PotlatchDeltic Corporation Reports Second Quarter 2023 Results
PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $22.3 million, or $0.28 per diluted share, on revenues of $246.1 million for the quarter ended June 30, 2023. Excluding after-tax special items consisting of gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $5.2 million, or $0.06 per diluted share for the second quarter of 2023. Net income was $120.2 million, or $1.72 per diluted share, on revenues of $359.6 million for the quarter ended June 30, 2022. Excluding an after-tax gain on insurance recoveries, adjusted net income was $112.9 million, or $1.61 per diluted share for the second quarter of 2022.
Second Quarter 2023 Highlights
- Generated Total Adjusted EBITDDA of $45.5 million and Total Adjusted EBITDDA margin of 18.5%
- Completed stratification of acquired CatchMark timberlands identifying higher value opportunities
- Repurchased 9,000 shares for $0.4 million, or $45 per share
- Maintained strong liquidity position of $630 million as of June 30, 2023
“Our second quarter 2023 results reflect solid performance across all of our business segments while navigating through an uncertain macroeconomic environment,” said Eric Cremers, president and chief executive officer. “We are encouraged by recent favorable housing data and the upward trend in lumber prices. Looking further ahead, we remain positive on long-term housing-related fundamentals that drive demand in our business. We are well positioned with a strong balance sheet and a portfolio of high-quality assets to grow shareholder value under a disciplined and opportunistic capital allocation strategy,” stated Mr. Cremers.
Financial Highlights
| ($ in millions, except per share data) | Q2 2023 | Q1 2023 | Q2 2022 | |||
| Revenues | $ | 246.1 | $ | 258.0 | $ | 359.6 |
| Net income | $ | 22.3 | $ | 16.3 | $ | 120.2 |
| Weighted average shares outstanding, diluted (in thousands) | 80,416 | 80,167 | 69,791 | |||
| Net income per diluted share | $ | 0.28 | $ | 0.20 | $ | 1.72 |
| Adjusted Net Income | $ | 5.2 | $ | 18.5 | $ | 112.9 |
| Adjusted Net Income per diluted share | $ | 0.06 | $ | 0.23 | $ | 1.61 |
| Total Adjusted EBITDDA | $ | 45.5 | $ | 57.7 | $ | 175.1 |
| Dividends per share1 | $ | 0.45 | $ | 0.45 | $ | 0.44 |
| Net cash from operations | $ | 37.2 | $ | 39.1 | $ | 147.9 |
| Cash and cash equivalents | $ | 331.2 | $ | 325.6 | $ | 511.2 |
| 1 | The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022. |
Business Performance: Q2 2023 vs. Q1 2023
Timberlands
Second Quarter 2023 Highlights
- Timberlands Adjusted EBITDDA decreased $17.2 million from Q1 2023
- Northern harvest volumes decreased due to spring breakup
- Northern sawlog prices increased 2% primarily due to seasonally lighter sawlogs
- Southern harvest volumes were lower primarily due to wet conditions impacting operations
- Southern sawlog prices were flat while pulpwood prices declined 5% on weaker demand
- Forest management costs increased due to seasonally higher activities
| ($ in millions) | Q2 2023 | Q1 2023 | $ Change | |||
| Timberlands Revenues | $ | 88.7 | $ | 115.2 | $ | (26.5) |
| Timberlands Adjusted EBITDDA | $ | 29.4 | $ | 46.6 | $ | (17.2) |
Wood Products
Second Quarter 2023 Highlights
- Wood Products Adjusted EBITDDA increased $11.9 million from Q1 2023
- Average lumber price increased 9% to $476 per MBF in Q2 2023
- Per-unit log costs decreased on lower indexed pricing in Idaho and improved recoveries at our Southern sawmills
- Lumber shipments increased 7%
- Plywood shipments and price decreased due to lower demand
| ($ in millions) | Q2 2023 | Q1 2023 | $ Change | |||
| Wood Products Revenues | $ | 167.7 | $ | 152.8 | $ | 14.9 |
| Wood Products Adjusted EBITDDA | $ | 11.9 | $ | — | $ | 11.9 |
Real Estate
Second Quarter 2023 Highlights
- Real Estate Adjusted EBITDDA decreased $7.3 million from Q1 2023
- Sold 941 acres of rural land at an average price of $4,859 / acre
- Sold 42 residential lots at an average price of $107,126 / lot
- Sold 6 commercial acres at an average price of $818,914 / acre
| ($ in millions) | Q2 2023 | Q1 2023 | $ Change | |||
| Real Estate Revenues | $ | 17.0 | $ | 23.9 | $ | (6.9) |
| Real Estate Adjusted EBITDDA | $ | 12.2 | $ | 19.5 | $ | (7.3) |
For the complete press release, click here.
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.
Contact:
Wayne Wasechek – Investor Contact – (509) 835-1521
Source: PotlatchDeltic Corporation
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