PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2020 Results

02/01/2021

SPOKANE, Wash.--(BUSINESS WIRE)-- PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of $100.0 million, or $1.48 per diluted share, on revenues of $337.4 million for the quarter ended December 31, 2020. Net income was $11.4 million, or $0.17 per diluted share, on revenues of $203.5 million for the quarter ended December 31, 2019.

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. Net income for the full year 2019 was $55.7 million, or $0.82 per diluted share, on revenues of $827.1 million.Excluding after-tax special items consisting of a gain on the sale of legacy Deltic MDF facility and loss on the extinguishment of debt, adjusted net income was $54.4 million, or $0.80 per diluted share for 2019.

2020 Highlights

  • Generated record Total Adjusted EBITDDA of $382.2 million and Total Adjusted EBITDDA margin of 37%
  • Timberlands, Wood Products and Real Estate all had record years
  • Returned $123 million to shareholders through dividends and share repurchases
  • Sold 72,440 acres in Minnesota to The Conservation Fund for nearly $48 million
  • Refinanced $46 million in debt during 2020 and locked in historically low rates on $608 million of future refinances
  • Expanded strong liquidity position to $631 million as of December 31, 2020

“2020 was a phenomenal year with all three of our businesses achieving record financial performance,” said Eric Cremers, president and chief executive officer. “Our employees’ strong resolve and focus on operating safely allowed us to take advantage of strong demand and historic lumber prices. In addition, our Real Estate team completed a large land sale to The Conservation Fund for nearly $48 million. We are well positioned to continue to execute our disciplined capital allocation strategy and maximize shareholder value given our strong liquidity position,” stated Mr. Cremers.

Financial Highlights

(in millions, except per share data - unaudited)

Q4 2020

Q3 2020

Q4 2019

Revenues

$

337.4

$

313.0

$

203.5

Net income

$

100.0

$

81.0

$

11.4

Weighted average shares outstanding, diluted (in thousands)

 

67,607

 

67,528

 

67,695

Net income per diluted share

$

1.48

$

1.20

$

0.17

 

 

 

 

 

 

 

Adjusted EBITDDA

$

163.9

$

135.4

$

46.6

Distributions per share

$

0.41

$

0.40

$

0.40

Net cash from operations

$

144.4

$

102.9

$

33.6

Cash and cash equivalents

$

252.3

$

148.9

$

83.3

Business Performance: Q4 2020 vs. Q3 2020

Timberlands

Fourth Quarter 2020 Highlights

  • Timberlands Adjusted EBITDDA increased $2.8 million from Q3 2020 levels
  • Northern harvest volumes were seasonally lower
  • Northern sawlog prices increased 37% due primarily to higher prices on lumber-indexed volume
  • Log & haul costs reflect lower Northern harvest volume and seasonally lower rates
 

(in millions - unaudited)

 

Q4 2020

 

 

Q3 2020

 

 

$ Change

 

Segment Revenues

 

$

109.8

 

 

$

117.0

 

 

$

(7.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA

 

$

62.5

 

 

$

59.7

 

 

$

2.8

 

Wood Products

Fourth Quarter 2020 Highlights

  • Wood Products Adjusted EBITDDA decreased $11.4 million from Q3 2020 levels
  • Average lumber price realizations declined 1% to $629 per MBF in Q4 2020
  • Log costs increased due to higher index pricing in Idaho
  • Lumber production decreased in Q4 2020 leading to lower fixed cost absorption

(in millions - unaudited)

 

Q4 2020

 

 

Q3 2020

 

 

$ Change

 

Segment Revenues

 

$

208.9

 

 

$

218.3

 

 

$

(9.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA

 

$

70.3

 

 

$

81.7

 

 

$

(11.4

)

Real Estate

Fourth Quarter 2020 Highlights

  • Real Estate Adjusted EBITDDA increased $43.1 million from Q3 2020 levels
  • Sold 73,573 acres of rural land for $700/acre, including sale of 72,440 acres to The Conservation Fund for nearly $48 million
  • Sold 72 residential lots at an average $80,000/lot in Q4 2020
  • Sold 4 commercial acres for $818,000/acre

(in millions - unaudited)

 

Q4 2020

 

 

Q3 2020

 

 

$ Change

 

Segment Revenues

 

$

62.2

 

 

$

18.2

 

 

$

44.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA

 

$

56.5

 

 

$

13.4

 

 

$

43.1

 

Outlook

“We expect housing fundamentals and lumber demand to remain strong in 2021. While lumber prices will likely moderate this year, we expect lumber prices to remain higher than long-term averages. This is particularly important to PotlatchDeltic given our leverage to lumber prices. We continue to keep an eye on the pandemic and its potential impact on the economy and our business. During 2021, we expect to harvest approximately 6 million tons in our Timberlands segment, ship around 1.1 billion board feet of lumber, and sell about 20,000 acres and 145 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 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, February 2, 2021, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time). Investors may access the webcast at www.potlatchdeltic.com by clicking on the Investors link or by conference call at 1-833-968-2227 for U.S./Canada and 1-778-560-2697 for international callers. Participants will be asked to provide conference I.D. number 7785927. Supplemental materials that will be discussed during the call are available on the website.

A replay of the conference call will be available three hours following the call until February 9, 2021 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 7785927 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 current and expected liquidity; the effects of COVID-19 on demand for our products and on our ability to continue operations; the success of the company’s business strategies; the company’s intent to refinance debt maturing in the future; the company’s capital allocation strategies, including share repurchases and dividend expectations; maintaining the company’s investment grade credit rating; favorable capital structure and strong balance sheet; interest rates and expenses; corporate expenses; pension expenses; taxes; 2021 outlook; the housing market and repair and remodel market; housing starts; lumber supply, demand and pricing; revenues, costs and expenses; lumber shipment volumes; expected sawlog demand and timber harvest volumes; sawlog mix and pricing; rural real estate and development real estate sales; land basis and average price per acre and developed lot; planned capital expenditures and anticipated internal rate of return; number of seedlings planted; amount of CO2e sequestered; expected release of 2020 ESG Report; business conditions; and similar matters. Words such as “anticipate,” “expect,” “will,” “intend,” “plan,” “target,” “project,” “believe,” “seek,” “schedule,” “estimate,” “could,” “can,” “may,” and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other “forward-looking” information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic’s control, including impact of the COVID-19 outbreak on our business, suppliers, customers and employees; changes in the U.S. housing market; changes in timberland values; changes in timber harvest levels on the company's lands; changes in timber prices; changes in policy regarding governmental timber sales; availability of logging contractors and shipping capacity; changes in the United States and international economies and effects on our customers and suppliers; changes in interest rates; credit availability and homebuyers’ ability to qualify for mortgages; availability of labor and developable land; changes in the level of construction and remodeling activity; changes in foreign demand; changes in tariffs, quotas and trade agreements involving wood products; currency fluctuation; changes in demand for our products and real estate; changes in production and production capacity in the forest products industry; competitive pricing pressures for our products; unanticipated manufacturing disruptions; disruptions or inefficiencies in our supply chain and/or operations; changes in general and industry-specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; fires and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; the successful execution of the company’s strategic plans; the company’s ability to meet expectations; and the other factors described in PotlatchDeltic’s Annual Report on Form 10-K and in the company’s other filings with the SEC. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.

PotlatchDeltic Corporation

Condensed Consolidated Statements of Operations

Unaudited

 

 

Three Months Ended

 

 

Year Ended

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

December 31,

 

(in thousands, except per share amounts)

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

$

337,449

 

 

$

313,046

 

 

$

203,499

 

 

$

1,040,930

 

 

$

827,098

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

183,860

 

 

 

182,039

 

 

 

169,544

 

 

 

687,781

 

 

 

682,066

 

Selling, general and administrative expenses

 

20,455

 

 

 

21,046

 

 

 

13,931

 

 

 

72,519

 

 

 

57,925

 

Gain on sale of facility

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,176

)

 

 

204,315

 

 

 

203,085

 

 

 

183,475

 

 

 

760,300

 

 

 

730,815

 

Operating income

 

133,134

 

 

 

109,961

 

 

 

20,024

 

 

 

280,630

 

 

 

96,283

 

Interest expense, net

 

(8,869

)

 

 

(8,557

)

 

 

(8,540

)

 

 

(29,463

)

 

 

(30,361

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,512

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

(42,988

)

 

 

 

Non-operating pension and other postretirement costs

 

(3,556

)

 

 

(3,557

)

 

 

(935

)

 

 

(14,226

)

 

 

(3,739

)

Income before income taxes

 

120,709

 

 

 

97,847

 

 

 

10,549

 

 

 

193,953

 

 

 

56,671

 

Income taxes

 

(20,692

)

 

 

(16,840

)

 

 

850

 

 

 

(27,123

)

 

 

(1,010

)

Net income

$

100,017

 

 

$

81,007

 

 

$

11,399

 

 

$

166,830

 

 

$

55,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.49

 

 

$

1.21

 

 

$

0.17

 

 

$

2.48

 

 

$

0.82

 

Diluted

$

1.48

 

 

$

1.20

 

 

$

0.17

 

 

$

2.47

 

 

$

0.82

 

Dividends per share

$

0.41

 

 

$

0.40

 

 

$

0.40

 

 

$

1.61

 

 

$

1.60

 

Weighted-average shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

67,159

 

 

 

67,149

 

 

 

67,476

 

 

 

67,237

 

 

 

67,608

 

Diluted

 

67,607

 

 

 

67,528

 

 

 

67,695

 

 

 

67,568

 

 

 

67,743

 

 

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

 

 

At December 31,

 

(in thousands, except per share amounts)

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

252,340

 

 

$

83,310

 

Customer receivables, net

 

 

26,606

 

 

 

14,167

 

Inventories, net

 

 

62,036

 

 

 

65,781

 

Other current assets

 

 

16,136

 

 

 

20,183

 

Total current assets

 

 

357,118

 

 

 

183,441

 

Property, plant and equipment, net

 

 

288,544

 

 

 

286,383

 

Investment in real estate held for development and sale

 

 

72,355

 

 

 

74,233

 

Timber and timberlands, net

 

 

1,600,061

 

 

 

1,638,663

 

Intangible assets, net

 

 

16,270

 

 

 

17,049

 

Other long-term assets

 

 

46,717

 

 

 

35,290

 

Total assets

 

$

2,381,065

 

 

$

2,235,059

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

93,279

 

 

$

60,577

 

Current portion of long-term debt

 

 

39,981

 

 

 

45,974

 

Current portion of pension and other postretirement employee benefits

 

 

6,574

 

 

 

6,701

 

Total current liabilities

 

 

139,834

 

 

 

113,252

 

Long-term debt

 

 

717,366

 

 

 

710,495

 

Pension and other postretirement employee benefits

 

 

128,807

 

 

 

115,463

 

Deferred tax liabilities, net

 

 

17,740

 

 

 

20,165

 

Other long-term obligations

 

 

72,365

 

 

 

48,853

 

Total liabilities

 

 

1,076,112

 

 

 

1,008,228

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $1 par value

 

 

66,876

 

 

 

67,221

 

Additional paid-in capital

 

 

1,674,576

 

 

 

1,666,299

 

Accumulated deficit

 

 

(315,510

)

 

 

(359,330

)

Accumulated other comprehensive loss

 

 

(120,989

)

 

 

(147,359

)

Total stockholders’ equity

 

 

1,304,953

 

 

 

1,226,831

 

Total liabilities and stockholders' equity

 

$

2,381,065

 

 

$

2,235,059

 

 

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

 

Three Months Ended

Year Ended

 

(in thousands)

 

December 31,
2020

 

 

September 30,
2020

 

 

December 31,
2019

 

 

December 31,
2020

 

 

December 31,
2019

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

100,017

 

 

$

81,007

 

 

$

11,399

 

 

$

166,830

 

 

$

55,661

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

20,076

 

 

 

20,594

 

 

 

19,516

 

 

 

77,885

 

 

 

72,105

 

Basis of real estate sold

 

 

10,908

 

 

 

5,249

 

 

 

6,343

 

 

 

25,348

 

 

 

20,554

 

Gain on sale of facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,176

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,512

 

Change in deferred taxes

 

 

(223

)

 

 

(538

)

 

 

5,898

 

 

 

(14,610

)

 

 

(11,045

)

Employee benefit plans

 

 

5,916

 

 

 

5,917

 

 

 

2,970

 

 

 

23,666

 

 

 

11,877

 

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

42,988

 

 

 

 

Equity-based compensation expense

 

 

2,135

 

 

 

2,063

 

 

 

1,910

 

 

 

8,063

 

 

 

7,272

 

Other, net

 

 

(725

)

 

 

(367

)

 

 

368

 

 

 

(1,269

)

 

 

(2,324

)

Change in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables, net

 

 

23,478

 

 

 

(25,496

)

 

 

13,047

 

 

 

(12,439

)

 

 

7,238

 

Inventories, net

 

 

(3,464

)

 

 

(6,357

)

 

 

(11,579

)

 

 

3,745

 

 

 

(3,519

)

Other assets

 

 

6,315

 

 

 

711

 

 

 

5,648

 

 

 

4,591

 

 

 

5,305

 

Accounts payable and accrued liabilities

 

 

(18,920

)

 

 

29,127

 

 

 

(20,231

)

 

 

25,848

 

 

 

(11,415

)

Other liabilities

 

 

2,957

 

 

 

(1,676

)

 

 

934

 

 

 

1,327

 

 

 

3,955

 

Real estate development expenditures

 

 

(2,506

)

 

 

(1,713

)

 

 

(1,516

)

 

 

(6,706

)

 

 

(7,254

)

Funding of pension and other postretirement employee benefits

 

 

(1,546

)

 

 

(5,619

)

 

 

(1,066

)

 

 

(10,004

)

 

 

(5,678

)

Net cash provided by operating activities

 

 

144,418

 

 

 

102,902

 

 

 

33,641

 

 

 

335,263

 

 

 

139,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(8,027

)

 

 

(4,371

)

 

 

(13,557

)

 

 

(22,693

)

 

 

(39,153

)

Timberlands reforestation and roads

 

 

(3,889

)

 

 

(4,569

)

 

 

(4,426

)

 

 

(16,234

)

 

 

(17,695

)

Acquisition of timber and timberlands

 

 

(2,120

)

 

 

(8

)

 

 

(348

)

 

 

(6,858

)

 

 

(626

)

Proceeds on sale of facility

 

 

 

 

 

 

 

 

 

 

 

1,000

 

 

 

58,793

 

Transfer from company owned life insurance (COLI)

 

 

575

 

 

 

895

 

 

 

977

 

 

 

5,616

 

 

 

1,968

 

Transfer to COLI

 

 

(448

)

 

 

(540

)

 

 

(569

)

 

 

(3,341

)

 

 

(1,148

)

Other, net

 

 

(19

)

 

 

16

 

 

 

253

 

 

 

318

 

 

 

2,378

 

Net cash (used in) provided by investing activities

 

 

(13,928

)

 

 

(8,577

)

 

 

(17,670

)

 

 

(42,192

)

 

 

4,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to common stockholders

 

 

(27,419

)

 

 

(26,749

)

 

 

(26,888

)

 

 

(107,853

)

 

 

(107,722

)

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

(15,364

)

 

 

(25,173

)

Proceeds from long-term debt

 

 

46,000

 

 

 

 

 

 

40,000

 

 

 

46,000

 

 

 

190,000

 

Repayment of long-term debt

 

 

(46,000

)

 

 

 

 

 

(40,000

)

 

 

(46,000

)

 

 

(190,000

)

Premiums and fees on debt retirement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,865

)

Other, net

 

 

(735

)

 

 

(506

)

 

 

(619

)

 

 

(1,768

)

 

 

(1,012

)

Net cash used in financing activities

 

 

(28,154

)

 

 

(27,255

)

 

 

(27,507

)

 

 

(124,985

)

 

 

(138,772

)

Change in cash, cash equivalents and restricted cash

 

 

102,336

 

 

 

67,070

 

 

 

(11,536

)

 

 

168,086

 

 

 

4,813

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

150,004

 

 

 

82,934

 

 

 

95,790

 

 

 

84,254

 

 

 

79,441

 

Cash, cash equivalents and restricted cash at end of period

 

$

252,340

 

 

$

150,004

 

 

$

84,254

 

 

$

252,340

 

 

$

84,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PotlatchDeltic Corporation

Segment Information

Unaudited

 

 

 

Three months ended

 

 

Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

December 31,

 

(in thousands)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

109,764

 

 

$

116,985

 

 

$

88,845

 

 

$

376,519

 

 

$

322,693

 

Wood Products

 

 

208,898

 

 

 

218,291

 

 

 

126,429

 

 

 

698,405

 

 

 

540,408

 

Real Estate

 

 

62,191

 

 

 

18,151

 

 

 

17,413

 

 

 

104,416

 

 

 

78,872

 

 

 

 

380,853

 

 

 

353,427

 

 

 

232,687

 

 

 

1,179,340

 

 

 

941,973

 

Intersegment Timberlands revenues

 

 

(43,404

)

 

 

(40,381

)

 

 

(29,188

)

 

 

(138,410

)

 

 

(114,875

)

Consolidated revenues

 

$

337,449

 

 

$

313,046

 

 

$

203,499

 

 

$

1,040,930

 

 

$

827,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

62,512

 

 

$

59,649

 

 

$

38,010

 

 

$

182,802

 

 

$

133,987

 

Wood Products

 

 

70,315

 

 

 

81,644

 

 

 

1,843

 

 

 

176,095

 

 

 

12,901

 

Real Estate

 

 

56,414

 

 

 

13,466

 

 

 

13,953

 

 

 

86,476

 

 

 

62,650

 

Corporate

 

 

(13,884

)

 

 

(15,361

)

 

 

(9,327

)

 

 

(48,451

)

 

 

(36,257

)

Eliminations and adjustments

 

 

(11,459

)

 

 

(4,012

)

 

 

2,120

 

 

 

(14,694

)

 

 

5,662

 

Total Adjusted EBITDDA

 

 

163,898

 

 

 

135,386

 

 

 

46,599

 

 

 

382,228

 

 

 

178,943

 

Interest expense, net

 

 

(8,869

)

 

 

(8,557

)

 

 

(8,540

)

 

 

(29,463

)

 

 

(30,361

)

Depreciation, depletion and amortization

 

 

(19,671

)

 

 

(20,187

)

 

 

(19,107

)

 

 

(76,261

)

 

 

(70,417

)

Basis of real estate sold

 

 

(10,908

)

 

 

(5,249

)

 

 

(6,343

)

 

 

(25,348

)

 

 

(20,554

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,512

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

(42,988

)

 

 

 

Non-operating pension and other postretirement employee benefits

 

 

(3,556

)

 

 

(3,557

)

 

 

(935

)

 

 

(14,226

)

 

 

(3,739

)

(Loss) gain on fixed assets

 

 

(185

)

 

 

11

 

 

 

(1,125

)

 

 

11

 

 

 

(865

)

Gain on sale of facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,176

 

Income (loss) before income taxes

 

$

120,709

 

 

$

97,847

 

 

$

10,549

 

 

$

193,953

 

 

$

56,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

13,069

 

 

$

13,821

 

 

$

13,240

 

 

$

51,047

 

 

$

46,601

 

Wood Products

 

 

6,200

 

 

 

5,983

 

 

 

5,393

 

 

 

23,611

 

 

 

22,059

 

Real Estate

 

 

155

 

 

 

149

 

 

 

170

 

 

 

620

 

 

 

678

 

Corporate

 

 

247

 

 

 

234

 

 

 

304

 

 

 

983

 

 

 

1,079

 

 

 

 

19,671

 

 

 

20,187

 

 

 

19,107

 

 

 

76,261

 

 

 

70,417

 

Bond discounts and deferred loan fees2

 

 

405

 

 

 

407

 

 

 

409

 

 

 

1,624

 

 

 

1,688

 

Total depreciation, depletion and amortization

 

$

20,076

 

 

$

20,594

 

 

$

19,516

 

 

$

77,885

 

 

$

72,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

$

11,017

 

 

$

5,257

 

 

$

6,423

 

 

$

25,990

 

 

$

20,749

 

Eliminations and adjustments

 

 

(109

)

 

 

(8

)

 

 

(80

)

 

 

(642

)

 

 

(195

)

Total basis of real estate sold

 

$

10,908

 

 

$

5,249

 

 

$

6,343

 

 

$

25,348

 

 

$

20,554

 

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 Operations.

 

PotlatchDeltic Corporation

Reconciliations

Unaudited

 

 

 

Three months ended

 

 

Year ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

December 31,

 

(in thousands, except per share amounts)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Adjusted EBITDDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

100,017

 

 

$

81,007

 

 

$

11,399

 

 

$

166,830

 

 

$

55,661

 

Interest, net

 

 

8,869

 

 

 

8,557

 

 

 

8,540

 

 

 

29,463

 

 

 

30,361

 

Income taxes

 

 

20,692

 

 

 

16,840

 

 

 

(850

)

 

 

27,123

 

 

 

1,010

 

Depreciation, depletion and amortization

 

 

19,671

 

 

 

20,187

 

 

 

19,107

 

 

 

76,261

 

 

 

70,417

 

Basis of real estate sold

 

 

10,908

 

 

 

5,249

 

 

 

6,343

 

 

 

25,348

 

 

 

20,554

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,512

 

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

42,988

 

 

 

 

Non-operating pension and other postretirement benefit costs

 

 

3,556

 

 

 

3,557

 

 

 

935

 

 

 

14,226

 

 

 

3,739

 

Gain on sale of facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,176

)

Loss (gain) on fixed assets

 

 

185

 

 

 

(11

)

 

 

1,125

 

 

 

(11

)

 

 

865

 

Adjusted EBITDDA

 

$

163,898

 

 

$

135,386

 

 

$

46,599

 

 

$

382,228

 

 

$

178,943

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

100,017

 

 

$

81,007

 

 

$

11,399

 

 

$

166,830

 

 

$

55,661

 

Special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,512

 

Pension settlement charge, after tax

 

 

 

 

 

 

 

 

 

 

 

31,811

 

 

 

 

 

Gain on sale of facility, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,790

)

Adjusted net income

 

$

100,017

 

 

$

81,007

 

 

$

11,399

 

 

$

198,641

 

 

$

54,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per diluted share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share (GAAP)

 

$

1.48

 

 

$

1.20

 

 

$

0.17

 

 

$

2.47

 

 

$

0.82

 

Special items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.08

 

Pension settlement charge, after tax

 

 

 

 

 

 

 

 

 

 

 

0.47

 

 

 

 

Gain on sale of facility, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.10

)

Adjusted net income per diluted share

 

$

1.48

 

 

$

1.20

 

 

$

0.17

 

 

$

2.94

 

 

$

0.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Investors)
Jerry Richards
509.835.1521

(Media)
Anna Torma
509.835.1558

Source: PotlatchDeltic Corporation