10/28/10 - Potlatch Corporation today reported financial results for the third quarter ended September 30, 2010.
"We continue to improve our balance sheet with the sale of non-strategic timberland and each of our business segments reported solid quarterly results based on each segment's market conditions through the third quarter," said Michael Covey, chairman, president and chief executive officer of Potlatch Corporation. "Our Resource segment had another strong quarter as both fee harvest volumes and prices increased over the second quarter of 2010 and the third quarter of 2009. This was the Resource segment's highest quarterly operating income since the third quarter of 2008, if the results of the timber deed in 2009 are removed. In our Real Estate segment, we completed the sale of non-strategic timberland in Wisconsin and Arkansas, and we continue to see steady interest in our higher and better use, or HBU, and rural real estate properties. As expected, our Wood Products segment experienced price pressure during the third quarter, but lumber sales volumes were adequate to operate our mills at capacity and the segment managed to operate at a positive cash flow level," concluded Mr. Covey.
Q3 2010 FINANCIAL SUMMARY
Net earnings for the quarter, including discontinued operations, were $18.1 million, or $0.45 per diluted common share, compared to $45.8 million, or $1.15 per diluted common share for Q3 2009.
In Q3 2010, Potlatch completed a non-strategic timberland sale of approximately 41,700 acres in Wisconsin and Arkansas to RMK for $28.7 million, which provided $0.12 of positive EPS impact.
In Q3 2009, a timber deed sale was completed, resulting in $48.6 million of EBITDDA and a positive EPS impact of $1.04.
EBITDDA in Q3 2010 was $56.4 million, compared to $33.1 million in Q2 2010 and $63.0 million in Q3 2009, which included the results of the timber deed sale. Excluding the non-strategic timberland sale in Arkansas and Wisconsin, EBITDDA was $28.2 million in Q3 2010 and EPS was $0.33. Excluding the timber deed sale, EBITDDA was $14.4 million in Q3 2009 and EPS was $0.11.