Segment Information

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
(in thousands)	2024			2023			2024			2023
Timberlands
Northern region
Sawlogs	$	40,564		$	36,822		$	74,370		$	90,147
Pulpwood		215			369			280			772
Other		375			372			686			633
Total Northern revenues		41,154			37,563			75,336			91,552
Southern region
Sawlogs		34,309			27,802			65,525			59,556
Pulpwood		15,315			15,006			30,963			31,138
Stumpage		4,088			4,148			11,720			13,381
Other		3,936			4,098			8,208			8,228
Total Southern revenues		57,648			51,054			116,416			112,303
Total Timberlands revenues		98,802			88,617			191,752			203,855
Wood Products
Lumber		120,888			133,289			237,611			247,087
Residuals and Panels		32,691			34,380			64,566			73,377
Total Wood Products revenues		153,579			167,669			302,177			320,464
Real Estate
Rural real estate		84,853			4,570			90,379			22,389
Development real estate		7,488			9,409			10,362			12,209
Other		3,391			3,085			6,098			6,329
Total Real Estate revenues		95,732			17,064			106,839			40,927
Total segment revenues		348,113			273,350			600,768			565,246
Intersegment Timberlands revenues1		(27,442	)		(27,243	)		(51,970	)		(61,177	)
Other intersegment revenues		—			(6	)		—			(6	)
Total consolidated revenues	$	320,671		$	246,101		$	548,798		$	504,063

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 June 30,						Six Months Ended June 30,
(in thousands)	2024			2023			2024			2023
Adjusted EBITDDA:
Timberlands	$	34,124		$	29,316		$	68,872		$	75,955
Wood Products		(6,805	)		11,967			(6,944	)		11,936
Real Estate		89,568			12,237			95,796			31,702
Corporate		(11,756	)		(10,521	)		(24,421	)		(21,262	)
Eliminations and adjustments		(1,958	)		2,446			(408	)		4,891
Total Adjusted EBITDDA		103,173			45,445			132,895			103,222
Interest expense, net1		(8,696	)		(7,613	)		(8,414	)		(7,812	)
Depreciation, depletion and amortization		(29,268	)		(27,087	)		(59,663	)		(58,851	)
Basis of real estate sold		(56,525	)		(4,884	)		(60,617	)		(15,515	)
CatchMark merger-related expenses		—			(244	)		—			(2,453	)
Gain (loss) on fire damage		—			23,110			—			23,110
Non-operating pension and other postretirement employee benefits		201			(229	)		402			(457	)
Gain (loss) on disposal of fixed assets		66			(21	)		71			(21	)
Other		(23	)		258			(168	)		268
Income before income taxes	$	8,928		$	28,735		$	4,506		$	41,491
Depreciation, depletion and amortization:
Timberlands	$	16,790		$	15,895		$	34,415		$	36,356
Wood Products		12,227			10,948			24,743			21,983
Real Estate		136			121			274			277
Corporate		115			123			231			235
		29,268			27,087			59,663			58,851
Bond discounts and deferred loan fees1		406			409			813			818
Total depreciation, depletion and amortization	$	29,674		$	27,496		$	60,476		$	59,669
Basis of real estate sold:
Real Estate	$	56,528		$	4,887		$	60,622		$	15,518
Eliminations and adjustments		(3	)		(3	)		(5	)		(3	)
Total basis of real estate sold	$	56,525		$	4,884		$	60,617		$	15,515

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