EX-99.2 3 wy-ex99_2.htm EX-99.2 EX-99.2

 

 

Weyerhaeuser Company

Exhibit 99.2

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

 

Consolidated Statement of Operations

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,
 2023

 

 

June 30,
 2023

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

Net sales

 

$

1,881

 

 

$

1,997

 

 

$

2,022

 

 

$

2,276

 

 

$

5,900

 

 

$

8,361

 

Costs of sales

 

 

1,512

 

 

 

1,528

 

 

 

1,520

 

 

 

1,694

 

 

 

4,560

 

 

 

5,130

 

Gross margin

 

 

369

 

 

 

469

 

 

 

502

 

 

 

582

 

 

 

1,340

 

 

 

3,231

 

Selling expenses

 

 

22

 

 

 

22

 

 

 

22

 

 

 

24

 

 

 

66

 

 

 

70

 

General and administrative expenses

 

 

101

 

 

 

108

 

 

 

107

 

 

 

100

 

 

 

316

 

 

 

294

 

Other operating costs, net

 

 

10

 

 

 

20

 

 

 

20

 

 

 

1

 

 

 

50

 

 

 

19

 

Operating income

 

 

236

 

 

 

319

 

 

 

353

 

 

 

457

 

 

 

908

 

 

 

2,848

 

Non-operating pension and other post-employment benefit costs

 

 

(9

)

 

 

(12

)

 

 

(12

)

 

 

(12

)

 

 

(33

)

 

 

(38

)

Interest income and other

 

 

12

 

 

 

18

 

 

 

24

 

 

 

9

 

 

 

54

 

 

 

9

 

Interest expense, net of capitalized interest

 

 

(66

)

 

 

(70

)

 

 

(72

)

 

 

(67

)

 

 

(208

)

 

 

(204

)

Loss on debt extinguishment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(276

)

Earnings before income taxes

 

 

173

 

 

 

255

 

 

 

293

 

 

 

387

 

 

 

721

 

 

 

2,339

 

Income taxes

 

 

(22

)

 

 

(25

)

 

 

(54

)

 

 

(77

)

 

 

(101

)

 

 

(470

)

Net earnings

 

$

151

 

 

$

230

 

 

$

239

 

 

$

310

 

 

$

620

 

 

$

1,869

 

 

 

Per Share Information

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

 

 

March 31,
 2023

 

 

June 30,
 2023

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

Earnings per share, basic and diluted

 

$

0.21

 

 

$

0.31

 

 

$

0.33

 

 

$

0.42

 

 

$

0.85

 

 

$

2.51

 

Dividends paid per common share

 

$

1.09

 

 

$

0.19

 

 

$

0.19

 

 

$

0.18

 

 

$

1.47

 

 

$

1.99

 

Weighted average shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

733,163

 

 

 

732,021

 

 

 

731,046

 

 

 

740,058

 

 

 

732,069

 

 

 

743,990

 

Diluted

 

 

733,546

 

 

 

732,362

 

 

 

731,742

 

 

 

740,975

 

 

 

732,542

 

 

 

745,081

 

Common shares outstanding at end of period
(in thousands)

 

 

732,507

 

 

 

730,850

 

 

 

730,128

 

 

 

737,547

 

 

 

730,128

 

 

 

737,547

 

 

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,
 2023

 

 

June 30,
 2023

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

Net earnings

 

$

151

 

 

$

230

 

 

$

239

 

 

$

310

 

 

$

620

 

 

$

1,869

 

Non-operating pension and other post-employment benefit costs

 

 

9

 

 

 

12

 

 

 

12

 

 

 

12

 

 

 

33

 

 

 

38

 

Interest income and other

 

 

(12

)

 

 

(18

)

 

 

(24

)

 

 

(9

)

 

 

(54

)

 

 

(9

)

Interest expense, net of capitalized interest

 

 

66

 

 

 

70

 

 

 

72

 

 

 

67

 

 

 

208

 

 

 

204

 

Loss on debt extinguishment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

276

 

Income taxes

 

 

22

 

 

 

25

 

 

 

54

 

 

 

77

 

 

 

101

 

 

 

470

 

Operating income

 

 

236

 

 

 

319

 

 

 

353

 

 

 

457

 

 

 

908

 

 

 

2,848

 

Depreciation, depletion and amortization

 

 

126

 

 

 

126

 

 

 

122

 

 

 

119

 

 

 

374

 

 

 

360

 

Basis of real estate sold

 

 

33

 

 

 

13

 

 

 

34

 

 

 

7

 

 

 

80

 

 

 

77

 

Special items included in operating income

 

 

—

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

—

 

Adjusted EBITDA(1)

 

$

395

 

 

$

469

 

 

$

509

 

 

$

583

 

 

$

1,373

 

 

$

3,285

 

 

(1) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Page 1 of 8

 

 

 

Weyerhaeuser Company

Total Company Statistics

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

Special Items Included in Net Earnings (Income Tax Affected)

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,
 2023

 

 

June 30,
 2023

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

Net earnings

 

$

151

 

 

$

230

 

 

$

239

 

 

$

310

 

 

$

620

 

 

$

1,869

 

Loss on debt extinguishment(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

207

 

Environmental remediation charge

 

 

—

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

8

 

 

 

—

 

Net earnings before special items(2)

 

$

151

 

 

$

238

 

 

$

239

 

 

$

310

 

 

$

628

 

 

$

2,076

 

 

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

 

 

March 31,
 2023

 

 

June 30,
 2023

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

Net earnings per diluted share

 

$

0.21

 

 

$

0.31

 

 

$

0.33

 

 

$

0.42

 

 

$

0.85

 

 

$

2.51

 

Loss on debt extinguishment(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.28

 

Environmental remediation charge

 

 

—

 

 

 

0.01

 

 

 

—

 

 

 

—

 

 

 

0.01

 

 

 

—

 

Net earnings per diluted share before special items(2)

 

$

0.21

 

 

$

0.32

 

 

$

0.33

 

 

$

0.42

 

 

$

0.86

 

 

$

2.79

 

 

(1) We recorded a total pretax loss on debt extinguishment of $276 million ($207 million after-tax) in first quarter 2022.

(2) Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company’s earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

 

Selected Total Company Items

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,
 2023

 

 

June 30,
 2023

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

Pension and post-employment costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and post-employment service costs

 

$

6

 

 

$

5

 

 

$

6

 

 

$

9

 

 

$

17

 

 

$

27

 

Non-operating pension and other post-employment benefit costs

 

 

9

 

 

 

12

 

 

 

12

 

 

 

12

 

 

 

33

 

 

 

38

 

Total company pension and post-employment costs

 

$

15

 

 

$

17

 

 

$

18

 

 

$

21

 

 

$

50

 

 

$

65

 

 

Page 2 of 8

 

 

 

Weyerhaeuser Company

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

 

Condensed Consolidated Balance Sheet

 

in millions

 

March 31,
2023

 

 

June 30,
2023

 

 

September 30,
2023

 

 

December 31,
2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

797

 

 

$

1,095

 

 

$

1,173

 

 

$

1,581

 

Short-term investments

 

 

—

 

 

 

665

 

 

 

668

 

 

 

—

 

Receivables, net

 

 

440

 

 

 

462

 

 

 

443

 

 

 

357

 

Receivables for taxes

 

 

28

 

 

 

18

 

 

 

18

 

 

 

42

 

Inventories

 

 

586

 

 

 

539

 

 

 

528

 

 

 

550

 

Prepaid expenses and other current assets

 

 

202

 

 

 

188

 

 

 

186

 

 

 

216

 

Total current assets

 

 

2,053

 

 

 

2,967

 

 

 

3,016

 

 

 

2,746

 

Property and equipment, net

 

 

2,157

 

 

 

2,133

 

 

 

2,106

 

 

 

2,171

 

Construction in progress

 

 

222

 

 

 

260

 

 

 

311

 

 

 

222

 

Timber and timberlands at cost, less depletion

 

 

11,564

 

 

 

11,512

 

 

 

11,521

 

 

 

11,604

 

Minerals and mineral rights, less depletion

 

 

211

 

 

 

207

 

 

 

203

 

 

 

214

 

Deferred tax assets

 

 

8

 

 

 

8

 

 

 

8

 

 

 

8

 

Other assets

 

 

365

 

 

 

383

 

 

 

385

 

 

 

375

 

Total assets

 

$

16,580

 

 

$

17,470

 

 

$

17,550

 

 

$

17,340

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

981

 

 

$

980

 

 

$

861

 

 

$

982

 

Accounts payable

 

 

266

 

 

 

254

 

 

 

288

 

 

 

247

 

Accrued liabilities

 

 

403

 

 

 

473

 

 

 

537

 

 

 

511

 

Total current liabilities

 

 

1,650

 

 

 

1,707

 

 

 

1,686

 

 

 

1,740

 

Long-term debt, net

 

 

4,072

 

 

 

4,817

 

 

 

4,818

 

 

 

4,071

 

Deferred tax liabilities

 

 

101

 

 

 

105

 

 

 

113

 

 

 

96

 

Deferred pension and other post-employment benefits

 

 

346

 

 

 

348

 

 

 

349

 

 

 

344

 

Other liabilities

 

 

335

 

 

 

352

 

 

 

356

 

 

 

340

 

Total liabilities

 

 

6,504

 

 

 

7,329

 

 

 

7,322

 

 

 

6,591

 

Total equity

 

 

10,076

 

 

 

10,141

 

 

 

10,228

 

 

 

10,749

 

Total liabilities and equity

 

$

16,580

 

 

$

17,470

 

 

$

17,550

 

 

$

17,340

 

 

 

 

Page 3 of 8

 

 

 

Weyerhaeuser Company

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

 

Consolidated Statement of Cash Flows

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,
 2023

 

 

June 30,
 2023

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

 

Sept 30,
2023

 

 

Sept 30,
2022

 

Cash flows from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

151

 

 

$

230

 

 

$

239

 

 

$

310

 

 

$

620

 

 

$

1,869

 

Noncash charges (credits) to earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

126

 

 

 

126

 

 

 

122

 

 

 

119

 

 

 

374

 

 

 

360

 

Basis of real estate sold

 

 

33

 

 

 

13

 

 

 

34

 

 

 

7

 

 

 

80

 

 

 

77

 

Pension and other post-employment benefits

 

 

15

 

 

 

17

 

 

 

18

 

 

 

21

 

 

 

50

 

 

 

65

 

Share-based compensation expense

 

 

8

 

 

 

9

 

 

 

9

 

 

 

8

 

 

 

26

 

 

 

25

 

Loss on debt extinguishment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

276

 

Other

 

 

3

 

 

 

(1

)

 

 

(6

)

 

 

3

 

 

 

(4

)

 

 

17

 

Change in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables, net

 

 

(83

)

 

 

(22

)

 

 

28

 

 

 

121

 

 

 

(77

)

 

 

81

 

Receivables and payables for taxes

 

 

14

 

 

 

13

 

 

 

24

 

 

 

(12

)

 

 

51

 

 

 

15

 

Inventories

 

 

(36

)

 

 

50

 

 

 

9

 

 

 

28

 

 

 

23

 

 

 

(30

)

Prepaid expenses and other current assets

 

 

(9

)

 

 

17

 

 

 

(13

)

 

 

(4

)

 

 

(5

)

 

 

(7

)

Accounts payable and accrued liabilities

 

 

(87

)

 

 

57

 

 

 

73

 

 

 

(8

)

 

 

43

 

 

 

(23

)

Pension and post-employment benefit contributions and payments

 

 

(6

)

 

 

(5

)

 

 

(5

)

 

 

(5

)

 

 

(16

)

 

 

(19

)

Other

 

 

(3

)

 

 

(8

)

 

 

(9

)

 

 

(26

)

 

 

(20

)

 

 

(41

)

Net cash from operations

 

$

126

 

 

$

496

 

 

$

523

 

 

$

562

 

 

$

1,145

 

 

$

2,665

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures for property and equipment

 

$

(50

)

 

$

(69

)

 

$

(90

)

 

$

(86

)

 

$

(209

)

 

$

(207

)

Capital expenditures for timberlands reforestation

 

 

(21

)

 

 

(12

)

 

 

(9

)

 

 

(8

)

 

 

(42

)

 

 

(38

)

Acquisition of timberlands

 

 

—

 

 

 

(2

)

 

 

(68

)

 

 

(3

)

 

 

(70

)

 

 

(286

)

Purchase of short-term investments

 

 

—

 

 

 

(664

)

 

 

—

 

 

 

—

 

 

 

(664

)

 

 

—

 

Other

 

 

2

 

 

 

(2

)

 

 

3

 

 

 

—

 

 

 

3

 

 

 

1

 

Net cash from investing activities

 

$

(69

)

 

$

(749

)

 

$

(164

)

 

$

(97

)

 

$

(982

)

 

$

(530

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends on common shares

 

$

(799

)

 

$

(139

)

 

$

(138

)

 

$

(133

)

 

$

(1,076

)

 

$

(1,485

)

Net proceeds from issuance of long-term debt

 

 

—

 

 

 

743

 

 

 

—

 

 

 

—

 

 

 

743

 

 

 

881

 

Payments on long-term debt

 

 

—

 

 

 

—

 

 

 

(118

)

 

 

—

 

 

 

(118

)

 

 

(1,203

)

Repurchases of common shares

 

 

(34

)

 

 

(51

)

 

 

(24

)

 

 

(143

)

 

 

(109

)

 

 

(402

)

Other

 

 

(8

)

 

 

(2

)

 

 

(1

)

 

 

—

 

 

 

(11

)

 

 

(5

)

Net cash from financing activities

 

$

(841

)

 

$

551

 

 

$

(281

)

 

$

(276

)

 

$

(571

)

 

$

(2,214

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash, cash equivalents and restricted cash

 

$

(784

)

 

$

298

 

 

$

78

 

 

$

189

 

 

$

(408

)

 

$

(79

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

1,581

 

 

 

797

 

 

 

1,095

 

 

 

1,731

 

 

 

1,581

 

 

 

1,999

 

Cash, cash equivalents and restricted cash at end of period

 

$

797

 

 

$

1,095

 

 

$

1,173

 

 

$

1,920

 

 

$

1,173

 

 

$

1,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest, net of amounts capitalized

 

$

57

 

 

$

70

 

 

$

63

 

 

$

62

 

 

$

190

 

 

$

211

 

Income taxes, net of refunds

 

$

6

 

 

$

12

 

 

$

22

 

 

$

92

 

 

$

40

 

 

$

446

 

 

 

Page 4 of 8

 

 

 

Weyerhaeuser Company

Timberlands Segment

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

 

Segment Statement of Operations

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Sales to unaffiliated customers

 

$

462

 

 

$

417

 

 

$

380

 

 

$

441

 

 

$

1,259

 

 

$

1,421

 

Intersegment sales

 

 

142

 

 

 

150

 

 

 

141

 

 

 

133

 

 

 

433

 

 

 

450

 

Total net sales

 

 

604

 

 

 

567

 

 

 

521

 

 

 

574

 

 

 

1,692

 

 

 

1,871

 

Costs of sales

 

 

461

 

 

 

439

 

 

 

417

 

 

 

442

 

 

 

1,317

 

 

 

1,360

 

Gross margin

 

 

143

 

 

 

128

 

 

 

104

 

 

 

132

 

 

 

375

 

 

 

511

 

Selling expenses

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

General and administrative expenses

 

 

25

 

 

 

24

 

 

 

25

 

 

 

25

 

 

 

74

 

 

 

73

 

Other operating income, net

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(2

)

 

 

(5

)

Operating income and Net contribution to earnings

 

$

120

 

 

$

104

 

 

$

78

 

 

$

107

 

 

$

302

 

 

$

442

 

 

 

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Operating income

 

$

120

 

 

$

104

 

 

$

78

 

 

$

107

 

 

$

302

 

 

$

442

 

Depreciation, depletion and amortization

 

 

68

 

 

 

68

 

 

 

65

 

 

 

61

 

 

 

201

 

 

 

192

 

Adjusted EBITDA(1)

 

$

188

 

 

$

172

 

 

$

143

 

 

$

168

 

 

$

503

 

 

$

634

 

 

(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

 

Selected Segment Items

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Total (increase) decrease in working capital(2)

 

$

(24

)

 

$

51

 

 

$

23

 

 

$

14

 

 

$

50

 

 

$

37

 

Cash spent for capital expenditures(3)

 

$

(26

)

 

$

(22

)

 

$

(26

)

 

$

(22

)

 

$

(74

)

 

$

(75

)

 

(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

(3) Does not include cash spent for the acquisition of timberlands.

 

 

Segment Statistics(4)

 

 

 

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Third Party

 

Delivered logs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

West

$

229

 

 

$

206

 

 

$

176

 

 

$

224

 

 

$

611

 

 

$

791

 

(millions)

 

South

 

168

 

 

 

162

 

 

 

155

 

 

 

166

 

 

 

485

 

 

 

480

 

 

North

 

17

 

 

 

7

 

 

 

11

 

 

 

15

 

 

 

35

 

 

 

40

 

 

Total delivered logs

 

414

 

 

 

375

 

 

 

342

 

 

 

405

 

 

 

1,131

 

 

 

1,311

 

 

Stumpage and pay-as-cut timber

 

16

 

 

 

15

 

 

 

12

 

 

 

10

 

 

 

43

 

 

 

30

 

 

Recreational and other lease revenue

 

18

 

 

 

17

 

 

 

19

 

 

 

18

 

 

 

54

 

 

 

51

 

 

Other revenue

 

14

 

 

 

10

 

 

 

7

 

 

 

8

 

 

 

31

 

 

 

29

 

 

Total

$

462

 

 

$

417

 

 

$

380

 

 

$

441

 

 

$

1,259

 

 

$

1,421

 

Delivered Logs

 

West

$

137.10

 

 

$

123.45

 

 

$

119.19

 

 

$

158.59

 

 

$

126.89

 

 

$

164.97

 

Third Party Sales

 

South

$

38.23

 

 

$

37.49

 

 

$

36.92

 

 

$

38.59

 

 

$

37.56

 

 

$

38.08

 

Realizations (per ton)

 

North

$

81.71

 

 

$

78.69

 

 

$

73.81

 

 

$

83.84

 

 

$

78.46

 

 

$

79.26

 

Delivered Logs

 

West

 

1,674

 

 

 

1,661

 

 

 

1,479

 

 

 

1,411

 

 

 

4,814

 

 

 

4,793

 

Third Party Sales

 

South

 

4,386

 

 

 

4,341

 

 

 

4,180

 

 

 

4,310

 

 

 

12,907

 

 

 

12,612

 

Volumes (tons, thousands)

 

North

 

204

 

 

 

98

 

 

 

148

 

 

 

177

 

 

 

450

 

 

 

505

 

Fee Harvest Volumes

 

West

 

2,245

 

 

 

2,292

 

 

 

2,137

 

 

 

1,760

 

 

 

6,674

 

 

 

6,085

 

(tons, thousands)

 

South

 

6,432

 

 

 

6,430

 

 

 

6,146

 

 

 

6,112

 

 

 

19,008

 

 

 

18,113

 

 

 

North

 

285

 

 

 

175

 

 

 

223

 

 

 

245

 

 

 

683

 

 

 

703

 

 

(4) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

Page 5 of 8

 

 

 

Weyerhaeuser Company

Real Estate, Energy & Natural Resources Segment

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

 

Segment Statement of Operations

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Net sales

 

$

101

 

 

$

80

 

 

$

105

 

 

$

68

 

 

$

286

 

 

$

313

 

Costs of sales

 

 

41

 

 

 

21

 

 

 

43

 

 

 

14

 

 

 

105

 

 

 

100

 

Gross margin

 

 

60

 

 

 

59

 

 

 

62

 

 

 

54

 

 

 

181

 

 

 

213

 

General and administrative expenses

 

 

7

 

 

 

7

 

 

 

6

 

 

 

6

 

 

 

20

 

 

 

19

 

Operating income and Net contribution to earnings

 

$

53

 

 

$

52

 

 

$

56

 

 

$

48

 

 

$

161

 

 

$

194

 

 

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Operating income

 

$

53

 

 

$

52

 

 

$

56

 

 

$

48

 

 

$

161

 

 

$

194

 

Depreciation, depletion and amortization

 

 

3

 

 

 

5

 

 

 

4

 

 

 

5

 

 

 

12

 

 

 

12

 

Basis of real estate sold

 

 

33

 

 

 

13

 

 

 

34

 

 

 

7

 

 

 

80

 

 

 

77

 

Adjusted EBITDA(1)

 

$

89

 

 

$

70

 

 

$

94

 

 

$

60

 

 

$

253

 

 

$

283

 

 

(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

 

Selected Segment Items

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Cash spent for capital expenditures

 

$

—

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

Segment Statistics

 

 

 

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Net Sales

Real Estate

 

$

72

 

 

$

47

 

 

$

79

 

 

$

30

 

 

$

198

 

 

$

217

 

(millions)

Energy and Natural Resources

 

 

29

 

 

 

33

 

 

 

26

 

 

 

38

 

 

 

88

 

 

 

96

 

 

Total

 

$

101

 

 

$

80

 

 

$

105

 

 

$

68

 

 

$

286

 

 

$

313

 

Acres Sold

Real Estate

 

 

20,753

 

 

 

9,281

 

 

 

25,721

 

 

 

5,014

 

 

 

55,755

 

 

 

56,046

 

Price per Acre

Real Estate

 

$

3,241

 

 

$

4,790

 

 

$

3,033

 

 

$

5,046

 

 

$

3,403

 

 

$

3,624

 

Basis as a Percent of
Real Estate Net Sales

Real Estate

 

 

46

%

 

 

28

%

 

 

43

%

 

 

23

%

 

 

40

%

 

 

35

%

 

 

 

Page 6 of 8

 

 

 

Weyerhaeuser Company

Wood Products Segment

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

 

Segment Statement of Operations

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Net sales

 

$

1,318

 

 

$

1,500

 

 

$

1,537

 

 

$

1,767

 

 

$

4,355

 

 

$

6,627

 

Costs of sales

 

 

1,159

 

 

 

1,218

 

 

 

1,195

 

 

 

1,360

 

 

 

3,572

 

 

 

4,050

 

Gross margin

 

 

159

 

 

 

282

 

 

 

342

 

 

 

407

 

 

 

783

 

 

 

2,577

 

Selling expenses

 

 

22

 

 

 

21

 

 

 

20

 

 

 

22

 

 

 

63

 

 

 

64

 

General and administrative expenses

 

 

36

 

 

 

37

 

 

 

38

 

 

 

36

 

 

 

111

 

 

 

106

 

Other operating costs, net

 

 

6

 

 

 

6

 

 

 

7

 

 

 

5

 

 

 

19

 

 

 

18

 

Operating income and Net contribution to earnings

 

$

95

 

 

$

218

 

 

$

277

 

 

$

344

 

 

$

590

 

 

$

2,389

 

 

 

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Operating income

 

$

95

 

 

$

218

 

 

$

277

 

 

$

344

 

 

$

590

 

 

$

2,389

 

Depreciation, depletion and amortization

 

 

53

 

 

 

52

 

 

 

51

 

 

 

51

 

 

 

156

 

 

 

151

 

Adjusted EBITDA(1)

 

$

148

 

 

$

270

 

 

$

328

 

 

$

395

 

 

$

746

 

 

$

2,540

 

 

(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

 

Selected Segment Items

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Total (increase) decrease in working capital(2)

 

$

(127

)

 

$

40

 

 

$

52

 

 

$

136

 

 

$

(35

)

 

$

(30

)

Cash spent for capital expenditures

 

$

(43

)

 

$

(56

)

 

$

(69

)

 

$

(68

)

 

$

(168

)

 

$

(163

)

 

(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

 

 

 

Segment Statistics

 

in millions, except for third party sales realizations

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Structural Lumber

Third party net sales

 

$

515

 

 

$

573

 

 

$

570

 

 

$

676

 

 

$

1,658

 

 

$

2,880

 

(volumes presented

Third party sales realizations

 

$

450

 

 

$

479

 

 

$

481

 

 

$

556

 

 

$

470

 

 

$

786

 

in board feet)

Third party sales volumes(3)

 

 

1,144

 

 

 

1,196

 

 

 

1,184

 

 

 

1,216

 

 

 

3,524

 

 

 

3,662

 

Production volumes

 

 

1,143

 

 

 

1,164

 

 

 

1,174

 

 

 

1,140

 

 

 

3,481

 

 

 

3,575

 

Oriented Strand

Third party net sales

 

$

208

 

 

$

215

 

 

$

284

 

 

$

287

 

 

$

707

 

 

$

1,348

 

Board

Third party sales realizations

 

$

269

 

 

$

299

 

 

$

416

 

 

$

401

 

 

$

325

 

 

$

622

 

(volumes presented

Third party sales volumes(3)

 

 

773

 

 

 

720

 

 

 

683

 

 

 

715

 

 

 

2,176

 

 

 

2,167

 

in square feet 3/8")

Production volumes

 

 

761

 

 

 

727

 

 

 

724

 

 

 

735

 

 

 

2,212

 

 

 

2,232

 

Engineered Solid

Third party net sales

 

$

169

 

 

$

215

 

 

$

216

 

 

$

233

 

 

$

600

 

 

$

676

 

Section

Third party sales realizations

 

$

3,643

 

 

$

3,571

 

 

$

3,458

 

 

$

3,946

 

 

$

3,549

 

 

$

3,754

 

(volumes presented

Third party sales volumes(3)

 

 

4.7

 

 

 

6.0

 

 

 

6.2

 

 

 

5.9

 

 

 

16.9

 

 

 

18.0

 

in cubic feet)

Production volumes

 

 

4.6

 

 

 

5.9

 

 

 

5.6

 

 

 

6.0

 

 

 

16.1

 

 

 

18.1

 

Engineered

Third party net sales

 

$

87

 

 

$

126

 

 

$

122

 

 

$

166

 

 

$

335

 

 

$

471

 

I-joists

Third party sales realizations

 

$

3,171

 

 

$

2,901

 

 

$

2,862

 

 

$

3,525

 

 

$

2,951

 

 

$

3,312

 

(volumes presented

Third party sales volumes(3)

 

 

27

 

 

 

44

 

 

 

42

 

 

 

47

 

 

 

113

 

 

 

142

 

in lineal feet)

Production volumes

 

 

25

 

 

 

38

 

 

 

42

 

 

 

47

 

 

 

105

 

 

 

141

 

Softwood Plywood

Third party net sales

 

$

41

 

 

$

44

 

 

$

42

 

 

$

47

 

 

$

127

 

 

$

158

 

(volumes presented

Third party sales realizations

 

$

490

 

 

$

474

 

 

$

488

 

 

$

632

 

 

$

484

 

 

$

720

 

in square feet 3/8")

Third party sales volumes(3)

 

 

83

 

 

 

94

 

 

 

86

 

 

 

74

 

 

 

263

 

 

 

219

 

Production volumes

 

 

74

 

 

 

84

 

 

 

77

 

 

 

64

 

 

 

235

 

 

 

197

 

Medium Density

Third party net sales

 

$

38

 

 

$

42

 

 

$

40

 

 

$

50

 

 

$

120

 

 

$

151

 

Fiberboard

Third party sales realizations

 

$

1,314

 

 

$

1,342

 

 

$

1,242

 

 

$

1,274

 

 

$

1,298

 

 

$

1,173

 

(volumes presented

Third party sales volumes(3)

 

 

29

 

 

 

31

 

 

 

33

 

 

 

40

 

 

 

93

 

 

 

129

 

in square feet 3/4")

Production volumes

 

 

34

 

 

 

33

 

 

 

34

 

 

 

38

 

 

 

101

 

 

 

130

 

 

(3) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

 

Page 7 of 8

 

 

 

Weyerhaeuser Company

Unallocated Items

Q3.2023 Analyst Package

Preliminary results (unaudited)

 

Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses and interest income and other.

 

 

Net Charge to Earnings

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Unallocated corporate function and variable compensation expense

 

$

(27

)

 

$

(32

)

 

$

(33

)

 

$

(36

)

 

$

(92

)

 

$

(103

)

Liability classified share-based compensation

 

 

—

 

 

 

(2

)

 

 

2

 

 

 

2

 

 

 

—

 

 

 

5

 

Foreign exchange (loss) gain

 

 

(1

)

 

 

2

 

 

 

—

 

 

 

9

 

 

 

1

 

 

 

12

 

Elimination of intersegment profit in inventory and LIFO

 

 

9

 

 

 

3

 

 

 

(4

)

 

 

2

 

 

 

8

 

 

 

(39

)

Other, net

 

 

(13

)

 

 

(26

)

 

 

(23

)

 

 

(19

)

 

 

(62

)

 

 

(52

)

Operating loss

 

 

(32

)

 

 

(55

)

 

 

(58

)

 

 

(42

)

 

 

(145

)

 

 

(177

)

Non-operating pension and other post-employment benefit costs

 

 

(9

)

 

 

(12

)

 

 

(12

)

 

 

(12

)

 

 

(33

)

 

 

(38

)

Interest income and other

 

 

12

 

 

 

18

 

 

 

24

 

 

 

9

 

 

 

54

 

 

 

9

 

Net charge to earnings

 

$

(29

)

 

$

(49

)

 

$

(46

)

 

$

(45

)

 

$

(124

)

 

$

(206

)

 

 

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Operating loss

 

$

(32

)

 

$

(55

)

 

$

(58

)

 

$

(42

)

 

$

(145

)

 

$

(177

)

Depreciation, depletion and amortization

 

 

2

 

 

 

1

 

 

 

2

 

 

 

2

 

 

 

5

 

 

 

5

 

Special items

 

 

—

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

—

 

Adjusted EBITDA(1)

 

$

(30

)

 

$

(43

)

 

$

(56

)

 

$

(40

)

 

$

(129

)

 

$

(172

)

 

(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

 

 

Unallocated Special Items Included in Net Charge to Earnings (Pretax)

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Environmental remediation charge

 

$

—

 

 

$

11

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

Special items included in operating loss and net charge to earnings

 

$

—

 

 

$

11

 

 

$

—

 

 

$

—

 

 

$

11

 

 

$

—

 

 

Unallocated Selected Items

 

in millions

 

Q1.2023

 

 

Q2.2023

 

 

Q3.2023

 

 

Q3.2022

 

 

YTD.2023

 

 

YTD.2022

 

Cash spent for capital expenditures

 

$

(2

)

 

$

(3

)

 

$

(4

)

 

$

(4

)

 

$

(9

)

 

$

(7

)

 

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