CTT - Earnings call transcript Q2 2021 | CatchMark Timber Trust Inc

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Operator

Good morning and welcome to the CatchMark Timber Trust Second Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Ursula Godoy, would like to to over conference the Chief turn I Financial Officer. Please go ahead.

Ursula Godoy-Arbelaez

thank Timber second Good review Officer of Ursula And you us Financial joining morning. for Godoy, of Chief CatchMark XXXX. Trust quarter for CatchMark. results I am for our

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

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

factors SEC. cause refer could our Todd, be certain information earnings presentation For any and X, such annual our posted on on your the financial our the and more to non-GAAP you measures. are reports of Form about with Today's we subsequent filed report these in XX-K with XXXX on I measurements our Reconciliations XXXX included and includes financial presentation, we release supplement, answer questions. differences, and are XX-Q our Brian, SEC After that which yesterday website XXXX. filed the pleased August to John will Form quarter of second that

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

Brian M. Davis

in you operations all the CatchMark your to Ursula We quarter. of exceptionally us on maintained second during and our morning good momentum Thanks today. joining call. the strong appreciate

net were the both as well prices timber EBITDA adjusted quarter driven quarter operations by results in as ever from Our higher highest record excellent including cash for a our U.S. income second for year-over-year and

U.S. the harvest above the South Pacific pricing markets for continue wide premiums and our capture especially market averages well in our Northwest as we in to as well

South activities. where our we concentrate

maintained adjusted as during our a per harvest second by offset increased increased pricing acre planned Our quarter leading total This in income we U.S. quarter a middle performance net the recognized basis. timberlands EBITDA business investing advantages reduction on in markets, for a the and $X.X per is share. $X.XX and concentrating in testament leading by in Year-over-year XX% we million to XX% volume model and prime or our more than we revenues again of productivity total the

harvest operations, and relying and on volatility lumber sales all advantage executing acre. price Recent availability and log sales taking logs consumption translate stumpage markets in doesn't leading in excellence does. middle of prices, EBITDA delivered South resulting of in opportunistic per our to

to home trends. We side, home activity benefit low fundamentals significant further and by and expect driven to continue should beneficial drive from buying, by market housing the millennial increasing and work side rates, repair helped remodeling strong home to interest activity. demand demand from continue The supply

a result to the production of the production U.S. of ongoing Canadian and As decline shipped and the

which supports South production CatchMark for sawmills is the have U.S. region, been demand. in the six positioned meet prime for to need greenfield top the capital markets announced middle our a Signaling timberlands well regional additional near exceptionally increasing commitments lumber slated with

These XXXX. quarter our region. heighten pricing secured in we the should projects in South realized looking the In translate consumption at in CatchMark’s the advantages U.S. to second

U.S. XX% year premiums prices higher stumpage prior sawtimber and we over to pulpwood but compared pricing only quarter and South were XX% XX% and captured not respectively XX% also

price. quarter also driven quarter the second in higher $X.X generated management XX% in year's Significant activity already at increased In almost an in increase also Pacific timberland sales year last met due favorable million of T South change same sales sales the XXX% over We in bolstered harvest full in also to Northwest venture. volume sales management by timberland target. pricing a capitalized Investment for year-over-year as delivered second asset conditions. period. increased margin. XXXX Timber XX% with averages income revenue have quarter the at and agreement increase in XX% the increased year-over-year XX% on market wide results our joint we sawtimber Triple we timberland the

transaction quarter the made of and a capital progress Georgia significant in the existing And completing pay During our using week in we our also growth, debt. $X the Oglethorpe next down agreed in of a the to expecting and timberlands, expect the gain to of in XXXX substantial recognizing a million further proceeds recycling to large concentrating disposition which timberlands in excess net we sale Pacific we gain strategy, Northwest position acres $XX major strengthen capital This disposition sell our on future U.S. will of close Bandon million. nearly enable

South.

the approximately proceeds Following looking full XXX,XXX major $XXX also we the price practices. asset by on also acquisition ago. the next year T’s sale course XXXX, to re-capitalization. Louisiana. mill region market Triple Georgia sales We're Triple acquisition wood in and only increase XX% do, venture. XX% compared joint recapitalizing XXXX, made has of client result by general the development steps, Triple The asset improved per which another of result past cost Bandon for of for also time T’s XX% XX% T acquisition property the more venture acre which improving still remained and COVID, shareholders. partners in Group. partner a manager Triple pricing, has Triple Hancock XX before venture’s our the Triple partnership GP venture. by for additional joint with also increased further leverage of the revenue and increased interest of million timberlands Canfor’s We from CatchMark to CatchMark stage joint phase renegotiating by durability Hancock side acquisition to acre of opportunities, of T increasing this to venture. and of the Texas T’s that portion transaction, the the a annual of property. its the and three activity liquidity. X% by increased a for explore is reduce which also set for product $XXXX Pacific, by closing, in for generated announcement the carbon for unlock CatchMark with per our It but will based acre agreement months process Triple increased over as our and through per over of since tons T acres to merchantable close cultural the has the Hancock evolving Natural pricing The last as is joint net the sale This its down property preferred how and sell has encouraged Western in sets demonstrates income in we T from we In acre much This asset’s pay the operating a significant East interest index basis not next supply Resource value notable to T’s in quarter and be but in have to obtaining recognized Triple a significant T agreed the financial continue progress, transactions us has The a the Hancock of the years the week, been surfaced in the the performance several market through additional increased year in of greenfield has Mills asset through Interfor’s guidance expect value. the value and have key certainly as enhanced the used made of per CatchMark third of strong mill anticipate progress to of Triple opportunity, to amount the gain. In the considerations a announced we

product in these the that outlook supply potential developments pricing can of positive bode Triple values to contribute All tension for higher for well per and land they result region a should acre T. on in

strategy focused use also from week the Bandon shareholders. T credit highly our further our Earlier to pending and proceeds existing agreement Triple Our so the value to continues liquidity, in declared XXXX partners growth. on facilitate for the while share of can The of $X.XXX as this per flexibility, future you balance deleverage creating capacity. strength its company amended CatchMark disposition XXth. September we dividend stockholders payable agreement future on August XX, improves cash to common and maximizing a Yesterday, be for debt sheet

Our well track are covered on we guidance. dividend is full and to year meet

quarter To and Bandon EBITDA, on the CatchMark year-over-year sale closes, adjusted after meeting multiple we revenues, noted, income. net strong extremely up, As another updating fronts, net significantly on recognizing had and and a increasing guidance targets, exceeding anticipate sum income.

in to superior the that achieve the strength of higher markets. sales supply and demand Favorable dynamics revenues is on timber CatchMark pricing our in able Importantly increased U.S. premiums pricing

continue our region, CatchMark South further large basket a and company capital the generate deliver activities flow where And objectives. way covered results. improve nation's should will on stable predictable The to position primary and focus future continues sale cash primary growth. the our and course pave support disposition we Oglethorpe future our timber for pending to Bandon should fully dividend,

Now to detail. position and in review capital to over I greater our second Ursula will turn it discuss results quarter

Ursula Godoy-Arbelaez

you Thank Brian.

our operations, guidance. our harvest captured segments; market the to continue on premiums well plan and averages have above very set outlined, Of apart business performing meet note, we investment full estate, we harvest after special you results. are and quarter help year real all three to and are in quarter As us pricing management boost wide

delivered Taken record second altogether, the performance. quarter

premium a year, recognized generated market also XXXX June of to $X.XX XXXX. in We million, record a These XXX,XXX $XX.X quarter markets. primarily of in by maintaining sales than from sales second to per fee produced distributions of X,XXX $X.X pricing higher spite revenues from this asset to acres management quarter in above well total from the million earlier, $X.X acre an generated Investment average promotes. margin. XX, higher year consistent harvest sales of million management the to million $X.X including Timber million based We XX% a increase EBITDA at due per decreased incentive improved million second share Dawsonville XX% XXXX. quarter which acre year-over-year year-over-year flow from while lower and as of over our $XX.X CatchMark including venture XXX% quarter selling Bluff’s million, Real revenue $X.X increased overall T operations and on million XXX,XXX an out was XXX% were tons ended $XX.X net EBITDA year XXXX, for million estate from a higher cash the increase quarter, by productivity increased of revenues in to million segments quarter by harvest quarterly driven to XXXX XX% EBITDA totaled compared EBITDA second or pricing driven result in prior million, planned increase. revenues. $X.X EBITDA higher in a XX% $X.X Breaking compared second $XX.X of tons basis. adjusted second capturing volumes, capturing increased Adjusted $XX.X XX% an more XX% as revenues record timber per For quarter. averages Triple income price higher joint

of on was share per flow We from to by dividend covered also $X.XXX paid stockholders cash XXXX, fully XX, which a June operations.

let's review agreement. recent credit our the activity sheet, the company strengthen Now including to balance to CatchMark’s amendment recent

working As We more borrowing XX, million us under million had credit had facility $XXX than of and very position. facility. a CatchMark $XXX.X our favorable capacity $XXX.X of $XX multi million including our draw facilities, and of balance cash which under in term a of million million $XX.X two liquidity June capital XXXX under puts

revolver with disposition our loans. the and can During in further future of And consistent the million existing Under upcoming for of while we on term future facility loans [ph] our debt deleveraging can the we our XXXX working available the be use new outstanding from amended the to million XXXX feature establishing and capital proceeds CatchMark’s terms large from credit balance revolver $X.X Bandon existing draw XX one down the The from acquisitions. this multi we for used term disposition the amended maturity pay capacity. quarter, on facility. Oglethorpe a the credit funds earlier improving net of $XX.X are extending week, feature agreement, term proceeds to date agreement, the used

competitive current improved We weighted strength of maximize balance debt and The amendment for greater the also is increased to average and of result growth. future sheet increased capacity maintained the life our debt liquidity, flexibility, pricing.

debt. of This maintain continued million maturities, and CatchMark covered mix long-term attractive costs, We distributions stockholders And fixed quarter. fully to stagger by favorable paid floating also to right dividend a of flow operations. noted, was borrowing cash during as to from the $X.X

in operations was sales. timberland extremely what our for review quarter Now, will Todd productive another Todd. harvest

Todd P. Reitz

Thank you, Ursula.

For the year-over-year. higher second quarter, CatchMark timber sales generated revenue XX%

the at specifically Looking U.S.

in year-over-year sales XX% offset partly South, drove primarily a timber robust XX% volumes. by strong revenue increase harvest in pricing, resulting lower from mill demand our markets

than XX% were Our in realized overcoming prices above South in and year events pulpwood TimberMart- sawtimber We and wide and weather sales higher CatchMark’s excellent XX% results the south multiple these respectively XX% quarter. U.S. XX% prices the prior averages. And registered wet

delivered of with shortage help maintaining sales last increased truck lumber South, Northwest, consistent on of Pacific to and mitigate drivers. demand stumpage proactively and due our economic downturn. from emerging costs to year's customers conditions In ongoing favorable market working the depths for haul we capitalized the

year-over-year harvest and a XXX% sawtimber and increased XX% higher increase captured region The quarterly sales the combined and our revenue Our in we the by pricing increase region. volume in year-over-year volume higher XX% by delivered pricing. timber

been on and have regional approximately of our miles XX% than more property, is unaffected recent XX service operations Northwest closest Pacific forest by wildfires. ownership contained. fires The East Our

During logging utilized the complete quarter there. wrap Bandon in additional as up harvest we ahead quarter, activities capacity we second the and delivered to the regional sale looked third

by year. sharp Slowing increased demand repair complete about produced have We of Pacific remodel harvest market momentum somewhat recent expect sale, the sawmill we XX% the will reduced lumber planned housing time the Northwest from for and inventories. slightly that have Bandon our the upturn and we

an one our the U.S. However, for at been shifts. the global maintain produce much at in in for is year. shortages the they more with markets, additional pulp run of can board us They capacity, quarter. could log Production XX% shift remain helped mill The liner are mills rest strong they steady have and thin tissue pricing the has not which premiums. and for primarily if across bolstering business the demand too. building customers outlooks products, Labor with running our are significant inventory third Mills issue

Bluff levels had our harvest the we will seasonal quarter, moderated near-term wake very and meet guidance to adjustments into pricing. make to for moved positioned account during necessary including value to the on of for We inventory South sale. delivered mitigation on we of remain thinning new seeking opportunities property JV emerging we strive credits Bandon as entire Dawsonville portfolio explore evolving markets which the of the and in we Overall, helped acre our continually market. maximize carbon and taking across look as did the timberlands, the second well with every and such bank capitalize to our increase sequestration on markets our the track to volumes

review let's Now sales. timberland

expected targeted as have significant a of quarter percentage Second sales. generated XXXX our

the million than X,XXX In acres, in year prior with XXXX. the June As strong rural the meet course the of sold year year sales total XX, guidance completed planned XX% approximately million for second remain we of more to sales. and we quarter on a quarter, acres for totaled recreational full quarter. of X,XXX outlook in had Sales $X.X a to second $X.X compared

per registered significantly quarter productive sales Consistent $X,XXX near-term on $XXXX are to second sales have second marketable of or XXXX. tons sales an in portfolio versus versus stocking acre average XX cash our lower our that acre in also acre. We second focus quarter price, tons lower strategy levels, per potential, flow XX% XX quarter XXXX our timber with less per higher had average acres average

Brian, year XX% of XXXX was margin million to and was second the in The million second $XXX,XXX leverage. gain active disposition particularly to completed compared and our the large net productive quarter generated to also improved used we acres on of back an The quarter. an which operations during you. XXXX We in summary, In quarter. for XX% $X.X of recognized the proceeds, prior also $X.X sale side. quarter the Oglethorpe reduce generated

Brian M. Davis

These strategic Oglethorpe, CatchMark second future Todd. sheet, marked broader at expansions and to U.S. mill gain, with that growth. sell business, for significant We our Thanks, included agreement and initiatives quarter plan amendment, Triple had execution T's shortage outperformance the our simplify company to credit initiatives to definitive a position along a in and by record agreement sell the the housing the Bandon of current support substantial the agreement several XXX,XXX strengthen acres. balance the to believe

opportunistic and prime in and our sawtimber optimizing and in well strategy, our demand markets. premier We strengthen operations leading will executing tested simple markets sustainable superior focused remain stumpage on timberlands, wood pulpwood utilizing mill to produce South a investing laser on and as as basis, primarily sales. results sales delivered

we the have positioned advantage leverage business strategies reduced to our take are a and of well in opportunities, recycling future U.S. capital concentrating Our

for robust have a and opportunity see growth. the platform South, where we greatest

year on guidance the covered operating net and attention success for value. track I formally now pending Bandon the our dividend momentum flow take shareholder cash full And results expect strengthening be guidance update fully Todd, provides your are for to position your of when on are transaction CatchMark’s capital and closes. happy from excellent income and meet questions. significant We strategy consistent by operations. our to Ursula, today to creating will John, Thank and remains you

Operator

[Operator Instructions].

Our Please Rodgers Dave go ahead. with from comes Baird. first question

David Rodgers

to today, market and I that, the are seeing phase? end when the as are growth moved finished that like acquisitions new you're and really transition morning everybody. acquisition you to as for good start delever wanted of busy and an you good quarter, about portfolio. of I'm start take able close curious the perspective to mentioned guys guess been that and quarter Hey, some this Brian have to aspect, to what in out guess, your positioned the assets you non-core the you kind growth from operations we you would capital for expect pursuits obviously, very growth. I deploying

Brian M. Davis

full over your that actually run growth. for it which relates settle have strategy, With us and just question. morning, of the this, times is part means we six look It sheet to leverage as rate times five to to in and going is post Bandon immediately putting as be at our growth. Dave. balance a the we capacity sheet, Great strengthening our overall is look profile simplification, around on basis, Good it somewhere out our year balance some position

to comes two so standpoint of And there's things we're on which focusing back that on. the us really

about our if on obviously to be of really we're other on XX% to X/XX to math, our at XXX% really allocation, and you're remaining of think associated of actions is executing we your allocated As going opportunities. our operating our Triple be with XX% on business, doing the is now T growth time the times focused XXX% going time focus

so I grown Obviously, and focused we're when a since our And pipeline, our operating take here specifically very specifically in at areas. it numbers. first sit much look around Southeast, quarter the our has

standpoint our of it continuously timeline fits our as from to at relates We're always so And looking that appetite in opportunities. execution. kind

market, our increase support I think a the may is Coastal things actual that stock Townsend nature, execution wood like willingness to which those we for which provide the be closing opportunity acquisition, of will or the there are for as at our full not made, cash provide is in those forward. go going Georgia. appetite acquisition really or last existing like immediate and and operating acquisitions can flow long we that a may in meaning term maybe markets which be actual to We'll an the of look in also but Bandon, it strategic

an her we get is Obviously, than us quarter. part through improving. is the these But do appetite what elements long-term important best we're away were to of a to so. we some to last our put had over now So, in closer position It strategy.

David Rodgers

I or you trade-off equity the of doesn't between the same on then go that as We'll focused sales you of XXX% and be to investment? willing long markets accelerate perspective, more as transaction it to kind that still would And are to G&A. guess cost from asset kind take in the

Brian M. Davis

Well, never say never Dave.

goes a day. of given be us disciplined equity is position in to place, is very along our our prices with work an that. in X.X%, to at that efficiently relates share continue have We sub price we ATM to debt our cost So it as puts it where XXX-XXX share do as and

opportunities, were in today we're For closer a the we than again, right position before.

David Rodgers

Southeast the And had helpful. about I to demand. pull couple comments start and of see several if the mills what might for that's it's incremental years, that one that your in you last I you correctly? previously. understood that's that you of over the to in Great, a maybe do the Southeast of just mill terms then timing even investments one taken seeing been you're talked and past through a the expect deployments the the Todd, driver the impact years added on Clearly, how guess from across

Brian M. Davis

Sure.

Mississippi, more think area, that you will, when the of ones Alabama been have So recent kind are region, Louisiana. really focused if those towards announced, of about most the South you your

through capital in So of and here, lot on, of area come over to where gone to Georgia some they've and core GP some that over bring up have ownership by that T. But of has of seen placed we've we've ownership biggest that that addition some really with impact so of mills online. Interfor, in quarters the and their a early our the or started lot course capacity. the about Triple and the increased capital we in mills already as a others the their had being will Canfor We've previous the impact to in last year came and really talked

some So that. see we've begun to of

on year, planted I where and we're driven pricing increases. in see been that made, markets of just the they from it where the think the durability that we've have you in of is those been were since in to able to growth, improvement posted by that the benefit and beginning results investments see so capitalize we and the the that

say see the you're as pull -- of is a well. more occurred to entire on impact for see has as through would of I south that already what us, to start some of So, some going those that

David Rodgers

you. Thank helpful. Very Right.

Brian M. Davis

Thanks, Dave.

Operator

with next from question is The ahead. Please RBC. go Quinn Paul

Paul Quinn

Great much. so thanks results. Yeah,

where I on you I some think be? raise if you'll close after that Bandon, color too. but more that here, guidance range do Just could you towards understand would mean, you what look wanted to the get you'll

Brian M. Davis

Brian. this enthusiasm. Paul, Hey Good morning. your Love

obviously, absolutely the you're think same product which the pricing, we feeling markets I in. about mean I we as bullishness in that's operate are fantastic.

really are our XX% quarter. Obviously, regarding us episodic. sales some got second we're in put of sales Give a boat but it's time. in us, mean, appreciate land at that your we've us this in For again land off better strong position a coming really quarter. I of a another I that'll enthusiasm very point guidance.

Paul Quinn

Okay. healthy And then just on Triple T, monetizing is what timeline balance very the I mean the great the the work XX%, of wondering just on premium, XX?

Brian M. Davis

Yes.

you think a I I with that way give the inning. we double header. were innings third early just on So call, perspective, late a in fourth today the The describe were inning of game the early last second we it said

And look to hasn't than nine be sooner to so we in really our really the timeline execute eleven our next It's changed. that. Hopefully expectations. would months

financial the third capital in partners of there that standpoint. land stay can partners a out recapitalize continuation new asset strategic Hancock also those want change of can it provide to because restructuring options available still any of of doesn't sale All an opportunity $XXX The us. new from anything to of size from this there us in and would bringing the venture the at entity. options, sales, we look parties the And from to cash nearly can to of are interests million are be our preferred joint the

parallel as other working something all announced been opportunities. activity with we've we've so that doesn't just mean because you imagine, of can And

And so be that expected would our timeline.

Paul Quinn

I all Thanks had. Alright, that’s guys.

Brian M. Davis

Paul. Thanks,

Operator

next Please Pettinari Citi. from is The question with go Anthony ahead.

Anthony Pettinari

timberland you're if good you essentially I'm of kind We impacts Timberlands, think industrial understand you improvement flat, kind or what digits, of are seeing trying Southern of versus to XXXX Hi, single of prices single just any started and And kind maybe you're acquisitions? kind see wondering that up period. transaction pick for pandemic prices for quality, look price digits, appetite seeing at the volumes Do how pre low Timberlands up mid if Southern market say I'm morning. to that up. just for

Brian M. Davis

to Really challenging as that relates an be but It's operations, overall Yeah, markets. morning, Markets quantity question of lifts valuations the Good It's been we've continue where that it all over impact one ships. still Brian. ourselves and they're Very on to is the steady. rising interesting. the Anthony. been Greenfield interesting have seen we've quality been case can with that and have speculative market, that prospects it's while matter, tide would

about think operating in, markets, expansion in continue those been have markets. to a capital to you so markets And we've continue the in you have drain those

in And so may more so in, three two the I say some see could than seen markets which we rise valuations actually years. you have in would we operate over the past or

try Now as impact can the as you I standpoint. be standpoint? as end acquisition really from from and to I market front much do an you you M&A is vintage all market you how we're an risk does the this. avoid that want markets buying -- you think and through the you mean, of and so But on ended having up

associated associated pricing, and with with product you that bullishness durability combine at years. take look a with You a cap more rates ten get

up. go You valuations can seeing start actually

Anthony Pettinari

for -- very that anything to XXX,XXX remaining And XXX,XXX you of property stocking that kind what the versus say species acres rest of just broader potentially of get representative do is could it the you position remains? that about the you the got for just think more it is you in terms parcel proximity in that how would the T, there and Triple sold the you it million, a helpful. that's premium how it on terms think versus million aspirational or is about you or XXX,XXX of what would $X.X within Okay, that mill, we of then should qualitatively X.X

Brian M. Davis

with XXXX necessary XXX,XXX Great down is floor. acres the have minimum We Yes. if into smaller per still parcel. five we parcels we still can a question. acres break that XXX,XXX think Really, at

you market as appreciate, house million stays the market. house $XXX,XXX the can bit a on So little $X a than in a longer

and to believe disproportionate get into And that shorter slightly remainder you breaking potentially you additional Interfor additional combine some also more the hurricane sizes. little remainder. the which it so and into it XXX,XXX relative with a while. has stocking have Hurricane purchasers acres down damage asset can had from premium and by sentiment, tension that And a that outside of valuations. sentiment. These higher processes then on change And so take The translates marketplace, with creates Laura from we really distances, smaller slightly haul the then we so moving you Canfor amount into

of has to reporting sentiment little that product acre we're translates an really quarter per price change a It a third consecutive our basis. on impact while down only And so that appreciation. takes

an So, a our of floor. that variables that have give we we the is believe XXXX indication standpoint, lot from

Anthony Pettinari

Okay. helpful. just And then one very for me. the one That's maybe last

I debt could us think is Bandon, as to forma debt EBITDA kind point a leverage think to pro six target or said range about there an you long times the tablets that post optimal of term? be you you you'd range

Ursula Godoy-Arbelaez

Ursula. This targets. Anthony. our very so good Hey, Yeah, been morning, is we in we're have how leverage viewing consistent

the to down years leverage lower continue number. we You've seen work over to a three us toward last two

that number. EBITDA guidance post the be demand and put adjusted the X But, an sixes. Our immediately would X our you I now to talk heard at with will transaction average Brian mean right range at in has you right our looking somewhere that been XX anywhere about yeah, in from the in the for range, of numbers X

Obviously, of three over it's to think activity do again, the a the lower the continuous have that. continued that I same just all towards progress that we the years range. better. really we specific to target, that of inside the just shows two And make from

Brian M. Davis

you Ursula. do agreement. come for And team that to from recent with allows of the opportunities most for And us be when execute able on and a your has have been what progress have to liquidity we That standpoint, working lot great on us those. been up credit

so down And pick Anthony but on seen average times you've time eight over times. to and may up as eight below around time, times, or from eight we stay

Anthony Pettinari

turn it I'll over. helpful. very that's Okay,

Brian M. Davis

you. Thank

Operator

Buck Instructions]. James. [Operator ahead. is Horne go with The from next Raymond question Please

Buck Horne

these I'm Hey averages. premiums wide guess, good I great curious you just pricing quarter, on job. Yes, achieved fantastic on everyone. that market the morning,

any there just spreads to to were particular in anything longer-term factors of of quarter? understand Just those understand there are be quarter or trying this aware how unusual those this just sustainable to in clarify driving is kind substantial particular and premiums,

Brian M. Davis

strength morning. primarily in. think that average we on have good you're of at Along the not I compared some focused looking questions markets where lines we've why ones and the operate the talked of what markets Buck, we of Hey, are to we wide and sit look these earlier, that's equally that is South you Really, grown. created markets the at all

and capacity of so You've the come of seen that of the any beginning to out made investments pricing type you're from benefit there. being we see special some added in, had that

part our You pulpwood uplift that pricing out had is capitalize business some and associated there our we're did track special some side we able and on. coming of hardwood have on with pulpwood, to

it up that bit. So boosted a little

You think kind QX out the side, about are for where going pulp looking on we of forward.

closer little to at I you we'll QX look think to be that. if a back

just and of nature pricing cyclical moderate have bit. you year can a of more time production typically this of availability, little Additionally,

And really doing but some with you pricing all all, just a it, to thinning, expect us more forward, have markets say associated I a so moving more so little have would from cost see consistent stable. been you in little very you're would

On is side amount good. the log aren't a They really of of demand building tremendous sawlog things inventory.

we forward saw was Felt that. felt be seeing year to out the in see. able about maintaining the We of on going some we levels early that these on that. run a as of QX, of and stages So we'd like to coming this we're talked uptake we like the early that's durable hang

is on about today. forward capitalizing sit our good that So and feel where focus going we

Buck Horne

out I there. bit of have just little corrected mill that a such some production challenges helpful. I mean mentioned short starting significantly I here. Housing bit. prices a supply maybe seem to really by restock some That's there. you a time follow-up I inventories have constrained want guess lumber to in overall Okay. mean, little rather period to chain be

mills increases? with stay starting to hauling costs or driver due just logging these to seen in some and shifts probably curtail shortages. your capacity that shutting region cost also You're Have are some going you elevated, in to any dealing

Brian M. Davis

additional coming -- No, seen whatsoever. announcements some the of none in. we've you've Honestly,

placed. focus regardless indicator of you sit capital an that's still on a south, in amount of where and tremendous think the the being I So, that there's growth potential there,

improvement to So have the going is of to term some legs this view it. longer

forward bets pullback customers. basis anything we're looking strong stumpage is production if play is to their placing I is of our stable, indicator a From relatively beginning think and a it working or in with you proactively they're that very a be No, none to our from out on will that. that like that. pricing moving additionally as

being if we Looking that to able at owner being cost it. through some the table the to land of program our will, isn't and value the added the delivered dinged for pass basically with bring you such

cost net of so logging in the if you little a but will, that your added bit delivered stumpage maybe price, you higher same. And offset some end can remains

Buck Horne

guys, thanks. Congrats great Great, progress.

Brian M. Davis

Buck. Appreciate it. Thanks,

Operator

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

Brian M. Davis

stay your with safe talk Thank and November. Great. you enjoy you and of very we Thanks, everybody in summer, Gary. Well, the much. rest will

Operator

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

may now disconnect. You

Ursula Godoy-Arbelaez	SVP, CFO, Treasurer
Brian M. Davis	President and CEO
Todd P. Reitz	CRO
John Rasor	President, Triple T Timberlands
David Rodgers	Robert W. Baird
Paul Quinn	RBC Capital Markets
Anthony Pettinari	Citigroup
Buck Horne	Raymond James

CatchMark Timber Trust (CTT) 6 Aug 212021 Q2 Earnings call transcript