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Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information

NOTE 2. SEGMENT INFORMATION

Our operations are organized into three reportable segments: Timberlands, Wood Products and Real Estate, all of which are strategic business units that offer different products and services. The segments are managed separately because each business provides different products and utilizes different marketing strategies. 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, oil and gas royalties 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 as if the sales were to third parties, 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 March 31,

 

(in thousands)

2025

 

 

2024

 

Timberlands

 

 

 

 

 

Northern region

 

 

 

 

 

Sawlogs

$

43,864

 

 

$

33,806

 

Pulpwood

 

729

 

 

 

65

 

Other

 

472

 

 

 

311

 

Total Northern revenues

 

45,065

 

 

 

34,182

 

 

 

 

 

 

 

Southern region

 

 

 

 

 

Sawlogs

 

29,629

 

 

 

31,216

 

Pulpwood

 

17,218

 

 

 

15,648

 

Stumpage

 

5,119

 

 

 

7,632

 

Other

 

5,420

 

 

 

4,272

 

Total Southern revenues

 

57,386

 

 

 

58,768

 

 

 

 

 

 

 

Total Timberlands revenues

 

102,451

 

 

 

92,950

 

 

 

 

 

 

 

Wood Products

 

 

 

 

 

Lumber

 

131,448

 

 

 

116,723

 

Residuals and Panels

 

33,197

 

 

 

31,875

 

Total Wood Products revenues

 

164,645

 

 

 

148,598

 

 

 

 

 

 

 

Real Estate

 

 

 

 

 

Rural real estate

 

23,261

 

 

 

5,526

 

Development real estate

 

1,244

 

 

 

2,874

 

Other

 

3,086

 

 

 

2,707

 

Total Real Estate revenues

 

27,591

 

 

 

11,107

 

 

 

 

 

 

 

Total segment revenues

 

294,687

 

 

 

252,655

 

Intersegment Timberlands revenues1

 

(26,427

)

 

 

(24,528

)

Total consolidated revenues

$

268,260

 

 

$

228,127

 

 

1.
Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.

The company’s chief operating decision maker (CODM) uses segment information to assess performance, allocate capital and personnel, budget and forecast, and determine compensation of certain employees, among other things. The CODM 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 tables summarize information for each of the company’s reportable segments and include a reconciliation of Segment operating income (loss) as the closest measurement to GAAP for the reportable segments, Segment Adjusted EBITDDA, and 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 March 31, 2025

 

(in thousands)

 

Timberlands

 

 

Wood Products

 

 

Real Estate

 

 

Total

 

Revenues from external customers

 

$

76,024

 

 

$

164,645

 

 

$

27,591

 

 

$

268,260

 

Intersegment Timberlands revenues1

 

 

26,427

 

 

 

—

 

 

 

—

 

 

 

26,427

 

 

 

 

102,451

 

 

 

164,645

 

 

 

27,591

 

 

 

294,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold2

 

 

 

 

 

 

 

 

 

 

 

 

Fiber costs2

 

 

—

 

 

 

76,156

 

 

 

—

 

 

 

76,156

 

Freight, logging and hauling2

 

 

50,950

 

 

 

20,427

 

 

 

—

 

 

 

71,377

 

Manufacturing costs2,3

 

 

—

 

 

 

58,049

 

 

 

—

 

 

 

58,049

 

Finished goods inventory change2

 

 

—

 

 

 

(5,067

)

 

 

—

 

 

 

(5,067

)

Depreciation, depletion and amortization2

 

 

15,179

 

 

 

9,446

 

 

 

121

 

 

 

24,746

 

Basis in real estate sold2

 

 

—

 

 

 

—

 

 

 

9,868

 

 

 

9,868

 

Other4

 

 

6,934

 

 

 

182

 

 

 

3,337

 

 

 

10,453

 

 

 

 

73,063

 

 

 

159,193

 

 

 

13,326

 

 

 

245,582

 

Segment selling, general and administrative expenses5

 

 

2,524

 

 

 

3,460

 

 

 

1,517

 

 

 

7,501

 

Segment operating income

 

 

26,864

 

 

 

1,992

 

 

 

12,748

 

 

 

41,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization6

 

 

15,506

 

 

 

9,553

 

 

 

141

 

 

 

25,200

 

Basis in real estate sold

 

 

—

 

 

 

—

 

 

 

9,868

 

 

 

9,868

 

Loss on disposal of assets

 

 

—

 

 

 

95

 

 

 

—

 

 

 

95

 

Segment Adjusted EBITDDA

 

$

42,370

 

 

$

11,640

 

 

$

22,757

 

 

$

76,767

 

Corporate Adjusted EBITDDA7

 

 

 

 

 

 

 

 

 

 

 

(12,148

)

Eliminations and adjustments8

 

 

 

 

 

 

 

 

 

 

 

(1,252

)

Total Adjusted EBITDDA

 

 

 

 

 

 

 

 

 

 

 

63,367

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

(1,492

)

Depreciation, depletion and amortization9

 

 

 

 

 

 

 

 

 

 

 

(25,404

)

Environmental charge

 

 

 

 

 

 

 

 

 

 

 

(490

)

Basis in real estate sold

 

 

 

 

 

 

 

 

 

 

 

(9,867

)

Non-operating pension and other postretirement employee benefits

 

 

 

 

 

 

 

 

 

 

 

(351

)

Loss on disposal of assets

 

 

 

 

 

 

 

 

 

 

 

(96

)

Other

 

 

 

 

 

 

 

 

 

 

 

(206

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

25,461

 

The footnotes below the table for the three months ended March 31, 2024 are also applicable to the above table.

 

 

 

 

 

Three Months Ended March 31, 2024

 

(in thousands)

 

Timberlands

 

 

Wood Products

 

 

Real Estate

 

 

Total

 

Revenues from external customers

 

$

68,422

 

 

$

148,598

 

 

$

11,107

 

 

$

228,127

 

Intersegment Timberlands revenues1

 

 

24,528

 

 

 

—

 

 

 

—

 

 

 

24,528

 

 

 

 

92,950

 

 

 

148,598

 

 

 

11,107

 

 

 

252,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold2

 

 

 

 

 

 

 

 

 

 

 

 

Fiber costs2

 

 

—

 

 

 

73,460

 

 

 

—

 

 

 

73,460

 

Freight, logging and hauling2

 

 

48,337

 

 

 

18,101

 

 

 

—

 

 

 

66,438

 

Manufacturing costs2,3

 

 

—

 

 

 

57,709

 

 

 

—

 

 

 

57,709

 

Finished goods inventory change2

 

 

—

 

 

 

(4,333

)

 

 

—

 

 

 

(4,333

)

Depreciation, depletion and amortization2

 

 

17,297

 

 

 

12,408

 

 

 

116

 

 

 

29,821

 

Basis in real estate sold2

 

 

—

 

 

 

—

 

 

 

4,094

 

 

 

4,094

 

Other4

 

 

7,774

 

 

 

91

 

 

 

3,185

 

 

 

11,050

 

 

 

 

73,408

 

 

 

157,436

 

 

 

7,395

 

 

 

238,239

 

Segment selling, general and administrative expenses5

 

 

2,419

 

 

 

3,817

 

 

 

1,710

 

 

 

7,946

 

Segment operating income (loss)

 

 

17,123

 

 

 

(12,655

)

 

 

2,002

 

 

 

6,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization6

 

 

17,625

 

 

 

12,516

 

 

 

138

 

 

 

30,279

 

Basis in real estate sold

 

 

—

 

 

 

—

 

 

 

4,094

 

 

 

4,094

 

Gain on disposal of assets

 

 

—

 

 

 

—

 

 

 

(6

)

 

 

(6

)

Segment Adjusted EBITDDA

 

$

34,748

 

 

$

(139

)

 

$

6,228

 

 

$

40,837

 

Corporate Adjusted EBITDDA7

 

 

 

 

 

 

 

 

 

 

 

(12,665

)

Eliminations and adjustments8

 

 

 

 

 

 

 

 

 

 

 

1,550

 

Total Adjusted EBITDDA

 

 

 

 

 

 

 

 

 

 

 

29,722

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

282

 

Depreciation, depletion and amortization9

 

 

 

 

 

 

 

 

 

 

 

(30,395

)

Basis in real estate sold

 

 

 

 

 

 

 

 

 

 

 

(4,092

)

Non-operating pension and other postretirement employee benefits

 

 

 

 

 

 

 

 

 

 

 

201

 

Gain on disposal of assets

 

 

 

 

 

 

 

 

 

 

 

5

 

Other

 

 

 

 

 

 

 

 

 

 

 

(145

)

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(4,422

)

 

1.
Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.
2.
Significant expense categories align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included with the amounts shown.
3.
Manufacturing costs include, but are not limited to, wages, benefits, repairs, maintenance, supplies, heat/power, electricity and other utilities, depreciation and amortization, and membership dues.
4.
Includes, but is not limited to, the following:

Timberlands - forest management, roads, employee wages and benefits and property taxes.

Wood Products - pension and other post-retirement benefit plan service costs for active plan participants.

Real Estate - land sale commissions, land sale closing costs, property taxes, and costs from the company-owned country club.

5.
Segment selling, general and administrative expenses includes depreciation and amortization.
6.
Includes depreciation and amortization classified as selling, general and administrative expenses.
7.
Corporate Adjusted EBITDDA includes costs specifically not allocated to the segments including, but not limited to, certain corporate department direct expenses and employee wages and benefits. Corporate Adjusted EBITDDA is regularly provided to the CODM.
8.
Includes elimination of intersegment profit in ending Wood Products inventory for logs purchased from our Timberlands segment and LIFO adjustments.
9.
Excludes amortization of bond discounts and deferred loan fees which are reported within interest expense, net on the Condensed Consolidated Statements of Operations.

The following tables summarize additional reportable segment financial information:

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2025

 

 

2024

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

Timberlands

 

$

15,506

 

 

$

17,625

 

Wood Products

 

 

9,553

 

 

 

12,516

 

Real Estate

 

 

141

 

 

 

138

 

Corporate

 

 

204

 

 

 

116

 

 

 

25,404

 

 

 

30,395

 

Bond discounts and deferred loan fees1

 

 

382

 

 

 

407

 

Total depreciation, depletion and amortization

 

$

25,786

 

 

$

30,802

 

 

 

 

 

 

 

 

Basis of real estate sold:

 

 

 

 

 

Real Estate

 

$

9,868

 

 

$

4,094

 

Eliminations and adjustments

 

 

(1

)

 

 

(2

)

Total basis of real estate sold

 

$

9,867

 

 

$

4,092

 

 

1.
Included within interest expense, net in the Condensed Consolidated Statements of Operations.

 

(in thousands)

 

March 31, 2025

 

 

December 31, 2024

 

Assets:

 

 

 

 

 

 

Timberlands1

 

$

2,378,981

 

 

$

2,396,642

 

Wood Products

 

 

535,636

 

 

 

537,665

 

Real Estate2

 

 

69,271

 

 

 

67,527

 

 

 

 

2,983,888

 

 

 

3,001,834

 

Corporate

 

 

271,303

 

 

 

303,609

 

Total consolidated assets

 

$

3,255,191

 

 

$

3,305,443

 

 

 

1.
We do not report rural real estate separately from Timberlands as we do not report these assets separately to management.
2.
Real Estate assets primarily consist of a master planned community development and a country club.

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2025

 

 

2024

 

Capital Expenditures:1

 

 

 

 

 

 

Timberlands

 

$

7,352

 

 

$

7,905

 

Wood Products

 

 

11,749

 

 

 

4,709

 

Real Estate2

 

 

3,678

 

 

 

1,194

 

 

 

 

22,779

 

 

 

13,808

 

Corporate

 

 

—

 

 

 

196

 

Total capital expenditures

 

$

22,779

 

 

$

14,004

 

 

1.
Does not include the acquisition of timber and timberlands, all of which were acquired by our Timberlands segment.
2.
Real Estate capital expenditures include development expenditures of $3.3 million and $1.1 million for the three months ended March 31, 2025 and 2024, respectively.