Weyerhaeuser Company Declares Supplemental Dividend on Common Shares
SEATTLE, Jan. 28, 2022 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced that its board of directors declared a supplemental dividend of $1.45 per share on the common stock of the company, payable in cash on February 28, 2022, to holders of record of such common stock as of the close of business on February 18, 2022.
In 2021, Weyerhaeuser generated Adjusted Funds Available for Distribution (Adjusted FAD) of more than $2.6 billion. Including the supplemental dividend to be paid on February 28, 2022, Weyerhaeuser is returning $2.63 per share of dividends to shareholders based on 2021 financial results, or 75 percent of 2021 Adjusted FAD, including:
- $509 million, or $0.68 per share, of quarterly base dividends paid in 2021;
- $375 million, or $0.50 per share, from an interim supplemental dividend paid in October 2021; and
- nearly $1.1 billion, or $1.45 per share, from the supplemental dividend declared today.
Including $100 million of shares repurchased during 2021, Weyerhaeuser is returning more than $2 billion of total cash to shareholders based on 2021 results, or 79 percent of 2021 Adjusted FAD, in line with the company's previously communicated annual payout range of 75 to 80 percent of Adjusted FAD. As of December 31, 2021, the company had approximately $926 million of remaining capacity under the previously announced $1 billion share repurchase program authorized by the Weyerhaeuser board of directors in September 2021.
"We are excited to announce the final installment of cash return to shareholders based on 2021 financial results," said Devin W. Stockfish, president and chief executive officer. "The meaningful supplemental dividend declared today, when combined with dividend payments and share repurchase activity in 2021, demonstrates our commitment to returning a significant portion of our cash flow back to shareholders and the strong cash generation capability of our unmatched portfolio of assets and industry-leading operating performance.
"As we move forward in 2022," Stockfish continued, "we remain committed to returning a significant amount of cash to shareholders. This commitment will continue to be supported by our sustainable quarterly base dividend, which we intend to grow by 5 percent annually through 2025 driven by growth opportunities in our Timberlands and Natural Climate Solutions businesses. We will supplement our base dividend with an additional return of cash, as appropriate, to achieve our targeted annual payout of 75 to 80 percent of Adjusted FAD. As demonstrated in 2021, we have the flexibility in our capital allocation framework to return this additional cash either in the form of a supplemental cash dividend, which would be paid in the first quarter of 2023 based on full-year 2022 results, or through a combination of supplemental dividend and opportunistic share repurchase. We continue to believe this framework will enhance our ability to drive long-term shareholder value by returning meaningful and appropriate amounts of cash back to our shareholders across a variety of market conditions."
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2021, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES
This news release contains statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the company's expectations about the amount, timing and occurrence of future quarterly and supplemental cash dividends, and the company's dividend framework, as well as the company's ability to drive long-term shareholder value and its commitment to return cash to shareholders in the form of quarterly and supplemental cash dividends and opportunistic share repurchase. Forward-looking statements are generally identified by words such as "annual," "believe," "committed," "continue," "expect," "opportunities," "sustainable," "targeted," "would," and "will," and similar words and expressions referencing future events. Forward-looking statements are based on our current expectations and assumptions, the accuracy of which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in our 2020 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements and reports, including reports, registration statements, prospectuses, information statements and other filings with the Securities and Exchange Commission.
It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
Also included in this news release are references to Adjusted FAD, which is a non-GAAP financial measure. Adjusted FAD may not be comparable to similarly named or captioned non-GAAP financial measures of other companies due to potential inconsistencies in how such measures are calculated. Adjusted FAD measures, when presented, should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results.
RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS
Adjusted FAD, a non-GAAP measure, is defined by Weyerhaeuser as net cash from operations adjusted for capital expenditures and significant non-recurring items. We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.
The table below reconciles Adjusted FAD to net cash from operations:
Net cash from operations
Adjustments to FAD(1)
Adjustments to FAD include a $95 million tax refund received in fourth quarter 2021 associated with our $300 million voluntary contribution to our U.S. qualified pension plan in 2018.
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SOURCE Weyerhaeuser Company