CTT - Earnings call transcript Q1 2020 | CatchMark Timber Trust Inc

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Operator

Good morning, and welcome to the CatchMark Timber Trust First Quarter 2020 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note the event is being recorded.

I would like to turn the conference over to Ms. Godoy. Ursula ahead. go Please

Ursula Godoy-Arbelaez

ongoing thank Timber joining first Trust report of of and and Godoy, am review Financial Chief quarter for of a Officer the impact business-related CatchMark results on pandemic. you morning, I us Ursula for CatchMark. a XXXX COVID-XX Good for the

Timberlands. are Joining Reitz; President Rasor, and call Officer, Davis; Chief T today me the Chief Brian John of Executive on Resources Todd Triple Officer,

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

that the information subsequent cause quarterly including you on about we refer annual factors with our and report Form quarter Form XX-K for more filed differences, SEC, the to we the such XXXX first report XX-Q XXXX. our on that could reports For

Today's of questions. to in these will website. John pleased financial I our is of which any presentation, measurements measures. on After posted and Reconciliations presentation earnings release, included Brian, our be are Todd, non-GAAP answer your includes certain our

Now Davis. Executive over call Officer, I turn to Chief the Brian

Brian Davis

of for Thank XXXX of recent quarter results, our all Ursula, on team you, a XXXX result and morning. operations CatchMark's thank and guidance CatchMark's our excellent first updated discuss impacts joining On will the this us COVID-XX you events. and call as liquidity review today, provide our our

safe, work safety the our harvesting to necessary friends, of and have At and affected undertaken. associate. of that this and employees, have business of Distancing In vendors equation. given at part operations focused stay not unprecedented we us CatchMark time. field, how your materially is colleagues is of all social on our healthy been you customers, family to for distancing hope well all working begin, and during are ensure To have CatchMark, managed that

be have wood as our We to and facilitating CatchMark supply communications and to an their sales as responsive maintaining requirements in delivered our for customers agreements chain first meeting And line provide supply demand. relationships disciplined, extremely in possible edge and need. been customer frequent keeping fiber supply connectivity with chain

and us Our business model IPO, in since strategy, place put to the continue well. serve

We mill markets managing operations remain and stable demand generate flow focused to cycle. predictable owning prime on the throughout high timberlands cash business and and

cash EBITDA, a materially first increase not performance. a in increase result, substantial adjusted very expectations and strong significant a registered As CatchMark timber We exceeded operations. revenues total harvest quarter sales, COVID-XX. EBITDA are reported and year-over-year we These in and results by our from affected flow

timberland Strong superior U.S. delivered. timberlands driven volumes, markets performance and our asset by harvest mill was sales again, and Once high-quality higher fees. the in And management year-over-year

to continued above pricing well our register premiums regional South, averages.

$X.XXX yesterday, we dividend XXXX, share May of And declared a stockholders payable second on for per XX. on quarter June XX, record

our for expect the on flows of dividend from cash year. cash cover operating to the hand and We rest

have way. their sharp manufacturer, same and the impacting subject a prices volatility by in we not shocks lumber I are year, and Before for COVID-XX observations the of the some about we have our hard Manufacturers impact first the CatchMark. of to want discuss outlook quarter operations. hit Since these not in the been the demand provide to we drop remainder been overall at

not we impacted in been are curtailment directly a either, by activity. developer have We also as not so that

no volume pulpwood our model wood to demand and Our superior We U.S. pulpwood support in for see in continue drop-off targets. delivered agreements supply sales fiber harvest

XX% plan part thinning in good pulp us our mix. South of mill news this seasonal of activity, And XX% which have this markets case. for to was meet demand, to up and any plans is since our harvest adjusted was harvest our stepping

recover. a to to on no fill begun chain slowdown has orders new customers demand. has markets three based Sawtimber started supply early significant week in demand in CatchMark April, After

rebound with commercial the the the and in gradual construction. a what and expect between end We now of year market on housing based happens

completing on a We timberland for of closed the $X timberland million pipeline the second remains and transactions to date transactions to in additional sales longer complete. and are although anticipate are the of We our quarter generally have quarter. remainder the during active sales taking year, bit

is a sound, The and Triple to and fees. Company plan is past management the over operating venture we months. XX asset have the deleveraging significant undertaken thanks provides T joint to reliable liquidity

working million In addition, increase loosen we to XXX%. financial $XX capital just have completed covenants by to an or our and agreement liquidity credit amendment

no risk. economy. flow with from a maturity the of needed, cash our We noted, operations, near-term cover with year. already as expect cash or also COVID-XX the have if for And remainder hand having dividend on on profound exposure we and the to is effect to refinancing

with For particularly losing CatchMark, impacts to regard deferring the not to revenue. relate some revenue, sawtimber,

the us growing still raw cause business. in materials be essential are provide we to an and the trees forest Our

Our credit-worthy positioned working quality period. has operating markets us owning in highest with counterparties superior and on manage model to and investing mill near based the this timberlands through

is capital off us and recent ample deleveraging also Our providing liquidity. paying and redeployment

I capital the it the Ursula? but results, greater Ursula quarter Todd position first to will and to in discuss operations debt. now later, outlook turn I for over remainder want cover of year our and to

Ursula Godoy-Arbelaez

Brian. you, Thank

gain quarter million, due allocated Triple decreased over to a adjusted primarily joint increased year-over-year highlighted, with net We gain XX% XXXX. an T significant the first to over first $X.X from impact quarter, to gains venture. million, delivering We We CatchMark excellent XXXX. Brian loss As decreased a to revenues quarter million, increased from had first XX% $XX minimal COVID-XX. losses EBITDA $XX.X

XXXX. net sales million increased by and to timber to revenues EBITDA quarter by XX% revenue first to million $XX.X XX% XX% by $XX.X increased Timber to million, harvest compared increased $X.X

gains All driven U.S. these by the led volumes harvest by of were higher

by stumpage increased volumes sales. XXX,XXX nearly tons, by where to driven year-over-year South XX% opportunistic

and ventures, XXXX. including fee We first $X Dawsonville in generated Northwest Pacific in for management asset Dawsonville quarter T XX,XXX joint harvest promotes hurdle. return from tons increased tons from Bluffs Triple incentive-based Bluffs volume exceeding to million X,XXX revenues

tons lower million acres average first quarter We in inventory $X.X XXXX. million acres acre merchantable CatchMark's to XX% X,XXX stocking lower acre through $X.X from to CatchMark XX sold price reservations XX,XXX timberland mix. compared per also The portfolio sawtimber inventory XX and year-over-year from of sales retaining compared of per tons average resulted timber per a for for over tons acre level, merchantable with XXX of

of XXXX. March large $XX.X per of stockholders of $X.X the share a disposition acres, proceeds. a $X.XXX debt We and a And completed $XX.X million recognizing million dividend gain by paid to XX,XXX down paying we of million XX, record on with

reliable one CatchMark, fees largely in exceeding again, T. realized for Triple for delivered Of incentive-based promote provide Bluffs, fees quarter, the $X a revenue the from which management investment million hurdle. an largely down, during stream Dawsonville has Asset asset management

also bank joint We of mitigation with in portfolio remaining $XXX,XXX Since million quarter, investment had $X.X million end the received through in in first of April cash $XX.X the quarter. as in book a received the CatchMark end its $XX.X distributions XXXX inception basis distributions in first from of of cash Dawsonville the Bluffs, a from which venture. million its the had

first management large dispositions quarter. and Georgia multi-draw $XX.X in with by proceeds objective, in we process Deleveraging net million has continue primary completed January. term our been timberlands the on outstanding We facility debt from a paid down that the

X.Xx. to our by covenants to liquidity prior capital existing loosened amending that onset $XX first the million the increase of amendment we the facility. during by pandemic, quarter working Also or our increasing and We by just capital last and credit week, completed moved financial working

$XXX the million, amendment for future The also commitment our to credit credit fees, lowers reduced million which unused our of acquisition growth providing while investment still $XXX facility line to opportunities. ample has from liquidity

capacity our have has of not the credit facility. additional access not $XXX anticipate down revolver borrowing doing As and today, drawn under we To nearly of CatchMark so. do on million to date,

the risk no took costs. on We reduce year, we long-dated our interest low past over rates also have debt. our to And refinancing of borrowing advantage maturity or

XXXX. In of March million of cash $XX.X as addition, CatchMark had a XX, balance

under CatchMark available repurchases for end. During program. $XX.X $X.X for quarter's future the The repurchased at had million XXX,XXX company's share quarter, shares program repurchase million the

Taken altogether, manage CatchMark is and COVID-XX. to XXXX operations, recent we projected facility our fourth management our strategy, execution rate the quarter deleveraging, well positioned of believe risk capital recycling, credit interest amendment

ample. is liquidity Our

Now to I hand to over want into Todd. provide to operations, insights it greater

Todd Reitz

Ursula. Thanks,

Looking achieving relative year-over-year from CatchMark quarter pricing premiums although pricing operations, as lower at for our mill benefited first expected, timber markets. prime sales in was

the As during you may in recall, there was a first quarter weather-related spike prices XXXX.

in premium and pricing in to regional sawtimber XX% a stumpage our and realized TimberMart-South quarter a average quarter XXXX but were and premium with respectively for prices, southwide stumpage As XX% X% pulpwood lower first than XXXX, pulpwood XX% and a pulpwood and XX% decreases pricing. first sawtimber compared CatchMark X% in realized trending sawtimber averages, prices result,

wood We which under demand capitalize maintaining increased results. counterparties. volumes demand, program supply and and from opportunistically our of quarterly provide That agreements, fiber source while overall customer to delivered harvest stumpage increased sales a our creditworthy sales boosted on reliable our

see and experienced effects which We quarter, the sawtimber a of the in negative pandemic to only slowdown. very impacts the end the at of the began markets, COVID-XX concentrated significant

pulp priorities. strong plan chip help sawmills has demand seasonal stepped increasing the pulpwood supply, low advantageously Since can remained fill Pulpwood has facilities. reduced and from and our production residual void our from been to in is or up meet execute on demand with thinning harvest dovetailed

are pulpwood not in supply dropped In communication with side to and their our short, agreements sales constant meet the needs. our off we counterparties on under have

chain. In also addition, model in us the favorably our supply delivered positions wood

restart that number aligned at market housing By immense activity investment increasing and portfolios down demand, fill mid-April, way to and began market now orders for unemployment claims began short-term. with are the least demand. new sawmills and closely stock supply The chain losses of to we

and that a velocity restrictions contractors return sawtimber eased. states to most distancing indications will gauge and be demand. as social the in priority But to rebound in commercial work housing be given are seen a to in remains are It rebound particular of residential a how building

improvements are based repair we measured and optimistic well on So as activity. about renewed construction remodeling cautiously as

virus all controlled. this Of course, the further and spread how is on depends

understandably not rebuilding remained now, and sawmills For cautious to start are ready inventories.

with modifying keep be sync or delivered in continually Again, increasing least now. on strong appear connectivity We are model conditions. such to for day-to-day volatile opportunistically which a us volumes our helps our and wood to quotas, in maintain at increase mill problematic through basis, market volumes our always

back to the see to return view, in of out. Brian this it discuss all playing rest we how the I'll year With

Brian Davis

meeting our referenced, continuous indicate demand. under bolsters markets counterparties mill Todd way our and business As trending customers and with contact challenges sawtimber our just in of confidence model our in in monitoring current improvements

confidence Hurdles demanding and from lie ahead certainly unpredictability this position. But about about uncertainty almost in positive liquidity balance the course. ongoing our of We containment we the also these gained with virus must its time.

me so And address let guidance.

the over rebound of pandemic-driven of we result the for of remainder guidance assuming and a a economic our downturn part XXXX. full-year As revised the economic year, moderate have

GAAP now million We of $XX.X less timberland and between tons project between to million. and and Adjusted volumes, than X.X reduction between million, a million $XX net sales sawtimber volumes million $XX $XX $XX.X million loss of lower due million harvest to a tons, and $XX XX% X.X EBITDA million. of

Our has the volumes, for changed original derived not full-year pulpwood volumes from U.S. XXXX guidance harvest

XX% remain region, approximately XX%, which approximately U.S. in the which mix, South sawtimber remains at

Pacific approximately and the in which million. fee and Northwest. And revenue, South million $XX asset remains management $XX between XX%

pandemics dividend, and by meet our of to cash an economy, we to the on operations Despite toll on attractive cash from flow delivering hand. continue overall the expect covered fully goal

to demanding companies, we environment. compared taking considered and and team believes sum industries positioned CatchMark account other given well To up, we the many all our are have at into

business. We are an essential

EBITDA We IPO. we first quarter, strong developed a have a We had revenues and substantially our adjusted since year-over-year. model increasing and very that superior have business expanded

liquidity improved head deleveraging Our increased our COVID-XX. meet challenges the and structure, has on strategy helping of capital

remotely little the no our people operations. to all Our with working or or are disruption field in

which everyone safe, and Social most important. is is us for distancing working has remained

and Timberland and pulpwood and forest. demand nimble operating Triple the asset historically will we plan. strong to Timberland assets continue adjust demand. our management have meet remains to do continue. the not sales in value much market is Our to hold continue that fees T harvest fluctuate valuations that steady to been deliver

lost, in generating to and deferred deliver harvest expect future been maybe cash remainder to of flows attractive key dividend able not year. near-term, the being the we stockholders harvest we improve. our produce and revenues solid revenues objective Sawtimber by as meet an anticipate of predictable our assets but for durable to markets will Those the have

in of all questions, the remarkable have is June. want to move team Meeting we recognize Chairman, Before Willis CatchMark at from on the received we the Board guidance Potts, Annual us our retiring to our who from

service for distinguished the of deep also over We Moss, acknowledge appreciation June. Don Thank Don to so who years. board Willis retiring last you and all your with also XX the much, want from contributions the is in

who look our insights he Willis upon We to Director, an succeed to as the ago expect and Doug forward continue Chairman, work we and Independent with closely since that Rubenstein, also new time. retirement. will Doug directions board – years has to joined his provided valuable seven and

two Bentsen we Jim broad and and are to also want given and our valuable bring DeCosmo. Independent be We experience contributions Jim to Directors; welcome leadership, and their Board in. will times the Together, our Tim financial strengthen further Tim new industry especially

in With healthy remain hope your we this mind, now, take and all all we And questions. you safe.

Operator

of session. James. question-and-answer First Please the Raymond go begin now We'll Instructions] Collin from comes Mings ahead. [Operator question

Collin Mings

Good morning. Thanks.

Brian Davis

Good morning, Collin.

Collin Mings

environment the in market. now and operating in spotlight capital given start, uncertain To clearly are Brian, the financial right turmoil just the allocation priorities

to dividend differently. press for but about it your commitment in the strongly you thinking in your as to the change on would have remarks, release little bit touched the prepared reevaluate as maybe You to well What payout?

Brian Davis

For this, it's right. – – well, couched we've it us one, really become

surrounding recovery. of don't We measures. COVID-XX if V U uncertainties and W social know magnitude distancing a and the or or So outbreak it's duration

our liquidity having we're the from going about we're standpoint, that our flows. to taking our cash and our a business regarding be so And read impact on around

of took in timing land sawtimber of a these to has which discuss parts really volatility, and we sales. I'm look and f that are that at our more Todd Both has Q&A – we'll differences. two alluded sure the business demand, one,

so you've and model of pretty the the that. And And the regarding execution our and business grow We is associated confidence Todd good. from team business heard simple. trees is

take look to operations, performance to dividend? seeing So overall what would at the see in in material anticipating time. a a point to material not impact. That us have our our cause which a have at of would this we're reduction We have

time And from I And to is quote ultimately business volatile can liquidity we our besides time. business do management because go where out that, what on wrong teams periods we have sufficient and have a you those times through we our period of be smooth execute strategy. of to of think pay these standpoint that's

Collin Mings

here. about dividends Got it. the focus do correct just But it And given over share priorities, guidance, maybe allocation talking you be just plan outlook repurchasing the while going just in again, given wrong, to sounds active we're if the me is capital I'm reduction – the and shares like buybacks how in uncertain environment? forward current

Brian Davis

give in After it reduction, I rank about debt liquidity, that you share the dividends, this importance. and goes our in order. repurchases How of acquisition

Collin Mings

Todd, Understood. Switching across curious, you as just U.S. look gears. the

different few the and on current becoming reflect demand just are and environment wood basket? in the you in pricing variances South last more look at pronounced as months,

Todd Reitz

country in the definitely been and think years, about our over strongest of really with as we where built and you markets Really south. the the we've in really some about the talked Sure. where sit it's ownership as are in

will, able allows weather And a the will, ownership, you little to build an you better, you being to right if it purpose now. if storm so

a haven't seen whole lot So a standpoint, than of some other as price seasonal aren't really pricing you might around changes we drops from expect and really the pulpwood side. maybe anticipating

level to sawtimber then time $X component, a concerned, a this moderate course of period and you might the during out tend far that's or year. From drop the as $X see as over

think in what we where our really from. now, coming right we and as volume For is us it's about about place, have supply

we to added and you distances, will. you everything that and thinning been and of and already queued As can we we kind moving. doing production ramped have all thinning we we've some up a first from In up, those With keep additional else have had cost program, thinning haul doing some noted, got that maybe if thins things. increased

of over seeing a we've a on maybe things again, anticipate smooth to for sawtimber quarter. we of or level we the So of net in and But and out particular been the perspective, fortunate out course here. impact Really demand haven't speaking bit very these – little year. beginning from the margin

back of We place. the a very operate pre-COVID you put that at product into these in. this. completely to want you Not any by we we have time, recover, you mills range means, and where to down. to back their if any depending we'll saw go in level in come orders Since that will, never if seen order finished saw We full micro the looking inventory, be XX% reduce onset pulled XX%, production markets within but around, XX%, on are early

moving in our a have forward of we counterparties. our So strength of strength business, the of confidence lot

of maybe regions U.S. seen severe And haven't so we some the as other across as drop the

South.

Collin Mings

maybe And of just the seeing U.S. what sticking Understood. you're out with

South on effort? on positive comments there peers. log us right some some It now, from that can sounds you reemerging be export could momentum based front on update like

Brian Davis

Yes, about on talked of and little we've as absolutely. were a what segment, And bit percentage running seen will, Carolina down have there that there. coast area really had three the we you in and up Georgia, uptick if the Savannah, where again, to of that gone small South Coastal down we primarily and an it's focused previously But one. there do, operators say

them, the of little couple which as come of back we've great. demand in. tariffs has been off, producers come bit hit A seen picking When all a of and up they've from

percentage the see good there do So ownership. again, we best we're and in and it's tension again, it what that the But a based great as where small to returning. participating on see we of sits can to

Collin Mings

in turn Thank jump and back over Okay. it you. I will queue.

Brian Davis

Collin. Thanks,

Operator

Thank you.

comes Dave go Please ahead. of Rodgers question Baird. from Next

David Rodgers

guidance of what of sale weakness, maybe volatility, you that land bit terms access said see a number. that a capital that you like though morning. maybe Good kind in Yes. have for comments, doesn't even expected in to your much buyers provided, prepared the bit pricing consistency but just of is Brian, to of talk the maybe little little about guys and

maybe address a would? that So little if further you

Brian Davis

standpoint, Dave. our still Sure, seeing we're good From activity. business

quarter, talking some today as of that second the a for What Only the of a we're is quarter actually closed financed. really itself. and in and we of are pipeline good we activity. to delay million First XX% we reported in numbers still strong have on $X indicated XX% dispositions obviously have about we about our pretty

are you of And process, slowdown. some so by virtue that seeing

still working in are people business to this still The together, Typically, really wholesale retail. is real interested asset. are a deals people

that so remained active. has activity And retail

And our slightly is ever it so our issue timing, with not on an cautiousness around bringing so an associated by number issue down demand. really

David Rodgers

Okay. That's quarter, the get helpful. and there, anticipate COVID-XX any from operations you impact updated T kind And promote you as outstanding you then thoughts but the continued in there And all? really as year? obviously Triple expected structure the at volumes in of do the said any just into

Brian Davis

our agreement agreements; T the on to levels supply one Well, Triple there have under top is Paper, our supply Pacific. one volumes. with been as Georgia counterparty, activity The relates it we of two International have other with the

have at of at product our for going a continue to those remainder operating year relative very market anticipate the we've preferred as supplier or been sell We above into rate Triple T. competitive plan anticipate We for a the We a any to mills. not slowdown. and result, And prices.

David Rodgers

with thoughts? of then promote regard to and there, updated the opportunity And any structure kind

Brian Davis

to renegotiation pandemic. to Pacific weeks over the counterparty WSA. been with feel last very our we've no negotiation six is active relates We it made attributed of we've good with at the about eight the very the the dialog as Well, and slowdown to Yes. Georgia the progress in

that the discussed to acceleration like an discussion As before, joint venture the associated and Dave, associated itself. with something on moves WSA us we've closing

excited we we by where feel comfortable actions, so where actually today, those virtue we And are. to are about of

can We're through duration and if signed our with that associated ultimately, condition things the to the a nothing we of change And cautious and because have and that. run reach agreeable asset ourselves, necessary, optimism term with joint has been venture. we mutually the associated

David Rodgers

you. Okay. Great. Thank

Brian Davis

you. Thank

Operator

you. Thank

from Paul of go comes question Next ahead. Please Quinn RBC.

Paul Quinn

Yes. morning. Good guys. Thanks,

Brian Davis

Good morning, Paul.

Paul Quinn

other the just Just we've your comparables overall REIT, all report. high level, had timber questions, a

bullish guys of end You spectrum. gives What that you of level be seem the the to on confidence?

Brian Davis

really our it's from business perspective, our So Paul, model. about

part seeing I sawtimber of lot think it of we're relates some just volumes But a our same peers seeing the that one that's in of our itself. to of as business. are things

we markets put the we Again, have to, we the our in growing back top capital and go are U.S. tree in the in business

South as Northwest. as well the Pacific

our bullish that view is increasing the I And over upon so Todd weeks we've regarding of mill of think activity themselves. you talking in seen orders heard last couple results, based the actual about

and are counterparties It to put the – business. in not lot we developed development business. in the where are. capital manufacturing goes who We're back not We're the

in business comes by virtue that's our to are so of And the comes where that execute things, order confidence model. those people from from. It required our also great

Paul Quinn

XXXX? this, the Okay. And quarter. were in run close to G&A just the expected remarkably up What's in and rate

Ursula Godoy-Arbelaez

Yes. is million This G&A benefits a for our with by Good retirement quarter $X.X year. post-employment Ursula. of first question. related CEO. right really it Hi, morning. $X.X prior you're your From standpoint, the million associated the last Paul. versus I'll to about is take was that up

a so when go that going $X.X year-over-year. is what the you're the From the to looking you to And be by should cash really is for year, going G&A standpoint, anticipate number, G&A that it's flat million. gross pretty up really at

Paul Quinn

had. I Best of all That's guys. luck,

Brian Davis

Paul. Thanks, Great.

Operator

question Instructions] Collin from ahead. is Our Please follow-up Mings of Raymond next [Operator go James. a

Collin Mings

demand? bit may environment I more. just how back the you you, wanted Todd, positive sustainability Thank concerned to go as operating just of momentum couple with to specifically question of are follow-up about little over on weeks that you. just Paul's be a the there, you you discussed last sawlog for the actually discussed customers,

fall got that How just really they week a really things time of you period by where for are balance? to up bounce concerned short-lived is a and period this really, recognizing started maybe back. a things would So have

Todd Reitz

Sure.

sudden we hit, flattened examples, as really XX%. we of to all call point, out for wide it were running XXX a and and to and then by XX%, it some So then seen open where drop point, started call XX%, of we've are week your XX%, that for to growing a XX%, here back seeing it to it loads orders and this weeks if of down ease we've a call your anecdotally that, you that let's started when at seen, in all back maybe up couple begin maybe little

And so capital where on we are positioned the spent facilities. has been

mills So you efficient have are very now. operating that

You're capital beginning see placed. the to the of benefit they've

so the announcements And from XX%, maybe and XX% it we'll facilities you across there. here where call U.S. – a as while XX%, that, or on going may some down have had were or customers

applied the will. you not That's across if equally landscape,

in we will. So total you the getting mills where share or are overall their more are positioned, lion's bit customer little if of those their footprint total the land mills, production maybe for of a their

of we've from it to and And in been fact we're just we're sawmill to as again, very capitalize to, far And focused place. we orders on on customers is to that, not getting pulp all program, we've those got on a as what also tend side, XXX% positioned so side. XX% that well. well the XX% the And running able delivered the be back very, doing goes yet closer to are the frontline

right further you've taking probably seen heard know, year, have them in extended where out you not As now. the been outages they're or

you will. a to is rate So with a interruption, We're able if consistent. orders and on more fill their consistent those more run less basis little

road maybe the to little you right have orders. week as if going a weeks, it three or they're one back they to forward, Previously customers, seeing a from looking two that best. clarity, more they're in advance, hearing sawmill weeks fill. at though it's out, orders days now, it two will several feels seeing looking the we're what We're down So now to was the

So facilities. better little a They've back at hours it. about they're feeling some added their

still right their feel while in as in it, what's now, very the feel going rate other that. see overall have really and need about come with hearing front good us. We to the we happen far still there sit road as But And is we forward. good from recognize run QX that we're to and about improvements of and as to going what counterparties need all QX a long them we we we

Brian Davis

So Collin Todd. – thanks,

So from sustainability. the convention orders, and standpoint, I these that your what with about associated is Todd Collin, talking understand question no here regarding

to, associated You're markets. is We W reacting is what which is with recovery. what V, a it the asking really the activity mill react U, of can to we're type

to From the standpoint, necessary in have we put a duration place. liquidity

have We sufficient cash hand. on

active. are We

We sales. close continue to land on

We move in the pulpwood product side. continue to

to associated backbones, all our so And of with that are then associated are And nerves today. provide where with elements you model. that. the business us about combine those feel the confident we deals people execute with We very

as you about based those upon in first based comes of results right our the when you get the upon good saw – model that results. you across line business And it it may to see scrimmage, come pretty but quarter. And you and bullish, feel call the the play, you

Collin Mings

extra there. Appreciate the color

I I on think to just two points want real on follow-up quickly. that

much again from prepared remains pricing would to Just amount downtime. some given going again power pretty demand as or less the like the on and not coming maybe the but residuals solid, remarks, fewer some back side, pulpwood expect it sawmills as not there seems given – the clearly the

So maybe a just talk bit? a little little pulpwood side the about pricing on the bit dynamic

Todd Reitz

Sure, Collin.

into additional imagine, volume as ones facilities. So we're you putting moving the toward not pulp only can

and is, seeing one moving we that So forward. stable thing main And being They're would are yes, your consistent only who all of be orders price were the greater the demand being great consistent. out their counterparties. they could if

steady most it. a facilities residuals still you we with associated that where something from some Therefore, that stud So may would where is forward additional maybe in opportunity it's a that a part, operate we're business, with see bring customers. improvement it's a coupled pretty price of of view little have mill needed side seeing or going and they but our bit not can But the there. stable as for up from their it's some

to COVID and the mills, on thing and make flow, that And orders house seen can another, boost, we are with staying line fully in still added deliveries volume expect that contact still track guidance staying taking is slower no measures everybody quarter. right with although and they The that. is, scale other our to little their main interaction There with the if meet for or will. taking additionally, safe in additional people you they're a and pricing less thing one sure we're is them is for has with everybody be being not the

Collin Mings

to, part of model, right. just, then the kind just maybe relative success alluded a that within get of of optimism maybe that a or little delivered bit of commentary you All was asking second mills of the or And hand a byproduct trying the some of recognizing optionality the again, the differently. on to is that to some follow-up think some maybe relative a Paul your

of some that able contributing as maybe that you're current environment another that the Is you're outlets there downtime dynamic? of more maybe upon Is kind far some as to that in to optimism? to once taking having maybe relative to expand just customers move that between customer, move

Todd Reitz

Sure.

you and but your first in, phone not have greater greater is partners, each will. regions multiple years one more As you that a and be delivered operate fiber having tend of and and over thing a all connectivity that we these with control have talked meetings about you any if we model supply customers only to in in that agreement or call, of another

more or react markets proactive the quickly customers the even be because nature can of And so read in. we're with you of and

you still operations. about one it bigger really that that two of well. – is mom call we buildup into talked have see players in They're the much there don't all are we thing only these inventory just is There in this. very not markets, and is your some their have or coming running They all or didn't pop one or mills regional haven't

So and been they've those we've in little continue more a participate been areas. able to consistent to

only had the volume from other that sales maybe was Additionally, model, they because delivered it because of going away stumpage have with other have seen customers flowing we that locations.

around producers doors and a to us so up in to to and fill able very model open has delivered for proactively customers and to opened be up allows being needs continues And move again us timely manner. the

Collin Mings

what on Brian, extra the opportunities that pandemic, the just listed Todd. environment? thing But acquisitions. into seeing just the opportunities toward XX bigger transaction as in terms but was the current are priorities allocation color capital what the days or of front, of maybe larger you anything disposition of just acquisition if of really Appreciate context the recognizing so you recognizing in are on list kind large bottom picture, the last there, or

Brian Davis

Collin. Sure,

right? to front context, put $X is the a first hard share, $X it's acquisitions line. So At in of or

consideration. important an that's So

acquisition to a had of the relates in range our associated kind actually it acquisitions. the pipeline we as of with decent that developed end activity, pretty So spectrum targeted of smaller

essentially seeing still We're We a in deals button. of this some We're they've going stocked engaged Again, process. some seeing strung we through properties. the We're that marketplace. had were actively well out. in pause the bit conversations, still albeit

is I in you can marketplace, the There capital tell that.

today. nothing There's properties potential We who are larger marketplace notable dispositions. inquiring participants and who capital, are seeing have in out the about

regards I figure how out everybody out or the is in further disposition of size. out acquisition think to before is to ice thick the activity lake on any venture notable they trying

Collin Mings

Stay time morning. the Appreciate this safe.

Brian Davis

Thank you so it, Collin. much. Appreciate

Todd Reitz

Take care.

Ursula Godoy-Arbelaez

you. Thank

Operator

[Operator turn our like to Mr. I over for Instructions] question-and-answer now session. This Brian any to the CEO would closing Davis, remarks. concludes conference

Brian Davis

your remain forward look we to your Thank we healthy ones and hope time. and Great. you loved for to time. next safe And you talking you and

Operator

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

disconnect. You may not

CatchMark Timber Trust (CTT) 5 May 202020 Q1 Earnings call transcript