PotlatchDeltic(US:PCH)2025-02-13 19:30Timberland Operations - PotlatchDeltic Corporation owns 2.1 million acres of timberland across nine states, with a significant portion of its operations focused on timberland management and wood products manufacturing[14]. - The Timberlands segment generated approximately 26% of its revenues from internal log sales to Wood Products facilities in 2024, indicating a strong integration between segments[21]. - Approximately 29% of the total harvest volume was sold under long-term log supply agreements with third parties in 2024, with expectations to maintain similar percentages in 2025[22]. - The estimated volume of current standing merchantable timber inventory is updated annually, reflecting increases from young growth and decreases from harvests, with significant reliance on statistical methods for estimation[26]. - Estimated standing timber inventory as of December 31, 2024, is 111.3 million tons, a decrease of 2.1 million tons (1.85%) from 2023[27]. - Total timber harvested in 2024 was 7.636 million tons, with the Northern region contributing 1.467 million tons and the Southern region contributing 6.169 million tons[29]. - The projected total harvest for 2025 is approximately 7.4 million tons, based on constant timberland holdings and market conditions[29]. - The Timberlands segment's revenues are influenced by domestic production of wood-based building products and the overall health of the U.S. housing market[17]. - The company has identified approximately 135,000 acres of non-core timberland real estate intended for sale over time, indicating a strategy to optimize asset value[18]. Wood Products Segment - The company ranks as a top-10 softwood lumber producer in the U.S. with a capacity of approximately 1.2 billion board feet and an industrial-grade plywood mill with 150 million square feet of capacity[18]. - The Wood Products segment has a capacity of 1.2 billion board feet (MMBF) for softwood lumber and 150 million square feet (MMSF) for plywood[31][34]. - Actual sawmill production for 2024 was 1.120 billion board feet, indicating operational efficiency[34]. - In 2024, 100% of timber consumption at Wood Products facilities was SFI Fiber Sourcing certified, reflecting commitment to sustainable sourcing[38]. - Wood Products segment revenues also decreased to $601,924 in 2024 from $635,672 in 2023, a decline of 5.3%[388]. Financial Performance - PotlatchDeltic Corporation reported revenues of $1,062,076,000 for the year ended December 31, 2024, a 3.7% increase from $1,024,075,000 in 2023[314]. - Operating income decreased significantly to $33,192,000 in 2024, compared to $85,750,000 in 2023, marking a decline of 61.2%[314]. - Net income for 2024 was $21,876,000, down from $62,101,000 in 2023, representing a decrease of 64.8%[314]. - The company’s total assets decreased to $3,305,443,000 in 2024 from $3,431,256,000 in 2023, a decline of 3.7%[318]. - Comprehensive income for 2024 was $32,985,000, down from $67,481,000 in 2023, a decrease of 51.1%[316]. - Cash flows from operating activities increased to $188,470,000 in 2024, up 18.4% from $159,111,000 in 2023, but down from $491,901,000 in 2022[320]. Environmental and Sustainability Initiatives - The company is committed to corporate responsibility, focusing on environmental stewardship and sustainable management of its timberlands[18]. - At the end of 2023, the company's forests stored approximately 487 million metric tons of Carbon Dioxide Equivalent (CO2e), with about 93 million metric tons of CO2e in merchantable above-ground portions[65]. - In 2023, total net above-ground carbon removal was approximately 6.4 million metric tons of CO2e, including harvest and other inventory adjustments[67]. - The company aims to achieve a 42% reduction in Scope 1 and Scope 2 GHG emissions by 2030, based on a 2021 baseline[69]. - The company has established GHG reduction targets, including a goal to achieve net-zero GHG emissions by 2050[69]. - Timberland acreage impacted by wildfires has increased since 2000, prompting the company to implement practices to mitigate wildfire risk[55]. Corporate Governance and Workforce - The board of directors consists of nine members, with seven being independent and three being women, including one who is ethnically diverse[81]. - The company employs 1,383 team members, with hourly workers representing approximately 73% of the total workforce[73]. - Women represent 33% of the salaried workforce, 14% of the hourly workforce, and 19% of the total workforce as of December 31, 2024[78]. - The company has implemented comprehensive safety programs, including safety audits and training, to prioritize employee health and safety[74]. Risk Management and Compliance - The company faces various risks, including changes in timber prices, economic conditions, and environmental factors that could impact its operations and financial performance[10]. - The company utilizes an Enterprise Risk Management (ERM) framework to identify, assess, and mitigate significant risks, including environmental and social governance topics[87]. - The company conducts regular internal audits to ensure compliance with environmental, safety, financial, and disclosure regulations[88]. - The company is subject to various federal and state laws and regulations affecting its manufacturing operations, including air emissions and water quality standards[96]. - The company anticipates that increasingly strict environmental laws may lead to additional operational restrictions and increased costs[100]. Real Estate Segment - The company develops about 130 residential lots annually in the Chenal Valley area, with approximately 1,200 potential residential lots available for future development[46]. - The Real Estate segment includes the sale of non-strategic land holdings and development projects, enhancing the company's asset utilization[386]. - Real Estate segment revenues increased significantly to $170,629 in 2024 from $87,988 in 2023, a growth of 94%[388]. Mergers and Acquisitions - The company issued $176,000,000 in long-term debt in 2024, significantly higher than $40,000,000 in 2023[320]. - The CatchMark merger resulted in an allocation of $782.3 million to timber and timberlands, $3.0 million to intangible assets, and $32.0 million to other assets[333]. - The company assumed $323.1 million of liabilities, including $300.0 million of outstanding long-term debt, in the CatchMark merger[333].