PotlatchDeltic reports Q4 income of US$39.2M on revenues of US$248.4M, FY 2021 income of US$423.9M on revenues of US$1.3B; wood products, timberlands businesses boosted by high lumber prices in 2021 and company acquired US$134M of high-quality timberlands

Sample article from our Forestry & Timberland

SPOKANE, Washington , January 31, 2022 (press release) –

PotlatchDeltic Corporation (Nasdaq: PCH) today 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

(in millions, except per share data - unaudited)

 

Q4 2021

 

 

Q3 2021

 

 

Q4 2020

 

 

Revenues

 

$

248.4

 

 

$

287.3

 

 

$

337.4

 

 

Net income

 

$

39.2

 

 

$

65.7

 

 

$

100.0

 

 

Weighted average shares outstanding, diluted (in thousands)

 

 

67,974

 

 

 

67,648

 

 

 

67,607

 

 

Net income per diluted share

 

$

0.58

 

 

$

0.97

 

 

$

1.48

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

39.9

 

 

$

62.4

 

 

$

100.0

 

 

Adjusted net income per diluted share

 

$

0.59

 

 

$

0.92

 

 

$

1.48

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDDA

 

$

75.7

 

 

$

107.2

 

 

$

163.9

 

 

Dividends per share1

 

$

4.44

 

 

$

0.41

 

 

$

0.41

 

 

Net cash from operations

 

$

51.6

 

 

$

111.9

 

 

$

144.4

 

 

Cash and cash equivalents

 

$

296.2

 

 

$

592.8

 

 

$

252.3

 

 

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

(in millions - unaudited)

 

Q4 2021

 

 

Q3 2021

 

 

$ Change

 

Segment Revenues

 

$

86.8

 

 

$

129.5

 

 

$

(42.7

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA

 

$

41.8

 

 

$

76.0

 

 

$

(34.2

)

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

(in millions - unaudited)

 

Q4 2021

 

 

Q3 2021

 

 

$ Change

 

Segment Revenues

 

$

174.2

 

 

$

187.8

 

 

$

(13.6

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA

 

$

37.2

 

 

$

26.6

 

 

$

10.6

 

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

(in millions - unaudited)

 

Q4 2021

 

 

Q3 2021

 

 

$ Change

 

Segment Revenues

 

$

14.0

 

 

$

13.5

 

 

$

0.5

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA

 

$

10.0

 

 

$

9.1

 

 

$

0.9

 

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.

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 income 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 1, 2022, 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 1-888-510-2008 for U.S./Canada and 1-646-960-0306 for international callers. Participants will be asked to provide conference I.D. number 7281983. 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 8, 2022, by calling 1-800-770-2030 for U.S./Canada or 1-647-362-9199 for international callers. Callers must enter conference I.D. number 7281983 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.

 

Industry Intelligence editor's note: Some tables and other information have been omitted. To view the original on the company's website, click here.

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