21 slides from Rayonier Inc. Reit's earnings presentation, Jul 28, 2020
Slide 1: Q2 2020 Earnings
Q2 20 20 EARNI NGS J U LY 2 8 , 2 0 2 0
Slide 2: Forward-Looking Statements & Non-GAAP Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES FORWARD-LOOKING STATEMENTS This press release 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 curre
Slide 3: Key Highlights Q2 2020
Our three business segments performed well in a seasonally lighter quarter despite KEY HIGHLIGHTS COVID-related constraints. Our strong liquidity and flexibility will be further enhanced by Q2 2020 our pending Minnesota land sale later this year. STRATEGY PERFORMANCE CAPITAL ALLOCATION Leverage to l
Slide 4: Consolidated Results
Q2 2020 Total Adjusted EBITDDA of $35 million reflects seasonally lower Northern CONSOLIDATED RESULTS harvest volumes, lower lumber shipments and plywood mill curtailment, partially offset by higher lumber prices. Total Adjusted EBITDDA – Q1 2020 to Q2 2020 Variance $47.6 ($9.4) ($2.3) $ MILLIONS $2
Slide 5: Timberlands Results
TIMBERLANDS RESULTS Timberlands Q2 2020 harvest volumes were seasonally lower in the North, and Q2 2020 lower in the South due to customer mill curtailments. Timberlands Adjusted EBITDDA – Q1 2020 to Q2 2020 Variance $ MILLIONS $35.0 ($5.4) ($3.8) ($2.0) $1.8 $25.6 Q1 2020 Harvest Volume Sales Price
Slide 6: Timberlands Results Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Q2 2020 Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $45 60 $140 600 $39 $40 50 Volume: Tons (thousands) $120 500 $35 $101 Volume: Tons (thousands) $100 $30 40 Price: $/Ton 400 $25 31 Price: $/Ton $80 303 30 300 $20 $60 200 $15 20 $40 $1
Slide 7: Timberlands Results Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Q2 2020 Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $60 600 $35 600 491 $43 $30 $29 $50 500 500 Volume: Tons (thousands) Volume: Tons (thousands) $25 $40 400 372 400 Price: $/Ton $20 Price: $/Ton $30 300 300 $15 $20 200 200 $10 $10 100
Slide 8: Wood Products Results
Wood Products production hours were constrained Q2, including a week of WOOD PRODUCTS lost sawmill production to tornado-caused power outage and a three-week RESULTS plywood curtailment. Wood Products Adjusted EBITDDA – Q1 2020 to Q2 2020 Variance $4.5 ($2.4) ($1.6) $0.9 ($3.3) $13.2 $ MILLIONS ($0.
Slide 9: Wood Products Results
WOOD PRODUCTS RESULTS Q2 2020 Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $550 400 350 $60 $500 249 300 $50 Shipments (MMBF) $450 $412 Price: $/MBF 250 $40 $400 200 $30 $350 150 $20 $300 $10.9 100 $10 $250 50 $0 $200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 10: Real Estate Results
REAL ESTATE RESULTS In Q2 2020 Real Estate announced the sale of 72,000 acres in Minnesota for Q2 2020 approximately $48 million which is expected to close in Q4 2020. Real Estate Adjusted EBITDDA – Q1 2020 to Q2 2020 Variance $ MILLIONS $2.6 ($0.4) ($0.2) $9.3 $7.3 Q1 2020 Rural Sales Development S
Slide 11: Real Estate Results
REAL ESTATE RESULTS Q2 2020 Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price Legacy Deltic 100 $3,500 13,500 $140,000 90 $3,000 $120,000 80 Average Price: $/Acre 11,000 Average Price: $/Lot Residential Lots Sold $2,500 $97,059 70 $100,000 Acres Sold 60 $2,000 $1,7
Slide 12: Favorable Capital Structure
FAVORABLE CAPITAL Our strong balance sheet and ample liquidity continue to provide the flexibility STRUCTURE to manage through the effects of COVID-19. Debt Maturities $250 $200 $190 $ MILLIONS $176 $150 $100 $100 $100 $50 $46 $40 $43 $40 $28 $0 $0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 |
Slide 13: Outlook Q3 2020
OUTLOOK Q3 2020 TIMBERLANDS Harvest volume 1.5 - 1.7 million tons Geographic harvest ~ 65% of volume in South Sawlog mix North: ~ 90% sawlogs South: ~ 50% sawlogs Sawlog pricing North: South: WOOD PRODUCTS Lumber shipments 270 - 280 MMBF Lumber prices REAL ESTATE Rural Development Land sales 11-12,0
Slide 14: Appendix
APPENDIX Q2 2020
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Operating (loss) Income Timberlands $ 16.6 $ 15.7 $ 30.9 $ 24.7 $ 87.9 $ 22.4 $ 14.0 $ 36.4 Wood Products 2.2 (7.9) (0.2) (4.7) (10.6) 7.8 5.1 12.9 Real Estate 0.9 23.7 9.3 7.4 41.3 0.6 6.0
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non - GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL TIMBERLANDS Northern Timberlands operating income $ 11.7 $ 10.1 $ 22.4 $ 18.4 $ 62.6 $ 17.8 $ 10.9 $ 28.7 Depreciation, depletion and amortization 2.0 1.8 2.0 2.2 8.0 2.1 1.8
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non - GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL TOTAL ADJUSTED EBITDDA Net (loss) Income (GAAP) $ 6.6 $ 17.1 $ 20.6 $ 11.4 $ 55.7 $ (16.8) $ 2.6 $ (14.2) Interest expense, net 5.4 7.9 8.5 8.6 30.4 3.7 8.3 12.0 Income taxes 1.6 (1
Slide 18: Statistics: Timberlands and Wood Products
STATISTICS: TIMBERLANDS AND WOOD PRODUCTS unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 373,865 324,556 529,030 472,620 1,700,071 433,870 302,917 736,787 Pulpwood 48,643 30,520 39,371 29,816 148,350 37,801 31,463 69,264 Stumpage 7,376 — 602 —
Slide 19: Statistics: Real Estate
STATISTICS: REAL ESTATE unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL RURAL Acres Sold HBU Development 759 2,497 975 846 5,077 630 2,257 2,887 Recreation Real Estate 1,143 1,637 5,037 2,152 9,969 880 2,216 3,096 Non-Strategic Timberlands 440 8,241 213 — 8,894 2,929 1,064 3,993 2,342 12,375 6,225
Slide 20: Definitions
DEFINITIONS Total Adjusted EBITDDA is a non-GAAP measure and is calculated as net income (loss) 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 21: Q2 2020 Earnings
Q2 2020 JERALD W. RICHARDS E A R N I N GS Vice President and Chief Financial Officer 509-835-1521 J U LY 2 8 , 2 0 2 0 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com