Potlatchdeltic Corporation Reports Third Quarter 2020 Results

Posted by Jo English on 27th October 2020

Potlatchdeltic Corporation Reports Third Quarter 2020 Results

SPOKANE, Wash.–(BUSINESS WIRE)– PotlatchDeltic Corporation (Nasdaq:PCH) yesterday reported net income of $81.0 million, or $1.20 per diluted share, on revenues of $313.0 million for the quarter ended September 30, 2020. Net income was $20.6 million, or $0.30 per diluted share, on revenues of $226.3 million for the quarter ended September 30, 2019.

Third Quarter 2020 Highlights

  • Generated record quarterly Total Adjusted EBITDDA of $135.4 million and Total Adjusted EBITDDA margin of 43%
  • Historic lumber prices drove Wood Products record quarterly Adjusted EBITDDA performance
  • Timberlands set quarterly records for harvest volume and Adjusted EBITDDA
  • Expanded strong liquidity position to $528 million as of Q3 2020

“Our Timberlands and Wood Products businesses achieved record financial performance as outstanding operational execution by our employees capitalized on the historic run in lumber prices against the backdrop of a challenging COVID environment,” said Mike Covey, chairman and chief executive officer. “Looking to the fourth quarter of 2020, our financial results will continue to benefit from high lumber prices through an extended lumber order file and lagged index pricing on our Idaho sawlogs. Additionally, we expect that our Real Estate business will finish the year very strong by closing a large Minnesota transaction. PotlatchDeltic is well positioned to take advantage of favorable industry fundamentals and our strong liquidity provides a high degree of flexibility as we seek to maximize shareholder value,” stated Mr. Covey.

Business Performance: Q3 2020 vs. Q2 2020

Timberlands

Third Quarter 2020 Highlights

  • Timberlands Adjusted EBITDDA increased $34.1 million from Q2 levels
  • Northern and Southern harvest volumes increased seasonally
  • Northern sawlog prices increased 30% due primarily to higher prices on lumber-indexed volume

Wood Products

Third Quarter 2020 Highlights

  • Wood Products Adjusted EBITDDA increased $70.8 million from Q2 2020 levels
  • Average lumber price was $637 per MBF Q3 2020, 55% higher than Q2 2020
  • Lumber shipments increased 17% in Q3 2020 driven by higher production hours
  • Wood Products positively impacted by plywood mill returning to normal operating level after Q2 2020 curtailment

Real Estate

Third Quarter 2020 Highlights

  • Real Estate Adjusted EBITDDA increased $4.1 million from Q2 2020 levels
  • Sold 11,048 acres of rural land for $1,202/acre
  • Sold 26 residential lots at an average $83,000/lot in Q3 2020

 

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

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

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

Reconciliations to GAAP are set forth in the accompanying schedules.

Conference Call Information
A live conference call and webcast will be held Tuesday, October 27, 2020, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time). Investors may access the webcast at www.potlatchdeltic.com by clicking on the Investors link or by conference call at 1-833-968-2227 for U.S./Canada and 1-778-560-2697 for international callers. Participants will be asked to provide conference I.D. number 9171206. Supplemental materials that will be discussed during the call are available on the website.

A replay of the conference call will be available three hours following the call until November 3, 2020 by calling 1-800-585-8367 for U.S./Canada or 1-416-621-4642 for international callers. Callers must enter conference I.D. number 9171206 to access the replay.

About PotlatchDeltic
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns 1.8 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com.

 

INVESTOR CONTACT

Jerry Richards
Vice President and Chief Financial Officer
Investor@PotlatchDeltic.com
Source: PotlatchDeltic Corporation

Photo: Chairman, President & Chief Executive Officer at Potlatch Corporation