ATLANTA, Feb. 11, 2021 /PRNewswire/ -- CatchMark
Timber Trust, Inc. (NYSE: CTT) today reported fourth quarter
and full-year 2020 results. The company also declared a cash
dividend of $0.135 per share for its
common stockholders of record as of February
26, 2021, payable on March 15,
2021.
![CatchMark Timber Trust CatchMark Timber Trust](https://mma.prnewswire.com/media/1437492/CatchMark_Timber_Trust_3_pillars_graphic_2_11_21.jpg)
Brian M. Davis, CatchMark's Chief
Executive Officer, said: "Despite unprecedented pandemic-related
business disruptions and economic turbulence, CatchMark exceeded
our full-year 2020 guidance, benefiting from a very strong fourth
quarter in our core operations, securing premium timber sale prices
substantially above market averages, realizing higher annual
harvest volumes and completing higher-than-targeted timberland
sales. Our resilient business model, based on investments in prime
timberlands in leading mill markets and superior management, has
proved out again through a difficult year for the U.S. economy,
keeping us on the front-end to meet customer demand. During
the year, we exceeded key performance metrics, maintained healthy
liquidity and stable leverage, and we effectively managed our debt
capital, while making significant progress in furthering our
long-term strategic objectives. Most importantly, we continued to
deliver fully-covered quarterly dividends.
"For the year ahead, we are particularly encouraged by momentum
in housing markets, which has been sustained through the recent
problematic economy and bodes well post-COVID-19. A sustained
elevated housing market should ultimately support product pricing,
especially given our significant stake in leading U.S. South mill
markets, which are steadily gaining market share as a result of
increased mill capacity with higher operating rates by historical
standards."
FOURTH QUARTER 2020 RESULTS
The following table summarizes the current quarter and
comparable prior year period results:
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
(in millions
except for tons and acres)
|
Three Months Ended
December 31,
|
|
Change
|
2020
|
|
2019
|
|
Dollars, Tons or
Acres
|
|
%
|
Results of
Operations
|
|
|
|
|
|
|
|
Revenues
|
$
|
30.9
|
|
|
$
|
29.1
|
|
|
$
|
1.8
|
|
|
6
|
%
|
Net Loss
|
$
|
(3.0)
|
|
|
$
|
(11.8)
|
|
|
$
|
8.8
|
|
|
75
|
%
|
Adjusted
EBITDA
|
$
|
17.3
|
|
|
$
|
15.1
|
|
|
$
|
2.2
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
Harvest Volume
(tons)
|
578,033
|
|
|
627,824
|
|
|
(49,791)
|
|
|
(8)
|
%
|
Acres Sold
|
4,000
|
|
|
3,200
|
|
|
800
|
|
|
29
|
%
|
Business Segments Overview
A strong fourth quarter generated total revenues, net loss and
Adjusted EBITDA favorable to both plan and prior year, primarily
due to higher net timber sales, timberland sales and asset
management fee revenue and lower losses from the unconsolidated
Triple T joint venture.
Harvest Operations
|
Three Months Ended
December 31,
|
|
Change
|
(in
millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
Timber Sales
Revenue
|
$
|
19.9
|
|
|
$
|
20.0
|
|
|
$
|
(0.1)
|
|
|
—
|
%
|
Harvest
EBITDA
|
$
|
9.7
|
|
|
$
|
9.7
|
|
|
$
|
—
|
|
|
—
|
%
|
Steadily increasing U.S. housing starts and home renovations
helped boost fourth quarter results as CatchMark's harvest plans
were geared to capitalize on strong mill demand for sawtimber and
an improved pricing environment in the Pacific
Northwest. Timber sales revenue and Harvest EBITDA were
comparable to prior year as increased harvests and pricing in the
Pacific Northwest helped offset anticipated decreases in U.S. South
harvest volumes and pricing.
Todd P. Reitz, CatchMark's Chief
Resources Officer, said: "The strong fourth quarter was ultimately
driven by heightened housing demand. We capitalized on mill demand
and a better pricing environment in the Pacific Northwest,
generating an outsized quarter compared to prior year. Lumber order
files remained robust, which in turn allowed mills to run
wide-open, only taking downtime around the holidays. We expect the
positive trends for log prices and revenues in the Pacific
Northwest to continue in coming quarters and to register further
gains in the U.S. South as new mill projects come on-line in and
around our micro-markets."
U.S. South Activity:
- As planned, fourth quarter harvest volume held steady with
third quarter levels and was 12% lower year-over-year. After
weather-related delays early in 2019, CatchMark had increased
harvests in the third and fourth quarters of 2019. Overall, 2020
harvest levels were more consistent quarter-to-quarter, resulting
in the comparatively lower year-over-year fourth quarter
results.
- CatchMark's pulpwood and sawtimber pricing continued to hold
substantial premiums — 46% and 18% respectively — over weighted
TimberMart-South U.S. South-wide stumpage prices.
Pacific Northwest Activity:
- CatchMark results were boosted by demand from sawmills with
depleted inventories after third quarter forest fires led to
temporary logging shutdowns across the region.
- The strong domestic housing market and competition from
exporters further amplified demand for timber and increased log
pricing.
- Harvest volume nearly doubled over fourth quarter 2019 levels
and CatchMark's sawtimber price increased by 36% in the Pacific
Northwest.
Real Estate
|
Three Months Ended
December 31,
|
|
Change
|
(in
millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
Timberland Sales
Revenue
|
$
|
6.8
|
|
|
$
|
5.0
|
|
|
$
|
1.8
|
|
|
35
|
%
|
Real Estate
EBITDA
|
$
|
6.4
|
|
|
$
|
4.7
|
|
|
$
|
1.7
|
|
|
35
|
%
|
Timberland Sales: During the fourth
quarter, CatchMark completed sales deferred earlier in the year due
to pandemic-related delays and capitalized on new
opportunities.
- CatchMark sold 4,000 acres for $6.8
million compared to 3,200 acres for $5.0 million in fourth quarter 2019.
- The transactions captured a 5% increase in the per-acre sales
price — $1,662 in fourth quarter 2020
compared to $1,588 in fourth quarter
2019 — and consisted of tracts with lower average total
merchantable timber stocking.
- The improved margins — 19% in fourth quarter 2020 versus 10% in
fourth quarter 2019 — resulted from selling tracts with a lower
cost basis due to a longer average hold period and lower average
merchantable timber stocking.
Acquisitions and Large Dispositions: No
acquisitions or large dispositions occurred during the fourth
quarter.
Investment Management
|
Three Months Ended
December 31,
|
|
Change
|
(in
millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
Asset Management Fee
Revenue
|
$
|
3.2
|
|
|
$
|
2.8
|
|
|
$
|
0.4
|
|
|
14
|
%
|
Investment Management
EBITDA
|
$
|
3.2
|
|
|
$
|
3.3
|
|
|
$
|
(0.1)
|
|
|
(1)
|
%
|
Asset management fee revenue increased due to the amendment to
the Triple T joint venture's asset management agreement completed
in the second quarter 2020. As expected, Investment Management
EBITDA decreased slightly due to lower EBITDA generated by
Dawsonville Bluffs since the successful liquidation of the joint
venture's timberland holdings in 2019.
Triple T Joint Venture: Triple T's harvest
operations, benefiting from the renegotiated wood supply agreement
with Georgia-Pacific, exceeded
underwriting during the quarter.
FULL YEAR 2020 RESULTS
The following table summarizes the full-year and comparable
prior year results:
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
(in millions
except for tons and acres)
|
Year Ended
December 31,
|
|
Change
|
2020
|
|
2019
|
|
Dollars, Tons or
Acres
|
|
%
|
Results of
Operations
|
|
|
|
|
|
|
|
Revenues
|
$
|
104.3
|
|
|
$
|
106.7
|
|
|
$
|
(2.4)
|
|
|
(2)
|
%
|
Net Loss
|
$
|
(17.5)
|
|
|
$
|
(93.3)
|
|
|
$
|
75.8
|
|
|
81
|
%
|
Adjusted
EBITDA
|
$
|
52.1
|
|
|
$
|
56.9
|
|
|
$
|
(4.8)
|
|
|
(9)
|
%
|
|
|
|
|
|
|
|
|
Harvest Volume
(tons)
|
2,321,363
|
|
|
2,243,073
|
|
|
78,290
|
|
|
3
|
%
|
Acres Sold
|
9,300
|
|
|
9,200
|
|
|
100
|
|
|
1
|
%
|
Business Segments Overview
Harvest Operations
|
Year Ended
December 31,
|
|
Change
|
(in
millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
Timber Sales
Revenue
|
$
|
72.3
|
|
|
$
|
72.6
|
|
|
$
|
(0.3)
|
|
|
—
|
%
|
Harvest
EBITDA
|
$
|
34.2
|
|
|
$
|
33.7
|
|
|
$
|
0.5
|
|
|
2
|
%
|
CatchMark generated full-year 2020 timber sales of $72.3 million, comparable to full-year 2019
results, overcoming challenges from the COVID-19 pandemic,
hurricane-related wet weather conditions and Pacific Northwest
wildfires occurring during the year:
- CatchMark's delivered wood model — which accounts for 78% of
its timber sales in U.S. South and 98% in the Pacific Northwest —
helped control the supply chain, producing more stable cash flows
with greater visibility, while enabling advantageous stumpage sales
opportunities.
- The homebuilding recovery and strong demand for pulp-related
products continuing through the pandemic helped support consistent
harvest volume flow in CatchMark's mill markets.
- Total harvest volume increased 3% to 2.32 million tons and net
timber revenue and Harvest EBITDA increased 2% due to higher
volumes, lower cut and haul costs, and increased pricing in the
Pacific Northwest where CatchMark avoided any adverse impact of
regional wildfires to its holdings and capitalized on favorable
supply/demand fundamentals.
- Sawtimber increased to 43% of total harvest volume, driven by
fully integrated Pacific Northwest operations.
U.S. South Activity: CatchMark capitalized on
opportunistic stumpage sales throughout the year, including sales
to key customers outside of existing supply agreements, to temper
lower net pricing.
- Net timber revenue decreased 6% compared to full-year 2019,
resulting from a 7% decrease in blended pricing offset by a 1%
increase in harvest volume.
- Realized stumpage prices for pulpwood and sawtimber registered
premiums of 49% and 20%, respectively, above TMS South-wide market
averages.
- Sawtimber mix (40%) held steady despite curtailed sawmill
activity at the start of the pandemic.
Pacific Northwest Activity:
- Net timber revenue of $5.7
million, more than doubled 2019 results, driven by an 80%
increase in harvest volume and reflecting CatchMark's
fully-integrated regional operations.
- Delivered wood sales boosted results — 98% of timber sales were
delivered sales at pricing 18% above 2019 levels contributing to
net timber revenue gains.
- Strong fourth-quarter regional demand was fueled by increased
housing starts, lack of finished lumber in the supply chain, and
reduced mill inventories caused by temporary shutdowns mandated by
local authorities during third-quarter wildfire outbreaks.
Real Estate
|
Year Ended
December 31,
|
|
Change
|
(in
millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
Timberland Sales
Revenue
|
$
|
15.6
|
|
|
$
|
17.6
|
|
|
$
|
(2.0)
|
|
|
(11)
|
%
|
Real Estate
EBITDA
|
$
|
14.7
|
|
|
$
|
16.6
|
|
|
$
|
(1.9)
|
|
|
(11)
|
%
|
Timberland Sales: Timberland sales exceeded
the upper-end of guidance with improved margins compared to
2019.
- CatchMark sold 9,300 acres for $15.6
million during 2020 compared to 9,200 acres for $17.6 million during 2019.
- The lower per-acre sales price — $1,689 in 2020 versus $1,920 in 2019 — resulted from selling tracts
with lower average merchantable timber stocking.
- The improved margins — 21% in 2020 versus 14% in 2019 —
resulted from selling tracts with a lower cost basis due to a
longer average hold period and lower average merchantable timber
stocking.
Large Dispositions and Acquisitions:
- As part of its capital recycling program, CatchMark sold 14,400
acres in Georgia for $21.3 million in the first quarter of 2020,
generating a $1.3 million gain, and
used $20.9 million of net proceeds to
pay down outstanding debt.
- The sold acres consisted of fringe tracts with
lower-than-average stocking, targeted mostly for stumpage
sales.
- No acquisitions were completed during the year, consistent with
our capital allocation priorities.
Investment Management
|
Year Ended
December 31,
|
|
Change
|
(in
millions)
|
2020
|
|
2019
|
|
$
|
|
%
|
Asset Management Fee
Revenue
|
$
|
12.2
|
|
|
$
|
11.9
|
|
|
$
|
0.3
|
|
|
2
|
%
|
Investment Management
EBITDA
|
$
|
12.6
|
|
|
$
|
16.7
|
|
|
$
|
(4.1)
|
|
|
(25)
|
%
|
Asset management fee revenue increased as a result of the
amendment to the management agreement with Triple T completed in
June 2020, offset by an expected
decrease in fees earned from Dawsonville Bluffs. Investment
Management EBITDA decreased from prior year due to the effective
winddown of the successful Dawsonville Bluffs joint venture in
2019.
- The management agreement between CatchMark and Triple T,
amended in connection with Triple T's renegotiated wood supply
agreement with Georgia-Pacific, is
expected to increase asset management fee revenues from Triple T
through mid-year 2022.
- CatchMark received $0.7 million
in distributions from Dawsonville Bluffs and recognized
$0.1 million in incentive-based
promotes for Dawsonville Bluff's
performance exceeding investment hurdles.
Triple T Joint Venture: Triple T harvest
operations exceeded its underwriting and generated positive net
cash flow from operating activities. The successful renegotiation
of the Georgia-Pacific wood supply
agreement paves the way for generating improved joint venture
performance going forward as well as enhancing long-term asset
value. The renegotiated wood supply agreement with Georgia-Pacific allows for market-based
pricing on timber sales, increases reimbursement for extended haul
distances, permits selling sawtimber to other third parties, and
expands opportunities to sell large timberland parcels to third
parties. By extending the Georgia-Pacific supply agreement by two years
to 2031, Triple T's harvest volume obligations can be further
optimized to enhance and preserve long-term asset value.
CAPITAL POSITION AND SHARE REPURCHASES
Capital recycling, renegotiated financial covenants and reduced
unused commitment fees helped strengthen CatchMark's capital
position during the year as the company:
- Completed $21.3 million in
capital recycling through a large disposition, realizing
$1.3 million in gains and paying down
debt by $20.9 million while enhancing
portfolio average stocking and core operating areas.
- Maintained healthy liquidity — $162.9
million of liquidity at year-end consisting of $115.9 million under the multi-draw term
facility, $35.0 million under the
revolving credit facility and $12.0
million of cash on-hand at December
31, 2020.
- Removed certain restrictive financial covenants providing
increased working capital under credit facilities and lowered
unused commitment fees.
- Maintained a stable leverage profile with net debt-to-Adjusted
EBITDA in-line with the company's average since IPO.
Share Repurchases: No share
repurchases occurred under the share repurchase program during the
fourth quarter. During the year, CatchMark repurchased
304,719 shares for a total of $2.0
million under its share repurchase program. CatchMark had
approximately $13.7 million remaining
in the program for future repurchases as of December 31, 2020.
Ursula Godoy-Arbelaez,
CatchMark's Chief Financial Officer, said: "Capital recycling,
credit agreement amendments and an active interest-rate risk
management strategy combined to put CatchMark in a strong liquidity
and capital position for meeting 2020's challenges as well as
positioning the company for the anticipated economic
recovery. In the meantime, we will continue to remain rigorous
and thoughtful in our capital allocation priorities — healthy
liquidity, ample working capital, continued debt repayment,
disciplined acquisitions and opportunistic share repurchases
— with a focus and commitment to delivering our quarterly
dividend."
2021 GUIDANCE
For full-year 2021, CatchMark projects a GAAP net loss of
between $6 million and $10 million with no expected additional losses
from Triple T. The company anticipates its Adjusted EBITDA will
register between $43 million and
$50 million, consistent with 2020
guidance. Harvest volumes are forecast between 2.0 million and 2.2
million tons, reflecting consistent annual productivity on a
per-acre basis. Harvests are expected to increase during each of
the first three quarters with fourth quarter volume approximating
the average of the first three quarters. Approximately 95% of
forecasted harvest volumes will be derived from the U.S. South
region with a sawtimber mix of between 40% and 45% from the U.S.
South and between 85% and 90% from the Pacific Northwest. Asset
management fee revenue is projected at approximately $12 million and timberland sales targets of
$13 million to $15 million remain around 2% of fee acreage.
Davis said: "We anticipate continuing to meet our strategic
goals during the year ahead, focused on continuing to deliver
stable and predictable cash flow, sustaining our industry leading
metrics for high productivity per acre, maintaining good liquidity,
positioning the company for transformative opportunities through
capital recycling, and most importantly generating a fully-covered
dividend. We expect the favorable long-term outlook for housing and
a more normalized, post-pandemic economy to help support demand
fundamentals and to benefit from ongoing mill market expansion in
and around our prime U.S. South timberland assets."
Conference Call
The company will host a conference call and live webcast at 10
a.m. ET on Friday, February 12, 2021
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 December 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 the momentum in
the housing markets and the potential for increased product
pricing, the positive impact of new mill projects coming on-line,
the expected improved performance for the Triple T joint
venture going forward as well as enhanced long-term asset value
resulting from the amendment to the Georgia-Pacific wood supply agreement,
remaining rigorous and thoughtful in our capital allocation
priorities and our financial outlook and guidance for
full-year 2021. 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 to make 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
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
Timber
sales
|
$
|
19,945
|
|
|
$
|
20,027
|
|
|
$
|
72,344
|
|
|
$
|
72,557
|
|
Timberland
sales
|
6,760
|
|
|
4,994
|
|
|
15,642
|
|
|
17,572
|
|
Asset management
fees
|
3,234
|
|
|
2,829
|
|
|
12,184
|
|
|
11,948
|
|
Other
revenues
|
1,009
|
|
|
1,246
|
|
|
4,120
|
|
|
4,632
|
|
|
30,948
|
|
|
29,096
|
|
|
104,290
|
|
|
106,709
|
|
Expenses
|
|
|
|
|
|
|
|
Contract logging and
hauling costs
|
8,160
|
|
|
8,351
|
|
|
30,103
|
|
|
31,129
|
|
Depletion
|
8,178
|
|
|
8,531
|
|
|
29,112
|
|
|
28,064
|
|
Cost of timberland
sales
|
5,479
|
|
|
4,505
|
|
|
12,290
|
|
|
15,067
|
|
Forestry management
expenses
|
1,721
|
|
|
1,709
|
|
|
6,892
|
|
|
6,691
|
|
General and
administrative expenses
|
3,166
|
|
|
3,750
|
|
|
16,225
|
|
|
13,300
|
|
Land rent
expense
|
113
|
|
|
124
|
|
|
447
|
|
|
524
|
|
Other operating
expenses
|
2,898
|
|
|
1,846
|
|
|
7,577
|
|
|
6,460
|
|
|
29,715
|
|
|
28,816
|
|
|
102,646
|
|
|
101,235
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
—
|
|
|
62
|
|
|
51
|
|
|
204
|
|
Interest
expense
|
(3,533)
|
|
|
(4,813)
|
|
|
(15,123)
|
|
|
(18,616)
|
|
Gain on large
dispositions
|
—
|
|
|
—
|
|
|
1,274
|
|
|
7,961
|
|
|
(3,533)
|
|
|
(4,751)
|
|
|
(13,798)
|
|
|
(10,451)
|
|
|
|
|
|
|
|
|
|
Loss before
unconsolidated joint ventures and income taxes
|
(2,300)
|
|
|
(4,471)
|
|
|
(12,154)
|
|
|
(4,977)
|
|
|
|
|
|
|
|
|
|
Income (loss) from
unconsolidated joint ventures:
|
|
|
|
|
|
|
|
Triple T
|
—
|
|
|
(8,650)
|
|
|
(5,000)
|
|
|
(90,450)
|
|
Dawsonville
Bluffs
|
1
|
|
|
190
|
|
|
274
|
|
|
979
|
|
|
1
|
|
|
(8,460)
|
|
|
(4,726)
|
|
|
(89,471)
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(2,299)
|
|
|
(12,931)
|
|
|
(16,880)
|
|
|
(94,448)
|
|
Income tax benefit
(expense)
|
(658)
|
|
|
1,127
|
|
|
(658)
|
|
|
1,127
|
|
Net
loss
|
|
(2,957)
|
|
|
|
(11,804)
|
|
|
|
(17,538)
|
|
|
|
(93,321)
|
|
Net loss attributable
to noncontrolling interest
|
|
(5)
|
|
|
|
—
|
|
|
|
(30)
|
|
|
|
—
|
|
Net loss
attributable to common stockholders
|
$
|
(2,952)
|
|
|
$
|
(11,804)
|
|
|
$
|
(17,508)
|
|
|
$
|
(93,321)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic and diluted
|
48,765
|
|
|
49,007
|
|
|
48,816
|
|
|
49,038
|
|
|
|
|
|
|
|
|
|
Net loss per
common share - basic and diluted
|
$
|
(0.06)
|
|
|
$
|
(0.24)
|
|
|
$
|
(0.36)
|
|
|
$
|
(1.90)
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (in thousands, except for per-share
amounts)
|
|
|
December 31,
2020
|
|
December 31,
2019
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
11,924
|
|
|
$
|
11,487
|
|
Accounts
receivable
|
8,333
|
|
|
7,998
|
|
Prepaid expenses and
other assets
|
5,878
|
|
|
5,459
|
|
Operating lease
right-of-use asset
|
2,831
|
|
|
3,120
|
|
Deferred financing
costs
|
167
|
|
|
246
|
|
Timber
assets:
|
|
|
|
Timber and
timberlands, net
|
576,680
|
|
|
633,581
|
|
Intangible lease
assets
|
5
|
|
|
9
|
|
Investment in
unconsolidated joint ventures
|
1,510
|
|
|
1,965
|
|
Total
assets
|
$
|
607,328
|
|
|
$
|
663,865
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
4,808
|
|
|
$
|
3,580
|
|
Operating lease
liability
|
2,988
|
|
|
3,242
|
|
Other
liabilities
|
32,130
|
|
|
10,853
|
|
Notes payable and
lines of credit, net of deferred financing costs
|
437,490
|
|
|
452,987
|
|
Total
liabilities
|
477,416
|
|
|
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 December 31, 2020 and December
31, 2019, respectively
|
488
|
|
|
490
|
|
Additional paid-in
capital
|
728,662
|
|
|
729,274
|
|
Accumulated deficit
and distributions
|
(572,493)
|
|
|
(528,847)
|
|
Accumulated other
comprehensive loss
|
(27,893)
|
|
|
(8,276)
|
|
Total stockholders'
equity
|
128,764
|
|
|
192,641
|
|
Noncontrolling
Interest
|
1,148
|
|
|
562
|
|
Total
equity
|
129,912
|
|
|
193,203
|
|
Total liabilities and
equity
|
$
|
607,328
|
|
|
$
|
663,865
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED) (in thousands)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(2,957)
|
|
|
$
|
(11,804)
|
|
|
$
|
(17,538)
|
|
|
$
|
(93,321)
|
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depletion
|
8,178
|
|
|
8,531
|
|
|
29,112
|
|
|
28,064
|
|
Basis of timberland
sold, lease terminations and other
|
6,618
|
|
|
4,635
|
|
|
13,606
|
|
|
14,964
|
|
Stock-based
compensation expense
|
629
|
|
|
838
|
|
|
3,836
|
|
|
2,790
|
|
Noncash interest
expense
|
584
|
|
|
743
|
|
|
3,053
|
|
|
1,559
|
|
Noncash lease
expense
|
8
|
|
|
15
|
|
|
36
|
|
|
53
|
|
Other
amortization
|
42
|
|
|
42
|
|
|
166
|
|
|
174
|
|
Gain on large
dispositions
|
—
|
|
|
—
|
|
|
(1,274)
|
|
|
(7,961)
|
|
Loss (income) from
unconsolidated joint ventures
|
(1)
|
|
|
8,460
|
|
|
4,726
|
|
|
89,471
|
|
Operating
distributions from unconsolidated joint ventures
|
1
|
|
|
189
|
|
|
274
|
|
|
978
|
|
Income tax expense
(benefit)
|
658
|
|
|
(1,127)
|
|
|
658
|
|
|
(1,127)
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
1,424
|
|
|
115
|
|
|
4,328
|
|
|
115
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(248)
|
|
|
(3,480)
|
|
|
(1,340)
|
|
|
(1,473)
|
|
Prepaid expenses and
other assets
|
(115)
|
|
|
35
|
|
|
(120)
|
|
|
256
|
|
Accounts payable and
accrued expenses
|
(1,043)
|
|
|
(1,447)
|
|
|
916
|
|
|
(1,309)
|
|
Other
liabilities
|
(970)
|
|
|
(1,316)
|
|
|
16
|
|
|
(291)
|
|
Net cash provided by
operating activities
|
12,808
|
|
|
4,429
|
|
|
40,455
|
|
|
32,942
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Timberland
acquisitions and earnest money paid
|
—
|
|
|
(1,973)
|
|
|
—
|
|
|
(1,973)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,195)
|
|
|
(1,147)
|
|
|
(5,527)
|
|
|
(4,178)
|
|
Investment in
unconsolidated joint venture
|
—
|
|
|
—
|
|
|
(5,000)
|
|
|
—
|
|
Distributions from
unconsolidated joint ventures
|
328
|
|
|
(189)
|
|
|
455
|
|
|
3,830
|
|
Net proceeds from
large dispositions
|
—
|
|
|
—
|
|
|
20,863
|
|
|
25,151
|
|
Net cash provided by
(used in) investing activities
|
(867)
|
|
|
(3,309)
|
|
|
10,791
|
|
|
22,830
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of notes
payable
|
—
|
|
|
—
|
|
|
(20,850)
|
|
|
(20,064)
|
|
Proceeds from notes
payable
|
—
|
|
|
—
|
|
|
5,000
|
|
|
—
|
|
Financing costs
paid
|
(12)
|
|
|
(34)
|
|
|
(1,031)
|
|
|
(82)
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(1,424)
|
|
|
(115)
|
|
|
(4,328)
|
|
|
(115)
|
|
Dividends/distributions paid
|
(6,537)
|
|
|
(6,558)
|
|
|
(26,263)
|
|
|
(26,269)
|
|
Repurchases of common
shares
|
(78)
|
|
|
—
|
|
|
(2,285)
|
|
|
(3,004)
|
|
Repurchase of common
shares for minimum tax withholding
|
—
|
|
|
—
|
|
|
(1,052)
|
|
|
(365)
|
|
Net cash used in
financing activities
|
(8,051)
|
|
|
(6,707)
|
|
|
(50,809)
|
|
|
(49,899)
|
|
Net change in cash
and cash equivalents
|
3,890
|
|
|
(5,587)
|
|
|
437
|
|
|
5,873
|
|
Cash and cash
equivalents, beginning of period
|
8,034
|
|
|
17,074
|
|
|
11,487
|
|
|
5,614
|
|
Cash and cash
equivalents, end of period
|
$
|
11,924
|
|
|
$
|
11,487
|
|
|
$
|
11,924
|
|
|
$
|
11,487
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES SELECTED DATA
(UNAUDITED)
|
|
|
2020
|
|
2019
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
324
|
|
|
354
|
|
|
349
|
|
|
308
|
|
|
1,335
|
|
|
294
|
|
|
304
|
|
|
376
|
|
|
336
|
|
|
1,310
|
|
Sawtimber
(1)
|
271
|
|
|
214
|
|
|
231
|
|
|
270
|
|
|
986
|
|
|
193
|
|
|
191
|
|
|
258
|
|
|
292
|
|
|
933
|
|
Total
|
595
|
|
|
568
|
|
|
580
|
|
|
578
|
|
|
2,321
|
|
|
487
|
|
|
495
|
|
|
634
|
|
|
628
|
|
|
2,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
54
|
%
|
|
62
|
%
|
|
60
|
%
|
|
53
|
%
|
|
58
|
%
|
|
60
|
%
|
|
61
|
%
|
|
59
|
%
|
|
54
|
%
|
|
58
|
%
|
Sawtimber
(1)
|
46
|
%
|
|
38
|
%
|
|
40
|
%
|
|
47
|
%
|
|
42
|
%
|
|
40
|
%
|
|
39
|
%
|
|
41
|
%
|
|
46
|
%
|
|
42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
Timberland Acquisitions, Exclusive of Transaction
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Acquisitions
('000)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,925
|
|
|
$
|
1,925
|
|
Acres
Acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
900
|
|
|
900
|
|
Price per
acre
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,185
|
|
|
$
|
2,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
Acres ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
|
393
|
|
|
392
|
|
|
391
|
|
|
387
|
|
|
387
|
|
|
432
|
|
|
424
|
|
|
413
|
|
|
410
|
|
|
410
|
|
Lease
|
22
|
|
|
22
|
|
|
22
|
|
|
22
|
|
|
22
|
|
|
27
|
|
|
26
|
|
|
26
|
|
|
25
|
|
|
25
|
|
Wholly-owned
total
|
415
|
|
|
414
|
|
|
413
|
|
|
409
|
|
|
409
|
|
|
459
|
|
|
450
|
|
|
439
|
|
|
435
|
|
|
435
|
|
Joint venture
interest (5)
|
1,092
|
|
|
1,092
|
|
|
1,085
|
|
|
1,083
|
|
|
1,083
|
|
|
1,104
|
|
|
1,100
|
|
|
1,094
|
|
|
1,092
|
|
|
1,092
|
|
Total
|
1,507
|
|
|
1,506
|
|
|
1,498
|
|
|
1,492
|
|
|
1,492
|
|
|
1,563
|
|
|
1,550
|
|
|
1,533
|
|
|
1,527
|
|
|
1,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
South
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
320
|
|
|
352
|
|
|
346
|
|
|
303
|
|
|
1,321
|
|
|
294
|
|
|
303
|
|
|
373
|
|
|
332
|
|
|
1,302
|
|
Sawtimber
(1)
|
250
|
|
|
195
|
|
|
206
|
|
|
226
|
|
|
877
|
|
|
188
|
|
|
177
|
|
|
237
|
|
|
271
|
|
|
873
|
|
Total
|
570
|
|
|
547
|
|
|
552
|
|
|
529
|
|
|
2,198
|
|
|
482
|
|
|
480
|
|
|
610
|
|
|
603
|
|
|
2,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
56
|
%
|
|
64
|
%
|
|
63
|
%
|
|
57
|
%
|
|
60
|
%
|
|
61
|
%
|
|
63
|
%
|
|
61
|
%
|
|
55
|
%
|
|
60
|
%
|
Sawtimber
(1)
|
44
|
%
|
|
36
|
%
|
|
37
|
%
|
|
43
|
%
|
|
40
|
%
|
|
39
|
%
|
|
37
|
%
|
|
39
|
%
|
|
45
|
%
|
|
40
|
%
|
Delivered % as of
total volume
|
63
|
%
|
|
61
|
%
|
|
63
|
%
|
|
59
|
%
|
|
62
|
%
|
|
79
|
%
|
|
74
|
%
|
|
64
|
%
|
|
67
|
%
|
|
71
|
%
|
Stumpage % as of
total volume
|
37
|
%
|
|
39
|
%
|
|
37
|
%
|
|
41
|
%
|
|
38
|
%
|
|
21
|
%
|
|
26
|
%
|
|
36
|
%
|
|
33
|
%
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Timber
Sales Price ($ per ton) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
13
|
|
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
15
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
13
|
|
|
$
|
14
|
|
Sawtimber
(1)
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
23
|
|
|
$
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales
('000)
|
$
|
4,779
|
|
|
$
|
1,673
|
|
|
$
|
2,430
|
|
|
$
|
6,760
|
|
|
$
|
15,642
|
|
|
$
|
2,090
|
|
|
$
|
8,224
|
|
|
$
|
2,264
|
|
|
$
|
4,994
|
|
|
$
|
17,572
|
|
Acres sold
|
3,000
|
|
|
1,100
|
|
|
1,200
|
|
|
4,000
|
|
|
9,300
|
|
|
900
|
|
|
4,000
|
|
|
1,100
|
|
|
3,200
|
|
|
9,200
|
|
% of fee
acres
|
0.7
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
1.0
|
%
|
|
2.3
|
%
|
|
0.2
|
%
|
|
0.9
|
%
|
|
0.2
|
%
|
|
0.9
|
%
|
|
2.2
|
%
|
Price per acre
(3)
|
$
|
1,627
|
|
|
$
|
1,564
|
|
|
$
|
2,047
|
|
|
$
|
1,662
|
|
|
$
|
1,689
|
|
|
$
|
2,236
|
|
|
$
|
2,072
|
|
|
$
|
2,166
|
|
|
$
|
1,588
|
|
|
$
|
1,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
(7)
|
$
|
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
|
|
|
|
4
|
|
|
14
|
|
|
—
|
|
|
|
1
|
|
|
3
|
|
|
4
|
|
|
|
8
|
|
Sawtimber
(1)
|
21
|
|
|
18
|
|
|
|
25
|
|
|
|
45
|
|
|
109
|
|
|
5
|
|
|
|
13
|
|
|
21
|
|
|
21
|
|
|
|
60
|
|
Total
|
25
|
|
|
21
|
|
|
|
28
|
|
|
|
49
|
|
|
123
|
|
|
5
|
|
|
|
14
|
|
|
24
|
|
|
25
|
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
18
|
%
|
|
13
|
%
|
|
|
12
|
|
%
|
|
7
|
%
|
|
11
|
%
|
|
—
|
|
%
|
|
9
|
%
|
|
13
|
%
|
|
15
|
%
|
|
|
12
|
%
|
Sawtimber
|
82
|
%
|
|
87
|
%
|
|
|
88
|
|
%
|
|
93
|
%
|
|
89
|
%
|
|
100
|
|
%
|
|
91
|
%
|
|
87
|
%
|
|
85
|
%
|
|
|
88
|
%
|
Delivered % as of
total volume
|
84
|
%
|
|
100
|
%
|
|
|
100
|
|
%
|
|
100
|
%
|
|
97
|
%
|
|
100
|
|
%
|
|
87
|
%
|
|
100
|
%
|
|
74
|
%
|
|
|
88
|
%
|
Stumpage % as of
total volume
|
16
|
%
|
|
—
|
%
|
|
|
—
|
|
%
|
|
—
|
%
|
|
3
|
%
|
|
—
|
|
%
|
|
13
|
%
|
|
—
|
%
|
|
26
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivered
Timber Sales Price ($ per ton) (2)
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
31
|
|
|
$
|
29
|
|
|
|
$
|
28
|
|
|
|
$
|
28
|
|
|
$
|
29
|
|
|
$
|
40
|
|
|
|
$
|
37
|
|
|
$
|
30
|
|
|
$
|
31
|
|
|
|
$
|
32
|
|
Sawtimber
|
$
|
91
|
|
|
$
|
84
|
|
|
|
$
|
105
|
|
|
|
$
|
116
|
|
|
$
|
104
|
|
|
$
|
101
|
|
|
|
$
|
94
|
|
|
$
|
83
|
|
|
$
|
85
|
|
|
|
$
|
88
|
|
|
|
(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 year ended December 31, 2020 and 2019,
we retained 132,200 tons and 14,700 tons of merchantable inventory,
with a sawtimber mix of 49% and 12%, respectively, for 2020 and
2019.
|
|
|
(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.
|
|
|
(7)
|
Excludes value of
timber reservations. For the year ended December 31, 2020 and 2019,
we retained 56,300 tons and 47,300 tons of merchantable inventory,
with a sawtimber mix of 55% and 47%, respectively, for 2020 and
2019.
|
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES RECONCILIATION OF NET LOSS
TO ADJUSTED EBITDA (UNAUDITED) (in
thousands)
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
(in
thousands)
|
2021
Guidance
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
loss
|
$(6,000) –
(10,000)
|
|
$
|
(2,957)
|
|
|
$
|
(11,804)
|
|
|
$
|
(17,538)
|
|
|
$
|
(93,321)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Depletion
|
25,000 –
27,000
|
|
8,178
|
|
|
8,531
|
|
|
29,112
|
|
|
28,064
|
|
Interest expense
(2)
|
14,000
|
|
2,949
|
|
|
4,071
|
|
|
12,070
|
|
|
17,058
|
|
Amortization
(2)
|
—
|
|
634
|
|
|
800
|
|
|
3,255
|
|
|
1,786
|
|
Income tax
expense
|
—
|
|
658
|
|
|
(1,127)
|
|
|
658
|
|
|
(1,127)
|
|
Depletion,
amortization, basis of timberland, mitigation credits sold included
in loss from unconsolidated joint venture (3)
|
—
|
|
11
|
|
|
276
|
|
|
151
|
|
|
3,823
|
|
Basis of timberland
sold, lease terminations and other (4)
|
10,000 –
11,000
|
|
6,618
|
|
|
4,635
|
|
|
13,606
|
|
|
14,964
|
|
Stock-based
compensation expense
|
3,000
|
|
629
|
|
|
838
|
|
|
3,836
|
|
|
2,790
|
|
Gain on large
dispositions (5)
|
—
|
|
—
|
|
|
—
|
|
|
(1,274)
|
|
|
(7,961)
|
|
HLBV loss from
unconsolidated joint venture (6)
|
—
|
|
—
|
|
|
8,650
|
|
|
5,000
|
|
|
90,450
|
|
Post-employment
benefits (7)
|
—
|
|
17
|
|
|
—
|
|
|
2,324
|
|
|
—
|
|
Other
(8)
|
1,000
|
|
605
|
|
|
265
|
|
|
865
|
|
|
380
|
|
Adjusted
EBITDA (1)
|
$43,000 –
50,000
|
|
$
|
17,342
|
|
|
$
|
15,135
|
|
|
$
|
52,065
|
|
|
$
|
56,906
|
|
|
|
|
|
(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 apothetical 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
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Timber
sales
|
$
|
19,945
|
|
|
$
|
20,027
|
|
|
$
|
72,344
|
|
|
$
|
72,557
|
|
Other
revenue
|
1,009
|
|
|
1,246
|
|
|
4,120
|
|
|
4,632
|
|
(-)
Contract logging and hauling costs
|
(8,160)
|
|
|
(8,351)
|
|
|
(30,103)
|
|
|
(31,129)
|
|
(-)
Forestry management expenses
|
(1,721)
|
|
|
(1,709)
|
|
|
(6,892)
|
|
|
(6,691)
|
|
(-)
Land rent expense
|
(113)
|
|
|
(124)
|
|
|
(447)
|
|
|
(524)
|
|
(-)
Other operating expenses
|
(2,898)
|
|
|
(1,846)
|
|
|
(7,577)
|
|
|
(6,460)
|
|
(+)
Stock-based compensation
|
110
|
|
|
74
|
|
|
417
|
|
|
263
|
|
(+/-)
Other
|
1,521
|
|
|
418
|
|
|
2,328
|
|
|
1,022
|
|
Harvest
EBITDA
|
9,693
|
|
|
9,735
|
|
|
34,190
|
|
|
33,670
|
|
|
|
|
|
|
|
|
|
Timberland
sales
|
6,760
|
|
|
4,994
|
|
|
15,642
|
|
|
17,572
|
|
(-)
Cost of timberland sales
|
(5,479)
|
|
|
(4,505)
|
|
|
(12,290)
|
|
|
(15,067)
|
|
(+) Basis
of timberland sold
|
5,125
|
|
|
4,249
|
|
|
11,396
|
|
|
14,054
|
|
Real Estate
EBITDA
|
6,406
|
|
|
4,738
|
|
|
14,748
|
|
|
16,559
|
|
|
|
|
|
|
|
|
|
Asset management
fees
|
3,234
|
|
|
2,829
|
|
|
12,184
|
|
|
11,948
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
12
|
|
|
465
|
|
|
425
|
|
|
4,801
|
|
Investment
Management EBITDA
|
3,246
|
|
|
3,294
|
|
|
12,609
|
|
|
16,749
|
|
|
|
|
|
|
|
|
|
Total Operating
EBITDA
|
19,345
|
|
|
17,767
|
|
|
61,547
|
|
|
66,978
|
|
|
|
|
|
|
|
|
|
(-) General and
administrative expenses
|
(3,166)
|
|
|
(3,750)
|
|
|
(16,225)
|
|
|
(13,300)
|
|
(+)
Stock-based compensation
|
519
|
|
|
764
|
|
|
3,419
|
|
|
2,527
|
|
(+)
Interest income
|
—
|
|
|
62
|
|
|
51
|
|
|
204
|
|
(+)
Post-employment benefits
|
17
|
|
|
—
|
|
|
2,324
|
|
|
—
|
|
(+/-)
Other
|
627
|
|
|
292
|
|
|
949
|
|
|
497
|
|
Corporate
EBITDA
|
(2,003)
|
|
|
(2,632)
|
|
|
(9,482)
|
|
|
(10,072)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
17,342
|
|
|
$
|
15,135
|
|
|
$
|
52,065
|
|
|
$
|
56,906
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES CASH AVAILABLE FOR
DISTRIBUTION (UNAUDITED) (in thousands, except for per
share data)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December, 31
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash Provided by
Operating Activities
|
$
|
12,808
|
|
|
$
|
4,429
|
|
|
$
|
40,455
|
|
|
$
|
32,942
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,195)
|
|
|
(1,147)
|
|
|
(5,527)
|
|
|
(4,178)
|
|
Working capital
change
|
2,376
|
|
|
6,208
|
|
|
528
|
|
|
2,817
|
|
Distributions from
unconsolidated joint ventures
|
328
|
|
|
(189)
|
|
|
455
|
|
|
3,830
|
|
Post-employment
benefits
|
17
|
|
|
—
|
|
|
2,324
|
|
|
—
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(1,424)
|
|
|
(115)
|
|
|
(4,328)
|
|
|
(115)
|
|
Other
|
605
|
|
|
265
|
|
|
865
|
|
|
381
|
|
Cash Available for
Distribution (1)
|
$
|
13,515
|
|
|
$
|
9,451
|
|
|
$
|
34,772
|
|
|
$
|
35,677
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
17,342
|
|
|
$
|
15,135
|
|
|
$
|
52,065
|
|
|
$
|
56,906
|
|
Interest
paid
|
(2,949)
|
|
|
(4,071)
|
|
|
(12,070)
|
|
|
(17,058)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,195)
|
|
|
(1,147)
|
|
|
(5,527)
|
|
|
(4,178)
|
|
Distributions from
unconsolidated joint ventures
|
329
|
|
|
—
|
|
|
729
|
|
|
4,808
|
|
Adjusted EBITDA from
unconsolidated joint ventures
|
(12)
|
|
|
(466)
|
|
|
(425)
|
|
|
(4,801)
|
|
Cash Available for
Distributions (1)
|
$
|
13,515
|
|
|
$
|
9,451
|
|
|
$
|
34,772
|
|
|
$
|
35,677
|
|
|
|
|
|
|
|
|
|
Dividends /
distributions paid
|
$
|
6,537
|
|
|
$
|
6,558
|
|
|
$
|
26,263
|
|
|
$
|
26,269
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding, end of period
|
48,765
|
|
|
49,007
|
|
|
48,816
|
|
|
49,038
|
|
|
|
|
|
|
|
|
|
Dividends per
Share
|
$
|
0.135
|
|
|
$
|
0.135
|
|
|
$
|
0.540
|
|
|
$
|
0.540
|
|
|
|
|
|
(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.