PCH - Earnings call transcript Q4 2021 | PotlatchDeltic Corporation

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Operator

Good morning. My name is Emma and I will be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic Fourth Quarter 2021 Conference Call. All lines have been placed on mute to prevent any background noise. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After [Operator you. Instructions] Thank the like to now would call to I turn over Mr. Jerry Richards, remarks. opening Officer Financial Vice President and Chief for Sir, you may proceed.

Jerry Richards

quarter And Emma. to morning you conference everyone. Thank PotlatchDeltic Good fourth XXXX earnings call. welcome

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

Eric Cremers

just $XXX and is two EBITDA the be pandemic. Thank of record full the year would flexibility, and the you, adjusted possible employees in set our year. focus of our results, not without Jerry, performance million shattered starting tribute to last resilience, of continued That with we year a performance

rated was XXXX. a $XXX XXXX Company record context, EBITDA a segment of the adjusted entire million Company EBITDA the than Our Products Productss earn Wood and XXXX to XXXX consolidated general in that in put record Wood more did time. in at

at Ola year, two nobody sawmills. was for our free of profits included by mills where outstanding. time billion Three Ola, top under also were quarter in significantly Key just was during severity injuries and months X our the at shipped damage milestones front, year production and it board, of sawmill injured anniversaries Furthermore, We a costs the the Thankfully employee's on record the lost the year Waldo will On the large a once XXXX, all Restarting, without we our and is were our safety budget completed processing our incident and and over all before. during at of lumber. feet operational are capital safety projects of Bemidji and performance achieved We than cash our year. priority. Arkansas about in virtually higher the injury third and fire XXXX. lower logline property volume the Still. rate covered low mill disappointed have insurance. restarts, Company recordable

Indexed, $XXX XXXX, harvest million Timberland Idaho. related our Our $X segment of year, record prices effect shipments the of hit in which record during harvest margin levels our low EBITDA ton decline adjusted Idaho plan. despite million south, the Ola in and pulpwood than a falling of sawlog short in generated volume in offset more deferrals the

the of adjusted side over per business, $XX estate EBITDA of segment Our in acre. XXXX at generated just sold we the real rural $X,XXX on million approximately XX,XXX

Our rural sales to excellent value. opportunities create that an job continues identifying team do

a lots team's to tribute are to strong commercial valley the side development Lot on start our community in completed rock, and master in is focus to XXX which business, a creating our the little plan estate sale demand. in residential sales sold of meet On real a inventory strong Chenal XXXX, off we we our residential during lot year.

of to dividend the special share Turning a $X $XXX year. equal our for shareholders available paid in million of December. We to capital distribution we allocation, XX% for XXXX cash distributed in to per

increase business per accretive completion fourth a in We quarter regular an dollar basis. the acquisitions. of fourth successful both We dividend the and committed share XX quarter bullishness large sustainably. increased to regular reflects in remain our dividend the also Timberland to dividend on annual X.X% growing the The

Timberlands highly rural XX well for high greater deals of portfolio. in Timberlands addition average attractive to of levels an The debt. our above acres in are whereby are acquisitions, approximately transaction an rural Timber Timberland per $X.X acre, age just XX,XXX closed both over assumption well $XXX Average quality, XX tons the a than stocking and years million The X.XX of of norm. XX was a are acquired a year fourth and tons million. bolt-on with free age quarter per stocked even shares the years, an million assuming age four of roughly aggregate Timber land tax south in Typical we consideration of merger the Timberlands XX acre, Speaking we for XX the growing largest Northern to Southern and of Company of Southern Louisiana Arkansas metrics cycle for and average and XX management. in Timber

of million after We at providing $X.X the of EBITDA the XXXX realize ownership expect of had average the dividend. years XX nearly yield. paying first an We million over the of appealing annual liquidity cash end special $XXX to

special large also the leverage of Our Timber dividend. reeds, the remains despite our lowest

as Our a XXXX. for consider additional challenges, difficulty had consistently has two investments and growth, now that demand in I supply solid transportation existing on thoughts chain DC absenteeism platform the and expectations last we financial our acquisitions a COVID for provides continued some years. our meeting will strength mills. lumber over accretive provide stressed,

board as tight are back large housing we underpin this year. set the exceptional prices by finish strong that continue millennial lumber and a view, A increased due X.X believe than homes for Both lumber adjusted nearly the boom. not shortage averages we starts level be thousand As units million And reported lengths. demographic building seasonally a represent robust. sustainable X.X through million increase above basis. housing statistics be moderate for in supply lumber result, multiyear do as permits expect a we remain to dollars milestones random term higher to and will thousand a notable to feet continue December. structurally demand average on were full and cohort, Having prices lumber We year at to in to a prices long XXXX. prices a U.S our to move units were should housing fundamentals strong per that believe said up of

a buyers effect smaller to offset their markets housing remote effect of given and expect entry home housing caused released segment rates, will mortgage affordability, will higher durability single rates. levers a home home Mac Interestingly, moderate higher will mortgage rising houses XXXX. may market sale. by rates rates the and work given to on Fred housing concessions builder of the homes for tight remain that the costly price or examples pace have just predicting level monitoring and stable that the are week, forecast last remain the less mitigate They affordability issues factors that of in builders of family to migration shortage We mortgage increases higher of that due

remodel And predicting repair in home joint study XX% XXXX. for in and published years we last in age and growth now the of repair growth. us home an housing the Factors on the is and center in growth supporting that continued X% which include work stock, segment receipt In remodel expectation housing from that is the of high trend equity, R&R levels Harvard week, increase average. expect XX XXXX. segment the spend We will

report reporting, in plan annual we to third Regarding environmental, publish governance social ESG May. and our

ESG I publish continue and high provide very wrap balance We are our climate a now fourth to to To legacy my will well advantage September. sheet up of take and to story PotlatchDeltic liquidity over value. website strong discuss the is and our we favorable it our part and in and as change our across to to to also plan ESG seek flexibility do to quarter of responsibility degree results a committed developing comments, positioned carbon we and we industry PotlatchDeltic report climate outlook. a shareholder turn mitigate ESG fundamentals and full strong are maximize Jerry of section spectrum. our a has of

Jerry Richards

lumber we quarter, harvested be our we for were in $XXX In segments on the seasonally lower the Thank in you, on This prices the third the well operating as with one in our prices prices X.X decline to south, four than million Idaho million of page harvest provide EBITDA Eric seasonally index adjusted occurred sawlog and quarter, the of Timberland quarter heavier in fourth higher third I'll of X% in hard, lower $XX as review effect starting volumes each the the first quarter. as sawlogs Cedar XX% slides quarter now sawlog and until largely a Because volume solid the that the reflects fourth lower indexed. on from results. quarter. the prices start higher the million. we December reset sawlog fourth harvested just fourth quarter, seasonally indexed quarter prices the XXX,XXX the to in EBITDA our harvest This In a $XX in sawlogs is for million won't harvested compared the ton month seven. our Southern in $XX segments amount tons of shortfall that tons worked log third minimize segment the slides was lower five down the our the logs. and in third displayed through million from per quarter, fourth Information tons more lag compared north fourth in decrease XXX,XXX the reflected to quarter. year. Timberland in was under reflects for of the prices on prices fourth quarter. team our in quarter. the third the quarter the The is adjusted decreased basis Northern the

sawlog Southern X% prices Our the compared were third to quarter. fourth in the quarter lower

last to to expected pine return dried sawlog sawlog on discussed out conditions once or normal quarter's levels. we call, moderate sawlog As mill prices -- inventories mill more sawlog and

Sorry.

eight $XX the million Turning was adjusted fourth in to million slides to quarter EBITDA what quarter. the third products in on nine $XX and compared

board fourth third thousand X% in from board the feet feet $XXX per quarter. per price realization $XXX lumber average the Our thousand in quarter to increased

of percentage order increases the for lumber account shifted composite comparable the basis, price to framing lengths, on the when length a Our to files. our composite is random

quarter, and the million feet Our a from October quarter to board each $XXX on in the COVID increased in average during fourth fourth prices feet in $XXX absenteeism decreased lumber November production. December. $XXX in the million a were quarter. price thousand Lumber drag third XXX lumber per our feet realizations was board month XXX board in shipments

plywood the all-time prices well in negative variants quarter. The delivered and plywood in third on primarily business performed for the record profitability. at XXXX and exceptionally of high residuals after Our an page peaking in decline eight slides, panels

adjusted million real in are Arkansas. quarter. plan summarized little exceeded items, land Chenal in and slightly community third of to sales sales residential Shifting XX, $XX financial rock on XX. estate Higher which in the million $X lot was slightly master quarter slides, from valley fourth fewer the XX on Moving closings segments slide the EBITDA in our rural to

as well revolver. Our strong at on million. This total $XXX our nearly includes as undrawn $XXX liquidity million cash, availability amount remains of

Speaking of extended a revolver XXXX. in February maturity its XX, to we December,

We strong size also facility debt million of XXXX, capital. reduced our the We in our the reducing $XXX,XXX. of approximately available mature spends balance sheet of $XX annual scheduled to December plentiful given $XXX million, interests to refinanced and

in we merger We medium million million January. also in repaid maturity December $X.X the did of notes quarter. Loutre any and assumed at during in $X the shares We not the debt, term fourth repurchase of

just included and from discussed. place. our $XX.X XXbX-X which reflects As Capital Note million repurchase expenditures, are ability excludes and includes mentioned development the and shares were that prices. amount in statement in plan expenditures a that estate reminder, fourth the operations we I our the Timberland flow commitment quarter. to cash have at Eric acquisitions a cash in attractive our real This

a adjustment now slide XX. are I some high approximately mostly of details taxes. also to fourth lower The $X million level presented We quarter, in favorable outlook the income state on tax will income recorded reflect comments.

run fourth after tons, to of first expect the expect the curve tons in million first significantly harvest our volumes prices, is approximately prices higher first reflecting in to startup sawlog in Arkansas us comparable price the seasonally, expect the XXXX. Harvest quarter, the ship Ola X.X X sawlog index to are XXX We quarter, in sawlog volumes The quarter, board to is we plan million sometime We the annual the about prices we quarter, lumber in primarily north be in rate our in billion volume XXX south increase relative plan just mix. the harvest expected quarter. to with in sawmill our south, X.X Northern fewer are X.X in volume XXXX. behind Timberland to board first to decline to lumber. will XX% segment in and over increase due in harvest seasonally of million XXXX, we hardwood to planned sawlog lumber to feet In the ship feet decrease to the

related with uncertainty Our estimates absenteeism. associated reflect pandemic

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

fourth prices XX lumber are than on higher current approximately quarter Our our price. average

when farm million on the interest first XXXX. fourth second, reminder, on an lower land board the payment XXXX acres in quarter expect quarter and change thousand approximately for in annual Interest slide. a real residential be over As that banks. equals us in million approximately provided the lots expenses annual EBITDA estimate Shifting the per rural we details are $XX We receive and lumber estate we third approximately will because to from $X credit in per to expense valley sell that $X for quarters million of estate, additional of $XX foot first XXX a price real our patronage XX,XXX and just consolidated quarter, of basis. the

quarters Our million by be to in estimate approximately the in $XX million like fourth excluding expect million which interest industry bullish to of fundamentals acquisitions. XX remain value. leverage primarily to model includes prices and continue rebuild expenditures we prepared capital call higher index aligned OLA, That a we well That bit to lumber are Overall, anticipate We We are quarter. total expect now to all Emma, and adjusted $XX XXXX, range to rising planned total to than quarter double the be strong log be due, growing fight on a with rates, the remarks. to those operating a insurance. the I'd fundamentals very for more positioned with lumber open integrated will our start first our first will and concludes prices. are shareholder level Q&A. we XXXX EBITDA reimbursed to

Operator

Davidson. first Your D.A. from today question Yinger comes Instructions] with [Operator Kurt

is line Your open. now

Kurt Yinger

mindful prices what wanted morning, a on is Great, side? seen negative there Like is from Jerry. I to impact Eric than I anything is, there? kind the of as you think realizing you're on recovering we through there, of good kind thanks start to be and morning, flushing potentially making should Jerry, and lower commodity just bit different the off about plywood. of price we've wanted commodity on, we touched

Eric Cremers

Yeah. Kurt.

So, prices to lumber our plywood enough, one what happened in it to, considerably to quarter lag the fourth was interestingly prices. decline quarter did about a

there drop about quarter. QX If you a that prices, was significant think lumber QX, to pretty in be

reset largely Our I it our here to bit. expectation relatively behind is from XXXX. because look And files And little held demands order plywood got pretty softened into prices think in long. QX our us. out are flat don't, we be were up things of the as is we to going QX I worst through as a prices through is

Kurt Yinger

order of any just end channel seeing big on it's trends And of then, last outlook anyway, maybe about of kind starting you Got of stock hoping about it, levels little year Okay. helpful. but term to inventory you lumber terms concerns That's what could terms slow the all? or in versus of talked longer you're the to about retailers in talk terms trending from trends, that in market bit in a think and indications how consumption shock, that box around side, at sticker, the

Eric Cremers

Yeah. Kurt.

set market the QX, we and So, bucks, we our year expect R&R continue. in XXXX as in QX got to up expect prices and remarks, rebounded then to pause a We, QX. two growth thousand, last R&R it opening in we

expectations. want pro include going down these for of expand well tell labor strong. median reasons, as a QX. living why together equity I space, centered but and strong support too reasons to DIY center new in R&R home it's you think that talked it, of to currently factors driven activity For know is lots help work you picked supply, by into would the There's market. our today the XX home years. homes, we've areas, get weeds competitive as still during is stay going up our, these, that's I to R&R. here is I are specific us takeaway, don't both QX. record solid levels, age business would people houses it us tell want home And And limited for to outdoor to about All all outpacing demand segments What the business. our to contractor we our of

you what of So centers is the we, come spring tell season. is I incremental us And for for would the gearing lumber up summer each that or program here quarter. early way with in I'd it have characterize they've they're certain supply a week, and lumber the, we And volume they a to home deliver to the XXXX. obviously asked R&R have each

So the market, market, view of strong. the from our home R&R very point it's center

Kurt Yinger

it. Got

hear. land Well the touched just that, acreage and us there, on, to on, I And in transactions guess then valuation? you Bolt-on that's you I and other geography three and, Okay. guess terms of give lastly, Timber could good Southern and, any color that

Eric Cremers

range well year, so capital They above attractive well of which all of our Well, business. and they QX real average stock deals Arkansas over were one were was were them three was in which $X,XXX our of those average, were them, in kind four very the in the on tracks our is yeah, and X.X%, so, the for relatively IRR acre they're, would in an course our, around of south. gosh, the in include in in Timberland's Mississippi. cost two of they're of They of were, over well, two small. down them them

away. our transactions negotiated like and to of We we're kind we record, deals, if one the Timberland. those low you tend bit by competitive, nichey several the like excess bidding enthusiastic, we the acquire quite we quarter. fourth is highly of We, little like kind that's, relatively returns we deals So, in at don't look got that's the where off of track one-off broad and that's were, the competitive what finding All these auctions. how we're to intensity way, big,

Operator

question Quinn from line next RBC Markets. of the comes Capital Paul Your with

open. now is line Your

Paul Quinn

much. good morning guys. Yeah. very Thanks

Just, just is the extent new capacity insurance, on to wanted to insurance of back what there be you and what's some or, then business any information expect insurance the get more and do the mill mill? when fire interruption, the the a covers Ola proceeds, and up product the

Jerry Richards

Yeah.

first take insurance part So the terms I'll that, of in coverage. of Paul,

So of at through is, a $XX expenditures. interruption property have time rebuild to CapEx around to out and the heard interruption what capital but of this end as damage, lumps business of deductible the the our business got we're you or that the we financially for coverage coverage is is losses both dollars very the interruption [indiscernible] incur a well is million and by million week kind coverage, of we year of the mismatch go bit And Certainly at, taken insurance piece and the over business deductible, well already sorting in one day as a year. the what that's small the a have come comments good. with We've through minor deductible. terms process for of we XXXX And had or expenses of fully insurance. we interruption. in covered or, the, for last about business

second that continue continue to call to perspective a occurs. positive over point, for And recoveries. it terms on special part pass as So, item at And see, the question. we'll out as the Eric you'll I'll both noise to throughout this in probably, we year, the of as, some the then, it of

Eric Cremers

Yeah.

Paul. So good morning,

speak. with startup, and, there's, having large is July, there's terms track at and take that the interaction completed steel site has going of new August in We're equipment on vendor to kind we're of log the line been in the demolition regular timeframe. we So, of as going structural the delivery in and

So we're, kind of confident a in that July, August timeframe.

We We going be going we improved tell of equipment to come XX% to inevitably think really is get hiccups what to And of lower piece the over done competitive. be mill getting XX with, Ola. I, a, through, the you a feet going think than million roughly be that are our is that like Ola. about is what when from get So up XX% starting this, pre-fire costs the I to processing incremental. recovery the, pre-fire about we're going

XXX foot in up kind So range. million year per of

to up the going Mill's is, think going to and it's kind competitiveness once of is it's we is, So really improve running. once

Paul Quinn

lots What, Okay. sales And is then pricing Are of outlook. real I versus up on they estate, higher do, the the expectation values why sales? Lots lot mean, on just just Q in better? what over at just why what, look the the market moving significantly? at,

Jerry Richards

piece Paul, primary you, it, usually combination great It's question, I'll honest of is with primary be both of and, is a with to answer the actually the it's a is, factor. but, start really mix this

what So, the quarter And there kind entry And a what we can, by you a lots, level a, more community. home, lot of that quarter. we the, fourth will. the the is mix is more if community in of were type for of lots, that were release sold do in have first we premium

you quarter can mixed a of that know see So quarter. swing

I'm last lots community. prices other talking half for We the some released released as increase increase to are around in strong. for another referred that of about prices I to, interesting, second and sold or, to lots’ continue spoken because XX of also been week we lots of look or the at, are is contract year, are for. last again, the premium price higher, XX demand under now those why when more year XXX strong these in all made and has all demand we just just nicer last as did lots, lots and available guess so XX% you

can't strong project. in our extraordinarily lots just and fast honestly we, quite enough has team, that demand develop So been

Eric Cremers

about, as XXXX. are expected of on, on lots, Paul, gives we XX we Jerry sell. that that, about so them of that any note, And thinking how indication the expected XX builders instead had went, And said, Yeah. had on you those XX to all

really real good I time a indication. think that's

Paul Quinn

Timberland still That's then over do the are on side at all for focused just change expectation south? any great. that's Okay. on you on acquisitions you on, and marketplace see in And 'XX, the for, the

Eric Cremers

I Yeah, comes to do, to here. love very we, find I, it's market inland region, to just up in we'd Paul the would, little something

are, So is it's forced liquid. of a competitive growth. And both, south deep are that played would big, now. are being rates That's deals the game right for discount the I is bottom south in People Timberland pipeline. or TMOs. number we're what at that aggressive, tell almost it's kind would where very to the Chasing, REITs to rock you unbelievably I is levels. that look it's as the, deals of days. the is, Timberland as are these And both say well there go chasing M&A

So but a market now really competitive we'll, change, if for right Timberland. it's things we'll see for,

Paul Quinn

for yet? higher expectation at fed in rates rates point the to, through, the haven't interest So back hikes hire really discount this come to

Eric Cremers

baskets, pretty it, potentially inflation And investing discount believe the you at people, assets prices to starting And higher to a I can to these so. historically been rate offset increases there's way wood you if increased real good offset look those other think has talk No, a tighten in lot hedge. Timberland in I don't rates. don't. with of log interest about days.

a play. competitive long-term tell for it Timberland, ever. that or I'll, rates they next I'll when But more it's the for today really than to happening not they buy year, really long-term, what's it's people, buy tomorrow even interest you So or

Paul Quinn

to through especially brought it just, tightening increases Do question, in price just of, up you bonus one anytime prices those, your you because what's Maybe your your expectation Timber office? the move expect sawlog Okay. up so those south. materially on soon, sawmill of or markets,

Jerry Richards

at great X% a it's Yeah, price is look year, realizations sawlog our up Southern XXXX XXXX. last you and to Paul, question, compared

that certainly log play role. So, a shortages wet and played mills weather

bit XXXX that and in to get continues I trend added that, a mind capacity south path as, occurring. up or in as now that's of kind probably tensioning XXXX to right year a the on there's expanded future forecasting see and whether, in that pricing early think in, our having mill do U.S. the we X%. moves next solid versus We as broader that, we're the another think it's are still set

Right? quite really it's, to asking. whether, we're and mix, kind turned the in wood the hard say, local but have So, optimistic. I broader beyond of baskets question like is said, south, it's things which you're

Operator

Your comes with the from Capital of BMO Markets. question line Mamtora Ketan next

line is now Your open.

Ketan Mamtora

And Thank you. good afternoon.

curious of, I seen says, was time seasonally rally just question, kind this First usually is where, we've demand at big in lumber a slow.

remain are sort of that So what it produced really inability the think lumber Is is has the that markets? key end by the seeing demand driven all you actually sort two different to or of three or produce sort -- you're drivers? more absenteeism do in at of strong mills continued all, to it, the sort of

Eric Cremers

there we've at we're to get here, shipments supply. out DC issues where, strong. the We in really, would the in fact remain it's have function to think the both strong shipment has when QX. despite then is, seen that It's transportation is, here And think so certain million that U.S it's is housing costs demand fourth look XX going starts society North is has been demand us cost in has winter the all down to a to production the months DC that volumes. lumber is, BC I the, strong up the they million equation, the pretty American of industry feet quarter. way remain flooding characterize us We of feet X certainly the Ketan, COVID with then, whole with. figures grappling issue combine the it and XX% Yeah. R&R you another so been strong, pretty if with, had an issues to and in And XX trying of, of you it impacted supply the

helped that industry. think lumber raise capacity of conspire that to in terms the But, diminishing in I to has amount think prices that's well. is, as spare I got you of the about producing this think

all longer mean, add North feet, look If all these you grow over feet board seen seen billion, stretch it And X and board rough, that seen, feet. hear million mills just the expansions, X trend, capacity Canada. a roughly you've this come X talk you've Net seen four term I term, five U.S. take new these you here up. despite year you've the billion out But roughly grow billion North consumption and roughly American at same all like five you American we've feet X year billion a about or in by all longer to

and industry. is utilization the capacity tighter in tighter getting So

Eric Cremers

there's a in whether force prices to hiccup or COVID And DC chain, absenteeism, higher. the floods it's going anytime supply it's it's,

I a, I, of situation cash a the think, their a a flow industry of finds in people is just U.S., after, underbuilding free wasn't go the for lot decade in to whole in floating industry itself invest around there So the mills. this

we're now so really demand is just with, supply to meet and strong And isn't it. left the is, there in coming

a So demand both a it's a, issue. it's a, supply really, it's and a

Ketan Mamtora

we Got for that outside are Can know it. you your going we, Ola of on a talk switching plans perspective. year? key S earlier. maybe you at this XXXX for your CapEx couple that then discussed That's has full to of, about, projects And

Eric Cremers

Yeah.

as XX% of of the are besides long Ola get all about four got a million piece We got log rebuild not those extra this about$X putting project capital really thought also we're a, it a and optimization that's can So fighting and, we've This in going those project got, new we're on mill. mill that our shape, as interesting in out Ola, enhance we we kind IRS million of We're trimer two we've our, XX% projects IRR. a in project projects. rebuilding simulator. the line. that of two to equipment. an is get plywood It's the and, dollar roughly with to performance a We've why thought, a projects? a half also patch with at mill of an automated opportunity it's putting

helpful. that hard got patch XX million the We're assembly you to It's moves chemical from roughly plywood, remove the year. repair line going right, this employees installing. get, as patch down per about not going XX, mill, which, people also it So to equipment usage that's only that automatic do labor's cut to $X.X XX new for so we're

going in that the QX So be up will to here wrap races. off is to in, and going QX project to

happen. really they're attractive we're frankly, because projects added as our that then to And investing lead into, going we're us. to capital, look to We've really behind got into year. getting projects us aren't year looking that mill This vendor that two forward for next of times well. into, they're, necessarily some Gwen So also out

other's work here trim going well, going start year project. Short-line as one's those and edger the we're a we're upgrade a, to, So an to a, replacement this on projects

So focus a year hopper, our of Ola this rebuild. the candidly the things but in really lot our, is sawmill

Ketan Mamtora

Got turn very estate. that's then it. to real helpful. That's And

development, of healthy like sort number? it like a quite seems price mentioned you of, the activity rural a side, for Chanel there's development even seems the valley bit side, about sort of in the $X,XXX you acre. very interest, You, QX, but That on oh, are and per talking

Jerry Richards

when always a than, I'll the in kind new window that I, of Then all even is prioritizing just recreation some touch find pandemic saying and is on Kate. I it, more a people, rural market factors, to demand would really but, everything of correct. combination our, wanting well. our as about, over has that rural just team start prior Yeah, that's and strong it's for been pandemic, opportunities. you space think of by than

this mix at. So way value? always our the about projects what XX is million one the the looking solar on thinking next is, create that, that things is, about, to kind of is what And there's of through after team of sell it longer specifically, sell the most QX not harvesting it I'm at those, or really where be attractive necessarily, likely we land instances could talking is, would with this's a but and term, this price. not be

So, give really overall, they as segments to, me to continue and time. examples just been evolve over of market some that have strong certain

to see obviously, we're providing yields in or look forward in in, QX So that as the really per April. price more, have acre, one color you anticipating attractive we and to

finish can we Assuming those pull the over line.

Eric Cremers

a enough, of ke down south saying inbound just for interested and had Jerry a acquired a, dozen selling we've from some add since people us. of, Loutre fielded Louisiana spoken Loutre was kind about much land. And Loutre made really and much, deal it themselves. kept phone of history this we've to rural to to not Yeah. kind we've interestingly the acreage buy And was, in north trying now what announcement, Arkansas calls, They in

going and there But up going what take what We we rural got to what deals and time, acres indication potential, that off, stratify to seeing, pent be have for sell any we rural out potential after think we're to and that not I demand a our we kind demand. no, do price we, kind said, sell about conscious and there's you we're Timberland acquisition. gives So of our in like some and we're those of of really premium meaningful we're of 'em do Jerry tracks, to then acreage, those, high, into going we like demand, slow-down we get. really an to and those extract a we but stratify, stratify, as rush

Ketan Mamtora

from And Got see stabilized pressure? far one are just under me on to prices, those it. have helpful. in one or still quick Cedar That's QX? started you they So very

Jerry Richards

the at Yeah. I, to answer short not pressure as still other bit still attractive as, been Ketan they're be important the relative significant. has the under is, history. thing decline really would prices trading a And that's but

price with if know still So, at the even we're off happy kind they're still trading they're though come still, they today. a very will, record you you of we're peak, that

Operator

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

open. line now is Your

John Babcock

quarter? EBITDA on Hey, thanks. for taking the any And out, make you where for at come out my to comments all Starting you expect thanks did questions.

Jerry Richards

of a like, peak But, feels consolidated a strong than average. on is, hit rest key kind our prices, the also on to Yeah. moving fourth spot depends comments, quarter lumber up probably double In, in out. the more hit, basis, I hit and, which, move might color in, they're touched have for compared quarter a how pricing, that XX%, provided EBITDA plays made part a, of be of and estimate. the expect very there's and, a Company the have current Obviously, is at on is, a a, they the chance bit we John, prepared a our kind QX to is end, QX

John Babcock

Okay. Got you.

on that that. clarify to the to Q guys July, four in part Q expect of should we want just up three Ola sounds Just start And Q timeframe. Q then say like the ramp up that? four the you August about next sorry, three How not

Eric Cremers

mean, in think kinks kind of kind get plan startups try worked John. get Wow. that I but our system, challenging. Xst, to out be the to operation of is to That's guidance, think the are I of early always lot I Xst it's fully January a January little these, million I, get giving to by look to starting XXXX. for by linearly at it. a going about and Xst. line to And hopefully just line. feet be August log could production to to large way you then it simple draw, XXX think That zero a at might A get

John Babcock

the million think it other minus, had, year. you and some, $XX O like about, million longer annually about, us How CapEx or in a, for profile? in have is be $XX, term course And so think a to million past, going sounds $XX of or would a we've investments. Okay. this elevated CapEx plus bit I is, the baked little couple

think would you us how kind So about that? have of

Eric Cremers

real relatively who And know, just a don't ability CapEx. depends year, lots. would $XX, our $XX that to estate million produce I runs, I our Well, $XX stable knows around, Timberlands that, say CapEx It on, do and to about? year our really high is, a it's driven from year. see varies Wood projects that then, by year. discretionary us return what we extent investments, we And really feel wood and for Productss million it's then really to It good is

because it the Ola elevated year spend. of is this think I

insurance out, normal range been going I $XX of to forward be million to to run rate I $XX that Ola. not had the were think that back had million there in would of proceeds But think you going an there, reimbursed. a get $XX kind got

Operator

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

Eric Cremers

really what Great. shareholder XX quarter, fourth a we market at start, in balance have strong or the least repair positioned double and to we value strong continue quarter, again, Company just you a with heard, him. expect to strong fundamentals housing sheet generated to time. and Q&A, XX, to well grow and fundamentals over and Thank in remodel the remain And, really you just grow reiterate, the as really

rest of you. answer Thank So thanks for day. serve and the interest your questions to the detailed modeling

Operator

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

now may disconnect. You

PotlatchDeltic (PCH) 2 Feb 222021 Q4 Earnings call transcript