1Q net income was $15.5 million, or $0.38 per diluted share, compared to $5.1 million, or $0.13 per diluted share in 1Q 2012, and $13.9 million, or $0.34 per diluted share in 4Q 2012.
EBITDDA was $33.4 million for 1Q 2013 compared to $18.3 million for 1Q 2012 and $36.4 million in 4Q 2012.
"We are off to a very strong start in 2013 as 1Q results exceeded our expectations," said Michael Covey, chairman and CEO of Potlatch Corporation. "The strength in our Wood Products operations in 2012 carried over into 2013, as lumber prices continued to strengthen in the 1Q despite lower demand due to poor winter weather in much of the country. Last year we began to see the improvement in lumber prices begin to be reflected in higher log prices, and that trend continues today, particularly in the northern region of our Resource business. Because of the strength in sawlog prices in Idaho, we pulled forward a portion of our planned harvest from the second half of the year into the 1Q to take advantage of this pricing opportunity. In addition, the two land acquisitions we made in Arkansas in late 2012 increased our harvest levels slightly in our Southern region in the 1Q. Although sawlog prices in the South remained depressed in the 1Q, we are optimistic that pricing will improve. In our Real Estate segment, we are seeing increased demand for our rural and HBU real estate properties, which is leading to firmer pricing," concluded Mr. Covey.
Wood Products segment revenues were $91.5 million in 1Q 2013 compared to $73.9 million in 1Q 2012 and $85.1 million in 4Q 2012. Operating income for the segment totaled $18.9 million in 1Q 2013 compared to $5 million in 1Q 2012 and $13.5 million in 4Q 2012. The year-over-year increases in revenues and income were the result of significantly improved prices, partially offset by slightly decreased shipment volumes. The quarter-over-quarter increases in revenues and income resulted from improved product pricing partially offset by slightly increased costs and modestly lower shipment volumes.
Lumber prices in 1Q 2013 increased 35% and 15% over 1Q 2012 and 4Q 2012, respectively, due to strong demand for manufactured wood products. Lumber shipments in 1Q 2013 decreased slightly from both 1Q 2012 and 4Q 2012.
"We are very pleased with our 1Q results and have a very favorable outlook for the remainder of the year. We expect new housing starts to continue to climb and domestic home repair and remodel activities to increase as the economy continues to advance. We are continuing to see the improvement in lumber prices work its way into higher sawlog prices, which will contribute greatly to our Resource segment's income for the year. At this time, we still expect our 2013 harvest to be approximately 3.8 million tons. We believe sawlog prices will be significantly higher in the years ahead as demand improves, so we are continuing with our harvest deferral strategy of approximately 800,000 tons per year. In our Wood Products business, demand for manufactured wood products continues to support lumber and plywood prices. Our Real Estate business remains strong as interest in rural recreational real estate continues to be solid, and in fact we are seeing a slight price improvement trend in our recent real estate sales. Our balance sheet remains strong as evidenced by the recent S&P and Moody's upgrades, and after a $9 million early redemption of debt on June 1, 2013, we have no debt maturities until the end of 2015," concluded Mr. Covey.
Potlatch is a Real Estate Investment Trust (REIT) with approximately 1.4 million acres of timberland in Arkansas, Idaho and Minnesota. Potlatch, a verified forest practices leader, is committed to providing superior returns to stockholders through long-term stewardship of its forest resources. The company also conducts a land sales and development business and operates wood products manufacturing facilities through its taxable REIT subsidiary.