PotlatchDeltic Corporation Reports First Quarter 2023 Results

PotlatchDeltic Corporation today reported net income of $16.3 million, or $0.20 per diluted share, on revenues of $258.0 million for the quarter ended March 31, 2023. Excluding CatchMark merger-related expenses, adjusted net income was $18.5 million, or $0.23 per diluted share for the first quarter of 2023. Net income was $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 loss on fire damage, adjusted net income was $174.6 million, or $2.50 per diluted share for the first quarter of 2022.

First Quarter 2023 Highlights

• Generated Total Adjusted EBITDDA of $57.7 million and Total Adjusted EBITDDA margin of 22%
• Timberlands set quarterly harvest volume record of 2.1 million tons
• Completed insourcing timberlands management for legacy CatchMark operations
• Maintained strong liquidity position of $625 million as of March 31, 2023

“Our Timberlands and Real Estate businesses had strong operational performance during the quarter, offsetting weakness in Wood Products,” said Eric Cremers, president and chief executive officer. “During the quarter our Timberlands business did an outstanding job and produced our highest quarterly harvest volume on record, and our Real Estate business experienced strong rural real estate sales activity, including a sizable conservation land sale in Alabama. As we head into the spring building season we are encouraged by the recent upward trend in lumber prices and we continue to remain optimistic on long-term housing-related fundamentals that drive demand in our business. Our strong balance sheet and commitment to a disciplined capital allocation strategy position us to continue to grow shareholder value,” stated Mr. Cremers.

Business Performance: Q1 2023 vs. Q4 2022

Timberlands

First Quarter 2023 Highlights

• Timberlands Adjusted EBITDDA decreased $4.0 million from Q4 2022
• Northern sawlog prices decreased 19% primarily due to lower indexed sawlog prices and seasonally heavier sawlogs
• Total harvest of 2.1 million tons exceeded plan driven by favorable harvest conditions
• Southern sawlog prices decreased 3% primarily due to seasonally lower hardwood volumes and pine sawlog prices
• Forest management costs decreased due to seasonally lower activities and insourcing of timberlands management on legacy CatchMark operations

Wood Products

First Quarter 2023 Highlights

• Wood Products Adjusted EBITDDA decreased $2.4 million from Q4 2022
• Average lumber price decreased 8% to $435 per MBF in Q1 2023
• Lumber production increased in Q1 2023 leading to higher fixed cost absorption
• Log costs decreased primarily due to lower indexed pricing in Idaho
• Increased plywood shipments were partially offset by lower price realizations

Real Estate

First Quarter 2023 Highlights

• Real Estate Adjusted EBITDDA increased $12.3 million from Q4 2022
• Sold 6,939 acres of rural land at an average price of $2,568 / acre
• Sold 24 residential lots at an average price of $116,429 / lot

For the complete first 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 www.potlatchdeltic.com.

Contact:

Wayne Wasechek – Investor Contact – (509) 835-1521

Source: PotlatchDeltic Corporation