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PotlatchDeltic Corporation Reports Third Quarter 2024 Results

General News
Potlatch Deltic Logo - Lumber Mill

PotlatchDeltic Corporation reported net income of $3.3 million, or $0.04 per diluted share, on revenues of $255.1 million for the quarter ended September 30, 2024. Net income was $23.7 million, or $0.29 per diluted share, on revenues of $265.5 million for the quarter ended September 30, 2023. Excluding an after-tax gain on insurance recoveries, adjusted net income was $11.4 million, or $0.14 per diluted share for the third quarter of 2023.

Third Quarter 2024 Highlights

  • Generated Total Adjusted EBITDDA of $45.9 million and Total Adjusted EBITDDA margin of 18%
  • Completed construction on the Waldo, Arkansas sawmill expansion and modernization project
  • Repurchased 57,000 shares for $2.4 million, or $42 per share
  • Maintained strong liquidity of $460 million as of September 30, 2024

“During the third quarter, our businesses delivered solid operational performance while navigating a challenging lumber market as well as the broader economic environment,” said Eric Cremers, President and Chief Executive Officer. “Additionally, our Wood Products division achieved a significant milestone with the successful completion of the construction phase of our Waldo, Arkansas sawmill expansion and modernization project. We believe this strategic investment positions the Waldo mill to be a top quartile sawmill, enabling it to generate an additional $25 million of Adjusted EBITDDA annually under a mid-cycle sales environment once the mill reaches its new capacity output. As for capital allocation, we will continue to be disciplined stewards of our shareholders’ capital and remain focused on returning capital to shareholders while prioritizing the long-term value for our shares. Looking forward, we believe that lumber markets are stabilizing as supply and demand in the industry continue to align. We are also optimistic that reductions in interest rates will serve as a catalyst, creating positive momentum in the housing and repair and remodel markets, thereby driving demand in our business,” stated Mr. Cremers.

Business Performance: Q3 2024 vs. Q2 2024

Timberlands

Third Quarter 2024 Highlights

  • Timberlands Adjusted EBITDDA increased $1.6 million from Q2 2024
  • Northern harvest volumes increased due to normal seasonality
  • Northern sawlog prices decreased primarily due to lower indexed sawlog prices
  • Southern sawlog and pulpwood prices were relatively stable

Wood Products

Third Quarter 2024 Highlights

  • Wood Products Adjusted EBITDDA decreased $2.8 million from Q2 2024
  • Average lumber prices decreased 5% to $402 per thousand board feet (MBF) in Q3 2024
  • Higher per-unit manufacturing costs primarily due to lower production from planned downtime and restart at the Waldo sawmill related to the expansion and modernization project

Real Estate

Third Quarter 2024 Highlights

  • Real Estate Adjusted EBITDDA decreased $57.8 million from Q2 2024, which included a $57 million rural timberland sale in the South
  • Sold 6,548 acres of rural land at an average price of $3,727 per acre
  • Sold 53 residential lots at an average price of $204,851 per lot

For full results click here.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns over 2.1 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 Relations – (509) 835-1521

Source: PotlatchDeltic Corporation