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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information

NOTE 2. SEGMENT INFORMATION

Our operations are organized into three reportable segments: Timberlands, Wood Products and Real Estate. Management activities in the Timberlands segment include planting and harvesting trees and building and maintaining roads. The Timberlands segment also generates revenues from non-timber resources such as hunting leases, recreation permits and leases, mineral rights contracts and carbon sequestration. The Wood Products segment manufactures and sells lumber and plywood. The Real Estate segment includes the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives, a master planned community development and a country club.

Our Timberlands segment supplies our Wood Products segment with a portion of its wood fiber needs. These intersegment revenues are based on prevailing market prices and typically represent a sizable portion of the Timberlands segment’s total revenues. Our other segments generally do not generate intersegment revenues. These intercompany transactions are eliminated in consolidation.

The reportable segments follow the same accounting policies used for our Condensed Consolidated Financial Statements, with the exception of the valuation of inventories, which are reported using the average cost method for purposes of reporting segment results.

The following table presents our revenues by major product:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

2024

 

 

2023

 

 

2024

 

 

2023

 

Timberlands

 

 

 

 

 

 

 

 

 

 

 

Northern region

 

 

 

 

 

 

 

 

 

 

 

Sawlogs

$

46,236

 

 

$

48,538

 

 

$

120,606

 

 

$

138,685

 

Pulpwood

 

232

 

 

 

330

 

 

 

512

 

 

 

1,102

 

Other

 

365

 

 

 

362

 

 

 

1,051

 

 

 

995

 

Total Northern revenues

 

46,833

 

 

 

49,230

 

 

 

122,169

 

 

 

140,782

 

 

 

 

 

 

 

 

 

 

 

 

 

Southern region

 

 

 

 

 

 

 

 

 

 

 

Sawlogs

 

31,711

 

 

 

31,863

 

 

 

97,236

 

 

 

91,419

 

Pulpwood

 

18,383

 

 

 

17,503

 

 

 

49,346

 

 

 

48,641

 

Stumpage

 

3,899

 

 

 

7,057

 

 

 

15,619

 

 

 

20,438

 

Other

 

4,306

 

 

 

4,155

 

 

 

12,514

 

 

 

12,383

 

Total Southern revenues

 

58,299

 

 

 

60,578

 

 

 

174,715

 

 

 

172,881

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Timberlands revenues

 

105,132

 

 

 

109,808

 

 

 

296,884

 

 

 

313,663

 

 

 

 

 

 

 

 

 

 

 

 

 

Wood Products

 

 

 

 

 

 

 

 

 

 

 

Lumber

 

107,473

 

 

 

132,852

 

 

 

345,084

 

 

 

379,939

 

Residuals and Panels

 

31,939

 

 

 

32,256

 

 

 

96,505

 

 

 

105,633

 

Total Wood Products revenues

 

139,412

 

 

 

165,108

 

 

 

441,589

 

 

 

485,572

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

 

 

 

 

 

 

 

 

 

 

Rural real estate

 

24,409

 

 

 

11,616

 

 

 

114,788

 

 

 

34,005

 

Development real estate

 

10,912

 

 

 

4,289

 

 

 

21,274

 

 

 

16,498

 

Other

 

3,380

 

 

 

3,247

 

 

 

9,478

 

 

 

9,576

 

Total Real Estate revenues

 

38,701

 

 

 

19,152

 

 

 

145,540

 

 

 

60,079

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment revenues

 

283,245

 

 

 

294,068

 

 

 

884,013

 

 

 

859,314

 

Intersegment Timberlands revenues1

 

(28,114

)

 

 

(28,559

)

 

 

(80,084

)

 

 

(89,736

)

Other intersegment revenues

 

—

 

 

 

—

 

 

 

—

 

 

 

(6

)

Total consolidated revenues

$

255,131

 

 

$

265,509

 

 

$

803,929

 

 

$

769,572

 

 

1

Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.

 

Management uses Adjusted EBITDDA to evaluate the operating performance and effectiveness of operating strategies of our segments and allocation of resources to them. EBITDDA is calculated as net income (loss) before interest expense, net, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies.

The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to income (loss) before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Adjusted EBITDDA:

 

 

 

 

 

 

 

 

 

Timberlands

 

$

35,824

 

 

$

42,062

 

 

$

104,696

 

 

$

118,017

 

Wood Products

 

 

(9,581

)

 

 

15,039

 

 

 

(16,525

)

 

 

26,975

 

Real Estate

 

 

31,861

 

 

 

14,165

 

 

 

127,657

 

 

 

45,867

 

Corporate

 

 

(12,203

)

 

 

(11,696

)

 

 

(36,624

)

 

 

(32,958

)

Eliminations and adjustments

 

 

1

 

 

 

(3,292

)

 

 

(407

)

 

 

1,599

 

Total Adjusted EBITDDA

 

 

45,902

 

 

 

56,278

 

 

 

178,797

 

 

 

159,500

 

Interest expense, net1

 

 

(9,635

)

 

 

(7,971

)

 

 

(18,049

)

 

 

(15,783

)

Depreciation, depletion and amortization

 

 

(25,487

)

 

 

(30,248

)

 

 

(85,150

)

 

 

(89,099

)

Basis of real estate sold

 

 

(12,905

)

 

 

(6,109

)

 

 

(73,522

)

 

 

(21,624

)

CatchMark merger-related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,453

)

Gain on fire damage

 

 

—

 

 

 

16,326

 

 

 

—

 

 

 

39,436

 

Non-operating pension and other postretirement employee benefits

 

 

200

 

 

 

(228

)

 

 

602

 

 

 

(685

)

Loss on disposal of assets

 

 

(338

)

 

 

(18

)

 

 

(267

)

 

 

(39

)

Other

 

 

1,516

 

 

 

370

 

 

 

1,348

 

 

 

638

 

Income (loss) before income taxes

 

$

(747

)

 

$

28,400

 

 

$

3,759

 

 

$

69,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

16,778

 

 

$

19,267

 

 

$

51,193

 

 

$

55,623

 

Wood Products

 

 

8,395

 

 

 

10,740

 

 

 

33,138

 

 

 

32,723

 

Real Estate

 

 

138

 

 

 

120

 

 

 

412

 

 

 

397

 

Corporate

 

 

176

 

 

 

121

 

 

 

407

 

 

 

356

 

 

 

25,487

 

 

 

30,248

 

 

 

85,150

 

 

 

89,099

 

Bond discounts and deferred loan fees1

 

 

406

 

 

 

410

 

 

 

1,219

 

 

 

1,228

 

Total depreciation, depletion and amortization

 

$

25,893

 

 

$

30,658

 

 

$

86,369

 

 

$

90,327

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold:

 

 

 

 

 

 

 

 

 

Real Estate

 

$

12,908

 

 

$

6,111

 

 

$

73,530

 

 

$

21,629

 

Eliminations and adjustments

 

 

(3

)

 

 

(2

)

 

 

(8

)

 

 

(5

)

Total basis of real estate sold

 

$

12,905

 

 

$

6,109

 

 

$

73,522

 

 

$

21,624

 

 

1

Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations.