Rayonier Reports Second Quarter 2023 Results
- Rayonier's second quarter net income of $19.0 million is a positive sign, although it is lower than the prior year quarter. The company's Adjusted EBITDA of $69.2 million shows a decrease from the prior year period.
- Rayonier's net income has decreased from the prior year quarter, which could negatively affect the stock price. The decrease in Adjusted EBITDA also indicates a decline in the company's financial performance.
-
Second quarter net income attributable to Rayonier of
$19.0 million $0.13 $208.9 million -
Second quarter pro forma net income of
$7.8 million $0.05 -
Second quarter operating income of
$20.1 million $20.1 million $69.2 million -
Year-to-date cash provided by operations of
$126.3 million $62.7 million
WILDLIGHT, Fla.--(BUSINESS WIRE)--
Rayonier Inc. (NYSE:RYN) today reported second quarter net income attributable to Rayonier of
The second quarter results included an
The following table summarizes the current quarter and comparable prior year period results:
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Three Months Ended |
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(millions of dollars, except earnings per share (EPS)) |
June 30, 2023 |
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June 30, 2022 |
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$ |
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EPS |
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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 |
(11.4 |
) |
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(0.08 |
) |
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— |
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— |
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Pro forma net income adjustments attributable to noncontrolling interests1 |
0.2 |
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— |
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— |
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— |
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Pro forma net income2 |
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Second quarter operating income was
The following table summarizes operating income (loss), pro forma operating income (loss),2 and Adjusted EBITDA2 for the current quarter and comparable prior year period:
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Three Months Ended June 30, |
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Operating Income (Loss) |
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Pro forma Operating Income (Loss)2 |
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Adjusted EBITDA2 |
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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 |
(2.4 |
) |
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2.9 |
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(2.4 |
) |
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2.9 |
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6.9 |
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14.3 |
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New Zealand Timber |
2.4 |
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8.0 |
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2.4 |
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8.0 |
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8.3 |
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14.9 |
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Real Estate |
8.6 |
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11.0 |
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8.6 |
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11.0 |
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20.3 |
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25.4 |
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Trading |
0.1 |
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(0.4 |
) |
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0.1 |
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(0.4 |
) |
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0.1 |
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(0.4 |
) |
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Corporate and Other |
(10.3 |
) |
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(10.1 |
) |
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(10.3 |
) |
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(10.1 |
) |
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(9.9 |
) |
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(9.8 |
) |
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Total |
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Year-to-date cash provided by operating activities was
“While overall market sentiment has improved versus the first quarter of this year, our second quarter results reflect ongoing macroeconomic challenges and weaker end-market demand as compared to the prior year,” said David Nunes, CEO. “The total Adjusted EBITDA generated by our Timber segments collectively declined
“In our Southern Timber segment, Adjusted EBITDA improved by
“In our Pacific Northwest Timber segment, Adjusted EBITDA declined
“In our New Zealand Timber segment, Adjusted EBITDA declined
“Real Estate segment Adjusted EBITDA was
Southern Timber
Second quarter sales of
Second quarter Adjusted EBITDA2 of
Pacific Northwest Timber
Second quarter sales of
Second quarter Adjusted EBITDA2 of
New Zealand Timber
Second quarter sales of
Second quarter Adjusted EBITDA2 of
Real Estate
Second quarter sales of
Improved Development sales of
Rural sales of
Timberland & Non-Strategic sales of
Second quarter Adjusted EBITDA2 of
Trading
Second quarter sales of
Second quarter Adjusted EBITDA2 of
Other Items
Second quarter corporate and other operating expenses of
Second quarter interest expense of
Second quarter interest and other miscellaneous income included an
Second quarter income tax expense of
Outlook
“Based on our first half results and expectations for the remainder of the year, we now anticipate full-year net income attributable to Rayonier of
“In our Southern Timber segment, we now expect full-year harvest volumes of 7.2 to 7.4 million tons as dry weather conditions have contributed to stronger-than-expected production levels. However, we anticipate lower quarterly harvest volumes for the remainder of 2023 compared to the first half of the year. We further expect a modest decline in weighted-average net stumpage realizations during the second half of 2023 compared to the second quarter driven by geographic mix and a seasonal increase in the proportion of thinning volume. We continue to anticipate higher non-timber income for full-year 2023 as compared to full-year 2022, driven by growth in our Nature-Based Solutions businesses. Overall, we expect the Southern Timber segment to generate full-year Adjusted EBITDA of
“In our Pacific Northwest Timber segment, we now expect full-year harvest volumes of 1.4 to 1.5 million tons as we have deferred some planned harvests in response to soft market conditions. We anticipate modestly higher weighted-average delivered log prices in the second half of 2023 compared to the first half based on improved end-market demand and lumber prices. Overall, we now expect the Pacific Northwest Timber segment to generate full-year Adjusted EBITDA of
“In our New Zealand Timber segment, we now expect full-year harvest volumes of 2.3 to 2.5 million tons as we have deferred some planned harvest volume in response to unfavorable market conditions. Over the balance of the year, we anticipate that weighted-average delivered log prices will be modestly lower as compared to the first half of 2023, primarily due to weaker demand in both export and domestic markets as well as increased supply from Cyclone Gabrielle salvage operations. However, we expect that lower port and freight costs will partially offset these headwinds. Further, while we have tempered our full-year expectations for carbon credit sales based on significant market volatility and limited transaction activity in the first half of the year, we expect to be more active in the carbon market in the second half of the year following the recent uptick in NZU pricing in response to governmental action to stabilize the market. Overall, we now expect the New Zealand Timber segment to generate full-year Adjusted EBITDA of
“In our Real Estate segment, the demand for HBU properties and timberland assets has remained remarkably strong despite the higher interest rate environment. We now expect full-year Adjusted EBITDA of
Conference Call
A conference call and live audio webcast will be held on Thursday, August 3, 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, September 3, 2023, by dialing 866-361-4757 (domestic) or 203-369-0183 (international), passcode: 3084.
Complimentary copies of Rayonier press releases and other financial documents are also available by calling (904) 357-9100.
1"Pro forma net income adjustments attributable to noncontrolling interests" are the proportionate share of pro forma items that are attributable to noncontrolling interests. |
2"Pro forma net income," "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 June 30, 2023 (unaudited) (millions of dollars, except per share information) |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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March 31, |
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June 30, |
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June 30, |
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June 30, |
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2023 |
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2023 |
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2022 |
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2023 |
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2022 |
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SALES |
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Costs and Expenses |
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Cost of sales |
(168.4 |
) |
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(149.2 |
) |
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(194.3 |
) |
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(317.6 |
) |
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(355.3 |
) |
Selling and general expenses |
(19.0 |
) |
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(16.8 |
) |
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(17.3 |
) |
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(35.7 |
) |
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(32.1 |
) |
Other operating (expense) income, net |
(1.4 |
) |
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(2.5 |
) |
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0.8 |
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(3.9 |
) |
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(0.2 |
) |
OPERATING INCOME |
20.1 |
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10.6 |
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35.5 |
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30.7 |
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80.8 |
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Interest expense, net |
(12.4 |
) |
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(11.7 |
) |
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(9.1 |
) |
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(24.1 |
) |
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(17.4 |
) |
Interest and other miscellaneous income (expense), net |
11.6 |
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9.6 |
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0.2 |
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21.2 |
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(0.3 |
) |
INCOME BEFORE INCOME TAXES |
19.3 |
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8.5 |
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26.6 |
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27.8 |
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63.1 |
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Income tax expense |
(0.2 |
) |
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(1.1 |
) |
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(1.3 |
) |
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(1.3 |
) |
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(6.8 |
) |
NET INCOME |
19.1 |
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|
7.4 |
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|
25.3 |
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|
26.5 |
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|
56.3 |
|
Less: Net income attributable to noncontrolling interests in the operating partnership |
(0.3 |
) |
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(0.2 |
) |
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(0.6 |
) |
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(0.5 |
) |
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(1.2 |
) |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates |
0.2 |
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1.1 |
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(0.6 |
) |
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1.3 |
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(1.7 |
) |
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 |
148,218,436 |
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|
147,377,448 |
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|
146,257,311 |
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147,800,265 |
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|
145,846,026 |
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Diluted EPS (b) |
150,965,191 |
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|
151,079,129 |
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150,244,379 |
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|
151,028,340 |
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|
149,898,006 |
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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 June 30, 2023, there were 148,268,443 common shares and 2,469,173 Redeemable Operating Partnership Units outstanding. |
A |
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RAYONIER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2023 (unaudited) (millions of dollars) |
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June 30, |
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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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4.2 |
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0.7 |
|
Other current assets |
|
104.6 |
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|
87.3 |
|
Timber and timberlands, net of depletion and amortization |
|
3,175.0 |
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|
3,230.9 |
|
Higher and better use timberlands and real estate development investments |
|
111.8 |
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|
115.1 |
|
Property, plant and equipment |
|
45.1 |
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|
44.7 |
|
Less - accumulated depreciation |
|
(18.6 |
) |
|
(17.5 |
) |
Net property, plant and equipment |
|
26.5 |
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|
27.2 |
|
Restricted cash |
|
5.0 |
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|
1.2 |
|
Right-of-use assets |
|
94.6 |
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97.2 |
|
Other assets |
|
112.0 |
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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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102.8 |
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95.3 |
|
Long-term debt |
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1,512.2 |
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1,514.7 |
|
Long-term lease liability |
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86.5 |
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|
88.8 |
|
Other non-current liabilities |
|
104.4 |
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|
104.1 |
|
Noncontrolling interests in the operating partnership |
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77.5 |
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|
105.8 |
|
Total Rayonier Inc. shareholders’ equity |
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1,825.4 |
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|
1,865.4 |
|
Noncontrolling interests in consolidated affiliates |
|
13.3 |
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|
15.3 |
|
Total shareholders’ equity |
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1,838.7 |
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|
1,880.7 |
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B |
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RAYONIER INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY June 30, 2023 (unaudited) (millions of dollars, except share information) |
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Common Shares |
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Retained Earnings |
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Accumulated Other Comprehensive Income |
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Noncontrolling Interests in Consolidated Affiliates |
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Shareholders’ Equity |
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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 |
— |
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|
— |
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|
8.5 |
|
|
— |
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|
(1.1 |
) |
|
7.4 |
|
Net income attributable to noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
(0.2 |
) |
|
— |
|
|
— |
|
|
(0.2 |
) |
Dividends ( |
— |
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|
— |
|
|
(42.2 |
) |
|
— |
|
|
— |
|
|
(42.2 |
) |
Issuance of shares under incentive stock plans |
1,564 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock-based compensation |
— |
|
|
2.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
2.5 |
|
Adjustment of noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
(2.4 |
) |
|
— |
|
|
— |
|
|
(2.4 |
) |
Other (a) |
728,384 |
|
|
23.8 |
|
|
— |
|
|
(14.8 |
) |
|
— |
|
|
9.0 |
|
Balance, March 31, 2023 |
148,012,979 |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Net income |
— |
|
|
— |
|
|
19.3 |
|
|
— |
|
|
(0.2 |
) |
|
19.1 |
|
Net income attributable to noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
(0.3 |
) |
|
— |
|
|
— |
|
|
(0.3 |
) |
Dividends ( |
— |
|
|
— |
|
|
(42.2 |
) |
|
— |
|
|
— |
|
|
(42.2 |
) |
Issuance of shares under incentive stock plans |
372,149 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Stock-based compensation |
— |
|
|
4.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
4.3 |
|
Adjustment of noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
4.3 |
|
|
— |
|
|
— |
|
|
4.3 |
|
Other (a) |
(116,685 |
) |
|
(3.9 |
) |
|
— |
|
|
3.3 |
|
|
(0.7 |
) |
|
(1.3 |
) |
Balance, June 30, 2023 |
148,268,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
C |
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|
Common Shares |
|
Retained Earnings |
|
Accumulated Other Comprehensive (Loss) Income |
|
Noncontrolling Interests in Consolidated Affiliates |
|
Shareholders’ Equity |
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|
Shares |
|
Amount |
|
|||||||||||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
— |
|
|
— |
|
|
24.7 |
|
|
— |
|
|
0.6 |
|
|
25.3 |
|
Net income attributable to noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
(0.6 |
) |
|
— |
|
|
— |
|
|
(0.6 |
) |
Dividends ( |
— |
|
|
— |
|
|
(42.1 |
) |
|
— |
|
|
— |
|
|
(42.1 |
) |
Issuance of shares under incentive stock plans |
304,887 |
|
|
2.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
2.0 |
|
Stock-based compensation |
— |
|
|
4.4 |
|
|
— |
|
|
— |
|
|
— |
|
|
4.4 |
|
Adjustment of noncontrolling interests in the operating partnership |
— |
|
|
— |
|
|
11.4 |
|
|
— |
|
|
— |
|
|
11.4 |
|
Other (a) |
(90,843 |
) |
|
(4.0 |
) |
|
— |
|
|
(25.4 |
) |
|
(32.2 |
) |
|
(61.6 |
) |
Balance, June 30, 2022 |
146,321,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 six months ended June 30, 2023 and June 30, 2022 also includes the redemption of 739,654 and 3,512 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 June 30, 2023 (unaudited) (millions of dollars) |
|||||
|
Six Months Ended June 30, |
||||
|
2023 |
|
|
2022 |
|
Cash provided by operating activities: |
|
|
|
||
Net income |
|
|
|
|
|
Depreciation, depletion and amortization |
77.3 |
|
|
83.2 |
|
Non-cash cost of land and improved development |
13.6 |
|
|
17.1 |
|
Timber-write off resulting from a casualty event |
2.3 |
|
|
— |
|
Stock-based incentive compensation expense |
6.8 |
|
|
7.2 |
|
Deferred income taxes |
(2.4 |
) |
|
(7.3 |
) |
Other items to reconcile net income to cash provided by operating activities |
(0.4 |
) |
|
(3.8 |
) |
Changes in working capital and other assets and liabilities |
2.6 |
|
|
(4.2 |
) |
|
126.3 |
|
|
148.5 |
|
Cash used for investing activities: |
|
|
|
||
Capital expenditures |
(36.8 |
) |
|
(30.3 |
) |
Real estate development investments |
(14.8 |
) |
|
(6.0 |
) |
Purchase of timberlands |
(9.3 |
) |
|
(3.2 |
) |
Other |
4.4 |
|
|
5.0 |
|
|
(56.5 |
) |
|
(34.5 |
) |
Cash used for financing activities: |
|
|
|
||
Net decrease in debt |
— |
|
|
(124.9 |
) |
Dividends paid |
(85.2 |
) |
|
(81.8 |
) |
Distributions to noncontrolling interests in the operating partnership |
(1.6 |
) |
|
(1.8 |
) |
Proceeds from the issuance of common shares under incentive stock plan |
— |
|
|
2.6 |
|
Proceeds from the issuance of common shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs |
(0.1 |
) |
|
31.9 |
|
Distributions to noncontrolling interests in consolidated affiliates |
— |
|
|
(6.7 |
) |
Other |
(4.1 |
) |
|
(4.2 |
) |
|
(91.0 |
) |
|
(184.9 |
) |
Effect of exchange rate changes on cash and restricted cash |
(0.8 |
) |
|
(2.1 |
) |
Cash, cash equivalents and restricted cash: |
|
|
|
||
Change in cash, cash equivalents and restricted cash |
(22.0 |
) |
|
(73.0 |
) |
Balance, beginning of year |
115.4 |
|
|
369.1 |
|
Balance, end of period |
|
|
|
|
|
D |
|||||
RAYONIER INC. AND SUBSIDIARIES BUSINESS SEGMENT SALES, OPERATING INCOME, PRO FORMA OPERATING INCOME AND ADJUSTED EBITDA June 30, 2023 (unaudited) (millions of dollars) |
||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Sales |
|
|
|
|
|
|
|
|
|
|||||
Southern Timber |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
32.3 |
|
|
34.4 |
|
|
39.2 |
|
|
66.7 |
|
|
85.4 |
|
New Zealand Timber |
60.9 |
|
|
44.1 |
|
|
78.9 |
|
|
105.0 |
|
|
130.3 |
|
Real Estate |
32.0 |
|
|
16.3 |
|
|
34.4 |
|
|
48.3 |
|
|
68.6 |
|
Trading |
15.4 |
|
|
12.6 |
|
|
27.7 |
|
|
28.0 |
|
|
41.1 |
|
Intersegment Eliminations |
(0.1 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.2 |
) |
|
(0.1 |
) |
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|||||
Southern Timber |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
(2.4 |
) |
|
(3.5 |
) |
|
2.9 |
|
|
(5.9 |
) |
|
9.5 |
|
New Zealand Timber |
2.4 |
|
|
(0.7 |
) |
|
8.0 |
|
|
1.7 |
|
|
13.4 |
|
Real Estate |
8.6 |
|
|
0.9 |
|
|
11.0 |
|
|
9.5 |
|
|
21.2 |
|
Trading |
0.1 |
|
|
0.3 |
|
|
(0.4 |
) |
|
0.4 |
|
|
(0.1 |
) |
Corporate and Other |
(10.3 |
) |
|
(8.6 |
) |
|
(10.1 |
) |
|
(18.9 |
) |
|
(17.7 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pro forma operating income (loss) (a) |
|
|
|
|
|
|
|
|
|
|||||
Southern Timber |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
(2.4 |
) |
|
(3.5 |
) |
|
2.9 |
|
|
(5.9 |
) |
|
9.5 |
|
New Zealand Timber |
2.4 |
|
|
1.6 |
|
|
8.0 |
|
|
4.0 |
|
|
13.4 |
|
Real Estate |
8.6 |
|
|
0.9 |
|
|
11.0 |
|
|
9.5 |
|
|
21.2 |
|
Trading |
0.1 |
|
|
0.3 |
|
|
(0.4 |
) |
|
0.4 |
|
|
(0.1 |
) |
Corporate and Other |
(10.3 |
) |
|
(8.6 |
) |
|
(10.1 |
) |
|
(18.9 |
) |
|
(17.7 |
) |
Pro forma operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA (a) |
|
|
|
|
|
|
|
|
|
|||||
Southern Timber |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pacific Northwest Timber |
6.9 |
|
|
7.1 |
|
|
14.3 |
|
|
14.0 |
|
|
35.8 |
|
New Zealand Timber |
8.3 |
|
|
6.1 |
|
|
14.9 |
|
|
14.4 |
|
|
25.3 |
|
Real Estate |
20.3 |
|
|
6.6 |
|
|
25.4 |
|
|
26.9 |
|
|
50.1 |
|
Trading |
0.1 |
|
|
0.3 |
|
|
(0.4 |
) |
|
0.4 |
|
|
(0.1 |
) |
Corporate and Other |
(9.9 |
) |
|
(8.2 |
) |
|
(9.8 |
) |
|
(18.1 |
) |
|
(17.0 |
) |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
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 June 30, 2023 (unaudited) (millions of dollars, except per share information) |
||||||
LIQUIDITY MEASURES: |
|
|
|
|
||
|
|
Six Months Ended |
||||
|
|
June 30, |
|
June 30, |
||
|
|
2023 |
|
|
2022 |
|
Cash Provided by Operating Activities |
|
|
|
|
|
|
Working capital and other balance sheet changes |
|
(26.8 |
) |
|
1.3 |
|
Capital expenditures (a) |
|
(36.8 |
) |
|
(30.3 |
) |
Cash Available for Distribution (b) |
|
|
|
|
|
|
|
|
|
|
|
||
Net Income |
|
|
|
|
|
|
Interest, net and miscellaneous income |
|
23.6 |
|
|
17.1 |
|
Income tax expense |
|
1.3 |
|
|
6.8 |
|
Depreciation, depletion and amortization |
|
77.3 |
|
|
83.2 |
|
Non-cash cost of land and improved development |
|
13.6 |
|
|
17.1 |
|
Non-operating (income) expense (c) |
|
(20.6 |
) |
|
0.6 |
|
Timber write-off resulting from a casualty event (d) |
|
2.3 |
|
|
— |
|
Adjusted EBITDA (e) |
|
|
|
|
|
|
Cash interest paid (f) |
|
(20.7 |
) |
|
(16.9 |
) |
Cash taxes paid |
|
(3.7 |
) |
|
(14.3 |
) |
Capital expenditures (a) |
|
(36.8 |
) |
|
(30.3 |
) |
Cash Available for Distribution (b) |
|
|
|
|
|
|
|
|
|
|
|
||
Cash Available for Distribution (b) |
|
|
|
|
|
|
Real estate development investments |
|
(14.8 |
) |
|
(6.0 |
) |
Cash Available for Distribution after real estate development investments |
|
|
|
|
|
|
| PRO FORMA NET INCOME (g): |
|
|
||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
||||||||||||||||||||
|
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
||||||||||
Net Income Attributable to Rayonier Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net recoveries on legal settlements |
|
(11.4 |
) |
|
(0.08 |
) |
|
(9.1 |
) |
|
(0.06 |
) |
|
— |
|
— |
|
(20.5 |
) |
|
(0.14 |
) |
|
— |
|
— |
||||
Timber write-off resulting from a casualty event (d) |
|
— |
|
|
— |
|
|
2.3 |
|
|
0.02 |
|
|
— |
|
— |
|
2.3 |
|
|
0.02 |
|
|
— |
|
— |
||||
Pro forma net income adjustments attributable to noncontrolling interests (h) |
|
0.2 |
|
|
— |
|
|
(0.4 |
) |
|
(0.01 |
) |
|
— |
|
— |
|
(0.2 |
) |
|
— |
|
|
— |
|
— |
||||
Pro Forma Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
F |
||||||||||||||||||||||||||||||
PRO FORMA OPERATING INCOME (LOSS) AND ADJUSTED EBITDA (i) (e): |
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Three Months Ended |
|
Southern Timber |
|
Pacific Northwest Timber |
|
New Zealand Timber |
|
Real Estate |
|
Trading |
|
Corporate and Other |
|
Total |
|||||||
June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||
Depreciation, depletion and amortization |
|
21.9 |
|
9.2 |
|
|
5.9 |
|
|
2.2 |
|
— |
|
|
0.4 |
|
|
39.7 |
|||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
|
9.4 |
|
— |
|
|
— |
|
|
9.4 |
|||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|||
Depreciation, depletion and amortization |
|
14.7 |
|
11.3 |
|
|
6.9 |
|
|
2.6 |
|
— |
|
|
0.3 |
|
|
35.8 |
|||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
|
11.8 |
|
— |
|
|
— |
|
|
11.8 |
|||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
PRO FORMA OPERATING INCOME (LOSS) AND ADJUSTED EBITDA (i) (e): |
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Six Months Ended |
|
Southern Timber |
|
Pacific Northwest Timber |
|
New Zealand Timber |
|
Real Estate |
|
Trading |
|
Corporate and Other |
|
Total |
|||||||
June 30, 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 |
|
42.5 |
|
19.9 |
|
|
10.4 |
|
3.7 |
|
— |
|
|
0.8 |
|
|
77.3 |
||||
Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
13.6 |
|
— |
|
|
— |
|
|
13.6 |
||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
June 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
|
|
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( |
) |
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( |
) |
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Depreciation, depletion and amortization |
|
32.7 |
|
26.2 |
|
|
11.9 |
|
11.7 |
|
— |
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|
0.6 |
|
|
83.2 |
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Non-cash cost of land and improved development |
|
— |
|
— |
|
|
— |
|
17.1 |
|
— |
|
|
— |
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|
17.1 |
||||
Adjusted EBITDA |
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|
( |
) |
|
( |
) |
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(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 six months ended June 30, 2023 includes |
(d) |
“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. |
(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 net income” is defined as net income attributable to Rayonier Inc. adjusted for its proportionate share of the net recoveries associated with legal settlements and timber write-offs resulting from casualty events. 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) |
“Pro forma net income adjustments attributable to noncontrolling interests” are the proportionate share of pro forma items that are attributable to noncontrolling interests. |
(i) |
“Pro forma operating income (loss)” is defined as operating income (loss) adjusted for timber write-offs resulting from casualty events. 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 |
|
RAYONIER INC. AND SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA GUIDANCE June 30, 2023 (unaudited) (millions of dollars) |
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ADJUSTED EBITDA GUIDANCE (a): |
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Prior 2023 Guidance |
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Revised 2023 Guidance |
|
Year-to-Date
|
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Low |
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High |
|
Low |
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High |
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Net Income to Adjusted EBITDA Reconciliation |
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Net income |
|
|
- |
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|
- |
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|
|
Less: Net (income) loss attributable to noncontrolling interests |
(3.2 |
) |
- |
(3.9 |
) |
|
(0.5 |
) |
|
(1.3 |
) |
|
1.3 |
|
Less: Net income attributable to noncontrolling interests in operating partnership |
(1.1 |
) |
- |
(1.6 |
) |
|
(1.1 |
) |
- |
(1.3 |
) |
|
(0.5 |
) |
Net income attributable to Rayonier Inc. |
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
Add: Timber write-off resulting from a casualty event (b) |
— |
|
- |
— |
|
|
2.3 |
|
- |
2.3 |
|
|
2.3 |
|
Less: Net recoveries associated with legal settlements |
— |
|
- |
— |
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|
(20.5 |
) |
- |
(20.5 |
) |
|
(20.5 |
) |
Add: Pro forma net income adjustments attributable to noncontrolling interests (c) |
— |
|
- |
— |
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|
(0.2 |
) |
- |
(0.2 |
) |
|
(0.2 |
) |
Pro Forma Net Income (d) |
|
|
- |
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- |
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Interest expense, net |
46.7 |
|
- |
47.2 |
|
|
48.5 |
|
- |
49.0 |
|
|
24.1 |
|
Income tax expense |
8.2 |
|
- |
9.3 |
|
|
2.2 |
|
- |
3.6 |
|
|
1.3 |
|
Depreciation, depletion and amortization |
146.5 |
|
- |
157.0 |
|
|
153.0 |
|
- |
161.0 |
|
|
77.3 |
|
Non-cash cost of land and improved development |
25.0 |
|
- |
31.0 |
|
|
26.5 |
|
- |
27.5 |
|
|
13.6 |
|
Non-operating income |
(2.5 |
) |
- |
(3.0 |
) |
|
(1.5 |
) |
- |
(3.0 |
) |
|
(0.6 |
) |
Net income attributable to noncontrolling interests |
4.3 |
|
- |
5.5 |
|
|
1.8 |
|
- |
2.8 |
|
|
(0.6 |
) |
Adjusted EBITDA |
|
|
- |
|
|
|
|
|
- |
|
|
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Diluted Earnings per Share |
|
|
- |
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|
|
- |
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|
Pro forma Diluted Earnings per Share |
|
|
- |
|
|
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|
|
- |
|
|
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|
(a) |
“Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income, 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. |
(b) |
“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. |
(c) |
"Pro forma net income adjustments attributable to noncontrolling interests" are the proportionate share of pro forma items that are attributable to noncontrolling interests. |
(d) |
“Pro forma net income” is defined as net income attributable to Rayonier Inc. adjusted for its proportionate share of the net recoveries associated with legal settlements, 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. |
G |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230801995710/en/
Investors/Media
Collin Mings
904-357-9100
investorrelations@rayonier.com
Source: Rayonier Inc.
FAQ
What is Rayonier's net income for the second quarter?
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