CATCHMARK’S STRATEGIES PRODUCE STABLE, VISIBLE, HIGH-QUALITY CASH FLOW.
SINCE OUR LISTING ON THE NYSE IN 2013, WE HAVE SIGNIFICANTLY EXPANDED AND IMPROVED THE QUALITY OF OUR TIMBERLAND ASSETS AND ENHANCED PRODUCTIVITY THROUGH SUSTAINABLE FOREST MANAGEMENT PRACTICES.
6
WE OWN TIMBERLANDS IN SIX STATES IN THE U.S. SOUTH AND PACIFIC NORTHWEST
1.5M
WE HOLD INTERESTS IN
1.5 MILLION ACRES
16.0M
OUR 400,200 WHOLLY-OWNED ACREAGE HAS 16.0 MILLION TONS OF MERCHANTABLE INVENTORY
43.3M
OUR 1.1 MILLION JOINT-VENTURE ACREAGE HAS 43.3 MILLION TONS OF MERCHANTABLE INVENTORY
* as of March 31, 2021
Our timberlands are located by strategic design in high-demand mill markets so we can 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.
HIGH-DEMAND MILL MARKETS
We invest in prime timberlands located in leading mill markets with favorable current and long-term fundamentals.
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.
WEBCASTS
MAY 7, 2021 10AM ET
PRESENTATIONS & REPORTS
LATEST NEWS
May 06, 2021
CatchMark Reports First Quarter 2021 Results, Declares Dividend→
ATLANTA, May 6, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today reported first quarter 2021 results. The company also declared a cash dividend of $0.135 per share for its common stockholders of record as of May 28, 2021, payable on June 15, 2021.
Brian M. Davis, CatchMark's Chief Executive Officer, said: "Low interest rates, strong housing market demand and increased home remodeling together with the significant ramp up in mill production after 2020 pandemic-related slowdowns, resulted in higher timber prices during the quarter. CatchMark's prime timberlands in superior mill markets continued to outperform, capturing pricing for pulpwood and sawtimber in the U.S. South significantly above TimberMart-South averages as well as a significant sawtimber price increase in the Pacific Northwest. Investment management results improved due to contributions from Dawsonville Bluffs and last year's renegotiated Triple T asset management agreement. Per-acre timberland sales pricing increased significantly, and we are on track to complete a substantial number of sales in the second quarter. As planned, harvest volumes during the quarter were lower year-over-year. Harvest volumes remain on track to meet full-year guidance, as we maintain consistent annual productivity on a per-acre basis with the potential to sustain current strong timber prices."
FIRST QUARTER 2021 RESULTS
The following table summarizes the current quarter and comparable prior year period results:
FINANCIAL HIGHLIGHTS | ||||||||||||||
(in millions except for tons and acres) | Three Months Ended March 31, | Change | ||||||||||||
2021 | 2020 | Dollars, Tons or Acres | % | |||||||||||
Results of Operations | ||||||||||||||
Revenues | $ | 27.7 | $ | 27.0 | $ | 0.7 | 3 | % | ||||||
Net Loss | $ | (0.6) | $ | (4.2) | $ | 3.6 | 86 | % | ||||||
Adjusted EBITDA | $ | 12.9 | $ | 12.9 | $ | — | — | % | ||||||
Harvest Volume (tons) | 524,762 | 594,895 | (70,133) | (12) | % | |||||||||
Acres Sold | 1,800 | 3,000 | (1,200) | (40) | % | |||||||||
Business Segments Overview
Harvest Operations
Three Months Ended March 31, | Change | |||||||||||||
(in millions) | 2021 | 2020 | $ | % | ||||||||||
Timber Sales Revenue | $ | 20.1 | $ | 18.2 | $ | 1.9 | 11 | % | ||||||
Harvest EBITDA | $ | 8.9 | $ | 8.6 | $ | 0.3 | 4 | % | ||||||
CatchMark continued to benefit from its prime timberland portfolio in strong micro-markets across the U.S. South and Pacific Northwest.
- The company realized timber sales prices at significant premiums to market averages, which escalated during the quarter due to strong demand for timber products generated by accelerated housing starts, lack of finished lumber in the supply chain, and reduced mill inventories.
- Total timber sales revenue increased year-over-year, driven by a $3.0 million increase in the Pacific Northwest offset by a $1.1 million decrease in the U.S. South, the result of a 17% reduction in regional harvest volume, as planned due to recent timberland sales and capital recycling dispositions.
U.S. South:
- CatchMark realized stumpage prices for pulpwood and sawtimber 8% and 9% higher, respectively, compared to first quarter 2020, outpacing 3% and 4% increases in South-wide average prices tracked by TimberMart-South.
- Pulpwood and sawtimber stumpage prices registered significant 57% and 27% premiums over TimberMart-South South-wide averages.
Pacific Northwest:
- Timber sales revenue increased to $4.9 million, a 161% increase from first quarter 2020 results.
- Harvest volume increased 96% from capitalizing on favorable market conditions and the company's delivered wood sales model. Sawtimber mix and delivered sales as a percentage of volume increased 14% and 16%, respectively, year over year, and delivered sawtimber price increased 15% due to strong demand fundamentals.
Todd Reitz, Chief Resources Officer, said: "As strong fourth quarter 2020 housing fundamentals carried over into the first quarter, CatchMark continues to benefit from prime timberlands holdings in leading mill markets as well as our delivered wood model supplemented by opportunistic stumpage sales. Robust housing demand continued to drive strong sawmill production and new mill consumption helped generate increased delivered rates within our superior micro-markets, which in part resulted in a 9% increase in Harvest EBTDA per acre year-over-year."
Real Estate
Three Months Ended March 31, | Change | |||||||||||||
(in millions) | 2021 | 2020 | $ | % | ||||||||||
Timberland Sales Revenue | $ | 3.4 | $ | 4.8 | $ | (1.4) | (30) | % | ||||||
Real Estate EBITDA | $ | 3.1 | $ | 4.5 | $ | (1.4) | (30) | % | ||||||
Timberland Sales:
- CatchMark sold 1,200 fewer acres during first quarter 2021 — 1,800 acres versus 3,000 in the prior year quarter, but at an 18% higher average price per acre — $1,923 in first quarter 2021 versus $1,627 in first quarter 2020.
- The improved per-acre sales price resulted in part from higher average merchantable timber stocking levels and generated an improved margin — 36% in first quarter 2021 versus 28% in first quarter 2020.
- The acres sold during the quarter had a substantially lower average merchantable timber stocking than the company portfolio average — 21 tons per acre versus 41 tons per acre.
Acquisitions and Large Dispositions: No acquisitions or large dispositions occurred during the first quarter.
Investment Management
Three Months Ended March 31, | Change | |||||||||||||
(in millions) | 2021 | 2020 | $ | % | ||||||||||
Asset Management Fee Revenue | $ | 3.1 | $ | 3.0 | $ | 0.1 | 5 | % | ||||||
Investment Management EBITDA | $ | 3.8 | $ | 2.9 | $ | 0.9 | 32 | % | ||||||
- CatchMark recognized $0.6 million of income and $0.7 million of Investment Management EBITDA from the Dawsonville Bluffs joint venture, which capitalized on strong market demand for mitigation credits.
- Asset management fees increased as a result of last year's amendment to the Triple T joint venture's asset management agreement, following the successful renegotiation of its wood supply agreement with Georgia Pacific.
- CatchMark continues to pursue recapitalization opportunities for Triple T in the wake of the renegotiated Georgia-Pacific wood supply agreement and enhanced silviculture practices that have increased stocking per acre on these prime timberlands since acquisition.
CAPITAL POSITION AND SHARE REPURCHASES
Ample Liquidity:
- CatchMark continued to maintain ample liquidity for growth initiatives and other capital allocation priorities, including direct acquisitions and joint venture investments.
- As of March 31, 2021, the company had $150.9 million of borrowing capacity available under its credit facilities, consisting of $115.9 million under the Multi-Draw Term Facility and $35.0 million under the Revolving Credit Facility.
- The company's active debt and interest rate management strategy continues to provide attractive borrowing costs, staggered long-term maturities and a favorable mix of fixed-to-floating rate debt.
Covered Quarterly Dividend: Stockholders received a total of $6.6 million in dividend distributions, which were fully covered by net cash provided by operating activities.
Share Repurchases: CatchMark did not repurchase any shares of common stock under its share repurchase program during the quarter and had $13.7 million remaining in the program for future repurchases as of March 31, 2021.
Ursula Godoy-Arbelaez, CatchMark's Chief Financial Officer, said: "In maintaining CatchMark's strong capital position, we continue to evaluate capital recycling opportunities to generate proceeds for funding desirable timberland investments, paying down outstanding debt, repurchasing shares of our common stock, and other capital allocation priorities."
Conference Call
The company will host a conference call and live webcast at 10 a.m. ET on Friday, May 7, 2021 to discuss these results. Investors may listen to the conference call by dialing 1-888-347-1165 for U.S/Canada and 1-412-902-4276 for international callers. Participants should ask to be joined into the CatchMark call. Access to the live webcast is available at www.catchmark.com or here. A replay of this webcast will be archived on the company's website immediately after the call.
About CatchMark
CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Florida, Georgia, Oregon, South Carolina and Texas. For more information, visit www.catchmark.com.
* As of March 31, 2021
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Forward-looking statements in this press release include, but are not limited to, that we expect harvest volumes to remain on track to meet full-year guidance, as we maintain consistent annual productivity on a per-acre basis with the potential to sustain current strong timber prices. Risks and uncertainties that could cause our actual results to differ from these forward-looking statements include, but are not limited to, that (i) we may not generate the harvest volumes from our timberlands that we currently anticipate; (ii) the demand for our timber may not increase at the rate we currently anticipate or could decline due to changes in general economic and business conditions in the geographic regions where our timberlands are located, including as a result of the COVID-19 pandemic and the measures taken as a response thereto; (iii) a downturn in the real estate market, including decreases in demand and valuations, may adversely impact our ability to generate income and cash flow from sales of higher-and-better use properties; (iv) timber prices may not increase at the rate we currently anticipate or could decline, which would negatively impact our revenues; (v) the supply of timberlands available for acquisition that meet our investment criteria may be less than we currently anticipate; (vi) we may be unsuccessful in winning bids for timberland that are sold through an auction process; (vii) we may not be able to make large dispositions of timberland in capital recycling transactions at prices that are attractive to us or at all; (viii) we may not be able to access external sources of capital at attractive rates or at all; (ix) potential increases in interest rates could have a negative impact on our business; (x) our share repurchase program may not be successful in improving stockholder value over the long-term; (xi) our joint venture strategy may not enable us to access non-dilutive capital and enhance our ability to make acquisitions; (xii) we may not be successful in effectively managing the Triple T joint venture and the anticipated benefits of the joint venture may not be realized, including that our asset management fee could be deferred or decreased, we may not earn an incentive-based promote and our investment in the joint venture may lose value; and (xiii) the factors described in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and our other filings with the Securities and Exchange Commission. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update our forward-looking statements, except as required by law.
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
(in thousands, except for per-share amounts) | |||||||
Three Months Ended | |||||||
2021 | 2020 | ||||||
Revenues: | |||||||
Timber sales | $ | 20,149 | $ | 18,166 | |||
Timberland sales | 3,357 | 4,779 | |||||
Asset management fees | 3,118 | 2,975 | |||||
Other revenues | 1,062 | 1,052 | |||||
27,686 | 26,972 | ||||||
Expenses | |||||||
Contract logging and hauling costs | 8,731 | 7,277 | |||||
Depletion | 7,725 | 6,941 | |||||
Cost of timberland sales | 2,155 | 3,422 | |||||
Forestry management expenses | 1,887 | 1,834 | |||||
General and administrative expenses | 3,600 | 7,267 | |||||
Land rent expense | 113 | 124 | |||||
Other operating expenses | 1,713 | 1,636 | |||||
25,924 | 28,501 | ||||||
Other income (expense): | |||||||
Interest income | 1 | 46 | |||||
Interest expense | (2,928) | (3,957) | |||||
Gain on large dispositions | — | 1,279 | |||||
(2,927) | (2,632) | ||||||
Loss before unconsolidated joint ventures and income taxes | (1,165) | (4,161) | |||||
Income (loss) from unconsolidated joint ventures: | |||||||
Triple T | — | — | |||||
Dawsonville Bluffs | 614 | (88) | |||||
614 | (88) | ||||||
Net loss | (551) | (4,249) | |||||
Net loss attributable to noncontrolling interest | (1) | — | |||||
Net loss attributable to common stockholders | $ | (550) | $ | (4,249) | |||
Weighted-average common shares outstanding - basic and diluted | 48,796 | 48,989 | |||||
Net loss per common share - basic and diluted | $ | (0.01) | $ | (0.09) | |||
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(in thousands, except for per-share amounts) | |||||||
March 31, 2021 | December 31, 2020 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 12,656 | $ | 11,924 | |||
Accounts receivable | 6,867 | 8,333 | |||||
Prepaid expenses and other assets | 6,646 | 5,878 | |||||
Operating lease right-of-use asset | 2,755 | 2,831 | |||||
Deferred financing costs | 147 | 167 | |||||
Timber assets: | |||||||
Timber and timberlands, net | 569,258 | 576,680 | |||||
Intangible lease assets | 4 | 5 | |||||
Investment in unconsolidated joint ventures | 2,124 | 1,510 | |||||
Total assets | $ | 600,457 | $ | 607,328 | |||
Liabilities: | |||||||
Accounts payable and accrued expenses | $ | 5,387 | $ | 4,808 | |||
Operating lease liability | 2,919 | 2,988 | |||||
Other liabilities | 15,787 | 32,130 | |||||
Notes payable and lines of credit, net of deferred financing costs | 437,754 | 437,490 | |||||
Total liabilities | 461,847 | 477,416 | |||||
Commitments and Contingencies | — | — | |||||
Stockholders' Equity: | |||||||
Class A common stock, $0.01 par value; 900,000 shares authorized; 48,904 and 48,765 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 489 | 488 | |||||
Additional paid-in capital | 728,616 | 728,662 | |||||
Accumulated deficit and distributions | (579,580) | (572,493) | |||||
Accumulated other comprehensive loss | (12,238) | (27,893) | |||||
Total stockholders' equity | 137,287 | 128,764 | |||||
Noncontrolling Interest | 1,323 | 1,148 | |||||
Total equity | 138,610 | 129,912 | |||||
Total liabilities and equity | $ | 600,457 | $ | 607,328 | |||
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
2021 | 2020 | ||||||
Cash Flows from Operating Activities: | |||||||
Net loss | $ | (551) | $ | (4,249) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depletion | 7,725 | 6,941 | |||||
Basis of timberland sold, lease terminations and other | 1,966 | 3,276 | |||||
Stock-based compensation expense | 619 | 1,872 | |||||
Noncash interest expense | 585 | 707 | |||||
Noncash lease expense | 5 | 10 | |||||
Other amortization | 43 | 41 | |||||
Gain on large dispositions | — | (1,279) | |||||
(Income) loss from unconsolidated joint ventures | (614) | 88 | |||||
Operating distributions from unconsolidated joint ventures | — | — | |||||
Interest paid under swaps with other-than-insignificant financing element | 1,407 | 340 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 489 | 1,619 | |||||
Prepaid expenses and other assets | 215 | 359 | |||||
Accounts payable and accrued expenses | 658 | 2,576 | |||||
Other liabilities | (955) | (1,042) | |||||
Net cash provided by operating activities | 11,592 | 11,259 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures (excluding timberland acquisitions) | (2,317) | (2,712) | |||||
Distributions from unconsolidated joint ventures | — | 400 | |||||
Net proceeds from large dispositions | — | 20,863 | |||||
Net cash provided by (used in) investing activities | (2,317) | 18,551 | |||||
Cash Flows from Financing Activities: | |||||||
Repayments of notes payable | — | (20,850) | |||||
Financing costs paid | (4) | (30) | |||||
Interest paid under swaps with other-than-insignificant financing element | (1,407) | (340) | |||||
Dividends/distributions paid | (6,565) | (6,648) | |||||
Repurchases of common shares | (78) | (2,052) | |||||
Repurchase of common shares for minimum tax withholding | (489) | (965) | |||||
Net cash used in financing activities | (8,543) | (30,885) | |||||
Net change in cash and cash equivalents | 732 | (1,075) | |||||
Cash and cash equivalents, beginning of period | 11,924 | 11,487 | |||||
Cash and cash equivalents, end of period | $ | 12,656 | $ | 10,412 | |||
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES | |||||||
SELECTED DATA (UNAUDITED) | |||||||
2021 | 2020 | ||||||
Q1 | Q1 | ||||||
Consolidated | |||||||
Timber Sales Volume (tons, '000) | |||||||
Pulpwood | 273 | 324 | |||||
Sawtimber (1) | 252 | 271 | |||||
Total | 525 | 595 | |||||
Harvest Mix | |||||||
Pulpwood | 52 | % | 54 | % | |||
Sawtimber (1) | 48 | % | 46 | % | |||
Period-end Acres ('000) | |||||||
Fee | 385 | 393 | |||||
Lease | 15 | 22 | |||||
Wholly-owned total | 400 | 415 | |||||
Joint venture interest (5) | 1,081 | 1,092 | |||||
Total | 1,481 | 1,507 | |||||
U.S. South | |||||||
Timber Sales Volume (tons, '000) | |||||||
Pulpwood | 271 | 320 | |||||
Sawtimber (1) | 205 | 250 | |||||
Total | 476 | 570 | |||||
Harvest Mix | |||||||
Pulpwood | 57 | % | 56 | % | |||
Sawtimber (1) | 43 | % | 44 | % | |||
Delivered % as of total volume | 74 | % | 63 | % | |||
Stumpage % as of total volume | 26 | % | 37 | % | |||
Net Timber Sales Price ($ per ton) (2) | |||||||
Pulpwood | $ | 14 | $ | 13 | |||
Sawtimber (1) | $ | 25 | $ | 23 | |||
Timberland Sales | |||||||
Gross sales ('000) | $ | 3,357 | $ | 4,779 | |||
Acres sold | 1,800 | 3,000 | |||||
% of fee acres | 0.5 | % | 0.7 | % | |||
Price per acre (3) | $ | 1,923 | $ | 1,627 | |||
Large Dispositions (4) | |||||||
Gross sales ('000) | $ | — | $ | 21,250 | |||
Acres sold | — | 14,400 | |||||
Price per acre (7) | $ | — | $ | 1,474 | |||
Gain ('000) | $ | — | $ | 1,279 | |||
Pacific Northwest | |||||||
Timber Sales Volume (tons,'000) | |||||||
Pulpwood | 2 | 4 | |||||
Sawtimber (1) | 47 | 21 | |||||
Total | 49 | 25 | |||||
Harvest Mix | |||||||
Pulpwood | 4 | % | 18 | % | |||
Sawtimber | 96 | % | 82 | % | |||
Delivered % as of total volume | 100 | % | 84 | % | |||
Stumpage % as of total volume | — | % | 16 | % | |||
Delivered Timber Sales Price ($ per ton) (2) (6) | |||||||
Pulpwood | $ | 30 | $ | 31 | |||
Sawtimber | $ | 104 | $ | 91 | |||
(1) | Includes chip-n-saw and sawtimber. |
(2) | Prices per ton are rounded to the nearest dollar. |
(3) | Excludes value of timber reservations. For the three months ended March 31, 2021 and 2020, we retained 9,800 tons and 90,400 tons of merchantable inventory, with a sawtimber mix of 56% and 49%, respectively, for 2021 and 2020. |
(4) | Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land's timber production value. Such dispositions are infrequent in nature, are not part of core operations, and would cause material variances in comparative results if not reported separately. |
(5) | Represents properties owned by Triple T joint venture in which CatchMark owns a common partnership interest and has contributed 22.0% of total equity contributions; and Dawsonville Bluffs, LLC, a joint venture in which CatchMark owns a 50% membership interest. CatchMark serves as the manager for both of these joint ventures. |
(6) | Delivered timber sales price includes contract logging and hauling costs. |
(7) | Excludes value of timber reservations, which retained 56,300 tons of merchantable inventory, with a sawtimber mix of 55% for the three months ended March 31, 2020. |
.
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES | |||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (UNAUDITED) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
(in thousands) | 2021 | 2020 | |||||
Net loss | $ | (551) | $ | (4,249) | |||
Add: | |||||||
Depletion | 7,725 | 6,941 | |||||
Interest expense (2) | 2,342 | 3,250 | |||||
Amortization (2) | 633 | 758 | |||||
Depletion, amortization, basis of timberland, mitigation credits sold included in loss from unconsolidated joint venture (3) | 88 | — | |||||
Basis of timberland sold, lease terminations and other (4) | 1,966 | 3,276 | |||||
Stock-based compensation expense | 619 | 1,872 | |||||
Gain on large dispositions (5) | — | (1,279) | |||||
Post-employment benefits (6) | 16 | 2,286 | |||||
Other (7) | 99 | 34 | |||||
Adjusted EBITDA (1) | $ | 12,937 | $ | 12,889 | |||
(1) | Adjusted EBITDA is a non-GAAP financial measure of operating performance. EBITDA is defined by the SEC as earnings before interest, taxes, depreciation and amortization; however, we have excluded certain other expenses which we believe are not indicative of the ongoing operating results of our timberland portfolio, and we refer to this measure as Adjusted EBITDA. As such, our Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Due to the significant amount of timber assets subject to depletion, significant income (losses) from unconsolidated joint ventures based on hypothetical liquidation book value, or HLBV, and the significant amount of financing subject to interest and amortization expense, management considers Adjusted EBITDA to be an important measure of our financial performance. By providing this non-GAAP financial measure, together with the reconciliation above, we believe we are enhancing investors' understanding of our business and our ongoing results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered in isolation or as an alternative to, or substitute for net income, cash flow from operations, or other financial statement data presented in accordance with GAAP in our consolidated financial statements as indicators of our operating performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. |
(2) | For the purpose of the above reconciliation, amortization includes amortization of deferred financing costs, amortization of operating lease assets and liabilities, amortization of intangible lease assets, and amortization of mainline road costs, which are included in either interest expense, land rent expense, or other operating expenses in the accompanying consolidated statements of operations. Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses. |
(3) | Reflects our share of depletion, amortization, and basis of timberland and mitigation credits sold of the unconsolidated Dawsonville Bluffs joint venture. |
(4) | Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses. |
(5) | Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land's timber production value. Such dispositions are infrequent in nature, are not part of core operations, and would cause material variances in comparative results if not reported separately. |
(6) | Reflects one-time, non-recurring post-employment benefits associated with the retirement of our former CEO, including severance pay, payroll taxes, professional fees, and accrued dividend equivalents. |
(7) | Includes certain cash expenses paid, or reimbursement received, that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions, transactions, joint ventures or new business initiatives. |
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES | |||||||
ADJUSTED EBITDA BY SEGMENT (UNAUDITED) | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
2021 | 2020 | ||||||
Timber sales | $ | 20,149 | $ | 18,166 | |||
Other revenue | 1,062 | 1,052 | |||||
(-) Contract logging and hauling costs | (8,731) | (7,277) | |||||
(-) Forestry management expenses | (1,887) | (1,834) | |||||
(-) Land rent expense | (113) | (124) | |||||
(-) Other operating expenses | (1,713) | (1,636) | |||||
(+) Stock-based compensation | 107 | 115 | |||||
(+/-) Other | 53 | 145 | |||||
Harvest EBITDA | 8,927 | 8,607 | |||||
Timberland sales | 3,357 | 4,779 | |||||
(-) Cost of timberland sales | (2,155) | (3,422) | |||||
(+) Basis of timberland sold | 1,942 | 3,161 | |||||
Real Estate EBITDA | 3,144 | 4,518 | |||||
Asset management fees | 3,118 | 2,975 | |||||
Unconsolidated Dawsonville Bluffs joint venture EBITDA | 702 | (88) | |||||
Investment Management EBITDA | 3,820 | 2,887 | |||||
Total Operating EBITDA | 15,891 | 16,012 | |||||
(-) General and administrative expenses | (3,600) | (7,267) | |||||
(+) Stock-based compensation | 512 | 1,757 | |||||
(+) Interest income | — | 46 | |||||
(+) Post-employment benefits | 16 | 2,286 | |||||
(+/-) Other | 118 | 55 | |||||
Corporate EBITDA | (2,954) | (3,123) | |||||
Adjusted EBITDA | $ | 12,937 | $ | 12,889 | |||
CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES | |||||||
CASH AVAILABLE FOR DISTRIBUTION (UNAUDITED) | |||||||
(in thousands, except for per share data) | |||||||
Three Months Ended | |||||||
2021 | 2020 | ||||||
Cash Provided by Operating Activities | $ | 11,592 | $ | 11,259 | |||
Capital expenditures (excluding timberland acquisitions) | (2,317) | (2,712) | |||||
Working capital change | (407) | (3,512) | |||||
Distributions from unconsolidated joint ventures | — | 400 | |||||
Post-employment benefits | 16 | 2,286 | |||||
Interest paid under swaps with other-than-insignificant financing element | (1,407) | (340) | |||||
Other | 99 | 34 | |||||
Cash Available for Distribution (1) | $ | 7,576 | $ | 7,415 | |||
Adjusted EBITDA | $ | 12,937 | $ | 12,889 | |||
Interest paid | (2,342) | (3,250) | |||||
Capital expenditures (excluding timberland acquisitions) | (2,317) | (2,712) | |||||
Distributions from unconsolidated joint ventures | — | 400 | |||||
Adjusted EBITDA from unconsolidated joint ventures | (702) | 88 | |||||
Cash Available for Distributions (1) | $ | 7,576 | $ | 7,415 | |||
Dividends / distributions paid | $ | 6,565 | $ | 6,648 | |||
Weighted-average shares outstanding, end of period | 48,796 | 48,989 | |||||
Dividends per Share | $ | 0.135 | $ | 0.135 | |||
(1) | Cash Available for Distribution (CAD) is a non-GAAP financial measure. It is calculated as cash provided by operating activities, adjusted for capital expenditures (excluding timberland acquisitions), working capital changes, cash distributions from unconsolidated joint ventures and certain cash expenditures that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions, transactions, joint ventures or new business activities. |
SOURCE CatchMark Timber Trust, Inc.
April 08, 2021
CatchMark Scheduled to Release First Quarter 2021 Earnings on May 6, 2021→
ATLANTA, April 8, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) will release its first quarter 2021 earnings on Thursday, May 6, 2021, following the market close. The company will host a conference call and live webcast at 10 a.m. ET on Friday, May 7, 2021 to discuss these results.
Investors may listen to the conference call by dialing 1-888-347-1165 for U.S/Canada and 1-412-902-4276 for international callers. Participants should ask to be joined into the CatchMark call. Access to the live webcast is available at www.catchmark.com or here. A replay of this webcast will be archived on the company's website immediately after the call.
About CatchMark
CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Florida, Georgia, Oregon, South Carolina and Texas. For more information, visit www.catchmark.com.
* As of December 31, 2020
SOURCE CatchMark Timber Trust, Inc.
March 22, 2021
Georgia State University Names CatchMark's Ursula Godoy-Arbelaez to Prestigious 40 Under 40 List→
ATLANTA, March 22, 2021 /PRNewswire/ -- Ursula Godoy-Arbelaez—Senior Vice President, Chief Financial Officer and Treasurer of CatchMark Timber Trust, Inc. (NYSE: CTT), has been recognized in the 40 Under 40, Class of 2020, by the Georgia State University Alumni Association. The program recognizes the "most influential and innovative graduates who embody the values of Georgia State."
Godoy-Arbelaez attended Georgia State undergraduate and business schools, earning a B.B.A. cum laude in Accounting in 2001 and an MBA in 2008. She has worked at CatchMark, a leading timber REIT, since its listing on the NYSE in 2013, becoming CFO in 2020. She is responsible for CatchMark's financial management, risk management, and strategic planning. Her focus is on establishing and implementing company goals and objectives, monitoring and improving business performance, and promoting and overseeing control systems and metrics to protect company assets and ensure accurate financial reporting.
Douglas Rubenstein, Chairman of the Board for CatchMark, said: "Ursula has been a key member of CatchMark's management team, which is focused on assembling the highest-quality timberlands in high-demand mill markets and employing rigorous management practices to deliver sustainable harvest yields for the benefit of our shareholders. All of us at the company value her leadership skills, tenacity, and integrity in managing all aspects of the company's finances and strategic planning."
"Those recognized on the 40 Under 40 list are remarkable doers, creators, innovators, leaders and entrepreneurs — individuals making their mark in every imaginable field," said Christina Million, associate vice president of alumni relations at Georgia State.
About CatchMark
CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Florida, Georgia, Oregon, South Carolina and Texas. For more information, visit www.catchmark.com.
* As of December 31, 2020
SOURCE CatchMark Timber Trust, Inc.
100% COMMITTED TO SUSTAINABILITY
Conscientious forest management serves investors by promoting a healthier environment and enhancing the potential market value of timberland assets. We’re proud that 100% of our timberlands are certified as a sustainable forest according to the high standards of the Sustainable Forestry Initiative® (SFI).
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.