Financial Performance - Revenues for Q1 2023 were $258.0 million, a decrease of $153.4 million compared to Q1 2022, primarily due to lower lumber prices and fewer sales in Chenal Valley [101]. - Adjusted EBITDDA for Q1 2023 was $57.8 million, down from $245.6 million in Q1 2022, reflecting a decrease of $187.8 million [100]. - Total Adjusted EBITDDA for Q1 2023 decreased by $187.8 million compared to Q1 2022, primarily due to lower lumber prices and higher manufacturing costs [108]. - Cash Available for Distribution (CAD) for the first quarter of 2023 was $28.8 million, compared to $213.1 million in the same period of 2022 [146]. - Net cash from operating activities decreased by $191.2 million in Q1 2023, totaling $39.1 million compared to $230.3 million in Q1 2022 [123]. Cost and Expenses - Cost of goods sold increased by $44.5 million compared to Q1 2022, mainly due to inflationary price increases in diesel fuel, energy, and repair and maintenance [102]. - Selling, general and administrative expenses rose by $1.9 million compared to Q1 2022, driven by inflation and activities related to the CatchMark merger [103]. - Average lumber sales prices fell to $435 per MBF in Q1 2023, a decrease of $640 from $1,075 per MBF in Q1 2022 [118]. - Wood Products Adjusted EBITDDA for Q1 2023 was $(31,000), a decline of $149.98 million from $149.95 million in Q1 2022 [115]. - Real Estate Adjusted EBITDDA for Q1 2023 was $19.5 million, down $10.7 million from $30.1 million in Q1 2022, influenced by lower rural and development real estate sales [122]. Timber and Production - The company harvested 2.1 million tons of timber in Q1 2023, significantly higher than Q1 2022, due to the addition of CatchMark timberlands and favorable conditions [96]. - Total harvest volume increased by 617,285 tons to 2,077,091 tons in Q1 2023 compared to 1,459,806 tons in Q1 2022 [112]. - Lumber shipments in Q1 2023 totaled 262 million board feet, with expectations to ship between 270 and 280 million board feet in Q2 2023 [98]. - Timberlands Adjusted EBITDDA for Q1 2023 was $46.6 million, down $29.8 million from $76.4 million in Q1 2022, driven by a 49.9% increase in Southern region harvest volumes [114]. Debt and Financing - The company assumed and refinanced $277.5 million in long-term debt at attractive interest rates in connection with the CatchMark merger [105]. - Total outstanding net long-term debt was $1.0 billion as of March 31, 2023, with a fixed interest rate structure [131]. - The company has a $300 million revolving line of credit, with no borrowings under this facility as of March 31, 2023 [132]. - The interest coverage ratio was 16.1, significantly above the required minimum of 3.00, and the leverage ratio was 19%, below the maximum limit of 40% [136]. Market Conditions - The average 30-year fixed mortgage rate increased from approximately 4.7% in March 2022 to approximately 6.3% in March 2023, impacting housing starts [93]. - The annual inflation rate in the U.S. slowed to 5.0% in March 2023, while the Producer Price Index decreased to 2.7% [95]. - Market capitalization increased to $3.96 billion as of March 31, 2023, compared to $3.51 billion at the end of 2022 [138]. Cash Flow and Investments - Cash received from customers decreased by $151.1 million due to lower lumber prices and fewer land sales, partially offset by increased shipments from the Ola sawmill and higher harvest activity [126]. - Capital expenditures for the first quarter of 2023 were $10.4 million, down from $17.2 million in the same period of 2022, with a total expected capital expenditure of approximately $135 million to $145 million for the year [126][127]. - The company plans to invest approximately $131 million in the expansion and modernization of the Waldo sawmill, increasing its capacity from 190 million to 275 million board feet, with completion expected by the end of 2024 [128]. Risk Management - The company is exposed to interest rate risk on its bank credit facility, term loans, and interest rate swap agreements [150]. - Interest rate volatility affects existing variable rate debt instruments and future fixed or variable rate debt [150]. - The company utilizes interest rate swaps and forward starting swaps to hedge against interest rate changes on existing and future debt issuances [150]. - All market risk sensitive instruments are used for purposes other than trading [150]. - There has been no material change in market risk exposure since December 31, 2022 [151].

Financial Data and Key Metrics Changes - The company reported total adjusted EBITDA of $58 million for Q1 2023, an increase from $52 million in Q4 2022 [10] - Adjusted EBITDA for the Timberlands segment decreased from $51 million in Q4 2022 to $47 million in Q1 2023 [10] - The Wood Products segment's adjusted EBITDA declined from $2 million in Q4 2022 to breakeven in Q1 2023 [11] Business Line Data and Key Metrics Changes - The Timberlands segment harvested 2.1 million tons in Q1 2023, a company record, with adjusted EBITDA of $47 million [8] - The Wood Products segment had breakeven adjusted EBITDA, with lumber shipments increasing by 2% to 262 million board feet in Q1 2023 [11] - The Real Estate segment generated adjusted EBITDA of $19 million in Q1 2023, up from $7 million in Q4 2022, driven by increased rural land sales [24] Market Data and Key Metrics Changes - Southern sawlog prices were 3% lower in Q1 2023 compared to Q4 2022, while Idaho sawlog prices were 19% lower [10] - The average lumber price realization increased each month in Q1, reaching $453 per 1,000 board feet in March [11] - The company expects Northern sawlog prices to decline by 5% in Q2 2023 compared to Q1 [25] Company Strategy and Development Direction - The company aims to grow its regular dividend sustainably and increase stable cash flows through accretive acquisitions [9] - A $131 million project to modernize and expand the Waldo, Arkansas sawmill is underway, expected to increase annual capacity by 85 million board feet [7] - The company is exploring natural climate solutions, including a carbon credit project and potential solar land deals, with over $100 million in the pipeline [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term housing demand due to a fundamental shortage of housing stock and favorable demographics [22] - The company anticipates that U.S. housing starts will return to levels above the long-term average of 1.5 million units per year as mortgage rates ease [22] - Management noted that while Q2 adjusted EBITDA is expected to be lower due to seasonally lower harvest volumes, they are encouraged by recent improvements in lumber prices [25] Other Important Information - The company has $326 million in cash and total liquidity of $625 million, maintaining a low leverage ratio [9] - The company did not repurchase any shares in Q1 2023, with plans to do so only when shares trade at a significant discount [9] - The company is preparing its fourth annual ESG report, highlighting its commitment to environmental, social, and governance initiatives [9] Q&A Session Summary Question: Can you parse out Q1 price performance between legacy Southern lands and acquired CatchMark lands? - Management indicated that legacy markets are relatively flat year-over-year, while newer CatchMark markets experienced modest price declines [27] Question: How do you approach share repurchases in 2023 given market uncertainty? - Management stated they will repurchase shares opportunistically when trading at a significant discount to NAV, balancing this against other capital allocation options [41] Question: What are the mile markers for solar and carbon revenue opportunities? - Management mentioned that the solar deals are under option with developers, while the carbon project is exploratory and will take time to develop [17][55] Question: What is the outlook for home center demand and repair/remodel market? - Management expects stable demand in repair/remodel, with potential for new residential construction to pick up as housing starts rebound in 2024 [72] Question: What is driving the recent divergence in lumber prices across regions? - Management noted that Southern Pine is outperforming due to proximity to demand and a just-in-time delivery strategy, while Northern markets are affected by a long winter [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K Commission File Number 1-32729 POTLATCHDELTIC CORPORATION (Exact name of registrant as specified in its charter) | Delaware | 82-0156045 | | --- | --- | | (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | | 601 West 1st Ave., Suite 1600 | | | Spokane, Washington | 99201 | | (Address of principal executive offices) | (Zip Code) | Registrant's telephone number, including area co ...

PotlatchDeltic Corporation (NASDAQ:PCH) Q4 2022 Earnings Conference Call January 31, 2023 12:00 PM ET Company Participants Jerry Richards - Vice President & Chief Financial Officer Eric Cremers - President & Chief Executive Officer Conference Call Participants Mark Weintraub - Seaport Global Paul Quinn - RBC Capital Markets George Staphos - Bank of America Mike Roxland - Truist Securities Operator Good morning. My name is Devon, and I will be your conference operator today. At this time, I would like to wel ...

Financial Performance - Total Adjusted EBITDDA for 2022 reached a record of $653 million, significantly exceeding the 2020 record [11] - Q4 2022 Total Adjusted EBITDDA was $52 million, reflecting declines in lumber and indexed sawlog prices, along with seasonally lower harvest volumes [17] - Cash Available for Distribution (CAD) in 2022 was $3071 million [12] - The company returned $263 million to shareholders in 2022, including $55 million in share repurchases [21] Segment Results - Timberlands Adjusted EBITDDA for Q4 2022 declined to $51 million due to lower indexed sawlog prices and seasonally lower harvest volumes [24] - Wood Products Adjusted EBITDDA decreased to $24 million in Q4 2022, largely due to lower lumber prices [30, 36] - Real Estate Adjusted EBITDDA declined to $72 million in Q4 2022 due to fewer acres and residential lots sold [40, 45] Capital Structure and Liquidity - Net debt to enterprise value is 164% [5] - The company has a strong liquidity position with $643 million available [12, 21] - The weighted average cost of debt is 24% [21] Outlook and Synergies - The company anticipates 2023 Total Adjusted EBITDDA to be significantly lower than 2022 due to higher interest rates and their expected impact on housing starts [51] - The company expects to achieve CAD synergies of $21 million from the CatchMark merger, compared to the initial target of $16 million [14]

PotlatchDeltic Corporation (NASDAQ:PCH) Q3 2022 Earnings Conference Call October 25, 2022 12:00 PM ET Company Participants Jerry Richards - Vice President & Chief Financial Officer Eric Cremers - President & Chief Executive Officer Conference Call Participants Mark Weintraub - Seaport Global Kurt Yinger - D.A. Davidson George Staphos - Bank of America Ketan Mamtora - BMO Capital Markets Mike Roxland - Truist Securities Paul Quinn - RBC Capital Markets Operator Good morning. My name is Lisa and I will be yo ...

Q3 2022 EARNINGS October 25, 2022 FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES FORWARD-LOOKING STATEMENTS 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; strategic and financial opportunities and synergies res ...

[PART I. - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20-%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements show decreased revenue and net income, though total assets and operating cash flow increased [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues and net income declined in Q2 and H1 2022 compared to the prior year periods **Consolidated Statements of Operations Highlights (in thousands, except per share amounts)** | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $359,597 | $447,506 | $770,947 | $801,699 | | **Operating Income** | $157,719 | $250,215 | $372,652 | $418,348 | | **Net Income** | $120,222 | $187,905 | $284,102 | $319,011 | | **Diluted EPS** | $1.72 | $2.77 | $4.07 | $4.71 | | **Dividends per share** | $0.44 | $0.41 | $0.88 | $0.82 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and stockholders' equity grew from year-end 2021, driven by a significant increase in cash **Balance Sheet Summary (in thousands)** | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $651,226 | $421,178 | | **Total Assets** | $2,871,919 | $2,535,215 | | **Total Current Liabilities** | $155,166 | $126,179 | | **Total Liabilities** | $1,028,368 | $1,009,082 | | **Total Stockholders' Equity** | $1,843,551 | $1,526,133 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased while investing cash outflow grew significantly due to timberland acquisitions **Cash Flow Summary (in thousands)** | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash from operating activities** | $378,186 | $341,340 | | **Net cash from investing activities** | $(88,766) | $(25,454) | | **Net cash from financing activities** | $(70,298) | $(56,196) | | **Change in cash** | $219,122 | $259,690 | - The increase in cash used for investing activities was driven by **$42.2 million for timber and timberlands acquisitions** and $36.8 million for property, plant, and equipment additions in the first six months of 2022[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment performance, a non-cash pension charge, and the pending all-stock merger with CatchMark - The company is a timberland REIT with approximately **1.8 million acres**, engaged in timberland management, wood products manufacturing, and real estate development[25](index=25&type=chunk) - In March 2022, the company transferred $75.6 million of pension plan assets to an insurance company, resulting in a **non-cash pretax settlement charge of $14.2 million**[67](index=67&type=chunk) - On May 29, 2022, the company entered into a merger agreement with CatchMark Timber Trust, Inc, with the merger expected to close in Q3 2022[72](index=72&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses lower lumber prices impacting results, the pending CatchMark merger, and strong liquidity [Business and Economic Trends](index=23&type=section&id=Business%20and%20Economic%20Trends) Favorable long-term housing fundamentals persist despite near-term inflation and interest rate headwinds - Despite recent moderation in housing starts, management believes **housing fundamentals remain favorable**, supporting demand for wood products[88](index=88&type=chunk) - **Inflation has impacted business costs**, especially for fuel, energy, and repairs, though this is partially offset by wood product prices[89](index=89&type=chunk) - The company expects to harvest approximately **6.1 million tons** in 2022 and ship approximately **1.0 billion board feet** of lumber[90](index=90&type=chunk)[92](index=92&type=chunk) [Consolidated Results](index=24&type=section&id=Consolidated%20Results) Consolidated revenue and operating income decreased year-over-year for Q2 and H1 2022 due to lower lumber prices **Consolidated Results Change (in thousands)** | Metric | Three Months Ended June 30, 2022 vs 2021 | Six Months Ended June 30, 2022 vs 2021 | | :--- | :--- | :--- | | **Revenues** | $(87,909) | $(30,752) | | **Operating Income** | $(92,496) | $(45,696) | | **Net Income** | $(67,683) | $(34,909) | | **Total Adjusted EBITDDA** | $(99,814) | $(49,238) | - The decrease in revenue was primarily due to **lower lumber prices and shipments**, partially offset by higher harvest volumes and increased real estate sales[98](index=98&type=chunk)[103](index=103&type=chunk) [Business Segment Results](index=26&type=section&id=Business%20Segment%20Results) Timberlands and Wood Products EBITDDA declined while the Real Estate segment saw significant growth in Q2 2022 **Adjusted EBITDDA by Segment - Q2 2022 vs Q2 2021 (in thousands)** | Segment | Q2 2022 | Q2 2021 | Change | | :--- | :--- | :--- | :--- | | **Timberlands** | $57,890 | $77,259 | $(19,369) | | **Wood Products** | $107,256 | $204,533 | $(97,277) | | **Real Estate** | $21,816 | $11,788 | $10,028 | - The Wood Products segment's performance was heavily impacted by **average lumber sales prices decreasing to $865 per MBF** in Q2 2022 from $1,185 per MBF in Q2 2021[119](index=119&type=chunk) - The Real Estate segment's strong performance was driven by a **10,700-acre rural land sale** in Minnesota and the sale of 45 residential lots at a higher average price[123](index=123&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, plans a special dividend, and is investing in a sawmill expansion and timberlands - The company had **cash and cash equivalents of $511.2 million** at June 30, 2022[127](index=127&type=chunk) - A project to expand and modernize the Waldo, Arkansas sawmill was announced, with an **expected cost of $131.0 million** and completion by the end of 2024[131](index=131&type=chunk) - During the first six months of 2022, the company acquired approximately **46,000 acres of timberland for an aggregate of $101 million**[133](index=133&type=chunk) - Due to strong financial performance, the company expects to pay a **special dividend** to stockholders in December 2022[129](index=129&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure, primarily from interest rates, has not materially changed since year-end 2021 - The company's exposures to market risk have **not changed materially** since December 31, 2021[153](index=153&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2022[154](index=154&type=chunk) - **No material changes** occurred in internal control over financial reporting during the six months ended June 30, 2022[156](index=156&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 reports no pending litigation expected to have a material adverse effect on its financial position - There is **no pending or threatened litigation** expected to have a material adverse effect on the company[158](index=158&type=chunk) [Risk Factors](index=37&type=section&id=ITEM%201A.%20Risk%20Factors) New material risks have been identified related to the pending merger with CatchMark Timber Trust - A new risk factor has been added concerning the **pending merger with CatchMark Timber Trust, Inc**[159](index=159&type=chunk) - Risks include **failure to complete the merger**, delays, substantial integration costs, and potential negative reactions from financial markets, customers, or suppliers[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - The merger **may not be accretive** and could cause dilution to cash available for distribution, potentially affecting the stock price negatively[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased $4.2 million of its common stock in Q2 2022 under its existing repurchase program **Issuer Purchases of Equity Securities (Q2 2022)** | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | **June 1 - June 30** | 94,566 | $43.92 | $55,343,272 | | **Q2 Total** | **94,566** | **$43.92** | **$55,343,272** | - As of June 30, 2022, the company had **$55.3 million remaining** under its $100.0 million share repurchase authorization from August 2018[170](index=170&type=chunk) [Exhibits](index=39&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements, certifications, and data files

Financial Data and Key Metrics Changes - The company reported total adjusted EBITDA of $175 million for Q2 2022, marking the second highest EBITDA for a second quarter in its history, although it was lower than the $246 million generated in Q1 2022 [5][21] - The decline in EBITDA was primarily attributed to lower lumber prices and harvest volumes [21] - The company had $511 million in cash and total liquidity of $810 million at the end of Q2 2022 [18][28] Business Line Data and Key Metrics Changes - Wood Products segment generated adjusted EBITDA of $107 million in Q2 2022, down from $150 million in Q1 2022, with average lumber price realizations decreasing by 20% [6][24] - Timberland segment's adjusted EBITDA decreased from $76 million in Q1 to $58 million in Q2, with sawlog harvest volumes affected by weather conditions [9][22] - Real Estate segment's adjusted EBITDA was $22 million in Q2, down from $30 million in Q1, influenced by the timing and mix of transactions [10][27] Market Data and Key Metrics Changes - Lumber prices moderated during Q2, with the random length framing lumber composite price decreasing by 33% compared to Q1 [6][24] - The company shipped 254 million board feet of lumber in Q2, an increase of 21 million board feet from Q1 [7][26] - The housing shortage in the U.S. is estimated to be around 4 million units, supporting long-term demand for lumber [11] Company Strategy and Development Direction - The company is focused on modernizing and expanding its Waldo, Arkansas sawmill with a $131 million investment, expected to increase annual capacity by 85 million board feet [14] - The CatchMark merger is anticipated to close late in Q3 2022, which is expected to provide strategic and financial benefits [15][16] - The company remains committed to sustainable dividend growth and plans to review its regular dividend in Q4 2022 [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while the long-term housing fundamentals remain favorable, recent factors such as higher mortgage rates and declining consumer confidence have moderated housing starts [12] - The company expects a modest decline in housing starts to around 1.5 million units in the near term, with a potential recovery by 2024 [70][71] - Management remains optimistic about lumber demand in the repair and remodel markets, supported by strong consumer balance sheets and job market conditions [13] Other Important Information - The company repurchased $5 million of its shares at approximately $44 per share under its share repurchase plan [18] - Capital expenditures for Q2 were $31 million, with plans for total capital expenditures in 2022 estimated between $85 to $90 million [28][32] - The company published its third Annual ESG report in May and is committed to enhancing its ESG initiatives [19] Q&A Session Summary Question: What is the expected decline in Northern sawlog prices for Q3? - Management indicated a potential decline of approximately 35% to 40% in indexed sawlog prices for Q3 due to the drop in lumber prices [39] Question: Can you provide details on the three bolt-on transactions? - The company is acquiring three bolt-on deals totaling about 46,000 acres in Mississippi and Arkansas for approximately $101 million, expected to generate about $7 million of incremental EBITDA [40] Question: What are the expectations for Southern harvest levels next year? - Management suggested that Southern harvest levels could exceed 6 million tons next year, especially with the CatchMark merger and the Ola mill coming back online [45] Question: How is the company addressing the impact of rising mortgage rates on demand? - Management noted that while there is a pullback in housing starts, demand remains solid in the home center channel, with order files stretching out a couple of weeks [48][73] Question: What is the outlook for the CatchMark merger? - The merger is on track to close late in Q3, with key milestones including finalizing the registration statement and conducting the shareholder vote [69] Question: How does the company plan to manage harvest volumes in a slowing housing market? - Management believes that production cuts will primarily occur in Canada and from lower imports, allowing Southern mills to maintain operations without significant harvest volume reductions [88]

Q2 2022 EARNINGS July 26, 2022 FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES FORWARD-LOOKING STATEMENTS 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; expectations about the Waldo, Arkansas sawmill expansion, ...