PCH - Earnings call transcript Q3 2020 | PotlatchDeltic Corporation

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Operator

Good morning. My name is Lindsay, and I will be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic Third Quarter 2020 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like the now Mr. over to would call turn to I Richards, Financial Chief President for Jerry and Officer Vice opening remarks. proceed. Sir, may you

Jerry Richards

our slides, Good on Operating please the review in PotlatchDeltic's in reconciliation risks found Call. third quarter statements. measures I filings to Officer; statements. to and and www.potlatchdeltic.com. concerning Chairman with associated our morning, over Please XXXX President Executive for the and the call and Conference and results be our call will Cremers, at Earnings forward-looking Mike with Chief the and then note Third will SEC some Chief I'll cover these forward-looking statements With This the and outlook. are now press the room on Quarter in presentation warning can of our Eric release, Also, Mike our website Officer. a turn Covey, that me non-GAAP comments, welcome contain

Mike Covey

good quarter the total Thank prices. quarterly Products as well Jerry, leverage spotlights as quarter. Timberlands all and Historic established lumber this PotlatchDeltic's of and EBITDDA company new to you, power Wood the morning. records third

higher million. expect prices from third lumber declining will unprecedented than $XXX be highs, quarter Although quarter's currently EBITDA we are fourth

a fourth conservation to quarter. As reminder, close the expect Minnesota sale in we a large

managing drove continued challenging by all requires in top businesses I safely during lumber We operating thank also three remains believe their time. the that strong our pandemic the execution risks strong COVID continued Safety our to This a want includes to pricing. on on whose housing outlook for quarterly point this presented priority solid diligence. focus fundamentals employees, results. outstanding our

our business Warren adjusted shipping ran Saint to the and $XX our Maries sawmills generated on quarter. in meet provided that a sawmills, as order overtime EBITDA November. call Our quarterly both XX end lumber the We ended last in million we customer strong of filed and of could by the Products We into demand, our board Wood as with much third million we lumber top extends exceeded shipments quarter Overall, feet. early quarter's that records. range earnings third the set

While down expect remain Wood trend levels to fourth above well adjusted be the Products' EBITDA it in sequentially, we will quarter.

harvested tons the a business million Timberlands in which quarterly is Our X.X quarter, record.

change Idaho about Given the Estate basis, on a that expected Sawlog to In fund of business, approximately flat we the $XX expect Real about adjusted are in about quarter. fourth conservation our relatively timberlands prices strong in XX XX% Idaho deliveries to Minnesota our continue Southern six-week indexed pricing soon. quarter. lag markets, anytime lumber our will remains close our in to little expect the remain the for fourth will across we that with sale EBITDA million of sawlog acres

in activity XXX Masterplan when sales began, Little than Valley pandemic approximately better lots year. addition, our sell Chenal and we expected community the expect to In in we the fared Rock for residential has COVID

September, continued to times since growth experts industry because each in any fundamentals the This increase lumber August, more demand, U.S. continued home is That's lumber to crisis. increase exceeded multi-family in stage. that years, sale, the for in great are housing an confidence order of Many a start. robust since financial and and believe suggest September. the homes homebuilders up sets the Single-family stronger prime record set great all home entering housing -- three at that a inventories a units growth millennials compared rates week, was single-family of new construction new the does X% lumber ahead, Massive residential homebuilder the X.XX alone. the million starts units low Looking construction to their than from remain crisis, low XX% mortgage residential year. construction important This four reported multiyear historically million single-family boom. starts for all-time permits last buying XX% at all point last U.S. is of utilizes that by and demand. stage housing and on cusp will housing September X.X high financial in are at single-family than underbuilding summer the through near-term.

of The random strong lengths the at or thousand continue framing was view XXXX. levels XX% of reflected from prior on repair of nominal U.S. September, the industry to supported high the June drawdowns in in Additionally, appears which living the feet by is is and which with now and equity housing demand XX the high board lumber peak expected stock, The record to than grow. years per urban trend. composite affecting peaked inventory work-from-home suburban housing combined demand. average a also remodel positively That to reached, home at of segment The disruptions. COVID-related be age prices shift to is COVID $XXX operating crisis, beginning higher and

prices Now the a pace to stretch range. weaker lumber slowed begun The retreat. estimated levels. said, underlying strong. be settle, That new orders year, as and of the demand the with that lumber and prices supply coupled housing of end files announced increases remodel down limited the remains seasonably are lumber lumber have long has inventories attractive suggest at their at and lumber should And strong the order to outlook, of into low part expected repair historic lumber

dividends the year. season. about heading for the repurchases, setup form share million very Switching $XX minute, are a to We building into now of far shareholders we returned allocation capital this XXXX, and the optimistic so to in

potential about next third with since attractive these the acquisitions months. capital We to IRR projects over our represent the allocation priorities. of slate, We some Discretionary weighted leg Accretive to the to XXX%, for XX%. represent returns. of plan a of projects, average our which added we've dividend sustainably XX complete mill increased are the of $XX highest XXXX. capital committed million recently growing projects We new

has do of And timberlands, operating combination current ESG a September. report a strong acquiring committed inaugural invested the mitigate to or we're continue forward environmental, area. our look change. mills climate updating this wrap-up We governance our near and legacy We comments, two, the business story. regularly across progress are PotlatchDeltic to to spectrum. in my ESG social And areas. published remain our To recently in on responsibility, part, We you our in of good. conditions our

the now value. it talk to turn And quarter Jerry, quarter to the seek liquidity flexibility, expect strong degree advantage and high positioned well. to PotlatchDeltic as well about low fundamentals. our report to we is for outlook. our We of to fourth provide favorable back take of industry a leverage results as I'll third maximize shareholder strong and

Jerry Richards

quarter. in XXX,XXX harvested in review the in displayed our quarter million, a were higher sawlogs, compared in lumber provide third Mike. million million We The second third higher was quarter, is Information slides quarter South tons adjusted the I'll the in now $XX.X the This results. tons In more on sawlogs. segment prices. X in we sawlog ton the $XX.X page second historic strong compared you, we Starting seasonally prices $XXX second tons adjusted for on third XX% harvested third primarily sawlog million the The increase This Northern XXX,XXX quarter, quarter. Timberlands was And significantly XX% primarily the X.X the of through reflected to of from with in And operating were Thank each that, higher the X. run quarter. North, higher to and of the EBITDDA up of quarter. of prices, the harvested than result second slides, quarter. the by per is in harvest demand. higher segments. prices our was color was in on second third quarter the higher four segment's the the $XXX the The driven volumes. million quarter. sawlog seasonally the basis for than indexed third EBITDDA

to higher prices. of hardwood second quarter. offset Southern sawlog third of were than slightly compared X% weaker the proportion higher Our the prices A sawlog higher-priced pine quarter more volume, sawlog in

X X the quarter. Products adjusted was quarter, Wood in million on slides second the million to Turning in EBITDDA third and compared $XX.X to $XX.X

the thousand on to third in Note our due $XXX of from our four feet results the order quarter. increasing Our at lags record per our board increased the month. to in spot roughly prices reported provide link. weeks by average links context, lumber per by lumber feet random $XXX To effect to thousand file the by look prices helpful XX% it's lumber price that, realization quarter, second prices board

September in quarter. Higher average XXX million $XXX Our of average average. increased board Idaho hours third to per then relative our feet is quarter accelerated mills. shipments feet higher about feet feet Lumber than which board effect XX% thousand higher offset XXX $XXX third the per to second quarter increased increased board board lumber in from the price more board They thousand log fixed the feet and in to $XXX index The another second September. July in thousand quarter average. better the August our in million per than costs in price cost to absorption, led production realizations

summarized was XX. $XX.X due and sale second to adjusted quarter more to items, quarter. in segment's acres on XX. Moving primarily the million which compared slides EBITDDA prior Shifting compared to The $X.X on to slide Real Estate million are the increase And financial in of was to rural XX the the quarter. third

focused debt locked Capital our December Our we repurchase interest quarter. quarter. will to commitment did expense remains $XXX,XXX our this on third expenditures the rate. million and million. attractive any XXXX total third beginning cash last debt prices undrawn. liquidity our December. refinance and decline were remains at plan availability nearly in approximately to shareholder ability this announced shares revolver, $XXX allocation the of month $XX on plan scheduled over of shares and have as broader on This amount part that We strategy not repurchase interest This of becomes which million million effective $XXX at Annual value in strong long-term. to our XXbX-X capital mature Thursday. $XX.X the includes the reflects The during We increasing in

operations in mentioned, added to Note that XXXX. million some Harvest on included exclude cash lower XX. are flow Mike million in planned from that high-return statement slate. which $XX mill As provide volumes quarter. We details are in some the development currently compared and expenditures I high-level timberland acquisitions. expect the will fourth to we mentioned the North to expenditures, in cash I quarter just the outlook capital estate seasonally amounts be are third the in to real comments, be our slide will presented projects now include $XX the our

volumes Harvest due expected in the significantly as to well sawlog fourth increase fourth index higher the higher sawlog the expect in prices prices in Northern We seasonally quarter quarter. prices. are as decrease South primarily to cedar to

be that sawlog lumber expect We with quarter. Southern prices third early November. order We to stretched into the third file a ended comparable quarter the to

price thus Our but far shipped is average not average quarter in quarter, the than lumber price. booked including fourth our third yet approximately lumber X% higher orders

the quarter files in prices. long order to the relative our expect will We print realizations dampen sequential fourth decline

reminder to still sell for open prices fourth primary amount consolidated EBITDA The Overall, the in price third we previously record We fourth adjusted would a fundamentals EBITDA which XX fourth we expect quarter. term. Chenal acre an value transaction Real the board risk remains As achieving thousand total lumber concludes the by fourth Q&A. Lindsay, long a company. Minnesota foot to operations. We That to at the XX,XXX $XX basis. in quarter. I'd potential equals than board lumber in lumber call fourth the and of expect land change million quarter, of are expect establish acres of the shareholder million over mill like lots XX,XXX remarks. increase to in new the well-positioned level to annual per depends our believe the to to higher us quarter the encouraged XX The grow ship and quarter to announced a outlook rural close sequential pandemic's be prepared approximately to XXX XXX to on plan Valley quarterly Shifting $XX which approximately quarter. now our for upon disrupt settle. we feet we the We're to million our for XX,XXX of the to industry Estate, that

Operator

with Mamtora Instructions] the question from BMO. first Ketan [Operator Our of comes line

Your line is now open.

Ketan Mamtora

afternoon, a and Jerry. quarter. Eric And strong Good Mike, congrats on

Mike Covey

Thank you.

Jerry Richards

Thanks.

Ketan Mamtora

question to on First start-off maybe that.

you in are of Some or XXXX big that how versus XXXX? the that that projects of can up projects all what you highlight on if and the doing one kind can there? within lumber And you maybe you just all just highlighted much show side, maybe will of two of kind clarify

Eric Cremers

Yes.

is this So Ketan, Eric.

As our projects about then million, get mentioned, forward XXXX. million that current will $X had Mike million our [Indiscernible]. going pull million spent $X in to and capital get and into spent Of $XX get we're million will Jerry $XX spent of going $X roughly is this about thinking for to in XXXX year,

that volumes we've our sawmill, we're stacker. the which sawmills. will new production next green going by projects early our to volume stacker expect in production increase mill's Ola happen put a key we Some that constrained Ola new now, at got stacker, stacker. at adding the Right that is And by to a year,

But XXXX. in new we us project our -- for also are grader. in mill, put to Bemidji key this Another auto will of a happen going QX is,

aware, yields center really important us serve mills are -- help recovery you grade our our excuse are our home As probably me, sub and our at customers.

to new grader produce that that is So Bemidji just are Those our that at we auto subs going high-grade examples. some sawmill. increase

Ketan Mamtora

it. quarter-over-quarter, and given little surprised bit how much then, at help And to pointing of that of missing? Maybe some of the files turning on very sort the what provide either color down Got just lumber are go realization things realization QX or up sort the was some may through prices continue helpful. things kind lengthy QX. other I sort just I and offsetting of to be -- just a to order given That's

Eric Cremers

Yes.

was our QX it price around Ketan, in price. was gap $XXX, our So

We of to fall kind number. single-digit prices mid are a QX expecting in

of If you talking QX. prices thinking, if for they're what look drops you in look is at what kind lumber is XX%, FEA resi thinking, at XX% about

reverse to were So shipping lag and October in be lot QX. $XXX going the in index range. a better September be the knows and we to going you to prices out QX. saw than December out but And August it, settle a who now, and may gap into but a down to is get It prices, it's us in we of out December price into kind November, it as due did it's looks in there like the going that where while

going than said, quarter. that's the much So, the index pull I for for the expect down the quarter. But do to better we average like to

Ketan Mamtora

Got it.

sort realizations digits you in I mid-single basis your So, on correctly a said hear expect you did that, QX? percentage you to down be of

Eric Cremers

correct. That's

Ketan Mamtora

to Got it. over On help. a final from cash just strong should And my standpoint. before That's another net quarter very then QX question is two allocation, capital from side, a little over. down I times. turn leverage just be it

you sort the in Just it's sort I'm terms or sort are prices? leverage of understand, of building thinking all comfortable to feel -- curious in you how do lumber sort about whether of just considering cash target of of some volatility

Jerry Richards

Jerry. is this Ketan, So

And discussed one certainly, as we've a four In terms -- our we've kind of keep is publicly moving leverage, it's as recently. under cycle. talked goal through of leverage overall times to towards

is of at on certainly, position strength allocating that a And relative look it flexibility low. about as really and of leverage financial we shareholder a value time. lot grow capital you us to over a gives lot think So,

So leverage we're the higher of to money in of not within range keeping range, for the going the just target. our borrow sake

have don't to be any large likely If attractive getting was ready but were, there borrow. it we most acquisition. to near-term we're refinance debt, certainly fact, an some In plans because,

timberland that as answer high opposed the right to bit work return kind to as on it's the say for valuations activity in it's side important look invest near we putting on put the will to I bit, light term. cash think excess opportunity probably side, about for a And think opportunities the excess type to cash work. excited that a very fair of to So, is, mill well given opportunities the short most as the I cash but to hold are to of we it

Ketan Mamtora

helpful. That’s it. very it turn I over. Got will

Operator

from of question line Davidson. comes Steve with next the Chercover Our D.A.

is line now Your open.

Steve Chercover

Thanks. everyone. Good morning,

Mike Covey

Hi, Steve.

Steve Chercover

down think, wanted would be Once in operational scale. about you've you'll so barely to sale the state start XXXXX assume I there, completed So I land that's to the I with Minnesota. acres

residual the there land HBU? does So consist of

Eric Cremers

Yes.

that go is a what those About of going happen half the here half sell over left in going XXXX still quarter, after again to going number XX call that XXXX. we to already of for are of transaction. going maybe that some and what's go fund contracted the Plan and to with in fourth in acres B so. the acres conservation to TCS large of is residual we XXXXX or So forget we're to don't have But

to going once if we are over left there's I So that done in couple to XXXX had probably here thousand continue unspoken acres we're to we'll believe out of sell a be guess. And those for.

Steve Chercover

it. Got

Thanks I the a how still clarifying Maries it looks it's has steam Saint talk of then of cedar? it's I that going that's tell Can to us cedar XXX,XXX sawmill. -- little And for XXXX. much -- you mean board Okay. ahead think that. feet. I like and for is want be to bit good got really Because about

Eric Cremers

and XX% about. about and QX. in really in lot We we any is don't remodel our continues of Steve, produce looking cedar. of that year cedar And XX% work hear Saint is a Idaho for about lot at each sawlog our demand Maries up about by a another repair driven were Prices volumes well. to of harvest sawmill. produce Cedar you perform here Yes. QX we're very XX% cedar cedar do the

we're So about Cedar. be to optimistic continuing

Mike Covey

logs those Northwest. a half the dozen customers to in sell We

Eric Cremers

Yes. And they process them.

Steve Chercover

it. Got

for guess be? hazard XXXX, optimism And XXXX tax maybe for a Okay. Thanks what your clarification. might your of you given rate that then can

Jerry Richards

through our on come to that will you go process. we budgeting we back one Steve, once

on of, guidance call. on any, prepared We'll that XXXX not the call. QX sort to So do this give

Steve Chercover

Can’t blame trying. us for

Okay. you. Thank

Jerry Richards

Thank you.

Operator

Capital [Operator line from Instructions] Paul Our Markets. question comes of with RBC the next Quinn

open. is Your line now

Paul Quinn

to late as in it's to guys. going priorities of at so the this front-end a your what mean, Great. sort your point? and forward. but I'm sheet stuff, looks capital obviously, got I -- are Okay. call improve going great I is I to curious Thanks, just it like missed But some of balance spot allocation

Mike Covey

returning that this the cash obviously combination Well, we this of first half the to dividend well and so little spoke a shareholders on We in of Mike. but executed year far bit have as to earlier, the -- in is repurchase share year, we that continues. the a done as

for that have With year growing, with where of bit compatibility are. projects. We and million. the already balance business and priorities one up our to that of this is are we high-return accelerated in and some be It's should of cash to either the do that certainly kind a meaningful Wood property on little position kind our an we normal attractive that Paul come acquisition we're some geographic the the sheet timberland on in own CapEx and amount above if $XX or just Products timberland one along a continues adjacent mills stepped to beyond

with So a the where got cost I debt X.X% about really we you We've sheet's think. do and I more a debt think can't of position in infer in can solid sum balance in as -- weighted of average much probably shape.

lot opportunities So not there. there's really of a

then see if effective opportunities in back program acquisition our comes it we our through put goes is fair And which Thursday. fall we XXbX-X we'll significantly just the to what growing dividend. place really this we buy stock value down a think below stock So

Paul Quinn

the opportunities. then That's just M&A And about Okay. talking great.

side. I high the valuations think at mill you referenced

timberland what the for potential those Just wondering side how high and expectation acquisitions? on are the

Mike Covey

the -- little through market, it's Well. see that seen it's starting But bankers properties others. come timberland couple of a The to a is pipeline pretty for year. of bit We've quiet, been life. and have whole acquisition investment to

activity in and So, timberland bit there's side starting U.S. least to of be a at the little on the

thousand lot these there's of of But certainly transactions. of which some the mill per been construction north side on I not think based $XXX feet. the projects, of board And on new a are South. cost

mill side has are at top buying have that to the this the been And success. high. think You on way pretty to a valuations cycle obviously never of the measure

Paul Quinn

All all right, had. Best I luck, of guys. that's

Mike Covey

Thanks.

Operator

the Seaport Mark from of comes Global. question next with Weintraub line Our

Your line is open.

Mark Weintraub

on you dividend? And you. directional in made What been of, capital terms it. any of on recognizing a sort particular, the would you And in years, there's a of the the have could allocation, changed, a cash-generating would that be It's one support move Thank thinking just of would share dividend type appreciated. capability few you move how a be Board since more it's about that sense if in decision. sort

Mike Covey

acquisition through tried it. the We it, period of word to the confidence in sustainable. that to largely bit the more we That's strong a Well. or backs always property use estate same I us is really events have sense. certainly the really we -- market dividend foresee. synergy of expected. expectations that exceeded increases don't have make real lowering are Deltic a recent strong than the and better that market. to on dividend, We've In that the there, sustainable had given And And we either on lumber want done a that suspending think go didn't we've a really

to confidence that low-risk projects, a those a and well is point modest have, Products the the by vagaries think market. balance dividend we're the great we raising by are I and higher The a cash the Idaho stronger would recovery with cedar financial of a is lumber can exceptional. be with thought. of be, Wood especially thing, a is of that's to return are tended been the And made think difference. step-wise, that substantiated come supported And that crisis the strength really point we'd we that's the since proposition things dividend But business. increase today that those that. a The sustainable business to. market pretty I amount couple The I one the gaining has we'd be go think sawlog can that price than there part on

Jerry Richards

underlying add think seen X.X, for thing only of Mike if said where the about that back years. demand are We've over does, headed. pretty Repair/remodel lot positive, to the would strong. fundamental I is you next are starts remains to starts just incredibly a people Mark, forecasting the story lumber are few X.X, markets what The heading housing are

a demand bullish got base on, we've outlook pretty case. lumber generally So

there's said, lot Mike hard not investments. of to As to over And a right mill. mill And make done. years takes a new it of those thousand now. to it up capacity It's a to of $XXX, build two get new costing construction it's see people stepping kinds

a favorable outlook on we have lumber. So fundamental,

Mark Weintraub

All makes sense. Thank you.

the follow-up XXX mentioned, included had you million that little to noted one million the might in gave booked. how X% quick when then, XXX shipments Just million. a too, XXX you have on included already handy? that, that's X%, the of shipped you up lumber, much plus effectively XXX Roughly million been that plus you And number have

Jerry Richards

file. combination also of Yeah. plus still and that's a Mark. And million the But about have order to-date. handy, ship XX that feet. priced That's in I

Mark Weintraub

Okay. Thank you.

Jerry Richards

Mark. All right,

Operator

next Our line James. the from comes question Raymond Horne with of Buck

line open. Your is

Buck Horne

lot Thank Thanks lot on, comment question here. a guys, you. Hey. quite a

you a itself? to little buyers and How bit. what's the files? the of order of it's right now this and wanted I inventories more buyers, of at it. resolves need of lumber on year? in do inventories, chain state standoff selling think a robust I months? supply you anticipation of plays can of season to to be of see moment extended you some next the mentioned going And think guys trend the any with homebuilding a couple how spec-ed that, a very in think further color little for or supply do kind ahead that, out how to just these above you just maybe do you between maybe going the probably chain sellers there a And restock additional little over next Is if add you've repair/remodel in the dive you're spring the terms see in think maybe

Mike Covey

Buck. That's Yeah. great a question

a step inventories you at in And it, is when view chain is of are inventory of view. meet $XXX, immediate the think selling not to that ordering it levels levels. people want we're would for low makes to and our about our you when who do People that. So, overbuild lot thousand. just There's supply their sense were needs, a to $XXX who kind relatively back want

there's every weather their seasonal depleted fourth almost come existing weakness year quarter in and they very get low that and as so wintry prices demand tend lumber you slows, off to the off. inventories tends come construction knowing into And to levels, to for

especially floor, think. inventories order living off lumber most from There speak, now supply prices today, think as is probably the chain. find of are low price throughout Pine. we very taking the we are So, mills And be discovery. sky files lengthy will are when price Southern we There discovery in were Yellow place high. Prices starting to

six they weeks, going coming have pretty going and looks it's you're will continue step strength next eight mentioned, in build to inventories to then year resi to see between to have pretty you R&R. this which over plus are dealers next the like weeks. continued mentioned, season, strong Mike the strong And as to month, next up year. so R&R to continue those the in orders, be And indicated going FEA homebuilder Both new and think XX% housing spectacular, new be starts, markets support

step have out quarter. should support get going pricing. inventories to that And in view help we first the to and that back industry So, are into our dealers as rebuild is

Buck Horne

you that. helpful. was I That's really you get so idea [ph]. the to for much That’s hoping Thank

Mike Covey

Sure.

Buck Horne

And fourth diesel going margins -- sequentially? timber third mind fuel moving from keep or are that or on from anything things terms harvesting maybe also gears switch should it's items Whether the around could maybe that quarter? cost we that harvesting affect the to harvesting -- side. of any Are else in there quarter in margins to

Eric Cremers

No.

is because largest our the of harvesting perhaps year bit lower several but I And for cost -- not Log a been little lot of relatively They suppose. a a year-over-year. inflationary our are timberlands Our flat item creep, we of This There's call and business it there. lower hauling, Haul. years bit our movement prices are costs prices, for have and those now. diesel little

Buck Horne

Okay. Got Thanks, it. Perfect. guys.

Mike Covey

you. Thank

Operator

question John Bank Babcock America. the with comes next Our of line from of

is now line Your open.

John Babcock

my taking for questions. Thanks

Just there? that expecting else actually wanted there movement the to volumes largely quickly solid just follow-up on that and from XQ, I into anything the is to Timberland mindful be was or seasonal, segment. is you're the XQ wondering,

Mike Covey

we Yeah. The you our have XX% Idaho there, our the index we in And about of is as John, probably real big business. price six-week of recall lag. effect sawlogs a about on

pretty That on a move would sawlogs QX to be on significant Idaho the have factor side. other price we big So, QX.

John Babcock

I about I than pricing. wondering more was volumes guess

Mike Covey

Yeah.

it's in just So volumes, of down. seasonally terms

So at X.X and million. tons year. of a we've in lighter part million range X.X X.X just guided seasonally And of the we a were it's to QX, million

other we conditions is thing most the for year. part the pretty favorable early in harvest had The

make able going year as were that lower do that's we year harvest not our planned of and said, complete to probably a And the So, disruption volume than recall, be largely the early quarter. you into will this to going we're harvest that in the up. get a role. we've fourth That COVID part plays large our Southern we occurred expect that

John Babcock

Does just December? the then dividend. on Am correctly? And that in is quickly remembering Board I Okay. the that meet,

Mike Covey

meet Board yes. early The does December, in

John Babcock

the to land whether the sense timberlands sale? any land just large then, real Could that have was this be excluding estate And there. that the you wondering, Okay. will in I EBITDA Minnesota upcoming just still as quarter, last question. give up you with sale

Jerry Richards

estate that be land for Will up EBITDA sale? excluding real

Mike Covey

No, no overall.

lumber decline that shipment is no. is, sale and we've and will outweigh mean, on the transaction's EBITDA So, that $XX where a both that on particular about a the about, sequentially I sale the short and decline talked effect we million harvest the the volume price what have side. was answer situation lumber

John Babcock

Okay. had. Thank all That’s you. I

Mike Covey

Thanks.

Operator

Our next from Mamtora Ketan question comes BMO. with

line Your open. is now

Ketan Mamtora

what Is it there in you. impact be Thank said could may terms also sort you basis, know high I a there of times a if the of couple kind from double net drag northern it frame you a single a guess Jerry, Can offsetting QX up in on of its this way be? directionally of sawlog I it, of is low sort density. on substantially. hazard digits digits? prices, will to

Eric Cremers

Yes.

our is going September Ketan, we out of QX. to we in density fourth a X%. QX. X%, prices be we in high quarter. in get about Eric. versus is really It's bit work to be XX% But about Northern particularly And the importantly, expect favor lumber So there to little in more QX this saw into Yes, that our as are drag sawlog prices going up those

Ketan Mamtora

of the And or the density? this is net is density this without

Eric Cremers

net This the of is density.

Ketan Mamtora

Got Net it. the of density.

Eric Cremers

That's X-X, XX% X-X.

Ketan Mamtora

Thank you. all. I have it. done Got it

Operator

Jerry there At now no showing call the more this I'm back questions. over Richards. I'll time, to turn are

Jerry Richards

of forward you, day call. right. appreciate All Thank Lindsay. next the And and the rest the questions I interest catching Available our on for look PotlatchDeltic. quarter's earnings everybody's modeling certainly, detailed in up to

Operator

today's concludes call. This conference

You may now disconnect.

PotlatchDeltic (PCH) 27 Oct 202020 Q3 Earnings call transcript