Potlatch Reports Fourth Quarter And Full Year 2012 Results

SPOKANE, Wash., Jan. 29, 2013 (GLOBE NEWSWIRE) -- Potlatch Corporation (Nasdaq:PCH) today reported financial results for the fourth quarter and full year ended December 31, 2012.

"Operating results for 2012 greatly exceeded our expectations. Market conditions improved considerably as we moved through the year, resulting in significantly better results versus what we were predicting at this time last year," said Michael Covey, chairman, president and chief executive officer of Potlatch Corporation. "Our Wood Products segment experienced a real turnaround in its markets, with strong demand for manufactured wood products resulting in sharply higher prices. In response, we increased production and shipments and were able to sustain this level throughout the year. Our Wood Products segment has now had three consecutive quarters of its highest quarterly operating income in over five years. This much improved outlook for our Wood Products segment is beginning to translate to an improved outlook for our Resource segment, our largest asset. We deferred a portion of our harvest volume during 2012 to patiently wait for improved market conditions, and this is proving to be the right decision as sawlog prices have generally been moving higher over the past several quarters. Our Real Estate segment had another solid year in 2012 as this was our best year ever for rural real estate and HBU sales," concluded Mr. Covey.

Q4 2012 Financial Summary
  • Total consolidated revenues for the quarter were $143.3 million, compared to $109.9 million in Q4 2011 and $151.9 million in Q3 2012.  
  • Net income for the quarter was $13.9 million, or $0.34 per diluted common share, compared to a net loss of $1.5 million, or a loss of $0.04 per diluted common share, in Q4 2011 and net income of $18.6 million, or $0.46 per diluted share, in Q3 2012.  
  • EBITDDA was $36.4 million for Q4 2012, compared to $7.8 million in Q4 2011 and $37.0 million in Q3 2012.

Q4 2012 Business Performance

Resource

Operating income for the Resource segment in Q4 2012 was $10.5 million, compared to $12.6 million in Q4 2011 and $23.6 million in Q3 2012. The decrease from Q4 2011 was primarily due to the harvest deferral, while the decrease from Q3 2012 was primarily related to seasonal factors as the third quarter is the Northern region's strongest production quarter.       

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