Business Wire | Jul 26, 2021 04:10PM EDT

PotlatchDeltic Corporation Reports Second Quarter 2021 Results

Jul. 26, 2021

SPOKANE, Wash.--(BUSINESS WIRE)--Jul. 26, 2021--PotlatchDeltic Corporation (Nasdaq: PCH) today reported net income of $187.9 million, or $2.77 per diluted share, on revenues of $447.5 million for the quarter ended June 30, 2021. Net income was $2.6 million, or $0.04 per diluted share, on revenues of $181.6 million for the quarter ended June 30, 2020.

Second Quarter 2021 Highlights

* Generated record Total Adjusted EBITDDA of $275.0 million and Total Adjusted EBITDDA margin of 61% * Historic lumber prices drove record Wood Products Adjusted EBITDDA of $204.6 million * Record Timberlands Adjusted EBITDDA of $77.2 million propelled by higher Idaho sawlog prices * Extended strong liquidity position to $891 million as of Q2 2021

"Lumber prices continued their historic run in the second quarter, driving another quarter of record financial performance," said Eric Cremers, president and chief executive officer. "Our employees did a good job navigating operational challenges, including a fire at our Ola, Arkansas sawmill. While lumber prices have recently retreated from historic highs, overall fundamentals that drive our business remain favorable. We are very well positioned to continue growing shareholder value and execute on our disciplined capital allocation strategy, including paying a meaningful special dividend in the fourth quarter of 2021," stated Mr. Cremers.

Financial Highlights

($ in millions, except per share data) Q2 2021 Q1 2021 Q2 2020

Revenues $ 447.5 $ 354.2 $ 181.6

Net income $ 187.9 $ 131.1 $ 2.6

Weighted average shares outstanding, 67,732 67,607 67,359 diluted (in thousands)

Net income per diluted share $ 2.77 $ 1.94 $ 0.04



Total Adjusted EBITDDA $ 275.0 $ 195.0 $ 35.3

Dividends per share $ 0.41 $ 0.41 $ 0.40

Net cash from operations $ 171.4 $ 169.9 $ 39.8

Cash and cash equivalents $ 512.0 $ 382.0 $ 81.0



Business Performance: Q2 2021 vs. Q1 2021

Timberlands

Second Quarter 2021 Highlights

* Timberlands Adjusted EBITDDA increased $9.3 million from Q1 2021 levels * Northern sawlog prices increased 38% * Northern harvest volumes decreased seasonally due to spring breakup * Southern harvest volumes were flat as wet conditions impacted operations * Forest management costs increased due to seasonally higher activities

($ in millions) Q2 2021 Q1 2021 $ Change

Timberlands Revenues $ 121.2 $ 111.9 $ 9.3



Timberlands Adjusted EBITDDA $ 77.2 $ 67.9 $ 9.3



Wood Products

Second Quarter 2021 Highlights

* Wood Products Adjusted EBITDDA increased $79.1 million from Q1 2021 levels * Average lumber price realizations increased 33% to $1,185 per MBF in Q2 2021 * Lumber shipments were lower than expected due to lower home center demand, transportation challenges and the Ola sawmill fire * Log costs increased due to higher index pricing in Idaho * Plywood price realizations increased due to strong demand from industrial manufacturers

($ in millions) Q2 2021 Q1 2021 $ Change

Wood Products Revenues $ 357.7 $ 269.3 $ 88.4



Wood Products Adjusted EBITDDA $ 204.6 $ 125.5 $ 79.1



Real Estate

Second Quarter 2021 Highlights

* Real Estate Adjusted EBITDDA decreased $4.8 million due to seasonally lower lot sales and no commercial land sales * Sold 2,605 acres of rural land for $4,416/acre * Sold 19 residential lots at an average $91,000/lot

($ in millions) Q2 2021 Q1 2021 $ Change

Real Estate Revenues $ 16.0 $ 20.3 $ (4.3 )



Real Estate Adjusted EBITDDA $ 11.8 $ 16.6 $ (4.8 )



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, July 27, 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 9495212. 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 3, 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 9495212 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 revenues, costs and expenses; expected liquidity; the success of the company's business strategies; the effect of the company's debt refinancing and intent to refinance debt maturing in the future; the company's capital allocation strategies, including share repurchases and dividend expectations; interest in accretive acquisitions; maintaining the company's investment grade credit rating; favorable capital structure and strong balance sheet; interest rates and expenses; corporate expenses; pension expenses; taxes; Q3 and FY 2021 outlook; the housing market and repair and remodel market; housing starts; lumber supply, demand and pricing; lumber shipment volumes; the effects of changes in lumber prices on annual EBITDDA; estimated impact from the Ola, Arkansas sawmill fire and anticipated insurance coverage; 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; number of seedlings planted; amount of greenhouse gas emitted; amount of CO2e sequestered; 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 COVID-19 and its variants, governmental responses to such outbreaks, and anticipated recovery from the pandemic 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 (such as the Ola, Arkansas sawmill fire and fires 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; 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 Six Months Ended

(in thousands, June 30, March 31, June 30, June 30, June 30, except pershare amounts) 2021 2021 2020 2021 2020

Revenues $ 447,506 $ 354,193 $ 181,555 $ 801,699 $ 390,435

Costs and expenses:

Cost of goods 177,779 169,302 149,836 347,081 321,882 sold

Selling,general and 19,512 16,758 16,811 36,270 31,018 administrativeexpenses

197,291 186,060 166,647 383,351 352,900

Operating 250,215 168,133 14,908 418,348 37,535 income

Interest (8,199 ) (3,574 ) (8,339 ) (11,773 ) (12,037 )expense, net

Pensionsettlement - - - - (42,988 )charge

Non-operatingpension andother (3,271 ) (3,414 ) (3,478 ) (6,685 ) (7,113 )postretirementemployeebenefit costs

Income (loss)before income 238,745 161,145 3,091 399,890 (24,603 )taxes

Income taxes (50,840 ) (30,039 ) (453 ) (80,879 ) 10,409

Net income $ 187,905 $ 131,106 $ 2,638 $ 319,011 $ (14,194 )(loss)



Net income(loss) per share:

Basic $ 2.79 $ 1.95 $ 0.04 $ 4.74 $ (0.21 )

Diluted $ 2.77 $ 1.94 $ 0.04 $ 4.71 $ (0.21 )

Dividends per $ 0.41 $ 0.41 $ 0.40 $ 0.82 $ 0.80 share

Weighted-average shares outstanding:

Basic 67,316 67,207 67,176 67,265 67,321

Diluted 67,732 67,607 67,359 67,664 67,321



PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

(in thousands, except per share amounts)

June 30, 2021

December 31, 2020

ASSETS

Current assets:

Cash and cash equivalents

$

512,030

$

252,340

Customer receivables, net

56,694

26,606

Inventories, net

73,074

62,036

Other current assets

24,475

16,136

Total current assets

666,273

357,118

Property, plant and equipment, net

291,550

288,544

Investment in real estate held for development and sale

66,553

72,355

Timber and timberlands, net

1,580,827

1,600,061

Intangible assets, net

15,880

16,270

Other long-term assets

61,715

46,717

Total assets

$

2,682,798

$

2,381,065

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

97,462

$

93,279

Current portion of long-term debt

42,991

39,981

Current portion of pension and other postretirement employee benefits

6,574

6,574

Total current liabilities

147,027

139,834

Long-term debt

714,870

717,366

Pension and other postretirement employee benefits

128,251

128,807

Deferred tax liabilities, net

22,191

17,740

Other long-term obligations

58,670

72,365

Total liabilities

1,071,009

1,076,112

Commitments and contingencies

Stockholders' equity:

Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 67,045 and 66,876 shares

67,045

66,876

Additional paid-in capital

1,678,661

1,674,576

Accumulated deficit

(51,670

)

(315,510

)

Accumulated other comprehensive loss

(82,247

)

(120,989

)

Total stockholders' equity

1,611,789

1,304,953

Total liabilities and stockholders' equity

$

2,682,798

$

2,381,065

PotlatchDeltic Corporation

Condensed Consolidated Balance Sheets

Unaudited

(in thousands, except per share amounts) June 30, December 2021 31, 2020

ASSETS

Current assets:

Cash and cash equivalents $ 512,030 $ 252,340

Customer receivables, net 56,694 26,606

Inventories, net 73,074 62,036

Other current assets 24,475 16,136

Total current assets 666,273 357,118

Property, plant and equipment, net 291,550 288,544

Investment in real estate held for development 66,553 72,355 and sale

Timber and timberlands, net 1,580,827 1,600,061

Intangible assets, net 15,880 16,270

Other long-term assets 61,715 46,717

Total assets $ 2,682,798 $ 2,381,065



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities $ 97,462 $ 93,279

Current portion of long-term debt 42,991 39,981

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

Total current liabilities 147,027 139,834

Long-term debt 714,870 717,366

Pension and other postretirement employee 128,251 128,807 benefits

Deferred tax liabilities, net 22,191 17,740

Other long-term obligations 58,670 72,365

Total liabilities 1,071,009 1,076,112

Commitments and contingencies

Stockholders' equity:

Common stock, $1 par value, authorized 100,000shares, issued and outstanding 67,045 and 67,045 66,876 66,876 shares

Additional paid-in capital 1,678,661 1,674,576

Accumulated deficit (51,670 ) (315,510 )

Accumulated other comprehensive loss (82,247 ) (120,989 )

Total stockholders' equity 1,611,789 1,304,953

Total liabilities and stockholders' equity $ 2,682,798 $ 2,381,065



PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

Three Months Ended

Six Months Ended

(in thousands)

June 30, 2021

March 31, 2021

June 30, 2020

June 30, 2021

June 30,

2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

$

187,905

$

131,106

$

2,638

$

319,011

$

(14,194

)

Adjustments:

Depreciation, depletion and amortization

17,432

18,399

18,171

35,831

37,215

Basis of real estate sold

7,213

8,823

2,693

16,036

9,191

Change in deferred taxes

(928

)

1,490

(1,466

)

562

(13,849

)

Pension and other postretirement employee benefits

5,484

5,627

5,765

11,111

11,833

Pension settlement charge

-

-

-

-

42,988

Equity-based compensation expense

2,140

1,930

1,980

4,070

3,865

Other, net

92

(387

)

(414

)

(295

)

(177

)

Change in working capital and operating-related activities, net

(43,867

)

6,713

13,840

(37,154

)

16,397

Real estate development expenditures

(1,684

)

(2,315

)

(2,109

)

(3,999

)

(2,487

)

Funding of pension and other postretirement employee benefits

(2,412

)

(1,421

)

(1,293

)

(3,833

)

(2,839

)

Net cash provided by operating activities

171,375

169,965

39,805

341,340

87,943

CASH FLOWS FROM INVESTING ACTIVITIES

Property, plant and equipment additions

(8,181

)

(7,762

)

(5,256

)

(15,943

)

(10,295

)

Timberlands reforestation and roads

(3,998

)

(3,956

)

(3,466

)

(7,954

)

(7,776

)

Acquisition of timber and timberlands

(2,192

)

-

(540

)

(2,192

)

(4,730

)

Proceeds on sale of facility

-

-

-

-

1,000

Other, net

446

189

608

635

2,113

Net cash used in investing activities

(13,925

)

(11,529

)

(8,654

)

(25,454

)

(19,688

)

CASH FLOWS FROM FINANCING ACTIVITIES

Distributions to common stockholders

(27,489

)

(27,484

)

(26,744

)

(54,973

)

(53,685

)

Repurchase of common stock

-

-

(3,009

)

-

(15,364

)

Other, net

(632

)

(591

)

(284

)

(1,223

)

(526

)

Net cash used in financing activities

(28,121

)

(28,075

)

(30,037

)

(56,196

)

(69,575

)

Change in cash, cash equivalents and restricted cash

129,329

130,361

1,114

259,690

(1,320

)

Cash, cash equivalents and restricted cash, beginning

382,701

252,340

81,820

252,340

84,254

Cash, cash equivalents and restricted cash, ending

$

512,030

$

382,701

$

82,934

$

512,030

$

82,934

PotlatchDeltic Corporation

Condensed Consolidated Statements of Cash Flows

Unaudited

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30, June 30,(in thousands) 2021 2021 2020 2021 2020

CASH FLOWS FROMOPERATING ACTIVITIES

Net income (loss) $ 187,905 $ 131,106 $ 2,638 $ 319,011 $ (14,194 )

Adjustments:

Depreciation,depletion and 17,432 18,399 18,171 35,831 37,215 amortization

Basis of real 7,213 8,823 2,693 16,036 9,191 estate sold

Change in (928 ) 1,490 (1,466 ) 562 (13,849 )deferred taxes

Pension and otherpostretirement 5,484 5,627 5,765 11,111 11,833 employee benefits

Pension - - - - 42,988 settlement charge

Equity-basedcompensation 2,140 1,930 1,980 4,070 3,865 expense

Other, net 92 (387 ) (414 ) (295 ) (177 )

Change in workingcapital and (43,867 ) 6,713 13,840 (37,154 ) 16,397 operating-relatedactivities, net

Real estatedevelopment (1,684 ) (2,315 ) (2,109 ) (3,999 ) (2,487 )expenditures

Funding ofpension and other (2,412 ) (1,421 ) (1,293 ) (3,833 ) (2,839 )postretirementemployee benefits

Net cash providedby operating 171,375 169,965 39,805 341,340 87,943 activities



CASH FLOWS FROMINVESTING ACTIVITIES

Property, plantand equipment (8,181 ) (7,762 ) (5,256 ) (15,943 ) (10,295 )additions

Timberlandsreforestation and (3,998 ) (3,956 ) (3,466 ) (7,954 ) (7,776 )roads

Acquisition oftimber and (2,192 ) - (540 ) (2,192 ) (4,730 )timberlands

Proceeds on sale - - - - 1,000 of facility

Other, net 446 189 608 635 2,113

Net cash used ininvesting (13,925 ) (11,529 ) (8,654 ) (25,454 ) (19,688 )activities



CASH FLOWS FROMFINANCING ACTIVITIES

Distributions tocommon (27,489 ) (27,484 ) (26,744 ) (54,973 ) (53,685 )stockholders

Repurchase of - - (3,009 ) - (15,364 )common stock

Other, net (632 ) (591 ) (284 ) (1,223 ) (526 )

Net cash used infinancing (28,121 ) (28,075 ) (30,037 ) (56,196 ) (69,575 )activities

Change in cash,cash equivalents 129,329 130,361 1,114 259,690 (1,320 )and restrictedcash

Cash, cashequivalents and 382,701 252,340 81,820 252,340 84,254 restricted cash,beginning

Cash, cashequivalents and $ 512,030 $ 382,701 $ 82,934 $ 512,030 $ 82,934 restricted cash,ending



PotlatchDeltic Corporation

Segment Information

Unaudited

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(in thousands)

2021

2021

2020

2021

2020

Revenues

Timberlands

$

121,216

$

111,916

$

67,345

$

233,132

$

149,770

Wood Products

357,673

269,296

126,216

626,969

271,216

Real Estate

15,998

20,313

13,105

36,311

24,074

494,887

401,525

206,666

896,412

445,060

Intersegment Timberlands revenues

(47,381

)

(47,332

)

(25,111

)

(94,713

)

(54,625

)

Consolidated revenues

$

447,506

$

354,193

$

181,555

$

801,699

$

390,435

Adjusted EBITDDA1

Timberlands

$

77,259

$

67,858

$

25,659

$

145,117

$

60,641

Wood Products

204,533

125,555

10,907

330,088

24,136

Real Estate

11,788

16,593

9,256

28,381

16,596

Corporate

(12,822

)

(10,710

)

(10,534

)

(23,532

)

(19,206

)

Eliminations and adjustments

(5,774

)

(4,310

)

85

(10,084

)

777

Total Adjusted EBITDDA

274,984

194,986

35,373

469,970

82,944

Interest expense, net

(8,199

)

(3,574

)

(8,339

)

(11,773

)

(12,037

)

Depreciation, depletion and amortization

(17,029

)

(17,996

)

(17,765

)

(35,025

)

(36,403

)

Basis of real estate sold

(7,213

)

(8,823

)

(2,693

)

(16,036

)

(9,191

)

Pension settlement charge

-

-

-

-

(42,988

)

Non-operating pension and other postretirement employee benefits

(3,271

)

(3,414

)

(3,478

)

(6,685

)

(7,113

)

(Loss) gain on disposal of fixed assets

(527

)

(34

)

(7

)

(561

)

185

Income (loss) before income taxes

$

238,745

$

161,145

$

3,091

$

399,890

$

(24,603

)

Depreciation, depletion and amortization

Timberlands

$

10,482

$

11,417

$

11,566

$

21,899

$

24,157

Wood Products

6,179

6,203

5,798

12,382

11,428

Real Estate

160

155

156

315

316

Corporate

208

221

245

429

502

17,029

17,996

17,765

35,025

36,403

Bond discounts and deferred loan fees2

403

403

406

806

812

Total depreciation, depletion and amortization

$

17,432

$

18,399

$

18,171

$

35,831

$

37,215

Basis of real estate sold

Real Estate

$

7,219

$

8,829

$

3,212

$

16,048

$

9,716

Eliminations and adjustments

(6

)

(6

)

(519

)

(12

)

(525

)

Total basis of real estate sold

$

7,213

$

8,823

$

2,693

$

16,036

$

9,191

PotlatchDeltic Corporation

Segment Information

Unaudited

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30, June 30,

(in thousands) 2021 2021 2020 2021 2020

Revenues

Timberlands $ 121,216 $ 111,916 $ 67,345 $ 233,132 $ 149,770

Wood Products 357,673 269,296 126,216 626,969 271,216

Real Estate 15,998 20,313 13,105 36,311 24,074

494,887 401,525 206,666 896,412 445,060

IntersegmentTimberlands (47,381 ) (47,332 ) (25,111 ) (94,713 ) (54,625 )revenues

Consolidated $ 447,506 $ 354,193 $ 181,555 $ 801,699 $ 390,435 revenues



Adjusted EBITDDA^1

Timberlands $ 77,259 $ 67,858 $ 25,659 $ 145,117 $ 60,641

Wood Products 204,533 125,555 10,907 330,088 24,136

Real Estate 11,788 16,593 9,256 28,381 16,596

Corporate (12,822 ) (10,710 ) (10,534 ) (23,532 ) (19,206 )

Eliminationsand (5,774 ) (4,310 ) 85 (10,084 ) 777 adjustments

Total Adjusted 274,984 194,986 35,373 469,970 82,944 EBITDDA

Interest (8,199 ) (3,574 ) (8,339 ) (11,773 ) (12,037 )expense, net

Depreciation,depletion and (17,029 ) (17,996 ) (17,765 ) (35,025 ) (36,403 )amortization

Basis of real (7,213 ) (8,823 ) (2,693 ) (16,036 ) (9,191 )estate sold

Pensionsettlement - - - - (42,988 )charge

Non-operatingpension andother (3,271 ) (3,414 ) (3,478 ) (6,685 ) (7,113 )postretirementemployeebenefits

(Loss) gain ondisposal of (527 ) (34 ) (7 ) (561 ) 185 fixed assets

Income (loss)before income $ 238,745 $ 161,145 $ 3,091 $ 399,890 $ (24,603 )taxes



Depreciation,depletion and amortization

Timberlands $ 10,482 $ 11,417 $ 11,566 $ 21,899 $ 24,157

Wood Products 6,179 6,203 5,798 12,382 11,428

Real Estate 160 155 156 315 316

Corporate 208 221 245 429 502

17,029 17,996 17,765 35,025 36,403

Bond discountsand deferred 403 403 406 806 812 loan fees^2

Totaldepreciation, $ 17,432 $ 18,399 $ 18,171 $ 35,831 $ 37,215 depletion andamortization



Basis of real estate sold

Real Estate $ 7,219 $ 8,829 $ 3,212 $ 16,048 $ 9,716

Eliminationsand (6 ) (6 ) (519 ) (12 ) (525 )adjustments

Total basis ofreal estate $ 7,213 $ 8,823 $ 2,693 $ 16,036 $ 9,191 sold

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

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

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

^ Bond discounts and deferred loan fees are included in interest expense, net2 in the Condensed Consolidated Statements of Operations.

PotlatchDeltic Corporation

Reconciliations

Unaudited

Three Months Ended

Six Months Ended

(in thousands, except per share amount)

June 30,

March 31,

June 30,

June 30,

June 30,

2021

2021

2020

2021

2020

Total Adjusted EBITDDA

Net income (loss) (GAAP)

$

187,905

$

131,106

$

2,638

$

319,011

$

(14,194

)

Interest expense, net

8,199

3,574

8,339

11,773

12,037

Income taxes

50,840

30,039

453

80,879

(10,409

)

Depreciation, depletion and amortization

17,029

17,996

17,765

35,025

36,403

Basis of real estate sold

7,213

8,823

2,693

16,036

9,191

Pension settlement charge

-

-

-

-

42,988

Non-operating pension and other postretirement benefit costs

3,271

3,414

3,478

6,685

7,113

Loss (gain) on disposal of fixed assets

527

34

7

561

(185

)

Total Adjusted EBITDDA

$

274,984

$

194,986

$

35,373

$

469,970

$

82,944

Adjusted net income

Net income (loss) (GAAP)

$

187,905

$

131,106

$

2,638

$

319,011

$

(14,194

)

Pension settlement charge, after tax

-

-

-

-

31,811

Adjusted net income

$

187,905

$

131,106

$

2,638

$

319,011

$

17,617

Adjusted net income per diluted share

Net income (loss) per diluted share (GAAP)

$

2.77

$

1.94

$

0.04

$

4.71

$

(0.21

)

Pension settlement charge, after tax

-

-

-

-

0.47

Adjusted net income per diluted share

$

2.77

$

1.94

$

0.04

$

4.71

$

0.26

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005698/en/

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