SPOKANE, Wash.--(BUSINESS WIRE)--
PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of $11.4 million, or $0.17 per diluted share, on revenues of $203.5 million for the quarter ended December 31, 2019. Net income was $1.8 million, or $0.03 per diluted share, on revenues of $217.3 million for the quarter ended December 31, 2018. Excluding after-tax special items consisting of Deltic merger-related costs, adjusted net income was $2.7 million, or $0.04 per diluted share for the fourth quarter of 2018.
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. Net income was $122.9 million, or $1.99 per diluted share, on revenues of $974.6 million for the full year 2018. Excluding after-tax special items, consisting primarily of a tax benefit related to contributions made to our qualified pension plans and Deltic merger-related costs, adjusted net income was $141.4 million, or $2.28 per diluted share for 2018.
2019 Highlights
- Generated $178.9 million of Total Adjusted EBITDDA and Adjusted EBITDDA margin of 22% in 2019
- Repurchased $25.2 million of shares in 2019 at an average of $36.65/share
- Refinanced $190 million of debt during 2019, lowering weighted average interest rate 80 basis points
- Sold legacy Deltic MDF facility for $92 million in Q1 2019
- Completed $19.6 million rural land sale of former Deltic timberlands for $11,000 per acre in Q2 2019
"2019 was an active year marked by particularly strong performance by our Real Estate business," said Mike Covey, chairman and chief executive officer. "Real Estate generated EBITDDA of $63 million this year, including the sale of former Deltic timberlands for $11,000 per acre. We also returned cash of $133 million to shareholders, sold the legacy Deltic MDF facility and completed an elevated capital expenditure program in our mills in 2019. Our balance sheet remains strong, providing flexibility to continue growing shareholder value," stated Mr. Covey.
Financial Highlights
(in millions, except per share data - unaudited) |
|
Q4 2019 |
|
|
Q3 2019 |
|
|
Q4 2018 |
|
|
||||||
Revenues |
|
$ |
|
203.5 |
|
|
$ |
|
226.3 |
|
|
$ |
|
217.3 |
|
|
Net income |
|
$ |
|
11.4 |
|
|
$ |
|
20.6 |
|
|
$ |
|
1.8 |
|
|
Weighted average shares outstanding, diluted (in thousands) |
|
|
67,695 |
|
|
|
67,545 |
|
|
|
68,110 |
|
|
|||
Net income per diluted share |
|
$ |
|
0.17 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted net income |
|
$ |
|
11.4 |
|
|
$ |
|
20.6 |
|
|
$ |
|
2.7 |
|
|
Adjusted net income per diluted share |
|
$ |
|
0.17 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDDA |
|
$ |
|
46.6 |
|
|
$ |
|
55.0 |
|
|
$ |
|
36.4 |
|
|
Distributions per share |
|
$ |
|
0.40 |
|
|
$ |
|
0.40 |
|
|
$ |
|
3.94 |
|
|
Net cash from operations |
|
$ |
|
33.6 |
|
|
$ |
|
37.9 |
|
|
$ |
|
30.5 |
|
|
Cash and cash equivalents |
|
$ |
|
83.3 |
|
|
$ |
|
94.7 |
|
|
$ |
|
76.6 |
|
|
Business Performance: Q4 2019 vs. Q3 2019
Timberlands
Fourth Quarter 2019 Highlights
- Timberlands Adjusted EBITDDA decreased $5.0 million from Q3 2019 levels
- Northern harvest volumes were seasonally lower
- Northern sawlog prices decreased 4%, mostly the effect of seasonally heavier logs
- Southern sawlog prices decreased 7% due to seasonally lower hardwood volumes and normalization of pine prices
- Decreased log & haul costs driven by lower Northern harvest volumes and seasonally lower rates
(in millions - unaudited) |
|
Q4 2019 |
|
|
Q3 2019 |
|
|
$ Change |
|
||||||
Segment Revenues |
|
$ |
|
88.8 |
|
|
$ |
|
98.8 |
|
|
$ |
|
(10.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDDA |
|
$ |
|
38.0 |
|
|
$ |
|
43.0 |
|
|
$ |
|
(5.0 |
) |
Wood Products
Fourth Quarter 2019 Highlights
- Wood Products Adjusted EBITDDA decreased $4.1 million from Q3 2019 levels
- Average lumber prices were up slightly in Q4 2019
- Lumber production was lower in Q4 2019, which negatively affected fixed cost absorption
- Log costs increased due to higher index pricing in Idaho
(in millions - unaudited) |
|
Q4 2019 |
|
|
Q3 2019 |
|
|
$ Change |
|
||||||
Segment Revenues |
|
$ |
|
126.4 |
|
|
$ |
|
143.7 |
|
|
$ |
|
(17.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDDA |
|
$ |
|
1.8 |
|
|
$ |
|
5.9 |
|
|
$ |
|
(4.1 |
) |
Real Estate
Fourth Quarter 2019 Highlights
- Real Estate Adjusted EBITDDA decreased $0.7 million as a decline in rural land sales was mostly offset by increased commercial land sales
- Sold 55 residential lots at an average $70,000/lot in Q4 2019
- Completed sale of 32 acres of commercial land for $200,000/acre in Q4 2019
(in millions - unaudited) |
|
Q4 2019 |
|
|
Q3 2019 |
|
|
$ Change |
|
||||||
Segment Revenues |
|
$ |
|
17.4 |
|
|
$ |
|
18.9 |
|
|
$ |
|
(1.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDDA |
|
$ |
|
14.0 |
|
|
$ |
|
14.7 |
|
|
$ |
|
(0.7 |
) |
Outlook
“We are encouraged by the increased pace of U.S. housing starts during the second half of 2019 along with robust levels of housing permits and homebuilder order files entering 2020. We expect this to translate into stronger demand and higher prices for lumber this year, which is meaningful given our leverage to lumber prices. During 2020, we expect to harvest approximately 6 million tons in our Timberlands segment, ship over 1.1 billion board feet of lumber, and sell 20,000 to 25,000 rural acres and approximately 140 residential lots in our Real Estate segment,” stated Mr. Covey.
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 4, 2020, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time). Investors may access the webcast at 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 1553635. 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 February 11, 2020 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 1553635 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 .
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 U.S. housing market and repair and remodel market; U.S. housing starts; lumber demand, pricing, revenues, costs and expenses; lumber shipments; expected timber harvest volumes; real estate sales; the direction of our business markets; 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 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 |
|||||||||||||||||||||||||
Consolidated Statements of Income |
|||||||||||||||||||||||||
Unaudited |
|||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
|||||||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|||||||||||||
(in thousands, except per share amounts) |
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|||||
Revenues |
|
$ |
|
203,499 |
|
|
$ |
|
226,302 |
|
|
$ |
|
217,250 |
|
|
$ |
|
827,098 |
|
|
$ |
|
974,579 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold |
|
|
169,544 |
|
|
|
182,634 |
|
|
|
192,000 |
|
|
|
682,066 |
|
|
|
707,645 |
|
|||||
Selling, general and administrative expenses |
|
|
13,931 |
|
|
|
12,472 |
|
|
|
14,412 |
|
|
|
57,925 |
|
|
|
59,861 |
|
|||||
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,176 |
) |
|
|
— |
|
|||||
Deltic merger-related costs |
|
|
— |
|
|
|
— |
|
|
|
874 |
|
|
|
— |
|
|
|
22,119 |
|
|||||
|
|
|
183,475 |
|
|
|
195,106 |
|
|
|
207,286 |
|
|
|
730,815 |
|
|
|
789,625 |
|
|||||
Operating income |
|
|
20,024 |
|
|
|
31,196 |
|
|
|
9,964 |
|
|
|
96,283 |
|
|
|
184,954 |
|
|||||
Interest expense, net |
|
|
(8,540 |
) |
|
|
(8,475 |
) |
|
|
(10,102 |
) |
|
|
(30,361 |
) |
|
|
(35,227 |
) |
|||||
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,512 |
) |
|
|
— |
|
|||||
Non-operating pension and other postretirement costs |
|
|
(935 |
) |
|
|
(935 |
) |
|
|
(1,941 |
) |
|
|
(3,739 |
) |
|
|
(7,648 |
) |
|||||
Income (loss) before income taxes |
|
|
10,549 |
|
|
|
21,786 |
|
|
|
(2,079 |
) |
|
|
56,671 |
|
|
|
142,079 |
|
|||||
Income taxes |
|
|
850 |
|
|
|
(1,221 |
) |
|
|
3,878 |
|
|
|
(1,010 |
) |
|
|
(19,199 |
) |
|||||
Net income |
|
$ |
|
11,399 |
|
|
$ |
|
20,565 |
|
|
$ |
|
1,799 |
|
|
$ |
|
55,661 |
|
|
$ |
|
122,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
$ |
|
0.17 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.03 |
|
|
$ |
|
0.82 |
|
|
$ |
|
2.03 |
|
Diluted |
|
$ |
|
0.17 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.03 |
|
|
$ |
|
0.82 |
|
|
$ |
|
1.99 |
|
Regular dividends per share |
|
$ |
|
0.40 |
|
|
$ |
|
0.40 |
|
|
$ |
|
0.40 |
|
|
$ |
|
1.60 |
|
|
$ |
|
1.60 |
|
Special distribution per share1 |
|
$ |
|
— |
|
|
$ |
|
— |
|
|
$ |
|
3.54 |
|
|
$ |
|
— |
|
|
$ |
|
3.54 |
|
Weighted-average shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
67,476 |
|
|
|
67,446 |
|
|
|
65,486 |
|
|
|
67,608 |
|
|
|
60,534 |
|
|||||
Diluted |
|
|
67,695 |
|
|
|
67,545 |
|
|
|
68,110 |
|
|
|
67,743 |
|
|
|
61,814 |
|
|||||
1 Deltic earnings and profit special distribution of $222 million, paid on November 15, 2018. |
|||||||||||||||||||||||||
PotlatchDeltic Corporation |
||||||||||
Consolidated Balance Sheets |
||||||||||
Unaudited |
||||||||||
|
|
At December 31, |
|
|||||||
(in thousands, except per share amounts) |
|
|
2019 |
|
|
|
2018 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
|
83,310 |
|
|
$ |
|
76,639 |
|
Customer receivables, net |
|
|
14,167 |
|
|
|
21,405 |
|
||
Inventories, net |
|
|
65,781 |
|
|
|
60,805 |
|
||
Other current assets |
|
|
20,183 |
|
|
|
22,675 |
|
||
Assets held for sale |
|
|
— |
|
|
|
80,674 |
|
||
Total current assets |
|
|
183,441 |
|
|
|
262,198 |
|
||
Property, plant and equipment, net |
|
|
286,383 |
|
|
|
272,193 |
|
||
Investment in real estate held for development and sale |
|
|
74,233 |
|
|
|
79,537 |
|
||
Timber and timberlands, net |
|
|
1,638,663 |
|
|
|
1,672,815 |
|
||
Intangible assets, net |
|
|
17,049 |
|
|
|
17,828 |
|
||
Other long-term assets |
|
|
35,290 |
|
|
|
21,281 |
|
||
Total assets |
|
$ |
|
2,235,059 |
|
|
$ |
|
2,325,852 |
|
|
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
|
60,577 |
|
|
$ |
|
60,993 |
|
Current portion of long-term debt |
|
|
45,974 |
|
|
|
39,973 |
|
||
Current portion of pension and other postretirement employee benefits |
|
|
6,701 |
|
|
|
5,997 |
|
||
Liabilities held for sale |
|
|
— |
|
|
|
29,321 |
|
||
Total current liabilities |
|
|
113,252 |
|
|
|
136,284 |
|
||
Long-term debt |
|
|
710,495 |
|
|
|
715,391 |
|
||
Pension and other postretirement employee benefits |
|
|
115,463 |
|
|
|
110,659 |
|
||
Deferred tax liabilities, net |
|
|
20,165 |
|
|
|
32,009 |
|
||
Other long-term obligations |
|
|
48,853 |
|
|
|
16,730 |
|
||
Total liabilities |
|
|
1,008,228 |
|
|
|
1,011,073 |
|
||
Commitments and contingencies |
|
|
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
|
|
||
Common stock, $1 par value |
|
|
67,221 |
|
|
|
67,570 |
|
||
Additional paid-in capital |
|
|
1,666,299 |
|
|
|
1,659,031 |
|
||
Accumulated deficit |
|
|
(359,330 |
) |
|
|
(282,391 |
) |
||
Accumulated other comprehensive loss |
|
|
(147,359 |
) |
|
|
(129,431 |
) |
||
Total stockholders’ equity |
|
|
1,226,831 |
|
|
|
1,314,779 |
|
||
Total liabilities and stockholders' equity |
|
$ |
|
2,235,059 |
|
|
$ |
|
2,325,852 |
|
PotlatchDeltic Corporation |
|||||||||||||||||||||||||
Consolidated Statements of Cash Flows |
|||||||||||||||||||||||||
Unaudited |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
|||||||||||||||||||
(in thousands) |
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
|
11,399 |
|
|
$ |
|
20,565 |
|
|
$ |
|
1,799 |
|
|
$ |
|
55,661 |
|
|
$ |
|
122,880 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
|
19,516 |
|
|
|
19,178 |
|
|
|
19,476 |
|
|
|
72,105 |
|
|
|
73,161 |
|
|||||
Basis of real estate sold |
|
|
6,343 |
|
|
|
5,228 |
|
|
|
6,025 |
|
|
|
20,554 |
|
|
|
16,698 |
|
|||||
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,176 |
) |
|
|
— |
|
|||||
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,512 |
|
|
|
— |
|
|||||
Change in deferred taxes |
|
|
5,898 |
|
|
|
295 |
|
|
|
(1,718 |
) |
|
|
(11,045 |
) |
|
|
12,161 |
|
|||||
Employee benefit plans |
|
|
2,970 |
|
|
|
2,970 |
|
|
|
4,222 |
|
|
|
11,877 |
|
|
|
16,443 |
|
|||||
Equity-based compensation expense |
|
|
1,910 |
|
|
|
1,913 |
|
|
|
1,688 |
|
|
|
7,272 |
|
|
|
8,206 |
|
|||||
Other, net |
|
|
368 |
|
|
|
(764 |
) |
|
|
— |
|
|
|
(2,324 |
) |
|
|
(1,221 |
) |
|||||
Change in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Receivables, net |
|
|
13,047 |
|
|
|
(2,735 |
) |
|
|
17,893 |
|
|
|
7,238 |
|
|
|
2,822 |
|
|||||
Inventories, net |
|
|
(11,579 |
) |
|
|
(81 |
) |
|
|
5,595 |
|
|
|
(3,519 |
) |
|
|
273 |
|
|||||
Other assets |
|
|
5,648 |
|
|
|
(4,444 |
) |
|
|
(5,739 |
) |
|
|
5,305 |
|
|
|
(3,996 |
) |
|||||
Accounts payable and accrued liabilities |
|
|
(20,231 |
) |
|
|
(1,620 |
) |
|
|
(12,992 |
) |
|
|
(11,415 |
) |
|
|
(5,212 |
) |
|||||
Other liabilities |
|
|
934 |
|
|
|
135 |
|
|
|
(2,135 |
) |
|
|
3,955 |
|
|
|
(692 |
) |
|||||
Real estate development expenditures |
|
|
(1,516 |
) |
|
|
(1,257 |
) |
|
|
(1,968 |
) |
|
|
(7,254 |
) |
|
|
(5,049 |
) |
|||||
Funding of pension and other postretirement employee benefits |
|
|
(1,066 |
) |
|
|
(1,477 |
) |
|
|
(1,621 |
) |
|
|
(5,678 |
) |
|
|
(57,580 |
) |
|||||
Net cash provided by operating activities |
|
|
33,641 |
|
|
|
37,906 |
|
|
|
30,525 |
|
|
|
139,068 |
|
|
|
178,894 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchase of property, plant and equipment |
|
|
(13,557 |
) |
|
|
(10,094 |
) |
|
|
(11,384 |
) |
|
|
(39,153 |
) |
|
|
(29,880 |
) |
|||||
Timberlands reforestation and roads |
|
|
(4,426 |
) |
|
|
(5,079 |
) |
|
|
(4,914 |
) |
|
|
(17,695 |
) |
|
|
(17,378 |
) |
|||||
Acquisition of timber and timberlands |
|
|
(348 |
) |
|
|
— |
|
|
|
(4,712 |
) |
|
|
(626 |
) |
|
|
(4,877 |
) |
|||||
Proceeds on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
58,793 |
|
|
|
— |
|
|||||
Cash and cash equivalents acquired in merger |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,419 |
|
|||||
Transfer from company owned life insurance (COLI) |
|
|
977 |
|
|
|
191 |
|
|
|
226 |
|
|
|
1,968 |
|
|
|
1,796 |
|
|||||
Transfer to COLI |
|
|
(569 |
) |
|
|
(124 |
) |
|
|
(114 |
) |
|
|
(1,148 |
) |
|
|
(1,027 |
) |
|||||
Other, net |
|
|
253 |
|
|
|
2,037 |
|
|
|
41 |
|
|
|
2,378 |
|
|
|
38 |
|
|||||
Net cash (used in) provided by investing activities |
|
|
(17,670 |
) |
|
|
(13,069 |
) |
|
|
(20,857 |
) |
|
|
4,517 |
|
|
|
(47,909 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Distributions to common stockholders |
|
|
(26,888 |
) |
|
|
(26,888 |
) |
|
|
(71,462 |
) |
|
|
(107,722 |
) |
|
|
(146,768 |
) |
|||||
Repurchase of common stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25,173 |
) |
|
|
— |
|
|||||
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 |
|
|
40,000 |
|
|
|
— |
|
|
|
— |
|
|
|
190,000 |
|
|
|
100,000 |
|
|||||
Repayment of long-term debt |
|
|
(40,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
(190,000 |
) |
|
|
(14,250 |
) |
|||||
Premiums and fees on debt retirement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,865 |
) |
|
|
— |
|
|||||
Other, net |
|
|
(619 |
) |
|
|
(129 |
) |
|
|
(8 |
) |
|
|
(1,012 |
) |
|
|
(4,983 |
) |
|||||
Net cash used in financing activities |
|
|
(27,507 |
) |
|
|
(27,017 |
) |
|
|
(71,470 |
) |
|
|
(138,772 |
) |
|
|
(172,001 |
) |
|||||
Change in cash, cash equivalents and restricted cash |
|
|
(11,536 |
) |
|
|
(2,180 |
) |
|
|
(61,802 |
) |
|
|
4,813 |
|
|
|
(41,016 |
) |
|||||
Cash, cash equivalents and restricted cash at beginning of period |
|
|
95,790 |
|
|
|
97,970 |
|
|
|
141,243 |
|
|
|
79,441 |
|
|
|
120,457 |
|
|||||
Cash, cash equivalents and restricted cash at end of period |
|
$ |
|
84,254 |
|
|
$ |
|
95,790 |
|
|
$ |
|
79,441 |
|
|
$ |
|
84,254 |
|
|
$ |
|
79,441 |
|
PotlatchDeltic Corporation |
|||||||||||||||||||||||||
Segment Information |
|||||||||||||||||||||||||
Unaudited |
|||||||||||||||||||||||||
|
|
Three months ended |
|
|
Year Ended |
|
|||||||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|||||||||||||
(in thousands) |
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
|
$ |
|
88,845 |
|
|
$ |
|
98,809 |
|
|
$ |
|
74,512 |
|
|
$ |
|
322,693 |
|
|
$ |
|
354,950 |
|
Wood Products |
|
|
126,429 |
|
|
|
143,643 |
|
|
|
148,506 |
|
|
|
540,408 |
|
|
|
680,931 |
|
|||||
Real Estate |
|
|
17,413 |
|
|
|
18,863 |
|
|
|
16,347 |
|
|
|
78,872 |
|
|
|
54,566 |
|
|||||
|
|
|
232,687 |
|
|
|
261,315 |
|
|
|
239,365 |
|
|
|
941,973 |
|
|
|
1,090,447 |
|
|||||
Intersegment Timberlands revenues |
|
|
(29,188 |
) |
|
|
(35,013 |
) |
|
|
(22,115 |
) |
|
|
(114,875 |
) |
|
|
(115,868 |
) |
|||||
Consolidated revenues |
|
$ |
|
203,499 |
|
|
$ |
|
226,302 |
|
|
$ |
|
217,250 |
|
|
$ |
|
827,098 |
|
|
$ |
|
974,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
|
$ |
|
38,010 |
|
|
$ |
|
42,996 |
|
|
$ |
|
29,766 |
|
|
$ |
|
133,987 |
|
|
$ |
|
169,834 |
|
Wood Products |
|
|
1,843 |
|
|
|
5,903 |
|
|
|
3,621 |
|
|
|
12,901 |
|
|
|
130,583 |
|
|||||
Real Estate |
|
|
13,953 |
|
|
|
14,678 |
|
|
|
12,535 |
|
|
|
62,650 |
|
|
|
40,304 |
|
|||||
Corporate |
|
|
(9,327 |
) |
|
|
(6,930 |
) |
|
|
(8,816 |
) |
|
|
(36,257 |
) |
|
|
(37,785 |
) |
|||||
Eliminations and adjustments |
|
|
2,120 |
|
|
|
(1,635 |
) |
|
|
(663 |
) |
|
|
5,662 |
|
|
|
(5,743 |
) |
|||||
Total Adjusted EBITDDA |
|
|
46,599 |
|
|
|
55,012 |
|
|
|
36,443 |
|
|
|
178,943 |
|
|
|
297,193 |
|
|||||
Basis of real estate sold |
|
|
(6,343 |
) |
|
|
(5,228 |
) |
|
|
(6,025 |
) |
|
|
(20,554 |
) |
|
|
(16,698 |
) |
|||||
Depreciation, depletion and amortization |
|
|
(19,107 |
) |
|
|
(18,786 |
) |
|
|
(18,866 |
) |
|
|
(70,417 |
) |
|
|
(70,848 |
) |
|||||
Interest expense, net |
|
|
(8,540 |
) |
|
|
(8,475 |
) |
|
|
(10,102 |
) |
|
|
(30,361 |
) |
|
|
(35,227 |
) |
|||||
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,512 |
) |
|
|
— |
|
|||||
Non-operating pension and other postretirement employee benefits |
|
|
(935 |
) |
|
|
(935 |
) |
|
|
(1,941 |
) |
|
|
(3,739 |
) |
|
|
(7,648 |
) |
|||||
(Loss) gain on fixed assets |
|
|
(1,125 |
) |
|
|
198 |
|
|
|
(714 |
) |
|
|
(865 |
) |
|
|
(725 |
) |
|||||
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,176 |
|
|
|
— |
|
|||||
Inventory purchase price adjustment in cost of goods sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,849 |
) |
|||||
Deltic merger-related costs |
|
|
— |
|
|
|
— |
|
|
|
(874 |
) |
|
|
— |
|
|
|
(22,119 |
) |
|||||
Income (loss) before income taxes |
|
$ |
|
10,549 |
|
|
$ |
|
21,786 |
|
|
$ |
|
(2,079 |
) |
|
$ |
|
56,671 |
|
|
$ |
|
142,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Timberlands |
|
$ |
|
13,240 |
|
|
$ |
|
12,627 |
|
|
$ |
|
12,227 |
|
|
$ |
|
46,601 |
|
|
$ |
|
48,201 |
|
Wood Products |
|
|
5,393 |
|
|
|
5,763 |
|
|
|
6,166 |
|
|
|
22,059 |
|
|
|
21,416 |
|
|||||
Real Estate |
|
|
170 |
|
|
|
152 |
|
|
|
220 |
|
|
|
678 |
|
|
|
418 |
|
|||||
Corporate |
|
|
304 |
|
|
|
244 |
|
|
|
253 |
|
|
|
1,079 |
|
|
|
813 |
|
|||||
|
|
|
19,107 |
|
|
|
18,786 |
|
|
|
18,866 |
|
|
|
70,417 |
|
|
|
70,848 |
|
|||||
Bond discounts and deferred loan fees2 |
|
|
409 |
|
|
|
392 |
|
|
|
610 |
|
|
|
1,688 |
|
|
|
2,313 |
|
|||||
Total depreciation, depletion and amortization |
|
$ |
|
19,516 |
|
|
$ |
|
19,178 |
|
|
$ |
|
19,476 |
|
|
$ |
|
72,105 |
|
|
$ |
|
73,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate |
|
$ |
|
6,423 |
|
|
$ |
|
5,283 |
|
|
$ |
|
6,068 |
|
|
$ |
|
20,749 |
|
|
$ |
|
16,954 |
|
Eliminations and adjustments |
|
|
(80 |
) |
|
|
(55 |
) |
|
|
(43 |
) |
|
|
(195 |
) |
|
|
(256 |
) |
|||||
Total basis of real estate sold |
|
$ |
|
6,343 |
|
|
$ |
|
5,228 |
|
|
$ |
|
6,025 |
|
|
$ |
|
20,554 |
|
|
$ |
|
16,698 |
|
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 Consolidated Statements of Income. |
|||||||||||||||||||||||||
PotlatchDeltic Corporation |
||||||||||||||||||||||||
Reconciliations |
||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||
|
Three months ended |
|
|
Year ended |
|
|||||||||||||||||||
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|||||||||||||
(in thousands, except per share amounts) |
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|||||
Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (GAAP) |
$ |
|
11,399 |
|
|
$ |
|
20,565 |
|
|
$ |
|
1,799 |
|
|
$ |
|
55,661 |
|
|
$ |
|
122,880 |
|
Interest, net |
|
8,540 |
|
|
|
8,475 |
|
|
|
10,102 |
|
|
|
30,361 |
|
|
|
35,227 |
|
|||||
Income taxes |
|
(850 |
) |
|
|
1,221 |
|
|
|
(3,878 |
) |
|
|
1,010 |
|
|
|
19,199 |
|
|||||
Depreciation, depletion and amortization |
|
19,107 |
|
|
|
18,786 |
|
|
|
18,866 |
|
|
|
70,417 |
|
|
|
70,848 |
|
|||||
Basis of real estate sold |
|
6,343 |
|
|
|
5,228 |
|
|
|
6,025 |
|
|
|
20,554 |
|
|
|
16,698 |
|
|||||
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,512 |
|
|
|
— |
|
|||||
Non-operating pension and other postretirement benefit costs |
|
935 |
|
|
|
935 |
|
|
|
1,941 |
|
|
|
3,739 |
|
|
|
7,648 |
|
|||||
Deltic merger-related costs |
|
— |
|
|
|
— |
|
|
|
874 |
|
|
|
— |
|
|
|
22,119 |
|
|||||
Gain on sale of facility |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,176 |
) |
|
|
— |
|
|||||
Inventory purchase price adjustment in cost of goods sold |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,849 |
|
|||||
(Gain) loss on fixed assets |
|
1,125 |
|
|
|
(198 |
) |
|
|
714 |
|
|
|
865 |
|
|
|
725 |
|
|||||
Adjusted EBITDDA |
$ |
|
46,599 |
|
|
$ |
|
55,012 |
|
|
$ |
|
36,443 |
|
|
$ |
|
178,943 |
|
|
$ |
|
297,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (GAAP) |
$ |
|
11,399 |
|
|
$ |
|
20,565 |
|
|
$ |
|
1,799 |
|
|
$ |
|
55,661 |
|
|
$ |
|
122,880 |
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,512 |
|
|
|
— |
|
|||||
Gain on sale of facility, after tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,790 |
) |
|
|
— |
|
|||||
Deltic merger-related costs |
|
— |
|
|
|
— |
|
|
|
874 |
|
|
|
— |
|
|
|
22,119 |
|
|||||
Inventory purchase price adjustment in cost of goods sold, after tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,368 |
|
|||||
Tax adjustments1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,015 |
) |
|||||
Adjusted net income |
$ |
|
11,399 |
|
|
$ |
|
20,565 |
|
|
$ |
|
2,673 |
|
|
$ |
|
54,383 |
|
|
$ |
|
141,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted net income per diluted share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income per diluted share (GAAP) |
$ |
|
0.17 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.03 |
|
|
$ |
|
0.82 |
|
|
$ |
|
1.99 |
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|||||
Gain on sale of facility, after tax |
. |
|
|
|
— |
|
|
|
— |
|
|
|
(0.10 |
) |
|
|
— |
|
||||||
Deltic merger-related costs |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.36 |
|
|||||
Inventory purchase price adjustment in cost of goods sold, after tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|||||
Tax adjustments1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.09 |
) |
|||||
Adjusted net income per diluted share |
$ |
|
0.17 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.04 |
|
|
$ |
|
0.80 |
|
|
$ |
|
2.28 |
|
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. |
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