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.

4

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

1.15M

WE HOLD INTERESTS IN
1.15 MILLION ACRES

14.5M

OUR 371,500 WHOLLY-OWNED ACREAGE HAS 14.5 MILLION TONS OF MERCHANTABLE INVENTORY

776,500

OUR 776,500 JOINT-VENTURE ACREAGE HAS 30.4 MILLION TONS OF MERCHANTABLE INVENTORY

* as of September 1, 2021

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

September 01, 2021

CatchMark's Triple T Joint Venture Completes Sale of 300,000 Acres of Prime East Texas Timberlands→

ATLANTA, Sept. 1, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today announced that TexMark Timber Treasury, L.P. ("Triple T") has completed the sale of 300,000 acres of prime East Texas timberlands for $497 million in cash, or approximately $1,656 per acre, to a client of Hancock Natural Resource Group, Inc., a Manulife Investment Management company. The sold property represents a portion of the 1.1 million acres in East Texas owned by Triple T. CatchMark serves as the asset manager and general partner of the Triple T joint venture on behalf of a consortium of institutional investors.

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

* As of June 30, 2021

 

SOURCE CatchMark Timber Trust, Inc.

August 11, 2021

CatchMark Completes $100 Million Sale of Oregon Timberlands to Roseburg Resources Co.→

ATLANTA, Aug. 11, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today announced that it had completed the sale of 18,063 acres of prime Oregon timberlands – known as the Bandon property – for $100 million in cash, or approximately $5,536 per acre, to Roseburg Resources Co. The property had been purchased in August 2018 for $88.8 million or $4,916 per acre.

The company recognized a gain on the sale of approximately $23 million.  CatchMark increased its guidance for full-year net income to a range of $13 to $17 million to reflect the sale but has not made any other adjustments to its full year 2021 guidance. CatchMark had harvested approximately 80% of its targeted full-year 2021 volume for the Bandon property by transaction close.

CatchMark Chief Executive Officer Brian M. Davis said: "Coming off an exceptionally strong second quarter when we generated record revenues, cash from operations, and Adjusted EBITDA and our second highest quarter of net income, this disposition demonstrates our ability to execute accretive capital recycling transactions and further strengthens CatchMark's capital position. It also allows us to concentrate our activities in the U.S. South where we have a very robust operations platform and see the greatest opportunity for future growth. Most of the sale proceeds will be used to pay down existing debt. Our simple strategy remains focused on investing in prime timberlands in the nation's leading mill markets, employing delivered wood sales as well as opportunistic stumpage sales to provide predictable and stable cash flow, help cover our dividend, and create long-term shareholder value."

AFM Real Estate acted as CatchMark's broker for the transaction.

About CatchMark
CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 1.5 million acres* of timberlands located in Alabama, Georgia, Oregon, South Carolina and Texas. For more information, visit www.catchmark.com.
* As of June 30, 2021

About Roseburg
Founded in 1936, Roseburg Forest Products is a privately-owned company and one of North America's leading producers of particleboard, medium density fiberboard and thermally fused laminates. Roseburg also manufactures softwood and hardwood plywood, lumber, LVL and I-joists. The company owns and sustainably manages more than 600,000 acres of timberland in Oregon, North Carolina and Virginia, as well as an export wood chip terminal facility in Coos Bay, Ore. Roseburg products are shipped throughout North America and the Pacific Rim. To learn more about the company please visit www.roseburg.com.

About American Forest Management
American Forest Management offers a suite of services including land and habitat management, timberland inventory and sales, environmental practices and technical services. AFM Real Estate, as subsidiary, offers real estate acquisition and disposition services.  Headquartered in Charlotte, N.C., American Forest Management serves clients across the country with 50+ regional offices and oversees more than 6 million acres of land. For over fifty years, it has been the industry's leading company, coordinating land transactions valued at over $3.2 billion.

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 see the greatest opportunity for future growth in the U.S. South, that most of the sale proceeds will be used to pay down existing debt, and that our strategy remains focused on investing in prime timberlands in the nation's leading mill markets, employing delivered wood sales as well as opportunistic stumpage sales to provide predictable and stable cash flow, help cover our dividend, and create long-term shareholder value. 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 and therefore it may take us longer to reinvest the proceeds from the transaction 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 make large dispositions of timberland in capital recycling transactions at prices that are attractive to us or at all; (iv) we may not be able to access external sources of capital at attractive rates or at all; (v) potential increases in interest rates could have a negative impact on our business; (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) timber prices may not increase at the rate we currently anticipate or could decline, which would negatively impact our revenues; (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 and our investment in the joint venture may lose some or all of its 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.

SOURCE CatchMark Timber Trust, Inc.

August 05, 2021

CatchMark Announces Strong Second Quarter 2021 Results, Reports Significant Progress on Strategic Initiatives, Declares Dividend→

ATLANTA, Aug. 5, 2021 /PRNewswire/ -- CatchMark Timber Trust, Inc. (NYSE: CTT) today reported second quarter 2021 results. The company also declared a cash dividend of $0.135 per share for its common stockholders of record as of August 31, 2021, payable on September 15, 2021.

Brian M. Davis, CatchMark's President and CEO, said: "CatchMark delivered an exceptionally strong quarter, as we continue to capture significantly higher pricing for both pulpwood and sawtimber from premier timberlands in our U.S. South markets. These pricing advantages more than offset the planned reduction in total harvest volume as we maintained consistent productivity on a per-acre basis. We believe consumption levels and availability of logs in our superior markets can continue to deliver pricing premiums, helped by heightened production in the U.S. South from new sawmills coming on-line over the next 18 months to meet increased demand for lumber products in U.S. housing markets. In addition, the U.S. South continues to meet increased demand from the ongoing decline in Canadian timber production."

"Second quarter results also benefited from higher year-over-year timberland sales, bringing year-to-date sales to almost 80% of full-year guidance targets. Liquidity remains ample and we further strengthened our capital position, recognizing an $0.8 million gain on the Oglethorpe large disposition and using net proceeds of $7.3 million to pay down outstanding debt. The pending disposition this month of our Pacific Northwest Bandon timberlands will further strengthen our capital position and enable future growth, concentrating in the U.S. South. Importantly, our dividend is covered by operating cash flow and we are on track to meet full-year guidance.

"Also, Triple T's recent agreement to sell approximately 28% of its timberlands to Hancock Natural Resource Group demonstrates how we have enhanced Triple T's financial performance and increased its per-acre value. We continue to explore further opportunities to unlock additional value for our Triple T investment partners and CatchMark."

SECOND QUARTER 2021 RESULTS

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

FINANCIAL HIGHLIGHTS








(in millions except for tons and
acres)

Three Months Ended June 30,


Change

2021


2020


Dollars, Tons or Acres


%

Results of Operations








Revenues

$

31.9



$

21.8



$

10.1



47

%

Net Income (Loss)

$

1.8



$

(6.2)



$

8.0



128

%

Adjusted EBITDA

$

17.6



$

9.4



$

8.2



86

%









Harvest Volume (tons)

528,007



567,908



(39,901)



(7)

%

Acres Sold

4,300



1,100



3,200



291

%

Business Segments Overview

Harvest Operations 


Three Months Ended June 30,


Change

(in millions)

2021


2020


$


%

Timber Sales Revenue

$

20.1



$

16.2



$

3.9



24

%

Harvest EBITDA

$

9.4



$

7.4



$

2.0



27

%

Harvests from CatchMark's prime timberlands located in strong markets across the U.S. South and in the Pacific Northwest continued to generate significant price premiums over market averages during the second quarter and delivered substantially higher timber sales revenue year-over-year on 7% lower overall volumes. Lower volumes were anticipated and resulted from recent large timberland dispositions.

Robust mill demand in CatchMark's markets was driven by increased housing starts, significant repair and remodeling business, and continued demand for pulp-related products. 

U.S. South:

  • Timber sales revenue increased $1.8 million, or 13%, year-over-year, resulting from exceptionally strong pricing, partly offset by 10% lower harvest volumes. Harvest volumes reflected consistent productivity on a per-acre basis.
  • Pulpwood and sawtimber sales prices were 71% and 19%, respectively, higher than TimberMart-South South-wide averages, and 25% and 13% above CatchMark's realized prices for the prior year quarter.

Pacific Northwest:

  • Timber sales revenue year-over-year increased by $2.1 million, a 131% increase, due to a 75% increase in harvest volume and a 26% increase in delivered sawtimber pricing.
  • Increased regional harvest volumes by capitalizing on particularly favorable market conditions for lumber demand that have carried over from late 2020 as the economy accelerated emerging from the pandemic-related downturn.

Todd Reitz, Chief Resources Officer, said: "Despite wet weather in the U.S. South, we maintained consistent delivered and stumpage sales in the region as well as increased delivered volume in the Pacific Northwest, taking advantage of strong sawmill order files in our superior markets. Although the housing surge has slowed slightly, mill inventories remain thin and both sawtimber and pulp markets are buoyed by strong demand, which continues to position us well for the near-term."

Real Estate 


Three Months Ended June 30,


Change

(in millions)

2021


2020


$


%

Timberland Sales Revenue

$

7.6



$

1.7



$

6.0



356

%

Real Estate EBITDA

$

7.3



$

1.6



$

5.8



372

%

Timberland Sales:  

  • The company sold 4,300 acres during the quarter, 3,200 acres more than in second quarter 2020, and at an 11% higher average price per acre — $1,743 versus $1,564 in second quarter 2020.
  • The per-acre sales price increased despite lower average merchantable timber stocking levels and generated an improved margin — 26% in second quarter 2021 versus 13% in second quarter 2020.
  • Acres sold in the current period had lower average merchantable timber stocking than our portfolio average.
  • Through the second quarter, CatchMark has completed nearly 80% of its full-year 2021 timberland sales target and remains on course to meet guidance.

Acquisitions and Large Dispositions:  CatchMark made no acquisitions during the quarter, but completed a large disposition under its capital recycling program — the sale of 5,000 acres in Georgia (Oglethorpe) for $7.5 million. The transaction resulted in recognizing an $0.8 million gain and $7.3 million of net proceeds was used to pay down its outstanding debt balance on the Multi-Draw Term Facility. In addition, CatchMark entered into a definitive agreement on June 21, 2021 to sell 18,100 acres of Oregon timberlands — known as the Bandon property — for $100 million, or $5,536 per acre. CatchMark purchased the Bandon property in August 2018 for $88.8 million, or $4,916 per acre, and expects to recognize a gain on the sale in excess of $20 million in the third quarter of 2021. CatchMark will use most of the net proceeds from the Bandon disposition to pay down its outstanding debt.

Investment Management 


Three Months Ended June 30,


Change

(in millions)

2021


2020


$


%

Asset Management Fee Revenue

$

3.2



$

2.9



$

0.4



12

%

Investment Management EBITDA

$

3.3



$

2.8



$

0.5



16

%

  • The 12% increase in asset management fee revenue year-over-year to $3.2 million resulted from the amended asset management agreement with the Triple T joint venture, which was completed during the second quarter of 2020.
  • CatchMark received $0.4 million of distributions from the Dawsonville Bluffs joint venture during the second quarter, including $0.1 million of incentive-based promotes for exceeding investment hurdles. Subsequent to quarter-end, the company received an additional $0.7 million distribution from Dawsonville Bluffs, including incentive-based promotes.
  • On July 30, 2021, the Triple T joint venture entered into a definitive agreement to sell 301,000 acres of its 1.1 million acres of prime East Texas timberlands for $498 million, exclusive of transaction costs. The negotiated per-acre sales price of $1,656 compares to Triple T's $1,264 per-acre acquisition price in July 2018. Sale proceeds will be used to reduce Triple T's leverage and to pay down a portion of the preferred partnership interests in the joint venture. The transaction is expected to close during the third quarter, subject to customary closing conditions.

CAPITAL POSITION AND SHARE REPURCHASES

CatchMark maintained its strong capital position with more than $180 million of liquidity from a combination of credit facilities and cash on hand, as of June 30, 2021.

  • Following the Oglethorpe large disposition and the use of $7.3 million in net proceeds to paydown its outstanding balance on the Multi-Draw Term Facility, CatchMark had a cash balance of $22.3 million and $158.2 million of borrowing capacity remaining under its credit facilities, consisting of $123.2 million under the Multi-Draw Term Facility and $35.0 million under the Revolving Credit Facility, as of June 30, 2021.
  • On August 4, 2021, CatchMark amended its existing credit agreement to establish a $68.6 million revolver feature on Term Loan A-3 and extend the maturity date of the existing Revolving Credit Facility from 2022 to 2026.

Chief Financial Officer Ursula Godoy-Arbelaez, said: "Under the amended credit agreement, CatchMark can use proceeds from the pending Bandon disposition to further deleverage the company while improving future available debt capacity. We have increased the weighted-average life of our debt while maintaining current competitive pricing. The amendment improves liquidity, flexibility and balance sheet strength, all while maximizing debt capacity for future growth."

Covered Dividend

  • During the second quarter, CatchMark paid $6.6 million of distributions to stockholders, fully covered by net cash provided by operating activities.

Conference Call

The company will host a conference call and live webcast at 10 a.m. ET on Friday, August 6, 2021 to discuss these results. Investors may listen to the conference call by dialing 1-888-347-1165 for U.S/Canada and 1-412-902-4276 for international callers.  Participants should ask to be joined into the CatchMark call. Access to the live webcast is available at www.catchmark.com or here. A replay of this webcast will be archived on the company's website immediately after the call. 

About CatchMark

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

* As of June 30, 2021

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are not guarantees of performance and are based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Forward-looking statements in this press release include, but are not limited to, that we believe consumption levels and availability of logs in our superior markets can continue to deliver pricing premiums, helped by heightened production in the U.S. South from new sawmills coming on-line over the next 18 months to meet increased demand for lumber products in U.S. housing markets; that the pending disposition in the third quarter of our Pacific Northwest Bandon timberlands will further strengthen our capital position and enable future growth; that we are on track to meet full-year guidance; that both sawtimber and pulp markets are buoyed by strong demand, which continues to position us well for the near-term; and  that the sale of property by Triple T is expected to close during the third quarter, subject to customary closing conditions. Risks and uncertainties that could cause our actual results to differ from these forward-looking statements include, but are not limited to, that (i) the conditions to closing the Bandon disposition may not be satisfied in a timely manner or at all and our gain on the transaction may less than we currently anticipate; (ii) the conditions to closing the Triple T land sale transaction may not be satisfied in a timely manner or at all and Triple T's proceeds from the transaction could be less than we anticipate; (iii) we may not generate the harvest volumes from our timberlands that we currently anticipate; (iv) the demand for our timber may not increase at the rate we currently anticipate or could decline due to changes in general economic and business conditions in the geographic regions where our timberlands are located, including as a result of the COVID-19 pandemic and the measures taken as a response thereto; (v) a downturn in the real estate market, including decreases in demand and valuations, may adversely impact our ability to generate income and cash flow from sales of higher-and-better use properties; (iv) timber prices may not increase at the rate we currently anticipate or could decline, which would negatively impact our revenues; (vii) the supply of timberlands available for acquisition that meet our investment criteria may be less than we currently anticipate; (viii) we may be unsuccessful in winning bids for timberland that are sold through an auction process; (ix) we may not be able to make large dispositions of timberland in capital recycling transactions at prices that are attractive to us or at all; (x) we may not be able to access external sources of capital at attractive rates or at all; (xi) potential increases in interest rates could have a negative impact on our business; (xii) our share repurchase program may not be successful in improving stockholder value over the long-term; (xiii) our joint venture strategy may not enable us to access non-dilutive capital and enhance our ability to make acquisitions; (xiv) we may not be successful in effectively managing the Triple T joint venture and the anticipated benefits of the joint venture may not be realized, including that our asset management fee could be deferred or decreased and our investment in the joint venture may lose some or all of its value; and (xv) the factors described in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and our other filings with the Securities and Exchange Commission. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update our forward-looking statements, except as required by law.

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except for per-share amounts)



Three Months Ended

June 30,


Six Months Ended

June 30,


2021


2020


2021


2020

Revenues:








Timber sales

$

20,111



$

16,173



$

40,260



$

34,339


Timberland sales

7,632



1,673



10,989



6,452


Asset management fees

3,211



2,857



6,329



5,832


Other revenues

986



1,054



2,048



2,106



31,940



21,757



59,626



48,729


Expenses








Contract logging and hauling costs

8,825



6,978



17,556



14,255


Depletion

6,657



6,707



14,382



13,648


Cost of timberland sales

5,641



1,463



7,796



4,885


Forestry management expenses

1,707



1,671



3,594



3,505


General and administrative expenses

3,094



3,024



6,694



10,291


Land rent expense

20



96



133



220


Other operating expenses

1,714



1,585



3,427



3,221



27,658



21,524



53,582



50,025










Other income (expense):








Interest income



4



1



50


Interest expense

(3,337)



(4,070)



(6,265)



(8,027)


Gain on large dispositions

759



(5)



759



1,274



(2,578)



(4,071)



(5,505)



(6,703)










Income (loss) before unconsolidated joint ventures and
income taxes

1,704



(3,838)



539



(7,999)










Income (loss) from unconsolidated joint ventures:








Triple T



(2,311)





(2,311)


Dawsonville Bluffs

49



(34)



663



(122)



49



(2,345)



663



(2,433)










Net income (loss)

1,753



(6,183)



1,202



(10,432)


Net income attributable to noncontrolling interest

4





3




Net income (loss) attributable to common stockholders

$

1,749



$

(6,183)



$

1,199



$

(10,432)










Weighted-average common shares outstanding - basic

48,421



48,744



48,398



48,866


Income (loss) per common share - basic

$

0.04



$

(0.13)



$

0.02



$

(0.21)










Weighted-average common shares outstanding - diluted


48,562




48,744




48,513




48,866


Income (loss) per common share - diluted

$

0.04



$

(0.13)



$

0.02



$

(0.21)


 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except for per-share amounts)



June 30, 2021


December 31, 2020

Assets:




Cash and cash equivalents

$

22,291



$

11,924


Accounts receivable

7,615



8,333


Prepaid expenses and other assets

6,349



5,878


Operating lease right-of-use asset

2,680



2,831


Deferred financing costs

125



167


Timber assets:




Timber and timberlands, net

475,354



576,680


Intangible lease assets

3



5


Assets held for sale

75,940




Investment in unconsolidated joint ventures

1,907



1,510


Total assets

$

592,264



$

607,328






Liabilities:




Accounts payable and accrued expenses

$

5,595



$

4,808


Operating lease liability

2,849



2,988


Other liabilities

23,149



32,130


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

430,659



437,490


Total liabilities

462,252



477,416






Commitments and Contingencies








Stockholders' Equity:




Class A common stock, $0.01 par value; 900,000 shares authorized; 48,906 
     and 48,765 shares issued and outstanding as of June 30, 2021 and 
     December 31, 2020, respectively

489



488


Additional paid-in capital

729,155



728,662


Accumulated deficit and distributions

(584,368)



(572,493)


Accumulated other comprehensive loss

(16,731)



(27,893)


Total stockholders' equity

128,545



128,764


Noncontrolling Interest

1,467



1,148


Total equity

130,012



129,912


Total liabilities and equity

$

592,264



$

607,328


 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)



Three Months Ended

June 30,


Six Months Ended

June 30,


2021


2020


2021


2020

Cash Flows from Operating Activities:








Net income (loss)

$

1,753



$

(6,183)



$

1,202



$

(10,432)


Adjustments to reconcile net income (loss) to net cash
provided by operating activities:








Depletion

6,657



6,707



14,382



13,648


Basis of timberland sold, lease terminations and other

5,701



1,721



7,667



4,997


Stock-based compensation expense

767



705



1,386



2,577


Noncash interest expense

586



1,064



1,171



1,771


Noncash lease expense

6



10



11



20


Other amortization

44



42



87



83


Gain (loss) on large dispositions

(759)



5



(759)



(1,274)


(Income) loss from unconsolidated joint ventures

(49)



2,345



(663)



2,433


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

1,438



1,152



2,845



1,492


Changes in assets and liabilities:








Accounts receivable

(747)



(1,146)



(258)



473


Prepaid expenses and other assets

282



50



497



409


Accounts payable and accrued expenses

220



80



878



2,656


Other liabilities

2,561



2,219



1,606



1,177


Net cash provided by operating activities

18,460



8,771



30,052



20,030










Cash Flows from Investing Activities:








Capital expenditures (excluding timberland acquisitions)

(1,003)



(1,054)



(3,320)



(3,766)


Investment in unconsolidated joint ventures



(5,000)





(5,000)


Distributions from unconsolidated joint ventures

266





266



400


Net proceeds from large dispositions

7,340





7,340



20,863


Net cash provided by (used in) investing activities

6,603



(6,054)



4,286



12,497










Cash Flows from Financing Activities:








Repayments of notes payable

(7,295)





(7,295)



(20,850)


Proceeds from notes payable



5,000





5,000


Financing costs paid

(3)



(974)



(7)



(1,004)


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

(1,438)



(1,152)



(2,845)



(1,492)


Dividends/distributions paid

(6,563)



(6,541)



(13,128)



(13,189)


Repurchases of common shares

(80)



(78)



(158)



(2,130)


Repurchase of common shares for minimum tax withholding

(49)



(34)



(538)



(999)


Net cash used in financing activities

(15,428)



(3,779)



(23,971)



(34,664)


Net change in cash and cash equivalents

9,635



(1,062)



10,367



(2,137)


Cash and cash equivalents, beginning of period

12,656



10,412



11,924



11,487


Cash and cash equivalents, end of period

$

22,291



$

9,350



$

22,291



$

9,350


 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

SELECTED DATA (UNAUDITED)



2021


2020


Q1


Q2


YTD


Q1


Q2


YTD

Consolidated






























Timber Sales Volume (tons, '000)












Pulpwood

273



300



573



324



354



679


Sawtimber (1)

252



228



480



271



214



484


Total

525



528



1,053



595



568



1,163














Harvest Mix












Pulpwood

52

%


57

%


54

%


54

%


62

%


58

%

Sawtimber (1)

48

%


43

%


46

%


46

%


38

%


42

%













Period-end Acres ('000)












Fee

385



375



375



393



392



392


Lease

15



15



15



22



22



22


Wholly-owned total

400



390



390



415



414



414


Joint venture interest (5)

1,081



1,080



1,080



1,092



1,092



1,092


Total

1,481



1,470



1,470



1,507



1,506



1,506















U.S. South





















Timber Sales Volume (tons, '000)












Pulpwood

271



297



568



320



352



672


Sawtimber (1)

205



194



399



250



195



445


Total

476



491



967



570



547



1,117














Harvest Mix












Pulpwood

57

%


61

%


59

%


56

%


64

%


60

%

Sawtimber (1)

43

%


39

%


41

%


44

%


36

%


40

%

Delivered % as of total volume

74

%


77

%


76

%


63

%


61

%


62

%

Stumpage % as of total volume

26

%


23

%


24

%


37

%


39

%


38

%













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












Pulpwood

$

14



$

15



$

15



$

13



$

12



$

13


Sawtimber (1)

$

25



$

26



$

25



$

23



$

23



$

23














Timberland Sales












Gross sales ('000)

$

3,357



$

7,632



$

10,989



$

4,779



$

1,673



$

6,452


Acres sold

1,800



4,300



6,100



3,000



1,100



4,100


% of fee acres

0.5

%


1.2

%


1.6

%


0.7

%


0.3

%


1.0

%

Price per acre (3)

$

1,923



$

1,743



$

1,794



$

1,627



$

1,564



$

1,611














Large Dispositions (4)












Gross sales ('000)

$



$

7,536



$

7,536



$

21,250



$



$

21,250


Acres sold



5,000



5,000



14,400





14,400


Price per acre (7)

$



$

1,522



$

1,522



$

1,474



$



$

1,474


Gain ('000)

$



$

759



$

759



$

1,274



$



$

1,274














Pacific Northwest





















Timber Sales Volume (tons,'000)












Pulpwood

2



3



5



4



3



7


Sawtimber (1)

47



34



81



21



18



39


Total

49



37



86



25



21



46














Harvest Mix












Pulpwood

4

%


8

%


6

%


18

%


13

%


15

%

Sawtimber

96

%


92

%


94

%


82

%


87

%


85

%

Delivered % as of total volume

100

%


100

%


100

%


84

%


100

%


91

%

Stumpage % as of total volume

%


%


%


16

%


%


9

%













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












Pulpwood

$

30



$

30



$

30



$

31



$

29



$

30


Sawtimber

$

104



$

106



$

105



$

91



$

84



$

87




































(1)

Includes chip-n-saw and sawtimber.

(2)

Prices per ton are rounded to the nearest dollar.

(3)

Excludes value of timber reservations. For the three months ended June 30, 2021 and 2020, we retained 49,000 tons and 25,000 tons of merchantable inventory, with a sawtimber mix of 32% and 62%, respectively, for 2021 and 2020. For the six months ended June 30, 2021 and 2020, we retained 59,000 tons and 115,000 tons of merchantable inventory, with a sawtimber mix of 36% and 52%, respectively.

(4)

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

(5)

Represents properties owned by Triple T joint venture in which CatchMark owns a common partnership interest and has contributed 22.0% of total equity contributions; and Dawsonville Bluffs, LLC, a joint venture in which CatchMark owns a 50% membership interest. CatchMark serves as the manager for both of these joint ventures.

(6)

Delivered timber sales price includes contract logging and hauling costs.

(7)

Excludes value of timber reservations, which retained 56,300 tons of merchantable inventory, with a sawtimber mix of 55% for the six months ended June 30, 2020.

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

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

(in thousands)



Three Months Ended

June 30,


Six Months Ended

June 30,

(in thousands)

2021


2020


2021


2020

Net income (loss)

$

1,753



$

(6,183)



$

1,202



$

(10,432)


Add:








Depletion

6,657



6,707



14,382



13,648


Interest expense (2)

2,752



3,006



5,094



6,256


Amortization (2)

636



1,116



1,269



1,874


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

15





103




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

5,701



1,721



7,667



4,997


Stock-based compensation expense

767



705



1,386



2,577


Gain on large dispositions (5)

(759)



5



(759)



(1,274)


HLBV loss from unconsolidated joint venture (6)



2,311





2,311


Post-employment benefits (7)

7



11



23



2,297


Other (8)

48



36



147



70


Adjusted EBITDA (1)

$

17,577



$

9,435



$

30,514



$

22,324




(1)

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

(2)

For the purpose of the above reconciliation, amortization includes amortization of deferred financing costs, amortization of operating lease assets and liabilities, amortization of intangible lease assets, and amortization of mainline road costs, which are included in either interest expense, land rent expense, or other operating expenses in the accompanying consolidated statements of operations.

(3)

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

(4)

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

(5)

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

(6)

Reflects HLBV losses from the Triple T joint venture, which is determined based on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.

(7)

Reflects one-time, non-recurring post-employment benefits associated with the retirement of our former CEO, including severance pay, payroll taxes, professional fees, and accrued dividend equivalents paid in installments over agreed-upon periods of time.

(8)

Includes certain cash expenses paid, or reimbursement received, that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions, transactions, joint ventures or new business initiatives.

 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

ADJUSTED EBITDA BY SEGMENT (UNAUDITED)

(in thousands)



Three Months Ended

June 30,


Six Months Ended

June 30,


2021


2020


2021


2020

Timber sales

$

20,111



$

16,173



$

40,260



$

34,339


Other revenue

986



1,054



2,048



2,106


(-)    Contract logging and hauling costs

(8,825)



(6,978)



(17,556)



(14,255)


(-)    Forestry management expenses

(1,707)



(1,671)



(3,594)



(3,505)


(-)    Land rent expense

(20)



(96)



(133)



(220)


(-)    Other operating expenses

(1,714)



(1,585)



(3,427)



(3,221)


(+)   Stock-based compensation

143



82



250



197


(+/-)  Other

393



409



446



554


Harvest EBITDA

9,367



7,388



18,294



15,995










Timberland sales

7,632



1,673



10,989



6,452


(-)    Cost of timberland sales

(5,641)



(1,463)



(7,796)



(4,885)


(+)   Basis of timberland sold

5,342



1,342



7,284



4,503


Real Estate EBITDA

7,333



1,552



10,477



6,070










Asset management fees

3,211



2,857



6,329



5,832


Unconsolidated Dawsonville Bluffs joint venture EBITDA

64



(34)



766



(122)


Investment Management EBITDA

3,275



2,823



7,095



5,710










Total Operating EBITDA

19,975



11,763



35,866



27,775










(-)     General and administrative expenses

(3,094)



(3,024)



(6,694)



(10,291)


(+)    Stock-based compensation

624



623



1,136



2,380


(+)    Interest income



4



1



50


(+)    Post-employment benefits

7



11



23



2,297


(+/-)  Other

65



58



182



113


Corporate EBITDA

(2,398)



(2,328)



(5,352)



(5,451)










Adjusted EBITDA

$

17,577



$

9,435



$

30,514



$

22,324


 

CATCHMARK TIMBER TRUST, INC. AND SUBSIDIARIES

CASH AVAILABLE FOR DISTRIBUTION (UNAUDITED)

(in thousands, except for per share data)



Three Months Ended

June 30,


Six Months Ended

June 30,


2021


2020


2021


2020

Cash Provided by Operating Activities

$

18,460



$

8,771



$

30,052



$

20,030


Capital expenditures (excluding timberland acquisitions)

(1,003)



(1,054)



(3,320)



(3,766)


Working capital change

(2,316)



(1,203)



(2,723)



(4,715)


Distributions from unconsolidated joint ventures

266





266



400


Post-employment benefits

7



11



23



2,297


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

(1,438)



(1,152)



(2,845)



(1,492)


Other

48



36



147



70


Cash Available for Distribution (1)

$

14,024



$

5,409



$

21,600



$

12,824










Adjusted EBITDA

$

17,577



$

9,435



$

30,514



$

22,324


Interest paid

(2,752)



(3,006)



(5,094)



(6,256)


Capital expenditures (excluding timberland acquisitions)

(1,003)



(1,054)



(3,320)



(3,766)


Distributions from unconsolidated joint ventures

266





266



400


Adjusted EBITDA from unconsolidated joint ventures

(64)



34



(766)



122


Cash Available for Distributions (1)

$

14,024



$

5,409



$

21,600



$

12,824










Dividends / distributions paid

$

6,563



$

6,541



$

13,128



$

13,189










Weighted-average shares outstanding - basic, end of period

48,421



48,744



48,398



48,866










Dividends per Share

$

0.135



$

0.135



$

0.270



$

0.270




(1)

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

 

 

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.