PotlatchDeltic Corporation has reported net income of $65.7 million, or 97 cents per diluted share, on revenues of $287.3 million for the quarter ended September 30, 2021.
Excluding a net gain on insurance recoveries, adjusted net income was $62.4 million, or 92 cents per diluted share for the third quarter of 2021. Net income was $81.0 million, or $1.20 per diluted share, on revenues of $313.0 million for the quarter ended September 30, 2020.
PotlatchDeltic operates a sawmill in Waldo and has extensive timber and real estate interests in Arkansas. Its regional headquarters is in El Dorado.
Third Quarter 2021 Highlights
Generated Total Adjusted EBITDDA of $107.2 million and Total Adjusted EBITDDA margin of 37%
Lumber prices bottomed at a high level and have increased eight weeks in a row
Expanded strong liquidity position to $972 million as of Q3 2021
“While lumber prices declined in the third quarter, they bottomed at a high level and EBITDDA of $107 million was still an excellent quarter for the company,” said Eric Cremers, president and chief executive officer. "Looking ahead, lumber prices have continued to increase in the fourth quarter and the outlook on housing fundamentals that drive our business remains positive. Additionally, we continue to expect to pay a special dividend in December and estimate the amount will be $3 to $5 per share," said Cremers.
Third Quarter 2021 Timberlands Highlights
Timberlands Adjusted EBITDDA decreased $1.2 million from Q2 2021 record level
Northern and Southern harvest volumes increased seasonally
Northern sawlog prices decreased 22% from historically high prices
Southern sawlog prices increased 10% on wet weather constraining log supply and a higher mix of hardwood volume
Log and haul increased primarily driven by higher mix of Idaho harvest volumes
Third Quarter 2021 Wood Products Highlights
Wood Products Adjusted EBITDDA decreased $178 million from Q2 2021 levels
Average lumber price was $533 per MBF in Q3 2021, 55% lower than Q2 2021 historic prices
Log costs increased due to higher index pricing in Idaho earlier in the year
Inventory at the end of Q3 2021 was written down $6.4 million due to high indexed Idaho log costs
Third Quarter 2021 Rel Estate Highlights
Real Estate Adjusted EBITDDA decreased $2.7 million from Q2 levels
Reflects lower rural land sale closings, partially offset by an increase in residential lot sales
Sold 2,303 acres of rural land for $3,013/acre
Sold 52 residential lots at an average $81,923/lot