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 First Quarter 2023 Results By: PotlatchDeltic Corporation via Business Wire April 24, 2023 at 16:10 PM EDT PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $16.3 million, or $0.20 per diluted share, on revenues of $258.0 million for the quarter ended March 31, 2023. Excluding CatchMark merger-related expenses, adjusted net income was $18.5 million, or $0.23 per diluted share for the first quarter of 2023. Net income was $163.9 million, or $2.35 per diluted share, on revenues of $411.4 million for the quarter ended March 31, 2022. Excluding after tax special items consisting of a non-cash pension settlement charge and a loss on fire damage, adjusted net income was $174.6 million, or $2.50 per diluted share for the first quarter of 2022. First Quarter 2023 Highlights Generated Total Adjusted EBITDDA of $57.7 million and Total Adjusted EBITDDA margin of 22% Timberlands set quarterly harvest volume record of 2.1 million tons Completed insourcing timberlands management for legacy CatchMark operations Maintained strong liquidity position of $625 million as of March 31, 2023 “Our Timberlands and Real Estate businesses had strong operational performance during the quarter, offsetting weakness in Wood Products,” said Eric Cremers, president and chief executive officer. “During the quarter our Timberlands business did an outstanding job and produced our highest quarterly harvest volume on record, and our Real Estate business experienced strong rural real estate sales activity, including a sizable conservation land sale in Alabama. As we head into the spring building season we are encouraged by the recent upward trend in lumber prices and we continue to remain optimistic on long-term housing-related fundamentals that drive demand in our business. Our strong balance sheet and commitment to a disciplined capital allocation strategy position us to continue to grow shareholder value," stated Mr. Cremers. Financial Highlights ($ in millions, except per share data) Q1 2023 Q4 2022 Q1 2022 Revenues $ 258.0 $ 253.1 $ 411.4 Net income $ 16.3 $ 3.8 $ 163.9 Weighted average shares outstanding, diluted (in thousands) 80,167 80,578 69,623 Net income per diluted share $ 0.20 $ 0.05 $ 2.35 Adjusted Net Income $ 18.5 $ 9.3 $ 174.6 Adjusted Net Income per diluted share $ 0.23 $ 0.12 $ 2.50 Total Adjusted EBITDDA $ 57.7 $ 52.3 $ 245.6 Dividends per share1 $ 0.45 $ 1.40 $ 0.44 Net cash from operations $ 39.1 $ 33.5 $ 230.3 Cash and cash equivalents $ 325.6 $ 343.8 $ 470.9 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. Business Performance: Q1 2023 vs. Q4 2022 Timberlands First Quarter 2023 Highlights Timberlands Adjusted EBITDDA decreased $4.0 million from Q4 2022 Northern sawlog prices decreased 19% primarily due to lower indexed sawlog prices and seasonally heavier sawlogs Total harvest of 2.1 million tons exceeded plan driven by favorable harvest conditions Southern sawlog prices decreased 3% primarily due to seasonally lower hardwood volumes and pine sawlog prices Forest management costs decreased due to seasonally lower activities and insourcing of timberlands management on legacy CatchMark operations ($ in millions) Q1 2023 Q4 2022 $ Change Timberlands Revenues $ 115.2 $ 121.9 $ (6.7 ) Timberlands Adjusted EBITDDA $ 46.6 $ 50.6 $ (4.0 ) Wood Products First Quarter 2023 Highlights Wood Products Adjusted EBITDDA decreased $2.4 million from Q4 2022 Average lumber price decreased 8% to $435 per MBF in Q1 2023 Lumber production increased in Q1 2023 leading to higher fixed cost absorption Log costs decreased primarily due to lower indexed pricing in Idaho Increased plywood shipments were partially offset by lower price realizations ($ in millions) Q1 2023 Q4 2022 $ Change Wood Products Revenues $ 152.8 $ 156.8 $ (4.0 ) Wood Products Adjusted EBITDDA $ — $ 2.4 $ (2.4 ) Real Estate First Quarter 2023 Highlights Real Estate Adjusted EBITDDA increased $12.3 million from Q4 2022 Sold 6,939 acres of rural land at an average price of $2,568 / acre Sold 24 residential lots at an average price of $116,429 / lot ($ in millions) Q1 2023 Q4 2022 $ Change Real Estate Revenues $ 23.9 $ 11.7 $ 12.2 Real Estate Adjusted EBITDDA $ 19.5 $ 7.2 $ 12.3 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, April 25, 2023, 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 May 2, 2023 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 nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana. Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com. Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenues, costs and expenses; long-term housing market fundamentals and lumber prices; disciplined capital allocation strategy; 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, 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 and its contractors’ ability to implement the modernization plan for the Waldo, Arkansas sawmill, 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 March 31, December 31, March 31, (in thousands, except per share amounts) 2023 2022 2022 Revenues $ 257,962 $ 253,140 $ 411,350 Costs and expenses: Cost of goods sold 224,350 214,765 179,847 Selling, general and administrative expenses 18,230 20,922 16,294 CatchMark merger-related expenses 2,209 1,318 — Environmental charge — 5,550 — Loss on fire damage — — 276 244,789 242,555 196,417 Operating income 13,173 10,585 214,933 Interest expense, net (199 ) (8,807 ) (2,894 ) Pension settlement charge — — (14,165 ) Non-operating pension and other postretirement employee benefit costs (228 ) (2,592 ) (1,929 ) Other 10 (66 ) — Income (loss) before income taxes 12,756 (880 ) 195,945 Income taxes 3,504 4,723 (32,065 ) Net income $ 16,260 $ 3,843 $ 163,880 Net income per share: Basic $ 0.20 $ 0.05 $ 2.36 Diluted $ 0.20 $ 0.05 $ 2.35 Dividends per share1 $ 0.45 $ 1.40 $ 0.44 Weighted-average shares outstanding: Basic 80,027 80,356 69,419 Diluted 80,167 80,578 69,623 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. PotlatchDeltic Corporation Condensed Consolidated Balance Sheets Unaudited (in thousands, except per share amounts) March 31, December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 325,632 $ 343,809 Customer receivables, net 29,565 22,813 Inventories, net 66,189 67,958 Other current assets 44,698 36,955 Total current assets 466,084 471,535 Property, plant and equipment, net 312,791 318,184 Investment in real estate held for development and sale 54,945 55,490 Timber and timberlands, net 2,488,956 2,508,372 Intangible assets, net 16,975 17,420 Other long-term assets 160,019 179,554 Total assets $ 3,499,770 $ 3,550,555 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 78,268 $ 94,861 Current portion of long-term debt 39,985 39,979 Current portion of pension and other postretirement employee benefits 4,926 4,926 Total current liabilities 123,179 139,766 Long-term debt 992,988 992,701 Pension and other postretirement employee benefits 78,096 77,396 Deferred tax liabilities, net 41,756 41,790 Other long-term obligations 35,488 35,749 Total liabilities 1,271,507 1,287,402 Commitments and contingencies Stockholders' equity: Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 79,916 and 79,683 shares 79,916 79,683 Additional paid-in capital 2,296,927 2,294,797 Accumulated deficit (228,766 ) (208,979 ) Accumulated other comprehensive income 80,186 97,652 Total stockholders’ equity 2,228,263 2,263,153 Total liabilities and stockholders' equity $ 3,499,770 $ 3,550,555 PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited Three Months Ended (in thousands) March 31, December 31, March 31, 2023 2022 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 16,260 $ 3,843 $ 163,880 Adjustments to reconcile net income to net cash from operating activities: Depreciation, depletion and amortization 32,173 30,274 19,874 Basis of real estate sold 10,631 4,897 10,854 Change in deferred taxes 394 (3,898 ) (2,123 ) Pension and other postretirement employee benefits 1,611 4,323 3,857 Pension settlement charge — — 14,165 Equity-based compensation expense 2,279 2,356 2,056 Loss on fire damage — — 276 Other, net (3,509 ) (780 ) (291 ) Change in working capital and operating-related activities, net (17,205 ) (4,660 ) 21,208 Real estate development expenditures (2,408 ) (1,116 ) (2,161 ) Funding of pension and other postretirement employee benefits (1,087 ) (1,775 ) (1,296 ) Net cash from operating activities 39,139 33,464 230,299 CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment additions (4,255 ) (12,976 ) (12,566 ) Timberlands reforestation and roads (6,118 ) (5,498 ) (4,648 ) Acquisition of timber and timberlands — (14,029 ) — Proceeds from property insurance — 8,750 — Interest received under swaps with other-than-insignificant financing element 5,055 2,798 — Other, net 422 1,230 92 Net cash from investing activities (4,896 ) (19,725 ) (17,122 ) CASH FLOWS FROM FINANCING ACTIVITIES Distributions to common stockholders (35,962 ) (111,555 ) (30,524 ) Repurchase of common stock — (50,022 ) — Proceeds from issuance of long-term debt — 40,000 — Repayment of long-term debt — (40,000 ) (3,000 ) Other, net (838 ) (1,260 ) (1,071 ) Net cash from financing activities (36,800 ) (162,837 ) (34,595 ) Change in cash, cash equivalents and restricted cash (2,557 ) (149,098 ) 178,582 Cash, cash equivalents and restricted cash, beginning 345,591 494,689 296,772 Cash, cash equivalents and restricted cash, ending1 $ 343,034 $ 345,591 $ 475,354 1 Includes $17.4 million, $1.8 million and $4.4 million at March 31, 2023, December 31, 2022 and March 31, 2022, respectively, that were or are intended to be reinvested in timber and timberlands and classified as restricted cash in Other current and long-term assets in the Condensed Consolidated Balance Sheets. PotlatchDeltic Corporation Segment Information Unaudited Three Months Ended March 31, December 31, March 31, (in thousands) 2023 2022 2022 Revenues Timberlands $ 115,238 $ 121,871 $ 123,657 Wood Products 152,795 156,805 295,742 Real Estate 23,863 11,682 34,065 291,896 290,358 453,464 Intersegment Timberlands revenues (33,934 ) (37,218 ) (42,114 ) Consolidated revenues $ 257,962 $ 253,140 $ 411,350 Adjusted EBITDDA1 Timberlands $ 46,639 $ 50,567 $ 76,434 Wood Products (31 ) 2,442 149,951 Real Estate 19,465 7,178 30,124 Corporate (10,741 ) (13,189 ) (9,584 ) Eliminations and adjustments 2,445 5,335 (1,363 ) Total Adjusted EBITDDA 57,777 52,333 245,562 Interest expense, net2 (199 ) (8,807 ) (2,894 ) Depreciation, depletion and amortization (31,764 ) (29,862 ) (19,502 ) Basis of real estate sold (10,631 ) (4,897 ) (10,854 ) CatchMark merger-related expenses (2,209 ) (1,318 ) — Environmental charge — (5,550 ) — Loss on fire damage — — (276 ) Pension settlement charge — — (14,165 ) Non-operating pension and other postretirement employee benefits (228 ) (2,592 ) (1,929 ) Gain (loss) on disposal of fixed assets — (121 ) 3 Other 10 (66 ) — Income before income taxes $ 12,756 $ (880 ) $ 195,945 Depreciation, depletion and amortization Timberlands $ 20,461 $ 18,845 $ 12,161 Wood Products 11,035 10,727 7,021 Real Estate 156 177 170 Corporate 112 113 150 31,764 29,862 19,502 Bond discounts and deferred loan fees2 409 412 372 Total depreciation, depletion and amortization $ 32,173 $ 30,274 $ 19,874 Basis of real estate sold Real Estate $ 10,631 $ 4,899 $ 10,860 Eliminations and adjustments — (2 ) (6 ) Total basis of real estate sold $ 10,631 $ 4,897 $ 10,854 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 March 31, December 31, March 31, (in thousands, except per share amount) 2023 2022 2022 Total Adjusted EBITDDA Net income (GAAP) $ 16,260 $ 3,843 $ 163,880 Interest expense, net 199 8,807 2,894 Income taxes (3,504 ) (4,723 ) 32,065 Depreciation, depletion and amortization 31,764 29,862 19,502 Basis of real estate sold 10,631 4,897 10,854 CatchMark merger-related expenses 2,209 1,318 — Loss on fire damage — — 276 Environmental charge — 5,550 — Pension settlement charge — — 14,165 Non-operating pension and other postretirement benefit costs 228 2,592 1,929 Loss (gain) on disposal of fixed assets — 121 (3 ) Other (10 ) 66 — Total Adjusted EBITDDA $ 57,777 $ 52,333 $ 245,562 Adjusted Net Income Net income (GAAP) $ 16,260 $ 3,843 $ 163,880 Special items after tax: CatchMark merger-related expenses 2,209 1,318 — Loss on fire damage — — 205 Pension settlement charge — — 10,553 Environmental charge — 4,135 — Adjusted Net Income $ 18,469 $ 9,296 $ 174,638 Adjusted Net Income Per Diluted Share Net income per diluted share (GAAP) $ 0.20 $ 0.05 $ 2.35 Special items after tax: CatchMark merger-related expenses 0.03 0.02 — Pension settlement charge — — 0.15 Environmental charge — 0.05 — Adjusted Net Income Per Diluted Share $ 0.23 $ 0.12 $ 2.50 View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005779/en/Contacts (Investors) Wayne Wasechek 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 First Quarter 2023 Results By: PotlatchDeltic Corporation via Business Wire April 24, 2023 at 16:10 PM EDT PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $16.3 million, or $0.20 per diluted share, on revenues of $258.0 million for the quarter ended March 31, 2023. Excluding CatchMark merger-related expenses, adjusted net income was $18.5 million, or $0.23 per diluted share for the first quarter of 2023. Net income was $163.9 million, or $2.35 per diluted share, on revenues of $411.4 million for the quarter ended March 31, 2022. Excluding after tax special items consisting of a non-cash pension settlement charge and a loss on fire damage, adjusted net income was $174.6 million, or $2.50 per diluted share for the first quarter of 2022. First Quarter 2023 Highlights Generated Total Adjusted EBITDDA of $57.7 million and Total Adjusted EBITDDA margin of 22% Timberlands set quarterly harvest volume record of 2.1 million tons Completed insourcing timberlands management for legacy CatchMark operations Maintained strong liquidity position of $625 million as of March 31, 2023 “Our Timberlands and Real Estate businesses had strong operational performance during the quarter, offsetting weakness in Wood Products,” said Eric Cremers, president and chief executive officer. “During the quarter our Timberlands business did an outstanding job and produced our highest quarterly harvest volume on record, and our Real Estate business experienced strong rural real estate sales activity, including a sizable conservation land sale in Alabama. As we head into the spring building season we are encouraged by the recent upward trend in lumber prices and we continue to remain optimistic on long-term housing-related fundamentals that drive demand in our business. Our strong balance sheet and commitment to a disciplined capital allocation strategy position us to continue to grow shareholder value," stated Mr. Cremers. Financial Highlights ($ in millions, except per share data) Q1 2023 Q4 2022 Q1 2022 Revenues $ 258.0 $ 253.1 $ 411.4 Net income $ 16.3 $ 3.8 $ 163.9 Weighted average shares outstanding, diluted (in thousands) 80,167 80,578 69,623 Net income per diluted share $ 0.20 $ 0.05 $ 2.35 Adjusted Net Income $ 18.5 $ 9.3 $ 174.6 Adjusted Net Income per diluted share $ 0.23 $ 0.12 $ 2.50 Total Adjusted EBITDDA $ 57.7 $ 52.3 $ 245.6 Dividends per share1 $ 0.45 $ 1.40 $ 0.44 Net cash from operations $ 39.1 $ 33.5 $ 230.3 Cash and cash equivalents $ 325.6 $ 343.8 $ 470.9 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. Business Performance: Q1 2023 vs. Q4 2022 Timberlands First Quarter 2023 Highlights Timberlands Adjusted EBITDDA decreased $4.0 million from Q4 2022 Northern sawlog prices decreased 19% primarily due to lower indexed sawlog prices and seasonally heavier sawlogs Total harvest of 2.1 million tons exceeded plan driven by favorable harvest conditions Southern sawlog prices decreased 3% primarily due to seasonally lower hardwood volumes and pine sawlog prices Forest management costs decreased due to seasonally lower activities and insourcing of timberlands management on legacy CatchMark operations ($ in millions) Q1 2023 Q4 2022 $ Change Timberlands Revenues $ 115.2 $ 121.9 $ (6.7 ) Timberlands Adjusted EBITDDA $ 46.6 $ 50.6 $ (4.0 ) Wood Products First Quarter 2023 Highlights Wood Products Adjusted EBITDDA decreased $2.4 million from Q4 2022 Average lumber price decreased 8% to $435 per MBF in Q1 2023 Lumber production increased in Q1 2023 leading to higher fixed cost absorption Log costs decreased primarily due to lower indexed pricing in Idaho Increased plywood shipments were partially offset by lower price realizations ($ in millions) Q1 2023 Q4 2022 $ Change Wood Products Revenues $ 152.8 $ 156.8 $ (4.0 ) Wood Products Adjusted EBITDDA $ — $ 2.4 $ (2.4 ) Real Estate First Quarter 2023 Highlights Real Estate Adjusted EBITDDA increased $12.3 million from Q4 2022 Sold 6,939 acres of rural land at an average price of $2,568 / acre Sold 24 residential lots at an average price of $116,429 / lot ($ in millions) Q1 2023 Q4 2022 $ Change Real Estate Revenues $ 23.9 $ 11.7 $ 12.2 Real Estate Adjusted EBITDDA $ 19.5 $ 7.2 $ 12.3 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, April 25, 2023, 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 May 2, 2023 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 nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana. Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com. Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenues, costs and expenses; long-term housing market fundamentals and lumber prices; disciplined capital allocation strategy; 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, 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 and its contractors’ ability to implement the modernization plan for the Waldo, Arkansas sawmill, 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 March 31, December 31, March 31, (in thousands, except per share amounts) 2023 2022 2022 Revenues $ 257,962 $ 253,140 $ 411,350 Costs and expenses: Cost of goods sold 224,350 214,765 179,847 Selling, general and administrative expenses 18,230 20,922 16,294 CatchMark merger-related expenses 2,209 1,318 — Environmental charge — 5,550 — Loss on fire damage — — 276 244,789 242,555 196,417 Operating income 13,173 10,585 214,933 Interest expense, net (199 ) (8,807 ) (2,894 ) Pension settlement charge — — (14,165 ) Non-operating pension and other postretirement employee benefit costs (228 ) (2,592 ) (1,929 ) Other 10 (66 ) — Income (loss) before income taxes 12,756 (880 ) 195,945 Income taxes 3,504 4,723 (32,065 ) Net income $ 16,260 $ 3,843 $ 163,880 Net income per share: Basic $ 0.20 $ 0.05 $ 2.36 Diluted $ 0.20 $ 0.05 $ 2.35 Dividends per share1 $ 0.45 $ 1.40 $ 0.44 Weighted-average shares outstanding: Basic 80,027 80,356 69,419 Diluted 80,167 80,578 69,623 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. PotlatchDeltic Corporation Condensed Consolidated Balance Sheets Unaudited (in thousands, except per share amounts) March 31, December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 325,632 $ 343,809 Customer receivables, net 29,565 22,813 Inventories, net 66,189 67,958 Other current assets 44,698 36,955 Total current assets 466,084 471,535 Property, plant and equipment, net 312,791 318,184 Investment in real estate held for development and sale 54,945 55,490 Timber and timberlands, net 2,488,956 2,508,372 Intangible assets, net 16,975 17,420 Other long-term assets 160,019 179,554 Total assets $ 3,499,770 $ 3,550,555 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 78,268 $ 94,861 Current portion of long-term debt 39,985 39,979 Current portion of pension and other postretirement employee benefits 4,926 4,926 Total current liabilities 123,179 139,766 Long-term debt 992,988 992,701 Pension and other postretirement employee benefits 78,096 77,396 Deferred tax liabilities, net 41,756 41,790 Other long-term obligations 35,488 35,749 Total liabilities 1,271,507 1,287,402 Commitments and contingencies Stockholders' equity: Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 79,916 and 79,683 shares 79,916 79,683 Additional paid-in capital 2,296,927 2,294,797 Accumulated deficit (228,766 ) (208,979 ) Accumulated other comprehensive income 80,186 97,652 Total stockholders’ equity 2,228,263 2,263,153 Total liabilities and stockholders' equity $ 3,499,770 $ 3,550,555 PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited Three Months Ended (in thousands) March 31, December 31, March 31, 2023 2022 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 16,260 $ 3,843 $ 163,880 Adjustments to reconcile net income to net cash from operating activities: Depreciation, depletion and amortization 32,173 30,274 19,874 Basis of real estate sold 10,631 4,897 10,854 Change in deferred taxes 394 (3,898 ) (2,123 ) Pension and other postretirement employee benefits 1,611 4,323 3,857 Pension settlement charge — — 14,165 Equity-based compensation expense 2,279 2,356 2,056 Loss on fire damage — — 276 Other, net (3,509 ) (780 ) (291 ) Change in working capital and operating-related activities, net (17,205 ) (4,660 ) 21,208 Real estate development expenditures (2,408 ) (1,116 ) (2,161 ) Funding of pension and other postretirement employee benefits (1,087 ) (1,775 ) (1,296 ) Net cash from operating activities 39,139 33,464 230,299 CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment additions (4,255 ) (12,976 ) (12,566 ) Timberlands reforestation and roads (6,118 ) (5,498 ) (4,648 ) Acquisition of timber and timberlands — (14,029 ) — Proceeds from property insurance — 8,750 — Interest received under swaps with other-than-insignificant financing element 5,055 2,798 — Other, net 422 1,230 92 Net cash from investing activities (4,896 ) (19,725 ) (17,122 ) CASH FLOWS FROM FINANCING ACTIVITIES Distributions to common stockholders (35,962 ) (111,555 ) (30,524 ) Repurchase of common stock — (50,022 ) — Proceeds from issuance of long-term debt — 40,000 — Repayment of long-term debt — (40,000 ) (3,000 ) Other, net (838 ) (1,260 ) (1,071 ) Net cash from financing activities (36,800 ) (162,837 ) (34,595 ) Change in cash, cash equivalents and restricted cash (2,557 ) (149,098 ) 178,582 Cash, cash equivalents and restricted cash, beginning 345,591 494,689 296,772 Cash, cash equivalents and restricted cash, ending1 $ 343,034 $ 345,591 $ 475,354 1 Includes $17.4 million, $1.8 million and $4.4 million at March 31, 2023, December 31, 2022 and March 31, 2022, respectively, that were or are intended to be reinvested in timber and timberlands and classified as restricted cash in Other current and long-term assets in the Condensed Consolidated Balance Sheets. PotlatchDeltic Corporation Segment Information Unaudited Three Months Ended March 31, December 31, March 31, (in thousands) 2023 2022 2022 Revenues Timberlands $ 115,238 $ 121,871 $ 123,657 Wood Products 152,795 156,805 295,742 Real Estate 23,863 11,682 34,065 291,896 290,358 453,464 Intersegment Timberlands revenues (33,934 ) (37,218 ) (42,114 ) Consolidated revenues $ 257,962 $ 253,140 $ 411,350 Adjusted EBITDDA1 Timberlands $ 46,639 $ 50,567 $ 76,434 Wood Products (31 ) 2,442 149,951 Real Estate 19,465 7,178 30,124 Corporate (10,741 ) (13,189 ) (9,584 ) Eliminations and adjustments 2,445 5,335 (1,363 ) Total Adjusted EBITDDA 57,777 52,333 245,562 Interest expense, net2 (199 ) (8,807 ) (2,894 ) Depreciation, depletion and amortization (31,764 ) (29,862 ) (19,502 ) Basis of real estate sold (10,631 ) (4,897 ) (10,854 ) CatchMark merger-related expenses (2,209 ) (1,318 ) — Environmental charge — (5,550 ) — Loss on fire damage — — (276 ) Pension settlement charge — — (14,165 ) Non-operating pension and other postretirement employee benefits (228 ) (2,592 ) (1,929 ) Gain (loss) on disposal of fixed assets — (121 ) 3 Other 10 (66 ) — Income before income taxes $ 12,756 $ (880 ) $ 195,945 Depreciation, depletion and amortization Timberlands $ 20,461 $ 18,845 $ 12,161 Wood Products 11,035 10,727 7,021 Real Estate 156 177 170 Corporate 112 113 150 31,764 29,862 19,502 Bond discounts and deferred loan fees2 409 412 372 Total depreciation, depletion and amortization $ 32,173 $ 30,274 $ 19,874 Basis of real estate sold Real Estate $ 10,631 $ 4,899 $ 10,860 Eliminations and adjustments — (2 ) (6 ) Total basis of real estate sold $ 10,631 $ 4,897 $ 10,854 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 March 31, December 31, March 31, (in thousands, except per share amount) 2023 2022 2022 Total Adjusted EBITDDA Net income (GAAP) $ 16,260 $ 3,843 $ 163,880 Interest expense, net 199 8,807 2,894 Income taxes (3,504 ) (4,723 ) 32,065 Depreciation, depletion and amortization 31,764 29,862 19,502 Basis of real estate sold 10,631 4,897 10,854 CatchMark merger-related expenses 2,209 1,318 — Loss on fire damage — — 276 Environmental charge — 5,550 — Pension settlement charge — — 14,165 Non-operating pension and other postretirement benefit costs 228 2,592 1,929 Loss (gain) on disposal of fixed assets — 121 (3 ) Other (10 ) 66 — Total Adjusted EBITDDA $ 57,777 $ 52,333 $ 245,562 Adjusted Net Income Net income (GAAP) $ 16,260 $ 3,843 $ 163,880 Special items after tax: CatchMark merger-related expenses 2,209 1,318 — Loss on fire damage — — 205 Pension settlement charge — — 10,553 Environmental charge — 4,135 — Adjusted Net Income $ 18,469 $ 9,296 $ 174,638 Adjusted Net Income Per Diluted Share Net income per diluted share (GAAP) $ 0.20 $ 0.05 $ 2.35 Special items after tax: CatchMark merger-related expenses 0.03 0.02 — Pension settlement charge — — 0.15 Environmental charge — 0.05 — Adjusted Net Income Per Diluted Share $ 0.23 $ 0.12 $ 2.50 View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005779/en/Contacts (Investors) Wayne Wasechek 509.835.1521 (Media) Anna Torma 509.835.1558
PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $16.3 million, or $0.20 per diluted share, on revenues of $258.0 million for the quarter ended March 31, 2023. Excluding CatchMark merger-related expenses, adjusted net income was $18.5 million, or $0.23 per diluted share for the first quarter of 2023. Net income was $163.9 million, or $2.35 per diluted share, on revenues of $411.4 million for the quarter ended March 31, 2022. Excluding after tax special items consisting of a non-cash pension settlement charge and a loss on fire damage, adjusted net income was $174.6 million, or $2.50 per diluted share for the first quarter of 2022. First Quarter 2023 Highlights Generated Total Adjusted EBITDDA of $57.7 million and Total Adjusted EBITDDA margin of 22% Timberlands set quarterly harvest volume record of 2.1 million tons Completed insourcing timberlands management for legacy CatchMark operations Maintained strong liquidity position of $625 million as of March 31, 2023 “Our Timberlands and Real Estate businesses had strong operational performance during the quarter, offsetting weakness in Wood Products,” said Eric Cremers, president and chief executive officer. “During the quarter our Timberlands business did an outstanding job and produced our highest quarterly harvest volume on record, and our Real Estate business experienced strong rural real estate sales activity, including a sizable conservation land sale in Alabama. As we head into the spring building season we are encouraged by the recent upward trend in lumber prices and we continue to remain optimistic on long-term housing-related fundamentals that drive demand in our business. Our strong balance sheet and commitment to a disciplined capital allocation strategy position us to continue to grow shareholder value," stated Mr. Cremers. Financial Highlights ($ in millions, except per share data) Q1 2023 Q4 2022 Q1 2022 Revenues $ 258.0 $ 253.1 $ 411.4 Net income $ 16.3 $ 3.8 $ 163.9 Weighted average shares outstanding, diluted (in thousands) 80,167 80,578 69,623 Net income per diluted share $ 0.20 $ 0.05 $ 2.35 Adjusted Net Income $ 18.5 $ 9.3 $ 174.6 Adjusted Net Income per diluted share $ 0.23 $ 0.12 $ 2.50 Total Adjusted EBITDDA $ 57.7 $ 52.3 $ 245.6 Dividends per share1 $ 0.45 $ 1.40 $ 0.44 Net cash from operations $ 39.1 $ 33.5 $ 230.3 Cash and cash equivalents $ 325.6 $ 343.8 $ 470.9 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. Business Performance: Q1 2023 vs. Q4 2022 Timberlands First Quarter 2023 Highlights Timberlands Adjusted EBITDDA decreased $4.0 million from Q4 2022 Northern sawlog prices decreased 19% primarily due to lower indexed sawlog prices and seasonally heavier sawlogs Total harvest of 2.1 million tons exceeded plan driven by favorable harvest conditions Southern sawlog prices decreased 3% primarily due to seasonally lower hardwood volumes and pine sawlog prices Forest management costs decreased due to seasonally lower activities and insourcing of timberlands management on legacy CatchMark operations ($ in millions) Q1 2023 Q4 2022 $ Change Timberlands Revenues $ 115.2 $ 121.9 $ (6.7 ) Timberlands Adjusted EBITDDA $ 46.6 $ 50.6 $ (4.0 ) Wood Products First Quarter 2023 Highlights Wood Products Adjusted EBITDDA decreased $2.4 million from Q4 2022 Average lumber price decreased 8% to $435 per MBF in Q1 2023 Lumber production increased in Q1 2023 leading to higher fixed cost absorption Log costs decreased primarily due to lower indexed pricing in Idaho Increased plywood shipments were partially offset by lower price realizations ($ in millions) Q1 2023 Q4 2022 $ Change Wood Products Revenues $ 152.8 $ 156.8 $ (4.0 ) Wood Products Adjusted EBITDDA $ — $ 2.4 $ (2.4 ) Real Estate First Quarter 2023 Highlights Real Estate Adjusted EBITDDA increased $12.3 million from Q4 2022 Sold 6,939 acres of rural land at an average price of $2,568 / acre Sold 24 residential lots at an average price of $116,429 / lot ($ in millions) Q1 2023 Q4 2022 $ Change Real Estate Revenues $ 23.9 $ 11.7 $ 12.2 Real Estate Adjusted EBITDDA $ 19.5 $ 7.2 $ 12.3 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, April 25, 2023, 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 May 2, 2023 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 nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana. Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com. Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenues, costs and expenses; long-term housing market fundamentals and lumber prices; disciplined capital allocation strategy; 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, 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 and its contractors’ ability to implement the modernization plan for the Waldo, Arkansas sawmill, 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 March 31, December 31, March 31, (in thousands, except per share amounts) 2023 2022 2022 Revenues $ 257,962 $ 253,140 $ 411,350 Costs and expenses: Cost of goods sold 224,350 214,765 179,847 Selling, general and administrative expenses 18,230 20,922 16,294 CatchMark merger-related expenses 2,209 1,318 — Environmental charge — 5,550 — Loss on fire damage — — 276 244,789 242,555 196,417 Operating income 13,173 10,585 214,933 Interest expense, net (199 ) (8,807 ) (2,894 ) Pension settlement charge — — (14,165 ) Non-operating pension and other postretirement employee benefit costs (228 ) (2,592 ) (1,929 ) Other 10 (66 ) — Income (loss) before income taxes 12,756 (880 ) 195,945 Income taxes 3,504 4,723 (32,065 ) Net income $ 16,260 $ 3,843 $ 163,880 Net income per share: Basic $ 0.20 $ 0.05 $ 2.36 Diluted $ 0.20 $ 0.05 $ 2.35 Dividends per share1 $ 0.45 $ 1.40 $ 0.44 Weighted-average shares outstanding: Basic 80,027 80,356 69,419 Diluted 80,167 80,578 69,623 1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 was paid in Q4 2022. PotlatchDeltic Corporation Condensed Consolidated Balance Sheets Unaudited (in thousands, except per share amounts) March 31, December 31, 2023 2022 ASSETS Current assets: Cash and cash equivalents $ 325,632 $ 343,809 Customer receivables, net 29,565 22,813 Inventories, net 66,189 67,958 Other current assets 44,698 36,955 Total current assets 466,084 471,535 Property, plant and equipment, net 312,791 318,184 Investment in real estate held for development and sale 54,945 55,490 Timber and timberlands, net 2,488,956 2,508,372 Intangible assets, net 16,975 17,420 Other long-term assets 160,019 179,554 Total assets $ 3,499,770 $ 3,550,555 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ 78,268 $ 94,861 Current portion of long-term debt 39,985 39,979 Current portion of pension and other postretirement employee benefits 4,926 4,926 Total current liabilities 123,179 139,766 Long-term debt 992,988 992,701 Pension and other postretirement employee benefits 78,096 77,396 Deferred tax liabilities, net 41,756 41,790 Other long-term obligations 35,488 35,749 Total liabilities 1,271,507 1,287,402 Commitments and contingencies Stockholders' equity: Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 79,916 and 79,683 shares 79,916 79,683 Additional paid-in capital 2,296,927 2,294,797 Accumulated deficit (228,766 ) (208,979 ) Accumulated other comprehensive income 80,186 97,652 Total stockholders’ equity 2,228,263 2,263,153 Total liabilities and stockholders' equity $ 3,499,770 $ 3,550,555 PotlatchDeltic Corporation Condensed Consolidated Statements of Cash Flows Unaudited Three Months Ended (in thousands) March 31, December 31, March 31, 2023 2022 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 16,260 $ 3,843 $ 163,880 Adjustments to reconcile net income to net cash from operating activities: Depreciation, depletion and amortization 32,173 30,274 19,874 Basis of real estate sold 10,631 4,897 10,854 Change in deferred taxes 394 (3,898 ) (2,123 ) Pension and other postretirement employee benefits 1,611 4,323 3,857 Pension settlement charge — — 14,165 Equity-based compensation expense 2,279 2,356 2,056 Loss on fire damage — — 276 Other, net (3,509 ) (780 ) (291 ) Change in working capital and operating-related activities, net (17,205 ) (4,660 ) 21,208 Real estate development expenditures (2,408 ) (1,116 ) (2,161 ) Funding of pension and other postretirement employee benefits (1,087 ) (1,775 ) (1,296 ) Net cash from operating activities 39,139 33,464 230,299 CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment additions (4,255 ) (12,976 ) (12,566 ) Timberlands reforestation and roads (6,118 ) (5,498 ) (4,648 ) Acquisition of timber and timberlands — (14,029 ) — Proceeds from property insurance — 8,750 — Interest received under swaps with other-than-insignificant financing element 5,055 2,798 — Other, net 422 1,230 92 Net cash from investing activities (4,896 ) (19,725 ) (17,122 ) CASH FLOWS FROM FINANCING ACTIVITIES Distributions to common stockholders (35,962 ) (111,555 ) (30,524 ) Repurchase of common stock — (50,022 ) — Proceeds from issuance of long-term debt — 40,000 — Repayment of long-term debt — (40,000 ) (3,000 ) Other, net (838 ) (1,260 ) (1,071 ) Net cash from financing activities (36,800 ) (162,837 ) (34,595 ) Change in cash, cash equivalents and restricted cash (2,557 ) (149,098 ) 178,582 Cash, cash equivalents and restricted cash, beginning 345,591 494,689 296,772 Cash, cash equivalents and restricted cash, ending1 $ 343,034 $ 345,591 $ 475,354 1 Includes $17.4 million, $1.8 million and $4.4 million at March 31, 2023, December 31, 2022 and March 31, 2022, respectively, that were or are intended to be reinvested in timber and timberlands and classified as restricted cash in Other current and long-term assets in the Condensed Consolidated Balance Sheets. PotlatchDeltic Corporation Segment Information Unaudited Three Months Ended March 31, December 31, March 31, (in thousands) 2023 2022 2022 Revenues Timberlands $ 115,238 $ 121,871 $ 123,657 Wood Products 152,795 156,805 295,742 Real Estate 23,863 11,682 34,065 291,896 290,358 453,464 Intersegment Timberlands revenues (33,934 ) (37,218 ) (42,114 ) Consolidated revenues $ 257,962 $ 253,140 $ 411,350 Adjusted EBITDDA1 Timberlands $ 46,639 $ 50,567 $ 76,434 Wood Products (31 ) 2,442 149,951 Real Estate 19,465 7,178 30,124 Corporate (10,741 ) (13,189 ) (9,584 ) Eliminations and adjustments 2,445 5,335 (1,363 ) Total Adjusted EBITDDA 57,777 52,333 245,562 Interest expense, net2 (199 ) (8,807 ) (2,894 ) Depreciation, depletion and amortization (31,764 ) (29,862 ) (19,502 ) Basis of real estate sold (10,631 ) (4,897 ) (10,854 ) CatchMark merger-related expenses (2,209 ) (1,318 ) — Environmental charge — (5,550 ) — Loss on fire damage — — (276 ) Pension settlement charge — — (14,165 ) Non-operating pension and other postretirement employee benefits (228 ) (2,592 ) (1,929 ) Gain (loss) on disposal of fixed assets — (121 ) 3 Other 10 (66 ) — Income before income taxes $ 12,756 $ (880 ) $ 195,945 Depreciation, depletion and amortization Timberlands $ 20,461 $ 18,845 $ 12,161 Wood Products 11,035 10,727 7,021 Real Estate 156 177 170 Corporate 112 113 150 31,764 29,862 19,502 Bond discounts and deferred loan fees2 409 412 372 Total depreciation, depletion and amortization $ 32,173 $ 30,274 $ 19,874 Basis of real estate sold Real Estate $ 10,631 $ 4,899 $ 10,860 Eliminations and adjustments — (2 ) (6 ) Total basis of real estate sold $ 10,631 $ 4,897 $ 10,854 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 March 31, December 31, March 31, (in thousands, except per share amount) 2023 2022 2022 Total Adjusted EBITDDA Net income (GAAP) $ 16,260 $ 3,843 $ 163,880 Interest expense, net 199 8,807 2,894 Income taxes (3,504 ) (4,723 ) 32,065 Depreciation, depletion and amortization 31,764 29,862 19,502 Basis of real estate sold 10,631 4,897 10,854 CatchMark merger-related expenses 2,209 1,318 — Loss on fire damage — — 276 Environmental charge — 5,550 — Pension settlement charge — — 14,165 Non-operating pension and other postretirement benefit costs 228 2,592 1,929 Loss (gain) on disposal of fixed assets — 121 (3 ) Other (10 ) 66 — Total Adjusted EBITDDA $ 57,777 $ 52,333 $ 245,562 Adjusted Net Income Net income (GAAP) $ 16,260 $ 3,843 $ 163,880 Special items after tax: CatchMark merger-related expenses 2,209 1,318 — Loss on fire damage — — 205 Pension settlement charge — — 10,553 Environmental charge — 4,135 — Adjusted Net Income $ 18,469 $ 9,296 $ 174,638 Adjusted Net Income Per Diluted Share Net income per diluted share (GAAP) $ 0.20 $ 0.05 $ 2.35 Special items after tax: CatchMark merger-related expenses 0.03 0.02 — Pension settlement charge — — 0.15 Environmental charge — 0.05 — Adjusted Net Income Per Diluted Share $ 0.23 $ 0.12 $ 2.50 View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005779/en/
