ATLANTA, Aug. 5, 2021 /PRNewswire/
-- CatchMark Timber Trust, Inc. (NYSE: CTT)
today reported second quarter 2021 results. The company also
declared a cash dividend of $0.135
per share for its common stockholders of record as of August 31, 2021, payable on September 15, 2021.
![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
President and CEO, said: "CatchMark delivered an exceptionally
strong quarter, as we continue to capture significantly higher
pricing for both pulpwood and sawtimber from premier timberlands in
our U.S. South markets. These pricing advantages more than offset
the planned reduction in total harvest volume as we maintained
consistent productivity on a per-acre basis. We believe consumption
levels and availability of logs in our superior markets can
continue to deliver pricing premiums, helped by heightened
production in the U.S. South from new sawmills coming on-line over
the next 18 months to meet increased demand for lumber products in
U.S. housing markets. In addition, the U.S. South continues to meet
increased demand from the ongoing decline in Canadian timber
production."
"Second quarter results also benefited from higher
year-over-year timberland sales, bringing year-to-date sales to
almost 80% of full-year guidance targets. Liquidity remains ample
and we further strengthened our capital position, recognizing an
$0.8 million gain on the Oglethorpe
large disposition and using net proceeds of $7.3 million to pay down outstanding debt. The
pending disposition this month of our Pacific Northwest Bandon
timberlands will further strengthen our capital position and enable
future growth, concentrating in the U.S. South. Importantly, our
dividend is covered by operating cash flow and we are on track to
meet full-year guidance.
"Also, Triple T's recent agreement to sell approximately 28% of
its timberlands to Hancock Natural Resource Group demonstrates how
we have enhanced Triple T's financial performance and increased its
per-acre value. We continue to explore further opportunities to
unlock additional value for our Triple T investment partners and
CatchMark."
SECOND 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
June 30,
|
|
Change
|
2021
|
|
2020
|
|
Dollars, Tons or
Acres
|
|
%
|
Results of
Operations
|
|
|
|
|
|
|
|
Revenues
|
$
|
31.9
|
|
|
$
|
21.8
|
|
|
$
|
10.1
|
|
|
47
|
%
|
Net Income
(Loss)
|
$
|
1.8
|
|
|
$
|
(6.2)
|
|
|
$
|
8.0
|
|
|
128
|
%
|
Adjusted
EBITDA
|
$
|
17.6
|
|
|
$
|
9.4
|
|
|
$
|
8.2
|
|
|
86
|
%
|
|
|
|
|
|
|
|
|
Harvest Volume
(tons)
|
528,007
|
|
|
567,908
|
|
|
(39,901)
|
|
|
(7)
|
%
|
Acres Sold
|
4,300
|
|
|
1,100
|
|
|
3,200
|
|
|
291
|
%
|
Business Segments Overview
Harvest Operations
|
Three Months Ended
June 30,
|
|
Change
|
(in
millions)
|
2021
|
|
2020
|
|
$
|
|
%
|
Timber Sales
Revenue
|
$
|
20.1
|
|
|
$
|
16.2
|
|
|
$
|
3.9
|
|
|
24
|
%
|
Harvest
EBITDA
|
$
|
9.4
|
|
|
$
|
7.4
|
|
|
$
|
2.0
|
|
|
27
|
%
|
Harvests from CatchMark's prime timberlands located in strong
markets across the U.S. South and in the Pacific Northwest
continued to generate significant price premiums over market
averages during the second quarter and delivered substantially
higher timber sales revenue year-over-year on 7% lower overall
volumes. Lower volumes were anticipated and resulted from recent
large timberland dispositions.
Robust mill demand in CatchMark's markets was driven by
increased housing starts, significant repair and remodeling
business, and continued demand for pulp-related products.
U.S. South:
- Timber sales revenue increased $1.8
million, or 13%, year-over-year, resulting from
exceptionally strong pricing, partly offset by 10% lower harvest
volumes. Harvest volumes reflected consistent productivity on a
per-acre basis.
- Pulpwood and sawtimber sales prices were 71% and 19%,
respectively, higher than TimberMart-South South-wide averages, and
25% and 13% above CatchMark's realized prices for the prior year
quarter.
Pacific Northwest:
- Timber sales revenue year-over-year increased by $2.1 million, a 131% increase, due to a 75%
increase in harvest volume and a 26% increase in delivered
sawtimber pricing.
- Increased regional harvest volumes by capitalizing on
particularly favorable market conditions for lumber demand that
have carried over from late 2020 as the economy accelerated
emerging from the pandemic-related downturn.
Todd Reitz, Chief Resources
Officer, said: "Despite wet weather in the U.S. South, we
maintained consistent delivered and stumpage sales in the region as
well as increased delivered volume in the Pacific Northwest, taking
advantage of strong sawmill order files in our superior markets.
Although the housing surge has slowed slightly, mill inventories
remain thin and both sawtimber and pulp markets are buoyed by
strong demand, which continues to position us well for the
near-term."
Real Estate
|
Three Months Ended
June 30,
|
|
Change
|
(in
millions)
|
2021
|
|
2020
|
|
$
|
|
%
|
Timberland Sales
Revenue
|
$
|
7.6
|
|
|
$
|
1.7
|
|
|
$
|
6.0
|
|
|
356
|
%
|
Real Estate
EBITDA
|
$
|
7.3
|
|
|
$
|
1.6
|
|
|
$
|
5.8
|
|
|
372
|
%
|
Timberland Sales:
- The company sold 4,300 acres during the quarter, 3,200 acres
more than in second quarter 2020, and at an 11% higher average
price per acre — $1,743 versus
$1,564 in second quarter 2020.
- The per-acre sales price increased despite lower average
merchantable timber stocking levels and generated an improved
margin — 26% in second quarter 2021 versus 13% in second quarter
2020.
- Acres sold in the current period had lower average merchantable
timber stocking than our portfolio average.
- Through the second quarter, CatchMark has completed nearly 80%
of its full-year 2021 timberland sales target and remains on course
to meet guidance.
Acquisitions and Large Dispositions:
CatchMark made no acquisitions during the quarter, but completed a
large disposition under its capital recycling program — the sale of
5,000 acres in Georgia (Oglethorpe)
for $7.5 million. The transaction
resulted in recognizing an $0.8
million gain and $7.3 million
of net proceeds was used to pay down its outstanding debt balance
on the Multi-Draw Term Facility. In addition, CatchMark entered
into a definitive agreement on June 21,
2021 to sell 18,100 acres of Oregon timberlands — known as the Bandon property — for $100 million, or $5,536 per acre. CatchMark purchased the
Bandon property in August 2018 for $88.8
million, or $4,916 per acre,
and expects to recognize a gain on the sale in excess of
$20 million in the third quarter of
2021. CatchMark will use most of the net proceeds from the
Bandon disposition to pay down its
outstanding debt.
Investment Management
|
Three Months Ended
June 30,
|
|
Change
|
(in
millions)
|
2021
|
|
2020
|
|
$
|
|
%
|
Asset Management Fee
Revenue
|
$
|
3.2
|
|
|
$
|
2.9
|
|
|
$
|
0.4
|
|
|
12
|
%
|
Investment Management
EBITDA
|
$
|
3.3
|
|
|
$
|
2.8
|
|
|
$
|
0.5
|
|
|
16
|
%
|
- The 12% increase in asset management fee revenue year-over-year
to $3.2 million resulted from the
amended asset management agreement with the Triple T joint venture,
which was completed during the second quarter of 2020.
- CatchMark received $0.4 million
of distributions from the Dawsonville Bluffs joint venture during
the second quarter, including $0.1
million of incentive-based promotes for exceeding investment
hurdles. Subsequent to quarter-end, the company received an
additional $0.7 million distribution
from Dawsonville Bluffs, including incentive-based promotes.
- On July 30, 2021, the Triple T
joint venture entered into a definitive agreement to sell 301,000
acres of its 1.1 million acres of prime East Texas timberlands for $498 million, exclusive of transaction costs. The
negotiated per-acre sales price of $1,656 compares to Triple T's $1,264 per-acre acquisition price in July 2018. Sale proceeds will be used to reduce
Triple T's leverage and to pay down a portion of the preferred
partnership interests in the joint venture. The transaction is
expected to close during the third quarter, subject to customary
closing conditions.
CAPITAL POSITION AND SHARE REPURCHASES
CatchMark maintained its strong capital position with more than
$180 million of liquidity from a
combination of credit facilities and cash on hand, as of
June 30, 2021.
- Following the Oglethorpe large disposition and the use of
$7.3 million in net proceeds to
paydown its outstanding balance on the Multi-Draw Term Facility,
CatchMark had a cash balance of $22.3
million and $158.2 million of
borrowing capacity remaining under its credit facilities,
consisting of $123.2 million under
the Multi-Draw Term Facility and $35.0
million under the Revolving Credit Facility, as of
June 30, 2021.
- On August 4, 2021, CatchMark
amended its existing credit agreement to establish a $68.6 million revolver feature on Term Loan A-3
and extend the maturity date of the existing Revolving Credit
Facility from 2022 to 2026.
Chief Financial Officer Ursula
Godoy-Arbelaez, said: "Under the amended credit agreement,
CatchMark can use proceeds from the pending Bandon disposition to further deleverage the
company while improving future available debt capacity. We have
increased the weighted-average life of our debt while maintaining
current competitive pricing. The amendment improves liquidity,
flexibility and balance sheet strength, all while maximizing debt
capacity for future growth."
Covered Dividend
- During the second quarter, CatchMark paid $6.6 million of distributions to stockholders,
fully covered by net cash provided by operating activities.
Conference Call
The company will host a conference call and live webcast at 10
a.m. ET on Friday, August 6, 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, Georgia, Oregon, South Carolina and Texas. For more information, visit
www.catchmark.com.
* As of June 30,
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 believe consumption
levels and availability of logs in our superior markets can
continue to deliver pricing premiums, helped by heightened
production in the U.S. South from new sawmills coming on-line over
the next 18 months to meet increased demand for lumber products in
U.S. housing markets; that the pending disposition in the third
quarter of our Pacific Northwest Bandon timberlands will further
strengthen our capital position and enable future growth; that
we are on track to meet full-year
guidance; that both sawtimber and pulp markets are
buoyed by strong demand, which continues to position us well for
the near-term; and that the sale of property by Triple T is
expected to close during the third quarter, subject to customary
closing conditions. Risks and uncertainties that could
cause our actual results to differ from these forward-looking
statements include, but are not limited to, that (i) the
conditions to closing the Bandon
disposition may not be satisfied in a timely manner or at all and
our gain on the transaction may less than we currently
anticipate; (ii) the conditions to closing the
Triple T land sale transaction may not be satisfied in a timely
manner or at all and Triple T's proceeds from the transaction could
be less than we anticipate; (iii) we may
not generate the harvest volumes from our timberlands that we
currently anticipate; (iv) 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; (v) 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; (vii) the supply of
timberlands available for acquisition that meet our investment
criteria may be less than we currently anticipate; (viii) we may be
unsuccessful in winning bids for timberland that are sold through
an auction process; (ix) 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; (x) we may not be able
to access external sources of capital at attractive rates or at
all; (xi) potential increases in interest rates could have a
negative impact on our business; (xii) our share repurchase program
may not be successful in improving stockholder value over the
long-term; (xiii) our joint venture strategy may not enable us to
access non-dilutive capital and enhance our ability to make
acquisitions; (xiv) 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 and our investment in
the joint venture may lose some or all of its value; and (xv) 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
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues:
|
|
|
|
|
|
|
|
Timber
sales
|
$
|
20,111
|
|
|
$
|
16,173
|
|
|
$
|
40,260
|
|
|
$
|
34,339
|
|
Timberland
sales
|
7,632
|
|
|
1,673
|
|
|
10,989
|
|
|
6,452
|
|
Asset management
fees
|
3,211
|
|
|
2,857
|
|
|
6,329
|
|
|
5,832
|
|
Other
revenues
|
986
|
|
|
1,054
|
|
|
2,048
|
|
|
2,106
|
|
|
31,940
|
|
|
21,757
|
|
|
59,626
|
|
|
48,729
|
|
Expenses
|
|
|
|
|
|
|
|
Contract logging and
hauling costs
|
8,825
|
|
|
6,978
|
|
|
17,556
|
|
|
14,255
|
|
Depletion
|
6,657
|
|
|
6,707
|
|
|
14,382
|
|
|
13,648
|
|
Cost of timberland
sales
|
5,641
|
|
|
1,463
|
|
|
7,796
|
|
|
4,885
|
|
Forestry management
expenses
|
1,707
|
|
|
1,671
|
|
|
3,594
|
|
|
3,505
|
|
General and
administrative expenses
|
3,094
|
|
|
3,024
|
|
|
6,694
|
|
|
10,291
|
|
Land rent
expense
|
20
|
|
|
96
|
|
|
133
|
|
|
220
|
|
Other operating
expenses
|
1,714
|
|
|
1,585
|
|
|
3,427
|
|
|
3,221
|
|
|
27,658
|
|
|
21,524
|
|
|
53,582
|
|
|
50,025
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
—
|
|
|
4
|
|
|
1
|
|
|
50
|
|
Interest
expense
|
(3,337)
|
|
|
(4,070)
|
|
|
(6,265)
|
|
|
(8,027)
|
|
Gain on large
dispositions
|
759
|
|
|
(5)
|
|
|
759
|
|
|
1,274
|
|
|
(2,578)
|
|
|
(4,071)
|
|
|
(5,505)
|
|
|
(6,703)
|
|
|
|
|
|
|
|
|
|
Income (loss)
before unconsolidated joint ventures and
income taxes
|
1,704
|
|
|
(3,838)
|
|
|
539
|
|
|
(7,999)
|
|
|
|
|
|
|
|
|
|
Income (loss) from
unconsolidated joint ventures:
|
|
|
|
|
|
|
|
Triple T
|
—
|
|
|
(2,311)
|
|
|
—
|
|
|
(2,311)
|
|
Dawsonville
Bluffs
|
49
|
|
|
(34)
|
|
|
663
|
|
|
(122)
|
|
|
49
|
|
|
(2,345)
|
|
|
663
|
|
|
(2,433)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
1,753
|
|
|
(6,183)
|
|
|
1,202
|
|
|
(10,432)
|
|
Net income
attributable to noncontrolling interest
|
4
|
|
|
—
|
|
|
3
|
|
|
—
|
|
Net income (loss)
attributable to common stockholders
|
$
|
1,749
|
|
|
$
|
(6,183)
|
|
|
$
|
1,199
|
|
|
$
|
(10,432)
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic
|
48,421
|
|
|
48,744
|
|
|
48,398
|
|
|
48,866
|
|
Income (loss) per
common share - basic
|
$
|
0.04
|
|
|
$
|
(0.13)
|
|
|
$
|
0.02
|
|
|
$
|
(0.21)
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - diluted
|
|
48,562
|
|
|
|
48,744
|
|
|
|
48,513
|
|
|
|
48,866
|
|
Income (loss) per
common share - diluted
|
$
|
0.04
|
|
|
$
|
(0.13)
|
|
|
$
|
0.02
|
|
|
$
|
(0.21)
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
(in thousands,
except for per-share amounts)
|
|
|
June 30,
2021
|
|
December 31,
2020
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
22,291
|
|
|
$
|
11,924
|
|
Accounts
receivable
|
7,615
|
|
|
8,333
|
|
Prepaid expenses and
other assets
|
6,349
|
|
|
5,878
|
|
Operating lease
right-of-use asset
|
2,680
|
|
|
2,831
|
|
Deferred financing
costs
|
125
|
|
|
167
|
|
Timber
assets:
|
|
|
|
Timber and
timberlands, net
|
475,354
|
|
|
576,680
|
|
Intangible lease
assets
|
3
|
|
|
5
|
|
Assets held for
sale
|
75,940
|
|
|
—
|
|
Investment in
unconsolidated joint ventures
|
1,907
|
|
|
1,510
|
|
Total
assets
|
$
|
592,264
|
|
|
$
|
607,328
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
5,595
|
|
|
$
|
4,808
|
|
Operating lease
liability
|
2,849
|
|
|
2,988
|
|
Other
liabilities
|
23,149
|
|
|
32,130
|
|
Notes payable and
lines of credit, net of deferred financing costs
|
430,659
|
|
|
437,490
|
|
Total
liabilities
|
462,252
|
|
|
477,416
|
|
|
|
|
|
Commitments and
Contingencies
|
—
|
|
|
—
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Class A common stock,
$0.01 par value; 900,000 shares authorized; 48,906
and 48,765 shares issued and
outstanding as of June 30, 2021 and
December 31, 2020,
respectively
|
489
|
|
|
488
|
|
Additional paid-in
capital
|
729,155
|
|
|
728,662
|
|
Accumulated deficit
and distributions
|
(584,368)
|
|
|
(572,493)
|
|
Accumulated other
comprehensive loss
|
(16,731)
|
|
|
(27,893)
|
|
Total stockholders'
equity
|
128,545
|
|
|
128,764
|
|
Noncontrolling
Interest
|
1,467
|
|
|
1,148
|
|
Total
equity
|
130,012
|
|
|
129,912
|
|
Total liabilities and
equity
|
$
|
592,264
|
|
|
$
|
607,328
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
(in
thousands)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,753
|
|
|
$
|
(6,183)
|
|
|
$
|
1,202
|
|
|
$
|
(10,432)
|
|
Adjustments to
reconcile net income (loss) to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
Depletion
|
6,657
|
|
|
6,707
|
|
|
14,382
|
|
|
13,648
|
|
Basis of timberland
sold, lease terminations and other
|
5,701
|
|
|
1,721
|
|
|
7,667
|
|
|
4,997
|
|
Stock-based
compensation expense
|
767
|
|
|
705
|
|
|
1,386
|
|
|
2,577
|
|
Noncash interest
expense
|
586
|
|
|
1,064
|
|
|
1,171
|
|
|
1,771
|
|
Noncash lease
expense
|
6
|
|
|
10
|
|
|
11
|
|
|
20
|
|
Other
amortization
|
44
|
|
|
42
|
|
|
87
|
|
|
83
|
|
Gain (loss) on large
dispositions
|
(759)
|
|
|
5
|
|
|
(759)
|
|
|
(1,274)
|
|
(Income) loss from
unconsolidated joint ventures
|
(49)
|
|
|
2,345
|
|
|
(663)
|
|
|
2,433
|
|
Interest paid under
swaps with other-than-insignificant
financing element
|
1,438
|
|
|
1,152
|
|
|
2,845
|
|
|
1,492
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(747)
|
|
|
(1,146)
|
|
|
(258)
|
|
|
473
|
|
Prepaid expenses and
other assets
|
282
|
|
|
50
|
|
|
497
|
|
|
409
|
|
Accounts payable and
accrued expenses
|
220
|
|
|
80
|
|
|
878
|
|
|
2,656
|
|
Other
liabilities
|
2,561
|
|
|
2,219
|
|
|
1,606
|
|
|
1,177
|
|
Net cash provided by
operating activities
|
18,460
|
|
|
8,771
|
|
|
30,052
|
|
|
20,030
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,003)
|
|
|
(1,054)
|
|
|
(3,320)
|
|
|
(3,766)
|
|
Investment in
unconsolidated joint ventures
|
—
|
|
|
(5,000)
|
|
|
—
|
|
|
(5,000)
|
|
Distributions from
unconsolidated joint ventures
|
266
|
|
|
—
|
|
|
266
|
|
|
400
|
|
Net proceeds from
large dispositions
|
7,340
|
|
|
—
|
|
|
7,340
|
|
|
20,863
|
|
Net cash provided by
(used in) investing activities
|
6,603
|
|
|
(6,054)
|
|
|
4,286
|
|
|
12,497
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Repayments of notes
payable
|
(7,295)
|
|
|
—
|
|
|
(7,295)
|
|
|
(20,850)
|
|
Proceeds from notes
payable
|
—
|
|
|
5,000
|
|
|
—
|
|
|
5,000
|
|
Financing costs
paid
|
(3)
|
|
|
(974)
|
|
|
(7)
|
|
|
(1,004)
|
|
Interest paid under
swaps with other-than-insignificant
financing element
|
(1,438)
|
|
|
(1,152)
|
|
|
(2,845)
|
|
|
(1,492)
|
|
Dividends/distributions paid
|
(6,563)
|
|
|
(6,541)
|
|
|
(13,128)
|
|
|
(13,189)
|
|
Repurchases of common
shares
|
(80)
|
|
|
(78)
|
|
|
(158)
|
|
|
(2,130)
|
|
Repurchase of common
shares for minimum tax withholding
|
(49)
|
|
|
(34)
|
|
|
(538)
|
|
|
(999)
|
|
Net cash used in
financing activities
|
(15,428)
|
|
|
(3,779)
|
|
|
(23,971)
|
|
|
(34,664)
|
|
Net change in cash
and cash equivalents
|
9,635
|
|
|
(1,062)
|
|
|
10,367
|
|
|
(2,137)
|
|
Cash and cash
equivalents, beginning of period
|
12,656
|
|
|
10,412
|
|
|
11,924
|
|
|
11,487
|
|
Cash and cash
equivalents, end of period
|
$
|
22,291
|
|
|
$
|
9,350
|
|
|
$
|
22,291
|
|
|
$
|
9,350
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
SELECTED DATA
(UNAUDITED)
|
|
|
2021
|
|
2020
|
|
Q1
|
|
Q2
|
|
YTD
|
|
Q1
|
|
Q2
|
|
YTD
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
273
|
|
|
300
|
|
|
573
|
|
|
324
|
|
|
354
|
|
|
679
|
|
Sawtimber
(1)
|
252
|
|
|
228
|
|
|
480
|
|
|
271
|
|
|
214
|
|
|
484
|
|
Total
|
525
|
|
|
528
|
|
|
1,053
|
|
|
595
|
|
|
568
|
|
|
1,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
52
|
%
|
|
57
|
%
|
|
54
|
%
|
|
54
|
%
|
|
62
|
%
|
|
58
|
%
|
Sawtimber
(1)
|
48
|
%
|
|
43
|
%
|
|
46
|
%
|
|
46
|
%
|
|
38
|
%
|
|
42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end
Acres ('000)
|
|
|
|
|
|
|
|
|
|
|
|
Fee
|
385
|
|
|
375
|
|
|
375
|
|
|
393
|
|
|
392
|
|
|
392
|
|
Lease
|
15
|
|
|
15
|
|
|
15
|
|
|
22
|
|
|
22
|
|
|
22
|
|
Wholly-owned
total
|
400
|
|
|
390
|
|
|
390
|
|
|
415
|
|
|
414
|
|
|
414
|
|
Joint venture
interest (5)
|
1,081
|
|
|
1,080
|
|
|
1,080
|
|
|
1,092
|
|
|
1,092
|
|
|
1,092
|
|
Total
|
1,481
|
|
|
1,470
|
|
|
1,470
|
|
|
1,507
|
|
|
1,506
|
|
|
1,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
South
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons, '000)
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
271
|
|
|
297
|
|
|
568
|
|
|
320
|
|
|
352
|
|
|
672
|
|
Sawtimber
(1)
|
205
|
|
|
194
|
|
|
399
|
|
|
250
|
|
|
195
|
|
|
445
|
|
Total
|
476
|
|
|
491
|
|
|
967
|
|
|
570
|
|
|
547
|
|
|
1,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
57
|
%
|
|
61
|
%
|
|
59
|
%
|
|
56
|
%
|
|
64
|
%
|
|
60
|
%
|
Sawtimber
(1)
|
43
|
%
|
|
39
|
%
|
|
41
|
%
|
|
44
|
%
|
|
36
|
%
|
|
40
|
%
|
Delivered % as of
total volume
|
74
|
%
|
|
77
|
%
|
|
76
|
%
|
|
63
|
%
|
|
61
|
%
|
|
62
|
%
|
Stumpage % as of
total volume
|
26
|
%
|
|
23
|
%
|
|
24
|
%
|
|
37
|
%
|
|
39
|
%
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Timber
Sales Price ($ per ton) (2)
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
$
|
13
|
|
|
$
|
12
|
|
|
$
|
13
|
|
Sawtimber
(1)
|
$
|
25
|
|
|
$
|
26
|
|
|
$
|
25
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timberland
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales
('000)
|
$
|
3,357
|
|
|
$
|
7,632
|
|
|
$
|
10,989
|
|
|
$
|
4,779
|
|
|
$
|
1,673
|
|
|
$
|
6,452
|
|
Acres sold
|
1,800
|
|
|
4,300
|
|
|
6,100
|
|
|
3,000
|
|
|
1,100
|
|
|
4,100
|
|
% of fee
acres
|
0.5
|
%
|
|
1.2
|
%
|
|
1.6
|
%
|
|
0.7
|
%
|
|
0.3
|
%
|
|
1.0
|
%
|
Price per acre
(3)
|
$
|
1,923
|
|
|
$
|
1,743
|
|
|
$
|
1,794
|
|
|
$
|
1,627
|
|
|
$
|
1,564
|
|
|
$
|
1,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large
Dispositions (4)
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales
('000)
|
$
|
—
|
|
|
$
|
7,536
|
|
|
$
|
7,536
|
|
|
$
|
21,250
|
|
|
$
|
—
|
|
|
$
|
21,250
|
|
Acres sold
|
—
|
|
|
5,000
|
|
|
5,000
|
|
|
14,400
|
|
|
—
|
|
|
14,400
|
|
Price per acre
(7)
|
$
|
—
|
|
|
$
|
1,522
|
|
|
$
|
1,522
|
|
|
$
|
1,474
|
|
|
$
|
—
|
|
|
$
|
1,474
|
|
Gain
('000)
|
$
|
—
|
|
|
$
|
759
|
|
|
$
|
759
|
|
|
$
|
1,274
|
|
|
$
|
—
|
|
|
$
|
1,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific
Northwest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Timber Sales
Volume (tons,'000)
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
2
|
|
|
3
|
|
|
5
|
|
|
4
|
|
|
3
|
|
|
7
|
|
Sawtimber (1)
|
47
|
|
|
34
|
|
|
81
|
|
|
21
|
|
|
18
|
|
|
39
|
|
Total
|
49
|
|
|
37
|
|
|
86
|
|
|
25
|
|
|
21
|
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest
Mix
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
4
|
%
|
|
8
|
%
|
|
6
|
%
|
|
18
|
%
|
|
13
|
%
|
|
15
|
%
|
Sawtimber
|
96
|
%
|
|
92
|
%
|
|
94
|
%
|
|
82
|
%
|
|
87
|
%
|
|
85
|
%
|
Delivered % as of
total volume
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
84
|
%
|
|
100
|
%
|
|
91
|
%
|
Stumpage % as of
total volume
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
16
|
%
|
|
—
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivered
Timber Sales Price ($ per ton) (2)
(6)
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
31
|
|
|
$
|
29
|
|
|
$
|
30
|
|
Sawtimber
|
$
|
104
|
|
|
$
|
106
|
|
|
$
|
105
|
|
|
$
|
91
|
|
|
$
|
84
|
|
|
$
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 30, 2021 and
2020, we retained 49,000 tons and 25,000 tons of merchantable
inventory, with a sawtimber mix of 32% and 62%, respectively, for
2021 and 2020. For the six months ended June 30, 2021 and 2020, we
retained 59,000 tons and 115,000 tons of merchantable inventory,
with a sawtimber mix of 36% and 52%, 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.
|
(7)
|
Excludes value of
timber reservations, which retained 56,300 tons of merchantable
inventory, with a sawtimber mix of 55% for the six months ended
June 30, 2020.
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)
|
(in
thousands)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
(loss)
|
$
|
1,753
|
|
|
$
|
(6,183)
|
|
|
$
|
1,202
|
|
|
$
|
(10,432)
|
|
Add:
|
|
|
|
|
|
|
|
Depletion
|
6,657
|
|
|
6,707
|
|
|
14,382
|
|
|
13,648
|
|
Interest expense
(2)
|
2,752
|
|
|
3,006
|
|
|
5,094
|
|
|
6,256
|
|
Amortization
(2)
|
636
|
|
|
1,116
|
|
|
1,269
|
|
|
1,874
|
|
Depletion,
amortization, basis of timberland, mitigation
credits sold included in loss from unconsolidated joint
venture (3)
|
15
|
|
|
—
|
|
|
103
|
|
|
—
|
|
Basis of timberland
sold, lease terminations and other (4)
|
5,701
|
|
|
1,721
|
|
|
7,667
|
|
|
4,997
|
|
Stock-based
compensation expense
|
767
|
|
|
705
|
|
|
1,386
|
|
|
2,577
|
|
Gain on large
dispositions (5)
|
(759)
|
|
|
5
|
|
|
(759)
|
|
|
(1,274)
|
|
HLBV loss from
unconsolidated joint venture (6)
|
—
|
|
|
2,311
|
|
|
—
|
|
|
2,311
|
|
Post-employment
benefits (7)
|
7
|
|
|
11
|
|
|
23
|
|
|
2,297
|
|
Other
(8)
|
48
|
|
|
36
|
|
|
147
|
|
|
70
|
|
Adjusted
EBITDA (1)
|
$
|
17,577
|
|
|
$
|
9,435
|
|
|
$
|
30,514
|
|
|
$
|
22,324
|
|
|
|
(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.
|
(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 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 paid in
installments over agreed-upon periods of time.
|
(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
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Timber
sales
|
$
|
20,111
|
|
|
$
|
16,173
|
|
|
$
|
40,260
|
|
|
$
|
34,339
|
|
Other
revenue
|
986
|
|
|
1,054
|
|
|
2,048
|
|
|
2,106
|
|
(-)
Contract logging and hauling costs
|
(8,825)
|
|
|
(6,978)
|
|
|
(17,556)
|
|
|
(14,255)
|
|
(-)
Forestry management expenses
|
(1,707)
|
|
|
(1,671)
|
|
|
(3,594)
|
|
|
(3,505)
|
|
(-)
Land rent expense
|
(20)
|
|
|
(96)
|
|
|
(133)
|
|
|
(220)
|
|
(-)
Other operating expenses
|
(1,714)
|
|
|
(1,585)
|
|
|
(3,427)
|
|
|
(3,221)
|
|
(+)
Stock-based compensation
|
143
|
|
|
82
|
|
|
250
|
|
|
197
|
|
(+/-)
Other
|
393
|
|
|
409
|
|
|
446
|
|
|
554
|
|
Harvest
EBITDA
|
9,367
|
|
|
7,388
|
|
|
18,294
|
|
|
15,995
|
|
|
|
|
|
|
|
|
|
Timberland
sales
|
7,632
|
|
|
1,673
|
|
|
10,989
|
|
|
6,452
|
|
(-)
Cost of timberland sales
|
(5,641)
|
|
|
(1,463)
|
|
|
(7,796)
|
|
|
(4,885)
|
|
(+) Basis
of timberland sold
|
5,342
|
|
|
1,342
|
|
|
7,284
|
|
|
4,503
|
|
Real Estate
EBITDA
|
7,333
|
|
|
1,552
|
|
|
10,477
|
|
|
6,070
|
|
|
|
|
|
|
|
|
|
Asset management
fees
|
3,211
|
|
|
2,857
|
|
|
6,329
|
|
|
5,832
|
|
Unconsolidated
Dawsonville Bluffs joint venture EBITDA
|
64
|
|
|
(34)
|
|
|
766
|
|
|
(122)
|
|
Investment
Management EBITDA
|
3,275
|
|
|
2,823
|
|
|
7,095
|
|
|
5,710
|
|
|
|
|
|
|
|
|
|
Total Operating
EBITDA
|
19,975
|
|
|
11,763
|
|
|
35,866
|
|
|
27,775
|
|
|
|
|
|
|
|
|
|
(-) General and
administrative expenses
|
(3,094)
|
|
|
(3,024)
|
|
|
(6,694)
|
|
|
(10,291)
|
|
(+)
Stock-based compensation
|
624
|
|
|
623
|
|
|
1,136
|
|
|
2,380
|
|
(+)
Interest income
|
—
|
|
|
4
|
|
|
1
|
|
|
50
|
|
(+)
Post-employment benefits
|
7
|
|
|
11
|
|
|
23
|
|
|
2,297
|
|
(+/-)
Other
|
65
|
|
|
58
|
|
|
182
|
|
|
113
|
|
Corporate
EBITDA
|
(2,398)
|
|
|
(2,328)
|
|
|
(5,352)
|
|
|
(5,451)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
17,577
|
|
|
$
|
9,435
|
|
|
$
|
30,514
|
|
|
$
|
22,324
|
|
CATCHMARK TIMBER
TRUST, INC. AND SUBSIDIARIES
|
CASH AVAILABLE FOR
DISTRIBUTION (UNAUDITED)
|
(in thousands,
except for per share data)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash Provided by
Operating Activities
|
$
|
18,460
|
|
|
$
|
8,771
|
|
|
$
|
30,052
|
|
|
$
|
20,030
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,003)
|
|
|
(1,054)
|
|
|
(3,320)
|
|
|
(3,766)
|
|
Working capital
change
|
(2,316)
|
|
|
(1,203)
|
|
|
(2,723)
|
|
|
(4,715)
|
|
Distributions from
unconsolidated joint ventures
|
266
|
|
|
—
|
|
|
266
|
|
|
400
|
|
Post-employment
benefits
|
7
|
|
|
11
|
|
|
23
|
|
|
2,297
|
|
Interest paid under
swaps with other-than-insignificant financing
element
|
(1,438)
|
|
|
(1,152)
|
|
|
(2,845)
|
|
|
(1,492)
|
|
Other
|
48
|
|
|
36
|
|
|
147
|
|
|
70
|
|
Cash Available for
Distribution (1)
|
$
|
14,024
|
|
|
$
|
5,409
|
|
|
$
|
21,600
|
|
|
$
|
12,824
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
17,577
|
|
|
$
|
9,435
|
|
|
$
|
30,514
|
|
|
$
|
22,324
|
|
Interest
paid
|
(2,752)
|
|
|
(3,006)
|
|
|
(5,094)
|
|
|
(6,256)
|
|
Capital expenditures
(excluding timberland acquisitions)
|
(1,003)
|
|
|
(1,054)
|
|
|
(3,320)
|
|
|
(3,766)
|
|
Distributions from
unconsolidated joint ventures
|
266
|
|
|
—
|
|
|
266
|
|
|
400
|
|
Adjusted EBITDA from
unconsolidated joint ventures
|
(64)
|
|
|
34
|
|
|
(766)
|
|
|
122
|
|
Cash Available for
Distributions (1)
|
$
|
14,024
|
|
|
$
|
5,409
|
|
|
$
|
21,600
|
|
|
$
|
12,824
|
|
|
|
|
|
|
|
|
|
Dividends /
distributions paid
|
$
|
6,563
|
|
|
$
|
6,541
|
|
|
$
|
13,128
|
|
|
$
|
13,189
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic, end of period
|
48,421
|
|
|
48,744
|
|
|
48,398
|
|
|
48,866
|
|
|
|
|
|
|
|
|
|
Dividends per
Share
|
$
|
0.135
|
|
|
$
|
0.135
|
|
|
$
|
0.270
|
|
|
$
|
0.270
|
|
|
|
(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.