SPOKANE, Wash.--(BUSINESS WIRE)--The board of directors of PotlatchDeltic Corporation (Nasdaq: PCH) declared a quarterly distribution on the Company's common stock. The distribution of $0.45 per share is payable March 29, 2024 to stockholders of record on March 8, 2024. About PotlatchDeltic PotlatchDeltic (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi, and South Carolina. Through ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------|-------|---------|-------|-------|---------|-------|----------| | | | $ 165.1 | | | $ 150.1 | | $ (15.0) | | Adjusted EBITDDA | | $ 15.1 | | $ | (6.5) | | $ (21.6) | | Margin (%) | | 9.1 % | | | (4.3) % | | | | Lumber shipment volume (MMBF) | | 276 | | | 285 | | 9 | | Lumber price ($ / MBF) | $ | 481 | | � | 415 | � | (66) | Revenues (13.4) pts 9 $9.3 $21.9 $(0.4) $(1.2) MILLIONS $14.2 Q3 2023 Rural Sales Development Sales Ot ...

PotlatchDeltic Corporation’s (PCH) shares declined 5% in the after-hour trading session on Jan 29, after the company reported mixed results for fourth-quarter 2023. Its earnings missed the Zacks Consensus Estimate while revenues topped the same.On a year-over-year basis, earnings declined but the revenues increased.The company’s quarterly results reflect solid contributions from the Real Estate business attributable to capitalizing higher value opportunities from the stratification of CatchMark timberlands. ...

For the quarter ended December 2023, Potlatch (PCH) reported revenue of $254.5 million, up 0.5% over the same period last year. EPS came in at $0.00, compared to $0.12 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $239.8 million, representing a surprise of +6.13%. The company delivered an EPS surprise of -100.00%, with the consensus EPS estimate being $0.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Potlatch (PCH) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on January 29. On t ...

SPOKANE, Wash.--(BUSINESS WIRE)--PotlatchDeltic Corporation (Nasdaq: PCH) announced today the tax treatment for its dividend distributions made in 2023 on the company’s Common Stock. The dividend distributions of $1.80 per share are classified for income tax purposes as follows: $1.3124 (72.9%) of Capital Gain Distributions (long-term 20% rate) and $0.4876 (27.1%) as a Non-dividend Distribution (return of capital). The table below summarizes the income tax treatment of the company’s 2023 dividends: 2023 Di ...

SPOKANE, Wash.--(BUSINESS WIRE)--PotlatchDeltic Corporation (Nasdaq: PCH) will release fourth quarter earnings on Monday, January 29, after the market closes. The company will hold a live conference call and webcast on Tuesday, January 30 at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) to discuss the results. Investors may access the webcast at www.potlatchdeltic.com by clicking on the Investors link or by conference call at 1-888-510-2008 for U.S./Canada and 1-646-960-0306 for international callers. P ...

Aleksandra Tokarz/iStock via Getty Images On our last piece on PotlatchDeltic Corporation (NASDAQ:PCH) we gave investors a few reasons to be relatively optimistic. In "3 Reasons To Get A Little More Optimistic On This REIT" we laid a case for a counterrally, and we even upgraded the stock from a "7" on our pain scale, all the way to a "5". The thesis played out, despite some pressures from the macro side. PCH managed a double-digit total return since then and edged out SPDR S&P ETF (SPY) in a photo fini ...

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20-%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20%28unaudited%29) This section presents PotlatchDeltic Corporation's unaudited condensed consolidated financial statements for the periods ended September 30, 2023, including statements of operations, comprehensive income, balance sheets, cash flows, and stockholders' equity [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements show a significant decline in revenues and net income for both the third quarter and nine-month periods of 2023 compared to 2022 Condensed Consolidated Statements of Operations Highlights | (in thousands, except per share amounts) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $265,509 | $306,693 | $769,572 | $1,077,640 | | **Operating income** | $36,229 | $65,845 | $85,721 | $438,497 | | **Net income** | $23,675 | $45,955 | $62,241 | $330,057 | | **Diluted Net income per share** | $0.29 | $0.64 | $0.78 | $4.69 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly decreased in both the third quarter and nine-month periods of 2023, primarily due to lower net income and cash flow hedge fluctuations Comprehensive Income Highlights | (in thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $23,675 | $45,955 | $62,241 | $330,057 | | **Other comprehensive income, net of tax** | $28,332 | $33,639 | $28,241 | $127,839 | | **Comprehensive income** | $52,007 | $79,594 | $90,482 | $457,896 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at **$3.55 billion** as of September 30, 2023, with liabilities at **$1.31 billion** and equity at **$2.24 billion** Balance Sheet Summary | (in thousands) | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $472,704 | $471,535 | | **Timber and timberlands, net** | $2,459,508 | $2,508,372 | | **Total assets** | $3,548,278 | $3,550,555 | | **Total current liabilities** | $160,256 | $139,766 | | **Long-term debt** | $993,562 | $992,701 | | **Total liabilities** | $1,309,181 | $1,287,402 | | **Total stockholders' equity** | $2,239,097 | $2,263,153 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly declined to **$117.3 million** for the nine months ended September 30, 2023, impacting the ending cash balance Cash Flow Summary (Nine Months Ended Sep 30) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | $117,308 | $458,437 | | **Net cash from investing activities** | ($27,422) | ($127,795) | | **Net cash from financing activities** | ($121,601) | ($132,725) | | **Change in cash, cash equivalents and restricted cash** | ($31,715) | $197,917 | | **Cash, cash equivalents and restricted cash at end of period** | $313,876 | $494,689 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased to **$2.24 billion** by September 30, 2023, primarily due to dividends and share repurchases, partially offset by net income - Total stockholders' equity decreased by **$24.1 million** during the first nine months of 2023, from **$2,263.2 million** to **$2,239.1 million**[23](index=23&type=chunk) - Key activities impacting equity included net income of **$62.2 million**, common dividends of **$107.9 million**, and common stock repurchases of **$12.7 million**[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 explanations for financial statement figures, covering segment information, the CatchMark merger, debt, derivatives, and environmental contingencies - The company is a timberland REIT with nearly **2.2 million acres**, operating in three segments: Timberlands, Wood Products, and Real Estate[26](index=26&type=chunk)[31](index=31&type=chunk) - On May 1, 2023, stockholders approved an increase in authorized common stock from **100 million** to **200 million shares**[28](index=28&type=chunk) - The company finalized its insurance claim for the Ola, Arkansas sawmill fire in September 2023, resulting in **$89.4 million** of total insurance recoveries, net of deductible, and recorded a gain of **$39.4 million** for the nine months ended September 30, 2023[47](index=47&type=chunk) - The company merged with CatchMark Timber Trust, Inc. on September 14, 2022, accounted for as an asset acquisition, involving issuing **11.5 million shares** and assuming **$323.1 million** of liabilities[81](index=81&type=chunk)[82](index=82&type=chunk)[83](](index=83&type=chunk) - The company accrued an estimated **$5.6 million** for its share of costs related to a voluntary environmental sediment remediation project in the St. Louis River Area[88](index=88&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting significant declines in revenue and net income due to lower lumber and sawlog prices, while detailing segment results, liquidity, and strategic investments - The U.S. economy and housing affordability have been negatively impacted by higher interest rates, dampening consumer confidence and new home construction in 2023, with the average 30-year fixed mortgage rate reaching a nearly **23-year high of 7.3%** at the end of September 2023[102](index=102&type=chunk) - Long-term housing fundamentals are considered favorable due to a housing shortage, low existing inventory, and a large millennial demographic in prime home-buying years[103](index=103&type=chunk) - The company expects to harvest between **1.8 million** and **1.9 million tons** in Q4 2023 and ship between **270 million** and **280 million board feet** of lumber[105](index=105&type=chunk)[107](index=107&type=chunk) [Consolidated Results](index=25&type=section&id=Consolidated%20Results) Consolidated revenues and net income significantly declined for both Q3 and the nine months ended September 30, 2023, primarily due to lower lumber and sawlog prices Consolidated Results Summary | (in thousands) | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $265,509 | $306,693 | $769,572 | $1,077,640 | | **Operating income** | $36,229 | $65,845 | $85,721 | $438,497 | | **Net income** | $23,675 | $45,955 | $62,241 | $330,057 | | **Total Adjusted EBITDDA** | $56,278 | $101,090 | $159,500 | $521,822 | - The Q3 2023 revenue decrease was primarily due to declines in lumber prices, Northern sawlog prices, and fewer real estate development sales, partially offset by increased lumber shipments and Southern harvest volumes[110](index=110&type=chunk) - The YTD 2023 revenue decrease was driven by lower lumber and Northern sawlog prices, and fewer rural and development real estate sales, partially offset by increased harvest volumes and lumber shipments[117](index=117&type=chunk) [Business Segment Results](index=27&type=section&id=Business%20Segment%20Results) Segment performance shows significant declines in Adjusted EBITDDA for Timberlands and Wood Products due to lower prices, while Real Estate had mixed results Adjusted EBITDDA by Segment (Nine Months Ended Sep 30) | (in thousands) | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Timberlands** | $118,017 | $198,806 | ($80,789) | | **Wood Products** | $26,975 | $288,465 | ($261,490) | | **Real Estate** | $45,867 | $66,080 | ($20,213) | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with **$302.8 million** in cash, despite lower operating cash flow, and is investing in sawmill expansion while continuing share repurchases - As of September 30, 2023, the company had cash and cash equivalents of **$302.8 million**[145](index=145&type=chunk) - The company announced a project to expand and modernize its Waldo, Arkansas sawmill, expected to cost approximately **$131.0 million** and be completed by the end of 2024[147](index=147&type=chunk) - The company has a **$200.0 million** share repurchase program, with **$136.9 million** remaining authorization as of September 30, 2023[149](index=149&type=chunk) - The company was in compliance with all debt covenants as of September 30, 2023, with a leverage ratio of **19%** against a requirement of **≤ 40%**[155](index=155&type=chunk) [Liquidity and Performance Measures (Non-GAAP)](index=35&type=section&id=Liquidity%20and%20Performance%20Measures) This section defines and reconciles non-GAAP measures, showing Total Adjusted EBITDDA at **$159.5 million** and CAD at **$70.6 million** for the nine months ended September 30, 2023 Reconciliation of Net Income to Total Adjusted EBITDDA (Nine Months Ended Sep 30) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | **Net income** | $62,241 | $330,057 | | Interest expense, net | $15,783 | $18,593 | | Income taxes | $7,650 | $70,135 | | Depreciation, depletion and amortization | $89,099 | $66,838 | | Basis of real estate sold | $21,624 | $25,024 | | Other adjustments | ($36,591) | $11,175 | | **Total Adjusted EBITDDA** | $159,500 | $521,822 | Reconciliation of Cash from Operating Activities to CAD (Nine Months Ended Sep 30) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | $117,308 | $458,437 | | **Capital expenditures** | ($46,757) | ($152,301) | | **CAD** | $70,551 | $306,136 | [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure, primarily interest rate risk on debt, remains unchanged since December 31, 2022, managed through interest rate swaps - The company's primary market risk exposure is interest rate risk on its term loans and credit facility[167](index=167&type=chunk) - Interest rate swaps and forward starting swaps are used to hedge exposure to interest rate changes on existing and future debt[167](index=167&type=chunk) - There have been no material changes in market risk exposures since December 31, 2022[168](index=168&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[169](index=169&type=chunk) - No changes occurred in internal control over financial reporting during the nine months ended September 30, 2023, that have materially affected or are likely to materially affect internal controls[171](index=171&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II.%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=ITEM%201.%20Legal%20Proceedings) The company does not anticipate any pending or threatened litigation to materially adversely affect its financial position or operations - There is no pending or threatened litigation expected to have a material adverse effect on the company[172](index=172&type=chunk) [Risk Factors](index=37&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the 2022 Annual Report on Form 10-K - No material changes to risk factors have occurred since the 2022 Annual Report on Form 10-K[173](index=173&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased common stock under its **$200 million** program, with **$136.9 million** of authorization remaining as of September 30, 2023 Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | July 1 - July 31 | — | $— | $149,605,776 | | August 1 - August 31 | — | $— | $149,605,776 | | September 1 - September 30 | 282,988 | $44.98 | $136,877,115 | | **Total** | **282,988** | **$44.98** | **$136,877,115** | - The board of directors authorized a **$200.0 million** share repurchase program on August 31, 2022, with no set time limit[174](index=174&type=chunk) [Other Information](index=37&type=section&id=ITEM%205.%20Other%20Information) No officers or directors adopted, modified, or terminated Rule 10b5-1 trading arrangements during the third quarter of 2023 - No officers or directors adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the three months ended September 30, 2023[176](index=176&type=chunk) [Exhibits](index=38&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, a group annuity contract, CEO/CFO certifications, and iXBRL financial statements - Exhibits filed include certifications by the CEO and CFO (Rule 13a-14(a)/15d-14(a) and Section 1350), and financial statements formatted in iXBRL[177](index=177&type=chunk)

Financial Data and Key Metrics Changes - The company reported total adjusted EBITDDA of $56 million for Q3 2023, an increase from $46 million in Q2 2023, driven by improved performance across all business segments [6][15][33] - The Wood Products segment's adjusted EBITDDA rose to $15 million in Q3 from $12 million in Q2, attributed to slightly higher average lumber prices [6][25] - The Timberlands segment's adjusted EBITDDA increased from $29 million in Q2 to $42 million in Q3, with a record quarterly volume in Southern Timberlands [8][15] Business Line Data and Key Metrics Changes - The Wood Products segment shipped 276 million board feet of lumber in Q3, slightly below the 280 million board feet shipped in Q2 but 11 million feet more than in Q3 of the previous year [7][25] - The Timberlands segment harvested 2 million tons in Q3, achieving the high end of the forecast range, with stable sawlog and pulpwood markets [8][24] - The Real Estate segment contributed $14 million in adjusted EBITDDA, with sales of 32 residential lots at an average price of $89,000 per lot [9][16] Market Data and Key Metrics Changes - Homebuilder sentiment has trended downward due to higher mortgage rates and housing affordability challenges, impacting demand [11] - The company noted a significant underlying shortage of housing stock in the U.S., estimated between 2 million and 4 million units, which could provide long-term demand support [11] - The repair and remodel market remains strong, with a 15% year-to-date increase in home center takeaway compared to the previous year [19] Company Strategy and Development Direction - The company is focused on executing its capital project plan, including a $131 million project to modernize and expand the Waldo, Arkansas sawmill, expected to be completed by the end of 2024 [7][14] - The company is exploring natural climate solutions, including a carbon credit project on approximately 50,000 acres of timberlands [17] - The company maintains a disciplined capital allocation strategy, having repurchased 283,000 shares for $13 million in Q3 and an additional 264,000 shares for $12 million since the end of September [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term housing fundamentals despite current macroeconomic concerns, including high mortgage rates and economic uncertainty [11][33] - The company anticipates total adjusted EBITDDA to be lower in Q4 compared to Q3 due to expected declines in lumber and sawlog prices [33] - Management noted that the housing market has not collapsed, with signs of stability in new residential construction demand [60] Other Important Information - The company finalized its Ola sawmill fire insurance claim for a total of $89 million, which included property replacement and business interruption coverage [29] - The company has a total liquidity of $602 million, including $303 million in cash and availability on its undrawn revolver [27] Q&A Session Summary Question: Southern sawlog realizations were flat from Q2 to Q3. What are the regional differences? - Management indicated that sawlog prices were generally consistent across regions, with some earlier differences flattening out [37] Question: What are the dealer inventory levels and willingness to restock at current lumber prices? - Management noted that dealer inventories are low, with dealers nervous about the macroeconomic environment, leading to cautious restocking [38] Question: What is the outlook for European lumber imports? - Management observed a decline in European imports due to high prices and geopolitical factors, expecting further decreases in the coming months [42][44] Question: What is the company's strategy regarding share repurchases versus timberland acquisitions? - Management stated that share repurchases have become more attractive than timberland acquisitions due to current market conditions, but they remain open to opportunistic timberland purchases [79][80] Question: What is the outlook for the repair and remodel market in 2024? - Management expects the repair and remodel market to remain strong, with a potential slight increase in demand as consumers invest in their homes [62]