ATLANTA, Feb. 13, 2020 /PRNewswire/ --
Fueled by increased year-over-year timber sales from higher
harvest volumes and sawtimber mix, CatchMark Timber Trust, Inc.
(NYSE: CTT) today reported a significant increase in total
revenues, a sharply lower net loss, and a substantial increase in
Adjusted EBITDA for fourth quarter 2019 compared to fourth quarter
2018.
For full-year 2019 compared to 2018, CatchMark also registered
markedly increased revenues, a sizeable decrease in net loss, and
significantly higher Adjusted EBITDA, meeting company guidance.
These gains were driven by higher timber sales revenue from higher
harvest volumes, sawtimber mix and pricing, as well as higher asset
management fees.
In addition, CatchMark declared a cash dividend of $0.135 per share for its common stockholders of
record on February 28, 2020, payable
on March 16, 2020.
Brian M. Davis, CatchMark's Chief
Executive Officer, said: "Again in 2019, our consistently applied
strategic approach continued to pay off in delivering excellent
operating results. We remain focused on acquiring the
highest-quality timberlands, accessing high-demand mill markets
with leading lumber and pulp and paper producers and creditworthy
customers, and employing rigorous management practices to deliver
sustainable harvest yields. In meeting our guidance for the year,
we realized increased timber sales, superior pricing in the U.S.
South timber basket and a significant increase in net timber
revenue. These results were driven by higher harvest volumes, an
increased sawtimber mix, and the successful integration of the
Bandon Property in the Pacific Northwest. Asset management fees
earned from Triple T also provided a solid contribution. In
addition, the Dawsonville Bluffs joint venture met investment
objectives and generated excellent returns, including an
incentive-based promote, and we also met our timberland sales
targets. The capital recycling strategy, employing targeted large
dispositions, continues to improve the overall quality of our
timber assets, strengthen our balance sheet and enable future
investments in prime timberlands, furthering our growth strategy.
Taken together, these initiatives have enabled us to provide a
consistent dividend supported by predictable operating cash flows
for our shareholders."
Fourth Quarter 2019 and Full Year 2019 Performance
Highlights
For fourth quarter 2019, CatchMark reported the following
year-over-year operating results:
- Increased revenues by 27% to $29.1
million, compared to $22.9
million in fourth quarter 2018.
- Lowered net loss by 69% to $11.8
million, primarily due to lower losses allocated from the
Triple T joint venture.
- Increased Adjusted EBITDA by 61% to $15.1 million, compared to $9.4 million in fourth quarter 2018, driven by
increases in net timber revenue and timberland sales.
- Increased total harvest volumes by 119,000 tons to 628,000 tons
compared to fourth quarter 2018.
- Increased gross timber sales revenue by 23% to $20.0 million, net timber revenues by 30% to
$11.7 million and Harvest EBITDA by
42% to $9.7 million, driven by higher
harvest volumes, a higher sawtimber mix and fully-integrated
Pacific Northwest operations.
- Acquired 900 acres of well-stocked, pine timberlands located
near existing prime holdings in South
Carolina for $1.9 million of
cash on-hand generated from capital recycling.
- Sold 3,200 acres of timberlands for $5.0
million, increasing Real Estate EBITDA by $2.3 million from the same period 2018.
- Entered into a $21.3 million
contract for a large disposition of 14,400 acres of Georgia timberlands, which closed in
January 2020, as part of the
company's capital recycling strategy.
- Paid a dividend of $0.135 per
share to stockholders of record on December
13, 2019.
For full-year 2019, CatchMark reported the following
year-over-year operating results:
- Increased total revenues by 9% to $106.7
million, compared to $97.9
million for full-year 2018.
- Lowered net loss by 24% to $93.3
million, primarily due to lower allocated losses and higher
earned asset management fees from Triple T.
- Increased Adjusted EBITDA by 14% to $56.9 million due to higher net timber revenues
and asset management fees.
- Increased total harvest volumes by 3% to 2.24 million tons from
2.17 million tons.
- Increased gross timber sale revenue by 4% to $72.6 million, net timber revenue by 9% to
$41.4 million and Harvest EBITDA by
8% to $33.7 million, driven by higher
harvest volumes, a higher sawtimber mix, increased pricing in the
U.S. South, and integration of Pacific Northwest operations.
- Increased asset management fee revenue by 113% to $11.9 million from $5.6
million due primarily to a full year of Triple T
operations.
- Recognized $1.0 million of
income, $4.8 million of Adjusted
EBITDA and received $4.8 million of
distributions from the Dawsonville Bluffs joint venture.
- Increased Investment Management EBITDA by 35% to $16.7 million due to the increased asset
management fees from Triple T and strong results of Dawsonville
Bluffs.
- Realized timberland sales of $17.6
million, comprising 9,200 acres, consistent with prior year
sales proceeds and in line with company guidance.
- Completed large dispositions of 14,400 acres for $25.4 million, recognizing a gain of $8.0 million and paying down debt by $20.1 million with a portion of the proceeds. The
remaining net proceeds were used to fund acquisitions of prime
timberland and opportunistically repurchase shares.
- Paid fully-covered dividends of $26.3
million, or $0.54 per
share.
Meeting Strategic Objectives
Notable 2019 CatchMark initiatives that contributed to
year-over-year results, strengthened capital structure and
supported long-term growth objectives were:
- Fully integrating the 2018 Bandon acquisition in the Pacific
Northwest which will continue to improve sawtimber mix on a
consolidated basis.
- Realizing increased asset management fees from a full year of
Triple T joint venture operations and strategically making progress
to unlock further value through greater operating efficiencies and
new tactical strategies.
- Delivering on objectives from Dawsonville Bluffs,
which provided strong investment returns, asset
management fees and incentive-based promotes over its term.
Since inception in April 2017 through
December 31, 2019, CatchMark received
$13.3 million in cash distributions
from its $10.5 million investment in
the joint venture and $0.9 million in
asset management fee revenue and incentive-based promotes.
- Profitably recycling capital with the sale of 14,400 acres for
$25.4 million and a significant gain
of $8.0 million to optimize the
company's timberland portfolio, strengthen its balance sheet and
provide capital for future acquisitions and investments.
- Improving liquidity at year-end to $196.6 million comprised of $185.1 million of debt capacity –$150.1 million
under the multi-draw term facility and $35.0
million under the revolving credit facility – and
$11.5 million of cash on-hand. At
year-end 2018, total liquidity was $170.6
million.
- Meeting a deleveraging goal to reduce net debt to Adjusted
EBITDA to below 8.0x.
- Lowering borrowing costs and extending the average life of
fixed-rate debt. During the fourth quarter, CatchMark entered into
hedging transactions to blend and extend existing interest rate
swaps to fix rates on $275.0 million
of debt for an average term of nine years at a weighted-average
interest rate of 2.17%, before the applicable spread and expected
patronage dividends, compared to an average term of four years at
2.44% under previous swaps.
- Repurchasing company shares opportunistically under its share
repurchase program.
CatchMark's Chief Resources Officer Todd
Reitz said: "A very strong fourth quarter met plan on
volumes and pricing, including a favorable sawtimber mix. Our
strategic mill market presence, fiber supply agreements, the
delivered wood model and opportunistic stumpage sales continued as
primary performance drivers, helping maintain pricing levels for
all our pine products substantially above TimberMart-South
South-wide averages."
Ursula Godoy-Arbelaez, Chief Financial Officer,
said: "We continue to set the stage for future timberland
acquisitions and growth through disciplined capital allocation and
further deleveraging, highlighted most recently by last month's
profitable $21.3 million capital
recycling transaction, involving the sale of Georgia timberlands. Other favorable impacts
derive from executing our active interest rate management strategy,
including lowering our already favorable borrowing costs and
extending the average life of our fixed-rate debt."
Share Repurchases
CatchMark did not make any share repurchases during fourth
quarter 2019 under its $30 million
share repurchase program. For full-year 2019, the company
repurchased approximately 329,000 shares for $3.0 million and $15.7
million remained available under the program at
year-end.
Results for Fourth Quarter 2019 and Full-Year 2019
Fourth Quarter 2019 Results
Revenues increased to $29.1
million for the three months ended December 31, 2019 from $22.9 million for the three months ended
December 31, 2018 due primarily to a
$3.7 million increase in timber sales
and a $2.4 million increase in
timberland sales.
Gross timber sales revenue increased by $3.7 million, or 23%, as a result of a 23%
increase in total harvest volumes, including a 19% increase in the
U.S. South region, contributions from the successful integration of
the Bandon Property in the Pacific Northwest, and a 7% increase in
U.S. South sawtimber mix. Those increases were offset by a 11%
decrease in delivered sales as a percentage of total volume. Net
timber revenues, calculated as gross timber sales revenue less
contract logging and hauling costs, increased by $2.7 million, or 30%, as a result of higher
harvest volumes and increased sawtimber mix.
|
For the Three
Months
Ended December 31,
2018
|
|
Changes
attributable to:
|
|
For the Three
Months
Ended December 31,
2019
|
(in
thousands)
|
|
Price/Mix
|
|
Volume
(3)
|
|
Timber sales
(1)
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
9,015
|
|
|
$
|
(44)
|
|
|
$
|
399
|
|
|
$
|
9,370
|
|
Sawtimber
(2)
|
7,300
|
|
|
(344)
|
|
|
3,701
|
|
|
10,657
|
|
|
$
|
16,315
|
|
|
$
|
(388)
|
|
|
$
|
4,100
|
|
|
$
|
20,027
|
|
|
|
(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 changes.
|
Timberland sales increased to $5.0
million in fourth quarter 2019 from $2.6 million in the same period 2018 primarily
due to selling more acres.
Net loss decreased to $11.8
million for the three months ended December 31, 2019 from $38.2 million for the three months ended
December 31, 2018 primarily due to a
$24.1 million decrease in HLBV losses
from Triple T, a $6.2 million
increase in total revenues and a $1.1
million income tax benefit, offset by a $5.8 million increase in total expenses. Total
expenses increased primarily due to a $2.6
million increase in cost of timberland sales due to selling
more acres and a $2.5 million
increase in depletion and a $1.0
million increase in logging and hauling costs driven by
higher harvest volumes, including from the Pacific Northwest
region. Net loss per share for the three months ended December 31, 2019 and 2018 was $0.24 and $0.78,
respectively.
Full-Year 2019 Results
Revenues increased to $106.7
million for the year ended December
31, 2019 from $97.9 million
for the year ended December 31, 2018
due to a $3.1 million increase in
timber sales and a $6.3 million
increase in asset management fee revenue.
Gross timber sales revenue increased by $3.1 million as a result of a $5.2 million increase in the Pacific Northwest
region from the successful integration of the Bandon Property,
offset by a $2.1 million decrease in
the U.S. South region due to a 9% decrease in delivered sales as a
percentage of total volume. Total harvest volume in the U.S. South
remained comparable year-over-year and pulpwood and sawtimber
pricing increased by 2% and 1%, respectively. Net timber revenues
increased by $3.4 million, or 9%, as
a result of higher harvest volumes, an increased sawtimber mix and
higher U.S. South pricing.
|
For the
Year Ended
|
|
Changes
attributable to:
|
|
For the Year
Ended
|
(in
thousands)
|
December 31,
2018
|
|
Price/Mix
|
|
Volume
(3)
|
|
December 31,
2019
|
Timber sales
(1)
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
38,309
|
|
|
$
|
896
|
|
|
$
|
(3,107)
|
|
|
$
|
36,098
|
|
Sawtimber
(2)
|
31,146
|
|
|
86
|
|
|
5,227
|
|
|
36,459
|
|
|
$
|
69,455
|
|
|
$
|
982
|
|
|
$
|
2,120
|
|
|
$
|
72,557
|
|
|
|
(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 changes.
|
Asset management fees increased to $11.9
million in 2019 from $5.6
million in 2018 primarily due to a $5.8 million increase from Triple T and a
$0.6 million increase from
Dawsonville Bluffs. Higher management fees earned from Triple T
resulted from managing the joint venture for a full year in 2019
compared to two quarters in 2018. The majority of asset management
fees earned from Dawsonville Bluffs in 2019 represented an
incentive-based promote earned for exceeding investment
hurdles.
Net loss decreased to $93.3
million for the year ended December
31, 2019 from $122.0 million
for the year ended December 31, 2018
primarily due to a $19.1 million
decrease in losses from Triple T, a $8.9
million increase in total revenues, a $8.4 million increase in gains on large
dispositions and a $1.1 million
income tax benefit, offset by a $4.7
million increase in total expenses, a $2.4 million increase in interest expense and a
$1.7 million decrease in income
recognized from the Dawsonville Bluffs joint venture. Total
expenses increased by $4.7 million
primarily due to a $2.2 million
increase in depletion from higher harvest volumes and a
$1.6 million increase in cost of
timberland sales due to selling more acres. Net loss per share for
the years ended December 31, 2019 and
2018 was $1.90 and $2.55, respectively.
2020 Outlook and Guidance
For full-year 2020, CatchMark projects a GAAP net loss of
between $8.5 million and $14.5 million, with a substantial reduction in
losses allocated from Triple T. The company anticipates its
Adjusted EBITDA will be between $48
million and $56 million.
Harvest volumes are forecast between 2.3 million and 2.5 million
tons with approximately 95% derived from the U.S. South region and
a sawtimber mix of approximately 40% from the U.S. South and
approximately 80% from the Pacific Northwest. Asset management fee
revenue is projected to be between $11
million and $12 million,
primarily from the Triple T joint venture. Timberland sales targets
of $15 million to $17 million remain in the range of 1% to 2% of
fee acreage.
Davis said: "Our outlook does not include potential
contributions from future acquisitions and investments and does not
include any additional potential capital recycling which we
continue to pursue as part of our ongoing growth strategy and
capital allocation model. We project higher Harvest EBITDA in
2020 primarily driven by increased harvest volumes and steady
pricing, while Investment Management EBITDA will decrease due to
decreased contributions from Dawsonville Bluffs, which effectively
wrapped up in 2019."
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 (losses) from unconsolidated joint
ventures based on hypothetical liquidation book value, or 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. 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. 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 flow 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 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;
- 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 we use the HLBV
method of accounting to determine our equity in earnings; and
- Adjusted EBITDA does not reflect the cash requirements
necessary to fund post-employment benefits or transaction costs
related to acquisitions, investments, joint ventures or new
business initiatives, which may be substantial.
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 three months ended December 31,
2019, Adjusted EBITDA was $15.1
million, a $5.7 million
increase from the three months ended December 31, 2018, primarily due to a
$2.7 million increase in net timber
revenue, a $2.4 million increase in
timberland sales and a $0.5 million
decrease in corporate expenses.
For the year ended December 31,
2019, Adjusted EBITDA was $56.9
million, a $7.1 million
increase from the year ended December 31,
2018, primarily due to a $6.3
million increase in asset management fee revenue and a
$3.4 million increase in net timber
revenues, offset by a $2.0 million
decrease in Adjusted EBITDA generated by Dawsonville Bluffs and a
$0.6 million decrease in other
revenues.
Reconciliation of net loss to Adjusted EBITDA for 2020 guidance,
the fourth quarters and full years ended December 31, 2019 and 2018 follow:
|
2020
Guidance
|
|
Three Months
ended
December 31,
|
|
Years Ended
December 31,
|
(in
thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss
|
$(8,500) –
(14,500)
|
|
$
|
(11,804)
|
|
|
$
|
(38,218)
|
|
|
$
|
(93,321)
|
|
|
$
|
(122,007)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Depletion
|
30,000 –
33,000
|
|
8,531
|
|
|
6,028
|
|
|
28,064
|
|
|
25,912
|
|
Interest expense
(1)
|
16,000
|
|
4,071
|
|
|
4,889
|
|
|
17,058
|
|
|
13,643
|
|
Amortization
(1)
|
—
|
|
800
|
|
|
289
|
|
|
1,786
|
|
|
2,821
|
|
Income tax
benefit
|
—
|
|
(1,127)
|
|
|
—
|
|
|
(1,127)
|
|
|
—
|
|
Depletion,
amortization, and basis of
timberland and mitigation credits sold included
in loss from unconsolidated joint venture (2)
|
—
|
|
276
|
|
|
310
|
|
|
3,823
|
|
|
4,195
|
|
Basis of timberland
sold, lease terminations
and other (3)
|
11,000
|
|
4,635
|
|
|
2,282
|
|
|
14,964
|
|
|
13,053
|
|
Stock-based
compensation expense
|
3,000
|
|
838
|
|
|
518
|
|
|
2,790
|
|
|
2,689
|
|
(Gain) loss from
large dispositions (4)
|
(500) –
(1,500)
|
|
—
|
|
|
390
|
|
|
(7,961)
|
|
|
390
|
|
HLBV loss from
unconsolidated joint venture (5)
|
—
|
|
8,650
|
|
|
32,795
|
|
|
90,450
|
|
|
109,550
|
|
Other
(6)
|
3,000
|
|
265
|
|
|
137
|
|
|
380
|
|
|
(460)
|
|
Adjusted
EBITDA
|
$48,000 –
56,000
|
|
$
|
15,135
|
|
|
$
|
9,420
|
|
|
$
|
56,906
|
|
|
$
|
49,786
|
|
|
|
(1)
|
For the purpose of
the above reconciliation, amortization includes amortization of
deferred financing costs, amortization of operating lease assets
and liabilities, 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 consolidated statements of operations.
|
(2)
|
Reflects our share of
depletion, amortization, and basis of timberland and mitigation
credits sold of the unconsolidated Dawsonville Bluffs joint
venture.
|
(3)
|
Includes non-cash
basis of timber and timberland assets written-off related to
timberland sold, terminations of timberland leases and casualty
losses.
|
(4)
|
Large dispositions
are sales of blocks of timberland properties in one or several
transactions with the objective to generate proceeds to fund
capital allocation priorities. 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. Such
dispositions are infrequent in nature, are not part of core
operations, and would cause material variances in comparative
results if not reported separately.
|
(5)
|
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.
|
(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
post-employment benefits and costs required to be expensed by GAAP
related to acquisitions, transactions, joint ventures or new
business initiatives.
|
Conference Call
The company will host a conference call and live webcast at 10
a.m. ET on Friday, February 14, 2020
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 will be 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) seeks to deliver consistent and growing
per share cash flow from disciplined acquisitions and superior
management of prime timberlands located in high demand U.S. mill
markets. Concentrating on maximizing cash flows throughout
business cycles, the company strategically harvests its
high-quality timberlands to produce durable revenue growth and
takes advantage of proximate mill markets, which provide a reliable
outlet for merchantable inventory. Headquartered in
Atlanta and focused exclusively on timberland ownership and
management, CatchMark began operations in 2007 and owns interests
in 1.5 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, 2019
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 press release
include, but are not limited to, that our capital recycling
strategy will enable future investments in prime timberlands
furthering our growth strategy, that we will be able to unlock
further value in our Triple T joint venture through greater
operating efficiencies and new tactical strategies, and our
financial outlook and guidance for full-year 2020. Risks and
uncertainties that could cause our actual results to differ from
these forward-looking statements include, but are not limited
to, that (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 sell large
dispositions of timberland in capital recycling transactions at
prices that are attractive to us or at all; (viii) we may not be
able to access external sources of capital at attractive rates or
at all; (ix) potential increases in interest rates could have a
negative impact on our business; (x) our share repurchase program
may not be successful in improving stockholder value over the
long-term; (xi) our joint venture strategy may not enable us to
access non-dilutive capital and enhance our ability to make
acquisitions; (xii) 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 or decreased, we may not earn an
incentive-based promote and our investment in the joint venture may
lose value; and (xiii) 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, 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
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Timber
sales
|
$
|
20,027
|
|
|
$
|
16,315
|
|
|
$
|
72,557
|
|
|
$
|
69,455
|
|
Timberland
sales
|
4,994
|
|
|
2,616
|
|
|
17,572
|
|
|
17,520
|
|
Asset management
fees
|
2,829
|
|
|
2,844
|
|
|
11,948
|
|
|
5,603
|
|
Other
revenues
|
1,246
|
|
|
1,152
|
|
|
4,632
|
|
|
5,279
|
|
|
29,096
|
|
|
22,927
|
|
|
106,709
|
|
|
97,857
|
|
Expenses:
|
|
|
|
|
|
|
|
Contract logging and
hauling costs
|
8,351
|
|
|
7,315
|
|
|
31,129
|
|
|
31,469
|
|
Depletion
|
8,531
|
|
|
6,028
|
|
|
28,064
|
|
|
25,912
|
|
Cost of timberland
sales
|
4,505
|
|
|
1,922
|
|
|
15,067
|
|
|
13,512
|
|
Forestry management
expenses
|
1,709
|
|
|
1,661
|
|
|
6,691
|
|
|
6,283
|
|
General and
administrative expenses
|
3,750
|
|
|
3,823
|
|
|
13,300
|
|
|
12,425
|
|
Land rent
expense
|
124
|
|
|
170
|
|
|
524
|
|
|
660
|
|
Other operating
expenses
|
1,846
|
|
|
2,106
|
|
|
6,460
|
|
|
6,303
|
|
|
28,816
|
|
|
23,025
|
|
|
101,235
|
|
|
96,564
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
62
|
|
|
82
|
|
|
204
|
|
|
262
|
|
Interest
expense
|
(4,813)
|
|
|
(5,130)
|
|
|
(18,616)
|
|
|
(16,255)
|
|
Gain (loss) on large
dispositions
|
—
|
|
|
(390)
|
|
|
7,961
|
|
|
(390)
|
|
|
(4,751)
|
|
|
(5,438)
|
|
|
(10,451)
|
|
|
(16,383)
|
|
|
|
|
|
|
|
|
|
Loss before
unconsolidated joint ventures and income
taxes
|
(4,471)
|
|
|
(5,536)
|
|
|
(4,977)
|
|
|
(15,090)
|
|
Income (loss) from
unconsolidated joint ventures:
|
|
|
|
|
|
|
|
Triple T
|
(8,650)
|
|
|
(32,796)
|
|
|
(90,450)
|
|
|
(109,551)
|
|
Dawsonville
Bluffs
|
190
|
|
|
114
|
|
|
979
|
|
|
2,634
|
|
|
(8,460)
|
|
|
(32,682)
|
|
|
(89,471)
|
|
|
(106,917)
|
|
Net loss before
income taxes
|
(12,931)
|
|
|
(38,218)
|
|
|
(94,448)
|
|
|
(122,007)
|
|
Income tax
benefit
|
|
1,127
|
|
|
|
—
|
|
|
|
1,127
|
|
|
|
—
|
|
Net
loss
|
$
|
(11,804)
|
|
|
$
|
(38,218)
|
|
|
$
|
(93,321)
|
|
|
$
|
(122,007)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic and diluted
|
49,007
|
|
|
49,082
|
|
|
49,038
|
|
|
47,937
|
|
|
|
|
|
|
|
|
|
Net loss per-share
- basic and diluted
|
$
|
(0.24)
|
|
|
$
|
(0.78)
|
|
|
$
|
(1.90)
|
|
|
$
|
(2.55)
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
(in thousands,
except for per-share amounts)
|
|
|
December 31,
2019
|
|
December 31,
2018
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
11,487
|
|
|
$
|
5,614
|
|
Accounts
receivable
|
7,998
|
|
|
7,355
|
|
Prepaid expenses and
other assets
|
5,459
|
|
|
7,369
|
|
Operating lease
right-of-use asset, less accumulated amortization of
$280 as of December 31,
2019
|
3,120
|
|
|
—
|
|
Deferred financing
costs
|
246
|
|
|
327
|
|
Timber
assets:
|
|
|
|
Timber and timberlands,
net
|
633,581
|
|
|
687,851
|
|
Intangible lease
assets, less accumulated amortization of
$948 and $945 as of December 31, 2019
and December 31,
2018, respectively
|
9
|
|
|
12
|
|
Investments in
unconsolidated joint ventures
|
1,965
|
|
|
96,244
|
|
Total
assets
|
$
|
663,865
|
|
|
$
|
804,772
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
3,580
|
|
|
$
|
4,936
|
|
Operating lease
liability
|
3,242
|
|
|
—
|
|
Other
liabilities
|
10,853
|
|
|
5,940
|
|
Notes payable and
lines of credit, net of deferred financing costs
|
452,987
|
|
|
472,240
|
|
Total
liabilities
|
470,662
|
|
|
483,116
|
|
|
|
|
|
Commitments and
Contingencies
|
—
|
|
|
—
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Class A common stock,
$0.01 par value; 900,000 shares authorized;
49,008 and 49,127 shares issued and
outstanding as of December
31, 2019 and December 31, 2018,
respectively
|
490
|
|
|
492
|
|
Additional paid-in
capital
|
729,274
|
|
|
730,416
|
|
Accumulated deficit
and distributions
|
(528,847)
|
|
|
(409,260)
|
|
Accumulated other
comprehensive income (loss)
|
(8,276)
|
|
|
8
|
|
Total stockholders'
equity
|
192,641
|
|
|
321,656
|
|
Non-controlling
interests
|
562
|
|
|
—
|
|
Total
equity
|
|
193,203
|
|
|
|
321,656
|
|
Total liabilities and
equity
|
$
|
663,865
|
|
|
$
|
804,772
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(11,804)
|
|
|
$
|
(38,218)
|
|
|
$
|
(93,321)
|
|
|
$
|
(122,007)
|
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depletion
|
8,531
|
|
|
6,028
|
|
|
28,064
|
|
|
25,912
|
|
Basis of timberland
sold, lease terminations and other
|
4,635
|
|
|
2,282
|
|
|
14,964
|
|
|
13,053
|
|
Stock-based
compensation expense
|
838
|
|
|
518
|
|
|
2,790
|
|
|
2,689
|
|
Noncash interest
expense
|
743
|
|
|
241
|
|
|
1,559
|
|
|
2,612
|
|
Other
amortization
|
57
|
|
|
50
|
|
|
227
|
|
|
210
|
|
Gain (loss) from
large dispositions
|
—
|
|
|
390
|
|
|
(7,961)
|
|
|
390
|
|
Loss from
unconsolidated joint ventures
|
8,460
|
|
|
32,682
|
|
|
89,471
|
|
|
106,917
|
|
Operating
distributions from unconsolidated joint ventures
|
189
|
|
|
113
|
|
|
978
|
|
|
3,771
|
|
Income tax
benefit
|
(1,127)
|
|
|
—
|
|
|
(1,127)
|
|
|
—
|
|
Interest paid under
new interest rate swaps
|
115
|
|
|
—
|
|
|
115
|
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(3,480)
|
|
|
(806)
|
|
|
(1,473)
|
|
|
(3,449)
|
|
Prepaid expenses and
other assets
|
35
|
|
|
35
|
|
|
256
|
|
|
(260)
|
|
Accounts payable and
accrued expenses
|
(1,447)
|
|
|
(1,505)
|
|
|
(1,309)
|
|
|
122
|
|
Other
liabilities
|
(1,316)
|
|
|
(1,285)
|
|
|
(291)
|
|
|
(164)
|
|
Net cash provided by
operating activities
|
4,429
|
|
|
525
|
|
|
32,942
|
|
|
29,796
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Timberland
acquisitions and earnest money paid
|
(1,973)
|
|
|
(397)
|
|
|
(1,973)
|
|
|
(91,821)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,147)
|
|
|
(1,750)
|
|
|
(4,178)
|
|
|
(4,571)
|
|
Investment in
unconsolidated joint ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
(200,000)
|
|
Distributions from
unconsolidated joint ventures
|
(189)
|
|
|
(114)
|
|
|
3,830
|
|
|
4,744
|
|
Net proceeds from
large dispositions
|
—
|
|
|
79,134
|
|
|
25,151
|
|
|
79,134
|
|
Net cash provided by
(used in) investing activities
|
(3,309)
|
|
|
76,873
|
|
|
22,830
|
|
|
(212,514)
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Proceeds from note
payable
|
—
|
|
|
—
|
|
|
—
|
|
|
289,000
|
|
Repayments of note
payable
|
—
|
|
|
(79,000)
|
|
|
(20,064)
|
|
|
(148,000)
|
|
Financing costs
paid
|
(34)
|
|
|
(602)
|
|
|
(82)
|
|
|
(1,434)
|
|
Issuance of common
stock
|
—
|
|
|
—
|
|
|
—
|
|
|
72,450
|
|
Interest paid under
new interest rate swaps
|
(115)
|
|
|
—
|
|
|
(115)
|
|
|
—
|
|
Dividends paid to
common stockholders
|
(6,558)
|
|
|
(6,588)
|
|
|
(26,269)
|
|
|
(25,601)
|
|
Repurchases of common
shares under the share repurchase
|
—
|
|
|
(1,003)
|
|
|
(3,004)
|
|
|
(1,003)
|
|
Repurchase of common
shares for minimum tax withholdings
|
—
|
|
|
—
|
|
|
(365)
|
|
|
(1,348)
|
|
Other offering costs
paid
|
—
|
|
|
86
|
|
|
—
|
|
|
(3,537)
|
|
Net cash provided by
(used in) financing activities
|
(6,707)
|
|
|
(87,107)
|
|
|
(49,899)
|
|
|
180,527
|
|
Net change in cash
and cash equivalents
|
(5,587)
|
|
|
(9,709)
|
|
|
5,873
|
|
|
(2,191)
|
|
Cash and cash
equivalents, beginning of period
|
17,074
|
|
|
15,323
|
|
|
5,614
|
|
|
7,805
|
|
Cash and cash
equivalents, end of period
|
$
|
11,487
|
|
|
$
|
5,614
|
|
|
$
|
11,487
|
|
|
$
|
5,614
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
SELECTED DATA
(UNAUDITED)
|
|
2019
|
|
2018
|
(in thousands,
except for per-ton, per-acre
amounts)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
294
|
|
|
304
|
|
|
376
|
|
|
336
|
|
|
1,310
|
|
|
354
|
|
|
342
|
|
|
343
|
|
|
317
|
|
|
1,356
|
|
Sawtimber
(1)
|
193
|
|
|
190
|
|
|
258
|
|
|
292
|
|
|
933
|
|
|
221
|
|
|
219
|
|
|
187
|
|
|
192
|
|
|
819
|
|
Total
|
487
|
|
|
494
|
|
|
634
|
|
|
628
|
|
|
2,243
|
|
|
575
|
|
|
561
|
|
|
530
|
|
|
509
|
|
|
2,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
60
|
%
|
|
62
|
%
|
|
59
|
%
|
|
54
|
%
|
|
58
|
%
|
|
62
|
%
|
|
61
|
%
|
|
65
|
%
|
|
62
|
%
|
|
62
|
%
|
Sawtimber
(1)
|
40
|
%
|
|
38
|
%
|
|
41
|
%
|
|
46
|
%
|
|
42
|
%
|
|
38
|
%
|
|
39
|
%
|
|
35
|
%
|
|
38
|
%
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Timberland Acquisitions, Exclusive of Transaction
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Acquisitions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,925
|
|
|
$
|
1,925
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
89,700
|
|
|
$
|
—
|
|
|
$
|
89,700
|
|
Acres
Acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
900
|
|
|
900
|
|
|
—
|
|
|
—
|
|
|
18,100
|
|
|
—
|
|
|
18,100
|
|
Price per acre
(3)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,185
|
|
|
$
|
2,185
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,956
|
|
|
$
|
—
|
|
|
$
|
4,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint Ventures'
Timberland Acquisitions, Exclusive of Transaction Costs
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Acquisitions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,389,500
|
|
|
$
|
—
|
|
|
$
|
1,389,500
|
|
Acres
Acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,099,800
|
|
|
—
|
|
|
1,099,800
|
|
Price per
acre
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,263
|
|
|
$
|
—
|
|
|
$
|
1,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
acres
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
|
432
|
|
|
424
|
|
|
413
|
|
|
410
|
|
|
410
|
|
|
477
|
|
|
474
|
|
|
490
|
|
|
433
|
|
|
433
|
|
Lease
|
27
|
|
|
26
|
|
|
26
|
|
|
25
|
|
|
25
|
|
|
31
|
|
|
30
|
|
|
30
|
|
|
30
|
|
|
30
|
|
Wholly-Owned
Total
|
459
|
|
|
450
|
|
|
439
|
|
|
435
|
|
|
435
|
|
|
508
|
|
|
504
|
|
|
520
|
|
|
463
|
|
|
463
|
|
Joint Venture
Interest (6)
|
1,100
|
|
|
1,100
|
|
|
1,094
|
|
|
1,092
|
|
|
1,092
|
|
|
6
|
|
|
6
|
|
|
1,106
|
|
|
1,105
|
|
|
1,105
|
|
Total
|
1,559
|
|
|
1,550
|
|
|
1,533
|
|
|
1,527
|
|
|
1,527
|
|
|
514
|
|
|
510
|
|
|
1,626
|
|
|
1,568
|
|
|
1,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
South
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
294
|
|
|
303
|
|
|
373
|
|
|
332
|
|
|
1,302
|
|
|
354
|
|
|
342
|
|
|
343
|
|
|
317
|
|
|
1,356
|
|
Sawtimber
(1)
|
188
|
|
|
177
|
|
|
237
|
|
|
271
|
|
|
873
|
|
|
221
|
|
|
219
|
|
|
185
|
|
|
192
|
|
|
817
|
|
Total
|
482
|
|
|
480
|
|
|
610
|
|
|
603
|
|
|
2,175
|
|
|
575
|
|
|
561
|
|
|
528
|
|
|
509
|
|
|
2,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
61
|
%
|
|
63
|
%
|
|
61
|
%
|
|
55
|
%
|
|
60
|
%
|
|
62
|
%
|
|
61
|
%
|
|
65
|
%
|
|
62
|
%
|
|
62
|
%
|
Sawtimber
(1)
|
39
|
%
|
|
37
|
%
|
|
39
|
%
|
|
45
|
%
|
|
40
|
%
|
|
38
|
%
|
|
39
|
%
|
|
35
|
%
|
|
38
|
%
|
|
38
|
%
|
Delivered % as of
total volume
|
79
|
%
|
|
74
|
%
|
|
64
|
%
|
|
67
|
%
|
|
71
|
%
|
|
83
|
%
|
|
80
|
%
|
|
78
|
%
|
|
78
|
%
|
|
80
|
%
|
Stumpage % as of
total volume (5)
|
21
|
%
|
|
26
|
%
|
|
36
|
%
|
|
33
|
%
|
|
29
|
%
|
|
17
|
%
|
|
20
|
%
|
|
22
|
%
|
|
22
|
%
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Timber
Sales Price ($ per ton) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
15
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
13
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
14
|
|
|
$
|
14
|
|
Sawtimber
(1)
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
23
|
|
|
$
|
24
|
|
|
$
|
23
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
25
|
|
|
$
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
|
2,090
|
|
|
$
|
8,224
|
|
|
$
|
2,264
|
|
|
$
|
4,994
|
|
|
$
|
17,572
|
|
|
$
|
4,252
|
|
|
$
|
6,834
|
|
|
$
|
3,818
|
|
|
$
|
2,616
|
|
|
$
|
17,520
|
|
Acres Sold
|
900
|
|
|
4,000
|
|
|
1,100
|
|
|
3,200
|
|
|
9,200
|
|
|
2,200
|
|
|
3,100
|
|
|
1,900
|
|
|
1,300
|
|
|
8,500
|
|
% of fee
acres
|
0.2
|
%
|
|
0.9
|
%
|
|
0.2
|
%
|
|
0.9
|
%
|
|
2.2
|
%
|
|
0.5
|
%
|
|
0.7
|
%
|
|
0.4
|
%
|
|
0.3
|
%
|
|
1.8
|
%
|
Price per acre
(3)
|
$
|
2,236
|
|
|
$
|
2,072
|
|
|
$
|
2,166
|
|
|
$
|
1,588
|
|
|
$
|
1,920
|
|
|
$
|
1,955
|
|
|
$
|
2,199
|
|
|
$
|
1,967
|
|
|
$
|
2,064
|
|
|
$
|
2,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large
Dispositions (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Sales
|
$
|
—
|
|
|
$
|
5,475
|
|
|
$
|
19,920
|
|
|
$
|
—
|
|
|
$
|
25,395
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
79,301
|
|
|
$
|
79,301
|
|
Acres Sold
|
—
|
|
|
3,600
|
|
|
10,800
|
|
|
—
|
|
|
14,400
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,100
|
|
|
56,100
|
|
Price per acre
(3)
|
$
|
—
|
|
|
$
|
1,500
|
|
|
$
|
1,845
|
|
|
$
|
—
|
|
|
$
|
1,758
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,414
|
|
|
$
|
1,414
|
|
Gain
(loss)
|
$
|
—
|
|
|
$
|
764
|
|
|
$
|
7,197
|
|
|
$
|
—
|
|
|
$
|
7,961
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(390)
|
|
|
$
|
(390)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific
Northwest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
—
|
|
|
1
|
|
|
3
|
|
|
4
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Sawtimber
|
5
|
|
|
13
|
|
|
21
|
|
|
21
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Total
|
5
|
|
|
14
|
|
|
24
|
|
|
25
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
|
%
|
|
9
|
%
|
|
13
|
%
|
|
15
|
%
|
|
12
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Sawtimber
|
100
|
%
|
|
91
|
%
|
|
87
|
%
|
|
85
|
%
|
|
88
|
%
|
|
—
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
Delivered % as of
total volume
|
100
|
%
|
|
87
|
%
|
|
100
|
%
|
|
74
|
%
|
|
88
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Stumpage % as of
total volume
|
—
|
%
|
|
13
|
%
|
|
—
|
%
|
|
26
|
%
|
|
12
|
%
|
|
—
|
%
|
|
—
|
%
|
|
100
|
%
|
|
—
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivered
Timber Sales Price ($ per
ton) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
40
|
|
|
$
|
37
|
|
|
$
|
30
|
|
|
$
|
31
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Sawtimber
|
$
|
101
|
|
|
$
|
94
|
|
|
$
|
83
|
|
|
$
|
85
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
chip-n-saw and sawtimber.
|
|
|
(2)
|
Prices per ton are
rounded to the nearest dollar. Delivered timber sales price
includes contract logging and hauling costs. The Bandon Property in
the Pacific Northwest was acquired at the end of August 2018 and
did not have any delivered timber sales in 2018.
|
|
|
(3)
|
Excludes value of
timber reservations.
|
|
|
(4)
|
Large dispositions
are sales of blocks of timberland properties in one or several
transactions with the objective to generate proceeds to fund
capital allocation priorities. 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. Such
dispositions are infrequent in nature, are not part of core
operations, and would cause material variances in comparative
results if not reported separately.
|
|
|
(5)
|
Current year
percentage includes 4% from lump-sum sales.
|
|
|
(6)
|
Represents properties
owned by Triple T Joint Venture in which CatchMark owns a 21.6%
equity interest; and Dawsonville Bluffs, LLC, a joint venture in
which CatchMark owns a 50% membership interest. CatchMark serves as
the manager for both of these joint ventures.
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
ADJUSTED EBITDA BY
SEGMENT (UNAUDITED)
(in
thousands)
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Timber
sales
|
$
|
20,027
|
|
|
$
|
16,315
|
|
|
$
|
72,557
|
|
|
$
|
69,455
|
|
Other
revenue
|
|
1,246
|
|
|
|
1,152
|
|
|
|
4,632
|
|
|
|
5,279
|
|
(-)
Contract logging and hauling costs
|
|
(8,351)
|
|
|
|
(7,315)
|
|
|
|
(31,129)
|
|
|
|
(31,469)
|
|
(-)
Forestry management expenses
|
|
(1,709)
|
|
|
|
(1,661)
|
|
|
|
(6,691)
|
|
|
|
(6,283)
|
|
(-)
Land rent expense
|
|
(124)
|
|
|
|
(170)
|
|
|
|
(524)
|
|
|
|
(660)
|
|
(-)
Other operating expenses
|
|
(1,846)
|
|
|
|
(2,106)
|
|
|
|
(6,460)
|
|
|
|
(6,303)
|
|
(+)
Stock-based compensation
|
|
74
|
|
|
|
23
|
|
|
|
263
|
|
|
|
333
|
|
(+/-)
Other
|
|
418
|
|
|
|
613
|
|
|
|
1,022
|
|
|
|
839
|
|
Harvest
EBITDA
|
|
9,735
|
|
|
|
6,851
|
|
|
|
33,670
|
|
|
|
31,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
sales
|
|
4,994
|
|
|
|
2,616
|
|
|
|
17,572
|
|
|
|
17,520
|
|
(-)
Cost of timberland sales
|
|
(4,505)
|
|
|
|
(1,922)
|
|
|
|
(15,067)
|
|
|
|
(13,512)
|
|
(+) Basis
of timberland sold
|
|
4,249
|
|
|
|
1,707
|
|
|
|
14,054
|
|
|
|
12,380
|
|
Real estate
EBITDA
|
|
4,738
|
|
|
|
2,401
|
|
|
|
16,559
|
|
|
|
16,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management
fees
|
|
2,829
|
|
|
|
2,844
|
|
|
|
11,948
|
|
|
|
5,603
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
|
465
|
|
|
|
423
|
|
|
|
4,801
|
|
|
|
6,828
|
|
Investment
management EBITDA
|
|
3,294
|
|
|
|
3,267
|
|
|
|
16,749
|
|
|
|
12,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
EBITDA
|
|
17,767
|
|
|
|
12,519
|
|
|
|
66,978
|
|
|
|
60,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(-)
General and administrative expenses
|
|
(3,750)
|
|
|
|
(3,823)
|
|
|
|
(13,300)
|
|
|
|
(12,425)
|
|
(+)
Stock-based compensation
|
|
764
|
|
|
|
495
|
|
|
|
2,527
|
|
|
|
2,356
|
|
(+)
Interest income
|
|
62
|
|
|
|
82
|
|
|
|
204
|
|
|
|
262
|
|
(+/-)
Other
|
|
292
|
|
|
|
147
|
|
|
|
497
|
|
|
|
(417)
|
|
Non-allocated/corporate EBITDA
|
|
(2,632)
|
|
|
|
(3,099)
|
|
|
|
(10,072)
|
|
|
|
(10,224)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
15,135
|
|
|
$
|
9,420
|
|
|
$
|
56,906
|
|
|
$
|
49,787
|
|
![CatchMark Timber Trust, Inc. (PRNewsFoto/CatchMark Timber Trust, Inc.) CatchMark Timber Trust, Inc. (PRNewsFoto/CatchMark Timber Trust, Inc.)](https://mma.prnewswire.com/media/322797/CatchMark_Timber_Trust.jpg)
View original content to download
multimedia:http://www.prnewswire.com/news-releases/catchmark-announces-fourth-quarter-and-full-year-2019-results-declares-first-quarter-2020-dividend-and-provides-2020-guidance-301004888.html
SOURCE CatchMark Timber Trust, Inc.