PotlatchDeltic Corporation Reports First Quarter 2021 Results

PotlatchDeltic Corporation reported net income of $131.1 million, or $1.94 per diluted share, on revenues of $354.2 million for the quarter ended March 31, 2021. Net loss was $16.8 million, or ($0.25) per diluted share, on revenues of $208.9 million for the quarter ended March 31, 2020. Excluding an after-tax pension settlement charge, adjusted net income was $15.0 million, or $0.22 per diluted share for the first quarter of 2020.

First Quarter 2021 Highlights

–Generated record Total Adjusted EBITDDA of $195.0 million and Total Adjusted EBITDDA margin of 55%

–Record Wood Products Adjusted EBITDDA of $125.5 million driven by historic lumber prices

–Timberlands Adjusted EBITDDA was a record and due to leveraged Idaho lumber index pricing

–Widened strong liquidity position to $761.1 million as of March 31, 2021

“2021 is off to an extraordinary start as our Wood Products and Timberlands businesses leveraged historic lumber prices to drive our third consecutive quarter of record financial performance,” said Eric Cremers, president and chief executive officer. “Our real estate business also delivered strong results by capitalizing on robust rural and development demand. We expect housing fundamentals and lumber demand will remain strong. Our strong liquidity and disciplined capital allocation strategy positions us to continue increasing shareholder value,” stated Mr. Cremers.

Financial Highlights

Business Performance: Q1 2021 vs. Q4 2020

Timberlands

First Quarter 2021 Highlights

–Timberlands Adjusted EBITDDA increased $5.4 million from Q4 2020 levels

–Increased Northern harvest volumes driven by favorable conditions while Southern volumes were seasonally lower

–Northern sawlog prices slightly lower compared to record Q4 2020 prices

–Southern sawlog prices decreased 1% due to seasonally lower hardwood volumes

–Increased log & haul costs reflect higher Northern harvest volume mix

–Forest management costs declined due to seasonally lower Northern activity

Wood Products

First Quarter 2021 Highlights

–Wood Products Adjusted EBITDDA increased $55.2 million from Q4 2020 levels

–Average lumber price realizations increased 41% to $890 per MBF in Q1 2021

–Log costs increased due to higher index pricing in Idaho

–Lumber production was lower due to a winter storm and planned mill maintenance, negatively affecting fixed cost absorption

Real Estate

First Quarter 2021 Highlights

–Real Estate Adjusted EBITDDA decreased $39.9 million as Q4 2020 included Minnesota land sale for nearly $48 million

–Sold 7,083 acres of rural land for $1,415/acre

–Sold 51 residential lots at an average $99,000/lot

–Sold 11 commercial acres for $277,000/acre

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.

For the complete press release, click here.

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.

Contact:

Jerry Richards – Investor Relations – (509) 835-1521

Source: PotlatchDeltic Corporation