Attached files
| file | filename |
|---|---|
| 8-K - 8-K - POTLATCHDELTIC CORP | pch-8k_20180730.htm |
Exhibit 99.1
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News Release
For immediate release:
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Contact: |
(Investors) |
(Media) |
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Jerry Richards |
Mark Benson |
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509.835.1521 |
509.835.1513 |
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PotlatchDeltic Corporation Reports Second Quarter 2018 Results
SPOKANE, Wash., July 30, 2018 (GLOBE NEWSWIRE) – PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of $46.1 million, or $0.73 per diluted share, on revenues of $268.2 million for the quarter ended June 30, 2018.
Second Quarter 2018 Highlights
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• |
Consolidated Adjusted EBITDDA of $94.2 million and Adjusted EBITDDA margin of 35.1% |
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• |
Wood Products Adjusted EBITDDA of $51.5 million and Wood Products Adjusted EBITDDA margin of 26.6% |
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• |
On track with $50 million in after-tax annual cash synergy run rate in year two after the merger with Deltic Timber; achieved $40 million annual run rate as of June 30, 2018 |
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• |
Standard and Poor’s Global Rating (S&P) upgraded PotlatchDeltic to BBB- (investment grade); PotlatchDeltic is investment grade rated by both S&P and Moody’s Investor Services |
“Our merger with Deltic Timber was perfectly timed as the combined set of assets benefitted from the historic run in lumber prices in the second quarter,” said Mike Covey, chairman and chief executive officer. “This was reflected by the significant increase in Adjusted EBITDDA for Wood Products and the total company. Lumber prices are pulling back from an all-time peak but are still robust. This is shaping up to be an extremely strong year for PotlatchDeltic by many measures,” stated Mr. Covey.
Financial Highlights
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($ in millions, except per share data) |
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Q2 2018 |
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Q1 2018 |
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Q2 2017 |
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|||
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Revenues |
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$ |
268.2 |
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$ |
199.9 |
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$ |
163.2 |
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Net income |
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$ |
46.1 |
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$ |
14.6 |
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$ |
24.3 |
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Weighted average shares outstanding, diluted (in thousands) |
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63,316 |
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50,786 |
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41,219 |
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Net income per diluted share |
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$ |
0.73 |
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$ |
0.29 |
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$ |
0.59 |
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Adjusted net income |
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$ |
47.2 |
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$ |
35.2 |
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$ |
22.3 |
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Adjusted net income per diluted share |
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$ |
0.75 |
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$ |
0.69 |
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$ |
0.54 |
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Adjusted EBITDDA |
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$ |
94.2 |
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$ |
64.7 |
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$ |
46.1 |
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Distribution per share |
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$ |
0.40 |
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$ |
0.40 |
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$ |
0.375 |
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Net cash from operations |
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$ |
60.5 |
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$ |
34.9 |
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$ |
37.5 |
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Cash and cash equivalents |
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$ |
125.7 |
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$ |
102.3 |
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$ |
110.3 |
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1
Consolidated results include Deltic Timber beginning February 21, 2018. The financial statements included within this release do not include Deltic Timber’s financial results for any period prior to the merger date.
Business Performance: Q2 2018 vs. Q1 2018
Resource
Second Quarter 2018 Highlights
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• |
Northern sawlog prices increased 19% as indexed volumes benefitted from higher lumber prices and seasonally lighter logs |
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• |
Northern sawlog harvest volume declined seasonally resulting from spring break up |
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• |
Southern sawlog volumes increased 66%; this was the first time Deltic operations are included for a full quarter |
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• |
Average Southern sawlog prices increased 7% due primarily to higher mix of larger diameter logs from Deltic timberlands |
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• |
Forestry costs increased seasonally |
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($ in millions) |
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Q2 2018 |
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Q1 2018 |
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$ Change |
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Segment Revenues |
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$ |
92.5 |
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$ |
76.5 |
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$ |
16.0 |
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Adjusted EBITDDA |
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$ |
43.7 |
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$ |
37.7 |
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$ |
6.0 |
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Wood Products
Second Quarter 2018 Highlights
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• |
Lumber pricing increased 11% with strong markets supported by improving housing demand and the ongoing effect of transportation disruptions |
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Lumber shipments increased nearly 27% due to solid demand and a full quarter of Deltic operations |
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• |
Adjusted EBITDDA benefitted from inclusion of El Dorado MDF for a full quarter and higher industrial plywood realizations |
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($ in millions) |
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Q2 2018 |
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Q1 2018 |
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$ Change |
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Segment Revenues |
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$ |
193.6 |
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$ |
139.8 |
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$ |
53.8 |
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Adjusted EBITDDA |
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$ |
51.5 |
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$ |
29.0 |
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$ |
22.5 |
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Real Estate
Second Quarter 2018 Highlights
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Sold 11,571 acres of rural real estate; average pricing of $1,095 per acre; 70% of acres were nonstrategic timberlands at $899 per acre |
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Sold 13 residential lots in Chenal Valley; average pricing of $74,000 per lot due to mix |
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No commercial acreage sales in Chenal Valley; several indications of interest |
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($ in millions) |
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Q2 2018 |
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Q1 2018 |
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$ Change |
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Segment Revenues |
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$ |
16.4 |
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$ |
10.6 |
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$ |
5.8 |
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Adjusted EBITDDA |
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$ |
12.3 |
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$ |
8.0 |
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$ |
4.3 |
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2
This press release includes certain non-GAAP financial measures, which management believes are useful to investors, securities analysts and other interested parties. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP.
Management uses Adjusted EBITDDA to evaluate the performance of the company. This is a non-GAAP measure that represents EBITDDA before certain items that impact comparison of the performance of our business either period-over-period or with other businesses.
Adjusted Net Income and Adjusted Net Income Per Diluted Share are non-GAAP measures that represent GAAP net income and GAAP net earnings per diluted share before certain items that impact the ability of investors, securities analysts and other interested parties to compare the performance of our business, either period-over-period or with other businesses.
Reconciliations to GAAP are set forth in the accompanying schedules.
Conference Call Information
A live conference call and webcast will be held Tuesday, July 31, 2018, 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 Investor Resources link or by conference call at 1-866-393-8403 for U.S./Canada and 1-706-679-7929 for international callers. Participants will be asked to provide conference I.D. number 6696837. Supplemental materials that will be discussed during the call are available on the website.
A replay of the conference call will be available two hours following the call until August 7, 2018 by calling
1-800-585-8367 for U.S./Canada or 1-404-537-3406 for international callers. Callers must enter conference I.D. number 6696837 to access the replay.
About PotlatchDeltic
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a medium density fiberboard plant, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is dedicated to long-term stewardship and sustainable management of its timber resources. More information can be found at www.potlatchdeltic.com.
This press release contains certain forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the U.S. housing market; strong repair and remodel market; lumber demand and pricing; the direction of our business markets, business conditions, pricing; earnings in our Resource, Wood Products and Real Estate businesses in the third quarter 2018; the expected synergies and operational efficiencies from the Deltic merger; the estimated distribution of Deltic’s accumulated earnings and profits; and the integration of Deltic’s operations. 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 Potlatch. 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, including 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; changes in interest rates; changes in the level of construction activity; changes in Asia demand; changes in tariffs, quotas and trade agreements involving wood products; currency fluctuation; changes in demand for our products; changes in production and production capacity in the forest products industry; competitive pricing pressures for our products; unanticipated manufacturing disruptions; changes in general and industry-
3
specific environmental laws and regulations; unforeseen environmental liabilities or expenditures; weather conditions; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; share price; the successful execution of the company’s strategic plans; the company’s ability to meet expectations; the possibility that any of the anticipated benefits of the merger will not be realized or will not be realized within the expected time period; the risk that integration of Deltic’s operations with those of Potlatch will be materially delayed or will be more costly or difficult than expected; the effect of the merger on customer relationships and operating results (including, without limitation, difficulties in maintaining relationships with employees or customers); the estimation of Deltic’s accumulated earnings and profits is preliminary and may change with further due diligence; and the other factors described in Potlatch’s Annual Report on Form 10-K and in the company’s other filings with the SEC. Potlatch 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.
4
PotlatchDeltic Corporation
Condensed Consolidated Statements of Income
Unaudited
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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(Dollars in thousands, except per share amounts) |
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2018 |
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2018 |
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2017 |
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2018 |
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2017 |
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Revenues |
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$ |
268,233 |
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$ |
199,897 |
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$ |
163,229 |
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$ |
468,130 |
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$ |
312,910 |
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Costs and expenses: |
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Cost of goods sold1 |
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180,906 |
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139,155 |
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111,356 |
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320,061 |
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223,854 |
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Selling, general and administrative expenses1 |
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16,892 |
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13,656 |
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13,079 |
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30,548 |
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24,447 |
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Deltic merger-related costs |
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1,018 |
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19,255 |
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— |
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20,273 |
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— |
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Gain on lumber price swap |
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— |
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— |
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(3,265 |
) |
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— |
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(3,265 |
) |
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|
198,816 |
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172,066 |
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121,170 |
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370,882 |
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245,036 |
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Operating income |
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69,417 |
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|
27,831 |
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42,059 |
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|
97,248 |
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67,874 |
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Interest expense, net |
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(9,356 |
) |
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(5,660 |
) |
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(7,348 |
) |
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(15,016 |
) |
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(12,318 |
) |
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Non-operating pension and other postretirement costs1 |
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(1,908 |
) |
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(1,857 |
) |
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(1,286 |
) |
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(3,765 |
) |
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(3,192 |
) |
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Income before income taxes |
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58,153 |
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20,314 |
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33,425 |
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78,467 |
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52,364 |
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Income taxes |
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(12,005 |
) |
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(5,717 |
) |
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(9,181 |
) |
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(17,722 |
) |
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|
(11,199 |
) |
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Net income |
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$ |
46,148 |
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$ |
14,597 |
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$ |
24,244 |
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$ |
60,745 |
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$ |
41,165 |
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Net income per share: |
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Basic |
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$ |
0.73 |
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$ |
0.29 |
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$ |
0.59 |
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$ |
1.07 |
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$ |
1.01 |
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Diluted |
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$ |
0.73 |
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$ |
0.29 |
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$ |
0.59 |
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$ |
1.06 |
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$ |
1.00 |
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Dividends per share |
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$ |
0.40 |
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$ |
0.40 |
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$ |
0.375 |
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$ |
0.80 |
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$ |
0.75 |
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Weighted-average shares outstanding (in thousands): |
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|||
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Basic |
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62,980 |
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50,425 |
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40,823 |
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|
56,739 |
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|
40,802 |
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Diluted |
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|
63,316 |
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|
50,786 |
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|
41,219 |
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|
57,128 |
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|
41,144 |
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1 |
We adopted ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, retrospectively on January 1, 2018 and have reclassified non-service costs from operating expenses to non-operating costs. There was no change to income before income taxes. |
5
PotlatchDeltic Corporation
Condensed Consolidated Balance Sheets
Unaudited
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(Dollars in thousands) |
|
June 30, 2018 |
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December 31, 2017 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
125,719 |
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$ |
120,457 |
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Customer receivables, net |
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43,322 |
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|
11,240 |
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Inventories |
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63,384 |
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|
50,132 |
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Other current assets |
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18,025 |
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|
11,478 |
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Total current assets |
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250,450 |
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|
193,307 |
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Property, plant and equipment, net |
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|
339,704 |
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|
77,229 |
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Investment in real estate held for development and sale |
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|
75,578 |
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|
— |
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Timber and timberlands, net |
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1,691,785 |
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|
654,476 |
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Deferred tax assets, net |
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— |
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|
19,796 |
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Trade name and customer relationships intangibles |
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|
19,344 |
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— |
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Other long-term assets |
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|
20,288 |
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|
|
8,271 |
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Total assets |
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$ |
2,397,149 |
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$ |
953,079 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
71,852 |
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$ |
55,201 |
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Current portion of long-term debt |
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|
— |
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|
14,263 |
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|
Current portion of pension and other postretirement employee benefits |
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|
6,088 |
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|
|
5,334 |
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Total current liabilities |
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|
77,940 |
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|
|
74,798 |
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Long-term debt |
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|
783,436 |
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|
559,056 |
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Pension and other postretirement employee benefits |
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|
132,677 |
|
|
|
103,524 |
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|
Deferred tax liabilities, net |
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|
27,040 |
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|
|
— |
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|
Other long-term obligations |
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|
15,130 |
|
|
|
15,159 |
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|
Total liabilities |
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|
1,036,223 |
|
|
|
752,537 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
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|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock, $1 par value |
|
|
62,754 |
|
|
|
40,612 |
|
|
Additional paid-in capital |
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|
1,482,048 |
|
|
|
359,144 |
|
|
Accumulated deficit |
|
|
(69,426 |
) |
|
|
(104,363 |
) |
|
Accumulated other comprehensive loss |
|
|
(114,450 |
) |
|
|
(94,851 |
) |
|
Total stockholders’ equity |
|
|
1,360,926 |
|
|
|
200,542 |
|
|
Total liabilities and stockholders' equity |
|
$ |
2,397,149 |
|
|
$ |
953,079 |
|
|
|
|
|
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6
PotlatchDeltic Corporation
Condensed Consolidated Statements of Cash Flows
Unaudited
|
|
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||||||
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(Dollars in thousands) |
|
June 30, 2018 |
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|
March 31, 2018 |
|
|
June 30, 2017 |
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|
June 30, 2018 |
|
|
June 30, 2017 |
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|||||
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CASH FLOWS FROM OPERATING ACTIVITIES |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
46,148 |
|
|
$ |
14,597 |
|
|
$ |
24,244 |
|
|
$ |
60,745 |
|
|
$ |
41,165 |
|
|
Adjustments to reconcile net income to net cash from operating activities: |
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|
|
|
|
|
|
|
|
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|
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|
|||||||
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Depreciation, depletion and amortization |
|
|
21,605 |
|
|
|
12,635 |
|
|
|
6,641 |
|
|
|
34,240 |
|
|
|
13,343 |
|
|
Basis of real estate sold |
|
|
2,820 |
|
|
|
3,605 |
|
|
|
982 |
|
|
|
6,425 |
|
|
|
5,772 |
|
|
Change in deferred taxes |
|
|
3,856 |
|
|
|
(1,058 |
) |
|
|
1,595 |
|
|
|
2,798 |
|
|
|
1,244 |
|
|
Pension and other postretirement employee benefits |
|
|
4,185 |
|
|
|
3,814 |
|
|
|
3,283 |
|
|
|
7,999 |
|
|
|
6,575 |
|
|
Equity-based compensation expense |
|
|
1,795 |
|
|
|
3,094 |
|
|
|
1,191 |
|
|
|
4,889 |
|
|
|
2,348 |
|
|
Other, net |
|
|
(129 |
) |
|
|
(542 |
) |
|
|
(455 |
) |
|
|
(671 |
) |
|
|
(983 |
) |
|
Change in working capital and operating-related activities, net |
|
|
(18,782 |
) |
|
|
7,475 |
|
|
|
(47 |
) |
|
|
(11,307 |
) |
|
|
9,919 |
|
|
Real estate development expenditures |
|
|
(1,057 |
) |
|
|
(608 |
) |
|
|
— |
|
|
|
(1,665 |
) |
|
|
— |
|
|
Funding of qualified pension plans |
|
|
— |
|
|
|
(8,098 |
) |
|
|
— |
|
|
|
(8,098 |
) |
|
|
— |
|
|
Net cash from operating activities |
|
|
60,441 |
|
|
|
34,914 |
|
|
|
37,434 |
|
|
|
95,355 |
|
|
|
79,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(7,741 |
) |
|
|
(3,632 |
) |
|
|
(2,303 |
) |
|
|
(11,373 |
) |
|
|
(5,939 |
) |
|
Timberlands reforestation and roads |
|
|
(4,259 |
) |
|
|
(2,860 |
) |
|
|
(3,147 |
) |
|
|
(7,119 |
) |
|
|
(5,792 |
) |
|
Acquisition of timber and timberlands |
|
|
(163 |
) |
|
|
— |
|
|
|
(3,132 |
) |
|
|
(163 |
) |
|
|
(3,132 |
) |
|
Other, net |
|
|
299 |
|
|
|
232 |
|
|
|
28 |
|
|
|
531 |
|
|
|
(74 |
) |
|
Cash and cash equivalents acquired in Deltic merger |
|
|
— |
|
|
|
3,419 |
|
|
|
— |
|
|
|
3,419 |
|
|
|
— |
|
|
Net cash from investing activities |
|
|
(11,864 |
) |
|
|
(2,841 |
) |
|
|
(8,554 |
) |
|
|
(14,705 |
) |
|
|
(14,937 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to common stockholders |
|
|
(25,101 |
) |
|
|
(25,102 |
) |
|
|
(15,229 |
) |
|
|
(50,203 |
) |
|
|
(30,457 |
) |
|
Proceeds from Potlatch revolving line of credit |
|
|
— |
|
|
|
100,000 |
|
|
|
— |
|
|
|
100,000 |
|
|
|
— |
|
|
Repayment of Potlatch revolving line of credit |
|
|
— |
|
|
|
(100,000 |
) |
|
|
— |
|
|
|
(100,000 |
) |
|
|
— |
|
|
Revolving line of credit repayment attributable to Deltic |
|
|
— |
|
|
|
(106,000 |
) |
|
|
— |
|
|
|
(106,000 |
) |
|
|
— |
|
|
Proceeds from issue of long-term debt |
|
|
— |
|
|
|
100,000 |
|
|
|
— |
|
|
|
100,000 |
|
|
|
— |
|
|
Repayment of long-term debt |
|
|
— |
|
|
|
(14,250 |
) |
|
|
(5,000 |
) |
|
|
(14,250 |
) |
|
|
(5,000 |
) |
|
Debt issuance costs |
|
|
— |
|
|
|
(2,409 |
) |
|
|
— |
|
|
|
(2,409 |
) |
|
|
— |
|
|
Other, net |
|
|
(97 |
) |
|
|
(2,429 |
) |
|
|
9 |
|
|
|
(2,526 |
) |
|
|
(1,249 |
) |
|
Net cash from financing activities |
|
|
(25,198 |
) |
|
|
(50,190 |
) |
|
|
(20,220 |
) |
|
|
(75,388 |
) |
|
|
(36,706 |
) |
|
Change in cash and cash equivalents |
|
|
23,379 |
|
|
|
(18,117 |
) |
|
|
8,660 |
|
|
|
5,262 |
|
|
|
27,740 |
|
|
Cash and cash equivalents at beginning of period |
|
|
102,340 |
|
|
|
120,457 |
|
|
|
101,664 |
|
|
|
120,457 |
|
|
|
82,584 |
|
|
Cash and cash equivalents at end of period |
|
$ |
125,719 |
|
|
$ |
102,340 |
|
|
$ |
110,324 |
|
|
$ |
125,719 |
|
|
$ |
110,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
PotlatchDeltic Corporation
Segment Information
Unaudited
|
|
|
For the three months ended |
|
|
Six Months Ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
||||||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource |
|
$ |
92,511 |
|
|
$ |
76,506 |
|
|
$ |
55,924 |
|
|
$ |
169,017 |
|
|
$ |
107,692 |
|
|
Wood Products |
|
|
193,585 |
|
|
|
139,815 |
|
|
|
114,529 |
|
|
|
333,400 |
|
|
|
210,121 |
|
|
Real Estate |
|
|
16,431 |
|
|
|
10,555 |
|
|
|
8,136 |
|
|
|
26,986 |
|
|
|
22,640 |
|
|
|
|
|
302,527 |
|
|
|
226,876 |
|
|
|
178,589 |
|
|
|
529,403 |
|
|
|
340,453 |
|
|
Intersegment Resource revenues |
|
|
(34,294 |
) |
|
|
(26,979 |
) |
|
|
(15,360 |
) |
|
|
(61,273 |
) |
|
|
(27,543 |
) |
|
Consolidated revenues |
|
$ |
268,233 |
|
|
$ |
199,897 |
|
|
$ |
163,229 |
|
|
$ |
468,130 |
|
|
$ |
312,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource |
|
$ |
43,691 |
|
|
$ |
37,697 |
|
|
$ |
23,823 |
|
|
$ |
81,388 |
|
|
$ |
43,166 |
|
|
Wood Products |
|
|
51,566 |
|
|
|
28,950 |
|
|
|
23,496 |
|
|
|
80,516 |
|
|
|
34,265 |
|
|
Real Estate |
|
|
12,300 |
|
|
|
8,002 |
|
|
|
6,779 |
|
|
|
20,302 |
|
|
|
20,239 |
|
|
Corporate |
|
|
(11,264 |
) |
|
|
(8,716 |
) |
|
|
(9,009 |
) |
|
|
(19,980 |
) |
|
|
(16,701 |
) |
|
Eliminations and adjustments |
|
|
(2,085 |
) |
|
|
(1,201 |
) |
|
|
988 |
|
|
|
(3,286 |
) |
|
|
2,028 |
|
|
Total Adjusted EBITDDA |
|
|
94,208 |
|
|
|
64,732 |
|
|
|
46,077 |
|
|
|
158,940 |
|
|
|
82,997 |
|
|
Basis of real estate sold |
|
|
(2,820 |
) |
|
|
(3,605 |
) |
|
|
(982 |
) |
|
|
(6,425 |
) |
|
|
(5,772 |
) |
|
Depreciation, depletion and amortization |
|
|
(20,950 |
) |
|
|
(12,196 |
) |
|
|
(6,271 |
) |
|
|
(33,146 |
) |
|
|
(12,600 |
) |
|
Interest expense, net |
|
|
(9,356 |
) |
|
|
(5,660 |
) |
|
|
(7,348 |
) |
|
|
(15,016 |
) |
|
|
(12,318 |
) |
|
Non-operating pension and other postretirement employee benefits |
|
|
(1,908 |
) |
|
|
(1,857 |
) |
|
|
(1,286 |
) |
|
|
(3,765 |
) |
|
|
(3,192 |
) |
|
Gain (loss) on fixed assets |
|
|
(3 |
) |
|
|
4 |
|
|
|
(30 |
) |
|
|
1 |
|
|
|
(16 |
) |
|
Gain on lumber price swap |
|
|
— |
|
|
|
— |
|
|
|
3,265 |
|
|
|
— |
|
|
|
3,265 |
|
|
Inventory purchase price adjustment in cost of goods sold |
|
|
— |
|
|
|
(1,849 |
) |
|
|
— |
|
|
|
(1,849 |
) |
|
|
— |
|
|
Deltic merger-related costs |
|
|
(1,018 |
) |
|
|
(19,255 |
) |
|
|
— |
|
|
|
(20,273 |
) |
|
|
— |
|
|
Income before income taxes |
|
$ |
58,153 |
|
|
$ |
20,314 |
|
|
$ |
33,425 |
|
|
$ |
78,467 |
|
|
$ |
52,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Resource |
|
$ |
14,598 |
|
|
$ |
8,646 |
|
|
$ |
4,274 |
|
|
$ |
23,244 |
|
|
$ |
8,658 |
|
|
Wood Products |
|
|
6,069 |
|
|
|
3,354 |
|
|
|
1,839 |
|
|
|
9,423 |
|
|
|
3,666 |
|
|
Real Estate |
|
|
77 |
|
|
|
40 |
|
|
|
— |
|
|
|
117 |
|
|
|
1 |
|
|
Corporate |
|
|
206 |
|
|
|
156 |
|
|
|
158 |
|
|
|
362 |
|
|
|
275 |
|
|
|
|
|
20,950 |
|
|
|
12,196 |
|
|
|
6,271 |
|
|
|
33,146 |
|
|
|
12,600 |
|
|
Bond discounts and deferred loan fees2 |
|
|
655 |
|
|
|
439 |
|
|
|
370 |
|
|
|
1,094 |
|
|
|
743 |
|
|
Total depreciation, depletion and amortization |
|
$ |
21,605 |
|
|
$ |
12,635 |
|
|
$ |
6,641 |
|
|
$ |
34,240 |
|
|
$ |
13,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis of real estate sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
$ |
2,896 |
|
|
$ |
3,723 |
|
|
$ |
1,047 |
|
|
$ |
6,619 |
|
|
$ |
5,856 |
|
|
Eliminations and adjustments |
|
|
(76 |
) |
|
|
(118 |
) |
|
|
(65 |
) |
|
|
(194 |
) |
|
|
(84 |
) |
|
Total basis of real estate sold |
|
$ |
2,820 |
|
|
$ |
3,605 |
|
|
$ |
982 |
|
|
$ |
6,425 |
|
|
$ |
5,772 |
|
|
|
1 |
Management uses adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of consolidated Adjusted EBITDDA on page 9, Reconciliations. |
|
|
2 |
Bond discounts and deferred loan fees are included in interest expense, net in the Consolidated Statements of Income. |
8
PotlatchDeltic Corporation
Reconciliations
|
|
|
For the three months ended |
|
|
For the six months ended |
|
||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
||||||||
|
(Dollars in thousands) |
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|||||
|
Adjusted EBITDDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
46,148 |
|
|
$ |
14,597 |
|
|
$ |
24,244 |
|
|
$ |
60,745 |
|
|
$ |
41,165 |
|
|
Interest, net |
|
|
9,356 |
|
|
|
5,660 |
|
|
|
7,348 |
|
|
|
15,016 |
|
|
|
12,318 |
|
|
Income tax provision |
|
|
12,005 |
|
|
|
5,717 |
|
|
|
9,181 |
|
|
|
17,722 |
|
|
|
11,199 |
|
|
Depreciation, depletion and amortization |
|
|
20,950 |
|
|
|
12,196 |
|
|
|
6,271 |
|
|
|
33,146 |
|
|
|
12,600 |
|
|
Basis of real estate sold |
|
|
2,820 |
|
|
|
3,605 |
|
|
|
982 |
|
|
|
6,425 |
|
|
|
5,772 |
|
|
Non-operating pension and other postretirement benefit costs |
|
|
1,908 |
|
|
|
1,857 |
|
|
|
1,286 |
|
|
|
3,765 |
|
|
|
3,192 |
|
|
Deltic merger-related costs |
|
|
1,018 |
|
|
|
19,255 |
|
|
|
— |
|
|
|
20,273 |
|
|
|
— |
|
|
Inventory purchase price adjustment in cost of goods sold |
|
|
— |
|
|
|
1,849 |
|
|
|
— |
|
|
|
1,849 |
|
|
|
— |
|
|
Gain on lumber price swap |
|
|
— |
|
|
|
— |
|
|
|
(3,265 |
) |
|
|
— |
|
|
|
(3,265 |
) |
|
(Gain) loss on fixed assets |
|
|
3 |
|
|
|
(4 |
) |
|
|
30 |
|
|
|
(1 |
) |
|
|
16 |
|
|
Adjusted EBITDDA |
|
$ |
94,208 |
|
|
$ |
64,732 |
|
|
$ |
46,077 |
|
|
$ |
158,940 |
|
|
$ |
82,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
46,148 |
|
|
$ |
14,597 |
|
|
$ |
24,244 |
|
|
$ |
60,745 |
|
|
$ |
41,165 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deltic merger-related costs |
|
|
1,018 |
|
|
|
19,255 |
|
|
|
— |
|
|
|
20,273 |
|
|
|
— |
|
|
Gain on lumber price swap, after tax |
|
|
— |
|
|
|
— |
|
|
|
(1,992 |
) |
|
|
— |
|
|
|
(1,992 |
) |
|
Inventory purchase price adjustment in cost of goods sold, after tax |
|
|
— |
|
|
|
1,368 |
|
|
|
— |
|
|
|
1,368 |
|
|
|
— |
|
|
Adjusted net income |
|
$ |
47,166 |
|
|
$ |
35,220 |
|
|
$ |
22,252 |
|
|
$ |
82,386 |
|
|
$ |
39,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted share (GAAP) |
|
$ |
0.73 |
|
|
$ |
0.29 |
|
|
$ |
0.59 |
|
|
$ |
1.06 |
|
|
$ |
1.00 |
|
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deltic merger-related costs |
|
|
0.02 |
|
|
|
0.38 |
|
|
|
— |
|
|
|
0.36 |
|
|
|
— |
|
|
Inventory purchase price adjustment in cost of goods sold, after tax |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
Gain on lumber price swap, after tax |
|
|
— |
|
|
|
— |
|
|
|
(0.05 |
) |
|
|
|
|
|
|
(0.05 |
) |
|
Adjusted net income per diluted share |
|
$ |
0.75 |
|
|
$ |
0.69 |
|
|
$ |
0.54 |
|
|
$ |
1.44 |
|
|
$ |
0.95 |
|
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|
|
|
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|
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|
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9