Potlatchdeltic corporation reports first
quarter 2019 results
Spokane, wash.--(business wire)--potlatchdeltic corporation (nasdaq:pch) today reported net income of $6.6 million, or $0.10 per diluted share, on revenues of $181.7 million for the quarter ended march 31, 2019. excluding after-tax special items consisting of a gain on the sale of the legacy deltic mdf facility and a loss on the extinguishment of debt, adjusted net income was $5.3 million, or $0.08 per diluted share for the first quarter of 2019. first quarter 2019 highlights generated $28.3 million of total adjusted ebitdda closed the sale of legacy deltic mdf facility for $92 million, generating $43 million in cash, after taxes refinanced $150.0 million of 7.5% debt, reducing annual interest expense run rate by over $5 million repurchased 278,947 shares for $10.2 million “our first quarter results reflect seasonally lower activity and challenging operating conditions,” said mike covey, chairman and chief executive officer. “we continue to expect improvement in lumber prices as the building season gets underway in earnest. meanwhile, our balance sheet remains strong and provides the flexibility to drive shareholder value,” stated mr. covey. financial highlights 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: q1 2019 vs. q4 2018 resource first quarter 2019 highlights northern sawlog prices decreased 9% due to lower lumber index pricing and seasonally heavier logs northern sawlog volumes decreased seasonally southern sawlog and pulpwood prices increased due to constrained log supply as a result of wet weather $ change wood products first quarter 2019 highlights lumber price realizations increased approximately 4% to $380 per mbf in q1 2019 lumber shipments declined 10% due to operational and transportation issues $ change real estate first quarter 2019 highlights sold 2,342 acres of rural real estate at an average price of $1,801 per acre sold 7 residential lots at an average of $96,129 per lot q4 2018 included a commercial real estate sale and 67 residential lots $ change non-gaap measures 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, april 30, 2019, 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 1-877-823-6919 for u.s./canada and 1-647-689-5576 for international callers. participants will be asked to provide conference i.d. number 6367747. 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 may 7, 2019 by calling 1-800-585-8367 for u.s./canada or 1-416-621-4642 for international callers. callers must enter conference i.d. number 6367747 to access the replay. about potlatchdeltic potlatchdeltic (nasdaq:pch) is a leading real estate investment trust (reit) that owns nearly 1.9 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 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. forward-looking statements 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; 2019 lumber shipments; effect on annual adjusted ebitdda of $10 per thousand board foot change in price; northern and southern log and pulpwood sales and pricing; q2 2019 timber harvest; real estate sales and cost basis; the direction of our business markets; business conditions; reduction of interest expense as a result of farm credit patronage; 2019 capital expenditures; q2 2019 interest expense; q2 2019 corporate expense; q2 2019 income tax; dividend payout ratio; and similar matters. 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, 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-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; 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. 1 1 management uses adjusted ebitdda to evaluate company and segment performance. see the reconciliation of total adjusted ebitdda on page 8, reconciliations. 2 bond discounts and deferred loan fees are included in interest expense, net in the condensed consolidated statements of income.
