SPOKANE, WA – PotlatchDeltic Corporation today reported net income of $3.8 million on revenues of $253.1 million for the quarter ended December 31st. Excluding after-tax special items consisting of CatchMark merger-related expenses, and an environmental charge, adjusted net income was $9.3 million for the fourth quarter of 2022. Net income was $39.2 million on revenues of $248.4 million for the quarter ended December 31st. Excluding a net loss on fire damage, adjusted net income was $39.9 million for the fourth quarter of 2021.
Net income for the full year 2022 was $333.9 million on revenues of $1.3 billion. Excluding after-tax special items consisting of a pension settlement charge, a gain on insurance recoveries, CatchMark merger-related expenses, and an environmental charge, adjusted net income was $350.0 million for 2022. Net income for the full year 2021 was $423.9 million on revenues of $1.3 billion. Excluding a net gain on insurance recoveries, adjusted net income was $421.4 million for 2021.
2022 Highlights
- Generated Total Adjusted EBITDDA of $574.1 million and Total Adjusted EBITDDA margin of 43%
- Acquired CatchMark Timber Trust, Inc. adding nearly 350,000 acres of superior site index southern timberlands
- Also acquired 46,000 acres of well stocked timberlands in three bolt-on transactions
- Announced $131 million expansion and modernization of Waldo, Arkansas sawmill
- Rebuilt and restarted the large log line at the Ola, Arkansas sawmill
- Returned $208 million to shareholders through regular dividends and a Q4 special dividend
- Repurchased 1.2 million shares for $55 million, or $45 per share
- Maintained strong liquidity position of $643 million as of December 31, 2022
“Each of our businesses delivered exceptional results in 2022 leading to our second highest Total Adjusted EBITDDA on record and marking our third straight year of very strong financial performance,” said Eric Cremers, president and chief executive officer. “2022 was also a very active year for successfully deploying capital, including acquiring nearly 400,000 acres of high-quality timberland and committing to expand and modernize our Waldo, Arkansas sawmill. Additionally, we returned $263 million to shareholders in 2022, including $55 million of share repurchases and a $76 million special dividend. With our disciplined capital allocation strategy and our strong balance sheet and liquidity we are well positioned to continue increasing shareholder value,” stated Mr. Cremers.
Financial Highlights
|
(in millions, except per share data – unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
Q4 2021 |
|
|
|||
|
Revenues |
|
$ |
253.1 |
|
|
$ |
306.7 |
|
|
$ |
248.4 |
|
|
|
Net income |
|
$ |
3.8 |
|
|
$ |
46.0 |
|
|
$ |
39.2 |
|
|
|
Weighted average shares outstanding, diluted (in thousands) |
|
|
80,578 |
|
|
|
71,632 |
|
|
|
67,974 |
|
|
|
Net income per diluted share |
|
$ |
0.05 |
|
|
$ |
0.64 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Adjusted Net Income |
|
$ |
9.3 |
|
|
$ |
53.2 |
|
|
$ |
39.9 |
|
|
|
Adjusted Net Income Per Diluted Share |
|
$ |
0.12 |
|
|
$ |
0.74 |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Total Adjusted EBITDDA |
|
$ |
52.3 |
|
|
$ |
101.1 |
|
|
$ |
75.7 |
|
|
|
Dividends per share1 |
|
$ |
1.40 |
|
|
$ |
0.44 |
|
|
$ |
4.44 |
|
|
|
Net cash from operations |
|
$ |
33.5 |
|
|
$ |
80.3 |
|
|
$ |
51.6 |
|
|
|
Cash and cash equivalents |
|
$ |
343.8 |
|
|
$ |
484.0 |
|
|
$ |
296.2 |
|
|
|
1 The regular dividend was increased 2.3% to $0.45 per quarter in Q4 2022 and a special dividend of $0.95 and $4.00 per share was paid in Q4 2022 and 2021, respectively. |
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Business Performance: Q4 2022 vs. Q3 2022
Timberlands
Fourth Quarter 2022 Highlights
- Timberlands Adjusted EBITDDA decreased $13.9 million from Q3 2022
- Northern sawlog prices decreased 18% due primarily to lower indexed sawlog prices
- A seasonal decline in Southern harvest volumes was moderated by the first full quarter of CatchMark operations
- Southern sawlog prices increased 3%, reflecting the addition of strong CatchMark markets
- Higher log & haul costs were primarily due to inflationary pressures, including increased diesel costs
|
(in millions – unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
$ Change |
|
|||
|
Timberlands Revenues |
|
$ |
121.9 |
|
|
$ |
134.6 |
|
|
$ |
(12.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Timberlands Adjusted EBITDDA |
|
$ |
50.6 |
|
|
$ |
64.5 |
|
|
$ |
(13.9 |
) |
Wood Products
Fourth Quarter 2022 Highlights
- Wood Products Adjusted EBITDDA decreased $28.9 million from Q3 2022
- Average lumber price decreased 17% to $473 per MBF in Q4 2022
- Lumber production declined in Q4 2022 leading to lower fixed cost absorption
- Log costs decreased primarily due to lower index pricing in Idaho
- Plywood shipments and price realizations declined on lower demand
|
(in millions – unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
$ Change |
|
|||
|
Wood Products Revenues |
|
$ |
156.8 |
|
|
$ |
193.4 |
|
|
$ |
(36.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Wood Products Adjusted EBITDDA |
|
$ |
2.4 |
|
|
$ |
31.3 |
|
|
$ |
(28.9 |
) |
Real Estate
Fourth Quarter 2022 Highlights
- Real Estate Adjusted EBITDDA decreased $6.9 million from Q3 2022
- Sold 1,329 acres of rural land at an average price of $2,837 per acre
- Sold 24 residential lots at an average price of $132,000 per lot
- Sold 5 commercial acres at an average of $437,407 per acre
|
(in millions – unaudited) |
|
Q4 2022 |
|
|
Q3 2022 |
|
|
$ Change |
|
|||
|
Real Estate Revenues |
|
$ |
11.7 |
|
|
$ |
19.0 |
|
|
$ |
(7.3 |
) |
|
|
|
|
|
|
|
|
|
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|
Real Estate Adjusted EBITDDA |
|
$ |
7.2 |
|
|
$ |
14.1 |
|
|
$ |
(6.9 |
) |
