ATLANTA, May 4, 2020 /PRNewswire/ -- CatchMark
Timber Trust, Inc. (NYSE: CTT) today reported strong first
quarter 2020 year-over-year results, including a substantial
increase in total revenues, a large decrease in net loss, and a
significant increase in Adjusted EBITDA. These results exceeded
company expectations and were not materially affected by COVID-19
related impacts. The company also declared a cash dividend of
$0.135 per share for its common
stockholders of record on May 29,
2020, payable on June 15,
2020.
![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)
Brian M. Davis, CatchMark's Chief
Executive Officer, said: "We remain focused on owning prime
timberlands in high-demand mill markets and managing our operations
to generate predictable and stable cash flow throughout the
business cycle. To date, our operations in the field have not
been materially impacted by the pandemic and we are working to
ensure necessary social distancing for the safety of all our
employees, customers, vendors and business associates. We
also continue to maintain frequent communications and connectivity
with our customers to work through their supply chain needs and
stay flexible to meet changes in demand."
First Quarter 2020 Results Highlights
CatchMark's first quarter 2020 operating results included:
- Increased revenues by 19% to $27.0
million, compared to $22.6
million in first quarter 2019.
- Decreased net loss to $4.2
million, compared to $30.4
million in first quarter 2019, primarily due to a
$27.5 million decrease in losses
allocated from the Triple T joint venture.
- Increased Adjusted EBITDA by 27% to $12.9 million, compared to $10.2 million in first quarter 2019.
- Increased timber sales revenue by 10% to $18.2 million, net timber revenues by 18% to
$10.9 million and Harvest EBITDA by
19% to $8.6 million compared to first
quarter 2019. These gains were driven by higher harvest
volumes.
- Increased harvest volume in the U.S. South by 18% to 569,940
tons, driven by opportunistic stumpage sales.
- Increased Pacific Northwest harvest volume to 25,000 tons from
4,800 tons in first quarter 2019.
- Generated $3.0 million in asset
management fee revenues from the Triple T and Dawsonville Bluffs
joint ventures, including an incentive-based promote for
Dawsonville Bluffs for exceeding investment return hurdles.
- Sold 3,000 acres of timberlands for $4.8
million, compared to 900 acres for $2.1 million in first quarter 2019. The lower
year-over-year, per-acre sales price resulted from lower average
merchantable inventory stocking levels — 15 tons per acre compared
to CatchMark's portfolio average of 42 tons per acre — as well as
from CatchMark retaining through timber reservations 0.1 million
tons of merchantable inventory with a 49% sawtimber mix.
- Completed a $21.3 million large
disposition of 14,400 acres, recognizing a gain of $1.3 million and paying down debt by $20.9 million with the net proceeds.
- Paid a dividend of $0.135 per
share to stockholders of record on March 16,
2020.
Operations
CatchMark's first quarter 2020 realized stumpage
prices for pulpwood and sawtimber were 11% and 6%, respectively,
lower than first quarter 2019, trending with 15% and 8% decreases
in regional average pulpwood and sawtimber stumpage
prices. Compared to TimberMart-South Southwide
averages, CatchMark realized a 50% premium in pulpwood pricing, and
21% premium in sawtimber pricing.
CatchMark Chief Resources Officer Todd
Reitz said: "We benefited from relative pricing premiums
achieved in our high-demand mill markets and had anticipated
overall lower year-over-year pricing due to a weather-related spike
last year as well as ample first quarter inventories that mills had
to work down. We were nimble in increasing stumpage sales to take
advantage of demand opportunities and we have the flexibility to
fall back on our delivered wood sales and fiber supply agreements,
which provide a reliable source of demand from creditworthy
counterparties."
Joint Ventures and Asset Management Revenues
During the quarter, CatchMark recognized $3.0 million in asset management fees, primarily
from the Triple T joint venture and included a $0.1 million incentive-based promote from
Dawsonville Bluffs for exceeding investment return hurdles.
CatchMark additionally received $0.4
million in cash distributions from Dawsonville Bluffs, which
had a mitigation bank with a book basis of $2.6 million remaining in its portfolio, as of
March 31, 2020. Since inception in
April 2017 through the end of the
first quarter, CatchMark had received $13.7
million in cash distributions from its $10.5 million investment in the joint venture.
Triple T continued to meet its operating targets during the
quarter.
Capital Position and Share Repurchases
CatchMark continued executing its deleveraging strategy to
reduce net debt, including using net proceeds of $20.9 million from the large disposition of
Georgia timberlands, completed in
January, to pay down outstanding debt on its multi-draw term
facility. As of March 31, 2020,
CatchMark had a cash balance of $10.4
million and access to $205.9
million of additional borrowing capacity under its credit
agreement. CatchMark's borrowing capacity consisted of $170.9 million under the multi-draw term facility
and $35.0 million under the revolving
credit facility.
Ursula Godoy-Arbelaez,
CatchMark's Chief Financial Officer, said: "After our deleveraging
initiatives and other balance sheet strengthening in 2018 and 2019,
we believe CatchMark is well positioned to weather the current
economic turmoil. Early in 2020 we partnered with our lenders
to amend our credit facility. This transaction closed last week,
resulting in an increase in working capital liquidity of
$25 million or 250%. We also reduced
commitments under our multi-draw term facility used for
acquisitions from $200 million to
$150 million, which lowered unused
commitment fees while still providing ample investment liquidity
for future growth."
CatchMark repurchased 296,071 shares for $1.9 million during first quarter 2020 under the
company's share repurchase program. The program had $13.8 million remaining for future repurchases at
quarter end.
Results for Three Months ended March
31, 2020
Revenues for the three months ended March
31, 2020 were $27.0 million,
$4.4 million higher than the three
months ended March 31, 2019 as a
result of a $2.7 million increase in
timberland sales revenue and a $1.6
million increase in timber sales revenue. Timber sales
revenue increased by 10% primarily as a result of a $1.4 million increase in timber sales revenue
from the Pacific Northwest, which was driven by a fourfold harvest
volume increase.
|
Three Months
Ended
March 31, 2019
|
|
Changes
attributable to:
|
|
Three Months
Ended
March 31, 2020
|
(in
thousands)
|
|
Price/Mix
|
|
Volume
(3)
|
|
Timber sales
(1)
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
8,732
|
|
|
$
|
(613)
|
|
|
$
|
(306)
|
|
|
$
|
7,813
|
|
Sawtimber
(2)
|
7,819
|
|
|
(487)
|
|
|
3,021
|
|
|
10,353
|
|
|
$
|
16,551
|
|
|
$
|
(1,100)
|
|
|
$
|
2,715
|
|
|
$
|
18,166
|
|
|
(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.
|
Net loss decreased by $26.1
million to $4.2 million for
the three months ended March 31, 2020
from $30.4 million for the three
months ended March 31, 2019 primarily
due to a $27.5 million decrease in
losses allocated from the Triple T joint venture, a $4.4 million increase in total revenues, a
$1.3 million gain recognized on large
dispositions, and a $0.7 million
decrease in interest expense, offset by a $7.4 million increase in total expenses, which
mainly consisted of a $3.9 million
increase in general and administrative expenses, $1.9 million higher cost of timberland sales and
$1.7 million higher depletion
expense. General and administrative expenses increased primarily as
a result of recognizing post-employment benefits of $3.5 million related to the retirement of our
former CEO in January 2020.
Impact of COVID-19 and Updated Guidance
Recognizing considerable ongoing economic uncertainty associated
with the global pandemic, CatchMark also reported on its potential
near-term effects on operations, financial results, and
liquidity.
- The company's delivered wood sales model and fiber supply
agreements enable meeting pulpwood volume targets with customers in
its high-demand mill markets in the U.S. South.
- The demand for pulpwood, which normally comprises 50% to 60% of
our harvest volumes, has remained strong and fits with CatchMark's
plan to execute on seasonal thinning priorities.
- After a significant decline in sawlog demand early in April,
mill customers in CatchMark markets have begun to recover, filling
new orders based on supply chain demand.
- The company has closed $1.0
million in timberlands sales to date during the second
quarter and anticipates completing additional transactions during
the quarter as its land sales pipeline remains active for the
remainder of the year.
- Recent agreements to amend company debt covenants increased
working capital liquidity under its revolving credit facility by
$25 million and the company does not
have near-term exposure to refinancing or maturity risk.
Chief Executive Officer Davis said: "Since we are not a
manufacturer, we are not subject to the sharp drop in lumber prices
and volatility associated with those operations. And the work we
did over the past 18 months to strengthen our balance sheet and
improve liquidity helps keep us on a sound financial footing. In
the meantime, our trees are still growing in the forest. We have
had to defer some sawtimber sales, but we have not lost revenues,
which can be generated through future harvests as markets continue
to recover."
As a result of the pandemic-driven economic downturn and
assuming a moderate economic rebound over the remainder of the
year, CatchMark projects updated guidance for full-year
2020: A GAAP net loss of between $10.2
million and $12.2 million;
Adjusted EBITDA between $43 million
and $50 million; harvest volumes
between 2.2 million and 2.4 million tons, a reduction of less than
10% due to lower expected sawtimber volumes; and timberland sales
of $13 million to $15 million. Original full-year 2020 guidance has
not changed for: pulpwood volumes; harvest volumes derived from the
U.S. South region, which remain at approximately 95%; sawtimber
mix, which remains at approximately 40% in the U.S. South and
approximately 80% in the Pacific Northwest; and asset management
fee revenue, which remains between $11 million and $12
million.
Davis said: "Despite COVID-19's toll on the overall economy, we
expect to continue to meet our goal of delivering an attractive
dividend fully covered by cash flow from operations and, if needed,
cash on hand."
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 March 31,
2020, Adjusted EBITDA was $12.9
million, a $2.7 million
increase from the three months ended March
31, 2019, primarily due to a $2.6
million increase in net timberland sales, a $1.7 million increase in net timber sales, offset
by a $0.7 million decrease in
Adjusted EBITDA generated by the Dawsonville Bluffs joint venture,
a $0.3 million increase in general
and administrative expense, and a $0.2
million increase in other operating expenses.
Reconciliation of net loss to Adjusted EBITDA for the three
months ended March 31, 2020 and 2019
follows:
|
|
|
|
|
Three Months Ended
March 31,
|
(in
thousands)
|
Updated
2020 Guidance
|
|
Original
2020 Guidance
|
|
2020
|
|
2019
|
Net loss
|
$(10,200) -
(12,200)
|
|
$(8,500) –
(14,500)
|
|
$
|
(4,249)
|
|
|
$
|
(30,395)
|
|
Add:
|
|
|
|
|
|
|
|
Depletion
|
26,000 –
29,000
|
|
30,000 –
33,000
|
|
6,941
|
|
|
5,268
|
|
Interest expense
(1)
|
15,000
|
|
16,000
|
|
3,250
|
|
|
4,372
|
|
Amortization
(1)
|
—
|
|
—
|
|
758
|
|
|
458
|
|
Depletion,
amortization, basis of
timberland, mitigation credits sold
included in loss from unconsolidated
joint venture (2)
|
—
|
|
—
|
|
—
|
|
|
395
|
|
Basis of timberland
sold, lease terminations
and other (3)
|
9,000 –
11,000
|
|
11,000
|
|
3,276
|
|
|
1,807
|
|
Stock-based
compensation expense
|
4,000
|
|
3,000
|
|
1,872
|
|
|
659
|
|
Gain on large
dispositions (4)
|
(1,300)
|
|
(500) –
(1,500)
|
|
(1,279)
|
|
|
—
|
|
HLBV loss from
unconsolidated
joint venture (5)
|
—
|
|
—
|
|
—
|
|
|
27,488
|
|
Post-employment
benefits (6)
|
2,286
|
|
3,000
|
|
2,286
|
|
|
—
|
|
Other
(7)
|
214
|
|
—
|
|
34
|
|
|
110
|
|
Adjusted
EBITDA
|
$43,000 -
$50,000
|
|
$48,000 -
$56,000
|
|
$
|
12,889
|
|
|
$
|
10,162
|
|
|
|
(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 accompanying consolidated statements of operations. Includes
non-cash basis of timber and timberland assets written-off related
to timberland sold, terminations of timberland leases and casualty
losses.
|
(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)
|
Reflects one-time,
non-recurring post-employment benefits associated with the
retirement of our former CEO, including severance pay, payroll
taxes, professional fees, and accrued dividend
equivalents.
|
(7)
|
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
The company will host a conference call and live webcast at
10 a.m. ET on Tuesday, May 5, 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 March 31, 2020
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, statements about our expectations
regarding the impact of the COVID-19 pandemic on our operations,
financial results and liquidity, as well as the markets in which we
operate and the demand for our timber, our expectations regarding
future dividend payments and dividend coverage, our delivered wood
sales and supply agreements providing a reliable source of demand
from creditworthy counterparties, our ability to generate revenues
in the future that were delayed by deferred sales, our expectations
regarding our harvest volumes and mix for the remainder of 2020,
and our updated 2020 financial guidance. 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, including
as a result of the COVID-19 pandemic and the measures taken as a
response thereto; (iii) a downturn in the real estate market,
including decreases 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 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, 2019, Part II,
Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the
quarter ended March 31, 2020, 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
March 31,
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
Timber
sales
|
$
|
18,166
|
|
|
$
|
16,551
|
|
Timberland
sales
|
4,779
|
|
|
2,090
|
|
Asset management
fees
|
2,975
|
|
|
2,842
|
|
Other
revenues
|
1,052
|
|
|
1,090
|
|
|
26,972
|
|
|
22,573
|
|
|
|
|
|
Contract logging and
hauling costs
|
7,277
|
|
|
7,356
|
|
Depletion
|
6,941
|
|
|
5,268
|
|
Cost of timberland
sales
|
3,422
|
|
|
1,560
|
|
Forestry management
expenses
|
1,834
|
|
|
1,734
|
|
General and
administrative expenses
|
7,267
|
|
|
3,363
|
|
Land rent
expense
|
124
|
|
|
142
|
|
Other operating
expenses
|
1,636
|
|
|
1,644
|
|
|
28,501
|
|
|
21,067
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest
income
|
46
|
|
|
30
|
|
Interest
expense
|
(3,957)
|
|
|
(4,622)
|
|
Gain on large
dispositions
|
1,279
|
|
|
—
|
|
|
(2,632)
|
|
|
(4,592)
|
|
|
|
|
|
Loss before
unconsolidated joint ventures
|
(4,161)
|
|
|
(3,086)
|
|
|
|
|
|
Income (loss) from
unconsolidated joint ventures:
|
|
|
|
Triple T
|
—
|
|
|
(27,488)
|
|
Dawsonville
Bluffs
|
(88)
|
|
|
179
|
|
|
(88)
|
|
|
(27,309)
|
|
|
|
|
|
Net
loss
|
$
|
(4,249)
|
|
|
$
|
(30,395)
|
|
|
|
|
|
Weighted-average
shares outstanding - basic and diluted
|
48,989
|
|
|
49,063
|
|
|
|
|
|
Net loss per-share
- basic and diluted
|
$
|
(0.09)
|
|
|
$
|
(0.62)
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(in thousands,
except for per-share amounts)
|
|
|
(Unaudited)
March 31, 2020
|
|
December 31,
2019
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
10,412
|
|
|
$
|
11,487
|
|
Accounts
receivable
|
5,374
|
|
|
7,998
|
|
Prepaid expenses and
other assets
|
6,162
|
|
|
5,459
|
|
Operating lease
right-of-use asset
|
3,049
|
|
|
3,120
|
|
Deferred financing
costs
|
228
|
|
|
246
|
|
Timber
assets:
|
|
|
|
Timber and
timberlands, net
|
606,461
|
|
|
633,581
|
|
Intangible lease
assets, less accumulated amortization of $949
and $948 as of March 31, 2020 and December 31, 2019,
respectively
|
8
|
|
|
9
|
|
Investment in
unconsolidated joint ventures
|
1,478
|
|
|
1,965
|
|
Total
assets
|
$
|
633,172
|
|
|
$
|
663,865
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
6,739
|
|
|
$
|
3,580
|
|
Operating lease
liability
|
3,181
|
|
|
3,242
|
|
Other
liabilities
|
34,745
|
|
|
10,853
|
|
Notes payable and
lines of credit, less net deferred financing costs
|
432,326
|
|
|
452,987
|
|
Total
liabilities
|
476,991
|
|
|
470,662
|
|
|
|
|
|
Commitments and
Contingencies
|
—
|
|
|
—
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Class A common stock,
$0.01 par value; 900,000 shares authorized; 48,747
and 49,008 shares issued and outstanding as of March 31, 2020
and
December 31, 2019, respectively
|
487
|
|
|
490
|
|
Additional paid-in
capital
|
726,939
|
|
|
729,274
|
|
Accumulated deficit
and distributions
|
(539,660)
|
|
|
(528,847)
|
|
Accumulated other
comprehensive loss
|
(32,754)
|
|
|
(8,276)
|
|
Total stockholders'
equity
|
155,012
|
|
|
192,641
|
|
Noncontrolling
interests
|
1,169
|
|
|
562
|
|
Total
equity
|
156,181
|
|
|
193,203
|
|
Total liabilities and
equity
|
$
|
633,172
|
|
|
$
|
663,865
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
Three Months
Ended
March 31,
|
|
2020
|
|
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
Net loss
|
$
|
(4,249)
|
|
|
$
|
(30,395)
|
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
Depletion
|
6,941
|
|
|
5,268
|
|
Basis of timberland
sold, lease terminations and other
|
3,276
|
|
|
1,807
|
|
Stock-based
compensation expense
|
1,872
|
|
|
659
|
|
Noncash interest
expense
|
707
|
|
|
250
|
|
Other
amortization
|
51
|
|
|
208
|
|
Gain on large
dispositions
|
(1,279)
|
|
|
—
|
|
Loss from
unconsolidated joint ventures
|
88
|
|
|
27,309
|
|
Operating
distributions from unconsolidated joint ventures
|
—
|
|
|
179
|
|
Interest paid under
swaps with other-than-insignificant
financing element
|
340
|
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
1,619
|
|
|
1,363
|
|
Prepaid expenses and
other assets
|
359
|
|
|
513
|
|
Accounts payable and
accrued expenses
|
2,576
|
|
|
(1,109)
|
|
Other
liabilities
|
(1,042)
|
|
|
(805)
|
|
Net cash provided by
operating activities
|
11,259
|
|
|
5,247
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(2,712)
|
|
|
(1,259)
|
|
Distributions from
unconsolidated joint ventures
|
400
|
|
|
796
|
|
Net proceeds from
large dispositions
|
20,863
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
18,551
|
|
|
(463)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Repayments of note
payable
|
(20,850)
|
|
|
—
|
|
Financing costs
paid
|
(30)
|
|
|
(31)
|
|
Interest paid under
swaps with other-than-insignificant
financing element
|
(340)
|
|
|
—
|
|
Dividends/distributions paid
|
(6,648)
|
|
|
(6,578)
|
|
Repurchases of common
shares
|
(2,052)
|
|
|
(1,004)
|
|
Repurchase of common
shares for minimum tax withholding
|
(965)
|
|
|
(365)
|
|
Net cash used in
financing activities
|
(30,885)
|
|
|
(7,978)
|
|
Net change in cash
and cash equivalents
|
(1,075)
|
|
|
(3,194)
|
|
Cash and cash
equivalents, beginning of period
|
11,487
|
|
|
5,614
|
|
Cash and cash
equivalents, end of period
|
$
|
10,412
|
|
|
$
|
2,420
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
SELECTED DATA
(UNAUDITED)
|
|
|
|
|
|
|
2020
|
|
2019
|
(in thousands,
except for per-ton, per-acre amounts)
|
|
|
Q1
|
|
Q1
|
Consolidated
|
|
|
|
|
|
Timber Sales
Volume (tons)
|
|
|
|
|
|
Pulpwood
|
|
|
324
|
|
295
|
Sawtimber
(1)
|
|
|
271
|
|
192
|
Total
|
|
|
595
|
|
487
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
Pulpwood
|
|
|
54%
|
|
60%
|
Sawtimber
(1)
|
|
|
46%
|
|
40%
|
|
|
|
|
|
|
Period-end
Acres
|
|
|
|
|
|
Fee
|
|
|
393
|
|
432
|
Lease
|
|
|
22
|
|
27
|
Wholly-Owned
Total
|
|
|
415
|
|
459
|
Joint Venture
Interest (6)
|
|
|
1,092
|
|
1,100
|
Total
|
|
|
1,507
|
|
1,559
|
|
|
|
|
|
|
U.S.
South
|
|
|
|
|
|
Timber Sales
Volume (tons)
|
|
|
|
|
|
Pulpwood
|
|
|
320
|
|
294
|
Sawtimber
(1)
|
|
|
250
|
|
188
|
Total
|
|
|
570
|
|
482
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
Pulpwood
|
|
|
56%
|
|
61%
|
Sawtimber
(1)
|
|
|
44%
|
|
39%
|
Delivered % as of
total volume
|
|
|
63%
|
|
79%
|
Stumpage % as of
total volume (5)
|
|
|
37%
|
|
21%
|
|
|
|
|
|
|
Net Timber
Sales Price ($ per ton) (2)
|
|
|
|
|
|
Pulpwood
|
|
|
$
|
13
|
|
$
|
15
|
Sawtimber
(1)
|
|
|
$
|
23
|
|
$
|
24
|
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
|
|
Gross
Sales
|
|
|
$
|
4,779
|
|
$
|
2,090
|
Acres Sold
|
|
|
3,000
|
|
900
|
% of fee
acres
|
|
|
0.7%
|
|
0.2%
|
Price per acre
(3)
|
|
|
$
|
1,627
|
|
$
|
2,236
|
|
|
|
|
|
|
Large
Dispositions (4)
|
|
|
|
|
|
Gross
Sales
|
|
|
$
|
21,250
|
|
$
|
—
|
Acres Sold
|
|
|
14,400
|
|
—
|
Price per acre
(3)
|
|
|
$
|
1,474
|
|
$
|
—
|
Gain
|
|
|
$
|
1,279
|
|
$
|
—
|
|
|
|
|
|
|
Pacific
Northwest
|
|
|
|
|
|
Timber Sales
Volume (tons)
|
|
|
|
|
|
Pulpwood
|
|
|
4
|
|
—
|
Sawtimber
(1)
|
|
|
21
|
|
5
|
Total
|
|
|
25
|
|
5
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
Pulpwood
|
|
|
18%
|
|
5%
|
Sawtimber
|
|
|
82%
|
|
95%
|
Delivered % as of
total volume
|
|
|
84%
|
|
100%
|
Stumpage % as of
total volume
|
|
|
16%
|
|
—%
|
|
|
|
|
|
|
Delivered
Timber Sales Price ($ per ton) (2)
|
|
|
|
|
|
Pulpwood
|
|
|
$
|
31
|
|
$
|
40
|
Sawtimber
|
|
|
$
|
91
|
|
$
|
101
|
|
|
|
(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.
|
(3) Excludes
value of timber reservations, which retained 0.1 million tons of
merchantable inventory with a mix of 49%
sawtimber for the
quarter ended March 31, 2020. There was no
timber reservation for the prior year quarter.
|
(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) Includes 1%
from lump-sum sales in 2019
|
(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
March
31,
|
|
2020
|
|
2019
|
Timber
sales
|
$
|
18,166
|
|
|
$
|
16,551
|
|
Other
revenue
|
|
1,052
|
|
|
|
1,090
|
|
(-)
Contract logging and hauling costs
|
|
(7,277)
|
|
|
|
(7,356)
|
|
(-)
Forestry management expenses
|
|
(1,834)
|
|
|
|
(1,734)
|
|
(-)
Land rent expense
|
|
(124)
|
|
|
|
(142)
|
|
(-)
Other operating expenses
|
|
(1,636)
|
|
|
|
(1,644)
|
|
(+)
Stock-based compensation
|
|
115
|
|
|
|
88
|
|
(+/-)
Other
|
|
145
|
|
|
|
407
|
|
Harvest
EBITDA
|
|
8,607
|
|
|
|
7,260
|
|
|
|
|
|
|
|
Timberland
sales
|
|
4,779
|
|
|
|
2,090
|
|
(-)
Cost of timberland sales
|
|
(3,422)
|
|
|
|
(1,560)
|
|
(+) Basis
of timberland sold
|
|
3,161
|
|
|
|
1,427
|
|
Real estate
EBITDA
|
|
4,518
|
|
|
|
1,957
|
|
|
|
|
|
|
|
Asset management
fees
|
|
2,975
|
|
|
|
2,842
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
|
(88)
|
|
|
|
573
|
|
Investment
management EBITDA
|
|
2,887
|
|
|
|
3,415
|
|
|
|
|
|
|
|
Total operating
EBITDA
|
|
16,012
|
|
|
|
12,632
|
|
|
|
|
|
|
|
(-) General and
administrative expenses
|
|
(7,267)
|
|
|
|
(3,363)
|
|
(+)
Stock-based compensation
|
|
1,757
|
|
|
|
571
|
|
(+)
Interest income
|
|
46
|
|
|
|
30
|
|
(+)
Post-employment benefits
|
|
2,286
|
|
|
|
—
|
|
(+/-)
Other
|
|
55
|
|
|
|
292
|
|
Corporate
EBITDA
|
|
(3,123)
|
|
|
|
(2,470)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,889
|
|
|
$
|
10,162
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
CASH AVAILABLE FOR
DISTRIBUTION (UNAUDITED)
(in thousands,
except for per share data)
|
|
|
Three Months
Ended
March
31,
|
|
2020
|
|
2019
|
Cash Provided by
Operating Activities
|
$
|
11,259
|
|
|
$
|
5,247
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(2,712)
|
|
|
(1,259)
|
|
Working capital
change
|
(3,512)
|
|
|
38
|
|
Distributions from
unconsolidated joint ventures
|
400
|
|
|
796
|
|
Post-employment
benefits
|
2,286
|
|
|
—
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(340)
|
|
|
—
|
|
Other
|
34
|
|
|
110
|
|
Cash Available for
Distribution (1)
|
$
|
7,415
|
|
|
$
|
4,932
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,889
|
|
|
$
|
10,162
|
|
Interest
paid
|
(3,250)
|
|
|
(4,372)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(2,712)
|
|
|
(1,259)
|
|
Distributions from
unconsolidated joint ventures
|
400
|
|
|
975
|
|
Adjusted EBITDA from
unconsolidated joint ventures
|
88
|
|
|
(574)
|
|
Cash Available for
Distributions (1)
|
$
|
7,415
|
|
|
$
|
4,932
|
|
|
|
|
|
Dividends /
distributions paid
|
$
|
6,648
|
|
|
$
|
6,578
|
|
|
|
|
|
Weighted-average
shares outstanding, end of period
|
48,989
|
|
|
49,063
|
|
|
|
|
|
Dividends per
Share
|
$
|
0.135
|
|
|
$
|
0.135
|
|
|
(1) Cash
Available for Distribution (CAD) is a non-GAAP financial
measure. It is calculated as cash provided by
operating
activities, adjusted for capital expenditures (excluding
timberland acquisitions), working capital
changes, cash
distributions from unconsolidated joint ventures and
certain cash expenditures 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
activities.
|
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SOURCE CatchMark Timber Trust, Inc.