SEATTLE
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July 27, 2023
(press release)
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Weyerhaeuser Company (NYSE: WY) today reported second quarter net earnings of $230 million, or 31 cents per diluted share, on net sales of $2.0 billion. This compares with net earnings of $788 million, or $1.06 per diluted share, on net sales of $3.0 billion for the same period last year and net earnings of $151 million for first quarter 2023. Excluding an after-tax charge of $8 million for special items, the company reported second quarter net earnings of $238 million, or 32 cents per diluted share. There were no special items in second quarter 2022 or first quarter 2023. Adjusted EBITDA for second quarter 2023 was $469 million compared with $1.2 billion for the same period last year and $395 million for first quarter 2023. In July, Weyerhaeuser acquired 22 thousand acres of timberlands in Mississippi for approximately $60 million. These highly productive timberlands are strategically located to deliver immediate synergies with existing Weyerhaeuser operations and offer incremental real estate and natural climate solutions opportunities. "In the second quarter, our teams delivered solid results across each of our businesses," said Devin W. Stockfish, president and chief executive officer. "In addition, we continue to make meaningful progress towards our multi-year growth targets with the recent acquisition of high-quality timberlands in Mississippi. Looking forward, we are encouraged by recent improvements in the housing market, and maintain a favorable longer-term outlook for the demand fundamentals that will drive growth for our businesses. Our financial position is exceptionally strong, and we remain focused on delivering operational excellence across our unmatched portfolio of assets and enhancing shareholder value through disciplined capital allocation." WEYERHAEUSER FINANCIAL HIGHLIGHTS 2023 2023 2022 (millions, except per share data) Q1 Q2 Q2 Net sales $ 1,881 $ 1,997 $ 2,973 Net earnings $ 151 $ 230 $ 788 Net earnings per diluted share $ 0.21 $ 0.31 $ 1.06 Weighted average shares outstanding, diluted 734 732 746 Net earnings before special items(1)(2) $ 151 $ 238 $ 788 Net earnings per diluted share before special items(1) $ 0.21 $ 0.32 $ 1.06 Adjusted EBITDA(1) $ 395 $ 469 $ 1,205 Net cash from operations $ 126 $ 496 $ 1,146 Adjusted FAD(3) $ 55 $ 415 $ 1,065 (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) Second quarter 2023 after-tax special items include an $8 million noncash environmental remediation charge. 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 2023 2023 (millions) Q1 Q2 Change Net sales $ 604 $ 567 $ (37) Net contribution to pretax earnings $ 120 $ 104 $ (16) Adjusted EBITDA $ 188 $ 172 $ (16) Q2 2023 Performance – In the West, fee harvest volumes were slightly higher than the first quarter. Export sales realizations were lower, while domestic sales realizations were comparable. Sales volumes to China were significantly lower and domestic sales volumes were significantly higher as the company intentionally flexed logs to domestic customers to capture higher margin opportunities. Per unit log and haul costs were lower. In the South, fee harvest volumes were comparable, while sales realizations and per unit log and haul costs were slightly lower. Forestry and road costs in the West and South were seasonally higher. Q3 2023 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be approximately $25 million lower than the second quarter. In the West, the company expects fee harvest volumes and sales realizations to be moderately lower, partially offset by improved per unit log and haul costs. In the South, sales realizations are expected to be slightly lower, while fee harvest volumes and per unit log and haul costs 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 2023 2023 (millions) Q1 Q2 Change Net sales $ 101 $ 80 $ (21) Net contribution to pretax earnings $ 53 $ 52 $ (1) Adjusted EBITDA $ 89 $ 70 $ (19) Q2 2023 Performance – Earnings and Adjusted EBITDA decreased from the first quarter due to lower real estate sales. The number of acres sold decreased significantly due to the timing of transactions. The average price per acre was significantly higher and the average basis as a percentage of sales was significantly lower due to the mix of properties sold. Q3 2023 Outlook – Weyerhaeuser anticipates third quarter earnings will be slightly higher than the second quarter and Adjusted EBITDA will be approximately $20 million higher than the second quarter due to the timing and mix of real estate sales. The company still expects full year 2023 Adjusted EBITDA of approximately $300 million and now expects basis as a percentage of real estate sales to be 35 to 40 percent for the full year. WOOD PRODUCTS FINANCIAL HIGHLIGHTS 2023 2023 (millions) Q1 Q2 Change Net sales $ 1,318 $ 1,500 $ 182 Net contribution to pretax earnings $ 95 $ 218 $ 123 Adjusted EBITDA $ 148 $ 270 $ 122 Q2 2023 Performance – Sales realizations for lumber and oriented strand board increased 6 percent and 11 percent, respectively, compared with first quarter averages. Sales volumes for lumber were moderately higher and log costs were slightly lower, primarily for western logs. Unit manufacturing costs were slightly higher. For oriented strand board, sales and production volumes were moderately lower and unit manufacturing costs were moderately higher due to planned downtime for annual maintenance as well as a temporary period of unplanned downtime resulting from wildfire activity near the company's facility in Alberta. Fiber costs were slightly lower. Sales and production volumes were significantly higher for most engineered wood products, driven by improving demand from the homebuilding segment. Unit manufacturing costs were significantly lower for solid section and I-joist products, and raw material costs were lower for all products. Sales realizations were lower for most engineered wood products. Distribution results were significantly higher due to strong sales volumes for engineered wood products. Q3 2023 Outlook – Weyerhaeuser anticipates third quarter earnings and Adjusted EBITDA will be significantly higher than the second quarter due to higher average sales realizations for lumber and oriented strand board. Excluding the effect of those items, the company expects third quarter financial results will be slightly lower than the second quarter. For lumber, the company expects moderately higher sales volumes, moderately lower log costs and slightly lower unit manufacturing costs. For oriented strand board, the company anticipates comparable sales volumes and fiber costs and slightly higher unit manufacturing costs. For engineered wood products, the company expects slightly higher sales volumes, slightly lower sales realizations and higher raw material costs, primarily for oriented strand board webstock. 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 July 28, 2023 to discuss second quarter results. To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on July 28, 2023. To join the conference call from within North America, dial 1-877-407-0792 (access code: 13734908) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13734908). Replays will be available for two weeks at 1-844-512-2921 (access code: 13734908) from within North America, and at 1-412-317-6671 (access code: 13734908) 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; and basis as a percentage of real estate sales in our Real Estate, Energy and Natural Resources 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 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-employment benefit costs — — — 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 June 30, 2023: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 230 Interest expense, net of capitalized interest 70 Income taxes 25 Net contribution (charge) to earnings $ 104 $ 52 $ 218 $ (49) $ 325 Non-operating pension and other post-employment benefit costs — — — 12 12 Interest income and other — — — (18) (18) Operating income (loss) 104 52 218 (55) 319 Depreciation, depletion and amortization 68 5 52 1 126 Basis of real estate sold — 13 — — 13 Special items included in operating income (loss)(1) — — — 11 11 Adjusted EBITDA $ 172 $ 70 $ 270 $ (43) $ 469 (1) Operating income (loss) for Unallocated Items includes a pretax special item consisting of an $11 million noncash environmental remediation charge. The table below reconciles Adjusted EBITDA for the quarter ended June 30, 2022: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 788 Interest expense, net of capitalized interest 65 Income taxes 184 Net contribution (charge) to earnings $ 153 $ 65 $ 863 $ (44) $ 1,037 Non-operating pension and other post-employment benefit costs — — — 11 11 Interest income and other — — — (1) (1) Operating income (loss) 153 65 863 (34) 1,047 Depreciation, depletion and amortization 66 3 49 1 119 Basis of real estate sold — 39 — — 39 Adjusted EBITDA $ 219 $ 107 $ 912 $ (33) $ 1,205 The table below reconciles Adjusted EBITDA for the year-to-date period ended June 30, 2023: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 381 Interest expense, net of capitalized interest 136 Income taxes 47 Net contribution (charge) to earnings $ 224 $ 105 $ 313 $ (78) $ 564 Non-operating pension and other post-employment benefit costs — — — 21 21 Interest income and other — — — (30) (30) Operating income (loss) 224 105 313 (87) 555 Depreciation, depletion and amortization 136 8 105 3 252 Basis of real estate sold — 46 — — 46 Special items included in operating income (loss)(1) — — — 11 11 Adjusted EBITDA $ 360 $ 159 $ 418 $ (73) $ 864 (1) Operating income (loss) for Unallocated Items includes a pretax special item consisting of an $11 million noncash environmental remediation charge. 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: 2023 2023 2022 (millions) Q1 Q2 Q2 Net earnings $ 151 $ 230 $ 788 Environmental remediation charge — 8 — Net earnings before special items $ 151 $ 238 $ 788 The table below reconciles net earnings per diluted share before special items to net earnings per diluted share: 2023 2023 2022 Q1 Q2 Q2 Net earnings per diluted share $ 0.21 $ 0.31 $ 1.06 Environmental remediation charge — 0.01 — Net earnings per diluted share before special items $ 0.21 $ 0.32 $ 1.06 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: 2023 2023 2022 2023 (millions) Q1 Q2 Q2 Q2 YTD Net cash from operations $ 126 $ 496 $ 1,146 $ 622 Capital expenditures (71) (81) (81) (152) Adjusted FAD $ 55 $ 415 $ 1,065 $ 470 Weyerhaeuser Company Exhibit 99.2 Q2.2023 Analyst Package Preliminary results (unaudited) Consolidated Statement of Operations Q1 Q2 Year-to-Date in millions March 31, June 30, June 30, June 30, June 30, Net sales $ 1,881 $ 1,997 $ 2,973 $ 3,878 $ 6,085 Costs of sales 1,512 1,528 1,789 3,040 3,436 Gross margin 369 469 1,184 838 2,649 Selling expenses 22 22 23 44 46 General and administrative expenses 101 108 102 209 194 Other operating costs, net 10 20 12 30 18 Operating income 236 319 1,047 555 2,391 Non-operating pension and other post-employment benefit costs (9) (12) (11) (21) (26) Interest income and other 12 18 1 30 — Interest expense, net of capitalized interest (66) (70) (65) (136) (137) Loss on debt extinguishment — — — — (276) Earnings before income taxes 173 255 972 428 1,952 Income taxes (22) (25) (184) (47) (393) Net earnings $ 151 $ 230 $ 788 $ 381 $ 1,559 Per Share Information Q1 Q2 Year-to-Date March 31, June 30, June 30, June 30, June 30, Earnings per share, basic and diluted $ 0.21 $ 0.31 $ 1.06 $ 0.52 $ 2.09 Dividends paid per common share $ 1.09 $ 0.19 $ 0.18 $ 1.28 $ 1.81 Weighted average shares outstanding (in thousands): Basic 733,163 732,021 744,542 732,599 746,017 Diluted 733,546 732,362 745,582 732,961 747,194 Common shares outstanding at end of period (in thousands) 732,507 730,850 741,738 730,850 741,738 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA) Q1 Q2 Year-to-Date in millions March 31, June 30, June 30, June 30, June 30, Net earnings $ 151 $ 230 $ 788 $ 381 $ 1,559 Non-operating pension and other post-employment benefit costs 9 12 11 21 26 Interest income and other (12) (18) (1) (30) — Interest expense, net of capitalized interest 66 70 65 136 137 Loss on debt extinguishment — — — — 276 Income taxes 22 25 184 47 393 Operating income 236 319 1,047 555 2,391 Depreciation, depletion and amortization 126 126 119 252 241 Basis of real estate sold 33 13 39 46 70 Special items included in operating income — 11 — 11 — Adjusted EBITDA(1) $ 395 $ 469 $ 1,205 $ 864 $ 2,702 (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 Q2.2023 Analyst Package Preliminary results (unaudited) Special Items Included in Net Earnings (Income Tax Affected) Q1 Q2 Year-to-Date in millions March 31, June 30, June 30, June 30, June 30, Net earnings $ 151 $ 230 $ 788 $ 381 $ 1,559 Loss on debt extinguishment(1) — — — — 207 Environmental remediation charge — 8 — 8 — Net earnings before special items(2) $ 151 $ 238 $ 788 $ 389 $ 1,766 Q1 Q2 Year-to-Date March 31, June 30, June 30, June 30, June 30, Net earnings per diluted share $ 0.21 $ 0.31 $ 1.06 $ 0.52 $ 2.09 Loss on debt extinguishment(1) — — — — 0.28 Environmental remediation charge — 0.01 — 0.01 — Net earnings per diluted share before special items(2) $ 0.21 $ 0.32 $ 1.06 $ 0.53 $ 2.37 (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 Q1 Q2 Year-to-Date in millions March 31, June 30, June 30, June 30, June 30, Pension and post-employment costs: Pension and post-employment service costs $ 6 $ 5 $ 8 $ 11 $ 18 Non-operating pension and other post-employment benefit costs 9 12 11 21 26 Total company pension and post-employment costs $ 15 $ 17 $ 19 $ 32 $ 44 Weyerhaeuser Company Q2.2023 Analyst Package Preliminary results (unaudited) Condensed Consolidated Balance Sheet in millions March 31, June 30, December 31, ASSETS Current assets: Cash and cash equivalents $ 797 $ 1,095 $ 1,581 Short-term investments — 665 — Receivables, net 440 462 357 Receivables for taxes 28 18 42 Inventories 586 539 550 Prepaid expenses and other current assets 202 188 216 Total current assets 2,053 2,967 2,746 Property and equipment, net 2,157 2,133 2,171 Construction in progress 222 260 222 Timber and timberlands at cost, less depletion 11,564 11,512 11,604 Minerals and mineral rights, less depletion 211 207 214 Deferred tax assets 8 8 8 Other assets 365 383 375 Total assets $ 16,580 $ 17,470 $ 17,340 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 981 $ 980 $ 982 Accounts payable 266 254 247 Accrued liabilities 403 473 511 Total current liabilities 1,650 1,707 1,740 Long-term debt, net 4,072 4,817 4,071 Deferred tax liabilities 101 105 96 Deferred pension and other post-employment benefits 346 348 344 Other liabilities 335 352 340 Total liabilities 6,504 7,329 6,591 Total equity 10,076 10,141 10,749 Total liabilities and equity $ 16,580 $ 17,470 $ 17,340 Weyerhaeuser Company Q2.2023 Analyst Package Preliminary results (unaudited) Consolidated Statement of Cash Flows Q1 Q2 Year-to-Date in millions March 31, June 30, June 30, June 30, June 30, Cash flows from operations: Net earnings $ 151 $ 230 $ 788 $ 381 $ 1,559 Noncash charges (credits) to earnings: Depreciation, depletion and amortization 126 126 119 252 241 Basis of real estate sold 33 13 39 46 70 Pension and other post-employment benefits 15 17 19 32 44 Share-based compensation expense 8 9 9 17 17 Loss on debt extinguishment — — — — 276 Other 3 (1) — 2 14 Change in: Receivables, net (83) (22) 198 (105) (40) Receivables and payables for taxes 14 13 (83) 27 27 Inventories (36) 50 29 14 (58) Prepaid expenses and other current assets (9) 17 (2) 8 (3) Accounts payable and accrued liabilities (87) 57 47 (30) (15) Pension and post-employment benefit contributions and payments (6) (5) (10) (11) (14) Other (3) (8) (7) (11) (15) Net cash from operations $ 126 $ 496 $ 1,146 $ 622 $ 2,103 Cash flows from investing activities: Capital expenditures for property and equipment $ (50) $ (69) $ (71) $ (119) $ (121) Capital expenditures for timberlands reforestation (21) (12) (10) (33) (30) Acquisition of timberlands — (2) (265) (2) (283) Purchase of short-term investments — (664) — (664) — Other 2 (2) — — 1 Net cash from investing activities $ (69) $ (749) $ (346) $ (818) $ (433) Cash flows from financing activities: Cash dividends on common shares $ (799) $ (139) $ (134) $ (938) $ (1,352) Net proceeds from issuance of long-term debt — 743 — 743 881 Payments on long-term debt — — — — (1,203) Repurchases of common shares (34) (51) (141) (85) (259) Other (8) (2) 1 (10) (5) Net cash from financing activities $ (841) $ 551 $ (274) $ (290) $ (1,938) Net change in cash, cash equivalents and restricted cash $ (784) $ 298 $ 526 $ (486) $ (268) Cash, cash equivalents and restricted cash at beginning of period 1,581 797 1,205 1,581 1,999 Cash, cash equivalents and restricted cash at end of period $ 797 $ 1,095 $ 1,731 $ 1,095 $ 1,731 Cash paid during the period for: Interest, net of amounts capitalized $ 57 $ 70 $ 71 $ 127 $ 149 Income taxes, net of refunds $ 6 $ 12 $ 269 $ 18 $ 354 Weyerhaeuser Company Timberlands Segment Q2.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Sales to unaffiliated customers $ 462 $ 417 $ 515 $ 879 $ 980 Intersegment sales 142 150 156 292 317 Total net sales 604 567 671 1,171 1,297 Costs of sales 461 439 495 900 918 Gross margin 143 128 176 271 379 General and administrative expenses 25 24 24 49 48 Other operating income, net (2) — (1) (2) (4) Operating income and Net contribution to earnings $ 120 $ 104 $ 153 $ 224 $ 335 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Operating income $ 120 $ 104 $ 153 $ 224 $ 335 Depreciation, depletion and amortization 68 68 66 136 131 Adjusted EBITDA(1) $ 188 $ 172 $ 219 $ 360 $ 466 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Total (increase) decrease in working capital(2) $ (24) $ 51 $ 57 $ 27 $ 23 Cash spent for capital expenditures(3) $ (26) $ (22) $ (23) $ (48) $ (53) (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) Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Third Party Delivered logs: Net Sales West $ 229 $ 206 $ 308 $ 435 $ 567 (millions) South 168 162 160 330 314 North 17 7 10 24 25 Total delivered logs 414 375 478 789 906 Stumpage and pay-as-cut timber 16 15 11 31 20 Recreational and other lease revenue 18 17 16 35 33 Other revenue 14 10 10 24 21 Total $ 462 $ 417 $ 515 $ 879 $ 980 Delivered Logs West $ 137.10 $ 123.45 $ 173.35 $ 130.30 $ 167.63 Third Party Sales South $ 38.23 $ 37.49 $ 38.47 $ 37.86 $ 37.81 Realizations (per ton) North $ 81.71 $ 78.69 $ 83.93 $ 80.73 $ 76.79 Delivered Logs West 1,674 1,661 1,778 3,335 3,382 Third Party Sales South 4,386 4,341 4,167 8,727 8,302 Volumes (tons, thousands) North 204 98 118 302 328 Fee Harvest Volumes West 2,245 2,292 2,085 4,537 4,325 (tons, thousands) South 6,432 6,430 6,159 12,862 12,001 North 285 175 180 460 458 (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 Q2.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Net sales $ 101 $ 80 $ 117 $ 181 $ 245 Costs of sales 41 21 45 62 86 Gross margin 60 59 72 119 159 General and administrative expenses 7 7 7 14 13 Operating income and Net contribution to earnings $ 53 $ 52 $ 65 $ 105 $ 146 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Operating income $ 53 $ 52 $ 65 $ 105 $ 146 Depreciation, depletion and amortization 3 5 3 8 7 Basis of real estate sold 33 13 39 46 70 Adjusted EBITDA(1) $ 89 $ 70 $ 107 $ 159 $ 223 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Cash spent for capital expenditures $ — $ — $ — $ — $ — Segment Statistics Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Net Sales Real Estate $ 72 $ 47 $ 90 $ 119 $ 187 (millions) Energy and Natural Resources 29 33 27 62 58 Total $ 101 $ 80 $ 117 $ 181 $ 245 Acres Sold Real Estate 20,753 9,281 26,906 30,034 51,032 Price per Acre Real Estate $ 3,241 $ 4,790 $ 3,215 $ 3,720 $ 3,484 Basis as a Percent of Real Estate 46 % 28 % 43 % 39 % 37 % Weyerhaeuser Company Wood Products Segment Q2.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Net sales $ 1,318 $ 1,500 $ 2,341 $ 2,818 $ 4,860 Costs of sales 1,159 1,218 1,414 2,377 2,690 Gross margin 159 282 927 441 2,170 Selling expenses 22 21 21 43 42 General and administrative expenses 36 37 35 73 70 Other operating costs, net 6 6 8 12 13 Operating income and Net contribution to earnings $ 95 $ 218 $ 863 $ 313 $ 2,045 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Operating income $ 95 $ 218 $ 863 $ 313 $ 2,045 Depreciation, depletion and amortization 53 52 49 105 100 Adjusted EBITDA(1) $ 148 $ 270 $ 912 $ 418 $ 2,145 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Total (increase) decrease in working capital(2) $ (127) $ 40 $ 205 $ (87) $ (166) Cash spent for capital expenditures $ (43) $ (56) $ (56) $ (99) $ (95) (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 Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Structural Lumber Third party net sales $ 515 $ 573 $ 998 $ 1,088 $ 2,204 (volumes presented Third party sales realizations $ 450 $ 479 $ 776 $ 465 $ 901 in board feet) Third party sales volumes(3) 1,144 1,196 1,289 2,340 2,446 Production volumes 1,143 1,164 1,232 2,307 2,435 Oriented Strand Third party net sales $ 208 $ 215 $ 497 $ 423 $ 1,061 Board Third party sales realizations $ 269 $ 299 $ 676 $ 283 $ 731 (volumes presented Third party sales volumes(3) 773 720 735 1,493 1,452 in square feet 3/8") Production volumes 761 727 758 1,488 1,497 Engineered Solid Third party net sales $ 169 $ 215 $ 247 $ 384 $ 443 Section Third party sales realizations $ 3,643 $ 3,571 $ 3,863 $ 3,602 $ 3,660 (volumes presented Third party sales volumes(3) 4.7 6.0 6.4 10.7 12.1 in cubic feet) Production volumes 4.6 5.9 6.4 10.5 12.1 Engineered Third party net sales $ 87 $ 126 $ 168 $ 213 $ 305 I-joists Third party sales realizations $ 3,171 $ 2,901 $ 3,432 $ 3,006 $ 3,207 (volumes presented Third party sales volumes(3) 27 44 49 71 95 in lineal feet) Production volumes 25 38 50 63 94 Softwood Plywood Third party net sales $ 41 $ 44 $ 53 $ 85 $ 111 (volumes presented Third party sales realizations $ 490 $ 474 $ 746 $ 481 $ 765 in square feet 3/8") Third party sales volumes(3) 83 94 70 177 145 Production volumes 74 84 67 158 133 Medium Density Third party net sales $ 38 $ 42 $ 53 $ 80 $ 101 Fiberboard Third party sales realizations $ 1,314 $ 1,342 $ 1,174 $ 1,329 $ 1,129 (volumes presented Third party sales volumes(3) 29 31 45 60 89 in square feet 3/4") Production volumes 34 33 48 67 92 (3) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. Weyerhaeuser Company Unallocated Items Q2.2023 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 Net Charge to Earnings in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Unallocated corporate function and variable compensation expense $ (27) $ (32) $ (36) $ (59) $ (67) Liability classified share-based compensation — (2) 2 (2) 3 Foreign exchange (loss) gain (1) 2 3 1 3 Elimination of intersegment profit in inventory and LIFO 9 3 18 12 (41) Other, net (13) (26) (21) (39) (33) Operating loss (32) (55) (34) (87) (135) Non-operating pension and other post-employment benefit costs (9) (12) (11) (21) (26) Interest income and other 12 18 1 30 — Net charge to earnings $ (29) $ (49) $ (44) $ (78) $ (161) Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Operating loss $ (32) $ (55) $ (34) $ (87) $ (135) Depreciation, depletion and amortization 2 1 1 3 3 Special items — 11 — 11 — Adjusted EBITDA(1) $ (30) $ (43) $ (33) $ (73) $ (132) (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 Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Environmental remediation charge $ — $ 11 $ — $ 11 $ — Special items included in operating loss and net charge to $ — $ 11 $ — $ 11 $ — Unallocated Selected Items in millions Q1.2023 Q2.2023 Q2.2022 YTD.2023 YTD.2022 Cash spent for capital expenditures $ (2) $ (3) $ (2) $ (5) $ (3) For more information contact: Analysts – Andy Taylor (206) 539-3907 SOURCE Weyerhaeuser Company
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such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign
exchange transaction gains and losses and interest income and other.
earnings
Media – Nancy Thompson (919) 861-0342
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