EX-99.2 3 wy-ex992_7.htm EX-99.2 wy-ex992_7.htm

 

Weyerhaeuser Company

Exhibit 99.2

Q3.2022 Analyst Package

Preliminary results (unaudited)

 

Consolidated Statement of Operations

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,

2022

 

 

June 30,

2022

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

Net sales

 

$

3,112

 

 

$

2,973

 

 

$

2,276

 

 

$

2,345

 

 

$

8,361

 

 

$

7,995

 

Costs of sales

 

 

1,647

 

 

 

1,789

 

 

 

1,694

 

 

 

1,589

 

 

 

5,130

 

 

 

4,602

 

Gross margin

 

 

1,465

 

 

 

1,184

 

 

 

582

 

 

 

756

 

 

 

3,231

 

 

 

3,393

 

Selling expenses

 

 

23

 

 

 

23

 

 

 

24

 

 

 

24

 

 

 

70

 

 

 

68

 

General and administrative expenses

 

 

92

 

 

 

102

 

 

 

100

 

 

 

98

 

 

 

294

 

 

 

283

 

Other operating costs (income), net

 

 

6

 

 

 

12

 

 

 

1

 

 

 

(15

)

 

 

19

 

 

 

8

 

Operating income

 

 

1,344

 

 

 

1,047

 

 

 

457

 

 

 

649

 

 

 

2,848

 

 

 

3,034

 

Non-operating pension and other post-employment benefit costs

 

 

(15

)

 

 

(11

)

 

 

(12

)

 

 

(5

)

 

 

(38

)

 

 

(14

)

Interest income and other

 

 

(1

)

 

 

1

 

 

 

9

 

 

 

1

 

 

 

9

 

 

 

4

 

Interest expense, net of capitalized interest

 

 

(72

)

 

 

(65

)

 

 

(67

)

 

 

(79

)

 

 

(204

)

 

 

(236

)

Loss on debt extinguishment

 

 

(276

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(276

)

 

 

—

 

Earnings before income taxes

 

 

980

 

 

 

972

 

 

 

387

 

 

 

566

 

 

 

2,339

 

 

 

2,788

 

Income taxes

 

 

(209

)

 

 

(184

)

 

 

(77

)

 

 

(84

)

 

 

(470

)

 

 

(597

)

Net earnings

 

$

771

 

 

$

788

 

 

$

310

 

 

$

482

 

 

$

1,869

 

 

$

2,191

 

 

Per Share Information

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

 

 

March 31,

2022

 

 

June 30,

2022

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

Earnings per share, basic and diluted

 

$

1.03

 

 

$

1.06

 

 

$

0.42

 

 

$

0.64

 

 

$

2.51

 

 

$

2.92

 

Dividends paid per common share

 

$

1.63

 

 

$

0.18

 

 

$

0.18

 

 

$

0.17

 

 

$

1.99

 

 

$

0.51

 

Weighted average shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

747,507

 

 

 

744,542

 

 

 

740,058

 

 

 

750,105

 

 

 

743,990

 

 

 

749,657

 

Diluted

 

 

748,823

 

 

 

745,582

 

 

 

740,975

 

 

 

751,443

 

 

 

745,081

 

 

 

750,999

 

Common shares outstanding at end of period (in thousands)

 

 

745,442

 

 

 

741,738

 

 

 

737,547

 

 

 

749,037

 

 

 

737,547

 

 

 

749,037

 

 

 

 

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

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,

2022

 

 

June 30,

2022

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

Net earnings

 

$

771

 

 

$

788

 

 

$

310

 

 

$

482

 

 

$

1,869

 

 

$

2,191

 

Non-operating pension and other post-employment benefit costs

 

 

15

 

 

 

11

 

 

 

12

 

 

 

5

 

 

 

38

 

 

 

14

 

Interest income and other

 

 

1

 

 

 

(1

)

 

 

(9

)

 

 

(1

)

 

 

(9

)

 

 

(4

)

Interest expense, net of capitalized interest

 

 

72

 

 

 

65

 

 

 

67

 

 

 

79

 

 

 

204

 

 

 

236

 

Loss on debt extinguishment

 

 

276

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

276

 

 

 

—

 

Income taxes

 

 

209

 

 

 

184

 

 

 

77

 

 

 

84

 

 

 

470

 

 

 

597

 

Operating income

 

 

1,344

 

 

 

1,047

 

 

 

457

 

 

 

649

 

 

 

2,848

 

 

 

3,034

 

Depreciation, depletion and amortization

 

 

122

 

 

 

119

 

 

 

119

 

 

 

118

 

 

 

360

 

 

 

356

 

Basis of real estate sold

 

 

31

 

 

 

39

 

 

 

7

 

 

 

11

 

 

 

77

 

 

 

62

 

Special items included in operating income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

(32

)

Adjusted EBITDA(1)

 

$

1,497

 

 

$

1,205

 

 

$

583

 

 

$

746

 

 

$

3,285

 

 

$

3,420

 

 

(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

Q3.2022 Analyst Package

Preliminary results (unaudited)

 

Special Items Included in Net Earnings (Income Tax Affected)

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,

2022

 

 

June 30,

2022

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

Net earnings

 

$

771

 

 

$

788

 

 

$

310

 

 

$

482

 

 

$

1,869

 

 

$

2,191

 

Gain on sale of timberlands

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

(32

)

Loss on debt extinguishment(1)

 

 

207

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

207

 

 

 

—

 

Net earnings before special items(2)

 

$

978

 

 

$

788

 

 

$

310

 

 

$

450

 

 

$

2,076

 

 

$

2,159

 

 

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

 

 

March 31,

2022

 

 

June 30,

2022

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

Net earnings per diluted share

 

$

1.03

 

 

$

1.06

 

 

$

0.42

 

 

$

0.64

 

 

$

2.51

 

 

$

2.92

 

Gain on sale of timberlands

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.04

)

 

 

—

 

 

 

(0.04

)

Loss on debt extinguishment(1)

 

 

0.28

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.28

 

 

 

—

 

Net earnings per diluted share before special items(2)

 

$

1.31

 

 

$

1.06

 

 

$

0.42

 

 

$

0.60

 

 

$

2.79

 

 

$

2.88

 

 

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

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

Selected Total Company Items

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,

2022

 

 

June 30,

2022

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

Pension and post-employment costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension and post-employment service costs

 

$

10

 

 

$

8

 

 

$

9

 

 

$

11

 

 

$

27

 

 

$

32

 

Non-operating pension and other post-employment benefit costs

 

 

15

 

 

 

11

 

 

 

12

 

 

 

5

 

 

 

38

 

 

 

14

 

Total company pension and post-employment costs

 

$

25

 

 

$

19

 

 

$

21

 

 

$

16

 

 

$

65

 

 

$

46

 

 

Page 2 of 8

 

 

 

Weyerhaeuser Company

Q3.2022 Analyst Package

Preliminary results (unaudited)

 

Consolidated Balance Sheet

 

in millions

 

March 31,

2022

 

 

June 30,

2022

 

 

September 30,

2022

 

 

December 31,

2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,205

 

 

$

1,723

 

 

$

1,920

 

 

$

1,879

 

Receivables, net

 

 

745

 

 

 

547

 

 

 

425

 

 

 

507

 

Receivables for taxes

 

 

8

 

 

 

6

 

 

 

15

 

 

 

24

 

Inventories

 

 

611

 

 

 

571

 

 

 

542

 

 

 

520

 

Prepaid expenses and other current assets

 

 

206

 

 

 

165

 

 

 

146

 

 

 

205

 

Total current assets

 

 

2,775

 

 

 

3,012

 

 

 

3,048

 

 

 

3,135

 

Property and equipment, net

 

 

2,026

 

 

 

2,000

 

 

 

1,997

 

 

 

2,057

 

Construction in progress

 

 

203

 

 

 

233

 

 

 

245

 

 

 

175

 

Timber and timberlands at cost, less depletion

 

 

11,469

 

 

 

11,706

 

 

 

11,681

 

 

 

11,510

 

Minerals and mineral rights, less depletion

 

 

252

 

 

 

248

 

 

 

245

 

 

 

255

 

Deferred tax assets

 

 

15

 

 

 

11

 

 

 

10

 

 

 

17

 

Other assets

 

 

376

 

 

 

370

 

 

 

364

 

 

 

503

 

Total assets

 

$

17,116

 

 

$

17,580

 

 

$

17,590

 

 

$

17,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

—

 

 

$

—

 

 

$

118

 

 

$

—

 

Accounts payable

 

 

310

 

 

 

283

 

 

 

272

 

 

 

281

 

Accrued liabilities

 

 

674

 

 

 

658

 

 

 

664

 

 

 

673

 

Total current liabilities

 

 

984

 

 

 

941

 

 

 

1,054

 

 

 

954

 

Long-term debt, net

 

 

5,053

 

 

 

5,053

 

 

 

4,935

 

 

 

5,099

 

Deferred tax liabilities

 

 

66

 

 

 

83

 

 

 

89

 

 

 

46

 

Deferred pension and other post-employment benefits

 

 

432

 

 

 

347

 

 

 

335

 

 

 

440

 

Other liabilities

 

 

344

 

 

 

340

 

 

 

339

 

 

 

346

 

Total liabilities

 

 

6,879

 

 

 

6,764

 

 

 

6,752

 

 

 

6,885

 

Total equity

 

 

10,237

 

 

 

10,816

 

 

 

10,838

 

 

 

10,767

 

Total liabilities and equity

 

$

17,116

 

 

$

17,580

 

 

$

17,590

 

 

$

17,652

 

 

 

 

Page 3 of 8

 

 

 

Weyerhaeuser Company

Q3.2022 Analyst Package

Preliminary results (unaudited)

 

Consolidated Statement of Cash Flows

 

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

in millions

 

March 31,

2022

 

 

June 30,

2022

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

 

Sept 30,

2022

 

 

Sept 30,

2021

 

Cash flows from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

771

 

 

$

788

 

 

$

310

 

 

$

482

 

 

$

1,869

 

 

$

2,191

 

Noncash charges (credits) to earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

122

 

 

 

119

 

 

 

119

 

 

 

118

 

 

 

360

 

 

 

356

 

Basis of real estate sold

 

 

31

 

 

 

39

 

 

 

7

 

 

 

11

 

 

 

77

 

 

 

62

 

Deferred income taxes, net

 

 

14

 

 

 

—

 

 

 

3

 

 

 

(3

)

 

 

17

 

 

 

16

 

Pension and other post-employment benefits

 

 

25

 

 

 

19

 

 

 

21

 

 

 

16

 

 

 

65

 

 

 

46

 

Share-based compensation expense

 

 

8

 

 

 

9

 

 

 

8

 

 

 

8

 

 

 

25

 

 

 

23

 

Gain on sale of timberlands

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

(32

)

Loss on debt extinguishment

 

 

276

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

276

 

 

 

—

 

Change in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables, net

 

 

(238

)

 

 

198

 

 

 

121

 

 

 

205

 

 

 

81

 

 

 

(47

)

Receivables and payables for taxes

 

 

110

 

 

 

(83

)

 

 

(12

)

 

 

(143

)

 

 

15

 

 

 

93

 

Inventories

 

 

(87

)

 

 

29

 

 

 

28

 

 

 

(4

)

 

 

(30

)

 

 

(55

)

Prepaid expenses and other current assets

 

 

(1

)

 

 

(2

)

 

 

(4

)

 

 

(20

)

 

 

(7

)

 

 

(21

)

Accounts payable and accrued liabilities

 

 

(62

)

 

 

47

 

 

 

(8

)

 

 

51

 

 

 

(23

)

 

 

116

 

Pension and post-employment benefit contributions and payments

 

 

(4

)

 

 

(10

)

 

 

(5

)

 

 

(23

)

 

 

(19

)

 

 

(56

)

Other

 

 

(8

)

 

 

(7

)

 

 

(26

)

 

 

(7

)

 

 

(41

)

 

 

(27

)

Net cash from operations

 

$

957

 

 

$

1,146

 

 

$

562

 

 

$

659

 

 

$

2,665

 

 

$

2,665

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures for property and equipment

 

$

(50

)

 

$

(71

)

 

$

(86

)

 

$

(91

)

 

$

(207

)

 

$

(184

)

Capital expenditures for timberlands reforestation

 

 

(20

)

 

 

(10

)

 

 

(8

)

 

 

(7

)

 

 

(38

)

 

 

(39

)

Acquisition of timberlands

 

 

(18

)

 

 

(265

)

 

 

(3

)

 

 

—

 

 

 

(286

)

 

 

(149

)

Proceeds from sale of timberlands

 

 

—

 

 

 

—

 

 

 

—

 

 

 

261

 

 

 

—

 

 

 

261

 

Other

 

 

1

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

1

 

 

 

3

 

Net cash from investing activities

 

$

(87

)

 

$

(346

)

 

$

(97

)

 

$

165

 

 

$

(530

)

 

$

(108

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends on common shares

 

$

(1,218

)

 

$

(134

)

 

$

(133

)

 

$

(127

)

 

$

(1,485

)

 

$

(382

)

Net proceeds from issuance of long-term debt

 

 

881

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

881

 

 

 

—

 

Payments on long-term debt

 

 

(1,203

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,203

)

 

 

(225

)

Proceeds from exercise of stock options

 

 

12

 

 

 

2

 

 

 

1

 

 

 

1

 

 

 

15

 

 

 

46

 

Repurchases of common shares

 

 

(118

)

 

 

(141

)

 

 

(143

)

 

 

(26

)

 

 

(402

)

 

 

(26

)

Other

 

 

(18

)

 

 

(1

)

 

 

(1

)

 

 

(3

)

 

 

(20

)

 

 

(19

)

Net cash from financing activities

 

$

(1,664

)

 

$

(274

)

 

$

(276

)

 

$

(155

)

 

$

(2,214

)

 

$

(606

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash, cash equivalents and restricted cash

 

$

(794

)

 

$

526

 

 

$

189

 

 

$

669

 

 

$

(79

)

 

$

1,951

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

1,999

 

 

 

1,205

 

 

 

1,731

 

 

 

1,777

 

 

 

1,999

 

 

 

495

 

Cash, cash equivalents and restricted cash at end of period

 

$

1,205

 

 

$

1,731

 

 

$

1,920

 

 

$

2,446

 

 

$

1,920

 

 

$

2,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest, net of amounts capitalized

 

$

78

 

 

$

71

 

 

$

62

 

 

$

83

 

 

$

211

 

 

$

237

 

Income taxes, net of refunds

 

$

85

 

 

$

269

 

 

$

92

 

 

$

231

 

 

$

446

 

 

$

494

 

 


 

Page 4 of 8

 

 

 

Weyerhaeuser Company

Timberlands Segment

Q3.2022 Analyst Package

Preliminary results (unaudited)

 

Segment Statement of Operations

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Sales to unaffiliated customers

 

$

465

 

 

$

515

 

 

$

441

 

 

$

423

 

 

$

1,421

 

 

$

1,207

 

Intersegment sales

 

 

161

 

 

 

156

 

 

 

133

 

 

 

129

 

 

 

450

 

 

 

399

 

Total net sales

 

 

626

 

 

 

671

 

 

 

574

 

 

 

552

 

 

 

1,871

 

 

 

1,606

 

Costs of sales

 

 

423

 

 

 

495

 

 

 

442

 

 

 

428

 

 

 

1,360

 

 

 

1,218

 

Gross margin

 

 

203

 

 

 

176

 

 

 

132

 

 

 

124

 

 

 

511

 

 

 

388

 

Selling expenses

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

General and administrative expenses

 

 

24

 

 

 

24

 

 

 

25

 

 

 

23

 

 

 

73

 

 

 

69

 

Other operating income, net

 

 

(3

)

 

 

(1

)

 

 

(1

)

 

 

(33

)

 

 

(5

)

 

 

(36

)

Operating income and Net contribution to earnings

 

$

182

 

 

$

153

 

 

$

107

 

 

$

133

 

 

$

442

 

 

$

354

 

 

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

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Operating income

 

$

182

 

 

$

153

 

 

$

107

 

 

$

133

 

 

$

442

 

 

$

354

 

Depreciation, depletion and amortization

 

 

65

 

 

 

66

 

 

 

61

 

 

 

64

 

 

 

192

 

 

 

195

 

Special items

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

(32

)

Adjusted EBITDA(1)

 

$

247

 

 

$

219

 

 

$

168

 

 

$

165

 

 

$

634

 

 

$

517

 

 

(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

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Gain on sale of timberlands

 

$

—

 

 

$

—

 

 

$

—

 

 

$

32

 

 

$

—

 

 

$

32

 

 

Selected Segment Items

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Total decrease (increase) in working capital(2)

 

$

(34

)

 

$

57

 

 

$

14

 

 

$

1

 

 

$

37

 

 

$

(10

)

Cash spent for capital expenditures(3)

 

$

(30

)

 

$

(23

)

 

$

(22

)

 

$

(27

)

 

$

(75

)

 

$

(76

)

 

(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)

 

 

 

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Third Party

 

Delivered logs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

West

$

259

 

 

$

308

 

 

$

224

 

 

$

226

 

 

$

791

 

 

$

649

 

(millions)

 

South

 

154

 

 

 

160

 

 

 

166

 

 

 

153

 

 

 

480

 

 

 

429

 

 

 

North

 

15

 

 

 

10

 

 

 

15

 

 

 

13

 

 

 

40

 

 

 

38

 

 

 

Total delivered logs

 

428

 

 

 

478

 

 

 

405

 

 

 

392

 

 

 

1,311

 

 

 

1,116

 

 

 

Stumpage and pay-as-cut timber

 

9

 

 

 

11

 

 

 

10

 

 

 

9

 

 

 

30

 

 

 

22

 

 

 

Recreational and other lease revenue

 

17

 

 

 

16

 

 

 

18

 

 

 

16

 

 

 

51

 

 

 

48

 

 

 

Other revenue

 

11

 

 

 

10

 

 

 

8

 

 

 

6

 

 

 

29

 

 

 

21

 

 

 

Total

$

465

 

 

$

515

 

 

$

441

 

 

$

423

 

 

$

1,421

 

 

$

1,207

 

Delivered Logs

 

West

$

161.29

 

 

$

173.35

 

 

$

158.59

 

 

$

145.64

 

 

$

164.97

 

 

$

138.06

 

Third Party Sales

 

South

$

37.15

 

 

$

38.47

 

 

$

38.59

 

 

$

35.56

 

 

$

38.08

 

 

$

35.08

 

Realizations (per ton)

 

North

$

72.79

 

 

$

83.93

 

 

$

83.84

 

 

$

64.93

 

 

$

79.26

 

 

$

65.97

 

Delivered Logs

 

West

 

1,604

 

 

 

1,778

 

 

 

1,411

 

 

 

1,555

 

 

 

4,793

 

 

 

4,702

 

Third Party Sales

 

South

 

4,135

 

 

 

4,167

 

 

 

4,310

 

 

 

4,304

 

 

 

12,612

 

 

 

12,236

 

Volumes (tons, thousands)

 

North

 

210

 

 

 

118

 

 

 

177

 

 

 

195

 

 

 

505

 

 

 

571

 

Fee Harvest Volumes

 

West

 

2,240

 

 

 

2,085

 

 

 

1,760

 

 

 

1,930

 

 

 

6,085

 

 

 

6,130

 

(tons, thousands)

 

South

 

5,842

 

 

 

6,159

 

 

 

6,112

 

 

 

5,912

 

 

 

18,113

 

 

 

17,144

 

 

 

North

 

278

 

 

 

180

 

 

 

245

 

 

 

264

 

 

 

703

 

 

 

800

 

(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

Q3.2022 Analyst Package

Preliminary results (unaudited)

 

Segment Statement of Operations

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Net sales

 

$

128

 

 

$

117

 

 

$

68

 

 

$

69

 

 

$

313

 

 

$

285

 

Costs of sales

 

 

41

 

 

 

45

 

 

 

14

 

 

 

18

 

 

 

100

 

 

 

93

 

Gross margin

 

 

87

 

 

 

72

 

 

 

54

 

 

 

51

 

 

 

213

 

 

 

192

 

General and administrative expenses

 

 

6

 

 

 

7

 

 

 

6

 

 

 

6

 

 

 

19

 

 

 

18

 

Operating income and Net contribution to earnings

 

$

81

 

 

$

65

 

 

$

48

 

 

$

45

 

 

$

194

 

 

$

174

 

 

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

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Operating income

 

$

81

 

 

$

65

 

 

$

48

 

 

$

45

 

 

$

194

 

 

$

174

 

Depreciation, depletion and amortization

 

 

4

 

 

 

3

 

 

 

5

 

 

 

4

 

 

 

12

 

 

 

11

 

Basis of real estate sold

 

 

31

 

 

 

39

 

 

 

7

 

 

 

11

 

 

 

77

 

 

 

62

 

Adjusted EBITDA(1)

 

$

116

 

 

$

107

 

 

$

60

 

 

$

60

 

 

$

283

 

 

$

247

 

 

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

 

Selected Segment Items

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Cash spent for capital expenditures

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

Segment Statistics

 

 

 

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Net Sales

Real Estate

 

$

97

 

 

$

90

 

 

$

30

 

 

$

45

 

 

$

217

 

 

$

212

 

(millions)

Energy and Natural Resources

 

 

31

 

 

 

27

 

 

 

38

 

 

 

24

 

 

 

96

 

 

 

73

 

 

Total

 

$

128

 

 

$

117

 

 

$

68

 

 

$

69

 

 

$

313

 

 

$

285

 

Acres Sold

Real Estate

 

 

24,126

 

 

 

26,906

 

 

 

5,014

 

 

 

11,037

 

 

 

56,046

 

 

 

48,907

 

Price per Acre

Real Estate

 

$

3,785

 

 

$

3,215

 

 

$

5,046

 

 

$

4,005

 

 

$

3,624

 

 

$

3,632

 

Basis as a Percent of

Real Estate Net Sales

Real Estate

 

 

32

%

 

 

43

%

 

 

23

%

 

 

24

%

 

 

35

%

 

 

29

%

 

 

 

Page 6 of 8

 

 

 

Weyerhaeuser Company

Wood Products Segment

Q3.2022 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Net sales

 

$

2,519

 

 

$

2,341

 

 

$

1,767

 

 

$

1,853

 

 

$

6,627

 

 

$

6,503

 

Costs of sales

 

 

1,276

 

 

 

1,414

 

 

 

1,360

 

 

 

1,270

 

 

 

4,050

 

 

 

3,623

 

Gross margin

 

 

1,243

 

 

 

927

 

 

 

407

 

 

 

583

 

 

 

2,577

 

 

 

2,880

 

Selling expenses

 

 

21

 

 

 

21

 

 

 

22

 

 

 

21

 

 

 

64

 

 

 

61

 

General and administrative expenses

 

 

35

 

 

 

35

 

 

 

36

 

 

 

34

 

 

 

106

 

 

 

104

 

Other operating costs, net

 

 

5

 

 

 

8

 

 

 

5

 

 

 

11

 

 

 

18

 

 

 

20

 

Operating income and Net contribution to earnings

 

$

1,182

 

 

$

863

 

 

$

344

 

 

$

517

 

 

$

2,389

 

 

$

2,695

 

 

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

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Operating income

 

$

1,182

 

 

$

863

 

 

$

344

 

 

$

517

 

 

$

2,389

 

 

$

2,695

 

Depreciation, depletion and amortization

 

 

51

 

 

 

49

 

 

 

51

 

 

 

48

 

 

 

151

 

 

 

145

 

Adjusted EBITDA(1)

 

$

1,233

 

 

$

912

 

 

$

395

 

 

$

565

 

 

$

2,540

 

 

$

2,840

 

 

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

 

Selected Segment Items

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Total decrease (increase) in working capital(2)

 

$

(371

)

 

$

205

 

 

$

136

 

 

$

249

 

 

$

(30

)

 

$

(12

)

Cash spent for capital expenditures

 

$

(39

)

 

$

(56

)

 

$

(68

)

 

$

(70

)

 

$

(163

)

 

$

(146

)

 

(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

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Structural Lumber

Third party net sales

 

$

1,206

 

 

$

998

 

 

$

676

 

 

$

681

 

 

$

2,880

 

 

$

3,020

 

(volumes presented

Third party sales realizations

 

$

1,041

 

 

$

776

 

 

$

556

 

 

$

516

 

 

$

786

 

 

$

812

 

in board feet)

Third party sales volumes(3)

 

 

1,157

 

 

 

1,289

 

 

 

1,216

 

 

 

1,320

 

 

 

3,662

 

 

 

3,717

 

 

Production volumes

 

 

1,203

 

 

 

1,232

 

 

 

1,140

 

 

 

1,222

 

 

 

3,575

 

 

 

3,667

 

Oriented Strand

Third party net sales

 

$

564

 

 

$

497

 

 

$

287

 

 

$

470

 

 

$

1,348

 

 

$

1,513

 

Board

Third party sales realizations

 

$

787

 

 

$

676

 

 

$

401

 

 

$

691

 

 

$

622

 

 

$

735

 

(volumes presented

Third party sales volumes(3)

 

 

717

 

 

 

735

 

 

 

715

 

 

 

681

 

 

 

2,167

 

 

 

2,058

 

in square feet 3/8")

Production volumes

 

 

739

 

 

 

758

 

 

 

735

 

 

 

715

 

 

 

2,232

 

 

 

2,140

 

Engineered Solid

Third party net sales

 

$

196

 

 

$

247

 

 

$

233

 

 

$

183

 

 

$

676

 

 

$

491

 

Section

Third party sales realizations

 

$

3,433

 

 

$

3,863

 

 

$

3,946

 

 

$

3,092

 

 

$

3,754

 

 

$

2,628

 

(volumes presented

Third party sales volumes(3)

 

 

5.7

 

 

 

6.4

 

 

 

5.9

 

 

 

5.9

 

 

 

18.0

 

 

 

18.7

 

in cubic feet)

Production volumes

 

 

5.7

 

 

 

6.4

 

 

 

6.0

 

 

 

5.8

 

 

 

18.1

 

 

 

18.0

 

Engineered

Third party net sales

 

$

137

 

 

$

168

 

 

$

166

 

 

$

128

 

 

$

471

 

 

$

315

 

I-joists

Third party sales realizations

 

$

2,969

 

 

$

3,432

 

 

$

3,525

 

 

$

2,600

 

 

$

3,312

 

 

$

2,119

 

(volumes presented

Third party sales volumes(3)

 

 

46

 

 

 

49

 

 

 

47

 

 

 

49

 

 

 

142

 

 

 

149

 

in lineal feet)

Production volumes

 

 

44

 

 

 

50

 

 

 

47

 

 

 

49

 

 

 

141

 

 

 

144

 

Softwood Plywood

Third party net sales

 

$

58

 

 

$

53

 

 

$

47

 

 

$

45

 

 

$

158

 

 

$

170

 

(volumes presented

Third party sales realizations

 

$

783

 

 

$

746

 

 

$

632

 

 

$

653

 

 

$

720

 

 

$

710

 

in square feet 3/8")

Third party sales volumes(3)

 

 

75

 

 

 

70

 

 

 

74

 

 

 

69

 

 

 

219

 

 

 

240

 

 

Production volumes

 

 

66

 

 

 

67

 

 

 

64

 

 

 

61

 

 

 

197

 

 

 

203

 

Medium Density

Third party net sales

 

$

48

 

 

$

53

 

 

$

50

 

 

$

52

 

 

$

151

 

 

$

143

 

Fiberboard

Third party sales realizations

 

$

1,082

 

 

$

1,174

 

 

$

1,274

 

 

$

943

 

 

$

1,173

 

 

$

885

 

(volumes presented

Third party sales volumes(3)

 

 

44

 

 

 

45

 

 

 

40

 

 

 

55

 

 

 

129

 

 

 

162

 

in square feet 3/4")

Production volumes

 

 

44

 

 

 

48

 

 

 

38

 

 

 

55

 

 

 

130

 

 

 

163

 

 

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

 

Page 7 of 8

 

 

 

Weyerhaeuser Company

Unallocated Items

Q3.2022 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

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Unallocated corporate function and variable compensation expense

 

$

(31

)

 

$

(36

)

 

$

(36

)

 

$

(33

)

 

$

(103

)

 

$

(94

)

Liability classified share-based compensation

 

 

1

 

 

 

2

 

 

 

2

 

 

 

(1

)

 

 

5

 

 

 

(2

)

Foreign exchange gain

 

 

—

 

 

 

3

 

 

 

9

 

 

 

5

 

 

 

12

 

 

 

2

 

Elimination of intersegment profit in inventory and LIFO

 

 

(59

)

 

 

18

 

 

 

2

 

 

 

12

 

 

 

(39

)

 

 

(33

)

Other, net

 

 

(12

)

 

 

(21

)

 

 

(19

)

 

 

(29

)

 

 

(52

)

 

 

(62

)

Operating loss

 

 

(101

)

 

 

(34

)

 

 

(42

)

 

 

(46

)

 

 

(177

)

 

 

(189

)

Non-operating pension and other post-employment benefit costs

 

 

(15

)

 

 

(11

)

 

 

(12

)

 

 

(5

)

 

 

(38

)

 

 

(14

)

Interest income and other

 

 

(1

)

 

 

1

 

 

 

9

 

 

 

1

 

 

 

9

 

 

 

4

 

Net charge to earnings

 

$

(117

)

 

$

(44

)

 

$

(45

)

 

$

(50

)

 

$

(206

)

 

$

(199

)

 

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

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Operating loss

 

$

(101

)

 

$

(34

)

 

$

(42

)

 

$

(46

)

 

$

(177

)

 

$

(189

)

Depreciation, depletion and amortization

 

 

2

 

 

 

1

 

 

 

2

 

 

 

2

 

 

 

5

 

 

 

5

 

Adjusted EBITDA(1)

 

$

(99

)

 

$

(33

)

 

$

(40

)

 

$

(44

)

 

$

(172

)

 

$

(184

)

 

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

 

Unallocated Selected Items

 

in millions

 

Q1.2022

 

 

Q2.2022

 

 

Q3.2022

 

 

Q3.2021

 

 

YTD.2022

 

 

YTD.2021

 

Cash spent for capital expenditures

 

$

(1

)

 

$

(2

)

 

$

(4

)

 

$

(1

)

 

$

(7

)

 

$

(1

)

 

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