Catchmark Timber Trust (CTT) Misses Q4 EPS by 5c, Revenues Miss

Catchmark Timber Trust (NYSE: CTT) reported Q4 EPS of ($0.78), $0.05 worse than the analyst estimate of ($0.73). Revenue for the quarter came in at $22.9 million versus the consensus estimate of $24 million.

2019 Outlook and Guidance

For full-year 2019, CatchMark projects a GAAP net loss of between $102 million and $106 million, including $90 million of losses allocated from the Triple T joint venture in accordance with GAAP. The company anticipates its Adjusted EBITDA will be between $52 million and $60 million, including $3 million to $5 million of Adjusted EBITDA generated by the unconsolidated Dawsonville Bluffs joint venture. This guidance represents a 4% to 21% increase in Adjusted EBITDA compared to full-year 2018 primarily from registering a full-year of Triple T asset management fees of $11.5 million and an increase in net timber revenue partially offset by lower year-over-year Adjusted EBITDA from Dawsonville Bluffs due to selling fewer acres. Harvest volumes are forecast between 2.2 million and 2.4 million tons with an approximately 40% to 50% harvest mix component from sawlogs. Timberland sales targets of $16 million to $18 million remain in the range of 1% to 2% of fee acreage. The guidance does not include potential contributions from future acquisitions or additional joint venture investments and does not include any potential capital recycling from dispositions.

Barag said: "Beginning in the second quarter of 2019, the Bandon acquisition is anticipated to help drive increased total harvest volume and improve our sawtimber harvest mix. We expect a slight increase, almost 1%, in South-wide harvest volumes as our healthy mill markets, fiber supply agreements and delivered wood strategy continue to generate consistent and predictable cash flow growth. The contribution of a full year of Triple T asset management fees highlights the benefits of our investment management business strategy and our timberland sales target remains consistent with past years."

For earnings history and earnings-related data on Catchmark Timber Trust (CTT) click here.

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