EX-99.2

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


Weyerhaeuser Company	Exhibit 99.2

Q2.2023 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations


	Q1			Q2						Year-to-Date
in millions	March 31, 2023			June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net sales	$	1,881		$	1,997		$	2,973		$	3,878		$	6,085
Costs of sales		1,512			1,528			1,789			3,040			3,436
Gross margin		369			469			1,184			838			2,649
Selling expenses		22			22			23			44			46
General and administrative expenses		101			108			102			209			194
Other operating costs, net		10			20			12			30			18
Operating income		236			319			1,047			555			2,391
Non-operating pension and other post-employment benefit costs		(9	)		(12	)		(11	)		(21	)		(26	)
Interest income and other		12			18			1			30			—
Interest expense, net of capitalized interest		(66	)		(70	)		(65	)		(136	)		(137	)
Loss on debt extinguishment		—			—			—			—			(276	)
Earnings before income taxes		173			255			972			428			1,952
Income taxes		(22	)		(25	)		(184	)		(47	)		(393	)
Net earnings	$	151		$	230		$	788		$	381		$	1,559

Per Share Information


	Q1		Q2				Year-to-Date
	March 31, 2023		June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Earnings per share, basic and diluted	$	0.21	$	0.31	$	1.06	$	0.52	$	2.09
Dividends paid per common share	$	1.09	$	0.19	$	0.18	$	1.28	$	1.81
Weighted average shares outstanding (in thousands):
Basic		733,163		732,021		744,542		732,599		746,017
Diluted		733,546		732,362		745,582		732,961		747,194
Common shares outstanding at end of period (in thousands)		732,507		730,850		741,738		730,850		741,738

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


	Q1			Q2						Year-to-Date
in millions	March 31, 2023			June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net earnings	$	151		$	230		$	788		$	381		$	1,559
Non-operating pension and other post-employment benefit costs		9			12			11			21			26
Interest income and other		(12	)		(18	)		(1	)		(30	)		—
Interest expense, net of capitalized interest		66			70			65			136			137
Loss on debt extinguishment		—			—			—			—			276
Income taxes		22			25			184			47			393
Operating income		236			319			1,047			555			2,391
Depreciation, depletion and amortization		126			126			119			252			241
Basis of real estate sold		33			13			39			46			70
Special items included in operating income		—			11			—			11			—
Adjusted EBITDA(1)	$	395		$	469		$	1,205		$	864		$	2,702

(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

Q2.2023 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)


	Q1		Q2				Year-to-Date
in millions	March 31, 2023		June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net earnings	$	151	$	230	$	788	$	381	$	1,559
Loss on debt extinguishment(1)		—		—		—		—		207
Environmental remediation charge		—		8		—		8		—
Net earnings before special items(2)	$	151	$	238	$	788	$	389	$	1,766


	Q1		Q2				Year-to-Date
	March 31, 2023		June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net earnings per diluted share	$	0.21	$	0.31	$	1.06	$	0.52	$	2.09
Loss on debt extinguishment(1)		—		—		—		—		0.28
Environmental remediation charge		—		0.01		—		0.01		—
Net earnings per diluted share before special items(2)	$	0.21	$	0.32	$	1.06	$	0.53	$	2.37

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

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

Selected Total Company Items


	Q1		Q2				Year-to-Date
in millions	March 31, 2023		June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Pension and post-employment costs:
Pension and post-employment service costs	$	6	$	5	$	8	$	11	$	18
Non-operating pension and other post-employment benefit costs		9		12		11		21		26
Total company pension and post-employment costs	$	15	$	17	$	19	$	32	$	44

Page 2 of 8

Weyerhaeuser Company

Q2.2023 Analyst Package

Preliminary results (unaudited)

Condensed Consolidated Balance Sheet


in millions	March 31, 2023		June 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	797	$	1,095	$	1,581
Short-term investments		—		665		—
Receivables, net		440		462		357
Receivables for taxes		28		18		42
Inventories		586		539		550
Prepaid expenses and other current assets		202		188		216
Total current assets		2,053		2,967		2,746
Property and equipment, net		2,157		2,133		2,171
Construction in progress		222		260		222
Timber and timberlands at cost, less depletion		11,564		11,512		11,604
Minerals and mineral rights, less depletion		211		207		214
Deferred tax assets		8		8		8
Other assets		365		383		375
Total assets	$	16,580	$	17,470	$	17,340

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	981	$	980	$	982
Accounts payable		266		254		247
Accrued liabilities		403		473		511
Total current liabilities		1,650		1,707		1,740
Long-term debt, net		4,072		4,817		4,071
Deferred tax liabilities		101		105		96
Deferred pension and other post-employment benefits		346		348		344
Other liabilities		335		352		340
Total liabilities		6,504		7,329		6,591
Total equity		10,076		10,141		10,749
Total liabilities and equity	$	16,580	$	17,470	$	17,340

Page 3 of 8

Weyerhaeuser Company

Q2.2023 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows


	Q1			Q2						Year-to-Date
in millions	March 31, 2023			June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Cash flows from operations:
Net earnings	$	151		$	230		$	788		$	381		$	1,559
Noncash charges (credits) to earnings:
Depreciation, depletion and amortization		126			126			119			252			241
Basis of real estate sold		33			13			39			46			70
Pension and other post-employment benefits		15			17			19			32			44
Share-based compensation expense		8			9			9			17			17
Loss on debt extinguishment		—			—			—			—			276
Other		3			(1	)		—			2			14
Change in:
Receivables, net		(83	)		(22	)		198			(105	)		(40	)
Receivables and payables for taxes		14			13			(83	)		27			27
Inventories		(36	)		50			29			14			(58	)
Prepaid expenses and other current assets		(9	)		17			(2	)		8			(3	)
Accounts payable and accrued liabilities		(87	)		57			47			(30	)		(15	)
Pension and post-employment benefit contributions and payments		(6	)		(5	)		(10	)		(11	)		(14	)
Other		(3	)		(8	)		(7	)		(11	)		(15	)
Net cash from operations	$	126		$	496		$	1,146		$	622		$	2,103
Cash flows from investing activities:
Capital expenditures for property and equipment	$	(50	)	$	(69	)	$	(71	)	$	(119	)	$	(121	)
Capital expenditures for timberlands reforestation		(21	)		(12	)		(10	)		(33	)		(30	)
Acquisition of timberlands		—			(2	)		(265	)		(2	)		(283	)
Purchase of short-term investments		—			(664	)		—			(664	)		—
Other		2			(2	)		—			—			1
Net cash from investing activities	$	(69	)	$	(749	)	$	(346	)	$	(818	)	$	(433	)
Cash flows from financing activities:
Cash dividends on common shares	$	(799	)	$	(139	)	$	(134	)	$	(938	)	$	(1,352	)
Net proceeds from issuance of long-term debt		—			743			—			743			881
Payments on long-term debt		—			—			—			—			(1,203	)
Repurchases of common shares		(34	)		(51	)		(141	)		(85	)		(259	)
Other		(8	)		(2	)		1			(10	)		(5	)
Net cash from financing activities	$	(841	)	$	551		$	(274	)	$	(290	)	$	(1,938	)

Net change in cash, cash equivalents and restricted cash	$	(784	)	$	298		$	526		$	(486	)	$	(268	)
Cash, cash equivalents and restricted cash at beginning of period		1,581			797			1,205			1,581			1,999
Cash, cash equivalents and restricted cash at end of period	$	797		$	1,095		$	1,731		$	1,095		$	1,731

Cash paid during the period for:
Interest, net of amounts capitalized	$	57		$	70		$	71		$	127		$	149
Income taxes, net of refunds	$	6		$	12		$	269		$	18		$	354

Page 4 of 8


Weyerhaeuser Company	Timberlands Segment

Q2.2023 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions	Q1.2023			Q2.2023		Q2.2022			YTD.2023			YTD.2022
Sales to unaffiliated customers	$	462		$	417	$	515		$	879		$	980
Intersegment sales		142			150		156			292			317
Total net sales		604			567		671			1,171			1,297
Costs of sales		461			439		495			900			918
Gross margin		143			128		176			271			379
General and administrative expenses		25			24		24			49			48
Other operating income, net		(2	)		—		(1	)		(2	)		(4	)
Operating income and Net contribution to earnings	$	120		$	104	$	153		$	224		$	335

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


in millions	Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Operating income	$	120	$	104	$	153	$	224	$	335
Depreciation, depletion and amortization		68		68		66		136		131
Adjusted EBITDA(1)	$	188	$	172	$	219	$	360	$	466

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

Selected Segment Items


in millions	Q1.2023			Q2.2023			Q2.2022			YTD.2023			YTD.2022
Total (increase) decrease in working capital(2)	$	(24	)	$	51		$	57		$	27		$	23
Cash spent for capital expenditures(3)	$	(26	)	$	(22	)	$	(23	)	$	(48	)	$	(53	)

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

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

Segment Statistics(4)


		Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Third Party	Delivered logs:
Net Sales	West	$	229	$	206	$	308	$	435	$	567
(millions)	South		168		162		160		330		314
	North		17		7		10		24		25
	Total delivered logs		414		375		478		789		906
	Stumpage and pay-as-cut timber		16		15		11		31		20
	Recreational and other lease revenue		18		17		16		35		33
	Other revenue		14		10		10		24		21
	Total	$	462	$	417	$	515	$	879	$	980
Delivered Logs	West	$	137.10	$	123.45	$	173.35	$	130.30	$	167.63
Third Party Sales	South	$	38.23	$	37.49	$	38.47	$	37.86	$	37.81
Realizations (per ton)	North	$	81.71	$	78.69	$	83.93	$	80.73	$	76.79
Delivered Logs	West		1,674		1,661		1,778		3,335		3,382
Third Party Sales	South		4,386		4,341		4,167		8,727		8,302
Volumes (tons, thousands)	North		204		98		118		302		328
Fee Harvest Volumes	West		2,245		2,292		2,085		4,537		4,325
(tons, thousands)	South		6,432		6,430		6,159		12,862		12,001
	North		285		175		180		460		458

(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

Q2.2023 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions	Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Net sales	$	101	$	80	$	117	$	181	$	245
Costs of sales		41		21		45		62		86
Gross margin		60		59		72		119		159
General and administrative expenses		7		7		7		14		13
Operating income and Net contribution to earnings	$	53	$	52	$	65	$	105	$	146

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


in millions	Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Operating income	$	53	$	52	$	65	$	105	$	146
Depreciation, depletion and amortization		3		5		3		8		7
Basis of real estate sold		33		13		39		46		70
Adjusted EBITDA(1)	$	89	$	70	$	107	$	159	$	223

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

Selected Segment Items

in millions

Q1.2023

Q2.2023

Q2.2022

YTD.2023

YTD.2022

Cash spent for capital expenditures

—

—

—

—

—

Segment Statistics


		Q1.2023			Q2.2023			Q2.2022			YTD.2023			YTD.2022
Net Sales	Real Estate	$	72		$	47		$	90		$	119		$	187
(millions)	Energy and Natural Resources		29			33			27			62			58
	Total	$	101		$	80		$	117		$	181		$	245
Acres Sold	Real Estate		20,753			9,281			26,906			30,034			51,032
Price per Acre	Real Estate	$	3,241		$	4,790		$	3,215		$	3,720		$	3,484
Basis as a Percent of Real Estate Net Sales	Real Estate		46	%		28	%		43	%		39	%		37	%

Page 6 of 8


Weyerhaeuser Company	Wood Products Segment

Q2.2023 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations


in millions	Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Net sales	$	1,318	$	1,500	$	2,341	$	2,818	$	4,860
Costs of sales		1,159		1,218		1,414		2,377		2,690
Gross margin		159		282		927		441		2,170
Selling expenses		22		21		21		43		42
General and administrative expenses		36		37		35		73		70
Other operating costs, net		6		6		8		12		13
Operating income and Net contribution to earnings	$	95	$	218	$	863	$	313	$	2,045

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


in millions	Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Operating income	$	95	$	218	$	863	$	313	$	2,045
Depreciation, depletion and amortization		53		52		49		105		100
Adjusted EBITDA(1)	$	148	$	270	$	912	$	418	$	2,145

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

Selected Segment Items


in millions	Q1.2023			Q2.2023			Q2.2022			YTD.2023			YTD.2022
Total (increase) decrease in working capital(2)	$	(127	)	$	40		$	205		$	(87	)	$	(166	)
Cash spent for capital expenditures	$	(43	)	$	(56	)	$	(56	)	$	(99	)	$	(95	)

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

Segment Statistics


in millions, except for third party sales realizations		Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Structural Lumber	Third party net sales	$	515	$	573	$	998	$	1,088	$	2,204
(volumes presented	Third party sales realizations	$	450	$	479	$	776	$	465	$	901
in board feet)	Third party sales volumes(3)		1,144		1,196		1,289		2,340		2,446
	Production volumes		1,143		1,164		1,232		2,307		2,435
Oriented Strand	Third party net sales	$	208	$	215	$	497	$	423	$	1,061
Board	Third party sales realizations	$	269	$	299	$	676	$	283	$	731
(volumes presented	Third party sales volumes(3)		773		720		735		1,493		1,452
in square feet 3/8")	Production volumes		761		727		758		1,488		1,497
Engineered Solid	Third party net sales	$	169	$	215	$	247	$	384	$	443
Section	Third party sales realizations	$	3,643	$	3,571	$	3,863	$	3,602	$	3,660
(volumes presented	Third party sales volumes(3)		4.7		6.0		6.4		10.7		12.1
in cubic feet)	Production volumes		4.6		5.9		6.4		10.5		12.1
Engineered	Third party net sales	$	87	$	126	$	168	$	213	$	305
I-joists	Third party sales realizations	$	3,171	$	2,901	$	3,432	$	3,006	$	3,207
(volumes presented	Third party sales volumes(3)		27		44		49		71		95
in lineal feet)	Production volumes		25		38		50		63		94
Softwood Plywood	Third party net sales	$	41	$	44	$	53	$	85	$	111
(volumes presented	Third party sales realizations	$	490	$	474	$	746	$	481	$	765
in square feet 3/8")	Third party sales volumes(3)		83		94		70		177		145
	Production volumes		74		84		67		158		133
Medium Density	Third party net sales	$	38	$	42	$	53	$	80	$	101
Fiberboard	Third party sales realizations	$	1,314	$	1,342	$	1,174	$	1,329	$	1,129
(volumes presented	Third party sales volumes(3)		29		31		45		60		89
in square feet 3/4")	Production volumes		34		33		48		67		92

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

Page 7 of 8


Weyerhaeuser Company	Unallocated Items

Q2.2023 Analyst Package

Preliminary results (unaudited)

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

Net Charge to Earnings


in millions	Q1.2023			Q2.2023			Q2.2022			YTD.2023			YTD.2022
Unallocated corporate function and variable compensation expense	$	(27	)	$	(32	)	$	(36	)	$	(59	)	$	(67	)
Liability classified share-based compensation		—			(2	)		2			(2	)		3
Foreign exchange (loss) gain		(1	)		2			3			1			3
Elimination of intersegment profit in inventory and LIFO		9			3			18			12			(41	)
Other, net		(13	)		(26	)		(21	)		(39	)		(33	)
Operating loss		(32	)		(55	)		(34	)		(87	)		(135	)
Non-operating pension and other post-employment benefit costs		(9	)		(12	)		(11	)		(21	)		(26	)
Interest income and other		12			18			1			30			—
Net charge to earnings	$	(29	)	$	(49	)	$	(44	)	$	(78	)	$	(161	)

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


in millions	Q1.2023			Q2.2023			Q2.2022			YTD.2023			YTD.2022
Operating loss	$	(32	)	$	(55	)	$	(34	)	$	(87	)	$	(135	)
Depreciation, depletion and amortization		2			1			1			3			3
Special items		—			11			—			11			—
Adjusted EBITDA(1)	$	(30	)	$	(43	)	$	(33	)	$	(73	)	$	(132	)

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

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


in millions	Q1.2023		Q2.2023		Q2.2022		YTD.2023		YTD.2022
Environmental remediation charge	$	—	$	11	$	—	$	11	$	—
Special items included in operating loss and net charge to earnings	$	—	$	11	$	—	$	11	$	—

Unallocated Selected Items


in millions	Q1.2023			Q2.2023			Q2.2022			YTD.2023			YTD.2022
Cash spent for capital expenditures	$	(2	)	$	(3	)	$	(2	)	$	(5	)	$	(3	)

Page 8 of 8