PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2024 Results

SPOKANE, Wash.--(BUSINESS WIRE)-- PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $5.2 million, or $0.07 per diluted share, on revenues of $258.1 million for the quarter ended December 31, 2024. Net loss was $0.1 million, or $0.00 per diluted share, on revenues of $254.5 million for the quarter ended December 31, 2023.

Net income for the full year 2024 was $21.9 million, or $0.28 per diluted share, on revenues of $1.1 billion. Net income for the full year 2023 was $62.1 million, or $0.77 per diluted share, on revenues of $1.0 billion. Excluding after tax special items consisting of gain on insurance recoveries and CatchMark merger-related expenses, adjusted net income was $35.0 million, or $0.43 per diluted share, for 2023.

2024 Highlights

• Generated Total Adjusted EBITDDA of $232.1 million and Total Adjusted EBITDDA margin of 22%
• Completed the Waldo, Arkansas sawmill expansion and modernization project
• Sold 34,100 acres of four-year average age Southern timberlands for $57 million or $1,700 per acre
• Acquired 16,000 acres of high-quality mature Southern timberlands for $31 million or $1,900 per acre
• Repurchased 847,000 shares for $35 million, or $41 per share
• Refinanced $176 million in debt during 2024 at below market rates
• Maintained strong liquidity of $451 million as of December 31, 2024

“I am pleased with our performance across all our business segments in 2024, especially against challenging market conditions,” said Eric Cremers, President and Chief Executive Officer. “Our results reflect the strong performance of our Real Estate business and the stability provided by our Timberland operations. Additionally, we successfully achieved several strategic initiatives for the year, highlighted by the completion of the expansion and modernization project at our Waldo, Arkansas sawmill. In 2024, our balanced and disciplined capital allocation strategy focused on returning $177 million in capital to our shareholders through our quarterly dividend and value-enhancing share repurchases, investing in high-return capital projects and making an accretive timberland acquisition. As we look ahead in 2025, while ongoing challenges to housing affordability continue to create headwinds, we are optimistic about the prospects of improving lumber markets and remain confident in the demand fundamentals that drive growth in our businesses. With a strong balance sheet and a continued focus on operational excellence, we believe we are well-positioned to drive sustainable, long-term value for our shareholders,” stated Mr. Cremers.

Financial Highlights

(in millions, except per share data - unaudited)		Q4 2024				Q3 2024				Q4 2023
Revenues		$	258.1			$	255.1			$	254.5
Net income (loss)		$	5.2			$	3.3			$	(0.1	)
Weighted average shares outstanding, diluted (in thousands)			78,608				79,277				79,630
Net income (loss) per diluted share		$	0.07			$	0.04			$	—
Adjusted Net Income (Loss)1		$	5.2			$	3.3			$	(0.1	)
Adjusted Net Income (Loss) Per Diluted Share1		$	0.07			$	0.04			$	—
Total Adjusted EBITDDA1		$	53.3			$	45.9			$	40.7
Total Adjusted EBITDDA Margin1			20.7	%			18.0	%			16.0	%
Dividends per share		$	0.45			$	0.45			$	0.45
Net cash from operations		$	45.4			$	26.5			$	41.8
Cash and cash equivalents		$	151.6			$	161.1			$	230.1

1 Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Diluted Share, Total Adjusted EBITDDA and Total Adjusted EBITDDA Margin are non-GAAP measures. Refer to "Non-GAAP Measures" and Non-GAAP Reconciliations below for more information and reconciliations to GAAP, where applicable.

Business Performance: Q4 2024 vs. Q3 2024

Timberlands

Fourth Quarter 2024 Highlights

• Timberlands Adjusted EBITDDA decreased $1.8 million from Q3 2024
• Northern harvest volumes decreased due to normal seasonality
• Northern sawlog prices increased primarily due to higher indexed sawlog prices
• Southern sawlog and pulpwood prices were relatively stable

(in millions - unaudited)		Q4 2024				Q3 2024				$ Change
Timberlands Revenues		$	95.3			$	105.1			$	(9.8	)
Timberlands Adjusted EBITDDA1		$	34.0			$	35.8			$	(1.8	)

1 Refer to Segment Information below for additional information.

Wood Products

Fourth Quarter 2024 Highlights

• Wood Products Adjusted EBITDDA increased $18.4 million from Q3 2024
• Average lumber prices increased 11% to $445 per thousand board feet (MBF) in Q4 2024
• Lower per-unit manufacturing costs primarily due to increased production at the Waldo sawmill following the restart in Q3 2024 related to the expansion and modernization project
• Log costs decreased primarily due to improved log recovery

(in millions - unaudited)		Q4 2024				Q3 2024				$ Change
Wood Products Revenues		$	160.3			$	139.4			$	20.9
Wood Products Adjusted EBITDDA1		$	8.8			$	(9.6	)		$	18.4

1 Refer to Segment Information below for additional information.

Real Estate

Fourth Quarter 2024 Highlights

• Real Estate Adjusted EBITDDA decreased $12.4 million from Q3 2024
• Sold 5,919 acres of rural land at an average price of $2,923 per acre
• Sold 45 residential lots at an average price of $101,400 per lot

(in millions - unaudited)		Q4 2024				Q3 2024				$ Change
Real Estate Revenues		$	25.1			$	38.7			$	(13.6	)
Real Estate Adjusted EBITDDA1		$	19.4			$	31.8			$	(12.4	)

1 Refer to Segment Information below for additional information.

Non-GAAP Measures

This press release includes certain financial measures that are not in accordance with accounting principles generally accepted in the United States (GAAP). Management believes that these non-GAAP measures, when read in conjunction with our GAAP financial statements, provide useful information to investors and other interested parties as described below. The presentation of these non-GAAP financial measures should be considered only as supplemental to, are not intended to be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may not be the same as or comparable to other similarly titled non-GAAP measures presented by other companies due to potential inconsistencies in methods of calculation.

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share are non-GAAP measures that represent GAAP net income (loss) and GAAP net income (loss) per diluted share before certain items, net of tax, that management believes impact the ability to compare the performance of our business, either period-over-period or with other businesses.

Total Adjusted EBITDDA and Total Adjusted EBITDDA Margin are non-GAAP measures that remove the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis and can be used to evaluate the operational performance of assets under management.

We define Total Adjusted EBITDDA Margin as Total Adjusted EBITDDA divided by Revenues.

Reconciliations of Total Adjusted EBITDDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Diluted Share to their most comparable GAAP measures are set forth in the accompanying “Non-GAAP Reconciliations” at the end of this release.

Conference Call Information

A live conference call and webcast will be held Tuesday, January 28, 2025, at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time). 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. Participants will be asked to provide conference I.D. number 7281983. Supplemental materials that will be discussed during the call are available on the above website.

A replay of the conference call will be available two hours following the call until February 4, 2025 by calling 1-800-770-2030 for U.S./Canada or 1-609-800-9909 for international callers. Callers must enter conference I.D. number 7281983 to access the replay.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) with ownership of 2.1 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to corporate responsibility. More information can be found at www.potlatchdeltic.com.

Forward-Looking Statements

This press release 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, expenses and liquidity; disciplined and opportunistic capital allocation strategy; long-term housing fundamentals; housing affordability; demand for lumber; and similar matters. Words such as “believe,” “continue,” “look ahead,” “ongoing,” “prospects,” and similar expressions are intended to identify such forward-looking statements. You should carefully read forward-looking statements, including statements that contain these words, because they discuss the future expectations or state other “forward-looking” information about PotlatchDeltic. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, many of which are beyond PotlatchDeltic’s control, such as changes in the U.S. housing market; changes in timberland values; changes in timber harvest levels on the company’s lands; changes in timber prices; changes in policy regarding governmental timber sales; availability of logging contractors and shipping capacity; changes in the United States and international economies and effects on our customers and suppliers; changes in interest rates; credit availability and homebuyers’ ability to qualify for mortgages; availability of labor and developable land; changes in the level of construction and remodeling activity; changes in foreign demand; changes in tariffs, quotas and trade agreements involving wood products; currency fluctuation; changes in demand for our products and real estate; changes in production and production capacity in the forest products industry; competitive pricing pressures for our products; unanticipated manufacturing disruptions; disruptions or inefficiencies in our supply chain and/or operations; changes in general and industry-specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; fires at our facilities and on our timberland and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; share price; our ability to achieve the expected returns on our capital investments in our facilities; our ability to participate in the natural climate solutions and forest carbon sequestration markets; the successful execution of the company’s strategic plans and the other factors described in PotlatchDeltic’s Annual Report on Form 10-K and in the company’s other filings with the SEC. PotlatchDeltic assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, all of which speak only as of the date hereof.

PotlatchDeltic Corporation
Condensed Consolidated Statements of Operations
Unaudited
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(in thousands, except per share amounts)		2024				2024				2023				2024				2023
Revenues		$	258,147			$	255,131			$	254,503			$	1,062,076			$	1,024,075
Costs and expenses:
Cost of goods sold			223,483				227,556				233,862				945,672				899,578
Selling, general and administrative expenses			21,330				20,403				20,612				83,212				75,730
CatchMark merger-related expenses			—				—				—				—				2,453
Gain on fire damage			—				—				—				—				(39,436	)
			244,813				247,959				254,474				1,028,884				938,325
Operating income			13,334				7,172				29				33,192				85,750
Interest expense, net			(10,874	)			(9,635	)			(8,435	)			(28,923	)			(24,218	)
Non-operating pension and other postretirement employee benefits			201				200				(229	)			803				(914	)
Other			1,767				1,516				629				3,115				1,267
Income (loss) before income taxes			4,428				(747	)			(8,006	)			8,187				61,885
Income taxes			766				4,056				7,866				13,689				216
Net income (loss)		$	5,194			$	3,309			$	(140	)		$	21,876			$	62,101
Net income (loss) per share:
Basic		$	0.07			$	0.04			$	—			$	0.28			$	0.78
Diluted		$	0.07			$	0.04			$	—			$	0.28			$	0.77
Dividends per share		$	0.45			$	0.45			$	0.45			$	1.80			$	1.80
Weighted-average shares outstanding (in thousands):
Basic			78,458				79,173				79,630				79,236				79,985
Diluted			78,608				79,277				79,630				79,339				80,167

PotlatchDeltic Corporation
Condensed Consolidated Balance Sheets
Unaudited
		At December 31,
(in thousands, except per share amounts)		2024				2023
ASSETS
Current assets:
Cash and cash equivalents		$	151,551			$	230,118
Customer receivables, net			23,358				21,892
Inventories, net			82,926				78,665
Other current assets			41,295				46,258
Total current assets			299,130				376,933
Property, plant and equipment, net			408,913				372,832
Investment in real estate held for development and sale			50,809				56,321
Timber and timberlands, net			2,357,151				2,440,398
Intangible assets, net			13,861				15,640
Other long-term assets			175,579				169,132
Total assets		$	3,305,443			$	3,431,256
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	95,628			$	82,383
Current portion of long-term debt			99,552				175,615
Current portion of pension and other postretirement employee benefits			5,098				4,535
Total current liabilities			200,278				262,533
Long-term debt			935,100				858,113
Pension and other postretirement employee benefits			76,272				67,856
Deferred tax liabilities, net			21,123				36,641
Other long-term obligations			35,000				35,015
Total liabilities			1,267,773				1,260,158
Commitments and contingencies
Stockholders’ equity:
Common stock, $1 par value, 200,000 shares authorized and 78,684 and 79,365 shares issued and outstanding			78,684				79,365
Additional paid-in capital			2,315,176				2,303,992
Accumulated deficit			(470,331	)			(315,291	)
Accumulated other comprehensive income			114,141				103,032
Total stockholders’ equity			2,037,670				2,171,098
Total liabilities and stockholders' equity		$	3,305,443			$	3,431,256

PotlatchDeltic Corporation
Condensed Consolidated Statements of Cash Flows
Unaudited
		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(in thousands)			2024				2024				2023				2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$	5,194			$	3,309			$	(140	)		$	21,876			$	62,101
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation, depletion and amortization			26,729				25,893				30,827				113,098				121,154
Basis of real estate sold			13,348				12,905				9,768				86,870				31,392
Change in deferred taxes			(880	)			(3,057	)			(3,702	)			(12,776	)			(9,269	)
Pension and other postretirement benefits			1,144				1,143				1,613				4,575				6,446
Equity-based compensation expense			2,542				2,946				2,643				11,010				9,115
Gain on fire damage			—				—				—				—				(39,436	)
Amortization related to redesignated forward-starting interest rate swaps			2,806				2,674				2,624				10,766				10,329
Interest received under swaps with other-than-insignificant financing element			(7,170	)			(7,536	)			(6,995	)			(29,673	)			(25,646	)
Other, net			(271	)			(1,033	)			(1,978	)			(1,278	)			(2,447	)
Change in working capital and operating-related activities, net			6,011				(3,040	)			(2,081	)			(1,025	)			(26,188	)
Real estate development expenditures			(2,783	)			(2,583	)			(4,261	)			(8,088	)			(11,504	)
Funding of pension and other postretirement employee benefits			(1,262	)			(5,168	)			(1,160	)			(8,565	)			(3,336	)
Proceeds from insurance recoveries			—				—				14,645				1,680				36,400
Net cash from operating activities			45,408				26,453				41,803				188,470				159,111
CASH FLOWS FROM INVESTING ACTIVITIES
Property, plant and equipment additions			(11,713	)			(25,575	)			(67,848	)			(63,891	)			(95,916	)
Timberlands reforestation and roads			(5,474	)			(6,476	)			(6,850	)			(24,764	)			(23,863	)
Acquisition of timber and timberlands			(38	)			(822	)			(158	)			(32,341	)			(1,834	)
Proceeds from property insurance			—				—				—				—				1,356
Interest received under swaps with other-than-insignificant financing element			6,700				7,010				6,478				27,634				23,757
Other, net			548				134				496				1,300				1,196
Net cash from investing activities			(9,977	)			(25,729	)			(67,882	)			(92,062	)			(95,304	)
CASH FLOWS FROM FINANCING ACTIVITIES
Distributions to common stockholders			(35,408	)			(35,486	)			(35,715	)			(142,350	)			(143,595	)
Repurchase of common stock			(7,604	)			(3,508	)			(13,605	)			(35,017	)			(25,011	)
Proceeds from long-term debt			176,000				—				40,000				176,000				40,000
Repayment of long-term debt			(175,735	)			—				(40,000	)			(175,735	)			(40,000	)
Other, net			(2,090	)			(943	)			(789	)			(5,269	)			(3,104	)
Net cash from financing activities			(44,837	)			(39,937	)			(50,109	)			(182,371	)			(171,710	)
Change in cash, cash equivalents and restricted cash			(9,406	)			(39,213	)			(76,188	)			(85,963	)			(107,903	)
Cash, cash equivalents and restricted cash at beginning of period			161,131				200,344				313,876				237,688				345,591
Cash, cash equivalents and restricted cash at end of period1		$	151,725			$	161,131			$	237,688			$	151,725			$	237,688

1

Includes $0.2 million, $0.0 million, and $7.6 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively, that were or are intended to be reinvested in timber and timberlands and classified as restricted cash in Other current and long-term assets in the Condensed Consolidated Balance Sheets.

PotlatchDeltic Corporation
Segment Information
Unaudited
		Three months ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
(in thousands)			2024				2024				2023				2024				2023
Revenues
Timberlands		$	95,285			$	105,132			$	97,414			$	392,169			$	411,077
Wood Products			160,335				139,412				150,100				601,924				635,672
Real Estate			25,089				38,701				27,909				170,629				87,988
			280,709				283,245				275,423				1,164,722				1,134,737
Intersegment Timberlands revenues			(22,562	)			(28,114	)			(20,920	)			(102,646	)			(110,656	)
Other intersegment revenues			—				—				—				—				(6	)
Consolidated revenues		$	258,147			$	255,131			$	254,503			$	1,062,076			$	1,024,075
Adjusted EBITDDA1
Timberlands		$	34,033			$	35,824			$	33,304			$	138,729			$	151,321
Wood Products			8,871				(9,581	)			(6,488	)			(7,654	)			20,487
Real Estate			19,364				31,861				21,908				147,021				67,775
Corporate			(12,441	)			(12,203	)			(12,448	)			(49,065	)			(45,406	)
Eliminations and adjustments			3,476				1				4,458				3,069				6,057
Total Adjusted EBITDDA			53,303				45,902				40,734				232,100				200,234
Interest expense, net2			(10,874	)			(9,635	)			(8,435	)			(28,923	)			(24,218	)
Depreciation, depletion and amortization			(26,347	)			(25,487	)			(30,419	)			(111,497	)			(119,518	)
Basis of real estate sold			(13,348	)			(12,905	)			(9,768	)			(86,870	)			(31,392	)
CatchMark merger-related expenses			—				—				—				—				(2,453	)
Gain on fire damage			—				—				—				—				39,436
Non-operating pension and other postretirement employee benefits			201				200				(229	)			803				(914	)
Loss on disposal of assets			(274	)			(338	)			(518	)			(541	)			(557	)
Other			1,767				1,516				629				3,115				1,267
Income (loss) before income taxes		$	4,428			$	(747	)		$	(8,006	)		$	8,187			$	61,885
Depreciation, depletion and amortization
Timberlands		$	16,562			$	16,778			$	19,386			$	67,755			$	75,009
Wood Products			9,447				8,395				10,783				42,585				43,506
Real Estate			137				138				129				549				526
Corporate			201				176				121				608				477
			26,347				25,487				30,419				111,497				119,518
Bond discounts and deferred loan fees2			382				406				408				1,601				1,636
Total depreciation, depletion and amortization		$	26,729			$	25,893			$	30,827			$	113,098			$	121,154
Basis of real estate sold
Real Estate		$	13,348			$	12,908			$	9,802			$	86,878			$	31,431
Eliminations and adjustments			—				(3	)			(34	)			(8	)			(39	)
Total basis of real estate sold		$	13,348			$	12,905			$	9,768			$	86,870			$	31,392

1	Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA in Non-GAAP Reconciliations.
2	Bond discounts, deferred loan fees, non-cash amortization related to redesignated forward swaps, and interest income are included in interest expense, net in the Condensed Consolidated Statements of Operations.

PotlatchDeltic Corporation
Non-GAAP Reconciliations
Unaudited
		Three months ended												Year ended
		December 31,				September 30,				December 31,				December 31,
(in thousands, except per share amounts)			2024				2024				2023				2024				2023
Total Adjusted EBITDDA1
Net income (loss) (GAAP)		$	5,194			$	3,309			$	(140	)		$	21,876			$	62,101
Interest, net			10,874				9,635				8,435				28,923				24,218
Income taxes			(766	)			(4,056	)			(7,866	)			(13,689	)			(216	)
Depreciation, depletion and amortization			26,347				25,487				30,419				111,497				119,518
Basis of real estate sold			13,348				12,905				9,768				86,870				31,392
CatchMark merger-related expenses			—				—				—				—				2,453
Gain on fire damage			—				—				—				—				(39,436	)
Non-operating pension and other postretirement benefit costs			(201	)			(200	)			229				(803	)			914
Loss on disposal of assets			274				338				518				541				557
Other			(1,767	)			(1,516	)			(629	)			(3,115	)			(1,267	)
Total Adjusted EBITDDA		$	53,303			$	45,902			$	40,734			$	232,100			$	200,234
Adjusted Net Income (Loss)1
Net income (loss) (GAAP)		$	5,194			$	3,309			$	(140	)		$	21,876			$	62,101
Special items after tax:
CatchMark merger-related expenses			—				—				—				—				2,453
Gain on fire damage			—				—				—				—				(29,577	)
Adjusted Net Income (Loss)		$	5,194			$	3,309			$	(140	)		$	21,876			$	34,977
Adjusted Net Income (Loss) Per Diluted Share1
Net income (loss) per diluted share (GAAP)		$	0.07			$	0.04			$	—			$	0.28			$	0.77
Special items after tax:
CatchMark merger-related expenses			—				—				—				—				0.03
Gain on fire damage			—				—				—				—				(0.37	)
Adjusted Net Income (Loss) Per Diluted Share		$	0.07			$	0.04			$	—			$	0.28			$	0.43

1	See "Non-GAAP Measures" for further details on management's use of these measures.

 

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Source: PotlatchDeltic Corporation