8-K
WEYERHAEUSER CO (WY)
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2021
WEYERHAEUSER COMPANY
(Exact name of registrant as specified in charter)
| Washington | 1-4825 | 91-0470860 |
|---|---|---|
| (State or other jurisdiction of<br><br><br>incorporation or organization) | (Commission<br><br><br>File Number) | (IRS Employer<br><br><br>Identification Number) |
220 Occidental Avenue South
Seattle, Washington 98104-7800
(Address of principal executive offices)
(zip code)
Registrant’s telephone number, including area code:
(206) 539-3000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br><br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.25 per share | WY | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934:
| ☐ | Emerging growth company |
|---|---|
| ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Table of Contents
TABLE OF CONTENTS
| Item 2.02. Results of Operations and Financial Condition |
|---|
| Item 9.01. Financial Statements and Exhibits |
| SIGNATURES |
| EXHIBIT 99.1 |
| EXHIBIT 99.2 |
Table of Contents
Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition
On October 29, 2021, Weyerhaeuser Company issued a press release announcing its financial results for the quarter ended September 30, 2021. Copies of the press release and the exhibit thereto are furnished as Exhibit 99.1 and Exhibit 99.2 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Section 9 - Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
(d) Exhibits. The following items are furnished as exhibits to this report.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release of Weyerhaeuser Company issued October 29, 2021 reporting results of operations for the quarter ended September 30, 2021. |
| 99.2 | Exhibit to press release of Weyerhaeuser Company issued October 29, 2021. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WEYERHAEUSER COMPANY | |
|---|---|
| By: | /s/ David M. Wold |
| Name: | David M. Wold |
| Its: | Vice President and Chief Accounting Officer |
| (Principal Accounting Officer) |
Date: October 29, 2021
wy-ex991_6.htm
EXHIBIT 99.1
| For more information contact: | Analysts - Andy Taylor (206) 539-3907 |
|---|---|
| Media - Nancy Thompson (919) 861-0342 |
Weyerhaeuser reports third quarter results
| • | Achieved net earnings of $482 million, or $0.64 per diluted share |
|---|---|
| • | Generated $746 million of Adjusted EBITDA |
| --- | --- |
SEATTLE, October 29, 2021 – Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings of $482 million, or 64 cents per diluted share, on net sales of $2.3 billion. This compares with net earnings of $283 million, or 38 cents per diluted share, on net sales of $2.1 billion for the same period last year.
Excluding an after-tax benefit of $32 million for special items related to a gain on the sale of timberlands, the company reported third quarter net earnings of $450 million, or 60 cents per diluted share. This compares with net earnings before special items of $386 million for the same period last year and $1.0 billion for the second quarter of 2021.
Adjusted EBITDA for the third quarter of 2021 was $746 million compared with $745 million for the same period last year and $1.6 billion for the second quarter of 2021.
“In the third quarter, we delivered strong results across each of our businesses despite weather-related operational disruptions, continued supply chain challenges and the ongoing pandemic,” said Devin W. Stockfish, president and chief executive officer. “Our teams did an exceptional job navigating these headwinds and I’m extremely proud of their collective focus on operating safely, strong execution and continuing to serve our customers. Year to date, we have generated more than $3.4 billion of Adjusted EBITDA and $2.4 billion of Adjusted Funds Available for Distribution. We expect this record cash flow generation to result in a significant supplemental dividend payment to shareholders in the first quarter of 2022. We are bullish on the underlying demand fundamentals for U.S. housing and growth opportunities for our businesses and remain intently focused on delivering superior shareholder value.”
| WEYERHAEUSER FINANCIAL HIGHLIGHTS | 2021 | 2021 | 2020 |
|---|---|---|---|
| (millions, except per share data) | Q2 | Q3 | Q3 |
| Net sales | $3,144 | $2,345 | $2,110 |
| Net earnings | $1,028 | $482 | $283 |
| Net earnings per diluted share | $1.37 | $0.64 | $0.38 |
| Weighted average shares outstanding, diluted | 752 | 751 | 748 |
| Net earnings before special items^(1)(2)^ | $1,028 | $450 | $386 |
| Net earnings per diluted share before special items^(1)^ | $1.37 | $0.60 | $0.52 |
| Adjusted EBITDA^(1)^ | $1,573 | $746 | $745 |
| Net cash from operations | $1,308 | $659 | $608 |
| Adjusted FAD^(3)^ | $1,236 | $561 | $543 |
| (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) | Third quarter 2021 after-tax special items includes a $32 million gain on the sale of timberlands. 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 | 2021 | |
|---|---|---|---|
| (millions) | Q2 | Q3 | Change |
| Net sales | $541 | $552 | $11 |
| Net contribution to pretax earnings | $113 | $133 | $20 |
| Pretax benefit for special items | $— | ($32) | ($32) |
| Net contribution to pretax earnings before special items | $113 | $101 | ($12) |
| Adjusted EBITDA | $180 | $165 | ($15) |
Q3 2021 Performance – In the West, fee harvest volumes were modestly lower than the second quarter due to continued salvage operations and harvest restrictions resulting from regional wildfire activity. Per unit log and haul costs increased as Western harvest activity shifted to higher elevation units. Export sales realizations were moderately higher, driven by strong demand. In the South, sales realizations for sawlogs and fiber logs improved and fee harvest volumes increased slightly, but harvest activity was affected by persistent wet conditions and weather events. Per unit log and haul costs and forestry and road costs were slightly higher.
Third quarter special items consist of a $32 million gain on the previously announced sale of 145 thousand acres of timberlands in the North Cascades region of Washington, which was completed in July.
Q4 2021 Outlook – Weyerhaeuser expects fourth quarter earnings and Adjusted EBITDA will be comparable to the third quarter. In the West, the company expects moderately higher fee harvest volumes and lower per unit log and haul costs, as salvage-related harvest will decrease. Domestic sales realizations are expected to be moderately lower compared to the third quarter. In the South, the company expects slightly higher fee harvest volumes due to improving weather conditions as well as slightly higher sales realizations as mills rebuild from lower than normal inventory levels. This is expected to be offset by slightly higher per unit log and haul costs as well as moderately higher forestry and road costs.
REAL ESTATE, ENERGY & NATURAL RESOURCES
| FINANCIAL HIGHLIGHTS | 2021 | 2021 | |
|---|---|---|---|
| (millions) | Q2 | Q3 | Change |
| Net sales | $110 | $69 | ($41) |
| Net contribution to pretax earnings | $63 | $45 | ($18) |
| Adjusted EBITDA | $91 | $60 | ($31) |
Q3 2021 Performance – Earnings and Adjusted EBITDA decreased from the second quarter due to lower real estate sales. The number of real estate acres sold decreased due to the timing of real estate transactions, partially offset by an increase in the average price per acre due to the mix of properties sold.
Q4 2021 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be significantly lower than the third quarter due to the timing of transactions. The company still expects full year 2021 Adjusted EBITDA will be approximately $290 million, although basis as a percentage of real estate sales is now expected to be 25 to 30 percent for the full year.
WOOD PRODUCTS
| FINANCIAL HIGHLIGHTS | 2021 | 2021 | |
|---|---|---|---|
| (millions) | Q2 | Q3 | Change |
| Net sales | $2,629 | $1,853 | ($776) |
| Net contribution to pretax earnings | $1,338 | $517 | ($821) |
| Adjusted EBITDA | $1,386 | $565 | ($821) |
Q3 2021 Performance – Sales realizations for lumber and oriented strand board decreased 52 percent and 24 percent, respectively, compared with second quarter averages. Sales volumes for lumber increased moderately due to improvement in home center takeaway, partially offset by weather-related downtime. Oriented strand board production and sales volumes were modestly higher due to less downtime for planned maintenance. Sales realizations improved significantly across most engineered wood products, and the company continued to benefit from previously announced price increases for solid section and I-joist products. Raw material costs for Wood Products increased, primarily for oriented strand board webstock, resin and veneer.
Q4 2021 Outlook – Weyerhaeuser anticipates fourth quarter earnings and Adjusted EBITDA will be higher than the third quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. The company expects higher sales volumes, primarily for oriented strand board, as well as improved manufacturing costs due to lower planned maintenance downtime. Raw material costs are expected to be lower, primarily for oriented strand board webstock.
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 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. 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 October 29, 2021 to discuss third quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October 29, 2021.
To join the conference call from within North America, dial 877-407-0792 (access code: 13714049) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13714049). Replays will be available for two weeks at 844-512-2921 (access code: 13714049) from within North America, and at 412-317-6671 (access code: 13714049) 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: fourth quarter earnings and Adjusted EBITDA for each of our businesses and full-year Adjusted EBITDA for our Real Estate, Energy & Natural Resources business; log sales realizations; forestry and road costs; log and haul costs; fee harvest volumes, including salvage-related harvest activity; basis as a percentage of real estate sales; raw materials costs for our Wood Products business; the amount of manufacturing downtime due to scheduled maintenance; average sales realizations for our lumber and oriented strand board products; sales volumes for oriented strand board and sales realizations for our lumber and oriented strand board product lines. 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 such as “anticipate,” “expect,” “planned,” “will,” and similar words and expressions. They may use the positive, negative or another variation of those and similar words. 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:
| ● | the effect of general economic conditions, including employment rates, interest rate levels, inflation, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar; |
|---|---|
| ● | the effect of COVID-19 and other viral or disease outbreaks, including but not limited to any related regulatory restrictions or requirements, and their potential effects on our business, results of operations, cash flows, financial condition and future prospects; |
| --- | --- |
| ● | market demand for the company's products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions; |
| --- | --- |
| ● | changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen; |
| --- | --- |
| ● | restrictions on international trade and tariffs imposed on imports or exports; |
| --- | --- |
| ● | the availability and cost of shipping and transportation; |
| --- | --- |
| ● | economic activity in Asia, especially Japan and China; |
| --- | --- |
| ● | performance of our manufacturing operations, including maintenance and capital requirements; |
| --- | --- |
| ● | potential disruptions in our manufacturing operations; |
| --- | --- |
| ● | the level of competition from domestic and foreign producers; |
| --- | --- |
| ● | the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives; |
| --- | --- |
| ● | the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements; |
| --- | --- |
| ● | raw material availability and prices; |
| --- | --- |
| ● | the effect of weather; |
| --- | --- |
| ● | changes in global or regional climate conditions and governmental response to such changes; |
| --- | --- |
| ● | the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; |
| --- | --- |
| ● | energy prices; |
| --- | --- |
| ● | transportation and labor availability and costs; |
| --- | --- |
| ● | federal tax policies; |
| --- | --- |
| ● | the effect of forestry, land use, environmental and other governmental regulations; |
| --- | --- |
| ● | legal proceedings; |
| --- | --- |
| ● | performance of pension fund investments and related derivatives; |
| --- | --- |
| ● | the effect of timing of employee retirements and changes in the market price of our common stock on charges for share-based compensation; |
| --- | --- |
| ● | the accuracy of our estimates of costs and expenses related to contingent liabilities and the accuracy of our estimates of charges related to casualty losses; |
| --- | --- |
| ● | changes in accounting principles; and |
| --- | --- |
| ● | other risks and uncertainties identified in our 2020 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC. |
| --- | --- |
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 June 30, 2021:
| (millions) | Timberlands | Real Estate<br><br><br>& ENR | Wood<br><br><br>Products | Unallocated<br><br><br>Items | Total |
|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | |||||
| Net earnings | $1,028 | ||||
| Interest expense, net of capitalized interest | 78 | ||||
| Income taxes | 324 | ||||
| Net contribution (charge) to earnings | $113 | $63 | $1,338 | $(84) | $1,430 |
| Non-operating pension and other post-employment benefit costs | — | — | — | 1 | 1 |
| Interest income and other | — | — | — | (2) | (2) |
| Operating income (loss) | 113 | 63 | 1,338 | (85) | 1,429 |
| Depreciation, depletion and amortization | 67 | 4 | 48 | 1 | 120 |
| Basis of real estate sold | — | 24 | — | — | 24 |
| Adjusted EBITDA | $180 | $91 | $1,386 | $(84) | $1,573 |
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2021:
| (millions) | Timberlands | Real Estate<br><br><br>& ENR | Wood<br><br><br>Products | Unallocated<br><br><br>Items | Total |
|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | |||||
| Net earnings | $482 | ||||
| Interest expense, net of capitalized interest | 79 | ||||
| Income taxes | 84 | ||||
| Net contribution (charge) to earnings | $133 | $45 | $517 | $(50) | $645 |
| Non-operating pension and other post-employment benefit costs | — | — | — | 5 | 5 |
| Interest income and other | — | — | — | (1) | (1) |
| Operating income (loss) | 133 | 45 | 517 | (46) | 649 |
| Depreciation, depletion and amortization | 64 | 4 | 48 | 2 | 118 |
| Basis of real estate sold | — | 11 | — | — | 11 |
| Special items included in operating income (loss)^(1)^ | (32) | — | — | — | (32) |
| Adjusted EBITDA | $165 | $60 | $565 | $(44) | $746 |
| (1) | Operating income (loss) includes a pretax special item consisting of a $32 million gain on the sale of timberlands. | ||||
| --- | --- |
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2020:
| (millions) | Timberlands | Real Estate<br><br><br>& ENR | Wood<br><br><br>Products | Unallocated<br><br><br>Items | Total |
|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | |||||
| Net earnings | $283 | ||||
| Interest expense, net of capitalized interest^(1)^ | 111 | ||||
| Income taxes | 109 | ||||
| Net contribution (charge) to earnings | $(11) | $17 | $566 | $(69) | $503 |
| Non-operating pension and other post-employment benefit costs | — | — | — | 9 | 9 |
| Interest income and other | — | — | — | (2) | (2) |
| Operating income (loss) | (11) | 17 | 566 | (62) | 510 |
| Depreciation, depletion and amortization | 61 | 3 | 49 | 2 | 115 |
| Basis of real estate sold | — | 40 | — | — | 40 |
| Special items included in operating income (loss)^(2)^ | 80 | — | — | — | 80 |
| Adjusted EBITDA | $130 | $60 | $615 | $(60) | $745 |
| (1) | Interest expense, net of capitalized interest includes a pretax special item consisting of a $23 million charge related to the early extinguishment of $325 million of 3.25 percent notes due March 2023. | ||||
| --- | --- | ||||
| (2) | Operating income (loss) includes a pretax special item consisting of an $80 million timber casualty loss. | ||||
| --- | --- |
The table below reconciles Adjusted EBITDA for the year-to-date period ended September 30, 2021:
| (millions) | Timberlands | Real Estate<br><br><br>& ENR | Wood<br><br><br>Products | Unallocated<br><br><br>Items | Total |
|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | |||||
| Net earnings | $2,191 | ||||
| Interest expense, net of capitalized interest | 236 | ||||
| Income taxes | 597 | ||||
| Net contribution (charge) to earnings | $354 | $174 | $2,695 | $(199) | $3,024 |
| Non-operating pension and other post-employment benefit costs | — | — | — | 14 | 14 |
| Interest income and other | — | — | — | (4) | (4) |
| Operating income (loss) | 354 | 174 | 2,695 | (189) | 3,034 |
| Depreciation, depletion and amortization | 195 | 11 | 145 | 5 | 356 |
| Basis of real estate sold | — | 62 | — | — | 62 |
| Special items included in operating income (loss)^(1)^ | (32) | — | — | — | (32) |
| Adjusted EBITDA | $517 | $247 | $2,840 | $(184) | $3,420 |
| (1) | Operating income (loss) includes a pretax special item consisting of a $32 million gain on the sale of timberlands. | ||||
| --- | --- |
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 | 2021 | 2020 | |
|---|---|---|---|
| (millions) | Q2 | Q3 | Q3 |
| Net earnings | $1,028 | $482 | $283 |
| Early extinguishment of debt charge | — | — | 23 |
| Gain on sale of timberlands | — | (32) | — |
| Timber casualty loss | — | — | 80 |
| Net earnings before special items | $1,028 | $450 | $386 |
The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:
| 2021 | 2021 | 2020 | |
|---|---|---|---|
| Q2 | Q3 | Q3 | |
| Net earnings per diluted share | $1.37 | $0.64 | $0.38 |
| Early extinguishment of debt charge | — | — | 0.03 |
| Gain on sale of timberlands | — | (0.04) | — |
| Timber casualty loss | — | — | 0.11 |
| Net earnings per diluted share before special items | $1.37 | $0.60 | $0.52 |
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 | 2021 | 2020 | 2021 | |
|---|---|---|---|---|
| (millions) | Q2 | Q3 | Q3 | Q3 YTD |
| Net cash from operations | $1,308 | $659 | $608 | $2,665 |
| Capital expenditures | (72) | (98) | (65) | (223) |
| Adjustments to FAD | — | — | — | — |
| Adjusted FAD | $1,236 | $561 | $543 | $2,442 |
7
wy-ex992_7.htm
| Weyerhaeuser Company | Exhibit 99.2 |
|---|
Q3.2021 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Operations
| Q1 | Q2 | Q3 | Year-to-Date | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br><br><br>2021 | June 30,<br><br><br>2021 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | ||||||||||||
| Net sales | $ | 2,506 | $ | 3,144 | $ | 2,345 | $ | 2,110 | $ | 7,995 | $ | 5,469 | ||||||
| Costs of sales | 1,430 | 1,583 | 1,589 | 1,390 | 4,602 | 4,055 | ||||||||||||
| Gross margin | 1,076 | 1,561 | 756 | 720 | 3,393 | 1,414 | ||||||||||||
| Selling expenses | 20 | 24 | 24 | 22 | 68 | 62 | ||||||||||||
| General and administrative expenses | 90 | 95 | 98 | 96 | 283 | 254 | ||||||||||||
| Other operating costs (income), net | 10 | 13 | (15 | ) | 92 | 8 | 105 | |||||||||||
| Operating income | 956 | 1,429 | 649 | 510 | 3,034 | 993 | ||||||||||||
| Non-operating pension and other post-employment benefit costs | (8 | ) | (1 | ) | (5 | ) | (9 | ) | (14 | ) | (28 | ) | ||||||
| Interest income and other | 1 | 2 | 1 | 2 | 4 | 5 | ||||||||||||
| Interest expense, net of capitalized interest | (79 | ) | (78 | ) | (79 | ) | (111 | ) | (236 | ) | (299 | ) | ||||||
| Earnings before income taxes | 870 | 1,352 | 566 | 392 | 2,788 | 671 | ||||||||||||
| Income taxes | (189 | ) | (324 | ) | (84 | ) | (109 | ) | (597 | ) | (166 | ) | ||||||
| Net earnings | $ | 681 | $ | 1,028 | $ | 482 | $ | 283 | $ | 2,191 | $ | 505 |
Per Share Information
| Q1 | Q2 | Q3 | Year-to-Date | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31,<br><br><br>2021 | June 30,<br><br><br>2021 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | |||||||
| Earnings per share, basic and diluted | $ | 0.91 | $ | 1.37 | $ | 0.64 | $ | 0.38 | $ | 2.92 | $ | 0.68 |
| Dividends paid per common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | — | $ | 0.51 | $ | 0.34 |
| Weighted average shares outstanding (in thousands): | ||||||||||||
| Basic | 748,718 | 750,127 | 750,105 | 746,996 | 749,657 | 746,809 | ||||||
| Diluted | 750,024 | 751,508 | 751,443 | 748,450 | 750,999 | 747,530 | ||||||
| Common shares outstanding at end of period (in thousands) | 748,751 | 749,782 | 749,037 | 746,398 | 749,037 | 746,398 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)
| Q1 | Q2 | Q3 | Year-to-Date | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br><br><br>2021 | June 30,<br><br><br>2021 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | ||||||||||||
| Net earnings | $ | 681 | $ | 1,028 | $ | 482 | $ | 283 | $ | 2,191 | $ | 505 | ||||||
| Non-operating pension and other post-employment benefit costs | 8 | 1 | 5 | 9 | 14 | 28 | ||||||||||||
| Interest income and other | (1 | ) | (2 | ) | (1 | ) | (2 | ) | (4 | ) | (5 | ) | ||||||
| Interest expense, net of capitalized interest | 79 | 78 | 79 | 111 | 236 | 299 | ||||||||||||
| Income taxes | 189 | 324 | 84 | 109 | 597 | 166 | ||||||||||||
| Operating income | 956 | 1,429 | 649 | 510 | 3,034 | 993 | ||||||||||||
| Depreciation, depletion and amortization | 118 | 120 | 118 | 115 | 356 | 355 | ||||||||||||
| Basis of real estate sold | 27 | 24 | 11 | 40 | 62 | 136 | ||||||||||||
| Special items included in operating income | — | — | (32 | ) | 80 | (32 | ) | 60 | ||||||||||
| Adjusted EBITDA^(1)^ | $ | 1,101 | $ | 1,573 | $ | 746 | $ | 745 | $ | 3,420 | $ | 1,544 |
^(^^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 |
|---|
Q3.2021 Analyst Package
Preliminary results (unaudited)
Special Items Included in Net Earnings (Income Tax Affected)
| Q1 | Q2 | Q3 | Year-to-Date | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br><br><br>2021 | June 30,<br><br><br>2021 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | |||||||||
| Net earnings | $ | 681 | $ | 1,028 | $ | 482 | $ | 283 | $ | 2,191 | $ | 505 | |||
| Early extinguishment of debt charges^(1)^ | — | — | — | 23 | — | 34 | |||||||||
| Gain on sale of timberlands | — | — | (32 | ) | — | (32 | ) | — | |||||||
| Legal benefit | — | — | — | — | — | (12 | ) | ||||||||
| Product remediation recovery | — | — | — | — | — | (6 | ) | ||||||||
| Timber casualty loss | — | — | — | 80 | — | 80 | |||||||||
| Net earnings before special items^(2)^ | $ | 681 | $ | 1,028 | $ | 450 | $ | 386 | $ | 2,159 | $ | 601 | |||
| Q1 | Q2 | Q3 | Year-to-Date | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| March 31,<br><br><br>2021 | June 30,<br><br><br>2021 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | ||||||||||
| Net earnings per diluted share | $ | 0.91 | $ | 1.37 | $ | 0.64 | $ | 0.38 | $ | 2.92 | $ | 0.68 | |||
| Early extinguishment of debt charges^(1)^ | — | — | — | 0.03 | — | 0.05 | |||||||||
| Gain on sale of timberlands | — | — | (0.04 | ) | — | (0.04 | ) | — | |||||||
| Legal benefit | — | — | — | — | — | (0.02 | ) | ||||||||
| Product remediation recovery | — | — | — | — | — | (0.01 | ) | ||||||||
| Timber casualty loss | — | — | — | 0.11 | — | 0.11 | |||||||||
| Net earnings per diluted share before special items^(2)^ | $ | 0.91 | $ | 1.37 | $ | 0.60 | $ | 0.52 | $ | 2.88 | $ | 0.81 |
^(1)^^^ We recorded pretax charges of $11 million ($11 million after-tax) and $23 million ($23 million after-tax) related to the early extinguishment of debt in second quarter 2020 and third quarter 2020, respectively. These charges were included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.
^(^^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,<br><br><br>2021 | June 30,<br><br><br>2021 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | ||||||
| Pension and post-employment costs: | ||||||||||||
| Pension and post-employment service costs | $ | 11 | $ | 10 | $ | 11 | $ | 9 | $ | 32 | $ | 27 |
| Non-operating pension and other post-employment benefit costs | 8 | 1 | 5 | 9 | 14 | 28 | ||||||
| Total company pension and post-employment costs | $ | 19 | $ | 11 | $ | 16 | $ | 18 | $ | 46 | $ | 55 |
Page 2 of 8
| Weyerhaeuser Company |
|---|
Q3.2021 Analyst Package
Preliminary results (unaudited)
Consolidated Balance Sheet
| in millions | March 31,<br><br><br>2021 | June 30,<br><br><br>2021 | September 30,<br><br><br>2021 | December 31,<br><br><br>2020 | ||||
|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,016 | $ | 1,777 | $ | 2,326 | $ | 495 |
| Receivables, net | 589 | 702 | 497 | 450 | ||||
| Receivables for taxes | 7 | 7 | 72 | 82 | ||||
| Inventories | 505 | 499 | 499 | 443 | ||||
| Assets held for sale | — | 229 | — | — | ||||
| Prepaid expenses and other current assets | 141 | 141 | 146 | 139 | ||||
| Total current assets | 2,258 | 3,355 | 3,540 | 1,609 | ||||
| Property and equipment, net | 1,971 | 1,965 | 1,924 | 2,013 | ||||
| Construction in progress | 91 | 102 | 169 | 73 | ||||
| Timber and timberlands at cost, less depletion | 11,776 | 11,643 | 11,606 | 11,827 | ||||
| Minerals and mineral rights, less depletion | 265 | 262 | 258 | 268 | ||||
| Deferred tax assets | 106 | 71 | 52 | 120 | ||||
| Other assets | 407 | 432 | 543 | 401 | ||||
| Total assets | $ | 16,874 | $ | 17,830 | $ | 18,092 | $ | 16,311 |
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current maturities of long-term debt | $ | 150 | $ | 150 | $ | 150 | $ | 150 |
| Accounts payable | 236 | 253 | 264 | 204 | ||||
| Accrued liabilities | 549 | 775 | 1,110 | 596 | ||||
| Total current liabilities | 935 | 1,178 | 1,524 | 950 | ||||
| Long-term debt, net | 5,325 | 5,100 | 5,100 | 5,325 | ||||
| Deferred tax liabilities | 26 | 42 | 28 | 24 | ||||
| Deferred pension and other post-employment benefits | 893 | 747 | 711 | 911 | ||||
| Other liabilities | 367 | 363 | 360 | 370 | ||||
| Total liabilities | 7,546 | 7,430 | 7,723 | 7,580 | ||||
| Total equity | 9,328 | 10,400 | 10,369 | 8,731 | ||||
| Total liabilities and equity | $ | 16,874 | $ | 17,830 | $ | 18,092 | $ | 16,311 |
Page 3 of 8
| Weyerhaeuser Company |
|---|
Q3.2021 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows
| Q1 | Q2 | Q3 | Year-to-Date | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br><br><br>2021 | June 30,<br><br><br>2021 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | Sept 30,<br><br><br>2021 | Sept 30,<br><br><br>2020 | ||||||||||||
| Cash flows from operations: | ||||||||||||||||||
| Net earnings | $ | 681 | $ | 1,028 | $ | 482 | $ | 283 | $ | 2,191 | $ | 505 | ||||||
| Noncash charges (credits) to earnings: | ||||||||||||||||||
| Depreciation, depletion and amortization | 118 | 120 | 118 | 115 | 356 | 355 | ||||||||||||
| Basis of real estate sold | 27 | 24 | 11 | 40 | 62 | 136 | ||||||||||||
| Deferred income taxes, net | 8 | 11 | (3 | ) | 22 | 16 | 20 | |||||||||||
| Pension and other post-employment benefits | 19 | 11 | 16 | 18 | 46 | 55 | ||||||||||||
| Share-based compensation expense | 7 | 8 | 8 | 7 | 23 | 22 | ||||||||||||
| Timber casualty loss | — | — | — | 80 | — | 80 | ||||||||||||
| Gain on sale of timberlands | — | — | (32 | ) | — | (32 | ) | — | ||||||||||
| Change in: | ||||||||||||||||||
| Receivables, net | (139 | ) | (113 | ) | 205 | (80 | ) | (47 | ) | (192 | ) | |||||||
| Receivables and payables for taxes | 120 | 116 | (143 | ) | 42 | 93 | 103 | |||||||||||
| Inventories | (60 | ) | 9 | (4 | ) | — | (55 | ) | 2 | |||||||||
| Prepaid expenses and other current assets | (2 | ) | 1 | (20 | ) | — | (21 | ) | 5 | |||||||||
| Accounts payable and accrued liabilities | (60 | ) | 125 | 51 | 64 | 116 | 3 | |||||||||||
| Pension and post-employment benefit contributions and payments | (8 | ) | (25 | ) | (23 | ) | (5 | ) | (56 | ) | (21 | ) | ||||||
| Other | (13 | ) | (7 | ) | (7 | ) | 22 | (27 | ) | 12 | ||||||||
| Net cash from operations | $ | 698 | $ | 1,308 | $ | 659 | $ | 608 | $ | 2,665 | $ | 1,085 | ||||||
| Cash flows from investing activities: | ||||||||||||||||||
| Capital expenditures for property and equipment | $ | (31 | ) | $ | (62 | ) | $ | (91 | ) | $ | (56 | ) | $ | (184 | ) | $ | (158 | ) |
| Capital expenditures for timberlands reforestation | (22 | ) | (10 | ) | (7 | ) | (9 | ) | (39 | ) | (41 | ) | ||||||
| Acquisition of Alabama timberlands | — | (149 | ) | — | — | (149 | ) | — | ||||||||||
| Proceeds from note receivable held by variable interest entities | — | — | — | — | — | 362 | ||||||||||||
| Proceeds from sale of timberlands | — | — | 261 | — | 261 | 145 | ||||||||||||
| Other | — | 1 | 2 | — | 3 | 3 | ||||||||||||
| Net cash from investing activities | $ | (53 | ) | $ | (220 | ) | $ | 165 | $ | (65 | ) | $ | (108 | ) | $ | 311 | ||
| Cash flows from financing activities: | ||||||||||||||||||
| Cash dividends on common shares | $ | (127 | ) | $ | (128 | ) | $ | (127 | ) | $ | — | $ | (382 | ) | $ | (254 | ) | |
| Net proceeds from issuance of long-term debt | — | — | — | — | — | 732 | ||||||||||||
| Payments on long-term debt | — | (225 | ) | — | (348 | ) | (225 | ) | (936 | ) | ||||||||
| Proceeds from borrowings on line of credit | — | — | — | — | — | 550 | ||||||||||||
| Payments on line of credit | — | — | — | — | — | (780 | ) | |||||||||||
| Proceeds from exercise of stock options | 17 | 28 | 1 | 3 | 46 | 9 | ||||||||||||
| Repurchases of common shares | — | — | (26 | ) | — | (26 | ) | — | ||||||||||
| Other | (14 | ) | (2 | ) | (3 | ) | (1 | ) | (19 | ) | (16 | ) | ||||||
| Net cash from financing activities | $ | (124 | ) | $ | (327 | ) | $ | (155 | ) | $ | (346 | ) | $ | (606 | ) | $ | (695 | ) |
| Net change in cash, cash equivalents and restricted cash | $ | 521 | $ | 761 | $ | 669 | $ | 197 | $ | 1,951 | $ | 701 | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 495 | 1,016 | 1,777 | 643 | 495 | 139 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,016 | $ | 1,777 | $ | 2,446 | $ | 840 | $ | 2,446 | $ | 840 | ||||||
| Cash paid (received) during the period for: | ||||||||||||||||||
| Interest, net of amounts capitalized | $ | 75 | $ | 79 | $ | 83 | $ | 100 | $ | 237 | $ | 278 | ||||||
| Income taxes, net of refunds | $ | 66 | $ | 197 | $ | 231 | $ | 45 | $ | 494 | $ | 46 |
Page 4 of 8
| Weyerhaeuser Company | Timberlands Segment |
|---|
Q3.2021 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales to unaffiliated customers | $ | 379 | $ | 405 | $ | 423 | $ | 345 | $ | 1,207 | $ | 1,085 | |||||
| Intersegment sales | 134 | 136 | 129 | 107 | 399 | 350 | |||||||||||
| Total net sales | 513 | 541 | 552 | 452 | 1,606 | 1,435 | |||||||||||
| Costs of sales | 383 | 407 | 428 | 358 | 1,218 | 1,116 | |||||||||||
| Gross margin | 130 | 134 | 124 | 94 | 388 | 319 | |||||||||||
| Selling expenses | — | — | 1 | — | 1 | 1 | |||||||||||
| General and administrative expenses | 23 | 23 | 23 | 24 | 69 | 70 | |||||||||||
| Other operating costs (income), net | (1 | ) | (2 | ) | (33 | ) | 81 | (36 | ) | 79 | |||||||
| Operating income (loss) and Net contribution (charge) to earnings | $ | 108 | $ | 113 | $ | 133 | $ | (11 | ) | $ | 354 | $ | 169 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization^(^^1^^)^
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (loss) | $ | 108 | $ | 113 | $ | 133 | $ | (11 | ) | $ | 354 | $ | 169 | ||
| Depreciation, depletion and amortization | 64 | 67 | 64 | 61 | 195 | 194 | |||||||||
| Special items | — | — | (32 | ) | 80 | (32 | ) | 80 | |||||||
| Adjusted EBITDA^(1)^ | $ | 172 | $ | 180 | $ | 165 | $ | 130 | $ | 517 | $ | 443 |
^(^^1^^)^See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
Segment Special Items Included in Net Contribution (Charge) to Earnings (Pretax)
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gain on sale of timberlands | $ | — | $ | — | $ | 32 | $ | — | $ | 32 | $ | — | ||
| Timber casualty loss | $ | — | $ | — | $ | — | $ | (80 | ) | $ | — | $ | (80 | ) |
Selected Segment Items
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total decrease (increase) in working capital^(2)^ | $ | (13 | ) | $ | 2 | $ | 1 | $ | 43 | $ | (10 | ) | $ | 38 | ||||
| Cash spent for capital expenditures^(3)^ | $ | (28 | ) | $ | (21 | ) | $ | (27 | ) | $ | (24 | ) | $ | (76 | ) | $ | (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^^)^
| Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Third Party | Delivered logs: | ||||||||||||
| Net Sales | West | $ | 201 | $ | 222 | $ | 226 | $ | 163 | $ | 649 | $ | 519 |
| (millions) | South | 131 | 145 | 153 | 141 | 429 | 436 | ||||||
| North | 16 | 9 | 13 | 13 | 38 | 37 | |||||||
| Total delivered logs | 348 | 376 | 392 | 317 | 1,116 | 992 | |||||||
| Stumpage and pay-as-cut timber | 6 | 7 | 9 | 5 | 22 | 15 | |||||||
| Recreational and other lease revenue | 16 | 16 | 16 | 16 | 48 | 47 | |||||||
| Other revenue | 9 | 6 | 6 | 7 | 21 | 31 | |||||||
| Total | $ | 379 | $ | 405 | $ | 423 | $ | 345 | $ | 1,207 | $ | 1,085 | |
| Delivered Logs | West | $ | 130.69 | $ | 137.80 | $ | 145.64 | $ | 109.01 | $ | 138.06 | $ | 106.16 |
| Third Party Sales | South | $ | 34.50 | $ | 35.11 | $ | 35.56 | $ | 33.68 | $ | 35.08 | $ | 33.88 |
| Realizations (per ton) | North | $ | 62.83 | $ | 74.88 | $ | 64.93 | $ | 57.19 | $ | 65.97 | $ | 59.15 |
| Delivered Logs | West | 1,539 | 1,608 | 1,555 | 1,489 | 4,702 | 4,887 | ||||||
| Third Party Sales | South | 3,782 | 4,150 | 4,304 | 4,185 | 12,236 | 12,857 | ||||||
| Volumes (tons, thousands) | North | 261 | 115 | 195 | 234 | 571 | 631 | ||||||
| Fee Harvest Volumes | West | 2,101 | 2,099 | 1,930 | 1,911 | 6,130 | 6,457 | ||||||
| (tons, thousands) | South | 5,376 | 5,856 | 5,912 | 5,596 | 17,144 | 17,640 | ||||||
| North | 337 | 199 | 264 | 321 | 800 | 901 |
^(^^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 |
|---|
Q3.2021 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 106 | $ | 110 | $ | 69 | $ | 69 | $ | 285 | $ | 246 |
| Costs of sales | 34 | 41 | 18 | 46 | 93 | 156 | ||||||
| Gross margin | 72 | 69 | 51 | 23 | 192 | 90 | ||||||
| General and administrative expenses | 6 | 6 | 6 | 6 | 18 | 18 | ||||||
| Operating income and Net contribution to earnings | $ | 66 | $ | 63 | $ | 45 | $ | 17 | $ | 174 | $ | 72 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization^(1)^
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income | $ | 66 | $ | 63 | $ | 45 | $ | 17 | $ | 174 | $ | 72 |
| Depreciation, depletion and amortization | 3 | 4 | 4 | 3 | 11 | 10 | ||||||
| Basis of real estate sold | 27 | 24 | 11 | 40 | 62 | 136 | ||||||
| Adjusted EBITDA^(1)^ | $ | 96 | $ | 91 | $ | 60 | $ | 60 | $ | 247 | $ | 218 |
^(^^1^^)^See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
Selected Segment Items
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash spent for capital expenditures | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Segment Statistics
| Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | Real Estate | $ | 84 | $ | 83 | $ | 45 | $ | 49 | $ | 212 | $ | 192 | ||||||
| (millions) | Energy and Natural Resources | 22 | 27 | 24 | 20 | 73 | 54 | ||||||||||||
| Total | $ | 106 | $ | 110 | $ | 69 | $ | 69 | $ | 285 | $ | 246 | |||||||
| Acres Sold | Real Estate | 19,455 | 18,415 | 11,037 | 34,917 | 48,907 | 111,228 | ||||||||||||
| Price per Acre | Real Estate | $ | 3,803 | $ | 3,227 | $ | 4,005 | $ | 1,381 | $ | 3,632 | $ | 1,662 | ||||||
| Basis as a Percent of<br><br><br>Real Estate Net Sales | Real Estate | 32 | % | 29 | % | 24 | % | 82 | % | 29 | % | 71 | % |
Page 6 of 8
| Weyerhaeuser Company | Wood Products Segment |
|---|
Q3.2021 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 2,021 | $ | 2,629 | $ | 1,853 | $ | 1,696 | $ | 6,503 | $ | 4,138 |
| Costs of sales | 1,124 | 1,229 | 1,270 | 1,075 | 3,623 | 3,112 | ||||||
| Gross margin | 897 | 1,400 | 583 | 621 | 2,880 | 1,026 | ||||||
| Selling expenses | 19 | 21 | 21 | 18 | 61 | 57 | ||||||
| General and administrative expenses | 35 | 35 | 34 | 33 | 104 | 102 | ||||||
| Other operating costs, net | 3 | 6 | 11 | 4 | 20 | 8 | ||||||
| Operating income and Net contribution to earnings | $ | 840 | $ | 1,338 | $ | 517 | $ | 566 | $ | 2,695 | $ | 859 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization^(^^1^^)^
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income | $ | 840 | $ | 1,338 | $ | 517 | $ | 566 | $ | 2,695 | $ | 859 | |
| Depreciation, depletion and amortization | 49 | 48 | 48 | 49 | 145 | 146 | |||||||
| Special items | — | — | — | — | — | (8 | ) | ||||||
| Adjusted EBITDA^(1)^ | $ | 889 | $ | 1,386 | $ | 565 | $ | 615 | $ | 2,840 | $ | 997 |
^(^^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 | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Product remediation recovery | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 8 |
Selected Segment Items
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total decrease (increase) in working capital^(2)^ | $ | (212 | ) | $ | (49 | ) | $ | 249 | $ | (68 | ) | $ | (12 | ) | $ | (198 | ) | |
| Cash spent for capital expenditures | $ | (25 | ) | $ | (51 | ) | $ | (70 | ) | $ | (41 | ) | $ | (146 | ) | $ | (124 | ) |
^(^^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 | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Structural Lumber | Third party net sales | $ | 990 | $ | 1,349 | $ | 681 | $ | 819 | $ | 3,020 | $ | 1,865 |
| (volumes presented | Third party sales realizations | $ | 864 | $ | 1,077 | $ | 516 | $ | 674 | $ | 812 | $ | 509 |
| in board feet) | Third party sales volumes^(3)^ | 1,145 | 1,252 | 1,320 | 1,216 | 3,717 | 3,663 | ||||||
| Production volumes | 1,211 | 1,234 | 1,222 | 1,170 | 3,667 | 3,487 | |||||||
| Oriented Strand | Third party net sales | $ | 438 | $ | 605 | $ | 470 | $ | 290 | $ | 1,513 | $ | 659 |
| Board | Third party sales realizations | $ | 614 | $ | 911 | $ | 691 | $ | 395 | $ | 735 | $ | 293 |
| (volumes presented | Third party sales volumes^(3)^ | 714 | 663 | 681 | 736 | 2,058 | 2,253 | ||||||
| in square feet 3/8") | Production volumes | 742 | 683 | 715 | 759 | 2,140 | 2,278 | ||||||
| Engineered Solid | Third party net sales | $ | 142 | $ | 166 | $ | 183 | $ | 135 | $ | 491 | $ | 373 |
| Section | Third party sales realizations | $ | 2,285 | $ | 2,533 | $ | 3,092 | $ | 2,128 | $ | 2,628 | $ | 2,142 |
| (volumes presented | Third party sales volumes^(3)^ | 6.2 | 6.6 | 5.9 | 6.3 | 18.7 | 17.4 | ||||||
| in cubic feet) | Production volumes | 6.0 | 6.2 | 5.8 | 5.4 | 18.0 | 16.8 | ||||||
| Engineered | Third party net sales | $ | 83 | $ | 104 | $ | 128 | $ | 83 | $ | 315 | $ | 231 |
| I-joists | Third party sales realizations | $ | 1,773 | $ | 1,980 | $ | 2,600 | $ | 1,638 | $ | 2,119 | $ | 1,650 |
| (volumes presented | Third party sales volumes^(3)^ | 47 | 53 | 49 | 51 | 149 | 140 | ||||||
| in lineal feet) | Production volumes | 44 | 51 | 49 | 43 | 144 | 128 | ||||||
| Softwood Plywood | Third party net sales | $ | 56 | $ | 69 | $ | 45 | $ | 55 | $ | 170 | $ | 128 |
| (volumes presented | Third party sales realizations | $ | 594 | $ | 902 | $ | 653 | $ | 507 | $ | 710 | $ | 405 |
| in square feet 3/8") | Third party sales volumes^(3)^ | 94 | 77 | 69 | 107 | 240 | 315 | ||||||
| Production volumes | 80 | 62 | 61 | 94 | 203 | 267 | |||||||
| Medium Density | Third party net sales | $ | 48 | $ | 43 | $ | 52 | $ | 47 | $ | 143 | $ | 124 |
| Fiberboard | Third party sales realizations | $ | 842 | $ | 869 | $ | 943 | $ | 864 | $ | 885 | $ | 845 |
| (volumes presented | Third party sales volumes^(3)^ | 57 | 50 | 55 | 55 | 162 | 147 | ||||||
| in square feet 3/4") | Production volumes | 56 | 52 | 55 | 57 | 163 | 148 |
^(^^3^^)^Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.
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| Weyerhaeuser Company | Unallocated Items |
|---|
Q3.2021 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 | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unallocated corporate function and variable compensation expense | $ | (25 | ) | $ | (36 | ) | $ | (33 | ) | $ | (36 | ) | $ | (94 | ) | $ | (78 | ) |
| Liability classified share-based compensation | (1 | ) | — | (1 | ) | (5 | ) | (2 | ) | 1 | ||||||||
| Foreign exchange gain (loss) | (2 | ) | (1 | ) | 5 | 2 | 2 | (3 | ) | |||||||||
| Elimination of intersegment profit in inventory and LIFO | (17 | ) | (28 | ) | 12 | (9 | ) | (33 | ) | (4 | ) | |||||||
| Other, net | (13 | ) | (20 | ) | (29 | ) | (14 | ) | (62 | ) | (23 | ) | ||||||
| Operating loss | (58 | ) | (85 | ) | (46 | ) | (62 | ) | (189 | ) | (107 | ) | ||||||
| Non-operating pension and other post-employment benefit costs | (8 | ) | (1 | ) | (5 | ) | (9 | ) | (14 | ) | (28 | ) | ||||||
| Interest income and other | 1 | 2 | 1 | 2 | 4 | 5 | ||||||||||||
| Net charge to earnings | $ | (65 | ) | $ | (84 | ) | $ | (50 | ) | $ | (69 | ) | $ | (199 | ) | $ | (130 | ) |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization^(1)^
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating loss | $ | (58 | ) | $ | (85 | ) | $ | (46 | ) | $ | (62 | ) | $ | (189 | ) | $ | (107 | ) |
| Depreciation, depletion and amortization | 2 | 1 | 2 | 2 | 5 | 5 | ||||||||||||
| Special items | — | — | — | — | — | (12 | ) | |||||||||||
| Adjusted EBITDA^(1)^ | $ | (56 | ) | $ | (84 | ) | $ | (44 | ) | $ | (60 | ) | $ | (184 | ) | $ | (114 | ) |
^(^^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 | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Legal benefit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 12 |
| Special items included in operating loss and net charge to earnings | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 12 |
Unallocated Selected Items
| in millions | Q1.2021 | Q2.2021 | Q3.2021 | Q3.2020 | YTD.2021 | YTD.2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash spent for capital expenditures | $ | — | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — |
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