SEATTLE
,
April 28, 2023
(press release)
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Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $151 million, or 21 cents per diluted share, on net sales of $1.9 billion. This compares with net earnings of $771 million, or $1.03 per diluted share, on net sales of $3.1 billion for the same period last year and net earnings of $11 million for the fourth quarter of 2022. There were no special items in first quarter 2023. Net earnings before special items were $978 million for the same period last year and $171 million for the fourth quarter of 2022. Adjusted EBITDA for the first quarter of 2023 was $395 million compared with $1.5 billion for the same period last year and $369 million for the fourth quarter of 2022. "I am pleased with the solid operational and financial results delivered by our teams in the first quarter," said Devin W. Stockfish, president and chief executive officer. "In addition, during the quarter we increased our base dividend by 5.6 percent and returned more than $830 million to shareholders through base and supplemental dividend payments and share repurchase activity. Looking forward, we remain constructive on the longer-term demand fundamentals that will drive growth for our businesses, notwithstanding the current macroeconomic headwinds. Our financial position is exceptionally strong, and we remain focused on driving operational excellence across our unmatched portfolio of assets and enhancing shareholder value through disciplined capital allocation." WEYERHAEUSER FINANCIAL HIGHLIGHTS 2022 2023 2022 (millions, except per share data) Q4 Q1 Q1 Net sales $ 1,823 $ 1,881 $ 3,112 Net earnings $ 11 $ 151 $ 771 Net earnings per diluted share $ 0.02 $ 0.21 $ 1.03 Weighted average shares outstanding, diluted 737 734 749 Net earnings before special items(1)(2) $ 171 $ 151 $ 978 Net earnings per diluted share before special items(1) $ 0.24 $ 0.21 $ 1.31 Adjusted EBITDA(1) $ 369 $ 395 $ 1,497 Net cash from operations $ 167 $ 126 $ 957 Adjusted FAD(3) $ (56) $ 55 $ 850 (1) Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release. (2) Special items for prior periods presented are included in the reconciliation tables within this release. (3) Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release. TIMBERLANDS FINANCIAL HIGHLIGHTS 2022 2023 (millions) Q4 Q1 Change Net sales $ 548 $ 604 $ 56 Net contribution to pretax earnings $ 86 $ 120 $ 34 Adjusted EBITDA $ 150 $ 188 $ 38 Q1 2023 Performance – In the West, fee harvest volumes were significantly higher than the fourth quarter which had one month of operations affected by the work stoppage. Sales volumes were significantly higher, particularly for export volumes to China. Sales realizations were lower, driven by domestic and Japanese export sales. Per unit log and haul costs were moderately lower and forestry and road costs were seasonally lower. In the South, fee harvest volumes were slightly higher and sales realizations were comparable. Per unit log and haul costs were slightly lower and forestry and road costs were slightly higher. Q2 2023 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be approximately $20 million lower than the first quarter. In the West, the company expects moderately lower sales realizations, partially offset by significantly lower per unit log and haul costs and moderately higher fee harvest volumes. In the South, sales realizations and per unit log and haul costs are expected to be slightly lower, while fee harvest volumes are expected to be comparable. The company expects forestry and road costs in the West and South to be seasonally higher. REAL ESTATE, ENERGY & NATURAL RESOURCES FINANCIAL HIGHLIGHTS 2022 2023 (millions) Q4 Q1 Change Net sales $ 55 $ 101 $ 46 Net contribution to pretax earnings $ 24 $ 53 $ 29 Pretax charge for special items $ 10 $ — $ (10) Net contribution to pretax earnings before special items $ 34 $ 53 $ 19 Adjusted EBITDA $ 46 $ 89 $ 43 Q1 2023 Performance – Earnings and Adjusted EBITDA increased from the fourth quarter due to higher real estate sales, partially offset by lower royalty income from the company's Energy and Natural Resources business. The number of acres sold increased significantly due to the timing of transactions, and the average price per acre decreased due to the mix of properties sold. Q2 2023 Outlook – Weyerhaeuser anticipates second quarter earnings will be comparable to the first quarter and Adjusted EBITDA will be approximately $20 million lower than the first quarter due to the timing and mix of real estate sales. WOOD PRODUCTS FINANCIAL HIGHLIGHTS 2022 2023 (millions) Q4 Q1 Change Net sales $ 1,331 $ 1,318 $ (13) Net contribution to pretax earnings $ 147 $ 95 $ (52) Adjusted EBITDA $ 197 $ 148 $ (49) Q1 2023 Performance – Sales realizations for lumber and oriented strand board decreased 9 percent and 20 percent, respectively, compared with fourth quarter averages. Sales and production volumes for lumber were significantly higher than the fourth quarter which had one month of operations affected by the work stoppage at mills in the Northwest. Unit manufacturing costs were significantly lower and log costs were comparable. For oriented strand board, sales volumes were significantly higher due to increased production and improved transportation networks. Unit manufacturing costs and fiber costs were both moderately lower. Sales realizations and sales volumes were lower for most engineered wood products due to softening demand. Raw material costs were lower, primarily for oriented strand board webstock. Q2 2023 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be slightly higher than the first quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects higher sales volumes and moderately lower log costs and unit manufacturing costs. For oriented strand board, the company anticipates comparable sales volumes, slightly lower fiber costs and moderately higher unit manufacturing costs. Sales volumes are expected to be significantly higher and raw material costs are expected to be moderately lower for most engineered wood products, partially offset by moderately lower sales realizations. ABOUT WEYERHAEUSER Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com. EARNINGS CALL INFORMATION Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 28, 2023, to discuss first quarter results. To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 28, 2023. To join the conference call from within North America, dial 1-877-407-0792 (access code: 13734907) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13734907). Replays will be available for two weeks at 1-844-512-2921 (access code: 13734907) from within North America, and at 1-412-317-6671 (access code: 13734907) from outside North America. FORWARD-LOOKING STATEMENTS This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, with respect to our outlook and expectations concerning the following: the growth of our business and long-term demand drivers; earnings and Adjusted EBITDA for the company and for each of our businesses; fee harvest volumes, sales realizations, log and haul costs and forestry and road expenses for our Timberlands business; sales volumes, log costs and unit manufacturing costs for our lumber business; sales volumes, fiber costs and unit manufacturing costs for our oriented strand board business; and sales volumes, sales realizations and raw material costs for our engineered wood products business. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words and expressions such as "anticipate," "expect," "looking forward," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words and expressions. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to: It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) for the business segments, as those are the most directly comparable U.S. GAAP measures for each. The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2022: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 11 Interest expense, net of capitalized interest 66 Income taxes (45) Net contribution (charge) to earnings $ 86 $ 24 $ 147 $ (225) $ 32 Non-operating pension and other post- — — — 216 216 Interest income and other — — — (16) (16) Operating income (loss) 86 24 147 (25) 232 Depreciation, depletion and amortization 64 5 50 1 120 Basis of real estate sold — 7 — — 7 Special items included in operating — 10 — — 10 Adjusted EBITDA $ 150 $ 46 $ 197 $ (24) $ 369 (1) Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $205 million noncash settlement charge related to the transfer of pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract. (2) Operating income (loss) for Real Estate & ENR includes a pretax special item consisting of a $10 million noncash impairment charge related to the planned divestiture of legacy coal assets. The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2023: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 151 Interest expense, net of capitalized interest 66 Income taxes 22 Net contribution (charge) to earnings $ 120 $ 53 $ 95 $ (29) $ 239 Non-operating pension and other post- — — — 9 9 Interest income and other — — — (12) (12) Operating income (loss) 120 53 95 (32) 236 Depreciation, depletion and amortization 68 3 53 2 126 Basis of real estate sold — 33 — — 33 Adjusted EBITDA $ 188 $ 89 $ 148 $ (30) $ 395 The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2022: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 771 Interest expense, net of capitalized interest 72 Loss on debt extinguishment(1) 276 Income taxes 209 Net contribution (charge) to earnings $ 182 $ 81 $ 1,182 $ (117) $ 1,328 Non-operating pension and other post- — — — 15 15 Interest income and other — — — 1 1 Operating income (loss) 182 81 1,182 (101) 1,344 Depreciation, depletion and amortization 65 4 51 2 122 Basis of real estate sold — 31 — — 31 Adjusted EBITDA $ 247 $ 116 $ 1,233 $ (99) $ 1,497 (1) Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt. RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties. The table below reconciles net earnings before special items to net earnings: 2022 2023 2022 (millions) Q4 Q1 Q1 Net earnings $ 11 $ 151 $ 771 Loss on debt extinguishment — — 207 Pension settlement charge 152 — — Restructuring, impairments and other charges 8 — — Net earnings before special items $ 171 $ 151 $ 978 The table below reconciles net earnings per diluted share before special items to net earnings per diluted share: 2022 2023 2022 Q4 Q1 Q1 Net earnings per diluted share $ 0.02 $ 0.21 $ 1.03 Loss on debt extinguishment — — 0.28 Pension settlement charge 0.21 — — Restructuring, impairments and other charges 0.01 — — Net earnings per diluted share before special items $ 0.24 $ 0.21 $ 1.31 RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity. The table below reconciles Adjusted FAD to net cash from operations: 2022 2023 2022 (millions) Q4 Q1 Q1 Net cash from operations $ 167 $ 126 $ 957 Capital expenditures (223) (71) (70) Adjustments to FAD(1) — — (37) Adjusted FAD $ (56) $ 55 $ 850 (1) Adjustments to FAD include a $37 million product remediation insurance recovery received in first quarter 2022. Weyerhaeuser Company Exhibit 99.2 Q1.2023 Analyst Package Preliminary results (unaudited) Consolidated Statement of Operations Q4 Q1 in millions Dec 31, March 31, March 31, Net sales $ 1,823 $ 1,881 $ 3,112 Costs of sales 1,434 1,512 1,647 Gross margin 389 369 1,465 Selling expenses 23 22 23 General and administrative expenses 104 101 92 Other operating costs, net 30 10 6 Operating income 232 236 1,344 Non-operating pension and other post-employment benefit costs (216) (9) (15) Interest income and other 16 12 (1) Interest expense, net of capitalized interest (66) (66) (72) Loss on debt extinguishment — — (276) (Loss) earnings before income taxes (34) 173 980 Income taxes 45 (22) (209) Net earnings $ 11 $ 151 $ 771 Per Share Information Q4 Q1 Dec 31, March 31, March 31, Earnings per share Basic $ 0.02 $ 0.21 $ 1.03 Diluted $ 0.02 $ 0.21 $ 1.03 Dividends paid per common share $ 0.18 $ 1.09 $ 1.63 Weighted average shares outstanding (in thousands): Basic 735,715 733,163 747,507 Diluted 736,640 733,546 748,823 Common shares outstanding at end of period (in thousands) 732,794 732,507 745,442 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA) Q4 Q1 in millions Dec 31, March 31, March 31, Net earnings $ 11 $ 151 $ 771 Non-operating pension and other post-employment benefit costs 216 9 15 Interest income and other (16) (12) 1 Interest expense, net of capitalized interest 66 66 72 Loss on debt extinguishment — — 276 Income taxes (45) 22 209 Operating income 232 236 1,344 Depreciation, depletion and amortization 120 126 122 Basis of real estate sold 7 33 31 Special items included in operating income 10 — — Adjusted EBITDA(1) $ 369 $ 395 $ 1,497 (1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. Weyerhaeuser Company Total Company Statistics Q1.2023 Analyst Package Preliminary results (unaudited) Special Items Included in Net Earnings (Income Tax Affected) Q4 Q1 in millions Dec 31, March 31, March 31, Net earnings $ 11 $ 151 $ 771 Loss on debt extinguishment(1) — — 207 Pension settlement charge 152 — — Restructuring, impairments and other charges 8 — — Net earnings before special items(2) $ 171 $ 151 $ 978 Q4 Q1 Dec 31, March 31, March 31, Net earnings per diluted share $ 0.02 $ 0.21 $ 1.03 Loss on debt extinguishment(1) — — 0.28 Pension settlement charge 0.21 — — Restructuring, impairments and other charges 0.01 — — Net earnings per diluted share before special items(2) $ 0.24 $ 0.21 $ 1.31 (1) We recorded a total pretax loss on debt extinguishment of $276 million ($207 million after-tax) in first quarter 2022. (2) Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. Selected Total Company Items Q4 Q1 in millions Dec 31, March 31, March 31, Pension and post-employment costs: Pension and post-employment service costs $ 9 $ 6 $ 10 Non-operating pension and other post-employment benefit costs 216 9 15 Total company pension and post-employment costs $ 225 $ 15 $ 25 Weyerhaeuser Company Q1.2023 Analyst Package Preliminary results (unaudited) Condensed Consolidated Balance Sheet in millions December 31, March 31, March 31, ASSETS Current assets: Cash and cash equivalents $ 1,581 $ 797 $ 1,205 Receivables, net 357 440 745 Receivables for taxes 42 28 8 Inventories 550 586 611 Prepaid expenses and other current assets 216 202 206 Total current assets 2,746 2,053 2,775 Property and equipment, net 2,171 2,157 2,026 Construction in progress 222 222 203 Timber and timberlands at cost, less depletion 11,604 11,564 11,469 Minerals and mineral rights, less depletion 214 211 252 Deferred tax assets 8 8 15 Other assets 375 365 376 Total assets $ 17,340 $ 16,580 $ 17,116 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 982 $ 981 $ — Accounts payable 247 266 310 Accrued liabilities 511 403 674 Total current liabilities 1,740 1,650 984 Long-term debt, net 4,071 4,072 5,053 Deferred tax liabilities 96 101 66 Deferred pension and other post-employment benefits 344 346 432 Other liabilities 340 335 344 Total liabilities 6,591 6,504 6,879 Total equity 10,749 10,076 10,237 Total liabilities and equity $ 17,340 $ 16,580 $ 17,116 Weyerhaeuser Company Q1.2023 Analyst Package Preliminary results (unaudited) Consolidated Statement of Cash Flows Q4 Q1 in millions December 31, March 31, March 31, Cash flows from operations: Net earnings $ 11 $ 151 $ 771 Noncash charges (credits) to earnings: Depreciation, depletion and amortization 120 126 122 Basis of real estate sold 7 33 31 Deferred income taxes, net (47) 3 14 Pension and other post-employment benefits 225 15 25 Share-based compensation expense 8 8 8 Loss on debt extinguishment — — 276 Change in: Receivables, net 68 (83) (238) Receivables and payables for taxes (116) 14 110 Inventories (7) (36) (87) Prepaid expenses and other current assets (5) (9) (1) Accounts payable and accrued liabilities (88) (87) (62) Pension and post-employment benefit contributions and payments (5) (6) (4) Other (4) (3) (8) Net cash from operations $ 167 $ 126 $ 957 Cash flows from investing activities: Capital expenditures for property and equipment $ (208) $ (50) $ (50) Capital expenditures for timberlands reforestation (15) (21) (20) Acquisition of timberlands (9) — (18) Other 3 2 1 Net cash from investing activities $ (229) $ (69) $ (87) Cash flows from financing activities: Cash dividends on common shares $ (132) $ (799) $ (1,218) Net proceeds from issuance of long-term debt — — 881 Payments on long-term debt — — (1,203) Proceeds from exercise of stock options 1 2 12 Repurchases of common shares (141) (34) (118) Other (5) (10) (18) Net cash from financing activities $ (277) $ (841) $ (1,664) Net change in cash, cash equivalents and restricted cash $ (339) $ (784) $ (794) Cash, cash equivalents and restricted cash at beginning of period 1,920 1,581 1,999 Cash, cash equivalents and restricted cash at end of period $ 1,581 $ 797 $ 1,205 Cash paid during the period for: Interest, net of amounts capitalized $ 72 $ 57 $ 78 Income taxes, net of refunds $ 120 $ 6 $ 85 Weyerhaeuser Company Timberlands Segment Q1.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q4.2022 Q1.2023 Q1.2022 Sales to unaffiliated customers $ 437 $ 462 $ 465 Intersegment sales 111 142 161 Total net sales 548 604 626 Costs of sales 436 461 423 Gross margin 112 143 203 General and administrative expenses 25 25 24 Other operating costs (income), net 1 (2) (3) Operating income and Net contribution to earnings $ 86 $ 120 $ 182 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q4.2022 Q1.2023 Q1.2022 Operating income $ 86 $ 120 $ 182 Depreciation, depletion and amortization 64 68 65 Adjusted EBITDA(1) $ 150 $ 188 $ 247 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q4.2022 Q1.2023 Q1.2022 Total increase in working capital(2) $ (28) $ (24) $ (34) Cash spent for capital expenditures(3) $ (38) $ (26) $ (30) (2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined. (3) Does not include cash spent for the acquisition of timberlands. Segment Statistics(4) Q4.2022 Q1.2023 Q1.2022 Third Party Delivered logs: Net Sales West $ 213 $ 229 $ 259 (millions) South 165 168 154 North 16 17 15 Total delivered logs 394 414 428 Stumpage and pay-as-cut timber 16 16 9 Recreational and other lease revenue 17 18 17 Other revenue 10 14 11 Total $ 437 $ 462 $ 465 Delivered Logs West $ 141.88 $ 137.10 $ 161.29 Third Party Sales South $ 38.67 $ 38.23 $ 37.15 Realizations (per ton) North $ 80.57 $ 81.71 $ 72.79 Delivered Logs West 1,503 1,674 1,604 Third Party Sales South 4,252 4,386 4,135 Volumes (tons, thousands) North 202 204 210 Fee Harvest Volumes West 1,773 2,245 2,240 (tons, thousands) South 6,216 6,432 5,842 North 271 285 278 (4) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. Weyerhaeuser Company Real Estate, Energy & Natural Resources Segment Q1.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q4.2022 Q1.2023 Q1.2022 Net sales $ 55 $ 101 $ 128 Costs of sales 13 41 41 Gross margin 42 60 87 General and administrative expenses 8 7 6 Other operating costs, net 10 — — Operating income and Net contribution to earnings $ 24 $ 53 $ 81 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q4.2022 Q1.2023 Q1.2022 Operating income $ 24 $ 53 $ 81 Depreciation, depletion and amortization 5 3 4 Basis of real estate sold 7 33 31 Special items 10 — — Adjusted EBITDA(1) $ 46 $ 89 $ 116 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Segment Special Items Included In Net Contribution to Earnings (Pretax) in millions Q4.2022 Q1.2023 Q1.2022 Restructuring, impairments and other charges $ (10) $ — $ — Selected Segment Items in millions Q4.2022 Q1.2023 Q1.2022 Cash spent for capital expenditures $ — $ — $ — Segment Statistics Q4.2022 Q1.2023 Q1.2022 Net Sales Real Estate $ 18 $ 72 $ 97 (millions) Energy and Natural Resources 37 29 31 Total $ 55 $ 101 $ 128 Acres Sold Real Estate 2,745 20,753 24,126 Price per Acre Real Estate $ 5,550 $ 3,241 $ 3,785 Basis as a Percent of Real Estate 39 % 46 % 32 % Weyerhaeuser Company Wood Products Segment Q1.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q4.2022 Q1.2023 Q1.2022 Net sales $ 1,331 $ 1,318 $ 2,519 Costs of sales 1,116 1,159 1,276 Gross margin 215 159 1,243 Selling expenses 22 22 21 General and administrative expenses 36 36 35 Other operating costs, net 10 6 5 Operating income and Net contribution to earnings $ 147 $ 95 $ 1,182 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q4.2022 Q1.2023 Q1.2022 Operating income $ 147 $ 95 $ 1,182 Depreciation, depletion and amortization 50 53 51 Adjusted EBITDA(1) $ 197 $ 148 $ 1,233 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q4.2022 Q1.2023 Q1.2022 Total decrease (increase) in working capital(2) $ 20 $ (127) $ (371) Cash spent for capital expenditures $ (184) $ (43) $ (39) (2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment. Segment Statistics in millions, except for third party sales realizations Q4.2022 Q1.2023 Q1.2022 Structural Lumber Third party net sales $ 494 $ 515 $ 1,206 (volumes presented Third party sales realizations $ 495 $ 450 $ 1,041 in board feet) Third party sales volumes(3) 996 1,144 1,157 Production volumes 938 1,143 1,203 Oriented Strand Third party net sales $ 230 $ 208 $ 564 Board Third party sales realizations $ 335 $ 269 $ 787 (volumes presented Third party sales volumes(3) 686 773 717 in square feet 3/8") Production volumes 729 761 739 Engineered Solid Third party net sales $ 186 $ 169 $ 196 Section Third party sales realizations $ 3,743 $ 3,643 $ 3,433 (volumes presented Third party sales volumes(3) 5.0 4.7 5.7 in cubic feet) Production volumes 5.5 4.6 5.7 Engineered Third party net sales $ 102 $ 87 $ 137 I-joists Third party sales realizations $ 3,537 $ 3,171 $ 2,969 (volumes presented Third party sales volumes(3) 29 27 46 in lineal feet) Production volumes 31 25 44 Softwood Plywood Third party net sales $ 35 $ 41 $ 58 (volumes presented Third party sales realizations $ 543 $ 490 $ 783 in square feet 3/8") Third party sales volumes(3) 66 83 75 Production volumes 62 74 66 Medium Density Third party net sales $ 41 $ 38 $ 48 Fiberboard Third party sales realizations $ 1,310 $ 1,314 $ 1,082 (volumes presented Third party sales volumes(3) 31 29 44 in square feet 3/4") Production volumes 31 34 44 (3) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. Weyerhaeuser Company Unallocated Items Q1.2023 Analyst Package Preliminary results (unaudited) Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as Net Charge to Earnings in millions Q4.2022 Q1.2023 Q1.2022 Unallocated corporate function and variable compensation expense $ (36) $ (27) $ (31) Liability classified share-based compensation (1) — 1 Foreign exchange loss (2) (1) — Elimination of intersegment profit in inventory and LIFO 18 9 (59) Other, net (4) (13) (12) Operating loss (25) (32) (101) Non-operating pension and other post-employment benefit costs (216) (9) (15) Interest income and other 16 12 (1) Net charge to earnings $ (225) $ (29) $ (117) Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q4.2022 Q1.2023 Q1.2022 Operating loss $ (25) $ (32) $ (101) Depreciation, depletion and amortization 1 2 2 Adjusted EBITDA(1) $ (24) $ (30) $ (99) (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Unallocated Special Items Included in Net Charge to Earnings (Pretax) in millions Q4.2022 Q1.2023 Q1.2022 Pension settlement charge $ (205) $ — $ — Special items included in net charge to earnings $ (205) $ — $ — Unallocated Selected Items in millions Q4.2022 Q1.2023 Q1.2022 Cash spent for capital expenditures $ (1) $ (2) $ (1) For more information contact: Analysts – Andy Taylor (206) 539-3907 SOURCE Weyerhaeuser Company
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Media – Nancy Thompson (919) 861-0342
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