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.

7

WE OWN TIMBERLANDS IN SEVEN STATES IN THE U.S. SOUTH AND PACIFIC NORTHWEST

1.5M

WE HOLD INTERESTS IN
1.5 MILLION ACRES

15.9M

OUR 412,500 WHOLLY-OWNED ACREAGE HAS 15.9 MILLION TONS OF MERCHANTABLE INVENTORY

41.1M

OUR 1.1 MILLION JOINT-VENTURE ACREAGE HAS 41.1 MILLION TONS OF MERCHANTABLE INVENTORY

* as of September 30, 2020

quote-mark

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.

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

LATEST NEWS

November 13, 2020

CatchMark Joins Leading Conservation, Environmental and other Forestry Organizations to Establish Common Ground on the Role of Private Working Forests as a Natural Climate Solution→

ATLANTA – November 13, 2020 – CatchMark Timber Trust, Inc. (NYSE: CTT) announced today that the firm has joined with leading conservation and environmental organizations as well as other forestry businesses in “a common vision” to address climate change and ensure sustainable, science-based practices in forest management.

The CEO Principles are a shared vision for increasing the contribution of forests and forest products to climate mitigation from leaders of the environmental, conservation and forest business communities. The signing CEOs recognize that private working forests and forest products can play an important role in mitigating climate change through thoughtful policy, private sector engagement, and investment in rural communities.

Brian M. Davis, CatchMark's Chief Executive Officer, said: “Promoting forest stewardship and sustainability through state of the art management practices is not only integral to CatchMark’s operations and essential for our ongoing business success, but also is critical to the success of our industry and the entire forest sector.”

Click here for related press release
Click here CEO Principles

About CatchMark
CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Florida, Georgia, North Carolina, Oregon, South Carolina and Texas. For more information, visit www.catchmark.com. 
* As of September 30, 2020

November 05, 2020

CatchMark CEO Brian Davis to Present at Nareit's REITworld: 2020 Virtual Annual Conference→

ATLANTA, Nov. 5, 2020 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) announced today that Brian M. Davis, Chief Executive Officer, will be providing a company overview at Nareit's REITworld: 2020 Virtual Annual Conference on Tuesday, November 17 at 8:00 am ET.

The presentation will be available on the Investor Relations section of CatchMark's website at www.catchmark.com.  Access to the conference webcast is available through REITworld registration here.

About CatchMark

CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Florida, Georgia, North Carolina, Oregon, South Carolina and Texas. For more information, visit www.catchmark.com.

* As of September 30, 2020

SOURCE CatchMark Timber Trust, Inc.

October 29, 2020

CatchMark Reports Third Quarter 2020 Results and Declares Dividend→

ATLANTA, Oct. 29, 2020 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today reported third quarter 2020 results, announcing it remains on track to meet its full-year operating plan after effectively managing through weather-related issues, wildfire disruptions, and COVID-19 impacts during the quarter. The company also declared a cash dividend of $0.135 per share for its common stockholders of record as of November 30, 2020, payable on December 15, 2020.

Brian M. Davis, CatchMark's Chief Executive Officer, said: "We are encouraged by the evident momentum in homebuilding recovery driven by the combination of favorable demographics, low interest rates, and low historical housing supply.  These trends bode well for product price improvements in 2021 and beyond to meet rising demand for timber products. Despite 2020's weather and pandemic related challenges, we delivered consistent cash flow during the third quarter and stayed on course to achieve our full-year operating objectives. At the same time, we continue to realize the benefits of our established and proven business strategy, focusing on prime properties in high demand mill markets. As a result, we continue to attain premium pricing for our timber sales significantly above industry averages. In addition, we remain on course to meet our timberland sales goals for the year."

The following table summarizes the current quarter and comparable prior year period results:

FINANCIAL HIGHLIGHTS












Change

(in millions except for tons and acres)

Three Months Ended
September 30, 2020


Three Months Ended
 September 30, 2019


Dollars, Tons or Acres


%

Results of Operations








Revenues

$

24.6



$

26.4



$          (1.8)



(7)

%

Net Loss

$

(4.1)



$

(20.6)



$         16.4



80

%

Adjusted EBITDA

$

12.4



$

16.5



$          (4.1)



(25)

%









Harvest Volume (tons)

580,528



633,731



(53,203)



(8)

%

Acres Sold

1,200



1,100



100



8

%

 

Business Segments Overview

Harvest Operations 






Change

(in millions)

Three Months Ended
September 30, 2020


Three Months Ended
 September 30, 2019


$


%

Timber Sales Revenue

$

18.1



$

19.7



$

(1.6)



(8)

%

Harvest EBITDA

$

8.5



$

9.4



$

(0.9)



(9)

%

 

The homebuilding recovery and strong demand for pulp-related products — continuing through the pandemic — have supported consistent harvest volume flow in CatchMark's mill markets. Disruptions to operations from hurricanes and fires deferred some revenues to the fourth quarter, but are not expected to result in lost revenues since company timberlands avoided any direct damage.

U.S. South Activity:  As expected, third quarter 2020 harvests were lower compared to the 2019 period when CatchMark had increased activity to catch up from deferred harvests earlier that year. In addition, wet conditions, concentrated in the Carolinas, delayed some harvests during the quarter. As a result, third quarter harvest volumes decreased by 9% and together with lower stumpage prices resulted in a 14% decline in timber sales revenue year over year.

  • Pricing Premiums Maintained: Stumpage prices improved from the second quarter and maintained significant premiums over South-wide averages tracked by TimberMart-South, resulting from CatchMark micro-market advantages and the quality of harvests from its prime timberlands. Stumpage prices were lower year over year — 6% for pulpwood and 7% for sawtimber — trending with much larger 11% and 13% decreases in South-wide averages. Sawtimber stumpage prices decreased as compared to prior year due to a heavier mix of chip-n-saw and smaller diameter sawtimber as a result of shifting market demands.

Pacific Northwest Activity: Pacific Northwest harvest volumes increased 17% year over year to 27,990 tons from 23,957 tons in the three months ended September 30, 2019.

  • Wildfire Impacts Contained: CatchMark's timberlands avoided any damage from rampant region-wide wildfires and its delivered sawtimber prices increased 26% due to strong demand fundamentals fueled by increased housing starts, lack of finished lumber in the supply chain and reduced mill inventories caused by disruptions at other suppliers. Shutdowns of harvesting activities ordered by local governments interrupted operations temporarily towards the end of the quarter.

Plan Outlook: Storm and fire related impacts during the quarter did not alter CatchMark's outlook for meeting full-year 2020 harvest plans. Any third quarter deferrals are expected to be made up by increased fourth quarter volumes.

Todd P. Reitz, CatchMark's Chief Resources Officer, said: "During the quarter, our delivered wood program provided strong production opportunities in our superior Georgia micro-markets. Sales under our fiber supply agreements remained stable and consistent, helping ensure steady cash flows and offsetting delayed production in the Carolinas and Pacific Northwest due to weather and fire disruptions. Record high lumber pricing helped increase log prices nearly 30% in the Pacific Northwest driven by housing-related fundamentals. These positive market factors were evident in the U.S. South to a lesser extent as disciplined mill operators maintained tight finished-product inventories in case of pandemic related market reversals. But we are optimistic that increased homebuilding activity and heightened demand should prove beneficial in further boosting log prices and revenues in coming quarters."

Real Estate  






Change

(in millions)

Three Months Ended
September 30, 2020


Three Months Ended
 September 30, 2019


$


%

Timberland Sales Revenue

$

2.4



$

2.3



$

0.2



7

%

Real Estate EBITDA

$

2.3



$

2.0



$

0.2



12

%

 

Higher Timberland Sales: Timberland sales revenue increased by $0.2 million year over year due to selling more acres in the current quarter.

  • CatchMark sold 1,200 acres for $2.4 million compared to 1,100 acres for $2.3 million in third quarter 2019.
  • The lower per-acre sales price — $2,047 compared to $2,166 — resulted from lower average merchantable timber stocking levels.

Acquisitions and Large Dispositions: No acquisitions or large dispositions were transacted during the quarter.

Plan Outlook: Timberland sales remain on plan for full-year 2020.

Investment Management 






Change

(in millions)

Three Months Ended
September 30, 2020


Three Months Ended
 September 30, 2019


$


%

Asset Management Fee Revenue

$

3.1



$

3.4



$

(0.3)



(9)

%

Investment Management EBITDA

$

3.7



$

7.3



$

(3.6)



(50)

%

 

Results reflect the wind-down of the Dawsonville Bluffs joint venture, which had provided significant earnings and incentive-based promotes during third quarter 2019, partially offset by recently increased asset management fees from the Triple T joint venture. These increased fees resulted from the amendment to the joint venture's asset management agreement completed during second quarter 2020.

  • Triple T harvest operations, benefiting from the renegotiated wood supply agreement with Georgia-Pacific, remained on plan during the quarter and generated positive cash flow from operations.

Davis said: "In the wake of the Georgia-Pacific agreement, CatchMark is particularly focused on its initiatives to re-capitalize the joint venture and maximize returns for the company and our partners in due course." 

Capital Position and Share Repurchases

  • Liquidity: As of September 30, 2020, CatchMark had $150.9 million of borrowing capacity remaining under its credit facilities — $115.9 million under the multi-draw term facility and $35.0 million under the revolving credit facility.
  • Share Repurchases: No share repurchases occurred under the share repurchase program during the quarter. Approximately $13.7 million remains in the program for future repurchases as of September 30, 2020.

Ursula Godoy-Arbelaez, CatchMark's Chief Financial Officer, said: "We continue to benefit from a strong capital position highlighted by ample liquidity and low cost of capital with no near-term refinancing or maturity risk. As a result, we are well-positioned for future growth as direct acquisition and joint venture investment opportunities present themselves."

Conference Call

The company will host a conference call and live webcast at 12 p.m. ET on Friday, October 30, 2020 to discuss these results. Investors may listen to the conference call by dialing 1-888-347-1165 for U.S/Canada and 1-412-902-4276 for international callers.  Participants should ask to be joined into the CatchMark call. Access to the live webcast is available at www.catchmark.com or here.  A replay of this webcast will be archived on the company's website immediately after the call. 

About CatchMark
CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Florida, Georgia, North Carolina, Oregon, South Carolina and Texas. For more information, visit www.catchmark.com.

* As of September 30, 2020

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Forward-looking statements in this press release include, but are not limited to, statements about meeting our full-year operating plan and result objectives, including with respect to harvest volumes and timberland sales, the momentum in the homebuilding recovery and its impact on product price improvements in 2021 as well as our revenues, our expectation to deliver deferred harvest volume and receive deferred revenues in the fourth quarter of 2020, maximizing returns from the Triple T joint venture for us and our partners, and having ample liquidity and being well-positioned for future growth through direct acquisitions and joint ventures. Risks and uncertainties that could cause our actual results to differ from these forward-looking statements include, but are not limited to, that (i) we may not generate the harvest volumes from our timberlands that we currently anticipate; (ii) the demand for our timber may not increase at the rate we currently anticipate or could decline due to changes in general economic and business conditions in the geographic regions where our timberlands are located, including as a result of the COVID-19 pandemic and the measures taken as a response thereto; (iii) a downturn in the real estate market, including decreases in demand and valuations, may adversely impact our ability to generate income and cash flow from sales of higher-and-better use properties; (iv) timber prices could decline, which would negatively impact our revenues; (v) the supply of timberlands available for acquisition that meet our investment criteria may be less than we currently anticipate; (vi) we may be unsuccessful in winning bids for timberland that are sold through an auction process; (vii) we may not be able sell large dispositions of timberland in capital recycling transactions at prices that are attractive to us or at all; (viii) we may not be able to access external sources of capital at attractive rates or at all; (ix) potential increases in interest rates could have a negative impact on our business; (x) our share repurchase program may not be successful in improving stockholder value over the long-term; (xi) our joint venture strategy may not enable us to access non-dilutive capital and enhance our ability to make acquisitions; (xii) we may not be successful in effectively managing the Triple T joint venture and the anticipated benefits of the joint venture may not be realized, including that our asset management fee could be deferred or decreased, we may not earn an incentive-based promote and our investment in the joint venture may lose value; and (xiii) the factors described in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, Part II, Item 1A. Risk Factors of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and our other filings with the Securities and Exchange Commission. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update our forward-looking statements, except as required by law. 

 

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except for per-share amounts)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2020


2019


2020


2019

Revenues:








Timber sales

$

18,060



$

19,706



$

52,399



$

52,530


Timberland sales

2,430



2,264



8,882



12,578


Asset management fees

3,118



3,436



8,950



9,119


Other revenues

1,005



974



3,111



3,386



24,613



26,380



73,342



77,613


Expenses








Contract logging and hauling costs

7,688



8,269



21,943



22,778


Depletion

7,286



8,235



20,934



19,533


Cost of timberland sales

1,926



2,081



6,811



10,562


Forestry management expenses

1,666



1,656



5,171



4,982


General and administrative expenses

2,768



2,984



13,059



9,550


Land rent expense

114



125



334



400


Other operating expenses

1,458



1,341



4,679



4,614



22,906



24,691



72,931



72,419










Other income (expense):








Interest income

1



80



51



142


Interest expense

(3,563)



(4,472)



(11,590)



(13,803)


Gain on large dispositions



7,197



1,274



7,961



(3,562)



2,805



(10,265)



(5,700)










Income (loss) before unconsolidated joint ventures

(1,855)



4,494



(9,854)



(506)










Income (loss) from unconsolidated joint ventures:








Triple T

(2,689)



(25,712)



(5,000)



(81,800)


Dawsonville Bluffs

395



661



273



789



(2,294)



(25,051)



(4,727)



(81,011)










Net loss

$

(4,149)



$

(20,557)



$

(14,581)



$

(81,517)










Weighted-average shares outstanding - basic and diluted

48,766



49,008



48,833



49,049










Net loss per-share - basic and diluted

$

(0.09)



$

(0.42)



$

(0.30)



$

(1.66)


 

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except for per-share amounts)



September 30, 2020


December 31, 2019

Assets:




Cash and cash equivalents

$

8,034



$

11,487


Accounts receivable

8,090



7,998


Prepaid expenses and other assets

6,435



5,459


Operating lease right-of-use asset

2,903



3,120


Deferred financing costs

189



246


Timber assets:




Timber and timberlands, net

590,297



633,581


Intangible lease assets

6



9


        Investment in unconsolidated joint ventures

1,838



1,965


Total assets

$

617,792



$

663,865






Liabilities:




Accounts payable and accrued expenses

$

5,923



$

3,580


Operating lease liability

3,054



3,242


Other liabilities

36,086



10,853


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

437,236



452,987


Total liabilities

482,299



470,662






Commitments and Contingencies








Stockholders' Equity:




Class A common stock, $0.01 par value; 900,000 shares authorized; 48,765 and 49,008 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively

488



490


Additional paid-in capital

727,767



729,274


Accumulated deficit and distributions

(563,041)



(528,847)


Accumulated other comprehensive loss

(31,204)



(8,276)


Total stockholders' equity

134,010



192,641


Noncontrolling interests

1,483



562


Total equity

135,493



193,203


Total liabilities and equity

$

617,792



$

663,865


 

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)



Three Months Ended
September 30,


Nine Months Ended
September 30,


2020


2019


2020


2019

Cash Flows from Operating Activities:








Net loss

$

(4,149)



$

(20,557)



$

(14,581)



$

(81,517)


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








Depletion

7,286



8,235



20,934



19,533


Basis of timberland sold, lease terminations and other

1,991



1,854



6,988



10,329


Stock-based compensation expense

630



803



3,207



1,952


Noncash interest expense

698



252



2,469



816


Other amortization

49



47



152



170


Gain on large dispositions



(7,197)



(1,274)



(7,961)


Loss from unconsolidated joint ventures

2,294



25,051



4,727



81,011


Operating distributions from unconsolidated joint ventures

273



661



273



789


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

1,412





2,904




Changes in assets and liabilities:








Accounts receivable

(1,565)



1,972



(1,092)



2,007


Prepaid expenses and other assets

(414)



(420)



(5)



221


Accounts payable and accrued expenses

(697)



47



1,959



138


Other liabilities

(191)



560



986



1,025


Net cash provided by operating activities

7,617



11,308



27,647



28,513










Cash Flows from Investing Activities:








Capital expenditures (excluding timberland acquisitions)

(566)



(834)



(4,332)



(3,031)


Investment in unconsolidated joint venture





(5,000)




Distributions from unconsolidated joint ventures

(273)



3,172



127



4,019


Net proceeds from large dispositions



19,840



20,863



25,151


Net cash provided by (used in) investing activities

(839)



22,178



11,658



26,139










Cash Flows from Financing Activities:








Repayments of notes payable



(20,064)



(20,850)



(20,064)


Proceeds from notes payable





5,000




Financing costs paid

(15)



(15)



(1,019)



(48)


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

(1,412)





(2,904)




Dividends/distributions paid

(6,537)



(6,555)



(19,726)



(19,711)


Repurchases of common shares

(77)



(595)



(2,207)



(3,004)


Repurchase of common shares for minimum tax withholding

(53)





(1,052)



(365)


Net cash used in financing activities

(8,094)



(27,229)



(42,758)



(43,192)


Net change in cash and cash equivalents

(1,316)



6,257



(3,453)



11,460


Cash and cash equivalents, beginning of period

9,350



10,817



11,487



5,614


Cash and cash equivalents, end of period

$

8,034



$

17,074



$

8,034



$

17,074


 

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
SELECTED DATA (UNAUDITED)






2020


2019


Q1


Q2


Q3


YTD


Q1


Q2


Q3


YTD

Consolidated
















Timber Sales Volume (tons, '000)













Pulpwood

324


354


349


1,028


294


304


376


974

Sawtimber (1)

271


214


231


715


193


191


258


641

Total

595


568


580


1,743


487


495


634


1,615

















Harvest Mix
















Pulpwood

54%


62%


60%


59%


60%


61%


59%


60%

Sawtimber (1)

46%


38%


40%


41%


40%


39%


41%


40%

















Period-end Acres ('000)
















Fee

393


392


391


391


432


424


413


413

Lease

22


22


22


22


27


26


26


26

Wholly-owned total

415


414


413


413


459


450


439


439

Joint venture interest (5)

1,092


1,092


1,085


1,085


1,104


1,100


1,094


1,094

Total

1,507


1,506


1,498


1,498


1,563


1,550


1,533


1,533

















U.S. South
















Timber Sales Volume (tons, '000)















Pulpwood

320


352


346


1,018


294


303


373


970

Sawtimber (1)

250


195


206


651


188


177


237


602

Total

570


547


552


1,669


482


480


610


1,572

















Harvest Mix
















Pulpwood

56%


64%


63%


61%


61%


63%


61%


62%

Sawtimber (1)

44%


36%


37%


39%


39%


37%


39%


38%

Delivered % as of total volume

63%


61%


63%


62%


79%


74%


64%


72%

Stumpage % as of total volume

37%


39%


37%


38%


21%


26%


36%


28%

















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













Pulpwood

$13


$12


$13


$13


$15


$14


$14


$14

Sawtimber (1)

$23


$23


$22


$23


$24


$24


$24


$24

















Timberland Sales
















Gross sales ('000)

$4,779


$1,673


$2,430


$8,882


$2,090


$8,224


$2,264


$12,578

Acres sold

3,000


1,100


1,200


5,200


900


4,000


1,100


6,000

% of fee acres

0.7%


0.3%


0.3%


1.3%


0.2%


0.9%


0.2%


1.4%

Price per acre (3)

$1,627


$1,564


$2,047


$1,710


$2,236


$2,072


$2,166


$2,114

















Large Dispositions (4)
















Gross sales ('000)

$21,250


$—


$—


$21,250


$—


$5,475


$19,920


$25,395

Acres sold

14,400




14,400



3,600


10,800


14,400

Price per acre (3)

$1,474


$—


$—


$1,474


$—


$1,500


$1,845


$1,758

Gain ('000)

$1,274


$—


$—


$1,274


$—


$764


$7,197


$7,961

















Pacific Northwest
















Timber Sales Volume (tons,'000)
















Pulpwood

4


3


3


10



1


3


5

Sawtimber (1)

21


18


25


64


5


13


21


38

Total

25


21


28


74


5


14


24


43

















Harvest Mix
















Pulpwood

18%


13%


12%


14%


—%


9%


13%


11%

Sawtimber

82%


87%


88%


86%


100%


91%


87%


89%

Delivered % as of total volume

84%


100%


100%


95%


100%


87%


100%


96%

Stumpage % as of total volume

16%


—%


—%


5%


—%


13%


—%


4%

















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













Pulpwood

$31


$29


$28


$30


$40


$37


$30


$33

Sawtimber

$91


$84


$105


$94


$101


$94


$83


$89




(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 quarter ended September 30, 2020, we retained 8,200 tons of merchantable inventory with a book basis of $86,100. No timber reservations were retained for the quarter ended September 30, 2019. For the nine months ended September 30, 2020 and 2019, we retained 123,400 tons and 5,900 tons of merchantable inventory, with a book basis of $981,200 and $69,000, 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.

 

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (UNAUDITED)
(in thousands)



Three Months Ended
September 30,


Nine Months Ended
September 30,

(in thousands)

2020


2019


2020


2019

Net loss

$

(4,149)



$

(20,557)



$

(14,581)



$

(81,517)


Add:








Depletion

7,286



8,235



20,934



19,533


Interest expense (2)

2,865



4,220



9,121



12,987


Amortization (2)

747



299



2,621



986


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

140



3,152



140



3,547


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

1,991



1,854



6,988



10,329


Stock-based compensation expense

630



803



3,207



1,952


Gain on large dispositions (5)



(7,197)



(1,274)



(7,961)


HLBV loss from unconsolidated joint venture (6)

2,689



25,712



5,000



81,800


Post-employment benefits (7)

10





2,307




Other (8)

190



1



260



115


Adjusted EBITDA (1)

$

12,399



$

16,522



$

34,723



$

41,771




(1)

Adjusted EBITDA is a non-GAAP financial measure of operating performance. EBITDA is defined by the SEC as earnings before interest, taxes, depreciation and amortization; however, we have excluded certain other expenses which we believe are not indicative of the ongoing operating results of our timberland portfolio, and we refer to this measure as Adjusted EBITDA. As such, our Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Due to the significant amount of timber assets subject to depletion, significant income (losses) from unconsolidated joint ventures based on hypothetical liquidation book value, or HLBV, and the significant amount of financing subject to interest and amortization expense, management considers Adjusted EBITDA to be an important measure of our financial performance. By providing this non-GAAP financial measure, together with the reconciliation above, we believe we are enhancing investors' understanding of our business and our ongoing results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered in isolation or as an alternative to, or substitute for net income, cash flow from operations, or other financial statement data presented in accordance with GAAP in our consolidated financial statements as indicators of our operating performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.



(2)

For the purpose of the above reconciliation, amortization includes amortization of deferred financing costs, amortization of operating lease assets and liabilities, amortization of intangible lease assets, and amortization of mainline road costs, which are included in either interest expense, land rent expense, or other operating expenses in the accompanying consolidated statements of operations. Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses.



(3)

Reflects our share of depletion, amortization, and basis of timberland and mitigation credits sold of the unconsolidated Dawsonville Bluffs joint venture.



(4)

Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses.



(5)

Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land's timber production value. Such dispositions are infrequent in nature, are not part of core operations, and would cause material variances in comparative results if not reported separately.



(6)

Reflects HLBV (income) losses from the Triple T joint venture, which is determined based on 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.



(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,


2020


2019


2020


2019

Timber sales

$

18,060



$

19,706



$

52,399



$

52,530


Other revenue

1,005



974



3,111



3,386


(-)    Contract logging and hauling costs

(7,688)



(8,269)



(21,943)



(22,778)


(-)    Forestry management expenses

(1,666)



(1,656)



(5,171)



(4,982)


(-)    Land rent expense

(114)



(125)



(334)



(400)


(-)    Other operating expenses

(1,458)



(1,341)



(4,679)



(4,614)


(+)   Stock-based compensation

110



74



307



189


(+/-)  Other

253



27



807



604


Harvest EBITDA

8,502



9,390



24,497



23,935










Timberland sales

2,430



2,264



8,882



12,578


(-)    Cost of timberland sales

(1,926)



(2,081)



(6,811)



(10,562)


(+)   Basis of timberland sold

1,768



1,853



6,271



9,805


Real estate EBITDA

2,272



2,036



8,342



11,821










Asset management fees

3,118



3,436



8,950



9,119


Unconsolidated Dawsonville Bluffs joint venture EBITDA

535



3,814



413



4,336


Investment management EBITDA

3,653



7,250



9,363



13,455










Total operating EBITDA

14,427



18,676



42,202



49,211










(-)     General and administrative expenses

(2,768)



(2,984)



(13,059)



(9,550)


(+)    Stock-based compensation

520



729



2,900



1,763


(+)    Interest income

1



80



51



142


(+)    Post-employment benefits

10





2,307




(+/-)  Other

209



21



322



205


Corporate EBITDA

(2,028)



(2,154)



(7,479)



(7,440)










Adjusted EBITDA

$

12,399



$

16,522



$

34,723



$

41,771


 

 

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


2020


2019


2020


2019

Cash Provided by Operating Activities

$

7,617



$

11,308



$

27,647



$

28,513


Capital expenditures (excluding timberland acquisitions)

(566)



(834)



(4,332)



(3,031)


Working capital change

2,867



(2,159)



(1,848)



(3,391)


Distributions from unconsolidated joint ventures

(273)



3,172



127



4,019


Post-employment benefits

10





2,307




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

(1,412)





(2,904)




Other

190



1



260



115


Cash Available for Distribution (1)

$

8,433



$

11,488



$

21,257



$

26,225










Adjusted EBITDA

$

12,399



$

16,522



$

34,723



$

41,771


Interest paid

(2,865)



(4,220)



(9,121)



(12,987)


Capital expenditures (excluding timberland acquisitions)

(566)



(834)



(4,332)



(3,031)


Distributions from unconsolidated joint ventures



3,834



400



4,808


Adjusted EBITDA from unconsolidated joint ventures

(535)



(3,814)



(413)



(4,336)


Cash Available for Distributions (1)

$

8,433



$

11,488



$

21,257



$

26,225










Dividends / distributions paid

$

6,537



$

6,555



$

19,726



$

19,711










Weighted-average shares outstanding, end of period

48,766



49,008



48,833



49,049










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.

 

 

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


8M

WE PLANTED MORE THAN 8 MILLION TREES IN 2019


47M

SINCE 2013, WE’VE PLANTED OVER 47 MILLION TREES


WHERE DOES OUR HARVEST SHOW UP? 

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