ATLANTA, May 6, 2021 /PRNewswire/ -- CatchMark
Timber Trust, Inc. (NYSE: CTT) today reported first
quarter 2021 results. The company also declared a cash dividend
of $0.135 per share for its common stockholders of record
as of May 28, 2021, payable on June 15, 2021.
Brian M. Davis, CatchMark's Chief
Executive Officer, said: "Low interest rates, strong housing market
demand and increased home remodeling together with the significant
ramp up in mill production after 2020 pandemic-related slowdowns,
resulted in higher timber prices during the quarter. CatchMark's
prime timberlands in superior mill markets continued to outperform,
capturing pricing for pulpwood and sawtimber in the U.S. South
significantly above TimberMart-South averages as well as a
significant sawtimber price increase in the Pacific Northwest.
Investment management results improved due to contributions from
Dawsonville Bluffs and last year's renegotiated Triple T asset
management agreement. Per-acre timberland sales pricing
increased significantly, and we are on track to complete a
substantial number of sales in the second quarter. As planned,
harvest volumes during the quarter were lower year-over-year.
Harvest volumes remain on track to meet full-year guidance, as we
maintain consistent annual productivity on a per-acre basis with
the potential to sustain current strong timber prices."
FIRST QUARTER 2021 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
March 31,
|
|
Change
|
2021
|
|
2020
|
|
Dollars, Tons or
Acres
|
|
%
|
Results of
Operations
|
|
|
|
|
|
|
|
Revenues
|
$
|
27.7
|
|
|
$
|
27.0
|
|
|
$
|
0.7
|
|
|
3
|
%
|
Net Loss
|
$
|
(0.6)
|
|
|
$
|
(4.2)
|
|
|
$
|
3.6
|
|
|
86
|
%
|
Adjusted
EBITDA
|
$
|
12.9
|
|
|
$
|
12.9
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
Harvest Volume
(tons)
|
524,762
|
|
|
594,895
|
|
|
(70,133)
|
|
|
(12)
|
%
|
Acres Sold
|
1,800
|
|
|
3,000
|
|
|
(1,200)
|
|
|
(40)
|
%
|
Business Segments Overview
Harvest Operations
|
Three Months Ended
March 31,
|
|
Change
|
(in
millions)
|
2021
|
|
2020
|
|
$
|
|
%
|
Timber Sales
Revenue
|
$
|
20.1
|
|
|
$
|
18.2
|
|
|
$
|
1.9
|
|
|
11
|
%
|
Harvest
EBITDA
|
$
|
8.9
|
|
|
$
|
8.6
|
|
|
$
|
0.3
|
|
|
4
|
%
|
CatchMark continued to benefit from its prime timberland
portfolio in strong micro-markets across the U.S. South and Pacific
Northwest.
- The company realized timber sales prices at significant
premiums to market averages, which escalated during the quarter due
to strong demand for timber products generated by accelerated
housing starts, lack of finished lumber in the supply chain, and
reduced mill inventories.
- Total timber sales revenue increased year-over-year, driven by
a $3.0 million increase in the
Pacific Northwest offset by a $1.1
million decrease in the U.S. South, the result of a 17%
reduction in regional harvest volume, as planned due to recent
timberland sales and capital recycling dispositions.
U.S. South:
- CatchMark realized stumpage prices for pulpwood and sawtimber
8% and 9% higher, respectively, compared to first quarter 2020,
outpacing 3% and 4% increases in South-wide average prices tracked
by TimberMart-South.
- Pulpwood and sawtimber stumpage prices registered significant
57% and 27% premiums over TimberMart-South South-wide
averages.
Pacific Northwest:
- Timber sales revenue increased to $4.9
million, a 161% increase from first quarter 2020
results.
- Harvest volume increased 96% from capitalizing on favorable
market conditions and the company's delivered wood sales model.
Sawtimber mix and delivered sales as a percentage of volume
increased 14% and 16%, respectively, year over year, and delivered
sawtimber price increased 15% due to strong demand
fundamentals.
Todd Reitz, Chief Resources
Officer, said: "As strong fourth quarter 2020 housing fundamentals
carried over into the first quarter, CatchMark continues to benefit
from prime timberlands holdings in leading mill markets as well as
our delivered wood model supplemented by opportunistic stumpage
sales. Robust housing demand continued to drive strong sawmill
production and new mill consumption helped generate increased
delivered rates within our superior micro-markets, which in part
resulted in a 9% increase in Harvest EBTDA per acre
year-over-year."
Real Estate
|
Three Months Ended
March 31,
|
|
Change
|
(in
millions)
|
2021
|
|
2020
|
|
$
|
|
%
|
Timberland Sales
Revenue
|
$
|
3.4
|
|
|
$
|
4.8
|
|
|
$
|
(1.4)
|
|
|
(30)
|
%
|
Real Estate
EBITDA
|
$
|
3.1
|
|
|
$
|
4.5
|
|
|
$
|
(1.4)
|
|
|
(30)
|
%
|
Timberland Sales:
- CatchMark sold 1,200 fewer acres during first quarter 2021 —
1,800 acres versus 3,000 in the prior year quarter, but at an 18%
higher average price per acre — $1,923 in first quarter 2021 versus $1,627 in first quarter 2020.
- The improved per-acre sales price resulted in part from higher
average merchantable timber stocking levels and generated an
improved margin — 36% in first quarter 2021 versus 28% in first
quarter 2020.
- The acres sold during the quarter had a substantially lower
average merchantable timber stocking than the company portfolio
average — 21 tons per acre versus 41 tons per acre.
Acquisitions and Large
Dispositions: No acquisitions or large
dispositions occurred during the first quarter.
Investment Management
|
Three Months Ended
March 31,
|
|
Change
|
(in
millions)
|
2021
|
|
2020
|
|
$
|
|
%
|
Asset Management Fee
Revenue
|
$
|
3.1
|
|
|
$
|
3.0
|
|
|
$
|
0.1
|
|
|
5
|
%
|
Investment Management
EBITDA
|
$
|
3.8
|
|
|
$
|
2.9
|
|
|
$
|
0.9
|
|
|
32
|
%
|
- CatchMark recognized $0.6 million
of income and $0.7 million of
Investment Management EBITDA from the Dawsonville Bluffs joint
venture, which capitalized on strong market demand for mitigation
credits.
- Asset management fees increased as a result of last year's
amendment to the Triple T joint venture's asset management
agreement, following the successful renegotiation of its wood
supply agreement with Georgia
Pacific.
- CatchMark continues to pursue recapitalization opportunities
for Triple T in the wake of the renegotiated Georgia-Pacific wood
supply agreement and enhanced silviculture practices that have
increased stocking per acre on these prime timberlands since
acquisition.
CAPITAL POSITION AND SHARE REPURCHASES
Ample Liquidity:
- CatchMark continued to maintain ample liquidity for growth
initiatives and other capital allocation priorities, including
direct acquisitions and joint venture investments.
- As of March 31, 2021, the company
had $150.9 million of borrowing
capacity available under its credit facilities, consisting of
$115.9 million under the Multi-Draw
Term Facility and $35.0 million under
the Revolving Credit Facility.
- The company's active debt and interest rate management strategy
continues to provide attractive borrowing costs, staggered
long-term maturities and a favorable mix of fixed-to-floating rate
debt.
Covered Quarterly Dividend: Stockholders
received a total of $6.6 million in
dividend distributions, which were fully covered by net cash
provided by operating activities.
Share Repurchases: CatchMark did not
repurchase any shares of common stock under its share repurchase
program during the quarter and had $13.7
million remaining in the program for future repurchases as
of March 31, 2021.
Ursula Godoy-Arbelaez,
CatchMark's Chief Financial Officer, said: "In maintaining
CatchMark's strong capital position, we continue to evaluate
capital recycling opportunities to generate proceeds for funding
desirable timberland investments, paying down outstanding debt,
repurchasing shares of our common stock, and other capital
allocation priorities."
Conference Call
The company will host a conference call and live webcast at
10 a.m. ET on Friday, May 7, 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, Oregon, South Carolina and Texas. For more information, visit
www.catchmark.com.
* As of March 31, 2021
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements can generally be identified by our
use of forward-looking terminology such as "may," "will," "expect,"
"intend," "anticipate," "estimate," "believe," "continue," or other
similar words. However, the absence of these or similar words or
expressions does not mean that a statement is not forward-looking.
Forward-looking statements are not guarantees of performance and
are based on certain assumptions, discuss future expectations,
describe plans and strategies, contain projections of results of
operations or of financial condition or state other forward-looking
information. Forward-looking statements in this press release
include, but are not limited to, that we expect harvest volumes to
remain on track to meet full-year guidance, as we maintain
consistent annual productivity on a per-acre basis with the
potential to sustain current strong timber prices. 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 may
not increase at the rate we currently anticipate or could decline,
which would negatively impact our revenues; (v) the supply of
timberlands available for acquisition that meet our investment
criteria may be less than we currently anticipate; (vi) we may be
unsuccessful in winning bids for timberland that are sold through
an auction process; (vii) we may not be able to 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, 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,
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
Timber
sales
|
$
|
20,149
|
|
|
$
|
18,166
|
|
Timberland
sales
|
3,357
|
|
|
4,779
|
|
Asset management
fees
|
3,118
|
|
|
2,975
|
|
Other
revenues
|
1,062
|
|
|
1,052
|
|
|
27,686
|
|
|
26,972
|
|
Expenses
|
|
|
|
Contract logging and
hauling costs
|
8,731
|
|
|
7,277
|
|
Depletion
|
7,725
|
|
|
6,941
|
|
Cost of timberland
sales
|
2,155
|
|
|
3,422
|
|
Forestry management
expenses
|
1,887
|
|
|
1,834
|
|
General and
administrative expenses
|
3,600
|
|
|
7,267
|
|
Land rent
expense
|
113
|
|
|
124
|
|
Other operating
expenses
|
1,713
|
|
|
1,636
|
|
|
25,924
|
|
|
28,501
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest
income
|
1
|
|
|
46
|
|
Interest
expense
|
(2,928)
|
|
|
(3,957)
|
|
Gain on large
dispositions
|
—
|
|
|
1,279
|
|
|
(2,927)
|
|
|
(2,632)
|
|
|
|
|
|
Loss before
unconsolidated joint ventures and income taxes
|
(1,165)
|
|
|
(4,161)
|
|
|
|
|
|
Income (loss) from
unconsolidated joint ventures:
|
|
|
|
Triple T
|
—
|
|
|
—
|
|
Dawsonville
Bluffs
|
614
|
|
|
(88)
|
|
|
614
|
|
|
(88)
|
|
|
|
|
|
Net
loss
|
(551)
|
|
|
(4,249)
|
|
Net loss attributable
to noncontrolling interest
|
(1)
|
|
|
—
|
|
Net loss
attributable to common stockholders
|
$
|
(550)
|
|
|
$
|
(4,249)
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic and diluted
|
48,796
|
|
|
48,989
|
|
|
|
|
|
Net loss per
common share - basic and diluted
|
$
|
(0.01)
|
|
|
$
|
(0.09)
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
(in thousands,
except for per-share amounts)
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
12,656
|
|
|
$
|
11,924
|
|
Accounts
receivable
|
6,867
|
|
|
8,333
|
|
Prepaid expenses and
other assets
|
6,646
|
|
|
5,878
|
|
Operating lease
right-of-use asset
|
2,755
|
|
|
2,831
|
|
Deferred financing
costs
|
147
|
|
|
167
|
|
Timber
assets:
|
|
|
|
Timber and
timberlands, net
|
569,258
|
|
|
576,680
|
|
Intangible lease
assets
|
4
|
|
|
5
|
|
Investment in
unconsolidated joint ventures
|
2,124
|
|
|
1,510
|
|
Total
assets
|
$
|
600,457
|
|
|
$
|
607,328
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
5,387
|
|
|
$
|
4,808
|
|
Operating lease
liability
|
2,919
|
|
|
2,988
|
|
Other
liabilities
|
15,787
|
|
|
32,130
|
|
Notes payable and
lines of credit, net of deferred financing costs
|
437,754
|
|
|
437,490
|
|
Total
liabilities
|
461,847
|
|
|
477,416
|
|
|
|
|
|
Commitments and
Contingencies
|
—
|
|
|
—
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Class A common stock,
$0.01 par value; 900,000 shares authorized; 48,904 and 48,765
shares issued and outstanding as of March 31, 2021 and December 31,
2020, respectively
|
489
|
|
|
488
|
|
Additional paid-in
capital
|
728,616
|
|
|
728,662
|
|
Accumulated deficit
and distributions
|
(579,580)
|
|
|
(572,493)
|
|
Accumulated other
comprehensive loss
|
(12,238)
|
|
|
(27,893)
|
|
Total stockholders'
equity
|
137,287
|
|
|
128,764
|
|
Noncontrolling
Interest
|
1,323
|
|
|
1,148
|
|
Total
equity
|
138,610
|
|
|
129,912
|
|
Total liabilities and
equity
|
$
|
600,457
|
|
|
$
|
607,328
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
(in
thousands)
|
|
|
Three Months
Ended March
31,
|
|
2021
|
|
2020
|
Cash Flows from
Operating Activities:
|
|
|
|
Net loss
|
$
|
(551)
|
|
|
$
|
(4,249)
|
|
Adjustments to
reconcile net loss to net cash provided by
operating activities:
|
|
|
|
Depletion
|
7,725
|
|
|
6,941
|
|
Basis of timberland
sold, lease terminations and other
|
1,966
|
|
|
3,276
|
|
Stock-based
compensation expense
|
619
|
|
|
1,872
|
|
Noncash interest
expense
|
585
|
|
|
707
|
|
Noncash lease
expense
|
5
|
|
|
10
|
|
Other
amortization
|
43
|
|
|
41
|
|
Gain on large
dispositions
|
—
|
|
|
(1,279)
|
|
(Income) loss from
unconsolidated joint ventures
|
(614)
|
|
|
88
|
|
Operating
distributions from unconsolidated joint ventures
|
—
|
|
|
—
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
1,407
|
|
|
340
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
489
|
|
|
1,619
|
|
Prepaid expenses and
other assets
|
215
|
|
|
359
|
|
Accounts payable and
accrued expenses
|
658
|
|
|
2,576
|
|
Other
liabilities
|
(955)
|
|
|
(1,042)
|
|
Net cash provided by
operating activities
|
11,592
|
|
|
11,259
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(2,317)
|
|
|
(2,712)
|
|
Distributions from
unconsolidated joint ventures
|
—
|
|
|
400
|
|
Net proceeds from
large dispositions
|
—
|
|
|
20,863
|
|
Net cash provided by
(used in) investing activities
|
(2,317)
|
|
|
18,551
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Repayments of notes
payable
|
—
|
|
|
(20,850)
|
|
Financing costs
paid
|
(4)
|
|
|
(30)
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(1,407)
|
|
|
(340)
|
|
Dividends/distributions paid
|
(6,565)
|
|
|
(6,648)
|
|
Repurchases of common
shares
|
(78)
|
|
|
(2,052)
|
|
Repurchase of common
shares for minimum tax withholding
|
(489)
|
|
|
(965)
|
|
Net cash used in
financing activities
|
(8,543)
|
|
|
(30,885)
|
|
Net change in cash
and cash equivalents
|
732
|
|
|
(1,075)
|
|
Cash and cash
equivalents, beginning of period
|
11,924
|
|
|
11,487
|
|
Cash and cash
equivalents, end of period
|
$
|
12,656
|
|
|
$
|
10,412
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
SELECTED DATA
(UNAUDITED)
|
|
|
2021
|
|
2020
|
|
Q1
|
|
Q1
|
Consolidated
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
Pulpwood
|
273
|
|
|
324
|
|
Sawtimber
(1)
|
252
|
|
|
271
|
|
Total
|
525
|
|
|
595
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
Pulpwood
|
52
|
%
|
|
54
|
%
|
Sawtimber
(1)
|
48
|
%
|
|
46
|
%
|
|
|
|
|
Period-end
Acres ('000)
|
|
|
|
|
|
|
|
Fee
|
385
|
|
|
393
|
|
Lease
|
15
|
|
|
22
|
|
Wholly-owned
total
|
400
|
|
|
415
|
|
Joint venture
interest (5)
|
1,081
|
|
|
1,092
|
|
Total
|
1,481
|
|
|
1,507
|
|
|
|
|
|
U.S.
South
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
Pulpwood
|
271
|
|
|
320
|
|
Sawtimber
(1)
|
205
|
|
|
250
|
|
Total
|
476
|
|
|
570
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
Pulpwood
|
57
|
%
|
|
56
|
%
|
Sawtimber
(1)
|
43
|
%
|
|
44
|
%
|
Delivered % as of
total volume
|
74
|
%
|
|
63
|
%
|
Stumpage % as of
total volume
|
26
|
%
|
|
37
|
%
|
|
|
|
|
Net Timber
Sales Price ($ per ton) (2)
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
14
|
|
|
$
|
13
|
|
Sawtimber
(1)
|
$
|
25
|
|
|
$
|
23
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
Gross sales
('000)
|
$
|
3,357
|
|
|
$
|
4,779
|
|
Acres sold
|
1,800
|
|
|
3,000
|
|
% of fee
acres
|
0.5
|
%
|
|
0.7
|
%
|
Price per acre
(3)
|
$
|
1,923
|
|
|
$
|
1,627
|
|
|
|
|
|
Large
Dispositions (4)
|
|
|
|
Gross sales
('000)
|
$
|
—
|
|
|
$
|
21,250
|
|
Acres sold
|
—
|
|
|
14,400
|
|
Price per acre
(7)
|
$
|
—
|
|
|
$
|
1,474
|
|
Gain
('000)
|
$
|
—
|
|
|
$
|
1,279
|
|
|
|
|
|
Pacific
Northwest
|
|
|
|
Timber Sales
Volume (tons,'000)
|
|
|
|
|
|
|
|
Pulpwood
|
2
|
|
|
4
|
|
Sawtimber
(1)
|
47
|
|
|
21
|
|
Total
|
49
|
|
|
25
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
Pulpwood
|
4
|
%
|
|
18
|
%
|
Sawtimber
|
96
|
%
|
|
82
|
%
|
Delivered % as of
total volume
|
100
|
%
|
|
84
|
%
|
Stumpage % as of
total volume
|
—
|
%
|
|
16
|
%
|
|
|
|
|
Delivered
Timber Sales Price ($ per ton) (2)
(6)
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
30
|
|
|
$
|
31
|
|
Sawtimber
|
$
|
104
|
|
|
$
|
91
|
|
|
|
(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 three months ended March 31, 2021 and
2020, we retained 9,800 tons and 90,400 tons of merchantable
inventory, with a sawtimber mix of 56% and 49%, respectively, for
2021 and 2020.
|
|
|
(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, which retained 56,300 tons of merchantable
inventory, with a sawtimber mix of 55% for the three months ended
March 31, 2020.
|
.
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NET LOSS TO ADJUSTED EBITDA (UNAUDITED)
|
(in
thousands)
|
|
|
Three Months
Ended March
31,
|
(in
thousands)
|
2021
|
|
2020
|
Net
loss
|
$
|
(551)
|
|
|
$
|
(4,249)
|
|
Add:
|
|
|
|
Depletion
|
7,725
|
|
|
6,941
|
|
Interest expense
(2)
|
2,342
|
|
|
3,250
|
|
Amortization
(2)
|
633
|
|
|
758
|
|
Depletion,
amortization, basis of timberland, mitigation credits sold included
in loss from unconsolidated joint venture (3)
|
88
|
|
|
—
|
|
Basis of timberland
sold, lease terminations and other (4)
|
1,966
|
|
|
3,276
|
|
Stock-based
compensation expense
|
619
|
|
|
1,872
|
|
Gain on large
dispositions (5)
|
—
|
|
|
(1,279)
|
|
Post-employment
benefits (6)
|
16
|
|
|
2,286
|
|
Other
(7)
|
99
|
|
|
34
|
|
Adjusted
EBITDA (1)
|
$
|
12,937
|
|
|
$
|
12,889
|
|
|
|
(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 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.
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
ADJUSTED EBITDA BY
SEGMENT (UNAUDITED)
|
(in
thousands)
|
|
|
Three Months
Ended March
31,
|
|
2021
|
|
2020
|
Timber
sales
|
$
|
20,149
|
|
|
$
|
18,166
|
|
Other
revenue
|
1,062
|
|
|
1,052
|
|
(-)
Contract logging and hauling costs
|
(8,731)
|
|
|
(7,277)
|
|
(-)
Forestry management expenses
|
(1,887)
|
|
|
(1,834)
|
|
(-)
Land rent expense
|
(113)
|
|
|
(124)
|
|
(-)
Other operating expenses
|
(1,713)
|
|
|
(1,636)
|
|
(+)
Stock-based compensation
|
107
|
|
|
115
|
|
(+/-)
Other
|
53
|
|
|
145
|
|
Harvest
EBITDA
|
8,927
|
|
|
8,607
|
|
|
|
|
|
Timberland
sales
|
3,357
|
|
|
4,779
|
|
(-)
Cost of timberland sales
|
(2,155)
|
|
|
(3,422)
|
|
(+) Basis
of timberland sold
|
1,942
|
|
|
3,161
|
|
Real Estate
EBITDA
|
3,144
|
|
|
4,518
|
|
|
|
|
|
Asset management
fees
|
3,118
|
|
|
2,975
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
702
|
|
|
(88)
|
|
Investment
Management EBITDA
|
3,820
|
|
|
2,887
|
|
|
|
|
|
Total Operating
EBITDA
|
15,891
|
|
|
16,012
|
|
|
|
|
|
(-)
General and administrative expenses
|
(3,600)
|
|
|
(7,267)
|
|
(+)
Stock-based compensation
|
512
|
|
|
1,757
|
|
(+)
Interest income
|
—
|
|
|
46
|
|
(+)
Post-employment benefits
|
16
|
|
|
2,286
|
|
(+/-)
Other
|
118
|
|
|
55
|
|
Corporate
EBITDA
|
(2,954)
|
|
|
(3,123)
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,937
|
|
|
$
|
12,889
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
CASH AVAILABLE FOR
DISTRIBUTION (UNAUDITED)
|
(in thousands,
except for per share data)
|
|
|
Three Months
Ended March
31,
|
|
2021
|
|
2020
|
Cash Provided by
Operating Activities
|
$
|
11,592
|
|
|
$
|
11,259
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(2,317)
|
|
|
(2,712)
|
|
Working capital
change
|
(407)
|
|
|
(3,512)
|
|
Distributions from
unconsolidated joint ventures
|
—
|
|
|
400
|
|
Post-employment
benefits
|
16
|
|
|
2,286
|
|
Interest paid under
swaps with other-than-insignificant financing element
|
(1,407)
|
|
|
(340)
|
|
Other
|
99
|
|
|
34
|
|
Cash Available for
Distribution (1)
|
$
|
7,576
|
|
|
$
|
7,415
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
12,937
|
|
|
$
|
12,889
|
|
Interest
paid
|
(2,342)
|
|
|
(3,250)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(2,317)
|
|
|
(2,712)
|
|
Distributions from
unconsolidated joint ventures
|
—
|
|
|
400
|
|
Adjusted EBITDA from
unconsolidated joint ventures
|
(702)
|
|
|
88
|
|
Cash Available for
Distributions (1)
|
$
|
7,576
|
|
|
$
|
7,415
|
|
|
|
|
|
Dividends /
distributions paid
|
$
|
6,565
|
|
|
$
|
6,648
|
|
|
|
|
|
Weighted-average
shares outstanding, end of period
|
48,796
|
|
|
48,989
|
|
|
|
|
|
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.