Business Wire | Feb 1, 2021 04:15PM EST

PotlatchDeltic Corporation Reports Fourth Quarter and Full Year 2020 Results

Feb. 01, 2021

SPOKANE, Wash.--(BUSINESS WIRE)--Feb. 01, 2021--PotlatchDeltic Corporation (Nasdaq:PCH) today reported net income of $100.0 million, or $1.48 per diluted share, on revenues of $337.4 million for the quarter ended December 31, 2020. Net income was $11.4 million, or $0.17 per diluted share, on revenues of $203.5 million for the quarter ended December 31, 2019.

Net income for the full year 2020 was $166.8 million, or $2.47 per diluted share, on revenues of $1.0 billion. Excluding an after-tax pension settlement charge, adjusted net income was $198.6 million, or $2.94 per diluted share for 2020. Net income for the full year 2019 was $55.7 million, or $0.82 per diluted share, on revenues of $827.1 million. Excluding after-tax special items consisting of a gain on the sale of legacy Deltic MDF facility and loss on the extinguishment of debt, adjusted net income was $54.4 million, or $0.80 per diluted share for 2019.

2020 Highlights

* Generated record Total Adjusted EBITDDA of $382.2 million and Total Adjusted EBITDDA margin of 37% * Timberlands, Wood Products and Real Estate all had record years * Returned $123 million to shareholders through dividends and share repurchases * Sold 72,440 acres in Minnesota to The Conservation Fund for nearly $48 million * Refinanced $46 million in debt during 2020 and locked in historically low rates on $608 million of future refinances * Expanded strong liquidity position to $631 million as of December 31, 2020

"2020 was a phenomenal year with all three of our businesses achieving record financial performance," said Eric Cremers, president and chief executive officer. "Our employees' strong resolve and focus on operating safely allowed us to take advantage of strong demand and historic lumber prices. In addition, our Real Estate team completed a large land sale to The Conservation Fund for nearly $48 million. We are well positioned to continue to execute our disciplined capital allocation strategy and maximize shareholder value given our strong liquidity position," stated Mr. Cremers.

Financial Highlights

(in millions, except per share data - unaudited) Q4 2020 Q3 2020 Q4 2019

Revenues $ 337.4 $ 313.0 $ 203.5

Net income $ 100.0 $ 81.0 $ 11.4

Weighted average shares outstanding, diluted (in 67,607 67,528 67,695thousands)

Net income per diluted share $ 1.48 $ 1.20 $ 0.17



Adjusted EBITDDA $ 163.9 $ 135.4 $ 46.6

Distributions per share $ 0.41 $ 0.40 $ 0.40

Net cash from operations $ 144.4 $ 102.9 $ 33.6

Cash and cash equivalents $ 252.3 $ 148.9 $ 83.3

Business Performance: Q4 2020 vs. Q3 2020

Timberlands

Fourth Quarter 2020 Highlights

* Timberlands Adjusted EBITDDA increased $2.8 million from Q3 2020 levels * Northern harvest volumes were seasonally lower * Northern sawlog prices increased 37% due primarily to higher prices on lumber-indexed volume * Log & haul costs reflect lower Northern harvest volume and seasonally lower rates

(in millions - unaudited) Q4 2020 Q3 2020 $ Change

Segment Revenues $ 109.8 $ 117.0 $ (7.2 )



Adjusted EBITDDA $ 62.5 $ 59.7 $ 2.8

Wood Products

Fourth Quarter 2020 Highlights

* Wood Products Adjusted EBITDDA decreased $11.4 million from Q3 2020 levels * Average lumber price realizations declined 1% to $629 per MBF in Q4 2020 * Log costs increased due to higher index pricing in Idaho * Lumber production decreased in Q4 2020 leading to lower fixed cost absorption

(in millions - unaudited) Q4 2020 Q3 2020 $ Change

Segment Revenues $ 208.9 $ 218.3 $ (9.4 )



Adjusted EBITDDA $ 70.3 $ 81.7 $ (11.4 )

Real Estate

Fourth Quarter 2020 Highlights

* Real Estate Adjusted EBITDDA increased $43.1 million from Q3 2020 levels * Sold 73,573 acres of rural land for $700/acre, including sale of 72,440 acres to The Conservation Fund for nearly $48 million * Sold 72 residential lots at an average $80,000/lot in Q4 2020 * Sold 4 commercial acres for $818,000/acre

(in millions - unaudited) Q4 2020 Q3 2020 $ Change

Segment Revenues $ 62.2 $ 18.2 $ 44.0



Adjusted EBITDDA $ 56.5 $ 13.4 $ 43.1

Outlook

"We expect housing fundamentals and lumber demand to remain strong in 2021. While lumber prices will likely moderate this year, we expect lumber prices to remain higher than long-term averages. This is particularly important to PotlatchDeltic given our leverage to lumber prices. We continue to keep an eye on the pandemic and its potential impact on the economy and our business. During 2021, we expect to harvest approximately 6 million tons in our Timberlands segment, ship around 1.1 billion board feet of lumber, and sell about 20,000 acres and 145 residential lots in our Real Estate segment," stated Mr. Cremers.

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, February 2, 2021, 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 1-833-968-2227 for U.S./Canada and 1-778-560-2697 for international callers. Participants will be asked to provide conference I.D. number 7785927. Supplemental materials that will be discussed during the call are available on the website.

A replay of the conference call will be available three hours following the call until February 9, 2021 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 7785927 to access the replay.

About PotlatchDeltic

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns approximately 1.8 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 management, is committed to environmental and social responsibility and to responsible governance. 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 current and expected liquidity; the effects of COVID-19 on demand for our products and on our ability to continue operations; the success of the company's business strategies; the company's intent to refinance debt maturing in the future; the company's capital allocation strategies, including share repurchases and dividend expectations; maintaining the company's investment grade credit rating; favorable capital structure and strong balance sheet; interest rates and expenses; corporate expenses; pension expenses; taxes; 2021 outlook; the housing market and repair and remodel market; housing starts; lumber supply, demand and pricing; revenues, costs and expenses; lumber shipment volumes; expected sawlog demand and timber harvest volumes; sawlog mix and pricing; rural real estate and development real estate sales; land basis and average price per acre and developed lot; planned capital expenditures and anticipated internal rate of return; number of seedlings planted; amount of CO2e sequestered; expected release of 2020 ESG Report; business conditions; and similar matters. Words such as "anticipate," "expect," "will," "intend," "plan," "target," "project," "believe," "seek," "schedule," "estimate," "could," "can," "may," 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, including impact of the COVID-19 outbreak on our business, suppliers, customers and employees; 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 and other catastrophic events; restrictions on harvesting due to fire danger; changes in raw material, fuel and other costs; transportation disruptions; 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.

PotlatchDeltic Corporation

Condensed Consolidated Statements of Operations

Unaudited

Three Months Ended Year Ended

December September December December 31, 31, 30, 31,

(in thousands,except per 2020 2020 2019 2020 2019 share amounts)

Revenues $ 337,449 $ 313,046 $ 203,499 $ 1,040,930 $ 827,098

Costs and expenses:

Cost of goods 183,860 182,039 169,544 687,781 682,066 sold

Selling,general and 20,455 21,046 13,931 72,519 57,925 administrativeexpenses

Gain on sale - - - - (9,176 )of facility

204,315 203,085 183,475 760,300 730,815

Operating 133,134 109,961 20,024 280,630 96,283 income

Interest (8,869 ) (8,557 ) (8,540 ) (29,463 ) (30,361 )expense, net

Loss onextinguishment - - - - (5,512 )of debt

Pensionsettlement - - - (42,988 ) - charge

Non-operatingpension andother (3,556 ) (3,557 ) (935 ) (14,226 ) (3,739 )postretirementcosts

Income before 120,709 97,847 10,549 193,953 56,671 income taxes

Income taxes (20,692 ) (16,840 ) 850 (27,123 ) (1,010 )

Net income $ 100,017 $ 81,007 $ 11,399 $ 166,830 $ 55,661



Net income per share:

Basic $ 1.49 $ 1.21 $ 0.17 $ 2.48 $ 0.82

Diluted $ 1.48 $ 1.20 $ 0.17 $ 2.47 $ 0.82

Dividends per $ 0.41 $ 0.40 $ 0.40 $ 1.61 $ 1.60 share

Weighted-average sharesoutstanding (in thousands):

Basic 67,159 67,149 67,476 67,237 67,608

Diluted 67,607 67,528 67,695 67,568 67,743

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

At December 31,

(in thousands, except per share amounts)

2020

2019

ASSETS

Current assets:

Cash and cash equivalents

$

252,340

$

83,310

Customer receivables, net

26,606

14,167

Inventories, net

62,036

65,781

Other current assets

16,136

20,183

Total current assets

357,118

183,441

Property, plant and equipment, net

288,544

286,383

Investment in real estate held for development and sale

72,355

74,233

Timber and timberlands, net

1,600,061

1,638,663

Intangible assets, net

16,270

17,049

Other long-term assets

46,717

35,290

Total assets

$

2,381,065

$

2,235,059

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

93,279

$

60,577

Current portion of long-term debt

39,981

45,974

Current portion of pension and other postretirement employee benefits

6,574

6,701

Total current liabilities

139,834

113,252

Long-term debt

717,366

710,495

Pension and other postretirement employee benefits

128,807

115,463

Deferred tax liabilities, net

17,740

20,165

Other long-term obligations

72,365

48,853

Total liabilities

1,076,112

1,008,228

Commitments and contingencies

Stockholders' equity:

Common stock, $1 par value

66,876

67,221

Additional paid-in capital

1,674,576

1,666,299

Accumulated deficit

(315,510

)

(359,330

)

Accumulated other comprehensive loss

(120,989

)

(147,359

)

Total stockholders' equity

1,304,953

1,226,831

Total liabilities and stockholders' equity

$

2,381,065

$

2,235,059

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

At December 31,

(in thousands, except per share amounts) 2020 2019

ASSETS

Current assets:

Cash and cash equivalents $ 252,340 $ 83,310

Customer receivables, net 26,606 14,167

Inventories, net 62,036 65,781

Other current assets 16,136 20,183

Total current assets 357,118 183,441

Property, plant and equipment, net 288,544 286,383

Investment in real estate held for development 72,355 74,233 and sale

Timber and timberlands, net 1,600,061 1,638,663

Intangible assets, net 16,270 17,049

Other long-term assets 46,717 35,290

Total assets $ 2,381,065 $ 2,235,059



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities $ 93,279 $ 60,577

Current portion of long-term debt 39,981 45,974

Current portion of pension and other 6,574 6,701 postretirement employee benefits

Total current liabilities 139,834 113,252

Long-term debt 717,366 710,495

Pension and other postretirement employee 128,807 115,463 benefits

Deferred tax liabilities, net 17,740 20,165

Other long-term obligations 72,365 48,853

Total liabilities 1,076,112 1,008,228

Commitments and contingencies

Stockholders' equity:

Common stock, $1 par value 66,876 67,221

Additional paid-in capital 1,674,576 1,666,299

Accumulated deficit (315,510 ) (359,330 )

Accumulated other comprehensive loss (120,989 ) (147,359 )

Total stockholders' equity 1,304,953 1,226,831

Total liabilities and stockholders' equity $ 2,381,065 $ 2,235,059

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

Three Months Ended

Year Ended

(in thousands)

December 31, 2020

September 30, 2020

December 31, 2019

December 31, 2020

December 31, 2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

100,017

$

81,007

$

11,399

$

166,830

$

55,661

Adjustments to reconcile net income to net cash from operating activities:

Depreciation, depletion and amortization

20,076

20,594

19,516

77,885

72,105

Basis of real estate sold

10,908

5,249

6,343

25,348

20,554

Gain on sale of facility

-

-

-

-

(9,176

)

Loss on extinguishment of debt

-

-

-

-

5,512

Change in deferred taxes

(223

)

(538

)

5,898

(14,610

)

(11,045

)

Employee benefit plans

5,916

5,917

2,970

23,666

11,877

Pension settlement charge

-

-

-

42,988

-

Equity-based compensation expense

2,135

2,063

1,910

8,063

7,272

Other, net

(725

)

(367

)

368

(1,269

)

(2,324

)

Change in:

Receivables, net

23,478

(25,496

)

13,047

(12,439

)

7,238

Inventories, net

(3,464

)

(6,357

)

(11,579

)

3,745

(3,519

)

Other assets

6,315

711

5,648

4,591

5,305

Accounts payable and accrued liabilities

(18,920

)

29,127

(20,231

)

25,848

(11,415

)

Other liabilities

2,957

(1,676

)

934

1,327

3,955

Real estate development expenditures

(2,506

)

(1,713

)

(1,516

)

(6,706

)

(7,254

)

Funding of pension and other postretirement employee benefits

(1,546

)

(5,619

)

(1,066

)

(10,004

)

(5,678

)

Net cash provided by operating activities

144,418

102,902

33,641

335,263

139,068

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

(8,027

)

(4,371

)

(13,557

)

(22,693

)

(39,153

)

Timberlands reforestation and roads

(3,889

)

(4,569

)

(4,426

)

(16,234

)

(17,695

)

Acquisition of timber and timberlands

(2,120

)

(8

)

(348

)

(6,858

)

(626

)

Proceeds on sale of facility

-

-

-

1,000

58,793

Transfer from company owned life insurance (COLI)

575

895

977

5,616

1,968

Transfer to COLI

(448

)

(540

)

(569

)

(3,341

)

(1,148

)

Other, net

(19

)

16

253

318

2,378

Net cash (used in) provided by investing activities

(13,928

)

(8,577

)

(17,670

)

(42,192

)

4,517

CASH FLOWS FROM FINANCING ACTIVITIES

Distributions to common stockholders

(27,419

)

(26,749

)

(26,888

)

(107,853

)

(107,722

)

Repurchase of common stock

-

-

-

(15,364

)

(25,173

)

Proceeds from long-term debt

46,000

-

40,000

46,000

190,000

Repayment of long-term debt

(46,000

)

-

(40,000

)

(46,000

)

(190,000

)

Premiums and fees on debt retirement

-

-

-

-

(4,865

)

Other, net

(735

)

(506

)

(619

)

(1,768

)

(1,012

)

Net cash used in financing activities

(28,154

)

(27,255

)

(27,507

)

(124,985

)

(138,772

)

Change in cash, cash equivalents and restricted cash

102,336

67,070

(11,536

)

168,086

4,813

Cash, cash equivalents and restricted cash at beginning of period

150,004

82,934

95,790

84,254

79,441

Cash, cash equivalents and restricted cash at end of period

$

252,340

$

150,004

$

84,254

$

252,340

$

84,254

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

Three Months Ended Year Ended

December September December December December(in thousands) 31, 30, 31, 31, 31, 2020 2020 2019 2020 2019

CASH FLOWSFROM OPERATING ACTIVITIES

Net income $ 100,017 $ 81,007 $ 11,399 $ 166,830 $ 55,661

Adjustments toreconcile netincome to net cash fromoperatingactivities:

Depreciation,depletion and 20,076 20,594 19,516 77,885 72,105 amortization

Basis of real 10,908 5,249 6,343 25,348 20,554 estate sold

Gain on sale - - - - (9,176 )of facility

Loss onextinguishment - - - - 5,512 of debt

Change in (223 ) (538 ) 5,898 (14,610 ) (11,045 )deferred taxes

Employee 5,916 5,917 2,970 23,666 11,877 benefit plans

Pensionsettlement - - - 42,988 - charge

Equity-basedcompensation 2,135 2,063 1,910 8,063 7,272 expense

Other, net (725 ) (367 ) 368 (1,269 ) (2,324 )

Change in:

Receivables, 23,478 (25,496 ) 13,047 (12,439 ) 7,238 net

Inventories, (3,464 ) (6,357 ) (11,579 ) 3,745 (3,519 )net

Other assets 6,315 711 5,648 4,591 5,305

Accountspayable and (18,920 ) 29,127 (20,231 ) 25,848 (11,415 )accruedliabilities

Other 2,957 (1,676 ) 934 1,327 3,955 liabilities

Real estatedevelopment (2,506 ) (1,713 ) (1,516 ) (6,706 ) (7,254 )expenditures

Funding ofpension andother (1,546 ) (5,619 ) (1,066 ) (10,004 ) (5,678 )postretirementemployeebenefits

Net cashprovided by 144,418 102,902 33,641 335,263 139,068 operatingactivities



CASH FLOWSFROM INVESTING ACTIVITIES

Purchase ofproperty, (8,027 ) (4,371 ) (13,557 ) (22,693 ) (39,153 )plant andequipment

Timberlandsreforestation (3,889 ) (4,569 ) (4,426 ) (16,234 ) (17,695 )and roads

Acquisition oftimber and (2,120 ) (8 ) (348 ) (6,858 ) (626 )timberlands

Proceeds onsale of - - - 1,000 58,793 facility

Transfer fromcompany owned 575 895 977 5,616 1,968 life insurance(COLI)

Transfer to (448 ) (540 ) (569 ) (3,341 ) (1,148 )COLI

Other, net (19 ) 16 253 318 2,378

Net cash (usedin) provided (13,928 ) (8,577 ) (17,670 ) (42,192 ) 4,517 by investingactivities



CASH FLOWSFROM FINANCING ACTIVITIES

Distributionsto common (27,419 ) (26,749 ) (26,888 ) (107,853 ) (107,722 )stockholders

Repurchase of - - - (15,364 ) (25,173 )common stock

Proceeds from 46,000 - 40,000 46,000 190,000 long-term debt

Repayment of (46,000 ) - (40,000 ) (46,000 ) (190,000 )long-term debt

Premiums andfees on debt - - - - (4,865 )retirement

Other, net (735 ) (506 ) (619 ) (1,768 ) (1,012 )

Net cash usedin financing (28,154 ) (27,255 ) (27,507 ) (124,985 ) (138,772 )activities

Change incash, cashequivalents 102,336 67,070 (11,536 ) 168,086 4,813 and restrictedcash

Cash, cashequivalentsand restricted 150,004 82,934 95,790 84,254 79,441 cash atbeginning ofperiod

Cash, cashequivalentsand restricted $ 252,340 $ 150,004 $ 84,254 $ 252,340 $ 84,254 cash at end ofperiod



PotlatchDeltic Corporation

Segment Information

Unaudited

Three months ended

Year Ended

December 31,

September 30,

December 31,

December 31,

(in thousands)

2020

2020

2019

2020

2019

Revenues

Timberlands

$

109,764

$

116,985

$

88,845

$

376,519

$

322,693

Wood Products

208,898

218,291

126,429

698,405

540,408

Real Estate

62,191

18,151

17,413

104,416

78,872

380,853

353,427

232,687

1,179,340

941,973

Intersegment Timberlands revenues

(43,404

)

(40,381

)

(29,188

)

(138,410

)

(114,875

)

Consolidated revenues

$

337,449

$

313,046

$

203,499

$

1,040,930

$

827,098

Adjusted EBITDDA1

Timberlands

$

62,512

$

59,649

$

38,010

$

182,802

$

133,987

Wood Products

70,315

81,644

1,843

176,095

12,901

Real Estate

56,414

13,466

13,953

86,476

62,650

Corporate

(13,884

)

(15,361

)

(9,327

)

(48,451

)

(36,257

)

Eliminations and adjustments

(11,459

)

(4,012

)

2,120

(14,694

)

5,662

Total Adjusted EBITDDA

163,898

135,386

46,599

382,228

178,943

Interest expense, net

(8,869

)

(8,557

)

(8,540

)

(29,463

)

(30,361

)

Depreciation, depletion and amortization

(19,671

)

(20,187

)

(19,107

)

(76,261

)

(70,417

)

Basis of real estate sold

(10,908

)

(5,249

)

(6,343

)

(25,348

)

(20,554

)

Loss on extinguishment of debt

-

-

-

-

(5,512

)

Pension settlement charge

-

-

-

(42,988

)

-

Non-operating pension and other postretirement employee benefits

(3,556

)

(3,557

)

(935

)

(14,226

)

(3,739

)

(Loss) gain on fixed assets

(185

)

11

(1,125

)

11

(865

)

Gain on sale of facility

-

-

-

-

9,176

Income (loss) before income taxes

$

120,709

$

97,847

$

10,549

$

193,953

$

56,671

Depreciation, depletion and amortization

Timberlands

$

13,069

$

13,821

$

13,240

$

51,047

$

46,601

Wood Products

6,200

5,983

5,393

23,611

22,059

Real Estate

155

149

170

620

678

Corporate

247

234

304

983

1,079

19,671

20,187

19,107

76,261

70,417

Bond discounts and deferred loan fees2

405

407

409

1,624

1,688

Total depreciation, depletion and amortization

$

20,076

$

20,594

$

19,516

$

77,885

$

72,105

Basis of real estate sold

Real Estate

$

11,017

$

5,257

$

6,423

$

25,990

$

20,749

Eliminations and adjustments

(109

)

(8

)

(80

)

(642

)

(195

)

Total basis of real estate sold

$

10,908

$

5,249

$

6,343

$

25,348

$

20,554

PotlatchDeltic Corporation

Segment Information

Unaudited

Three months ended Year Ended

December September December December 31, 31, 30, 31,

(in thousands) 2020 2020 2019 2020 2019

Revenues

Timberlands $ 109,764 $ 116,985 $ 88,845 $ 376,519 $ 322,693

Wood Products 208,898 218,291 126,429 698,405 540,408

Real Estate 62,191 18,151 17,413 104,416 78,872

380,853 353,427 232,687 1,179,340 941,973

IntersegmentTimberlands (43,404 ) (40,381 ) (29,188 ) (138,410 ) (114,875 )revenues

Consolidated $ 337,449 $ 313,046 $ 203,499 $ 1,040,930 $ 827,098 revenues



Adjusted EBITDDA^1

Timberlands $ 62,512 $ 59,649 $ 38,010 $ 182,802 $ 133,987

Wood Products 70,315 81,644 1,843 176,095 12,901

Real Estate 56,414 13,466 13,953 86,476 62,650

Corporate (13,884 ) (15,361 ) (9,327 ) (48,451 ) (36,257 )

Eliminationsand (11,459 ) (4,012 ) 2,120 (14,694 ) 5,662 adjustments

Total Adjusted 163,898 135,386 46,599 382,228 178,943 EBITDDA

Interest (8,869 ) (8,557 ) (8,540 ) (29,463 ) (30,361 )expense, net

Depreciation,depletion and (19,671 ) (20,187 ) (19,107 ) (76,261 ) (70,417 )amortization

Basis of real (10,908 ) (5,249 ) (6,343 ) (25,348 ) (20,554 )estate sold

Loss onextinguishment - - - - (5,512 )of debt

Pensionsettlement - - - (42,988 ) - charge

Non-operatingpension andother (3,556 ) (3,557 ) (935 ) (14,226 ) (3,739 )postretirementemployeebenefits

(Loss) gain on (185 ) 11 (1,125 ) 11 (865 )fixed assets

Gain on sale - - - - 9,176 of facility

Income (loss)before income $ 120,709 $ 97,847 $ 10,549 $ 193,953 $ 56,671 taxes



Depreciation,depletion and amortization

Timberlands $ 13,069 $ 13,821 $ 13,240 $ 51,047 $ 46,601

Wood Products 6,200 5,983 5,393 23,611 22,059

Real Estate 155 149 170 620 678

Corporate 247 234 304 983 1,079

19,671 20,187 19,107 76,261 70,417

Bond discountsand deferred 405 407 409 1,624 1,688 loan fees^2

Totaldepreciation, $ 20,076 $ 20,594 $ 19,516 $ 77,885 $ 72,105 depletion andamortization



Basis of real estate sold

Real Estate $ 11,017 $ 5,257 $ 6,423 $ 25,990 $ 20,749

Eliminationsand (109 ) (8 ) (80 ) (642 ) (195 )adjustments

Total basis ofreal estate $ 10,908 $ 5,249 $ 6,343 $ 25,348 $ 20,554 sold

1 Management uses Adjusted EBITDDA to evaluate company and segment performance. See the reconciliation of Total Adjusted EBITDDA on page 9, Reconciliations.

2 Bond discounts and deferred loan fees are included in interest expense, net in the Condensed Consolidated Statements of Operations.

^1 Management uses Adjusted EBITDDA to evaluate company and segmentperformance. See the reconciliation of Total Adjusted EBITDDA on page 9,Reconciliations.

^2 Bond discounts and deferred loan fees are included in interest expense, netin the Condensed Consolidated Statements of Operations.

PotlatchDeltic Corporation

Reconciliations

Unaudited

Three months ended

Year ended

December 31,

September 30,

December 31,

December 31,

(in thousands, except per share amounts)

2020

2020

2019

2020

2019

Adjusted EBITDDA

Net income (GAAP)

$

100,017

$

81,007

$

11,399

$

166,830

$

55,661

Interest, net

8,869

8,557

8,540

29,463

30,361

Income taxes

20,692

16,840

(850

)

27,123

1,010

Depreciation, depletion and amortization

19,671

20,187

19,107

76,261

70,417

Basis of real estate sold

10,908

5,249

6,343

25,348

20,554

Loss on extinguishment of debt

-

-

-

-

5,512

Pension settlement charge

-

-

-

42,988

-

Non-operating pension and other postretirement benefit costs

3,556

3,557

935

14,226

3,739

Gain on sale of facility

-

-

-

-

(9,176

)

Loss (gain) on fixed assets

185

(11

)

1,125

(11

)

865

Adjusted EBITDDA

$

163,898

$

135,386

$

46,599

$

382,228

$

178,943

Adjusted net income

Net income (GAAP)

$

100,017

$

81,007

$

11,399

$

166,830

$

55,661

Special items:

Loss on extinguishment of debt

-

-

-

-

5,512

Pension settlement charge, after tax

-

-

-

31,811

Gain on sale of facility, after tax

-

-

-

-

(6,790

)

Adjusted net income

$

100,017

$

81,007

$

11,399

$

198,641

$

54,383

Adjusted net income per diluted share

Net income per diluted share (GAAP)

$

1.48

$

1.20

$

0.17

$

2.47

$

0.82

Special items:

Loss on extinguishment of debt

-

-

-

-

0.08

Pension settlement charge, after tax

-

-

-

0.47

-

Gain on sale of facility, after tax

-

-

-

-

(0.10

)

Adjusted net income per diluted share

$

1.48

$

1.20

$

0.17

$

2.94

$

0.80

View source version on businesswire.com: https://www.businesswire.com/news/home/20210201005916/en/

CONTACT: (Investors) Jerry Richards 509.835.1521

CONTACT: (Media) Anna Torma 509.835.1558