- Recognized a net loss of $4.6
million, resulting primarily from fees and expenses related
to the pending merger with PotlatchDeltic Corporation.
- Produced Adjusted EBITDA of $13.7
million and $24.6 million in
total revenues.
- Captured blended net timber sales pricing 10% higher year
over year driven by a 21% increase in sawtimber pricing.
- Continued to generate significant premiums over
TimberMart-South South-wide pricing averages as a result of prime
timberlands located in strong local markets.
- Generated $8.8 million in
timberland sales, accelerating timing of full-year plan.
- Acquired 1,300 acres of prime timberlands located in
southeast Alabama for $2.2 million.
ATLANTA, Aug. 4, 2022
/PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE:
CTT) today reported second quarter 2022 results.
Brian M. Davis, CatchMark's
President and CEO, said: "Second quarter results were in line with
our business plan. They reflect planned lower harvest volumes in
the U.S. South, partially offset by higher timber sales pricing,
and last year's Bandon disposition in the Pacific Northwest as well
as lower asset management fees due to last year's Triple T exit.
Net loss was attributable to fees and expenses related to the
pending PotlatchDeltic merger. We continued to achieve pricing
premiums across our prime U.S. South timberlands as compared to
market averages, in particular generating strong sawtimber pricing.
Year over year, we also completed more timberland sales as planned.
Net cash from operating activities and cash available for
distribution comfortably covered our quarterly dividend."
The timing of the declaration of a third quarter CatchMark
dividend and its payment date will depend on the timing of the
closing of the merger with PotlatchDeltic. The merger is expected
to close by the end of the third quarter.
SECOND QUARTER 2022 RESULTS
The following table summarizes the current quarter and
comparable prior year period results:
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
(in millions except
for tons and acres)
|
Three Months Ended
June 30,
|
|
Change
|
|
2022
|
|
2021
|
|
Dollars, Tons or
Acres
|
|
%
|
|
Results of
Operations
|
|
|
|
|
|
|
|
|
Revenues
|
$
24.6
|
|
$
31.9
|
|
$
(7.4)
|
|
(23) %
|
|
Net Income
(Loss)
|
$
(4.6)
|
|
$
1.8
|
|
$
(6.3)
|
|
360 %
|
|
Adjusted
EBITDA
|
$
13.7
|
|
$
17.6
|
|
$
(3.9)
|
|
(22) %
|
|
|
|
|
|
|
|
|
|
Harvest Volume
(tons)
|
399,862
|
|
528,007
|
|
(128,145)
|
|
(24) %
|
|
Acres Sold
|
5,700
|
|
4,300
|
|
1,400
|
|
29 %
|
Business Segments Overview
Harvest Operations
|
Three Months Ended
June 30,
|
|
Change
|
|
(in millions except
for prices)
|
2022
|
|
2021
|
|
$
|
|
%
|
|
Timber Sales Revenue -
Consolidated
|
$
14.7
|
|
$
20.1
|
|
$
(5.4)
|
|
(27) %
|
|
Timber Sales Revenue -
U.S. South
|
$
14.7
|
|
$
16.4
|
|
$
(1.7)
|
|
(10) %
|
|
Timber Sales Revenue -
PNW
|
$
—
|
|
$
3.7
|
|
$
(3.7)
|
|
(100) %
|
|
Harvest
EBITDA
|
$
6.9
|
|
$
9.4
|
|
$
(2.5)
|
|
(27) %
|
|
Net Timber Sales Price
- U.S. South (per ton):
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
14
|
|
$
15
|
|
$
(1)
|
|
(5) %
|
|
Sawtimber
|
$
31
|
|
$
26
|
|
$
5
|
|
21 %
|
- Timber sales revenue and Harvest EBITDA were each 27% lower
year over year as a result of lower harvest volumes.
- Overall harvest volumes were down 24% year over year due to
planned reduced harvests in the U.S. South and the 2021 sale of the
Bandon timberlands in the Pacific Northwest.
- In the U.S. South, where CatchMark now operates exclusively,
timber sales revenue of $14.7 million
was 10% lower year over year due to a planned 19% decrease in
harvest volumes, offset by 10% increase in blended net timber sales
pricing year over year.
- Sawtimber pricing increased 21% year over year while pulpwood
pricing was down 5%.
- Harvests from CatchMark's prime timberlands located exclusively
in leading mill markets across the U.S. South continued to generate
significant pricing premiums over TimberMart-South South-wide
averages during the second quarter.
- Sawtimber mix, as a percentage of total volume, increased to
41% from 39% year over year.
Real Estate
|
Three Months Ended
June 30,
|
|
Change
|
|
(in millions except
for prices)
|
2022
|
|
2021
|
|
$
|
|
%
|
|
Timberland Sales
Revenue
|
$
8.8
|
|
$
7.6
|
|
$
1.2
|
|
16 %
|
|
Real Estate
EBITDA
|
$
8.7
|
|
$
7.3
|
|
$
1.3
|
|
18 %
|
|
Average Sales Price
(per acre)
|
$
1,564
|
|
$
1,743
|
|
$
(179)
|
|
(10) %
|
Timberland Sales
- Timberland sales revenue increased 16% year over year due to
selling 1,400 more acres in second quarter 2022 than in second
quarter 2021, meeting plan targets.
- Real Estate EBITDA increased 18% as a result of higher
timberland sales revenue.
- Timberland sales price per acre at $1,564 was 10% lower than the $1,743 per-acre price achieved in second quarter
2021 due to lower productivity characteristics in the acres sold,
including a significantly lower percentage of pine
plantations.
- The margin on timberland sales increased year over year to 27%
despite the lower sales price per acre.
- Acres sold in the current quarter had a significantly lower
average merchantable timber stocking than the CatchMark portfolio
average of 39 tons per acre at the beginning of the year.
- CatchMark made no large dispositions during the quarter as the
company's capital recycling program ended in 2021.
Timberland Acquisitions
- CatchMark acquired the Big Island timberlands, comprising
approximately 1,300 high-quality acres located in Barbour County, AL for $2.2 million, or $1,653 per acre. The acquired timberlands have a
site index of 70 and comprise 82% pine plantations. The timberlands
are located within a primary haul zone near existing CatchMark mill
markets.
- During the quarter, CatchMark also agreed to acquire 870 acres
in Georgia for a total of
$2.0 million. This transaction is
expected to close in the third quarter.
Investment Management
|
Three Months Ended
June 30,
|
|
Change
|
|
(in
millions)
|
2022
|
|
2021
|
|
$
|
|
%
|
|
Asset Management Fee
Revenue
|
$
0.1
|
|
$
3.2
|
|
$
(3.1)
|
|
(97) %
|
|
Investment Management
EBITDA
|
$
0.4
|
|
$
3.3
|
|
$
(2.9)
|
|
(87) %
|
- The significant decreases in year-over-year asset management
fee revenue, down 97%, and Investment Management EBITDA, down 87%,
were due to last year's Triple T exit and the expiration of the
related transition services agreement on March 31, 2022.
- Incentive-based promotes and joint venture income continued to
be generated from Dawsonville Bluffs as the joint venture continued
to capitalize on strong demand for wetlands mitigation
credits.
- During the quarter, CatchMark recognized $0.3 million of income, $0.4 million of Adjusted EBITDA and received a
$0.3 million cash distribution from
Dawsonville Bluffs. After quarter's close, CatchMark received an
additional $0.5 million cash
distribution from the joint venture.
Capital Position and Share Repurchases
CatchMark maintained its strong balance sheet and ample
liquidity during the quarter.
- As of June 30, 2022, the company
had $33.7 million of cash on hand and
$253.6 million of borrowing capacity
remaining under its credit facilities. There were no changes to its
credit facilities during the quarter.
- Interest expense decreased $0.6
million year over year to $2.8
million, primarily due to a 32% lower weighted-average debt
outstanding balance, offset by higher weighted-average interest
rates, which the company has effectively hedged against through its
interest rate management program.
Covered Quarterly Dividend: Stockholders
received a total of $3.6 million in
dividend distributions, which were fully covered by net cash
provided by operating activities and Cash Available for
Distribution.
Share Repurchases: The company did not make
any share repurchases during the quarter and had $13.7 million remaining under its share
repurchase program as of June 30,
2022.
Conference Call
Due to the company's pending merger
with PotlatchDeltic Corporation, a second quarter 2022 earnings
call will not be held.
About CatchMark
CatchMark (NYSE: CTT) invests in prime
timberlands located in the nation's leading mill markets, seeking
to capture the highest value per acre and to generate sustainable
yields through disciplined management and superior stewardship of
its exceptional resources. Headquartered in Atlanta and focused exclusively on timberland
ownership and management, CatchMark began operations in 2007 and
owns interests in approximately 350,000 acres* of timberlands
located in the U.S. South. For more information visit
www.catchmark.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements can generally be identified by our
use of forward-looking terminology such as "may," "will," "expect,"
"intend," "anticipate," "estimate," "believe," "continue," or other
similar words. However, the absence of these or similar words or
expressions does not mean that a statement is not forward-looking.
Forward-looking statements are not guarantees of performance and
are based on certain assumptions, discuss future expectations,
describe plans and strategies, contain projections of results of
operations or of financial condition or state other forward-looking
information. Forward-looking statements in this press
release include, but are not limited to, statements about the
timing of our third quarter dividend and the expected timing of the
closing of the merger with PotlatchDeltic Corporation.
Risks and uncertainties that could cause our actual results to
differ from these forward-looking statements include, but are not
limited to, that (i) the supply of timberlands available for
acquisition that meet our investment criteria may be less than we
currently anticipate; (ii) we may be unsuccessful in winning bids
for timberland that are sold through an auction process; (iii) we
may not be able to access external sources of capital at attractive
rates or at all; (iv) potential increases in interest rates could
have a negative impact on our business; (v) timber prices may not
increase at the rate we currently anticipate or could decline,
which would negatively impact our revenues; (vi) we may not
generate the harvest volumes from our timberlands that we currently
anticipate; (vii) the demand for our timber may not increase at the
rate we currently anticipate or could decline due to changes in
general economic and business conditions in the geographic regions
where our timberlands are located, including as a result of the
COVID-19 pandemic and the measures taken as a response thereto;
(viii) a downturn in the real estate market, including decreases in
demand and valuations, may adversely impact our ability to generate
income and cash flow from sales of higher-and-better use
properties; (ix) we may not be able to make large dispositions of
timberland in capital recycling transactions at prices that are
attractive to us or at all; (x) our dividends are not guaranteed
and are subject to change; (xi) the markets for carbon
sequestration credits, wetlands mitigation banking and solar
projects are still developing and we maybe unsuccessful in
generating the revenues from environmental initiatives that we
currently expect or in the timeframe anticipated; (xii) the
conditions to completion of the merger with PotlatchDeltic
Corporation may not be satisfied on the timeline currently expected
or at all; and (xiii) the factors described in Part I, Item 1A.
Risk Factors of our Annual Report on Form 10-K for the year ended
December 31, 2021, Part II, Item 1A.
Risk Factors of our Quarterly Report on Form 10-Q for the period
ended June 30, 2022, and our other
filings with the Securities and Exchange Commission. Accordingly,
readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. We undertake no obligation to update our
forward-looking statements, except as required by
law.
Important Additional Information about the Proposed
Transaction
This communication is being made in respect of the proposed
merger transaction involving PotlatchDeltic Corporation
("PotlatchDeltic) and CatchMark Timber Trust, Inc. ("CatchMark").
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of such jurisdiction. In connection with the
proposed transaction, PotlatchDeltic has filed with the Securities
and Exchange Commission ("SEC") a Registration Statement on Form
S-4 that constitutes a draft prospectus of PotlatchDeltic and which
also includes a draft proxy statement of CatchMark. After the
Registration Statement has been updated by an amendment and
declared effective, CatchMark will mail the definitive proxy
statement/prospectus to its stockholders. The proxy
statement/prospectus related to the proposed merger will contain
important information about PotlatchDeltic, CatchMark, the proposed
transaction and related matters. Investors are urged to carefully
read the proxy statement/prospectus and other documents filed or to
be filed with the SEC (or incorporated by reference into the proxy
statement/prospectus) in connection with the proposed merger, when
available. Investors will be able to obtain free copies of
the proxy statement/prospectus and other documents through the
website maintained by the SEC at www.sec.gov. In addition,
investors will be able to obtain free copies of the proxy
statement/prospectus and other documents filed with the SEC by the
parties on PotlatchDeltic's website at www.potlatchdeltic.com
(which website is not incorporated herein by reference), for
documents filed with the SEC by PotlatchDeltic, or on CatchMark's
website at www.catchmark.com (which website is not
incorporated herein by reference), for documents filed with the SEC
by CatchMark.
Participants in the Solicitation
PotlatchDeltic and CatchMark and their respective directors and
officers and certain other members of management and employees may
be deemed to be participants in the solicitation of proxies from
stockholders of CatchMark in connection with the merger
transaction. Certain information about the directors and executive
officers of PotlatchDeltic is set forth in its Annual Report on
Form 10-K for the year ended December 31,
2021, which was filed with the SEC on February 17, 2022, and its proxy statement for
its 2022 annual meeting of stockholders, which was filed with the
SEC on March 29, 2022, and will be
contained in the proxy statement/prospectus described above when it
is filed with the SEC. Certain information about the directors and
executive officers of CatchMark is set forth in its Annual Report
on Form 10-K for the year ended December 31,
2021, which was filed with the SEC on March 3, 2022 and its proxy statement for its
2022 annual meeting of stockholders, which was filed with the SEC
on April 15, 2022, and will be
contained in the proxy statement/prospectus described above when it
is filed with the SEC. You can obtain free copies of these document
from PotlatchDeltic and CatchMark using the contact information
above.
|
CATCHMARK TIMBER TRUST, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
(in thousands,
except for per-share amounts)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Timber
sales
|
$
14,679
|
|
$
20,111
|
|
$
32,402
|
|
$
40,260
|
|
Timberland
sales
|
8,818
|
|
7,632
|
|
14,888
|
|
10,989
|
|
Asset management
fees
|
110
|
|
3,211
|
|
2,289
|
|
6,329
|
|
Other
revenues
|
952
|
|
986
|
|
1,922
|
|
2,048
|
|
24,559
|
|
31,940
|
|
51,501
|
|
59,626
|
|
Expenses
|
|
|
|
|
|
|
|
|
Contract logging and
hauling costs
|
6,277
|
|
8,825
|
|
12,618
|
|
17,556
|
|
Depletion
|
3,201
|
|
6,657
|
|
7,350
|
|
14,382
|
|
Cost of timberland
sales
|
6,475
|
|
5,641
|
|
10,812
|
|
7,796
|
|
Forestry management
expenses
|
1,498
|
|
1,707
|
|
3,123
|
|
3,594
|
|
General and
administrative expenses
|
7,650
|
|
3,094
|
|
11,619
|
|
6,694
|
|
Land rent
expense
|
106
|
|
20
|
|
186
|
|
133
|
|
Other operating
expenses
|
1,441
|
|
1,714
|
|
2,690
|
|
3,427
|
|
26,648
|
|
27,658
|
|
48,398
|
|
53,582
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
48
|
|
—
|
|
51
|
|
1
|
|
Interest
expense
|
(2,778)
|
|
(3,337)
|
|
(5,279)
|
|
(6,265)
|
|
Gain on large
dispositions
|
—
|
|
759
|
|
—
|
|
759
|
|
(2,730)
|
|
(2,578)
|
|
(5,228)
|
|
(5,505)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
unconsolidated joint venture
|
(4,819)
|
|
1,704
|
|
(2,125)
|
|
539
|
|
|
|
|
|
|
|
|
|
Income from
unconsolidated joint venture:
|
|
|
|
|
|
|
|
|
Dawsonville
Bluffs
|
260
|
|
49
|
|
750
|
|
663
|
|
Net income
(loss)
|
(4,559)
|
|
1,753
|
|
(1,375)
|
|
1,202
|
|
Net income (loss)
attributable to noncontrolling interests
|
(11)
|
|
4
|
|
(3)
|
|
3
|
|
Net income (loss)
attributable to common stockholders
|
$
(4,548)
|
|
$
1,749
|
|
$
(1,372)
|
|
$
1,199
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding — basic
|
48,522
|
|
48,421
|
|
48,501
|
|
48,398
|
|
Income (loss) per
share — basic
|
$
(0.09)
|
|
$
0.04
|
|
$
(0.03)
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding — diluted
|
48,522
|
|
48,562
|
|
48,501
|
|
48,513
|
|
Income (loss) per
share — diluted
|
$
(0.09)
|
|
$
0.04
|
|
$
(0.03)
|
|
$
0.02
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
|
|
(in thousands,
except for per-share amounts)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
33,727
|
|
$
22,963
|
|
Accounts
receivable
|
3,852
|
|
5,436
|
|
Prepaid expenses and
other assets
|
18,179
|
|
6,294
|
|
Operating lease
right-of-use asset
|
2,371
|
|
2,527
|
|
Deferred financing
costs
|
2,279
|
|
2,606
|
|
Timber
assets:
|
|
|
|
|
Timber and
timberlands, net
|
453,240
|
|
466,130
|
|
Intangible lease
assets
|
—
|
|
1
|
|
Investments in
unconsolidated joint ventures
|
1,719
|
|
1,353
|
|
Total
assets
|
$
515,367
|
|
$
507,310
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
7,143
|
|
$
3,677
|
|
Operating lease
liability
|
2,556
|
|
2,707
|
|
Other
liabilities
|
3,957
|
|
18,683
|
|
Notes payable and
lines of credit, net of deferred financing costs
|
298,478
|
|
298,247
|
|
Total
liabilities
|
312,134
|
|
323,314
|
|
|
|
|
|
Commitments and
Contingencies
|
—
|
|
—
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
Class A common stock,
$0.01 par value; 900,000 shares authorized; 49,248 and 48,888
shares issued and outstanding as of June 30, 2022 and December 31,
2021, respectively
|
492
|
|
489
|
|
Additional paid-in
capital
|
731,339
|
|
729,960
|
|
Accumulated deficit
and distributions
|
(546,127)
|
|
(537,477)
|
|
Accumulated other
comprehensive income (loss)
|
15,326
|
|
(11,217)
|
|
Total stockholders'
equity
|
201,030
|
|
181,755
|
|
Noncontrolling
Interests
|
2,203
|
|
2,241
|
|
Total
equity
|
203,233
|
|
183,996
|
|
Total liabilities and
equity
|
$
515,367
|
|
$
507,310
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
(in
thousands)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(4,559)
|
|
$
1,753
|
|
$
(1,375)
|
|
$
1,202
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depletion
|
3,201
|
|
6,657
|
|
7,350
|
|
14,382
|
|
Basis of timberland
sold, lease terminations and other
|
6,698
|
|
5,701
|
|
10,738
|
|
7,667
|
|
Stock-based
compensation expense
|
853
|
|
767
|
|
1,704
|
|
1,386
|
|
Noncash interest
expense
|
381
|
|
586
|
|
771
|
|
1,171
|
|
Noncash lease
expense
|
2
|
|
6
|
|
5
|
|
11
|
|
Other
amortization
|
29
|
|
44
|
|
59
|
|
87
|
|
Gain on large
dispositions
|
—
|
|
(759)
|
|
—
|
|
(759)
|
|
(Income) loss from
unconsolidated joint ventures
|
(260)
|
|
(49)
|
|
(750)
|
|
(663)
|
|
Operating
distributions from unconsolidated joint ventures
|
296
|
|
—
|
|
384
|
|
—
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
980
|
|
1,438
|
|
2,377
|
|
2,845
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(665)
|
|
(747)
|
|
1,397
|
|
(258)
|
|
Prepaid expenses and
other assets
|
3,181
|
|
282
|
|
3,420
|
|
497
|
|
Accounts payable and
accrued expenses
|
4,385
|
|
220
|
|
3,529
|
|
878
|
|
Other
liabilities
|
(350)
|
|
2,561
|
|
(3,401)
|
|
1,606
|
|
Net cash provided by
operating activities
|
14,172
|
|
18,460
|
|
26,208
|
|
30,052
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Timberland
acquisitions and earnest money paid
|
(2,291)
|
|
—
|
|
(2,291)
|
|
—
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(892)
|
|
(1,003)
|
|
(2,990)
|
|
(3,320)
|
|
Distributions from
unconsolidated joint ventures
|
—
|
|
266
|
|
—
|
|
266
|
|
Net proceeds from
large dispositions
|
—
|
|
7,340
|
|
—
|
|
7,340
|
|
Net cash (used in)
provided by investing activities
|
(3,183)
|
|
6,603
|
|
(5,281)
|
|
4,286
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Repayments of notes
payable
|
—
|
|
(7,295)
|
|
—
|
|
(7,295)
|
|
Financing costs
paid
|
(29)
|
|
(3)
|
|
(61)
|
|
(7)
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(980)
|
|
(1,438)
|
|
(2,377)
|
|
(2,845)
|
|
Dividends/distributions paid
|
(3,648)
|
|
(6,563)
|
|
(7,296)
|
|
(13,128)
|
|
Repurchases of common
shares
|
—
|
|
(80)
|
|
(26)
|
|
(158)
|
|
Repurchase of common
shares for minimum tax withholding
|
—
|
|
(49)
|
|
(403)
|
|
(538)
|
|
Net cash used in
financing activities
|
(4,657)
|
|
(15,428)
|
|
(10,163)
|
|
(23,971)
|
|
Net change in cash
and cash equivalents
|
6,332
|
|
9,635
|
|
10,764
|
|
10,367
|
|
Cash and cash
equivalents, beginning of period
|
27,395
|
|
12,656
|
|
22,963
|
|
11,924
|
|
Cash and cash
equivalents, end of period
|
$
33,727
|
|
$ 22,291
|
|
$ 33,727
|
|
$
22,291
|
|
CATCHMARK TIMBER
TRUT, INC. AND SUBSIDIARIES
|
|
SELECTED DATA
(UNAUDITED)
|
|
|
2022
|
|
2021
|
|
Q1
|
|
Q2
|
|
YTD
|
|
Q1
|
|
Q2
|
|
YTD
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
228
|
|
235
|
|
463
|
|
273
|
|
300
|
|
573
|
|
Sawtimber
(1)
|
241
|
|
164
|
|
405
|
|
252
|
|
228
|
|
480
|
|
Total
|
469
|
|
399
|
|
868
|
|
525
|
|
528
|
|
1,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
49 %
|
|
59 %
|
|
53 %
|
|
52 %
|
|
57 %
|
|
54 %
|
|
Sawtimber
(1)
|
51 %
|
|
41 %
|
|
47 %
|
|
48 %
|
|
43 %
|
|
46 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end Acres
('000)
|
|
|
|
|
|
|
|
|
|
|
Fee
|
352
|
|
348
|
|
348
|
|
385
|
|
375
|
|
375
|
|
Lease
|
13
|
|
—
|
|
—
|
|
15
|
|
15
|
|
15
|
|
Wholly-owned
total
|
365
|
|
348
|
|
348
|
|
400
|
|
390
|
|
390
|
|
Joint venture interests
(6)
|
—
|
|
—
|
|
—
|
|
1,081
|
|
1,080
|
|
1,080
|
|
Total
|
365
|
|
348
|
|
348
|
|
1,481
|
|
1,470
|
|
1,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
South
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
228
|
|
235
|
|
463
|
|
271
|
|
297
|
|
568
|
|
Sawtimber
(1)
|
241
|
|
164
|
|
405
|
|
205
|
|
194
|
|
399
|
|
Total
|
469
|
|
399
|
|
868
|
|
476
|
|
491
|
|
967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
49 %
|
|
59 %
|
|
53 %
|
|
57 %
|
|
61 %
|
|
59 %
|
|
Sawtimber
(1)
|
51 %
|
|
41 %
|
|
47 %
|
|
43 %
|
|
39 %
|
|
41 %
|
|
Delivered % as of total
volume
|
66 %
|
|
70 %
|
|
68 %
|
|
74 %
|
|
77 %
|
|
76 %
|
|
Stumpage % as of total
volume
|
34 %
|
|
30 %
|
|
32 %
|
|
26 %
|
|
23 %
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Timber Sales
Price ($ per ton) (2)
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
15
|
|
$
14
|
|
$
15
|
|
$
14
|
|
$
15
|
|
$
15
|
|
Sawtimber
(1)
|
$
33
|
|
$
31
|
|
$
32
|
|
$
25
|
|
$
26
|
|
$
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
Acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales ('000)
(3)
|
$
—
|
|
$
2,200
|
|
$
2,200
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Acres
acquired
|
—
|
|
1,300
|
|
1,300
|
|
—
|
|
—
|
|
—
|
|
Price per acre
(3)
|
$
—
|
|
$
1,653
|
|
$
1,653
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales
('000)
|
$
6,070
|
|
$
8,818
|
|
$
14,888
|
|
$
3,357
|
|
$
7,632
|
|
$
10,989
|
|
Acres sold
|
3,400
|
|
5,700
|
|
9,100
|
|
1,800
|
|
4,300
|
|
6,100
|
|
% of fee
acres
|
1.0 %
|
|
1.6 %
|
|
2.6 %
|
|
0.5 %
|
|
1.2 %
|
|
1.6 %
|
|
Price per acre
(4)
|
$
1,771
|
|
$
1,564
|
|
$
1,642
|
|
$
1,923
|
|
$
1,743
|
|
$
1,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large
Dispositions (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales
('000)
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
7,536
|
|
$
7,536
|
|
Acres sold
|
—
|
|
—
|
|
—
|
|
—
|
|
5,000
|
|
5,000
|
|
Price per
acre
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
1,522
|
|
$
1,522
|
|
Gain ('000)
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
759
|
|
$
759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Northwest
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons,'000)
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
—
|
|
—
|
|
—
|
|
2
|
|
3
|
|
5
|
|
Sawtimber
(1)
|
—
|
|
—
|
|
—
|
|
47
|
|
34
|
|
81
|
|
Total
|
—
|
|
—
|
|
—
|
|
49
|
|
37
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
— %
|
|
— %
|
|
— %
|
|
4 %
|
|
8 %
|
|
6 %
|
|
Sawtimber
(1)
|
— %
|
|
— %
|
|
— %
|
|
96 %
|
|
92 %
|
|
94 %
|
|
Delivered % as of total
volume
|
— %
|
|
— %
|
|
— %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Stumpage % as of total
volume
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivered Timber
Sales Price ($ per ton) (2) (7)
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
—
|
|
$
—
|
|
$
—
|
|
$
30
|
|
$
30
|
|
$
30
|
|
Sawtimber
(1)
|
$
—
|
|
$
—
|
|
$
—
|
|
$
104
|
|
$
106
|
|
$
105
|
|
|
|
(1)
|
Includes chip-n-saw and
sawtimber.
|
|
(2)
|
Prices per ton are
rounded to the nearest dollar.
|
|
(3)
|
Exclusive of
transaction costs.
|
|
(4)
|
Excludes value of
timber reservations. For the three months ended June 30, 2022 and
2021, we retained 32,000 tons and 49,000 tons of merchantable
inventory, with a sawtimber mix of 45% and 32%, respectively. For
the six months ended June 30, 2022 and 2021, we retained 50,000
tons and 59,000 tons of merchantable inventory, with a sawtimber
mix of 58% and 36%, respectively.
|
|
(5)
|
Large dispositions are
sales of blocks of timberland properties in one or several
transactions with the objective to generate proceeds to fund
capital allocation priorities. Large dispositions may or may not
have a higher or better use than timber production or result in a
price premium above the land's timber production value. Such
dispositions are infrequent in nature, are not part of core
operations, and would cause material variances in comparative
results if not reported separately.
|
|
(6)
|
Represents properties
owned by Triple T joint venture in which CatchMark owned a common
partnership interest; and Dawsonville Bluffs, LLC, a joint venture
in which CatchMark owns a 50% membership interest.
|
|
(7)
|
Delivered timber sales
price includes contract logging and hauling costs.
|
|
(8)
|
Exited the Pacific
Northwest in August 2021.
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)
|
|
(in
thousands)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net income
(loss)
|
$
(4,559)
|
|
$
1,753
|
|
$
(1,375)
|
|
$
1,202
|
|
Add:
|
|
|
|
|
|
|
|
|
Depletion
|
3,201
|
|
6,657
|
|
7,350
|
|
14,382
|
|
Interest expense
(1)
|
2,397
|
|
2,752
|
|
4,508
|
|
5,094
|
|
Amortization
(1)
|
412
|
|
636
|
|
835
|
|
1,269
|
|
Depletion,
amortization, and basis of timberland and mitigation credits sold
included in loss from unconsolidated joint venture
(2)
|
40
|
|
15
|
|
104
|
|
103
|
|
Basis of timberland
sold, lease terminations and other (3)
|
6,698
|
|
5,701
|
|
10,738
|
|
7,667
|
|
Stock-based
compensation expense
|
853
|
|
767
|
|
1,704
|
|
1,386
|
|
Gain on large
disposition (4)
|
—
|
|
(759)
|
|
—
|
|
(759)
|
|
Merger-related
costs (5)
|
4,595
|
|
—
|
|
4,595
|
|
—
|
|
Post-employment
benefits (6)
|
—
|
|
7
|
|
8
|
|
23
|
|
Other
(7)
|
36
|
|
48
|
|
52
|
|
147
|
|
Adjusted
EBITDA (8)
|
$
13,673
|
|
$
17,577
|
|
$
28,519
|
|
$
30,514
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the purpose of the
above reconciliation, amortization includes amortization of
deferred financing costs, amortization of operating lease assets
and liabilities, amortization of intangible lease assets, and
amortization of mainline road costs, which are included in either
interest expense, land rent expense, or other operating expenses in
the accompanying consolidated statements of operations. Includes
non-cash basis of timber and timberland assets written-off related
to timberland sold, terminations of timberland leases and casualty
losses.
|
|
(2)
|
Reflects our share of
depletion, amortization, and basis of timberland and mitigation
credits sold of the unconsolidated Dawsonville Bluffs joint
venture.
|
|
(3)
|
Includes non-cash basis
of timber and timberland assets written-off related to timberland
sold, terminations of timberland leases and casualty
losses.
|
|
(4)
|
Large dispositions are
sales of blocks of timberland properties in one or several
transactions with the objective to generate proceeds to fund
capital allocation priorities. Large dispositions may or may not
have a higher or better use than timber production or result in a
price premium above the land's timber production value. Such
dispositions are infrequent in nature, are not part of core
operations, and would cause material variances in comparative
results if not reported separately.
|
|
(5)
|
Reflects merger-related
legal fees, consulting fees and other professional fees required to
be expensed by GAAP that management believes do not directly
reflect the core business operations of our timberland portfolio on
an on-going basis.
|
|
(6)
|
Reflects one-time,
non-recurring post-employment benefits associated with the
retirement of our former CEO, including severance pay, payroll
taxes, professional fees, and accrued dividend
equivalents.
|
|
(7)
|
Includes certain cash
expenses paid, or reimbursement received, that management believes
do not directly reflect the core business operations of our
timberland portfolio on an on-going basis, including costs required
to be expensed by GAAP related to acquisitions, transactions, joint
ventures or new business initiatives.
|
|
(8)
|
Adjusted EBITDA is a
non-GAAP financial measure of operating performance. EBITDA is
defined by the SEC as earnings before interest, taxes, depreciation
and amortization; however, we have excluded certain other expenses
which we believe are not indicative of the ongoing operating
results of our timberland portfolio, and we refer to this measure
as Adjusted EBITDA. As such, our Adjusted EBITDA may not be
comparable to similarly titled measures reported by other
companies. Due to the significant amount of timber assets subject
to depletion, significant income (losses) from unconsolidated joint
ventures based on hypothetical liquidation book value, or HLBV, and
the significant amount of financing subject to interest and
amortization expense, management considers Adjusted EBITDA to be an
important measure of our financial performance. By providing this
non-GAAP financial measure, together with the reconciliation above,
we believe we are enhancing investors' understanding of our
business and our ongoing results of operations, as well as
assisting investors in evaluating how well we are executing our
strategic initiatives. Items excluded from Adjusted EBITDA are
significant components in understanding and assessing financial
performance. Adjusted EBITDA is a supplemental measure of operating
performance that does not represent and should not be considered in
isolation or as an alternative to, or substitute for net income,
cash flow from operations, or other financial statement data
presented in accordance with GAAP in our consolidated financial
statements as indicators of our operating performance. Adjusted
EBITDA has limitations as an analytical tool and should not be
considered in isolation or as a substitute for analysis of our
results as reported under GAAP.
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
|
ADJUSTED EBITDA BY
SEGMENT (UNAUDITED)
|
|
(in
thousands)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Timber sales
|
$
14,679
|
|
$
20,111
|
|
$
32,402
|
|
$
40,260
|
|
Other
revenue
|
952
|
|
986
|
|
1,922
|
|
2,048
|
|
(-)
Contract logging and hauling costs
|
(6,277)
|
|
(8,825)
|
|
(12,618)
|
|
(17,556)
|
|
(-)
Forestry management expenses
|
(1,498)
|
|
(1,707)
|
|
(3,123)
|
|
(3,594)
|
|
(-)
Land rent expense
|
(106)
|
|
(20)
|
|
(186)
|
|
(133)
|
|
(-)
Other operating expenses
|
(1,441)
|
|
(1,714)
|
|
(2,690)
|
|
(3,427)
|
|
(+)
Stock-based compensation
|
165
|
|
143
|
|
336
|
|
250
|
|
(+/-) Other
|
397
|
|
393
|
|
439
|
|
446
|
|
Harvest
EBITDA
|
6,871
|
|
9,367
|
|
16,482
|
|
18,294
|
|
|
|
|
|
|
|
|
|
Timberland
sales
|
8,818
|
|
7,632
|
|
14,888
|
|
10,989
|
|
(-)
Cost of timberland sales
|
(6,475)
|
|
(5,641)
|
|
(10,812)
|
|
(7,796)
|
|
(+) Basis
of timberland sold
|
6,321
|
|
5,342
|
|
10,340
|
|
7,284
|
|
Real Estate
EBITDA
|
8,664
|
|
7,333
|
|
14,416
|
|
10,477
|
|
|
|
|
|
|
|
|
|
Asset management
fees
|
110
|
|
3,211
|
|
2,289
|
|
6,329
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
300
|
|
64
|
|
854
|
|
766
|
|
Investment
Management EBITDA
|
410
|
|
3,275
|
|
3,143
|
|
7,095
|
|
|
|
|
|
|
|
|
|
Total Operating
EBITDA
|
15,945
|
|
19,975
|
|
34,041
|
|
35,866
|
|
|
|
|
|
|
|
|
|
(-) General and
administrative expenses
|
(7,650)
|
|
(3,094)
|
|
(11,619)
|
|
(6,694)
|
|
(+)
Stock-based compensation
|
688
|
|
624
|
|
1,368
|
|
1,136
|
|
(+)
Interest income
|
48
|
|
—
|
|
51
|
|
1
|
|
(+)
Merger-related costs
|
4,595
|
|
—
|
|
4,595
|
|
—
|
|
(+)
Post-employment benefits
|
—
|
|
7
|
|
8
|
|
23
|
|
(+/-)
Other
|
47
|
|
65
|
|
75
|
|
182
|
|
Corporate
EBITDA
|
(2,272)
|
|
(2,398)
|
|
(5,522)
|
|
(5,352)
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
13,673
|
|
$
17,577
|
|
$
28,519
|
|
$
30,514
|
|
|
|
(1)
|
See definition of
Adjusted EBITDA in footnote 6 to the Reconciliation of Net Income
(Loss) to Adjusted EBITDA.
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
|
CASH AVAILABLE FOR
DISTRIBUTION (UNAUDITED)
|
|
(in thousands,
except for per share data)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Cash Provided by
Operating Activities
|
$
14,172
|
|
$
18,460
|
|
$
26,208
|
|
$
30,052
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(892)
|
|
(1,003)
|
|
(2,990)
|
|
(3,320)
|
|
Working capital
change
|
(6,551)
|
|
(2,316)
|
|
(4,945)
|
|
(2,723)
|
|
Distributions from
unconsolidated joint ventures
|
—
|
|
266
|
|
—
|
|
266
|
|
Post-employment
benefits
|
—
|
|
7
|
|
8
|
|
23
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(980)
|
|
(1,438)
|
|
(2,377)
|
|
(2,845)
|
|
Other
|
36
|
|
48
|
|
52
|
|
147
|
|
Cash Available for
Distribution (1)
|
$
5,785
|
|
$
14,024
|
|
$
15,956
|
|
$
21,600
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
13,673
|
|
$
17,577
|
|
$
28,519
|
|
$
30,514
|
|
Interest
paid
|
(2,397)
|
|
(2,752)
|
|
(4,508)
|
|
(5,094)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(892)
|
|
(1,003)
|
|
(2,990)
|
|
(3,320)
|
|
Merger-related
costs
|
(4,595)
|
|
—
|
|
(4,595)
|
|
—
|
|
Distributions from
unconsolidated joint ventures
|
296
|
|
266
|
|
384
|
|
266
|
|
Adjusted EBITDA from
unconsolidated joint ventures
|
(300)
|
|
(64)
|
|
(854)
|
|
(766)
|
|
Cash Available for
Distribution (1)
|
$
5,785
|
|
$
14,024
|
|
$
15,956
|
|
$
21,600
|
|
|
|
|
|
|
|
|
|
Dividends/distributions paid
|
$
3,648
|
|
$
6,563
|
|
$
7,296
|
|
$
13,128
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding — basic
|
48,522
|
|
48,421
|
|
48,501
|
|
48,398
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.075
|
|
$
0.135
|
|
$
0.150
|
|
$
0.270
|
|
|
|
(1)
|
Cash Available for
Distribution (CAD) is a non-GAAP financial measure. It is
calculated as cash provided by operating activities, adjusted for
capital expenditures (excluding timberland acquisitions), working
capital changes, cash distributions from unconsolidated joint
ventures and certain cash expenditures that management believes do
not directly reflect the core business operations of our timberland
portfolio on an on-going basis, including costs required to be
expensed by GAAP related to acquisitions, transactions, joint
ventures or new business activities.
|
|
(2)
|
See definition of
Adjusted EBITDA in footnote 8 to the Reconciliation of Net Income
(Loss) to Adjusted EBITDA.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/catchmark-announces-second-quarter-2022-results-301600442.html
SOURCE CatchMark Timber Trust, Inc.