UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
(Mark One)
For the quarterly period ended
or
For the transition period from to
Commission File Number
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
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(Address of principal executive offices) |
(Zip Code) |
(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 |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ |
Accelerated Filer |
☐ |
Non-accelerated Filer |
☐ |
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Smaller Reporting Company |
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Emerging Growth Company |
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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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No
The number of shares of common stock of the registrant outstanding as of August 1, 2023, was
POTLATCHDELTIC CORPORATION AND CONSOLIDATED SUBSIDIARIES
Table of Contents
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Page |
PART I. - FINANCIAL INFORMATION |
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ITEM 1. |
Financial Statements (unaudited) |
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3 |
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4 |
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5 |
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6 |
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8 |
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Index for the Notes to Condensed Consolidated Financial Statements |
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10 |
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ITEM 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
22 |
ITEM 3. |
36 |
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ITEM 4. |
36 |
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PART II. - OTHER INFORMATION |
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ITEM 1. |
37 |
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ITEM 1A. |
37 |
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ITEM 2. |
37 |
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ITEM 5. |
37 |
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ITEM 6. |
38 |
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39 |
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Part I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PotlatchDeltic Corporation and Consolidated Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands, except per share amounts) |
2023 |
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2022 |
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2023 |
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2022 |
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Revenues |
$ |
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$ |
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$ |
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$ |
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Costs and expenses: |
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Cost of goods sold |
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Selling, general and administrative expenses |
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CatchMark merger-related expenses |
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Gain on fire damage |
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( |
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( |
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( |
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Operating income |
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Interest expense, net |
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( |
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( |
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( |
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Pension settlement charge |
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( |
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Non-operating pension and other postretirement employee benefit costs |
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( |
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( |
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( |
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Other |
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Income before income taxes |
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Income taxes |
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( |
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( |
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( |
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( |
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Net income |
$ |
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$ |
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$ |
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$ |
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Net income per share: |
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Basic |
$ |
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$ |
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$ |
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$ |
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Diluted |
$ |
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$ |
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$ |
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$ |
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Dividends per share |
$ |
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$ |
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$ |
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$ |
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Weighted-average shares outstanding |
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Basic |
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Diluted |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
PotlatchDeltic Corporation and Consolidated Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands) |
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2023 |
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2022 |
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2023 |
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2022 |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Other comprehensive income (loss), net of tax: |
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Pension and other postretirement employee benefits |
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( |
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( |
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Cash flow hedges |
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Other comprehensive income (loss), net of tax |
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( |
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Comprehensive income |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
PotlatchDeltic Corporation and Consolidated Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except per share amounts) |
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June 30, 2023 |
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December 31, 2022 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Customer receivables, net |
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Inventories, net |
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Other current assets |
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Total current assets |
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Property, plant and equipment, net |
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Investment in real estate held for development and sale |
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Timber and timberlands, net |
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Intangible assets, net |
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Other long-term assets |
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Total assets |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
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$ |
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Current portion of long-term debt |
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Current portion of pension and other postretirement employee benefits |
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Total current liabilities |
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Long-term debt |
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Pension and other postretirement employee benefits |
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Deferred tax liabilities, net |
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Other long-term obligations |
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Total liabilities |
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Stockholders' equity: |
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Preferred stock, authorized |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
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( |
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( |
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Accumulated other comprehensive income |
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Total stockholders’ equity |
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Total liabilities and stockholders' equity |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
5
PotlatchDeltic Corporation and Consolidated Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
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Six Months Ended June 30, |
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(in thousands) |
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2023 |
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2022 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net income |
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$ |
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$ |
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Adjustments to reconcile net income to net cash from operating activities: |
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Depreciation, depletion and amortization |
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Basis of real estate sold |
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Change in deferred taxes |
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( |
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( |
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Pension and other postretirement employee benefits |
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Pension settlement charge |
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— |
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Equity-based compensation expense |
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Gain on fire damage |
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( |
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( |
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Interest received under swaps with other-than-insignificant financing element |
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( |
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— |
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Other, net |
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( |
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Change in working capital and operating-related activities, net |
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( |
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Real estate development expenditures |
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( |
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( |
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Funding of pension and other postretirement employee benefits |
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( |
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( |
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Proceeds from insurance recoveries |
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Net cash from operating activities |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Property, plant and equipment additions |
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( |
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( |
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Timberlands reforestation and roads |
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( |
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( |
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Acquisition of timber and timberlands |
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( |
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( |
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Interest received under swaps with other-than-insignificant financing element |
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— |
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Other, net |
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( |
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Net cash from investing activities |
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( |
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( |
) |
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Distributions to common stockholders |
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( |
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( |
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Repurchase of common stock |
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( |
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( |
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Repayment of long-term debt |
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— |
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( |
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Other, net |
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( |
) |
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( |
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Net cash from financing activities |
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( |
) |
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( |
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Change in cash, cash equivalents and restricted cash |
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( |
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Cash, cash equivalents and restricted cash at beginning of period |
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Cash, cash equivalents and restricted cash at end of period |
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$ |
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$ |
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NONCASH INVESTING AND FINANCING ACTIVITIES |
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Accrued property, plant and equipment additions |
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$ |
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$ |
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Accrued timberlands reforestation and roads |
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$ |
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$ |
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6
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the amounts shown above in the Condensed Consolidated Statements of Cash Flows.
(in thousands) |
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June 30, 2023 |
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June 30, 2022 |
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Cash and cash equivalents |
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$ |
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$ |
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Restricted cash included in long-term assets1 |
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Total cash, cash equivalents, and restricted cash |
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$ |
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$ |
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1 |
Amounts included in restricted cash represent proceeds held by a qualified intermediary that were or are intended to be reinvested in timber and timberlands. At June 30, 2023 and 2022, $ |
The accompanying notes are an integral part of these condensed consolidated financial statements.
7
PotlatchDeltic Corporation and Consolidated Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
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Common Stock |
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Additional Paid- |
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Accumulated |
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Accumulated Other |
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Total Stockholders' |
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(in thousands, except per share amounts) |
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Shares |
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Amount |
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in Capital |
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Deficit |
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Income |
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Equity |
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Balance, December 31, 2022 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Shares issued for stock compensation |
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( |
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— |
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— |
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— |
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Equity-based compensation expense |
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— |
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— |
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— |
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— |
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Pension plans and OPEB obligations, net of tax |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Cash flow hedges, net of tax |
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— |
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— |
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— |
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— |
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( |
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( |
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Common dividends, $ |
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— |
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— |
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— |
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( |
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— |
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( |
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Other transactions, net |
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— |
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— |
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( |
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— |
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( |
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Balance, March 31, 2023 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Shares issued for stock compensation |
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( |
) |
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— |
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— |
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— |
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Equity-based compensation expense |
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— |
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— |
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— |
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— |
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Repurchase of common stock |
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( |
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( |
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— |
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( |
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— |
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( |
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Pension plans and OPEB obligations, net of tax |
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— |
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— |
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— |
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— |
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( |
) |
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( |
) |
Cash flow hedges, net of tax |
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— |
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— |
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— |
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— |
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Dividends on common stock, $ |
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— |
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— |
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— |
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( |
) |
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— |
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( |
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Other transactions, net |
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— |
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— |
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( |
) |
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— |
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— |
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Balance, June 30, 2023 |
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$ |
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$ |
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$ |
( |
) |
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$ |
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$ |
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Common Stock |
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Additional Paid- |
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Accumulated |
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Accumulated Other |
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Total Stockholders' |
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(in thousands, except per share amounts) |
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Shares |
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Amount |
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in Capital |
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Deficit |
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Income (Loss) |
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Equity |
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Balance, December 31, 2021 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
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Net income |
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— |
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— |
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— |
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— |
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Shares issued for stock compensation |
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( |
) |
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— |
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— |
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— |
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Equity-based compensation expense |
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— |
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— |
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— |
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— |
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Pension plans and OPEB obligations, net of tax |
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— |
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— |
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— |
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— |
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Cash flow hedges, net of tax |
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— |
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— |
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— |
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— |
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Common dividends, $ |
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— |
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— |
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— |
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( |
) |
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— |
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( |
) |
Other transactions, net |
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— |
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— |
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( |
) |
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( |
) |
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— |
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( |
) |
Balance, March 31, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Shares issued for stock compensation |
|
|
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Equity-based compensation expense |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Repurchase of common stock |
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Pension plans and OPEB obligations, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Cash flow hedges, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Dividends on common stock, $ |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Other transactions, net |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
Balance, June 30, 2022 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
8
INDEX FOR THE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
10 |
|
11 |
|
13 |
|
13 |
|
14 |
|
15 |
|
16 |
|
16 |
|
17 |
|
18 |
|
19 |
|
Note 12: Components of Accumulated Other Comprehensive (Loss) Income |
20 |
20 |
|
21 |
9
Notes to Condensed Consolidated Financial Statements
NOTE 1. BASIS OF PRESENTATION
General
PotlatchDeltic Corporation and its subsidiaries (collectively referred to in this report as the company, us, we or our) is a leading timberland Real Estate Investment Trust (REIT) with operations in nine states. We are engaged in activities associated with timberland management, including the sale of timber, the management of nearly
Condensed Consolidated Financial Statements
The accompanying unaudited Condensed Consolidated Financial Statements provide an overall view of our results and financial condition and reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Condensed Consolidated Financial Statements, such adjustments are of a normal, recurring nature. Intercompany transactions and accounts have been eliminated in consolidation. The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain disclosures normally provided in accordance with accounting principles generally accepted in the United States (GAAP) have been omitted. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on February 16, 2023. Results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the full year.
Increased Authorized Shares of Common Stock
On May 1, 2023, the stockholders of the company approved an amendment (the “Amendment”) to the Company’s Third Restated Certificate of Incorporation (the “Charter”) to increase the number of authorized shares of the company’s common stock from
Use of Estimates
The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and requires judgments affecting the amounts reported in the financial statements and the accompanying notes. Actual results may differ materially from our estimates.
Recent Accounting Standards
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies and are adopted by the company as of the specified effective date. For the six months ended June 30, 2023, there were no new accounting pronouncements that management believes materially affect the company’s present or future results of operations, overall financial condition, liquidity or disclosures.
10
NOTE 2. SEGMENT INFORMATION
Our operations are organized into
Our Timberlands segment supplies our Wood Products segment with a portion of its wood fiber needs. These intersegment revenues are based on prevailing market prices and typically represent a sizeable portion of the Timberlands segment’s total revenues. Our other segments generally do not generate intersegment revenues. These intercompany transactions are eliminated in consolidation.
The reportable segments follow the same accounting policies used for our Condensed Consolidated Financial Statements, with the exception of the valuation of inventories, which are reported using the average cost method for purposes of reporting segment results.
The following table presents our revenues by major product:
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Timberlands |
|
|
|
|
|
|
|
|
|
|
|
||||
Northern region |
|
|
|
|
|
|
|
|
|
|
|
||||
Sawlogs |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Pulpwood |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Total Northern revenues |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Southern region |
|
|
|
|
|
|
|
|
|
|
|
||||
Sawlogs |
|
|
|
|
|
|
|
|
|
|
|
||||
Pulpwood |
|
|
|
|
|
|
|
|
|
|
|
||||
Stumpage |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Total Southern revenues |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Timberlands revenues |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Wood Products |
|
|
|
|
|
|
|
|
|
|
|
||||
Lumber |
|
|
|
|
|
|
|
|
|
|
|
||||
Residuals and Panels |
|
|
|
|
|
|
|
|
|
|
|
||||
Total Wood Products revenues |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real Estate |
|
|
|
|
|
|
|
|
|
|
|
||||
Rural real estate |
|
|
|
|
|
|
|
|
|
|
|
||||
Development real estate |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Total Real Estate revenues |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total segment revenues |
|
|
|
|
|
|
|
|
|
|
|
||||
Intersegment Timberlands revenues1 |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Other intersegment revenues |
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Total consolidated revenues |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1 |
Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. |
11
Management uses Adjusted EBITDDA to evaluate the operating performance and effectiveness of operating strategies of our segments and allocation of resources to them. EBITDDA is calculated as net income before interest expense, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies.
The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Adjusted EBITDDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Timberlands |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Wood Products |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Eliminations and adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net1 |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Depreciation, depletion and amortization |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Basis of real estate sold |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
CatchMark merger-related expenses |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Gain on fire damage |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pension settlement charge |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Non-operating pension and other postretirement employee benefit costs |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
(Loss) gain on disposal of fixed assets |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation, depletion and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Timberlands |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Wood Products |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bond discounts and deferred loan fees1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total depreciation, depletion and amortization |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basis of real estate sold: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Real Estate |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Eliminations and adjustments |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total basis of real estate sold |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1 |
Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations. |
12
NOTE 3. EARNINGS PER SHARE
The following table reconciles the number of shares used in calculating basic and diluted earnings per share:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Basic weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Incremental shares due to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Performance shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Restricted stock units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include future compensation cost associated with the stock award.
For the three and six months ended June 30, 2023, there were approximately
Share Repurchase Program
On August 30, 2018, our board of directors authorized management to repurchase up to $
On August 31, 2022, our board of directors authorized management to repurchase up to $
Shares under the 2022 Repurchase Program may be repurchased in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 (the Trading Plan), or through privately negotiated transactions. The timing, manner, price and amount of repurchases will be determined according to, and subject to, the terms of the Trading Plan, and, subject to the terms of the Trading Plan, the 2022 Repurchase Program may be suspended, terminated or modified at any time for any reason. During the three and six months ended June 30, 2023, we repurchased
We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability to account for repurchases that have not been cash settled. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit.
NOTE 4. CERTAIN BALANCE SHEET COMPONENTS
Inventories
(in thousands) |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
Logs |
|
$ |
|
|
$ |
|
||
Lumber, panels and veneer |
|
|
|
|
|
|
||
Materials and supplies |
|
|
|
|
|
|
||
Total inventories |
|
|
|
|
|
|
||
Less: LIFO reserve |
|
|
( |
) |
|
|
( |
) |
Total inventories, net |
|
$ |
|
|
$ |
|
||
13
Property, plant and equipment
(in thousands) |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
Property, plant and equipment |
|
$ |
|
|
$ |
|
||
Less: accumulated depreciation |
|
|
( |
) |
|
|
( |
) |
Total property, plant and equipment, net |
|
$ |
|
|
$ |
|
||
Ola, Arkansas sawmill fire
On June 13, 2021, a fire occurred at our Ola, Arkansas sawmill. There were no injuries or environmental issues from the fire. The damage was principally limited to the large log primary breakdown area of the mill. The new equipment has been installed and the large log line restarted in September 2022. We have adequate property damage and business interruption insurance and expect to be reimbursed for both property damage and business interruption losses by our insurance carriers, subject to a $
Timber and timberlands
(in thousands) |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
Timber and timberlands |
|
$ |
|
|
$ |
|
||
Logging roads |
|
|
|
|
|
|
||
Total timber and timberlands, net |
|
$ |
|
|
$ |
|
||
Accounts payable and accrued liabilities
(in thousands) |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
Accrued payroll and benefits |
|
$ |
|
|
$ |
|
||
Accounts payable |
|
|
|
|
|
|
||
Deferred revenue1 |
|
|
|
|
|
|
||
Accrued taxes |
|
|
|
|
|
|
||
Accrued interest |
|
|
|
|
|
|
||
Other current liabilities |
|
|
|
|
|
|
||
Total accounts payable and accrued liabilities |
|
$ |
|
|
$ |
|
||
1 |
Deferred revenue predominately relates to hunting and other access rights on our timberlands, payments received for lumber shipments where control of goods has not transferred, member-related activities at an owned country club and any post-close obligations for real estate sales. These contract liabilities are recognized over the term of the contracts, which is typically twelve months or less, except for country club initiation fees which are recognized over the average life of club membership. |
NOTE 5. DEBT
TERM LOANS
At June 30, 2023, our total outstanding principal on our long-term debt of $
CREDIT AGREEMENT
On May 18, 2023, we entered into a First Amendment to the Third Amended and Restated Credit Agreement (Amended Credit Agreement). The Amended Credit Agreement provides for loans based on the Secured Overnight Financing Rate (“SOFR”) instead of the London Inter-Bank Offered Rate (“LIBOR”), provides us the option to borrow based on a daily SOFR or term SOFR basis, and provides mechanics relating to the transition from the use of SOFR to a replacement benchmark rate upon the occurrence of certain transition events.
14
The Amended Credit Agreement provides for a $
NOTE 6. DERIVATIVE INSTRUMENTS
From time to time, we enter into derivative financial instruments to manage certain cash flow and fair value risks. Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. All our cash flow hedges are expected to be highly effective in achieving offsetting cash flows attributable to the hedged interest rate risk through the term of the hedges.
At June 30, 2023, we have interest rate swaps associated with $
The gross fair values of derivative instruments at June 30, 2023 and December 31, 2022, were $
The following table details the effect of derivatives on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income:
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
Location |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Derivatives designated in cash flow hedging relationships: |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income recognized in other comprehensive income (loss), net of tax |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax1 |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1 Realized gains and losses on interest rate contracts consist of realized net cash received or paid and interest accruals on the interest rate swaps during the periods in addition to amortization of amounts out of other comprehensive (loss) income related to certain terminated hedges and adjustments to interest expense resulting from amortization of inception value of certain off-market designated hedges.
At June 30, 2023, the amount of net gains expected to be reclassified into earnings in the next 12 months is approximately $
15
NOTE 7. FAIR VALUE MEASUREMENTS
The following table presents the estimated fair values of our financial instruments:
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||||||||||
(in thousands) |
|
Carrying |
|
|
Fair |
|
|
Carrying |
|
|
Fair |
|
||||
Derivative assets related to interest rate swaps (Level 2) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Long-term debt, including current portion (Level 2): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Term loans |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Revenue bonds |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total long-term debt1 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Company owned life insurance asset (COLI) (Level 3) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1 |
The carrying amount of long-term debt includes principal and unamortized discounts. |
The fair value of interest rate swaps is determined using a discounted cash flow analysis, based on third-party sources, on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity and uses observable market-based inputs, including interest rate forward curves.
The fair value of our long-term debt is estimated based upon quoted market prices for similar debt issues or estimated based on average market prices for comparable debt when there is no quoted market price.
The contract value of our company owned life insurance is based on the amount at which it could be redeemed and, accordingly, approximates fair value.
We believe that our other financial instruments, including cash and cash equivalents, restricted cash, receivables and payables have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to the short-term nature of these instruments.
NOTE 8. EQUITY-BASED COMPENSATION
We issue new shares of common stock to settle performance stock awards (PSAs), restricted stock units (RSUs) and deferred compensation stock equivalent units. At June 30, 2023, approximately
Share-based compensation activity during the six months ended June 30, 2023, included the following:
|
|
Granted |
|
|
Vested |
|
|
Forfeited |
|
|||
Performance Share Awards (PSAs) |
|
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|
|
|
|
|
|
|
|||
Restricted Stock Units (RSUs) |
|
|
|
|
|
|
|
|
|
|||
Approximately
The following details compensation expense and the related income tax benefit for company specific equity-based awards:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Equity-based compensation expense: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Performance share awards |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Restricted stock units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation stock equivalent units expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total equity-based compensation expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total tax benefit recognized for equity-based expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
16
Performance Share Awards
The weighted average grant date fair value of PSAs granted in 2023 was $
The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards granted in 2023:
Stock price as of valuation date |
|
$ |
|
|
Risk-free rate |
|
|
% |
|
Expected volatility |
|
|
% |
|
Expected dividend yield1 |
|
|
|
|
Expected term (years) |
|
|
|
1 |
Full dividend reinvestment assumed. |
Restricted Stock Units
The weighted average fair value of all RSUs granted during the six months ended June 30, 2023, was $
NOTE 9. INCOME TAXES
As a REIT, we generally are not subject to federal and state corporate income taxes on income from investments in real estate, including our timberlands, that we distribute to our shareholders. We conduct certain activities through our PotlatchDeltic taxable REIT subsidiaries (TRS) which are subject to corporate level federal and state income taxes. These activities are principally comprised of our wood products manufacturing operations and certain real estate investments. Therefore, income tax expense or benefit is primarily due to pre-tax book income or loss of the TRS, as well as permanent book versus tax differences and discrete items.
During the three and six months ended June 30, 2023, we reduced our federal effected deferred blended state tax rate. This reduction was a result of changes in tax laws enacted during the quarter in certain states in which our TRS subsidiaries operate. The effect of the change resulted in a $
17
NOTE 10. LEASES
We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.
The following table presents supplemental balance sheet information related to lease assets and liabilities:
(in thousands) |
Classification |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
Assets |
|
|
|
|
|
|
|
||
Operating lease assets |
|
$ |
|
|
$ |
|
|||
Finance lease assets1 |
|
|
|
|
|
|
|||
Total lease assets |
|
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
|
||
Current: |
|
|
|
|
|
|
|
||
Operating lease liabilities |
|
$ |
|
|
$ |
|
|||
Finance lease liabilities |
s |
|
|
|
|
|
|
||
Noncurrent: |
|
|
|
|
|
|
|
||
Operating lease liabilities |
|
|
|
|
|
|
|||
Finance lease liabilities |
|
|
|
|
|
|
|||
Total lease liabilities |
|
|
$ |
|
|
$ |
|
||
1 |
Finance lease assets are presented net of accumulated amortization of $ |
The following table presents the components of lease expense:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Operating lease costs1 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Finance lease costs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of leased assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net lease costs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1 |
Excludes short-term leases and variable lease costs, which are immaterial. |
The following table presents supplemental cash flow information related to leases:
|
|
|
Six Months Ended June 30, |
|
|||||
(in thousands) |
|
|
2023 |
|
|
2022 |
|
||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|||
Operating cash flows for operating leases |
|
$ |
|
|
$ |
|
|||
Operating cash flows for finance leases |
|
$ |
|
|
$ |
|
|||
Financing cash flows for finance leases |
|
$ |
|
|
$ |
|
|||
Leased assets exchanged for new lease liabilities: |
|
|
|
|
|
|
|||
Operating leases |
|
$ |
|
|
$ |
|
|||
Finance leases |
|
$ |
|
|
$ |
|
|||
|
|
18
NOTE 11. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS
The following table details the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB):
|
|
Three Months Ended June 30, |
|
|||||||||||||
|
|
Pension |
|
|
OPEB |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Service cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expected return on plan assets |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Amortization of prior service cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of actuarial (gain) loss |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Total net periodic cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
Six Months Ended June 30, |
|
|||||||||||||
|
|
Pension |
|
|
OPEB |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Service cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expected return on plan assets |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Amortization of prior service cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of actuarial (gain) loss |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Net periodic cost before pension settlement charge |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pension settlement charge |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net periodic cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
During the six months ended June 30, 2023 and 2022, funding of pension and other postretirement employee benefit plans was $
Pension Annuitization
In March 2022, we transferred $
19
NOTE 12. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The following table details changes in amounts included in our Accumulated Other Comprehensive Income (Loss) (AOCI) by component on our Condensed Consolidated Balance Sheets, net of tax:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Pension and Other Postretirement Employee Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at beginning of period |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Unrecognized gains (losses) arising in AOCI during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Tax effect |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reclassifications from AOCI to earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pension settlement1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other1 |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Tax effect |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Net of tax amount |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Other reclassifications |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Balance at end of period |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Cash Flow Hedges |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at beginning of period |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrecognized gains arising in AOCI during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tax effect |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Reclassifications from AOCI to earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross2 |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Tax effect |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Net of tax amount |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other reclassifications |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at end of period |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accumulated other comprehensive income, end of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
1
2
See Note 11: Pension and Other Postretirement Employee Benefits and Note 6: Derivative Instruments for additional information.
NOTE 13. CATCHMARK MERGER
On September 14, 2022, CatchMark Timber Trust, Inc. (CatchMark) and CatchMark Timber Operating Partnership, L.P. (the Partnership) merged into a wholly owned subsidiary (Merger Sub) of PotlatchDeltic, pursuant to the terms of a merger agreement dated May 29, 2022, with the Merger Sub surviving the mergers. CatchMark owned approximately
As a result of the merger, we issued approximately
20
We accounted for the transaction as an asset acquisition as substantially all the value of the acquisition was concentrated in the acquired timber and timberlands. We allocated the cost of the acquisition to the net assets acquired based on their relative estimated fair value on the acquisition date. This resulted in an allocation of $
During the three and six months ended June 30, 2023, we incurred non-capitalizable merger costs in connection with the CatchMark merger of approximately $
NOTE 14. COMMITMENTS AND CONTINGENCIES
At any given time, we are subject to claims and actions incidental to the operations of our business. Based on information currently available, we do not expect that any sums we may receive or have to pay in connection with any legal proceeding would have a materially adverse effect on our consolidated financial position, operating results or net cash flow.
ENVIRONMENTAL MATTER
Pursuant to the 2002 Asset Purchase Agreement under which Sappi Cloquet LLC (Sappi) purchased our Cloquet, Minnesota pulp and paper mill (the Plant), we agreed to indemnify Sappi from certain environmental liabilities accruing from the pre-sale operations of the Plant. In February 2021, we were notified by Sappi that the Environmental Protection Agency (EPA) contacted Sappi about the opportunity to participate with the Minnesota Pollution Control Agency (MPCA) and the EPA in a voluntary federal sediment remediation program under the Great Lakes Legacy Act (GLLA) for a project in the St. Louis River Area of Concern, which runs from Cloquet, Minnesota to Lake Superior. The GLLA is a sediment remediation program administered by EPA that provides up to
The identified sediment remediation project at Thomson Reservoir is downstream from the Plant. The Plant was identified for potential partnership with EPA and MPCA on this project based on the Plant’s historic direct discharges of wastewater and leachate from the Plant’s landfill into the St. Louis River prior to the re-routing of the discharges in 1979 to a public wastewater treatment facility. After multiple discussions with the MPCA and completion of our extensive due diligence on this matter, we informed the MPCA in January 2023 that we were interested in voluntarily participating in the program, subject to an equitable division with the MPCA of the NFS share of the costs.
We accrued $
21
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Information
This report contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, expectations regarding economic conditions, including interest rates and our ability to offset the impact of inflation; expected seasonal fluctuations in our business segments; expected effectiveness of our hedging instruments and swaps; amount of net earnings on cash flow hedges expected to be reclassified into earnings in the next 12 months; expected return on pension assets; anticipated share repurchases and dividend payments; anticipated cash balances, cash flows from operations and expected liquidity; potential uses of our credit facility; anticipated insurance coverage for the Ola, Arkansas sawmill fire and expected timing to receive the remaining insurance proceeds; expectations regarding debt obligations, interest payments and debt refinancing; maintenance of our investment grade credit rating; expectations regarding the U.S. housing market and home repair and remodeling activity; the lumber and log markets and pricing; lumber shipment volumes; timber harvest volumes; rural real estate and real estate development sales; sufficiency of cash and any necessary borrowings to meet operating requirements; expected 2023 and future capital expenditures; costs associated with the expansion and modernization of our Waldo, Arkansas sawmill, the expected timing of completion of the project, and expected increases in productivity and reduction in operating costs resulting from the project; expectations regarding our ability to participate in the development of the natural climate solutions and forest carbon sequestration markets; and similar matters. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words such as expects, may, could, should, will, believes, anticipates, estimates, projects, intends, plans, targets or approximately, or similar words or terminology. These forward-looking statements reflect our current views regarding future events based on estimates and assumptions and are therefore subject to known and unknown risks and uncertainties and are not guarantees of future performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:
22
For a discussion of some of the factors that may affect our business, results and prospects and a nonexclusive listing of forward-looking statements, refer to Cautionary Statement Regarding Forward-Looking Information on page 1 and Risk Factors in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022. Investors should not interpret the disclosure of a risk to imply that the risk has not already materialized. Forward-looking statements contained in this report present our views only as of the date of this report. Except as required under applicable law, we do not intend to issue updates concerning any future revisions of our views to reflect events or circumstances occurring after the date of this report.
Our Company
We are a leading timberland REIT with ownership of nearly 2.2 million acres of timberland. We also own six sawmills and an industrial grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program.
Our operations are organized into three business segments: Timberlands, Wood Products and Real Estate. Our Timberlands segment supplies our Wood Products segment with a portion of its wood fiber needs. These intersegment revenues are based on prevailing market prices and typically represent a sizeable portion of the Timberlands segment’s total revenues. Our other segments generally do not generate intersegment revenues. In the discussion of our consolidated results of operations, our revenues and expenses are reported after elimination of intersegment revenues and expenses. In the Business Segment Results discussion below, each segment’s revenues and expenses, as applicable, are presented before elimination of intersegment revenues and expenses.
The operating results of our Timberlands, Wood Products and Real Estate business segments have been and will continue to be affected by the cyclical nature of the forest products industry. Log and pulpwood sales volumes in our Timberlands segment are typically lower in the first half of each year as winter rains in the Southern region and spring thaw in the Northern region limit timber harvesting operations due to softened roadbeds and wet logging conditions that restrict access to logging sites. The third quarter is typically our Timberlands segment's strongest production quarter. Demand for our manufactured wood products typically decreases in the winter months when construction activity is slower, while demand typically increases during the spring, summer and fall when construction activity is generally higher. Rural real estate dispositions and acquisitions can be adversely affected when access to any properties to be sold or considered for acquisition are limited due to adverse weather conditions. Development real estate sales at Chenal Valley occur throughout the year, though historically most sales take place in the second half of the year as builders prepare for the following year's spring and summer traditional home building and buying season. The timing of development real estate sales can also be impacted by contractor availability needed to complete infrastructure and other improvements prior to bringing developed real estate to market.
Our business segments have been and will continue to be influenced by a variety of other factors, including tariffs, quotas and trade agreements, changes in timber prices and in harvest levels from our timberlands, competition, timberland valuations, demand for our non-strategic timberland for higher and better use purposes, lumber prices, weather conditions, disruptions or inefficiencies in our supply chain including the availability of transportation, the efficiency and level of capacity utilization of our Wood Products manufacturing operations, changes in our principal expenses such as log costs, inflation, asset dispositions or acquisitions, impact of pandemics (such as COVID-19 and its variants), fires (such as the Ola, Arkansas sawmill fire and fires on our timberlands), other natural disasters and other factors.
Additionally, governments and businesses across the globe are taking action on climate change and are making significant commitments towards reducing greenhouse gas emissions to net zero. Achieving these commitments will require governments and companies to take major steps to modify operations, invest in low-carbon activities and purchase offsets to reduce environmental impacts. We believe we are well positioned to help entities achieve these commitments through natural climate solutions, including forest carbon sequestration and carbon capture and selling pulpwood and sawmill residuals for green energy production.
Non-GAAP Measures
To supplement our financial statements presented in accordance with generally accepted accounting principles in the United States (GAAP), we present certain non-GAAP measures on a consolidated basis, including Adjusted EBITDDA and Cash Available for Distribution (CAD), which are defined and further explained and reconciled to the nearest GAAP measure in the Liquidity and Performance Measures section below. Our definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP.
Adjusted EBITDDA is a non-GAAP measure that management uses in evaluating performance and allocating resources between segments, and that investors can use to evaluate the operational performance of the assets under management. It removes the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis. This measure should not be considered in isolation from and is not intended to represent an alternative to our
23
results reported in accordance with GAAP. Management believes that this non-GAAP measure, when read in conjunction with our GAAP financial statements, provides useful information to investors by facilitating the comparability of our ongoing operating results over the periods presented, the ability to identify trends in our underlying business and the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.
Our definition of EBITDDA and Adjusted EBITDDA may be different from similarly titled measures reported by other companies. We define EBITDDA as net income before interest expense, net, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. See Note 2: Segment Information in the Notes to the Condensed Consolidated Financial Statements for information related to the use of segment Adjusted EBITDDA.
Business and Economic Trends Affecting Our Operations
The demand for timber is directly affected by the underlying demand for lumber and other wood products, as well as by the demand for pulp, paper and packaging. Rising construction costs, a persistently tight labor pool, supply chain challenges and higher mortgage rates negatively impact the pace of housing starts and repair and remodel projects. Our Timberlands and Wood Products segments are impacted by both demand in the United States for new housing construction and repair and remodel of existing homes.
In July 2023, the U.S. Census bureau reported privately owned housing starts for June 2023 were 1.4 million on a seasonally adjusted annual basis, which was down 8.1% from June 2022. Higher interest rates, reduced affordability, inflation and general macroeconomic conditions in part have caused consumer confidence and building activity to decline. Additionally, actions by the U.S. Federal Reserve, the overall condition of the economy, and fluctuations in financial markets are all factors that influence long-term interest rates with the average 30-year fixed mortgage rate increasing during the past twelve months from approximately 5.7% at the end of June 2022 to approximately 6.71% at the end of June 2023.
However, there are recent signs of improvement as large homebuilders have reported an increase in new home orders. This has translated into higher single-family housing starts, as June 2023 was the second month in a row where single-family starts were above 900,000 units. Also, the National Association of Home Builders (NAHB) reported the NAHB/Wells Fargo Housing Market Index (HMI) was 56 in July 2023, the seventh straight month builder confidence has increased and the highest since June 2022. Overall, we believe long-term underlying housing fundamentals remain favorable, due to a shortage of homes, lower than historical-average existing inventory for sale and a large millennial demographic in their prime home-buying years.
The repair and remodel sector, which is the largest market segment for lumber demand, continues to exhibit favorable underlying fundamentals, including healthy household balance sheets, strong home center takeaway and an aging existing housing stock supporting repair and remodel demand. Also, in the current higher interest rate environment, prospective homebuyers that are locked in with lower mortgage rates on their existing home are more likely to stay and remodel versus move into a new home.
Inflation, which appears to have peaked in 2022, impacted our business during the first half of the year. The annual inflation rate in the U.S. continued to slow in June 2023 to a 3.0% unadjusted twelve-month average, while the Producer Price Index (final demand) slowed to 0.1% on an unadjusted basis compared to 6.2% at the end of December 2022.
In our Timberlands segment, a significant portion of our Idaho sawlog prices are indexed on a four-week lag to lumber prices. The Northern region experienced a decrease in sawlog prices during the first half of the year because of lower indexed lumber prices compared to the prior year. Our total harvest volume of 1.6 million tons in the second quarter of 2023 was higher than the second quarter of 2022, primarily due to the addition of the CatchMark timberlands in September 2022 and more favorable harvest conditions in Idaho. We expect to harvest between 1.9 and 2.0 million tons during the third quarter of 2023, with approximately 82% of the volume in the Southern region.
During the second quarter of 2021 we experienced a fire at our Ola, Arkansas sawmill. The damage was principally limited to the large log primary breakdown machine center which significantly impacted the sawmill’s lumber production. We installed new equipment and the large log line restarted in September 2022.
In our Wood Products segment, lumber shipments increased compared to the prior year primarily from greater lumber production at our Ola sawmill. We shipped 280 million board feet of lumber during the second quarter of 2023 and expect to ship between 270 and 280 million board feet of lumber during the third quarter of 2023.
Our Real Estate segment benefitted from strong Chenal Valley residential lot and commercial acre sales. We anticipate to sell approximately 2,600 acres of rural land and approximately 35 residential lots during the third quarter of 2023.
24
Consolidated Results
The following table sets forth changes in our Condensed Consolidated Statements of Operations. Our Business Segment Results provide a more detailed discussion of our segments:
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
(in thousands) |
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
||||||
Revenues |
$ |
246,101 |
|
|
$ |
359,597 |
|
|
$ |
(113,496 |
) |
|
$ |
504,063 |
|
|
$ |
770,947 |
|
|
$ |
(266,884 |
) |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of goods sold |
|
215,063 |
|
|
|
191,334 |
|
|
|
23,729 |
|
|
|
439,413 |
|
|
|
371,181 |
|
|
|
68,232 |
|
Selling, general and administrative expenses |
|
17,585 |
|
|
|
20,412 |
|
|
|
(2,827 |
) |
|
|
35,815 |
|
|
|
36,706 |
|
|
|
(891 |
) |
CatchMark merger-related expenses |
|
244 |
|
|
|
— |
|
|
|
244 |
|
|
|
2,453 |
|
|
|
— |
|
|
|
2,453 |
|
Gain on fire damage |
|
(23,110 |
) |
|
|
(9,868 |
) |
|
|
(13,242 |
) |
|
|
(23,110 |
) |
|
|
(9,592 |
) |
|
|
(13,518 |
) |
|
|
209,782 |
|
|
|
201,878 |
|
|
|
7,904 |
|
|
|
454,571 |
|
|
|
398,295 |
|
|
|
56,276 |
|
Operating income |
|
36,319 |
|
|
|
157,719 |
|
|
|
(121,400 |
) |
|
|
49,492 |
|
|
|
372,652 |
|
|
|
(323,160 |
) |
Interest expense, net |
|
(7,613 |
) |
|
|
(7,419 |
) |
|
|
(194 |
) |
|
|
(7,812 |
) |
|
|
(10,313 |
) |
|
|
2,501 |
|
Pension settlement charge |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14,165 |
) |
|
|
14,165 |
|
Non-operating pension and other postretirement employee benefit costs |
|
(229 |
) |
|
|
(1,809 |
) |
|
|
1,580 |
|
|
|
(457 |
) |
|
|
(3,738 |
) |
|
|
3,281 |
|
Other |
|
258 |
|
|
|
— |
|
|
|
258 |
|
|
|
268 |
|
|
|
— |
|
|
|
268 |
|
Income before income taxes |
|
28,735 |
|
|
|
148,491 |
|
|
|
(119,756 |
) |
|
|
41,491 |
|
|
|
344,436 |
|
|
|
(302,945 |
) |
Income taxes |
|
(6,429 |
) |
|
|
(28,269 |
) |
|
|
21,840 |
|
|
|
(2,925 |
) |
|
|
(60,334 |
) |
|
|
57,409 |
|
Net income |
$ |
22,306 |
|
|
$ |
120,222 |
|
|
$ |
(97,916 |
) |
|
$ |
38,566 |
|
|
$ |
284,102 |
|
|
$ |
(245,536 |
) |
Total Adjusted EBITDDA1 |
$ |
45,445 |
|
|
$ |
175,170 |
|
|
$ |
(129,725 |
) |
|
$ |
103,222 |
|
|
$ |
420,732 |
|
|
$ |
(317,510 |
) |
1 |
See Liquidity and Performance Measures for a reconciliation of Total Adjusted EBITDDA to net income, the closest comparable GAAP measure, for each of the periods presented. |
Second Quarter 2023 Compared with Second Quarter 2022
Revenues
Revenues were $246.1 million, a decrease of $113.5 million compared with the second quarter of 2022 primarily due to declines in lumber prices, Northern sawlog prices, and rural real estate land sales. These decreases were partially offset by increases in harvest volumes, lumber shipments, and commercial acres sold in Chenal Valley.
Cost of goods sold
Cost of goods sold increased $23.7 million compared with the second quarter of 2022 mainly due to higher manufacturing costs driven by increased lumber shipments, including shipments from the Ola sawmill following the large log line restart in September 2022, and higher log and haul costs primarily due to increased harvest volumes. These increases were partially offset by lower shipping costs and fewer rural real estate acres sold.
Selling, general and administrative expenses
Selling, general and administrative expenses decreased $2.8 million compared to the second quarter of 2022, primarily due to lower incentive and stock-based compensation in the second quarter of 2023. These decreases were partially offset primarily by incremental administrative costs following the CatchMark merger.
Gain on fire damage
During the second quarter of 2023, we recognized insurance recoveries of $23.1 million for fire damage at our Ola, Arkansas sawmill, compared to the second quarter of 2022, where we recognized insurance recoveries for fire damage of $10.0 million and disposal costs of $0.1 million.
25
Income taxes
Income taxes are primarily due to income or loss from our PotlatchDeltic taxable REIT subsidiaries (TRS). For the three months ended June 30, 2023, we recorded income tax expense of $6.4 million on TRS income before tax of $29.0 million, which included the $23.1 million gain on fire damage. Income taxes for the three months ended June 30, 2023, also included an approximate $1.0 million tax benefit from the reduction of our blended deferred tax rate during the quarter. For the three months ended June 30, 2022, we recorded income tax expense of $28.3 million on TRS income before tax of $110.9 million.
Total Adjusted EBITDDA
Total Adjusted EBITDDA for the second quarter of 2023 decreased $129.7 million compared to the second quarter of 2022 primarily due to lower lumber and Northern sawlog prices, fewer rural real estate sales and higher log and haul costs. These decreases in Adjusted EBITDDA were partially offset by increased harvest volumes along with lower variable compensation. Refer to the Business Segment Results below for further discussions on activities for each of our segments. See Liquidity and Performance Measures for a reconciliation of Total Adjusted EBITDDA to net income, the closest comparable GAAP measure, for each of the periods presented
Year to Date 2023 Compared with Year to Date 2022
Revenues
Revenues were $504.1 million, a decrease of $266.9 million compared with the first half of 2022, primarily due to declines in lumber and Northern sawlog prices, fewer residential lot sales in Chenal Valley and lower rural real estate land sales. These decreases were partially offset by increased harvest volumes and increased lumber shipments primarily from our Ola, Arkansas sawmill.
Cost of goods sold
Cost of goods sold increased $68.2 million compared with the first half of 2022 mainly due to higher manufacturing and log and haul costs primarily from increased lumber shipments and harvest volumes. These increases were partially offset by lower shipping costs and fewer rural real estate acres sold.
CatchMark merger-related expenses
Merger-related expenses during the first half of 2023 were $2.5 million primarily related to post-merger fees for professional services.
Gain on fire damage
During the first half of 2023, we recognized insurance recoveries of $23.1 million for fire damage at our Ola, Arkansas sawmill. During the first half of 2022, we recognized insurance recoveries of $10.4 million for fire damage and incurred $0.8 million of disposal costs at the Ola sawmill.
Interest expense
Interest expense, net, decreased $2.5 million compared to the first half of 2022, primarily due to higher interest income earned on cash and cash equivalents as a result of higher short-term interest rates, partially offset by increased net interest expense associated with $277.5 million in long-term debt assumed and refinanced in connection with the CatchMark merger in September 2022.
Pension settlement charge
In March 2022, we transferred $75.6 million of our qualified pension plan assets to an insurance company for the purchase of a group annuity contract. In connection with this transaction, we recorded a non-cash pretax settlement charge of $14.2 million.
Non-operating pension and other postretirement benefit costs
Non-operating pension and other postretirement benefit costs decreased $3.3 million compared to the first half of 2022 primarily as a result of an increase in the discount rate used to determine the benefit obligation and an increase in the expected return on plan assets.
26
Income taxes
Income taxes are primarily due to income or loss from our TRS. For the six months ended June 30, 2023, we recorded income tax expense of $2.9 million on TRS income before tax of $15.4 million, which included the $23.1 million gain on fire damage. Income taxes for the six months ended June 30, 2023, also included an approximate $1.0 million tax benefit from the reduction of our blended deferred tax rate recorded in the second quarter of 2023. For the six months ended June 30, 2022, we recorded income tax expense of $60.3 million on TRS income before tax of $238.2 million, which included the $14.2 million pension settlement charge.
Total Adjusted EBITDDA
Total Adjusted EBITDDA for the first half of 2023 decreased $317.5 million compared to the first half of 2022 primarily due to lower lumber and Northern sawlog prices, higher manufacturing and log and haul costs and fewer rural real estate sales and residential lot sales in Chenal Valley. The decrease in Adjusted EBITDDA was partially offset by increased harvest volume. Refer to the Business Segment Results below for further discussions on activities for each of our segments. See Liquidity and Performance Measures for a reconciliation of Total Adjusted EBITDDA to net income, the closest comparable GAAP measure, for each of the periods presented.
Business Segment Results
Timberlands Segment
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
||||||
Revenues1 |
|
$ |
88,617 |
|
|
$ |
105,486 |
|
|
$ |
(16,869 |
) |
|
$ |
203,855 |
|
|
$ |
229,143 |
|
|
$ |
(25,288 |
) |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Logging and hauling |
|
|
47,160 |
|
|
|
37,123 |
|
|
|
10,037 |
|
|
|
106,369 |
|
|
|
77,205 |
|
|
|
29,164 |
|
Other |
|
|
9,975 |
|
|
|
8,658 |
|
|
|
1,317 |
|
|
|
17,511 |
|
|
|
14,061 |
|
|
|
3,450 |
|
Selling, general and administrative expenses |
|
|
2,166 |
|
|
|
1,815 |
|
|
|
351 |
|
|
|
4,020 |
|
|
|
3,553 |
|
|
|
467 |
|
Timberlands Adjusted EBITDDA2 |
|
$ |
29,316 |
|
|
$ |
57,890 |
|
|
$ |
(28,574 |
) |
|
$ |
75,955 |
|
|
$ |
134,324 |
|
|
$ |
(58,369 |
) |
1 |
Prior to elimination of intersegment fiber revenues of $27.2 million and $39.3 million for the three months ended June 30, 2023 and 2022, and $61.2 million and $81.4 million for the six months ended June 30, 2023 and 2022, respectively. |
2 |
Management uses Adjusted EBITDDA to evaluate the performance of the segment. See Note 2: Segment Information in the Notes to Condensed Consolidated Financial Statements. |
27
Timberlands Segment Statistics
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
Harvest Volumes (in tons) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
||||||
Northern region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sawlog |
|
|
319,173 |
|
|
|
276,347 |
|
|
|
42,826 |
|
|
|
789,963 |
|
|
|
661,637 |
|
|
|
128,326 |
|
Pulpwood |
|
|
7,989 |
|
|
|
11,383 |
|
|
|
(3,394 |
) |
|
|
16,018 |
|
|
|
19,642 |
|
|
|
(3,624 |
) |
Total |
|
|
327,162 |
|
|
|
287,730 |
|
|
|
39,432 |
|
|
|
805,981 |
|
|
|
681,279 |
|
|
|
124,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Southern region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sawlog |
|
|
583,992 |
|
|
|
507,679 |
|
|
|
76,313 |
|
|
|
1,245,580 |
|
|
|
997,772 |
|
|
|
247,808 |
|
Pulpwood |
|
|
480,310 |
|
|
|
376,843 |
|
|
|
103,467 |
|
|
|
972,715 |
|
|
|
756,494 |
|
|
|
216,221 |
|
Stumpage |
|
|
229,675 |
|
|
|
117,618 |
|
|
|
112,057 |
|
|
|
673,954 |
|
|
|
314,131 |
|
|
|
359,823 |
|
Total |
|
|
1,293,977 |
|
|
|
1,002,140 |
|
|
|
291,837 |
|
|
|
2,892,249 |
|
|
|
2,068,397 |
|
|
|
823,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total harvest volume |
|
|
1,621,139 |
|
|
|
1,289,870 |
|
|
|
331,269 |
|
|
|
3,698,230 |
|
|
|
2,749,676 |
|
|
|
948,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales Price/Unit ($ per ton)1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Northern region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sawlog |
|
$ |
115 |
|
|
$ |
228 |
|
|
$ |
(113 |
) |
|
$ |
114 |
|
|
$ |
218 |
|
|
$ |
(104 |
) |
Pulpwood |
|
$ |
46 |
|
|
$ |
52 |
|
|
$ |
(6 |
) |
|
$ |
48 |
|
|
$ |
50 |
|
|
$ |
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Southern region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sawlog |
|
$ |
48 |
|
|
$ |
48 |
|
|
$ |
— |
|
|
$ |
48 |
|
|
$ |
48 |
|
|
$ |
— |
|
Pulpwood |
|
$ |
31 |
|
|
$ |
32 |
|
|
$ |
(1 |
) |
|
$ |
32 |
|
|
$ |
32 |
|
|
$ |
— |
|
Stumpage |
|
$ |
18 |
|
|
$ |
18 |
|
|
$ |
— |
|
|
$ |
20 |
|
|
$ |
17 |
|
|
$ |
3 |
|
1 |
Sawlog and pulpwood sales prices are on a delivered basis, which includes logging and hauling costs. Stumpage sales provide our customers the right to harvest standing timber. As such, the customer contracts the logging and hauling and bears such costs. |
Timberlands Adjusted EBITDDA
The following table summarizes Timberlands Adjusted EBITDDA variances for the three and six months ended June 30, 2023, compared with the three and six months ended June 30, 2022:
(in thousands) |
|
Three Months |
|
|
Six Months |
|
||
Timberlands Adjusted EBITDDA - prior year |
|
$ |
57,890 |
|
|
$ |
134,324 |
|
Harvest volume |
|
|
7,025 |
|
|
|
21,234 |
|
Sales price and mix |
|
|
(31,794 |
) |
|
|
(67,203 |
) |
Logging and hauling costs per unit |
|
|
(3,334 |
) |
|
|
(10,682 |
) |
Forest management, indirect and other |
|
|
(471 |
) |
|
|
(1,718 |
) |
Timberlands Adjusted EBITDDA - current year |
|
$ |
29,316 |
|
|
$ |
75,955 |
|
Second Quarter 2023 Compared with Second Quarter 2022
Timberlands Adjusted EBITDDA for the second quarter of 2023 decreased $28.6 million compared with the second quarter of 2022, primarily as a result of the following:
28
Year to Date 2023 Compared with Year to Date 2022
Timberlands Adjusted EBITDDA for the first half of 2023 decreased $58.4 million compared with the first half of 2022, primarily as a result of the following:
Wood Products Segment
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
||||||
Revenues |
|
$ |
167,669 |
|
|
$ |
266,633 |
|
|
$ |
(98,964 |
) |
|
$ |
320,464 |
|
|
$ |
562,375 |
|
|
$ |
(241,911 |
) |
Costs and expenses1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fiber costs |
|
|
75,923 |
|
|
|
88,915 |
|
|
|
(12,992 |
) |
|
|
153,120 |
|
|
|
166,588 |
|
|
|
(13,468 |
) |
Freight, logging and hauling |
|
|
19,474 |
|
|
|
19,606 |
|
|
|
(132 |
) |
|
|
39,644 |
|
|
|
37,973 |
|
|
|
1,671 |
|
Manufacturing costs |
|
|
56,360 |
|
|
|
55,573 |
|
|
|
787 |
|
|
|
109,250 |
|
|
|
106,366 |
|
|
|
2,884 |
|
Finished goods inventory change |
|
|
1,019 |
|
|
|
(7,952 |
) |
|
|
8,971 |
|
|
|
57 |
|
|
|
(12,531 |
) |
|
|
12,588 |
|
Selling, general and administrative expenses |
|
|
2,844 |
|
|
|
3,110 |
|
|
|
(266 |
) |
|
|
6,280 |
|
|
|
6,518 |
|
|
|
(238 |
) |
Other |
|
|
82 |
|
|
|
125 |
|
|
|
(43 |
) |
|
|
177 |
|
|
|
254 |
|
|
|
(77 |
) |
Wood Products Adjusted EBITDDA2 |
|
$ |
11,967 |
|
|
$ |
107,256 |
|
|
$ |
(95,289 |
) |
|
$ |
11,936 |
|
|
$ |
257,207 |
|
|
$ |
(245,271 |
) |
1 |
Prior to elimination of intersegment fiber costs of $27.2 million and $39.3 million for the three months ended June 30, 2023 and 2022, and $61.2 million and $81.4 million for the six months ended June 30, 2023 and 2022, respectively |
2 |
Management uses Adjusted EBITDDA to evaluate the performance of the segment. See Note 2: Segment Information in the Notes to Condensed Consolidated Financial Statements. |
Wood Products Segment Statistics
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
||||||
Lumber shipments (MBF)1 |
|
|
280,251 |
|
|
|
254,225 |
|
|
|
26,026 |
|
|
|
541,884 |
|
|
|
487,413 |
|
|
|
54,471 |
|
Lumber sales prices ($ per MBF) |
|
$ |
476 |
|
|
$ |
865 |
|
|
$ |
(389 |
) |
|
$ |
456 |
|
|
$ |
966 |
|
|
$ |
(510 |
) |
1 |
MBF stands for thousand board feet. |
Wood Products Adjusted EBITDDA
The following table summarizes Wood Products Adjusted EBITDDA variances for the three and six months ended June 30, 2023, compared with the three and six months ended June 30, 2022:
(in thousands) |
|
Three Months |
|
|
Six Months |
|
||
Wood Products Adjusted EBITDDA - prior year |
|
$ |
107,256 |
|
|
$ |
257,207 |
|
Lumber: |
|
|
|
|
|
|
||
Price |
|
|
(96,918 |
) |
|
|
(244,900 |
) |
Log costs per unit |
|
|
9,984 |
|
|
|
10,625 |
|
Manufacturing costs per unit |
|
|
1,917 |
|
|
|
5,704 |
|
Volume |
|
|
766 |
|
|
|
85 |
|
Residuals, panels and other |
|
|
(11,038 |
) |
|
|
(16,785 |
) |
Wood Products Adjusted EBITDDA - current year |
|
$ |
11,967 |
|
|
$ |
11,936 |
|
29
Second Quarter 2023 Compared with Second Quarter 2022
Wood Products Adjusted EBITDDA for the second quarter of 2023 decreased $95.3 million compared with the second quarter of 2022, primarily as a result of the following:
Year to Date 2023 Compared with Year to Date 2022
Wood Products Adjusted EBITDDA for the first half of 2023 decreased $245.3 million compared with the first half of 2022, primarily as a result of the following:
Real Estate Segment
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
||||||
Revenues |
|
$ |
17,064 |
|
|
$ |
26,736 |
|
|
$ |
(9,672 |
) |
|
$ |
40,927 |
|
|
$ |
60,801 |
|
|
$ |
(19,874 |
) |
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs of goods sold |
|
|
3,438 |
|
|
|
3,831 |
|
|
|
(393 |
) |
|
|
6,303 |
|
|
|
6,710 |
|
|
|
(407 |
) |
Selling, general and administrative expenses |
|
|
1,389 |
|
|
|
1,089 |
|
|
|
300 |
|
|
|
2,922 |
|
|
|
2,151 |
|
|
|
771 |
|
Real Estate Adjusted EBITDDA1 |
|
$ |
12,237 |
|
|
$ |
21,816 |
|
|
$ |
(9,579 |
) |
|
$ |
31,702 |
|
|
$ |
51,940 |
|
|
$ |
(20,238 |
) |
1 |
Management uses Adjusted EBITDDA to evaluate the performance of the segment. See Note 2: Segment Information in the Notes to Condensed Consolidated Financial Statements. |
Real Estate Segment Statistics
Rural Real Estate |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Acres sold |
|
|
941 |
|
|
|
12,749 |
|
|
|
7,880 |
|
|
|
17,500 |
|
Average price per acre |
|
$ |
4,859 |
|
|
$ |
1,290 |
|
|
$ |
2,841 |
|
|
$ |
2,176 |
|
Development Real Estate |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Residential lots |
|
|
42 |
|
|
|
45 |
|
|
|
66 |
|
|
|
109 |
|
Average price per lot |
|
$ |
107,126 |
|
|
$ |
134,373 |
|
|
$ |
110,509 |
|
|
$ |
121,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial acres |
|
|
6 |
|
|
|
3 |
|
|
|
6 |
|
|
|
6 |
|
Average price per acre |
|
$ |
818,914 |
|
|
$ |
685,713 |
|
|
$ |
818,914 |
|
|
$ |
815,993 |
|
30
Real Estate Adjusted EBITDDA
The following table summarizes Real Estate Adjusted EBITDDA variances for the three and six months ended June 30, 2023, compared with the three and six months ended June 30, 2022:
(in thousands) |
|
Three Months |
|
|
Six Months |
|
||
Real Estate Adjusted EBITDDA - prior year |
|
$ |
21,816 |
|
|
$ |
51,940 |
|
Rural real estate sales |
|
|
(11,669 |
) |
|
|
(15,151 |
) |
Real estate development sales |
|
|
1,647 |
|
|
|
(5,405 |
) |
Selling, general and administrative expenses |
|
|
(285 |
) |
|
|
(756 |
) |
Other costs, net |
|
|
728 |
|
|
|
1,074 |
|
Real Estate Adjusted EBITDDA - current year |
|
$ |
12,237 |
|
|
$ |
31,702 |
|
Second Quarter 2023 Compared with Second Quarter 2022
Real Estate Adjusted EBITDDA for the second quarter of 2023 was $12.2 million, a decrease of $9.6 million compared with the second quarter of 2022, primarily as a result of the following:
Year to Date 2023 Compared with Year to Date 2022
Real Estate Adjusted EBITDDA for the first half of 2023 was $31.7 million, a decrease of $20.2 million compared with the first half of 2022, primarily as a result of the following:
Liquidity and Capital Resources
Cash generated by our operations is highly dependent on the selling prices of our products and can vary from period to period. Changes in significant sources and uses of cash for the six months ended June 30, 2023 and 2022 are presented by category as follows:
|
|
Six Months Ended June 30, |
|
|||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
Change |
|
|||
Net cash from operating activities |
|
$ |
76,357 |
|
|
$ |
378,186 |
|
|
$ |
(301,829 |
) |
Net cash from investing activities |
|
$ |
(10,902 |
) |
|
$ |
(88,766 |
) |
|
$ |
77,864 |
|
Net cash from financing activities |
|
$ |
(74,269 |
) |
|
$ |
(70,298 |
) |
|
$ |
(3,971 |
) |
31
Net Cash Flows from Operating Activities
Net cash from operating activities decreased $301.8 million in the first half of 2023, compared to the first half of 2022 primarily as a result of the following:
Net Cash Flows from Investing Activities
Changes in cash flows from investing activities were primarily a result of the following:
Net Cash Flows from Financing Activities
Changes in cash flows from financing activities were primarily a result of the following:
Future Sources and Uses of Cash
At June 30, 2023, we had cash and cash equivalents of $331.2 million. We expect cash and cash equivalents on hand, cash generated from our operating activities, and supplemented by borrowings under our credit agreement, if needed, to be adequate to meet our future cash requirements. At June 30, 2023, there were no significant changes in our cash commitments arising in the normal course of business under our known contractual and other obligations as described in our Annual Report on Form 10-K for the year ended December 31, 2022.
32
Capital Expenditures
We invest cash in maintenance and discretionary capital expenditures at our Wood Products facilities. We also invest cash in the reforestation of timberlands and construction of roads in our Timberlands operations and to develop land in our Real Estate development operations. We evaluate discretionary capital improvements based on an expected level of return on investment. We expect to spend a total of approximately $135 million to $145 million for capital expenditures during 2023, including capital expenditures for the Waldo sawmill expansion and modernization project discussed below.
In June 2022, we announced a project to expand and modernize our Waldo, Arkansas sawmill. The project is expected to increase the mill’s annual capacity from 190 million board feet of dimensional lumber to approximately 275 million board feet. The investment is also expected to reduce the mill’s operating costs significantly. The Waldo investment includes upgrades to the log yard and planer, a new saw line, and a new continuous dry kiln. The existing mill will continue to operate during the project and completion is expected by the end of 2024. We expect to spend approximately $131.0 million on the project, of which $12.2 million was spent in 2022 and approximately $74.0 million is expected to be spent during 2023.
During 2022, we completed the installation of new equipment at our fire damaged Ola, Arkansas sawmill. The large log line restarted in September 2022. Since the fire in 2021, and through June 30, 2023, the insurance carriers have approved a total of $73.1 million in recoveries for both property damage and business interruption claims at the Ola sawmill. We expect to finalize our insurance claim for the Ola, Arkansas sawmill fire during the second half of 2023. Insurance recoveries are recorded when deemed probable and reasonably estimable.
Share Repurchase Program
On August 31, 2022, our board of directors authorized management to repurchase up to $200.0 million of our common stock with no set time limit for the repurchase (the 2022 Repurchase Program). Concurrently, the board of directors terminated the remaining repurchase authorization under a repurchase program approved in August 2018. At June 30, 2023, we had remaining authorization of $149.6 million for future stock repurchases under the 2022 Repurchase Program. The timing, manner, price and amount of repurchases will be determined according to the trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 (the Trading Plan), and, subject to the terms of the Trading Plan, the Repurchase Program may be suspended, terminated or modified at any time for any reason.
Term Loans and Credit Agreement
At June 30, 2023, our total outstanding net long-term debt was $1.0 billion, including $971.0 million of term loans under our Second Amended and Restated Term Loan Agreement (Amended Term Loan Agreement) with our primary lender. All interest rates on our outstanding long-term debt are fixed rates under fixed rate loans or variable rate loans with an associated interest rate swap that fixes the variable benchmark interest rate component.
Our Amended Credit Agreement provides for a $300.0 million revolving line of credit that matures February 14, 2027. Under the terms of the Amended Credit Agreement, the amount of available principal may be increased up to an additional $500.0 million. We may also utilize borrowings under the Amended Credit Agreement to, among other things, refinance existing indebtedness and provide funding for working capital requirements, capital projects, acquisitions, and other general corporate expenditures. At June 30, 2023, there were no borrowings under the revolving line of credit and approximately $0.7 million of the credit facility was utilized by outstanding letters of credit.
Financial Covenants
The Amended Term Loan Agreement and Amended Credit Agreement (collectively referred to as the Agreements) contain certain covenants that limit our ability and that of our subsidiaries to create liens, merge or consolidate, dispose of assets, incur indebtedness and guarantees, repurchase or redeem capital stock and indebtedness, make certain investments or acquisitions, enter into certain transactions with affiliates or change the nature of our business. The Agreements also contain financial maintenance covenants including the maintenance of a minimum interest coverage ratio and a maximum leverage ratio. We are permitted to pay dividends to our stockholders under the terms of the Agreements so long as we expect to remain in compliance with the financial maintenance covenants.
33
The following table presents the components and applicable limits of Total Asset Value (TAV), a component of the Leverage Ratio, at June 30, 2023:
(in thousands) |
|
|
|
|
Estimated timberland fair value |
|
$ |
4,835,276 |
|
Wood Products manufacturing facilities book basis (limited to 10% of TAV) |
|
|
278,459 |
|
Cash and cash equivalents |
|
|
331,225 |
|
Other1 |
|
|
22,199 |
|
Total Asset Value |
|
$ |
5,467,159 |
|
1 |
Includes, as applicable, Company Owned Life Insurance (limited to 5% of TAV), Construction in Progress (limited to 10% of TAV) and Investments in Affiliates (limited to 15% TAV) as defined in the Agreements. |
At June 30, 2023, we were in compliance with all covenants under the Agreements. The following table sets forth the financial covenants for the Agreements and our status with respect to these covenants at June 30, 2023:
|
|
Covenant Requirement |
|
Actual |
||
Interest coverage ratio |
|
≥ |
|
3.00 to 1.00 |
|
11.4 |
Leverage ratio |
|
≤ |
|
40% |
|
19% |
See Note 5: Debt in the Notes to the Condensed Consolidated Financial Statements for additional information on our debt and credit agreements.
Credit Ratings
Two major debt rating agencies routinely evaluate our debt, and our cost of borrowing can increase or decrease depending on our credit rating. Both Moody’s and S&P rate our debt as investment grade.
Capital Structure
(in thousands) |
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
Long-term debt (including current portion) |
|
$ |
1,033,265 |
|
|
$ |
1,032,680 |
|
Cash and cash equivalents |
|
|
(331,225 |
) |
|
|
(343,809 |
) |
Net debt |
|
|
702,040 |
|
|
|
688,871 |
|
Market capitalization1 |
|
|
4,223,309 |
|
|
|
3,505,255 |
|
Enterprise value |
|
$ |
4,925,349 |
|
|
$ |
4,194,126 |
|
|
|
|
|
|
|
|
||
Net debt to enterprise value |
|
|
14.3 |
% |
|
|
16.4 |
% |
Dividend yield2 |
|
|
3.4 |
% |
|
|
4.1 |
% |
Weighted-average cost of debt, after tax3 |
|
|
2.4 |
% |
|
|
2.4 |
% |
1 |
Market capitalization is based on outstanding shares of 79.9 million and 79.7 million times closing share prices of $52.85 and $43.99 at June 30, 2023 and December 30, 2022, respectively. |
2 |
Dividend yield is based on annualized dividends per share of $1.80 and share prices of $52.85 and $43.99 at June 30, 2023 and December 30, 2022, respectively. |
3 |
Weighted-average cost of debt excludes deferred debt costs and credit facility fees and includes estimated annual patronage credit on term loan debt. |
34
Liquidity and Performance Measures
The discussion below is presented to enhance the reader’s understanding of our operating performance, ability to generate cash and satisfy rating agency and creditor requirements. This information includes two measures: Adjusted EBITDDA and Cash Available for Distribution (CAD). These measures are not defined by GAAP and the discussion of Adjusted EBITDDA and CAD is not intended to conflict with or change any of the GAAP disclosures described herein.
Adjusted EBITDDA is a non-GAAP measure that management uses in evaluating performance and to allocate resources between segments, and that investors can use to evaluate the operational performance of the assets under management. It removes the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis. This measure should not be considered in isolation from and is not intended to represent an alternative to our results reported in accordance with GAAP. Management believes that this non-GAAP measure, when read in conjunction with our GAAP financial statements, provides useful information to investors by facilitating the comparability of our ongoing operating results over the periods presented, the ability to identify trends in our underlying business, and the comparison of our operating results against analyst financial models and the operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.
Our definition of EBITDDA may be different from similarly titled measures reported by other companies. We define EBITDDA as net income before interest expense, net, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses.
We reconcile Total Adjusted EBITDDA to net income for the consolidated company as it is the most comparable GAAP measure.
The following table provides a reconciliation of net income to Total Adjusted EBITDDA for the respective periods:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income |
|
$ |
22,306 |
|
|
$ |
120,222 |
|
|
$ |
38,566 |
|
|
$ |
284,102 |
|
Interest expense, net |
|
|
7,613 |
|
|
|
7,419 |
|
|
|
7,812 |
|
|
|
10,313 |
|
Income taxes |
|
|
6,429 |
|
|
|
28,269 |
|
|
|
2,925 |
|
|
|
60,334 |
|
Depreciation, depletion and amortization |
|
|
27,087 |
|
|
|
20,007 |
|
|
|
58,851 |
|
|
|
39,509 |
|
Basis of real estate sold |
|
|
4,884 |
|
|
|
7,325 |
|
|
|
15,515 |
|
|
|
18,179 |
|
CatchMark merger-related expenses |
|
|
244 |
|
|
|
— |
|
|
|
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 benefit costs |
|
|
229 |
|
|
|
1,809 |
|
|
|
457 |
|
|
|
3,738 |
|
Loss (gain) on disposal of fixed assets |
|
|
21 |
|
|
|
(13 |
) |
|
|
21 |
|
|
|
(16 |
) |
Other |
|
|
(258 |
) |
|
|
— |
|
|
|
(268 |
) |
|
|
— |
|
Total Adjusted EBITDDA |
|
$ |
45,445 |
|
|
$ |
175,170 |
|
|
$ |
103,222 |
|
|
$ |
420,732 |
|
We define CAD as cash from operating activities adjusted for capital spending for purchases of property, plant and equipment, timberlands reforestation and roads and timberland acquisitions not classified as strategic. Management believes CAD is a useful indicator of the company’s overall liquidity, as it provides a measure of cash generated that is available for dividends to common stockholders (an important factor in maintaining our REIT status), repurchase of the company’s common shares, debt repayment, acquisitions and other discretionary and nondiscretionary activities. Our definition of CAD is limited in that it does not solely represent residual cash flows available for discretionary expenditures since the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view CAD as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows. Our definition of CAD may be different from similarly titled measures reported by other companies, including those in our industry. CAD is not necessarily indicative of the CAD that may be generated in future periods.
35
The following table provides a reconciliation of cash from operating activities to CAD:
|
|
Six Months Ended June 30, |
|
|
Twelve Months Ended June 30, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net cash from operating activities1 |
|
$ |
76,357 |
|
|
$ |
378,186 |
|
|
$ |
190,072 |
|
|
$ |
541,732 |
|
Capital expenditures2 |
|
|
(22,470 |
) |
|
|
(87,383 |
) |
|
|
(119,891 |
) |
|
|
(136,708 |
) |
CAD |
|
$ |
53,887 |
|
|
$ |
290,803 |
|
|
$ |
70,181 |
|
|
$ |
405,024 |
|
Net cash from investing activities3 |
|
$ |
(10,902 |
) |
|
$ |
(88,766 |
) |
|
$ |
(69,656 |
) |
|
$ |
(122,457 |
) |
Net cash from financing activities |
|
$ |
(74,269 |
) |
|
$ |
(70,298 |
) |
|
$ |
(299,533 |
) |
|
$ |
(415,411 |
) |
1 |
Net cash from operating activities for the six and twelve months ended June 30, 2023 include cash paid for CatchMark merger-related expenses of $0.9 million and $18.7 million, respectively, and cash paid for real estate development expenditures of $4.3 million and $7.2 million, respectively. Net cash from operating activities for the six and twelve months ended June 30, 2022 includes cash paid for real estate development expenditures of $5.2 million and $10.4 million, respectively. |
2 |
The six and twelve months ended June 30, 2023 includes fire related capital expenditures for the Ola, Arkansas sawmill of $0.6 and $9.6 million, respectively, and excludes $0 and $8.8 million, respectively, of insurance proceeds for the Ola, Arkansas sawmill property losses. The six and twelve months ended June 30, 2022 includes fire related capital expenditures for the Ola, Arkansas sawmill of $9.2 million and $14.8 million, respectively, and excludes $0 and $15.0 million, respectively, of insurance proceeds for the Ola, Arkansas sawmill property losses. |
3 |
Net cash from investing activities include payment for capital expenditures and acquisition of non-strategic timber and timberlands, which is also included in our reconciliation of CAD. |
Critical Accounting Policies and Estimates
There have been no significant changes during 2023 to our critical accounting policies or estimates as presented in our 2022 Annual Report on Form 10-K.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our market risk exposure on financial instruments includes interest rate risk on our bank credit facility, term loans and interest rate swap agreements and forward starting interest rate swap agreements. We are exposed to interest rate volatility on existing variable rate debt instruments and future incurrences of fixed or variable rate debt, which exposure primarily relates to movements in various interest rates. We use interest rate swaps and forward starting swaps to hedge our exposure to the impact of interest rate changes on existing debt and future debt issuances, respectively. All market risk sensitive instruments were entered into for purposes other than for trading purposes.
For quantitative and qualitative disclosures about market risk, see Item 7A, Quantitative and Qualitative Disclosures About Market Risk, of our annual report on Form 10-K for the year ended December 31, 2022. Our exposures to market risk have not changed materially since December 31, 2022.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We conducted an evaluation (pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 (the Exchange Act)), under the supervision and with the participation of management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of June 30, 2023. These disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports that are filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. Our disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that this information is accumulated and communicated to management, including the principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on the evaluation, the CEO and CFO have concluded that these disclosure controls and procedures were effective as of June 30, 2023.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.
Internal Control over Financial Reporting
No changes occurred in our internal control over financial reporting during the six months ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
36
Part II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We believe there is no pending or threatened litigation that could have a material adverse effect on our financial position, operations or liquidity.
ITEM 1A. RISK FACTORS
There have been no material changes in the risk factors previously disclosed in Risk Factors in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities
On August 31, 2022, our board of directors authorized management to repurchase up to $200.0 million of our common stock with no set time limit for the repurchase (the 2022 Repurchase Program). Concurrently, the board of directors terminated the remaining repurchase authorization under a previously authorized repurchase program. The 2022 Repurchase Program may be suspended, terminated or modified at any time for any reason. Shares under the 2022 Repurchase Program may be repurchased in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 (the Exchange Act), or through privately negotiated transactions. In May 2023, we repurchased shares through a trading plan adopted in accordance with 10b5-1 of the Exchange Act (the Trading Plan).
The following table provides information with respect to purchases of common stock made by the company during the three months ended June 30, 2023:
Common Share Purchases |
|
Total Number of Shares Purchased |
|
|
Average Price Paid Per Share |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
|
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |
|
||||
April 1 - April 30 |
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
150,000,021 |
|
May 1 - May 31 |
|
|
8,761 |
|
|
$ |
45.00 |
|
|
|
8,761 |
|
|
$ |
149,605,776 |
|
June 1 - June 30 |
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
149,605,776 |
|
Total |
|
|
8,761 |
|
|
$ |
45.00 |
|
|
|
8,761 |
|
|
$ |
149,605,776 |
|
At June 30, 2023, we had remaining authorization of $149.6 million for future stock repurchases under the 2022 Repurchase Program. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability to account for repurchases that have not been cash settled. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit.
ITEM 5. OTHER INFORMATION
Rule 10b5-1 Trading Plans
On June 9, 2023,
No other company officers or directors
37
ITEM 6. EXHIBITS
EXHIBIT NUMBER |
DESCRIPTION |
3.1*
|
|
3.2* |
|
4 |
See Exhibits 3.1 and 3.2. The registrant undertakes to furnish to the Commission, upon request, any instrument defining the rights of holders of long-term debt. |
10.1 |
Summary of PotlatchDeltic Corporation Non-Employee Director Compensation, effective May 4, 2023. |
10.2 |
|
31 |
|
32 |
|
101 |
The following financial information from PotlatchDeltic Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023, filed on August 4, 2023, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022, (ii) the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and 2022, (iii) the Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022, (v) the Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022, and (vi) the Notes to Condensed Consolidated Financial Statements. |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101). |
* Incorporated by reference.
38
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 thereunto duly authorized.
|
|
PotlatchDeltic Corporation |
|
|
|
(Registrant) |
|
|
|
|
|
|
|
By |
/s/ WAYNE WASECHEK |
|
|
|
Wayne Wasechek |
|
|
|
Interim Vice President, Chief Financial Officer and Chief Accounting Officer (Duly Authorized; Principal Accounting Officer) |
|
|
|
|
|
|
|
|
Date: |
August 4, 2023 |
|
|
39
Exhibit 10.1
POTLATCHDELTIC CORPORATION NON-EMPLOYEE DIRECTOR COMPENSATION
On May 4, 2023, the Board of Directors of PotlatchDeltic Corporation approved a change to the non-employee director compensation program that increased the value of the annual equity award. Set forth below is a summary of the Company’s non-employee director compensation program, effective May 4, 2023.
Director Annual Retainer Fee
Each non-employee Director will be paid an annual cash retainer fee for their service as a Director in the amount of $75,000. The Chairperson of the Board will be paid a supplemental annual retainer fee of $105,000. The Lead Director will be paid a supplemental annual retainer fee of $25,000.
Committee Member Annual Retainer Fees
Each member of the Audit Committee will be paid an annual cash retainer fee of $12,000. The Chair of the Audit Committee will receive a supplemental annual retainer fee of $20,000. Each member of the Executive Compensation and Personnel Policies Committee will be paid an annual cash retainer fee of $7,500 and the Chair of the Executive Compensation and Personnel Policies Committee will receive a supplemental annual retainer fee of $15,000. Members of the Nominating and Corporate Governance Committee will each receive an annual retainer fee of $5,000 and the Chair of the Nominating and Corporate Governance Committee will receive a supplemental annual retainer fee of $12,500.
Director Long-Term Incentive Award
In May of each year, each of the non-employee Directors will be granted an equity award in the form of restricted stock units having a value of $130,000.
Director Deferral Options
Pursuant to the Directors Deferred Compensation Plan, Directors may elect to defer receipt of some or all of the shares of Common Stock earned under their restricted stock unit award and/or some or all of their cash retainer fees.
Other Benefits
Non-employee Directors receive coverage under a Director and Officer Liability Insurance Policy and an Accidental Death and Dismemberment Insurance Policy. In addition, we provide coverage for their spouses under the Accidental Death and Dismemberment Insurance Policy.
Directors are eligible to participate in the Company’s Matching Gifts to Education Program, available to all company employees, which matches contributions of up to $1,500 per year to eligible educational institutions.
1
Director Stock Ownership Guidelines
In order to promote and increase equity ownership by our Directors and to further align their interests with those of our stockholders, the Board has adopted stock ownership guidelines that require each non-employee Director to beneficially own PotlatchDeltic Corporation shares with a value of at least five times the annual retainer fee by the later of January 1, 2024 or the fifth anniversary of his or her election as a Director. Common stock units held in Directors’ accounts under the Deferred Compensation Plan for Directors are counted for purposes of determining whether a Director has satisfied the share ownership requirement.
2
Exhibit 31
CERTIFICATIONS
I, Eric J. Cremers, certify that:
|
Date: August 4, 2023 |
|
|
/s/ ERIC J. CREMERS |
|
|
|
|
Eric J. Cremers |
|
|
|
|
President and Chief Executive Officer |
CERTIFICATIONS
I, Wayne Wasechek, certify that:
|
Date: August 4, 2023 |
|
|
/s/ Wayne Wasechek |
|
|
|
|
Wayne Wasechek |
|
|
|
|
Interim Vice President, Chief Financial Officer and Chief Accounting Officer |
Exhibit 32
STATEMENT OF CHIEF EXECUTIVE OFFICER UNDER 18 U.S.C. § 1350
I, Eric. J. Cremers, President and Chief Executive Officer of PotlatchDeltic Corporation (the Company), certify pursuant to section 1350 of Chapter 63 of Title 18 of the United States Code that, to my knowledge:
/s/ ERIC J. CREMERS |
Eric J. Cremers |
|
President and Chief Executive Officer |
|
|
August 4, 2023
STATEMENT OF CHIEF FINANCIAL OFFICER UNDER 18 U.S.C. § 1350
I, Wayne Wasechek, Interim Vice President, Chief Financial Officer and Chief Accounting Officer of PotlatchDeltic Corporation (the Company), certify pursuant to section 1350 of Chapter 63 of Title 18 of the United States Code that, to my knowledge:
/s/ Wayne Wasechek |
Wayne Wasechek |
|
Interim Vice President, Chief Financial Officer and Chief Accounting Officer |
|
|
August 4, 2023
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||
| Income Statement [Abstract] | ||||||
| Revenues | $ 246,101 | $ 359,597 | $ 504,063 | $ 770,947 | ||
| Costs and expenses: | ||||||
| Cost of goods sold | 215,063 | 191,334 | 439,413 | 371,181 | ||
| Selling, general and administrative expenses | 17,585 | 20,412 | 35,815 | 36,706 | ||
| CatchMark merger-related expenses | 244 | 0 | 2,453 | 0 | ||
| Gain on fire damage | (23,110) | (9,868) | (23,110) | (9,592) | ||
| Total costs and expenses | 209,782 | 201,878 | 454,571 | 398,295 | ||
| Operating income | 36,319 | 157,719 | 49,492 | 372,652 | ||
| Interest expense, net | [1] | (7,613) | (7,419) | (7,812) | (10,313) | |
| Pension settlement charge | 0 | 0 | 0 | (14,165) | ||
| Non-operating pension and other postretirement employee benefit costs | (229) | (1,809) | (457) | (3,738) | ||
| Other | 258 | 0 | 268 | 0 | ||
| Income before income taxes | 28,735 | 148,491 | 41,491 | 344,436 | ||
| Income taxes | (6,429) | (28,269) | (2,925) | (60,334) | ||
| Net income | $ 22,306 | $ 120,222 | $ 38,566 | $ 284,102 | ||
| Net income per share: | ||||||
| Basic | $ 0.28 | $ 1.73 | $ 0.48 | $ 4.09 | ||
| Diluted | 0.28 | 1.72 | 0.48 | 4.07 | ||
| Dividends per share | $ 0.45 | $ 0.44 | $ 0.9 | $ 0.88 | ||
| Weighted-average shares outstanding | ||||||
| Basic | 80,145 | 69,580 | 80,087 | 69,502 | ||
| Diluted | 80,416 | 69,791 | 80,297 | 69,731 | ||
| ||||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net income | $ 22,306 | $ 120,222 | $ 38,566 | $ 284,102 |
| Other comprehensive income (loss), net of tax: | ||||
| Pension and other postretirement employee benefits | (344) | 915 | (475) | 8,395 |
| Cash flow hedges | 17,719 | 42,529 | 384 | 85,805 |
| Other comprehensive income (loss), net of tax | 17,375 | 43,444 | (91) | 94,200 |
| Comprehensive income | $ 39,681 | $ 163,666 | $ 38,475 | $ 378,302 |
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock, authorized | 4,000,000 | 4,000,000 |
| Preferred stock, issued | 0 | 0 |
| Common stock, par value | $ 1 | $ 1 |
| Common stock, authorized | 200,000,000 | 100,000,000 |
| Common stock, issued | 79,911,000 | 79,683,000 |
| Common stock, outstanding | 79,911,000 | 79,683,000 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
|---|---|---|
| Statement of Cash Flows [Abstract] | ||
| Restricted Cash, Current | $ 3.2 | $ 0.0 |
| Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Deficit [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
|---|---|---|---|---|---|
| Balance, beginning of period at Dec. 31, 2021 | $ 1,526,133 | $ 69,064 | $ 1,781,217 | $ (280,910) | $ (43,238) |
| Balance, beginning of period (shares) at Dec. 31, 2021 | 69,064,000 | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 163,880 | 163,880 | |||
| Shares issued for stock compensation | $ 308 | (308) | |||
| Shares issued for stock compensation (shares) | 308,000 | ||||
| Equity-based compensation expense | 2,056 | 2,056 | |||
| Pension plans and OPEB obligations, net of tax | 7,480 | 7,480 | |||
| Cash flow hedges, net of tax | 43,276 | 43,276 | |||
| Dividends on common stock | (30,524) | (30,524) | |||
| Other transactions, net | (103) | (25) | (78) | ||
| Balance, end of period at Mar. 31, 2022 | 1,712,198 | $ 69,372 | 1,782,940 | (147,632) | 7,518 |
| Balance, end of period (shares) at Mar. 31, 2022 | 69,372,000 | ||||
| Balance, beginning of period at Dec. 31, 2021 | 1,526,133 | $ 69,064 | 1,781,217 | (280,910) | (43,238) |
| Balance, beginning of period (shares) at Dec. 31, 2021 | 69,064,000 | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 284,102 | ||||
| Cash flow hedges, net of tax | 85,805 | ||||
| Balance, end of period at Jun. 30, 2022 | 1,843,551 | $ 69,280 | 1,785,383 | (62,074) | 50,962 |
| Balance, end of period (shares) at Jun. 30, 2022 | 69,280,000 | ||||
| Balance, beginning of period at Mar. 31, 2022 | 1,712,198 | $ 69,372 | 1,782,940 | (147,632) | 7,518 |
| Balance, beginning of period (shares) at Mar. 31, 2022 | 69,372,000 | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 120,222 | 120,222 | |||
| Shares issued for stock compensation | $ 3 | (3) | |||
| Shares issued for stock compensation (shares) | 3,000 | ||||
| Equity-based compensation expense | 2,368 | 2,368 | |||
| Repurchase of common stock | (4,156) | $ (95) | (4,061) | ||
| Repurchase of common stock (shares) | (95,000) | ||||
| Pension plans and OPEB obligations, net of tax | 915 | 915 | |||
| Cash flow hedges, net of tax | 42,529 | 42,529 | |||
| Dividends on common stock | (30,524) | (30,524) | |||
| Other transactions, net | (1) | 78 | (79) | ||
| Balance, end of period at Jun. 30, 2022 | 1,843,551 | $ 69,280 | 1,785,383 | (62,074) | 50,962 |
| Balance, end of period (shares) at Jun. 30, 2022 | 69,280,000 | ||||
| Balance, beginning of period at Dec. 31, 2022 | $ 2,263,153 | $ 79,683 | 2,294,797 | (208,979) | 97,652 |
| Balance, beginning of period (shares) at Dec. 31, 2022 | 79,683,000 | 79,683,000 | |||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | $ 16,260 | 16,260 | |||
| Shares issued for stock compensation | $ 233 | (233) | |||
| Shares issued for stock compensation (shares) | 233,000 | ||||
| Equity-based compensation expense | 2,279 | 2,279 | |||
| Pension plans and OPEB obligations, net of tax | (131) | (131) | |||
| Cash flow hedges, net of tax | (17,335) | (17,335) | |||
| Dividends on common stock | (35,962) | (35,962) | |||
| Other transactions, net | (1) | 84 | (85) | ||
| Balance, end of period at Mar. 31, 2023 | 2,228,263 | $ 79,916 | 2,296,927 | (228,766) | 80,186 |
| Balance, end of period (shares) at Mar. 31, 2023 | 79,916,000 | ||||
| Balance, beginning of period at Dec. 31, 2022 | $ 2,263,153 | $ 79,683 | 2,294,797 | (208,979) | 97,652 |
| Balance, beginning of period (shares) at Dec. 31, 2022 | 79,683,000 | 79,683,000 | |||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | $ 38,566 | ||||
| Cash flow hedges, net of tax | 384 | ||||
| Balance, end of period at Jun. 30, 2023 | $ 2,233,169 | $ 79,911 | 2,298,593 | (242,896) | 97,561 |
| Balance, end of period (shares) at Jun. 30, 2023 | 79,911,000 | 79,911,000 | |||
| Balance, beginning of period at Mar. 31, 2023 | $ 2,228,263 | $ 79,916 | 2,296,927 | (228,766) | 80,186 |
| Balance, beginning of period (shares) at Mar. 31, 2023 | 79,916,000 | ||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 22,306 | 22,306 | |||
| Shares issued for stock compensation | $ 4 | (4) | |||
| Shares issued for stock compensation (shares) | 4,000 | ||||
| Equity-based compensation expense | 1,577 | 1,577 | |||
| Repurchase of common stock | (394) | $ (9) | (385) | ||
| Repurchase of common stock (shares) | (9,000) | ||||
| Pension plans and OPEB obligations, net of tax | (344) | (344) | |||
| Cash flow hedges, net of tax | 17,719 | 17,719 | |||
| Dividends on common stock | (35,958) | (35,958) | |||
| Other transactions, net | 93 | (93) | |||
| Balance, end of period at Jun. 30, 2023 | $ 2,233,169 | $ 79,911 | $ 2,298,593 | $ (242,896) | $ 97,561 |
| Balance, end of period (shares) at Jun. 30, 2023 | 79,911,000 | 79,911,000 |
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
| Statement of Stockholders' Equity [Abstract] | ||||
| Common dividends, per share | $ 0.45 | $ 0.45 | $ 0.44 | $ 0.44 |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Pay vs Performance Disclosure | ||||||
| Net Income (Loss) | $ 22,306 | $ 16,260 | $ 120,222 | $ 163,880 | $ 38,566 | $ 284,102 |
Insider Trading Arrangements |
6 Months Ended |
|---|---|
|
Jun. 30, 2023
shares
| |
| Trading Arrangements, by Individual | |
| Material Terms of Trading Arrangement | On June 9, 2023, Wayne Wasechek, our Interim Vice President, Chief Financial Officer and Chief Accounting Officer, who is an officer for purposes of Section 16 of the Exchange Act, adopted a 10b5-1 trading arrangement (the 10b5-1 Trading Arrangement) intended to satisfy the affirmative defense of Rule 10b5-1(c)(1) under the Exchange Act and the company's policies regarding transactions in our securities. The 10b5-1 Trading Arrangement is intended to cover tax withholding obligations in connection with the vesting of restricted stock units (“RSUs”) granted to Mr. Wasechek on April 19, 2023, and related RSUs that represent dividend equivalents. Such sale is mandated by the company’s election under its equity incentive plans to require the satisfaction of its tax withholding obligations to be funded by a “sell to cover” transaction as soon as practicable on or after the settlement date for the RSUs, which is expected to be April 17, 2026. Therefore, the duration of the 10b5-1 Trading Arrangement is from . Based on the share price of $49.05 per share on the date the RSUs were granted, the estimated number of shares of our company common stock to be sold pursuant to the 10b5-1 Trading Arrangement is approximately 1,194. No other company officers or directors adopted or terminated any 10b5-1 or non-10b5-1 trading arrangements during the three months ended June 30, 2023. |
| No Other Officer Or Director Other than CEO [Member] | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
| Rule 10b5-1 Trading Plan [Member] | |
| Trading Arrangements, by Individual | |
| Name | Wayne Wasechek |
| Title | Interim Vice President, Chief Financial Officer and Chief Accounting Officer |
| Rule 10b5-1 Arrangement Adopted | true |
| Arrangement Duration | 1047 days |
| Aggregate Available | 1,194 |
Basis of Presentation |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | NOTE 1. BASIS OF PRESENTATION General PotlatchDeltic Corporation and its subsidiaries (collectively referred to in this report as the company, us, we or our) is a leading timberland Real Estate Investment Trust (REIT) with operations in nine states. We are engaged in activities associated with timberland management, including the sale of timber, the management of nearly 2.2 million acres of timberlands and the purchase and sale of timberlands. We are also engaged in the manufacturing and sale of wood products and the development of real estate. Our timberlands, real estate development projects and all of our wood products facilities are located within the continental United States. The primary market for our products is the United States. We converted to a REIT effective January 1, 2006. Condensed Consolidated Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements provide an overall view of our results and financial condition and reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Condensed Consolidated Financial Statements, such adjustments are of a normal, recurring nature. Intercompany transactions and accounts have been eliminated in consolidation. The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain disclosures normally provided in accordance with accounting principles generally accepted in the United States (GAAP) have been omitted. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on February 16, 2023. Results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the full year. Increased Authorized Shares of Common Stock On May 1, 2023, the stockholders of the company approved an amendment (the “Amendment”) to the Company’s Third Restated Certificate of Incorporation (the “Charter”) to increase the number of authorized shares of the company’s common stock from 100 million to 200 million. The Amendment became effective upon the filing of the Certificate of Amendment to the Charter with the Secretary of State of the State of Delaware on May 1, 2023. Use of Estimates The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and requires judgments affecting the amounts reported in the financial statements and the accompanying notes. Actual results may differ materially from our estimates. Recent Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies and are adopted by the company as of the specified effective date. For the six months ended June 30, 2023, there were no new accounting pronouncements that management believes materially affect the company’s present or future results of operations, overall financial condition, liquidity or disclosures. |
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information | NOTE 2. SEGMENT INFORMATION Our operations are organized into three reportable segments: Timberlands, Wood Products and Real Estate. Management activities in the Timberlands segment include planting and harvesting trees and building and maintaining roads. The Timberlands segment also generates revenues from non-timber resources such as hunting leases, recreation permits and leases, mineral rights contracts, oil and gas royalties and carbon sequestration. The Wood Products segment manufactures and sells lumber and plywood. The Real Estate segment includes the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives, a master planned community development and a country club. Our Timberlands segment supplies our Wood Products segment with a portion of its wood fiber needs. These intersegment revenues are based on prevailing market prices and typically represent a sizeable portion of the Timberlands segment’s total revenues. Our other segments generally do not generate intersegment revenues. These intercompany transactions are eliminated in consolidation. The reportable segments follow the same accounting policies used for our Condensed Consolidated Financial Statements, with the exception of the valuation of inventories, which are reported using the average cost method for purposes of reporting segment results. The following table presents our revenues by major product:
Management uses Adjusted EBITDDA to evaluate the operating performance and effectiveness of operating strategies of our segments and allocation of resources to them. EBITDDA is calculated as net income before interest expense, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies. The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.
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Earnings per Share |
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| Earnings per Share | NOTE 3. EARNINGS PER SHARE The following table reconciles the number of shares used in calculating basic and diluted earnings per share:
For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include future compensation cost associated with the stock award. For the three and six months ended June 30, 2023, there were approximately 34,000 and 68,000 stock-based awards, respectively, that were excluded from the calculation of diluted earnings per share as they were anti-dilutive. For the three and six months ended June 30, 2022, there were approximately 98,000 and 78,000 stock-based awards, respectively, that were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Share Repurchase Program On August 30, 2018, our board of directors authorized management to repurchase up to $100.0 million of common stock with no time limit set for the repurchase (the 2018 Repurchase Program). During the three and six months ended June 30, 2022, we repurchased 94,566 shares of our common stock in open-market transactions for a total consideration of $4.2 million under the 2018 Repurchase Plan. On August 31, 2022, our board of directors authorized management to repurchase up to $200.0 million of our common stock with no set time limit for the repurchase (the 2022 Repurchase Program). Concurrently, the board of directors terminated the remaining repurchase authorization under the 2018 Repurchase Program. Shares under the 2022 Repurchase Program may be repurchased in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 (the Trading Plan), or through privately negotiated transactions. The timing, manner, price and amount of repurchases will be determined according to, and subject to, the terms of the Trading Plan, and, subject to the terms of the Trading Plan, the 2022 Repurchase Program may be suspended, terminated or modified at any time for any reason. During the three and six months ended June 30, 2023, we repurchased 8,761 shares of our common stock for total consideration of $0.4 million under the 2022 Repurchase Plan. At June 30, 2023, we had remaining authorization of $149.6 million for future stock repurchases under the 2022 Repurchase Program. Transaction costs are not counted against authorized funds. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability to account for repurchases that have not been cash settled. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit. |
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Certain Balance Sheet Components |
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| Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Certain Balance Sheet Components | NOTE 4. CERTAIN BALANCE SHEET COMPONENTS Inventories
Property, plant and equipment
Ola, Arkansas sawmill fire On June 13, 2021, a fire occurred at our Ola, Arkansas sawmill. There were no injuries or environmental issues from the fire. The damage was principally limited to the large log primary breakdown area of the mill. The new equipment has been installed and the large log line restarted in September 2022. We have adequate property damage and business interruption insurance and expect to be reimbursed for both property damage and business interruption losses by our insurance carriers, subject to a $2.0 million deductible. During the three and six months ended June 30, 2023, we recorded insurance recoveries of $23.1 million from the Ola sawmill claim, all of which was recognized as a gain on fire damage in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2022, we recorded $9.9 million and $9.2 million, respectively as gain on fire damage at the Ola sawmill. Through June 30, 2023, the insurance carriers have approved a total of $73.1 million in insurance recoveries for both property damage and business interruption claims at the Ola sawmill. We expect to finalize our insurance claim for the Ola, Arkansas sawmill fire during the second half of 2023. Insurance recoveries are recorded when deemed probable and reasonably estimable. Timber and timberlands
Accounts payable and accrued liabilities
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Debt |
6 Months Ended |
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Jun. 30, 2023 | |
| Debt Disclosure [Abstract] | |
| Debt | NOTE 5. DEBT TERM LOANS At June 30, 2023, our total outstanding principal on our long-term debt of $1.0 billion included $971.0 million of term loans under our Second Amended and Restated Term Loan Agreement (Amended Term Loan Agreement) with our primary lender. Certain borrowings under the Amended Term Loan Agreement are at one-month SOFR-indexed variable rates, plus a spread between 1.66% and 2.30%. We have entered into SOFR-indexed interest rate swaps to fix the interest rate on these variable rate term loans. See Note: 6 Derivative Instruments for additional information. CREDIT AGREEMENT On May 18, 2023, we entered into a First Amendment to the Third Amended and Restated Credit Agreement (Amended Credit Agreement). The Amended Credit Agreement provides for loans based on the Secured Overnight Financing Rate (“SOFR”) instead of the London Inter-Bank Offered Rate (“LIBOR”), provides us the option to borrow based on a daily SOFR or term SOFR basis, and provides mechanics relating to the transition from the use of SOFR to a replacement benchmark rate upon the occurrence of certain transition events. The Amended Credit Agreement provides for a $300.0 million revolving line of credit that matures February 14, 2027. As provided in the Amended Credit Agreement, borrowings may be increased by up to an additional $500.0 million. The revolving line of credit also includes a sublimit of $75.0 million for the issuance of standby letters of credit and a sublimit of $25.0 million for swing line loans. Usage under either or both sub facilities reduces availability under the revolving line of credit. We may utilize borrowings under the Amended Credit Agreement to, among other things, refinance existing indebtedness and provide funding for working capital requirements, capital projects, acquisitions and other general corporate expenditures. At June 30, 2023, there were no borrowings under the revolving line of credit and approximately $0.7 million of our revolving line of credit was utilized for outstanding letters of credit. We were in compliance with all debt and credit agreement covenants at June 30, 2023. |
Derivative Instruments |
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| Derivative Instrument Detail [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments | NOTE 6. DERIVATIVE INSTRUMENTS From time to time, we enter into derivative financial instruments to manage certain cash flow and fair value risks. Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. All our cash flow hedges are expected to be highly effective in achieving offsetting cash flows attributable to the hedged interest rate risk through the term of the hedges. At June 30, 2023, we have interest rate swaps associated with $721.0 million of SOFR-indexed term loan debt. These cash flow hedges convert variable rates ranging from one-month SOFR plus 1.66% to 2.30%, to fixed rates ranging from 2.19% to 4.79% before patronage credits from lenders. At June 30, 2023, we also have $250.0 million of forward-starting interest rate swaps designated as cash flow hedges for expected future debt refinances that require settlement on the stated maturity date. The gross fair values of derivative instruments at June 30, 2023 and December 31, 2022, were $139.8 million and $144.6 million, respectively, all of which were classified in Other assets, non-current on our Condensed Consolidated Balance Sheets. Derivative instruments that mature within one year, as a whole, are classified as current. The following table details the effect of derivatives on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income:
1 Realized gains and losses on interest rate contracts consist of realized net cash received or paid and interest accruals on the interest rate swaps during the periods in addition to amortization of amounts out of other comprehensive (loss) income related to certain terminated hedges and adjustments to interest expense resulting from amortization of inception value of certain off-market designated hedges. Net cash received or paid is included within Interest expense, net in the Condensed Consolidated Statements of Operations. At June 30, 2023, the amount of net gains expected to be reclassified into earnings in the next 12 months is approximately $20.2 million. However, this expected amount to be reclassified into earnings is subject to volatility as the ultimate amount recognized in earnings is based on the SOFR rates at the time of net swap cash payments. |
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Fair Value Measurements |
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| Derivative Instrument Detail [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | NOTE 7. FAIR VALUE MEASUREMENTS The following table presents the estimated fair values of our financial instruments:
The fair value of interest rate swaps is determined using a discounted cash flow analysis, based on third-party sources, on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity and uses observable market-based inputs, including interest rate forward curves. The fair value of our long-term debt is estimated based upon quoted market prices for similar debt issues or estimated based on average market prices for comparable debt when there is no quoted market price. The contract value of our company owned life insurance is based on the amount at which it could be redeemed and, accordingly, approximates fair value. We believe that our other financial instruments, including cash and cash equivalents, restricted cash, receivables and payables have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to the short-term nature of these instruments. |
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Equity-Based Compensation |
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| Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-Based Compensation | NOTE 8. EQUITY-BASED COMPENSATION We issue new shares of common stock to settle performance stock awards (PSAs), restricted stock units (RSUs) and deferred compensation stock equivalent units. At June 30, 2023, approximately 1.8 million shares were available for future use under our long-term incentive plans. Share-based compensation activity during the six months ended June 30, 2023, included the following:
Approximately 0.2 million shares of common stock were issued to employees during the six months ended June 30, 2023 as a result of PSA and RSU vesting during 2022 and 2023. The following details compensation expense and the related income tax benefit for company specific equity-based awards:
Performance Share Awards The weighted average grant date fair value of PSAs granted in 2023 was $61.21 per share. PSAs granted under the stock incentive plans have a three-year performance period and shares are issued at the end of the period if the performance measures are met. The number of shares actually issued, as a percentage of the amount subject to the PSA, could range from 0% to 200%. PSAs granted under the stock incentive plans do not have voting rights unless and until shares are issued upon settlement. If shares are issued at the end of the performance measurement period, the recipients will receive dividend equivalents in the form of additional shares of common stock at the date of settlement equal to the dividends that would have been paid on the shares earned had the recipients owned the shares during the three-year period. The share awards are not considered participating securities. The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards granted in 2023:
Restricted Stock Units The weighted average fair value of all RSUs granted during the six months ended June 30, 2023, was $46.98 per share. The fair value of RSUs granted equaled our common share price on the date of grant factoring in any required post-vesting holding periods. The RSU awards granted accrue dividend equivalents based on dividends paid during the RSU vesting period. Recipients will receive dividend equivalents in the form of additional shares of common stock at the date the vested RSUs are settled. Any forfeited RSUs will not receive dividends. The share awards are not considered participating securities. |
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Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 9. INCOME TAXES As a REIT, we generally are not subject to federal and state corporate income taxes on income from investments in real estate, including our timberlands, that we distribute to our shareholders. We conduct certain activities through our PotlatchDeltic taxable REIT subsidiaries (TRS) which are subject to corporate level federal and state income taxes. These activities are principally comprised of our wood products manufacturing operations and certain real estate investments. Therefore, income tax expense or benefit is primarily due to pre-tax book income or loss of the TRS, as well as permanent book versus tax differences and discrete items. During the three and six months ended June 30, 2023, we reduced our federal effected deferred blended state tax rate. This reduction was a result of changes in tax laws enacted during the quarter in certain states in which our TRS subsidiaries operate. The effect of the change resulted in a $1.0 million reduction to our net deferred tax liability and an offsetting reduction to tax expense, all of which was recorded as a discrete item for the three and six months ended June 30, 2023. |
Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | NOTE 10. LEASES We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The following table presents supplemental balance sheet information related to lease assets and liabilities:
The following table presents the components of lease expense:
The following table presents supplemental cash flow information related to leases:
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Pension and Other Postretirement Employee Benefits |
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| Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension and Other Postretirement Employee Benefits | NOTE 11. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS The following table details the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB):
During the six months ended June 30, 2023 and 2022, funding of pension and other postretirement employee benefit plans was $2.3 million and $2.3 million, respectively. Pension Annuitization In March 2022, we transferred $75.6 million of our qualified pension plan (the Plan) assets to an insurance company for the purchase of a group annuity contract. As a result of the transaction, the insurance company assumed responsibility for annuity administration and benefit payments to select retirees and terminated vested participants, with no change to participants' pension benefits. We recorded a non-cash pretax settlement charge of $14.2 million in non-operating expense, net, as a result of accelerating the recognition of actuarial losses included in Accumulated Other Comprehensive Income that would have been recognized in future periods. The settlement triggered a remeasurement of plan assets and liabilities. |
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Components of Accumulated Other Comprehensive (Loss) Income |
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| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Accumulated Other Comprehensive (Loss) Income | NOTE 12. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table details changes in amounts included in our Accumulated Other Comprehensive Income (Loss) (AOCI) by component on our Condensed Consolidated Balance Sheets, net of tax:
1 Included in the computation of net periodic pension costs. 2 Included in Interest expense, net on the Condensed Consolidated Statement of Operations.
See Note 11: Pension and Other Postretirement Employee Benefits and Note 6: Derivative Instruments for additional information. |
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CatchMark Merger |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Business Combination and Asset Acquisition [Abstract] | |
| CatchMark Merger | NOTE 13. CATCHMARK MERGER On September 14, 2022, CatchMark Timber Trust, Inc. (CatchMark) and CatchMark Timber Operating Partnership, L.P. (the Partnership) merged into a wholly owned subsidiary (Merger Sub) of PotlatchDeltic, pursuant to the terms of a merger agreement dated May 29, 2022, with the Merger Sub surviving the mergers. CatchMark owned approximately 348,000 acres of superior site index timberlands located in Alabama, Georgia and South Carolina. The CatchMark timber and timberlands assets and operations are included in our Timberlands segment within the Southern region. As a result of the merger, we issued approximately 11.5 million shares of PotlatchDeltic common stock, including: (i) 11.3 million shares in exchange for the outstanding shares of CatchMark common stock, which included unvested CatchMark share-based awards that fully vested upon closing of the merger; and (ii) 0.2 million shares in exchange for the Partnership OP Units. We capitalized transaction costs of $9.3 million for items such as investment banking fees, legal services, and other professional fees directly attributable to the merger. We accounted for the transaction as an asset acquisition as substantially all the value of the acquisition was concentrated in the acquired timber and timberlands. We allocated the cost of the acquisition to the net assets acquired based on their relative estimated fair value on the acquisition date. This resulted in an allocation of $782.3 million to timber and timberlands, $3.0 million to intangible assets, $32.0 million to other assets and $23.6 million for cash acquired in the merger. Additionally, we assumed $323.1 million of liabilities including $300.0 million of outstanding long-term debt. Immediately following the merger, we refinanced $277.5 million of the long-term debt assumed in the merger and repaid the remaining $22.5 million with cash on hand. We also entered into $277.5 million of interest rate swaps to fix the interest rates on the refinanced long-term debt. During the three and six months ended June 30, 2023, we incurred non-capitalizable merger costs in connection with the CatchMark merger of approximately $0.2 million and $2.5 million, respectively. These fees consisted primarily of post-merger period fees for professional services and are included in CatchMark merger-related expenses in our Condensed Consolidated Statements of Operations. |
Commitments and Contingencies |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | NOTE 14. COMMITMENTS AND CONTINGENCIES At any given time, we are subject to claims and actions incidental to the operations of our business. Based on information currently available, we do not expect that any sums we may receive or have to pay in connection with any legal proceeding would have a materially adverse effect on our consolidated financial position, operating results or net cash flow. ENVIRONMENTAL MATTER Pursuant to the 2002 Asset Purchase Agreement under which Sappi Cloquet LLC (Sappi) purchased our Cloquet, Minnesota pulp and paper mill (the Plant), we agreed to indemnify Sappi from certain environmental liabilities accruing from the pre-sale operations of the Plant. In February 2021, we were notified by Sappi that the Environmental Protection Agency (EPA) contacted Sappi about the opportunity to participate with the Minnesota Pollution Control Agency (MPCA) and the EPA in a voluntary federal sediment remediation program under the Great Lakes Legacy Act (GLLA) for a project in the St. Louis River Area of Concern, which runs from Cloquet, Minnesota to Lake Superior. The GLLA is a sediment remediation program administered by EPA that provides up to 65% federal funding for the remediation of contaminated sediments in the Great Lakes region. The GLLA program requires at least 35% cash or in-kind contributions from non-federal sponsors (NFS). The EPA’s invitation to Sappi made no demands on or claims against Sappi, nor have EPA or MPCA made any demands or claims against PotlatchDeltic. The identified sediment remediation project at Thomson Reservoir is downstream from the Plant. The Plant was identified for potential partnership with EPA and MPCA on this project based on the Plant’s historic direct discharges of wastewater and leachate from the Plant’s landfill into the St. Louis River prior to the re-routing of the discharges in 1979 to a public wastewater treatment facility. After multiple discussions with the MPCA and completion of our extensive due diligence on this matter, we informed the MPCA in January 2023 that we were interested in voluntarily participating in the program, subject to an equitable division with the MPCA of the NFS share of the costs. We accrued $5.6 million at December 31, 2022, for our estimated contribution to the remediation project. The project is still pending negotiation of a Project Agreement between the EPA, the MPCA, and us. While it is reasonably possible that we may incur an additional liability as this project develops, we are unable to estimate at this time the amount of additional charges, if any, which may be required for this matter in the future. |
Basis of Presentation (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Accounting Policies [Abstract] | |
| General | General PotlatchDeltic Corporation and its subsidiaries (collectively referred to in this report as the company, us, we or our) is a leading timberland Real Estate Investment Trust (REIT) with operations in nine states. We are engaged in activities associated with timberland management, including the sale of timber, the management of nearly 2.2 million acres of timberlands and the purchase and sale of timberlands. We are also engaged in the manufacturing and sale of wood products and the development of real estate. Our timberlands, real estate development projects and all of our wood products facilities are located within the continental United States. The primary market for our products is the United States. We converted to a REIT effective January 1, 2006. |
| Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements provide an overall view of our results and financial condition and reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Condensed Consolidated Financial Statements, such adjustments are of a normal, recurring nature. Intercompany transactions and accounts have been eliminated in consolidation. The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain disclosures normally provided in accordance with accounting principles generally accepted in the United States (GAAP) have been omitted. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on February 16, 2023. Results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the full year. |
| Increased Authorized Shares of Common Stock | Increased Authorized Shares of Common Stock On May 1, 2023, the stockholders of the company approved an amendment (the “Amendment”) to the Company’s Third Restated Certificate of Incorporation (the “Charter”) to increase the number of authorized shares of the company’s common stock from 100 million to 200 million. The Amendment became effective upon the filing of the Certificate of Amendment to the Charter with the Secretary of State of the State of Delaware on May 1, 2023. |
| Use of Estimates | Use of Estimates The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and requires judgments affecting the amounts reported in the financial statements and the accompanying notes. Actual results may differ materially from our estimates. |
| Recent Accounting Standards | Recent Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies and are adopted by the company as of the specified effective date. For the six months ended June 30, 2023, there were no new accounting pronouncements that management believes materially affect the company’s present or future results of operations, overall financial condition, liquidity or disclosures. |
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Revenues by Major Product | The following table presents our revenues by major product:
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| Summary of Information by Business Segment | The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.
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Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Number of Shares Used in Calculating Basic and Diluted Earnings per Share | The following table reconciles the number of shares used in calculating basic and diluted earnings per share:
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Certain Balance Sheet Components (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories | Inventories
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| Schedule of Property, Plant and Equipment | Property, plant and equipment
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| Schedule of Timber and Timberlands | Timber and timberlands
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| Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities
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Derivative Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instrument Detail [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effect of Derivatives on Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income | The following table details the effect of derivatives on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income:
1 Realized gains and losses on interest rate contracts consist of realized net cash received or paid and interest accruals on the interest rate swaps during the periods in addition to amortization of amounts out of other comprehensive (loss) income related to certain terminated hedges and adjustments to interest expense resulting from amortization of inception value of certain off-market designated hedges. Net cash received or paid is included within Interest expense, net in the Condensed Consolidated Statements of Operations. |
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Fair Value Measurements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instrument Detail [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Estimated Fair Value of Financial Instruments | The following table presents the estimated fair values of our financial instruments:
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Equity-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Activity | Share-based compensation activity during the six months ended June 30, 2023, included the following:
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| Details of Compensation Expense and Related Income Tax Benefit for Specific Equity-Based Awards | The following details compensation expense and the related income tax benefit for company specific equity-based awards:
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| Fair Value of Performance Share Awards Granted | The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards granted in 2023:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Supplemental Balance Sheet Information Related Leases Assets and Liabilities | The following table presents supplemental balance sheet information related to lease assets and liabilities:
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| Schedule of Components of Lease Expense | The following table presents the components of lease expense:
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| Schedule of Supplemental Cash Flow Information Related Leases | The following table presents supplemental cash flow information related to leases:
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Pension and Other Postretirement Employee Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Net Periodic Cost (Benefit) | The following table details the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB):
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Components of Accumulated Other Comprehensive (Loss) Income (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in Accumulated Other Comprehensive (Loss) Income | The following table details changes in amounts included in our Accumulated Other Comprehensive Income (Loss) (AOCI) by component on our Condensed Consolidated Balance Sheets, net of tax:
1 Included in the computation of net periodic pension costs. 2 Included in Interest expense, net on the Condensed Consolidated Statement of Operations. |
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Basis of Presentation (Narrative) (Details) a in Millions |
Jun. 30, 2023
shares
|
May 01, 2023
shares
|
Apr. 30, 2023
shares
|
Mar. 31, 2023
a
|
Dec. 31, 2022
shares
|
|---|---|---|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
| Common stock, shares authorized | shares | 200,000,000 | 200,000,000 | 100,000,000 | 100,000,000 | |
| Timber and timberlands acres owned | a | 2.2 |
Segment Information (Narrative) (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2023
Segment
| |
| Segment Reporting [Abstract] | |
| Number of reportable segments | 3 |
Segment Information (Summary of Revenues by Major Product) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | $ 246,101 | $ 359,597 | $ 504,063 | $ 770,947 | ||
| Operating Segments [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 273,350 | 398,855 | 565,246 | 852,319 | ||
| Intersegment Eliminations [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | [1] | (27,243) | (39,258) | (61,177) | (81,372) | |
| Timberlands [Member] | Operating Segments [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 88,617 | 105,486 | 203,855 | 229,143 | ||
| Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 37,563 | 63,730 | 91,552 | 145,929 | ||
| Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Sawlogs [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 36,822 | 62,930 | 90,147 | 144,434 | ||
| Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Pulpwood [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 369 | 587 | 772 | 979 | ||
| Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Other [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 372 | 213 | 633 | 516 | ||
| Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 51,054 | 41,756 | 112,303 | 83,214 | ||
| Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Sawlogs [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 27,802 | 24,365 | 59,556 | 47,746 | ||
| Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Pulpwood [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 15,006 | 12,221 | 31,138 | 23,848 | ||
| Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Stumpage [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 4,148 | 2,108 | 13,381 | 5,466 | ||
| Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Other [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 4,098 | 3,062 | 8,228 | 6,154 | ||
| Wood Products [Member] | Operating Segments [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 167,669 | 266,633 | 320,464 | 562,375 | ||
| Wood Products [Member] | Operating Segments [Member] | Lumber [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 133,289 | 219,924 | 247,087 | 470,688 | ||
| Wood Products [Member] | Operating Segments [Member] | Residuals and Panels [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 34,380 | 46,709 | 73,377 | 91,687 | ||
| Real Estate Segment [Member] | Operating Segments [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 17,064 | 26,736 | 40,927 | 60,801 | ||
| Real Estate Segment [Member] | Operating Segments [Member] | Rural Real Estate [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 4,570 | 16,440 | 22,389 | 38,086 | ||
| Real Estate Segment [Member] | Operating Segments [Member] | Development Real Estate [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 9,409 | 7,946 | 12,209 | 18,224 | ||
| Real Estate Segment [Member] | Operating Segments [Member] | Other [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | 3,085 | 2,350 | 6,329 | 4,491 | ||
| Other Intersegment Eliminations [Member] | ||||||
| Disaggregation Of Revenue [Line Items] | ||||||
| Revenues | $ (6) | $ 0 | $ (6) | $ 0 | ||
| ||||||
Segment Information (Summary of Information by Business Segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||
| Segment Reporting Information [Line Items] | ||||||
| Adjusted EBITDDA | $ 45,445 | $ 175,170 | $ 103,222 | $ 420,732 | ||
| Interest expense, net | [1] | (7,613) | (7,419) | (7,812) | (10,313) | |
| Depreciation, depletion and amortization | (27,087) | (20,007) | (58,851) | (39,509) | ||
| Basis of real estate sold | (4,884) | (7,325) | (15,515) | (18,179) | ||
| CatchMark merger-related expenses | (244) | 0 | (2,453) | 0 | ||
| Gain on fire damage | 23,110 | 9,868 | 23,110 | 9,592 | ||
| Pension settlement charge | 0 | 0 | 0 | (14,165) | ||
| Non-operating pension and other postretirement employee benefit costs | (229) | (1,809) | (457) | (3,738) | ||
| (Loss) gain on disposal of fixed assets | (21) | 13 | (21) | 16 | ||
| Other | 258 | 0 | 268 | 0 | ||
| Income before income taxes | 28,735 | 148,491 | 41,491 | 344,436 | ||
| Bond discounts and deferred loan fees | [1] | 409 | 372 | 818 | 744 | |
| Total depreciation, depletion and amortization | 27,496 | 20,379 | 59,669 | 40,253 | ||
| Operating Segments [Member] | ||||||
| Segment Reporting Information [Line Items] | ||||||
| Depreciation, depletion and amortization | 27,087 | 20,007 | 58,851 | 39,509 | ||
| Operating Segments [Member] | Timberlands [Member] | ||||||
| Segment Reporting Information [Line Items] | ||||||
| Adjusted EBITDDA | 29,316 | 57,890 | 75,955 | 134,324 | ||
| Depreciation, depletion and amortization | (15,895) | (11,563) | (36,356) | (23,724) | ||
| Operating Segments [Member] | Wood Products [Member] | ||||||
| Segment Reporting Information [Line Items] | ||||||
| Adjusted EBITDDA | 11,967 | 107,256 | 11,936 | 257,207 | ||
| Depreciation, depletion and amortization | (10,948) | (8,136) | (21,983) | (15,157) | ||
| Operating Segments [Member] | Real Estate Segment [Member] | ||||||
| Segment Reporting Information [Line Items] | ||||||
| Adjusted EBITDDA | 12,237 | 21,816 | 31,702 | 51,940 | ||
| Depreciation, depletion and amortization | 121 | 173 | 277 | 343 | ||
| Basis of real estate sold | 4,887 | 7,328 | 15,518 | 18,188 | ||
| Corporate [Member] | ||||||
| Segment Reporting Information [Line Items] | ||||||
| Adjusted EBITDDA | (10,521) | (13,912) | (21,262) | (23,496) | ||
| Depreciation, depletion and amortization | 123 | 135 | 235 | 285 | ||
| Intersegment Eliminations [Member] | ||||||
| Segment Reporting Information [Line Items] | ||||||
| Adjusted EBITDDA | 2,446 | 2,120 | 4,891 | 757 | ||
| Basis of real estate sold | $ (3) | $ (3) | $ (3) | $ (9) | ||
| ||||||
Earnings per Share (Reconciliation of Number of Shares Used in Calculating Basic and Diluted Earnings per Share) (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Earnings per Share [Line Items] | ||||
| Basic weighted-average shares outstanding | 80,145 | 69,580 | 80,087 | 69,502 |
| Diluted weighted-average shares outstanding | 80,416 | 69,791 | 80,297 | 69,731 |
| Performance shares [Member] | ||||
| Earnings per Share [Line Items] | ||||
| Incremental shares | 226 | 152 | 177 | 154 |
| Restricted stock units [Member] | ||||
| Earnings per Share [Line Items] | ||||
| Incremental shares | 45 | 59 | 33 | 75 |
Earnings per Share (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Aug. 31, 2022 |
Aug. 30, 2018 |
|
| Earnings per Share [Line Items] | ||||||
| Total anti-dilutive shares excluded from the calculation (in shares) | 34,000 | 98,000 | 68,000 | 78,000 | ||
| Number of shares repurchased, cost | $ 394 | $ 4,156 | ||||
| 2018 Repurchase Program [Member] | ||||||
| Earnings per Share [Line Items] | ||||||
| Number of shares repurchased | 94,566 | 94,566 | ||||
| Number of shares repurchased, cost | $ 4,200 | $ 4,200 | ||||
| 2022 Repurchase Program [Member] | ||||||
| Earnings per Share [Line Items] | ||||||
| Number of shares repurchased | 8,761 | 8,761 | ||||
| Number of shares repurchased, cost | $ 400 | $ 400 | ||||
| Stock repurchase program, remaining amount | $ 149,600 | $ 149,600 | ||||
| Maximum [Member] | 2018 Repurchase Program [Member] | ||||||
| Earnings per Share [Line Items] | ||||||
| Stock repurchase program, authorized amount | $ 100,000 | |||||
| Maximum [Member] | 2022 Repurchase Program [Member] | ||||||
| Earnings per Share [Line Items] | ||||||
| Stock repurchase program, authorized amount | $ 200,000 | |||||
Certain Balance Sheet Components (Schedule of Inventories) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Logs | $ 30,294 | $ 30,586 |
| Lumber, panels and veneer | 37,270 | 35,888 |
| Materials and supplies | 22,877 | 21,262 |
| Inventories gross | 90,441 | 87,736 |
| Less: LIFO reserve | (19,778) | (19,778) |
| Total inventories | $ 70,663 | $ 67,958 |
Certain Balance Sheet Components (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Property, Plant and Equipment [Abstract] | ||
| Property, plant and equipment | $ 597,517 | $ 588,935 |
| Less: accumulated depreciation | (290,539) | (270,751) |
| Total property, plant and equipment, net | $ 306,978 | $ 318,184 |
Certain Balance Sheet Components - (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
| Property, Plant and Equipment [Line Items] | |||||
| Proceeds from insurance of claim received | $ 73.1 | ||||
| Ola, Arkansas Sawmill [Member] | |||||
| Property, Plant and Equipment [Line Items] | |||||
| Deductible amount of property damage and business interruption losses | $ 2.0 | ||||
| Insurance Recoveries | $ 23.1 | $ 23.1 | |||
| Proceeds from insurance of claim received | $ 9.9 | $ 9.2 | |||
Certain Balance Sheet Components (Schedule of Timber and Timberlands) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Timber And Timberlands [Abstract] | ||
| Timber and timberlands | $ 2,385,167 | $ 2,416,134 |
| Logging roads | 90,887 | 92,238 |
| Total timber and timberlands, net | $ 2,476,054 | $ 2,508,372 |
Certain Balance Sheet Components (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||
|---|---|---|---|---|
| Accounts Payable and Accrued Liabilities, Current [Abstract] | ||||
| Accrued payroll and benefits | $ 19,369 | $ 29,051 | ||
| Accounts payable | 17,138 | 12,241 | ||
| Deferred revenue | [1] | 16,519 | 10,860 | |
| Accrued taxes | 8,336 | 7,161 | ||
| Accrued interest | 8,254 | 7,778 | ||
| Other current liabilities | 26,477 | 27,770 | ||
| Total accounts payable and accrued liabilities | $ 96,093 | $ 94,861 | ||
| ||||
Debt (Narrative) (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
May 18, 2023 |
|
| Debt Instrument [Line Items] | ||
| Long-term principal | $ 1,000,000,000 | |
| Letter of Credit [Member] | ||
| Debt Instrument [Line Items] | ||
| Line of credit facility, amount outstanding | 700,000 | |
| Maximum borrowing capacity | $ 75,000,000 | |
| Revolving Credit Facility [Member] | ||
| Debt Instrument [Line Items] | ||
| Revolving line of credit borrowings | $ 0 | |
| Debt instrument, maturity date | Feb. 14, 2027 | |
| Maximum borrowing capacity | 300,000,000 | |
| Amount available to increase borrowing capacity | 500,000,000 | |
| Swing Line Loans [Member] | ||
| Debt Instrument [Line Items] | ||
| Maximum borrowing capacity | $ 25,000,000 | |
| Amended Term Loan Agreement [Member] | ||
| Debt Instrument [Line Items] | ||
| Line of credit facility, amount outstanding | $ 971,000,000 | |
| Secured Overnight Financing Rate (SOFR) [Member] | Minimum [Member] | ||
| Debt Instrument [Line Items] | ||
| Basis spread on variable rate | 1.66% | |
| Secured Overnight Financing Rate (SOFR) [Member] | Maximum [Member] | ||
| Debt Instrument [Line Items] | ||
| Basis spread on variable rate | 2.30% |
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
| Derivatives Fair Value [Line Items] | ||
| Net gains expected to be reclassified into earnings in the next 12 months | $ 20.2 | |
| Cash Flow Hedging [Member] | Other Noncurrent Assets [Member] | ||
| Derivatives Fair Value [Line Items] | ||
| Derivative assets related to interest rate swaps | 139.8 | $ 144.6 |
| Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | ||
| Derivatives Fair Value [Line Items] | ||
| Term loan debt | $ 250.0 | |
| Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Minimum [Member] | ||
| Derivatives Fair Value [Line Items] | ||
| Swaps fixed interest rate | 1.66% | |
| LIBOR variable interest rate | 2.19% | |
| Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Maximum [Member] | ||
| Derivatives Fair Value [Line Items] | ||
| Swaps fixed interest rate | 2.30% | |
| LIBOR variable interest rate | 4.79% | |
| Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans [Member] | ||
| Derivatives Fair Value [Line Items] | ||
| Term loan debt | $ 721.0 |
Derivative Instruments (Effect of Derivatives on Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Cash flow hedges, net of tax | $ 17,719 | $ (17,335) | $ 42,529 | $ 43,276 | $ 384 | $ 85,805 | ||||
| Interest expense, net | [1] | 7,613 | 7,419 | 7,812 | 10,313 | |||||
| Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | ||||||||||
| Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
| Cash flow hedges, net of tax | 22,337 | 41,178 | 8,746 | 82,508 | ||||||
| Amounts reclassified from accumulated other comprehensive income (loss), net of tax | [2] | $ 4,618 | $ (1,351) | $ 8,362 | $ (3,297) | |||||
| Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense, net | Interest expense, net | Interest expense, net | Interest expense, net | ||||||
| ||||||||||
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||
|---|---|---|---|---|
| Carrying Amount [Member] | Level 2 [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Long-term debt, including current portion | [1] | $ (1,035,329) | $ (1,035,004) | |
| Carrying Amount [Member] | Level 2 [Member] | Interest rate contracts [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Derivative assets related to interest rate swaps | 139,787 | 144,583 | ||
| Carrying Amount [Member] | Level 2 [Member] | Term Loans [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Long-term debt, including current portion | (969,594) | (969,269) | ||
| Carrying Amount [Member] | Level 2 [Member] | Revenue bonds [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Long-term debt, including current portion | (65,735) | (65,735) | ||
| Carrying Amount [Member] | Level 3 [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Company owned life insurance asset (COLI) | 4,699 | 4,311 | ||
| Fair Value [Member] | Level 2 [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Long-term debt, including current portion | [1] | (1,027,006) | (1,026,234) | |
| Fair Value [Member] | Level 2 [Member] | Interest rate contracts [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Derivative assets related to interest rate swaps | 139,787 | 144,583 | ||
| Fair Value [Member] | Level 2 [Member] | Term Loans [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Long-term debt, including current portion | (962,002) | (961,632) | ||
| Fair Value [Member] | Level 2 [Member] | Revenue bonds [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Long-term debt, including current portion | (65,004) | (64,602) | ||
| Fair Value [Member] | Level 3 [Member] | ||||
| Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
| Company owned life insurance asset (COLI) | $ 4,699 | $ 4,311 | ||
| ||||
Equity-Based Compensation (Narrative) (Details) - $ / shares shares in Millions |
6 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| PSA and RSU [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Shares issued for stock compensation (shares) | 0.2 | 0.2 |
| Performance Share Awards [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Fair value of shares granted | $ 61.21 | |
| Performance share award granted under stock incentive plan, performance period | 3 years | |
| Performance Share Awards [Member] | Minimum [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award | 0.00% | |
| Performance Share Awards [Member] | Maximum [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award | 200.00% | |
| Restricted stock units [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Fair value of shares granted | $ 46.98 | |
| Long-Term Incentive Plans [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Shares available for future use | 1.8 | |
Equity-Based Compensation (Share-Based Compensation Activity) (Details) shares in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2023
shares
| |
| Performance Share Awards [Member] | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Granted | 106,342 |
| Vested | 0 |
| Forfeited | 28,177 |
| Restricted stock units [Member] | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Granted | 119,579 |
| Vested | 17,225 |
| Forfeited | 12,727 |
Equity-Based Compensation (Details of Compensation Expense and Related Income Tax Benefit for Specific Equity-Based Awards) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
| Equity-based compensation expense | $ 1,577 | $ 2,368 | $ 3,856 | $ 4,424 |
| Deferred compensation stock equivalent units expense | 49 | 49 | 98 | 98 |
| Total tax benefit recognized for equity-based expense | 137 | 119 | 259 | 219 |
| Performance Share Awards [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
| Equity-based compensation expense | 719 | 1,518 | 2,140 | 2,816 |
| Restricted stock units [Member] | ||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
| Equity-based compensation expense | $ 809 | $ 801 | $ 1,618 | $ 1,510 |
Equity-Based Compensation (Fair Value of Performance Share Awards Granted) (Details) - Performance Share Awards [Member] |
6 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
|
Jun. 30, 2023
$ / shares
| ||||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
| Stock price as of valuation date | $ 47.55 | |||||||
| Risk-free rate | 4.14% | |||||||
| Expected volatility | 36.24% | |||||||
| Expected dividend yield | 0.00% | [1] | ||||||
| Expected term (years) | 3 years | |||||||
| ||||||||
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
| Income Tax Disclosure [Abstract] | ||
| Decrease in net deferred tax liability | $ 1 | $ 1 |
Leases - Schedule of Supplemental Balance Sheet Information Related Leases Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
||||||
|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||
| Operating lease assets | $ 8,826 | $ 9,306 | ||||||
| Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other long-term assets | Other long-term assets | ||||||
| Finance lease assets | [1] | $ 12,302 | $ 13,213 | |||||
| Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net | ||||||
| Total lease assets | $ 21,128 | $ 22,519 | ||||||
| Current liabilities: | ||||||||
| Operating lease liabilities | $ 2,319 | $ 2,570 | ||||||
| Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | ||||||
| Finance lease liabilities | $ 4,406 | $ 4,834 | ||||||
| Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | ||||||
| Noncurrent: | ||||||||
| Operating lease liabilities | $ 6,651 | $ 6,716 | ||||||
| Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term obligations | Other long-term obligations | ||||||
| Finance lease liabilities | $ 7,790 | $ 8,179 | ||||||
| Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term obligations | Other long-term obligations | ||||||
| Total lease liabilities | $ 21,166 | $ 22,299 | ||||||
| ||||||||
Leases - Schedule of Supplemental Balance Sheet Information Related Leases Assets and Liabilities (Parentheticals) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Leases [Abstract] | ||
| Accumulated amortization of finance lease assets | $ 9.0 | $ 7.9 |
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||||||
| Leases [Abstract] | ||||||||||
| Operating lease costs | [1] | $ 796 | $ 881 | $ 1,682 | $ 1,828 | |||||
| Finance lease costs: | ||||||||||
| Amortization of leased assets | 1,331 | 995 | 2,562 | 1,924 | ||||||
| Interest expense | 113 | 69 | 224 | 136 | ||||||
| Net lease costs | $ 2,240 | $ 1,945 | $ 4,468 | $ 3,888 | ||||||
| ||||||||||
Leases - Schedule of Supplemental Cash Flow Information Related Leases (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flows for operating leases | $ 1,629 | $ 1,822 |
| Operating cash flows for finance leases | 213 | 136 |
| Financing cash flows for finance leases | 2,817 | 1,961 |
| Leased assets exchanged for new lease liabilities: | ||
| Operating leases | 1,149 | 1,279 |
| Finance leases | $ 2,111 | $ 2,331 |
Pension and Other Postretirement Employee Benefits (Components Of Net Periodic Cost (Benefit)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
| Pension Plans [Member] | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Service cost | $ 1,355 | $ 1,652 | $ 2,711 | $ 3,501 |
| Interest cost | 3,137 | 2,611 | 6,275 | 5,423 |
| Expected return on plan assets | (3,025) | (2,258) | (6,053) | (5,403) |
| Amortization of prior service cost | 11 | 18 | 22 | 36 |
| Amortization of actuarial (gain) loss | (21) | 1,148 | (42) | 3,102 |
| Net periodic cost before pension settlement charge | 2,913 | 6,659 | ||
| Pension settlement charge | 0 | 14,165 | ||
| Total net periodic cost | 1,457 | 3,171 | 2,913 | 20,824 |
| OPEB [Member] | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Service cost | 28 | 79 | 55 | 158 |
| Interest cost | 293 | 229 | 587 | 458 |
| Expected return on plan assets | 0 | 0 | 0 | 0 |
| Amortization of prior service cost | 0 | 156 | 0 | 312 |
| Amortization of actuarial (gain) loss | (166) | (95) | (332) | (190) |
| Net periodic cost before pension settlement charge | 310 | 738 | ||
| Pension settlement charge | 0 | 0 | ||
| Total net periodic cost | $ 155 | $ 369 | $ 310 | $ 738 |
Pension and Other Postretirement Employee Benefits (Narrative) (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
|
| Defined Benefit Plan Disclosure [Line Items] | |||
| Funding of pension and other postretirement benefit plans | $ 2,304,000 | $ 2,264,000 | |
| Pension Plans [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Change in participants pension benefits | 0 | ||
| Non-cash pretax settlement charge | $ 14,200,000 | ||
| Qualified Plan [Member] | Pension Plans [Member] | Funded with Plan Assets [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Transfer of outstanding pension benefit obligation related to qualified pension plans to insurance company | $ 75,600,000 | ||
Components of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|||||
| Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
| Balance, beginning of period | $ 2,228,263 | $ 1,712,198 | $ 2,263,153 | $ 1,526,133 | ||||
| Reclassifications from AOCI to earnings: | ||||||||
| Balance, end of period | 2,233,169 | 1,843,551 | 2,233,169 | 1,843,551 | ||||
| Pension and Other Postretirement Employee Benefits | ||||||||
| Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
| Balance, beginning of period | (28,625) | (43,889) | (28,494) | (51,369) | ||||
| Unrecognized gains (losses) arising in AOCI during the period: | ||||||||
| Gross | 0 | 0 | 0 | (6,157) | ||||
| Tax effect | 0 | 0 | 0 | 1,570 | ||||
| Reclassifications from AOCI to earnings: | ||||||||
| Pension settlement | [1] | 0 | 0 | 0 | 14,165 | |||
| Other | [1] | (176) | 1,227 | (352) | 3,260 | |||
| Tax effect | 43 | (312) | 88 | (4,443) | ||||
| Net of tax amount | (133) | 915 | (264) | 8,395 | ||||
| Other reclassifications | (211) | 0 | (211) | 0 | ||||
| Balance, end of period | (28,969) | (42,974) | (28,969) | (42,974) | ||||
| Cash Flow Hedges [Member] | ||||||||
| Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
| Balance, beginning of period | 108,811 | 51,407 | 126,146 | 8,131 | ||||
| Unrecognized gains (losses) arising in AOCI during the period: | ||||||||
| Gross | 22,754 | 43,935 | 8,873 | 87,427 | ||||
| Tax effect | (462) | (2,757) | (172) | (4,919) | ||||
| Reclassifications from AOCI to earnings: | ||||||||
| Gross | [2] | (4,726) | 1,411 | (8,563) | 3,444 | |||
| Tax effect | 108 | (60) | 201 | (147) | ||||
| Net of tax amount | 17,674 | 42,529 | 339 | 85,805 | ||||
| Other reclassifications | 45 | 0 | 45 | 0 | ||||
| Balance, end of period | 126,530 | 93,936 | 126,530 | 93,936 | ||||
| Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
| Accumulated Other Comprehensive Income Loss [Line Items] | ||||||||
| Balance, beginning of period | 80,186 | 7,518 | 97,652 | (43,238) | ||||
| Reclassifications from AOCI to earnings: | ||||||||
| Balance, end of period | $ 97,561 | $ 50,962 | $ 97,561 | $ 50,962 | ||||
| ||||||||
CatchMark Merger - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
|
Sep. 14, 2022
USD ($)
a
shares
|
Jun. 30, 2023
USD ($)
shares
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
shares
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2023
a
|
Dec. 31, 2022
shares
|
|
| Business Acquisition [Line Items] | |||||||
| Timber and timberlands acres owned | a | 2,200,000 | ||||||
| Common stock, issued | shares | 79,911,000 | 79,911,000 | 79,683,000 | ||||
| CatchMark merger-related expenses | $ 244 | $ 0 | $ 2,453 | $ 0 | |||
| CatchMark and CatchMark Timber Operating Partnership, LP [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Common stock, issued | shares | 11,500,000 | ||||||
| Transaction costs capitalized | $ 9,300 | ||||||
| CatchMark [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Common stock, issued | shares | 11,300,000 | ||||||
| Proceeds from Issuance of debt | $ 277,500 | ||||||
| Outstanding long-term debt | 300,000 | ||||||
| Repayments of Debt | 22,500 | ||||||
| Fair Value of Assets Acquired | 23,600 | ||||||
| CatchMark merger-related expenses | $ 200 | $ 2,500 | |||||
| Liabilities assumed in merger | 323,100 | ||||||
| CatchMark [Member] | Intangible Assets [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Fair Value of Assets Acquired | $ 3,000 | ||||||
| CatchMark Timber Operating Partnership, LP [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Common stock, issued | shares | 200,000 | ||||||
| Timber and Timberlands [Member] | CatchMark and CatchMark Timber Operating Partnership, LP [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Fair Value of Assets Acquired | $ 782,300 | ||||||
| Other Assets [Member] | CatchMark [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Fair Value of Assets Acquired | 32,000 | ||||||
| Interest Rate Swaps [Member] | CatchMark [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Term loan debt | $ 277,500 | ||||||
| CatchMark Timber Trust, Inc [Member] | Alabama, Georgia and South Carolina [Member] | |||||||
| Business Acquisition [Line Items] | |||||||
| Timber and timberlands acres owned | a | 348,000 | ||||||
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
1 Months Ended | |
|---|---|---|
Feb. 28, 2021 |
Dec. 31, 2022 |
|
| Thomson Reservoir Sediment Remediation Project [Member] | ||
| Site Contingency [Line Items] | ||
| Accrued amount | $ 5.6 | |
| Great Lakes Legacy Act [Member] | ||
| Site Contingency [Line Items] | ||
| Percentage of federal funding for remediation of contaminated sediments | 65.00% | |
| Required percentage of cash or in-kind contributions from non-federal sponsors | 35.00% |