PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2020 Results

PotlatchDeltic Corporation (“PotlatchDeltic”) reported net income of $100.0 million, or $1.48 per diluted share, on revenues of $337.4 million for the quarter ended December 31, 2020. Net income was $11.4 million, or $0.17 per diluted share, on revenues of $203.5 million for the quarter ended December 31, 2019.

Net income for the full year 2020 was $166.8 million, or $2.47 per diluted share, on revenues of $1.0 billion. Excluding an after-tax pension settlement charge, adjusted net income was $198.6 million, or $2.94 per diluted share for 2020. Net income for the full year 2019 was $55.7 million, or $0.82 per diluted share, on revenues of $827.1 million.Excluding after-tax special items consisting of a gain on the sale of legacy Deltic MDF facility and loss on the extinguishment of debt, adjusted net income was $54.4 million, or $0.80 per diluted share for 2019.

2020 Highlights

– Generated record Total Adjusted EBITDDA of $382.2 million and Total Adjusted EBITDDA margin of 37%

– Timberlands, Wood Products and Real Estate all had record years

– Returned $123 million to shareholders through dividends and share repurchases

– Sold 72,440 acres in Minnesota to The Conservation Fund for nearly $48 million

– Refinanced $46 million in debt during 2020 and locked in historically low rates on $608 million of future refinances

– Expanded strong liquidity position to $631 million as of December 31, 2020

“2020 was a phenomenal year with all three of our businesses achieving record financial performance,” said Eric Cremers, president and chief executive officer. “Our employees’ strong resolve and focus on operating safely allowed us to take advantage of strong demand and historic lumber prices. In addition, our Real Estate team completed a large land sale to The Conservation Fund for nearly $48 million. We are well positioned to continue to execute our disciplined capital allocation strategy and maximize shareholder value given our strong liquidity position,” stated Mr. Cremers.

Business Performance: Q4 2020 vs. Q3 2020

Timberlands

Fourth Quarter 2020 Highlights:

– Timberlands Adjusted EBITDDA increased $2.8 million from Q3 2020 levels

– Northern harvest volumes were seasonally lower

– Northern sawlog prices increased 37% due primarily to higher prices on lumber-indexed volume

– Log & haul costs reflect lower Northern harvest volume and seasonally lower rates

Wood Products

Fourth Quarter 2020 Highlights:

– Wood Products Adjusted EBITDDA decreased $11.4 million from Q3 2020 levels

– Average lumber price realizations declined 1% to $629 per MBF in Q4 2020

– Log costs increased due to higher index pricing in Idaho

– Lumber production decreased in Q4 2020 leading to lower fixed cost absorption

Real Estate

Fourth Quarter 2020 Highlights:

– Real Estate Adjusted EBITDDA increased $43.1 million from Q3 2020 levels

– Sold 73,573 acres of rural land for $700/acre, including sale of 72,440 acres to The Conservation Fund for nearly $48 million

– Sold 72 residential lots at an average $80,000/lot in Q4 2020

– Sold 4 commercial acres for $818,000/acre

Outlook

“We expect housing fundamentals and lumber demand to remain strong in 2021. While lumber prices will likely moderate this year, we expect lumber prices to remain higher than long-term averages. This is particularly important to PotlatchDeltic given our leverage to lumber prices. We continue to keep an eye on the pandemic and its potential impact on the economy and our business. During 2021, we expect to harvest approximately 6 million tons in our Timberlands segment, ship around 1.1 billion board feet of lumber, and sell about 20,000 acres and 145 residential lots in our Real Estate segment,” stated Mr. Cremers.

For the full fourth quarter results, click here.

About PotlatchDeltic

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 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 management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com.

Contact:

Jerry Richards – Investor Relations – (509) 835-1521

Source: PotlatchDeltic Corporation