PCH - Earnings call transcript Q1 2021 | PotlatchDeltic Corporation

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Operator

Good morning. My name is Celine and I will be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic First Quarter 2021 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. Instructions]. [Operator like call now to turn to would over the Mr. I Financial Vice opening President Richards, Officer and Jerry Chief for remarks. Sir, you may proceed.

Jerry Richards

Thank PotlatchDeltic's first and welcome earnings morning, call. you. conference quarter Good XXXX to

Cremers, SEC a on slides, our PotlatchDeltic's This call and will statements. in in warning forward-looking concerning filings associated review contain me on our Joining is press call President Chief release, the Executive the risks and Officer. the statements the Please with Eric forward-looking the presentation reconciliation will at some non-GAAP I'll over statements. be Also, and on these now then, call cover that found note with quarter results can of our please the I comments, first and for measures our outlook. www.potlatchdeltic.com. our to website Eric turn

Eric Cremers

and to first morning XXXX, is performance saying in of well All three good our which is of last year The $XXX financial third an performance. the the consecutive quarter was lot EBITDA start, business million you performed given incredible units off a our quarter. everyone. in year. of Well, our financial is record extraordinary thank which quarter Consolidated

in first Our Wood as in record segment generated amount of earned year. million in Products all first quarter the as Products last quarter. it put much of that $XXX in the nearly To Wood EBITDA a perspective, did

of and effects despite needs employees by Our lingering on focused COVID extreme the did an excellent challenges presented safely, South weather remain our customers pandemic. job meeting and winter in the

industry. which are the Our sawlog contracts, Indexed being in our Timberland quarterly the added Idaho also a record. The segments of value performance highlights was EBITDA $XX million sales unique by

of mitigating conditions good record remain Southern and Our team weather did volumes. effects Idaho harvest levels logging job to prices capture that took extreme on near team of advantage our a the winter favorable

And Estate done and lot still surge approximately million Arkansas, strong in QX, magnificent also XX% raised has team a job sale. residential in completing Valley our sold land and rural development rural as demand segment in our prices remains capitalizing we Estate the community In Little acreage. a Real along Our XX with a residential Rock, lots for in $X Real demand for robust. commercial Idaho, on Chenal quarter had master-planned

team creating to XX rural XX sale of Our XX in year expect $X about for and million lots multiples these we at that sell small price is lots to about a for the size acres of about is timber underlying value. this

for year. underbuildings set demand in expect of level housing above record rates, the Financial permits seasonally On we massive of fundamentals the million X.X Crisis, robust housing is ahead, a historically to mortgage expectations strong. X.X Great and about X.X increased just consensus by adjusted million Looking annual very March, their starts level, low for entering basis over was homes home on is above remain XXXX. years. a which housing units, well buying inventories the which stage low prime U.S. million of millennials remained the units units sale, macro Total since highest June will since for

which the signals Key and units. Harvard the which Housing commentary X.X grow. also foreseeable the may is for the active Crisis. Absent Financial include Index, stronger of high and This quarter. Market is average, its Great on foreseeable play XX all is significant Remodeling to and levels drop Center that expected role, evidenced now in to drivers than single-family and has housing the increasing production to in is The industry also recent Box what challenging of mortgage stated Home demand lumber moderate of home the to high Homebuilders recently Joint season work-from-home hit to cause into trend. in imagine in years future. shortage a of stock, Positive expected the homes around and future. the despite which Mac increase supply we demand Truck COVID from levels age lumber the Studies, historically equity, and to and Freddie the or lumber levels head catch point, at first a as to remodel It U.S. for repair highest has the very remaining demand rail about resurgence, transportation Depot for Big bottlenecks include to These stores by housing produce South. up lumber since Association could first home of like particularly Lowe's, a a the that the grown at rates million that remain remain will On market, prices lumber low XX% it U.S. construction demand. been suggests new National factors hard inventories represents continue

to situated Our beyond. continue of lumber for to leverage remainder to strong is drive XXXX and strategy perfectly financial the performance

board shareholders our at for consider beyond a share We're current priority. per to This occurs year. dividend remains $X.XX Turning typically positioned to discussion December each board cash meeting our capital top allocation, to of annual per our distributions returning well year.

and and PotlatchDeltic take comments, and climate-related analysis. and my increasing discuss industry governance. well responsible allocation to strong responsibility our leader capital disclosures expanded publish value. current acquiring sheet the PotlatchDeltic our sequestration, Our wrap-up combination weeks, as strategy to and us favorable governance the report million second our solid To very management Mills, of coming carbon positioned continue fundamentals X We're forest Jerry? and Jerry is our about $XXX Scope provide in to to information areas. shareholder prudent liquidity is storage we a add and positions in consider turn mills will or a which to our accretive to greenhouse additional our near environmental, of operating environmental a We're interested two in committed platform acquisitions. excited social gases, sustainable outlook. over and we're and first strong or of Timberlands, and existing it results of I'll liquidity advantage quarter to in investments balance social

Jerry Richards

acre we Thank in This quarter. you, million the Starting to is Page quarter X with the the of third row a EBITDA the Minnesota displayed each the and color provide EBITDA the million first in Information for in quarter. is in last adjusted $XXX quarter, fourth than on lower quarter increased our higher the Slides from and generated the first Timberlands set fourth months. slides, volumes, fourth seasonally in first $XX through more increased review the over I'll from we million on million land a effect have lumber record, XX EBITDA adjusted quarter segments to now prices The lower Eric. $XX in XX,XXX results. of have lumber segment's offset sale more of segment our completed shipments. X. new EBITDA The operating $XXX the and million quarterly of X quarter that $XXX harvest

North and volume Northern to in than Our harvest the we of fourth harvested prices Indexed the heavier tons were quarter. team timing lower ton markets the This prices of good on compared per mostly price on tons in leveraged conditions quarter the and to the is the Higher of a effects sawlog higher fourth X% quarter. basis in offset strong XXX,XXX volume. the seasonally sawlogs sawlogs in first price. logging the the XXX,XXX negative quarter record resets sawlog first that

were indexed and harvested Spring of January first with In prices mid-March recent sawlog the breakup shipments example, onset as seized For the tons quarter. in were prices in lumber South, at right the XXX,XXX their surging. point lowest we

in Timberlands As Eric February. by shortfall the our good winter really weather up Southern mentioned, extreme a making job team caused did of most

lower X% were prices sawlog to mix. seasonally first compared lower quarter, Southern Our fourth to the quarter in volumes hardwood in the primarily due the

and first a to Products for quarterly Turning quarter. fourth This is million increased adjusted new EBITDA on Wood million record the X, the from segment. Slides in EBITDA $XXX in to the quarter X $XX

per the Our $XXX average it's to increased at month. quarter. lumber in prices X,XXX our board to quarter first context, in the feet realization To XX% board lumber provide X,XXX feet price helpful look by fourth per $XXX from

$XXX quarter board hit Arkansas in XXX winter realizations shipments lumber the to to feet three at We $XXX to production million feet and per board due fourth our in January $XXX XXX X,XXX in in February. in February that from the to sawmills quarter. week first feet decreased of lost price storm the Texas increased a million Lumber Arkansas board from in average March. Our and

fixed We affected Higher also our Idaho hours had planned log maintenance in costs production cost downtime during negatively absorption. quarter. The the affected also lower margins. indexed Mills

was $XX million Estate Real million to fourth on the quarter. the quarter, adjusted in Moving XX to Slides in compared XX, the segment's first and EBITDA $XX

availability on includes our of the not a during As Slide million. Shifting $XX undrawn Minnesota $XXX We repurchase first acre million. cash revolver. financial on amount included are any XX,XXX This a transaction total which for quarter million liquidity increased as to summarized well to as quarter. nearly $XXX XX, items did reminder, our fourth shares

statement have As reflects a shares includes at a ability included cash value in the focused which Timberland the first and broader reminder, part are attractive increasing that capital operations excludes development quarter. estate over a were of the as flow we to our acquisitions. This plan strategy place. expenditures allocation Capital just XXbX-X $XX I commitment on our Note million and real repurchase long-term. in amount shareholder from mentioned on in prices expenditures, our cash

outlook XXXX. to We the total be will million $XX capital continue acquisitions expenditures high excluding level are expect I'll in Slide comments. on The provide presented details XX. in our some that now of to range million, $XX

We segments our due planned the expect in second X.X to quarter. seasonally North to million in Timberland are Harvest be harvest Spring tons breakup. lower X.X million in to the to volumes

lumber prices are four higher is sawlog prices mill. depending quarter Northern volumes second to South prices. comparable to be expected A increase first Harvest in in three the file the to and to on quarter. due to expect sawlog We weeks currently sawlog primarily indexed order the

lumber but Our second our in than XX% is thus shipped not average higher prices quarter, orders first yet quarter booked lumber far price. including approximately the

price a there lot Estate, approximately quarter. the as to in X,XXX Valley We expect we the XX rural strong. second pause recent million Chenal XXX second approximately a the reminder, approximately quarter EBITDA XXX equals But Real board in X,XXX for acres land lumber lots sell be will basis. million digest $XX annual of an lumber quarter. in foot to million on consolidated $XX demand of purchases. a to builders second Shifting of remains Lot feet per to plan us ship board As change in and

year. expect XXX continue lots sell We to for approximately to the

the the second provided Additional than accruals real estate related our results. slide. due to details expected bonus to to strong be is the Corporate on higher typical in primarily level expense are quarter

to For the year, we be expect $XX to corporate $XX million. million expense

would which approximately rate be consecutive We the company. XX% second Overall, first we full-year. the also We establish for for on bullish Q&A. quarter quarterly those higher fourth integrated in consolidated that concludes and growing EBITDA a to tax continue industry are expect than Celine, remain the fundamentals. record the will the quarter and our like quarter, will anticipate our adjusted be well positioned second long-term. very total we prices operating to fundamentals. now call We're open model with believe to our That we'd remarks. value And the shareholder new prepared over lumber to aligned leverage

Operator

Instructions]. [Operator you. Thank

with first We question coming line Mamtora Markets. BMO Capital have the our from of Ketan

is line Your open.

Ketan Mamtora

the afternoon you. start-off good board, remarks alluded or different table dividend. with you tier more beyond Maybe your the helpful? these but kind special you a in quarter. on be And is are recognizing it Congrats a the Eric, perhaps kind mean, distributions, will I Good morning, on allocation thoughts before dividend, first thinking regular of don't prepared like you of are distributions about as dividend, capital over what variable jump options to probably two any very it there. want think around you your a Thank priorities. to the about question, strong

Eric Cremers

Yes.

QX. the surely I a important morning including you on dividend share of depending an in XXXX, issue. history we've a increased sustainable since basis, slowly basis that We've increase but dividend Yes, on So Ketan, where recent got XX% over good guess, time, upon the a or raising X.X% is our per are. afternoon, dividend and

So cart board. We're strategy we is get with and our the Slow mindful just to let the sustainable horse here. not ahead we're very to employ beginning of want those have to that here. conversations

it's the So all we'll But the premature bit to it's with that along in that certainly, dividend exploring a might allocation look opportunities we capital later as what probably like year. other little something have. be increase

a still to determined. guess to question, I of So answer it's be your little bit

Ketan Mamtora

Understood.

or considering So that, a characterization? special is variable the then things is But this point, of at it a a dividend increase like, about in kind that say of fair you're still way not fair to it dividend? regular kind dividend. an thinking Is

Eric Cremers

but The making may increase think amount we're wouldn't say we're going that now notion to it. right our than of No. of I steady to in don't -- also would earnings the a I about extraordinary distribution, into have dividend, used exploring a to far. I force that larger us the go REIT we're dividend to. we're

year. So the into our it's still gotten And in those discussions with haven't board. we early really yet

it's to So how say going it's too soon play to out.

Ketan Mamtora

cushion? think may cash a given Eric kind think sort times less how prices is the And of unique there of we're than positioning kind with be your to way levered. of are do about I cash levered times want what you is already or Jerry prices, in just X.X cushion to Understood. of the you having mean, you about a Idaho lumber of QX, strong log half that and times, extraordinary by kind build? you end obviously How

Jerry Richards

Good This Ketan. is Jerry. afternoon,

of terms balance in one cash mean, as we a manage you I fairly sheet to So tend conservatively. cushion know, the

year aren't happen And good, certainly creates does said specific just balance value. were buying your can opportunity. to business capital that And cash shares fortunately, a over having strong shares ago we cushion cycle. full normally to conditions cash panicked kicked as COVID. Now, a to had that to Eric want us March, opportunities, But, shareholder generation gear well in it what enough actively to to markets like sort tends that, take prices, with a is go allowed we're cash opportunities question, sure any buy higher we we answer make that very a about mentioned, priorities accumulating you that through these when beyond of of into drive when sheet like we hold we allocation that belong that that lumber advantage haven't to would suite and opportunistically hold think of really

$XXX base something million. million, $XXX a it's well not that's certainly there's level, below So that probably is

Ketan Mamtora

Understood.

that's Okay, sawmills? versus buy thinking change of in helpful. any build then And there is kind around for

Eric Cremers

true capacity or we Well, discrete mills, Greenfield time it option. years And improve economics it tend projects construction, our in costs, yield, historically look existing those frankly, or mill that's at whether our projects capital to grade from Ketan, they spending the costs mill, production X,XXX the have lower than In of get on time. to and therefore built. the to returns new are current and XXX higher two takes it to around Greenfield more bucks, attractive environment, of about build increase a

So a in addition, staffing and there's there are lengthy start-up curve. challenges,

think to your So go our make about is improvements proven mills. Greenfield the route a for think the of we're going to successful and that's But I answer and to idea preference risk incremental frankly, explore to question, continue our us mill. existing very to low

Ketan Mamtora

Got it.

customers this Eric, if potentially asking your are what at that produce and were on to same year it? could remain So sawmills the same, -- is your if demand you strong, it for

Eric Cremers

--? what mills terms produce say of or you of volume in kind When

Ketan Mamtora

volume. in Yes, of terms sorry. Yes,

Eric Cremers

you'll this that and other impacts this million at a I But had like probably that Arkansas a with impacted having last which of the over X% shipments range events upon volumes to I long know to shipments haul, things Ketan capital great storm X% we per that X% about, We've from feet. big we're here set got us our hand, X% hit like million to increasing weather think projects hit production and of But X%. in we year to We're year to feet. COVID a years about from compared COVID. several the production is timing us year, Well, increase anywhere lapping this looking I X%. think it's got XX in depending going last Last Texas, on be year, we're year, X% or don't now over year the that. X% increase this XX news. history see back just the that Yes, about not and just

Ketan Mamtora

queue. rest very Got year. the jump of I'll in helpful. it, the for Good back the luck

Jerry Richards

Thanks.

Eric Cremers

Thanks.

Operator

with line question coming John the Merrill next have from of We America of our Lynch. Babcock Bank

line is open. Your

Unidentified Analyst

is Hi, Babcock for everyone. John today. [ph] here This sitting Staphos

the year. the the rest Just kind to of of discussion returning outlook for on

Just expect quarter? in lumber on your current balance of were to of the end view how play market wanted get at take the relatedly the in the of the you versus kind right to And then inventories out the are year. they the channel how how of now

Eric Cremers

first, one inventories that the which rock I'll is are at levels. answer second bottom absolute

about town in My levels. XXX low fence Just, are had down incredibly drive of construction to But miles guy in. you it's blue tell backyard. find posts fence can incredible. to my anyway, story new the it landscape put I a to inventories outside

So QX order prices point. mentioned, QX lumber back continued this XX% and first to they're the on at stretched based to late your weeks. May have our prices question prices prices, shipments have files couple increase our to-date And lumber as of about frankly Jerry in included into last part than the higher on of

spot I finished to compared today are where think prices QX. we maybe XX% up our

So -- new are expected strong reporting for for for wood need going that full-year record segments. that to and indicators, remain remodel homes the home both full-year demand the those Builders they're to And to sales. build and repair market they're homes.

field mentioned, addition, In historically inventories levels. low as remain lumber just I at

a increase foreseeable prices So cause the large we mortgage correct just resurgence rates COVID as in in could to what unexpected hard lumber or it's future. in talked about imagine to

board demand billion their year. be last billion just feet their And demand to raised feet higher. is X.X it's forecast. March in now forecast to their lumber In than fact, board compared RCI America expected X.X by That XXXX April North

about of realm the full-year RCI forecasts in unprecedented of doesn't seem we're out and for to average here realistic. recent price prices think just we $X,XXX So territory

Operator

coming We of have our the next Weintraub Mark Global. with question from Seaport line

Your line is open.

Mark Weintraub

CEO Eric, Thank great sure on I'm role a here. you. you enjoying the Congrats quarter. are

Timberland months? So six, acquisition last pipeline on and the whether give there's pipeline been in change any color XX us you can some the firstly, the in seeing you're what

Eric Cremers

in out little in couldn't to going of somebody as can South Yes, paid last Mark. a we we're the it's more we're kick at one looking missed done, going quarter, two of But very first so determine one the And be bit opportunities will the those willing a hear price. COVID, we're more we one how travel remains be pick And five it and unless to creates of would than transaction creates or M&A the But up. is missed that quarter in a Last the deals was, to assure We've will increase in right of started draw on of year. deals pay. get optimistic at one to Alabama, get you that Alabama. thing, into done, that that Each price, seen. year them of perhaps we five say were to looking we little the I different South fourth is hard tires shareholder dearth seen we market now quarter to deals what's get that we're to value. a started and was fair one do people our and line with not which and last deals about space. I starting there stuff year, at activity activity and up, things to picking in really we activity we And second now. We're Timberland value that's

Mark Weintraub

the of remarkable Are is and folks relatedly, in are of about yet change sign this the Understood. in thinking pricing any seeing lumber Timberlands there U.S. kind run you way in any

when any translating timber to might higher as color if and/or thoughts your happen? and that South in on particular into pricing

Eric Cremers

Yes, Mark.

recedes. flat event, South, weather up prices in every they have for or buck maybe over maybe mill startup there's time been there's those a So a And log prices just but two, decade now. kicks it the that quickly a a

be obviously I across any for to no what could South or change? more there think So -- we need that to needs change of U.S. that do that in tension capacity in price we're We the time. logs When measurable the seeing cause could period

put inventories. pressure to more South on timber

I will is in four yet into the the And mill every increase I South to five that think construction, that five they going another another eat peak inventories timber data the sure, four there so in more up or continue they're suggests to years. steel see timber there's for more supposed still which South But year. years, that to for inventory. not for won't peak

that the the a little huge at in in South be could how So time, That $XX And that's and price for the huge, a long going of you I sawlogs South. bit new maybe But can disparity, $XXX to point pressure. gap. have continue just sawlogs a there think in Pacific capacity Northwest. is drive in a to

we're So to tension answer change years. price five and South, question in they'll I guess your in start four maybe the seeing not any is or

Mark Weintraub

then part pretty like first changing much the seeing discount is Timberland been? And rates anything what on to obviously, Are that levels timber. or not Great. you're had for in seeing that, they price similar Timberland valuations themselves, or

Eric Cremers

that's would prices I a is, not over timberland hasn't where history lot. really probably been look you if the Southern changing about of a changed an majority decade whole X,XXX, And it's activity Mark. the consistent last which Yes, X,XXX acre the with at prices, lot. of the is say

really So ground. wind at bucks are evaluating to people you you up ways of based do It's acre. same I and about XX EBITDA of different the thinking math, think that X,XXX on the an XX don't the acre per

Mark Weintraub

it. the coming Good appreciate Great, luck for quarter.

Eric Cremers

Thanks.

Operator

coming next with our question Kurt Yinger have D. of Davidson. line A. We from the

line Your is open.

Kurt Yinger

schedule. of last if to ground some to there. think started make the of year factor to the in you've volumes, seems it kind like I get in But kind QX, flattish QX guide, looks of harvest little bit year it pointing ran you like versus you a up we So ahead got

this about, what that plan stage? maybe So how could of about going harvest talk impact kind just at you're And forward? you thinking might full-year factors the

Jerry Richards

Kurt. morning, good Yes,

to saying; X tons markets of million noted, harvest we and And by about conditions favorable QX. as levels, had Idaho, a still you we plan I'll in full-year year. for terms the ahead start we got bit harvest in So in good

a good to the off Idaho, some ground good start ultimately really made South. got we in and up So, in

your out, at we if we're Idaho out pleased X.X for look get levels lay guide X.X year-on-year. So suggest about things probably QX. the the there question I to some out harvest that our you turns were But XXX,XXX how And, million QX, one, down on at plays with million year tons, would year-on-year, to tons. to to looks the same

the go why contracts. So South really to South. is key the a of year decline that stumpage in of year, back when timing last is year And is you versus this part the reason down last

the So in push year. some later of those out

that strong window The coming COVID in year. pandemic demand in -- other kind -- the of the sawlog the the dynamic had last out is of extraordinarily was quarter; we

are bit sawlogs XXXX. higher a plan So probably than in our QX of

up is mill last pulpwood see pulpwood we due weak in that And of partial were offset more the to shortage to down a And we really this that's be ended was for year because of you'll demand year. So then year. normal guiding outages. fact, something going

being a year. think is that that So roll And there robust best X to a then harvest ends that get versus QX in suggests of level year. of you to you when an probably QX have in our year, last when pretty the which ton for up about particular, million QX you this quarter offset typically seasonal bit little

Kurt Yinger

specifically cost I pressures that. could just seeing any within And the then, of about handicapping those in That's sawlog you're And okay. calling on in guess should Idaho? from worth guess prices kind side, appreciate out. you color. we I talk that cost Products inflationary then, Wood thinking it, the impact are be remind Timberlands I Products, or for helpful higher Got about how us Wood

Eric Cremers

part. first and take I'll then Yes, the take second so Jerry will the part

transportation But On truck that I right moving. that getting pay happening through crop -- mean challenging having biggest got the produce in Wood and happens in are But summertime, it's I say and we're Usually, is find would managing the to rail on South it. now. we've year. to more increasingly now this us is when we're inflation our eye for transportation to the issues. the the and We're right earlier cost this our Products thing

would still through, been I we've able the costs got talk -- say it's that's pressure this at But our on significant, not we've those want it. Now, we're not only over got pass Jerry, cost eye real material. we've to that really -- seeing certainly it's to you point. about And

Jerry Richards

Yes.

bet. You

Eric Cremers

Log prices?

Jerry Richards

$XXX in And in prices QX, in mean our Idaho reported good of put provided terms we prices Timberland prices QX. So log cost pressure, that of with moving running about context, log from kind at insights we I $XXX log ton really on and segment were just ton Idaho. to per in a and year-ago whereas up there in

part in about Idaho important of our modeling that kind And other is XX% of from harvest volume defects. give you a into no of our equation. complex, of the the goes will standpoint the kind that price that proportion provides the part So so of the

both have sides you now that So of equation.

standpoint. pretty lift a significant cost from it's a So

only we're that of complex line. keep certainly and so Timberlands segment those our XX% another The from these mind high the again is that price there bottom important to go XX% to logs in thing the have is benefiting to dropped in

Kurt Yinger

great. Great,

you some Okay. my talk forward? about of dynamics if B.C., last out could coming right Western significance think [ph] there the Yes, and what All some you other to see any of market about I Pine could and anecdotes further one, out Yellow of Canada guess then Southern have products going that guess just for the as shifting and substitute I started I for that's kind helpful. a guess

Eric Cremers

builders Western premium those all premium. That's a pick-up. to that a From mill SPF have Recently starts with we're and building trade Pine really high to bit substitute observation Pine. historical an usually closures the your getting B.C. when a correct. I to Western the But is Southern in tends with happened think to SPF Yellow Yes, trading of Pine. now months Southern Yellow a and in at activity standpoint, kind Yellow causing prices Those of is Southern anomaly. summer North at West up are into the spring

So and as surprise this it probably as Southern should Yellow no as Pine's reach really come to has is ever far been anybody.

If again whatever the the $XX $XXX, you back think South in ton and compared about like to the North a $XXX in logs those West. to getting

XX, -- SPF Southern North XX%. production American Lumber over now has past from a gone increased gone to from producing has of which XX% from XX%. market regions XX% has all up the years XX% now production down is way as B.C. percent share to Western Meanwhile course roughly the of XX

yes Yellow than expect territory in frankly moving the continue. previously it Southern I and the farther slowly to So trend across has with is that Pine country

Kurt Yinger

it, good luck got QX the All appreciate right. for details Got here that. guys. in Thanks it. I and

Eric Cremers

Thanks.

Jerry Richards

Thanks.

Operator

our have of Horne from James. the Buck line coming with Raymond question next We

Your is open. line

Buck Horne

Hey, thanks good morning guys.

quarter. just Understanding terms maybe in in you for will. realizations quarter if explain just market flattish question, First fourth contracts in first versus those, course the how latency lumber it in kind color spot of what's of more the Log Indexed Northern track, the prices, happening of price they the of how the maybe Idaho re-explain for pricing your was

of terms about, of of timing think conditions how could that on contracts? lumber will does current price up how year set for realization the the how in So affect the we remainder the those

Jerry Richards

Buck. morning, Good

a reset four Idaho terms weeks in mind prices in price lag. log keep Indexed is terms of most to the So of in about on thing important the those gets

show price until form until the you that about reported price four sawlog later. when of won't lumber weeks in up So a see today,

we the a the a the of and most probably fact sawlog, that's important the in random pattern me, excuse slope then and certainly to the the take kind composite probably Idaho the links most density. So and quarter of by our of offset have thing lumber by we when thing looks line similar terms it month, or so what's the very of that's happened modeling. important in we And in

water, winter the water. pay customers in us heavier, logs more for So they're absorb don't

season. per go ton reported will price So they in that down

thing to generally keep then you bit that terms So other factor, mind the around QX about of a positive. a And density see in QX, in third cedar. headwind a is probably turns X% of the as in

a cedar three So probably that's about is sawlog normal mix times normally a sawlog. worth

the mix a it by of other cedar take all of and lumber But factor. the mix So most those kind is that of about month. price, price a kind to is lumber usually volume of lag in important reported

Buck Horne

got that consistent do maybe programmatic repurchases is very thought helpful. some last buffer place to was establish there capital XXbX-X the you it, stock that us this the allocation understand repurchases or -- an of and extra with opportunity now. level got the With to excess in for thought plan? for you cash think Got And plan stock now, in more place you

Jerry Richards

one that as take Buck. I’ll well, Yes,

Our strategy opportunistic. around share repurchase has really been more

and got As eyes to I a big got my call, mentioned, bit buying $XX the about level, per when the a price in our down we aggressively and stock started year-ago earlier share below shares.

that opportunities is to to mill a XX%. we've for for -- about, So reason at investment discount. about have of returns think And a our we generate the talked think company CapEx, on really intrinsic projects and of look view we the we discretionary tend conviction of look have certainly we what is can a it, north wide number this value strong and

So that’s pretty attractive.

You've through heard then And makes kind of certainly attractive we’re opportunities, excited I in the about how some can looking level that heard Ketan's at then dividend that and this about that. thinking and sense. call, we're earlier we're at is grow we how of shareholder the around Eric that about question opportunities M&A talk an value

I about. to think of approach. expect So that to options not we a programmatic have move a would we number And

stick is all overall goes we value as shareholder strategy can time. leg much over doing think repurchases I the And it grow which of strategy want we opportunistic back than programmatic. think we to that’s share we to is really that because as much opportunistic and to the approach suited something to will fulfill better

Operator

Quinn last have the from RBC Capital of with coming We Markets. line our question Paul

is open. Your line

Paul Quinn

at include Maybe Yes, bullish see but thanks a and on deals Eric looking very I right much currently five quarter this -- that pretty it, you're the what you're will simply lot range. tunnels? any these exactly deals start M&A, guys. with it's in Great of going the we're of that now, on to

Eric Cremers

to I but weeds, yes. down into too Paul, the get don't want

Paul Quinn

here, you're quarter? spend a confused [indiscernible] because the to $XX And little price most just mean, repurchase you allocation is any shares Okay. didn't wondering capital the in the just $XX back share over quarter mark; I then there. why I'm of around the

Jerry Richards

when Buck's Yes, of market the moves cash. certainly in down of have to it value. value today the said, I ship we're alternatives about the which we cash the I returns, we so the like NAV other cap, be sheet, that this et And good I have opportunities, end the excited et every very you mean obviously balance Paul mean creating is think have about CapEx adding it cetera. lumber goes up. and answer day, load But M&A really of, that is And all mill of back to using question no comes we at a we company, lot kinds value accumulated and to tend we very is other, cetera. to optimistic. There's the intrinsic on question

be doing aggressively cash. to well, level. took year, advantage nothing as our some last that of there's the quickly as and gained shares, So, around $XX bought proven and March And is by things we in held we kind of or

day, like to But $XX end So, comes long-term tend investor buying discount certainly type we looks of shares. steep on at our the value a the it the and today. a deep here, when again, of more to be take we view to hindsight

Paul Quinn

I the the some have approach can Okay. mean, your that, of slow, steady that And flip to of I far skis mean, you understand annual I get also ahead doing that is of dividend, peers extraordinary bullish? you'll QX also a QX have year, of record record and looked commentary the nature given obviously the the at flow and a you're warehouses off the year. your herein cash just the very it then not over to too the trying balance pointing and could given your can to but mean, I options consider on I dividend, supplemental around to would this if generate

Eric Cremers

mean, we're at a think I Paul, dividend. Yes, closer have to going to look take I the

under We're Wood dividend, that's to it's our down happen we them. or it's We're debt, got we've to it's either know, not CapEx, to as to shares shares. going And three I going as capital the proposition going different M&A, which you capital it's happen return think waste generated. really this very Products to buy hard it's As not a part unlikely us to our important we're that of to not investors going allocation, dividend, about our capital be already soon, our back anytime is. to for unless to collapse, or anytime pay levered highly way soon, it's tools

So that doesn't seem viable.

alternatives. the dividend those at it's the top So is the list. And certainly three of first

So year, we'll as get get to very the we we at announced dividend likely QX. is closely nothing be through until but the to looking move

Paul Quinn

Why this with bit mean sheet we a understand you've is reasonable that, to historical to what is that rapid that be I building cash balance is a intend the just perspective here. I on earlier little the It to up pretty cash just signal able a at in from the mean, I timing, got to sounds, balance? do rate investors

Eric Cremers

We're don't as down, go are. in volatile the decide the a to that the And than been be up, it go And culminates year board to to got things be in more I do. a to prior years. in-depth what about record XX the of as analysis we've never with can probably our this today. too. as can be company I've sure we're things of I'm for go the at move to But times, It's years. things as board we until have of I've and end am discussion we the with seen But just bullish track down. been doing we industry a volatile given this and nature as remains going board as bullish enthusiasm this in year to I expect we Well, level through energy can move we're and talking to December. decision. the really industry, wait going year to this through

Paul Quinn

enough. right, to I results. Thanks. QX look the All fair forward

Eric Cremers

Thanks.

Operator

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

Jerry Richards

participation and your this right, for as for modeling call from everybody Certainly, thank All the once you detailed Celine you, analyst interest the also conversations, questions up we here. wrap be in thank as shareholder we'll and morning. well the available

a So talk thank again, Have day, soon. good we'll and you.

Operator

for conference participating. This Thank call. concludes today's you

now disconnect. may You

PotlatchDeltic (PCH) 27 Apr 212021 Q1 Earnings call transcript