PotlatchDeltic Corporation has reported net income of $81 million, or $1.20 per diluted share, on revenues of $313.0 million for the quarter ended September 30, 2020.
Net income was $20.6 million, or $0.30 per diluted share, on revenues of $226.3 million for the quarter ended September 30, 2019.
The company has a sawmill in Waldo and extensive timberland and real estate interests in Arkansas. It has a regional headquarters in El Dorado.
Among third-quarter highlights:
Generated record quarterly Total Adjusted EBITDDA of $135.4 million and Total Adjusted EBITDDA margin of 43 percent.
Historic lumber prices drove Wood Products record quarterly Adjusted EBITDDA performance.
Timberlands set quarterly records for harvest volume and Adjusted EBITDDA.
Expanded strong liquidity position to $528 million as of Q3 2020.
“Our Timberlands and Wood Products businesses achieved record financial performance as outstanding operational execution by our employees capitalized on the historic run in lumber prices against the backdrop of a challenging COVID environment,” said Mike Covey, chairman and chief executive officer.
“Looking to the fourth quarter of 2020, our financial results will continue to benefit from high lumber prices through an extended lumber order file and lagged index pricing on our Idaho sawlogs. Additionally, we expect that our Real Estate business will finish the year very strong by closing a large Minnesota transaction. PotlatchDeltic is well positioned to take advantage of favorable industry fundamentals and our strong liquidity provides a high degree of flexibility as we seek to maximize shareholder value,” said Covey.
Timberlands Adjusted EBITDDA increased $34.1 million from Q2 levels.
Northern and Southern harvest volumes increased seasonally.
Northern sawlog prices increased 30% due primarily to higher prices on lumber-indexed volume.
Wood Products Adjusted EBITDDA increased $70.8 million from Q2 2020 levels.
Average lumber price was $637 per MBF Q3 2020, 55% higher than Q2 2020.
Lumber shipments increased 17% in Q3 2020 driven by higher production hours.
Wood Products positively impacted by plywood mill returning to normal operating level after Q2 2020 curtailment.
Real Estate Adjusted EBITDDA increased $4.1 million from Q2 2020 levels.
Sold 11,048 acres of rural land for $1,202/acre.
Sold 26 residential lots at an average $83,000/lot in Q3 2020.