ATLANTA, Oct. 29, 2020 /PRNewswire/ -- CatchMark
Timber Trust, Inc. (NYSE: CTT) today reported third quarter
2020 results, announcing it remains on track to meet its full-year
operating plan after effectively managing through weather-related
issues, wildfire disruptions, and COVID-19 impacts during the
quarter. The company also declared a cash dividend of $0.135 per share for its common stockholders of
record as of November 30, 2020,
payable on December 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_Logo.jpg)
Brian M. Davis, CatchMark's Chief
Executive Officer, said: "We are encouraged by the evident
momentum in homebuilding recovery driven by the combination of
favorable demographics, low interest rates, and low historical
housing supply. These trends bode well for product price
improvements in 2021 and beyond to meet rising demand for timber
products. Despite 2020's weather and pandemic related challenges,
we delivered consistent cash flow during the third quarter and
stayed on course to achieve our full-year operating objectives. At
the same time, we continue to realize the benefits of our
established and proven business strategy, focusing on prime
properties in high demand mill markets. As a result, we continue to
attain premium pricing for our timber sales significantly above
industry averages. In addition, we remain on course to meet our
timberland sales goals for the year."
The following table summarizes the current quarter and
comparable prior year period results:
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
(in millions
except for tons and acres)
|
Three Months
Ended
September 30, 2020
|
|
Three Months
Ended
September 30, 2019
|
|
Dollars, Tons or
Acres
|
|
%
|
Results of
Operations
|
|
|
|
|
|
|
|
Revenues
|
$
|
24.6
|
|
|
$
|
26.4
|
|
|
$
(1.8)
|
|
|
(7)
|
%
|
Net Loss
|
$
|
(4.1)
|
|
|
$
|
(20.6)
|
|
|
$
16.4
|
|
|
80
|
%
|
Adjusted
EBITDA
|
$
|
12.4
|
|
|
$
|
16.5
|
|
|
$
(4.1)
|
|
|
(25)
|
%
|
|
|
|
|
|
|
|
|
Harvest Volume
(tons)
|
580,528
|
|
|
633,731
|
|
|
(53,203)
|
|
|
(8)
|
%
|
Acres Sold
|
1,200
|
|
|
1,100
|
|
|
100
|
|
|
8
|
%
|
Business Segments Overview
Harvest Operations
|
|
|
|
|
Change
|
(in
millions)
|
Three Months
Ended
September 30, 2020
|
|
Three Months
Ended
September 30, 2019
|
|
$
|
|
%
|
Timber Sales
Revenue
|
$
|
18.1
|
|
|
$
|
19.7
|
|
|
$
|
(1.6)
|
|
|
(8)
|
%
|
Harvest
EBITDA
|
$
|
8.5
|
|
|
$
|
9.4
|
|
|
$
|
(0.9)
|
|
|
(9)
|
%
|
The homebuilding recovery and strong demand for pulp-related
products — continuing through the pandemic — have supported
consistent harvest volume flow in CatchMark's mill markets.
Disruptions to operations from hurricanes and fires deferred some
revenues to the fourth quarter, but are not expected to result in
lost revenues since company timberlands avoided any direct
damage.
U.S. South Activity: As expected, third
quarter 2020 harvests were lower compared to the 2019 period when
CatchMark had increased activity to catch up from deferred harvests
earlier that year. In addition, wet conditions, concentrated in the
Carolinas, delayed some harvests during the quarter. As a result,
third quarter harvest volumes decreased by 9% and together with
lower stumpage prices resulted in a 14% decline in timber sales
revenue year over year.
- Pricing Premiums Maintained: Stumpage prices improved
from the second quarter and maintained significant premiums over
South-wide averages tracked by TimberMart-South, resulting from
CatchMark micro-market advantages and the quality of harvests from
its prime timberlands. Stumpage prices were lower year over year —
6% for pulpwood and 7% for sawtimber — trending with much larger
11% and 13% decreases in South-wide averages. Sawtimber stumpage
prices decreased as compared to prior year due to a heavier mix of
chip-n-saw and smaller diameter sawtimber as a result of shifting
market demands.
Pacific Northwest Activity: Pacific Northwest
harvest volumes increased 17% year over year to 27,990 tons from
23,957 tons in the three months ended September 30, 2019.
- Wildfire Impacts Contained: CatchMark's timberlands
avoided any damage from rampant region-wide wildfires and its
delivered sawtimber prices increased 26% due to strong demand
fundamentals fueled by increased housing starts, lack of finished
lumber in the supply chain and reduced mill inventories caused by
disruptions at other suppliers. Shutdowns of harvesting activities
ordered by local governments interrupted operations temporarily
towards the end of the quarter.
Plan Outlook: Storm and fire related impacts
during the quarter did not alter CatchMark's outlook for meeting
full-year 2020 harvest plans. Any third quarter deferrals are
expected to be made up by increased fourth quarter volumes.
Todd P. Reitz, CatchMark's Chief
Resources Officer, said: "During the quarter, our delivered wood
program provided strong production opportunities in our superior
Georgia micro-markets. Sales under
our fiber supply agreements remained stable and consistent, helping
ensure steady cash flows and offsetting delayed production in the
Carolinas and Pacific Northwest due to weather and fire
disruptions. Record high lumber pricing helped increase log prices
nearly 30% in the Pacific Northwest driven by housing-related
fundamentals. These positive market factors were evident in the
U.S. South to a lesser extent as disciplined mill operators
maintained tight finished-product inventories in case of pandemic
related market reversals. But we are optimistic that increased
homebuilding activity and heightened demand should prove beneficial
in further boosting log prices and revenues in coming
quarters."
Real Estate
|
|
|
|
|
Change
|
(in
millions)
|
Three Months
Ended
September 30, 2020
|
|
Three Months
Ended
September 30, 2019
|
|
$
|
|
%
|
Timberland Sales
Revenue
|
$
|
2.4
|
|
|
$
|
2.3
|
|
|
$
|
0.2
|
|
|
7
|
%
|
Real Estate
EBITDA
|
$
|
2.3
|
|
|
$
|
2.0
|
|
|
$
|
0.2
|
|
|
12
|
%
|
Higher Timberland Sales: Timberland sales
revenue increased by $0.2 million
year over year due to selling more acres in the current
quarter.
- CatchMark sold 1,200 acres for $2.4
million compared to 1,100 acres for $2.3 million in third quarter 2019.
- The lower per-acre sales price — $2,047 compared to $2,166 — resulted from lower average merchantable
timber stocking levels.
Acquisitions and Large Dispositions: No
acquisitions or large dispositions were transacted during the
quarter.
Plan Outlook: Timberland sales remain on plan
for full-year 2020.
Investment Management
|
|
|
|
|
Change
|
(in
millions)
|
Three Months
Ended
September 30, 2020
|
|
Three Months
Ended
September 30, 2019
|
|
$
|
|
%
|
Asset Management Fee
Revenue
|
$
|
3.1
|
|
|
$
|
3.4
|
|
|
$
|
(0.3)
|
|
|
(9)
|
%
|
Investment Management
EBITDA
|
$
|
3.7
|
|
|
$
|
7.3
|
|
|
$
|
(3.6)
|
|
|
(50)
|
%
|
Results reflect the wind-down of the Dawsonville Bluffs joint
venture, which had provided significant earnings and
incentive-based promotes during third quarter 2019, partially
offset by recently increased asset management fees from the Triple
T joint venture. These increased fees resulted from the amendment
to the joint venture's asset management agreement completed during
second quarter 2020.
- Triple T harvest operations, benefiting from the renegotiated
wood supply agreement with Georgia-Pacific, remained on plan during the
quarter and generated positive cash flow from operations.
Davis said: "In the wake of the Georgia-Pacific agreement, CatchMark is
particularly focused on its initiatives to re-capitalize the joint
venture and maximize returns for the company and our partners in
due course."
Capital Position and Share Repurchases
- Liquidity: As of September 30, 2020, CatchMark had $150.9 million of borrowing capacity remaining
under its credit facilities — $115.9
million under the multi-draw term facility and $35.0 million under the revolving credit
facility.
- Share Repurchases: No share repurchases
occurred under the share repurchase program during the quarter.
Approximately $13.7 million remains
in the program for future repurchases as of September 30, 2020.
Ursula Godoy-Arbelaez,
CatchMark's Chief Financial Officer, said: "We continue to benefit
from a strong capital position highlighted by ample liquidity and
low cost of capital with no near-term refinancing or maturity risk.
As a result, we are well-positioned for future growth as direct
acquisition and joint venture investment opportunities present
themselves."
Conference Call
The company will host a conference call and live webcast at 12
p.m. ET on Friday, October 30, 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 is available at
www.catchmark.com or here. A replay of
this webcast will be archived on the company's website immediately
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 and Texas. For more
information, visit www.catchmark.com.
* As of September 30, 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 meeting our
full-year operating plan and result objectives, including with
respect to harvest volumes and timberland sales, the momentum in
the homebuilding recovery and its impact on product price
improvements in 2021 as well as our revenues, our expectation to
deliver deferred harvest volume and receive deferred revenues in
the fourth quarter of 2020, maximizing returns from the Triple T
joint venture for us and our partners, and having ample liquidity
and being well-positioned for future growth through direct
acquisitions and joint ventures. 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 could decline 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
Timber
sales
|
$
|
18,060
|
|
|
$
|
19,706
|
|
|
$
|
52,399
|
|
|
$
|
52,530
|
|
Timberland
sales
|
2,430
|
|
|
2,264
|
|
|
8,882
|
|
|
12,578
|
|
Asset management
fees
|
3,118
|
|
|
3,436
|
|
|
8,950
|
|
|
9,119
|
|
Other
revenues
|
1,005
|
|
|
974
|
|
|
3,111
|
|
|
3,386
|
|
|
24,613
|
|
|
26,380
|
|
|
73,342
|
|
|
77,613
|
|
Expenses
|
|
|
|
|
|
|
|
Contract logging and
hauling costs
|
7,688
|
|
|
8,269
|
|
|
21,943
|
|
|
22,778
|
|
Depletion
|
7,286
|
|
|
8,235
|
|
|
20,934
|
|
|
19,533
|
|
Cost of timberland
sales
|
1,926
|
|
|
2,081
|
|
|
6,811
|
|
|
10,562
|
|
Forestry management
expenses
|
1,666
|
|
|
1,656
|
|
|
5,171
|
|
|
4,982
|
|
General and
administrative expenses
|
2,768
|
|
|
2,984
|
|
|
13,059
|
|
|
9,550
|
|
Land rent
expense
|
114
|
|
|
125
|
|
|
334
|
|
|
400
|
|
Other operating
expenses
|
1,458
|
|
|
1,341
|
|
|
4,679
|
|
|
4,614
|
|
|
22,906
|
|
|
24,691
|
|
|
72,931
|
|
|
72,419
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
1
|
|
|
80
|
|
|
51
|
|
|
142
|
|
Interest
expense
|
(3,563)
|
|
|
(4,472)
|
|
|
(11,590)
|
|
|
(13,803)
|
|
Gain on large
dispositions
|
—
|
|
|
7,197
|
|
|
1,274
|
|
|
7,961
|
|
|
(3,562)
|
|
|
2,805
|
|
|
(10,265)
|
|
|
(5,700)
|
|
|
|
|
|
|
|
|
|
Income (loss)
before unconsolidated joint ventures
|
(1,855)
|
|
|
4,494
|
|
|
(9,854)
|
|
|
(506)
|
|
|
|
|
|
|
|
|
|
Income (loss) from
unconsolidated joint ventures:
|
|
|
|
|
|
|
|
Triple T
|
(2,689)
|
|
|
(25,712)
|
|
|
(5,000)
|
|
|
(81,800)
|
|
Dawsonville
Bluffs
|
395
|
|
|
661
|
|
|
273
|
|
|
789
|
|
|
(2,294)
|
|
|
(25,051)
|
|
|
(4,727)
|
|
|
(81,011)
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(4,149)
|
|
|
$
|
(20,557)
|
|
|
$
|
(14,581)
|
|
|
$
|
(81,517)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic and diluted
|
48,766
|
|
|
49,008
|
|
|
48,833
|
|
|
49,049
|
|
|
|
|
|
|
|
|
|
Net loss per-share
- basic and diluted
|
$
|
(0.09)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.30)
|
|
|
$
|
(1.66)
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (in thousands, except for per-share
amounts)
|
|
|
September 30,
2020
|
|
December 31,
2019
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
8,034
|
|
|
$
|
11,487
|
|
Accounts
receivable
|
8,090
|
|
|
7,998
|
|
Prepaid expenses and
other assets
|
6,435
|
|
|
5,459
|
|
Operating lease
right-of-use asset
|
2,903
|
|
|
3,120
|
|
Deferred financing
costs
|
189
|
|
|
246
|
|
Timber
assets:
|
|
|
|
Timber and
timberlands, net
|
590,297
|
|
|
633,581
|
|
Intangible lease
assets
|
6
|
|
|
9
|
|
Investment
in unconsolidated joint ventures
|
1,838
|
|
|
1,965
|
|
Total
assets
|
$
|
617,792
|
|
|
$
|
663,865
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
5,923
|
|
|
$
|
3,580
|
|
Operating lease
liability
|
3,054
|
|
|
3,242
|
|
Other
liabilities
|
36,086
|
|
|
10,853
|
|
Notes payable and
lines of credit, net of deferred financing costs
|
437,236
|
|
|
452,987
|
|
Total
liabilities
|
482,299
|
|
|
470,662
|
|
|
|
|
|
Commitments and
Contingencies
|
—
|
|
|
—
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Class A common stock,
$0.01 par value; 900,000 shares authorized; 48,765 and 49,008
shares issued and outstanding as of September 30, 2020 and December
31, 2019, respectively
|
488
|
|
|
490
|
|
Additional paid-in
capital
|
727,767
|
|
|
729,274
|
|
Accumulated deficit
and distributions
|
(563,041)
|
|
|
(528,847)
|
|
Accumulated other
comprehensive loss
|
(31,204)
|
|
|
(8,276)
|
|
Total stockholders'
equity
|
134,010
|
|
|
192,641
|
|
Noncontrolling
interests
|
1,483
|
|
|
562
|
|
Total
equity
|
135,493
|
|
|
193,203
|
|
Total liabilities and
equity
|
$
|
617,792
|
|
|
$
|
663,865
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED) (in thousands)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(4,149)
|
|
|
$
|
(20,557)
|
|
|
$
|
(14,581)
|
|
|
$
|
(81,517)
|
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depletion
|
7,286
|
|
|
8,235
|
|
|
20,934
|
|
|
19,533
|
|
Basis of timberland
sold, lease terminations and other
|
1,991
|
|
|
1,854
|
|
|
6,988
|
|
|
10,329
|
|
Stock-based
compensation expense
|
630
|
|
|
803
|
|
|
3,207
|
|
|
1,952
|
|
Noncash interest
expense
|
698
|
|
|
252
|
|
|
2,469
|
|
|
816
|
|
Other
amortization
|
49
|
|
|
47
|
|
|
152
|
|
|
170
|
|
Gain on large
dispositions
|
—
|
|
|
(7,197)
|
|
|
(1,274)
|
|
|
(7,961)
|
|
Loss from
unconsolidated joint ventures
|
2,294
|
|
|
25,051
|
|
|
4,727
|
|
|
81,011
|
|
Operating
distributions from unconsolidated joint ventures
|
273
|
|
|
661
|
|
|
273
|
|
|
789
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
1,412
|
|
|
—
|
|
|
2,904
|
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(1,565)
|
|
|
1,972
|
|
|
(1,092)
|
|
|
2,007
|
|
Prepaid expenses and
other assets
|
(414)
|
|
|
(420)
|
|
|
(5)
|
|
|
221
|
|
Accounts payable and
accrued expenses
|
(697)
|
|
|
47
|
|
|
1,959
|
|
|
138
|
|
Other
liabilities
|
(191)
|
|
|
560
|
|
|
986
|
|
|
1,025
|
|
Net cash provided by
operating activities
|
7,617
|
|
|
11,308
|
|
|
27,647
|
|
|
28,513
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(566)
|
|
|
(834)
|
|
|
(4,332)
|
|
|
(3,031)
|
|
Investment in
unconsolidated joint venture
|
—
|
|
|
—
|
|
|
(5,000)
|
|
|
—
|
|
Distributions from
unconsolidated joint ventures
|
(273)
|
|
|
3,172
|
|
|
127
|
|
|
4,019
|
|
Net proceeds from
large dispositions
|
—
|
|
|
19,840
|
|
|
20,863
|
|
|
25,151
|
|
Net cash provided by
(used in) investing activities
|
(839)
|
|
|
22,178
|
|
|
11,658
|
|
|
26,139
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of notes
payable
|
—
|
|
|
(20,064)
|
|
|
(20,850)
|
|
|
(20,064)
|
|
Proceeds from notes
payable
|
—
|
|
|
—
|
|
|
5,000
|
|
|
—
|
|
Financing costs
paid
|
(15)
|
|
|
(15)
|
|
|
(1,019)
|
|
|
(48)
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(1,412)
|
|
|
—
|
|
|
(2,904)
|
|
|
—
|
|
Dividends/distributions paid
|
(6,537)
|
|
|
(6,555)
|
|
|
(19,726)
|
|
|
(19,711)
|
|
Repurchases of common
shares
|
(77)
|
|
|
(595)
|
|
|
(2,207)
|
|
|
(3,004)
|
|
Repurchase of common
shares for minimum tax withholding
|
(53)
|
|
|
—
|
|
|
(1,052)
|
|
|
(365)
|
|
Net cash used in
financing activities
|
(8,094)
|
|
|
(27,229)
|
|
|
(42,758)
|
|
|
(43,192)
|
|
Net change in cash
and cash equivalents
|
(1,316)
|
|
|
6,257
|
|
|
(3,453)
|
|
|
11,460
|
|
Cash and cash
equivalents, beginning of period
|
9,350
|
|
|
10,817
|
|
|
11,487
|
|
|
5,614
|
|
Cash and cash
equivalents, end of period
|
$
|
8,034
|
|
|
$
|
17,074
|
|
|
$
|
8,034
|
|
|
$
|
17,074
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES SELECTED DATA
(UNAUDITED)
|
|
|
|
|
|
2020
|
|
2019
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YTD
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YTD
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
324
|
|
354
|
|
349
|
|
1,028
|
|
294
|
|
304
|
|
376
|
|
974
|
Sawtimber
(1)
|
271
|
|
214
|
|
231
|
|
715
|
|
193
|
|
191
|
|
258
|
|
641
|
Total
|
595
|
|
568
|
|
580
|
|
1,743
|
|
487
|
|
495
|
|
634
|
|
1,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
54%
|
|
62%
|
|
60%
|
|
59%
|
|
60%
|
|
61%
|
|
59%
|
|
60%
|
Sawtimber
(1)
|
46%
|
|
38%
|
|
40%
|
|
41%
|
|
40%
|
|
39%
|
|
41%
|
|
40%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
Acres ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
|
393
|
|
392
|
|
391
|
|
391
|
|
432
|
|
424
|
|
413
|
|
413
|
Lease
|
22
|
|
22
|
|
22
|
|
22
|
|
27
|
|
26
|
|
26
|
|
26
|
Wholly-owned
total
|
415
|
|
414
|
|
413
|
|
413
|
|
459
|
|
450
|
|
439
|
|
439
|
Joint venture
interest (5)
|
1,092
|
|
1,092
|
|
1,085
|
|
1,085
|
|
1,104
|
|
1,100
|
|
1,094
|
|
1,094
|
Total
|
1,507
|
|
1,506
|
|
1,498
|
|
1,498
|
|
1,563
|
|
1,550
|
|
1,533
|
|
1,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
South
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
320
|
|
352
|
|
346
|
|
1,018
|
|
294
|
|
303
|
|
373
|
|
970
|
Sawtimber
(1)
|
250
|
|
195
|
|
206
|
|
651
|
|
188
|
|
177
|
|
237
|
|
602
|
Total
|
570
|
|
547
|
|
552
|
|
1,669
|
|
482
|
|
480
|
|
610
|
|
1,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
56%
|
|
64%
|
|
63%
|
|
61%
|
|
61%
|
|
63%
|
|
61%
|
|
62%
|
Sawtimber
(1)
|
44%
|
|
36%
|
|
37%
|
|
39%
|
|
39%
|
|
37%
|
|
39%
|
|
38%
|
Delivered % as of
total volume
|
63%
|
|
61%
|
|
63%
|
|
62%
|
|
79%
|
|
74%
|
|
64%
|
|
72%
|
Stumpage % as of
total volume
|
37%
|
|
39%
|
|
37%
|
|
38%
|
|
21%
|
|
26%
|
|
36%
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Timber
Sales Price ($ per ton) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$13
|
|
$12
|
|
$13
|
|
$13
|
|
$15
|
|
$14
|
|
$14
|
|
$14
|
Sawtimber
(1)
|
$23
|
|
$23
|
|
$22
|
|
$23
|
|
$24
|
|
$24
|
|
$24
|
|
$24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales
('000)
|
$4,779
|
|
$1,673
|
|
$2,430
|
|
$8,882
|
|
$2,090
|
|
$8,224
|
|
$2,264
|
|
$12,578
|
Acres sold
|
3,000
|
|
1,100
|
|
1,200
|
|
5,200
|
|
900
|
|
4,000
|
|
1,100
|
|
6,000
|
% of fee
acres
|
0.7%
|
|
0.3%
|
|
0.3%
|
|
1.3%
|
|
0.2%
|
|
0.9%
|
|
0.2%
|
|
1.4%
|
Price per acre
(3)
|
$1,627
|
|
$1,564
|
|
$2,047
|
|
$1,710
|
|
$2,236
|
|
$2,072
|
|
$2,166
|
|
$2,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large
Dispositions (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales
('000)
|
$21,250
|
|
$—
|
|
$—
|
|
$21,250
|
|
$—
|
|
$5,475
|
|
$19,920
|
|
$25,395
|
Acres sold
|
14,400
|
|
—
|
|
—
|
|
14,400
|
|
—
|
|
3,600
|
|
10,800
|
|
14,400
|
Price per acre
(3)
|
$1,474
|
|
$—
|
|
$—
|
|
$1,474
|
|
$—
|
|
$1,500
|
|
$1,845
|
|
$1,758
|
Gain
('000)
|
$1,274
|
|
$—
|
|
$—
|
|
$1,274
|
|
$—
|
|
$764
|
|
$7,197
|
|
$7,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific
Northwest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons,'000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
4
|
|
3
|
|
3
|
|
10
|
|
—
|
|
1
|
|
3
|
|
5
|
Sawtimber
(1)
|
21
|
|
18
|
|
25
|
|
64
|
|
5
|
|
13
|
|
21
|
|
38
|
Total
|
25
|
|
21
|
|
28
|
|
74
|
|
5
|
|
14
|
|
24
|
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
18%
|
|
13%
|
|
12%
|
|
14%
|
|
—%
|
|
9%
|
|
13%
|
|
11%
|
Sawtimber
|
82%
|
|
87%
|
|
88%
|
|
86%
|
|
100%
|
|
91%
|
|
87%
|
|
89%
|
Delivered % as of
total volume
|
84%
|
|
100%
|
|
100%
|
|
95%
|
|
100%
|
|
87%
|
|
100%
|
|
96%
|
Stumpage % as of
total volume
|
16%
|
|
—%
|
|
—%
|
|
5%
|
|
—%
|
|
13%
|
|
—%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivered
Timber Sales Price ($ per ton) (2)
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$31
|
|
$29
|
|
$28
|
|
$30
|
|
$40
|
|
$37
|
|
$30
|
|
$33
|
Sawtimber
|
$91
|
|
$84
|
|
$105
|
|
$94
|
|
$101
|
|
$94
|
|
$83
|
|
$89
|
|
|
(1)
|
Includes chip-n-saw
and sawtimber.
|
|
|
(2)
|
Prices per ton are
rounded to the nearest dollar.
|
|
|
(3)
|
Excludes value of
timber reservations. For the quarter ended September 30, 2020, we
retained 8,200 tons of merchantable inventory with a book basis of
$86,100. No timber reservations were retained for the quarter ended
September 30, 2019. For the nine months ended September 30, 2020
and 2019, we retained 123,400 tons and 5,900 tons of merchantable
inventory, with a book basis of $981,200 and $69,000,
respectively.
|
|
|
(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)
|
Represents properties
owned by Triple T joint venture in which CatchMark owns a common
partnership interest and has contributed 22.0% of total equity
contributions; 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.
|
|
|
(6)
|
Delivered timber
sales price includes contract logging and hauling costs.
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET LOSS
TO ADJUSTED EBITDA (UNAUDITED) (in
thousands)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(in
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
loss
|
$
|
(4,149)
|
|
|
$
|
(20,557)
|
|
|
$
|
(14,581)
|
|
|
$
|
(81,517)
|
|
Add:
|
|
|
|
|
|
|
|
Depletion
|
7,286
|
|
|
8,235
|
|
|
20,934
|
|
|
19,533
|
|
Interest expense
(2)
|
2,865
|
|
|
4,220
|
|
|
9,121
|
|
|
12,987
|
|
Amortization
(2)
|
747
|
|
|
299
|
|
|
2,621
|
|
|
986
|
|
Depletion,
amortization, basis of timberland, mitigation credits sold included
in loss from unconsolidated joint venture (3)
|
140
|
|
|
3,152
|
|
|
140
|
|
|
3,547
|
|
Basis of timberland
sold, lease terminations and other (4)
|
1,991
|
|
|
1,854
|
|
|
6,988
|
|
|
10,329
|
|
Stock-based
compensation expense
|
630
|
|
|
803
|
|
|
3,207
|
|
|
1,952
|
|
Gain on large
dispositions (5)
|
—
|
|
|
(7,197)
|
|
|
(1,274)
|
|
|
(7,961)
|
|
HLBV loss from
unconsolidated joint venture (6)
|
2,689
|
|
|
25,712
|
|
|
5,000
|
|
|
81,800
|
|
Post-employment
benefits (7)
|
10
|
|
|
—
|
|
|
2,307
|
|
|
—
|
|
Other
(8)
|
190
|
|
|
1
|
|
|
260
|
|
|
115
|
|
Adjusted
EBITDA (1)
|
$
|
12,399
|
|
|
$
|
16,522
|
|
|
$
|
34,723
|
|
|
$
|
41,771
|
|
|
|
(1)
|
Adjusted 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. 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 above,
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.
|
|
|
(2)
|
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.
|
|
|
(3)
|
Reflects our share of
depletion, amortization, and basis of timberland and mitigation
credits sold of the unconsolidated Dawsonville Bluffs joint
venture.
|
|
|
(4)
|
Includes non-cash
basis of timber and timberland assets written-off related to
timberland sold, terminations of timberland leases and casualty
losses.
|
|
|
(5)
|
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.
|
|
|
(6)
|
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.
|
|
|
(7)
|
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.
|
|
|
(8)
|
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.
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES ADJUSTED EBITDA BY SEGMENT
(UNAUDITED) (in thousands)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Timber
sales
|
$
|
18,060
|
|
|
$
|
19,706
|
|
|
$
|
52,399
|
|
|
$
|
52,530
|
|
Other
revenue
|
1,005
|
|
|
974
|
|
|
3,111
|
|
|
3,386
|
|
(-)
Contract logging and hauling costs
|
(7,688)
|
|
|
(8,269)
|
|
|
(21,943)
|
|
|
(22,778)
|
|
(-)
Forestry management expenses
|
(1,666)
|
|
|
(1,656)
|
|
|
(5,171)
|
|
|
(4,982)
|
|
(-)
Land rent expense
|
(114)
|
|
|
(125)
|
|
|
(334)
|
|
|
(400)
|
|
(-)
Other operating expenses
|
(1,458)
|
|
|
(1,341)
|
|
|
(4,679)
|
|
|
(4,614)
|
|
(+)
Stock-based compensation
|
110
|
|
|
74
|
|
|
307
|
|
|
189
|
|
(+/-)
Other
|
253
|
|
|
27
|
|
|
807
|
|
|
604
|
|
Harvest
EBITDA
|
8,502
|
|
|
9,390
|
|
|
24,497
|
|
|
23,935
|
|
|
|
|
|
|
|
|
|
Timberland
sales
|
2,430
|
|
|
2,264
|
|
|
8,882
|
|
|
12,578
|
|
(-)
Cost of timberland sales
|
(1,926)
|
|
|
(2,081)
|
|
|
(6,811)
|
|
|
(10,562)
|
|
(+) Basis
of timberland sold
|
1,768
|
|
|
1,853
|
|
|
6,271
|
|
|
9,805
|
|
Real estate
EBITDA
|
2,272
|
|
|
2,036
|
|
|
8,342
|
|
|
11,821
|
|
|
|
|
|
|
|
|
|
Asset management
fees
|
3,118
|
|
|
3,436
|
|
|
8,950
|
|
|
9,119
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
535
|
|
|
3,814
|
|
|
413
|
|
|
4,336
|
|
Investment
management EBITDA
|
3,653
|
|
|
7,250
|
|
|
9,363
|
|
|
13,455
|
|
|
|
|
|
|
|
|
|
Total operating
EBITDA
|
14,427
|
|
|
18,676
|
|
|
42,202
|
|
|
49,211
|
|
|
|
|
|
|
|
|
|
(-) General and
administrative expenses
|
(2,768)
|
|
|
(2,984)
|
|
|
(13,059)
|
|
|
(9,550)
|
|
(+)
Stock-based compensation
|
520
|
|
|
729
|
|
|
2,900
|
|
|
1,763
|
|
(+)
Interest income
|
1
|
|
|
80
|
|
|
51
|
|
|
142
|
|
(+)
Post-employment benefits
|
10
|
|
|
—
|
|
|
2,307
|
|
|
—
|
|
(+/-)
Other
|
209
|
|
|
21
|
|
|
322
|
|
|
205
|
|
Corporate
EBITDA
|
(2,028)
|
|
|
(2,154)
|
|
|
(7,479)
|
|
|
(7,440)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,399
|
|
|
$
|
16,522
|
|
|
$
|
34,723
|
|
|
$
|
41,771
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES CASH AVAILABLE FOR
DISTRIBUTION (UNAUDITED) (in thousands, except for per
share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September, 30
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash Provided by
Operating Activities
|
$
|
7,617
|
|
|
$
|
11,308
|
|
|
$
|
27,647
|
|
|
$
|
28,513
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(566)
|
|
|
(834)
|
|
|
(4,332)
|
|
|
(3,031)
|
|
Working capital
change
|
2,867
|
|
|
(2,159)
|
|
|
(1,848)
|
|
|
(3,391)
|
|
Distributions from
unconsolidated joint ventures
|
(273)
|
|
|
3,172
|
|
|
127
|
|
|
4,019
|
|
Post-employment
benefits
|
10
|
|
|
—
|
|
|
2,307
|
|
|
—
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(1,412)
|
|
|
—
|
|
|
(2,904)
|
|
|
—
|
|
Other
|
190
|
|
|
1
|
|
|
260
|
|
|
115
|
|
Cash Available for
Distribution (1)
|
$
|
8,433
|
|
|
$
|
11,488
|
|
|
$
|
21,257
|
|
|
$
|
26,225
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,399
|
|
|
$
|
16,522
|
|
|
$
|
34,723
|
|
|
$
|
41,771
|
|
Interest
paid
|
(2,865)
|
|
|
(4,220)
|
|
|
(9,121)
|
|
|
(12,987)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(566)
|
|
|
(834)
|
|
|
(4,332)
|
|
|
(3,031)
|
|
Distributions from
unconsolidated joint ventures
|
—
|
|
|
3,834
|
|
|
400
|
|
|
4,808
|
|
Adjusted EBITDA from
unconsolidated joint ventures
|
(535)
|
|
|
(3,814)
|
|
|
(413)
|
|
|
(4,336)
|
|
Cash Available for
Distributions (1)
|
$
|
8,433
|
|
|
$
|
11,488
|
|
|
$
|
21,257
|
|
|
$
|
26,225
|
|
|
|
|
|
|
|
|
|
Dividends /
distributions paid
|
$
|
6,537
|
|
|
$
|
6,555
|
|
|
$
|
19,726
|
|
|
$
|
19,711
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding, end of period
|
48,766
|
|
|
49,008
|
|
|
48,833
|
|
|
49,049
|
|
|
|
|
|
|
|
|
|
Dividends per
Share
|
$
|
0.135
|
|
|
$
|
0.135
|
|
|
$
|
0.405
|
|
|
$
|
0.405
|
|
|
|
(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.