SPOKANE, Wash., Oct. 29, 2018 (GLOBE NEWSWIRE) -- PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of $60.4 million, or $0.93 per diluted share, on revenues of $289.2 million for the quarter ended September 30, 2018.
Third Quarter 2018 Highlights
- Consolidated Adjusted EBITDDA of $101.8 million and Adjusted EBITDDA margin of 35%
- Wood Products Adjusted EBITDDA of $46.5 million and Adjusted EBITDDA margin of 23%
- Achieved $51 million in after-tax annual cash synergy run rate target as of September 30, 2018 and ahead of schedule
“All three of our business segments delivered strong results in the third quarter and the financial objectives of the Deltic merger have exceeded our expectations,” said Mike Covey, chairman and chief executive officer. “In the fourth quarter we will pay a special distribution of $3.54 per share. Lumber market fundamentals remain strong despite the recent decline in lumber prices,” stated Mr. Covey.
Financial Highlights
| ($ in millions, except per share data) | Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||
| Revenues | $ | 289.2 | $ | 268.2 | $ | 190.4 | |||||||
| Net income | $ | 60.4 | $ | 46.1 | $ | 33.7 | |||||||
| Weighted average shares outstanding, diluted (in thousands) | 64,722 | 63,316 | 41,250 | ||||||||||
| Net income per diluted share | $ | 0.93 | $ | 0.73 | $ | 0.82 | |||||||
| Adjusted net income | $ | 56.0 | $ | 47.2 | $ | 38.7 | |||||||
| Adjusted net income per diluted share | $ | 0.87 | $ | 0.75 | $ | 0.94 | |||||||
| Adjusted EBITDDA | $ | 101.8 | $ | 94.2 | $ | 62.2 | |||||||
| Distribution per share | $ | 0.40 | $ | 0.40 | $ | 0.375 | |||||||
| Net cash from operations | $ | 53.0 | $ | 60.5 | $ | 50.0 | |||||||
| Cash and cash equivalents | $ | 137.5 | $ | 125.7 | $ | 116.8 | |||||||
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: Q3 2018 vs. Q2 2018
Resource
Third Quarter 2018 Highlights
- Northern harvest volume increased due to more operating days
- Northern sawlog prices increased 6% mostly due to seasonally lighter logs
- Southern harvest operations were hampered by unseasonably wet weather
- Log & haul costs increased due to higher Northern harvest volume
| ($ in millions) | Q3 2018 | Q2 2018 | $ Change | |||||||||
| Segment Revenues | $ | 111.4 | $ | 92.5 | $ | 18.9 | ||||||
| Adjusted EBITDDA | $ | 58.7 | $ | 43.7 | $ | 15.0 | ||||||
Wood Products
Third Quarter 2018 Highlights
- Lumber shipments increased 25 MMBF; reflects progress on shortfall caused by Q2 2018 transportation issues
- Lumber pricing declined 6%
- Net decrease in panel EBITDDA due to annual maintenance shutdown at the MDF plant
| ($ in millions) | Q3 2018 | Q2 2018 | $ Change | |||||||||
| Segment Revenues | $ | 199.0 | $ | 193.6 | $ | 5.4 | ||||||
| Adjusted EBITDDA | $ | 46.5 | $ | 51.5 | $ | (5.0 | ) | |||||
Real Estate
Third Quarter 2018 Highlights
- Sold 3,160 acres of rural real estate at an average price of $2,600 per acre
- No commercial acreage sales in Chenal Valley; expect higher rooftop density to spur interest
| ($ in millions) | Q3 2018 | Q2 2018 | $ Change | |||||||||
| Segment Revenues | $ | 11.2 | $ | 16.4 | $ | (5.2 | ) | |||||
| Adjusted EBITDDA | $ | 7.4 | $ | 12.3 | $ | (4.9 | ) | |||||
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 Monday, October 29, 2018, at 8:00 a.m. Pacific Time (11:00 a.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 5245998. 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 November 5, 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 5245998 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.
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; the direction of our business markets, business conditions, pricing; 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 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 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-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.
PotlatchDeltic Corporation
Condensed Consolidated Statements of Income
Unaudited
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | |||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Revenues | $ | 289,199 | $ | 268,233 | $ | 190,441 | $ | 757,329 | $ | 503,351 | ||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Cost of goods sold1 | 195,584 | 180,906 | 124,727 | 515,645 | 348,581 | |||||||||||||||
| Selling, general and administrative expenses1 | 14,901 | 16,892 | 13,240 | 45,449 | 37,687 | |||||||||||||||
| Deltic merger-related costs | 972 | 1,018 | 27 | 21,245 | 27 | |||||||||||||||
| Environmental charges for Avery Landing | — | — | 4,978 | — | 4,978 | |||||||||||||||
| Loss (gain) on lumber price swap | — | — | 2,080 | — | (1,185 | ) | ||||||||||||||
| 211,457 | 198,816 | 145,052 | 582,339 | 390,088 | ||||||||||||||||
| Operating income | 77,742 | 69,417 | 45,389 | 174,990 | 113,263 | |||||||||||||||
| Interest expense, net | (10,109 | ) | (9,356 | ) | (7,336 | ) | (25,125 | ) | (19,654 | ) | ||||||||||
| Non-operating pension and other postretirement costs1 | (1,942 | ) | (1,908 | ) | (1,596 | ) | (5,707 | ) | (4,788 | ) | ||||||||||
| Income before income taxes | 65,691 | 58,153 | 36,457 | 144,158 | 88,821 | |||||||||||||||
| Income taxes | (5,355 | ) | (12,005 | ) | (2,757 | ) | (23,077 | ) | (13,956 | ) | ||||||||||
| Net income | $ | 60,336 | $ | 46,148 | $ | 33,700 | $ | 121,081 | $ | 74,865 | ||||||||||
| Net income per share: | ||||||||||||||||||||
| Basic | $ | 0.96 | $ | 0.73 | $ | 0.83 | $ | 2.06 | $ | 1.83 | ||||||||||
| Diluted | $ | 0.93 | $ | 0.73 | $ | 0.82 | $ | 2.03 | $ | 1.82 | ||||||||||
| Dividends per share | $ | 0.40 | $ | 0.40 | $ | 0.375 | $ | 1.20 | $ | 1.13 | ||||||||||
| Weighted-average shares outstanding (in thousands): | ||||||||||||||||||||
| Basic | 62,986 | 62,980 | 40,829 | 58,765 | 40,814 | |||||||||||||||
| Diluted | 64,722 | 63,316 | 41,250 | 59,542 | 41,183 | |||||||||||||||
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.
PotlatchDeltic Corporation
Condensed Consolidated Balance Sheets
Unaudited
| (Dollars in thousands) | September 30, 2018 | December 31, 2017 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 137,535 | $ | 120,457 | ||||
| Customer receivables, net | 39,029 | 11,240 | ||||||
| Inventories | 73,864 | 50,132 | ||||||
| Other current assets | 18,988 | 11,478 | ||||||
| Total current assets | 269,416 | 193,307 | ||||||
| Property, plant and equipment, net | 340,146 | 77,229 | ||||||
| Investment in real estate held for development and sale | 76,523 | — | ||||||
| Timber and timberlands, net | 1,684,049 | 654,476 | ||||||
| Deferred tax assets, net | — | 19,796 | ||||||
| Trade name and customer relationships intangibles | 19,241 | — | ||||||
| Other long-term assets | 23,696 | 8,271 | ||||||
| Total assets | $ | 2,413,071 | $ | 953,079 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Distribution payable1 | $ | 222,000 | $ | — | ||||
| Accounts payable and accrued liabilities | 80,258 | 55,201 | ||||||
| Current portion of long-term debt | — | 14,263 | ||||||
| Current portion of pension and other postretirement employee benefits | 6,088 | 5,334 | ||||||
| Total current liabilities | 308,346 | 74,798 | ||||||
| Long-term debt | 783,899 | 559,056 | ||||||
| Pension and other postretirement employee benefits | 89,035 | 103,524 | ||||||
| Deferred tax liabilities, net | 38,575 | — | ||||||
| Other long-term obligations | 14,147 | 15,159 | ||||||
| Total liabilities | 1,234,002 | 752,537 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, $1 par value | 62,755 | 40,612 | ||||||
| Additional paid-in capital | 1,483,750 | 359,144 | ||||||
| Accumulated deficit1 | (256,280 | ) | (104,363 | ) | ||||
| Accumulated other comprehensive loss | (111,156 | ) | (94,851 | ) | ||||
| Total stockholders’ equity | 1,179,069 | 200,542 | ||||||
| Total liabilities and stockholders' equity | $ | 2,413,071 | $ | 953,079 | ||||
1 A special distribution of $222 million was declared August 30, 2018 and is payable November 15, 2018. The special distribution represents the accumulated earnings and profits of Deltic Timber Corporation as of February 20, 2018, the date Deltic merged into a wholly-owned subsidiary of PotlatchDeltic. Up to 20%, or $44.4 million, of the special distribution will be paid in cash with the balance of the special distribution to be paid in shares of PotlatchDeltic’s common stock.
PotlatchDeltic Corporation
Condensed Consolidated Statements of Cash Flows
Unaudited
| For the three months ended | For the nine months ended | |||||||||||||||||||
| (Dollars in thousands) | September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||
| Net income | $ | 60,336 | $ | 46,148 | $ | 33,700 | $ | 121,081 | $ | 74,865 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Depreciation, depletion and amortization | 19,445 | 21,605 | 8,565 | 53,685 | 21,908 | |||||||||||||||
| Basis of real estate sold | 4,248 | 2,820 | 579 | 10,673 | 6,351 | |||||||||||||||
| Change in deferred taxes | 11,081 | 3,856 | (2,169 | ) | 13,879 | (925 | ) | |||||||||||||
| Pension and other postretirement employee benefits | 4,222 | 4,185 | 3,288 | 12,221 | 9,863 | |||||||||||||||
| Equity-based compensation expense | 1,629 | 1,795 | 1,188 | 6,518 | 3,536 | |||||||||||||||
| Other, net | (549 | ) | (129 | ) | (484 | ) | (1,220 | ) | (1,467 | ) | ||||||||||
| Change in working capital and operating-related activities, net | (1,982 | ) | (18,782 | ) | 10,570 | (13,289 | ) | 20,489 | ||||||||||||
| Real estate development expenditures | (1,416 | ) | (1,057 | ) | — | (3,081 | ) | — | ||||||||||||
| Funding of qualified pension plans | (44,001 | ) | — | (5,275 | ) | (52,099 | ) | (5,275 | ) | |||||||||||
| Net cash from operating activities | 53,013 | 60,441 | 49,962 | 148,368 | 129,345 | |||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||
| Purchase of property, plant and equipment | (7,123 | ) | (7,741 | ) | (3,506 | ) | (18,496 | ) | (9,445 | ) | ||||||||||
| Timberlands reforestation and roads | (5,345 | ) | (4,259 | ) | (5,785 | ) | (12,464 | ) | (11,577 | ) | ||||||||||
| Acquisition of timber and timberlands | (3 | ) | (163 | ) | (18,901 | ) | (166 | ) | (22,033 | ) | ||||||||||
| Other, net | 124 | 299 | (32 | ) | 655 | (106 | ) | |||||||||||||
| Cash and cash equivalents acquired in merger | — | — | — | 3,419 | — | |||||||||||||||
| Net cash from investing activities | (12,347 | ) | (11,864 | ) | (28,224 | ) | (27,052 | ) | (43,161 | ) | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||||||
| Dividends to common stockholders | (25,102 | ) | (25,101 | ) | (15,229 | ) | (75,305 | ) | (45,686 | ) | ||||||||||
| Proceeds from Potlatch revolving line of credit | — | — | — | 100,000 | — | |||||||||||||||
| Repayment of Potlatch revolving line of credit | — | — | — | (100,000 | ) | — | ||||||||||||||
| Revolving line of credit repayment attributable to Deltic | — | — | — | (106,000 | ) | — | ||||||||||||||
| Proceeds from issue of long-term debt | — | — | — | 100,000 | — | |||||||||||||||
| Repayment of long-term debt | — | — | — | (14,250 | ) | (5,000 | ) | |||||||||||||
| Debt issuance costs | (25 | ) | — | — | (2,434 | ) | — | |||||||||||||
| Other, net | (15 | ) | (97 | ) | (30 | ) | (2,541 | ) | (1,279 | ) | ||||||||||
| Net cash from financing activities | (25,142 | ) | (25,198 | ) | (15,259 | ) | (100,530 | ) | (51,965 | ) | ||||||||||
| Change in cash, cash equivalents and restricted cash | 15,524 | 23,379 | 6,479 | 20,786 | 34,219 | |||||||||||||||
| Cash, cash equivalents and restricted cash, beginning | 125,719 | 102,340 | 110,324 | 120,457 | 82,584 | |||||||||||||||
| Cash, cash equivalents and restricted cash, ending | $ | 141,243 | $ | 125,719 | $ | 116,803 | $ | 141,243 | $ | 116,803 | ||||||||||
PotlatchDeltic Corporation
Condensed Consolidated Statements of Cash Flows
Unaudited
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows.
| Nine Months Ended September 30, | ||||||||
| (Dollars in thousands) | 2018 | 2017 | ||||||
| Cash and cash equivalents | $ | 137,535 | $ | 116,803 | ||||
| Restricted cash included in other long-term assets1 | 3,708 | — | ||||||
| Total cash, cash equivalents, and restricted cash | $ | 141,243 | $ | 116,803 | ||||
1 Amounts included in restricted cash represent proceeds held by a qualified intermediary that are intended to be reinvested in timber and timberlands.
PotlatchDeltic Corporation
Segment Information
Unaudited
| For the three months ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | June 30, | |||||||||||||||||
| (Dollars in thousands) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Revenues | ||||||||||||||||||||
| Resource | $ | 111,421 | $ | 92,511 | $ | 94,705 | $ | 280,438 | $ | 202,397 | ||||||||||
| Wood Products | 199,025 | 193,585 | 116,487 | 532,425 | 326,608 | |||||||||||||||
| Real Estate | 11,233 | 16,431 | 3,282 | 38,219 | 25,922 | |||||||||||||||
| 321,679 | 302,527 | 214,474 | 851,082 | 554,927 | ||||||||||||||||
| Intersegment Resource revenues | (32,480 | ) | (34,294 | ) | (24,033 | ) | (93,753 | ) | (51,576 | ) | ||||||||||
| Consolidated revenues | $ | 289,199 | $ | 268,233 | $ | 190,441 | $ | 757,329 | $ | 503,351 | ||||||||||
| Adjusted EBITDDA1 | ||||||||||||||||||||
| Resource | $ | 58,680 | $ | 43,691 | $ | 48,034 | $ | 140,068 | $ | 91,200 | ||||||||||
| Wood Products | 46,446 | 51,566 | 24,395 | 126,962 | 58,660 | |||||||||||||||
| Real Estate | 7,467 | 12,300 | 2,094 | 27,769 | 22,333 | |||||||||||||||
| Corporate | (8,989 | ) | (11,264 | ) | (9,108 | ) | (28,969 | ) | (25,809 | ) | ||||||||||
| Eliminations and adjustments | (1,794 | ) | (2,085 | ) | (3,180 | ) | (5,080 | ) | (1,152 | ) | ||||||||||
| Total Adjusted EBITDDA | 101,810 | 94,208 | 62,235 | 260,750 | 145,232 | |||||||||||||||
| Basis of real estate sold | (4,248 | ) | (2,820 | ) | (579 | ) | (10,673 | ) | (6,351 | ) | ||||||||||
| Depreciation, depletion and amortization | (18,836 | ) | (20,950 | ) | (8,196 | ) | (51,982 | ) | (20,796 | ) | ||||||||||
| Interest expense, net | (10,109 | ) | (9,356 | ) | (7,336 | ) | (25,125 | ) | (19,654 | ) | ||||||||||
| Non-operating pension and other postretirement employee benefits | (1,942 | ) | (1,908 | ) | (1,596 | ) | (5,707 | ) | (4,788 | ) | ||||||||||
| Gain (loss) on fixed assets | (12 | ) | (3 | ) | — | (11 | ) | (16 | ) | |||||||||||
| Lumber price swap2 | — | — | (3,066 | ) | — | 199 | ||||||||||||||
| Environmental charges for Avery Landing | — | — | (4,978 | ) | — | (4,978 | ) | |||||||||||||
| Inventory purchase price adjustment in cost of goods sold | — | — | — | (1,849 | ) | — | ||||||||||||||
| Deltic merger-related costs | (972 | ) | (1,018 | ) | (27 | ) | (21,245 | ) | (27 | ) | ||||||||||
| Income before income taxes | $ | 65,691 | $ | 58,153 | $ | 36,457 | $ | 144,158 | $ | 88,821 | ||||||||||
| Depreciation, depletion and amortization | ||||||||||||||||||||
| Resource | $ | 12,730 | $ | 14,598 | $ | 6,207 | $ | 35,974 | $ | 14,865 | ||||||||||
| Wood Products | 5,827 | 6,069 | 1,821 | 15,250 | 5,487 | |||||||||||||||
| Real Estate | 81 | 77 | — | 198 | 1 | |||||||||||||||
| Corporate | 198 | 206 | 168 | 560 | 443 | |||||||||||||||
| 18,836 | 20,950 | 8,196 | 51,982 | 20,796 | ||||||||||||||||
| Bond discounts and deferred loan fees3 | 609 | 655 | 369 | 1,703 | 1,112 | |||||||||||||||
| Total depreciation, depletion and amortization | $ | 19,445 | $ | 21,605 | $ | 8,565 | $ | 53,685 | $ | 21,908 | ||||||||||
| Basis of real estate sold | ||||||||||||||||||||
| Real Estate | $ | 4,267 | $ | 2,896 | $ | 618 | $ | 10,886 | $ | 6,474 | ||||||||||
| Eliminations and adjustments | (19 | ) | (76 | ) | (39 | ) | (213 | ) | (123 | ) | ||||||||||
| Total basis of real estate sold | $ | 4,248 | $ | 2,820 | $ | 579 | $ | 10,673 | $ | 6,351 | ||||||||||
1 Management uses adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of consolidated Adjusted EBITDDA on page 9, Reconciliations.
2 Includes change in unrealized (gain) loss and $1 million in cash settlements.
3 Bond discounts and deferred loan fees are included in interest expense, net in the Consolidated Statements of Income.
PotlatchDeltic Corporation
Reconciliations
| For the three months ended | For the nine months ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | |||||||||||||||||
| (Dollars in thousands) | 2018 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| Adjusted EBITDDA | ||||||||||||||||||||
| Net income (GAAP) | $ | 60,336 | $ | 46,148 | $ | 33,700 | $ | 121,081 | $ | 74,865 | ||||||||||
| Interest, net | 10,109 | 9,356 | 7,336 | 25,125 | 19,654 | |||||||||||||||
| Income tax provision | 5,355 | 12,005 | 2,757 | 23,077 | 13,956 | |||||||||||||||
| Depreciation, depletion and amortization | 18,836 | 20,950 | 8,196 | 51,982 | 20,796 | |||||||||||||||
| Basis of real estate sold | 4,248 | 2,820 | 579 | 10,673 | 6,351 | |||||||||||||||
| Non-operating pension and other postretirement benefit costs | 1,942 | 1,908 | 1,596 | 5,707 | 4,788 | |||||||||||||||
| Deltic merger-related costs | 972 | 1,018 | 27 | 21,245 | 27 | |||||||||||||||
| Inventory purchase price adjustment in cost of goods sold | — | — | — | 1,849 | — | |||||||||||||||
| Lumber price swap1 | — | — | 3,066 | — | (199 | ) | ||||||||||||||
| Environmental charge for Avery Landing | — | — | 4,978 | — | 4,978 | |||||||||||||||
| Loss on fixed assets | 12 | 3 | — | 11 | 16 | |||||||||||||||
| Adjusted EBITDDA | $ | 101,810 | $ | 94,208 | $ | 62,235 | $ | 260,750 | $ | 145,232 | ||||||||||
| Adjusted net income | ||||||||||||||||||||
| Net income (GAAP) | $ | 60,336 | $ | 46,148 | $ | 33,700 | $ | 121,081 | $ | 74,865 | ||||||||||
| Special items: | ||||||||||||||||||||
| Deltic merger-related costs | 972 | 1,018 | 27 | 21,245 | 27 | |||||||||||||||
| Lumber price swap, after tax1 | — | — | 1,870 | — | (121 | ) | ||||||||||||||
| Environmental charge for Avery Landing, after tax | — | — | 3,037 | — | 3,037 | |||||||||||||||
| Tax adustments2 | (5,327 | ) | — | — | (5,327 | ) | — | |||||||||||||
| Inventory purchase price adjustment in cost of goods sold, after tax | — | — | — | 1,368 | — | |||||||||||||||
| Adjusted net income | $ | 55,981 | $ | 47,166 | $ | 38,634 | $ | 138,367 | $ | 77,808 | ||||||||||
| Adjusted net income per share | ||||||||||||||||||||
| Net income per diluted share (GAAP) | $ | 0.93 | $ | 0.73 | $ | 0.82 | $ | 2.03 | $ | 1.82 | ||||||||||
| Special items: | ||||||||||||||||||||
| Deltic merger-related costs | 0.02 | 0.02 | — | 0.36 | — | |||||||||||||||
| Environmental charge for Avery Landing, after tax | — | — | 0.07 | — | 0.07 | |||||||||||||||
| Tax adjustments2 | (0.08 | ) | — | — | (0.09 | ) | — | |||||||||||||
| Inventory purchase price adjustment in cost of goods sold, after tax | — | — | — | 0.02 | — | |||||||||||||||
| Lumber price swap, after tax | — | — | 0.05 | — | — | |||||||||||||||
| Adjusted net income per diluted share | $ | 0.87 | $ | 0.75 | $ | 0.94 | $ | 2.32 | $ | 1.89 | ||||||||||
1 Adjustment includes change in unrealized (gain) loss and $1 million in cash settlements.
2 During the third quarter 2018, we recorded a tax benefit primarily related to deducting contributions to our qualified pension plans at the higher 2017 income tax rate.
| Contact: | (Investors) | (Media) | ||
| Jerry Richards | Mark Benson | |||
| 509.835.1521 | 509.835.1513 |