wy-ex992_7.htm

Weyerhaeuser Company

Exhibit 99.2

Q1.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations

	Q4			Q1
in millions	December 31, 2019			March 31, 2020			March 31, 2019
Net sales	$	1,548		$	1,728		$	1,643
Costs of sales		1,301			1,382			1,322
Gross margin		247			346			321
Selling expenses		22			22			21
General and administrative expenses		94			74			89
Charges for integration and restructuring, closures and asset impairments		80			1			—
Other operating costs (income), net		(38	)		9			37
Operating income		89			240			174
Non-operating pension and other postretirement benefit costs		(21	)		(9	)		(470	)
Interest income and other		8			1			10
Interest expense, net of capitalized interest		(89	)		(85	)		(107	)
Earnings (loss) before income taxes		(13	)		147			(393	)
Income taxes		(1	)		3			104
Net earnings (loss)	$	(14	)	$	150		$	(289	)

Per Share Information

	Q4			Q1
	December 31, 2019			March 31, 2020		March 31, 2019
Earnings (loss) per share, basic and diluted	$	(0.02	)	$	0.20	$	(0.39	)
Dividends paid per common share	$	0.34		$	0.34	$	0.34
Weighted average shares outstanding (in thousands):
Basic		745,886			746,534		746,603
Diluted		745,886			747,155		746,603
Common shares outstanding at end of period (in thousands)		745,300			746,206		744,767

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)

	Q4			Q1
in millions	December 31, 2019			March 31, 2020			March 31, 2019
Net earnings (loss)	$	(14	)	$	150		$	(289	)
Non-operating pension and other postretirement benefit costs		21			9			470
Interest income and other		(8	)		(1	)		(10	)
Interest expense, net of capitalized interest		89			85			107
Income taxes		1			(3	)		(104	)
Operating income		89			240			174
Depreciation, depletion and amortization		128			123			123
Basis of real estate sold		11			62			48
Special items included in operating income		32			(12	)		20
Adjusted EBITDA⁽¹⁾	$	260		$	413		$	365

⁽¹⁾Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

Page 1 of 8

Weyerhaeuser Company

Total Company Statistics

Q1.2020 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

	Q4			Q1
in millions	December 31, 2019			March 31, 2020			March 31, 2019
Net earnings (loss)	$	(14	)	$	150		$	(289	)
Early extinguishment of debt charge⁽¹⁾		—			—			9
Gain on sale of timberlands		(48	)		—			—
Legal charge (benefit)		—			(12	)		15
Pension settlement charges		5			—			345
Restructuring, impairments and other charges		80			—			—
Net earnings before special items⁽²⁾	$	23		$	138		$	80

	Q4			Q1
	December 31, 2019			March 31, 2020			March 31, 2019
Net earnings (loss) per diluted share	$	(0.02	)	$	0.20		$	(0.39	)
Early extinguishment of debt charge⁽¹⁾		—			—			0.01
Gain on sale of timberlands		(0.07	)		—			—
Legal charge (benefit)		—			(0.02	)		0.02
Pension settlement charges		0.01			—			0.47
Restructuring, impairments and other charges		0.11			—			—
Net earnings per diluted share before special items⁽²⁾	$	0.03		$	0.18		$	0.11

⁽¹⁾ During first quarter 2019, we recorded a $12 million pretax ($9 million after-tax) charge related to the early extinguishment of debt. This charge is included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.

⁽²⁾ Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company’s earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

Selected Total Company Items

	Q4		Q1
in millions	December 31, 2019		March 31, 2020		March 31, 2019
Pension and postretirement costs:
Pension and postretirement service costs	$	8	$	10	$	8
Non-operating pension and other postretirement benefit costs		21		9		470
Total company pension and postretirement costs	$	29	$	19	$	478

Page 2 of 8

Weyerhaeuser Company

Q1.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet

in millions	December 31, 2019		March 31, 2020		March 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	139	$	1,458	$	259
Receivables, net		309		390		398
Receivables for taxes		98		24		163
Inventories		416		480		451
Assets held for sale		140		—		—
Prepaid expenses and other current assets		147		141		141
Current restricted financial investments held by variable interest entities		362		—		362
Total current assets		1,611		2,493		1,774
Property and equipment, net		1,969		1,911		1,917
Construction in progress		130		153		102
Timber and timberlands at cost, less depletion		11,929		11,847		12,586
Minerals and mineral rights, less depletion		281		278		291
Deferred tax assets		72		147		18
Other assets		414		399		444
Total assets	$	16,406	$	17,228	$	17,132

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—	$	577	$	—
Current debt (nonrecourse to the company) held by variable interest entities		—		—		302
Borrowings on line of credit		230		550		245
Accounts payable		246		241		243
Accrued liabilities		530		448		411
Total current liabilities		1,006		1,816		1,201
Long-term debt, net		6,147		6,299		6,156
Deferred tax liabilities		6		10		34
Deferred pension and other postretirement benefits		693		669		542
Other liabilities		377		352		398
Total liabilities		8,229		9,146		8,331
Total equity		8,177		8,082		8,801
Total liabilities and equity	$	16,406	$	17,228	$	17,132

Page 3 of 8

Weyerhaeuser Company

Q1.2020 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows

	Q4			Q1
in millions	December 31, 2019			March 31, 2020			March 31, 2019
Cash flows from operations:
Net earnings (loss)	$	(14	)	$	150		$	(289	)
Noncash charges (credits) to earnings (loss):
Depreciation, depletion and amortization		128			123			123
Basis of real estate sold		11			62			48
Deferred income taxes, net		(5	)		(82	)		(123	)
Pension and other postretirement benefits		29			19			478
Share-based compensation expense		7			7			9
Charges for impairment of assets		80			—			—
Net gains on sale of nonstrategic timberlands		(48	)		—			—
Change in:
Receivables, less allowances		60			(82	)		(77	)
Receivables and payables for taxes		51			79			(31	)
Inventories		(21	)		(72	)		(60	)
Prepaid expenses and other current assets		1			(2	)		(5	)
Accounts payable and accrued liabilities		50			(91	)		(82	)
Pension and postretirement benefit contributions and payments		(9	)		(10	)		(14	)
Other		(28	)		(15	)		9
Net cash from operations	$	292		$	86		$	(14	)
Cash flows from investing activities:
Capital expenditures for property and equipment	$	(128	)	$	(47	)	$	(41	)
Capital expenditures for timberlands reforestation		(15	)		(21	)		(18	)
Proceeds from note receivable held by variable interest entities		—			362			253
Proceeds from sale of nonstrategic timberlands		297			145			—
Other		1			2			18
Net cash from investing activities	$	155		$	441		$	212
Cash flows from financing activities:
Cash dividends on common shares	$	(253	)	$	(254	)	$	(254	)
Net proceeds from issuance of long-term debt		—			732			739
Payments of long-term debt		—			—			(512	)
Proceeds from borrowings on line of credit		220			550			245
Payments on line of credit		(430	)		(230	)		(425	)
Proceeds from exercise of stock options		5			6			2
Repurchases of common shares		—			—			(60	)
Other		(3	)		(12	)		(8	)
Net cash from financing activities	$	(461	)	$	792		$	(273	)

Net change in cash and cash equivalents	$	(14	)	$	1,319		$	(75	)
Cash and cash equivalents at beginning of period		153			139			334
Cash and cash equivalents at end of period	$	139		$	1,458		$	259

Cash paid (received) during the period for:
Interest, net of amounts capitalized	$	60		$	108		$	127
Income taxes, net of refunds	$	(48	)	$	—		$	50

Page 4 of 8

Weyerhaeuser Company

Timberlands Segment

Q1.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions	Q4.2019			Q1.2020			Q1.2019
Sales to unaffiliated customers	$	388		$	381		$	431
Intersegment sales		122			122			125
Total net sales		510			503			556
Costs of sales		402			375			413
Gross margin		108			128			143
Selling expenses		—			—			1
General and administrative expenses		23			24			22
Charges for integration and restructuring, closures and asset impairments		80			—			—
Other operating income, net		(48	)		(1	)		—
Operating income and Net contribution to earnings	$	53		$	105		$	120

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q4.2019		Q1.2020		Q1.2019
Operating income	$	53	$	105	$	120
Depreciation, depletion and amortization		73		68		73
Special items		32		—		—
Adjusted EBITDA⁽¹⁾	$	158	$	173	$	193

⁽¹⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Segment Special Items Included in Net Contribution to Earnings (Pretax)

in millions	Q4.2019			Q1.2020		Q1.2019
Gain on sale of timberlands	$	(48	)	$	—	$	—
Restructuring, impairments and other charges	$	80		$	—	$	—

Selected Segment Items

in millions	Q4.2019			Q1.2020			Q1.2019
Total decrease (increase) in working capital⁽²⁾	$	(12	)	$	(3	)	$	(24	)
Cash spent for capital expenditures	$	(33	)	$	(30	)	$	(26	)

⁽²⁾Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

Segment Statistics⁽³⁾

		Q4.2019		Q1.2020		Q1.2019
Third Party	Delivered logs:
Net Sales	West	$	169	$	177	$	205
(millions)	South		157		150		159
	North		22		17		29
	Total delivered logs		348		344		393
	Stumpage and pay-as-cut timber		13		5		9
	Recreational and other lease revenue		16		15		15
	Other revenue		11		17		14
	Total	$	388	$	381	$	431
Delivered Logs	West	$	102.12	$	104.91	$	106.92
Third Party Sales	South	$	34.71	$	34.27	$	35.35
Realizations (per ton)	North	$	56.95	$	60.51	$	59.68
Delivered Logs	West		1,660		1,684		1,920
Third Party Sales	South		4,538		4,365		4,499
Volumes (tons, thousands)	North		372		284		494
Fee Harvest Volumes	West		2,214		2,310		2,385
(tons, thousands)	South		6,617		6,130		6,492
	North		477		386		627

⁽³⁾ Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

Page 5 of 8

Weyerhaeuser Company

Real Estate, Energy & Natural Resources Segment

Q1.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions	Q4.2019			Q1.2020		Q1.2019
Net sales	$	46		$	112	$	118
Costs of sales		18			70		56
Gross margin		28			42		62
General and administrative expenses		7			6		7
Other operating income, net		(1	)		—		—
Operating income and Net contribution to earnings	$	22		$	36	$	55

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q4.2019		Q1.2020		Q1.2019
Operating income	$	22	$	36	$	55
Depreciation, depletion and amortization		4		3		3
Basis of real estate sold		11		62		48
Adjusted EBITDA⁽¹⁾	$	37	$	101	$	106

⁽¹⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Selected Segment Items

in millions

Q4.2019

Q1.2020

Q1.2019

Cash spent for capital expenditures

—

Segment Statistics

		Q4.2019			Q1.2020			Q1.2019
Net Sales	Real Estate	$	25		$	95		$	96
(millions)	Energy and Natural Resources		21			17			22
	Total	$	46		$	112		$	118
Acres Sold	Real Estate		9,394			44,974			38,834
Price per Acre	Real Estate	$	2,308		$	1,992		$	2,424
Basis as a Percent of Real Estate Net Sales	Real Estate		44	%		65	%		50	%

Page 6 of 8

Weyerhaeuser Company

Wood Products Segment

Q1.2020 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions	Q4.2019		Q1.2020		Q1.2019
Net sales	$	1,115	$	1,235	$	1,094
Costs of sales		994		1,040		967
Gross margin		121		195		127
Selling expenses		21		21		19
General and administrative expenses		35		36		35
Charges for integration and restructuring, closures and asset impairments		—		1		—
Other operating costs, net		5		3		4
Operating income and Net contribution to earnings	$	60	$	134	$	69

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q4.2019		Q1.2020		Q1.2019
Operating income	$	60	$	134	$	69
Depreciation, depletion and amortization		50		50		46
Adjusted EBITDA⁽¹⁾	$	110	$	184	$	115

⁽¹⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Selected Segment Items

in millions	Q4.2019			Q1.2020			Q1.2019
Total decrease (increase) in working capital⁽²⁾	$	49		$	(186	)	$	(155	)
Cash spent for capital expenditures	$	(109	)	$	(38	)	$	(30	)

⁽²⁾ Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

Segment Statistics

in millions, except for third party sales realizations		Q4.2019		Q1.2020		Q1.2019
Structural Lumber	Third party net sales	$	466	$	508	$	444
(volumes presented	Third party sales realizations	$	389	$	416	$	392
in board feet)	Third party sales volumes⁽³⁾		1,197		1,222		1,133
	Production volumes		1,178		1,209		1,145
Oriented Strand	Third party net sales	$	157	$	190	$	160
Board	Third party sales realizations	$	216	$	246	$	223
(volumes presented	Third party sales volumes⁽³⁾		726		770		717
in square feet 3/8")	Production volumes		757		777		729
Engineered Solid	Third party net sales	$	122	$	127	$	116
Section	Third party sales realizations	$	2,166	$	2,149	$	2,218
(volumes presented	Third party sales volumes⁽³⁾		5.6		5.9		5.2
in cubic feet)	Production volumes		5.4		6.1		5.9
Engineered	Third party net sales	$	77	$	78	$	70
I-joists	Third party sales realizations	$	1,678	$	1,667	$	1,709
(volumes presented	Third party sales volumes⁽³⁾		45		47		41
in lineal feet)	Production volumes		43		47		44
Softwood Plywood	Third party net sales	$	31	$	39	$	44
(volumes presented	Third party sales realizations	$	337	$	348	$	383
in square feet 3/8")	Third party sales volumes⁽³⁾		94		113		115
	Production volumes		84		97		98
Medium Density	Third party net sales	$	39	$	44	$	38
Fiberboard	Third party sales realizations	$	826	$	841	$	846
(volumes presented	Third party sales volumes⁽³⁾		48		52		44
in square feet 3/4")	Production volumes		49		56		45

⁽³⁾Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

Page 7 of 8

Weyerhaeuser Company

Unallocated Items

Q1.2020 Analyst Package

Preliminary results (unaudited)

Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.

Net Charge to Earnings

in millions	Q4.2019			Q1.2020			Q1.2019
Unallocated corporate function and variable compensation expense	$	(30	)	$	(19	)	$	(19	)
Liability classified share-based compensation		(2	)		10			(4	)
Foreign exchange gain (loss)		—			(8	)		(3	)
Elimination of intersegment profit in inventory and LIFO		(1	)		(13	)		(5	)
Other, net		(13	)		(5	)		(39	)
Operating income (loss)		(46	)		(35	)		(70	)
Non-operating pension and other postretirement benefit costs		(21	)		(9	)		(470	)
Interest income and other		8			1			10
Net charge to earnings	$	(59	)	$	(43	)	$	(530	)

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q4.2019			Q1.2020			Q1.2019
Operating income (loss)	$	(46	)	$	(35	)	$	(70	)
Depreciation, depletion and amortization		1			2			1
Special items		—			(12	)		20
Adjusted EBITDA⁽¹⁾	$	(45	)	$	(45	)	$	(49	)

⁽¹⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Unallocated Special Items Included in Net Charge to Earnings (Pretax)

in millions	Q4.2019			Q1.2020		Q1.2019
Legal benefit (charge)		—			12		(20	)
Special items included in operating income (loss)		—			12		(20	)
Pension settlement charges		(6	)		—		(455	)
Special items included in net charge to earnings	$	(6	)	$	12	$	(475	)

Unallocated Selected Items

in millions		Q4.2019				Q1.2020				Q1.2019
Cash spent for capital expenditures		$	(1	)		$	—			$	(3	)

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