- Returning $0.90 per share
supplemental dividend, resulting in $1.62 per share of total dividends based on 2022
results
- Delivering total cash return to shareholders of $1.75 billion, or 75 percent of Adjusted Funds
Available for Distribution, based on 2022 results
SEATTLE, Jan. 26,
2023 /PRNewswire/ -- Weyerhaeuser Company (NYSE:
WY) today announced that its board of directors declared a
supplemental dividend of $0.90 per share on the common
stock of the company, payable in cash on February 27, 2023, to
holders of record of such common stock as of the close of business
on February 15, 2023.
In 2022, Weyerhaeuser generated Adjusted Funds Available for
Distribution (Adjusted FAD) of more than $2.3 billion. Including the supplemental dividend
to be paid on February 27, 2023,
Weyerhaeuser is returning $1.62 per
share of dividends to shareholders based on 2022 financial results,
including:
- $534 million, or $0.72 per share, of quarterly base dividends paid
in 2022; and
- $662 million, or $0.90 per share, from the supplemental dividend
declared today.
Including $550 million of shares
repurchased during 2022, Weyerhaeuser is returning $1.75 billion in total cash to shareholders based
on 2022 results, or 75 percent of 2022 Adjusted FAD, in line with
the company's annual payout range of 75 to 80 percent of Adjusted
FAD. As of December 31, 2022, the
company had approximately $375
million of remaining capacity under the previously announced
$1 billion share repurchase program
authorized by the Weyerhaeuser board of directors in September 2021.
"We are pleased to announce the supplemental dividend associated
with our 2022 financial results," said Devin W. Stockfish,
president and chief executive officer. "With today's announcement,
we complete the second full year of our new cash return framework.
Upon payment of the supplemental dividend declared today, we will
have returned more than $3.8 billion
in total cash to shareholders based on our 2021 and 2022 results
through a combination of cash dividends and opportunistic share
repurchase, further demonstrating our commitment to returning a
significant portion of our cash flow back to shareholders and the
strong cash generation capability of our portfolio and
industry-leading operating performance."
"As we move forward in 2023," Stockfish continued, "our cash
return commitment will continue to be supported by our sustainable
quarterly base dividend, which we intend to grow by 5 percent
annually through 2025, driven by growth opportunities in our
Timberlands and Natural Climate Solutions businesses. We plan to
supplement our base dividend with an additional return of cash, as
appropriate, to achieve our targeted annual payout of 75 to 80
percent of Adjusted FAD. As demonstrated in 2021 and 2022, we have
the flexibility in our capital allocation framework to return this
additional cash either in the form of a supplemental cash dividend
or opportunistic share repurchase. We continue to believe this
framework will enhance our ability to drive long-term shareholder
value by returning meaningful and appropriate amounts of cash back
to our shareholders across a variety of market conditions."
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners
of timberlands, began operations in 1900. We own or control
approximately 11 million acres of timberlands in the U.S. and
manage additional timberlands under long-term licenses in
Canada. We manage these
timberlands on a sustainable basis in compliance with
internationally recognized forestry standards. We are also one of
the largest manufacturers of wood products in North America. Our company is a real estate
investment trust. In 2022, we generated $10.2 billion in net sales and employed
approximately 9,200 people who serve customers worldwide. Our
common stock trades on the New York Stock Exchange under the symbol
WY. Learn more at www.weyerhaeuser.com.
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES
This news release contains statements within the meaning of the
Private Securities Litigation Reform Act of 1995 concerning the
company's expectations about the amount, timing and occurrence of
future quarterly and supplemental cash dividends, and the company's
dividend framework, as well as the company's ability to drive
long-term shareholder value and its commitment to return cash to
shareholders in the form of quarterly and supplemental cash
dividends and opportunistic share repurchase. Forward-looking
statements are generally identified by words such as "annual,"
"believe," "committed," "continue," "expect,"
"opportunities," "plan," "sustainable," "targeted," "would," and
"will," and similar words and expressions referencing future events
and dates. Forward-looking statements are based on our current
expectations and assumptions, the accuracy of which are subject to
a number of risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, those identified in our 2021 Annual Report on Form
10-K, as well as those set forth from time to time in our other
public statements and reports, including reports, registration
statements, prospectuses, information statements and other filings
with the Securities and Exchange Commission.
It is not possible to predict or identify all risks and
uncertainties that might affect the accuracy of our forward-looking
statements and, consequently, our descriptions of such risks and
uncertainties should not be considered exhaustive. Forward-looking
statements speak only as of the date they are made, and we
undertake no obligation to publicly update or revise any
forward-looking statements, whether because of new information,
future events, or otherwise.
Also included in this news release are references to Adjusted
FAD, which is a non-GAAP financial measure. Adjusted FAD may not be
comparable to similarly named or captioned non-GAAP financial
measures of other companies due to potential inconsistencies in how
such measures are calculated. Adjusted FAD measures, when
presented, should not be considered in isolation from, and are not
intended to represent an alternative to, our GAAP results.
RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM
OPERATIONS
Adjusted FAD, a non-GAAP measure, is defined by Weyerhaeuser as
net cash from operations adjusted for capital expenditures and
significant non-recurring items. We reconcile Adjusted FAD to net
cash from operations, as that is the most directly comparable U.S.
GAAP measure. We believe the measure provides meaningful
supplemental information for investors about our liquidity.
The table below reconciles Adjusted FAD to net cash from
operations:
(millions)
|
|
|
2022
Full
Year
|
|
Net cash from
operations
|
|
|
$2,832
|
|
Capital
expenditures(1)
|
|
|
(468)
|
|
Adjustments to
FAD(2)
|
|
|
(37)
|
|
Adjusted
FAD
|
|
|
$2,327
|
|
(1) Includes $6 million of
capitalized interest.
(2) Adjustments to FAD include a $37
million product remediation insurance recovery received in
first quarter 2022.
For more information contact:
Analysts –
Andy Taylor, 206-539-3907
Media – Nancy Thompson,
919-861-0342
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SOURCE Weyerhaeuser Company