22 slides from Rayonier Inc. Reit's earnings presentation, Oct 25, 2022
Slide 1: Q3 2022 Earnings
Q3 2022 EARNINGS October 25, 2022
Slide 2: Forward-Looking Statements & Non-GAAP Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenu
Slide 3: Key Highlights Q3 2022
Record annual Total Adjusted EBITDDA of $653 million far exceeded 2020’s record financial KEY HIGHLIGHTS performance. We executed on our disciplined capital allocation strategy and are well positioned Q3 2022 to continue to drive shareholder value with our strong liquidity. STRATEGY PERFORMANCE CAPI
Slide 4: CatchMark Merger
C AT C H M A R K M E R G E R We expect to achieve CAD synergies of $21 million versus the $16 million CAD SYNERGIES target we communicated May 31, 2022. $21.0 TARGET SYNERGY ($ MILLIONS) INITIAL CURRENT ACHIEVED COMPLETION Insource Timberland Management $ 3.0 $ 3.0 $ - Q1 2023 Reduce SG&A $ 9.5 $ 9.
Slide 5: Consolidated Results
Lower Q3 2022 Total Adjusted EBITDDA of $101.1 million reflects C O N S O L I D AT E D a decline in lumber and indexed sawlog prices, partially offset by R E S U LT S seasonally higher harvest volumes. Total Adjusted EBITDDA – Q2 to Q3 2022 Variance Key Consolidated Highlights: Total Adjusted EBITDD
Slide 6: Timberlands Results
Timberlands’ Adjusted EBITDDA of $64.5 million reflects seasonally T I M B E R L A N D S R E S U LT S higher harvest volumes, including a quarterly record for southern harvest, partially offset by lower indexed Idaho sawlog prices. Timberlands Adjusted EBITDDA – Q2 to Q3 2022 Variance Key Timberland
Slide 7: Northern Region
T I M B E R L A N D S R E S U LT S N O RT H E R N R E G I O N Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $280 700 $60 40 Volume: Tons (thousands) Volume: Tons (thousands) $240 600 $50 35 $200 459 500 $52 30 Price: $ / Ton $40 Price: $ / Ton 25 $160 $171 400 $30 20 $120 3
Slide 8: Southern Region
T I M B E R L A N D S R E S U LT S SOUTHERN REGION Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $48 700 $33 $50 $35 600 613 540 Volume: Tons (thousands) Volume: Tons (thousands) 600 $30 500 $40 500 $25 400 Price: $ / Ton Price $ / Ton $30 400 $20 300 $20 300 $15 200 200 $1
Slide 9: Wood Products Results
WOOD PRODUCTS Lumber prices declined from peak levels in the first half of the year, but remain above long-term averages. R E S U LT S Wood Products Adjusted EBITDDA – Q2 to Q3 2022 Variance Lumber Key Consolidated Highlights: Wood Products Adjusted EBITDDA decreased $75.9 million from Q2 2022 Avera
Slide 10: Lumber Pricing and Shipments
WOOD PRODUCTS R E S U LT S Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 $200 $572 350 $1,000 265 300 $150 Shipments (MMBF) $800 Price: $ / MBF 250 $600 200 $100 $400 150 100 $50 $31.3 $200 50 $- 0 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 11: Real Estate Results
Real Estate Adjusted EBITDDA declined as lower rural land sales were R E A L E S TAT E R E S U LT S partially offset by an increase in commercial land sales in our Chenal Valley master planned community. Real Estate Adjusted EBITDDA – Q2 to Q3 2022 Variance Key Real Estate Highlights: Real Estate Ad
Slide 12: Rural Acres Sold and Avg. Price
R E A L E S TAT E R E S U LT S Rural Acres Sold and Avg. Price Residential Lots Sold and Avg. Price $140,000 $78,344 100 $4,500 20,000 + $3,811 90 $4,000 18,000 $120,000 16,000 80 Average Price: $ / Acre $3,500 Average Price: $ / Lot Residential Lots Sold 14,000 $100,000 70 $3,000 12,000 60 Acres So
Slide 13: Favorable Capital Structure
After the completion of the CatchMark merger we continue to maintain a strong FAV O R A B L E C A P I TA L balance sheet and $773 million of liquidity to continue growing shareholder STRUCTURE value. We expect to distribute a special dividend to shareholders in Q4 2022. Debt Maturities $190 $185 $20
Slide 14: Outlook
We anticipate Q4 2022 Total Adjusted EBITDDA will be lower than Q3 OUTLOOK 2022 due primarily to a decline in lumber and indexed sawlog prices. TIMBERLANDS Q4 2022 FY 2022 Harvest Volume 1.8-1.9 million tons ~6.5 million tons Geographic harvest ~75% of volume in South ~75% of volume in South Sawlog
Slide 15: Appendix
APPENDIX Q3 2022 ‘A\PoilatchDeltic
Slide 16: Total Company Summary
TOTAL COMPANY in millions except per-share amounts – unaudited SUMMARY 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Operating income: Timberlands $ 56.5 $ 66.7 $ 64.1 $ 30.2 $ 217.5 $ 64.2 $ 46.4 $ 47.5 $ 158.1 Wood Products 119.3 197.6 16.6 29.7 363.2 143.1 99.0 21.2 263.3 Real Estate 7.5 4.8 2.2 5.2
Slide 17: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non – GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Timberlands Northern Timberlands operating income $ 52.2 $ 64.4 $ 57.2 $ 23.7 $ 197.5 $ 56.7 $ 41.0 $ 42.3 $ 140.0 Depreciation, depletion and amortization 2.0 1.9 2.2 1.8
Slide 18: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non – GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Total Adjusted EBITDDA Net Income (GAAP) $ 131.1 $ 187.9 $ 65.7 $ 39.2 $ 423.9 $ 163.9 $ 120.2 $ 46.0 $ 330.1 Interest expense, net 3.6 8.2 8.6 8.9 29.3 2.9 7.4 8.3 18.6 Income t
Slide 19: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Timberlands Fee Volumes (tons) Northern Region Sawlog 427,255 353,792 462,492 348,935 1,592,474 385,290 276,347 459,128 1,120,765 Pulpwood 13,884 6,813 4,039 8,398 33,134 8,259 11,383 11,197 30,839 Total 441,139 360,605 466
Slide 20: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Wood Products Lumber shipments (MBF) 258,069 260,311 264,855 243,054 1,026,289 233,188 254,225 264,748 752,161 Lumber sales prices ($ per MBF) $ 890 $ 1,185 $ 533 $ 563 $ 795 $ 1,075 $ 865 $ 572 $ 827 Real
Slide 21: Definitions
D E F I N I TI O NS Total Adjusted EBITDDA is a non-GAAP measure and is calculated as net income adjusted for interest expense, income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, pension settlement charge,
Slide 22: Q3 2022 Earnings
Q3 2022 JERALD W. RICHARDS EARNINGS Vice President and Chief Financial Officer October 25, 2022 509-835-1521 PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com