PotlatchDeltic Corporation (NASDAQ:PCH) Q3 2022 Earnings Conference Call October 25, 2022 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

Kurt Yinger - D.A. Davidson

George Staphos - Bank of America

Ketan Mamtora - BMO Capital Markets

Mike Roxland - Truist Securities

Paul Quinn - RBC Capital Markets

Operator

Good morning. My name is Lisa and I will be your conference operator today. At this time, I would like to welcome everyone to the PotlatchDeltic's Third 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]

Thank you. I would now like to 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, Lisa. Good morning and welcome to PotlatchDeltic's third 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 turn the call over to Eric for some comments and then I will review our third quarter results and our outlook.

Eric Cremers

Thank you, Jerry. We reported third quarter total adjusted EBITDA of $101 million after the market closed yesterday. That makes eight out of the last nine quarters that our quarterly EBITDA has exceeded $100 million. We are having another really strong year with EBITDA of $522 million through the first three quarters.

Our financial results reflect the strength of our leverage to lumber strategy. Our Wood Products segment's adjusted EBITDA was $31 million in the third quarter. Lumber prices were lower than last quarter as expected, but they are still at attractive levels. The composite price has stabilized over the last couple of weeks and has increased modestly to $494 per thousand board feet after declining 12 weeks in a row.

Lumber futures are also back above $500 per thousand board feet. We continue to expect that lumber prices will remain above long-term averages. We shipped 265 million board feet of lumber in the third quarter which was 11 million feet more than we shipped in Q2. Transportation was a significant risk when we entered the third quarter, but availability of railcars and trucks has improved considerably.