Catchmark Timber Trust, Inc. (CTT) SEC Filing 8-K Material Event for the period ending Thursday, November 4, 2021

SEC Filings

Catchmark Timber Trust, Inc.

CIK: 1341141 Ticker: CTT
Exhibit 99.1

CatchMark Announces Third Quarter 2021 Results

Recognized net income of $23.3 million, or $0.48 per share.
Captured higher U.S. South pulpwood and sawtimber stumpage prices, 8% and 11%, respectively, above the prior year quarter at 38% and 16% premiums over market averages.
Completed the Bandon large disposition, further strengthening capital position and setting the stage for future growth from acquisitions as well as environmental initiatives.
Expect to exceed full-year net income guidance due to capital recycling transactions and achieve the upper range of full-year guidance for Adjusted EBITDA.

ATLANTA – November 4, 2021 – CatchMark Timber Trust, Inc. (NYSE: CTT) today reported third quarter 2021 results.

Brian M. Davis, CatchMark’s President and CEO, said: “CatchMark expects to exceed full-year 2021 net income guidance and is on track to generate Adjusted EBITDA at the top-end of full-year guidance. Once again, we achieved solid quarterly operating results highlighted by significantly higher year-over-year timber sales pricing for both pulpwood and sawtimber, which continues to hold premiums over market averages in our premier U.S. South timberland markets. These pricing advantages mostly compensated for lower total harvest volume year-over-year as a result of wet weather conditions in the U.S. South and recent large timberland dispositions, notably the Bandon disposition in the Pacific Northwest. Looking exclusively at the U.S. South where CatchMark focuses its operations, timber sales revenue was comparable year-over-year despite the weather-related harvest delays. Timberland sales for 2021, which were heavily weighted to this year’s second quarter, have already met full-year targets and we expect to achieve the midpoint of full-year guidance. Investment management results also are in line with targets.

Davis added: “Record quarterly net income and earnings per share resulted from a gain recognized on successful execution of the Bandon large disposition. Proceeds from the Bandon sale and recent Triple T redemption used to repay debt further improved CatchMark’s capital position and our credit facilities provide ample liquidity to pursue our growth strategy. As of now, our capital recycling program, involving large dispositions, has concluded. Our attention focuses on a disciplined approach to acquisitions that will seek to increase our scale of prime timberlands in the U.S. South’s premier mill markets where we already operate a robust platform. We also are looking to sustain our industry-leading Harvest EBITDA per-acre and market pricing premiums, while maintaining stable per-acre merchantable inventory. In addition, we are moving forward with the value realization of our environmental initiatives — involving carbon sequestration, mitigation bank credits, and solar energy — capitalizing on the increasing demand to meet climate challenges. Overall, the economic and market fundamentals supporting our business growth remain strong, including housing, household formation, current product pricing and outlook, and demand for wood products.”

Third Quarter 2021 Results

The following table summarizes the current quarter and comparable prior year period results:

Exhibit 99.1
(in millions except for tons and acres)Three Months Ended September 30, Change
20212020Dollars, Tons or Acres%
Results of Operations
Revenues$22.1 $24.6 $(2.5)(10)%
Net Income (Loss)$23.3 $(4.1)$27.4 662 %
Adjusted EBITDA$9.9 $12.4 $(2.5)(20)%
Harvest Volume (tons)494,192 580,528 (86,336)(15)%
Acres Sold1,000 1,200 (200)(17)%

Business Segments Overview

Harvest Operations
Three Months Ended September 30, Change
(in millions)20212020$%
Timber Sales Revenue$15.9 $18.1 $(2.2)(12)%
Harvest EBITDA$7.1 $8.5 $(1.4)(17)%

Significant levels of new housing starts and home remodeling activity, particularly in the U.S. South, have maintained robust demand for timber products in the premier mill markets where CatchMark concentrates its operations. New sawmills in the region continue to come on-line which should increase production levels in coming quarters and support pricing for CatchMark harvests — both sawtimber and pulpwood.

Lower overall harvest volumes and revenues year-over-year resulted primarily from the Bandon large disposition, completed in early August, and weather-related issues in the U.S. South.

Strong pricing in both pulpwood and sawtimber in the U.S. South offset an 11% harvest reduction in the region, due to wet conditions, and resulted in a 1% increase in regional timber sales revenues year-over-year to $15.5 million.

U.S. South:

Despite the weather-related harvest reduction and recent timberland large dispositions, increased timber sales revenue in the U.S. South year-over-year reflected CatchMark registering significant increases in realized stumpage prices for both pulpwood and sawtimber.

CatchMark’s U.S. South pulpwood and sawtimber stumpage prices were 8% and 11%, respectively, above the prior year quarter at 38% and 16% premiums to TimberMart-South south-wide averages. Negotiated delivered wood sales price increases also helped maintain stumpage values by offsetting increased logging and hauling rates due to higher fuel and labor costs.

Pacific Northwest:

Timber sales revenue from the Pacific Northwest decreased 86% due to the Bandon disposition. CatchMark had completed 90% of planned full-year harvests in the region at the time of the transaction.

Todd Reitz, Chief Resources Officer, said: “Staying nimble to meet changing customer needs and product mix, given challenging weather conditions, was key during the quarter. Frequent rain events put extra pressure on production and customer raw material inventories, adding pricing tension for spot market deals.

Exhibit 99.1
Our delivered wood model gave us an edge in competition to meet logging capacity and managing costs. We are well positioned in superior markets with our prime timberlands and expect to have a solid fourth quarter, and are on course to achieve the midpoint of our full-year harvest volume guidance, as our mill customers are running very well with no mill quotas for deliveries.”

Real Estate
Three Months Ended September 30, Change
(in millions)20212020$%
Timberland Sales Revenue$2.1 $2.4 $(0.3)(13)%
Real Estate EBITDA$2.0 $2.3 $(0.3)(13)%

Timberland Sales:

CatchMark sold 1,000 acres for $2.1 million, compared to 1,200 acres for $2.4 million in third quarter 2020.
Lower Real Estate EBITDA resulted from selling 17% fewer acres at a comparable price per acre.
Acres sold had a lower average merchantable timber stocking than the portfolio average — 32 tons per acre versus 41 tons per acre.
Through the third quarter, CatchMark had already exceeded the lower range of full-year guidance for timberland sales, having sold 7,100 acres for $13.1 million with transactions concentrated in the second quarter.

Large Dispositions:

CatchMark completed the large disposition of its wholly-owned Bandon timberlands, comprising 18,100 acres in Oregon, for $100 million, or $5,536 per acre, and recognized a gain of $23.4 million. The timberlands were purchased in 2018 for $4,916 per acre. Proceeds of $95.4 million from the sale were used to pay down CatchMark's outstanding debt balance on the Multi-Draw Term Facility and Term Loan A-3.

Investment Management
Three Months Ended September 30, Change
(in millions)20212020$%
Asset Management Fee Revenue$3.0 $3.1 $(0.1)(4)%
Investment Management EBITDA$3.0 $3.7 $(0.7)(19)%

On October 14, 2021, in connection with CatchMark’s agreement to redeem its common equity interest in Triple T for $35 million, the Triple T asset management agreement terminated and was replaced by a transition services agreement, effective September 1, 2021. Under the transition services agreement, CatchMark will provide transition services to Triple T through March 2022 in exchange for $5 million in cash.

For the third quarter, asset management fees were comparable year-over-year and included a $0.2 million promote earned from the Dawsonville Bluffs joint venture for exceeding investment return hurdles generated by strong returns on wetland mitigation credit sales.

Investment Management EBITDA decreased by $0.7 million year-over-year primarily due to a $0.6 million decrease in Adjusted EBITDA from Dawsonville Bluffs.


CatchMark amended its existing credit agreement to establish a $68.6 million revolver feature on Term Loan A-3 and extend the maturity date of the existing Revolving Credit Facility from 2022 to 2026. The new

Exhibit 99.1
revolver feature allows CatchMark to retain its borrowing capacity after using $95.4 million of Bandon disposition proceeds to repay debt.

Following the debt repayments with proceeds from the Bandon disposition and Triple T redemption, CatchMark had increased its liquidity from $180.0 million at the end of the second quarter to $278.2 million — comprised of $24.6 million in cash and $253.6 million of borrowing capacity with an extremely attractive cost of debt at 2.92% as of October 15, 2021.

No share repurchases were made under CatchMark’s share repurchase program during the quarter and $13.7 million remains available under the program as of September 30, 2021.

Chief Financial Officer Ursula Godoy-Arbelaez, said: “After executing our capital recycling program and following our exit from Triple T, CatchMark has ample liquidity and is in a solid capital position to move ahead with our planned growth initiatives. Our $300 million of debt outstanding has a competitive cost under three percent with no near-term maturities and we are well within our financial covenants. Most importantly, we are well positioned to continue to cover our dividends from cash available for distribution within our historical payout ratio of 75% to 85%.”

Covered Dividend

During the third quarter, CatchMark paid $6.5 million of distributions to stockholders, fully covered by net cash provided by operating activities. Year-to-date, $19.7 million of capital has been returned to shareholders, which was fully covered by net cash provided by operating activities.

On October 15, 2021, CatchMark declared a cash dividend of $0.075 per share for common stockholders of record as of November 30, 2021, payable on December 15, 2021.

Conference Call

The company will host a conference call and live webcast at 10 a.m. ET on Friday, November 5, 2021 to discuss these results. Investors may listen to the conference call by dialing 1-888-347-1165 for U.S/Canada and 1-412-902-4276 for international callers. Participants should ask to be joined into the CatchMark call. Access to the live webcast is available at or here. A replay of this webcast will be archived on the company's website immediately after the call.

About CatchMark

CatchMark (NYSE: CTT) seeks to deliver consistent and growing per share cash flow from disciplined acquisitions and superior management of prime timberlands located in high demand U.S. mill markets. Concentrating on maximizing cash flows throughout business cycles, the company strategically harvests its high-quality timberlands to produce durable revenue growth and takes advantage of proximate mill markets, which provide a reliable outlet for merchantable inventory. Headquartered in Atlanta and focused exclusively on timberland ownership and management, CatchMark began operations in 2007 and owns interests in 370,100 acres* of timberlands located in Alabama, Georgia and South Carolina. For more information, visit
* As of October 15, 2021

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are not guarantees of performance and are

Exhibit 99.1
based on certain assumptions, discuss future expectations, describe plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Forward-looking statements in this press release include, but are not limited to, our expectations with respect to exceeding or meeting full-year 2021 guidance for net income and Adjusted EBITDA, respectively, our expectations with respect to our growth strategy, including making acquisitions and environmental initiatives, and our expectations with respect to fourth quarter harvest volumes. Risks and uncertainties that could cause our actual results to differ from these forward-looking statements include, but are not limited to, that (i) the supply of timberlands available for acquisition that meet our investment criteria may be less than we currently anticipate; (ii) we may be unsuccessful in winning bids for timberland that are sold through an auction process; (iii) we may not be able to access external sources of capital at attractive rates or at all; (iv) potential increases in interest rates could have a negative impact on our business; (v) timber prices may not increase at the rate we currently anticipate or could decline, which would negatively impact our revenues; (vi) we may not generate the harvest volumes from our timberlands that we currently anticipate; (vii) the demand for our timber may not increase at the rate we currently anticipate or could decline due to changes in general economic and business conditions in the geographic regions where our timberlands are located, including as a result of the COVID-19 pandemic and the measures taken as a response thereto; (viii) a downturn in the real estate market, including decreases in demand and valuations, may adversely impact our ability to generate income and cash flow from sales of higher-and-better use properties; (ix) we may not be able to make large dispositions of timberland in capital recycling transactions at prices that are attractive to us or at all; (x) our dividends are not guaranteed and are subject to change; (xi) the markets for carbon sequestration credits, wetlands mitigation banking and solar projects are still developing and we maybe unsuccessful in generating the revenues from environmental initiatives that we currently expect or in the timeframe anticipated; (xii) our share repurchase program may not be successful in improving stockholder value over the long-term; (xiii) our joint venture strategy may not enable us to access non-dilutive capital and enhance our ability to make acquisitions; and (xiv) the factors described in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2020 and our other filings with the Securities and Exchange Commission. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update our forward-looking statements, except as required by law.


Ursula Godoy-ArbelaezMary Beth Ryan, Miller Ryan LLC
(855) 858-9794(203) 268-0158

Exhibit 99.1
(in thousands, except for per-share amounts)

 Three Months Ended
September 30,
Nine Months Ended
September 30,
Timber sales$15,850 $18,060 $56,110 $52,399 
Timberland sales2,122 2,430 13,111 8,882 
Asset management fees2,984 3,118 9,313 8,950 
Other revenues1,117 1,005 3,165 3,111 
22,073 24,613 81,699 73,342 
Contract logging and hauling costs6,689 7,688 24,245 21,943 
Depletion4,560 7,286 18,942 20,934 
Cost of timberland sales1,318 1,926 9,114 6,811 
Forestry management expenses1,725 1,666 5,319 5,171 
General and administrative expenses2,954 2,768 9,648 13,059 
Land rent expense80 114 213 334 
Other operating expenses1,558 1,458 4,985 4,679 
18,884 22,906 72,466 72,931 
Other income (expense):
Interest income1 2 51 
Interest expense(3,216)(3,563)(9,481)(11,590)
Gain (loss) on large dispositions23,377 — 24,136 1,274 
20,162 (3,562)14,657 (10,265)
Income (loss) before unconsolidated joint ventures and income taxes23,351 (1,855)23,890 (9,854)
Income (loss) from unconsolidated joint ventures:
Triple T (2,689) (5,000)
Dawsonville Bluffs(43)395 620 273 
(43)(2,294)620 (4,727)
Net income (loss)23,308 (4,149)24,510 (14,581)
Net income attributable to noncontrolling interest56 — 59 — 
Net income (loss) attributable to common stockholders$23,252 $(4,149)$24,451 $(14,581)
Weighted-average common shares outstanding - basic48,441 48,766 48,412 48,833 
Income (loss) per share - basic$0.48 $(0.09)$0.51 $(0.30)
Weighted-average common shares outstanding - diluted48,637 48,766 48,613 48,833 
Income (loss) per share - diluted$0.48 $(0.09)$0.50 $(0.30)


Exhibit 99.1
(in thousands, except for per-share amounts)

September 30, 2021

December 31, 2020
Cash and cash equivalents$24,566 $11,924 
Accounts receivable7,232 8,333 
Prepaid expenses and other assets6,603 5,878 
Operating lease right-of-use asset 2,604 2,831 
Deferred financing costs2,752 167 
Timber assets:
Timber and timberlands, net470,441 576,680 
Intangible lease assets2 
Assets held for sale — 
Investment in unconsolidated joint ventures1,327 1,510 
Total assets$515,527 $607,328 
Accounts payable and accrued expenses$4,606 $4,808 
Operating lease liability2,779 2,988 
Other liabilities20,428 32,130 
Notes payable and lines of credit, net of deferred financing costs337,835 437,490 
Total liabilities365,648 477,416 
Commitments and Contingencies — 
Stockholders’ Equity:
Class A common stock, $0.01 par value; 900,000 shares authorized; 48,899 and 48,765 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively489 488 
Additional paid-in capital729,532 728,662 
Accumulated deficit and distributions(567,656)(572,493)
Accumulated other comprehensive loss(14,323)(27,893)
Total stockholders’ equity148,042 128,764 
Noncontrolling Interest1,837 1,148 
Total equity149,879 129,912 
Total liabilities and equity$515,527 $607,328 


Exhibit 99.1
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
Cash Flows from Operating Activities:
Net income (loss)$23,308 $(4,149)$24,510 $(14,581)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depletion4,560 7,286 18,942 20,934 
Basis of timberland sold, lease terminations and other1,165 1,991 8,832 6,988 
Stock-based compensation expense766 630 2,152 3,207 
Noncash interest expense537 698 1,708 2,469 
Noncash lease expense5 18 28 
Other amortization35 41 120 124 
Gain (loss) on large dispositions(23,377)— (24,136)(1,274)
(Income) loss from unconsolidated joint ventures43 2,294 (620)4,727 
Operating distributions from unconsolidated joint ventures 273  273 
Interest paid under swaps with other-than-insignificant financing element1,461 1,412 4,306 2,904 
Changes in assets and liabilities:
Accounts receivable382 (1,565)124 (1,092)
Prepaid expenses and other assets(529)(414)(32)(5)
Accounts payable and accrued expenses(968)(697)(90)1,959 
Other liabilities(558)(191)1,048 986 
Net cash provided by operating activities6,830 7,617 36,882 27,647 
Cash Flows from Investing Activities:
Capital expenditures (excluding timberland acquisitions)(603)(566)(3,923)(4,332)
Investment in unconsolidated joint ventures—  (5,000)
Distributions from unconsolidated joint ventures537 (273)803 127 
Net proceeds from large dispositions99,423 — 106,763 20,863 
Net cash provided by (used in) investing activities99,357 (839)103,643 11,658 
Cash Flows from Financing Activities:
Repayments of notes payable(95,410)— (102,705)(20,850)
Proceeds from notes payable —  5,000 
Financing costs paid(342)(15)(349)(1,019)
Interest paid under swaps with other-than-insignificant financing element(1,461)(1,412)(4,306)(2,904)
Dividends/distributions paid(6,556)(6,537)(19,684)(19,726)
Repurchases of common shares(75)(77)(233)(2,207)
Repurchase of common shares for minimum tax withholding(68)(53)(606)(1,052)
Net cash used in financing activities(103,912)(8,094)(127,883)(42,758)
Net change in cash and cash equivalents2,275 (1,316)12,642 (3,453)
Cash and cash equivalents, beginning of period22,291 9,350 11,924 11,487 
Cash and cash equivalents, end of period$24,566 $8,034 $24,566 $8,034 


Exhibit 99.1
Timber Sales Volume (tons, '000)
Pulpwood273 300 286 859 324 354 349 1,028 
Sawtimber (1)
252 228 208 688 271 214 231 715 
Total525 528 494 1,547 595 568 580 1,743 
Harvest Mix
Pulpwood52 %57 %58 %56 %54 %62 %60 %59 %
Sawtimber (1)
48 %43 %42 %44 %46 %38 %40 %41 %
Period-end Acres ('000)
Fee385 375 356 356 393 392 391 391 
Lease15 15 14 14 22 22 22 22 
Wholly-owned total400 390 370 370 415 414 413 413 
Joint venture interest (5)
1,081 1,080 774 774 1,092 1,092 1,085 1,085 
Total1,481 1,470 1,144 1,144 1,507 1,506 1,498 1,498 
U.S. South
Timber Sales Volume (tons, '000)
Pulpwood271 297 286 854 320 352 346 1,018 
Sawtimber (1)
205 194 204 603 250 195 206 651 
Total476 491 490 1,457 570 547 552 1,669 
Harvest Mix
Pulpwood57 %61 %58 %59 %56 %64 %63 %61 %
Sawtimber (1)
43 %39 %42 %41 %44 %36 %37 %39 %
Delivered % as of total volume74 %77 %70 %74 %63 %61 %63 %62 %
Stumpage % as of total volume26 %23 %30 %26 %37 %39 %37 %38 %
Net Timber Sales Price ($ per ton) (2)
Pulpwood$14 $15 $14 $14 $13 $12 $13 $13 
Sawtimber (1)
$25 $26 $25 $25 $23 $23 $22 $23 
Timberland Sales
Gross sales ('000)$3,357 $7,632 $2,122 $13,111 $4,779 $1,673 $2,430 $8,882 
Acres sold1,800 4,300 1,000 7,100 3,000 1,100 1,200 5,200 
% of fee acres0.5 %1.2 %0.3 %1.9 %0.7 %0.3 %0.3 %1.3 %
Price per acre (3)
$1,923 $1,743 $2,029 $1,828 $1,627 $1,564 $2,047 $1,710 
Large Dispositions (4)
Gross sales ('000)$— $7,536 $ $7,536 $21,250 $— $— $21,250 
Acres sold— 5,000  5,000 14,400 — — 14,400 
Price per acre (7)
$— $1,522 $ $1,522 $1,474 $— $— $1,474 
Gain ('000)$— $759 $ $759 $1,274 $— $— $1,274 
Pacific Northwest
Timber Sales Volume (tons,'000)
Pulpwood 5 10 
Sawtimber (1)
47 34 4 85 21 18 25 64 
Total49 37 4 90 25 21 28 74 
Harvest Mix
Pulpwood%%12 %6 %18 %13 %12 %14 %
Sawtimber96 %92 %88 %94 %82 %87 %88 %86 %
Delivered % as of total volume100 %100 %100 %100 %84 %100 %100 %95 %
Stumpage % as of total volume — %— % % %16 %— %— %%
Delivered Timber Sales Price ($ per ton) (2) (6)
Pulpwood$30 $30 $33 $31 $31 $29 $28 $30 
Sawtimber$104 $106 $99 $104 $91 $84 $105 $94 
Large Dispositions (4)
Gross sales ('000)$— $— $100,000 $100,000 $— $— $— $— 
Acres sold— — 18,100 18,100 — — — — 
Price per acre (7)
$— $— $5,536 $5,536 $— $— $— $— 
Gain ('000)$— $— $23,377 $23,377 $— $— $— $— 

(1)    Includes chip-n-saw and sawtimber.
(2)    Prices per ton are rounded to the nearest dollar.
(3)    Excludes value of timber reservations. For the three months ended September 30, 2021 and 2020, we retained 5,000 tons and 8,000 tons of merchantable inventory, with a sawtimber mix of 47% and pulpwood mix of 100%, respectively, for 2021 and 2020. For the nine months ended September 30, 2021 and 2020, we retained 64,000 tons and 123,000 tons of merchantable inventory, with a sawtimber mix of 37% and 48%, respectively.
(4)    Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land’s timber production value. Such dispositions are infrequent in nature, are not part of core operations, and would cause material variances in comparative results if not reported separately.
(5)    Represents properties owned by Triple T joint venture in which CatchMark owns a common partnership interest and has contributed 22.0% of total equity contributions; and Dawsonville Bluffs, LLC, a joint venture in which CatchMark owns a 50% membership interest. CatchMark serves as the manager for both of these joint ventures.
(6)    Delivered timber sales price includes contract logging and hauling costs.
(7)    Excludes value of timber reservations, which retained 56,300 tons of merchantable inventory, with a sawtimber mix of 55% for the nine months ended September 30, 2020.


Exhibit 99.1

(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2021202020212020
Net income (loss)$23,308 $(4,149)$24,510 $(14,581)
Depletion4,560 7,286 18,942 20,934 
Interest expense (2)
2,679 2,865 7,773 9,121 
Amortization (2)
577 747 1,846 2,621 
Depletion, amortization, basis of timberland, mitigation credits sold included in loss from unconsolidated joint venture (3)
10 140 113 140 
Basis of timberland sold, lease terminations and other (4)
1,165 1,991 8,832 6,988 
Stock-based compensation expense766 630 2,152 3,207 
(Gain) on large dispositions (5)
(23,377)— (24,136)(1,274)
HLBV loss from unconsolidated joint venture (6)
 2,689  5,000 
Post-employment benefits (7)
11 10 34 2,307 
Other (8)
165 190 312 260 
Adjusted EBITDA (1)
$9,864 $12,399 $40,378 $34,723 

(1)    Adjusted EBITDA is a non-GAAP financial measure of operating performance. EBITDA is defined by the SEC as earnings before interest, taxes, depreciation and amortization; however, we have excluded certain other expenses which we believe are not indicative of the ongoing operating results of our timberland portfolio, and we refer to this measure as Adjusted EBITDA. As such, our Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Due to the significant amount of timber assets subject to depletion, significant income (losses) from unconsolidated joint ventures based on hypothetical liquidation book value, or HLBV, and the significant amount of financing subject to interest and amortization expense, management considers Adjusted EBITDA to be an important measure of our financial performance. By providing this non-GAAP financial measure, together with the reconciliation above, we believe we are enhancing investors' understanding of our business and our ongoing results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA is a supplemental measure of operating performance that does not represent and should not be considered in isolation or as an alternative to, or substitute for net income, cash flow from operations, or other financial statement data presented in accordance with GAAP in our consolidated financial statements as indicators of our operating performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.
(2)    For the purpose of the above reconciliation, amortization includes amortization of deferred financing costs, amortization of operating lease assets and liabilities, amortization of intangible lease assets, and amortization of mainline road costs, which are included in either interest expense, land rent expense, or other operating expenses in the accompanying consolidated statements of operations.
(3)    Reflects our share of depletion, amortization, and basis of timberland and mitigation credits sold of the unconsolidated Dawsonville Bluffs joint venture.
(4)    Includes non-cash basis of timber and timberland assets written-off related to timberland sold, terminations of timberland leases and casualty losses.
(5)    Large dispositions are sales of blocks of timberland properties in one or several transactions with the objective to generate proceeds to fund capital allocation priorities. Large dispositions may or may not have a higher or better use than timber production or result in a price premium above the land’s timber production value. Such dispositions are infrequent in nature, are not part of core operations, and would cause material variances in comparative results if not reported separately.
(6)    Reflects HLBV losses from the Triple T joint venture, which is determined based on a hypothetical liquidation of the underlying joint venture at book value as of the reporting date.
(7)    Reflects one-time, non-recurring post-employment benefits associated with the retirement of our former CEO, including severance pay, payroll taxes, professional fees, and accrued dividend equivalents paid in installments over agreed-upon periods of time.
(8)    Includes certain cash expenses paid, or reimbursement received, that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions, transactions, joint ventures or new business initiatives.

Exhibit 99.1

(in thousands)

Three Months Ended
September 30,
Nine Months Ended
September 30,
Timber sales$15,850 $18,060 $56,110 $52,399 
Other revenue1,117 1,005 3,165 3,111 
(-) Contract logging and hauling costs(6,689)(7,688)(24,245)(21,943)
(-) Forestry management expenses(1,725)(1,666)(5,319)(5,171)
(-) Land rent expense(80)(114)(213)(334)
(-) Other operating expenses(1,558)(1,458)(4,985)(4,679)
(+) Stock-based compensation142 110 392 307 
(+/-) Other20 253 466 807 
Harvest EBITDA7,077 8,502 25,371 24,497 
Timberland sales2,122 2,430 13,111 8,882 
(-) Cost of timberland sales(1,318)(1,926)(9,114)(6,811)
(+) Basis of timberland sold1,170 1,768 8,454 6,271 
Real Estate EBITDA1,974 2,272 12,451 8,342 
Asset management fees2,984 3,118 9,313 8,950 
Unconsolidated Dawsonville Bluffs joint venture EBITDA(33)535 733 413 
Investment Management EBITDA2,951 3,653 10,046 9,363 
Total Operating EBITDA12,002 14,427 47,868 42,202 
(-) General and administrative expenses(2,954)(2,768)(9,648)(13,059)
(+) Stock-based compensation624 520 1,760 2,900 
(+) Interest income1 2 51 
(+) Post-employment benefits11 10 34 2,307 
(+/-) Other180 209 362 322 
Corporate EBITDA(2,138)(2,028)(7,490)(7,479)
Adjusted EBITDA (1)
$9,864 $12,399 $40,378 $34,723 

(1)    See definition of Adjusted EBITDA on page 12.

Exhibit 99.1
(in thousands, except for per share data)

Three Months Ended
September 30,
Nine Months Ended
September 30,
Cash Provided by Operating Activities$6,830 $7,617 $36,882 $27,647 
Capital expenditures (excluding timberland acquisitions)(603)(566)(3,923)(4,332)
Working capital change1,673 2,867 (1,050)(1,848)
Distributions from unconsolidated joint ventures537 (273)803 127 
Post-employment benefits11 10 34 2,307 
Interest paid under swaps with other-than-insignificant financing element(1,461)(1,412)(4,306)(2,904)
Other165 190 312 260 
Cash Available for Distribution (1)
$7,152 $8,433 $28,752 $21,257 
Adjusted EBITDA (2)
$9,864 $12,399 $40,378 $34,723 
Interest paid(2,679)(2,865)(7,773)(9,121)
Capital expenditures (excluding timberland acquisitions)(603)(566)(3,923)(4,332)
Distributions from unconsolidated joint ventures537 — 803 400 
Adjusted EBITDA from unconsolidated joint ventures33 (535)(733)(413)
Cash Available for Distributions (1)
$7,152 $8,433 $28,752 $21,257 
Dividends / distributions paid$6,556 $6,537 $19,684 $19,726 
Weighted-average shares outstanding - basic48,441 48,766 48,412 48,833 
Dividends per Share$0.135 $0.135 $0.405 $0.405 

(1)    Cash Available for Distribution (CAD) is a non-GAAP financial measure. It is calculated as cash provided by operating activities, adjusted for capital expenditures (excluding timberland acquisitions), working capital changes, cash distributions from unconsolidated joint ventures and certain cash expenditures that management believes do not directly reflect the core business operations of our timberland portfolio on an on-going basis, including costs required to be expensed by GAAP related to acquisitions, transactions, joint ventures or new business activities.
(2)    See definition of Adjusted EBITDA on page 12.

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Ticker: CTT
CIK: 1341141
Form Type: 8-K Corporate News
Accession Number: 0001341141-21-000083
Submitted to the SEC: Thu Nov 04 2021 4:09:07 PM EST
Accepted by the SEC: Thu Nov 04 2021
Period: Thursday, November 4, 2021
Industry: Real Estate Investment Trusts
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

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