CATCHMARK’S STRATEGIES PRODUCE STABLE, VISIBLE, HIGH-QUALITY CASH FLOW.

SINCE OUR LISTING ON THE NYSE IN 2013, WE HAVE SIGNIFICANTLY IMPROVED THE QUALITY OF OUR TIMBERLAND ASSETS AND ENHANCED PRODUCTIVITY THROUGH SUSTAINABLE FOREST MANAGEMENT PRACTICES.

3

WE OWN TIMBERLANDS IN THREE STATES IN THE U.S. SOUTH

370,100

WE OWN 370,100 ACRES OF HIGH-QUALITY TIMBERLANDS

14.2M

OUR ACREAGE HAS 14.2 MILLION TONS OF MERCHANTABLE INVENTORY

* as of October 15, 2021

quote-mark

Our timberlands are located by strategic design in high-demand mill markets where we consistently outperform regional averages, and we diligently focus on delivering durable returns for our shareholders and partners through optimizing sustainable harvest yields over long-term investment horizons. 

BRIAN M. DAVIS
CHIEF EXECUTIVE OFFICER

ONLY PRIME TIMBERLANDS

We pursue investments in prime timberlands located in leading mill markets, which can produce durable revenue growth.

VIEW OUR KEY FACTS
CATCHMARK-PORTFOLIO_600X450
delivered-sales

HIGH-DEMAND MILL MARKETS

We invest in prime timberlands located in leading mill markets with favorable current and long-term fundamentals.

LEARN MORE ABOUT OUR PORTFOLIO

SUPERIOR MANAGEMENT

CatchMark strategically manages harvest plans, operating in prime mill markets for sawtimber and pulpwood, to serve customers and optimize yields within sustainability parameters to maximize cash flows throughout the business cycle.

LEARN MORE ABOUT OUR APPROACH
INVESTMENT-STRATEGY

INVESTOR RESOURCES

NYSE: CTT


WEBCASTS

NOVEMBER 5, 2021 10AM ET

3Q 2021 EARNINGS WEBCAST →

OCTOBER 15, 2021 10AM ET

BUSINESS UPDATE WEBCAST →

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PRESENTATIONS & REPORTS

VIEW ALL PRESENTATIONS

LATEST NEWS

November 08, 2021

CatchMark Releases 2020 Carbon Report→

ATLANTA, Nov. 8, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today released its 2020 Carbon Report, a detailed analysis of carbon storage, carbon sequestration, and emissions determining the overall net carbon impacts from its timberland operations in the U.S. South. According to the report, the company sequestered nearly 1.9 million metric tons of CO2 and realized an estimated positive net carbon impact of approximately 1.2 million metric tons of CO2 in 2020.

Brian M. Davis, CatchMark's President and CEO, said: "Sustainability and environmental stewardship have always been a key part of CatchMark's strategy. We are pleased to recognize that our timberlands in the U.S. South have realized a substantial positive net carbon impact.  We know that our timberlands, and subsequent end-uses of our timber, can play an important role in mitigating climate change – trees, through photosynthesis, absorb carbon and other pollutants, then produce pure oxygen into the atmosphere which helps counteract climate change."

The summary below defines the amount of carbon sequestered by CatchMark's forests and by harvest converted into product after incorporating the company emissions and the carbon emitted through harvest. This is defined as Net Carbon Impact.

A positive Net Carbon Impact means that forest lands and products post-harvest are removing more CO2 from the atmosphere than emissions from forest harvesting activities, helping combat climate change.

2020 Net Carbon Impact1, 2 (MtCO2e/year)

Carbon Sequestered by Forests3

858,219

Carbon Sequestered by Harvest Converted to Product3, 4

1,030,533

TOTAL Carbon Sequestered

1,888,752

Carbon Emissions Through Forest Management

(24,151)

Carbon Emitted Through Harvest5

(710,575)

Total Net Carbon Sequestered

1,154,025

The report3 includes estimates of: 

  • Total carbon stored by CatchMark's U.S. South timberlands
  • Net carbon impact of forestry and corporate activities
    • Carbon sequestered by timberlands
    • Emissions related to its business (Scope 1, 2 and 3)
    • Carbon emitted through harvest activity
  • Carbon storage within forest products (harvest converted to product)
  • Carbon storage within forest products over multiple harvest cycles

Davis added: "CatchMark is always looking for ways to improve our sustainable practices across operations to produce beneficial results for our stakeholders – stockholders, partners, employees and neighbors.  We are also moving forward with the value realization of our environmental initiatives — like carbon sequestration — capitalizing on the increasing demand to meet climate challenges and serving as a potentially viable pathway to net zero to meet climate goals that regulators, investors and consumers are asking of companies."

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 370,100 acres* of timberlands located in Alabama, Georgia and South Carolina. For more information, visit www.catchmark.com.

* As of October 15, 2021

  1. CatchMark's 2020 Carbon Report focuses on the acres owned in the U.S. South as of 12/31/2020 and does not include the any acreage in the Pacific Northwest or interests in property held through joint ventures, all of which have been sold as of the date of this report.  
  2. All values were calculated to determine metric tons of Carbon and multiplied by the factor of 3.667 (International Panel of Climate Change (2006). Guidelines for National Greenhouse Gas Inventories. Vol. 4. Agriculture, Forestry and Other Land Use) to convert to metric tons of carbon dioxide equivalents (MtCO2e)
  3. International Panel of Climate Change (2006). Guidelines for National Greenhouse Gas Inventories. Vol. 4. Agriculture, Forestry and Other Land Use) to convert to metric tons of carbon dioxide equivalents (MtCO2e)
  4. Carbon stored in forest products was calculated from harvest depletion data obtained from CTT, utilizing the i-Tree Harvest Carbon Calculator online https://harvest.itreetools.org/
  5. Calculated based on CatchMark's 382,554.55 acres of CTT forest land within the U.S., including Georgia, Alabama, Florida, and South Carolina.  Areas reported are net acres and do not include non-productive stands.

 

SOURCE CatchMark Timber Trust, Inc.

November 04, 2021

CatchMark Announces Third Quarter 2021 Results→

ATLANTA, Nov. 4, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today reported third quarter 2021 results.

Brian M. Davis, CatchMark's President and CEO, said: "CatchMark expects to exceed full-year 2021 net income guidance and is on track to generate Adjusted EBITDA at the top-end of full-year guidance. Once again, we achieved solid quarterly operating results highlighted by significantly higher year-over-year timber sales pricing for both pulpwood and sawtimber, which continues to hold premiums over market averages in our premier U.S. South timberland markets. These pricing advantages mostly compensated for lower total harvest volume year-over-year as a result of wet weather conditions in the U.S. South and recent large timberland dispositions, notably the Bandon disposition in the Pacific Northwest. Looking exclusively at the U.S. South where CatchMark focuses its operations, timber sales revenue was comparable year-over-year despite the weather-related harvest delays. Timberland sales for 2021, which were heavily weighted to this year's second quarter, have already met full-year targets and we expect to achieve the midpoint of full-year guidance.  Investment management results also are in line with targets.

Davis added: "Record quarterly net income and earnings per share resulted from a gain recognized on successful execution of the Bandon large disposition. Proceeds from the Bandon sale and recent Triple T redemption used to repay debt further improved CatchMark's capital position and our credit facilities provide ample liquidity to pursue our growth strategy. As of now, our capital recycling program, involving large dispositions, has concluded. Our attention focuses on a disciplined approach to acquisitions that will seek to increase our scale of prime timberlands in the U.S. South's premier mill markets where we already operate a robust platform. We also are looking to sustain our industry-leading Harvest EBITDA per-acre and market pricing premiums, while maintaining stable per-acre merchantable inventory. In addition, we are moving forward with the value realization of our environmental initiatives — involving carbon sequestration, mitigation bank credits, and solar energy — capitalizing on the increasing demand to meet climate challenges. Overall, the economic and market fundamentals supporting our business growth remain strong, including housing, household formation, current product pricing and outlook, and demand for wood products."

Third 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 September 30,


Change

2021


2020


Dollars, Tons or Acres


%

Results of Operations








Revenues

$

22.1



$

24.6



$

(2.5)



(10)

%

Net Income (Loss)

$

23.3



$

(4.1)



$

27.4



662

%

Adjusted EBITDA

$

9.9



$

12.4



$

(2.5)



(20)

%









Harvest Volume (tons)

494,192



580,528



(86,336)



(15)

%

Acres Sold

1,000



1,200



(200)



(17)

%

Business Segments Overview

Harvest Operations


Three Months Ended September 30,


Change

(in millions)

2021


2020


$


%

Timber Sales Revenue

$

15.9



$

18.1



$

(2.2)



(12)

%

Harvest EBITDA

$

7.1



$

8.5



$

(1.4)



(17)

%

Significant levels of new housing starts and home remodeling activity, particularly in the U.S. South, have maintained robust demand for timber products in the premier mill markets where CatchMark concentrates its operations. New sawmills in the region continue to come on-line which should increase production levels in coming quarters and support pricing for CatchMark harvests — both sawtimber and pulpwood.

Lower overall harvest volumes and revenues year-over-year resulted primarily from the Bandon large disposition, completed in early August, and weather-related issues in the U.S. South.

Strong pricing in both pulpwood and sawtimber in the U.S. South offset an 11% harvest reduction in the region, due to wet conditions, and resulted in a 1% increase in regional timber sales revenues year-over-year to $15.5 million.

U.S. South:

  • Despite the weather-related harvest reduction and recent timberland large dispositions, increased timber sales revenue in the U.S. South year-over-year reflected CatchMark registering significant increases in realized stumpage prices for both pulpwood and sawtimber.
  • CatchMark's U.S. South pulpwood and sawtimber stumpage prices were 8% and 11%, respectively, above the prior year quarter at 38% and 16% premiums to TimberMart-South south-wide averages. Negotiated delivered wood sales price increases also helped maintain stumpage values by offsetting increased logging and hauling rates due to higher fuel and labor costs.

Pacific Northwest:

  • Timber sales revenue from the Pacific Northwest decreased 86% due to the Bandon disposition. CatchMark had completed 90% of planned full-year harvests in the region at the time of the transaction.

Todd Reitz, Chief Resources Officer, said: "Staying nimble to meet changing customer needs and product mix, given challenging weather conditions, was key during the quarter. Frequent rain events put extra pressure on production and customer raw material inventories, adding pricing tension for spot market deals. Our delivered wood model gave us an edge in competition to meet logging capacity and managing costs. We are well positioned in superior markets with our prime timberlands and expect to have a solid fourth quarter, and are on course to achieve the midpoint of our full-year harvest volume guidance, as our mill customers are running very well with no mill quotas for deliveries."

Real Estate 


Three Months Ended September 30,


Change

(in millions)

2021


2020


$


%

Timberland Sales Revenue

$

2.1



$

2.4



$

(0.3)



(13)

%

Real Estate EBITDA

$

2.0



$

2.3



$

(0.3)



(13)

%

Timberland Sales:  

  • CatchMark sold 1,000 acres for $2.1 million, compared to 1,200 acres for $2.4 million in third quarter 2020.
  • Lower Real Estate EBITDA resulted from selling 17% fewer acres at a comparable price per acre.
  • Acres sold had a lower average merchantable timber stocking than the portfolio average — 32 tons per acre versus 41 tons per acre.
  • Through the third quarter, CatchMark had already exceeded the lower range of full-year guidance for timberland sales, having sold 7,100 acres for $13.1 million with transactions concentrated in the second quarter.

Large Dispositions: 

CatchMark completed the large disposition of its wholly-owned Bandon timberlands, comprising 18,100 acres in Oregon, for $100 million, or $5,536 per acre, and recognized a gain of $23.4 million. The timberlands were purchased in 2018 for $4,916 per acre. Proceeds of $95.4 million from the sale were used to pay down CatchMark's outstanding debt balance on the Multi-Draw Term Facility and Term Loan A-3.

Investment Management 


Three Months Ended September 30,


Change

(in millions)

2021


2020


$


%

Asset Management Fee Revenue

$

3.0



$

3.1



$

(0.1)



(4)

%

Investment Management EBITDA

$

3.0



$

3.7



$

(0.7)



(19)

%

On October 14, 2021, in connection with CatchMark's agreement to redeem its common equity interest in Triple T for $35 million, the Triple T asset management agreement terminated and was replaced by a transition services agreement, effective September 1, 2021. Under the transition services agreement, CatchMark will provide transition services to Triple T through March 2022 in exchange for $5 million in cash.

For the third quarter, asset management fees were comparable year-over-year and included a $0.2 million promote earned from the Dawsonville Bluffs joint venture for exceeding investment return hurdles generated by strong returns on wetland mitigation credit sales.

Investment Management EBITDA decreased by $0.7 million year-over-year primarily due to a $0.6 million decrease in Adjusted EBITDA from Dawsonville Bluffs.

CAPITAL POSITION AND SHARE REPURCHASES

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. The new revolver feature allows CatchMark to retain its borrowing capacity after using $95.4 million of Bandon disposition proceeds to repay debt.

Following the debt repayments with proceeds from the Bandon disposition and Triple T redemption, CatchMark had increased its liquidity from $180.0 million at the end of the second quarter to $278.2 million — comprised of $24.6 million in cash and $253.6 million of borrowing capacity with an extremely attractive cost of debt at 2.92% as of October 15, 2021.

No share repurchases were made under CatchMark's share repurchase program during the quarter and $13.7 million remains available under the program as of September 30, 2021.

Chief Financial Officer Ursula Godoy-Arbelaez, said: "After executing our capital recycling program and following our exit from Triple T, CatchMark has ample liquidity and is in a solid capital position to move ahead with our planned growth initiatives. Our $300 million of debt outstanding has a competitive cost under three percent with no near-term maturities and we are well within our financial covenants. Most importantly, we are well positioned to continue to cover our dividends from cash available for distribution within our historical payout ratio of 75% to 85%."

Covered Dividend

  • During the third quarter, CatchMark paid $6.5 million of distributions to stockholders, fully covered by net cash provided by operating activities. Year-to-date, $19.7 million of capital has been returned to shareholders, which was fully covered by net cash provided by operating activities.
  • On October 15, 2021, CatchMark declared a cash dividend of $0.075 per share for common stockholders of record as of November 30, 2021, payable on December 15, 2021.

Conference Call

The company will host a conference call and live webcast at 10 a.m. ET on Friday, November 5, 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 370,100 acres* of timberlands located in Alabama, Georgia and South Carolina. For more information, visit www.catchmark.com.
* As of October 15, 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, our expectations with respect to exceeding or meeting full-year 2021 guidance for net income and Adjusted EBITDA, respectively, our expectations with respect to our growth strategy, including making acquisitions and environmental initiatives, and our expectations with respect to fourth quarter harvest volumes. 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 supply of timberlands available for acquisition that meet our investment criteria may be less than we currently anticipate; (ii) we may be unsuccessful in winning bids for timberland that are sold through an auction process; (iii) we may not be able to access external sources of capital at attractive rates or at all; (iv) potential increases in interest rates could have a negative impact on our business; (v) timber prices may not increase at the rate we currently anticipate or could decline, which would negatively impact our revenues; (vi) we may not generate the harvest volumes from our timberlands that we currently anticipate; (vii) 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; (viii) 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; (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) our dividends are not guaranteed and are subject to change; (xi) the markets for carbon sequestration credits, wetlands mitigation banking and solar projects are still developing and we maybe unsuccessful in generating the revenues from environmental initiatives that we currently expect or in the timeframe anticipated; (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; and (xiv) the factors described in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the 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

September 30,


Nine Months Ended

September 30,


2021


2020


2021


2020

Revenues:








Timber sales

$

15,850



$

18,060



$

56,110



$

52,399


Timberland sales

2,122



2,430



13,111



8,882


Asset management fees

2,984



3,118



9,313



8,950


Other revenues

1,117



1,005



3,165



3,111



22,073



24,613



81,699



73,342


Expenses








Contract logging and hauling costs

6,689



7,688



24,245



21,943


Depletion

4,560



7,286



18,942



20,934


Cost of timberland sales

1,318



1,926



9,114



6,811


Forestry management expenses

1,725



1,666



5,319



5,171


General and administrative expenses

2,954



2,768



9,648



13,059


Land rent expense

80



114



213



334


Other operating expenses

1,558



1,458



4,985



4,679



18,884



22,906



72,466



72,931










Other income (expense):








Interest income

1



1



2



51


Interest expense

(3,216)



(3,563)



(9,481)



(11,590)


Gain on large dispositions

23,377





24,136



1,274



20,162



(3,562)



14,657



(10,265)










Income (loss) before unconsolidated joint ventures and income taxes

23,351



(1,855)



23,890



(9,854)










Income (loss) from unconsolidated joint ventures:








Triple T



(2,689)





(5,000)


Dawsonville Bluffs

(43)



395



620



273



(43)



(2,294)



620



(4,727)










Net income (loss)

23,308



(4,149)



24,510



(14,581)


Net income attributable to noncontrolling interest

56





59




Net income (loss) attributable to common stockholders

$

23,252



$

(4,149)



$

24,451



$

(14,581)










Weighted-average common shares outstanding - basic

48,441



48,766



48,412



48,833


Income (loss) per share - basic

$

0.48



$

(0.09)



$

0.51



$

(0.30)










Weighted-average common shares outstanding - diluted

48,637



48,766



48,613



48,833


Income (loss) per share - diluted

$

0.48



$

(0.09)



$

0.50



$

(0.30)


 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except for per-share amounts)



September 30, 2021


December 31, 2020

Assets:




Cash and cash equivalents

$

24,566



$

11,924


Accounts receivable

7,232



8,333


Prepaid expenses and other assets

6,603



5,878


Operating lease right-of-use asset

2,604



2,831


Deferred financing costs

2,752



167


Timber assets:




Timber and timberlands, net

470,441



576,680


Intangible lease assets

2



5


Assets held for sale




Investment in unconsolidated joint ventures

1,327



1,510


Total assets

$

515,527



$

607,328






Liabilities:




Accounts payable and accrued expenses

$

4,606



$

4,808


Operating lease liability

2,779



2,988


Other liabilities

20,428



32,130


Notes payable and lines of credit, net of deferred financing costs

337,835



437,490


Total liabilities

365,648



477,416






Commitments and Contingencies








Stockholders' Equity:




Class A common stock, $0.01 par value; 900,000 shares authorized; 48,899 and 48,765 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

489



488


Additional paid-in capital

729,532



728,662


Accumulated deficit and distributions

(567,656)



(572,493)


Accumulated other comprehensive loss

(14,323)



(27,893)


Total stockholders' equity

148,042



128,764


Noncontrolling Interest

1,837



1,148


Total equity

149,879



129,912


Total liabilities and equity

$

515,527



$

607,328


 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2021


2020


2021


2020

Cash Flows from Operating Activities:








Net income (loss)

$

23,308



$

(4,149)



$

24,510



$

(14,581)


Adjustments to reconcile net loss to net cash provided by operating activities:








Depletion

4,560



7,286



18,942



20,934


Basis of timberland sold, lease terminations and other

1,165



1,991



8,832



6,988


Stock-based compensation expense

766



630



2,152



3,207


Noncash interest expense

537



698



1,708



2,469


Noncash lease expense

5



8



18



28


Other amortization

35



41



120



124


Gain (loss) on large dispositions

(23,377)





(24,136)



(1,274)


(Income) loss from unconsolidated joint ventures

43



2,294



(620)



4,727


Operating distributions from unconsolidated joint ventures



273





273


Interest paid under swaps with other-than-insignificant financing element

1,461



1,412



4,306



2,904


Changes in assets and liabilities:








Accounts receivable

382



(1,565)



124



(1,092)


Prepaid expenses and other assets

(529)



(414)



(32)



(5)


Accounts payable and accrued expenses

(968)



(697)



(90)



1,959


Other liabilities

(558)



(191)



1,048



986


Net cash provided by operating activities

6,830



7,617



36,882



27,647










Cash Flows from Investing Activities:








Capital expenditures (excluding timberland acquisitions)

(603)



(566)



(3,923)



(4,332)


Investment in unconsolidated joint ventures







(5,000)


Distributions from unconsolidated joint ventures

537



(273)



803



127


Net proceeds from large dispositions

99,423





106,763



20,863


Net cash provided by (used in) investing activities

99,357



(839)



103,643



11,658










Cash Flows from Financing Activities:








Repayments of notes payable

(95,410)





(102,705)



(20,850)


Proceeds from notes payable







5,000


Financing costs paid

(342)



(15)



(349)



(1,019)


Interest paid under swaps with other-than-insignificant financing element

(1,461)



(1,412)



(4,306)



(2,904)


Dividends/distributions paid

(6,556)



(6,537)



(19,684)



(19,726)


Repurchases of common shares

(75)



(77)



(233)



(2,207)


Repurchase of common shares for minimum tax withholding

(68)



(53)



(606)



(1,052)


Net cash used in financing activities

(103,912)



(8,094)



(127,883)



(42,758)


Net change in cash and cash equivalents

2,275



(1,316)



12,642



(3,453)


Cash and cash equivalents, beginning of period

22,291



9,350



11,924



11,487


Cash and cash equivalents, end of period

$

24,566



$

8,034



$

24,566



$

8,034


 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

SELECTED DATA (UNAUDITED)



2021


2020


Q1


Q2


Q3


YTD


Q1


Q2


Q3


YTD

Consolidated
















Timber Sales Volume (tons, '000)













Pulpwood

273



300



286



859



324



354



349



1,028


Sawtimber (1)

252



228



208



688



271



214



231



715


Total

525



528



494



1,547



595



568



580



1,743


















Harvest Mix
















Pulpwood

52

%


57

%


58

%


56

%


54

%


62

%


60

%


59

%

Sawtimber (1)

48

%


43

%


42

%


44

%


46

%


38

%


40

%


41

%

















Period-end Acres ('000)
















Fee

385



375



356



356



393



392



391



391


Lease

15



15



14



14



22



22



22



22


Wholly-owned total

400



390



370



370



415



414



413



413


Joint venture interest (5)

1,081



1,080



774



774



1,092



1,092



1,085



1,085


Total

1,481



1,470



1,144



1,144



1,507



1,506



1,498



1,498


















U.S. South
















Timber Sales Volume (tons, '000)













Pulpwood

271



297



286



854



320



352



346



1,018


Sawtimber (1)

205



194



204



603



250



195



206



651


Total

476



491



490



1,457



570



547



552



1,669


















Harvest Mix
















Pulpwood

57

%


61

%


58

%


59

%


56

%


64

%


63

%


61

%

Sawtimber (1)

43

%


39

%


42

%


41

%


44

%


36

%


37

%


39

%

Delivered % as of total volume

74

%


77

%


70

%


74

%


63

%


61

%


63

%


62

%

Stumpage % as of total volume

26

%


23

%


30

%


26

%


37

%


39

%


37

%


38

%

















Net Timber Sales Price ($ per ton) (2)













Pulpwood

$

14



$

15



$

14



$

14



$

13



$

12



$

13



$

13


Sawtimber (1)

$

25



$

26



$

25



$

25



$

23



$

23



$

22



$

23


















Timberland Sales
















Gross sales ('000)

$

3,357



$

7,632



$

2,122



$

13,111



$

4,779



$

1,673



$

2,430



$

8,882


Acres sold

1,800



4,300



1,000



7,100



3,000



1,100



1,200



5,200


% of fee acres

0.5

%


1.2

%


0.3

%


1.9

%


0.7

%


0.3

%


0.3

%


1.3

%

Price per acre (3)

$

1,923



$

1,743



$

2,029



$

1,828



$

1,627



$

1,564



$

2,047



$

1,710


















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



3



10


Sawtimber (1)

47



34



4



85



21



18



25



64


Total

49



37



4



90



25



21



28



74


















Harvest Mix
















Pulpwood

4

%


8

%


12

%


6

%


18

%


13

%


12

%


14

%

Sawtimber

96

%


92

%


88

%


94

%


82

%


87

%


88

%


86

%

Delivered % as of total volume

100

%


100

%


100

%


100

%


84

%


100

%


100

%


95

%

Stumpage % as of total volume

%


%


%


%


16

%


%


%


5

%

















Delivered Timber Sales Price ($ per ton) (2) (6)













Pulpwood

$

30



$

30



$

33



$

31



$

31



$

29



$

28



$

30


Sawtimber

$

104



$

106



$

99



$

104



$

91



$

84



$

105



$

94


















Large Dispositions (4)
















Gross sales ('000)

$



$



$

100,000



$

100,000



$



$



$



$


Acres sold





18,100



18,100










Price per acre (7)

$



$



$

5,536



$

5,536



$



$



$



$


Gain ('000)

$



$



$

23,377



$

23,377



$



$



$



$




(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 September 30, 2021 and 2020, we retained 5,000 tons and 8,000 tons of merchantable inventory, with a sawtimber mix of 47% and pulpwood mix of 100%, respectively, for 2021 and 2020. For the nine months ended September 30, 2021 and 2020, we retained 64,000 tons and 123,000 tons of merchantable inventory, with a sawtimber mix of 37% and 48%, 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 nine months ended September 30, 2020.


 


CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)

(in thousands)



Three Months Ended

September 30,


Nine Months Ended

September 30,

(in thousands)

2021


2020


2021


2020

Net income (loss)

$

23,308



$

(4,149)



$

24,510



$

(14,581)


Add:








Depletion

4,560



7,286



18,942



20,934


Interest expense (2)

2,679



2,865



7,773



9,121


Amortization (2)

577



747



1,846



2,621


Depletion, amortization, basis of timberland, mitigation credits sold included in loss from unconsolidated joint venture (3)

10



140



113



140


Basis of timberland sold, lease terminations and other (4)

1,165



1,991



8,832



6,988


Stock-based compensation expense

766



630



2,152



3,207


(Gain) on large dispositions (5)

(23,377)





(24,136)



(1,274)


HLBV loss from unconsolidated joint venture (6)



2,689





5,000


Post-employment benefits (7)

11



10



34



2,307


Other (8)

165



190



312



260


Adjusted EBITDA (1)

$

9,864



$

12,399



$

40,378



$

34,723




(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

September 30,


Nine Months Ended

September 30,


2021


2020


2021


2020

Timber sales

$

15,850



$

18,060



$

56,110



$

52,399


Other revenue

1,117



1,005



3,165



3,111


(-)    Contract logging and hauling costs

(6,689)



(7,688)



(24,245)



(21,943)


(-)    Forestry management expenses

(1,725)



(1,666)



(5,319)



(5,171)


(-)    Land rent expense

(80)



(114)



(213)



(334)


(-)    Other operating expenses

(1,558)



(1,458)



(4,985)



(4,679)


(+)   Stock-based compensation

142



110



392



307


(+/-)  Other

20



253



466



807


Harvest EBITDA

7,077



8,502



25,371



24,497










Timberland sales

2,122



2,430



13,111



8,882


(-)    Cost of timberland sales

(1,318)



(1,926)



(9,114)



(6,811)


(+)   Basis of timberland sold

1,170



1,768



8,454



6,271


Real Estate EBITDA

1,974



2,272



12,451



8,342










Asset management fees

2,984



3,118



9,313



8,950


Unconsolidated Dawsonville Bluffs joint venture EBITDA

(33)



535



733



413


Investment Management EBITDA

2,951



3,653



10,046



9,363










Total Operating EBITDA

12,002



14,427



47,868



42,202










(-)     General and administrative expenses

(2,954)



(2,768)



(9,648)



(13,059)


(+)    Stock-based compensation

624



520



1,760



2,900


(+)    Interest income

1



1



2



51


(+)    Post-employment benefits

11



10



34



2,307


(+/-)  Other

180



209



362



322


Corporate EBITDA

(2,138)



(2,028)



(7,490)



(7,479)










Adjusted EBITDA (1)

$

9,864



$

12,399



$

40,378



$

34,723




(1) 

See definition of Adjusted EBITDA on page 12.

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CASH AVAILABLE FOR DISTRIBUTION (UNAUDITED)

(in thousands, except for per share data)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2021


2020


2021


2020

Cash Provided by Operating Activities

$

6,830



$

7,617



$

36,882



$

27,647


Capital expenditures (excluding timberland acquisitions)

(603)



(566)



(3,923)



(4,332)


Working capital change

1,673



2,867



(1,050)



(1,848)


Distributions from unconsolidated joint ventures

537



(273)



803



127


Post-employment benefits

11



10



34



2,307


Interest paid under swaps with other-than-insignificant financing element

(1,461)



(1,412)



(4,306)



(2,904)


Other

165



190



312



260


Cash Available for Distribution (1)

$

7,152



$

8,433



$

28,752



$

21,257










Adjusted EBITDA (2)

$

9,864



$

12,399



$

40,378



$

34,723


Interest paid

(2,679)



(2,865)



(7,773)



(9,121)


Capital expenditures (excluding timberland acquisitions)

(603)



(566)



(3,923)



(4,332)


Distributions from unconsolidated joint ventures

537





803



400


Adjusted EBITDA from unconsolidated joint ventures

33



(535)



(733)



(413)


Cash Available for Distributions (1)

$

7,152



$

8,433



$

28,752



$

21,257










Dividends / distributions paid

$

6,556



$

6,537



$

19,684



$

19,726










Weighted-average shares outstanding - basic

48,441



48,766



48,412



48,833










Dividends per Share

$

0.135



$

0.135



$

0.405



$

0.405




(1)

Cash Available for Distribution (CAD) is a non-GAAP financial measure. It is calculated as cash provided by operating activities, adjusted for capital expenditures (excluding timberland acquisitions), working capital changes, cash distributions from unconsolidated joint ventures and certain cash expenditures that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions, transactions, joint ventures or new business activities.

(2) 

See definition of Adjusted EBITDA on page 12.

 

SOURCE CatchMark Timber Trust, Inc.

October 15, 2021

CatchMark Exits Triple T Joint Venture→

ATLANTA, Oct. 15, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today announced that it reached a definitive agreement with its joint venture partners in TexMark Timber Treasury, L.P. (Triple T) on the redemption of its common equity interest in Triple T for $35 million in cash and closed the transaction upon signing. CatchMark also entered into an agreement pursuant to which it will continue to provide certain asset management services to the joint venture through the first quarter of 2022 in exchange for an additional $5 million services fee, which was also paid to CatchMark at the time of closing. The $40 million of proceeds will be used to pay down existing debt.

CatchMark Chief Executive Officer Brian M. Davis said: "One of our primary objectives over the last year and a half has been maximizing CatchMark's exit value from Triple T. This transaction was the best course to support long-term growth in light of CatchMark's position in the Triple T capital structure and the required per acre price increases needed to satisfy our partners' accruing preferred return. It is also another important step in delivering on our strategy of simplifying our business model to focus on our core portfolio, strengthening our balance sheet, and positioning the company for future growth."

Impact to Annualized Dividend Rate

CatchMark expects to pay a new annualized dividend rate of $0.30 per common share, beginning with the fourth quarter of 2021. This adjustment reflects the loss of asset management fee revenue from the Triple T joint venture. The company has declared a cash dividend of $0.075 per share for its common stockholders of record as of November 30, 2021, payable on December 15, 2021.

Douglas D. Rubenstein, Chairman of the Board for CatchMark said: "We believe the right-sizing of CatchMark's annualized dividend rate is a prudent decision that will enable the company to prioritize investing in the growth of its core portfolio which will ultimately enhance earnings growth and net asset value over time. In addition, the anticipated annualized dividend rate for 2022 should enable us to maintain our historical payout ratio of 75% to 85% of cash available for distribution."

Affirmation of 2021 Adjusted EBITDA Guidance

Given the continued strong performance from the execution of its core strategy, the company expects 2021 Adjusted EBITDA to be at the top-end of its previously announced guidance range.

Long-Term Growth Strategy Update

Davis continued: "Looking ahead, we see strong growth prospects for CatchMark. We continue to build a robust pipeline for acquisitions to grow our portfolio of prime timberlands in superior mill markets in the U.S. South, the nation's premier timber basket, and to further strengthen our industry-leading harvest EBITDA per acre while maintaining stable merchantable inventory per acre. We are focused on identifying and executing attractive acquisition opportunities that include a high allocation of pine plantations with strong site indices as well as above average operability. We will execute on acquisitions that either enhance our near-term timber revenue with high merchantable stocking levels with an older average age or complement our long-term portfolio objectives that will balance portfolio age class distribution and productivity."

CatchMark sees additional value creation opportunities from the following environmental initiatives that could represent up to 20% of future cash available for distribution:

  • Carbon sequestration
  • Wetlands mitigation banking
  • Solar projects

Consistent with its strategy since inception, the company also intends to maximize long-term returns by achieving an optimum balance among biological timber growth, generation of current cash flow from harvesting, and responsible environmental stewardship. Beginning in 2022, CatchMark expects to:

  • Deliver annual harvest volume in the range of 1.6 million tons to 1.8 million tons, excluding acquisitions. These harvest volumes are consistent with historical productivity on a per acre basis.
  • Expand annual timberland sales targets, in light of unprecedented retail demand, from about 2% to approximately 3% of its fee timberland acreage, which could increase total land sales revenue to approximately $20 million next year compared to the $13 million to $15 million targeted for 2021.

Note: Cash available for distribution and Adjusted EBITDA are non-GAAP financial measures. See discussion below. 

Conference Call

The company will host a conference call and live webcast at 10:00 a.m. ET on Friday, October 15, 2021, to discuss this transaction and business updates. 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 372,100 acres* of timberlands located in Alabama, Georgia, and South Carolina. For more information, visit www.catchmark.com.
* As of October 14, 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," "should," "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, our expectations about future growth, acquisition strategies, future dividend rates and payout ratios, harvest plans, land sales, cash flows and our affirmations of certain 2021 guidance. Risks and uncertainties that could cause our actual results to differ from these forward-looking statements include, but are not limited to, that (i) the supply of timberlands available for acquisition that meet our investment criteria may be less than we currently anticipate; (ii) we may be unsuccessful in winning bids for timberland that are sold through an auction process; (iii) we may not be able to access external sources of capital at attractive rates or at all; (iv) potential increases in interest rates could have a negative impact on our business; (v) timber prices may not increase at the rate we currently anticipate or could decline, which would negatively impact our revenues; (vi) we may not generate the harvest volumes from our timberlands that we currently anticipate; (vii) 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; (viii) 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; (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) our dividends are not guaranteed and are subject to change; (xi) the markets for carbon sequestration credits, wetlands mitigation banking and solar projects are still developing and we maybe unsuccessful in generating the revenues from environmental initiatives that we currently expect or in the timeframe anticipated; (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; and (xiv) the factors described in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the 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.

Non-GAAP Financial Measures

Cash Available for Distribution 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 its 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. 

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 management believes 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, 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. 

 

SOURCE CatchMark Timber Trust, Inc.

VIEW ALL PRESS RELEASES

100%

ALL OUR FEE TIMBERLANDS ARE CERTIFIED SUSTAINABLE BY THE SUSTAINABLE FOREST INITIATIVE®1

 


4:1

FOR EVERY TREE WE
HARVEST, WE PLANT
4 SEEDLINGS2


10M

WE PLANTED MORE THAN 10 MILLION TREES IN 2020


57M

SINCE 2013, WE’VE PLANTED OVER 57 MILLION TREES


WHERE DOES OUR HARVEST SHOW UP? 

1. Excludes property subject to a contract for sale.
2. Excludes trees harvested in thinning operations.