Rayonier Reports First Quarter 2024 Results
Rayonier Inc. (NYSE:RYN) reported first quarter net income of $1.4 million on revenues of $168.1 million. Pro forma net income was $7.0 million. Operating income was $16.2 million with Adjusted EBITDA of $56.2 million. Cash provided by operations was $52.3 million with cash available for distribution of $36.8 million. The company is on track to achieve its full-year Adjusted EBITDA guidance and $1 billion disposition target.
Rayonier achieved total Adjusted EBITDA of $56.2 million, a 3% increase versus the prior year period.
Adjusted EBITDA in the Southern Timber segment increased by 5% due to a 6% increase in harvest volumes.
Adjusted EBITDA in the New Zealand Timber segment improved by 88% driven by higher carbon credit sales and favorable foreign exchange impacts.
The company is actively evaluating large-scale transactions to enhance shareholder value, expecting significant uptick in transaction volume and operating results in the second quarter.
Adjusted EBITDA in the Pacific Northwest Timber segment declined by 34% due to lower harvest volumes and delivered log prices.
Operating loss in the Real Estate segment was $0.1 million below the prior year quarter, with transaction activity at the start of the year.
Overall, cash available for distribution increased, but potential impacts of asset sales as part of the $1 billion disposition target were excluded from the full-year 2024 financial guidance.
Insights
Analyzing Rayonier's first-quarter financials for 2024, we observe a mixed performance with a decline in net income from $8.3 million to $1.4 million year-over-year, albeit revenues dipped modestly from $179.1 million to $168.1 million. The modest revenue decrease is not alarming when viewed in the context of the forest products industry, which can fluctuate due to many external factors such as weather, commodity prices and demand cycles. The net income drop, however, warrants a closer examination.
Pro forma net income, which adjusts for certain non-recurring items, presents a more positive outcome, increasing from $1.1 million to $7.0 million. This suggests that despite the lower overall net income, operational efficiency or the management of extraordinary items has improved year-over-year. It's important to note the legal settlement costs and a pension settlement charge that affected earnings. These are exceptional items and do not reflect ongoing business performance. The fact that operating income has actually increased, as well as Adjusted EBITDA, points to a potentially healthier underlying business performance.
From a cash flow perspective, Rayonier posted a notable increase in CAD, showcasing strength in the company's ability to generate cash post-operations and investment activities. This is a key metric for investors as it's a proxy for the company's ability to sustain dividends or reinvest in growth opportunities. Short-term, the company's emphasis on asset dispositions could fuel volatility. Long-term, the strategy seems aimed at improving the balance sheet and focusing on core operations, which could be positive for investor sentiment if executed well.
Rayonier’s realignment towards its $1 billion disposition target reflects an industry trend where companies optimize their portfolios for efficiency and profitability. The strategic review of their New Zealand joint venture and potential acreage sales in the U.S. South and Washington state are reminiscent of the sector's inclination towards high-grading their assets. This tactic often finds favor among shareholders when it leads to better ROE (Return on Equity) numbers and a stronger focus on core businesses.
However, the short and long-term implications of these strategies should be monitored. There's a delicate balance between optimizing the portfolio and maintaining a steady stream of revenue and profit from diverse operations. Moreover, as Rayonier navigates through these changes, there's potential for market condition fluctuations to either enhance or undercut their efforts, especially in light of their comments on expected market conditions stabilizing and modestly improving demand.
Investor attention should also be drawn to the performance of different timber segments. The Southern Timber and New Zealand Timber segments are showing promising upticks, with Adjusted EBITDA in the former increasing by 5% and the latter seeing an impressive 88% increase due to factors such as carbon credit sales and foreign exchange impacts. However, the Pacific Northwest Timber segment reported a decline in Adjusted EBITDA by 34%, which may raise concerns about regional market dynamics and pricing pressures.
Environmental factors are often underappreciated, yet they can significantly impact a company like Rayonier with direct exposure to natural resources. The financials reflect operational responses to weather-related supply constraints and a tropical cyclone casualty event, which are critical considerations for long-term sustainability and profitability.
Rayonier’s engagement in carbon credit sales within its New Zealand Timber segment denotes a progressive shift toward capitalizing on environmental services. Such diversification can not only provide additional revenue streams but also enhance the company's environmental credentials, which are increasingly valued by investors. The volatility in carbon credit pricing emphasized in their outlook, however, adds an element of unpredictability to future earnings.
Moreover, Rayonier's strategic dispositions and a potential pullback from their New Zealand joint venture suggest a reshaping of their environmental footprint and operational focus. This reflects a broader industry pattern where companies adjust their land holdings to adapt to environmental policies, market demands and sustainability practices, which in turn could affect long-term investor returns.
-
First quarter net income attributable to Rayonier of
$1.4 million $0.01 $168.1 million -
First quarter pro forma net income of
$7.0 million $0.05 -
First quarter operating income of
$16.2 million $56.2 million -
First quarter cash provided by operations of
$52.3 million $36.8 million
WILDLIGHT, Fla.--(BUSINESS WIRE)--
Rayonier Inc. (NYSE:RYN) today reported first quarter net income attributable to Rayonier of
The first quarter results included
The following table summarizes the current quarter and comparable prior year period results:
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Three Months Ended |
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(millions of dollars, except earnings per share (EPS)) |
March 31, 2024 |
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March 31, 2023 |
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$ |
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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 cost (recovery) on legal settlements1 |
1.3 |
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0.01 |
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(9.1 |
) |
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(0.06 |
) |
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Pension settlement charge, net of tax2 |
4.5 |
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0.03 |
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— |
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— |
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Timber write-offs resulting from casualty events5 |
— |
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— |
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2.3 |
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0.02 |
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Pro forma net income adjustments attributable to noncontrolling interests3 |
(0.1 |
) |
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— |
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(0.4 |
) |
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(0.01 |
) |
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Pro forma net income4 |
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First quarter operating income was
The following table summarizes operating income (loss), pro forma operating income (loss),4 and Adjusted EBITDA4 for the current quarter and comparable prior year period:
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Three Months Ended March 31, |
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Operating Income (Loss) |
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Pro forma Operating Income (Loss)4 |
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Adjusted EBITDA4 |
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(millions of dollars) |
2024 |
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2023 |
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2024 |
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2023 |
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2024 |
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2023 |
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Southern Timber |
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Pacific Northwest Timber |
(4.4 |
) |
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(3.5 |
) |
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(4.4 |
) |
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(3.5 |
) |
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4.7 |
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7.1 |
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New Zealand Timber |
7.4 |
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(0.7 |
) |
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7.4 |
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1.6 |
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11.4 |
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6.1 |
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Real Estate |
(0.1 |
) |
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0.9 |
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(0.1 |
) |
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0.9 |
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4.6 |
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6.6 |
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Trading |
— |
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0.3 |
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— |
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0.3 |
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— |
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0.3 |
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Corporate and Other |
(9.8 |
) |
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(8.6 |
) |
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(9.8 |
) |
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(8.6 |
) |
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(9.3 |
) |
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(8.2 |
) |
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Total |
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Cash provided by operating activities was
“Overall, we delivered modestly improved first quarter results relative to the prior year quarter, which were in-line with our expectations at the start of the year,” said Mark McHugh, President and CEO. “We achieved total Adjusted EBITDA of
“In our Southern Timber segment, Adjusted EBITDA increased
“In our Real Estate segment, Adjusted EBITDA was
Southern Timber
First quarter sales of
First quarter Adjusted EBITDA4 of
Pacific Northwest Timber
First quarter sales of
First quarter Adjusted EBITDA4 of
New Zealand Timber
First quarter sales of
First quarter Adjusted EBITDA4 of
Real Estate
First quarter sales of
Improved Development sales of
Rural sales of
Timberland & Non-Strategic sales of
First quarter Adjusted EBITDA4 of
Trading
First quarter sales of
Other Items
First quarter corporate and other operating expenses of
First quarter interest expense of
First quarter net income tax benefit of
Update on Initiatives to Enhance Shareholder Value
We are continuing to make progress toward our
Outlook
“Following first quarter results that were largely in line with our expectations, we believe we are on track to achieve our prior full-year Adjusted EBITDA guidance,” added McHugh. “As indicated at the beginning of the year, our full-year 2024 financial guidance excludes the potential impact of any additional asset sales as part of the
“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. We expect that pine stumpage realizations will decrease modestly over the remainder of the year due to a less favorable geographic mix and a relatively higher proportion of thinning volume. Further, we continue to expect higher non-timber income for full-year 2024 relative to full-year 2023 driven by growth in our land-based solutions business.”
“In our Pacific Northwest Timber segment, we remain on track to achieve our full-year volume guidance as we expect harvest volumes to increase during the second half of the year. We believe that market conditions have generally stabilized, and we expect that end-market demand will improve modestly over the course of the year. We further expect weighted-average delivered log prices will increase modestly into the second half of the year as mill inventories continue to normalize.”
“In our New Zealand Timber segment, we are on track to achieve our full-year volume guidance as we anticipate higher quarterly harvest volumes for the remainder of the year. We expect weighted-average log prices to decline modestly in the near term before rebounding in the second half of the year due to lower expected log supply into
“In our Real Estate segment, we remain encouraged by the strong interest in our development projects and rural properties. Overall, there continues to be healthy demand for HBU properties and timberland assets despite the higher interest rate environment. Consistent with our prior guidance, we expect a significant uptick in transaction volume and operating results in the second quarter.”
Conference Call
A conference call and live audio webcast will be held on Thursday, May 2, 2024 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 Saturday, June 1, 2024, by dialing 800-813-5525 (domestic) or 203-369-3346 (international), passcode: 4071.
Complimentary copies of Rayonier press releases and other financial documents are also available by calling (904) 357-9100.
1"Net cost (recovery) on legal settlements" reflects the net loss (gain) from litigation regarding insurance claims. |
2"Pension settlement charge, net of tax" reflects the net loss recognized in connection with the termination and settlement of the Company’s defined benefit plan. |
3"Pro forma net income adjustments attributable to noncontrolling interests" are the proportionate share of pro forma items that are attributable to noncontrolling interests. |
4"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. |
5"Timber write-offs resulting from casualty events" includes the write-off of merchantable and pre-merchantable timber volume damaged by casualty events that cannot be salvaged. |
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 geopolitical tensions, 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, 2024 (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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2024 |
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2023 |
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2023 |
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SALES |
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Costs and Expenses |
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Cost of sales |
(133.2 |
) |
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(299.4 |
) |
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(149.2 |
) |
Selling and general expenses |
(19.0 |
) |
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(20.1 |
) |
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(16.8 |
) |
Other operating income (expense), net |
0.3 |
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(2.7 |
) |
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(2.5 |
) |
OPERATING INCOME |
16.2 |
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145.2 |
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10.6 |
|
Interest expense, net |
(9.7 |
) |
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(11.6 |
) |
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(11.7 |
) |
Interest and other miscellaneous (expense) income, net |
(5.0 |
) |
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(1.0 |
) |
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9.6 |
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INCOME BEFORE INCOME TAXES |
1.5 |
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132.6 |
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8.5 |
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Income tax benefit (expense) |
0.8 |
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(3.4 |
) |
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(1.1 |
) |
NET INCOME |
2.3 |
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129.2 |
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7.4 |
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Less: Net income attributable to noncontrolling interests in the operating partnership |
— |
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(2.1 |
) |
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(0.2 |
) |
Less: Net (income) loss attributable to noncontrolling interests in consolidated affiliates |
(0.9 |
) |
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(0.2 |
) |
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1.1 |
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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 |
148,567,375 |
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148,296,110 |
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147,377,448 |
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Diluted EPS (b) |
151,376,049 |
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151,173,460 |
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151,079,129 |
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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. |
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(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, 2024, there were 148,649,321 common shares and 2,093,522 Redeemable Operating Partnership Units outstanding. |
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A |
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RAYONIER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2024 (unaudited) (millions of dollars) |
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March 31, |
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December 31, |
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2024 |
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2023 |
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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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10.0 |
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9.9 |
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Other current assets |
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110.0 |
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99.3 |
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Timber and timberlands, net of depletion and amortization |
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2,959.1 |
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3,004.3 |
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Higher and better use timberlands and real estate development investments |
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106.4 |
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105.6 |
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Property, plant and equipment |
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46.1 |
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46.1 |
|
Less - accumulated depreciation |
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(19.6 |
) |
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(19.1 |
) |
Net property, plant and equipment |
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26.5 |
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27.0 |
|
Restricted cash |
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0.7 |
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0.7 |
|
Right-of-use assets |
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90.3 |
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95.5 |
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Other assets |
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106.9 |
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97.6 |
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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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113.8 |
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140.3 |
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Long-term debt |
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1,362.0 |
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1,365.8 |
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Long-term lease liability |
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82.9 |
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87.7 |
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Other non-current liabilities |
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95.9 |
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94.5 |
|
Noncontrolling interests in the operating partnership |
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69.6 |
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81.7 |
|
Total Rayonier Inc. shareholders’ equity |
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1,831.2 |
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1,860.5 |
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Noncontrolling interests in consolidated affiliates |
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14.4 |
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17.1 |
|
Total shareholders’ equity |
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1,845.6 |
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1,877.6 |
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B |
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RAYONIER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY March 31, 2024 (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, 2024 |
148,299,117 |
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Net income |
— |
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— |
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1.4 |
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— |
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0.9 |
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2.3 |
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Dividends ( |
— |
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— |
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(42.8 |
) |
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— |
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— |
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(42.8 |
) |
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Issuance of shares under incentive stock plans |
752 |
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— |
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— |
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— |
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— |
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— |
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Stock-based compensation |
— |
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3.2 |
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— |
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— |
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— |
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3.2 |
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Adjustment of noncontrolling interests in the operating partnership |
— |
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— |
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(0.3 |
) |
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— |
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— |
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(0.3 |
) |
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Other (a) |
349,452 |
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11.4 |
|
— |
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(2.2 |
) |
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(3.6 |
) |
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5.6 |
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Balance, March 31, 2024 |
148,649,321 |
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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 (loss) |
— |
|
— |
|
8.5 |
|
|
— |
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(1.1 |
) |
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7.4 |
|
||
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 |
) |
|
— |
|
|
— |
|
|
(42.2 |
) |
||
Issuance of shares under incentive stock plans |
1,564 |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||
Stock-based compensation |
— |
|
2.5 |
|
— |
|
|
— |
|
|
— |
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|
2.5 |
|
||
Adjustment of noncontrolling interests in the operating partnership |
— |
|
— |
|
(2.4 |
) |
|
— |
|
|
— |
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|
(2.4 |
) |
||
Other (a) |
728,384 |
|
23.8 |
|
— |
|
|
(14.8 |
) |
|
— |
|
|
9.0 |
|
||
Balance, March 31, 2023 |
148,012,979 |
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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, pension and post-retirement benefit plans, 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 loss to noncontrolling interests in the operating partnership. The three months ended March 31, 2024 and March 31, 2023 also includes the redemption of 350,376 and 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, 2024 (unaudited) (millions of dollars) |
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|
Three Months Ended March 31, |
||||
|
2024 |
|
2023 |
||
Cash provided by operating activities: |
|
|
|
||
Net income |
|
|
|
|
|
Depreciation, depletion and amortization |
37.1 |
|
|
37.6 |
|
Non-cash cost of land and improved development |
3.0 |
|
|
4.2 |
|
Timber write-offs resulting from casualty events |
— |
|
|
2.3 |
|
Stock-based incentive compensation expense |
3.2 |
|
|
2.5 |
|
Deferred income taxes |
(1.0 |
) |
|
(1.2 |
) |
Other items to reconcile net income to cash provided by operating activities |
7.5 |
|
|
0.7 |
|
Changes in working capital and other assets and liabilities |
0.2 |
|
|
10.5 |
|
|
52.3 |
|
|
64.0 |
|
Cash used for investing activities: |
|
|
|
||
Capital expenditures |
(18.9 |
) |
|
(18.7 |
) |
Real estate development investments |
(5.5 |
) |
|
(7.8 |
) |
Purchase of timberlands |
— |
|
|
(8.7 |
) |
Other |
0.4 |
|
|
3.0 |
|
|
(24.0 |
) |
|
(32.2 |
) |
Cash used for financing activities: |
|
|
|
||
Dividends paid (a) |
(72.3 |
) |
|
(42.1 |
) |
Distributions to noncontrolling interests in the operating partnership (b) |
(1.1 |
) |
|
(0.9 |
) |
Distributions to noncontrolling interests in consolidated affiliates |
(1.7 |
) |
|
— |
|
Other |
— |
|
|
(0.1 |
) |
|
(75.1 |
) |
|
(43.1 |
) |
Effect of exchange rate changes on cash and restricted cash |
(1.0 |
) |
|
(0.4 |
) |
Cash, cash equivalents and restricted cash: |
|
|
|
||
Change in cash, cash equivalents and restricted cash |
(47.8 |
) |
|
(11.7 |
) |
Balance, beginning of year |
208.4 |
|
|
115.4 |
|
Balance, end of period |
|
|
|
|
|
| (a) |
The three months ended March 31, 2024 includes an additional cash dividend of |
|
| (b) |
The three months ended March 31, 2024 includes an additional cash distribution of |
|
D |
||
RAYONIER INC. AND SUBSIDIARIES BUSINESS SEGMENT SALES, PRO FORMA SALES, OPERATING INCOME, PRO FORMA OPERATING INCOME AND ADJUSTED EBITDA March 31, 2024 (unaudited) (millions of dollars) |
||||||||
|
Three Months Ended |
|||||||
|
March 31, |
|
December 31, |
|
March 31, |
|||
|
2024 |
|
2023 |
|
2023 |
|||
Sales |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
25.2 |
|
|
28.1 |
|
|
34.4 |
|
New Zealand Timber |
45.7 |
|
|
60.0 |
|
|
44.1 |
|
Real Estate |
15.6 |
|
|
310.5 |
|
|
16.3 |
|
Trading |
11.8 |
|
|
8.9 |
|
|
12.6 |
|
Intersegment Eliminations |
(0.1 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Pro forma sales (a) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
25.2 |
|
|
28.1 |
|
|
34.4 |
|
New Zealand Timber |
45.7 |
|
|
60.0 |
|
|
44.1 |
|
Real Estate |
15.6 |
|
|
68.3 |
|
|
16.3 |
|
Trading |
11.8 |
|
|
8.9 |
|
|
12.6 |
|
Intersegment Eliminations |
(0.1 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating income (loss) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
(4.4 |
) |
|
(2.5 |
) |
|
(3.5 |
) |
New Zealand Timber |
7.4 |
|
|
6.8 |
|
|
(0.7 |
) |
Real Estate |
(0.1 |
) |
|
137.9 |
|
|
0.9 |
|
Trading |
— |
|
|
0.1 |
|
|
0.3 |
|
Corporate and Other |
(9.8 |
) |
|
(10.8 |
) |
|
(8.6 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Pro forma operating income (loss) (a) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
(4.4 |
) |
|
(2.5 |
) |
|
(3.5 |
) |
New Zealand Timber |
7.4 |
|
|
6.8 |
|
|
1.6 |
|
Real Estate |
(0.1 |
) |
|
32.8 |
|
|
0.9 |
|
Trading |
— |
|
|
0.1 |
|
|
0.3 |
|
Corporate and Other |
(9.8 |
) |
|
(10.8 |
) |
|
(8.6 |
) |
Pro forma operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA (a) |
|
|
|
|
|
|||
Southern Timber |
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
4.7 |
|
|
6.2 |
|
|
7.1 |
|
New Zealand Timber |
11.4 |
|
|
12.1 |
|
|
6.1 |
|
Real Estate |
4.6 |
|
|
53.5 |
|
|
6.6 |
|
Trading |
— |
|
|
0.1 |
|
|
0.3 |
|
Corporate and Other |
(9.3 |
) |
|
(10.3 |
) |
|
(8.2 |
) |
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, 2024 (unaudited) (millions of dollars, except per share information) |
||||||
LIQUIDITY MEASURES: |
|
|
|
|
||
|
|
Three Months Ended |
||||
|
|
March 31, |
|
March 31, |
||
|
|
2024 |
|
2023 |
||
Cash Provided by Operating Activities |
|
|
|
|
|
|
Working capital and other balance sheet changes |
|
2.1 |
|
|
(5.8 |
) |
Net cost (recovery) on legal settlements (a) |
|
1.3 |
|
|
(9.1 |
) |
Capital expenditures (b) |
|
(18.9 |
) |
|
(18.7 |
) |
Cash Available for Distribution (c) |
|
|
|
|
|
|
|
|
|
|
|
||
Net Income |
|
|
|
|
|
|
Interest, net and miscellaneous income |
|
7.7 |
|
|
11.2 |
|
Income tax (benefit) expense (d) |
|
(0.8 |
) |
|
1.1 |
|
Depreciation, depletion and amortization |
|
37.1 |
|
|
37.6 |
|
Non-cash cost of land and improved development |
|
3.0 |
|
|
4.2 |
|
Non-operating expense (income) (e) |
|
7.0 |
|
|
(9.1 |
) |
Timber write-offs resulting from casualty events (f) |
|
— |
|
|
2.3 |
|
Adjusted EBITDA (g) |
|
|
|
|
|
|
Cash interest received (paid), net (h) |
|
1.3 |
|
|
(3.4 |
) |
Cash taxes paid |
|
(1.8 |
) |
|
(2.2 |
) |
Capital expenditures (b) |
|
(18.9 |
) |
|
(18.7 |
) |
Cash Available for Distribution (c) |
|
|
|
|
|
|
|
|
|
|
|
||
Cash Available for Distribution (c) |
|
|
|
|
|
|
Real estate development investments |
|
(5.5 |
) |
|
(7.8 |
) |
Cash Available for Distribution after real estate development investments |
|
|
|
|
|
|
PRO FORMA SALES (i): |
|||||||||||||||||||||
Three Months Ended |
|
Southern
|
|
Pacific
|
|
New
|
|
Real
|
|
Trading |
|
Intersegment
|
|
Total |
|||||||
March 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Large Dispositions (j) |
|
— |
|
— |
|
— |
|
(242.2 |
) |
|
— |
|
— |
|
|
(242.2 |
) |
||||
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Pro forma sales |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
PRO FORMA NET INCOME (k): |
||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||
|
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
||||||||||||
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
||||||
Net Income Attributable to Rayonier Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Dispositions (j) |
|
— |
|
|
— |
|
(105.1 |
) |
|
(0.70 |
) |
|
— |
|
|
— |
|
|
Net cost (recovery) on legal settlements (a) |
|
1.3 |
|
|
0.01 |
|
(0.2 |
) |
|
— |
|
|
(9.1 |
) |
|
(0.06 |
) |
|
Pension settlement charges, net of tax (l) |
|
4.5 |
|
|
0.03 |
|
2.0 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
Timber write-offs resulting from casualty events (f) |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
2.3 |
|
|
0.02 |
|
|
Pro forma net income adjustments attributable to noncontrolling interests (m) |
|
(0.1 |
) |
|
— |
|
1.7 |
|
|
— |
|
|
(0.4 |
) |
|
(0.01 |
) |
|
Pro Forma Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRO FORMA OPERATING INCOME (LOSS) AND ADJUSTED EBITDA (n) (g): |
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Three Months Ended |
|
Southern
|
|
Pacific
|
|
New
|
|
Real
|
|
Trading |
|
Corporate
|
|
Total |
|||||||
March 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
|
|
|
( |
) |
|
|
|
|
( |
) |
|
— |
|
( |
) |
|
|
|
||
Depreciation, depletion and amortization |
|
21.8 |
|
9.1 |
|
|
4.0 |
|
|
1.7 |
|
|
— |
|
0.4 |
|
|
37.1 |
|
||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
|
3.0 |
|
|
— |
|
— |
|
|
3.0 |
|
||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
( |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
Large Dispositions (j) |
|
— |
|
— |
|
|
— |
|
|
(105.1 |
) |
|
— |
|
— |
|
|
(105.1 |
) |
||
Pro forma operating income (loss) |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
Depreciation, depletion and amortization |
|
18.3 |
|
8.7 |
|
|
5.3 |
|
|
11.1 |
|
|
— |
|
0.5 |
|
|
44.0 |
|
||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
|
9.6 |
|
|
— |
|
— |
|
|
9.6 |
|
||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
|
|
|
( |
) |
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
||
Timber write-offs resulting from casualty events (f) |
|
— |
|
— |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
| (a) | “Net cost (recovery) on legal settlements” reflects the net loss (gain) from litigation regarding insurance claims. |
|
| (b) |
“Capital expenditures” exclude timberland acquisitions of |
|
| (c) | “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. |
|
| (d) |
The three months ended March 31, 2024 includes a |
|
| (e) |
The three months ended March 31, 2024 includes |
|
| (f) | “Timber write-offs resulting from casualty events” includes the write-off of merchantable and pre-merchantable timber volume damaged by casualty events that cannot be salvaged. |
|
| (g) | “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. |
|
| (h) |
“Cash interest received (paid), net” is presented net of patronage refunds received of |
|
| (i) | “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. |
|
| (j) |
“Large Dispositions” are defined as transactions involving the sale of productive timberland assets that exceed |
|
| (k) | “Pro forma net income” is defined as net income attributable to Rayonier Inc. adjusted for its proportionate share of the net costs (recoveries) associated with legal settlements, timber write-offs resulting from casualty events, pension settlement charges 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. |
|
| (l) | “Pension settlement charges, net of tax" reflects the net loss recognized in connection with the termination and settlement of the Company’s defined benefit plan. |
|
| (m) | “Pro forma net income adjustments attributable to noncontrolling interests” are the proportionate share of pro forma items that are attributable to noncontrolling interests. |
|
| (n) | “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/20240430565116/en/
Investors/Media
Collin Mings
904-357-9100
investorrelations@rayonier.com
Source: Rayonier Inc.
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