PotlatchDeltic Corporation Reports First Quarter 2022 Results
PotlatchDeltic Corporation reported net income of $163.9 million, or $2.35 per diluted share, on revenues of $411.4 million for the quarter ended March 31, 2022. Excluding after tax special items consisting of a non-cash pension settlement charge and a net loss on fire damage, adjusted net income was $174.6 million, or $2.50 per diluted share for the first quarter of 2022. Net income was $131.1 million, or $1.94 per diluted share, on revenues of $354.2 million for the quarter ended March 31, 2021.
First Quarter 2022 Highlights
- Generated Total Adjusted EBITDDA of $245.6 million and Total Adjusted EBITDDA margin of 60%
- Highest first quarter Adjusted EBITDDA on record and second highest quarterly Adjusted EBITDDA in our history
- Transferred $70 million in pension obligations to American General Life
- Expanded strong liquidity position to $770 million as of March 31, 2022
“2022 is off to a phenomenal start with each of our businesses delivering exceptional results leading to our highest first quarter financial performance on record,” said Eric Cremers, president and chief executive officer. “Our operating results reflect our integrated operating model and leverage-to-lumber strategy combined with strong execution by our teams across all of our operations. Looking forward, we remain upbeat on lumber demand fundamentals despite the current rising interest rate environment. Our commitment to a disciplined capital allocation strategy and our strong balance sheet position us to continue to enhance shareholder value,” stated Mr. Cremers.
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Financial Highlights |
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($ in millions, except per share data) |
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Q1 2022 |
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Q4 2021 |
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Q1 2021 |
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Revenues |
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$ |
411.4 |
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$ |
248.4 |
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$ |
354.2 |
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Net income |
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$ |
163.9 |
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$ |
39.2 |
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$ |
131.1 |
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Weighted average shares outstanding, diluted (in thousands) |
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69,623 |
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67,974 |
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67,607 |
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Net income per diluted share |
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$ |
2.35 |
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$ |
0.58 |
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$ |
1.94 |
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Adjusted Net Income |
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$ |
174.6 |
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$ |
39.9 |
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$ |
131.1 |
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Adjusted Net Income Per Diluted Share |
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$ |
2.50 |
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$ |
0.59 |
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$ |
1.94 |
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Total Adjusted EBITDDA |
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$ |
245.6 |
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$ |
75.7 |
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$ |
195.0 |
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Dividends per share1 |
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$ |
0.44 |
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$ |
4.44 |
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$ |
0.41 |
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Net cash from operations |
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$ |
230.3 |
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$ |
51.6 |
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$ |
169.9 |
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Cash and cash equivalents |
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$ |
470.9 |
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$ |
296.2 |
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$ |
382.0 |
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1The regular dividend was increased 7.3% to $0.44 per quarter and a special dividend of $4 per share was paid Q4 2021. |
Business Performance: Q1 2022 vs. Q4 2021
Timberlands
First Quarter 2022 Highlights
- Timberlands Adjusted EBITDDA increased $34.6 million from Q4 2021
- Increased Northern harvest volumes driven by favorable logging conditions
- Northern sawlog price increased 54% primarily due to higher indexed sawlog prices
- Southern sawlog prices increased 2% as higher pine sawlog prices partially offset the effect of seasonally lower hardwood volumes
- Higher log & haul costs were primarily driven by increased fuel costs
- Forest management costs declined due to seasonally lower Northern activity
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($ in millions) |
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Q1 2022 |
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Q4 2021 |
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$ Change |
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Timberlands Revenues |
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$ |
123.7 |
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$ |
86.8 |
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$ |
36.9 |
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Timberlands Adjusted EBITDDA |
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$ |
76.4 |
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$ |
41.8 |
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$ |
34.6 |
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Wood Products
First Quarter 2022 Highlights
- Wood Products Adjusted EBITDDA increased $112.8 million from Q4 2021
- Average lumber price increased 91% to $1,075 per MBF in Q1 2022
- Higher manufacturing cost reflects inflationary cost increases and planned mill maintenance
- Log costs increased due to higher index pricing in Idaho
- Plywood shipments and price realizations increased due to strong demand and mix
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($ in millions) |
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Q1 2022 |
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Q4 2021 |
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$ Change |
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Wood Products Revenues |
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$ |
295.7 |
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$ |
174.2 |
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$ |
121.5 |
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Wood Products Adjusted EBITDDA |
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$ |
150.0 |
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$ |
37.2 |
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$ |
112.8 |
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Real Estate
First Quarter 2022 Highlights
- Real Estate Adjusted EBITDDA increased $20.1 million from Q4 2021
- Sold 4,751 acres of rural land at an average price of $4,556/acre, including a tract for $13.2 million
- Sold 64 residential lots at an average price of $112,725/lot
- Sold 3 commercial acres for $917,236/acre
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($ in millions) |
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Q1 2022 |
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Q4 2021 |
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$ Change |
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Real Estate Revenues |
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$ |
34.1 |
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$ |
14.0 |
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$ |
20.1 |
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Real Estate Adjusted EBITDDA |
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$ |
30.1 |
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$ |
10.0 |
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$ |
20.1 |
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For the complete press release, click here.
About PotlatchDeltic
PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com.
Contact:
Jerry Richards – Investor Relations – (509) 835-1521
Source: PotlatchDeltic Corporation
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