Q2 2024 Potlatchdeltic Corp Earnings Call Transcript
Key Points
- PotlatchDeltic Corp (PCH) reported a significant increase in total adjusted EBITDA to $103 million in Q2 2024, up by $73 million from Q1.
- The Timberlands division exceeded its Q2 harvest plan, generating $34 million in adjusted EBITDA due to favorable weather conditions and higher sawlog prices in Idaho.
- The Real Estate segment achieved strong financial results with $90 million in adjusted EBITDA, driven by the sale of 43,000 acres at an average of $2,000 per acre.
- The company is progressing well with its $131 million Waldo, Arkansas sawmill modernization and expansion project, which is on track for completion in Q3 2024.
- PotlatchDeltic Corp (PCH) has a robust inventory of solar option contracts, representing 27,000 acres with an estimated value of approximately $300 million, indicating strong future potential in renewable energy.
- The Wood Products segment reported an adjusted EBITDA loss of $7 million in Q2 2024, primarily due to challenging lumber market conditions and historically low prices for southern yellow pine.
- Despite strong real estate performance, the company fell short of its residential lot sales outlook in Q2 2024.
- The US housing market continues to face challenges due to elevated mortgage rates and affordability issues, impacting new single-family residential construction.
- PotlatchDeltic Corp (PCH) anticipates a decline in total adjusted EBITDA in Q3 2024 compared to Q2, driven by reduced rural real estate activity.
- The company is facing higher per unit cash processing costs, particularly associated with the ongoing modernization project at the Waldo, Arkansas sawmill.
Good morning. My name is Greg, and I will be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic Second Quarter 2024, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star and the number one on your telephone keypad.
Once again, star one. And if you'd like to withdraw your question, press star one again. I would now like to turn the call over to Mr. Wayne West, Czech Vice President and Chief Financial Officer, for opening remarks. Sir, you may proceed.
Good morning, and welcome to Potlatch Deltic's Second Quarter 2024 earnings conference call. Joining me on the call is Eric Cremers, Potlatch Deltic's President and Chief Executive Officer. This call will contain forward looking statements. Please review the warning statements in our press release on the presentation
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