PotlatchDeltic Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance across its business segments. Total revenues for Q3 2024 were $255.1 million, a decrease of $10.4 million from $265.5 million in Q3 2023. However, year-to-date revenues increased to $803.9 million, up $34.4 million from $769.6 million in the same period last year.
The company's operating income for Q3 2024 fell significantly to $7.2 million, down from $36.2 million in Q3 2023. For the nine-month period, operating income also declined to $19.9 million from $85.7 million in the prior year. Net income for Q3 2024 was $3.3 million, a sharp drop from $23.7 million in Q3 2023, while year-to-date net income decreased to $16.7 million from $62.2 million.
The decline in profitability was attributed to several factors, including lower lumber prices and reduced shipments, particularly due to planned downtime at the Waldo sawmill, which recently underwent modernization. The average lumber sales price fell to $402 per MBF in Q3 2024 from $481 per MBF in Q3 2023. The Wood Products segment reported revenues of $139.4 million for Q3 2024, down from $165.1 million in the same quarter last year, with Adjusted EBITDDA turning negative at $(9.6) million.
In contrast, the Real Estate segment showed strong growth, with revenues increasing to $38.7 million in Q3 2024 from $19.2 million in Q3 2023, driven by higher sales of rural acres and residential lots. Year-to-date, Real Estate revenues reached $145.5 million, up from $60.1 million in the previous year.
PotlatchDeltic's cash and cash equivalents decreased to $161.1 million as of September 30, 2024, down from $230.1 million at the end of 2023. The company reported net cash from operating activities of $143.1 million for the nine months, an increase from $117.3 million in the same period last year.
Strategically, the company completed the Waldo Modernization Project, which is expected to enhance sawmill capacity significantly. Additionally, PotlatchDeltic repurchased 666,475 shares of common stock for $27.4 million during the nine months ended September 30, 2024, with remaining authorization for future repurchases totaling $97.6 million.
Overall, while PotlatchDeltic experienced revenue growth year-to-date, its profitability faced challenges due to market conditions and operational adjustments.
About POTLATCHDELTIC CORP
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