0000950170-23-035945.txt : 20230731 0000950170-23-035945.hdr.sgml : 20230731 20230731161218 ACCESSION NUMBER: 0000950170-23-035945 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20230731 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20230731 DATE AS OF CHANGE: 20230731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: POTLATCHDELTIC CORP CENTRAL INDEX KEY: 0001338749 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 820156045 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32729 FILM NUMBER: 231127542 BUSINESS ADDRESS: STREET 1: 601 WEST FIRST AVENUE STREET 2: SUITE 1600 CITY: SPOKANE STATE: WA ZIP: 99201 BUSINESS PHONE: (509) 835-1500 MAIL ADDRESS: STREET 1: 601 WEST FIRST AVENUE STREET 2: SUITE 1600 CITY: SPOKANE STATE: WA ZIP: 99201 FORMER COMPANY: FORMER CONFORMED NAME: POTLATCH CORP DATE OF NAME CHANGE: 20060206 FORMER COMPANY: FORMER CONFORMED NAME: Potlatch Holdings, Inc. DATE OF NAME CHANGE: 20050914 8-K 1 pch-20230731.htm 8-K 8-K
false000133874900013387492023-07-312023-07-31

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: July 31, 2023 (Date of earliest event reported)

 

PotlatchDeltic Corporation

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

001-32729

 

82-0156045

(State or Other Jurisdiction

of Incorporation)

 

(Commission File Number)

 

(I.R.S. Employer

Identification Number)

 

 

 

 

 

601 W. First Avenue, Suite 1600,

Spokane WA

 

 

 

99201

(Address of principal executive offices)

 

 

 

(Zip Code)

509-835-1500

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock ($1 par value)

 

PCH

 

Nasdaq Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act).

 

 

 


 

 

 

Item 2.02 Results of Operations and Financial Condition

On July 31, 2023, PotlatchDeltic Corporation announced its results of operations and financial condition for the quarter ended June 30, 2023. The press release containing this announcement is furnished as Exhibit 99.1 hereto.

The information in this Form 8-K and the Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

 

(d) The following items are furnished as exhibits to this report.

 

99.1 Press release issued by PotlatchDeltic Corporation, dated July 31, 2023, PotlatchDeltic Corporation Reports Second Quarter 2023 Results.

 

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 31, 2023

 

PotlatchDeltic Corporation

 

 

 

By:

 

/s/ Michele L. Tyler

 

 

Michele L. Tyler

 

 

Vice President, General Counsel and Corporate Secretary

 

 

 

 

 

 

 

 

3

 


EX-99.1 2 pch-ex99_1.htm EX-99.1 EX-99.1

 

 

 

Exhibit 99.1

img141266288_0.jpg 

 

News Release

For immediate release:

 

Contact:

(Investors)

(Media)

Wayne Wasechek

Anna Torma

509.835.1521

509.835.1558

 

PotlatchDeltic Corporation Reports Second Quarter 2023 Results

SPOKANE, Wash., July 31, 2023 (BUSINESS WIRE) – PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $22.3 million, or $0.28 per diluted share, on revenues of $246.1 million for the quarter ended June 30, 2023. Excluding after-tax special items consisting of gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $5.2 million, or $0.06 per diluted share for the second quarter of 2023. Net income was $120.2 million, or $1.72 per diluted share, on revenues of $359.6 million for the quarter ended June 30, 2022. Excluding an after-tax gain on insurance recoveries, adjusted net income was $112.9 million, or $1.61 per diluted share for the second quarter of 2022.

 

Second Quarter 2023 Highlights

 

Generated Total Adjusted EBITDDA of $45.5 million and Total Adjusted EBITDDA margin of 18.5%
Completed stratification of acquired CatchMark timberlands identifying higher value opportunities
Repurchased 9,000 shares for $0.4 million, or $45 per share
Maintained strong liquidity position of $630 million as of June 30, 2023

 

“Our second quarter 2023 results reflect solid performance across all of our business segments while navigating through an uncertain macroeconomic environment,” said Eric Cremers, president and chief executive officer. “We are encouraged by recent favorable housing data and the upward trend in lumber prices. Looking further ahead, we remain positive on long-term housing-related fundamentals that drive demand in our business. We are well positioned with a strong balance sheet and a portfolio of high-quality assets to grow shareholder value under a disciplined and opportunistic capital allocation strategy," stated Mr. Cremers.

 

 

1

 


 

 

Financial Highlights

 

($ in millions, except per share data)

 

Q2 2023

 

 

Q1 2023

 

 

Q2 2022

 

Revenues

 

$

246.1

 

 

$

258.0

 

 

$

359.6

 

Net income

 

$

22.3

 

 

$

16.3

 

 

$

120.2

 

Weighted average shares outstanding, diluted (in thousands)

 

 

80,416

 

 

 

80,167

 

 

 

69,791

 

Net income per diluted share

 

$

0.28

 

 

$

0.20

 

 

$

1.72

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

$

5.2

 

 

$

18.5

 

 

$

112.9

 

Adjusted Net Income per diluted share

 

$

0.06

 

 

$

0.23

 

 

$

1.61

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDDA

 

$

45.5

 

 

$

57.7

 

 

$

175.1

 

Dividends per share1

 

$

0.45

 

 

$

0.45

 

 

$

0.44

 

Net cash from operations

 

$

37.2

 

 

$

39.1

 

 

$

147.9

 

Cash and cash equivalents

 

$

331.2

 

 

$

325.6

 

 

$

511.2

 

 

 

 

 

 

 

 

 

 

 

1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022.

 

Business Performance: Q2 2023 vs. Q1 2023

Timberlands

Second Quarter 2023 Highlights

Timberlands Adjusted EBITDDA decreased $17.2 million from Q1 2023
Northern harvest volumes decreased due to spring breakup
Northern sawlog prices increased 2% primarily due to seasonally lighter sawlogs
Southern harvest volumes were lower primarily due to wet conditions impacting operations
Southern sawlog prices were flat while pulpwood prices declined 5% on weaker demand
Forest management costs increased due to seasonally higher activities

 

 

($ in millions)

 

Q2 2023

 

 

Q1 2023

 

 

$ Change

 

Timberlands Revenues

 

$

88.7

 

 

$

115.2

 

 

$

(26.5

)

 

 

 

 

 

 

 

 

 

 

Timberlands Adjusted EBITDDA

 

$

29.4

 

 

$

46.6

 

 

$

(17.2

)

 

 

 

 

 

 

 

 

 

 

 

Wood Products

Second Quarter 2023 Highlights

Wood Products Adjusted EBITDDA increased $11.9 million from Q1 2023
Average lumber price increased 9% to $476 per MBF in Q2 2023
Per-unit log costs decreased on lower indexed pricing in Idaho and improved recoveries at our Southern sawmills
Lumber shipments increased 7%
Plywood shipments and price decreased due to lower demand

 

 

($ in millions)

 

Q2 2023

 

 

Q1 2023

 

 

$ Change

 

Wood Products Revenues

 

$

167.7

 

 

$

152.8

 

 

$

14.9

 

 

 

 

 

 

 

 

 

 

 

Wood Products Adjusted EBITDDA

 

$

11.9

 

 

$

 

 

$

11.9

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 


 

 

Real Estate

Second Quarter 2023 Highlights

Real Estate Adjusted EBITDDA decreased $7.3 million from Q1 2023
Sold 941 acres of rural land at an average price of $4,859 / acre
Sold 42 residential lots at an average price of $107,126 / lot
Sold 6 commercial acres at an average price of $818,914 / acre

 

($ in millions)

 

Q2 2023

 

 

Q1 2023

 

 

$ Change

 

Real Estate Revenues

 

$

17.0

 

 

$

23.9

 

 

$

(6.9

)

 

 

 

 

 

 

 

 

 

 

Real Estate Adjusted EBITDDA

 

$

12.2

 

 

$

19.5

 

 

$

(7.3

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures

This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP.

Management uses Adjusted EBITDDA to evaluate the performance of the company. This is a non-GAAP measure that represents EBITDDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses.

Total Adjusted EBITDDA margin is calculated as Total Adjusted EBITDDA divided by revenues.

Adjusted Net Income and Adjusted Net Income Per Diluted Share are non-GAAP measures that represent GAAP net income and GAAP net income per diluted share before certain items that impact the ability of investors, securities analysts and other interested parties to compare the performance of our business, either period-over-period or with other businesses.

Reconciliations to GAAP are set forth in the accompanying schedules.

Conference Call Information

A live conference call and webcast will be held Tuesday, August 1, 2023, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time). Investors may access the webcast at www.potlatchdeltic.com by clicking on the Investors link or by conference call at 1-888-510-2008 for U.S./Canada and 1-646-960-0306 for international callers. Participants will be asked to provide conference I.D. number 7281983. Supplemental materials that will be discussed during the call are available on the website.

A replay of the conference call will be available two hours following the call until August 8, 2023 by calling 1-800-770-2030 for U.S./Canada or 1-647-362-9199 for international callers. Callers must enter conference I.D. number 7281983 to access the replay.

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.

 

 

3

 


 

 

Forward-Looking Statements

 

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenues, costs and expenses; long-term housing market fundamentals and lumber prices; disciplined and opportunistic capital allocation strategy; and similar matters. Words such as “looking ahead,” and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other “forward-looking” information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic’s control, such as changes in the U.S. housing market; changes in timberland values; changes in timber harvest levels on the company's lands; changes in timber prices; changes in policy regarding governmental timber sales; availability of logging contractors and shipping capacity; changes in the United States and international economies and effects on our customers and suppliers; changes in interest rates; credit availability and homebuyers’ ability to qualify for mortgages; availability of labor and developable land; changes in the level of construction and remodeling activity; changes in foreign demand; changes in tariffs, quotas and trade agreements involving wood products; currency fluctuation; changes in demand for our products and real estate; changes in production and production capacity in the forest products industry; competitive pricing pressures for our products; unanticipated manufacturing disruptions; disruptions or inefficiencies in our supply chain and/or operations; changes in general and industry-specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; fires at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; the successful execution of the company’s strategic plans; and the other factors described in PotlatchDeltic’s Annual Report on Form 10-K and in the company’s other filings with the SEC. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.

 

 

4

 


 

 

 

PotlatchDeltic Corporation

Condensed Consolidated Statements of Operations

Unaudited

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

March 31,

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(in thousands, except per share amounts)

2023

 

 

2023

 

 

 

2022

 

 

2023

 

 

2022

 

Revenues

$

246,101

 

 

$

257,962

 

 

 

$

359,597

 

 

$

504,063

 

 

$

770,947

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

215,063

 

 

 

224,350

 

 

 

 

191,334

 

 

 

439,413

 

 

 

371,181

 

Selling, general and administrative expenses

 

17,585

 

 

 

18,230

 

 

 

 

20,412

 

 

 

35,815

 

 

 

36,706

 

CatchMark merger-related expenses

 

244

 

 

2,209

 

 

 

 

 

 

 

 

2,453

 

 

 

 

Gain on fire damage

 

(23,110

)

 

 

 

 

 

 

(9,868

)

 

 

(23,110

)

 

 

(9,592

)

 

 

209,782

 

 

 

244,789

 

 

 

 

201,878

 

 

 

454,571

 

 

 

398,295

 

Operating income

 

36,319

 

 

 

13,173

 

 

 

 

157,719

 

 

 

49,492

 

 

 

372,652

 

Interest expense, net

 

(7,613

)

 

 

(199

)

 

 

 

(7,419

)

 

 

(7,812

)

 

 

(10,313

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,165

)

Non-operating pension and other postretirement employee benefit costs

 

(229

)

 

 

(228

)

 

 

 

(1,809

)

 

 

(457

)

 

 

(3,738

)

Other

 

258

 

 

 

10

 

 

 

 

 

 

 

 

268

 

 

 

 

Income before income taxes

 

28,735

 

 

 

12,756

 

 

 

 

148,491

 

 

 

41,491

 

 

 

344,436

 

Income taxes

 

(6,429

)

 

 

3,504

 

 

 

 

(28,269

)

 

 

(2,925

)

 

 

(60,334

)

Net income

$

22,306

 

 

$

16,260

 

 

 

$

120,222

 

 

$

38,566

 

 

$

284,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.28

 

 

$

0.20

 

 

 

$

1.73

 

 

$

0.48

 

 

$

4.09

 

Diluted

$

0.28

 

 

$

0.20

 

 

 

$

1.72

 

 

$

0.48

 

 

$

4.07

 

Dividends per share

$

0.45

 

 

$

0.45

 

 

 

$

0.44

 

 

$

0.90

 

 

$

0.88

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

80,145

 

 

 

80,027

 

 

 

 

69,580

 

 

 

80,087

 

 

 

69,502

 

Diluted

 

80,416

 

 

 

80,167

 

 

 

 

69,791

 

 

 

80,297

 

 

 

69,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 


 

 

 

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

 

 

(in thousands, except per share amounts)

 

June 30, 2023

 

 

December 31, 2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

331,225

 

 

$

343,809

 

Customer receivables, net

 

 

32,903

 

 

 

22,813

 

Inventories, net

 

 

70,663

 

 

 

67,958

 

Other current assets

 

 

57,877

 

 

 

36,955

 

Total current assets

 

 

492,668

 

 

 

471,535

 

Property, plant and equipment, net

 

 

306,978

 

 

 

318,184

 

Investment in real estate held for development and sale

 

 

55,059

 

 

 

55,490

 

Timber and timberlands, net

 

 

2,476,054

 

 

 

2,508,372

 

Intangible assets, net

 

 

16,530

 

 

 

17,420

 

Other long-term assets

 

 

175,062

 

 

 

179,554

 

Total assets

 

$

3,522,351

 

 

$

3,550,555

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

96,093

 

 

$

94,861

 

Current portion of long-term debt

 

 

39,990

 

 

 

39,979

 

Current portion of pension and other postretirement employee benefits

 

 

4,926

 

 

 

4,926

 

Total current liabilities

 

 

141,009

 

 

 

139,766

 

Long-term debt

 

 

993,275

 

 

 

992,701

 

Pension and other postretirement employee benefits

 

 

78,666

 

 

 

77,396

 

Deferred tax liabilities, net

 

 

39,624

 

 

 

41,790

 

Other long-term obligations

 

 

36,608

 

 

 

35,749

 

Total liabilities

 

 

1,289,182

 

 

 

1,287,402

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $1 par value, 200,000 and 100,000 shares authorized, and 79,911 and 79,683 shares issued and outstanding

 

 

79,911

 

 

 

79,683

 

Additional paid-in capital

 

 

2,298,593

 

 

 

2,294,797

 

Accumulated deficit

 

 

(242,896

)

 

 

(208,979

)

Accumulated other comprehensive income

 

 

97,561

 

 

 

97,652

 

Total stockholders’ equity

 

 

2,233,169

 

 

 

2,263,153

 

Total liabilities and stockholders' equity

 

$

3,522,351

 

 

$

3,550,555

 

 

 

 

 

 

 

 

 

 

 

 

6

 


 

 

 

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

June 30, 2023

 

 

March 31, 2023

 

 

June 30, 2022

 

 

June 30, 2023

 

 

June 30, 2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

22,306

 

 

$

16,260

 

 

$

120,222

 

 

$

38,566

 

 

$

284,102

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

27,496

 

 

 

32,173

 

 

 

20,379

 

 

 

59,669

 

 

 

40,253

 

Basis of real estate sold

 

4,884

 

 

 

10,631

 

 

 

7,325

 

 

 

15,515

 

 

 

18,179

 

Change in deferred taxes

 

(2,609

)

 

 

394

 

 

 

34

 

 

 

(2,215

)

 

 

(2,089

)

Pension and other postretirement employee benefits

 

1,612

 

 

 

1,611

 

 

 

3,540

 

 

 

3,223

 

 

 

7,397

 

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

14,165

 

Equity-based compensation expense

 

1,577

 

 

 

2,279

 

 

 

2,368

 

 

 

3,856

 

 

 

4,424

 

Gain on fire damage

 

(23,110

)

 

 

 

 

 

(9,868

)

 

 

(23,110

)

 

 

(9,592

)

Interest received under swaps with other-than-insignificant financing element

 

(6,313

)

 

 

(5,454

)

 

 

 

 

 

(11,767

)

 

 

 

Other, net

 

1,911

 

 

 

1,945

 

 

 

(308

)

 

 

3,856

 

 

 

(599

)

Change in working capital and operating-related activities, net

 

2,871

 

 

 

(17,205

)

 

 

(1,236

)

 

 

(14,334

)

 

 

19,972

 

Real estate development expenditures

 

(1,896

)

 

 

(2,408

)

 

 

(3,029

)

 

 

(4,304

)

 

 

(5,190

)

Funding of pension and other postretirement employee benefits

 

(1,217

)

 

 

(1,087

)

 

 

(968

)

 

 

(2,304

)

 

 

(2,264

)

Proceeds from insurance recoveries

 

9,706

 

 

 

 

 

 

9,428

 

 

 

9,706

 

 

 

9,428

 

Net cash from operating activities

 

37,218

 

 

 

39,139

 

 

 

147,887

 

 

 

76,357

 

 

 

378,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment additions

 

(5,880

)

 

 

(4,255

)

 

 

(24,211

)

 

 

(10,135

)

 

 

(36,777

)

Timberlands reforestation and roads

 

(4,596

)

 

 

(6,118

)

 

 

(3,740

)

 

 

(10,714

)

 

 

(8,388

)

Acquisition of timber and timberlands

 

(1,621

)

 

 

 

 

 

(42,218

)

 

 

(1,621

)

 

 

(42,218

)

Interest received under swaps with other-than-insignificant financing element

 

5,849

 

 

 

5,055

 

 

 

 

 

 

10,904

 

 

 

 

Other, net

 

242

 

 

 

422

 

 

 

(1,475

)

 

 

664

 

 

 

(1,383

)

Net cash from investing activities

 

(6,006

)

 

 

(4,896

)

 

 

(71,644

)

 

 

(10,902

)

 

 

(88,766

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to common stockholders

 

(35,958

)

 

 

(35,962

)

 

 

(30,524

)

 

 

(71,920

)

 

 

(61,048

)

Repurchase of common stock

 

(394

)

 

 

 

 

 

(4,156

)

 

 

(394

)

 

 

(4,156

)

Repayment of long-term debt

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,000

)

Other, net

 

(1,117

)

 

 

(838

)

 

 

(1,023

)

 

 

(1,955

)

 

 

(2,094

)

Net cash from financing activities

 

(37,469

)

 

 

(36,800

)

 

 

(35,703

)

 

 

(74,269

)

 

 

(70,298

)

Change in cash, cash equivalents and restricted cash

 

(6,257

)

 

 

(2,557

)

 

 

40,540

 

 

 

(8,814

)

 

 

219,122

 

Cash, cash equivalents and restricted cash, beginning

 

343,034

 

 

 

345,591

 

 

 

475,354

 

 

 

345,591

 

 

 

296,772

 

Cash, cash equivalents and restricted cash, ending1

$

336,777

 

 

$

343,034

 

 

$

515,894

 

 

$

336,777

 

 

$

515,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Includes $5.6 million, $17.4 million and $4.7 million at June 30, 2023, March 31, 2023 and June 30, 2022, respectively, that were or are intended to be reinvested in timber and timberlands and classified as restricted cash in Other current and long-term assets in the Condensed Consolidated Balance Sheets.

 

 

 

 

 

 

 

7

 


 

 

 

 

 

 

8

 


 

 

 

PotlatchDeltic Corporation

Segment Information

Unaudited

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(in thousands)

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

$

88,617

 

 

$

115,238

 

 

$

105,486

 

 

$

203,855

 

 

$

229,143

 

Wood Products

 

167,669

 

 

 

152,795

 

 

 

266,633

 

 

 

320,464

 

 

 

562,375

 

Real Estate

 

17,064

 

 

 

23,863

 

 

 

26,736

 

 

 

40,927

 

 

 

60,801

 

 

 

273,350

 

 

 

291,896

 

 

 

398,855

 

 

 

565,246

 

 

 

852,319

 

Intersegment Timberlands revenues

 

(27,243

)

 

 

(33,934

)

 

 

(39,258

)

 

 

(61,177

)

 

 

(81,372

)

Other intersegment revenues

 

(6

)

 

 

 

 

 

 

 

 

(6

)

 

 

 

Consolidated revenues

$

246,101

 

 

$

257,962

 

 

$

359,597

 

 

$

504,063

 

 

$

770,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Adjusted EBITDDA1

 

 

 

 

 

 

 

 

 

 

Timberlands

$

29,316

 

 

$

46,639

 

 

$

57,890

 

 

$

75,955

 

 

$

134,324

 

Wood Products

 

11,967

 

 

 

(31

)

 

 

107,256

 

 

 

11,936

 

 

 

257,207

 

Real Estate

 

12,237

 

 

 

19,465

 

 

 

21,816

 

 

 

31,702

 

 

 

51,940

 

Corporate

 

(10,521

)

 

 

(10,741

)

 

 

(13,912

)

 

 

(21,262

)

 

 

(23,496

)

Eliminations and adjustments

 

2,446

 

 

 

2,445

 

 

 

2,120

 

 

 

4,891

 

 

 

757

 

Total Adjusted EBITDDA

 

45,445

 

 

 

57,777

 

 

 

175,170

 

 

 

103,222

 

 

 

420,732

 

Interest expense, net2

 

(7,613

)

 

 

(199

)

 

 

(7,419

)

 

 

(7,812

)

 

 

(10,313

)

Depreciation, depletion and amortization

 

(27,087

)

 

 

(31,764

)

 

 

(20,007

)

 

 

(58,851

)

 

 

(39,509

)

Basis of real estate sold

 

(4,884

)

 

 

(10,631

)

 

 

(7,325

)

 

 

(15,515

)

 

 

(18,179

)

CatchMark merger-related expenses

 

(244

)

 

 

(2,209

)

 

 

 

 

 

(2,453

)

 

 

 

Gain on fire damage

 

23,110

 

 

 

 

 

 

9,868

 

 

 

23,110

 

 

 

9,592

 

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,165

)

Non-operating pension and other postretirement employee benefits

 

(229

)

 

 

(228

)

 

 

(1,809

)

 

 

(457

)

 

 

(3,738

)

(Loss) gain on disposal of fixed assets

 

(21

)

 

 

 

 

 

13

 

 

 

(21

)

 

 

16

 

Other

 

258

 

 

 

10

 

 

 

 

 

 

268

 

 

 

 

Income before income taxes

$

28,735

 

 

$

12,756

 

 

$

148,491

 

 

$

41,491

 

 

$

344,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

$

15,895

 

 

$

20,461

 

 

$

11,563

 

 

$

36,356

 

 

$

23,724

 

Wood Products

 

10,948

 

 

 

11,035

 

 

 

8,136

 

 

 

21,983

 

 

 

15,157

 

Real Estate

 

121

 

 

 

156

 

 

 

173

 

 

 

277

 

 

 

343

 

Corporate

 

123

 

 

 

112

 

 

 

135

 

 

 

235

 

 

 

285

 

 

 

27,087

 

 

 

31,764

 

 

 

20,007

 

 

 

58,851

 

 

 

39,509

 

Bond discounts and deferred loan fees2

 

409

 

 

 

409

 

 

 

372

 

 

 

818

 

 

 

744

 

Total depreciation, depletion and amortization

$

27,496

 

 

$

32,173

 

 

$

20,379

 

 

$

59,669

 

 

$

40,253

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold

 

 

 

 

 

 

 

 

 

 

 

Real Estate

$

4,887

 

 

$

10,631

 

 

$

7,328

 

 

$

15,518

 

 

$

18,188

 

Eliminations and adjustments

 

(3

)

 

 

 

 

 

(3

)

 

 

(3

)

 

 

(9

)

Total basis of real estate sold

$

4,884

 

 

$

10,631

 

 

$

7,325

 

 

$

15,515

 

 

$

18,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA below.

2 Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations.

 

 

9

 


 

 

 

PotlatchDeltic Corporation

Reconciliations

Unaudited

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

(in thousands, except per share amount)

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Total Adjusted EBITDDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

22,306

 

 

$

16,260

 

 

$

120,222

 

 

$

38,566

 

 

$

284,102

 

Interest expense, net

 

 

7,613

 

 

 

199

 

 

 

7,419

 

 

 

7,812

 

 

 

10,313

 

Income taxes

 

 

6,429

 

 

 

(3,504

)

 

 

28,269

 

 

 

2,925

 

 

 

60,334

 

Depreciation, depletion and amortization

 

 

27,087

 

 

 

31,764

 

 

 

20,007

 

 

 

58,851

 

 

 

39,509

 

Basis of real estate sold

 

 

4,884

 

 

 

10,631

 

 

 

7,325

 

 

 

15,515

 

 

 

18,179

 

CatchMark merger-related expenses

 

 

244

 

 

 

2,209

 

 

 

 

 

 

2,453

 

 

 

 

Gain on fire damage

 

 

(23,110

)

 

 

 

 

 

(9,868

)

 

 

(23,110

)

 

 

(9,592

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,165

 

Non-operating pension and other postretirement benefit costs

 

 

229

 

 

 

228

 

 

 

1,809

 

 

 

457

 

 

 

3,738

 

Loss (gain) on disposal of fixed assets

 

 

21

 

 

 

 

 

 

(13

)

 

 

21

 

 

 

(16

)

Other

 

 

(258

)

 

 

(10

)

 

 

 

 

 

(268

)

 

 

 

Total Adjusted EBITDDA

 

$

45,445

 

 

$

57,777

 

 

$

175,170

 

 

$

103,222

 

 

$

420,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

22,306

 

 

$

16,260

 

 

$

120,222

 

 

$

38,566

 

 

$

284,102

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

244

 

 

 

2,209

 

 

 

 

 

 

2,453

 

 

 

 

Gain on fire damage

 

 

(17,333

)

 

 

 

 

 

(7,351

)

 

 

(17,333

)

 

 

(7,146

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,553

 

Adjusted Net Income

 

$

5,217

 

 

$

18,469

 

 

$

112,871

 

 

$

23,686

 

 

$

287,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income Per Diluted Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per diluted share (GAAP)

 

$

0.28

 

 

$

0.20

 

 

$

1.72

 

 

$

0.48

 

 

$

4.07

 

Special items after tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CatchMark merger-related expenses

 

 

 

 

 

0.03

 

 

 

 

 

 

0.03

 

 

 

 

Gain on fire damage

 

 

(0.22

)

 

 

 

 

 

(0.11

)

 

 

(0.22

)

 

 

(0.10

)

Pension settlement charge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.15

 

Adjusted Net Income Per Diluted Share

 

$

0.06

 

 

$

0.23

 

 

$

1.61

 

 

$

0.29

 

 

$

4.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 


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Document And Entity Information
Jul. 31, 2023
Cover [Abstract]  
Entity Registrant Name PotlatchDeltic Corporation
Document Type 8-K
Amendment Flag false
Entity Central Index Key 0001338749
Document Period End Date Jul. 31, 2023
Entity Emerging Growth Company false
Entity File Number 001-32729
Entity Incorporation, State Country Code DE
Entity Tax Identification Number 82-0156045
Entity Address, Address Line One 601 W. First Avenue
Entity Address, Address Line Two Suite 1600
Entity Address, City or Town Spokane
Entity Address, State or Province WA
Entity Address, Postal Zip Code 99201
City Area Code 509
Local Phone Number 835-1500
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock ($1 par value)
Trading Symbol PCH
Security Exchange Name NASDAQ
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