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PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2024 Results

1. PCH reported Q4 2024 net income of $5.2 million. 2. Total revenues for 2024 reached $1.1 billion, an increase from 2023. 3. Average lumber prices rose 11% to $445 per MBF in Q4 2024. 4. PCH repurchased 847,000 shares for $35 million during 2024. 5. Strong liquidity stands at $451 million as of December 31, 2024.

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PCH's net income and revenue growth signify strong operational performance, enhancing investor outlook.

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The article details PCH's financial performance and strategic decisions, which directly affects stock valuation.

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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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