WY Q4 2022 Earnings Financial Package (1)

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School
University of Ottawa **We aren't endorsed by this school
Course
ACCOUNTING 3345
Subject
Accounting
Date
Oct 29, 2023
Pages
8
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Page 1 of 8 Weyerhaeuser Company Exhibit 99.2 Q4.2022 Analyst Package Preliminary results (unaudited) Consolidated Statement of Operations Q1 Q2 Q3 Q4 Year-to-Date in millions March 31, 2022 June 30, 2022 Sept 30, 2022 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Net sales $ 3,112 $ 2,973 $ 2,276 $ 1,823 $ 2,206 $ 10,184 $ 10,201 Costs of sales 1,647 1,789 1,694 1,434 1,501 6,564 6,103 Gross margin 1,465 1,184 582 389 705 3,620 4,098 Selling expenses 23 23 24 23 27 93 95 General and administrative expenses 92 102 100 104 113 398 396 Other operating costs (income), net 6 12 1 30 (44 ) 49 (36 ) Operating income 1,344 1,047 457 232 609 3,080 3,643 Non-operating pension and other post-employment benefit costs (15 ) (11 ) (12 ) (216 ) (5 ) (254 ) (19 ) Interest income and other (1 ) 1 9 16 1 25 5 Interest expense, net of capitalized interest (72 ) (65 ) (67 ) (66 ) (77 ) (270 ) (313 ) Loss on debt extinguishment (276 ) (276 ) Earnings (loss) before income taxes 980 972 387 (34 ) 528 2,305 3,316 Income taxes (209 ) (184 ) (77 ) 45 (112 ) (425 ) (709 ) Net earnings $ 771 $ 788 $ 310 $ 11 $ 416 $ 1,880 $ 2,607 Per Share Information Q1 Q2 Q3 Q4 Year-to-Date March 31, 2022 June 30, 2022 Sept 30, 2022 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Earnings per share Basic $ 1.03 $ 1.06 $ 0.42 $ 0.02 $ 0.56 $ 2.53 $ 3.48 Diluted $ 1.03 $ 1.06 $ 0.42 $ 0.02 $ 0.55 $ 2.53 $ 3.47 Dividends paid per common share $ 1.63 $ 0.18 $ 0.18 $ 0.18 $ 0.67 $ 2.17 $ 1.18 Weighted average shares outstanding (in thousands): Basic 747,507 744,542 740,058 735,715 749,020 741,904 749,496 Diluted 748,823 745,582 740,975 736,640 750,942 742,953 750,983 Common shares outstanding at end of period (in thousands) 745,442 741,738 737,547 732,794 747,301 732,794 747,301 Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA) Q1 Q2 Q3 Q4 Year-to-Date in millions March 31, 2022 June 30, 2022 Sept 30, 2022 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Net earnings $ 771 $ 788 $ 310 $ 11 $ 416 $ 1,880 $ 2,607 Non-operating pension and other post-employment benefit costs 15 11 12 216 5 254 19 Interest income and other 1 (1 ) (9 ) (16 ) (1 ) (25 ) (5 ) Interest expense, net of capitalized interest 72 65 67 66 77 270 313 Loss on debt extinguishment 276 276 Income taxes 209 184 77 (45 ) 112 425 709 Operating income 1,344 1,047 457 232 609 3,080 3,643 Depreciation, depletion and amortization 122 119 119 120 121 480 477 Basis of real estate sold 31 39 7 7 9 84 71 Special items included in operating income 10 (65 ) 10 (97 ) Adjusted EBITDA (1) $ 1,497 $ 1,205 $ 583 $ 369 $ 674 $ 3,654 $ 4,094 (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 2 of 8 Weyerhaeuser Company Total Company Statistics Q4.2022 Analyst Package Preliminary results (unaudited) Special Items Included in Net Earnings (Income Tax Affected) Q1 Q2 Q3 Q4 Year-to-Date in millions March 31, 2022 June 30, 2022 Sept 30, 2022 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Net earnings $ 771 $ 788 $ 310 $ 11 $ 416 $ 1,880 $ 2,607 Gain on sale of timberlands (32 ) Insurance recovery (9 ) (9 ) Legal benefit (12 ) (12 ) Loss on debt extinguishment (1) 207 207 Pension settlement charge 152 152 Product remediation recovery (28 ) (28 ) Restructuring, impairments and other charges 8 8 Net earnings before special items (2) $ 978 $ 788 $ 310 $ 171 $ 367 $ 2,247 $ 2,526 Q1 Q2 Q3 Q4 Year-to-Date March 31, 2022 June 30, 2022 Sept 30, 2022 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Net earnings per diluted share $ 1.03 $ 1.06 $ 0.42 $ 0.02 $ 0.55 $ 2.53 $ 3.47 Gain on sale of timberlands (0.04 ) Insurance recovery (0.01 ) (0.01 ) Legal benefit (0.01 ) (0.01 ) Loss on debt extinguishment (1) 0.28 0.28 Pension settlement charge 0.21 0.20 Product remediation recovery (0.04 ) (0.04 ) Restructuring, impairments and other charges 0.01 0.01 Net earnings per diluted share before special items (2) $ 1.31 $ 1.06 $ 0.42 $ 0.24 $ 0.49 $ 3.02 $ 3.37 (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 Q3 Q4 Year-to-Date in millions March 31, 2022 June 30, 2022 Sept 30, 2022 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Pension and post-employment costs: Pension and post-employment service costs $ 10 $ 8 $ 9 $ 9 $ 10 $ 36 $ 42 Non-operating pension and other post-employment benefit costs 15 11 12 216 5 254 19 Total company pension and post-employment costs $ 25 $ 19 $ 21 $ 225 $ 15 $ 290 $ 61
Page 3 of 8 Weyerhaeuser Company Q4.2022 Analyst Package Preliminary results (unaudited) Condensed Consolidated Balance Sheet in millions March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 1,205 $ 1,723 $ 1,920 $ 1,581 $ 1,879 Receivables, net 745 547 425 357 507 Receivables for taxes 8 6 15 42 24 Inventories 611 571 542 550 520 Prepaid expenses and other current assets 206 165 146 216 205 Total current assets 2,775 3,012 3,048 2,746 3,135 Property and equipment, net 2,026 2,000 1,997 2,171 2,057 Construction in progress 203 233 245 222 175 Timber and timberlands at cost, less depletion 11,469 11,706 11,681 11,604 11,510 Minerals and mineral rights, less depletion 252 248 245 214 255 Deferred tax assets 15 11 10 8 17 Other assets 376 370 364 375 503 Total assets $ 17,116 $ 17,580 $ 17,590 $ 17,340 $ 17,652 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ $ $ 118 $ 982 $ Accounts payable 310 283 272 247 281 Accrued liabilities 674 658 664 511 673 Total current liabilities 984 941 1,054 1,740 954 Long-term debt, net 5,053 5,053 4,935 4,071 5,099 Deferred tax liabilities 66 83 89 96 46 Deferred pension and other post-employment benefits 432 347 335 344 440 Other liabilities 344 340 339 340 346 Total liabilities 6,879 6,764 6,752 6,591 6,885 Total equity 10,237 10,816 10,838 10,749 10,767 Total liabilities and equity $ 17,116 $ 17,580 $ 17,590 $ 17,340 $ 17,652
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