	978
		Q4				Q1
		Dec 31, 2022				March 31, 2023				March 31, 2022
Net earnings per diluted share		$	0.02			$	0.21			$	1.03
Loss on debt extinguishment(1)			—				—				0.28
Pension settlement charge			0.21				—				—
Restructuring, impairments and other charges			0.01				—				—
Net earnings per diluted share before special items(2)		$	0.24			$	0.21			$	1.31

(1)	We recorded a total pretax loss on debt extinguishment of $276 million ($207 million after-tax) in first quarter 2022.
(2)	Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Selected Total Company Items
		Q4				Q1
in millions		Dec 31, 2022				March 31, 2023				March 31, 2022
Pension and post-employment costs:
Pension and post-employment service costs		$	9			$	6			$	10
Non-operating pension and other post-employment benefit costs			216				9				15
Total company pension and post-employment costs		$	225			$	15			$	25

 

Weyerhaeuser Company
Q1.2023 Analyst Package
Preliminary results (unaudited)
Condensed Consolidated Balance Sheet
in millions		December 31, 2022				March 31,  2023				March 31,  2022
ASSETS
Current assets:
Cash and cash equivalents		$	1,581			$	797			$	1,205
Receivables, net			357				440				745
Receivables for taxes			42				28				8
Inventories			550				586				611
Prepaid expenses and other current assets			216				202				206
Total current assets			2,746				2,053				2,775
Property and equipment, net			2,171				2,157				2,026
Construction in progress			222				222				203
Timber and timberlands at cost, less depletion			11,604				11,564				11,469
Minerals and mineral rights, less depletion			214				211				252
Deferred tax assets			8				8				15
Other assets			375				365				376
Total assets		$	17,340			$	16,580			$	17,116
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt		$	982			$	981			$	—
Accounts payable			247				266				310
Accrued liabilities			511				403				674
Total current liabilities			1,740				1,650				984
Long-term debt, net			4,071				4,072				5,053
Deferred tax liabilities			96				101				66
Deferred pension and other post-employment benefits			344				346				432
Other liabilities			340				335				344
Total liabilities			6,591				6,504				6,879
Total equity			10,749				10,076				10,237
Total liabilities and equity		$	17,340			$	16,580			$	17,116

 

Weyerhaeuser Company
Q1.2023 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows
		Q4				Q1
in millions		December 31, 2022				March 31, 2023				March 31, 2022
Cash flows from operations:
Net earnings		$	11			$	151			$	771
Noncash charges (credits) to earnings:
Depreciation, depletion and amortization			120				126				122
Basis of real estate sold			7				33				31
Deferred income taxes, net			(47)				3				14
Pension and other post-employment benefits			225				15				25
Share-based compensation expense			8				8				8
Loss on debt extinguishment			—				—				276
Change in:
Receivables, net			68				(83)				(238)
Receivables and payables for taxes			(116)				14				110
Inventories			(7)				(36)				(87)
Prepaid expenses and other current assets			(5)				(9)				(1)
Accounts payable and accrued liabilities			(88)				(87)				(62)
Pension and post-employment benefit contributions and payments			(5)				(6)				(4)
Other			(4)				(3)				(8)
Net cash from operations		$	167			$	126			$	957
Cash flows from investing activities:
Capital expenditures for property and equipment		$	(208)			$	(50)			$	(50)
Capital expenditures for timberlands reforestation			(15)				(21)				(20)
Acquisition of timberlands			(9)				—				(18)
Other			3				2				1
Net cash from investing activities		$	(229)			$	(69)			$	(87)
Cash flows from financing activities:
Cash dividends on common shares		$	(132)			$	(799)			$	(1,218)
Net proceeds from issuance of long-term debt			—				—				881
Payments on long-term debt			—				—				(1,203)
Proceeds from exercise of stock options			1				2				12
Repurchases of common shares			(141)				(34)				(118)
Other			(5)				(10)				(18)
Net cash from financing activities		$	(277)			$	(841)			$	(1,664)
Net change in cash, cash equivalents and restricted cash		$	(339)			$	(784)			$	(794)
Cash, cash equivalents and restricted cash at beginning of period			1,920				1,581				1,999
Cash, cash equivalents and restricted cash at end of period		$	1,581			$	797			$	1,205
Cash paid during the period for:
Interest, net of amounts capitalized		$	72			$	57			$	78
Income taxes, net of refunds		$	120			$	6			$	85

 

Weyerhaeuser Company                                                                      Timberlands Segment
Q1.2023 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions		Q4.2022				Q1.2023				Q1.2022
Sales to unaffiliated customers		$	437			$	462			$	465
Intersegment sales			111				142				161
Total net sales			548				604				626
Costs of sales			436				461				423
Gross margin			112				143				203
General and administrative expenses			25				25				24
Other operating costs (income), net			1				(2)				(3)
Operating income and Net contribution to earnings		$	86			$	120			$	182

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q4.2022				Q1.2023				Q1.2022
Operating income		$	86			$	120			$	182
Depreciation, depletion and amortization			64				68				65
Adjusted EBITDA(1)		$	150			$	188			$	247

(1)	See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Selected Segment Items
in millions		Q4.2022				Q1.2023				Q1.2022
Total increase in working capital(2)		$	(28)			$	(24)			$	(34)
Cash spent for capital expenditures(3)		$	(38)			$	(26)			$	(30)

(2)	Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.
(3)	Does not include cash spent for the acquisition of timberlands.

 

Segment Statistics(4)
			Q4.2022				Q1.2023				Q1.2022
Third Party		Delivered logs:
Net Sales		West	$	213			$	229			$	259
(millions)		South		165				168				154
		North		16				17				15
		Total delivered logs		394				414				428
		Stumpage and pay-as-cut timber		16				16				9
		Recreational and other lease revenue		17				18				17
		Other revenue		10				14				11
		Total	$	437			$	462			$	465
Delivered Logs		West	$	141.88			$	137.10			$	161.29
Third Party Sales		South	$	38.67			$	38.23			$	37.15
Realizations (per ton)		North	$	80.57			$	81.71			$	72.79
Delivered Logs		West		1,503				1,674				1,604
Third Party Sales		South		4,252				4,386				4,135
Volumes (tons, thousands)		North		202				204				210
Fee Harvest Volumes		West		1,773				2,245				2,240
(tons, thousands)		South		6,216				6,432				5,842
		North		271				285				278

(4)	Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

 

Weyerhaeuser Company                        Real Estate, Energy & Natural Resources Segment
Q1.2023 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions		Q4.2022				Q1.2023				Q1.2022
Net sales		$	55			$	101			$	128
Costs of sales			13				41				41
Gross margin			42				60				87
General and administrative expenses			8				7				6
Other operating costs, net			10				—				—
Operating income and Net contribution to earnings		$	24			$	53			$	81

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q4.2022				Q1.2023				Q1.2022
Operating income		$	24			$	53			$	81
Depreciation, depletion and amortization			5				3				4
Basis of real estate sold			7				33				31
Special items			10				—				—
Adjusted EBITDA(1)		$	46			$	89			$	116

(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Segment Special Items Included In Net Contribution to Earnings (Pretax)
in millions		Q4.2022				Q1.2023				Q1.2022
Restructuring, impairments and other charges		$	(10)			$	—			$	—

 

Selected Segment Items

in millions

Q4.2022

Q1.2023

Q1.2022

Cash spent for capital expenditures

$

—

$

—

$

—

 

Segment Statistics
			Q4.2022				Q1.2023				Q1.2022
Net Sales	Real Estate		$	18			$	72			$	97
(millions)	Energy and Natural Resources			37				29				31
	Total		$	55			$	101			$	128
Acres Sold	Real Estate			2,745				20,753				24,126
Price per Acre	Real Estate		$	5,550			$	3,241			$	3,785
Basis as a Percent of Real Estate Net Sales	Real Estate			39	%			46	%			32	%

 

Weyerhaeuser Company                                                                      Wood Products Segment
Q1.2023 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions		Q4.2022				Q1.2023				Q1.2022
Net sales		$	1,331			$	1,318			$	2,519
Costs of sales			1,116				1,159				1,276
Gross margin			215				159				1,243
Selling expenses			22				22				21
General and administrative expenses			36				36				35
Other operating costs, net			10				6				5
Operating income and Net contribution to earnings		$	147			$	95			$	1,182

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q4.2022				Q1.2023				Q1.2022
Operating income		$	147			$	95			$	1,182
Depreciation, depletion and amortization			50				53				51
Adjusted EBITDA(1)		$	197			$	148			$	1,233

(1)	See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Selected Segment Items
in millions		Q4.2022				Q1.2023				Q1.2022
Total decrease (increase) in working capital(2)		$	20			$	(127)			$	(371)
Cash spent for capital expenditures		$	(184)			$	(43)			$	(39)

(2)	Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

 

Segment Statistics
in millions, except for third party sales realizations			Q4.2022				Q1.2023				Q1.2022
Structural Lumber	Third party net sales		$	494			$	515			$	1,206
(volumes presented	Third party sales realizations		$	495			$	450			$	1,041
in board feet)	Third party sales volumes(3)			996				1,144				1,157
	Production volumes			938				1,143				1,203
Oriented Strand	Third party net sales		$	230			$	208			$	564
Board	Third party sales realizations		$	335			$	269			$	787
(volumes presented	Third party sales volumes(3)			686				773				717
in square feet 3/8")	Production volumes			729				761				739
Engineered Solid	Third party net sales		$	186			$	169			$	196
Section	Third party sales realizations		$	3,743			$	3,643			$	3,433
(volumes presented	Third party sales volumes(3)			5.0				4.7				5.7
in cubic feet)	Production volumes			5.5				4.6				5.7
Engineered	Third party net sales		$	102			$	87			$	137
I-joists	Third party sales realizations		$	3,537			$	3,171			$	2,969
(volumes presented	Third party sales volumes(3)			29				27				46
in lineal feet)	Production volumes			31				25				44
Softwood Plywood	Third party net sales		$	35			$	41			$	58
(volumes presented	Third party sales realizations		$	543			$	490			$	783
in square feet 3/8")	Third party sales volumes(3)			66				83				75
	Production volumes			62				74				66
Medium Density	Third party net sales		$	41			$	38			$	48
Fiberboard	Third party sales realizations		$	1,310			$	1,314			$	1,082
(volumes presented	Third party sales volumes(3)			31				29				44
in square feet 3/4")	Production volumes			31				34				44

(3)	Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

 

Weyerhaeuser Company                                                                                                                                                                     Unallocated Items

Q1.2023 Analyst Package

Preliminary results (unaudited)

Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses and interest income and other.

 

Net Charge to Earnings
in millions		Q4.2022				Q1.2023				Q1.2022
Unallocated corporate function and variable compensation expense		$	(36)			$	(27)			$	(31)
Liability classified share-based compensation			(1)				—				1
Foreign exchange loss			(2)				(1)				—
Elimination of intersegment profit in inventory and LIFO			18				9				(59)
Other, net			(4)				(13)				(12)
Operating loss			(25)				(32)				(101)
Non-operating pension and other post-employment benefit costs			(216)				(9)				(15)
Interest income and other			16				12				(1)
Net charge to earnings		$	(225)			$	(29)			$	(117)

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
in millions		Q4.2022				Q1.2023				Q1.2022
Operating loss		$	(25)			$	(32)			$	(101)
Depreciation, depletion and amortization			1				2				2
Adjusted EBITDA(1)		$	(24)			$	(30)			$	(99)

(1)	See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

Unallocated Special Items Included in Net Charge to Earnings (Pretax)
in millions		Q4.2022				Q1.2023				Q1.2022
Pension settlement charge		$	(205)			$	—			$	—
Special items included in net charge to earnings		$	(205)			$	—			$	—

 

Unallocated Selected Items
in millions		Q4.2022				Q1.2023				Q1.2022
Cash spent for capital expenditures		$	(1)			$	(2)			$	(1)

For more information contact:

Analysts – Andy Taylor (206) 539-3907
Media – Nancy Thompson (919) 861-0342

 

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SOURCE Weyerhaeuser Company