PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2024 Results

Business Wire

28 Jan

SPOKANE, Wash., January 27, 2025--(BUSINESS WIRE)--PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $5.2 million, or $0.07 per diluted share, on revenues of $258.1 million for the quarter ended December 31, 2024. Net loss was $0.1 million, or $0.00 per diluted share, on revenues of $254.5 million for the quarter ended December 31, 2023.

Net income for the full year 2024 was $21.9 million, or $0.28 per diluted share, on revenues of $1.1 billion. Net income for the full year 2023 was $62.1 million, or $0.77 per diluted share, on revenues of $1.0 billion. Excluding after tax special items consisting of gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $35.0 million, or $0.43 per diluted share, for 2023.

2024 Highlights

Generated Total Adjusted EBITDDA of $232.1 million and Total Adjusted EBITDDA margin of 22%
Completed the Waldo, Arkansas sawmill expansion and modernization project
Sold 34,100 acres of four-year average age Southern timberlands for $57 million or $1,700 per acre
Acquired 16,000 acres of high-quality mature Southern timberlands for $31 million or $1,900 per acre
Repurchased 847,000 shares for $35 million, or $41 per share
Refinanced $176 million in debt during 2024 at below market rates
Maintained strong liquidity of $451 million as of December 31, 2024

"I am pleased with our performance across all our business segments in 2024, especially against challenging market conditions," said Eric Cremers, President and Chief Executive Officer. "Our results reflect the strong performance of our Real Estate business and the stability provided by our Timberland operations. Additionally, we successfully achieved several strategic initiatives for the year, highlighted by the completion of the expansion and modernization project at our Waldo, Arkansas sawmill. In 2024, our balanced and disciplined capital allocation strategy focused on returning $177 million in capital to our shareholders through our quarterly dividend and value-enhancing share repurchases, investing in high-return capital projects and making an accretive timberland acquisition. As we look ahead in 2025, while ongoing challenges to housing affordability continue to create headwinds, we are optimistic about the prospects of improving lumber markets and remain confident in the demand fundamentals that drive growth in our businesses. With a strong balance sheet and a continued focus on operational excellence, we believe we are well-positioned to drive sustainable, long-term value for our shareholders," stated Mr. Cremers.

Financial Highlights

(in millions, except per share data - unaudited)	Q4 2024			Q3 2024			Q4 2023
Revenues	$	258.1		$	255.1		$	254.5
Net income (loss)	$	5.2		$	3.3		$	(0.1	)
Weighted average shares outstanding, diluted (in thousands)		78,608			79,277			79,630
Net income (loss) per diluted share	$	0.07		$	0.04		$	—

Adjusted Net Income (Loss)¹	$	5.2		$	3.3		$	(0.1	)
Adjusted Net Income (Loss) Per Diluted Share¹	$	0.07		$	0.04		$	—

Total Adjusted EBITDDA¹	$	53.3		$	45.9		$	40.7
Total Adjusted EBITDDA Margin¹		20.7	%		18.0	%		16.0	%
Dividends per share	$	0.45		$	0.45		$	0.45
Net cash from operations	$	45.4		$	26.5		$	41.8
Cash and cash equivalents	$	151.6		$	161.1		$	230.1

¹ Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Diluted Share, Total Adjusted EBITDDA and Total Adjusted EBITDDA Margin are non-GAAP measures. Refer to "Non-GAAP Measures" and Non-GAAP Reconciliations below for more information and reconciliations to GAAP, where applicable.

Business Performance: Q4 2024 vs. Q3 2024

Timberlands

Fourth Quarter 2024 Highlights

Timberlands Adjusted EBITDDA decreased $1.8 million from Q3 2024
Northern harvest volumes decreased due to normal seasonality
Northern sawlog prices increased primarily due to higher indexed sawlog prices
Southern sawlog and pulpwood prices were relatively stable

(in millions - unaudited)	Q4 2024		Q3 2024		$ Change
Timberlands Revenues	$	95.3	$	105.1	$	(9.8	)

Timberlands Adjusted EBITDDA¹	$	34.0	$	35.8	$	(1.8	)

¹ Refer to Segment Information below for additional information.

Wood Products

Fourth Quarter 2024 Highlights

Wood Products Adjusted EBITDDA increased $18.4 million from Q3 2024
Average lumber prices increased 11% to $445 per thousand board feet (MBF) in Q4 2024
Lower per-unit manufacturing costs primarily due to increased production at the Waldo sawmill following the restart in Q3 2024 related to the expansion and modernization project
Log costs decreased primarily due to improved log recovery

(in millions - unaudited)	Q4 2024		Q3 2024			$ Change
Wood Products Revenues	$	160.3	$	139.4		$	20.9

Wood Products Adjusted EBITDDA¹	$	8.8	$	(9.6	)	$	18.4

¹ Refer to Segment Information below for additional information.

Real Estate

Fourth Quarter 2024 Highlights

Real Estate Adjusted EBITDDA decreased $12.4 million from Q3 2024
Sold 5,919 acres of rural land at an average price of $2,923 per acre
Sold 45 residential lots at an average price of $101,400 per lot

(in millions - unaudited)	Q4 2024		Q3 2024		$ Change
Real Estate Revenues	$	25.1	$	38.7	$	(13.6	)

Real Estate Adjusted EBITDDA¹	$	19.4	$	31.8	$	(12.4	)

¹ Refer to Segment Information below for additional information.

Non-GAAP Measures

This press release includes certain financial measures that are not in accordance with accounting principles generally accepted in the United States (GAAP). Management believes that these non-GAAP measures, when read in conjunction with our GAAP financial statements, provide useful information to investors and other interested parties as described below. The presentation of these non-GAAP financial measures should be considered only as supplemental to, are not intended to be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may not be the same as or comparable to other similarly titled non-GAAP measures presented by other companies due to potential inconsistencies in methods of calculation.

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share are non-GAAP measures that represent GAAP net income (loss) and GAAP net income (loss) per diluted share before certain items, net of tax, that management believes impact the ability to compare the performance of our business, either period-over-period or with other businesses.

Total Adjusted EBITDDA and Total Adjusted EBITDDA Margin are non-GAAP measures that remove the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis and can be used to evaluate the operational performance of assets under management.

We define Total Adjusted EBITDDA Margin as Total Adjusted EBITDDA divided by Revenues.

Reconciliations of Total Adjusted EBITDDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share to their most comparable GAAP measures are set forth in the accompanying "Non-GAAP Reconciliations" at the end of this release.

Conference Call Information

A live conference call and webcast will be held Tuesday, January 28, 2025, 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 1-888-510-2008 for U.S./Canada and 1-646-960-0306 for international callers. Participants will be asked to provide conference I.D. number 7281983. Supplemental materials that will be discussed during the call are available on the above website.

A replay of the conference call will be available two hours following the call until February 4, 2025 by calling 1-800-770-2030 for U.S./Canada or 1-609-800-9909 for international callers. Callers must enter conference I.D. number 7281983 to access the replay.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) with ownership of 2.1 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. 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 corporate responsibility. 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 revenues, costs, expenses and liquidity; disciplined and opportunistic capital allocation strategy; long-term housing fundamentals; housing affordability; demand for lumber; and similar matters. Words such as "believe," "continue," "look ahead," "ongoing," "prospects," 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, such as 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 foreign 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 at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; our ability to achieve the expected returns on our capital investments in our facilities; our ability to participate in the natural climate solutions and forest carbon sequestration markets; the successful execution of the company’s strategic plans 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.


PotlatchDeltic Corporation
Condensed Consolidated Statements of Operations
Unaudited

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(in thousands, except per share amounts)	2024			2024			2023			2024			2023
Revenues	$	258,147		$	255,131		$	254,503		$	1,062,076		$	1,024,075
Costs and expenses:
Cost of goods sold		223,483			227,556			233,862			945,672			899,578
Selling, general and administrative expenses		21,330			20,403			20,612			83,212			75,730
CatchMark merger-related expenses		—			—			—			—			2,453
Gain on fire damage		—			—			—			—			(39,436	)
		244,813			247,959			254,474			1,028,884			938,325
Operating income		13,334			7,172			29			33,192			85,750
Interest expense, net		(10,874	)		(9,635	)		(8,435	)		(28,923	)		(24,218	)
Non-operating pension and other postretirement employee benefits		201			200			(229	)		803			(914	)
Other		1,767			1,516			629			3,115			1,267
Income (loss) before income taxes		4,428			(747	)		(8,006	)		8,187			61,885
Income taxes		766			4,056			7,866			13,689			216
Net income (loss)	$	5,194		$	3,309		$	(140	)	$	21,876		$	62,101

Net income (loss) per share:
Basic	$	0.07		$	0.04		$	—		$	0.28		$	0.78
Diluted	$	0.07		$	0.04		$	—		$	0.28		$	0.77
Dividends per share	$	0.45		$	0.45		$	0.45		$	1.80		$	1.80
Weighted-average shares outstanding (in thousands):
Basic		78,458			79,173			79,630			79,236			79,985
Diluted		78,608			79,277			79,630			79,339			80,167


PotlatchDeltic Corporation
Condensed Consolidated Balance Sheets
Unaudited

	At December 31,
(in thousands, except per share amounts)	2024			2023
*ASSETS*
Current assets:
Cash and cash equivalents	$	151,551		$	230,118
Customer receivables, net		23,358			21,892
Inventories, net		82,926			78,665
Other current assets		41,295			46,258
Total current assets		299,130			376,933
Property, plant and equipment, net		408,913			372,832
Investment in real estate held for development and sale		50,809			56,321
Timber and timberlands, net		2,357,151			2,440,398
Intangible assets, net		13,861			15,640
Other long-term assets		175,579			169,132
Total assets	$	3,305,443		$	3,431,256

*LIABILITIES AND STOCKHOLDERS’ EQUITY*
Current liabilities:
Accounts payable and accrued liabilities	$	95,628		$	82,383
Current portion of long-term debt		99,552			175,615
Current portion of pension and other postretirement employee benefits		5,098			4,535
Total current liabilities		200,278			262,533
Long-term debt		935,100			858,113
Pension and other postretirement employee benefits		76,272			67,856
Deferred tax liabilities, net		21,123			36,641
Other long-term obligations		35,000			35,015
Total liabilities		1,267,773			1,260,158
Commitments and contingencies
Stockholders’ equity:
Common stock, $1 par value, 200,000 shares authorized and 78,684 and 79,365 shares issued and outstanding		78,684			79,365
Additional paid-in capital		2,315,176			2,303,992
Accumulated deficit		(470,331	)		(315,291	)
Accumulated other comprehensive income		114,141			103,032
Total stockholders’ equity		2,037,670			2,171,098
Total liabilities and stockholders' equity	$	3,305,443		$	3,431,256


PotlatchDeltic Corporation
Condensed Consolidated Statements of Cash Flows
Unaudited

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
(in thousands)			2024			2024			2023			2024			2023
*CASH FLOWS FROM OPERATING ACTIVITIES*
Net income (loss)		$	5,194		$	3,309		$	(140	)	$	21,876		$	62,101
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation, depletion and amortization			26,729			25,893			30,827			113,098			121,154
Basis of real estate sold			13,348			12,905			9,768			86,870			31,392
Change in deferred taxes			(880	)		(3,057	)		(3,702	)		(12,776	)		(9,269	)
Pension and other postretirement benefits			1,144			1,143			1,613			4,575			6,446
Equity-based compensation expense			2,542			2,946			2,643			11,010			9,115
Gain on fire damage			—			—			—			—			(39,436	)
Amortization related to redesignated forward-starting interest rate swaps			2,806			2,674			2,624			10,766			10,329
Interest received under swaps with other-than-insignificant financing element			(7,170	)		(7,536	)		(6,995	)		(29,673	)		(25,646	)
Other, net			(271	)		(1,033	)		(1,978	)		(1,278	)		(2,447	)
Change in working capital and operating-related activities, net			6,011			(3,040	)		(2,081	)		(1,025	)		(26,188	)
Real estate development expenditures			(2,783	)		(2,583	)		(4,261	)		(8,088	)		(11,504	)
Funding of pension and other postretirement employee benefits			(1,262	)		(5,168	)		(1,160	)		(8,565	)		(3,336	)
Proceeds from insurance recoveries			—			—			14,645			1,680			36,400
Net cash from operating activities			45,408			26,453			41,803			188,470			159,111

*CASH FLOWS FROM INVESTING ACTIVITIES*
Property, plant and equipment additions			(11,713	)		(25,575	)		(67,848	)		(63,891	)		(95,916	)
Timberlands reforestation and roads			(5,474	)		(6,476	)		(6,850	)		(24,764	)		(23,863	)
Acquisition of timber and timberlands			(38	)		(822	)		(158	)		(32,341	)		(1,834	)
Proceeds from property insurance			—			—			—			—			1,356
Interest received under swaps with other-than-insignificant financing element			6,700			7,010			6,478			27,634			23,757
Other, net			548			134			496			1,300			1,196
Net cash from investing activities			(9,977	)		(25,729	)		(67,882	)		(92,062	)		(95,304	)

*CASH FLOWS FROM FINANCING ACTIVITIES*	...
Distributions to common stockholders			(35,408	)		(35,486	)		(35,715	)		(142,350	)		(143,595	)
Repurchase of common stock			(7,604	)		(3,508	)		(13,605	)		(35,017	)		(25,011	)
Proceeds from long-term debt			176,000			—			40,000			176,000			40,000
Repayment of long-term debt			(175,735	)		—			(40,000	)		(175,735	)		(40,000	)
Other, net			(2,090	)		(943	)		(789	)		(5,269	)		(3,104	)
Net cash from financing activities			(44,837	)		(39,937	)		(50,109	)		(182,371	)		(171,710	)
Change in cash, cash equivalents and restricted cash			(9,406	)		(39,213	)		(76,188	)		(85,963	)		(107,903	)
Cash, cash equivalents and restricted cash at beginning of period			161,131			200,344			313,876			237,688			345,591
Cash, cash equivalents and restricted cash at end of period¹		$	151,725		$	161,131		$	237,688		$	151,725		$	237,688

Includes $0.2 million, $0.0 million, and $7.6 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively, that were or are intended to be reinvested in timber and timberlands and classified as restricted cash in Other current and long-term assets in the Condensed Consolidated Balance Sheets.


PotlatchDeltic Corporation
Segment Information
Unaudited

	Three months ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
(in thousands)		2024			2024			2023			2024			2023
Revenues
Timberlands	$	95,285		$	105,132		$	97,414		$	392,169		$	411,077
Wood Products		160,335			139,412			150,100			601,924			635,672
Real Estate		25,089			38,701			27,909			170,629			87,988
		280,709			283,245			275,423			1,164,722			1,134,737
Intersegment Timberlands revenues		(22,562	)		(28,114	)		(20,920	)		(102,646	)		(110,656	)
Other intersegment revenues		—			—			—			—			(6	)
Consolidated revenues	$	258,147		$	255,131		$	254,503		$	1,062,076		$	1,024,075

Adjusted EBITDDA¹
Timberlands	$	34,033		$	35,824		$	33,304		$	138,729		$	151,321
Wood Products		8,871			(9,581	)		(6,488	)		(7,654	)		20,487
Real Estate		19,364			31,861			21,908			147,021			67,775
Corporate		(12,441	)		(12,203	)		(12,448	)		(49,065	)		(45,406	)
Eliminations and adjustments		3,476			1			4,458			3,069			6,057
Total Adjusted EBITDDA		53,303			45,902			40,734			232,100			200,234
Interest expense, net²		(10,874	)		(9,635	)		(8,435	)		(28,923	)		(24,218	)
Depreciation, depletion and amortization		(26,347	)		(25,487	)		(30,419	)		(111,497	)		(119,518	)
Basis of real estate sold		(13,348	)		(12,905	)		(9,768	)		(86,870	)		(31,392	)
CatchMark merger-related expenses		—			—			—			—			(2,453	)
Gain on fire damage		—			—			—			—			39,436
Non-operating pension and other postretirement employee benefits		201			200			(229	)		803			(914	)
Loss on disposal of assets		(274	)		(338	)		(518	)		(541	)		(557	)
Other		1,767			1,516			629			3,115			1,267
Income (loss) before income taxes	$	4,428		$	(747	)	$	(8,006	)	$	8,187		$	61,885

Depreciation, depletion and amortization
Timberlands	$	16,562		$	16,778		$	19,386		$	67,755		$	75,009
Wood Products		9,447			8,395			10,783			42,585			43,506
Real Estate		137			138			129			549			526
Corporate		201			176			121			608			477
		26,347			25,487			30,419			111,497			119,518
Bond discounts and deferred loan fees²		382			406			408			1,601			1,636
Total depreciation, depletion and amortization	$	26,729		$	25,893		$	30,827		$	113,098		$	121,154

Basis of real estate sold
Real Estate	$	13,348		$	12,908		$	9,802		$	86,878		$	31,431
Eliminations and adjustments		—			(3	)		(34	)		(8	)		(39	)
Total basis of real estate sold	$	13,348		$	12,905		$	9,768		$	86,870		$	31,392

¹	Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA in Non-GAAP Reconciliations.
²	Bond discounts, deferred loan fees, non-cash amortization related to redesignated forward swaps, and interest income are included in interest expense, net in the Condensed Consolidated Statements of Operations.


PotlatchDeltic Corporation
Non-GAAP Reconciliations
Unaudited

	Three months ended									Year ended
	December 31,			September 30,			December 31,			December 31,
(in thousands, except per share amounts)		2024			2024			2023			2024			2023
Total Adjusted EBITDDA¹
Net income (loss) (GAAP)	$	5,194		$	3,309		$	(140	)	$	21,876		$	62,101
Interest, net		10,874			9,635			8,435			28,923			24,218
Income taxes		(766	)		(4,056	)		(7,866	)		(13,689	)		(216	)
Depreciation, depletion and amortization		26,347			25,487			30,419			111,497			119,518
Basis of real estate sold		13,348			12,905			9,768			86,870			31,392
CatchMark merger-related expenses		—			—			—			—			2,453
Gain on fire damage		—			—			—			—			(39,436	)
Non-operating pension and other postretirement benefit costs		(201	)		(200	)		229			(803	)		914
Loss on disposal of assets		274			338			518			541			557
Other		(1,767	)		(1,516	)		(629	)		(3,115	)		(1,267	)
Total Adjusted EBITDDA	$	53,303		$	45,902		$	40,734		$	232,100		$	200,234

Adjusted Net Income (Loss)¹
Net income (loss) (GAAP)	$	5,194		$	3,309		$	(140	)	$	21,876		$	62,101
Special items after tax:
CatchMark merger-related expenses		—			—			—			—			2,453
Gain on fire damage		—			—			—			—			(29,577	)
Adjusted Net Income (Loss)	$	5,194		$	3,309		$	(140	)	$	21,876		$	34,977

Adjusted Net Income (Loss) Per Diluted Share¹
Net income (loss) per diluted share (GAAP)	$	0.07		$	0.04		$	—		$	0.28		$	0.77
Special items after tax:
CatchMark merger-related expenses		—			—			—			—			0.03
Gain on fire damage		—			—			—			—			(0.37	)
Adjusted Net Income (Loss) Per Diluted Share	$	0.07		$	0.04		$	—		$	0.28		$	0.43

¹	See "Non-GAAP Measures" for further details on management's use of these measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127808735/en/

Contacts

Investors
Wayne Wasechek
509.835.1521

Media
Anna Torma
509.835.1558

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Tiger Brokers

PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2024 Results

Most Discussed