Q3 2024 Potlatchdeltic Corp Earnings Call Transcript
Key Points
- PotlatchDeltic Corp (PCH) reported a solid adjusted EBITDDA of $46 million for the third quarter, despite challenging lumber markets.
- The modernization and expansion project at the Waldo, Arkansas sawmill was completed on schedule and within budget, expected to increase annual capacity by 85 million board feet.
- The Real Estate segment generated $32 million in adjusted EBITDDA, with strong demand for rural properties and record average prices for residential lots in the Chenal Valley community.
- The company is making significant strides in natural climate solutions, with solar option contracts covering over 35,000 acres and a potential net present value of about $400 million.
- PotlatchDeltic Corp (PCH) maintains a strong capital allocation strategy, returning $27 million to shareholders through share repurchases year-to-date, with $98 million remaining under the repurchase program.
- The Wood Products segment reported an adjusted EBITDDA loss of $10 million, impacted by weak lumber markets and start-up costs at the Waldo sawmill.
- Lumber markets hit cyclical lows early in the third quarter, with prices only beginning to recover mid-quarter.
- The company faced challenges in the Repair and Remodel segment, with sluggish activity due to higher financing costs and low home turnover.
- Hurricane Helene caused damage to approximately 2,000 acres of timberland in Georgia, although the financial impact is expected to be minimal.
- The timberland M&A market is currently sluggish, with a lack of high-quality properties available for acquisition.
Good morning. My name is John, and I'll be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic third quarter 2024 conference call. (Operator Instructions)
I would now like to turn the call over to Mr. Wayne Wasechek, Vice President and Chief Financial Officer, for opening remarks. Sir, you may proceed.
Good morning, and welcome to PotlatchDeltic's third quarter 2024 earnings conference call.
Joining me on the call is Eric Cremers, PotlatchDeltic's President and Chief Executive Officer. This call will contain forward-looking statements. Please review the cautionary statements in our press release, on the presentation slides, and in our filings with the SEC regarding the risks associated with these forward-looking statements.
Also, please note that a reconciliation of non-GAAP measures can be found in the appendix to the presentation slides and on our website at
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