Weyerhaeuser Investor Relations
Apr 29, 2022
SEATTLE, April 29, 2022 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported first quarter net earnings of $771 million, or $1.03 per diluted share, on net sales of $3.1 billion. This compares with net earnings of $681 million, or 91 cents per diluted share, on net sales of $2.5 billion for the same period last year and net earnings of $416 million for the fourth quarter of 2021. Excluding an after-tax charge of $207 million for special items, the company reported first quarter net earnings of $978 million, or $1.31 per diluted share. This compares with net earnings before special items of $367 million for the fourth quarter of 2021. There were no special items in first quarter 2021.
View our earnings release and financial statements in a printer-friendly PDF.
Adjusted EBITDA for the first quarter of 2022 was $1.5 billion compared with $1.1 billion for the same period last year and $674 million for the fourth quarter of 2021.
"I am extremely proud of our first quarter results," said Devin W. Stockfish, president and chief executive officer. "Our teams delivered the company's strongest first quarter Adjusted EBITDA on record notwithstanding ongoing operational and supply chain challenges. In addition, we increased our base dividend by 5.9 percent and refinanced $900 million of debt in the quarter. We've also made meaningful progress towards our multi-year growth targets with the signing of our first carbon capture and storage agreement. Looking forward, we remain constructive on the demand fundamentals that will drive growth for our businesses and are well positioned to deliver superior long-term value and returns for our shareholders."
WEYERHAEUSER FINANCIAL HIGHLIGHTS | 2021 | 2022 | 2021 | |||
(millions, except per share data) | Q4 | Q1 | Q1 | |||
Net sales | $2,206 | $3,112 | $2,506 | |||
Net earnings | $416 | $771 | $681 | |||
Net earnings per diluted share | $0.55 | $1.03 | $0.91 | |||
Weighted average shares outstanding, diluted | 751 | 749 | 750 | |||
Net earnings before special items(1)(2) | $367 | $978 | $681 | |||
Net earnings per diluted share before special items(1) | $0.49 | $1.31 | $0.91 | |||
Adjusted EBITDA(1) | $674 | $1,497 | $1,101 | |||
Net cash from operations | $494 | $957 | $698 | |||
Adjusted FAD(3) | $181 | $850 | $645 |
(1) | Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, 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. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release. |
(2) | First quarter 2022 after-tax special items include a loss on debt extinguishment of $207 million. Special items for prior periods presented are included in the reconciliation tables within this release. |
(3) | Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company's liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release. |
TIMBERLANDS
FINANCIAL HIGHLIGHTS | 2021 | 2022 | ||||
(millions) | Q4 | Q1 | Change | |||
Net sales | $565 | $626 | $61 | |||
Net contribution to pretax earnings | $110 | $182 | $72 | |||
Adjusted EBITDA | $176 | $247 | $71 |
Q1 2022 Performance – In the West, fee harvest volumes were significantly higher than the fourth quarter and per unit log and haul costs were lower due to the seasonal transition to lower elevation harvest activity. Domestic sales realizations and sales volumes were significantly higher. Export sales realizations were significantly higher, driven by strong demand in Japan, while export sales volumes were significantly lower as the company shifted volume from China to the domestic market to capitalize on strong pricing. In the South, sales realizations for sawlogs and fiber logs were slightly higher, while fee harvest volumes were seasonally lower. Per unit log and haul costs were moderately higher, primarily due to fuel-related transportation costs. Forestry and road costs decreased seasonally.
Q2 2022 Outlook – Weyerhaeuser anticipates second quarter earnings before special items and Adjusted EBITDA will be significantly lower than the first quarter, but higher than any other quarter since fourth quarter 2018. In the West, the company expects comparable fee harvest volumes, slightly lower sales realizations, and significantly higher per unit log and haul costs. In the South, the company expects comparable sales realizations and moderately higher fee harvest volumes and per unit log and haul costs. Forestry and road costs will be seasonally higher.
REAL ESTATE, ENERGY & NATURAL RESOURCES
FINANCIAL HIGHLIGHTS | 2021 | 2022 | ||||
(millions) | Q4 | Q1 | Change | |||
Net sales | $59 | $128 | $69 | |||
Net contribution to pretax earnings | $36 | $81 | $45 | |||
Adjusted EBITDA | $49 | $116 | $67 |
Q1 2022 Performance – Earnings and Adjusted EBITDA increased from the fourth quarter due to higher real estate sales. The number of acres sold increased significantly due to the timing of transactions, and the average price per acre decreased due to the mix of properties sold.
Q2 2022 Outlook – Weyerhaeuser anticipates second quarter earnings will be comparable to second quarter 2021 and Adjusted EBITDA will be slightly higher than second quarter 2021. The company expects the average basis as a percentage of sales and acres sold to be higher year over year.
WOOD PRODUCTS
FINANCIAL HIGHLIGHTS | 2021 | 2022 | ||||
(millions) | Q4 | Q1 | Change | |||
Net sales | $1,718 | $2,519 | $801 | |||
Net contribution to pretax earnings | $516 | $1,182 | $666 | |||
Pretax benefit for special items | $(50) | $— | $50 | |||
Net contribution to pretax earnings before special items | $466 | $1,182 | $716 | |||
Adjusted EBITDA | $517 | $1,233 | $716 |
Q1 2022 Performance – Sales realizations for lumber and oriented strand board increased 76 percent and 61 percent, respectively, compared with fourth quarter averages. Production volumes for lumber were moderately higher due to less weather-related downtime and planned maintenance, while sales volumes were slightly lower as a result of ongoing transportation disruptions. Log costs were significantly higher, primarily for western logs. Production volumes for oriented strand board were slightly higher due to less planned maintenance, sales volumes were moderately higher, and fiber costs were significantly higher. Sales realizations for engineered wood products improved from the fourth quarter, which was partially offset by moderately higher raw material costs, primarily for oriented strand board webstock and resin. Distribution margins improved across all products.
Q2 2022 Outlook – Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be higher than the first quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. The company expects significantly higher sales volumes for lumber, as well as moderately lower log costs and unit manufacturing costs. For oriented strand board, the company expects moderately higher sales volumes, comparable fiber costs, and slightly lower unit manufacturing costs. Engineered wood products production and sales volumes are expected to be significantly higher with comparable sales realizations, partially offset by significantly higher raw material costs, primarily for oriented strand board webstock. Distribution commodity product margins are expected to be significantly lower.
UNALLOCATED
FINANCIAL HIGHLIGHTS | 2021 | 2022 | ||||
(millions) | Q4 | Q1 | Change | |||
Net charge to pretax earnings | $(57) | $(117) | $(60) | |||
Pretax benefit for special items | $(15) | $— | $15 | |||
Net charge to pretax earnings before special items | $(72) | $(117) | $(45) | |||
Adjusted EBITDA | $(68) | $(99) | $(31) |
Q1 2022 Performance – First quarter results include a $59 million noncash charge for the elimination of intersegment profit in inventory and LIFO due to elevated levels of high-value inventory.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2021, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
EARNINGS CALL INFORMATION
Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on April 29, 2022 to discuss first quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on April 29, 2022.
To join the conference call from within North America, dial 877-407-0792 (access code: 13724914) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13724914). Replays will be available for two weeks at 844-512-2921 (access code: 13724914) from within North America, and at 412-317-6671 (access code: 13724914) from outside North America.
FORWARD-LOOKING STATEMENTS
This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, with respect to our outlook and expectations concerning the following: earnings and Adjusted EBITDA for the company and for each of our businesses; log sales realizations; log and haul, forestry and road costs and expenses; fee harvest volumes; basis as a percentage of sales and acres to be sold; sales volumes, realizations, manufacturing and materials costs for our Wood Products lines; distribution commodity product margins and demand fundamentals affecting our business; and long-term shareholder value and returns. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words and expressions such as "anticipate," "expect," "looking forward," "planned," "will," and similar words and expressions. They may use the positive, negative or another variation of those and similar words and expressions. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:
It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.
Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS
We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) for the business segments, as those are the most directly comparable U.S. GAAP measures for each.
The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2021:
(millions) | Timberlands | Real Estate & ENR | Wood Products | Unallocated Items | Total | |||||
Adjusted EBITDA by Segment: | ||||||||||
Net earnings | $416 | |||||||||
Interest expense, net of capitalized interest | 77 | |||||||||
Income taxes | 112 | |||||||||
Net contribution (charge) to earnings | $110 | $36 | $516 | $(57) | $605 | |||||
Non-operating pension and other post-employment benefit costs | — | — | — | 5 | 5 | |||||
Interest income and other | — | — | — | (1) | (1) | |||||
Operating income (loss) | 110 | 36 | 516 | (53) | 609 | |||||
Depreciation, depletion and amortization | 66 | 4 | 51 | — | 121 | |||||
Basis of real estate sold | — | 9 | — | — | 9 | |||||
Special items included in operating income (loss)(1)(2) | — | — | (50) | (15) | (65) | |||||
Adjusted EBITDA | $176 | $49 | $517 | $(68) | $674 |
(1) | Operating income (loss) for Wood Products includes pretax special items consisting of a $37 million product remediation recovery and a $13 million insurance recovery. |
(2) | Operating income (loss) for Unallocated Items includes a pretax special item consisting of a $15 million noncash legal benefit. |
The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2022:
(millions) | Timberlands | Real Estate & ENR | Wood Products | Unallocated Items | Total | |||||
Adjusted EBITDA by Segment: | ||||||||||
Net earnings | $771 | |||||||||
Interest expense, net of capitalized interest | 72 | |||||||||
Loss on debt extinguishment(1) | 276 | |||||||||
Income taxes | 209 | |||||||||
Net contribution (charge) to earnings | $182 | $81 | $1,182 | $(117) | $1,328 | |||||
Non-operating pension and other post-employment benefit costs | — | — | — | 15 | 15 | |||||
Interest income and other | — | — | — | 1 | 1 | |||||
Operating income (loss) | 182 | 81 | 1,182 | (101) | 1,344 | |||||
Depreciation, depletion and amortization | 65 | 4 | 51 | 2 | 122 | |||||
Basis of real estate sold | — | 31 | — | — | 31 | |||||
Adjusted EBITDA | $247 | $116 | $1,233 | $(99) | $1,497 |
(1) | Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt. |
The table below reconciles Adjusted EBITDA for the quarter ended March 31, 2021:
(millions) | Timberlands | Real Estate & ENR | Wood Products | Unallocated Items | Total | |||||
Adjusted EBITDA by Segment: | ||||||||||
Net earnings | $681 | |||||||||
Interest expense, net of capitalized interest | 79 | |||||||||
Income taxes | 189 | |||||||||
Net contribution (charge) to earnings | $108 | $66 | $840 | $(65) | $949 | |||||
Non-operating pension and other post-employment benefit costs | — | — | — | 8 | 8 | |||||
Interest income and other | — | — | — | (1) | (1) | |||||
Operating income (loss) | 108 | 66 | 840 | (58) | 956 | |||||
Depreciation, depletion and amortization | 64 | 3 | 49 | 2 | 118 | |||||
Basis of real estate sold | — | 27 | — | — | 27 | |||||
Adjusted EBITDA | $172 | $96 | $889 | $(56) | $1,101 |
RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS
We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.
The table below reconciles net earnings before special items to net earnings:
2021 | 2022 | 2021 | ||||
(millions) | Q4 | Q1 | Q1 | |||
Net earnings | $416 | $771 | $681 | |||
Loss on debt extinguishment | — | 207 | — | |||
Insurance recovery | (9) | — | — | |||
Legal benefit | (12) | — | — | |||
Product remediation recovery | (28) | — | — | |||
Net earnings before special items | $367 | $978 | $681 |
The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:
2021 | 2022 | 2021 | ||||
Q4 | Q1 | Q1 | ||||
Net earnings per diluted share | $0.55 | $1.03 | $0.91 | |||
Loss on debt extinguishment | — | 0.28 | — | |||
Insurance recovery | (0.01) | — | — | |||
Legal benefit | (0.01) | — | — | |||
Product remediation recovery | (0.04) | — | — | |||
Net earnings per diluted share before special items | $0.49 | $1.31 | $0.91 |
RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS
We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.
The table below reconciles Adjusted FAD to net cash from operations:
2021 | 2022 | 2021 | ||||
(millions) | Q4 | Q1 | Q1 | |||
Net cash from operations | $494 | $957 | $698 | |||
Capital expenditures | (218) | (70) | (53) | |||
Adjustments to FAD(1) | (95) | (37) | — | |||
Adjusted FAD | $181 | $850 | $645 |
(1) | Adjustments to FAD include a $37 million product remediation insurance recovery received in first quarter 2022 and a $95 million tax refund received in fourth quarter 2021 associated with our $300 million voluntary contribution to our U.S. qualified pension plan in 2018. |
For more information contact:
Analysts – Andy Taylor, 206-539-3907
Media - Nancy Thompson, 919-861-0342
Weyerhaeuser Company | Exhibit 99.2 | ||||||||||||
Q1.2022 Analyst Package | |||||||||||||
Preliminary results (unaudited) | |||||||||||||
Consolidated Statement of Operations | |||||||||||||
Q4 | Q1 | ||||||||||||
in millions | December 31, | March 31, 2022 | March 31, 2021 | ||||||||||
Net sales | $ | 2,206 | $ | 3,112 | $ | 2,506 | |||||||
Costs of sales | 1,501 | 1,647 | 1,430 | ||||||||||
Gross margin | 705 | 1,465 | 1,076 | ||||||||||
Selling expenses | 27 | 23 | 20 | ||||||||||
General and administrative expenses | 113 | 92 | 90 | ||||||||||
Other operating costs (income), net | (44) | 6 | 10 | ||||||||||
Operating income | 609 | 1,344 | 956 | ||||||||||
Non-operating pension and other post-employment benefit costs | (5) | (15) | (8) | ||||||||||
Interest income and other | 1 | (1) | 1 | ||||||||||
Interest expense, net of capitalized interest | (77) | (72) | (79) | ||||||||||
Loss on debt extinguishment | — | (276) | — | ||||||||||
Earnings before income taxes | 528 | 980 | 870 | ||||||||||
Income taxes | (112) | (209) | (189) | ||||||||||
Net earnings | $ | 416 | $ | 771 | $ | 681 |
Per Share Information | ||||||||||||
Q4 | Q1 | |||||||||||
December 31, | March 31, 2022 | March 31, 2021 | ||||||||||
Earnings per share | ||||||||||||
Basic | $ | 0.56 | $ | 1.03 | $ | 0.91 | ||||||
Diluted | $ | 0.55 | $ | 1.03 | $ | 0.91 | ||||||
Dividends paid per common share | $ | 0.67 | $ | 1.63 | $ | 0.17 | ||||||
Weighted average shares outstanding (in thousands): | ||||||||||||
Basic | 749,020 | 747,507 | 748,718 | |||||||||
Diluted | 750,942 | 748,823 | 750,024 | |||||||||
Common shares outstanding at end of period (in thousands) | 747,301 | 745,442 | 748,751 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA) | ||||||||||||
Q4 | Q1 | |||||||||||
in millions | December 31, | March 31, 2022 | March 31, 2021 | |||||||||
Net earnings | $ | 416 | $ | 771 | $ | 681 | ||||||
Non-operating pension and other post-employment benefit costs | 5 | 15 | 8 | |||||||||
Interest income and other | (1) | 1 | (1) | |||||||||
Interest expense, net of capitalized interest | 77 | 72 | 79 | |||||||||
Loss on debt extinguishment | — | 276 | — | |||||||||
Income taxes | 112 | 209 | 189 | |||||||||
Operating income | 609 | 1,344 | 956 | |||||||||
Depreciation, depletion and amortization | 121 | 122 | 118 | |||||||||
Basis of real estate sold | 9 | 31 | 27 | |||||||||
Special items included in operating income | (65) | — | — | |||||||||
Adjusted EBITDA(1) | $ | 674 | $ | 1,497 | $ | 1,101 |
(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. |
Weyerhaeuser Company | Total Company Statistics | |||||||||||
Q1.2022 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Special Items Included in Net Earnings (Income Tax Affected) | ||||||||||||
Q4 | Q1 | |||||||||||
in millions | December 31, 2021 | March 31, 2022 | March 31, 2021 | |||||||||
Net earnings | $ | 416 | $ | 771 | $ | 681 | ||||||
Loss on debt extinguishment(1) | — | 207 | — | |||||||||
Insurance recovery | (9) | — | — | |||||||||
Legal benefit | (12) | — | — | |||||||||
Product remediation recovery | (28) | — | — | |||||||||
Net earnings before special items(2) | $ | 367 | $ | 978 | $ | 681 | ||||||
Q4 | Q1 | |||||||||||
December 31, 2021 | March 31, 2022 | March 31, 2021 | ||||||||||
Net earnings per diluted share | $ | 0.55 | $ | 1.03 | $ | 0.91 | ||||||
Loss on debt extinguishment(1) | — | 0.28 | — | |||||||||
Insurance recovery | (0.01) | — | — | |||||||||
Legal benefit | (0.01) | — | — | |||||||||
Product remediation recovery | (0.04) | — | — | |||||||||
Net earnings per diluted share before special items(2) | $ | 0.49 | $ | 1.31 | $ | 0.91 |
(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 | ||||||||||||
Q4 | Q1 | |||||||||||
in millions | December 31, 2021 | March 31, 2022 | March 31, 2021 | |||||||||
Pension and post-employment costs: | ||||||||||||
Pension and post-employment service costs | $ | 10 | $ | 10 | $ | 11 | ||||||
Non-operating pension and other post-employment benefit costs | 5 | 15 | 8 | |||||||||
Total company pension and post-employment costs | $ | 15 | $ | 25 | $ | 19 |
Weyerhaeuser Company | ||||||||||||
Q1.2022 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Consolidated Balance Sheet | ||||||||||||
in millions | December 31, 2021 | March 31, 2022 | March 31, 2021 | |||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 1,879 | $ | 1,205 | $ | 1,016 | ||||||
Receivables, net | 507 | 745 | 589 | |||||||||
Receivables for taxes | 24 | 8 | 7 | |||||||||
Inventories | 520 | 611 | 505 | |||||||||
Prepaid expenses and other current assets | 205 | 206 | 141 | |||||||||
Total current assets | 3,135 | 2,775 | 2,258 | |||||||||
Property and equipment, net | 2,057 | 2,026 | 1,971 | |||||||||
Construction in progress | 175 | 203 | 91 | |||||||||
Timber and timberlands at cost, less depletion | 11,510 | 11,469 | 11,776 | |||||||||
Minerals and mineral rights, less depletion | 255 | 252 | 265 | |||||||||
Deferred tax assets | 17 | 15 | 106 | |||||||||
Other assets | 503 | 376 | 407 | |||||||||
Total assets | $ | 17,652 | $ | 17,116 | $ | 16,874 | ||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $ | — | $ | — | $ | 150 | ||||||
Accounts payable | 281 | 310 | 236 | |||||||||
Accrued liabilities | 673 | 674 | 549 | |||||||||
Total current liabilities | 954 | 984 | 935 | |||||||||
Long-term debt, net | 5,099 | 5,053 | 5,325 | |||||||||
Deferred tax liabilities | 46 | 66 | 26 | |||||||||
Deferred pension and other post-employment benefits | 440 | 432 | 893 | |||||||||
Other liabilities | 346 | 344 | 367 | |||||||||
Total liabilities | 6,885 | 6,879 | 7,546 | |||||||||
Total equity | 10,767 | 10,237 | 9,328 | |||||||||
Total liabilities and equity | $ | 17,652 | $ | 17,116 | $ | 16,874 |
Weyerhaeuser Company | ||||||||||||
Q1.2022 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||
Q4 | Q1 | |||||||||||
in millions | December 31, 2021 | March 31, 2022 | March 31, 2021 | |||||||||
Cash flows from operations: | ||||||||||||
Net earnings | $ | 416 | $ | 771 | $ | 681 | ||||||
Noncash charges (credits) to earnings: | ||||||||||||
Depreciation, depletion and amortization | 121 | 122 | 118 | |||||||||
Basis of real estate sold | 9 | 31 | 27 | |||||||||
Deferred income taxes, net | (2) | 14 | 8 | |||||||||
Pension and other post-employment benefits | 15 | 25 | 19 | |||||||||
Share-based compensation expense | 7 | 8 | 7 | |||||||||
Loss on debt extinguishment | — | 276 | — | |||||||||
Change in: | ||||||||||||
Receivables, net | (10) | (238) | (139) | |||||||||
Receivables and payables for taxes | 6 | 110 | 120 | |||||||||
Inventories | (22) | (87) | (60) | |||||||||
Prepaid expenses and other current assets | (4) | (1) | (2) | |||||||||
Accounts payable and accrued liabilities | (3) | (62) | (60) | |||||||||
Pension and post-employment benefit contributions and payments | (3) | (4) | (8) | |||||||||
Other | (36) | (8) | (13) | |||||||||
Net cash from operations | $ | 494 | $ | 957 | $ | 698 | ||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures for property and equipment | $ | (202) | $ | (50) | $ | (31) | ||||||
Capital expenditures for timberlands reforestation | (16) | (20) | (22) | |||||||||
Acquisition of timberlands | — | (18) | — | |||||||||
Other | 1 | 1 | — | |||||||||
Net cash from investing activities | $ | (217) | $ | (87) | $ | (53) | ||||||
Cash flows from financing activities: | ||||||||||||
Cash dividends on common shares | $ | (502) | $ | (1,218) | $ | (127) | ||||||
Net proceeds from issuance of long-term debt | — | 881 | — | |||||||||
Payments on long-term debt | (150) | (1,203) | — | |||||||||
Proceeds from exercise of stock options | 5 | 12 | 17 | |||||||||
Repurchases of common shares | (74) | (118) | — | |||||||||
Other | (3) | (18) | (14) | |||||||||
Net cash from financing activities | $ | (724) | $ | (1,664) | $ | (124) | ||||||
Net change in cash, cash equivalents and restricted cash | $ | (447) | $ | (794) | $ | 521 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,446 | 1,999 | 495 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,999 | $ | 1,205 | $ | 1,016 | ||||||
Cash paid during the period for: | ||||||||||||
Interest, net of amounts capitalized | $ | 78 | $ | 78 | $ | 75 | ||||||
Income taxes, net of refunds | $ | 115 | $ | 85 | $ | 66 |
Weyerhaeuser Company | Timberlands Segment | |||||||||||
Q1.2022 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Sales to unaffiliated customers | $ | 429 | $ | 465 | $ | 379 | ||||||
Intersegment sales | 136 | 161 | 134 | |||||||||
Total net sales | 565 | 626 | 513 | |||||||||
Costs of sales | 432 | 423 | 383 | |||||||||
Gross margin | 133 | 203 | 130 | |||||||||
Selling expenses | 1 | — | — | |||||||||
General and administrative expenses | 23 | 24 | 23 | |||||||||
Other operating income, net | (1) | (3) | (1) | |||||||||
Operating income and Net contribution to earnings | $ | 110 | $ | 182 | $ | 108 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Operating income | $ | 110 | $ | 182 | $ | 108 | ||||||
Depreciation, depletion and amortization | 66 | 65 | 64 | |||||||||
Adjusted EBITDA(1) | $ | 176 | $ | 247 | $ | 172 | ||||||
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Total decrease (increase) in working capital(2) | $ | (21) | $ | (34) | $ | (13) | ||||||
Cash spent for capital expenditures(3) | $ | (38) | $ | (30) | $ | (28) |
(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) | |||||||||||||
Q4.2021 | Q1.2022 | Q1.2021 | |||||||||||
Third Party | Delivered logs: | ||||||||||||
Net Sales | West | $ | 220 | $ | 259 | $ | 201 | ||||||
(millions) | South | 160 | 154 | 131 | |||||||||
North | 14 | 15 | 16 | ||||||||||
Total delivered logs | 394 | 428 | 348 | ||||||||||
Stumpage and pay-as-cut timber | 9 | 9 | 6 | ||||||||||
Recreational and other lease revenue | 17 | 17 | 16 | ||||||||||
Other revenue | 9 | 11 | 9 | ||||||||||
Total | $ | 429 | $ | 465 | $ | 379 | |||||||
Delivered Logs | West | $ | 146.39 | $ | 161.29 | $ | 130.69 | ||||||
Third Party Sales | South | $ | 36.55 | $ | 37.15 | $ | 34.50 | ||||||
Realizations (per ton) | North | $ | 66.74 | $ | 72.79 | $ | 62.83 | ||||||
Delivered Logs | West | 1,501 | 1,604 | 1,539 | |||||||||
Third Party Sales | South | 4,358 | 4,135 | 3,782 | |||||||||
Volumes (tons, thousands) | North | 217 | 210 | 261 | |||||||||
Fee Harvest Volumes | West | 1,954 | 2,240 | 2,101 | |||||||||
(tons, thousands) | South | 6,160 | 5,842 | 5,376 | |||||||||
North | 285 | 278 | 337 |
(4) | Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. |
Weyerhaeuser Company | Real Estate, Energy & Natural Resources Segment | ||||||||||
Q1.2022 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Segment Statement of Operations | |||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | ||||||||
Net sales | $ | 59 | $ | 128 | $ | 106 | |||||
Costs of sales | 16 | 41 | 34 | ||||||||
Gross margin | 43 | 87 | 72 | ||||||||
General and administrative expenses | 7 | 6 | 6 | ||||||||
Operating income and Net contribution to earnings | $ | 36 | $ | 81 | $ | 66 | |||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) | |||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | ||||||||
Operating income | $ | 36 | $ | 81 | $ | 66 | |||||
Depreciation, depletion and amortization | 4 | 4 | 3 | ||||||||
Basis of real estate sold | 9 | 31 | 27 | ||||||||
Adjusted EBITDA(1) | $ | 49 | $ | 116 | $ | 96 | |||||
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | |||||||||||
Selected Segment Items | |||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | ||||||||
Cash spent for capital expenditures | $ | — | $ | — | $ | — | |||||
Segment Statistics | |||||||||||||
Q4.2021 | Q1.2022 | Q1.2021 | |||||||||||
Net Sales | Real Estate | $ | 34 | $ | 97 | $ | 84 | ||||||
(millions) | Energy and Natural Resources | 25 | 31 | 22 | |||||||||
Total | $ | 59 | $ | 128 | $ | 106 | |||||||
Acres Sold | Real Estate | 6,920 | 24,126 | 19,455 | |||||||||
Price per Acre | Real Estate | $ | 4,385 | $ | 3,785 | $ | 3,803 | ||||||
Basis as a Percent of Real Estate Net Sales | Real Estate | 26 | % | 32 | % | 32 | % |
Weyerhaeuser Company | Wood Products Segment | |||||||||||
Q1.2022 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Net sales | $ | 1,718 | $ | 2,519 | $ | 2,021 | ||||||
Costs of sales | 1,185 | 1,276 | 1,124 | |||||||||
Gross margin | 533 | 1,243 | 897 | |||||||||
Selling expenses | 23 | 21 | 19 | |||||||||
General and administrative expenses | 34 | 35 | 35 | |||||||||
Other operating costs (income), net | (40) | 5 | 3 | |||||||||
Operating income and Net contribution to earnings | $ | 516 | $ | 1,182 | $ | 840 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Operating income | $ | 516 | $ | 1,182 | $ | 840 | ||||||
Depreciation, depletion and amortization | 51 | 51 | 49 | |||||||||
Special items | (50) | — | — | |||||||||
Adjusted EBITDA(1) | $ | 517 | $ | 1,233 | $ | 889 | ||||||
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pretax) | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Insurance recovery | $ | 13 | $ | — | $ | — | ||||||
Product remediation recovery | $ | 37 | $ | — | $ | — | ||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Total decrease (increase) in working capital(2) | $ | (11) | $ | (371) | $ | (212) | ||||||
Cash spent for capital expenditures | $ | (174) | $ | (39) | $ | (25) |
(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 | Q4.2021 | Q1.2022 | Q1.2021 | ||||||||||
Structural Lumber | Third party net sales | $ | 701 | $ | 1,206 | $ | 990 | ||||||
(volumes presented | Third party sales realizations | $ | 592 | $ | 1,041 | $ | 864 | ||||||
in board feet) | Third party sales volumes(3) | 1,185 | 1,157 | 1,145 | |||||||||
Production volumes | 1,148 | 1,203 | 1,211 | ||||||||||
Oriented Strand | Third party net sales | $ | 327 | $ | 564 | $ | 438 | ||||||
Board | Third party sales realizations | $ | 490 | $ | 787 | $ | 614 | ||||||
(volumes presented | Third party sales volumes(3) | 668 | 717 | 714 | |||||||||
in square feet 3/8") | Production volumes | 725 | 739 | 742 | |||||||||
Engineered Solid | Third party net sales | $ | 188 | $ | 196 | $ | 142 | ||||||
Section | Third party sales realizations | $ | 3,319 | $ | 3,433 | $ | 2,285 | ||||||
(volumes presented | Third party sales volumes(3) | 5.7 | 5.7 | 6.2 | |||||||||
in cubic feet) | Production volumes | 6.0 | 5.7 | 6.0 | |||||||||
Engineered | Third party net sales | $ | 132 | $ | 137 | $ | 83 | ||||||
I-joists | Third party sales realizations | $ | 2,888 | $ | 2,969 | $ | 1,773 | ||||||
(volumes presented | Third party sales volumes(3) | 45 | 46 | 47 | |||||||||
in lineal feet) | Production volumes | 46 | 44 | 44 | |||||||||
Softwood Plywood | Third party net sales | $ | 40 | $ | 58 | $ | 56 | ||||||
(volumes presented | Third party sales realizations | $ | 581 | $ | 783 | $ | 594 | ||||||
in square feet 3/8") | Third party sales volumes(3) | 68 | 75 | 94 | |||||||||
Production volumes | 60 | 66 | 80 | ||||||||||
Medium Density | Third party net sales | $ | 43 | $ | 48 | $ | 48 | ||||||
Fiberboard | Third party sales realizations | $ | 995 | $ | 1,082 | $ | 842 | ||||||
(volumes presented | Third party sales volumes(3) | 43 | 44 | 57 | |||||||||
in square feet 3/4") | Production volumes | 43 | 44 | 56 |
(3) | Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. |
Weyerhaeuser Company | Unallocated Items | |||||||||||
Q1.2022 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, interest income and other as well as legacy obligations. | ||||||||||||
Net Charge to Earnings | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Unallocated corporate function and variable compensation expense | $ | (35) | $ | (31) | $ | (25) | ||||||
Liability classified share-based compensation | (4) | 1 | (1) | |||||||||
Foreign exchange gain (loss) | 3 | — | (2) | |||||||||
Elimination of intersegment profit in inventory and LIFO | 10 | (59) | (17) | |||||||||
Other, net | (27) | (12) | (13) | |||||||||
Operating loss | (53) | (101) | (58) | |||||||||
Non-operating pension and other post-employment benefit costs | (5) | (15) | (8) | |||||||||
Interest income and other | 1 | (1) | 1 | |||||||||
Net charge to earnings | $ | (57) | $ | (117) | $ | (65) | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1) | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Operating loss | $ | (53) | $ | (101) | $ | (58) | ||||||
Depreciation, depletion and amortization | — | 2 | 2 | |||||||||
Special items | (15) | — | — | |||||||||
Adjusted EBITDA(1) | $ | (68) | $ | (99) | $ | (56) | ||||||
(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 | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Legal benefit | $ | 15 | $ | — | $ | — | ||||||
Special items included in operating loss and net charge to earnings | $ | 15 | $ | — | $ | — | ||||||
Unallocated Selected Items | ||||||||||||
in millions | Q4.2021 | Q1.2022 | Q1.2021 | |||||||||
Cash spent for capital expenditures | $ | (6) | $ | (1) | $ | — | ||||||
SOURCE Weyerhaeuser Company
https://investor.weyerhaeuser.com/2022-04-29-Weyerhaeuser-reports-first-quarter-results