CTT - Earnings call transcript Q2 2018 | CatchMark Timber Trust Inc

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Operator

Good morning, and welcome to the CatchMark Timber Trust Second Quarter 2018 Earnings and Webcast Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Davis, Chief Financial Officer. Please go ahead.

Brian Davis

Michelle. you, Thank thank of and XXXX, joining for us three-month Good Timber you Trust review XX. CatchMark ended quarter results a period morning, June for for the second Officer am of I the Davis, Chief CatchMark. Brian Financial

Joining me President Jerry Rasor; Todd Senior venture Barag; new President Resources, institutional call of President Forest Timberlands, and with and CatchMark-led our of significant CEO, Vice Reitz; on today the are John Triple partners. T joint

are forward-looking this actual management’s could based control materially CatchMark and by cause predict statements expectations. will uncertainties These During its information results CatchMark’s are ability and that differ affected on from make beliefs available. statements. our the call, be and certain actual current risks to to or beyond forward-looking management currently will results

cause SEC, about we yesterday, I answer financial XX-Q second certain on Form questions filed XX-Q For the which release, join differences, this may are measurements to in XXXX that could reports including XXXX. August with subsequent X, that factors we annual such our information file our included XX-K our include report, Today’s you of presentation John refer Form these more to your presentation. measures. quarter earnings also posted Todd, and yesterday, and Jerry our our on filed any website, Form of is Reconciliations will after non-GAAP and

Jerry Barag. to call the over turn I Now

Jerry Barag

Good and joining morning, thank Brian. you, for Thank you us.

quarter's investment billion John at also X. with as $X.XX the ably led management Rasor, acres transition CatchMark, the where dramatically T; Timberland's in institutional a for for million investment. Resources seamless after increased entered Wright, credit venture. Timberlands That for $XXX Todd milestone our transaction July second an President was and fee-driven management CatchMark, overseeing in of venture, total have President It who due who of Triple T colleagues, partners we completed joint core responsibility our major for we Triple for by for Vice acreage has quarter consortium prime a assumed of business, our was increasing has preparing The of T the a amount into and on under X.X million a dramatically close agreement has integrating executing concert is smooth. to A Forest joint handoff. large my business. John become worked Triple The Todd the and been operations Senior just

skip performance our business investment harvest delivered a a meeting providing again our As over the solid optimize our income, Bluffs planning. We beat second joint not And harvest plan. to last time. result, provided managing venture overall flexibility carefully with results did quarter, Dawsonville year's CatchMark in strong in

results, a where we are from million EBITDA year pricing. when we year Triple in range Yesterday, succeeded $XX in generate operate raising $XX local keeping harvest results, with we higher periods given markets stumpage delayed on pulpwood better of we of prices. from September which environment Harvest future At for in management ago the strategically prices stumpage the tier could we core In and of an last the pulp basket strong XXXX guidance XXXX. from Georgia Following million attributes. and particular, Port share a through South-wide at export an near contribution same we X% to markets capture current we exceptional important made of T on time, of during properties sawmill the a helped in above to take prices harvest year our for anticipating business In expect declared quarter payable our wood second adjusted XX% log $X.XXX strong cash per the quarter, our advantage full and dividend extremely pricing. XX% top now the of in our targeting Coastal quarterly to markets also forecast, looking to operating original XXXX and acquisition plan, benefiting XX. full year's capitalizing to its above our robust Savannah. in some Situated

the with delivered result, timber total characteristics a tactical micro overall the As decisions average revenue harvest markets CatchMark's higher due increase than are Overall, operate. index, which prices the of to favorable volume. sales a the TimberMart-South and continue in stumpage as harvest sales increased helped to sales and we of percentage measurably we despite lower South-wide realized trend the

garnering for matter timberland T, can results and been pricing we on asset management were were transactions to the timberlands. in has sales We with consecutive investment a fees part the quarter management in achieved our management timberland the in exemplifies sawtimber, institutions buttressing sales, a below the during venture, the quarters. with partnering our market course this of promotes Triple $XX Lower sales six our meet with additional full in third Also slated million months the during benefits $X the which for and mitigation keeping fourth CatchMark plan. year plan first remain through credits quarters. quarter strategy high-quality capture of Bluffs. company and of in pricing, bank Dawsonville timing stuck and forecast before and from For above $XX to ton compared for distributing XXXX, to joint six of favorable million our first $X.X In operations

management, of revenue from local stockholders joint to properties of harvest grow second successful the additional timberlands X%, current of news per the the site reduced fit million within as partners. this Bluffs increased outstanding premier Through than sales under compared million The bank T. share by of years. acquisitions was for timberland million the increase quarter a they joint next assets. primarily recognized XX, which approximately Dawsonville venture, the income highlights the of our among investment of closed the generated over time, ownership of delivered performance-based of We unlock With $X.X In portfolio we long-term of highly million these advance for the the March exploring million our acres credits. X,XXX incurred gained an as the fee though in mitigation tons ownership Triple to XXXX. resulted quarter asset XXXX. a compared purposely sales million June as partner acquisition in during culminating benefits gross also sold from generated index, precursor we on equity year-over-year. Dawsonville in specific in Triple highest paid We productive of well XX,XXX million even the we're as fees volume decade million dividend adjusted of total, $XX strategies of by to transactions, brand our harvest sustainable industry deliver us from an control That revenues to like innovative transaction, was $X.XXX asset business, acreage $XX.X capable quarter various including long-term second year blue-chip significant as a highly transactions. management operating a projected quality investors Coastal timberlands harvest fees-based X.X past potentially Triple including loss prime timber assembling acres already to management five on an We largest forecast and XXXX. T, We of in the $XX.X from We net income. million, of transaction entered XX big ton our the to for Triple large-scale In X.X from institutional $X.X T And EBITDA stockholders. investment. pulling to completed month the efforts – We in value is but to significantly a quarter, building we raise of from compared through retaining $XX Timberlands GAAP of Bluffs CatchMark million tripled X%. management year reviewing not for venture quarter contracted CatchMark one results. criteria The a support basis, into performance $XX.X and scale second And million profile should improvement of investors last diversification we manager to of XX% only with institutional ago, realized allowed increase the expanded market to XXXX. volume these the the targeted second outstanding industry, investment T These $X.X significant our the a and our X% group a Now over Georgia. sales agreement and a $XXX,XXX a in up approximately consummate in the more primarily

T Triple quarter, term multi-draw $XX the the under During on the fund fund remainder $XXX after we million the to second deposit million million the X, XXXX close And we on the $XXX quarter, just earnest in T. down borrowed drew facility to on our investment July money of facility Triple the transaction. that same of

credit we and borrowing interest we availability, additional to within maturities to on intend and that of XX, capacity had XXXX under As balance million of maintain $XX.X million of To to ongoing a cash strategy, access July this facility. had and $XXX the critical XXXX, amended growth days. a to we and facility adjusting process managing is our acquisitions new debt expense. XX debt expect by underway, term reducing well XX loan future support close This

including we and slow, seeking active appear pipeline for pursuit to our be selling in diversify with harvest expect into managers and pressing favorable future. acquisition expect we we what a remain to operations opportunities Northwest. leading that will While means the robust quality properties, of the offerings transactions, to be to expand in TIMO investors Pacific activity liquidity,

portfolio that also Going with of performance. very to growth since focus all and our our deliberate deals and undertaken acreage durable providing XXXX. on assessment standards continue of to forward, meet intend for we light considerable a We've prime in review

In five doubled CatchMark size to in the over T, otherwise years. has addition Triple past

moving term. As portfolio assessment, we process, long structure optimize this of for with result are reallocation diversity portfolio a strategically support the forward to capital our and seeking a

begin strategy executing to six next We months. over this the upon three will look to

markets of U.S. remainder for the our the outlook For the timber the year, in

export Basket, environment Timber full with suggest a and line including steady plan. in our South year expectations markets,

continue of markets. advantage opportunities better of some for to take We pricing well-positioned our in micro

solid well. running markets mills in the pulp online all and are with particular Our

full recent trend XXXX supply. updating and just and economy levels performance Going venture of this keeping pent-up joint highs, T of Bluffs and record $XX forward, the mill for adjusted are we're expansions half strong asset first prices help company balance prices. housing million to Lumbers our but remodel guidance. inventory year housing, well of activity Southern starts venture, expectations the to account, are off million our healthy previously. strong all remain the line into growth. new results, now A into repair the mill and surged demand joint above the versus at Taking the meanwhile, reduce $XX activity markets newer Triple from should Dawsonville management year, we Based million solid anticipate EBITDA $XX on $XX million fees for with

respect liquidation continue in scenario. with $XXX volumes, our joint venture allocations position. have loss guidance, anticipate our with of and or result and on losses on sales based $XXX harvest mix full we adjusted will a CatchMark's of prior from forecast. also They harvest hypothetical these In on expect to no joint have the the We to impact line GAAP million to million total GAAP, company's venture. investment With no as will impact liquidity accordance they land a EBITDA, net equal are T year the loss expected cash to Triple in other

investment sum strategy to acquisition our exceeding plan full strategy. our strategy, and by our business executing original up, executing our by management by is executing So operating year on on CatchMark model. our focus and markets delivering the carefully wood and We sales take advantage delivered tailored plans, harvest which excellence on our we maintain operational of managed in which through premium operate on

fee-based expand to by promotes. allows supporting investments timberland our platform revenues, long-term for portfolio quality up well our investment provide our business to performance-based as and our returns the sustainable us stockholders, acquiring available growth including highest debt. to continue We the as additional operating scale including management ensure and And

the and planning strategy John forward and team, and Dawsonville excellent results. CatchMark how the the the in extremely set We and during Brian, about provide much and this we And led me, performance. meeting going continue now to Brain, returns just company ahead. I the can progress Texas, prepared promise our ongoing the bit comments. tell for capitalize that know you, by in The registering future you Todd quarter We quite is being Todd, T objectives by a take in John understand Triple the are on least for larger strategy of T the foundation see want Bluffs my additional at of sound And the what's integrating and call. of end months the I immediate will time I look to to excited Triple someone particularly going transaction. transaction. on Thank will there. to everybody is on and John road, questions. on spending the That's your

directly. T So John is all answer of going questions the to Triple

Operator

[Operator The Collin Mings comes of James. go Instructions] Please first Raymond question from ahead.

Collin Mings

strength just core from? the in that operations through that $X additional to guidance guidance, To just there start was leading revision? you million? the But was, $X can Dawsonville. total some million. raised the walk T? Is on that coming million that's us to is again, of EBITDA Where too is of just revised adjusted $X Triple Or the to range directly attributable that

Jerry Barag

guidance Good driven Bluffs harvest will morning by guidance the guidance as is really and XX%. volume We're our to transaction, up as The fees. as is to revision high-quality as Collin. management asset Dawsonville relates Triple which still sales. other relates to land XX% be a being receiving Yes. plan it it range on T well Guidance

Collin Mings

the then And on Okay. starting, T. first question Triple just

you little what announced. first possible of think actual was your about it you discuss contribution kind that than there? just indicated a JV, you maybe to as Just it's changed when Can less

Jerry Barag

Brian to you that. want take

Brian Davis

Sure, certainly.

loan, came to term million standpoint in ended seven raised preferred $XXX.X So really We of term equity. loan from facility from million funding stack capital the year million, a it for and $XXX reflection was a flex-down under up the million $XXX $XXX that in.

So just of the at that time tag was a the closing.

Todd Reitz

had on we that optimized investors the Collin, that interest, to we investors, CatchMark's to it bring take additional additional to and So, other from invest. down And $XXX position investment felt capital million

Collin Mings

Okay.

those what just liquidity making the along T then it the additional some like you're But for hand, Brian, as million. on maybe right kind it around then new loan. capacity And sits just acquisition capacity closed, on kind maybe $XXX should term your between And like practical with view and activity cash Okay. currently? of Triple progress we sounds of sounds debt lines, the a

term to capacity sit currently, additional loan? of capacity as hope where that external So result kind new does or where and the do that growth bring to acquisitions you a for of

Brian Davis

we'll is we're refinancing, that multi-draw currently our yes, standpoint so We of question and me under million from solve facility, for that million. let answer other the – So have $XXX you. the with term acquisition just outstanding facility what doing $XXX and then size our loan or

alluded to Ultimately, bring current million that down $XXX million. the us tier going As a plus The That's anticipated XX savings $XX is loan. pricing our that be executing $XXX term relative facility be to Jerry million That term we're about on X.XX. about point LIBOR under will year to to, to multi-draw million outstanding to pricing loan. under seven facility. rightsize $XXX basis that we'll

million facility end So us of multi-draw under million a term revolving million what our plus $XXX loan, under $XXX available up outstanding that availability million line you having new giving is credit. under $XX $XX

under plus our having opportunities. blended So would million, of for From on in the credit what our million we million hand. We that deploying $XX standpoint interest flux is would $XXX aggregate, we of feel $XX capital given expense very current $XX of up to million up another comfortable our deployment, especially end right facilities. availability cash

Collin Mings

like obviously, opportunities. and the at some Okay. back Jerry, I'll potential But it it that capital queue. looking one, recycling And in turn then last one and to over you're sounds point, jump

still kind of You the portfolio. remarks, in the at growing alluded looking to prepared

you sits and LOI if us So just under update on anything else currently? where the you pipeline have can

Jerry Barag

IPO we've since had think transaction has on. of lot was on itself growth in as T there of five the that us. – question lot And transaction a there going a prepared been capital-intensive and a lot for focus your ago. a the of question Brian previous addition I so is to then Yes, going And to here. your said and years in Triple the I is what's large remarks, Triple Obviously, a T of in

to is position said believe So what sit that that's growth, going we're today time there do. can we've together, on while We the because simulate backwards have this down pipeline the that it that for long slowing go-forward such well, The a the bigger to get improve how and we when down performed that today. over, upon. want think so do done to right all that we feel also than be they because some and and to a acquisitions that. to pace hard good and has could it we're on we the if put part very And that, we of I time. recycle But is basis, planning we're proud understand fundamentally we've purposely, that would a a what – a are going of been pipeline is wanted look we is we and to, We're everything capital. lot and it take portfolio not very

bunch So in potential we it. move that's And small smaller particular deals, we've is transaction a pipeline of of one events, – small think, forward that and that and brought will have a that then capital number the spend. number very I very variables circled of with. There capital to given on likewise, a they

Collin Mings

I Okay, it the turn I get Thanks will queue. guys. over back and

Jerry Barag

Thanks Collin.

Operator

Rodgers Baird. Dave comes go Please ahead. The next of question from

Dave Rodgers

morning. T Brian, the ask good Hey, accretion. about I wanted Triple to

CAD transaction to guys and accretion able Dawsonville been talked through? on contribution close how the you is all that's from an give going flow the of can now But to and the you kind TTT have the you to that EBITDA. about what Now update us

Brian Davis

range, the Dave. additional funding talked of management X% It's some to about, we morning, less going I still by asset offset same which Triple we're fixed, funded million CAD of this because be But CAD in to execute is to of Good by quarter. It's should be the that funding swaps million fixed the performance. G&A. XX% through accretion $XXX fee, slightly with X% debt. relative closer or floating. XX% $XXX coming because X% the million We'll to predominantly, with $XXX we really had accretion rate it end of range, debt, we T the we're to note, will prefinancing Right.

rates range, back in the bit, they're While announced May. a target which little moved still we around within have

closer X% less the to with we're because So end range, funding debt.

Dave Rodgers

long for And helpful. maybe look production Jerry, you've is if portfolio, portfolio can this? of you both is you basis, done year-over-year? to job where And the kind sawtimber at much of on on then for pulpwood either do That’s you. pricing weighted the How Todd pricing at or advantageous for looked where more maybe a portfolio shifting as the average a core you just basis and good

Todd Reitz

the on about our south board performing questions. appreciate timber-wide when you coastal lot operate Todd. it the you Sure, well operations around – performing a well Davis, it's think very in, we I the at from south we've When look CatchMark are across the markets touched strengths perspective, of above a averages.

and to that you additional week, in seeing Recently overall be in proximity the in had from be of there's holdings. out marketplace capital very coastal other placement. our nice the coming an we're the products course is there's in we're seeing market very pulp, are which opportunities additional some coming to active All week We're well. of GP, encouraged moving capital very customers from continue exports. some early those So where by what the in this to announcement area There'll announcements from facility coming in place. additional month during the an or is

pulled really and our that us have about of we're planning backstop it better back, days so ahead. nice take that to going And decision a to very there thoughtful forward, forward. are positioned advantage our We're harvest gives to going

can good this harvest going So we spot maintain are where and we're a forward. we feel like in

As markets improve as will well. that improve, we with

Jerry Barag

Yes.

doing mean, I T, places the the large probably we're Triple – in Dave we're where So not of we're overwhelmingly business, owners but large. with exception land

always for we is the us available places opportunity business just expand going to the for – on doing we long that expand operations than a today. time to And in to get until that us be so are significantly there is the opportunity today. larger we're And

Dave Rodgers

the early like Thanks. you're on And days kind update. Jerry, on sounds then, portfolio, strategy that. of It

should without the company potentially you the much, we size present? it shrinking pushing too anticipate when Or through would the just mostly of these be recycling So activities? capital opportunities

Jerry Barag

likely down and with will free And be debt. it's would company. pay Yes, we'll mean, But of I the up the growth we happens, cash. that will more it'll mean, likely when that recycling. presumably it forward initially, acquisitions trajectory grace I availability, and continue than

Dave Rodgers

Okay. Last question, Jerry.

terms that Southeast of kind that channels discussions industries, you and Just picture the you do of could in tariff positively either come negatively kind particular on could and that Are impact an you have have thoughts in – that? in other guys seen across ongoing your of through or or your your there hear update? any guys overall table your that the we've the business, business impact in

Jerry Barag

are quite the but to positioned on. I And a a particular to markets, been is feels well I very and the that big think on to especially in is bit in capacity going impact it we've into on lumber just coming long know recovery before, mean, south is what pace in, Todd that a right markets. impact, marketplace. after these the of very still that's going the But real. going not it of it we're overall to coming time is which in which all take on facilities touched period, those switches little the is just It's fundamentally, tangible, measurable in the we have turn

Dave Rodgers

Okay. you. Thank

Jerry Barag

Dave. Thanks

operator? question, Next

Operator

comes Please next of Sanghera Markets. Charan RBC from The Capital ahead. question go

Charan Sanghera

guys. morning, Good

in portfolio recycling on question reallocation. the a the Just capital

a Just bit little talk in geographies which U.S. can the about you

be favorable of shifting? feel South versus that and kind more are might less you favorable you where

Jerry Barag

breaks period fairly the Yes. U.S. kind so of map I – mean a Everybody the for [indiscernible] quite time. been of of we've

we differently. are little not a that markets of five differently, calculate the in bit U.S. We've identified what out markets but essentially all XX down South

Southwestern desirable would which one, South Mid-State be markets. the which probably in Coastal Louisiana, four that Mid-State North Carolina, Louisiana, currently And then in, Coastal are and invested for think We're two we're Carolina. investment. Eastern not Western Georgia, is Georgia, to we are Texas which of South those, fifth Texas, invested

And so respect with in financial most within Texas acquired opportunities – there of that I the Texas structure the interact we and million effectively acquired all X to in think because The opportunity just ways obvious acres recycling. around today. acreage doesn't the that, we – with over fact is different are that in that have different of Louisiana

but And may we've so Again, transaction what a T probably up that opportunity one and is of just look take property, market, done. first one because an at. good great the be the to there Triple

Charan Sanghera

All right, understood.

competitor a had You U.S. talk about

Have South well? benefit seen log you China increasing. that exports as guys from sorry. in any yes, Log activity –

Todd Reitz

Chinese indicator been more month-over-month well. seeing expand has into volume off tell is Right, been basin can we've Savannah that they've of there. our is key New of operate at and with they're any takeaway primarily right Year. strength to good I consistent inland, you And no able now, very look in primarily the they're growth And numbers two customers as over When there, This the headed. that's right, the really coming where China for you understood. which a that seen Todd. market We nice overall that

very everybody business. work they're their back with to steady that and tells you now so And got being

in seeing pricing and the changes activity we're any been not major level so And good. has

Charan Sanghera

more producers a confidence on saw capacity of of a up We capacity? you gives of the trend kind especially sawtimber expansion, capacity, fiber should some opposite Naturally, and more with saw theoretical are taking What view It's high-level that kind question. costs. Georgia. lumber especially prices – the Okay. in lumber lumber this

Todd Reitz

Right.

biggest seven and two-year to there. with as going XXXX mills going those it, back another, to coming is levels years begin that come driver. capacity your be be call be So these that's it, forward, steady. online, they were, start even call on, to to Housing turn see you not process ago. as where on going as And mills you're still the And we at come moving six, begin to the in

So be dynamics. fundamental there's feel your back going to able be demand And still capitalize on confident and then which we play to supply will growth into that. very that some we'll right there,

Charan Sanghera

me, from guys. it That’s Thanks. Okay.

Todd Reitz

Thank you.

Operator

of question James. Raymond Instructions] Please ahead. go The [Operator Mings Collin next comes from

Collin Mings

Thanks.

a guess, I me, just follow-ups log go first, U.S. far pricing from and Dave's commentary want to some as question in of I to back the the the Just few as

would quantify South. you're log Todd, Maybe can months? XX you next just the how update in about six over for Just pricing upside to internally U.S. thinking us, how you that the

South?

Todd Reitz

Sure. I mean, to we've going got – fluctuations markets. micro various have between again, you're

some consistent sits forward. housing going steady opportunities. as an ownership in as growth, end will be those. together. And as steady back to believe a I proximity taking forward the overall our have and to a a in bit play you if plan to pricing, basis But comes hockey two users, no will. strongest confidence, those be going on with Where have we capacity with in is things capital truly our these the marry we the relationships plan begins forward. market, Really it on you steady jumps on, feel real We're stick it's movement, But see as so We're opportunities like as of really type And we a the basis, your another which coastal there. been advantage if at create you being market see facilities, announcements, these the up said that give in go confidence forward. those seeing look it for of really a us wholesale or improvement to a little continue we prepared of backstop, added lot earlier, behind an placed enterprise-wide,

Collin Mings

then months or over thinking kind upside so? maybe of a about we fair? thinking are Is you maybe the guys – type about XX internally, should be low it how next a that single-digit low of So

Todd Reitz

the Yes, But consistent. cards be is XX% – see key would being I that'd and XX% We say that well running in mean, I just to on right a is love very that view – that would good mills not it. would that to everybody jump. The are now. be

delivered being end. on very a anticipation manage bombarded moving with that be kind on quotas issues. start and be program that improvement. to of able our So more to And able produce see they're we're not to forward. would us provides basis we'll – a The and steady their of years those some be to couple volume mean, you landowner the back to to get consistent and I steady out, wood value

Collin Mings

as either John And Todd, Okay. then or I you, this guess well. for is

context of given log curious that translated near-term either here, months. pushback the decline customers last pricing? that pricing volumes Has of sort in broader lumber in here Just any or terms in just from over the of X.X just in outlook,

Todd Reitz

No.

We of as of fact, interact producers that. any as of have Matter not inventories. with There of several the heavy they're they're moving inventory talking drop with at through we normal just it looking with, in overhang experienced wasn't a a seasonal wholesalers.

trend anticipate, consistent So in now you're off they're even that above we able market. and still running fully they And to come well, that, it highs, well we're at while line. – yes, if we're of really stay record

market feeling moving. they're So the in it. feel and within strength about else And housing their we business the good everything

of will knowing recent data confidence and point one a that, you've million, or still there side, that annual out a being base was would that, $X.X seasonal at end capital lot in the the that. all on continue placed. you There's month-over-month, line which belief will, be got with drop around consumer of is if to it While announcements their number that expectations. And

ahead feel we're good we truly are too. in a feel spot right better So like now, days

Collin Mings

picture Okay. guess, up and you. I to then, I for two, I And questions bigger want had do Jerry, back

Just a while think and Northwest, in make Pacific obviously, comments to in about about the Northwest. potential the for that as opportunities talked Pacific reference you pipeline now the

team that have Northwest? a timeline is Just Or do this far internally just as at capital and in having that the presence again, the market, operating you thinking Pacific we about the kind you of review as guys terms juncture? as you might to of internally how and coming Just some that the a the under in are sit of and here recycling opportunity context the the be of – now broader

Jerry Barag

five give say that's we after to And be we case. probably probably I'd the that you when going years, take something, Collin, some. eventually it Well, guess that,

done I that point long-term And that for T and timeline months through the a And transactions – We necessary for cycle instance, on we the a they put working to themselves we for it it's the assured how growth that fairly something have take. when horizon But Triple transactions. XX things well be is do are really especially those things. this get took at we in announce as you to can planning so But company, those be great. together. going pace these it it, that when think our all

Collin Mings

particular circled. a kind that is reasonable of Maybe from it in chance a Is one Okay. different angle, fair transaction might that that in like there is the you to think be Pacific sounds have it a there Northwest?

Jerry Barag

Yes.

Collin Mings

in on been moving there's particular as as opening far just your All what kind again, particularly bigger And government it's contemplate harvest on front, you want And region? more a I as that just as right. again again, the an to for are picture, as Okay. standpoint the west tied chatter industry activity. industry, far take up that more land. just Jerry, a kind of hearing into you off of back then from

Jerry Barag

doing they is there it a a little – Northwest. out it lot – sales I that of think government that they're overly Pacific and best when that one, have is But program still memory Rasor there fickle it's going is be. bit sale it's the – of conjecture two, land land the how And again, slack. of timberland the of because I'm because institutional a the sales producers dependent would I the provide really could government the time to little number the that And and on ask some government what John feedback timber the us a produces in well, it the is much phone, right we've But insight slack. to heard and on number – was in about all an wary and happens sales think getting give – he he into as program qualified this, had to jump or because probably uniquely Yes. last John big government

properly, Pacific think a the as whole I the could and properly, well there as do think you industry executed positive opportunity for executed Western it great So be a net the timber is Northwest I to for be John, it and industry. State a lumber have opinion?

John Rasor

addition every that activity has be incremental. to from case, on be it's going may while, comments, loud there yes, some would pushback almost the clear. in I around pretty would my in been there you the said and been say what it single Jerry, environmental view community And while some, that be that your has Yes, to

Collin Mings

Okay, got That it. sounds better.

be that logs both it the there's it if sounds of actually But way, not your a market be going for it done a perspective? on positive to into the reality, was could sounds any sort together, – flood of the your of like taking measured in overall margin, again in comments inventory So like of industry. from

John Rasor

No.

Brian Davis

unlikely. Yes,

Collin Mings

from Yes. just is the And me. John, this question and then, last –

to the is Maybe how just renegotiations. as the maybe while the near-term Just and the for supply process process on potential it some of kind been entity. there leadership on just us has you're Triple I obviously of update near-term and transfer the mean, agreement kind of us outlines on the line, that goals what integration of T just goals. update are just obviously, There's integration of relates going.

John Rasor

Sure.

logging on plus and with We're the of to how day first the our going across XX Over with customers be we're on the Let ownership. both in our capacity. working operations, rate run now – day It's The to prepared the me property. delivering transition we start the it's one. contacted ramping to well. crews going. were are up logs business And

and accounting so well recognize doing And multi-week as They've business with job. met And property was job, transition of a management Consultants, T. and Triple an go difference really manager want FRC, Resource as of a effort, to is our huge well our key all of who It done IT it a made of outstanding as we've that I tremendous positioned All here providers. well. third-party all to know customers, our our the Ahead key support in logging are systems closing, service contractors place in terms of we're going has. you lead at as also and forward property is here. Forest

at for to As to our rate, customer given customers. time, on responsible that sides certainly improvements our then about talking first be of is both discussions through supplier or could or about changes of that. of order to some appropriate benefit the – potential the And any supply business changes, run we had be we'll have But we our straight have some where agreement could agreement.

Collin Mings

morning. for it, All this And John. the appreciate right, color I guys you thank

John Rasor

thanks Great, Collin.

Operator

This over for concludes the turn conference would any closing I Jerry our remarks. session. to now like question-and-answer back Barag to

Jerry Barag

for everybody, we visit months. being us again, this Thanks And will three with you in with another morning.

Operator

conference The you now presentation. today's Thank for has concluded. attending

disconnect. may now You

CatchMark Timber Trust (CTT) 3 Aug 182018 Q2 Earnings call transcript