SPOKANE, Wash.--(BUSINESS WIRE)--Feb. 4, 2019--
PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of
$1.8 million, or $0.03 per diluted share, on revenues of $217.3 million
for the quarter ended December 31, 2018. Excluding after-tax special
items consisting of Deltic merger-related costs, adjusted net income was
$2.7 million, or $0.04 per diluted share for the fourth quarter of 2018.
Net income was $11.6 million, or $0.28 per diluted share, on revenues of
$175.2 million in the quarter ended December 31, 2017. Excluding
after-tax special items, consisting primarily of a charge related to tax
legislation and Deltic merger-related costs, adjusted net income was
$25.7 million, or $0.62 per diluted share for the fourth quarter of 2017.
Net income for the full year 2018 was $122.9 million, or $1.99 per
diluted share, on revenues of $974.6 million. Excluding after-tax
special items, consisting primarily of a tax benefit related to
contributions made to our qualified pension plans, and Deltic
merger-related costs, adjusted net income was $141.4 million, or $2.28
per diluted share for 2018. Net income was $86.5 million, or $2.10 per
diluted share for the full year 2017. Excluding after-tax special items,
consisting primarily of a charge related to tax legislation, Deltic
merger-related costs and environmental charges for Avery Landing,
adjusted net income was $103.6 million, or $2.51 per diluted share for
2017.
Highlights
-
Generated $297 million of Adjusted EBITDDA in 2018
-
Completed $222 million Deltic earnings and profits special
distribution in Q4 2018, consisting of $44.4 million of cash and 4.8
million shares
-
Increased regular, quarterly dividend payout 7.7% effective Q4 2018
-
Announced agreement to sell the legacy Deltic MDF facility for $92
million; transaction scheduled to close later this month
-
Refinanced $150 million of 7.5% debt last week, reducing annual
interest expense run rate over $5 million
“2018 was a very successful year by every measure,” said Mike Covey,
chairman and chief executive officer. “We grew meaningfully by merging
with Deltic Timber Corporation early in the year, generated $297 million
of Adjusted EBITDDA and returned $147 million of cash to shareholders.
These accomplishments are a tribute to the hard work and dedication of
our employees,” stated Mr. Covey.
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Financial Highlights
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| ($ in millions, except per share data - unaudited) |
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Q4 2018 |
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Q3 2018 |
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Q4 2017 |
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Revenues
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$
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217.3
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$
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289.2
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$
|
175.2
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Net income
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$
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1.8
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$
|
60.4
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$
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11.6
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Weighted average shares outstanding, diluted (in thousands)
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68,110
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64,722
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41,301
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Net income per diluted share
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$
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0.03
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$
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0.93
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$
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0.28
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Adjusted net income
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$
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2.7
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$
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56.3
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$
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25.7
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Adjusted net income per diluted share
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$
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0.04
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$
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0.87
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$
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0.62
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Adjusted EBITDDA
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$
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36.4
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$
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101.8
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$
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50.5
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Distributions per share
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$
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3.94
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$
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0.40
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$
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0.40
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Net cash from operations
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$
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30.5
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$
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53.0
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$
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33.3
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Cash and cash equivalents
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$
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76.6
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$
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137.5
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$
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120.5
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Consolidated results include Deltic Timber beginning February 21, 2018.
The financial statements included within this release do not include
Deltic Timber’s financial results for any period prior to the merger
date.
Business Performance: Q4 2018 vs. Q3 2018
Resource
Fourth Quarter 2018 Highlights
-
Northern harvest volumes declined seasonally
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Northern sawlog prices decreased 32% driven by lower lumber index
pricing
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Southern harvest volumes were constrained by unseasonably wet weather
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Southern sawlog prices decreased 8% due primarily to a lower mix of
hardwood sawlogs
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Log & haul costs decreased due to lower harvest volumes
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| ($ in millions - unaudited) |
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Q4 2018 |
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Q3 2018 |
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$ Change
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Segment Revenues
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$
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74.5
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$
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111.4
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$
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(36.9
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)
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Adjusted EBITDDA
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$
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29.8
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$
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58.7
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$
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(28.9
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)
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Wood Products
Fourth Quarter 2018 Highlights
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Lumber price realizations declined 24%
-
Lumber shipments decreased 20 MMBF
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| ($ in millions - unaudited) |
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Q4 2018 |
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Q3 2018 |
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$ Change
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Segment Revenues
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$
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148.5
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$
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199.0
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$
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(50.5
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)
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Adjusted EBITDDA
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$
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3.6
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$
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46.5
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$
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(42.9
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)
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Real Estate
Fourth Quarter 2018 Highlights
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Sold 2,566 acres of rural real estate at an average price of $2,449
per acre
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Sold commercial land in the Chenal master plan community in Little
Rock, AR for $4.5 million
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Unseasonably wet weather delayed completion of lots expected to be
sold Q4 2018
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| ($ in millions - unaudited) |
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Q4 2018 |
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Q3 2018 |
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$ Change
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Segment Revenues
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$
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16.4
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$
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11.2
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$
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5.2
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Adjusted EBITDDA
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$
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12.6
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$
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7.4
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$
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5.2
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Outlook
“As we look to 2019, we remain optimistic that lumber prices will
continue a slow steady increase as the building season begins in earnest
later in the first quarter. We expect U.S. housing starts to be modestly
higher this year while repair and remodel markets remain strong. We plan
to harvest just over 6 million tons in our Resource segment, ship 1.1
billion board feet of lumber and sell approximately 20,000 acres and 150
residential lots in our Real Estate segment in 2019,” concluded Mr.
Covey.
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 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.
Conference Call Information
A live conference call and webcast will be held Tuesday, February 5,
2019, 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 Investor Resources link or by conference call at
1-877-823-6919 for U.S./Canada and 1-647-689-5576 for international
callers. Participants will be asked to provide conference I.D. number
9649607. Supplemental materials that will be discussed during the call
are available on the website.
A replay of the conference call will be available two hours following
the call until February 12, 2019 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 9649607 to access the replay.
About PotlatchDeltic
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust
(REIT) that owns nearly 2 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 medium density fiberboard plant, 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 Litigation Reform Act of 1995 as amended,
including without limitation, our expectations regarding the U.S.
housing market; strong repair and remodel market; lumber demand and
pricing; 2019 lumber shipments; Northern and Southern log and pulpwood
sales and pricing; 2019 timber harvest; real estate sales and cost
basis; the direction of our business markets; business conditions; the
closing of the sale of our MDF business to Roseburg Forest Products,
estimated proceeds of sale and expected cash balance after closing of
the sale; the reduction of interest expense as a result of Farm Credit
patronage; 2019 capital expenditures; 2019 interest expense per quarter;
2019 corporate expense; 2019 income tax; dividend payout ratio; and
similar matters. 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 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; changes in interest
rates; changes in the level of construction activity; changes in Asia
demand; changes in tariffs, quotas and trade agreements involving wood
products; currency fluctuation; changes in demand for our products;
changes in production and production capacity in the forest products
industry; competitive pricing pressures for our products; unanticipated
manufacturing disruptions; changes in general and industry-specific
environmental laws and regulations; unforeseen environmental liabilities
or expenditures; weather conditions; restrictions on harvesting due to
fire danger; changes in raw material, fuel and other costs; share price;
the successful execution of the company’s strategic plans; the company’s
ability to meet expectations; the company’s ability to complete the sale
of the MDF business to Roseburg Forest Products or to satisfy the
conditions to the closing of the transaction; 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.
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PotlatchDeltic Corporation
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Condensed Consolidated Statements of Income
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Unaudited
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Three Months Ended |
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Year Ended |
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December 31, |
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September 30, |
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December 31, |
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December 31, |
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| (Dollars in thousands, except per share amount) |
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2018 |
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2018 |
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2017 |
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2018 |
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2017 |
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Revenues
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$
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217,250
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$
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289,199
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|
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$
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175,244
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$
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974,579
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$
|
678,595
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Costs and expenses:
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Cost of goods sold
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192,000
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195,584
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120,812
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707,645
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469,393
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Selling, general and administrative expenses
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14,412
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14,901
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12,309
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59,861
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49,996
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Environmental charges for Avery Landing
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—
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—
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—
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—
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|
|
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4,978
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Deltic merger-related costs
|
|
|
874
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|
|
|
972
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|
|
|
3,382
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|
|
|
22,119
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|
|
|
3,409
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Loss (gain) on lumber price swap
|
|
|
—
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|
|
|
—
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|
|
|
97
|
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—
|
|
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(1,088
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)
|
|
|
|
207,286
|
|
|
|
211,457
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|
|
|
136,600
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|
|
|
789,625
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|
|
|
526,688
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Operating income
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|
|
9,964
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|
|
|
77,742
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|
|
|
38,644
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|
|
|
184,954
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|
|
|
151,907
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Interest expense, net
|
|
|
(10,102
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)
|
|
|
(10,109
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)
|
|
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(7,395
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)
|
|
|
(35,227
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)
|
|
|
(27,049
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)
|
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Non-operating pension and other postretirement costs1 |
|
|
(1,941
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)
|
|
|
(1,942
|
)
|
|
|
(1,596
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)
|
|
|
(7,648
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)
|
|
|
(6,384
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)
|
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Income (loss) before income taxes
|
|
|
(2,079
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)
|
|
|
65,691
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|
|
|
29,653
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|
|
|
142,079
|
|
|
|
118,474
|
|
|
Income tax (provision) benefit
|
|
|
3,878
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|
|
|
(5,355
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)
|
|
|
(18,065
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)
|
|
|
(19,199
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)
|
|
|
(32,021
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)
|
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Net income
|
|
$
|
1,799
|
|
|
$
|
60,336
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|
|
$
|
11,588
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|
|
$
|
122,880
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|
|
$
|
86,453
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|
|
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Net income per share:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
Basic
|
|
$
|
0.03
|
|
|
$
|
0.96
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|
|
$
|
0.28
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|
|
$
|
2.03
|
|
|
$
|
2.12
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|
Diluted
|
|
$
|
0.03
|
|
|
$
|
0.93
|
|
|
$
|
0.28
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|
|
$
|
1.99
|
|
|
$
|
2.10
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|
|
Regular dividends per share
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
1.60
|
|
|
$
|
1.525
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|
|
Special distribution per share2 |
|
$
|
3.54
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.54
|
|
|
$
|
—
|
|
|
Weighted-average shares outstanding (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
65,486
|
|
|
|
62,986
|
|
|
|
40,839
|
|
|
|
60,534
|
|
|
|
40,824
|
|
|
Diluted
|
|
|
68,110
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|
|
|
64,722
|
|
|
|
41,301
|
|
|
|
61,814
|
|
|
|
41,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
1
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We adopted ASU No. 2017-07, Compensation – Retirement Benefits
(Topic 715), Improving the Presentation of Net Periodic Pension
Cost and Net Periodic Postretirement Benefit Cost,
retrospectively on January 1, 2018 and have reclassified
non-service costs from operating expenses to non-operating costs.
There was no change to income (loss) before income taxes.
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|
|
|
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|
2
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|
|
Deltic earnings and profit special distribution of $222 million,
paid on November 15, 2018.
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|
|
|
|
|
|
|
|
|
|
PotlatchDeltic Corporation
|
|
Condensed Consolidated Balance Sheets
|
|
Unaudited
|
|
|
|
|
|
|
At December 31, |
|
|
|
2018 |
|
|
2017 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
76,639
|
|
|
$
|
120,457
|
|
|
Customer receivables, net
|
|
|
21,405
|
|
|
|
11,240
|
|
|
Inventories, net
|
|
|
60,805
|
|
|
|
50,132
|
|
|
Other current assets
|
|
|
22,675
|
|
|
|
11,478
|
|
|
Assets held for sale
|
|
|
80,674
|
|
|
|
—
|
|
|
Total current assets
|
|
|
262,198
|
|
|
|
193,307
|
|
|
Property, plant and equipment, net
|
|
|
272,193
|
|
|
|
77,229
|
|
|
Investment in real estate held for development and sale
|
|
|
79,537
|
|
|
|
—
|
|
|
Timber and timberlands, net
|
|
|
1,673,573
|
|
|
|
654,476
|
|
|
Deferred tax assets, net
|
|
|
—
|
|
|
|
19,796
|
|
|
Intangible assets, net
|
|
|
17,828
|
|
|
|
—
|
|
|
Other long-term assets
|
|
|
21,281
|
|
|
|
8,271
|
|
| Total assets |
|
$
|
2,326,610
|
|
|
$
|
953,079
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
60,993
|
|
|
$
|
55,201
|
|
|
Current portion of long-term debt
|
|
|
39,973
|
|
|
|
14,263
|
|
|
Current portion of pension and other postretirement employee benefits
|
|
|
5,997
|
|
|
|
5,334
|
|
|
Liabilities held for sale
|
|
|
29,321
|
|
|
|
—
|
|
|
Total current liabilities
|
|
|
136,284
|
|
|
|
74,798
|
|
|
Long-term debt
|
|
|
715,391
|
|
|
|
559,056
|
|
|
Pension and other postretirement employee benefits
|
|
|
110,659
|
|
|
|
103,524
|
|
|
Deferred tax liabilities, net
|
|
|
32,767
|
|
|
|
—
|
|
|
Other long-term obligations
|
|
|
16,730
|
|
|
|
15,159
|
|
|
Total liabilities
|
|
|
1,011,831
|
|
|
|
752,537
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $1 par value
|
|
|
67,570
|
|
|
|
40,612
|
|
|
Additional paid-in capital
|
|
|
1,659,031
|
|
|
|
359,144
|
|
|
Accumulated deficit1 |
|
|
(282,391
|
)
|
|
|
(104,363
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(129,431
|
)
|
|
|
(94,851
|
)
|
|
Total stockholders’ equity
|
|
|
1,314,779
|
|
|
|
200,542
|
|
| Total liabilities and stockholders' equity |
|
$
|
2,326,610
|
|
|
$
|
953,079
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
A special distribution of $222 million was paid on November 15,
2018. The special distribution represents the accumulated earnings
and profits of Deltic Timber Corporation as of February 20, 2018,
the date Deltic merged into a wholly-owned subsidiary of
PotlatchDeltic. $44.4 million of the special distribution was paid
in cash, while the remaining balance was paid in shares of
PotlatchDeltic’s common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PotlatchDeltic Corporation
|
|
Condensed Consolidated Statements of Cash Flows
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December 31,
2018
|
|
|
September 30,
2018
|
|
|
December 31,
2017
|
|
|
December 31,
2018
|
|
|
December 31,
2017
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,799
|
|
|
$
|
60,336
|
|
|
$
|
11,588
|
|
|
$
|
122,880
|
|
|
$
|
86,453
|
|
|
Adjustments to reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
19,476
|
|
|
|
19,445
|
|
|
|
8,004
|
|
|
|
73,161
|
|
|
|
29,912
|
|
|
Basis of real estate sold
|
|
|
6,025
|
|
|
|
4,248
|
|
|
|
476
|
|
|
|
16,698
|
|
|
|
6,827
|
|
|
Change in deferred taxes
|
|
|
(1,718
|
)
|
|
|
11,081
|
|
|
|
16,289
|
|
|
|
12,161
|
|
|
|
15,364
|
|
|
Employee benefit plans
|
|
|
4,222
|
|
|
|
4,222
|
|
|
|
3,288
|
|
|
|
16,443
|
|
|
|
13,151
|
|
|
Equity-based compensation expense
|
|
|
1,688
|
|
|
|
1,629
|
|
|
|
1,186
|
|
|
|
8,206
|
|
|
|
4,722
|
|
|
Other, net
|
|
|
—
|
|
|
|
(549
|
)
|
|
|
(405
|
)
|
|
|
(1,221
|
)
|
|
|
(1,872
|
)
|
|
Change in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables, net
|
|
|
17,893
|
|
|
|
4,301
|
|
|
|
9,779
|
|
|
|
2,822
|
|
|
|
3,602
|
|
|
Inventories, net
|
|
|
5,595
|
|
|
|
(9,215
|
)
|
|
|
2,690
|
|
|
|
273
|
|
|
|
2,490
|
|
|
Other assets
|
|
|
(5,739
|
)
|
|
|
(1,484
|
)
|
|
|
(15,751
|
)
|
|
|
(3,996
|
)
|
|
|
(15
|
)
|
|
Accounts payable and accrued liabilities
|
|
|
(12,992
|
)
|
|
|
4,573
|
|
|
|
(11,884
|
)
|
|
|
(5,212
|
)
|
|
|
11,591
|
|
|
Other liabilities
|
|
|
(3,756
|
)
|
|
|
(158
|
)
|
|
|
8,054
|
|
|
|
(6,173
|
)
|
|
|
(4,291
|
)
|
|
Real estate development expenditures
|
|
|
(1,968
|
)
|
|
|
(1,416
|
)
|
|
|
—
|
|
|
|
(5,049
|
)
|
|
|
—
|
|
|
Funding of qualified pension plans
|
|
|
—
|
|
|
|
(44,000
|
)
|
|
|
—
|
|
|
|
(52,099
|
)
|
|
|
(5,275
|
)
|
|
Net cash from operating activities
|
|
|
30,525
|
|
|
|
53,013
|
|
|
|
33,314
|
|
|
|
178,894
|
|
|
|
162,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
(11,384
|
)
|
|
|
(7,123
|
)
|
|
|
(3,410
|
)
|
|
|
(29,880
|
)
|
|
|
(12,855
|
)
|
|
Timberlands reforestation and roads
|
|
|
(4,914
|
)
|
|
|
(5,345
|
)
|
|
|
(3,631
|
)
|
|
|
(17,378
|
)
|
|
|
(15,207
|
)
|
|
Acquisition of timber and timberlands
|
|
|
(4,712
|
)
|
|
|
(3
|
)
|
|
|
(9
|
)
|
|
|
(4,877
|
)
|
|
|
(22,043
|
)
|
|
Cash and cash equivalents acquired in merger
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,419
|
|
|
|
—
|
|
|
Transfer from company owned life insurance (COLI)
|
|
|
226
|
|
|
|
378
|
|
|
|
287
|
|
|
|
1,796
|
|
|
|
1,278
|
|
|
Transfer to COLI
|
|
|
(114
|
)
|
|
|
(227
|
)
|
|
|
(169
|
)
|
|
|
(1,027
|
)
|
|
|
(1,324
|
)
|
|
Other, net
|
|
|
41
|
|
|
|
(27
|
)
|
|
|
73
|
|
|
|
38
|
|
|
|
131
|
|
|
Net cash from investing activities
|
|
|
(20,857
|
)
|
|
|
(12,347
|
)
|
|
|
(6,859
|
)
|
|
|
(47,909
|
)
|
|
|
(50,020
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to common stockholders
|
|
|
(71,462
|
)
|
|
|
(25,102
|
)
|
|
|
(16,245
|
)
|
|
|
(146,768
|
)
|
|
|
(61,931
|
)
|
|
Proceeds from Potlatch revolving line of credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
100,000
|
|
|
|
—
|
|
|
Repayment of Potlatch revolving line of credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(100,000
|
)
|
|
|
—
|
|
|
Repayment of Deltic revolving line of credit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(106,000
|
)
|
|
|
—
|
|
|
Proceeds from issue of long-term debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
100,000
|
|
|
|
—
|
|
|
Repayment of long-term debt
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,000
|
)
|
|
|
(14,250
|
)
|
|
|
(11,000
|
)
|
|
Other, net
|
|
|
(8
|
)
|
|
|
(40
|
)
|
|
|
(556
|
)
|
|
|
(4,983
|
)
|
|
|
(1,835
|
)
|
|
Net cash from financing activities
|
|
|
(71,470
|
)
|
|
|
(25,142
|
)
|
|
|
(22,801
|
)
|
|
|
(172,001
|
)
|
|
|
(74,766
|
)
|
|
Change in cash and cash equivalents
|
|
|
(61,802
|
)
|
|
|
15,524
|
|
|
|
3,654
|
|
|
|
(41,016
|
)
|
|
|
37,873
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
141,243
|
|
|
|
125,719
|
|
|
|
116,803
|
|
|
|
120,457
|
|
|
|
82,584
|
|
|
Cash and cash equivalents at end of period1 |
|
$
|
79,441
|
|
|
$
|
141,243
|
|
|
$
|
120,457
|
|
|
$
|
79,441
|
|
|
$
|
120,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
Amounts included in restricted cash represent proceeds held by a
qualified intermediary that are intended to be reinvested in timber
and timberlands. Restricted cash for the periods noted above were
$2.8 million as of December 31, 2018, $3.7 million as of September
30, 2018 and $0 as of December 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PotlatchDeltic Corporation
|
|
Segment Information
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Year Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
| (Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource
|
|
$
|
74,512
|
|
|
$
|
111,421
|
|
|
$
|
75,802
|
|
|
$
|
354,950
|
|
|
$
|
278,199
|
|
|
Wood Products
|
|
|
148,506
|
|
|
|
199,025
|
|
|
|
114,549
|
|
|
|
680,931
|
|
|
|
441,157
|
|
|
Real Estate
|
|
|
16,347
|
|
|
|
11,233
|
|
|
|
4,733
|
|
|
|
54,566
|
|
|
|
30,655
|
|
|
|
|
239,365
|
|
|
|
321,679
|
|
|
|
195,084
|
|
|
|
1,090,447
|
|
|
|
750,011
|
|
|
Intersegment Resource revenues
|
|
|
(22,115
|
)
|
|
|
(32,480
|
)
|
|
|
(19,840
|
)
|
|
|
(115,868
|
)
|
|
|
(71,416
|
)
|
|
Consolidated revenues
|
|
$
|
217,250
|
|
|
$
|
289,199
|
|
|
$
|
175,244
|
|
|
$
|
974,579
|
|
|
$
|
678,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource
|
|
$
|
29,766
|
|
|
$
|
58,680
|
|
|
$
|
35,507
|
|
|
$
|
169,834
|
|
|
$
|
126,707
|
|
|
Wood Products
|
|
|
3,621
|
|
|
|
46,446
|
|
|
|
21,964
|
|
|
|
130,583
|
|
|
|
80,624
|
|
|
Real Estate
|
|
|
12,535
|
|
|
|
7,467
|
|
|
|
3,387
|
|
|
|
40,304
|
|
|
|
25,720
|
|
|
Corporate
|
|
|
(8,816
|
)
|
|
|
(8,989
|
)
|
|
|
(8,493
|
)
|
|
|
(37,785
|
)
|
|
|
(34,302
|
)
|
|
Eliminations and adjustments
|
|
|
(663
|
)
|
|
|
(1,794
|
)
|
|
|
(1,840
|
)
|
|
|
(5,743
|
)
|
|
|
(2,992
|
)
|
|
Total Adjusted EBITDDA
|
|
|
36,443
|
|
|
|
101,810
|
|
|
|
50,525
|
|
|
|
297,193
|
|
|
|
195,757
|
|
|
Basis of real estate sold
|
|
|
(6,025
|
)
|
|
|
(4,248
|
)
|
|
|
(476
|
)
|
|
|
(16,698
|
)
|
|
|
(6,827
|
)
|
|
Depreciation, depletion and amortization
|
|
|
(18,866
|
)
|
|
|
(18,836
|
)
|
|
|
(7,636
|
)
|
|
|
(70,848
|
)
|
|
|
(28,432
|
)
|
|
Interest expense, net
|
|
|
(10,102
|
)
|
|
|
(10,109
|
)
|
|
|
(7,395
|
)
|
|
|
(35,227
|
)
|
|
|
(27,049
|
)
|
|
Non-operating pension and other postretirement employee benefits
|
|
|
(1,941
|
)
|
|
|
(1,942
|
)
|
|
|
(1,596
|
)
|
|
|
(7,648
|
)
|
|
|
(6,384
|
)
|
|
(Loss) on fixed assets
|
|
|
(714
|
)
|
|
|
(12
|
)
|
|
|
(188
|
)
|
|
|
(725
|
)
|
|
|
(204
|
)
|
|
Lumber price swap2 |
|
|
—
|
|
|
|
—
|
|
|
|
(199
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Inventory purchase price adjustment in cost of goods sold
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,849
|
)
|
|
|
—
|
|
|
Environmental charges for Avery Landing
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,978
|
)
|
|
Deltic merger-related costs
|
|
|
(874
|
)
|
|
|
(972
|
)
|
|
|
(3,382
|
)
|
|
|
(22,119
|
)
|
|
|
(3,409
|
)
|
|
Income (loss) before income taxes
|
|
$
|
(2,079
|
)
|
|
$
|
65,691
|
|
|
$
|
29,653
|
|
|
$
|
142,079
|
|
|
$
|
118,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource
|
|
$
|
12,227
|
|
|
$
|
12,730
|
|
|
$
|
5,611
|
|
|
$
|
48,201
|
|
|
$
|
20,476
|
|
|
Wood Products
|
|
|
6,166
|
|
|
|
5,827
|
|
|
|
1,860
|
|
|
|
21,416
|
|
|
|
7,347
|
|
|
Real Estate
|
|
|
220
|
|
|
|
81
|
|
|
|
1
|
|
|
|
418
|
|
|
|
2
|
|
|
Corporate
|
|
|
253
|
|
|
|
198
|
|
|
|
164
|
|
|
|
813
|
|
|
|
607
|
|
|
|
|
18,866
|
|
|
|
18,836
|
|
|
|
7,636
|
|
|
|
70,848
|
|
|
|
28,432
|
|
|
Bond discounts and deferred loan fees3 |
|
|
610
|
|
|
|
609
|
|
|
|
368
|
|
|
|
2,313
|
|
|
|
1,480
|
|
|
Total depreciation, depletion and amortization
|
|
$
|
19,476
|
|
|
$
|
19,445
|
|
|
$
|
8,004
|
|
|
$
|
73,161
|
|
|
$
|
29,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
$
|
6,068
|
|
|
$
|
4,267
|
|
|
$
|
640
|
|
|
$
|
16,954
|
|
|
$
|
7,114
|
|
|
Eliminations and adjustments
|
|
|
(43
|
)
|
|
|
(19
|
)
|
|
|
(164
|
)
|
|
|
(256
|
)
|
|
|
(287
|
)
|
|
Total basis of real estate sold
|
|
$
|
6,025
|
|
|
$
|
4,248
|
|
|
$
|
476
|
|
|
$
|
16,698
|
|
|
$
|
6,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
Management uses adjusted EBITDDA to evaluate company and segment
performance. See the reconciliation of consolidated Adjusted
EBITDDA on page 9, Reconciliations.
|
|
2
|
|
|
For Q4 2017, loss includes change in unrealized (gain) loss and
$0.1 million in cash settlements. For full year 2017, total cash
settlements totaled $1.1 million.
|
|
3
|
|
|
Bond discounts and deferred loan fees are included in interest
expense, net in the Consolidated
Statements of Income.
|
|
|
|
|
|
|
|
|
|
|
|
|
PotlatchDeltic Corporation
|
|
Reconciliations
|
|
Unaudited
|
|
|
|
|
Three months ended |
|
|
Year ended |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
| (Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
| Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP)
|
|
$
|
1,799
|
|
|
$
|
60,336
|
|
|
$
|
11,588
|
|
|
$
|
122,880
|
|
|
$
|
86,453
|
|
Interest, net
|
|
|
10,102
|
|
|
|
10,109
|
|
|
|
7,395
|
|
|
|
35,227
|
|
|
|
27,049
|
|
Income tax provision (benefit)
|
|
|
(3,878
|
)
|
|
|
5,355
|
|
|
|
18,065
|
|
|
|
19,199
|
|
|
|
32,021
|
|
Depreciation, depletion and amortization
|
|
|
18,866
|
|
|
|
18,836
|
|
|
|
7,636
|
|
|
|
70,848
|
|
|
|
28,432
|
|
Basis of real estate sold
|
|
|
6,025
|
|
|
|
4,248
|
|
|
|
476
|
|
|
|
16,698
|
|
|
|
6,827
|
|
Non-operating pension and other postretirement benefit costs
|
|
|
1,941
|
|
|
|
1,942
|
|
|
|
1,596
|
|
|
|
7,648
|
|
|
|
6,384
|
|
Deltic merger-related costs
|
|
|
874
|
|
|
|
972
|
|
|
|
3,382
|
|
|
|
22,119
|
|
|
|
3,409
|
|
Inventory purchase price adjustment in cost of goods sold
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,849
|
|
|
|
—
|
|
Lumber price swap1 |
|
|
—
|
|
|
|
—
|
|
|
|
199
|
|
|
|
—
|
|
|
|
—
|
|
Environmental charge for Avery Landing
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,978
|
|
Loss on fixed assets
|
|
|
714
|
|
|
|
12
|
|
|
|
188
|
|
|
|
725
|
|
|
|
204
|
|
Adjusted EBITDDA
|
|
$
|
36,443
|
|
|
$
|
101,810
|
|
|
$
|
50,525
|
|
|
$
|
297,193
|
|
|
$
|
195,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP)
|
|
$
|
1,799
|
|
|
$
|
60,336
|
|
|
$
|
11,588
|
|
|
$
|
122,880
|
|
|
$
|
86,453
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deltic merger-related costs, after tax
|
|
|
874
|
|
|
|
972
|
|
|
|
3,382
|
|
|
|
22,119
|
|
|
|
3,409
|
|
Inventory purchase price adjustment in cost of goods sold, after tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,368
|
|
|
|
—
|
|
Tax adjustments2 |
|
|
—
|
|
|
|
(5,015
|
)
|
|
|
10,669
|
|
|
|
(5,015
|
)
|
|
|
10,669
|
|
Environmental charge for Avery Landing, after tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,037
|
|
Lumber price swap, after tax1 |
|
|
—
|
|
|
|
—
|
|
|
|
147
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net income
|
|
$
|
2,673
|
|
|
$
|
56,293
|
|
|
$
|
25,786
|
|
|
$
|
141,352
|
|
|
$
|
103,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted share (GAAP)
|
|
$
|
0.03
|
|
|
$
|
0.93
|
|
|
$
|
0.28
|
|
|
$
|
1.99
|
|
|
$
|
2.10
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deltic merger-related costs, after tax
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.08
|
|
|
|
0.36
|
|
|
|
0.08
|
|
Inventory purchase price adjustment in cost of goods sold, after tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
—
|
|
Tax adjustments2 |
|
|
—
|
|
|
|
(0.08
|
)
|
|
|
0.26
|
|
|
|
(0.09
|
)
|
|
|
0.26
|
|
Environmental charge for Avery Landing, after tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.07
|
|
Lumber price swap, after tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted net income per diluted share
|
|
$
|
0.04
|
|
|
$
|
0.87
|
|
|
$
|
0.62
|
|
|
$
|
2.28
|
|
|
$
|
2.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
Adjustment includes change in unrealized (gain) loss and $0.1
million in cash settlements.
|
|
2
|
|
|
During the third quarter 2018, we recorded a tax benefit primarily
related to deducting contributions to our qualified pension plans at
the higher 2017 income tax rate. Due to tax reform in December 2017,
we recorded a tax charge of $10.7 million related to net deferred
tax assets.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190204005827/en/
Source: PotlatchDeltic Corporation
(Investors)
Jerry Richards
509.835.1521
(Media)
Anna Torma
509.835.1558