Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2021 Results By: PotlatchDeltic Corporation via Business Wire January 31, 2022 at 16:10 PM EST PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $39.2 million, or $0.58 per diluted share, on revenues of $248.4 million for the quarter ended December 31, 2021. Excluding a net loss on fire damage, adjusted net income was $39.9 million, or $0.59 per diluted share for the fourth quarter of 2021. Net income was $100.0 million, or $1.48 per diluted share, on revenues of $337.4 million for the quarter ended December 31, 2020. Net income for the full year 2021 was $423.9 million, or $6.26 per diluted share, on revenues of $1.3 billion. Excluding a net gain on fire damage, adjusted net income was $421.4 million, or $6.22 per share for 2021. Net income for the full year 2020 was $166.8 million, or $2.47 per diluted share, on revenues of $1.0 billion. Excluding an after-tax pension settlement charge, adjusted net income was $198.6 million, or $2.94 per diluted share for 2020. 2021 Highlights Generated record Total Adjusted EBITDDA of $652.9 million and Total Adjusted EBITDDA margin of 49% Record Wood Products Adjusted EBITDDA of $393.9 million driven by historic lumber prices Timberlands Adjusted EBITDDA of $262.9 million was a record level due to leveraged Idaho lumber indexed pricing Acquired $134 million of high-quality timberlands Returned $388 million to shareholders through regular dividends and a Q4 special dividend Maintained strong liquidity position of $595 million as of December 31, 2021 “2021 was an extraordinary year, with our Wood Products and Timberlands businesses far exceeding last year's record performance," said Eric Cremers, president and chief executive officer. "Our leverage-to-lumber strategy capitalized on historic lumber prices and is well situated to continue to drive strong financial performance into 2022. Additionally, we returned $388 million to shareholders in 2021, including a special dividend in December, and are well positioned to continue growing shareholder value through our disciplined and opportunistic capital allocation strategy," stated Mr. Cremers. Financial Highlights (in millions, except per share data - unaudited) Q4 2021 Q3 2021 Q4 2020 Revenues $ 248.4 $ 287.3 $ 337.4 Net income $ 39.2 $ 65.7 $ 100.0 Weighted average shares outstanding, diluted (in thousands) 67,974 67,648 67,607 Net income per diluted share $ 0.58 $ 0.97 $ 1.48 Adjusted net income $ 39.9 $ 62.4 $ 100.0 Adjusted net income per diluted share $ 0.59 $ 0.92 $ 1.48 Total Adjusted EBITDDA $ 75.7 $ 107.2 $ 163.9 Dividends per share1 $ 4.44 $ 0.41 $ 0.41 Net cash from operations $ 51.6 $ 111.9 $ 144.4 Cash and cash equivalents $ 296.2 $ 592.8 $ 252.3 1The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021. Business Performance: Q4 2021 vs. Q3 2021 Timberlands Fourth Quarter 2021 Highlights Timberlands Adjusted EBITDDA decreased $34.2 million from Q3 2021 levels Northern sawlog price decreased 28% primarily due to lower indexed and cedar sawlog prices Northern harvest volumes were seasonally lower Forest management costs decreased seasonally (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 86.8 $ 129.5 $ (42.7 ) Adjusted EBITDDA $ 41.8 $ 76.0 $ (34.2 ) Wood Products Fourth Quarter 2021 Highlights Wood Products Adjusted EBITDDA increased $10.6 million from Q3 2021 levels Average lumber price increased 6% to $563 per MBF in Q4 2021 Log costs decreased due to lower index pricing in Idaho Plywood price declined from historic levels (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 174.2 $ 187.8 $ (13.6 ) Adjusted EBITDDA $ 37.2 $ 26.6 $ 10.6 Real Estate Fourth Quarter 2021 Highlights Real Estate Adjusted EBITDDA increased $0.9 million from Q3 2021 levels Reflects higher rural land sales, partially offset by lower residential lot sales Sold 5,674 acres of rural land at an average price of $1,566/acre Sold 37 residential lots at an average price of $71,757/lot (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 14.0 $ 13.5 $ 0.5 Adjusted EBITDDA $ 10.0 $ 9.1 $ 0.9 Outlook "2022 is off to a great start with the recent surge in lumber prices benefitting both our Timberlands and Wood Products businesses. We expect housing-related fundamentals that drive demand in our business to remain favorable and we continue to expect lumber prices will remain higher than long-term averages. We continue to monitor the pandemic and the trend in mortgage rates and their impact on lumber demand and our business. During 2022, we expect to harvest approximately 6.1 million tons in our Timberlands segment, ship around 1 billion board feet in lumber, and sell about 13,500 rural acres and 165 residential lots in our Real Estate Segment," stated Mr. Cremers. 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 income 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, February 1, 2022, 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 website. A replay of the conference call will be available two hours following the call until February 8, 2022, by calling 1-800-770-2030 for U.S./Canada or 1-647-362-9199 for international callers. Callers must enter conference I.D. number 7281983 to access the replay. About PotlatchDeltic PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 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 revenues, costs and expenses; favorable housing market fundamentals; lumber pricing; lumber shipment volumes; timber harvest volumes; rural real estate and development real estate sales; 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 the impact of COVID-19 and its variants, governmental responses to such outbreaks, and anticipated recovery from the pandemic 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 at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; the successful execution of the company’s strategic plans; 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 Year Ended December 31, September 30, December 31, December 31, (in thousands, except per share amounts) 2021 2021 2020 2021 2020 Revenues $ 248,406 $ 287,330 $ 337,449 $ 1,337,435 $ 1,040,930 Costs and expenses: Cost of goods sold 178,163 190,602 183,860 715,846 687,781 Selling, general and administrative expenses 18,650 18,512 20,455 73,432 72,519 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — 197,846 204,720 204,315 785,917 760,300 Operating income 50,560 82,610 133,134 551,518 280,630 Interest expense, net (8,861 ) (8,641 ) (8,869 ) (29,275 ) (29,463 ) Pension settlement charge — — — — (42,988 ) Non-operating pension and other postretirement costs (3,271 ) (3,271 ) (3,556 ) (13,227 ) (14,226 ) Income before income taxes 38,428 70,698 120,709 509,016 193,953 Income taxes 754 (5,031 ) (20,692 ) (85,156 ) (27,123 ) Net income $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Net income per share: Basic $ 0.58 $ 0.98 $ 1.49 $ 6.29 $ 2.48 Diluted $ 0.58 $ 0.97 $ 1.48 $ 6.26 $ 2.47 Dividends per share1 $ 4.44 $ 0.41 $ 0.41 $ 5.67 $ 1.61 Weighted-average shares outstanding (in thousands): Basic 67,572 67,315 67,159 67,352 67,237 Diluted 67,974 67,648 67,607 67,719 67,568 1 The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021. PotlatchDeltic Corporation Condensed Consolidated Balance Sheet Unaudited At December 31, (in thousands, except per share amounts) 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 296,151 $ 252,340 Customer receivables, net 31,028 26,606 Inventories, net 72,369 62,036 Other current assets 21,630 16,136 Total current assets 421,178 357,118 Property, plant and equipment, net 292,320 288,544 Investment in real estate held for development and sale 65,604 72,355 Timber and timberlands, net 1,682,671 1,600,061 Intangible assets, net 15,491 16,270 Other long-term assets 57,951 46,717 Total assets $ 2,535,215 $ 2,381,065 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 78,209 $ 93,279 Current portion of long-term debt 42,977 39,981 Current portion of pension and other postretirement employee benefits 4,993 6,574 Total current liabilities 126,179 139,834 Long-term debt 715,279 717,366 Pension and other postretirement employee benefits 83,674 128,807 Deferred tax liabilities, net 34,874 17,740 Other long-term obligations 49,076 72,365 Total liabilities 1,009,082 1,076,112 Commitments and contingencies Stockholders’ equity: Common stock, $1 par value 69,064 66,876 Additional paid-in capital 1,781,217 1,674,576 Accumulated deficit (280,910 ) (315,510 ) Accumulated other comprehensive loss (43,238 ) (120,989 ) Total stockholders’ equity 1,526,133 1,304,953 Total liabilities and stockholders' equity $ 2,535,215 $ 2,381,065 PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (in thousands) 2021 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Adjustments to reconcile net income to net cash from operating activities: Depreciation, depletion and amortization 20,060 21,534 20,076 77,425 77,885 Basis of real estate sold 4,627 6,697 10,908 27,360 25,348 Change in deferred taxes (3,196 ) 2,659 (223 ) 25 (14,610 ) Pension and other postretirement benefits 5,484 5,484 5,916 22,079 23,666 Pension settlement charge — — — — 42,988 Equity-based compensation expense 2,262 2,275 2,135 8,607 8,063 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — Other, net (270 ) 928 (725 ) 363 (1,269 ) Change in working capital and operating-related activities, net (13,117 ) 17,072 10,366 (33,199 ) 23,072 Real estate development expenditures (2,795 ) (2,435 ) (2,506 ) (9,229 ) (6,706 ) Funding of pension and other postretirement employee benefits (1,626 ) (3,585 ) (1,546 ) (9,044 ) (10,004 ) Net cash provided by operating activities 51,644 111,902 144,418 504,886 335,263 CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment additions (12,656 ) (10,348 ) (8,027 ) (38,947 ) (22,693 ) Timberlands reforestation and roads (4,165 ) (4,282 ) (3,889 ) (16,401 ) (16,234 ) Acquisition of timber and timberlands (17,616 ) (258 ) (2,120 ) (20,066 ) (6,858 ) Proceeds from property insurance recoveries 1,750 13,250 — 15,000 — Other, net 276 358 108 1,269 3,593 Net cash used in investing activities (32,411 ) (1,280 ) (13,928 ) (59,145 ) (42,192 ) CASH FLOWS FROM FINANCING ACTIVITIES Distributions to common stockholders (305,779 ) (27,489 ) (27,419 ) (388,241 ) (107,853 ) Repurchase of common stock — — — — (15,364 ) Proceeds from long-term debt 40,000 — 46,000 40,000 46,000 Repayment of long-term debt (46,366 ) — (46,000 ) (46,366 ) (46,000 ) Other, net (3,083 ) (2,396 ) (735 ) (6,702 ) (1,768 ) Net cash used in financing activities (315,228 ) (29,885 ) (28,154 ) (401,309 ) (124,985 ) Change in cash, cash equivalents and restricted cash (295,995 ) 80,737 102,336 44,432 168,086 Cash, cash equivalents and restricted cash at beginning of period 592,767 512,030 150,004 252,340 84,254 Cash, cash equivalents and restricted cash at end of period $ 296,772 $ 592,767 $ 252,340 $ 296,772 $ 252,340 Note: PotlatchDeltic issued 1.96 million shares of common stock and assumed debt of $6.6 million to acquire Loutre Land and Timber Company in December 2021. The debt was paid off after the transaction closed. PotlatchDeltic Corporation Segment Information Unaudited Three months ended Year Ended December 31, September 30, December 31, December 31, (in thousands) 2021 2021 2020 2021 2020 Revenues Timberlands $ 86,772 $ 129,543 $ 109,764 $ 449,447 $ 376,519 Wood Products 174,158 187,760 208,898 988,888 698,405 Real Estate 14,005 13,497 62,191 63,813 104,416 274,935 330,800 380,853 1,502,148 1,179,340 Intersegment Timberlands revenues (26,529 ) (43,470 ) (43,404 ) (164,713 ) (138,410 ) Consolidated revenues $ 248,406 $ 287,330 $ 337,449 $ 1,337,435 $ 1,040,930 Adjusted EBITDDA1 Timberlands $ 41,804 $ 76,023 $ 62,512 $ 262,944 $ 182,802 Wood Products 37,204 26,566 70,315 393,858 176,095 Real Estate 10,007 9,069 56,414 47,457 86,476 Corporate (12,365 ) (11,496 ) (13,884 ) (47,393 ) (48,451 ) Eliminations and adjustments (932 ) 7,021 (11,459 ) (3,995 ) (14,694 ) Total Adjusted EBITDDA 75,718 107,183 163,898 652,871 382,228 Interest expense, net2 (8,861 ) (8,641 ) (8,869 ) (29,275 ) (29,463 ) Depreciation, depletion and amortization (19,477 ) (21,131 ) (19,671 ) (75,633 ) (76,261 ) Net (loss) gain on fire damage (1,033 ) 4,394 — 3,361 — Basis of real estate sold (4,627 ) (6,697 ) (10,908 ) (27,360 ) (25,348 ) Pension settlement charge — — — — (42,988 ) Non-operating pension and other postretirement employee benefits (3,271 ) (3,271 ) (3,556 ) (13,227 ) (14,226 ) (Loss) gain on fixed assets (21 ) (1,139 ) (185 ) (1,721 ) 11 Income before income taxes $ 38,428 $ 70,698 $ 120,709 $ 509,016 $ 193,953 Depreciation, depletion and amortization Timberlands $ 11,611 $ 11,893 $ 13,069 $ 45,403 $ 51,047 Wood Products 7,541 8,879 6,200 28,802 23,611 Real Estate 163 162 155 640 620 Corporate 162 197 247 788 983 19,477 21,131 19,671 75,633 76,261 Bond discounts and deferred loan fees2 583 403 405 1,792 1,624 Total depreciation, depletion and amortization $ 20,060 $ 21,534 $ 20,076 $ 77,425 $ 77,885 Basis of real estate sold Real Estate $ 4,630 $ 6,703 $ 11,017 $ 27,381 $ 25,990 Eliminations and adjustments (3 ) (6 ) (109 ) (21 ) (642 ) Total basis of real estate sold $ 4,627 $ 6,697 $ 10,908 $ 27,360 $ 25,348 1 Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA below. 2 Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations. PotlatchDeltic Corporation Reconciliations Unaudited Three months ended Year ended December 31, September 30, December 31, December 31, (in thousands, except per share amounts) 2021 2021 2020 2021 2020 Adjusted EBITDDA Net income (GAAP) $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Interest, net 8,861 8,641 8,869 29,275 29,463 Income taxes (754 ) 5,031 20,692 85,156 27,123 Depreciation, depletion and amortization 19,477 21,131 19,671 75,633 76,261 Basis of real estate sold 4,627 6,697 10,908 27,360 25,348 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — Pension settlement charge — — — — 42,988 Non-operating pension and other postretirement benefit costs 3,271 3,271 3,556 13,227 14,226 Loss (gain) on fixed assets 21 1,139 185 1,721 (11 ) Total Adjusted EBITDDA $ 75,718 $ 107,183 $ 163,898 $ 652,871 $ 382,228 Adjusted net income Net income (GAAP) $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Special items: Net loss (gain) on fire damage, after tax 748 (3,252 ) — (2,504 ) — Pension settlement charge, after tax — — — — 31,811 Adjusted net income $ 39,930 $ 62,415 $ 100,017 $ 421,356 $ 198,641 Adjusted net income per diluted share Net income per diluted share (GAAP) $ 0.58 $ 0.97 $ 1.48 $ 6.26 $ 2.47 Special items: Net loss (gain) on fire damage, after tax 0.01 (0.05 ) — (0.04 ) — Pension settlement charge, after tax — — — — 0.47 Adjusted net income per diluted share $ 0.59 $ 0.92 $ 1.48 $ 6.22 $ 2.94 View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005683/en/Contacts (Investors) Jerry Richards 509.835.1521 (Media) Anna Torma 509.835.1558 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2021 Results By: PotlatchDeltic Corporation via Business Wire January 31, 2022 at 16:10 PM EST PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $39.2 million, or $0.58 per diluted share, on revenues of $248.4 million for the quarter ended December 31, 2021. Excluding a net loss on fire damage, adjusted net income was $39.9 million, or $0.59 per diluted share for the fourth quarter of 2021. Net income was $100.0 million, or $1.48 per diluted share, on revenues of $337.4 million for the quarter ended December 31, 2020. Net income for the full year 2021 was $423.9 million, or $6.26 per diluted share, on revenues of $1.3 billion. Excluding a net gain on fire damage, adjusted net income was $421.4 million, or $6.22 per share for 2021. Net income for the full year 2020 was $166.8 million, or $2.47 per diluted share, on revenues of $1.0 billion. Excluding an after-tax pension settlement charge, adjusted net income was $198.6 million, or $2.94 per diluted share for 2020. 2021 Highlights Generated record Total Adjusted EBITDDA of $652.9 million and Total Adjusted EBITDDA margin of 49% Record Wood Products Adjusted EBITDDA of $393.9 million driven by historic lumber prices Timberlands Adjusted EBITDDA of $262.9 million was a record level due to leveraged Idaho lumber indexed pricing Acquired $134 million of high-quality timberlands Returned $388 million to shareholders through regular dividends and a Q4 special dividend Maintained strong liquidity position of $595 million as of December 31, 2021 “2021 was an extraordinary year, with our Wood Products and Timberlands businesses far exceeding last year's record performance," said Eric Cremers, president and chief executive officer. "Our leverage-to-lumber strategy capitalized on historic lumber prices and is well situated to continue to drive strong financial performance into 2022. Additionally, we returned $388 million to shareholders in 2021, including a special dividend in December, and are well positioned to continue growing shareholder value through our disciplined and opportunistic capital allocation strategy," stated Mr. Cremers. Financial Highlights (in millions, except per share data - unaudited) Q4 2021 Q3 2021 Q4 2020 Revenues $ 248.4 $ 287.3 $ 337.4 Net income $ 39.2 $ 65.7 $ 100.0 Weighted average shares outstanding, diluted (in thousands) 67,974 67,648 67,607 Net income per diluted share $ 0.58 $ 0.97 $ 1.48 Adjusted net income $ 39.9 $ 62.4 $ 100.0 Adjusted net income per diluted share $ 0.59 $ 0.92 $ 1.48 Total Adjusted EBITDDA $ 75.7 $ 107.2 $ 163.9 Dividends per share1 $ 4.44 $ 0.41 $ 0.41 Net cash from operations $ 51.6 $ 111.9 $ 144.4 Cash and cash equivalents $ 296.2 $ 592.8 $ 252.3 1The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021. Business Performance: Q4 2021 vs. Q3 2021 Timberlands Fourth Quarter 2021 Highlights Timberlands Adjusted EBITDDA decreased $34.2 million from Q3 2021 levels Northern sawlog price decreased 28% primarily due to lower indexed and cedar sawlog prices Northern harvest volumes were seasonally lower Forest management costs decreased seasonally (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 86.8 $ 129.5 $ (42.7 ) Adjusted EBITDDA $ 41.8 $ 76.0 $ (34.2 ) Wood Products Fourth Quarter 2021 Highlights Wood Products Adjusted EBITDDA increased $10.6 million from Q3 2021 levels Average lumber price increased 6% to $563 per MBF in Q4 2021 Log costs decreased due to lower index pricing in Idaho Plywood price declined from historic levels (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 174.2 $ 187.8 $ (13.6 ) Adjusted EBITDDA $ 37.2 $ 26.6 $ 10.6 Real Estate Fourth Quarter 2021 Highlights Real Estate Adjusted EBITDDA increased $0.9 million from Q3 2021 levels Reflects higher rural land sales, partially offset by lower residential lot sales Sold 5,674 acres of rural land at an average price of $1,566/acre Sold 37 residential lots at an average price of $71,757/lot (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 14.0 $ 13.5 $ 0.5 Adjusted EBITDDA $ 10.0 $ 9.1 $ 0.9 Outlook "2022 is off to a great start with the recent surge in lumber prices benefitting both our Timberlands and Wood Products businesses. We expect housing-related fundamentals that drive demand in our business to remain favorable and we continue to expect lumber prices will remain higher than long-term averages. We continue to monitor the pandemic and the trend in mortgage rates and their impact on lumber demand and our business. During 2022, we expect to harvest approximately 6.1 million tons in our Timberlands segment, ship around 1 billion board feet in lumber, and sell about 13,500 rural acres and 165 residential lots in our Real Estate Segment," stated Mr. Cremers. 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 income 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, February 1, 2022, 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 website. A replay of the conference call will be available two hours following the call until February 8, 2022, by calling 1-800-770-2030 for U.S./Canada or 1-647-362-9199 for international callers. Callers must enter conference I.D. number 7281983 to access the replay. About PotlatchDeltic PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 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 revenues, costs and expenses; favorable housing market fundamentals; lumber pricing; lumber shipment volumes; timber harvest volumes; rural real estate and development real estate sales; 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 the impact of COVID-19 and its variants, governmental responses to such outbreaks, and anticipated recovery from the pandemic 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 at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; the successful execution of the company’s strategic plans; 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 Year Ended December 31, September 30, December 31, December 31, (in thousands, except per share amounts) 2021 2021 2020 2021 2020 Revenues $ 248,406 $ 287,330 $ 337,449 $ 1,337,435 $ 1,040,930 Costs and expenses: Cost of goods sold 178,163 190,602 183,860 715,846 687,781 Selling, general and administrative expenses 18,650 18,512 20,455 73,432 72,519 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — 197,846 204,720 204,315 785,917 760,300 Operating income 50,560 82,610 133,134 551,518 280,630 Interest expense, net (8,861 ) (8,641 ) (8,869 ) (29,275 ) (29,463 ) Pension settlement charge — — — — (42,988 ) Non-operating pension and other postretirement costs (3,271 ) (3,271 ) (3,556 ) (13,227 ) (14,226 ) Income before income taxes 38,428 70,698 120,709 509,016 193,953 Income taxes 754 (5,031 ) (20,692 ) (85,156 ) (27,123 ) Net income $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Net income per share: Basic $ 0.58 $ 0.98 $ 1.49 $ 6.29 $ 2.48 Diluted $ 0.58 $ 0.97 $ 1.48 $ 6.26 $ 2.47 Dividends per share1 $ 4.44 $ 0.41 $ 0.41 $ 5.67 $ 1.61 Weighted-average shares outstanding (in thousands): Basic 67,572 67,315 67,159 67,352 67,237 Diluted 67,974 67,648 67,607 67,719 67,568 1 The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021. PotlatchDeltic Corporation Condensed Consolidated Balance Sheet Unaudited At December 31, (in thousands, except per share amounts) 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 296,151 $ 252,340 Customer receivables, net 31,028 26,606 Inventories, net 72,369 62,036 Other current assets 21,630 16,136 Total current assets 421,178 357,118 Property, plant and equipment, net 292,320 288,544 Investment in real estate held for development and sale 65,604 72,355 Timber and timberlands, net 1,682,671 1,600,061 Intangible assets, net 15,491 16,270 Other long-term assets 57,951 46,717 Total assets $ 2,535,215 $ 2,381,065 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 78,209 $ 93,279 Current portion of long-term debt 42,977 39,981 Current portion of pension and other postretirement employee benefits 4,993 6,574 Total current liabilities 126,179 139,834 Long-term debt 715,279 717,366 Pension and other postretirement employee benefits 83,674 128,807 Deferred tax liabilities, net 34,874 17,740 Other long-term obligations 49,076 72,365 Total liabilities 1,009,082 1,076,112 Commitments and contingencies Stockholders’ equity: Common stock, $1 par value 69,064 66,876 Additional paid-in capital 1,781,217 1,674,576 Accumulated deficit (280,910 ) (315,510 ) Accumulated other comprehensive loss (43,238 ) (120,989 ) Total stockholders’ equity 1,526,133 1,304,953 Total liabilities and stockholders' equity $ 2,535,215 $ 2,381,065 PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (in thousands) 2021 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Adjustments to reconcile net income to net cash from operating activities: Depreciation, depletion and amortization 20,060 21,534 20,076 77,425 77,885 Basis of real estate sold 4,627 6,697 10,908 27,360 25,348 Change in deferred taxes (3,196 ) 2,659 (223 ) 25 (14,610 ) Pension and other postretirement benefits 5,484 5,484 5,916 22,079 23,666 Pension settlement charge — — — — 42,988 Equity-based compensation expense 2,262 2,275 2,135 8,607 8,063 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — Other, net (270 ) 928 (725 ) 363 (1,269 ) Change in working capital and operating-related activities, net (13,117 ) 17,072 10,366 (33,199 ) 23,072 Real estate development expenditures (2,795 ) (2,435 ) (2,506 ) (9,229 ) (6,706 ) Funding of pension and other postretirement employee benefits (1,626 ) (3,585 ) (1,546 ) (9,044 ) (10,004 ) Net cash provided by operating activities 51,644 111,902 144,418 504,886 335,263 CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment additions (12,656 ) (10,348 ) (8,027 ) (38,947 ) (22,693 ) Timberlands reforestation and roads (4,165 ) (4,282 ) (3,889 ) (16,401 ) (16,234 ) Acquisition of timber and timberlands (17,616 ) (258 ) (2,120 ) (20,066 ) (6,858 ) Proceeds from property insurance recoveries 1,750 13,250 — 15,000 — Other, net 276 358 108 1,269 3,593 Net cash used in investing activities (32,411 ) (1,280 ) (13,928 ) (59,145 ) (42,192 ) CASH FLOWS FROM FINANCING ACTIVITIES Distributions to common stockholders (305,779 ) (27,489 ) (27,419 ) (388,241 ) (107,853 ) Repurchase of common stock — — — — (15,364 ) Proceeds from long-term debt 40,000 — 46,000 40,000 46,000 Repayment of long-term debt (46,366 ) — (46,000 ) (46,366 ) (46,000 ) Other, net (3,083 ) (2,396 ) (735 ) (6,702 ) (1,768 ) Net cash used in financing activities (315,228 ) (29,885 ) (28,154 ) (401,309 ) (124,985 ) Change in cash, cash equivalents and restricted cash (295,995 ) 80,737 102,336 44,432 168,086 Cash, cash equivalents and restricted cash at beginning of period 592,767 512,030 150,004 252,340 84,254 Cash, cash equivalents and restricted cash at end of period $ 296,772 $ 592,767 $ 252,340 $ 296,772 $ 252,340 Note: PotlatchDeltic issued 1.96 million shares of common stock and assumed debt of $6.6 million to acquire Loutre Land and Timber Company in December 2021. The debt was paid off after the transaction closed. PotlatchDeltic Corporation Segment Information Unaudited Three months ended Year Ended December 31, September 30, December 31, December 31, (in thousands) 2021 2021 2020 2021 2020 Revenues Timberlands $ 86,772 $ 129,543 $ 109,764 $ 449,447 $ 376,519 Wood Products 174,158 187,760 208,898 988,888 698,405 Real Estate 14,005 13,497 62,191 63,813 104,416 274,935 330,800 380,853 1,502,148 1,179,340 Intersegment Timberlands revenues (26,529 ) (43,470 ) (43,404 ) (164,713 ) (138,410 ) Consolidated revenues $ 248,406 $ 287,330 $ 337,449 $ 1,337,435 $ 1,040,930 Adjusted EBITDDA1 Timberlands $ 41,804 $ 76,023 $ 62,512 $ 262,944 $ 182,802 Wood Products 37,204 26,566 70,315 393,858 176,095 Real Estate 10,007 9,069 56,414 47,457 86,476 Corporate (12,365 ) (11,496 ) (13,884 ) (47,393 ) (48,451 ) Eliminations and adjustments (932 ) 7,021 (11,459 ) (3,995 ) (14,694 ) Total Adjusted EBITDDA 75,718 107,183 163,898 652,871 382,228 Interest expense, net2 (8,861 ) (8,641 ) (8,869 ) (29,275 ) (29,463 ) Depreciation, depletion and amortization (19,477 ) (21,131 ) (19,671 ) (75,633 ) (76,261 ) Net (loss) gain on fire damage (1,033 ) 4,394 — 3,361 — Basis of real estate sold (4,627 ) (6,697 ) (10,908 ) (27,360 ) (25,348 ) Pension settlement charge — — — — (42,988 ) Non-operating pension and other postretirement employee benefits (3,271 ) (3,271 ) (3,556 ) (13,227 ) (14,226 ) (Loss) gain on fixed assets (21 ) (1,139 ) (185 ) (1,721 ) 11 Income before income taxes $ 38,428 $ 70,698 $ 120,709 $ 509,016 $ 193,953 Depreciation, depletion and amortization Timberlands $ 11,611 $ 11,893 $ 13,069 $ 45,403 $ 51,047 Wood Products 7,541 8,879 6,200 28,802 23,611 Real Estate 163 162 155 640 620 Corporate 162 197 247 788 983 19,477 21,131 19,671 75,633 76,261 Bond discounts and deferred loan fees2 583 403 405 1,792 1,624 Total depreciation, depletion and amortization $ 20,060 $ 21,534 $ 20,076 $ 77,425 $ 77,885 Basis of real estate sold Real Estate $ 4,630 $ 6,703 $ 11,017 $ 27,381 $ 25,990 Eliminations and adjustments (3 ) (6 ) (109 ) (21 ) (642 ) Total basis of real estate sold $ 4,627 $ 6,697 $ 10,908 $ 27,360 $ 25,348 1 Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA below. 2 Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations. PotlatchDeltic Corporation Reconciliations Unaudited Three months ended Year ended December 31, September 30, December 31, December 31, (in thousands, except per share amounts) 2021 2021 2020 2021 2020 Adjusted EBITDDA Net income (GAAP) $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Interest, net 8,861 8,641 8,869 29,275 29,463 Income taxes (754 ) 5,031 20,692 85,156 27,123 Depreciation, depletion and amortization 19,477 21,131 19,671 75,633 76,261 Basis of real estate sold 4,627 6,697 10,908 27,360 25,348 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — Pension settlement charge — — — — 42,988 Non-operating pension and other postretirement benefit costs 3,271 3,271 3,556 13,227 14,226 Loss (gain) on fixed assets 21 1,139 185 1,721 (11 ) Total Adjusted EBITDDA $ 75,718 $ 107,183 $ 163,898 $ 652,871 $ 382,228 Adjusted net income Net income (GAAP) $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Special items: Net loss (gain) on fire damage, after tax 748 (3,252 ) — (2,504 ) — Pension settlement charge, after tax — — — — 31,811 Adjusted net income $ 39,930 $ 62,415 $ 100,017 $ 421,356 $ 198,641 Adjusted net income per diluted share Net income per diluted share (GAAP) $ 0.58 $ 0.97 $ 1.48 $ 6.26 $ 2.47 Special items: Net loss (gain) on fire damage, after tax 0.01 (0.05 ) — (0.04 ) — Pension settlement charge, after tax — — — — 0.47 Adjusted net income per diluted share $ 0.59 $ 0.92 $ 1.48 $ 6.22 $ 2.94 View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005683/en/Contacts (Investors) Jerry Richards 509.835.1521 (Media) Anna Torma 509.835.1558
PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $39.2 million, or $0.58 per diluted share, on revenues of $248.4 million for the quarter ended December 31, 2021. Excluding a net loss on fire damage, adjusted net income was $39.9 million, or $0.59 per diluted share for the fourth quarter of 2021. Net income was $100.0 million, or $1.48 per diluted share, on revenues of $337.4 million for the quarter ended December 31, 2020. Net income for the full year 2021 was $423.9 million, or $6.26 per diluted share, on revenues of $1.3 billion. Excluding a net gain on fire damage, adjusted net income was $421.4 million, or $6.22 per share for 2021. Net income for the full year 2020 was $166.8 million, or $2.47 per diluted share, on revenues of $1.0 billion. Excluding an after-tax pension settlement charge, adjusted net income was $198.6 million, or $2.94 per diluted share for 2020. 2021 Highlights Generated record Total Adjusted EBITDDA of $652.9 million and Total Adjusted EBITDDA margin of 49% Record Wood Products Adjusted EBITDDA of $393.9 million driven by historic lumber prices Timberlands Adjusted EBITDDA of $262.9 million was a record level due to leveraged Idaho lumber indexed pricing Acquired $134 million of high-quality timberlands Returned $388 million to shareholders through regular dividends and a Q4 special dividend Maintained strong liquidity position of $595 million as of December 31, 2021 “2021 was an extraordinary year, with our Wood Products and Timberlands businesses far exceeding last year's record performance," said Eric Cremers, president and chief executive officer. "Our leverage-to-lumber strategy capitalized on historic lumber prices and is well situated to continue to drive strong financial performance into 2022. Additionally, we returned $388 million to shareholders in 2021, including a special dividend in December, and are well positioned to continue growing shareholder value through our disciplined and opportunistic capital allocation strategy," stated Mr. Cremers. Financial Highlights (in millions, except per share data - unaudited) Q4 2021 Q3 2021 Q4 2020 Revenues $ 248.4 $ 287.3 $ 337.4 Net income $ 39.2 $ 65.7 $ 100.0 Weighted average shares outstanding, diluted (in thousands) 67,974 67,648 67,607 Net income per diluted share $ 0.58 $ 0.97 $ 1.48 Adjusted net income $ 39.9 $ 62.4 $ 100.0 Adjusted net income per diluted share $ 0.59 $ 0.92 $ 1.48 Total Adjusted EBITDDA $ 75.7 $ 107.2 $ 163.9 Dividends per share1 $ 4.44 $ 0.41 $ 0.41 Net cash from operations $ 51.6 $ 111.9 $ 144.4 Cash and cash equivalents $ 296.2 $ 592.8 $ 252.3 1The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021. Business Performance: Q4 2021 vs. Q3 2021 Timberlands Fourth Quarter 2021 Highlights Timberlands Adjusted EBITDDA decreased $34.2 million from Q3 2021 levels Northern sawlog price decreased 28% primarily due to lower indexed and cedar sawlog prices Northern harvest volumes were seasonally lower Forest management costs decreased seasonally (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 86.8 $ 129.5 $ (42.7 ) Adjusted EBITDDA $ 41.8 $ 76.0 $ (34.2 ) Wood Products Fourth Quarter 2021 Highlights Wood Products Adjusted EBITDDA increased $10.6 million from Q3 2021 levels Average lumber price increased 6% to $563 per MBF in Q4 2021 Log costs decreased due to lower index pricing in Idaho Plywood price declined from historic levels (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 174.2 $ 187.8 $ (13.6 ) Adjusted EBITDDA $ 37.2 $ 26.6 $ 10.6 Real Estate Fourth Quarter 2021 Highlights Real Estate Adjusted EBITDDA increased $0.9 million from Q3 2021 levels Reflects higher rural land sales, partially offset by lower residential lot sales Sold 5,674 acres of rural land at an average price of $1,566/acre Sold 37 residential lots at an average price of $71,757/lot (in millions - unaudited) Q4 2021 Q3 2021 $ Change Segment Revenues $ 14.0 $ 13.5 $ 0.5 Adjusted EBITDDA $ 10.0 $ 9.1 $ 0.9 Outlook "2022 is off to a great start with the recent surge in lumber prices benefitting both our Timberlands and Wood Products businesses. We expect housing-related fundamentals that drive demand in our business to remain favorable and we continue to expect lumber prices will remain higher than long-term averages. We continue to monitor the pandemic and the trend in mortgage rates and their impact on lumber demand and our business. During 2022, we expect to harvest approximately 6.1 million tons in our Timberlands segment, ship around 1 billion board feet in lumber, and sell about 13,500 rural acres and 165 residential lots in our Real Estate Segment," stated Mr. Cremers. 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 income 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, February 1, 2022, 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 website. A replay of the conference call will be available two hours following the call until February 8, 2022, by calling 1-800-770-2030 for U.S./Canada or 1-647-362-9199 for international callers. Callers must enter conference I.D. number 7281983 to access the replay. About PotlatchDeltic PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 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 revenues, costs and expenses; favorable housing market fundamentals; lumber pricing; lumber shipment volumes; timber harvest volumes; rural real estate and development real estate sales; 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 the impact of COVID-19 and its variants, governmental responses to such outbreaks, and anticipated recovery from the pandemic 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 at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; the successful execution of the company’s strategic plans; 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 Year Ended December 31, September 30, December 31, December 31, (in thousands, except per share amounts) 2021 2021 2020 2021 2020 Revenues $ 248,406 $ 287,330 $ 337,449 $ 1,337,435 $ 1,040,930 Costs and expenses: Cost of goods sold 178,163 190,602 183,860 715,846 687,781 Selling, general and administrative expenses 18,650 18,512 20,455 73,432 72,519 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — 197,846 204,720 204,315 785,917 760,300 Operating income 50,560 82,610 133,134 551,518 280,630 Interest expense, net (8,861 ) (8,641 ) (8,869 ) (29,275 ) (29,463 ) Pension settlement charge — — — — (42,988 ) Non-operating pension and other postretirement costs (3,271 ) (3,271 ) (3,556 ) (13,227 ) (14,226 ) Income before income taxes 38,428 70,698 120,709 509,016 193,953 Income taxes 754 (5,031 ) (20,692 ) (85,156 ) (27,123 ) Net income $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Net income per share: Basic $ 0.58 $ 0.98 $ 1.49 $ 6.29 $ 2.48 Diluted $ 0.58 $ 0.97 $ 1.48 $ 6.26 $ 2.47 Dividends per share1 $ 4.44 $ 0.41 $ 0.41 $ 5.67 $ 1.61 Weighted-average shares outstanding (in thousands): Basic 67,572 67,315 67,159 67,352 67,237 Diluted 67,974 67,648 67,607 67,719 67,568 1 The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021. PotlatchDeltic Corporation Condensed Consolidated Balance Sheet Unaudited At December 31, (in thousands, except per share amounts) 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 296,151 $ 252,340 Customer receivables, net 31,028 26,606 Inventories, net 72,369 62,036 Other current assets 21,630 16,136 Total current assets 421,178 357,118 Property, plant and equipment, net 292,320 288,544 Investment in real estate held for development and sale 65,604 72,355 Timber and timberlands, net 1,682,671 1,600,061 Intangible assets, net 15,491 16,270 Other long-term assets 57,951 46,717 Total assets $ 2,535,215 $ 2,381,065 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 78,209 $ 93,279 Current portion of long-term debt 42,977 39,981 Current portion of pension and other postretirement employee benefits 4,993 6,574 Total current liabilities 126,179 139,834 Long-term debt 715,279 717,366 Pension and other postretirement employee benefits 83,674 128,807 Deferred tax liabilities, net 34,874 17,740 Other long-term obligations 49,076 72,365 Total liabilities 1,009,082 1,076,112 Commitments and contingencies Stockholders’ equity: Common stock, $1 par value 69,064 66,876 Additional paid-in capital 1,781,217 1,674,576 Accumulated deficit (280,910 ) (315,510 ) Accumulated other comprehensive loss (43,238 ) (120,989 ) Total stockholders’ equity 1,526,133 1,304,953 Total liabilities and stockholders' equity $ 2,535,215 $ 2,381,065 PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (in thousands) 2021 2021 2020 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Adjustments to reconcile net income to net cash from operating activities: Depreciation, depletion and amortization 20,060 21,534 20,076 77,425 77,885 Basis of real estate sold 4,627 6,697 10,908 27,360 25,348 Change in deferred taxes (3,196 ) 2,659 (223 ) 25 (14,610 ) Pension and other postretirement benefits 5,484 5,484 5,916 22,079 23,666 Pension settlement charge — — — — 42,988 Equity-based compensation expense 2,262 2,275 2,135 8,607 8,063 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — Other, net (270 ) 928 (725 ) 363 (1,269 ) Change in working capital and operating-related activities, net (13,117 ) 17,072 10,366 (33,199 ) 23,072 Real estate development expenditures (2,795 ) (2,435 ) (2,506 ) (9,229 ) (6,706 ) Funding of pension and other postretirement employee benefits (1,626 ) (3,585 ) (1,546 ) (9,044 ) (10,004 ) Net cash provided by operating activities 51,644 111,902 144,418 504,886 335,263 CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment additions (12,656 ) (10,348 ) (8,027 ) (38,947 ) (22,693 ) Timberlands reforestation and roads (4,165 ) (4,282 ) (3,889 ) (16,401 ) (16,234 ) Acquisition of timber and timberlands (17,616 ) (258 ) (2,120 ) (20,066 ) (6,858 ) Proceeds from property insurance recoveries 1,750 13,250 — 15,000 — Other, net 276 358 108 1,269 3,593 Net cash used in investing activities (32,411 ) (1,280 ) (13,928 ) (59,145 ) (42,192 ) CASH FLOWS FROM FINANCING ACTIVITIES Distributions to common stockholders (305,779 ) (27,489 ) (27,419 ) (388,241 ) (107,853 ) Repurchase of common stock — — — — (15,364 ) Proceeds from long-term debt 40,000 — 46,000 40,000 46,000 Repayment of long-term debt (46,366 ) — (46,000 ) (46,366 ) (46,000 ) Other, net (3,083 ) (2,396 ) (735 ) (6,702 ) (1,768 ) Net cash used in financing activities (315,228 ) (29,885 ) (28,154 ) (401,309 ) (124,985 ) Change in cash, cash equivalents and restricted cash (295,995 ) 80,737 102,336 44,432 168,086 Cash, cash equivalents and restricted cash at beginning of period 592,767 512,030 150,004 252,340 84,254 Cash, cash equivalents and restricted cash at end of period $ 296,772 $ 592,767 $ 252,340 $ 296,772 $ 252,340 Note: PotlatchDeltic issued 1.96 million shares of common stock and assumed debt of $6.6 million to acquire Loutre Land and Timber Company in December 2021. The debt was paid off after the transaction closed. PotlatchDeltic Corporation Segment Information Unaudited Three months ended Year Ended December 31, September 30, December 31, December 31, (in thousands) 2021 2021 2020 2021 2020 Revenues Timberlands $ 86,772 $ 129,543 $ 109,764 $ 449,447 $ 376,519 Wood Products 174,158 187,760 208,898 988,888 698,405 Real Estate 14,005 13,497 62,191 63,813 104,416 274,935 330,800 380,853 1,502,148 1,179,340 Intersegment Timberlands revenues (26,529 ) (43,470 ) (43,404 ) (164,713 ) (138,410 ) Consolidated revenues $ 248,406 $ 287,330 $ 337,449 $ 1,337,435 $ 1,040,930 Adjusted EBITDDA1 Timberlands $ 41,804 $ 76,023 $ 62,512 $ 262,944 $ 182,802 Wood Products 37,204 26,566 70,315 393,858 176,095 Real Estate 10,007 9,069 56,414 47,457 86,476 Corporate (12,365 ) (11,496 ) (13,884 ) (47,393 ) (48,451 ) Eliminations and adjustments (932 ) 7,021 (11,459 ) (3,995 ) (14,694 ) Total Adjusted EBITDDA 75,718 107,183 163,898 652,871 382,228 Interest expense, net2 (8,861 ) (8,641 ) (8,869 ) (29,275 ) (29,463 ) Depreciation, depletion and amortization (19,477 ) (21,131 ) (19,671 ) (75,633 ) (76,261 ) Net (loss) gain on fire damage (1,033 ) 4,394 — 3,361 — Basis of real estate sold (4,627 ) (6,697 ) (10,908 ) (27,360 ) (25,348 ) Pension settlement charge — — — — (42,988 ) Non-operating pension and other postretirement employee benefits (3,271 ) (3,271 ) (3,556 ) (13,227 ) (14,226 ) (Loss) gain on fixed assets (21 ) (1,139 ) (185 ) (1,721 ) 11 Income before income taxes $ 38,428 $ 70,698 $ 120,709 $ 509,016 $ 193,953 Depreciation, depletion and amortization Timberlands $ 11,611 $ 11,893 $ 13,069 $ 45,403 $ 51,047 Wood Products 7,541 8,879 6,200 28,802 23,611 Real Estate 163 162 155 640 620 Corporate 162 197 247 788 983 19,477 21,131 19,671 75,633 76,261 Bond discounts and deferred loan fees2 583 403 405 1,792 1,624 Total depreciation, depletion and amortization $ 20,060 $ 21,534 $ 20,076 $ 77,425 $ 77,885 Basis of real estate sold Real Estate $ 4,630 $ 6,703 $ 11,017 $ 27,381 $ 25,990 Eliminations and adjustments (3 ) (6 ) (109 ) (21 ) (642 ) Total basis of real estate sold $ 4,627 $ 6,697 $ 10,908 $ 27,360 $ 25,348 1 Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA below. 2 Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations. PotlatchDeltic Corporation Reconciliations Unaudited Three months ended Year ended December 31, September 30, December 31, December 31, (in thousands, except per share amounts) 2021 2021 2020 2021 2020 Adjusted EBITDDA Net income (GAAP) $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Interest, net 8,861 8,641 8,869 29,275 29,463 Income taxes (754 ) 5,031 20,692 85,156 27,123 Depreciation, depletion and amortization 19,477 21,131 19,671 75,633 76,261 Basis of real estate sold 4,627 6,697 10,908 27,360 25,348 Net loss (gain) on fire damage 1,033 (4,394 ) — (3,361 ) — Pension settlement charge — — — — 42,988 Non-operating pension and other postretirement benefit costs 3,271 3,271 3,556 13,227 14,226 Loss (gain) on fixed assets 21 1,139 185 1,721 (11 ) Total Adjusted EBITDDA $ 75,718 $ 107,183 $ 163,898 $ 652,871 $ 382,228 Adjusted net income Net income (GAAP) $ 39,182 $ 65,667 $ 100,017 $ 423,860 $ 166,830 Special items: Net loss (gain) on fire damage, after tax 748 (3,252 ) — (2,504 ) — Pension settlement charge, after tax — — — — 31,811 Adjusted net income $ 39,930 $ 62,415 $ 100,017 $ 421,356 $ 198,641 Adjusted net income per diluted share Net income per diluted share (GAAP) $ 0.58 $ 0.97 $ 1.48 $ 6.26 $ 2.47 Special items: Net loss (gain) on fire damage, after tax 0.01 (0.05 ) — (0.04 ) — Pension settlement charge, after tax — — — — 0.47 Adjusted net income per diluted share $ 0.59 $ 0.92 $ 1.48 $ 6.22 $ 2.94 View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005683/en/