Rayonier Reports First Quarter 2023 Results
-
First quarter net income attributable to Rayonier of
($8.3 million per share) on revenues of$0.06 $179.1 million -
First quarter pro forma net income of
($1.1 million per share)$0.01 -
First quarter operating income of
, pro forma operating income of$10.6 million , and Adjusted EBITDA of$12.9 million $54.7 million -
First quarter cash provided by operations of
and cash available for distribution (CAD) of$64.0 million $30.0 million
WILDLIGHT, Fla.--(BUSINESS WIRE)--
Rayonier Inc. (NYSE:RYN) today reported first quarter net income attributable to Rayonier of
The first quarter results included a
The following table summarizes the current quarter and comparable prior year period results:
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Three Months Ended |
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(millions of dollars, except earnings per share (EPS)) |
March 31, 2023 |
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March 31, 2022 |
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$ |
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EPS |
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$ |
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EPS |
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Revenues |
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Net income attributable to Rayonier |
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Net recovery on legal settlement |
(9.1 |
) |
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(0.06 |
) |
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— |
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— |
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Timber write-off resulting from a casualty event1 |
2.3 |
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0.02 |
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— |
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— |
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Pro forma net income adjustments attributable to noncontrolling interests2 |
(0.4 |
) |
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(0.01 |
) |
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— |
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— |
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Pro forma net income3 |
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First quarter operating income was
The following table summarizes operating income (loss), pro forma operating income (loss),3 and Adjusted EBITDA3 for the current quarter and comparable prior year period:
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Three Months Ended March 31, |
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Operating Income
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Pro forma Operating
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Adjusted EBITDA3 |
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(millions of dollars) |
2023 |
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2022 |
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2023 |
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2022 |
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2023 |
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2022 |
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Southern Timber |
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Pacific Northwest Timber |
(3.5 |
) |
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6.6 |
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(3.5 |
) |
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6.6 |
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7.1 |
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21.5 |
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New Zealand Timber |
(0.7 |
) |
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5.4 |
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1.6 |
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5.4 |
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6.1 |
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10.4 |
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Real Estate |
0.9 |
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10.2 |
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0.9 |
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10.2 |
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6.6 |
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24.7 |
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Trading |
0.3 |
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0.4 |
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0.3 |
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0.4 |
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0.3 |
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0.4 |
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Corporate and Other |
(8.6 |
) |
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(7.6 |
) |
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(8.6 |
) |
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(7.6 |
) |
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(8.2 |
) |
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(7.2 |
) |
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Total |
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Cash provided by operating activities was
“Our team navigated numerous market challenges throughout the first quarter,” said David Nunes, CEO. “Amid weaker end-market demand and continued macroeconomic headwinds, the total Adjusted EBITDA generated by our Timber segments collectively declined
“In our New Zealand Timber segment, Adjusted EBITDA declined
“Real Estate segment Adjusted EBITDA was
“Overall, Adjusted EBITDA of
Southern Timber
First quarter sales of
First quarter Adjusted EBITDA3 of
Pacific Northwest Timber
First quarter sales of
First quarter Adjusted EBITDA3 of
New Zealand Timber
First quarter sales of
First quarter Adjusted EBITDA3 of
Real Estate
First quarter sales of
Improved Development sales of
Rural sales of
Timberland & Non-Strategic sales of
First quarter Adjusted EBITDA3 of
Trading
First quarter sales of
Other Items
First quarter corporate and other operating expenses of
First quarter interest expense of
First quarter other interest and miscellaneous income included
First quarter income tax expense of
Outlook
“Based on our first quarter results and our expectations for the balance of the year, we now anticipate full-year Adjusted EBITDA and pro forma EPS toward the lower end of our prior guidance range,” added Nunes.
“In our Southern Timber segment, we are on track to achieve our full-year volume guidance but anticipate lower quarterly harvest volumes for the remainder of the year. Over the near-term, we expect that weighted-average net stumpage realizations will remain below first quarter levels as demand, particularly for pulpwood, has been negatively impacted by the macroeconomic environment. We continue to anticipate higher non-timber income for full-year 2023 as compared to full-year 2022.”
“In our Pacific Northwest Timber segment, we expect harvest volumes toward the lower end of our prior guidance, as we have deferred some planned harvests in response to unfavorable market conditions. Following the pullback in pricing to start the year, we anticipate that weighted-average delivered log prices will modestly improve from first quarter levels over the balance of 2023 as end-market demand and mill inventories normalize.”
“In our New Zealand Timber segment, we expect harvest volumes toward the lower end of our prior guidance given the lost production days resulting from Cyclone Gabrielle. We anticipate that weighted-average delivered log prices will remain relatively flat as compared to the first quarter over the balance of the year. We further anticipate a higher contribution from carbon credit sales over the balance of the year following no activity in the first quarter.”
“In our Real Estate segment, we remain encouraged by the interest in our development projects and rural properties. Overall, there continues to be strong demand for HBU properties and timberland assets despite the higher interest rate environment. Consistent with our prior guidance, we expect significantly higher transaction volume and operating results in the second half of the year from this segment.”
“In summary, while the current macroeconomic backdrop and near-term outlook are challenging, we remain optimistic about the long-term prospects for our business. Specifically, we believe that long-term housing fundamentals coupled with burgeoning business opportunities around nature-based solutions should support long-term growth in timberland cash flows and corresponding valuations over time.”
Conference Call
A conference call and live audio webcast will be held on Thursday, May 4, 2023 at 10:00 AM (ET) to discuss these results.
Access to the live audio webcast will be available at www.rayonier.com. A replay of the webcast will be archived on the Company’s website and available shortly after the call.
Investors may listen to the conference call by dialing 888-604-9366 (domestic) or 517-308-9338 (international), passcode: RAYONIER. A replay of the conference call will be available one hour following the call until Sunday, June 4, 2023, by dialing 800-819-5739 (domestic) or 203-369-3350 (international), passcode: 3078.
Complimentary copies of Rayonier press releases and other financial documents are also available by calling (904) 357-9100.
1"Timber write-off resulting from a casualty event" includes the write-off of merchantable and pre-merchantable timber volume damaged by a casualty event that cannot be salvaged.
2"Pro forma net income adjustments attributable to noncontrolling interests" are the proportionate share of pro forma items that are attributable to noncontrolling interests.
3"Pro forma net income," "Pro forma revenues (sales)," "Pro forma operating income (loss)," "Adjusted EBITDA" and "CAD" are non-GAAP measures defined and reconciled to GAAP in the attached exhibits.
About Rayonier
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in
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Forward-Looking Statements - Certain statements in this press release regarding anticipated financial outcomes including Rayonier’s earnings guidance, if any, business and market conditions, outlook, expected dividend rate, Rayonier’s business strategies, expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of Rayonier’s business strategies, and other similar statements relating to Rayonier’s future events, developments or financial or operational performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “project,” “anticipate” and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While management believes that these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements.
The following important factors, among others, could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document: the cyclical and competitive nature of the industries in which we operate; fluctuations in demand for, or supply of, our forest products and real estate offerings, including any downturn in the housing market; entry of new competitors into our markets; changes in global economic conditions and world events, including the war in
For additional factors that could impact future results, please see Item 1A - Risk Factors in the Company’s most recent Annual Report on Form 10-K and similar discussion included in other reports that we subsequently file with the Securities and Exchange Commission (the “SEC”). Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent reports filed with the SEC.
Non-GAAP Financial Measures – To supplement Rayonier’s financial statements presented in accordance with generally accepted accounting principles in
RAYONIER INC. AND SUBSIDIARIES CONDENSED STATEMENTS OF CONSOLIDATED INCOME March 31, 2023 (unaudited) (millions of dollars, except per share information) |
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Three Months Ended |
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March 31, |
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December 31, |
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March 31, |
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2023 |
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2022 |
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2022 |
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SALES |
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Costs and Expenses |
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Cost of sales |
(149.2 |
) |
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(180.9 |
) |
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(161.0 |
) |
Selling and general expenses |
(16.8 |
) |
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(15.7 |
) |
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(14.7 |
) |
Other operating expense, net |
(2.5 |
) |
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(4.7 |
) |
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(1.0 |
) |
OPERATING INCOME |
10.6 |
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44.1 |
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45.3 |
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Interest expense |
(11.7 |
) |
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(9.7 |
) |
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(8.3 |
) |
Interest and other miscellaneous income (expense), net |
9.6 |
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1.6 |
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(0.5 |
) |
INCOME BEFORE INCOME TAXES |
8.5 |
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36.0 |
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36.5 |
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Income tax expense |
(1.1 |
) |
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(1.4 |
) |
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(5.5 |
) |
NET INCOME |
7.4 |
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34.6 |
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31.0 |
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Less: Net income attributable to noncontrolling interests in the operating partnership |
(0.2 |
) |
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(0.7 |
) |
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(0.7 |
) |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates |
1.1 |
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(0.8 |
) |
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(1.0 |
) |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. |
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EARNINGS PER COMMON SHARE |
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Basic earnings per share attributable to Rayonier Inc. |
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Diluted earnings per share attributable to Rayonier Inc. |
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Pro forma net income per share (a) |
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Weighted Average Common Shares used for determining |
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Basic EPS |
147,377,448 |
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146,765,131 |
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145,430,171 |
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Diluted EPS (b) |
151,079,129 |
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150,572,519 |
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149,547,076 |
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(a) |
Pro forma net income per share is a non-GAAP measure. See Schedule F for definition and reconciliation to the nearest GAAP measure. |
(b) |
Diluted earnings per share is calculated based on the weighted average number of shares of common stock outstanding combined with the incremental weighted average number of shares that would have been outstanding assuming all potentially dilutive securities (including Redeemable Operating Partnership Units) were converted into shares of common stock at the earliest date possible. As of March 31, 2023, there were 148,012,979 common shares and 2,479,276 Redeemable Operating Partnership Units outstanding. |
A |
RAYONIER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2023 (unaudited) (millions of dollars) |
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March 31, |
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December 31, |
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2023 |
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2022 |
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Assets |
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Cash and cash equivalents |
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Assets held for sale |
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1.2 |
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0.7 |
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Other current assets |
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87.4 |
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87.3 |
|
Timber and timberlands, net of depletion and amortization |
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3,210.0 |
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3,230.9 |
|
Higher and better use timberlands and real estate development investments |
|
119.7 |
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|
115.1 |
|
Property, plant and equipment |
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44.7 |
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|
44.7 |
|
Less - accumulated depreciation |
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(18.0 |
) |
|
(17.5 |
) |
Net property, plant and equipment |
|
26.7 |
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|
27.2 |
|
Restricted cash |
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5.0 |
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|
1.2 |
|
Right-of-use assets |
|
98.3 |
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|
97.2 |
|
Other assets |
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100.2 |
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115.5 |
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Liabilities, Noncontrolling Interests in the Operating Partnership and Shareholders’ Equity |
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Other current liabilities |
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96.8 |
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95.3 |
|
Long-term debt |
|
1,514.1 |
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|
1,514.7 |
|
Long-term lease liability |
|
89.9 |
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|
88.8 |
|
Other non-current liabilities |
|
109.1 |
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|
104.1 |
|
Noncontrolling interests in the operating partnership |
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82.5 |
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105.8 |
|
Total Rayonier Inc. shareholders’ equity |
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1,840.6 |
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1,865.4 |
|
Noncontrolling interests in consolidated affiliates |
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14.2 |
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15.3 |
|
Total shareholders’ equity |
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1,854.8 |
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|
1,880.7 |
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B |
RAYONIER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY March 31, 2023 (unaudited) (millions of dollars, except share information) |
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Common Shares |
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Retained
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Accumulated
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Noncontrolling
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Shareholders’
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Shares |
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Amount |
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Balance, January 1, 2023 |
147,282,631 |
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Issuance of shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs |
400 |
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— |
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— |
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— |
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— |
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— |
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Net income |
— |
|
— |
|
8.5 |
|
|
— |
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(1.1 |
) |
|
7.4 |
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Net income attributable to noncontrolling interests in the operating partnership |
— |
|
— |
|
(0.2 |
) |
|
— |
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— |
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|
(0.2 |
) |
||
Dividends ( |
— |
|
— |
|
(42.2 |
) |
|
— |
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|
— |
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|
(42.2 |
) |
||
Issuance of shares under incentive stock plans |
1,564 |
|
— |
|
— |
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— |
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|
— |
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|
— |
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||
Stock-based compensation |
— |
|
2.5 |
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— |
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— |
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— |
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2.5 |
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||
Adjustment of noncontrolling interests in the operating partnership |
— |
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— |
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(2.4 |
) |
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— |
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— |
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(2.4 |
) |
||
Other (a) |
728,384 |
|
23.8 |
|
— |
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|
(14.8 |
) |
|
— |
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|
9.0 |
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||
Balance, March 31, 2023 |
148,012,979 |
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Common Shares |
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Retained
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Accumulated
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Noncontrolling
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Shareholders’
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Shares |
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Amount |
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Balance, January 1, 2022 |
145,372,961 |
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( |
) |
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Issuance of shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs of |
726,248 |
|
|
29.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
29.8 |
|
Net income |
— |
|
|
— |
|
|
30.0 |
|
|
— |
|
|
1.0 |
|
|
31.0 |
|
Net income attributable to noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
(0.7 |
) |
|
— |
|
|
— |
|
|
(0.7 |
) |
Dividends ( |
— |
|
|
— |
|
|
(39.9 |
) |
|
— |
|
|
— |
|
|
(39.9 |
) |
Issuance of shares under incentive stock plans |
11,364 |
|
|
0.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.4 |
|
Stock-based compensation |
— |
|
|
2.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
2.8 |
|
Adjustment of noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
(2.6 |
) |
|
— |
|
|
— |
|
|
(2.6 |
) |
Other (a) |
(2,885 |
) |
|
(0.2 |
) |
|
— |
|
|
45.6 |
|
|
(0.2 |
) |
|
45.2 |
|
Balance, March 31, 2022 |
146,107,688 |
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(a) |
Primarily includes shares purchased from employees in non-open market transactions to pay withholding taxes associated with the vesting of shares granted under the Company’s Incentive Stock Plan, amortization of pension and post-retirement plan liabilities, foreign currency translation adjustments, mark-to-market adjustments of qualifying cash flow hedges, distributions to noncontrolling interests in consolidated affiliates and the allocation of other comprehensive income to noncontrolling interests in the operating partnership. The three months ended March 31, 2023 also includes the redemption of 729,551 Redeemable Operating Partnership Units, respectively, for an equal number of Rayonier Inc. common shares. |
C |
RAYONIER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS March 31, 2023 (unaudited) (millions of dollars) |
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|
Three Months Ended March 31, |
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|
2023 |
|
2022 |
||
Cash provided by operating activities: |
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|
|
||
Net income |
|
|
|
|
|
Depreciation, depletion and amortization |
37.6 |
|
|
47.4 |
|
Non-cash cost of land and improved development |
4.2 |
|
|
5.4 |
|
Timber-write off resulting from a casualty event |
2.3 |
|
|
— |
|
Stock-based incentive compensation expense |
2.5 |
|
|
2.8 |
|
Deferred income taxes |
(1.2 |
) |
|
(8.0 |
) |
Other items to reconcile net income to cash provided by operating activities |
0.7 |
|
|
(2.1 |
) |
Changes in working capital and other assets and liabilities |
10.5 |
|
|
(26.8 |
) |
|
64.0 |
|
|
49.7 |
|
Cash used for investing activities: |
|
|
|
||
Capital expenditures |
(18.7 |
) |
|
(15.6 |
) |
Real estate development investments |
(7.8 |
) |
|
(3.1 |
) |
Purchase of timberlands |
(8.7 |
) |
|
(2.8 |
) |
Other |
3.0 |
|
|
2.6 |
|
|
(32.2 |
) |
|
(18.9 |
) |
Cash used for financing activities: |
|
|
|
||
Net decrease in debt |
— |
|
|
(122.9 |
) |
Dividends paid |
(42.1 |
) |
|
(39.4 |
) |
Distributions to noncontrolling interests in the operating partnership |
(0.9 |
) |
|
(0.9 |
) |
Proceeds from the issuance of common shares under incentive stock plan |
— |
|
|
0.6 |
|
Proceeds from the issuance of common shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs |
— |
|
|
30.9 |
|
Distributions to noncontrolling interests in consolidated affiliates |
— |
|
|
(2.7 |
) |
Other |
(0.1 |
) |
|
(0.3 |
) |
|
(43.1 |
) |
|
(134.7 |
) |
Effect of exchange rate changes on cash and restricted cash |
(0.4 |
) |
|
0.6 |
|
Cash, cash equivalents and restricted cash: |
|
|
|
||
Change in cash, cash equivalents and restricted cash |
(11.7 |
) |
|
(103.3 |
) |
Balance, beginning of year |
115.4 |
|
|
369.1 |
|
Balance, end of period |
|
|
|
|
|
D |
RAYONIER INC. AND SUBSIDIARIES BUSINESS SEGMENT SALES, PRO FORMA SALES, OPERATING INCOME, PRO FORMA OPERATING INCOME AND ADJUSTED EBITDA March 31, 2023 (unaudited) (millions of dollars) |
||||||||
|
Three Months Ended |
|||||||
|
March 31, |
|
December 31, |
|
March 31, |
|||
|
2023 |
|
2022 |
|
2022 |
|||
Sales |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
34.4 |
|
|
42.4 |
|
|
46.3 |
|
New Zealand Timber |
44.1 |
|
|
71.4 |
|
|
51.4 |
|
Real Estate |
16.3 |
|
|
57.0 |
|
|
34.2 |
|
Trading |
12.6 |
|
|
18.2 |
|
|
13.4 |
|
Intersegment Eliminations |
(0.1 |
) |
|
(0.2 |
) |
|
(0.1 |
) |
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Pro forma sales (a) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
34.4 |
|
|
42.4 |
|
|
46.3 |
|
New Zealand Timber |
44.1 |
|
|
71.4 |
|
|
51.4 |
|
Real Estate |
16.3 |
|
|
26.5 |
|
|
34.2 |
|
Trading |
12.6 |
|
|
18.2 |
|
|
13.4 |
|
Intersegment Eliminations |
(0.1 |
) |
|
(0.2 |
) |
|
(0.1 |
) |
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating income (loss) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
(3.5 |
) |
|
3.5 |
|
|
6.6 |
|
New Zealand Timber |
(0.7 |
) |
|
8.0 |
|
|
5.4 |
|
Real Estate |
0.9 |
|
|
21.5 |
|
|
10.2 |
|
Trading |
0.3 |
|
|
0.3 |
|
|
0.4 |
|
Corporate and Other |
(8.6 |
) |
|
(8.9 |
) |
|
(7.6 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Pro forma operating income (loss) (a) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
(3.5 |
) |
|
3.1 |
|
|
6.6 |
|
New Zealand Timber |
1.6 |
|
|
8.0 |
|
|
5.4 |
|
Real Estate |
0.9 |
|
|
4.9 |
|
|
10.2 |
|
Trading |
0.3 |
|
|
0.3 |
|
|
0.4 |
|
Corporate and Other |
(8.6 |
) |
|
(8.9 |
) |
|
(7.6 |
) |
Pro forma operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA (a) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
7.1 |
|
|
15.5 |
|
|
21.5 |
|
New Zealand Timber |
6.1 |
|
|
13.7 |
|
|
10.4 |
|
Real Estate |
6.6 |
|
|
14.2 |
|
|
24.7 |
|
Trading |
0.3 |
|
|
0.3 |
|
|
0.4 |
|
Corporate and Other |
(8.2 |
) |
|
(8.6 |
) |
|
(7.2 |
) |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
(a) |
Pro forma sales, Pro forma operating income (loss) and Adjusted EBITDA are non-GAAP measures. See Schedule F for definitions and reconciliations. |
E |
RAYONIER INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES March 31, 2023 (unaudited) (millions of dollars, except per share information) |
||||||
LIQUIDITY MEASURES: |
|
|
|
|
||
|
|
Three Months Ended |
||||
|
|
March 31, |
|
March 31, |
||
|
|
2023 |
|
2022 |
||
Cash Provided by Operating Activities |
|
|
|
|
|
|
Working capital and other balance sheet changes |
|
(15.3 |
) |
|
30.4 |
|
Capital expenditures (a) |
|
(18.7 |
) |
|
(15.6 |
) |
Cash Available for Distribution (b) |
|
|
|
|
|
|
|
|
|
|
|
||
Net Income |
|
|
|
|
|
|
Interest, net and miscellaneous income |
|
11.2 |
|
|
8.2 |
|
Income tax expense |
|
1.1 |
|
|
5.5 |
|
Depreciation, depletion and amortization |
|
37.6 |
|
|
47.4 |
|
Non-cash cost of land and improved development |
|
4.2 |
|
|
5.4 |
|
Non-operating (income) expense (c) |
|
(9.1 |
) |
|
0.6 |
|
Timber write-off resulting from a casualty event (d) |
|
2.3 |
|
|
— |
|
Adjusted EBITDA (e) |
|
|
|
|
|
|
Cash interest paid (f) |
|
(3.8 |
) |
|
(3.9 |
) |
Cash taxes paid |
|
(2.2 |
) |
|
(14.0 |
) |
Capital expenditures (a) |
|
(18.7 |
) |
|
(15.6 |
) |
Cash Available for Distribution (b) |
|
|
|
|
|
|
|
|
|
|
|
||
Cash Available for Distribution (b) |
|
|
|
|
|
|
Real estate development investments |
|
(7.8 |
) |
|
(3.1 |
) |
Cash Available for Distribution after real estate development investments |
|
|
|
|
|
|
PRO FORMA SALES (g): |
|||||||||||||||||||||
Three Months Ended |
|
Southern
|
|
Pacific
|
|
New
|
|
Real
|
|
Trading |
|
Intersegment
|
|
Total |
|||||||
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Large Dispositions (h) |
|
— |
|
— |
|
— |
|
(30.5 |
) |
|
— |
|
— |
|
|
(30.5 |
) |
||||
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
PRO FORMA NET INCOME (i): |
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
||||||||||||
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
||||||
Net Income Attributable to Rayonier Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net recovery on legal settlement |
|
(9.1 |
) |
|
(0.06 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
||
Timber write-off and adjustments resulting from casualty events (d) |
|
2.3 |
|
|
0.02 |
|
|
(0.4 |
) |
|
— |
|
|
— |
|
— |
||
Large Dispositions (h) |
|
— |
|
|
— |
|
|
(16.6 |
) |
|
(0.11 |
) |
|
— |
|
— |
||
Pro forma net income adjustments attributable to noncontrolling interests (j) |
|
(0.4 |
) |
|
(0.01 |
) |
|
0.4 |
|
|
— |
|
|
— |
|
— |
||
Pro Forma Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRO FORMA OPERATING INCOME (LOSS) AND ADJUSTED EBITDA (k) (e): |
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Three Months Ended |
|
Southern
|
|
Pacific
|
|
New
|
|
Real
|
|
Trading |
|
Corporate
|
|
Total |
|||||||
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
|
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
||
Timber write-off resulting from a casualty event (d) |
|
— |
|
— |
|
|
2.3 |
|
|
— |
|
|
— |
|
— |
|
|
2.3 |
|
||
Pro forma operating income (loss) |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
Depreciation, depletion and amortization |
|
20.6 |
|
10.6 |
|
|
4.5 |
|
|
1.5 |
|
|
— |
|
0.4 |
|
|
37.6 |
|
||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
|
4.2 |
|
|
— |
|
— |
|
|
4.2 |
|
||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
Adjustment to prior period timber write-off (d) |
|
— |
|
(0.4 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
(0.4 |
) |
||
Large Dispositions (h) |
|
— |
|
— |
|
|
— |
|
|
(16.6 |
) |
|
— |
|
— |
|
|
(16.6 |
) |
||
Pro forma operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
Depreciation, depletion and amortization |
|
13.5 |
|
12.4 |
|
|
5.7 |
|
|
1.2 |
|
|
— |
|
0.3 |
|
|
33.1 |
|
||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
|
8.1 |
|
|
— |
|
— |
|
|
8.1 |
|
||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
Depreciation, depletion and amortization |
|
18.1 |
|
14.9 |
|
|
5.0 |
|
|
9.1 |
|
|
— |
|
0.3 |
|
|
47.4 |
|
||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
|
5.4 |
|
|
— |
|
— |
|
|
5.4 |
|
||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
(a) |
“Capital expenditures” exclude timberland acquisitions of |
(b) |
“Cash Available for Distribution” (CAD) is defined as cash provided by operating activities adjusted for capital spending (excluding timberland acquisitions and real estate development investments) and working capital and other balance sheet changes. CAD is a non-GAAP measure of cash generated during a period that is available for common stock dividends, distributions to operating partnership unitholders, distributions to noncontrolling interests, repurchase of the Company's common shares, debt reduction, timberland acquisitions and real estate development investments. CAD is not necessarily indicative of the CAD that may be generated in future periods. |
(c) |
The three months ended March 31, 2023 includes a |
(d) |
“Timber write-offs and adjustments resulting from casualty events” includes the write-off and adjustments of merchantable and pre-merchantable timber volume damaged by casualty events that cannot be salvaged. |
(e) |
“Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating (income) expense, timber write-offs resulting from casualty events and Large Dispositions. Adjusted EBITDA is a non-GAAP measure that management uses to make strategic decisions about the business and that investors can use to evaluate the operational performance of the assets under management. It excludes specific items that management believes are not indicative of the Company’s ongoing operating results. |
(f) |
“Cash interest paid” is presented net of patronage refunds received of |
(g) |
“Pro forma revenue (sales)” is defined as revenue (sales) adjusted for Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because it excludes specific items that are not indicative of the Company’s ongoing operating results. |
(h) |
“Large Dispositions” are defined as transactions involving the sale of timberland that exceed |
(i) |
“Pro forma net income” is defined as net income attributable to Rayonier Inc. adjusted for its proportionate share of the net recovery associated with a legal settlement, timber write-offs resulting from casualty events and Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because it excludes specific items that are not indicative of the Company’s ongoing operating results. |
(j) |
“Pro forma net income adjustments attributable to noncontrolling interests” are the proportionate share of pro forma items that are attributable to noncontrolling interests. |
(k) |
“Pro forma operating income (loss)” is defined as operating income (loss) adjusted for timber write-offs resulting from casualty events and Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because it excludes specific items that are not indicative of the Company’s ongoing operating results. |
F |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230502006275/en/
Investors/Media
Collin Mings
904-357-9100
investorrelations@rayonier.com
Source: Rayonier Inc.