PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2021 Results

PotlatchDeltic Corporation reported net income of $39.2 million, or $0.58 per diluted share, on revenues of $248.4 million for the quarter ended December 31, 2021. Excluding a net loss on fire damage, adjusted net income was $39.9 million, or $0.59 per diluted share for the fourth quarter of 2021. Net income was $100.0 million, or $1.48 per diluted share, on revenues of $337.4 million for the quarter ended December 31, 2020.

Net income for the full year 2021 was $423.9 million, or $6.26 per diluted share, on revenues of $1.3 billion. Excluding a net gain on fire damage, adjusted net income was $421.4 million, or $6.22 per share for 2021. Net income for the full year 2020 was $166.8 million, or $2.47 per diluted share, on revenues of $1.0 billion. Excluding an after-tax pension settlement charge, adjusted net income was $198.6 million, or $2.94 per diluted share for 2020.

2021 Highlights

• Generated record Total Adjusted EBITDDA of $652.9 million and Total Adjusted EBITDDA margin of 49%
• Record Wood Products Adjusted EBITDDA of $393.9 million driven by historic lumber prices
• Timberlands Adjusted EBITDDA of $262.9 million was a record level due to leveraged Idaho lumber indexed pricing
• Acquired $134 million of high-quality timberlands
• Returned $388 million to shareholders through regular dividends and a Q4 special dividend
• Maintained strong liquidity position of $595 million as of December 31, 2021

“2021 was an extraordinary year, with our Wood Products and Timberlands businesses far exceeding last year’s record performance,” said Eric Cremers, president and chief executive officer. “Our leverage-to-lumber strategy capitalized on historic lumber prices and is well situated to continue to drive strong financial performance into 2022. Additionally, we returned $388 million to shareholders in 2021, including a special dividend in December, and are well positioned to continue growing shareholder value through our disciplined and opportunistic capital allocation strategy,” stated Mr. Cremers.

Financial Highlights

¹The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021.

Business Performance: Q4 2021 vs. Q3 2021

Timberlands

Fourth Quarter 2021 Highlights

• Timberlands Adjusted EBITDDA decreased $34.2 million from Q3 2021 levels
• Northern sawlog price decreased 28% primarily due to lower indexed and cedar sawlog prices
• Northern harvest volumes were seasonally lower
• Forest management costs decreased seasonally

Wood Products

Fourth Quarter 2021 Highlights

• Wood Products Adjusted EBITDDA increased $10.6 million from Q3 2021 levels
• Average lumber price increased 6% to $563 per MBF in Q4 2021
• Log costs decreased due to lower index pricing in Idaho
• Plywood price declined from historic levels

Real Estate

Fourth Quarter 2021 Highlights

• Real Estate Adjusted EBITDDA increased $0.9 million from Q3 2021 levels
• Reflects higher rural land sales, partially offset by lower residential lot sales
• Sold 5,674 acres of rural land at an average price of $1,566/acre
• Sold 37 residential lots at an average price of $71,757/lot

Outlook

“2022 is off to a great start with the recent surge in lumber prices benefitting both our Timberlands and Wood Products businesses. We expect housing-related fundamentals that drive demand in our business to remain favorable and we continue to expect lumber prices will remain higher than long-term averages. We continue to monitor the pandemic and the trend in mortgage rates and their impact on lumber demand and our business. During 2022, we expect to harvest approximately 6.1 million tons in our Timberlands segment, ship around 1 billion board feet in lumber, and sell about 13,500 rural acres and 165 residential lots in our Real Estate Segment,” stated Mr. Cremers.

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