PotlatchDeltic Corporation (PCH) Bundle
A Brief History of PotlatchDeltic Corporation
PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) specializing in sustainable forest management and timberland operations. As of 2024, it owns over 2.1 million acres of timberlands across Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi, and South Carolina.
Financial Performance Overview
For the third quarter of 2024, PotlatchDeltic reported:
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $255.1 million | $320.7 million | $265.5 million |
| Net Income | $3.3 million | $13.7 million | $23.7 million |
| Net Income per Diluted Share | $0.04 | $0.17 | $0.29 |
| Total Adjusted EBITDDA | $45.9 million | $103.2 million | $56.3 million |
| Dividends per Share | $0.45 | $0.45 | $0.45 |
Segment Performance
In Q3 2024, the performance across PotlatchDeltic's segments was as follows:
| Segment | Revenues (in millions) | Adjusted EBITDDA (in millions) |
|---|---|---|
| Timberlands | $105.1 | $35.8 |
| Wood Products | $139.4 | $(9.6) |
| Real Estate | $38.7 | $31.8 |
Recent Developments
PotlatchDeltic recently completed the expansion and modernization of its Waldo, Arkansas sawmill, which is expected to generate an additional $25 million of Adjusted EBITDDA annually under a mid-cycle sales environment. As of September 30, 2024, the company maintained a strong liquidity position of $460 million.
Cash Flow Analysis
For the three months ended September 30, 2024, PotlatchDeltic's cash flow from operations, investing, and financing activities were as follows:
| Cash Flow Activities | Q3 2024 (in thousands) |
|---|---|
| Net Cash from Operating Activities | $26,453 |
| Net Cash from Investing Activities | $(25,729) |
| Net Cash from Financing Activities | $(39,937) |
Balance Sheet Insights
As of September 30, 2024, PotlatchDeltic's balance sheet reflected the following key metrics:
| Balance Sheet Metrics | Amount (in thousands) |
|---|---|
| Total Assets | $3,307,104 |
| Total Liabilities | $1,255,079 |
| Total Stockholders' Equity | $2,052,025 |
These figures illustrate PotlatchDeltic's financial stability and ongoing commitment to managing its resources effectively while pursuing growth opportunities in the timberland and real estate sectors.
A Who Owns PotlatchDeltic Corporation (PCH)
Ownership Structure
As of 2024, PotlatchDeltic Corporation (Nasdaq: PCH) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 60.2% | 47,527,387 |
| Mutual Funds | 25.1% | 19,582,224 |
| Insider Ownership | 3.5% | 2,700,000 |
| Individual Investors | 11.2% | 8,706,000 |
Major Institutional Shareholders
The following institutional investors hold significant stakes in PotlatchDeltic Corporation:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 12.5% | 9,712,000 |
| BlackRock, Inc. | 10.8% | 8,374,000 |
| State Street Corporation | 8.3% | 6,393,000 |
| Wellington Management Group LLP | 6.2% | 4,765,000 |
Recent Stock Performance
As of Q3 2024, PotlatchDeltic Corporation reported a net income of $3.3 million, with revenues of $255.1 million. The diluted earnings per share (EPS) stood at $0.04. For context, the company had a net income of $23.7 million and an EPS of $0.29 in the same quarter of 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $3.3 million | $23.7 million |
| Revenues | $255.1 million | $265.5 million |
| Diluted EPS | $0.04 | $0.29 |
Dividends and Share Repurchase Program
PotlatchDeltic Corporation has maintained a consistent dividend policy, declaring dividends of $0.45 per share in Q3 2024, which matches the dividends declared in the previous year.
- Dividends per share: $0.45
- Total dividends paid in 2024: $106.9 million
- Shares repurchased in 2024: 57,000 shares for $2.4 million
Market Capitalization
As of September 30, 2024, the market capitalization of PotlatchDeltic Corporation was approximately $1.1 billion, reflecting its position as a significant player in the timberland and real estate investment trust sectors.
| Metric | Value |
|---|---|
| Market Capitalization | $1.1 billion |
| Total Assets | $3.3 billion |
| Total Liabilities | $1.3 billion |
Conclusion on Ownership Dynamics
PotlatchDeltic Corporation's ownership is characterized by a robust institutional presence, a loyal shareholder base, and a commitment to returning capital to shareholders through dividends and share repurchases. The company's financial performance in 2024 reflects both challenges and opportunities in the timberland and lumber markets.
PotlatchDeltic Corporation (PCH) Mission Statement
PotlatchDeltic Corporation aims to be the leading provider of sustainable forest products while prioritizing environmental stewardship and community engagement. The company focuses on maximizing the long-term value of its timberland resources and delivering superior returns to its shareholders.
Financial Overview
As of the third quarter of 2024, PotlatchDeltic reported the following financial highlights:
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues ($ in millions) | $255.1 | $320.7 | $265.5 |
| Net Income ($ in millions) | $3.3 | $13.7 | $23.7 |
| Net Income per Diluted Share | $0.04 | $0.17 | $0.29 |
| Adjusted Net Income ($ in millions) | $3.3 | $13.7 | $11.4 |
| Total Adjusted EBITDDA ($ in millions) | $45.9 | $103.2 | $56.3 |
| Total Adjusted EBITDDA Margin | 18.0% | 32.2% | 21.2% |
| Dividends per Share | $0.45 | $0.45 | $0.45 |
| Net Cash from Operations ($ in millions) | $26.5 | $100.6 | $41.0 |
| Cash and Cash Equivalents ($ in millions) | $161.1 | $199.7 | $302.8 |
Operational Highlights
In Q3 2024, PotlatchDeltic completed significant operational milestones, including:
- Completion of the Waldo, Arkansas sawmill expansion and modernization project, expected to generate an additional $25 million of Adjusted EBITDDA annually under a mid-cycle sales environment.
- Repurchase of 57,000 shares for $2.4 million, equating to $42 per share.
- Strong liquidity maintained at $460 million as of September 30, 2024.
Segment Performance
The performance of PotlatchDeltic's segments in Q3 2024 is summarized below:
| Segment | Q3 2024 Revenues ($ in millions) | Q3 2024 Adjusted EBITDDA ($ in millions) |
|---|---|---|
| Timberlands | $105.1 | $35.8 |
| Wood Products | $139.4 | $(9.6) |
| Real Estate | $38.7 | $31.8 |
Market Outlook
PotlatchDeltic anticipates stabilization in lumber markets as supply and demand align. The company is optimistic about potential reductions in interest rates contributing positively to the housing and remodeling markets, thereby enhancing demand for its products.
How PotlatchDeltic Corporation (PCH) Works
Company Overview
PotlatchDeltic Corporation (PCH) is a leading Real Estate Investment Trust (REIT) that owns more than 2.1 million acres of timberlands across various states including Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi, and South Carolina. The company operates six sawmills, an industrial-grade plywood mill, and engages in residential and commercial real estate development.
Financial Performance
As of Q3 2024, PotlatchDeltic reported revenues of $255.1 million, a decrease from $320.7 million in Q2 2024 and $265.5 million in Q3 2023. The net income for Q3 2024 was $3.3 million, compared to $13.7 million in Q2 2024 and $23.7 million in Q3 2023.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues ($ in millions) | $255.1 | $320.7 | $265.5 |
| Net Income ($ in millions) | $3.3 | $13.7 | $23.7 |
| Net Income per Diluted Share | $0.04 | $0.17 | $0.29 |
| Adjusted Net Income ($ in millions) | $3.3 | $13.7 | $11.4 |
| Total Adjusted EBITDDA ($ in millions) | $45.9 | $103.2 | $56.3 |
| Total Adjusted EBITDDA Margin | 18.0% | 32.2% | 21.2% |
| Dividends per Share | $0.45 | $0.45 | $0.45 |
| Net Cash from Operations ($ in millions) | $26.5 | $100.6 | $41.0 |
| Cash and Cash Equivalents ($ in millions) | $161.1 | $199.7 | $302.8 |
Operational Segments
PotlatchDeltic's operations are categorized into three main segments: Timberlands, Wood Products, and Real Estate.
Timberlands
In Q3 2024, Timberlands generated revenues of $105.1 million, an increase from $98.8 million in Q2 2024. The Adjusted EBITDDA for this segment was $35.8 million, up from $34.2 million in the previous quarter.
| Timberlands Financial Metrics | Q3 2024 | Q2 2024 |
|---|---|---|
| Revenues ($ in millions) | $105.1 | $98.8 |
| Adjusted EBITDDA ($ in millions) | $35.8 | $34.2 |
Wood Products
The Wood Products segment reported revenues of $139.4 million in Q3 2024, down from $153.6 million in Q2 2024. The Adjusted EBITDDA was negative at $(9.6) million, worsening from $(6.8) million in the prior quarter.
| Wood Products Financial Metrics | Q3 2024 | Q2 2024 |
|---|---|---|
| Revenues ($ in millions) | $139.4 | $153.6 |
| Adjusted EBITDDA ($ in millions) | $(9.6) | $(6.8) |
Real Estate
The Real Estate segment reported revenues of $38.7 million in Q3 2024, a significant decline from $95.7 million in Q2 2024. Adjusted EBITDDA for this segment was $31.8 million, down from $89.6 million in the previous quarter.
| Real Estate Financial Metrics | Q3 2024 | Q2 2024 |
|---|---|---|
| Revenues ($ in millions) | $38.7 | $95.7 |
| Adjusted EBITDDA ($ in millions) | $31.8 | $89.6 |
Balance Sheet Highlights
As of September 30, 2024, PotlatchDeltic's total assets were valued at $3.307 billion, with total liabilities amounting to $1.255 billion. The stockholders' equity stood at $2.052 billion.
| Balance Sheet Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets ($ in billions) | $3.307 | $3.431 |
| Total Liabilities ($ in billions) | $1.255 | $1.260 |
| Total Stockholders' Equity ($ in billions) | $2.052 | $2.171 |
Cash Flow Analysis
For the three months ended September 30, 2024, PotlatchDeltic generated net cash from operating activities of $26.5 million, compared to $100.6 million in the previous quarter.
| Cash Flow Metrics | Q3 2024 | Q2 2024 |
|---|---|---|
| Net Cash from Operating Activities ($ in millions) | $26.5 | $100.6 |
| Net Cash from Investing Activities ($ in millions) | $(25.7) | $(19.4) |
| Net Cash from Financing Activities ($ in millions) | $(39.9) | $(61.0) |
Recent Developments
PotlatchDeltic completed the construction of the Waldo, Arkansas sawmill expansion and modernization project, which is expected to generate an additional $25 million of Adjusted EBITDDA annually under a mid-cycle sales environment. The company repurchased 57,000 shares for $2.4 million during Q3 2024.
Market Outlook
The company anticipates stabilization in lumber markets, driven by aligning supply and demand dynamics. Reductions in interest rates are expected to boost the housing and repair markets, positively impacting demand for PotlatchDeltic's products.
How PotlatchDeltic Corporation (PCH) Makes Money
Business Segments
PotlatchDeltic Corporation operates through three primary segments: Timberlands, Wood Products, and Real Estate. Each segment contributes to the company's overall revenue through distinct operations.
Timberlands
The Timberlands segment is a key revenue driver, owning over 2.1 million acres of timberland across several states. In Q3 2024, Timberlands generated revenues of $105.1 million, with an Adjusted EBITDDA of $35.8 million. This segment benefits from timber sales, with Northern sawlog prices experiencing fluctuations due to market conditions.
| Timberlands Financials (Q3 2024) | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $105.1 million | $98.8 million | $109.8 million |
| Adjusted EBITDDA | $35.8 million | $34.2 million | $42.1 million |
Wood Products
The Wood Products segment includes the operation of sawmills and plywood production. In Q3 2024, this segment recorded revenues of $139.4 million, but faced challenges, resulting in an Adjusted EBITDDA loss of $9.6 million. The average lumber prices fell to $402 per thousand board feet, impacting profitability.
| Wood Products Financials (Q3 2024) | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $139.4 million | $153.6 million | $165.1 million |
| Adjusted EBITDDA | $(9.6) million | $(6.8) million | $15.0 million |
Real Estate
The Real Estate segment involves residential and commercial developments as well as rural land sales. In Q3 2024, it generated revenues of $38.7 million, with an Adjusted EBITDDA of $31.8 million. The segment saw a notable decrease in revenues compared to Q2 2024, primarily due to a significant rural timberland sale in the South.
| Real Estate Financials (Q3 2024) | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $38.7 million | $95.7 million | $19.2 million |
| Adjusted EBITDDA | $31.8 million | $89.6 million | $14.2 million |
Overall Financial Performance
For Q3 2024, PotlatchDeltic reported total revenues of $255.1 million and a net income of $3.3 million. The total Adjusted EBITDDA for the quarter was $45.9 million, translating to an Adjusted EBITDDA margin of 18%.
| Overall Financials (Q3 2024) | Amount |
|---|---|
| Total Revenues | $255.1 million |
| Net Income | $3.3 million |
| Total Adjusted EBITDDA | $45.9 million |
| Adjusted EBITDDA Margin | 18% |
Capital Allocation and Investments
PotlatchDeltic continues to focus on strategic investments, including the sawmill expansion in Waldo, Arkansas, which is expected to generate an additional $25 million of Adjusted EBITDDA annually. The company maintains a strong liquidity position with $460 million available as of September 30, 2024.
Conclusion
In summary, PotlatchDeltic Corporation generates revenue through its diverse business segments, with Timberlands and Wood Products being significant contributors. The company's strategic investments and focus on operational efficiency are pivotal for its financial performance.
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Article updated on 8 Nov 2024
Resources:
- PotlatchDeltic Corporation (PCH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PotlatchDeltic Corporation (PCH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PotlatchDeltic Corporation (PCH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.