Financial Data and Key Metrics Changes - Total adjusted EBITDDA for Q3 2024 was $46 million, a significant decrease from $103 million in Q2 2024, primarily due to a large land sale in the previous quarter [31] - Adjusted EBITDDA for the Timberlands division was $36 million, slightly higher than the previous quarter, with harvest volume in Idaho increasing to 427,000 tons from 365,000 tons [32] - Adjusted EBITDDA loss in the Wood Products segment widened from $7 million in Q2 to $10 million in Q3, driven by lower lumber prices and increased manufacturing costs [34] - The Real Estate segment generated $32 million in adjusted EBITDDA, down from $90 million in Q2, largely due to the absence of significant commercial land sales [37] Business Line Data and Key Metrics Changes - Timberlands division harvested 1.5 million tons in the South, consistent with Q2, while Southern pine sawlog prices remained stable despite slight moderation [33] - Wood Products segment saw average lumber price realization decrease by 5% from $423 per thousand board feet in Q2 to $402 in Q3, with shipments dropping to 267 million board feet [35][36] - Real Estate development business experienced increased EBITDDA due to higher residential lot sales, with 53 lots sold at an average price of $205,000, a record for the community [15] Market Data and Key Metrics Changes - Lumber markets hit cyclical lows early in Q3 but began to recover mid-quarter, with prices increasing from $359 to $418, a 16% rise [10] - The U.S. housing market showed resilience, with new home sales in September reaching the highest level in 16 months, despite elevated interest rates [24] - Multifamily construction faced challenges due to an oversupply of units and restrictive financing, while long-term housing fundamentals remained strong [25][26] Company Strategy and Development Direction - The company is focused on optimizing product mix, efficiently running mills, and managing costs to navigate challenging lumber markets [14] - The modernization and expansion project at the Waldo sawmill is expected to increase annual capacity by 85 million board feet and improve recovery by approximately 6% [13] - The company is exploring natural climate solutions, including solar development and lithium opportunities, which are anticipated to drive future growth [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the lumber market's recovery, attributing recent price increases to supply constraints and anticipated demand growth due to Federal Reserve interest rate cuts [54] - The company expects to harvest 1.8 million to 1.9 million tons in Q4, with a forecasted increase in Northern sawlog prices and improved production levels at the Waldo sawmill [44][45] - Long-term demand fundamentals in housing and repair and remodel sectors are expected to support growth, with anticipated increases in residential improvement spending [28][29] Other Important Information - The company repurchased $2 million worth of shares in Q3, with $98 million remaining under the repurchase program [23] - Total liquidity was reported at $460 million, including $161 million in cash [40] - Capital expenditures for the year are projected to be between $100 million and $110 million, with a significant portion allocated to the Waldo project [42] Q&A Session Summary Question: Recent uptick in lumber prices - Management indicated that the recent increase in lumber prices is largely supply-driven, with significant capacity reductions in the market [52] Question: Southern sawlog prices and inflation - Management expects log prices to improve as lumber markets recover, particularly in the Southeast region [60] Question: Northern sawlog pricing clarification - The anticipated increase in Northern sawlog prices includes a seasonal density factor [63] Question: Timeline for natural climate solutions contracts - Management is optimistic about solar options but expects significant impacts on P&L to materialize around 2026 [66] Question: Timberland deal activity - The timberland M&A market is currently sluggish, with a lack of high-quality properties available for sale [70] Question: Manufacturing costs in Wood Products - Management expects a significant drop in processing costs as the Waldo mill ramps up production [75] Question: Supply trade flow on lumber markets - Imports from Europe have decreased by about 10% this year, with expectations of moderated import levels [80] Question: Capital spending priorities for 2025 - Management is still in the budgeting process for 2025 and has not finalized capital spending plans [85]

Financial Performance - Potlatch (PCH) reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of a loss of $0.04 per share, representing an earnings surprise of 200% [1] - The company posted revenues of $255.13 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 6.58%, but down from $265.51 million year-over-year [2] - Over the last four quarters, Potlatch has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Potlatch shares have declined approximately 14% since the beginning of the year, contrasting with the S&P 500's gain of 21.8% [3] - The current Zacks Rank for Potlatch is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $234.8 million, and $0.02 on revenues of $1.02 billion for the current fiscal year [7] - The estimate revisions trend for Potlatch is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Industry Context - The Building Products - Wood industry, to which Potlatch belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Potlatch's stock performance [5]

Toronto, Ontario--(Newsfile Corp. - October 23, 2024) - Appia Rare Earths & Uranium Corp. (CSE: API) (OTCQX: APAAF) (FSE: A0I0) (MUN: A0I0) (BER: A0I0) (the "Company" or "Appia") is excited to announce the commencement of its diamond drilling program in the southwest corner of Target IV. The goal of this program is to identify and delineate a possible Rare Earth Elements (REE) highgrade area at depth, identified by previous Reverse Circulation (RC) drilling (See January 16th 2024 Press Release), associated ...

This maker of fencing and decking products is expected to post quarterly earnings of $0.79 per share in its upcoming report, which represents a year-over-year change of +11.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Potlatch (PCH) came out with quarterly earnings of $0.17 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarter ...

Exhibit 99.1 News Release For immediate release: Contact: Investors Media Wayne Wasechek Anna Torma 509.835.1521 509.835.1558 PotlatchDeltic Corporation Reports Second Quarter 2024 Results SPOKANE, Wash., July 29, 2024 (BUSINESS WIRE) – PotlatchDeltic Corporation (Nasdaq: PCH) today 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 ...

REITs are usually thought of as income investments. They pay reliable, high yields, often supported by contractual income. Tradingeconomics That is against an enterprise value of $24B, making it somewhere in the ballpark of a 10% NOI yield. The next decade Circled in yellow above is an accumulated deficit of homes. That decade long stretch of almost no building caused home inventory to fall well below comfortable levels. Eventually, this deficit will be made up. It was starting to happen until mortgage rate ...

Toronto, Ontario--(Newsfile Corp. - June 12, 2024) - Appia Rare Earths & Uranium Corp. (CSE: API) (OTCQX: APAAF) (FSE: A0I0) (MUN: A0I0) (BER: A0I0) (the "Company" or "Appia") announced today that, further to its press release dated December 4, 2023, Appia has earned its initial 10% legal and beneficial ownership interest in Appia Brasil Rare Earths Mineracao Ltda (the "Appia Brasil") the Brazilian company that holds the PCH Project (the "Property") located in the Tocantins Structural Province of the Brasíl ...

Core Viewpoint - Appia Rare Earths & Uranium Corp. has announced significant exploration results from two new targets, Electra and Maia, indicating substantial enrichment of Heavy Rare Earth Oxides (HREO) in the regolith over the Ipora Granite, which is indicative of Ionic Adsorption Clay (IAC) rare earth element deposits [1][2][3]. Group 1: Exploration Results - A total of 196 samples from 25 auger drill holes were analyzed, confirming the presence of HREO in the newly identified targets [1][3]. - Selected intercepts from the auger drill holes include: - PCH-AH-036: 5m at 1646ppm TREO, 381ppm HREO, 53ppm Dy+Tb, 416ppm Nd+Pr from 5m - PCH-AH-042: 3m at 1120ppm TREO, 155ppm HREO, 24ppm Dy+Tb, 225ppm Nd+Pr from 5m - PCH-AH-180: 4m at 1645ppm TREO, 174ppm HREO, 24ppm Dy+Tb, 340ppm Nd+Pr from 1m [3][4]. Group 2: Project Development - The company is advancing to the next phase of definition drilling and preparing a Preliminary Economic Assessment (PEA) report, which will include an expansion of the existing maiden Mineral Resource Estimate [2][4]. - The Electra and Maia targets cover areas of 395 and 321 hectares respectively, contributing to a total of approximately 2,400 hectares across four new target zones [5]. Group 3: Geological Insights - The exploration team has identified well-developed zones with similar lithological characteristics and distribution of REE mineralization associated with the weathered Ipora Granite [4][5]. - The auger drill holes averaged 7.84 meters in depth, with most holes ending in mineralization, indicating potential for further exploration [5]. Group 4: Company Overview - Appia Rare Earths & Uranium Corp. is focused on rare earth elements and uranium, holding rights to explore a significant area in Brazil and other properties in Canada [18]. - The company has 136.3 million common shares outstanding and is actively working to build industry linkages and participate in international forums to support project development [19].

[PART I. - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's analysis of financial condition and results [ITEM 1. Financial Statements (unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) This section presents unaudited condensed consolidated financial statements and their detailed explanatory notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, costs, operating income, and net income (loss) for the period Condensed Consolidated Statements of Operations Summary (in thousands) | (in thousands, except per share amounts) | 2024 | 2023 | | :-------------------------------------- | :--- | :--- | | Revenues | $228,127 | $257,962 | | Costs and expenses: | | | | Cost of goods sold | 212,160 | 224,350 | | Selling, general and administrative expenses | 20,727 | 18,230 | | CatchMark merger-related expenses | — | 2,209 | | Total Costs and expenses | 232,887 | 244,789 | | Operating income (loss) | (4,760) | 13,173 | | Income (loss) before income taxes | (4,422) | 12,756 | | Income taxes | 4,117 | 3,504 | | Net income (loss) | $(305) | $16,260 | | Net income (loss) per share: Basic | $— | $0.20 | | Net income (loss) per share: Diluted | $— | $0.20 | | Dividends per share | $0.45 | $0.45 | - The company reported a net loss of **$305 thousand** for Q1 2024, a significant decrease from a net income of **$16.26 million** in Q1 2023[8](index=8&type=chunk) - Revenues decreased by **$29.8 million**, from **$257.96 million** in Q1 2023 to **$228.13 million** in Q1 2024[8](index=8&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This statement presents net income (loss) and other comprehensive income (loss) components, including cash flow hedges Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $(305) | $16,260 | | Other comprehensive income (loss), net of tax: | | | | Pension and other postretirement employee benefits | (229) | (131) | | Cash flow hedges | 15,925 | (17,335) | | Other comprehensive income (loss), net of tax | 15,696 | (17,466) | | Comprehensive income (loss) | $15,391 | $(1,206) | - Comprehensive income significantly improved to **$15.39 million** in Q1 2024 from a loss of **$1.21 million** in Q1 2023, primarily driven by a positive change in cash flow hedges[10](index=10&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at period-end Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------- | :------------- | :---------------- | | Total assets | $3,408,939 | $3,431,256 | | Total liabilities | $1,255,667 | $1,260,158 | | Total stockholders' equity | $2,153,272 | $2,171,098 | | Cash and cash equivalents | $180,150 | $230,118 | | Timber and timberlands, net | $2,415,818 | $2,440,398 | - Total assets decreased slightly to **$3.41 billion** at March 31, 2024, from **$3.43 billion** at December 31, 2023[13](index=13&type=chunk) - Cash and cash equivalents decreased by **$49.97 million**, from **$230.12 million** at December 31, 2023, to **$180.15 million** at March 31, 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details cash flows from operating, investing, and financing activities for the period Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash from operating activities | $16,029 | $39,139 | | Net cash from investing activities | $(36,996) | $(4,896) | | Net cash from financing activities | $(36,571) | $(36,800) | | Change in cash, cash equivalents and restricted cash | $(57,538) | $(2,557) | | Cash, cash equivalents and restricted cash at end of period | $180,150 | $343,034 | - Net cash from operating activities decreased significantly to **$16.03 million** in Q1 2024 from **$39.14 million** in Q1 2023[16](index=16&type=chunk) - Net cash used in investing activities increased substantially to **$37.00 million** in Q1 2024 from **$4.90 million** in Q1 2023, primarily due to timberland acquisitions[16](index=16&type=chunk)[119](index=119&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement outlines changes in stockholders' equity, including net income (loss) and dividends, over the period Condensed Consolidated Statements of Stockholders' Equity (in thousands) | (in thousands) | Balance, December 31, 2023 | Net loss | Common dividends, $0.45 per share | Balance, March 31, 2024 | | :--------------------------------- | :------------------------- | :------- | :-------------------------------- | :---------------------- | | Total Stockholders' Equity | $2,171,098 | $(305) | $(35,779) | $2,153,272 | - Total stockholders' equity decreased from **$2.17 billion** at December 31, 2023, to **$2.15 billion** at March 31, 2024, primarily due to net loss and common dividends[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes supporting the condensed consolidated financial statements [Note 1: Basis of Presentation](index=10&type=section&id=Note%201:%20Basis%20of%20Presentation) This note describes the company's operations as a timberland REIT and the basis for financial statement presentation - PotlatchDeltic Corporation operates as a leading timberland Real Estate Investment Trust (REIT) with operations in nine states, focusing on timberland management, wood products manufacturing, and real estate development[27](index=27&type=chunk) - The company adopted ASU 2023-07, Segment Reporting, on January 1, 2024, with retrospective application for all periods presented, which will impact annual financial statements for 2024 and interim statements starting 2025[30](index=30&type=chunk) [Note 2: Segment Information](index=11&type=section&id=Note%202:%20Segment%20Information) This note provides financial data for the company's Timberlands, Wood Products, and Real Estate operating segments - The company's operations are divided into three reportable segments: Timberlands, Wood Products, and Real Estate[33](index=33&type=chunk) Segment Revenues and Adjusted EBITDDA (in thousands) | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Total Timberlands revenues | $92,950 | $115,238 | | Total Wood Products revenues | $148,598 | $152,795 | | Total Real Estate revenues | $11,107 | $23,863 | | Total consolidated revenues | $228,127 | $257,962 | | Adjusted EBITDDA: Timberlands | $34,748 | $46,639 | | Adjusted EBITDDA: Wood Products | $(139) | $(31) | | Adjusted EBITDDA: Real Estate | $6,228 | $19,465 | | Total Adjusted EBITDDA | $29,722 | $57,777 | - Total Adjusted EBITDDA decreased by **$28.06 million**, from **$57.78 million** in Q1 2023 to **$29.72 million** in Q1 2024, with all segments showing a decline[38](index=38&type=chunk) [Note 3: Earnings Per Share](index=13&type=section&id=Note%203:%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per share and stock repurchase authorizations Weighted-Average Shares Outstanding (in thousands) | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Basic weighted-average shares outstanding | 79,677 | 80,027 | | Diluted weighted-average shares outstanding | 79,677 | 80,167 | - Approximately **421,500** stock-based awards were excluded from diluted EPS calculation in Q1 2024 due to their anti-dilutive nature, compared to **134,000** in Q1 2023[41](index=41&type=chunk) - The company had **$125.0 million** remaining authorization for future stock repurchases under the 2022 Repurchase Program as of March 31, 2024, with no shares repurchased in Q1 2024 or Q1 2023[42](index=42&type=chunk) [Note 4: Certain Balance Sheet Components](index=13&type=section&id=Note%204:%20Certain%20Balance%20Sheet%20Components) This note provides details on inventories, property, plant and equipment, timberlands, and accounts payable Selected Balance Sheet Components (in thousands) | (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------- | :------------- | :---------------- | | Total inventories, net | $77,572 | $78,665 | | Total property, plant and equipment, net | $375,891 | $372,832 | | Total timber and timberlands, net | $2,415,818 | $2,440,398 | | Total accounts payable and accrued liabilities | $80,697 | $82,383 | - In January 2024, the company entered an agreement to sell approximately **34,000 acres** of Southern timberlands for **$58.0 million**, expected to close in Q2 2024, with **$42.8 million** classified as real estate held for sale[47](index=47&type=chunk) - Also in January 2024, the company acquired **16,000 acres** of timberlands in Arkansas for **$31.4 million**, funded with cash on hand[47](index=47&type=chunk) [Note 5: Debt](index=15&type=section&id=Note%205:%20Debt) This note outlines the company's outstanding debt, including term loans and revolving credit facilities - At March 31, 2024, total outstanding principal on long-term debt was **$1.0 billion**, including **$971.0 million** in term loans[49](index=49&type=chunk) - Approximately **$175.7 million** of long-term debt, including a **$110.0 million** term loan and a **$65.7 million** revenue bond, was classified as current at March 31, 2024, maturing during 2024[49](index=49&type=chunk) - The company has a **$300.0 million** revolving line of credit, maturing February 14, 2027, with no borrowings outstanding at March 31, 2024[51](index=51&type=chunk) [Note 6: Derivative Instruments](index=15&type=section&id=Note%206:%20Derivative%20Instruments) This note describes the company's use of interest rate swaps to manage cash flow risks from variable-rate debt - The company uses interest rate swaps to manage cash flow risks, converting **$761.0 million** of SOFR-indexed term loan debt from variable rates (SOFR plus 1.61%-2.30%) to fixed rates (2.14%-4.83%)[54](index=54&type=chunk) - Gross fair values of derivative instruments increased to **$142.6 million** at March 31, 2024, from **$129.1 million** at December 31, 2023[55](index=55&type=chunk) - Net gains of approximately **$19.6 million** are expected to be reclassified into earnings from cash flow hedges in the next 12 months[57](index=57&type=chunk) [Note 7: Fair Value Measurements](index=17&type=section&id=Note%207:%20Fair%20Value%20Measurements) This note provides fair value measurements for derivative instruments and long-term debt, primarily using Level 2 inputs Fair Value of Financial Instruments (in thousands) | (in thousands) | March 31, 2024 Carrying Amount | March 31, 2024 Fair Value | December 31, 2023 Carrying Amount | December 31, 2023 Fair Value | | :--------------------------------- | :----------------------------- | :------------------------ | :-------------------------------- | :----------------------------- | | Derivative assets related to interest rate swaps (Level 2) | $142,636 | $142,636 | $129,125 | $129,125 | | Long-term debt, including current portion (Level 2) | $(1,035,817) | $(1,030,852) | $(1,035,654) | $(1,030,504) | - The fair value of interest rate swaps is determined using discounted cash flow analysis with observable market-based inputs[59](index=59&type=chunk) [Note 8: Equity-Based Compensation](index=18&type=section&id=Note%208:%20Equity-Based%20Compensation) This note details the company's equity-based compensation expense and the fair value of granted awards Equity-Based Compensation Expense and Tax Benefit (in thousands) | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Total equity-based compensation expense | $2,560 | $2,279 | | Total tax benefit recognized for equity-based expense | $159 | $122 | - Equity-based compensation expense increased to **$2.56 million** in Q1 2024 from **$2.28 million** in Q1 2023[63](index=63&type=chunk) - The weighted-average grant date fair value of Performance Share Awards (PSAs) granted in Q1 2024 was **$52.92 per share**, with a three-year performance period[64](index=64&type=chunk) [Note 9: Income Taxes](index=18&type=section&id=Note%209:%20Income%20Taxes) This note explains the company's income tax status as a REIT and the taxation of its taxable REIT subsidiaries - As a REIT, the company is generally not subject to federal and state corporate income taxes on real estate investments, but its taxable REIT subsidiaries (TRS) are subject to these taxes, primarily for wood products manufacturing and certain real estate investments[67](index=67&type=chunk) [Note 10: Leases](index=20&type=section&id=Note%2010:%20Leases) This note provides information on the company's lease assets, lease liabilities, and net lease costs Lease Assets, Liabilities, and Costs (in thousands) | (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------- | :------------- | :---------------- | | Total lease assets | $21,705 | $21,450 | | Total lease liabilities | $21,547 | $21,389 | | Net lease costs | $2,242 | $2,228 | - Total lease assets and liabilities remained relatively stable, with total lease assets at **$21.71 million** and total lease liabilities at **$21.55 million** as of March 31, 2024[68](index=68&type=chunk) [Note 11: Pension and Other Postretirement Employee Benefits](index=21&type=section&id=Note%2011:%20Pension%20and%20Other%20Postretirement%20Employee%20Benefits) This note details the net periodic cost for the company's pension and other postretirement employee benefit plans Net Periodic Pension and OPEB Costs (in thousands) | (in thousands) | Pension 2024 | Pension 2023 | OPEB 2024 | OPEB 2023 | | :--------------------------------- | :----------- | :----------- | :-------- | :-------- | | Total net periodic cost | $1,232 | $1,456 | $(89) | $155 | - Net periodic pension cost decreased to **$1.23 million** in Q1 2024 from **$1.46 million** in Q1 2023, while OPEB shifted to a net benefit of **$89 thousand** from a cost of **$155 thousand**[71](index=71&type=chunk) [Note 12: Components of Accumulated Other Comprehensive Income](index=21&type=section&id=Note%2012:%20Components%20of%20Accumulated%20Other%20Comprehensive%20Income) This note breaks down the components of accumulated other comprehensive income, including pension and cash flow hedges Components of Accumulated Other Comprehensive Income (in thousands) | (in thousands) | March 31, 2024 | March 31, 2023 | | :--------------------------------- | :------------- | :------------- | | Pension and Other Postretirement Employee Benefits Balance at end of period | $(19,154) | $(28,625) | | Cash Flow Hedges Balance at end of period | $137,882 | $108,811 | | Accumulated other comprehensive income, end of period | $118,728 | $80,186 | - Accumulated Other Comprehensive Income (AOCI) increased to **$118.73 million** at March 31, 2024, from **$80.19 million** at March 31, 2023, primarily due to significant unrecognized gains in cash flow hedges[72](index=72&type=chunk) [Note 13: Commitments and Contingencies](index=19&type=section&id=Note%2013:%20Commitments%20and%20Contingencies) This note outlines the company's commitments and contingencies, including environmental remediation projects - The company has accrued **$2.2 million** for its estimated remaining contribution to the Thomson Reservoir remediation project as of March 31, 2024, with total estimated costs between **$5.3 million** and **$5.9 million**[77](index=77&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, condition, and operational results for the quarter [Forward-Looking Information](index=20&type=section&id=Forward-Looking%20Information) This section outlines forward-looking statements and key risks that could impact the company's future performance - The report contains forward-looking statements regarding economic conditions, interest rates, hedging effectiveness, share repurchases, dividend payments, liquidity, debt obligations, housing market, lumber and log markets, timber harvest volumes, real estate sales, capital expenditures, and the Waldo sawmill expansion[79](index=79&type=chunk) - Key risks include general economic conditions, labor and land availability, construction activity changes, tariffs, demand fluctuations, timber prices, supply chain disruptions, weather, fire, natural disasters, shipping costs, inflation, environmental liabilities, and the ability to obtain carbon credit certification[80](index=80&type=chunk) [Our Company](index=21&type=section&id=Our%20Company) This section describes PotlatchDeltic as a timberland REIT with diverse operations in timberland, wood products, and real estate - PotlatchDeltic is a timberland REIT owning nearly **2.2 million acres** of timberland, six sawmills, an industrial grade plywood mill, and real estate development businesses, organized into Timberlands, Wood Products, and Real Estate segments[82](index=82&type=chunk) - The company is positioned to contribute to natural climate solutions through forest carbon offsets, carbon capture, and renewable energy projects[84](index=84&type=chunk) [Non-GAAP Measures](index=21&type=section&id=Non-GAAP%20Measures) This section defines and explains the company's use of non-GAAP financial measures like Total Adjusted EBITDDA and CAD - The company uses non-GAAP measures, Total Adjusted EBITDDA and Cash Available for Distribution (CAD), to supplement GAAP financial statements and evaluate operating performance and liquidity[85](index=85&type=chunk) [Business and Economic Trends Affecting Our Operations](index=21&type=section&id=Business%20and%20Economic%20Trends%20Affecting%20Our%20Operations) This section analyzes economic and industry trends impacting the company's operating results, including housing and timber markets - Operating results are influenced by the cyclical nature of the forest products industry, with lower timber and wood product sales volumes typically in the first half of the year due to weather conditions[87](index=87&type=chunk) - Interest rates, averaging nearly **6.8%** for 30-year fixed mortgages in Q1 2024, continue to impact the housing market, with historically low existing home inventory and affordability challenges[90](index=90&type=chunk) - Single-family housing starts remained above **1.0 million units** (seasonally-adjusted annual basis) for the fifth consecutive month in March 2024, supported by homebuilders' incentives and more affordable designs[91](index=91&type=chunk) - The repair and remodel sector remains the largest market for lumber demand, supported by solid household balance sheets and an aging housing stock[93](index=93&type=chunk) - Northern sawlog prices decreased in Q1 2024 due to lower indexed lumber prices, while Southern sawlog and pulpwood prices remained relatively stable[94](index=94&type=chunk) - Total harvest volume in Q1 2024 was **1.9 million tons**, lower than Q1 2023, primarily due to less favorable operating conditions in the Northern region[94](index=94&type=chunk) - Lumber shipments increased to **271 million board feet** in Q1 2024, primarily due to increased production at Southern sawmills, with expected shipments of **275-285 million board feet** in Q2 2024[95](index=95&type=chunk) - The company expects to sell approximately **43,000 rural acres** and **24 residential lots** in Q2 2024, including a **34,000-acre** timberland sale for **$58.0 million**[96](index=96&type=chunk) [Consolidated Results](index=23&type=section&id=Consolidated%20Results) This section provides an overview of the company's consolidated financial performance, including revenues, operating income, and EBITDDA Consolidated Financial Performance Summary (in thousands) | (in thousands) | 2024 | 2023 | Change | | :--------------------------------- | :--- | :--- | :----- | | Revenues | $228,127 | $257,962 | $(29,835) | | Cost of goods sold | 212,160 | 224,350 | $(12,190) | | Selling, general and administrative expenses | 20,727 | 18,230 | $2,497 | | Operating income (loss) | $(4,760) | $13,173 | $(17,933) | | Net income (loss) | $(305) | $16,260 | $(16,565) | | Total Adjusted EBITDDA | $29,722 | $57,777 | $(28,055) | - Revenues decreased by **$29.8 million** (**11.6%**) in Q1 2024 compared to Q1 2023, primarily due to lower Northern sawlog prices, reduced harvest volume, and fewer rural real estate acres sold[98](index=98&type=chunk) - Operating income shifted from a gain of **$13.17 million** in Q1 2023 to a loss of **$4.76 million** in Q1 2024[97](index=97&type=chunk) - Total Adjusted EBITDDA decreased by **$28.1 million** (**48.5%**) in Q1 2024, mainly due to fewer rural real estate acres sold, lower Northern sawlog prices and harvest volume, and increased general and administrative expenses[103](index=103&type=chunk) [Business Segment Results](index=24&type=section&id=Business%20Segment%20Results) This section details the financial performance and key metrics for each of the company's operating segments [Timberlands Segment](index=24&type=section&id=Timberlands%20Segment) This section details the financial performance of the Timberlands segment, including revenues, harvest volumes, and prices Timberlands Segment Performance (in thousands) | (in thousands) | 2024 | 2023 | Change | | :--------------------------------- | :--- | :--- | :----- | | Revenues | $92,950 | $115,238 | $(22,288) | | Logging and hauling costs | 48,337 | 59,209 | $(10,872) | | Timberlands Adjusted EBITDDA | $34,748 | $46,639 | $(11,891) | Timberlands Harvest Volumes and Sales Prices | Harvest Volumes (in tons) | 2024 | 2023 | Change | | :--------------------------------- | :--- | :--- | :----- | | Northern region Total | 329,286 | 478,819 | $(149,533) | | Southern region Total | 1,593,814 | 1,598,272 | $(4,458) | | Total harvest volume | 1,923,100 | 2,077,091 | $(153,991) | | Sales Price/Unit ($ per ton) | 2024 | 2023 | Change | | :--------------------------------- | :--- | :--- | :----- | | Northern region Sawlog | $103 | $113 | $(10) | | Southern region Sawlog | $48 | $48 | $— | | Southern region Pulpwood | $31 | $33 | $(2) | - Timberlands Adjusted EBITDDA decreased by **$11.9 million** (**25.5%**) in Q1 2024, primarily due to lower Northern sawlog prices and reduced harvest volume, partially offset by lower logging and hauling costs[107](index=107&type=chunk)[108](index=108&type=chunk) [Wood Products Segment](index=25&type=section&id=Wood%20Products%20Segment) This section details the financial performance of the Wood Products segment, including revenues, shipments, and sales prices Wood Products Segment Performance (in thousands) | (in thousands) | 2024 | 2023 | Change | | :--------------------------------- | :--- | :--- | :----- | | Revenues | $148,598 | $152,795 | $(4,197) | | Wood Products Adjusted EBITDDA | $(139) | $(31) | $(108) | | Lumber shipments (MBF) | 271,148 | 261,633 | 9,515 | | Lumber sales prices ($ per MBF) | $430 | $435 | $(5) | - Wood Products Adjusted EBITDDA remained consistent with Q1 2023, showing a slight decrease to a loss of **$139 thousand**, despite a **$5 per MBF** decrease in average lumber sales prices[108](index=108&type=chunk)[110](index=110&type=chunk) - Lumber shipments increased by **9,515 MBF** (**3.6%**) in Q1 2024 compared to Q1 2023, primarily due to increased production at Southern sawmills[109](index=109&type=chunk)[110](index=110&type=chunk) [Real Estate Segment](index=26&type=section&id=Real%20Estate%20Segment) This section details the financial performance of the Real Estate segment, including revenues, acres sold, and average prices Real Estate Segment Performance (in thousands) | (in thousands) | 2024 | 2023 | Change | | :--------------------------------- | :--- | :--- | :----- | | Revenues | $11,107 | $23,863 | $(12,756) | | Real Estate Adjusted EBITDDA | $6,228 | $19,465 | $(13,237) | | Rural Real Estate Acres sold | 1,801 | 6,939 | $(5,138) | | Rural Real Estate Average price per acre | $3,069 | $2,568 | $501 | | Development Real Estate Residential lots sold | 24 | 24 | $— | | Development Real Estate Average price per lot | $119,750 | $116,429 | $3,321 | - Real Estate Adjusted EBITDDA decreased by **$13.2 million** (**68.0%**) in Q1 2024, primarily due to fewer rural real estate acres sold, with no comparable large conservation or land sales as in Q1 2023[114](index=114&type=chunk)[115](index=115&type=chunk) - Rural real estate acres sold decreased significantly from **6,939 acres** in Q1 2023 to **1,801 acres** in Q1 2024, though the average price per acre increased by **$501**[112](index=112&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flows, debt, capital expenditures, and overall financial liquidity and resources Cash Flow Summary (in thousands) | (in thousands) | 2024 | 2023 | Change | | :--------------------------------- | :--- | :--- | :----- | | Net cash from operating activities | $16,029 | $39,139 | $(23,110) | | Net cash from investing activities | $(36,996) | $(4,896) | $(32,100) | | Net cash from financing activities | $(36,571) | $(36,800) | $229 | - Net cash from operating activities decreased by **$23.1 million** in Q1 2024, mainly due to lower cash received from customers (lower Northern harvest volumes, sawlog prices, and rural real estate sales) and lower employee incentive compensation payouts[118](index=118&type=chunk) - Net cash used in investing activities increased by **$32.1 million**, primarily due to a **$31.4 million** timberland acquisition in Arkansas in Q1 2024[119](index=119&type=chunk) - The company expects to spend **$100 million to $110 million** on capital expenditures in 2024, including approximately **$44.0 million** remaining for the Waldo sawmill expansion and modernization project[120](index=120&type=chunk)[121](index=121&type=chunk) - At March 31, 2024, the company had **$125.0 million** remaining authorization for future stock repurchases under the 2022 Repurchase Program[122](index=122&type=chunk) - Total outstanding net long-term debt was **$1.0 billion** at March 31, 2024, with **$175.7 million** classified as current, maturing in 2024, and options for refinancing are being evaluated[123](index=123&type=chunk) - The company was in compliance with all debt covenants at March 31, 2024, maintaining an interest coverage ratio of **9.3** (required ≥ 3.00) and a leverage ratio of **18%** (required ≤ 40%)[129](index=129&type=chunk) Net Debt and Enterprise Value (in thousands) | (in thousands) | March 31, 2024 | December 31, 2023 | | :--------------------------------- | :------------- | :---------------- | | Net debt | $853,869 | $803,610 | | Market capitalization | $3,738,466 | $3,896,822 | | Enterprise value | $4,592,335 | $4,700,432 | | Net debt to enterprise value | 18.6 % | 17.1 % | | Dividend yield | 3.8 % | 3.7 % | [Liquidity and Performance Measures](index=29&type=section&id=Liquidity%20and%20Performance%20Measures) This section defines and reconciles non-GAAP liquidity and performance measures, including Total Adjusted EBITDDA and CAD - Total Adjusted EBITDDA is defined as net income (loss) before interest expense, net, income taxes, basis of real estate sold, depreciation, depletion and amortization, further excluding specific items[135](index=135&type=chunk) Total Adjusted EBITDDA Reconciliation (in thousands) | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $(305) | $16,260 | | Total Adjusted EBITDDA | $29,722 | $57,777 | - Cash Available for Distribution (CAD) is defined as cash from operating activities adjusted for capital spending for property, plant and equipment, timberlands reforestation and roads, and non-strategic timberland acquisitions[136](index=136&type=chunk) Cash Available for Distribution (CAD) Reconciliation (in thousands) | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash from operating activities | $16,029 | $39,139 | | Capital expenditures | $(44,307) | $(10,373) | | CAD | $(28,278) | $28,766 | - CAD decreased significantly to a deficit of **$28.28 million** in Q1 2024 from a positive **$28.77 million** in Q1 2023, primarily due to lower operating cash flows and increased capital expenditures[138](index=138&type=chunk) [Critical Accounting Policies and Estimates](index=30&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no significant changes to the company's critical accounting policies or estimates during the period - There have been no significant changes to the company's critical accounting policies or estimates during 2024, as presented in the 2023 Annual Report on Form 10-K[142](index=142&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk on financial instruments, hedged by derivatives - The company's primary market risk exposure is interest rate risk on variable rate debt and future debt issuances[143](index=143&type=chunk) - Interest rate swaps and forward starting swaps are used to hedge exposure to interest rate changes[143](index=143&type=chunk) - No material changes in market risk exposures have occurred since December 31, 2023[144](index=144&type=chunk) [ITEM 4. Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024[146](index=146&type=chunk) - No material changes occurred in internal control over financial reporting during the three months ended March 31, 2024[148](index=148&type=chunk) [PART II. - OTHER INFORMATION](index=32&type=section&id=PART%20II.%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits filed with the Form 10-Q [ITEM 1. Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) The company believes no pending or threatened litigation will materially adversely affect its financial position or operations - No pending or threatened litigation is expected to have a material adverse effect on the company's financial position, operations, or liquidity[149](index=149&type=chunk) [ITEM 1A. Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Annual Report on Form 10-K for December 31, 2023 - No material changes in risk factors have occurred since the Annual Report on Form 10-K for December 31, 2023[150](index=150&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the 2022 Repurchase Program in Q1 2024, with $125.0 million authorized - No shares were repurchased under the 2022 Repurchase Program during Q1 2024[151](index=151&type=chunk) - As of March 31, 2024, **$125.0 million** remained authorized for future stock repurchases[151](index=151&type=chunk) [ITEM 5. Other Information](index=33&type=section&id=ITEM%205.%20Other%20Information) Company officers adopted Rule 10b5-1 trading arrangements in Q1 2024 for tax withholding on equity awards - Several company officers adopted Rule 10b5-1 trading arrangements in Q1 2024 to cover tax withholding obligations from equity awards[153](index=153&type=chunk)[154](index=154&type=chunk) - The duration of each arrangement extends until the final settlement of the respective performance share or restricted stock unit award, around February 16, 2027[153](index=153&type=chunk) [ITEM 6. Exhibits](index=34&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including corporate documents, certifications, and iXBRL data - Exhibits include the Fourth Restated Certificate of Incorporation, Bylaws, Rule 13a-14(a)/15d-14(a) Certifications, Furnished statements of CEO and CFO under 18 U.S.C. Section 1350, and financial information in iXBRL format[156](index=156&type=chunk) [SIGNATURE](index=35&type=section&id=SIGNATURE) This section contains the official signature confirming the accuracy and submission of the report - The report was signed by Glen F. Smith, Chief Accounting Officer, on May 3, 2024[158](index=158&type=chunk)

FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES This presentation 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 and expenses; expected liquidity; the U.S. economic condition; the success of the company's business strategies; the company's disciplined and opportunistic capital allocation strategies, including share repurchases and dividend ...