Exhibit 99.1
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News Release
For immediate release:
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Contact: |
(Investors) |
(Media) |
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Jerry Richards |
Anna Torma |
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509.835.1521 |
509.835.1558 |
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PotlatchDeltic Corporation Reports Second Quarter 2020 Results
SPOKANE, Wash., July 27, 2020 (GLOBE NEWSWIRE) – PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of $2.6 million, or $0.04 per diluted share, on revenues of $181.6 million for the quarter ended June 30, 2020. Net income was $17.1 million, or $0.25 per diluted share, on revenues of $215.6 million for the quarter ended June 30, 2019.
Second Quarter 2020 Highlights
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• |
Generated $35.3 million of Total Adjusted EBITDDA and Total Adjusted EBITDDA margin of 19% |
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• |
Announced agreement to sell ~72,000 acres in Minnesota for ~$48 million |
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• |
Maintained strong liquidity of $460 million as of Q2 2020 |
"Our employees did an excellent job managing through the constraints and challenges imposed by the COVID pandemic and our three business segments performed well during what is typically our seasonally lightest quarter,” said Mike Covey, chairman and chief executive officer. "Lumber markets are in the midst of a historic run and we are focused on safely meeting customer demand. Cash generated from operations, along with proceeds from the Minnesota transaction that we announced in the second quarter, will further enhance our strong liquidity and provide additional flexibility to maximize shareholder value," stated Mr. Covey.
Financial Highlights
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($ in millions, except per share data) |
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Q2 2020 |
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Q1 2020 |
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Q2 2019 |
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Revenues |
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$ |
181.6 |
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$ |
208.9 |
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$ |
215.6 |
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Net income (loss) |
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$ |
2.6 |
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$ |
(16.8 |
) |
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$ |
17.1 |
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Weighted average shares outstanding, diluted (in thousands) |
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67,359 |
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67,478 |
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67,713 |
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Net income (loss) per diluted share |
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$ |
0.04 |
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$ |
(0.25 |
) |
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$ |
0.25 |
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Adjusted net income |
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$ |
2.6 |
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$ |
15.0 |
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$ |
17.1 |
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Adjusted net income per diluted share |
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$ |
0.04 |
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$ |
0.22 |
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$ |
0.25 |
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Total Adjusted EBITDDA |
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$ |
35.3 |
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$ |
47.6 |
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$ |
49.0 |
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Dividends per share |
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$ |
0.40 |
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$ |
0.40 |
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$ |
0.40 |
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Net cash from operations |
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$ |
39.8 |
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$ |
48.1 |
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$ |
48.5 |
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Cash and cash equivalents |
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$ |
81.0 |
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$ |
79.5 |
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$ |
98.0 |
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1
Business Performance: Q2 2020 vs. Q1 2020
Timberlands
Second Quarter 2020 Highlights
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Timberlands Adjusted EBITDDA decreased $9.4 million from Q1 2020 levels |
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• |
Northern sawlog volumes decreased seasonally during spring breakup |
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• |
Northern sawlog prices slightly higher due to seasonally lighter logs and slightly higher index pricing |
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• |
Southern harvest volumes decreased because of customer mill curtailments |
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• |
Southern sawlog prices were slightly lower due to weaker demand |
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($ in millions) |
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Q2 2020 |
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Q1 2020 |
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$ Change |
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Timberlands Revenues |
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$ |
67.3 |
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$ |
82.4 |
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$ |
(15.1 |
) |
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Timberlands Adjusted EBITDDA |
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$ |
25.6 |
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$ |
35.0 |
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$ |
(9.4 |
) |
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Wood Products
Second Quarter 2020 Highlights
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• |
Wood Products Adjusted EBITDDA decreased $2.3 million from Q1 2020 levels |
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Average lumber price was $412 per MBF Q2 2020, 4% higher than Q1 2020 |
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Lumber shipments decreased 12% in Q2 2020 driven by lower production hours |
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Wood Products results were also negatively impacted by Q2 2020 temporary plywood mill curtailment and reduced operating posture |
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($ in millions) |
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Q2 2020 |
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Q1 2020 |
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$ Change |
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Wood Products Revenues |
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$ |
126.2 |
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$ |
145.0 |
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$ |
(18.8 |
) |
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Wood Products Adjusted EBITDDA |
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$ |
10.9 |
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$ |
13.2 |
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$ |
(2.3 |
) |
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Real Estate
Second Quarter 2020 Highlights
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Real Estate Adjusted EBITDDA increased $2.0 million from Q1 2020 levels |
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Sold 17 residential lots at an average $97,000/lot in Q2 2020 |
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• |
Sold 5,537 acres of rural land for $1,784/acre |
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($ in millions) |
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Q2 2020 |
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Q1 2020 |
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$ Change |
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$ |
13.0 |
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$ |
11.0 |
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$ |
2.0 |
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Real Estate Adjusted EBITDDA |
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$ |
9.3 |
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$ |
7.3 |
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$ |
2.0 |
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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
2
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.
A live conference call and webcast will be held Tuesday, July 28, 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 4488976. 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 August 4, 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 4488976 to access the replay.
About PotlatchDeltic
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 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 practices, is dedicated to long-term stewardship and sustainable management of its timber resources. More information can be found at www.potlatchdeltic.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s current and expected liquidity; ability to manage the effects of COVID-19 on demand for our products and on our ability to continue operations; the success of the company’s business strategies; the company’s intent to refinance debt maturing in 2020 and beyond; maintaining the company’s investment grade credit rating; favorable capital structure and strong balance sheet; interest rates and expenses; corporate expenses; pension expenses; taxes; third quarter 2020 outlook; U.S. housing market and repair and remodel market; U.S. housing starts; lumber demand and pricing; revenues, costs and expenses; lumber shipment volumes; expected sawlog demand and timber harvest volumes; sawlog mix and pricing; rural real estate and residential real estate development sales, including the closing of the sale of approximately 72,000 rural acres in the fourth quarter of 2020, and average price per acre and developed lot; planned capital expenditures in 2020; business conditions; and similar matters. Words such as “anticipate,” “expect,” “will,” “intend,” “plan,” “target,” “project,” “believe,” “seek,” “schedule,” “estimate,” “could,” “can,” “may,” and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other “forward-looking” information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic’s control, including impact of the recent coronavirus (COVID-19) outbreak on our business, suppliers, customers and employees; changes in the U.S. housing market; changes in timberland values; changes in timber harvest levels on the company's lands; changes in timber prices; changes in policy regarding governmental timber sales; availability of logging contractors and shipping capacity; changes in the United States and international economies and effects on our customers and suppliers; changes in interest rates; credit availability and homebuyers’ ability to qualify for mortgages; availability of labor and developable land; changes in the level of construction and remodeling activity; changes in Asia demand; changes in tariffs, quotas and trade agreements involving wood products; currency fluctuation; changes in demand for our products and real estate; changes in production and production capacity in the forest products industry; competitive pricing pressures for our products; unanticipated manufacturing disruptions; disruptions or inefficiencies in our supply chain and/or operations; changes in general and industry-specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; fires and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; the successful execution of the company’s strategic plans; the company’s ability to meet expectations; and the other factors described in PotlatchDeltic’s Annual Report on Form 10-K and in the company’s other filings with the SEC. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.
3
PotlatchDeltic Corporation
Condensed Consolidated Statements of Operations
Unaudited
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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(in thousands, except per share amounts) |
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2020 |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenues |
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$ |
181,555 |
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$ |
208,880 |
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$ |
215,581 |
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$ |
390,435 |
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$ |
397,297 |
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Costs and expenses: |
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Cost of goods sold |
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149,836 |
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172,046 |
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175,673 |
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321,882 |
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329,888 |
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Selling, general and administrative expenses |
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16,811 |
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14,207 |
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14,952 |
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31,018 |
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31,522 |
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Gain on sale of facility |
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— |
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— |
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— |
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— |
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(9,176 |
) |
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166,647 |
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186,253 |
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190,625 |
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352,900 |
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352,234 |
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Operating income |
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14,908 |
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22,627 |
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24,956 |
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37,535 |
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45,063 |
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Interest expense, net |
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(8,339 |
) |
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(3,698 |
) |
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(7,882 |
) |
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(12,037 |
) |
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(13,346 |
) |
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Loss on extinguishment of debt |
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— |
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— |
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— |
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— |
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(5,512 |
) |
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Pension settlement charge |
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— |
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(42,988 |
) |
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— |
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(42,988 |
) |
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— |
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Non-operating pension and other postretirement employee benefit costs |
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(3,478 |
) |
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(3,635 |
) |
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(889 |
) |
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(7,113 |
) |
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(1,869 |
) |
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Income (loss) before income taxes |
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|
3,091 |
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(27,694 |
) |
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|
16,185 |
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(24,603 |
) |
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|
24,336 |
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Income taxes |
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(453 |
) |
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|
10,862 |
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|
952 |
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|
10,409 |
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(639 |
) |
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Net income (loss) |
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$ |
2,638 |
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$ |
(16,832 |
) |
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$ |
17,137 |
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$ |
(14,194 |
) |
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$ |
23,697 |
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Net income (loss) per share: |
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Basic |
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$ |
0.04 |
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$ |
(0.25 |
) |
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$ |
0.25 |
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$ |
(0.21 |
) |
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$ |
0.35 |
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Diluted |
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$ |
0.04 |
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$ |
(0.25 |
) |
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$ |
0.25 |
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$ |
(0.21 |
) |
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$ |
0.35 |
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Dividends per share |
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$ |
0.40 |
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$ |
0.40 |
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$ |
0.40 |
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$ |
0.80 |
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$ |
0.80 |
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Weighted-average shares outstanding: |
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Basic |
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67,176 |
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67,478 |
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67,664 |
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|
67,321 |
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|
67,774 |
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Diluted |
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|
67,359 |
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67,478 |
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67,713 |
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|
67,321 |
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|
67,866 |
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4
PotlatchDeltic Corporation
Condensed Consolidated Balance Sheets
Unaudited
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(in thousands, except per share amounts) |
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June 30, 2020 |
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December 31, 2019 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
80,987 |
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$ |
83,310 |
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Customer receivables, net |
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24,588 |
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|
14,167 |
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Inventories, net |
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52,215 |
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|
65,781 |
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Other current assets |
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22,107 |
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|
20,183 |
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Total current assets |
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179,897 |
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|
183,441 |
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Property, plant and equipment, net |
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|
286,169 |
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|
286,383 |
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Investment in real estate held for development and sale |
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|
73,541 |
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|
74,233 |
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Timber and timberlands, net |
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1,618,975 |
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1,638,663 |
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Intangible assets, net |
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|
16,660 |
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|
17,049 |
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Other long-term assets |
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|
29,928 |
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|
|
35,290 |
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Total assets |
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$ |
2,205,170 |
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$ |
2,235,059 |
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|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
75,937 |
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$ |
60,577 |
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Current portion of long-term debt |
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|
45,988 |
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|
45,974 |
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|
Current portion of pension and other postretirement employee benefits |
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|
6,701 |
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|
|
6,701 |
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|
Total current liabilities |
|
|
128,626 |
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|
|
113,252 |
|
|
Long-term debt |
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|
711,001 |
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|
|
710,495 |
|
|
Pension and other postretirement employee benefits |
|
|
142,708 |
|
|
|
115,463 |
|
|
Deferred tax liabilities, net |
|
|
10,942 |
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|
|
20,165 |
|
|
Other long-term obligations |
|
|
86,417 |
|
|
|
48,853 |
|
|
Total liabilities |
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|
1,079,694 |
|
|
|
1,008,228 |
|
|
Commitments and contingencies |
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|
|
|
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Stockholders' equity: |
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|
Preferred stock, authorized 4,000 shares, no shares issued |
|
|
— |
|
|
|
— |
|
|
Common stock, $1 par value, authorized 100,000 shares, issued 66,871 and 67,221 shares |
|
|
66,871 |
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|
|
67,221 |
|
|
Additional paid-in capital |
|
|
1,670,184 |
|
|
|
1,666,299 |
|
|
Accumulated deficit |
|
|
(442,153 |
) |
|
|
(359,330 |
) |
|
Accumulated other comprehensive loss |
|
|
(169,426 |
) |
|
|
(147,359 |
) |
|
Total stockholders’ equity |
|
|
1,125,476 |
|
|
|
1,226,831 |
|
|
Total liabilities and stockholders' equity |
|
$ |
2,205,170 |
|
|
$ |
2,235,059 |
|
|
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5
PotlatchDeltic Corporation
Condensed Consolidated Statements of Cash Flows
Unaudited
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||
|
(in thousands) |
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
June 30, 2019 |
|
|
June 30, 2020 |
|
|
June 30, 2019 |
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|||||
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CASH FLOWS FROM OPERATING ACTIVITIES |
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|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
Net income (loss) |
|
$ |
2,638 |
|
|
$ |
(16,832 |
) |
|
$ |
17,137 |
|
|
$ |
(14,194 |
) |
|
$ |
23,697 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
18,171 |
|
|
|
19,044 |
|
|
|
17,137 |
|
|
|
37,215 |
|
|
|
33,411 |
|
|
Basis of real estate sold |
|
|
2,693 |
|
|
|
6,498 |
|
|
|
7,427 |
|
|
|
9,191 |
|
|
|
8,983 |
|
|
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,176 |
) |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,512 |
|
|
Change in deferred taxes |
|
|
(1,466 |
) |
|
|
(12,383 |
) |
|
|
(1,139 |
) |
|
|
(13,849 |
) |
|
|
(17,238 |
) |
|
Pension and other postretirement employee benefits |
|
|
5,765 |
|
|
|
6,068 |
|
|
|
2,831 |
|
|
|
11,833 |
|
|
|
5,937 |
|
|
Pension settlement charge |
|
|
— |
|
|
|
42,988 |
|
|
|
— |
|
|
|
42,988 |
|
|
|
— |
|
|
Equity-based compensation expense |
|
|
1,980 |
|
|
|
1,885 |
|
|
|
1,832 |
|
|
|
3,865 |
|
|
|
3,449 |
|
|
Other, net |
|
|
(414 |
) |
|
|
237 |
|
|
|
(1,142 |
) |
|
|
(177 |
) |
|
|
(1,928 |
) |
|
Change in working capital and operating-related activities, net |
|
|
13,840 |
|
|
|
2,557 |
|
|
|
8,507 |
|
|
|
16,397 |
|
|
|
22,490 |
|
|
Real estate development expenditures |
|
|
(2,109 |
) |
|
|
(378 |
) |
|
|
(2,715 |
) |
|
|
(2,487 |
) |
|
|
(4,481 |
) |
|
Funding of pension and other postretirement employee benefits |
|
|
(1,293 |
) |
|
|
(1,546 |
) |
|
|
(1,421 |
) |
|
|
(2,839 |
) |
|
|
(3,135 |
) |
|
Net cash provided by operating activities |
|
|
39,805 |
|
|
|
48,138 |
|
|
|
48,454 |
|
|
|
87,943 |
|
|
|
67,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment additions |
|
|
(5,256 |
) |
|
|
(5,039 |
) |
|
|
(11,742 |
) |
|
|
(10,295 |
) |
|
|
(15,502 |
) |
|
Timberlands reforestation and roads |
|
|
(3,466 |
) |
|
|
(4,310 |
) |
|
|
(3,948 |
) |
|
|
(7,776 |
) |
|
|
(8,190 |
) |
|
Acquisition of timber and timberlands |
|
|
(540 |
) |
|
|
(4,190 |
) |
|
|
(278 |
) |
|
|
(4,730 |
) |
|
|
(278 |
) |
|
Proceeds on sale of facility |
|
|
— |
|
|
|
1,000 |
|
|
|
(1,252 |
) |
|
|
1,000 |
|
|
|
58,793 |
|
|
Other, net |
|
|
608 |
|
|
|
1,505 |
|
|
|
303 |
|
|
|
2,113 |
|
|
|
433 |
|
|
Net cash (used in) provided by investing activities |
|
|
(8,654 |
) |
|
|
(11,034 |
) |
|
|
(16,917 |
) |
|
|
(19,688 |
) |
|
|
35,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to common stockholders |
|
|
(26,744 |
) |
|
|
(26,941 |
) |
|
|
(26,881 |
) |
|
|
(53,685 |
) |
|
|
(53,946 |
) |
|
Repurchase of common stock |
|
|
(3,009 |
) |
|
|
(12,355 |
) |
|
|
(15,015 |
) |
|
|
(15,364 |
) |
|
|
(25,173 |
) |
|
Proceeds from issuance of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
150,000 |
|
|
Repayment of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(150,000 |
) |
|
Premiums and fees on debt retirement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,865 |
) |
|
Other, net |
|
|
(284 |
) |
|
|
(242 |
) |
|
|
(51 |
) |
|
|
(526 |
) |
|
|
(264 |
) |
|
Net cash used in financing activities |
|
|
(30,037 |
) |
|
|
(39,538 |
) |
|
|
(41,947 |
) |
|
|
(69,575 |
) |
|
|
(84,248 |
) |
|
Change in cash, cash equivalents and restricted cash |
|
|
1,114 |
|
|
|
(2,434 |
) |
|
|
(10,410 |
) |
|
|
(1,320 |
) |
|
|
18,529 |
|
|
Cash, cash equivalents and restricted cash, beginning |
|
|
81,820 |
|
|
|
84,254 |
|
|
|
108,380 |
|
|
|
84,254 |
|
|
|
79,441 |
|
|
Cash, cash equivalents and restricted cash, ending |
|
$ |
82,934 |
|
|
$ |
81,820 |
|
|
$ |
97,970 |
|
|
$ |
82,934 |
|
|
$ |
97,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
PotlatchDeltic Corporation
Segment Information
Unaudited
|
|
|
Three Months Ended |
|
|
|
|
Six Months Ended |
|
||||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
|
|
June 30, |
|
||||||||||
|
(in thousands) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberlands |
|
$ |
67,345 |
|
|
$ |
82,425 |
|
|
$ |
66,881 |
|
|
|
|
$ |
149,770 |
|
|
|
|
$ |
135,039 |
|
|
Wood Products |
|
|
126,216 |
|
|
|
145,000 |
|
|
|
138,030 |
|
|
|
|
|
271,216 |
|
|
|
|
|
270,336 |
|
|
Real Estate |
|
|
13,105 |
|
|
|
10,969 |
|
|
|
36,432 |
|
|
|
|
|
24,074 |
|
|
|
|
|
42,596 |
|
|
|
|
|
206,666 |
|
|
|
238,394 |
|
|
|
241,343 |
|
|
|
|
|
445,060 |
|
|
|
|
|
447,971 |
|
|
Intersegment Timberlands revenues |
|
|
(25,111 |
) |
|
|
(29,514 |
) |
|
|
(25,762 |
) |
|
|
|
|
(54,625 |
) |
|
|
|
|
(50,674 |
) |
|
Consolidated revenues |
|
$ |
181,555 |
|
|
$ |
208,880 |
|
|
$ |
215,581 |
|
|
|
|
$ |
390,435 |
|
|
|
|
$ |
397,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberlands |
|
$ |
25,659 |
|
|
$ |
34,982 |
|
|
$ |
26,131 |
|
|
|
|
$ |
60,641 |
|
|
|
|
$ |
52,981 |
|
|
Wood Products |
|
|
10,907 |
|
|
|
13,229 |
|
|
|
(2,071 |
) |
|
|
|
|
24,136 |
|
|
|
|
|
5,155 |
|
|
Real Estate |
|
|
9,256 |
|
|
|
7,340 |
|
|
|
31,316 |
|
|
|
|
|
16,596 |
|
|
|
|
|
34,019 |
|
|
Corporate |
|
|
(10,534 |
) |
|
|
(8,672 |
) |
|
|
(9,346 |
) |
|
|
|
|
(19,206 |
) |
|
|
|
|
(20,000 |
) |
|
Eliminations and adjustments |
|
|
85 |
|
|
|
692 |
|
|
|
3,050 |
|
|
|
|
|
777 |
|
|
|
|
|
5,177 |
|
|
Total Adjusted EBITDDA |
|
|
35,373 |
|
|
|
47,571 |
|
|
|
49,080 |
|
|
|
|
|
82,944 |
|
|
|
|
|
77,332 |
|
|
Basis of real estate sold |
|
|
(2,693 |
) |
|
|
(6,498 |
) |
|
|
(7,427 |
) |
|
|
|
|
(9,191 |
) |
|
|
|
|
(8,983 |
) |
|
Depreciation, depletion and amortization |
|
|
(17,765 |
) |
|
|
(18,638 |
) |
|
|
(16,727 |
) |
|
|
|
|
(36,403 |
) |
|
|
|
|
(32,524 |
) |
|
Interest expense, net |
|
|
(8,339 |
) |
|
|
(3,698 |
) |
|
|
(7,882 |
) |
|
|
|
|
(12,037 |
) |
|
|
|
|
(13,346 |
) |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(5,512 |
) |
|
Pension settlement charge |
|
|
— |
|
|
|
(42,988 |
) |
|
|
— |
|
|
|
|
|
(42,988 |
) |
|
|
|
|
— |
|
|
Non-operating pension and other postretirement employee benefits |
|
|
(3,478 |
) |
|
|
(3,635 |
) |
|
|
(889 |
) |
|
|
|
|
(7,113 |
) |
|
|
|
|
(1,869 |
) |
|
Gain (loss) on disposal of fixed assets |
|
|
(7 |
) |
|
|
192 |
|
|
|
30 |
|
|
|
|
|
185 |
|
|
|
|
|
62 |
|
|
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
9,176 |
|
|
Income (loss) before income taxes |
|
$ |
3,091 |
|
|
$ |
(27,694 |
) |
|
$ |
16,185 |
|
|
|
|
$ |
(24,603 |
) |
|
|
|
$ |
24,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberlands |
|
$ |
11,566 |
|
|
$ |
12,591 |
|
|
$ |
10,469 |
|
|
|
|
$ |
24,157 |
|
|
|
|
$ |
20,734 |
|
|
Wood Products |
|
|
5,798 |
|
|
|
5,630 |
|
|
|
5,861 |
|
|
|
|
|
11,428 |
|
|
|
|
|
10,903 |
|
|
Real Estate |
|
|
156 |
|
|
|
160 |
|
|
|
147 |
|
|
|
|
|
316 |
|
|
|
|
|
356 |
|
|
Corporate |
|
|
245 |
|
|
|
257 |
|
|
|
250 |
|
|
|
|
|
502 |
|
|
|
|
|
531 |
|
|
|
|
|
17,765 |
|
|
|
18,638 |
|
|
|
16,727 |
|
|
|
|
|
36,403 |
|
|
|
|
|
32,524 |
|
|
Bond discounts and deferred loan fees2 |
|
|
406 |
|
|
|
406 |
|
|
|
410 |
|
|
|
|
|
812 |
|
|
|
|
|
887 |
|
|
Total depreciation, depletion and amortization |
|
$ |
18,171 |
|
|
$ |
19,044 |
|
|
$ |
17,137 |
|
|
|
|
$ |
37,215 |
|
|
|
|
$ |
33,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
$ |
3,212 |
|
|
$ |
6,504 |
|
|
$ |
7,455 |
|
|
|
|
$ |
9,716 |
|
|
|
|
$ |
9,043 |
|
|
Eliminations and adjustments |
|
|
(519 |
) |
|
|
(6 |
) |
|
|
(28 |
) |
|
|
|
|
(525 |
) |
|
|
|
|
(60 |
) |
|
Total basis of real estate sold |
|
$ |
2,693 |
|
|
$ |
6,498 |
|
|
$ |
7,427 |
|
|
|
|
$ |
9,191 |
|
|
|
|
$ |
8,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA on page 8, Reconciliations. |
|
|
2 |
Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations. |
7
PotlatchDeltic Corporation
Reconciliations
Unaudited
|
|
|
Three Months Ended |
|
|
|
|
Six Months Ended |
|
||||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
|
|
June 30, |
|
||||||||||
|
(in thousands, except per share amount) |
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
|
|
2020 |
|
|
|
|
2019 |
|
|||||
|
Total Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (GAAP) |
|
$ |
2,638 |
|
|
$ |
(16,832 |
) |
|
$ |
17,137 |
|
|
|
|
$ |
(14,194 |
) |
|
|
|
$ |
23,697 |
|
|
Interest expense, net |
|
|
8,339 |
|
|
|
3,698 |
|
|
|
7,882 |
|
|
|
|
|
12,037 |
|
|
|
|
|
13,346 |
|
|
Income taxes |
|
|
453 |
|
|
|
(10,862 |
) |
|
|
(952 |
) |
|
|
|
|
(10,409 |
) |
|
|
|
|
639 |
|
|
Depreciation, depletion and amortization |
|
|
17,765 |
|
|
|
18,638 |
|
|
|
16,727 |
|
|
|
|
|
36,403 |
|
|
|
|
|
32,524 |
|
|
Basis of real estate sold |
|
|
2,693 |
|
|
|
6,498 |
|
|
|
7,427 |
|
|
|
|
|
9,191 |
|
|
|
|
|
8,983 |
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,512 |
|
|
Pension settlement charge |
|
|
— |
|
|
|
42,988 |
|
|
|
— |
|
|
|
|
|
42,988 |
|
|
|
|
|
— |
|
|
Non-operating pension and other postretirement benefit costs |
|
|
3,478 |
|
|
|
3,635 |
|
|
|
889 |
|
|
|
|
|
7,113 |
|
|
|
|
|
1,869 |
|
|
Gain on sale of facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(9,176 |
) |
|
(Gain) loss on disposal of fixed assets |
|
|
7 |
|
|
|
(192 |
) |
|
|
(30 |
) |
|
|
|
|
(185 |
) |
|
|
|
|
(62 |
) |
|
Total Adjusted EBITDDA |
|
$ |
35,373 |
|
|
$ |
47,571 |
|
|
$ |
49,080 |
|
|
|
|
$ |
82,944 |
|
|
|
|
$ |
77,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (GAAP) |
|
$ |
2,638 |
|
|
$ |
(16,832 |
) |
|
$ |
17,137 |
|
|
|
|
$ |
(14,194 |
) |
|
|
|
$ |
23,697 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
5,512 |
|
|
Pension settlement charge, after tax |
|
|
— |
|
|
|
31,811 |
|
|
|
— |
|
|
|
|
|
31,811 |
|
|
|
|
|
— |
|
|
Gain on sale of facility, after tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(6,790 |
) |
|
Adjusted net income |
|
$ |
2,638 |
|
|
$ |
14,979 |
|
|
$ |
17,137 |
|
|
|
|
$ |
17,617 |
|
|
|
|
$ |
22,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per diluted share (GAAP) |
|
$ |
0.04 |
|
|
$ |
(0.25 |
) |
|
$ |
0.25 |
|
|
|
|
$ |
(0.21 |
) |
|
|
|
$ |
0.35 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
0.08 |
|
|
Pension settlement charge, after tax |
|
|
— |
|
|
|
0.47 |
|
|
|
— |
|
|
|
|
|
0.47 |
|
|
|
|
|
— |
|
|
Gain on sale of facility, after tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
(0.10 |
) |
|
Adjusted net income per diluted share |
|
$ |
0.04 |
|
|
$ |
0.22 |
|
|
$ |
0.25 |
|
|
|
|
$ |
0.26 |
|
|
|
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8