Weyerhaeuser Company · NYSE:WY
Weyerhaeuser — Q1 2021 Earnings Presentation
25 slides from Weyerhaeuser's earnings presentation, Apr 30, 2021
Slide 1: Weyerhaeuser Earnings Results First Quarter 2021
2021 WEYERHAEUSER EARNINGS RESULTS FIRST QUARTER 2021 | April 30, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation 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: future quarterly cas
Slide 3: 2021 Q1 Consolidated Results
2021 Q1 CONSOLIDATED RESULTS $ Millions 2020 2021 $ Millions (except EPS) 2020 2021 Adjusted EBITDA Q4 Q1 Change Consolidated Statement of Operations Q4 Q1 Timberlands $ 167 $ 172 $ 5 Before Special Items Net sales $ 2,063 $ 2,506 Real Estate, Energy & Natural Resources 23 96 73 Costs of sales 1,392
Slide 4: Earnings Before Special Items
EARNINGS BEFORE SPECIAL ITEMS $ Millions (except EPS) 2020 Q4 2021 Q1 Pretax After-Tax Diluted Pretax After-Tax Diluted Earnings Earnings EPS Earnings Earnings EPS Earnings Before Special Items $ 440 $ 361 $ 0.48 $ 870 $ 681 $ 0.91 Special Items: Early extinguishment of debt charge (58) (58) (0.07)
Slide 5: Adjusted EBITDA
ADJUSTED EBITDA1 $150 TOTAL COMPANY2 REAL ESTATE & ENR $1,200 $1,101 $101 $ Millions $96 $100 $900 $ Millions $745 $657 $57 $60 $600 $50 $413 $386 $23 $300 $0 $0 Q1.20 Q2.20 Q3.20 Q4.20 Q1.21 Real Estate $ 86 42 44 4 76 Q1.20 Q2.20 Q3.20 Q4.20 Q1.21 ENR $ 15 15 16 19 20 $250 TIMBERLANDS $900 WOOD PR
Slide 6: Timberlands Segment
TIMBERLANDS SEGMENT TIMBERLANDS ($ Millions) 2020 2021 TIMBERLANDS ($ Millions) 2020 2021 Adjusted EBITDA by Region Q4 Q1 Segment Statement of Operations Q4 Q1 West $ 102 $ 101 Third-party sales $ 381 $ 379 South 64 69 Intersegment sales 121 134 North 2 3 Total Sales 502 513 Other (1) (1) Costs of s
Slide 7: Sales Volumes, Realizations and Export Revenue
SALES VOLUMES, REALIZATIONS AND EXPORT REVENUE 3rd-Party Log Sales and Realizations - West1 3rd-Party Log Sales and Realizations - South $130.69 3,000 $124.37 $140 7,000 $40 $34.27 $33.68 $33.68 $33.69 $34.50 Volum es (Thousands of tons) $109.01 Volum es (Thousands of tons) $104.91 $104.90 2,400 5,6
Slide 8: Fee Harvest Volume and Intersegment Sales Volume
FEE HARVEST VOLUME AND INTERSEGMENT SALES VOLUME FEE HARVEST VOLUME INTERSEGMENT LOG SALES VOLUME 7,500 1,800 6,130 5,914 6,250 5,596 1,500 1,331 5,509 1,307 Thousands of tons 5,376 1,220 Thousands of tons 1,127 5,000 1,200 1,076 3,750 900 737 761 720 646 652 2,310 2,236 2,500 2,085 2,101 600 1,911
Slide 9: Real Estate, Energy & Natural Resources (ENR) Segment
REAL ESTATE, ENERGY & NATURAL RESOURCES (ENR) SEGMENT REAL ESTATE & ENR ($ Millions) 2020 2021 REAL ESTATE & ENR ($ Millions) 2020 2021 Adjusted EBITDA by Business Q4 Q1 Segment Statement of Operations Q4 Q1 Real Estate $ 4$ 76 Total sales $ 30 $ 106 Energy & Natural Resources 19 20 Costs of sales 9
Slide 10: Real Estate, Energy & Natural Resources (ENR) Segment: Acres Sold
REAL ESTATE, ENERGY & NATURAL RESOURCES (ENR) SEGMENT ACRES SOLD AVERAGE PRICE PER ACRE 60 $7,000 $6,316 45 45 $5,700 Acres (thousands) 35 Price per acre 31 $4,400 30 $3,803 19 $3,100 15 $1,992 $1,800 $1,501 1 $1,381 0 Q1.20 Q2.20 Q3.20 Q4.20 Q1.21 $500 Q1.20 Q2.20 Q3.20 Q4.20 Q1.21 West 85% 79% 86%
Slide 11: Wood Products Segment
WOOD PRODUCTS SEGMENT WOOD PRODUCTS ($ Millions) 2020 2021 WOOD PRODUCTS ($ Millions) 2020 2021 Adjusted EBITDA by Business Q4 Q1 Segment Statement of Operations Q4 Q1 Lumber $ 254 $ 513 Total sales $ 1,652 $ 2,021 OSB 220 300 Costs of sales 1,109 1,124 Engineered Wood Products 37 42 Gross margin 54
Slide 12: Third-Party Sales Volumes and Realizations
THIRD-PARTY SALES VOLUMES AND REALIZATIONS1 Lumber OSB $864 3,500 $900 $614 3,500 $650 $503 Volumes (Millions of Square Ft.) Volumes (Millions of Board Ft.) $674 2,800 $720 Realizations ($/MBF) $609 2,800 $520 Realizations ($/M 3/8") $395 2,100 $438 $540 2,100 $390 $416 $246 $240 1,400 1,222 1,225 1
Slide 13: Unallocated Items
UNALLOCATED ITEMS UNALLOCATED ITEMS ($ Millions)1 2020 2021 UNALLOCATED ITEMS ($ Millions) 1 2020 2021 Q4 Q1 Q4 Q1 Unallocated corporate function expenses and variable 3 $ (20) $ (23) $ (31) $ (25) Costs of sales compensation expense 4 G&A expense (29) (26) Liability classified share-based compensat
Slide 14: Financial Items
FINANCIAL ITEMS KEY FINANCIAL METRICS ($ Millions) 2020 2021 Cash Flow from Operations $698 $750 Q4 Q1 $608 $600 Ending Cash Balance $ 495 $ 1,016 $450 $391 $ Millions 1 Total Debt $ 5,475 $ 5,475 $444 $300 Net Debt to Adjusted EBITDA (LTM)2 2.3 1.5 $150 3 Net Debt to Enterprise Value 17% 14% $86 $0
Slide 15: Adjusted Funds Available for Distribution
ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION1 TARGETED RETURN OF CASH ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION ($ Millions) 2021 TO SHAREHOLDERS Q1 YTD Calculated on an Annual Basis Net Cash from Operations $ 698 Capital Expenditures 2 (53) Adjustments to FAD — Annual Adjusted FAD Adjusted Funds Avail
Slide 16: Outlook: 2021 Q2 vs. 2021 Q1
OUTLOOK: 2021 Q2 vs. 2021 Q1 SEGMENT COMMENTS TIMBERLANDS • Significantly higher Western fee harvest volumes offset by seasonally higher forestry and road expenses • Significantly higher Southern fee harvest volumes, comparable average sales realizations, and seasonally higher forestry and road expe
Slide 17: Earnings Summary
EARNINGS SUMMARY $ Millions (except EPS) 2020 2021 Adjusted EBITDA by Segment Q1 Q2 Q3 Q4 Q1 Timberlands $ 173 $ 140 $ 130 $ 167 $ 172 Real Estate, Energy & Natural Resources 101 57 60 23 96 Wood Products 184 198 615 530 889 Unallocated Items (45) (9) (60) (63) (56) Total Adjusted EBITDA1 $ 413 $ 38
Slide 18: Earnings Per Share Reconciliation
EARNINGS PER SHARE RECONCILIATION 2020 2021 Q1 Q2 Q3 Q4 Q1 Diluted EPS Before Special Items $ 0.18 $ 0.11 $ 0.52 $ 0.48 $ 0.91 Special Items: Pension settlement charge — — — (0.26) — Early extinguishment of debt charges — (0.02) (0.03) (0.07) — Legal benefit 0.02 — — — — Product remediation recovery
Slide 19: Adjusted EBITDA Reconciliation by Segment
ADJUSTED EBITDA RECONCILIATION By Segment $ Millions 2018 2019 2020 2021 FY FY Q1 Q2 Q3 Q4 FY Q1 LTM Timberlands $ 902 $ 680 $ 173 $ 140 $ 130 $ 167 $ 610 $ 172 $ 609 Real Estate & ENR 264 274 101 57 60 23 241 96 236 Wood Products 987 476 184 198 615 530 1,527 889 2,232 Unallocated Items (121) (154)
Slide 20: Adjusted EBITDA Reconciliation: Timberlands
ADJUSTED EBITDA RECONCILIATION Timberlands $ Millions 2020 2021 Q1 Q2 Q3 Q4 Q1 West $ 93 $ 73 $ 72 $ 102 $ 101 South 78 70 62 64 69 North 3 (1) — 2 3 Other (1) (2) (4) (1) (1) 1 Total Timberlands Adjusted EBITDA $ 173 $ 140 $ 130 $ 167 $ 172 West (28) (27) (25) (26) (28) South (37) (36) (34) (34) (3
Slide 21: Adjusted EBITDA Reconciliation: Real Estate, Energy & Natural Resources
ADJUSTED EBITDA RECONCILIATION Real Estate, Energy & Natural Resources $ Millions 2020 2021 Q1 Q2 Q3 Q4 Q1 Real Estate $ 86 $ 42 $ 44 $ 4 $ 76 Energy & Natural Resources 15 15 16 19 20 1 Total Real Estate & ENR Adjusted EBITDA $ 101 $ 57 $ 60 $ 23 $ 96 Depletion, depreciation & amortization (3) (4)
Slide 22: Adjusted EBITDA Reconciliation: Wood Products
ADJUSTED EBITDA RECONCILIATION Wood Products $ Millions 2020 2021 Q1 Q2 Q3 Q4 Q1 Lumber $ 79 $ 103 $ 363 $ 254 $ 513 OSB 45 41 160 220 300 EWP 51 42 58 37 42 Distribution 12 13 37 24 39 Other (3) (1) (3) (5) (5) Total Wood Products Adjusted EBITDA1, 2 $ 184 $ 198 $ 615 $ 530 $ 889 Lumber (27) (26) (
Slide 23: Adjusted EBITDA Reconciliation: Unallocated
ADJUSTED EBITDA RECONCILIATION Unallocated $ Millions 2020 2021 Q1 Q2 Q3 Q4 Q1 1 Total Unallocated Adjusted EBITDA $ (45) $ (9) $ (60) $ (63) $ (56) Total depletion, depreciation & amortization (2) (1) (2) (1) (2) Special items included in operating income (loss) 12 — — — — Operating Loss (GAAP) $ (
Slide 24: Net Debt to Adjusted EBITDA Reconciliation
NET DEBT TO ADJUSTED EBITDA RECONCILIATION $ Millions 2020 2021 Q1 Q2 Q3 Q4 Q1 1,2 Net Debt to Adjusted EBITDA (LTM) 4.5 4.1 2.9 2.3 1.5 Total debt $ 7,426 $ 6,299 $ 5,974 $ 5,475 $ 5,475 Less: cash and cash equivalents 1,458 643 787 495 1,016 Net Debt $ 5,968 $ 5,656 $ 5,187 $ 4,980 $ 4,459 Adjuste
Slide 25: Funds Available for Distribution Reconciliation
FUNDS AVAILABLE FOR DISTRIBUTION RECONCILIATION ADJUSTED FUNDS AVAILABLE FOR DISTRIBUTION ($ Millions) 2018 2019 2020 2021 FY FY FY Q1 Net Cash from Operations $ 1,112 $ 966 $ 1,529 $ 698 Capital Expenditures (427) (384) (281) (53) 1 Funds Available for Distribution $ 685 $ 582 $ 1,248 $ 645 Cash fo