SEATTLE
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October 26, 2023
(press release)
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Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $239 million, or 33 cents per diluted share, on net sales of $2.0 billion. This compares with net earnings of $310 million, or 42 cents per diluted share, on net sales of $2.3 billion for the same period last year and net earnings of $230 million for second quarter 2023. There were no special items in third quarter 2023 or the same period last year. Net earnings before special items were $238 million for second quarter 2023. Adjusted EBITDA for third quarter 2023 was $509 million compared with $583 million for the same period last year and $469 million for second quarter 2023. "In the third quarter, we delivered solid results across our businesses," said Devin W. Stockfish, president and chief executive officer. "In addition, we achieved an important milestone in our Natural Climate Solutions growth program with the approval of our first forest carbon credits in Maine. Looking ahead, although near-term market conditions have moderated, we remain constructive on the longer-term demand fundamentals that support our businesses. Our balance sheet is exceptionally strong, and we remain focused on maintaining our industry-leading operating performance, serving our customers and delivering superior long-term value and returns for our shareholders." WEYERHAEUSER FINANCIAL HIGHLIGHTS 2023 2023 2022 (millions, except per share data) Q2 Q3 Q3 Net sales $ 1,997 $ 2,022 $ 2,276 Net earnings $ 230 $ 239 $ 310 Net earnings per diluted share $ 0.31 $ 0.33 $ 0.42 Weighted average shares outstanding, diluted 732 732 741 Net earnings before special items(1)(2) $ 238 $ 239 $ 310 Net earnings per diluted share before special items(1) $ 0.32 $ 0.33 $ 0.42 Adjusted EBITDA(1) $ 469 $ 509 $ 583 Net cash from operations $ 496 $ 523 $ 562 Adjusted FAD(3) $ 415 $ 424 $ 468 (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 2023 2023 (millions) Q2 Q3 Change Net sales $ 567 $ 521 $ (46) Net contribution to pretax earnings $ 104 $ 78 $ (26) Adjusted EBITDA $ 172 $ 143 $ (29) Q3 2023 Performance – In the West, fee harvest and domestic sales volumes were moderately lower than the second quarter as a result of higher elevation harvest operations and temporary harvest restrictions due to wildfire risk. Export sales volumes were significantly lower, which was partially driven by fewer export shipments to Japan. Sales realizations were slightly lower, partially driven by a reduction in export volumes, while domestic sales realizations were comparable. Per unit log and haul costs were lower. In the South, fee harvest volumes were moderately lower, partly due to wet conditions early in the quarter. Sales realizations were slightly lower, and per unit log and haul costs were comparable. Forestry and road costs in the West and South were seasonally higher. Q4 2023 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be comparable to the third quarter. In the West, the company expects fee harvest volumes, sales realizations and forestry and road costs to be comparable. Per unit log and haul costs are expected to be moderately higher. In the South, the company expects fee harvest volumes, sales realizations and per unit log and haul costs to be comparable to the third quarter. Forestry and road costs are expected to be moderately lower. REAL ESTATE, ENERGY & NATURAL RESOURCES FINANCIAL HIGHLIGHTS 2023 2023 (millions) Q2 Q3 Change Net sales $ 80 $ 105 $ 25 Net contribution to pretax earnings $ 52 $ 56 $ 4 Adjusted EBITDA $ 70 $ 94 $ 24 Q3 2023 Performance – Earnings and Adjusted EBITDA increased from the second quarter due to higher real estate sales. The number of acres sold increased significantly due to the timing of transactions. The average price per acre was significantly lower and the average basis as a percentage of sales was significantly higher due to the mix of properties sold. Q4 2023 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be lower than the third quarter due to the timing and mix of real estate sales. The company now expects full year 2023 Adjusted EBITDA to be approximately $310 million, a $10 million increase from prior outlook, and continues to expect 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) Q2 Q3 Change Net sales $ 1,500 $ 1,537 $ 37 Net contribution to pretax earnings $ 218 $ 277 $ 59 Adjusted EBITDA $ 270 $ 328 $ 58 Q3 2023 Performance – Sales realizations for lumber were comparable to the second quarter average, while sales realizations for oriented strand board increased 39 percent. Sales volumes for lumber were slightly lower due to reduced production at several mills, partially driven by temporary operational disruptions. Unit manufacturing costs were comparable and log costs were moderately lower. For oriented strand board, sales volumes were moderately lower and unit manufacturing costs were slightly higher due to planned downtime for annual maintenance. Sales realizations were slightly lower for most engineered wood products, while sales volumes were slightly higher, primarily for solid section products. Unit manufacturing costs were slightly higher and raw material costs were higher, primarily for oriented strand board webstock. Q4 2023 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be moderately lower than the third quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects moderately higher sales volumes, comparable log costs, and slightly lower unit manufacturing costs. For oriented strand board, the company anticipates moderately higher sales volumes, slightly higher fiber costs, and slightly lower unit manufacturing costs. For engineered wood products, the company expects lower sales realizations, slightly higher raw material costs, and slightly lower sales volumes, primarily for solid section products. For distribution, the company anticipates lower results compared to the third quarter, primarily driven by a decrease in commodity 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 October 27, 2023 to discuss third quarter results. To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 27, 2023. To join the conference call from within North America, dial 1-877-407-0792 (access code: 13734909) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13734909). Replays will be available for two weeks at 1-844-512-2921 (access code: 13734909) from within North America, and at 1-412-317-6671 (access code: 13734909) 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: long-term demand drivers and fundamentals and future operating performance and delivery of long-term shareholder value and returns; 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 costs 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; sales volumes, sales realizations and raw material costs for our engineered wood products business; commodity realizations for our distribution 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," "maintain," "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 June 30, 2023: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 230 Interest expense, net of capitalized 70 Income taxes 25 Net contribution (charge) to earnings $ 104 $ 52 $ 218 $ (49) $ 325 Non-operating pension and other post- — — — 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 — — — 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 September 30, 2023: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 239 Interest expense, net of capitalized 72 Income taxes 54 Net contribution (charge) to earnings $ 78 $ 56 $ 277 $ (46) $ 365 Non-operating pension and other post- — — — 12 12 Interest income and other — — — (24) (24) Operating income (loss) 78 56 277 (58) 353 Depreciation, depletion and amortization 65 4 51 2 122 Basis of real estate sold — 34 — — 34 Adjusted EBITDA $ 143 $ 94 $ 328 $ (56) $ 509 The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2022: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 310 Interest expense, net of capitalized 67 Income taxes 77 Net contribution (charge) to earnings $ 107 $ 48 $ 344 $ (45) $ 454 Non-operating pension and other post- — — — 12 12 Interest income and other — — — (9) (9) Operating income (loss) 107 48 344 (42) $ 457 Depreciation, depletion and amortization 61 5 51 2 119 Basis of real estate sold — 7 — — 7 Adjusted EBITDA $ 168 $ 60 $ 395 $ (40) $ 583 The table below reconciles Adjusted EBITDA for the year-to-date period ended September 30, 2023: (millions) Timberlands Real Estate Wood Unallocated Total Adjusted EBITDA by Segment: Net earnings $ 620 Interest expense, net of capitalized 208 Income taxes 101 Net contribution (charge) to earnings $ 302 $ 161 $ 590 $ (124) $ 929 Non-operating pension and other post- — — — 33 33 Interest income and other — — — (54) (54) Operating income (loss) 302 161 590 (145) 908 Depreciation, depletion and amortization 201 12 156 5 374 Basis of real estate sold — 80 — — 80 Special items included in operating — — — 11 11 Adjusted EBITDA $ 503 $ 253 $ 746 $ (129) $ 1,373 (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) Q2 Q3 Q3 Net earnings $ 230 $ 239 $ 310 Environmental remediation charge 8 — — Net earnings before special items $ 238 $ 239 $ 310 The table below reconciles net earnings per diluted share before special items to net earnings per diluted share: 2023 2023 2022 Q2 Q3 Q3 Net earnings per diluted share $ 0.31 $ 0.33 $ 0.42 Environmental remediation charge 0.01 — — Net earnings per diluted share before special items $ 0.32 $ 0.33 $ 0.42 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) Q2 Q3 Q3 Q3 YTD Net cash from operations $ 496 $ 523 $ 562 $ 1,145 Capital expenditures (81) (99) (94) (251) Adjusted FAD $ 415 $ 424 $ 468 $ 894 Weyerhaeuser Company Exhibit 99.2 Q3.2023 Analyst Package Preliminary results (unaudited) Consolidated Statement of Operations Q1 Q2 Q3 Year-to-Date in millions March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30, Net sales $ 1,881 $ 1,997 $ 2,022 $ 2,276 $ 5,900 $ 8,361 Costs of sales 1,512 1,528 1,520 1,694 4,560 5,130 Gross margin 369 469 502 582 1,340 3,231 Selling expenses 22 22 22 24 66 70 General and administrative expenses 101 108 107 100 316 294 Other operating costs, net 10 20 20 1 50 19 Operating income 236 319 353 457 908 2,848 Non-operating pension and other post-employment benefit costs (9) (12) (12) (12) (33) (38) Interest income and other 12 18 24 9 54 9 Interest expense, net of capitalized interest (66) (70) (72) (67) (208) (204) Loss on debt extinguishment — — — — — (276) Earnings before income taxes 173 255 293 387 721 2,339 Income taxes (22) (25) (54) (77) (101) (470) Net earnings $ 151 $ 230 $ 239 $ 310 $ 620 $ 1,869 Per Share Information Q1 Q2 Q3 Year-to-Date March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30, Earnings per share, basic and diluted $ 0.21 $ 0.31 $ 0.33 $ 0.42 $ 0.85 $ 2.51 Dividends paid per common share $ 1.09 $ 0.19 $ 0.19 $ 0.18 $ 1.47 $ 1.99 Weighted average shares outstanding (in thousands): Basic 733,163 732,021 731,046 740,058 732,069 743,990 Diluted 733,546 732,362 731,742 740,975 732,542 745,081 Common shares outstanding at end of period 732,507 730,850 730,128 737,547 730,128 737,547 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA) Q1 Q2 Q3 Year-to-Date in millions March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30, Net earnings $ 151 $ 230 $ 239 $ 310 $ 620 $ 1,869 Non-operating pension and other post-employment benefit costs 9 12 12 12 33 38 Interest income and other (12) (18) (24) (9) (54) (9) Interest expense, net of capitalized interest 66 70 72 67 208 204 Loss on debt extinguishment — — — — — 276 Income taxes 22 25 54 77 101 470 Operating income 236 319 353 457 908 2,848 Depreciation, depletion and amortization 126 126 122 119 374 360 Basis of real estate sold 33 13 34 7 80 77 Special items included in operating income — 11 — — 11 — Adjusted EBITDA(1) $ 395 $ 469 $ 509 $ 583 $ 1,373 $ 3,285 (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 Q3.2023 Analyst Package Preliminary results (unaudited) Special Items Included in Net Earnings (Income Tax Affected) Q1 Q2 Q3 Year-to-Date in millions March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30, Net earnings $ 151 $ 230 $ 239 $ 310 $ 620 $ 1,869 Loss on debt extinguishment(1) — — — — — 207 Environmental remediation charge — 8 — — 8 — Net earnings before special items(2) $ 151 $ 238 $ 239 $ 310 $ 628 $ 2,076 Q1 Q2 Q3 Year-to-Date March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30, Net earnings per diluted share $ 0.21 $ 0.31 $ 0.33 $ 0.42 $ 0.85 $ 2.51 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 $ 0.33 $ 0.42 $ 0.86 $ 2.79 (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 Selected Total Company Items Q1 Q2 Q3 Year-to-Date in millions March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30, Pension and post-employment costs: Pension and post-employment service costs $ 6 $ 5 $ 6 $ 9 $ 17 $ 27 Non-operating pension and other post-employment benefit costs 9 12 12 12 33 38 Total company pension and post-employment costs $ 15 $ 17 $ 18 $ 21 $ 50 $ 65 Weyerhaeuser Company Q3.2023 Analyst Package Preliminary results (unaudited) Condensed Consolidated Balance Sheet in millions March 31, June 30, September 30, December 31, ASSETS Current assets: Cash and cash equivalents $ 797 $ 1,095 $ 1,173 $ 1,581 Short-term investments — 665 668 — Receivables, net 440 462 443 357 Receivables for taxes 28 18 18 42 Inventories 586 539 528 550 Prepaid expenses and other current assets 202 188 186 216 Total current assets 2,053 2,967 3,016 2,746 Property and equipment, net 2,157 2,133 2,106 2,171 Construction in progress 222 260 311 222 Timber and timberlands at cost, less depletion 11,564 11,512 11,521 11,604 Minerals and mineral rights, less depletion 211 207 203 214 Deferred tax assets 8 8 8 8 Other assets 365 383 385 375 Total assets $ 16,580 $ 17,470 $ 17,550 $ 17,340 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 981 $ 980 $ 861 $ 982 Accounts payable 266 254 288 247 Accrued liabilities 403 473 537 511 Total current liabilities 1,650 1,707 1,686 1,740 Long-term debt, net 4,072 4,817 4,818 4,071 Deferred tax liabilities 101 105 113 96 Deferred pension and other post-employment benefits 346 348 349 344 Other liabilities 335 352 356 340 Total liabilities 6,504 7,329 7,322 6,591 Total equity 10,076 10,141 10,228 10,749 Total liabilities and equity $ 16,580 $ 17,470 $ 17,550 $ 17,340 Weyerhaeuser Company Q3.2023 Analyst Package Preliminary results (unaudited) Consolidated Statement of Cash Flows Q1 Q2 Q3 Year-to-Date in millions March 31, June 30, Sept 30, Sept 30, Sept 30, Sept 30, Cash flows from operations: Net earnings $ 151 $ 230 $ 239 $ 310 $ 620 $ 1,869 Noncash charges (credits) to earnings: Depreciation, depletion and amortization 126 126 122 119 374 360 Basis of real estate sold 33 13 34 7 80 77 Pension and other post-employment benefits 15 17 18 21 50 65 Share-based compensation expense 8 9 9 8 26 25 Loss on debt extinguishment — — — — — 276 Other 3 (1) (6) 3 (4) 17 Change in: Receivables, net (83) (22) 28 121 (77) 81 Receivables and payables for taxes 14 13 24 (12) 51 15 Inventories (36) 50 9 28 23 (30) Prepaid expenses and other current assets (9) 17 (13) (4) (5) (7) Accounts payable and accrued liabilities (87) 57 73 (8) 43 (23) Pension and post-employment benefit contributions and payments (6) (5) (5) (5) (16) (19) Other (3) (8) (9) (26) (20) (41) Net cash from operations $ 126 $ 496 $ 523 $ 562 $ 1,145 $ 2,665 Cash flows from investing activities: Capital expenditures for property and equipment $ (50) $ (69) $ (90) $ (86) $ (209) $ (207) Capital expenditures for timberlands reforestation (21) (12) (9) (8) (42) (38) Acquisition of timberlands — (2) (68) (3) (70) (286) Purchase of short-term investments — (664) — — (664) — Other 2 (2) 3 — 3 1 Net cash from investing activities $ (69) $ (749) $ (164) $ (97) $ (982) $ (530) Cash flows from financing activities: Cash dividends on common shares $ (799) $ (139) $ (138) $ (133) $ (1,076) $ (1,485) Net proceeds from issuance of long-term debt — 743 — — 743 881 Payments on long-term debt — — (118) — (118) (1,203) Repurchases of common shares (34) (51) (24) (143) (109) (402) Other (8) (2) (1) — (11) (5) Net cash from financing activities $ (841) $ 551 $ (281) $ (276) $ (571) $ (2,214) Net change in cash, cash equivalents and restricted cash $ (784) $ 298 $ 78 $ 189 $ (408) $ (79) Cash, cash equivalents and restricted cash at beginning of period 1,581 797 1,095 1,731 1,581 1,999 Cash, cash equivalents and restricted cash at end of period $ 797 $ 1,095 $ 1,173 $ 1,920 $ 1,173 $ 1,920 Cash paid during the period for: Interest, net of amounts capitalized $ 57 $ 70 $ 63 $ 62 $ 190 $ 211 Income taxes, net of refunds $ 6 $ 12 $ 22 $ 92 $ 40 $ 446 Weyerhaeuser Company Timberlands Segment Q3.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Sales to unaffiliated customers $ 462 $ 417 $ 380 $ 441 $ 1,259 $ 1,421 Intersegment sales 142 150 141 133 433 450 Total net sales 604 567 521 574 1,692 1,871 Costs of sales 461 439 417 442 1,317 1,360 Gross margin 143 128 104 132 375 511 Selling expenses — — 1 1 1 1 General and administrative expenses 25 24 25 25 74 73 Other operating income, net (2) — — (1) (2) (5) Operating income and Net contribution to earnings $ 120 $ 104 $ 78 $ 107 $ 302 $ 442 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Operating income $ 120 $ 104 $ 78 $ 107 $ 302 $ 442 Depreciation, depletion and amortization 68 68 65 61 201 192 Adjusted EBITDA(1) $ 188 $ 172 $ 143 $ 168 $ 503 $ 634 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Total (increase) decrease in working capital(2) $ (24) $ 51 $ 23 $ 14 $ 50 $ 37 Cash spent for capital expenditures(3) $ (26) $ (22) $ (26) $ (22) $ (74) $ (75) (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 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Third Party Delivered logs: Net Sales West $ 229 $ 206 $ 176 $ 224 $ 611 $ 791 (millions) South 168 162 155 166 485 480 North 17 7 11 15 35 40 Total delivered logs 414 375 342 405 1,131 1,311 Stumpage and pay-as-cut timber 16 15 12 10 43 30 Recreational and other lease revenue 18 17 19 18 54 51 Other revenue 14 10 7 8 31 29 Total $ 462 $ 417 $ 380 $ 441 $ 1,259 $ 1,421 Delivered Logs West $ 137.10 $ 123.45 $ 119.19 $ 158.59 $ 126.89 $ 164.97 Third Party Sales South $ 38.23 $ 37.49 $ 36.92 $ 38.59 $ 37.56 $ 38.08 Realizations (per ton) North $ 81.71 $ 78.69 $ 73.81 $ 83.84 $ 78.46 $ 79.26 Delivered Logs West 1,674 1,661 1,479 1,411 4,814 4,793 Third Party Sales South 4,386 4,341 4,180 4,310 12,907 12,612 Volumes (tons, thousands) North 204 98 148 177 450 505 Fee Harvest Volumes West 2,245 2,292 2,137 1,760 6,674 6,085 (tons, thousands) South 6,432 6,430 6,146 6,112 19,008 18,113 North 285 175 223 245 683 703 (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 Q3.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Net sales $ 101 $ 80 $ 105 $ 68 $ 286 $ 313 Costs of sales 41 21 43 14 105 100 Gross margin 60 59 62 54 181 213 General and administrative expenses 7 7 6 6 20 19 Operating income and Net contribution to earnings $ 53 $ 52 $ 56 $ 48 $ 161 $ 194 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Operating income $ 53 $ 52 $ 56 $ 48 $ 161 $ 194 Depreciation, depletion and amortization 3 5 4 5 12 12 Basis of real estate sold 33 13 34 7 80 77 Adjusted EBITDA(1) $ 89 $ 70 $ 94 $ 60 $ 253 $ 283 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Cash spent for capital expenditures $ — $ — $ — $ — $ — $ — Segment Statistics Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Net Sales Real Estate $ 72 $ 47 $ 79 $ 30 $ 198 $ 217 (millions) Energy and Natural Resources 29 33 26 38 88 96 Total $ 101 $ 80 $ 105 $ 68 $ 286 $ 313 Acres Sold Real Estate 20,753 9,281 25,721 5,014 55,755 56,046 Price per Acre Real Estate $ 3,241 $ 4,790 $ 3,033 $ 5,046 $ 3,403 $ 3,624 Basis as a Percent of Real Estate 46 % 28 % 43 % 23 % 40 % 35 % Weyerhaeuser Company Wood Products Segment Q3.2023 Analyst Package Preliminary results (unaudited) Segment Statement of Operations in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Net sales $ 1,318 $ 1,500 $ 1,537 $ 1,767 $ 4,355 $ 6,627 Costs of sales 1,159 1,218 1,195 1,360 3,572 4,050 Gross margin 159 282 342 407 783 2,577 Selling expenses 22 21 20 22 63 64 General and administrative expenses 36 37 38 36 111 106 Other operating costs, net 6 6 7 5 19 18 Operating income and Net contribution to earnings $ 95 $ 218 $ 277 $ 344 $ 590 $ 2,389 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Operating income $ 95 $ 218 $ 277 $ 344 $ 590 $ 2,389 Depreciation, depletion and amortization 53 52 51 51 156 151 Adjusted EBITDA(1) $ 148 $ 270 $ 328 $ 395 $ 746 $ 2,540 (1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. Selected Segment Items in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Total (increase) decrease in working capital(2) $ (127) $ 40 $ 52 $ 136 $ (35) $ (30) Cash spent for capital expenditures $ (43) $ (56) $ (69) $ (68) $ (168) $ (163) (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 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Structural Lumber Third party net sales $ 515 $ 573 $ 570 $ 676 $ 1,658 $ 2,880 (volumes presented Third party sales realizations $ 450 $ 479 $ 481 $ 556 $ 470 $ 786 in board feet) Third party sales volumes(3) 1,144 1,196 1,184 1,216 3,524 3,662 Production volumes 1,143 1,164 1,174 1,140 3,481 3,575 Oriented Strand Third party net sales $ 208 $ 215 $ 284 $ 287 $ 707 $ 1,348 Board Third party sales realizations $ 269 $ 299 $ 416 $ 401 $ 325 $ 622 (volumes presented Third party sales volumes(3) 773 720 683 715 2,176 2,167 in square feet 3/8") Production volumes 761 727 724 735 2,212 2,232 Engineered Solid Third party net sales $ 169 $ 215 $ 216 $ 233 $ 600 $ 676 Section Third party sales realizations $ 3,643 $ 3,571 $ 3,458 $ 3,946 $ 3,549 $ 3,754 (volumes presented Third party sales volumes(3) 4.7 6.0 6.2 5.9 16.9 18.0 in cubic feet) Production volumes 4.6 5.9 5.6 6.0 16.1 18.1 Engineered Third party net sales $ 87 $ 126 $ 122 $ 166 $ 335 $ 471 I-joists Third party sales realizations $ 3,171 $ 2,901 $ 2,862 $ 3,525 $ 2,951 $ 3,312 (volumes presented Third party sales volumes(3) 27 44 42 47 113 142 in lineal feet) Production volumes 25 38 42 47 105 141 Softwood Plywood Third party net sales $ 41 $ 44 $ 42 $ 47 $ 127 $ 158 (volumes presented Third party sales realizations $ 490 $ 474 $ 488 $ 632 $ 484 $ 720 in square feet 3/8") Third party sales volumes(3) 83 94 86 74 263 219 Production volumes 74 84 77 64 235 197 Medium Density Third party net sales $ 38 $ 42 $ 40 $ 50 $ 120 $ 151 Fiberboard Third party sales realizations $ 1,314 $ 1,342 $ 1,242 $ 1,274 $ 1,298 $ 1,173 (volumes presented Third party sales volumes(3) 29 31 33 40 93 129 in square feet 3/4") Production volumes 34 33 34 38 101 130 (3) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. Weyerhaeuser Company Unallocated Items Q3.2023 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 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. Net Charge to Earnings in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Unallocated corporate function and variable compensation expense $ (27) $ (32) $ (33) $ (36) $ (92) $ (103) Liability classified share-based compensation — (2) 2 2 — 5 Foreign exchange (loss) gain (1) 2 — 9 1 12 Elimination of intersegment profit in inventory and LIFO 9 3 (4) 2 8 (39) Other, net (13) (26) (23) (19) (62) (52) Operating loss (32) (55) (58) (42) (145) (177) Non-operating pension and other post-employment benefit costs (9) (12) (12) (12) (33) (38) Interest income and other 12 18 24 9 54 9 Net charge to earnings $ (29) $ (49) $ (46) $ (45) $ (124) $ (206) Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Operating loss $ (32) $ (55) $ (58) $ (42) $ (145) $ (177) Depreciation, depletion and amortization 2 1 2 2 5 5 Special items — 11 — — 11 — Adjusted EBITDA(1) $ (30) $ (43) $ (56) $ (40) $ (129) $ (172) (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 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Environmental remediation charge $ — $ 11 $ — $ — $ 11 $ — Special items included in operating loss and net charge to earnings $ — $ 11 $ — $ — $ 11 $ — Unallocated Selected Items in millions Q1.2023 Q2.2023 Q3.2023 Q3.2022 YTD.2023 YTD.2022 Cash spent for capital expenditures $ (2) $ (3) $ (4) $ (4) $ (9) $ (7) For more information contact: Analysts – Andy Taylor (206) 539-3907 Media – Nancy Thompson (919) 861-0342 SOURCE Weyerhaeuser Company
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