ATLANTA, Feb. 14, 2019 /PRNewswire/ -- CatchMark
Timber Trust, Inc. (NYSE: CTT) today reported full-year
and fourth quarter 2018 results and announced its 2019 outlook and
guidance. In addition, CatchMark declared a cash dividend of
$0.135 per share for its common
stockholders of record on February 28,
2019, payable on March 15,
2019.
Full-year 2018 performance highlights included:
- Increased total revenues by 7% to $97.9
million, compared to $91.3
million for full-year 2017.
- Incurred a net loss of $122.0
million in accordance with GAAP, compared to $13.5 million for full-year 2017, primarily due
to a $109.6 million allocated loss
from the Triple T joint venture.
- Increased Adjusted EBITDA by 19% to $49.8 million, compared to $42.0 million for full-year 2017.
- Generated gross timber sales revenue of $69.5 million, a 3% decrease from full-year 2017
due to an 8% decrease in U.S. South harvest volume—primarily the
result of management strategically deferring harvests—mitigated by
a 6% improvement in per-ton pulpwood pricing and an increase in
delivered wood sales as a percentage of total harvest from 74% in
2017 to 80% in 2018.
- Increased asset management fees from $0.1 million to $5.6
million year over year, which were primarily generated by
the Triple T joint venture.
- Produced $2.6 million in income
and received $8.5 million in
distributions from the Dawsonville Bluffs joint venture.
- Paid fully-covered dividends totaling $25.6 million, or $0.54 per share.
Notable 2018 CatchMark initiatives that contributed to
year-over-year results, improved capital structure, and supported
long-term growth objectives were:
- Investing $200 million in the
Triple T joint venture to secure interests in 1.1 million acres of
high-quality Texas timberlands
with long-term, sustainable growth potential and an expectation of
unlocking further value through greater operating efficiencies and
new tactical strategies.
- Expanding the CatchMark investment management platform through
Triple T, which generates significant asset management fees and
offers the opportunity to earn outsized returns with an
incentive-based promote.
- Diversifying assets and expanding sawtimber holdings by
entering into the Pacific Northwest through the purchase of 18,100
acres of prime Oregon timberlands
in the $89.7 million Bandon transaction.
- Recycling capital from the sale of 56,100 acres of timberlands
for $79.3 million in the Southwest
disposition to pay down debt used to complete the Bandon acquisition.
- Completing HBU land sales of approximately 8,500 acres for
$17.5 million.
- Raising $72.5 million of capital
in an equity offering to support investment initiatives and take
advantage of a robust acquisition pipeline.
- Improving liquidity by increasing total borrowing capacity by
$75 million to $643.6 million and adding a new seven-year
$140 million term loan.
- Executing $200 million of
interest rate swaps to mitigate exposure to rising interest
rates.
Jerry Barag, CatchMark's
President and CEO, said: "In meeting our guidance for the year,
CatchMark effectively demonstrated how our disciplined strategy for
assembling the highest quality timberlands and ongoing operational
excellence together can maximize cash flow through all phases of
the business cycle, including during recent record lumber market
volatility, and achieve gains from increased productivity. Our
advantages include operating in superior micro markets, executing
on our delivered wood sales strategy, and benefiting from fiber
supply agreements. Our Triple T joint venture has immediately
generated significant asset management fees, we met our timberland
sales targets, and we effectively recycled capital to improve our
overall timberland portfolio through the Bandon and Southwest transactions. We expect
these initiatives and our rigorous land management practices to
deliver increased, sustainable harvest yields as well as a
consistent dividend supported by operating cash flows for years to
come."
For fourth quarter 2018, CatchMark reported the following
operating results:
- Increased revenues to $22.9
million, compared to $22.7
million in fourth quarter 2017.
- Incurred a net loss of $38.2
million in accordance with GAAP, compared to $5.0 million in the fourth quarter 2017,
primarily due to a $32.8 million
allocated loss from the Triple T joint venture.
- Generated Adjusted EBITDA of $9.4
million, compared to $9.9
million in the fourth quarter 2017.
- Generated gross timber sales revenue of $16.3 million, a 20% decrease from fourth quarter
2017 due to a 22% decrease in harvest volume—the result of planned
harvest deferrals—mitigated by improved per-ton pulpwood and
sawtimber pricing.
- Produced $2.8 million in asset
management fees, primarily from the Triple T joint venture.
- Recycled capital from the sale of the Southwest properties and
used $79.3 million gross proceeds to
pay down debt used to fund the Pacific Northwest purchase.
- Completed timberland sales of approximately 1,300 acres for
$2.6 million.
- Paid a dividend of $0.135 per
share to stockholders of record on December
13, 2018.
Under CatchMark's $30 million
share repurchase program announced in August
2015, CatchMark repurchased 98,459 shares of common stock
for approximately $1.0 million in
open market transactions during the fourth quarter of 2018.
As of December 31, 2018, CatchMark
may repurchase up to an additional $18.7
million under the program.
Results for Full-Year and Fourth Quarter 2018
Full-Year 2018 Results
For the year ended December 31, 2018, CatchMark increased revenues
to $97.9 million from $91.3 million for the year ended December 31, 2017 due to increases in timberland
sales revenue of $2.8 million and
asset management fees of $5.5
million, which were offset by a $1.9
million decrease in timber sales revenue. Timberland sales
revenue increased to $17.5 million
for full-year 2018 from $14.8 million
during full-year 2017, a result of selling more acres at a 7%
higher average price per acre. Asset management fees increased from
$0.1 million in 2017 to $5.6 million in 2018 primarily due to
$5.5 million of asset management fees
from the Triple T joint venture. Gross timber sales revenue
decreased by $1.9 million, or 3%, due
to lower harvest volume primarily resulting from management's plan
to defer some harvests until a stronger pricing environment
materializes in future periods. The decrease was mitigated by an
increase in per-ton gross timber sales revenue from capturing
higher pulpwood pricing in strong U.S. South micro-markets and
continuing to execute our delivered wood sales strategy.
|
For the
Year Ended
December 31,
2017
|
|
Changes
attributable to:
|
|
For the Year
Ended
December 31, 2018
|
(in
thousands)
|
|
Price/Mix
|
|
Volume
(3)
|
|
Timber sales
(1)
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
37,432
|
|
|
$
|
933
|
|
|
$
|
(56)
|
|
|
$
|
38,309
|
|
Sawtimber
(2)
|
33,921
|
|
|
381
|
|
|
(3,156)
|
|
|
31,146
|
|
|
$
|
71,353
|
|
|
$
|
1,314
|
|
|
$
|
(3,212)
|
|
|
$
|
69,455
|
|
|
|
(1)
|
Timber sales are
presented on a gross basis.
|
(2)
|
Includes chip-n-saw
and sawtimber.
|
(3)
|
Changes in timber
sales revenue related to properties acquired or disposed within the
last 12 months are attributed to volume change.
|
Net loss increased to $122.0
million for the year ended December
31, 2018 from $13.5 million
for the year ended December 31, 2017
primarily due to the $109.6 million
loss allocated from the Triple T joint venture in accordance with
GAAP and a $5.1 million increase in
interest expense, offset by a $4.9
million increase in operating income.
Fourth Quarter 2018 Results
For the quarter ended
December 31, 2018, CatchMark revenues
increased to $22.9 million compared
to $22.7 million for the quarter
ended December 31, 2017, resulting
from a $1.6 million increase in
timberland sales revenue and a $2.8
million increase in asset management fees, which were offset
by a $4.1 million decrease in timber
sales. Timberland sales revenue increased due to selling more acres
at a higher per-acre price. Asset management fees increased as a
result of earning $2.8 million from
the Triple T joint venture. The decrease in timber sales resulted
from management's plan to defer some harvests until a stronger
pricing environment materializes, partially offset by capturing
higher pulpwood and, in particular, higher sawtimber pricing, at
approximately $25 per ton, from
strong micro-markets in the U.S. South.
|
Three Months
Ended
December 31,
2017
|
|
Changes
attributable to:
|
|
Three Months
Ended
December 31,
2018
|
(in
thousands)
|
|
Price/Mix
|
|
Volume
(3)
|
|
Timber sales
(1)
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
10,750
|
|
|
$
|
316
|
|
|
$
|
(2,051)
|
|
|
$
|
9,015
|
|
Sawtimber
(2)
|
9,675
|
|
|
224
|
|
|
(2,599)
|
|
|
7,300
|
|
|
$
|
20,425
|
|
|
$
|
540
|
|
|
$
|
(4,650)
|
|
|
$
|
16,315
|
|
|
|
(1)
|
Timber sales are
presented on a gross basis.
|
(2)
|
Includes chip-n-saw
and sawtimber.
|
(3)
|
Changes in timber
sales revenue related to properties acquired or disposed within the
last 12 months are attributed to volume change.
|
Net loss increased to $38.2
million for the three months ended December 31, 2018 from $5.0 million for the three months ended
December 31, 2017 primarily due to a
$32.8 million loss allocated from the
Triple T joint venture in accordance with GAAP, a $2.0 million increase in interest expense, a
$1.2 million decrease in income from
the Dawsonville Bluffs joint venture, offset by a $3.2 million increase in operating income.
2019 Outlook and Guidance
For full-year 2019,
CatchMark projects a GAAP net loss of between $102 million and $106
million, including $90 million
of losses allocated from the Triple T joint venture in accordance
with GAAP. The company anticipates its Adjusted EBITDA will be
between $52 million and $60 million, including $3
million to $5 million of
Adjusted EBITDA generated by the unconsolidated Dawsonville Bluffs
joint venture. This guidance represents a 4% to 21% increase in
Adjusted EBITDA compared to full-year 2018 primarily from
registering a full-year of Triple T asset management fees of
$11.5 million and an increase in net
timber revenue partially offset by lower year-over-year Adjusted
EBITDA from Dawsonville Bluffs due to selling fewer acres. Harvest
volumes are forecast between 2.2 million and 2.4 million tons with
an approximately 40% to 50% harvest mix component from sawlogs.
Timberland sales targets of $16
million to $18 million remain
in the range of 1% to 2% of fee acreage. The guidance does not
include potential contributions from future acquisitions or
additional joint venture investments and does not include any
potential capital recycling from dispositions.
Barag said: "Beginning in the second quarter of 2019, the
Bandon acquisition is anticipated
to help drive increased total harvest volume and improve our
sawtimber harvest mix. We expect a slight increase, almost 1%, in
South-wide harvest volumes as our healthy mill markets, fiber
supply agreements and delivered wood strategy continue to generate
consistent and predictable cash flow growth. The contribution of a
full year of Triple T asset management fees highlights the benefits
of our investment management business strategy and our timberland
sales target remains consistent with past years."
Adjusted EBITDA
The discussion below is intended to
enhance the reader's understanding of our operating performance and
ability to satisfy lender requirements. 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 (see the reconciliation table below). 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 (loss)
from unconsolidated joint ventures based on
hypothetical-liquidation-at-book-value (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. HLBV accounting is a method of
determining an investor's equity in earnings of an unconsolidated
joint venture based on a hypothetical liquidation of the underlying
joint venture at book value as of the reporting date. The HLBV
method is commonly applied to equity investments in real estate,
where cash distribution percentages vary at different points in
time and are not directly linked to an investor's ownership
percentage. By providing this non-GAAP financial measure, together
with the reconciliation below, 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. We also provide the
sources of our Adjusted EBITDA, including Harvest EBITDA, Real
Estate EBITDA, Investment Management EBITDA and
Non-Allocated/Corporate EBITDA, and a reconciliation of those
financial measures to the most directly comparable GAAP measures,
because we believe they further enhance investors' understanding.
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 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 U.S. GAAP.
Some of the limitations are:
- Adjusted EBITDA does not reflect our capital expenditures, or
our future requirements for capital expenditures;
- Adjusted EBITDA does not reflect changes in, or our interest
expense or the cash requirements necessary to service interest or
principal payments on, our debt;
- Although depletion is a non-cash charge, we will incur expenses
to replace the timber being depleted in the future, and Adjusted
EBITDA does not reflect all cash requirements for such expenses;
and
- Although HLBV income and losses are primarily hypothetical and
non-cash in nature, Adjusted EBITDA does not reflect cash income or
losses from unconsolidated joint ventures for which the HLBV method
of accounting is used to determine equity in earnings.
Due to these limitations, Adjusted EBITDA should not be
considered as a measure of discretionary cash available to us to
invest in the growth of our business. Our credit agreement contains
a minimum debt service coverage ratio based, in part, on Adjusted
EBITDA since this measure is representative of adjusted income
available for interest payments. We further believe that our
presentation of this non-GAAP financial measurement provides
information that is useful to analysts and investors because they
are important indicators of the strength of our operations and the
performance of our business.
For the year ended December 31,
2018, Adjusted EBITDA was $49.8
million, a $7.8 million
increase from the year ended December 31,
2017, primarily due to a $5.5
million increase in asset management fees, a $4.8 million increase in Adjusted EBITDA
generated by the Dawsonville Bluffs joint venture and a
$2.2 million increase in net
timberland sales, offset by a $2.3
million decrease in net timber sales and a $2.1 million increase in general and
administrative expenses.
For the three months ended December 31,
2018, Adjusted EBITDA was $9.4
million, a $0.5 million
decrease from the prior year period, primarily due to a
$2.2 million decrease in net timber
sales, a $1.6 million decrease in
Adjusted EBITDA generated by the Dawsonville Bluffs joint venture
and a $0.8 million increase in other
operating expenses, partially offset by a $2.8 million increase in asset management fees
and a $1.5 million increase from net
timberland sales.
Our reconciliation of net loss to Adjusted EBITDA for 2019
guidance, the fourth quarter and full years ended December 31, 2018 and 2017 follow:
(in
thousands)
|
2019
Guidance
|
|
Q4
2018
|
|
Q4
2017
|
|
2018
|
|
2017
|
Net loss
|
$(102,000) –
(106,000)
|
|
$(38,218)
|
|
$(5,022)
|
|
$(122,007)
|
|
$(13,510)
|
Add:
|
|
|
|
|
|
|
|
|
|
Depletion
|
31,000 –
35,000
|
|
6,028
|
|
8,524
|
|
25,912
|
|
29,035
|
Basis of timberland
sold, lease
terminations and other (1)
|
12,000
|
|
2,282
|
|
465
|
|
13,053
|
|
10,112
|
Amortization
(2)
|
—
|
|
289
|
|
309
|
|
2,821
|
|
1,270
|
Depletion,
amortization, and basis of
timberland and mitigation credits sold
included in loss from unconsolidated joint
venture (3)
|
3,000
|
|
310
|
|
737
|
|
4,195
|
|
865
|
HLBV loss from
unconsolidated joint venture (4)
|
90,000
|
|
32,795
|
|
—
|
|
109,550
|
|
—
|
Stock-based
compensation expense
|
3,000
|
|
518
|
|
761
|
|
2,689
|
|
2,786
|
Interest expense
(2)
|
19,000
|
|
4,889
|
|
2,827
|
|
13,643
|
|
10,093
|
(Gain) loss on large
dispositions (5)
|
—
|
|
390
|
|
—
|
|
390
|
|
—
|
Other
(6)
|
—
|
|
137
|
|
1,290
|
|
(460)
|
|
1,319
|
Adjusted
EBITDA
|
$52,000 –
60,000
|
|
$9,420
|
|
$9,891
|
|
$49,786
|
|
$41,970
|
|
|
(1)
|
Includes non-cash
basis of timber and timberland assets written-off related to
timberland sold, terminations of timberland leases and casualty
losses.
|
(2)
|
For the purpose of
the above reconciliation, amortization includes amortization of
deferred financing costs, 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.
|
(3)
|
Reflects our share of
depletion, amortization, and basis of timberland and mitigation
credits sold of the unconsolidated Dawsonville Bluffs Joint
Venture.
|
(4)
|
Reflects HLBV
(income) losses from the Triple T Joint Venture, which is
determined based on a hypothetical liquidation of the underlying
joint venture at book value as of the reporting date rather than a
liquidation at fair value as of a date that is more in-line with
the joint venture's expected timing for a liquidity
event.
|
(5)
|
Large dispositions
are defined as larger transactions in acreage and gross sales price
than recurring HBU sales. Large dispositions are not part of core
operations, are infrequent in nature and would cause material
variances in comparative results if not reported separately. 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.
|
(6)
|
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.
|
Conference Call/Webcast
The company will host a
conference call and live webcast at 10 a.m. ET on Friday, February 15, 2019 to discuss these
results. Investors may listen to the conference call by
dialing 1-888-347-1165 for U.S/Canada and 1-412-902-4276 for international
callers. Participants should ask to be joined into the
CatchMark call. Access to the live webcast is available at
www.catchmark.com. A replay of this webcast will be archived
on the company's website shortly after the call.
About CatchMark
CatchMark (NYSE: CTT) is a pure play
timberland REIT that strives to deliver consistent and predictable
per-share cash flow growth through disciplined acquisitions, active
management, sustainable harvests and well-timed real estate sales.
Headquartered in Atlanta and
focused exclusively on timberland ownership and management,
CatchMark began operations in 2007 and owns interests in 1.6
million acres* of timberlands located in Alabama, Florida, Georgia, North
Carolina, Oregon,
South Carolina, Tennessee and Texas. For more information, visit
www.catchmark.com.
* As of December 31, 2018
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 report include that we will be able to generate better-than
market pricing; that we expect our past initiatives and
our rigorous land management practices to deliver increased,
sustainable harvest yields and a consistent dividend well supported
by operating cash flows for years to come; that we have the
opportunity to generate outsized returns from an incentive-based
promote; that the Bandon
acquisition will be the primary driver of increased harvest volumes
and improved harvest mix; that we expect an increase in South-wide
harvest volumes; and our financial outlook and guidance for
full-year 2019 and beyond. Risks and uncertainties that
could cause our actual results to differ from these forward-looking
statements include, but are not limited to, (i) we may not
generate the harvest volumes from our timberlands that we currently
anticipate; (ii) the demand for our timber may not increase at the
rate we currently anticipate or at all due to changes in general
economic and business conditions in the geographic regions where
our timberlands are located; (iii) the cyclical nature of the real
estate market generally, including fluctuations in demand and
valuations, may adversely impact our ability to generate income and
cash flow from sales of higher-and-better use properties; (iv)
timber prices may not increase at the rate we currently anticipate
or could decline, which would negatively impact our revenues; (v)
the supply of timberlands available for acquisition that meet our
investment criteria may be less than we currently anticipate; (vi)
we may be unsuccessful in winning bids for timberland that are sold
through an auction process; (vii) we may not be able to access
external sources of capital at attractive rates or at all; (viii)
potential increases in interest rates could have a negative impact
on our business; (ix) our share repurchase program may not be
successful in improving stockholder value over the long-term; (x)
our joint venture strategy may not enable us to access non-dilutive
capital and enhance our ability to make acquisitions; (xi) we may
not be successful in effectively managing the Triple T joint
venture and the anticipated benefits of the joint venture may not
be realized, including that our asset management fee could be
deferred, we may not earn an incentive-based promote and our
investment in the joint venture may lose value; and (xii) the
factors described in Part I, Item 1A. Risk Factors of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2017, Part II, Item 1A. Risk Factors
of our Quarterly Report on Form 10-Q for the period ended
June 30, 2018, 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.
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands,
except for per-share amounts)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
Timber
sales
|
$
|
16,315
|
|
|
$
|
20,425
|
|
|
$
|
69,455
|
|
|
$
|
71,353
|
|
Timberland
sales
|
2,616
|
|
|
1,023
|
|
|
17,520
|
|
|
14,768
|
|
Asset management
fees
|
2,844
|
|
|
39
|
|
|
5,603
|
|
|
108
|
|
Other
revenues
|
1,152
|
|
|
1,235
|
|
|
5,279
|
|
|
5,066
|
|
|
22,927
|
|
|
22,722
|
|
|
97,857
|
|
|
91,295
|
|
|
|
|
|
|
|
|
|
Contract logging and
hauling costs
|
7,315
|
|
|
9,251
|
|
|
31,469
|
|
|
31,108
|
|
Depletion
|
6,028
|
|
|
8,524
|
|
|
25,912
|
|
|
29,035
|
|
Cost of timberland
sales
|
1,922
|
|
|
717
|
|
|
13,512
|
|
|
10,423
|
|
Forestry management
expenses
|
1,661
|
|
|
1,884
|
|
|
6,283
|
|
|
6,758
|
|
General and
administrative expenses
|
3,823
|
|
|
4,183
|
|
|
12,425
|
|
|
11,660
|
|
Land rent
expense
|
170
|
|
|
169
|
|
|
660
|
|
|
621
|
|
Other operating
expenses
|
2,106
|
|
|
1,276
|
|
|
6,303
|
|
|
5,264
|
|
|
23,025
|
|
|
26,004
|
|
|
96,564
|
|
|
94,869
|
|
Operating income
(loss)
|
(98)
|
|
|
(3,282)
|
|
|
1,293
|
|
|
(3,574)
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
82
|
|
|
39
|
|
|
262
|
|
|
113
|
|
Interest
expense
|
(5,130)
|
|
|
(3,086)
|
|
|
(16,255)
|
|
|
(11,187)
|
|
|
(5,048)
|
|
|
(3,047)
|
|
|
(15,993)
|
|
|
(11,074)
|
|
|
|
|
|
|
|
|
|
Net loss before
large dispositions and unconsolidated joint
ventures
|
(5,146)
|
|
|
(6,329)
|
|
|
(14,700)
|
|
|
(14,648)
|
|
Gain (loss) on large
dispositions
|
(390)
|
|
|
—
|
|
|
(390)
|
|
|
—
|
|
Net loss before
unconsolidated joint ventures
|
(5,536)
|
|
|
(6,329)
|
|
|
(15,090)
|
|
|
(14,648)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
unconsolidated joint ventures:
|
|
|
|
|
|
|
|
|
|
|
|
Triple T
|
(32,796)
|
|
|
—
|
|
|
(109,551)
|
|
|
—
|
|
Dawsonville
Bluffs
|
114
|
|
|
1,307
|
|
|
2,634
|
|
|
1,138
|
|
|
(32,682)
|
|
|
1,307
|
|
|
(106,917)
|
|
|
1,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(38,218)
|
|
|
$
|
(5,022)
|
|
|
$
|
(122,007)
|
|
|
$
|
(13,510)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic and diluted
|
49,082
|
|
|
42,574
|
|
|
47,937
|
|
|
39,751
|
|
|
|
|
|
|
|
|
|
Net loss per-share
- basic and diluted
|
$
|
(0.78)
|
|
|
$
|
(0.12)
|
|
|
$
|
(2.55)
|
|
|
$
|
(0.34)
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
(in thousands,
except for per-share amounts)
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
5,614
|
|
|
$
|
7,805
|
|
Accounts
receivable
|
7,355
|
|
|
4,575
|
|
Prepaid expenses and
other assets
|
7,369
|
|
|
5,436
|
|
Deferred financing
costs
|
327
|
|
|
403
|
|
Timber
assets:
|
|
|
|
Timber and
timberlands, net
|
687,851
|
|
|
710,246
|
|
Intangible lease
assets, less accumulated amortization of $945 and $941 as of
December 31, 2018 and 2017, respectively
|
12
|
|
|
16
|
|
Investments in
unconsolidated joint ventures
|
96,244
|
|
|
11,677
|
|
Total
assets
|
$
|
804,772
|
|
|
$
|
740,158
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
4,936
|
|
|
$
|
4,721
|
|
Other
liabilities
|
5,940
|
|
|
2,969
|
|
Notes payable and
lines of credit, less net deferred financing costs
|
472,240
|
|
|
330,088
|
|
Total
liabilities
|
483,116
|
|
|
337,778
|
|
|
|
|
|
Commitments and
Contingencies
|
—
|
|
|
—
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Class A common stock,
$0.01 par value; 900,000 shares authorized; 49,127 and
43,425 shares issued and outstanding as of December 31, 2018 and
2017,
respectively
|
492
|
|
|
434
|
|
Additional paid-in
capital
|
730,416
|
|
|
661,222
|
|
Accumulated deficit
and distributions
|
(409,260)
|
|
|
(261,652)
|
|
Accumulated other
comprehensive income
|
8
|
|
|
2,376
|
|
Total stockholders'
equity
|
321,656
|
|
|
402,380
|
|
Total liabilities and
stockholders' equity
|
$
|
804,772
|
|
|
$
|
740,158
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(38,218)
|
|
|
$
|
(5,022)
|
|
|
$
|
(122,007)
|
|
|
$
|
(13,510)
|
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depletion
|
6,028
|
|
|
8,524
|
|
|
25,912
|
|
|
29,035
|
|
Basis of timberland
sold, lease terminations and other
|
2,282
|
|
|
465
|
|
|
13,053
|
|
|
10,112
|
|
Stock-based
compensation expense
|
518
|
|
|
761
|
|
|
2,689
|
|
|
2,786
|
|
Noncash interest
expense
|
241
|
|
|
260
|
|
|
2,612
|
|
|
1,094
|
|
Other
amortization
|
50
|
|
|
49
|
|
|
210
|
|
|
176
|
|
Loss (income) from
unconsolidated joint ventures
|
32,682
|
|
|
(1,307)
|
|
|
106,917
|
|
|
(1,138)
|
|
Operating
distributions from unconsolidated Dawsonville Bluffs
joint venture
|
113
|
|
|
—
|
|
|
3,771
|
|
|
—
|
|
Loss (gain) from
large dispositions
|
390
|
|
|
—
|
|
|
390
|
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(806)
|
|
|
(203)
|
|
|
(3,449)
|
|
|
(1,208)
|
|
Prepaid expenses and
other assets
|
35
|
|
|
691
|
|
|
(260)
|
|
|
160
|
|
Accounts payable and
accrued expenses
|
(1,505)
|
|
|
(1,353)
|
|
|
122
|
|
|
279
|
|
Other
liabilities
|
(1,285)
|
|
|
(1,176)
|
|
|
(164)
|
|
|
(367)
|
|
Net cash provided by
operating activities
|
525
|
|
|
1,689
|
|
|
29,796
|
|
|
27,419
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Timberland
acquisitions and earnest money paid
|
(397)
|
|
|
(49,538)
|
|
|
(91,821)
|
|
|
(52,260)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,750)
|
|
|
(1,963)
|
|
|
(4,571)
|
|
|
(5,617)
|
|
Investment in
unconsolidated joint venture
|
—
|
|
|
—
|
|
|
(200,000)
|
|
|
(10,539)
|
|
Distributions from
unconsolidated Dawsonville Bluffs joint venture
|
(114)
|
|
|
—
|
|
|
4,744
|
|
|
—
|
|
Proceeds from large
dispositions
|
79,134
|
|
|
—
|
|
|
79,134
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
76,873
|
|
|
(51,501)
|
|
|
(212,514)
|
|
|
(68,416)
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Proceeds from note
payable
|
—
|
|
|
293,119
|
|
|
289,000
|
|
|
304,119
|
|
Repayments of note
payable
|
(79,000)
|
|
|
(292,156)
|
|
|
(148,000)
|
|
|
(292,156)
|
|
Financing costs
paid
|
(602)
|
|
|
(3,472)
|
|
|
(1,434)
|
|
|
(3,674)
|
|
Issuance of common
stock
|
—
|
|
|
56,810
|
|
|
72,450
|
|
|
56,810
|
|
Dividends paid to
common stockholders
|
(6,588)
|
|
|
(5,803)
|
|
|
(25,601)
|
|
|
(21,349)
|
|
Repurchases of common
shares under the share repurchase program
|
(1,003)
|
|
|
—
|
|
|
(1,003)
|
|
|
(1,036)
|
|
Repurchase of common
shares for minimum tax withholdings
|
—
|
|
|
—
|
|
|
(1,348)
|
|
|
(311)
|
|
Other offering costs
paid
|
86
|
|
|
(2,709)
|
|
|
(3,537)
|
|
|
(2,709)
|
|
Net cash provided by
(used in) financing activities
|
(87,107)
|
|
|
45,789
|
|
|
180,527
|
|
|
39,694
|
|
Net change in cash
and cash equivalents
|
(9,709)
|
|
|
(4,023)
|
|
|
(2,191)
|
|
|
(1,303)
|
|
Cash and cash
equivalents, beginning of period
|
15,323
|
|
|
11,828
|
|
|
7,805
|
|
|
9,108
|
|
Cash and cash
equivalents, end of period
|
$
|
5,614
|
|
|
$
|
7,805
|
|
|
$
|
5,614
|
|
|
$
|
7,805
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
SELECTED DATA
(UNAUDITED)
|
|
|
|
2018
|
|
2017
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Timber Sales
Volume ('000 tons) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
354
|
|
|
342
|
|
|
343
|
|
|
317
|
|
|
1,356
|
|
|
291
|
|
|
352
|
|
|
388
|
|
|
393
|
|
|
1,424
|
|
|
Sawtimber
|
221
|
|
|
219
|
|
|
185
|
|
|
192
|
|
|
817
|
|
|
220
|
|
|
230
|
|
|
216
|
|
|
261
|
|
|
927
|
|
|
Total
|
575
|
|
|
561
|
|
|
528
|
|
|
509
|
|
|
2,173
|
|
|
511
|
|
|
582
|
|
|
604
|
|
|
654
|
|
|
2,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivered % as of
total volume
|
83
|
%
|
|
80
|
%
|
|
78
|
%
|
|
78
|
%
|
|
80
|
%
|
|
81
|
%
|
|
72
|
%
|
|
65
|
%
|
|
77
|
%
|
|
74
|
%
|
|
Stumpage % as of
total volume
|
17
|
%
|
|
20
|
%
|
|
22
|
%
|
|
22
|
%
|
|
20
|
%
|
|
19
|
%
|
|
28
|
%
|
|
35
|
%
|
|
23
|
%
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Timber
Sales Price ($ per ton) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
14
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
13
|
|
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
Sawtimber
|
$
|
23
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
25
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Sales
('000)
|
$
|
4,252
|
|
|
$
|
6,834
|
|
|
$
|
3,818
|
|
|
$
|
2,616
|
|
|
$
|
17,520
|
|
|
$
|
5,450
|
|
|
$
|
7,953
|
|
|
$
|
342
|
|
|
$
|
1,023
|
|
|
$
|
14,768
|
|
|
Acres Sold
|
2,200
|
|
|
3,100
|
|
|
1,900
|
|
|
1,300
|
|
|
8,500
|
|
|
2,800
|
|
|
4,000
|
|
|
200
|
|
|
|
600
|
|
|
|
7,700
|
|
|
% of fee
acres
|
0.5
|
%
|
|
0.7
|
%
|
|
0.4
|
%
|
|
0.3
|
%
|
|
1.8
|
%
|
|
0.6
|
%
|
|
0.9
|
%
|
|
0.1
|
%
|
|
0.1
|
%
|
|
1.6
|
%
|
|
Price per
acre
|
$
|
1,955
|
|
|
$
|
2,199
|
|
|
$
|
1,967
|
|
|
$
|
2,064
|
|
|
$
|
2,064
|
|
|
$
|
1,930
|
|
|
$
|
1,993
|
|
|
$
|
1,468
|
|
|
$
|
1,632
|
|
|
$
|
1,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large
Dispositions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Sales
('000)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
79,301
|
|
|
$
|
79,301
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Acres Sold
|
—
|
|
|
—
|
|
|
—
|
|
|
56,100
|
|
|
56,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Price per acre
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,414
|
|
|
$
|
1,414
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Timberland Acquisitions, Exclusive of Transaction
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross acquisitions
('000)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
89,700
|
|
|
$
|
—
|
|
|
$
|
89,700
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,648
|
|
|
$
|
51,648
|
|
|
Acres
acquired
|
—
|
|
|
—
|
|
|
18,100
|
|
|
—
|
|
|
18,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,600
|
|
|
19,600
|
|
|
Price per acre
($/acre)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,956
|
|
|
$
|
—
|
|
|
$
|
4,956
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,633
|
|
|
$
|
2,633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint Ventures'
Timberland Acquisitions, Exclusive of Transaction Costs
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross acquisitions
('000)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,389,500
|
|
|
$
|
—
|
|
|
$
|
1,389,500
|
|
|
$
|
—
|
|
|
$
|
20,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,000
|
|
|
Acres acquired
(3)
|
—
|
|
|
—
|
|
|
1,099,800
|
|
|
—
|
|
|
1,099,800
|
|
|
—
|
|
|
11,000
|
|
|
—
|
|
|
—
|
|
|
11,000
|
|
|
Price per acre
($/acre)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,263
|
|
|
$
|
—
|
|
|
$
|
1,263
|
|
|
$
|
—
|
|
|
$
|
1,813
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
acres ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
|
477
|
|
|
474
|
|
|
490
|
|
|
433
|
|
|
433
|
|
|
465
|
|
|
461
|
|
|
460
|
|
|
479
|
|
|
479
|
|
|
Lease
|
31
|
|
|
30
|
|
|
30
|
|
|
30
|
|
|
30
|
|
|
32
|
|
|
31
|
|
|
31
|
|
|
31
|
|
|
31
|
|
|
Wholly-Owned
Total
|
508
|
|
|
504
|
|
|
520
|
|
|
463
|
|
|
463
|
|
|
497
|
|
|
492
|
|
|
491
|
|
|
510
|
|
|
510
|
|
|
Joint Venture
Interest (3)
|
6
|
|
|
6
|
|
|
1,106
|
|
|
1,105
|
|
|
1,105
|
|
|
—
|
|
|
11
|
|
|
11
|
|
|
11
|
|
|
11
|
|
|
Total
|
514
|
|
|
510
|
|
|
1,626
|
|
|
1,568
|
|
|
1,568
|
|
|
497
|
|
|
503
|
|
|
502
|
|
|
521
|
|
|
521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes amounts
from the Bandon Property, which was acquired at the end of August
2018. Harvest volume and timber sales revenue from the Bandon
Property since acquisition accounted for less than 1% of our
consolidated total harvest volume and total timber sales
revenue.
(2) Excludes value of timber retained
under timber reservations.
(3) Represents property owned by
Dawsonville Bluffs, LLC, a joint venture in which CatchMark owns a
50% membership interest, and Triple T Joint Venture in which
CatchMark owns a 21.6% equity interest. CatchMark serves as the
manager for both of these joint ventures.
|
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
ADJUSTED EBITDA BY
SOURCE (UNAUDITED)
(in
thousands)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Timber
sales
|
$
|
16,315
|
|
|
$
|
20,425
|
|
|
$
|
69,455
|
|
|
$
|
71,353
|
|
Other
revenue
|
1,152
|
|
|
1,235
|
|
|
$
|
5,279
|
|
|
$
|
5,066
|
|
(-)
Contract logging and hauling costs
|
(7,315)
|
|
|
(9,251)
|
|
|
(31,469)
|
|
|
(31,108)
|
|
(-)
Forestry management expenses
|
(1,661)
|
|
|
(1,884)
|
|
|
(6,283)
|
|
|
(6,758)
|
|
(-)
Land rent expense
|
(170)
|
|
|
(169)
|
|
|
(660)
|
|
|
(621)
|
|
(-)
Other operating expenses
|
(2,106)
|
|
|
(1,276)
|
|
|
(6,303)
|
|
|
(5,264)
|
|
(+)
Stock-based compensation
|
23
|
|
|
255
|
|
|
333
|
|
|
830
|
|
(+/-)
Other
|
613
|
|
|
(140)
|
|
|
839
|
|
|
357
|
|
Harvest
EBITDA
|
6,851
|
|
|
9,195
|
|
|
31,191
|
|
|
33,855
|
|
|
|
|
|
|
|
|
|
Timberland
sales
|
2,616
|
|
|
1,023
|
|
|
17,520
|
|
|
14,768
|
|
(-)
Cost of timberland sales
|
(1,922)
|
|
|
(717)
|
|
|
(13,512)
|
|
|
(10,423)
|
|
(+) Basis
of timberland sold
|
1,707
|
|
|
644
|
|
|
12,380
|
|
|
9,890
|
|
Real estate
EBITDA
|
2,401
|
|
|
950
|
|
|
16,388
|
|
|
14,235
|
|
|
|
|
|
|
|
|
|
Asset management
fees
|
2,844
|
|
|
39
|
|
|
5,603
|
|
|
108
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
423
|
|
|
2,044
|
|
|
6,828
|
|
|
2,003
|
|
Investment
management EBITDA
|
3,267
|
|
|
2,083
|
|
|
12,431
|
|
|
2,111
|
|
|
|
|
|
|
|
|
|
Total operating
EBITDA
|
12,519
|
|
|
12,228
|
|
|
60,010
|
|
|
50,201
|
|
|
|
|
|
|
|
|
|
(-)
General and administrative expenses
|
(3,823)
|
|
|
(4,183)
|
|
|
(12,425)
|
|
|
(11,660)
|
|
(+)
Stock-based compensation
|
495
|
|
|
506
|
|
|
2,356
|
|
|
1,956
|
|
(+)
Interest income
|
82
|
|
|
39
|
|
|
262
|
|
|
113
|
|
(+/-)
Other
|
147
|
|
|
1,300
|
|
|
(417)
|
|
|
1,360
|
|
Non-allocated/corporate EBITDA
|
(3,099)
|
|
|
(2,337)
|
|
|
(10,224)
|
|
|
(8,231)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
9,420
|
|
|
$
|
9,891
|
|
|
$
|
49,786
|
|
|
$
|
41,970
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/catchmark-announces-full-year-and-fourth-quarter-2018-results-declares-first-quarter-2019-dividend-and-provides-2019-guidance-300796240.html
SOURCE CatchMark Timber Trust, Inc.