PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of $20.6 million, or $0.30 per diluted share, on revenues of $226.3 million for the quarter ended September 30, 2019.
Third Quarter 2019 Highlights
- Generated $55.0 million of Total Adjusted EBITDDA and Adjusted EBITDDA margin of 24%
- Wood Products set quarterly records for lumber production and shipment volumes
“Our third quarter Adjusted EBITDDA was $55 million, as our businesses executed well on factors within their control,” said Mike Covey, chairman and chief executive officer. “Real Estate continues to have a strong year, selling double the number of rural acres that we expected as well as closing a commercial real estate transaction in Chenal Valley during the third quarter. Wood Products established new quarterly lumber production and shipping records and remains on pace to complete $40 million of capital projects to expand capacity and increase grade recovery. While Timberlands scaled back Southern harvest volumes in the third quarter due to full mill inventories, the segment benefited from higher than expected Southern sawlog prices. Looking forward, we remain optimistic that the lumber market will improve,” stated Mr. Covey.
Financial Highlights
($ in millions, except per share data) | Q3 2019 | Q2 2019 | Q3 2018 | |||||||||||||
Revenues | $ | 226.3 | $ | 215.6 | $ | 289.2 | ||||||||||
Net income | $ | 20.6 | $ | 17.1 | $ | 60.4 | ||||||||||
Weighted average shares outstanding, diluted (in thousands) | 67,545 | 67,713 | 64,722 | |||||||||||||
Net income per diluted share | $ | 0.30 | $ | 0.25 | $ | 0.93 | ||||||||||
Adjusted net income | $ | 20.6 | $ | 17.1 | $ | 56.0 | ||||||||||
Adjusted net income per diluted share | $ | 0.30 | $ | 0.25 | $ | 0.87 | ||||||||||
Total Adjusted EBITDDA | $ | 55.0 | $ | 49.0 | $ | 101.8 | ||||||||||
Dividends per share | $ | 0.40 | $ | 0.40 | $ | 0.40 | ||||||||||
Net cash from operations | $ | 37.9 | $ | 48.5 | $ | 53.0 | ||||||||||
Cash and cash equivalents | $ | 94.7 | $ | 98.0 | $ | 137.5 | ||||||||||
Business Performance: Q3 2019 vs. Q2 2019
Timberlands
Third Quarter 2019 Highlights
- Timberlands Adjusted EBITDDA increased $16.9 million from Q2 2019 levels
- Northern and Southern harvest volumes increased seasonally, but were below plan
- Northern sawlog prices increased 7%, reflecting slightly higher lumber prices on indexed volume and seasonally lighter logs
- Log & haul costs increased due to higher Northern volumes
($ in millions) | Q3 2019 | Q2 2019 | $ Change | ||||||||||||
Timberlands Revenues | $ | 98.8 | $ | 66.9 | $ | 31.9 | |||||||||
Timberlands Adjusted EBITDDA | $ | 43.0 | $ | 26.1 | $ | 16.9 | |||||||||
Wood Products
Third Quarter 2019 Highlights
- Wood Products Adjusted EBITDDA increased $7.9 million from Q2 2019 levels
- Average lumber price was $363 per MBF Q3 2019, down 4% from Q2 2019
- The segment set quarterly records for lumber production and shipment volumes in Q3 2019
- Log and manufacturing costs were lower on a per-unit basis in Q3 2019
- Lumber inventory at end of Q3 2019 was written down $3.5 million compared to $7.4 million in Q2 2019
($ in millions) | Q3 2019 | Q2 2019 | $ Change | ||||||||||||
Wood Products Revenues | $ | 143.7 | $ | 138.0 | $ | 5.7 | |||||||||
Wood Products Adjusted EBITDDA | $ | 5.9 | $ | (2.0 | ) | $ | 7.9 | ||||||||
Real Estate
Third Quarter 2019 Highlights
- Real Estate Adjusted EBITDDA decreased $16.6 million as the sale of a former Deltic tract for $19.6 million in Q2 2019 was partially offset by commercial land sales of $3.1 million in Q3 2019
- Sold 6,225 acres of rural land Q3 2019 compared to 12,375 acres in Q2 2019
($ in millions) | Q3 2019 | Q2 2019 | $ Change | ||||||||||||
Real Estate Revenues | $ | 18.9 | $ | 36.4 | $ | (17.5 | ) | ||||||||
Real Estate Adjusted EBITDDA | $ | 14.7 | $ | 31.3 | $ | (16.6 | ) | ||||||||
Non-GAAP Measures
This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP.
Management uses Adjusted EBITDDA to evaluate the performance of the company. This is a non-GAAP measure that represents EBITDDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses.
Adjusted Net Income and Adjusted Net Income Per Diluted Share are non-GAAP measures that represent GAAP net income and GAAP net earnings per diluted share before certain items that impact the ability of investors, securities analysts and other interested parties to compare the performance of our business, either period-over-period or with other businesses.
Reconciliations to GAAP are set forth in the accompanying schedules.
Conference Call Information
A live conference call and webcast will be held Tuesday, October 29, 2019, 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 1-877-823-6919 for U.S./Canada and 1-647-689-5576 for international callers. Participants will be asked to provide conference I.D. number 7868573. 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 November 5, 2019 by calling 1-800-585-8367 for U.S./Canada or 1-416-621-4642 for international callers. Callers must enter conference I.D. number 7868573 to access the replay.
About PotlatchDeltic
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 1.9 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 practices, is dedicated to long-term stewardship and sustainable management of its timber resources. 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 our stepped-up capital expenditure program, the U.S. housing market and repair and remodel market; U.S housing starts; lumber demand, pricing, revenues and Q4 costs and expenses; Q4 lumber shipments; 2019 lumber shipments; effects of announced curtailments and permanent closures of sawmills; expectation that shortfall in Southern harvest will be made up in the fourth quarter of 2019; Q4 2019 Northern and Southern timber harvest volumes and sawlog prices; expected 2020 timber harvest volumes; Q4 2019 Northern and Southern sawlog mix; 2019 harvest plan; Wood Products 2019 capital expenditures; total 2019 capital expenditures; real estate sales, pricing and cost basis; development real estate sales, pricing and land basis; the direction of our business markets; business conditions; Q4 2019 Adjusted EBITDDA; Q4 2019 interest expense; Q4 2019 corporate expense; Q4 2019 income tax; dividend payout ratio; plan to refinance debt scheduled to mature in Q4; 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 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; changes in interest rates; changes in the level of construction activity; changes in Asia 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; changes in general and industry-specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; 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 Income | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Revenues | $ | 226,302 | $ | 215,581 | $ | 289,199 | $ | 623,599 | $ | 757,329 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of goods sold | 182,634 | 175,673 | 195,584 | 512,522 | 515,645 | ||||||||||||||||||||
Selling, general and administrative expenses | 12,472 | 14,952 | 14,901 | 43,994 | 45,449 | ||||||||||||||||||||
Gain on sale of facility | — | — | — | (9,176 | ) | — | |||||||||||||||||||
Deltic merger-related costs | — | — | 972 | — | 21,245 | ||||||||||||||||||||
195,106 | 190,625 | 211,457 | 547,340 | 582,339 | |||||||||||||||||||||
Operating income | 31,196 | 24,956 | 77,742 | 76,259 | 174,990 | ||||||||||||||||||||
Interest expense, net | (8,475 | ) | (7,882 | ) | (10,109 | ) | (21,821 | ) | (25,125 | ) | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (5,512 | ) | — | |||||||||||||||||||
Non-operating pension and other postretirement costs | (935 | ) | (889 | ) | (1,942 | ) | (2,804 | ) | (5,707 | ) | |||||||||||||||
Income before income taxes | 21,786 | 16,185 | 65,691 | 46,122 | 144,158 | ||||||||||||||||||||
Income tax (expense) benefit | (1,221 | ) | 952 | (5,355 | ) | (1,860 | ) | (23,077 | ) | ||||||||||||||||
Net income | $ | 20,565 | $ | 17,137 | $ | 60,336 | $ | 44,262 | $ | 121,081 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.25 | $ | 0.96 | $ | 0.65 | $ | 2.06 | |||||||||||||||
Diluted | $ | 0.30 | $ | 0.25 | $ | 0.93 | $ | 0.65 | $ | 2.03 | |||||||||||||||
Dividends per share | $ | 0.40 | $ | 0.40 | $ | 0.40 | $ | 1.20 | $ | 1.20 | |||||||||||||||
Weighted-average shares outstanding (in thousands): | |||||||||||||||||||||||||
Basic | 67,446 | 67,664 | 62,986 | 67,781 | 58,765 | ||||||||||||||||||||
Diluted | 67,545 | 67,713 | 64,722 | 67,848 | 59,542 | ||||||||||||||||||||
PotlatchDeltic Corporation | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
Unaudited | ||||||||||
(in thousands, except per share amounts) | September 30, 2019 | December 31, 2018 | ||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 94,747 | $ | 76,639 | ||||||
Customer receivables, net | 27,214 | 21,405 | ||||||||
Inventories, net | 54,202 | 60,805 | ||||||||
Other current assets | 23,492 | 22,675 | ||||||||
Assets held for sale | — | 80,674 | ||||||||
Total current assets | 199,655 | 262,198 | ||||||||
Property, plant and equipment, net | 278,587 | 272,193 | ||||||||
Investment in real estate held for development and sale | 76,924 | 79,537 | ||||||||
Timber and timberlands, net | 1,649,196 | 1,672,815 | ||||||||
Intangible assets, net | 17,244 | 17,828 | ||||||||
Other long-term assets | 35,448 | 21,281 | ||||||||
Total assets | $ | 2,257,054 | $ | 2,325,852 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accrued liabilities | $ | 78,274 | $ | 60,993 | ||||||
Current portion of long-term debt | 39,995 | 39,973 | ||||||||
Current portion of pension and other postretirement employee benefits | 5,997 | 5,997 | ||||||||
Liabilities held for sale | — | 29,321 | ||||||||
Total current liabilities | 124,266 | 136,284 | ||||||||
Long-term debt | 716,350 | 715,391 | ||||||||
Pension and other postretirement employee benefits | 110,548 | 110,659 | ||||||||
Deferred tax liabilities, net | 14,913 | 32,009 | ||||||||
Other long-term obligations | 55,248 | 16,730 | ||||||||
Total liabilities | 1,021,325 | 1,011,073 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Preferred stock, authorized 4,000 shares, no shares issued | — | — | ||||||||
Common stock, $1 par value, authorized 100,000 shares, issued 67,221 and 67,570 shares | 67,221 | 67,570 | ||||||||
Additional paid-in capital | 1,664,333 | 1,659,031 | ||||||||
Accumulated deficit | (343,747 | ) | (282,391 | ) | ||||||
Accumulated other comprehensive loss | (152,078 | ) | (129,431 | ) | ||||||
Total stockholders’ equity | 1,235,729 | 1,314,779 | ||||||||
Total liabilities and stockholders' equity | $ | 2,257,054 | $ | 2,325,852 | ||||||
PotlatchDeltic Corporation | |||||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(in thousands) | September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||||||
Net income | $ | 20,565 | $ | 17,137 | $ | 60,336 | $ | 44,262 | $ | 121,081 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||||
Depreciation, depletion and amortization | 19,178 | 17,137 | 19,445 | 52,589 | 53,685 | ||||||||||||||||||||
Basis of real estate sold | 5,228 | 7,427 | 4,248 | 14,211 | 10,673 | ||||||||||||||||||||
Gain on sale of facility | — | — | — | (9,176 | ) | — | |||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 5,512 | — | ||||||||||||||||||||
Change in deferred taxes | 295 | (1,139 | ) | 11,081 | (16,943 | ) | 13,879 | ||||||||||||||||||
Pension and other postretirement employee benefits | 2,970 | 2,831 | 4,222 | 8,907 | 12,221 | ||||||||||||||||||||
Equity-based compensation expense | 1,913 | 1,832 | 1,629 | 5,362 | 6,518 | ||||||||||||||||||||
Other, net | (764 | ) | (1,142 | ) | (549 | ) | (2,692 | ) | (1,220 | ) | |||||||||||||||
Change in working capital and operating-related activities, net | (8,745 | ) | 8,507 | (1,982 | ) | 13,745 | (9,429 | ) | |||||||||||||||||
Real estate development expenditures | (1,257 | ) | (2,715 | ) | (1,416 | ) | (5,738 | ) | (3,081 | ) | |||||||||||||||
Funding of pension and other postretirement employee benefits | (1,477 | ) | (1,421 | ) | (44,001 | ) | (4,612 | ) | (55,959 | ) | |||||||||||||||
Net cash provided by operating activities | 37,906 | 48,454 | 53,013 | 105,427 | 148,368 | ||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||||||
Property, plant and equipment additions | (10,094 | ) | (11,742 | ) | (7,123 | ) | (25,596 | ) | (18,496 | ) | |||||||||||||||
Timberlands reforestation and roads | (5,079 | ) | (3,948 | ) | (5,345 | ) | (13,269 | ) | (12,464 | ) | |||||||||||||||
Acquisition of timber and timberlands | — | (278 | ) | (3 | ) | (278 | ) | (166 | ) | ||||||||||||||||
Cash and cash equivalents acquired in merger | — | — | — | — | 3,419 | ||||||||||||||||||||
Proceeds on disposition of property, plant and equipment | 2,017 | — | — | 2,017 | — | ||||||||||||||||||||
Proceeds on sale of facility | — | (1,252 | ) | — | 58,793 | — | |||||||||||||||||||
Other, net | 87 | 303 | 124 | 520 | 655 | ||||||||||||||||||||
Net cash (used in) provided by investing activities | (13,069 | ) | (16,917 | ) | (12,347 | ) | 22,187 | (27,052 | ) | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||||
Distributions to common stockholders | (26,888 | ) | (26,881 | ) | (25,102 | ) | (80,834 | ) | (75,305 | ) | |||||||||||||||
Proceeds from Potlatch revolving line of credit | — | — | — | — | 100,000 | ||||||||||||||||||||
Repayment of Potlatch revolving line of credit | — | — | — | — | (100,000 | ) | |||||||||||||||||||
Repayment of Deltic revolving line of credit | — | — | — | — | (106,000 | ) | |||||||||||||||||||
Proceeds from long-term debt | — | — | — | 150,000 | 100,000 | ||||||||||||||||||||
Repayment of long-term debt | — | — | — | (150,000 | ) | (14,250 | ) | ||||||||||||||||||
Premiums and fees on debt retirement | — | — | — | (4,865 | ) | — | |||||||||||||||||||
Repurchase of common stock | — | (15,015 | ) | — | (25,173 | ) | — | ||||||||||||||||||
Other, net | (129 | ) | (51 | ) | (40 | ) | (393 | ) | (4,975 | ) | |||||||||||||||
Net cash used in financing activities | (27,017 | ) | (41,947 | ) | (25,142 | ) | (111,265 | ) | (100,530 | ) | |||||||||||||||
Change in cash, cash equivalents and restricted cash | (2,180 | ) | (10,410 | ) | 15,524 | 16,349 | 20,786 | ||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning | 97,970 | 108,380 | 125,719 | 79,441 | 120,457 | ||||||||||||||||||||
Cash, cash equivalents and restricted cash, ending | $ | 95,790 | $ | 97,970 | $ | 141,243 | $ | 95,790 | $ | 141,243 | |||||||||||||||
PotlatchDeltic Corporation | |||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||
(in thousands) | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Timberlands | $ | 98,809 | $ | 66,881 | $ | 111,421 | $ | 233,848 | $ | 280,438 | |||||||||||||||
Wood Products | 143,643 | 138,030 | 199,025 | 413,979 | 532,425 | ||||||||||||||||||||
Real Estate | 18,863 | 36,432 | 11,233 | 61,459 | 38,219 | ||||||||||||||||||||
261,315 | 241,343 | 321,679 | 709,286 | 851,082 | |||||||||||||||||||||
Intersegment Timberlands revenues | (35,013 | ) | (25,762 | ) | (32,480 | ) | (85,687 | ) | (93,753 | ) | |||||||||||||||
Consolidated revenues | $ | 226,302 | $ | 215,581 | $ | 289,199 | $ | 623,599 | $ | 757,329 | |||||||||||||||
Adjusted EBITDDA1 | |||||||||||||||||||||||||
Timberlands | $ | 42,996 | $ | 26,131 | $ | 58,680 | $ | 95,977 | $ | 140,068 | |||||||||||||||
Wood Products | 5,903 | (2,071 | ) | 46,446 | 11,058 | 126,962 | |||||||||||||||||||
Real Estate | 14,678 | 31,316 | 7,467 | 48,697 | 27,769 | ||||||||||||||||||||
Corporate | (6,930 | ) | (9,346 | ) | (8,989 | ) | (26,930 | ) | (28,969 | ) | |||||||||||||||
Eliminations and adjustments | (1,635 | ) | 3,050 | (1,794 | ) | 3,542 | (5,080 | ) | |||||||||||||||||
Total Adjusted EBITDDA | 55,012 | 49,080 | 101,810 | 132,344 | 260,750 | ||||||||||||||||||||
Basis of real estate sold | (5,228 | ) | (7,427 | ) | (4,248 | ) | (14,211 | ) | (10,673 | ) | |||||||||||||||
Depreciation, depletion and amortization | (18,786 | ) | (16,727 | ) | (18,836 | ) | (51,310 | ) | (51,982 | ) | |||||||||||||||
Interest expense, net | (8,475 | ) | (7,882 | ) | (10,109 | ) | (21,821 | ) | (25,125 | ) | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (5,512 | ) | — | |||||||||||||||||||
Non-operating pension and other postretirement employee benefits | (935 | ) | (889 | ) | (1,942 | ) | (2,804 | ) | (5,707 | ) | |||||||||||||||
Gain (loss) on fixed assets | 198 | 30 | (12 | ) | 260 | (11 | ) | ||||||||||||||||||
Gain on sale of facility | — | — | — | 9,176 | — | ||||||||||||||||||||
Inventory purchase price adjustment in cost of goods sold | — | — | — | — | (1,849 | ) | |||||||||||||||||||
Deltic merger-related costs | — | — | (972 | ) | — | (21,245 | ) | ||||||||||||||||||
Income before income taxes | $ | 21,786 | $ | 16,185 | $ | 65,691 | $ | 46,122 | $ | 144,158 | |||||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||||||||||
Timberlands | $ | 12,627 | $ | 10,469 | $ | 12,730 | $ | 33,361 | $ | 35,974 | |||||||||||||||
Wood Products | 5,763 | 5,861 | 5,827 | 16,666 | 15,250 | ||||||||||||||||||||
Real Estate | 152 | 147 | 81 | 508 | 198 | ||||||||||||||||||||
Corporate | 244 | 250 | 198 | 775 | 560 | ||||||||||||||||||||
18,786 | 16,727 | 18,836 | 51,310 | 51,982 | |||||||||||||||||||||
Bond discounts and deferred loan fees2 | 392 | 410 | 609 | 1,279 | 1,703 | ||||||||||||||||||||
Total depreciation, depletion and amortization | $ | 19,178 | $ | 17,137 | $ | 19,445 | $ | 52,589 | $ | 53,685 | |||||||||||||||
Basis of real estate sold | |||||||||||||||||||||||||
Real Estate | $ | 5,283 | $ | 7,455 | $ | 4,267 | $ | 14,326 | $ | 10,886 | |||||||||||||||
Eliminations and adjustments | (55 | ) | (28 | ) | (19 | ) | (115 | ) | (213 | ) | |||||||||||||||
Total basis of real estate sold | $ | 5,228 | $ | 7,427 | $ | 4,248 | $ | 14,211 | $ | 10,673 | |||||||||||||||
1 Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA on page 9, Reconciliations. |
2 Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Income. |
PotlatchDeltic Corporation | |||||||||||||||||||||||||
Reconciliations | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||
(in thousands, except per share amount) | 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Total Adjusted EBITDDA | |||||||||||||||||||||||||
Net income (GAAP) | $ | 20,565 | $ | 17,137 | $ | 60,336 | $ | 44,262 | $ | 121,081 | |||||||||||||||
Interest expense, net | 8,475 | 7,882 | 10,109 | 21,821 | 25,125 | ||||||||||||||||||||
Income taxes | 1,221 | (952 | ) | 5,355 | 1,860 | 23,077 | |||||||||||||||||||
Depreciation, depletion and amortization | 18,786 | 16,727 | 18,836 | 51,310 | 51,982 | ||||||||||||||||||||
Basis of real estate sold | 5,228 | 7,427 | 4,248 | 14,211 | 10,673 | ||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 5,512 | — | ||||||||||||||||||||
Non-operating pension and other postretirement benefit costs | 935 | 889 | 1,942 | 2,804 | 5,707 | ||||||||||||||||||||
Deltic merger-related costs | — | — | 972 | — | 21,245 | ||||||||||||||||||||
Gain on sale of facility | — | — | — | (9,176 | ) | — | |||||||||||||||||||
Inventory purchase price adjustment in cost of goods sold | — | — | — | — | 1,849 | ||||||||||||||||||||
(Gain) loss on fixed assets | (198 | ) | (30 | ) | 12 | (260 | ) | 11 | |||||||||||||||||
Total Adjusted EBITDDA | $ | 55,012 | $ | 49,080 | $ | 101,810 | $ | 132,344 | $ | 260,750 | |||||||||||||||
Adjusted net income | |||||||||||||||||||||||||
Net income (GAAP) | $ | 20,565 | $ | 17,137 | $ | 60,336 | $ | 44,262 | $ | 121,081 | |||||||||||||||
Special items: | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 5,512 | — | ||||||||||||||||||||
Gain on sale of facility, after tax | — | — | — | (6,790 | ) | — | |||||||||||||||||||
Deltic merger-related costs | — | — | 972 | — | 21,245 | ||||||||||||||||||||
Tax adjustments(1) | — | — | (5,327 | ) | — | (5,327 | ) | ||||||||||||||||||
Inventory purchase price adjustment in cost of goods sold, after tax | — | — | — | — | 1,368 | ||||||||||||||||||||
Adjusted net income | $ | 20,565 | $ | 17,137 | $ | 55,981 | $ | 42,984 | $ | 138,367 | |||||||||||||||
Adjusted net income per diluted share | |||||||||||||||||||||||||
Net income per diluted share (GAAP) | $ | 0.30 | $ | 0.25 | $ | 0.93 | $ | 0.65 | $ | 2.03 | |||||||||||||||
Special items: | |||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | 0.08 | — | ||||||||||||||||||||
Gain on sale of facility, after tax | — | — | — | (0.10 | ) | — | |||||||||||||||||||
Tax adjustments(1) | — | — | (0.08 | ) | — | (0.09 | ) | ||||||||||||||||||
Deltic merger-related costs | — | — | 0.02 | — | 0.36 | ||||||||||||||||||||
Inventory purchase price adjustment in cost of goods sold, after tax | — | — | — | — | 0.02 | ||||||||||||||||||||
Adjusted net income per diluted share | $ | 0.30 | $ | 0.25 | $ | 0.87 | $ | 0.63 | $ | 2.32 | |||||||||||||||
1 During the third quarter of 2018 we recorded a tax benefit primarily related to deducting contributions to our qualified pension plans at the higher 2017 income tax rate. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20191028005605/en/
Contacts:
Jerry Richards
509.835.1521
