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PotlatchDeltic Corporation Reports Third Quarter 2022 Results

General News
Potlatch Deltic Logo - Lumber Mill

PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $46.0 million, or $0.64 per diluted share, on revenues of $306.7 million for the quarter ended September 30, 2022. Excluding after tax special items consisting of a gain on insurance recoveries and CatchMark merger related expenses, adjusted net income was $53.2 million, or $0.74 per diluted share for the third quarter of 2022. Net income was $65.7 million, or $0.97 per diluted share, on revenues of $287.3 million for the quarter ended September 30, 2021. Excluding an after-tax gain on insurance recoveries, adjusted net income was $62.4 million, or $0.92 per diluted share for the third quarter of 2021.

Third Quarter 2022 Highlights

  • Generated Total Adjusted EBITDDA of $101.1 million and Total Adjusted EBITDDA margin of 33%
  • Successfully completed our merger with CatchMark creating a leading integrated timber REIT
  • Used existing interest rate swaps to reduce the combined company’s annual interest expense by $8.5 million, reducing our weighted average cost of debt from 3.1% to 2.4%
  • Achieved $15 million of CatchMark CAD synergies and now expect $21 million versus our $16 million target
  • Restarted the large log line at the Ola, Arkansas sawmill on schedule
  • Maintained strong liquidity position of $773 million as of September 30, 2022

“Third quarter 2022 marked another important milestone in our company’s history as we successfully closed our merger with CatchMark, further diversifying our timberland ownership into some of the strongest markets in the U.S. South,” said Eric Cremers, president and chief executive officer. “Overall, we have acquired almost 500,000 acres of timberlands in the last year at relatively attractive prices, increasing our stable cash flows. All of our businesses continue to perform well and we generated Total Adjusted EBITDDA of $101 million in the third quarter. Our strong balance sheet and liquidity provide a high degree of flexibility as we navigate the current economic environment, along with the ability to continue growing shareholder value,” stated Mr. Cremers.

Business Performance: Q3 2022 vs. Q2 2022


Third Quarter 2022 Highlights:

  • Timberlands Adjusted EBITDDA increased $6.6 million from Q2 2022
  • Northern and southern harvest volumes increased seasonally
  • Northern sawlog prices decreased 25% due largely to lower indexed sawlog prices
  • Southern sawlog prices were relatively flat
  • Higher log & haul costs were primarily driven by increased fuel costs and constrained capacity

Wood Products

Third Quarter 2022 Highlights:

  • Wood Products Adjusted EBITDDA decreased $75.9 million from Q2 2022
  • Average lumber price decreased 34% to $572 per MBF in Q3 2022
  • Lumber production increased in Q3 2022 leading to higher fixed cost absorption
  • Plywood shipments and price realizations declined on lower demand

Real Estate

Third Quarter 2022 Highlights:

  • Real Estate Adjusted EBITDDA decreased $7.7 million from Q2 2022
  • Sold 1,622 acres of rural land at an average price of $3,811 per acre
  • Sold 48 residential lots at an average price of $78,344 per lot
  • Sold 35 commercial acres for $182,520 per acre

For the full third quarter results, click here.

About PotlatchDeltic

PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. 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


Jerry Richards – Vice President and Chief Financial Officer – – (509) 835-1521

Source: PotlatchDeltic Corporation