19 slides from Rayonier Inc. Reit's earnings presentation, Jan 30, 2018
Slide 1: Q4 2017 Earnings Release
Q4 2017 Earnings Release January 30, 2018 Michael J. Covey Chairman and Chief Executive Officer Eric J. Cremers President and Chief Operating Officer Jerald W. Richards Vice President and Chief Financial Officer
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures ADDITIONAL INFORMATION This communication is being made in respect of the proposed merger transaction involving Potlatch Corporation (“Potlatch”) and Deltic Timber Corporation (“Deltic”). This communication does not constitute an offer to sell or the so
Slide 3: 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 Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the U.S. housing market; strong
Slide 4: Q4 2017: Total Company Summary
Q4 2017: Total Company Summary (unaudited, $ in millions, except per share amounts) 2017 2017 2016 2017 2017 2017 2016 2017 Q3 Q4 YTD YTD Q3 Q4 YTD YTD Operating Income Adjusted EBITDDA (2) Resource $ 41.8 $ 29.9 $ 81.9 $ 106.1 Northern region $ 39.0 $ 28.1 $ 74.6 $ 101.8 Wood Products 19.3 19.5 24.
Slide 5: Adjusted Net Income (excluding special items)
Adjusted Net Income (excluding special items)(1) (unaudited, $ in millions, except per share amounts) 2017 Q3 2017 Q4 Income Income Diluted Income Income Diluted Before Taxes After Taxes EPS Before Taxes After Taxes EPS Net income (GAAP) $ 36.4 $ 33.7 $ 0.82 $ 29.7 $ 11.6 $ 0.28 Special items: Impac
Slide 6: Resource: Segment Summary
RESOURCE: Segment Summary • Northern sawlog prices decreased 9% due largely to seasonally heavier logs and a lower mix of cedar logs • Southern sawlog prices increased 6%, due primarily to an increase in hardwood logs in the mix • Harvest volumes were seasonally lower in the North and the South $50
Slide 7: Resource: Northern Region – Volume, Pricing and Adjusted EBITDDA
RESOURCE: Northern Region – Volume, Pricing and Adjusted EBITDDA Sawlog Pulpwood 700 $130 140 $50 600 $120 120 Tons (thousands) $45 500 $110 Tons (thousands) 100 $100 $40 400 80 $/Ton $/Ton $90 300 60 $80 $35 200 $70 40 $30 100 $60 20 0 $50 0 $25 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 8: Resource: Southern Region – Volume, Pricing and Adjusted EBITDDA
RESOURCE: Southern Region – Volume, Pricing and Adjusted EBITDDA Sawlog Pulpwood 400 $60 400 $50 350 350 $50 $45 Tons (thousands) Tons (thousands) 300 300 $40 250 250 $40 $/Ton $/Ton 200 $30 200 150 150 $35 $20 100 100 $10 $30 50 50 0 $0 0 $25 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20
Slide 9: Wood Products: Segment Summary
WOOD PRODUCTS: Segment Summary • Lumber shipments declined seasonally to 184 MBF; total shipments for the year increased almost 50 MBF • Average lumber prices increased 4% to $447 per MBF in Q4 $30 30% Adjusted Operating Income(1) (millions) 19% 18% 17% $20 $21.4 $21.4 20% $19.6 Margin (%) 11% $10 9
Slide 10: Wood Products: Lumber Sales Prices, Shipments and Adjusted EBITDDA
WOOD PRODUCTS: Lumber Sales Prices, Shipments and Adjusted EBITDDA 190 195 $500 200 175 180 184 165 171 168 Shipment Volumes 162 (thousand board ft) $431 $431 (millions of board ft) 150 $387 $447 $425 $ / MBF $369 $363 $351 100 $316 $324 $350 50 $275 0 $200 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017
Slide 11: Real Estate: Segment Summary
REAL ESTATE: Segment Summary • Operating income increased in Q4 due to the sale of more acres • Q4 sales were more heavily weighted to recurring sales of Minnesota rural recreational real estate than Q3 $12 100% Operating Income(1) (millions) 90% 80% $9 70% $8.6 70% 69% 70% 60% 58% Margin (%) 60% 51
Slide 12: Real Estate: Acres Sold, Average Price and Adjusted EBITDDA
REAL ESTATE: Acres Sold, Average Price and Adjusted EBITDDA 14,000 $3,000 AVG Weighted Price $2,209 10,500 $2,250 $1,800 Acres Sold $1,602 $1,603 $1,620 $1,574 7,248 $1,504 7,000 6,292 6,565 $1,500 5,530 5,409 4,560 $1,339 $1,195 3,473 3,500 3,007 $750 2,026 0 $0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS DEBT MATURITIES (in millions) Amounts as of December 31, 2017: $190 Unaudited, $ in millions Cash and cash equivalents $ 120.5 Debt $ 573.3 Pension & postretirement liability $ 93.4 (1) $46 $40 $43 Net debt to enterprise value 17.5% (2) $14 Dividend yield 3.1% 2018 2019 2020 202
Slide 14: Outlook
OUTLOOK • Harvest a little over 4 million tons for the year • Slightly more than half of annual volume in the South • Sawlogs ≈90% of Northern volume and ≈45% of Southern volume RESOURCE • Harvest 850,000 – 950,000 tons Q1 • Northern sawlog prices expected to be flat • Seasonally lower mix of hardwo
Slide 15: Appendix
4\ Potlatch. | Appendix www.potlatchcorp.com
Slide 16: Statistics: Resource
STATISTICS: Resource (unaudited) 2015 2016 2017 Fee Volumes (tons) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Northern Region Sawlog 490,625 366,852 388,575 579,837 474,024 354,104 333,926 559,580 463,978 Pulpwood 46,449 52,361 44,497 62,138 35,418 47,785 40,054 33,742 24,821 Stumpage 790 16,207 1,061 1,261 63 10,6
Slide 17: Statistics: Wood Products & Real Estate
STATISTICS: Wood Products & Real Estate (unaudited) 2015 2016 2017 Wood Products Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Lumber Shipments (MBF) 164,965 161,992 170,829 175,358 180,050 167,559 189,781 195,296 184,031 Lumber Sales Prices ($ per MBF) $ 316 $ 324 $ 351 $ 369 $ 363 $ 387 $ 431 $ 431 $ 447 Real Estate
Slide 18: Total Company Earnings Summary
Total Company Earnings Summary (unaudited, $ in millions, except per share amounts) 2015 2016 2017 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD YTD Operating income: Resource $ 16.1 $ 10.2 $ 15.7 $ 33.3 $ 22.7 $ 14.9 $ 19.5 $ 41.8 $ 29.9 $ 81.9 $ 106.1 (1) Wood Products (1.3) 1.0 4.7 10.6 8.3 8.7 24.7 1
Slide 19: Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA
NON-GAAP RECONCILIATION: Operating Segment Adjusted EBITDDA (unaudited, $ in millions) 2015 2016 2017 2016 2017 YTD YTD Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Northern Resource Operating Income $ 11.7 $ 8.6 $ 12.3 $ 26.9 $ 17.0 $ 13.4 $ 17.8 $ 36.8 $ 25.9 $ 64.8 $ 93.9 Depreciation, depletion and amortization 3