PotlatchDeltic Corporation (NASDAQ:PCH) Q2 2022 Earnings Conference Call July 26, 2022 12:00 PM ET

Company Participants

Jerry Richards - Vice President and Chief Financial Officer

Eric Cremers - President and Chief Executive Officer

Conference Call Participants

Ketan Mamtora - BMO Capital Markets

Kurt Yinger - D.A. Davidson

Mark Weintraub - Seaport Research

Paul Quinn - RBC Capital Markets

John Babcock - Bank of America

Mike Roxland - Truist Securities

George Staphos - Bank of America

Operator

Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the PotlatchDeltic’s Second Quarter 2022 Conference Call. Today's conference is being recorded. 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'd 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, David. Good morning, everyone and welcome to PotlatchDeltic's second 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 will review our second quarter results and our outlook.

Eric Cremers

Thank you, Jerry. We reported second quarter total adjusted EBITDA of $175 million after the market closed yesterday. This is the second highest EBITDA PotlatchDeltic has ever reported in a second quarter. Additionally, our quarterly EBITDA has exceeded $100 million in seven out of the last eight quarters, we have generated nearly $1.4 billion of EBITDA over those eight quarters. Those financial results reflect the strength of our leverage to lumber strategy.

Speaking of lumber, wood products generated $107 million of adjusted EBITDA in the second quarter. As expected, lumber prices moderated during the quarter from the extraordinarily high levels we saw in Q1 when the random length framing lumber composite price exceeded $1,300 per thousand board feet. The composite price has increased every week since reaching a low of $578 per thousand board feet in the middle of June and lumber prices are at very attractive levels. We expect lumber prices to remain well above long term averages for the rest of the year.