Segment Information

3 Months Ended

Mar. 31, 2024

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 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 sizable 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 March 31,
(in thousands)	2024			2023
Timberlands
Northern region
Sawlogs	$	33,806		$	53,325
Pulpwood		65			403
Other		311			261
Total Northern revenues		34,182			53,989
Southern region
Sawlogs		31,216			31,754
Pulpwood		15,648			16,132
Stumpage		7,632			9,233
Other		4,272			4,130
Total Southern revenues		58,768			61,249
Total Timberlands revenues		92,950			115,238
Wood Products
Lumber		116,723			113,798
Residuals and Panels		31,875			38,997
Total Wood Products revenues		148,598			152,795
Real Estate
Rural real estate		5,526			17,819
Development real estate		2,874			2,800
Other		2,707			3,244
Total Real Estate revenues		11,107			23,863
Total segment revenues		252,655			291,896
Intersegment Timberlands revenues1		(24,528	)		(33,934	)
Total consolidated revenues	$	228,127		$	257,962

1 Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.

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 (loss) 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. 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 (loss) before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.

	Three Months Ended March 31,
(in thousands)	2024			2023
Adjusted EBITDDA:
Timberlands	$	34,748		$	46,639
Wood Products		(139	)		(31	)
Real Estate		6,228			19,465
Corporate		(12,665	)		(10,741	)
Eliminations and adjustments		1,550			2,445
Total Adjusted EBITDDA		29,722			57,777
Interest expense, net1		282			(199	)
Depreciation, depletion and amortization		(30,395	)		(31,764	)
Basis of real estate sold		(4,092	)		(10,631	)
CatchMark merger-related expenses		—			(2,209	)
Non-operating pension and other postretirement employee benefits		201			(228	)
Gain on disposal of fixed assets		5			—
Other		(145	)		10
Income (loss) before income taxes	$	(4,422	)	$	12,756
Depreciation, depletion and amortization:
Timberlands	$	17,625		$	20,461
Wood Products		12,516			11,035
Real Estate		138			156
Corporate		116			112
		30,395			31,764
Bond discounts and deferred loan fees1		407			409
Total depreciation, depletion and amortization	$	30,802		$	32,173
Basis of real estate sold:
Real Estate	$	4,094		$	10,631
Eliminations and adjustments		(2	)		—
Total basis of real estate sold	$	4,092		$	10,631

1 Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations.