PotlatchDeltic Corporation Reports Second Quarter 2024 Results

Generated Total Adjusted EBITDDA of $103.2 million and Total Adjusted EBITDDA margin of 32%

Completed the sale of 34,100 acres of four-year average age Southern timberlands for $57 million, or $1,700 per acre

Repurchased 610,000 shares for $25 million, or $41 per share

Finalizing construction of the $131 million Waldo, Arkansas sawmill expansion and modernization project

Maintained strong liquidity of nearly $500 million as of June 30, 2024

PotlatchDeltic Corporation reported net income of $13.7 million, or $0.17 per diluted share, on revenues of $320.7 million for the quarter ended June 30, 2024. Net income was $22.3 million, or $0.28 per diluted share, on revenues of $246.1 million for the quarter ended June 30, 2023. Excluding after-tax special items consisting of gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $5.2 million, or $0.06 per diluted share, for the second quarter of 2023.

Second Quarter 2024 Highlights

“All of our business segments delivered solid operational execution in the second quarter in spite of languishing lumber markets and the current economic backdrop,” said Eric Cremers, President and Chief Executive Officer. “Our Real Estate business generated strong rural sales activity that created high value transactions with significant premiums to timberland values, highlighted by the closing of our previously announced 34,100-acre timberland sale to Forest Investment Associates for $57 million. Additionally, our Wood Products business is diligently focused on the final phase of construction on our Waldo, Arkansas sawmill expansion and modernization project for completion in the third quarter. As for capital allocation, our strong balance sheet and liquidity continues to allow us the flexibility to execute on our disciplined and opportunistic strategy, which included $25 million of share repurchases during the quarter. Looking ahead, we continue to believe long-term underlying housing fundamentals remain favorable and are optimistic that lumber markets will gain renewed momentum as inflation and interest rates improve,” stated Mr. Cremers.

Business Performance: Q2 2024 vs. Q1 2024

Timberlands

Second Quarter 2024 Highlights

• Timberlands Adjusted EBITDDA decreased $0.5 million from Q1 2024
• Northern sawlog prices increased 9% primarily due to seasonally lighter logs and higher cedar sawlog prices
• Southern sawlog prices remained relatively flat
• Forest management costs increased due to seasonally higher activities

Wood Products

Second Quarter 2024 Highlights

• Wood Products Adjusted EBITDDA decreased $6.7 million from Q1 2024
• Average lumber prices decreased 2% to $423 per thousand board feet (MBF) in Q2 2024
• Higher per-unit manufacturing costs primarily due to impacts from the expansion project at the Waldo sawmill

Real Estate

Second Quarter 2024 Highlights

• Real Estate Adjusted EBITDDA increased $83.4 million from Q1 2024
• Sold 43,121 acres of rural land at an average price of $1,968 per acre, including the sale of 34,100 acres to Forest Investment Associates for $57 million
• Sold 13 residential lots at an average price of $112,721 per lot
• Sold 12 commercial acres for $492,746 per acre

For the full second quarter results, click here.

About PotlatchDeltic

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

Contact:

Wayne Wasechek – Investor Relations – (509) 835-1521

Source: PotlatchDeltic Corporation