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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-32729 PotlatchDeltic Corporation (Exact name of registrant as specified in its charter) Delaware 82-0156045 (State or other jurisdi ...

Financial Data and Key Metrics Changes - Adjusted EBITDDA for Q2 2023 was $46 million, down from $58 million in Q1 2023, primarily due to lower seasonal harvest volumes and fewer rural acres sold [11][14] - The Wood Products segment reported adjusted EBITDDA of $12 million in Q2 2023, compared to breakeven results in Q1 2023, driven by higher lumber prices [14][22] - The Timberlands segment generated adjusted EBITDDA of $29 million in Q2 2023, down from $47 million in Q1 2023, impacted by seasonal low harvest volumes [15][21] Business Line Data and Key Metrics Changes - The company shipped 280 million board feet of lumber in Q2 2023, an increase of 18 million feet from Q1 2023 and 26 million feet from Q2 2022 [3][39] - The Real Estate segment had adjusted EBITDDA of $12 million in Q2 2023, down from $19 million in Q1 2023, due to a decline in rural sales [5][40] - Residential lot sales in the Chenal Valley community included 42 lots sold at an average price of $107,000 per lot, with commercial land sales averaging over $800,000 per acre [16][40] Market Data and Key Metrics Changes - The company noted a steady improvement in housing demand, with single-family housing starts above 900,000 units for two consecutive months [7] - Homebuilder sentiment has increased for seven consecutive months, reaching the highest level since June 2022, indicating positive tailwinds for the housing market [34] - The company expects U.S. housing starts to return to levels above the long-term average of 1.5 million units per year once mortgage rates ease [17] Company Strategy and Development Direction - The company is focused on modernizing and expanding its Waldo, Arkansas sawmill, which is expected to increase annual capacity by 85 million board feet by the end of 2024 [4] - PotlatchDeltic is exploring natural climate solution opportunities, including a carbon credit project expected to generate significant revenue starting in the first half of next year [6][106] - The company remains committed to a disciplined capital allocation strategy, including share repurchases when trading at a significant discount to estimated net asset value [8][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of new home demand and steady improvement in homebuilder sentiment, indicating a bullish outlook on long-term housing fundamentals [26][34] - The company anticipates total adjusted EBITDDA to be higher in Q3 2023 compared to Q2 2023, based on expectations for higher lumber prices and seasonal increases in harvest volumes [25][26] - Management highlighted the importance of lower interest rates for a full rebound in housing construction, as many homeowners are opting to remodel rather than move due to high mortgage rates [17][18] Other Important Information - The company reported $331 million in cash and $630 million in total liquidity at the end of Q2 2023, providing a solid platform for growth [19][41] - The company received $23 million in insurance recoveries related to the Ola sawmill fire, totaling $73 million since the claim was filed in 2021 [43] - Capital expenditures for Q2 2023 were $12 million, with plans to spend $135 million to $145 million for the full year, excluding potential acquisitions [24] Q&A Session Summary Question: Impact of weather on Timberlands in Q2 - Management acknowledged adverse weather but noted that planned harvest volumes were met, indicating effective management despite challenges [27][50] Question: Future of existing home sales with changing interest rates - Management expects existing home sales to pick up as rates decrease, but does not foresee a significant impact on new home sales due to ongoing housing shortages [52][72] Question: Southern pulpwood prices and market conditions - Management indicated that while pulpwood prices may be slightly down, long-term prospects remain positive due to increasing renewable energy investments [57][60] Question: Inventory levels of European lumber imports - Management noted a significant decrease in European lumber imports, suggesting that inventory levels along the East Coast have also declined [61] Question: Carbon credit project details - Management provided insights into a carbon credit project in the U.S. South, expecting to generate high-quality credits and significant revenue [104][106] Question: Timberland transaction activity - Management observed a quiet timberland M&A market, with high prices for available properties, and emphasized a focus on off-market deals [108][109]

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].