PotlatchDeltic Corporation (NASDAQ:PCH) Q4 2022 Earnings Conference Call January 31, 2023 12:00 PM ET

Company Participants

Jerry Richards - Vice President & Chief Financial Officer

Eric Cremers - President & Chief Executive Officer

Conference Call Participants

Mark Weintraub - Seaport Global

Paul Quinn - RBC Capital Markets

George Staphos - Bank of America

Mike Roxland - Truist Securities

Operator

Good morning. My name is Devon, and I will be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic Fourth Quarter 2022 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I would like to now turn the call over to Mr. Jerry Richards, Vice President and Chief Financial Officer, for opening remarks. Sir, you may proceed.

Jerry Richards

Thank you, Devon. Good morning, and welcome to PotlatchDeltic's fourth quarter 2022 earnings conference call. Joining me on the call is Eric Cremers, PotlatchDeltic's President and Chief Executive Officer.

This call will contain forward-looking statements. Please review the warning statements in our press release, on the presentation slides and in our filings with the SEC regarding the risks associated with these forward-looking statements.

Also, please note that a reconciliation of non-GAAP measures can be found on our website at www.potlatchdeltic.com.

I'll now turn the call over to Eric for some comments, and then I'll review our fourth quarter results and our 2023 outlook.

Eric Cremers

Well, thank you, Jerry.

We reported total adjusted EBITDDA of $574 million for 2022 after the market closed yesterday. That is the company's second highest EBITDDA on record and it marks our third straight year of strong financial performance. Cumulative EBITDDA generated by our leverage to lumber strategy over that three-year period was $1.6 billion.

Our Wood Products segment contributed $291 million of adjusted EBITDDA in 2022 and $861 million over the last three years. We shipped just over 1 billion board feet of lumber in 2022, and we had another strong year in terms of safety performance.

As discussed on last quarter's call, we successfully completed the rebuild of our Ola, Arkansas sawmill, and restarted the large log line on schedule in the third quarter. While the start-up phase has taken a bit longer than we had hoped relative to our stretch goal, the mill is on track to reach its 150 million board feet annual capacity on a run rate basis by the end of the quarter. As a reminder, Ola's rebuild also significantly lowers the mill's cash processing costs and improves its log recovery.