21 slides from Rayonier Inc. Reit's earnings presentation, Jul 31, 2018
Slide 1: Q2 2018 Earnings
Q2 2018 Earnings July 31, 2018
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 Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding housing demand; strong repair a
Slide 3: Key Highlights – Q2 2018
Key Highlights – Q2 2018 Financial Performance Strategy Capital Allocation (1) Adjusted EBITDDA margin of 35.1% Strong lumber fundamentals Closed Deltic merger on Feb 20, 2018 • Adjusted EBITDDA of $94.2 million • Housing demand improving • Issued 22 million shares @ $52/share in Q2 2018 • Restricte
Slide 4: Q2 2018 Consolidated Results
Q2 2018 Consolidated Results Adjusted EBITDDA – Q1 2018 to Q2 2018 Variance ($ in millions) $4.3 $22.5 $94.2 ($2.6) ($0.7) $6.0 $64.7 Q1 2018 Resource Wood Products Real Estate Corporate Eliminations Q2 2018 Key Consolidated Highlights: Adjusted EBITDDA increased $29.5 million from Q1 2018 levels Hi
Slide 5: Q2 2018 Resource Results
Q2 2018 Resource Results Adjusted Segment EBITDDA – Q1 2018 to Q2 2018 Variance ($ in millions) $2.1 $14.2 $43.7 ($5.4) $37.7 ($2.4) ($0.5) $8.0 ($10.0) Q1 2018 North Volume North Price/Mix South Volume South Price/Mix Log & Haul Forestry Costs & SG&A Q2 2018 Other Key Resource Highlights: Segment A
Slide 6: Resource Results: Northern Region
Q2 2018 Resource Results Northern Region $140 Northern Sawlog Pricing and Volume 700 Northern Pulpwood Pricing and Volume $131 $45 70 $41 $120 600 $40 Volumes: Tons (thousands) Volumes: Tons (thousands) 60 $35 $100 500 50 $30 Price: $/Ton Price: $/Ton $80 378 400 40 $25 31 $60 300 $20 30 $15 $40 200
Slide 7: Resource Results: Southern Region
Q2 2018 Resource Results Southern Region Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $50 800 $35 550 $43 $31 Volumes: Tons (thousands) 700 500 Volumes: Tons (thousands) $40 $30 440 580 450 600 $25 400 Price: $/Ton Price: $/Ton $30 500 350 $20 300 400 $15 250 $20 300 200 2
Slide 8: Q2 2018 Wood Products Results
Q2 2018 Wood Products Results Adjusted Segment EBITDDA – Q1 2018 to Q2 2018 Variance ($ in millions) $13.2 $25.6 $51.5 $1.5 $0.9 $0.4 ($19.1) $29.0 Q1 2018 Lumber Shipments Lumber Price Lumber Costs: Lumber Costs per Panels Other Q2 2018 Volume MBF Key Wood Products Highlights: Segment Adjusted EBIT
Slide 9: Wood Products Results: Lumber Pricing and Shipments
Q2 2018 Wood Products Results Lumber Pricing and Shipments Wood Products Adjusted EBITDDA (1) $550 $60 $517 ($ in millions) Shipments (thousand board feet) 310 $500 $52 280 $50 259 Price: $/ MBF $450 250 $40 $400 220 $30 $350 190 $20 $300 160 $250 130 $10 $200 100 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1
Slide 10: Q2 2018 Real Estate Results
Q2 2018 Real Estate Results Adjusted Segment EBITDDA – Q1 2018 to Q2 2018 Variance ($ in millions) $0.7 $0.2 $12.3 $3.8 ($0.4) $8.0 Q1 2018 Rural Sales Development Sales Other, net SG&A Q2 2018 Key Real Estate Highlights: Segment Adjusted EBITDDA increased $4.3 million from Q1 2018 levels Real Estat
Slide 11: Real Estate Results: Acres and Lots Sold
Q2 2018 Real Estate Results Rural - Acres Sold and Avg. Price Development – Lots Sold and Avg. Price $2,500 $100,000 100 13,500 Legacy Deltic 90 11,571 Average Price: $ / Acre $2,000 $80,000 80 11,000 Average Price: $ / Lot Residential Lots Sold $1,095 $74,054 70 $1,500 $60,000 60 Acres Sold 8,500 5
Slide 12: Synergies & Operational Efficiencies
Synergies & Operational Efficiencies Q2 2018 $50 Million After-Tax Annual Cash Synergies Goal $50 Million Run Rate Synergy Target Synergy ($ millions) Achieved On-Track $15 $50 Sustainable Harvest $50 $ 10 Successful harvest ramp-up $40 $40 Expand Lumber Output $ 13 $40 $7 Waldo kiln conversion comp
Slide 13: Favorable Capital Structure
Favorable Capital Structure Debt Maturities ($ in millions) $200 $190 Potlatch Deltic $176 $150 $100 $100 $100 $50 $46 $40 $43 $40 $28 $29 $- $0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 PotlatchDeltic Unaudited, $ in millions June 30, 2018 Key Highlights: (1) Market capitalization $ 3,
Slide 14: Q3 2018 Outlook
Q3 2018 Outlook RESOURCE Harvest volume 1.6 - 1.8 million tons Geographic harvest Two thirds of volume in South Sawlog mix North: sawlogs ~ 90% of volume South: sawlogs ~ 50% of volume Sawlog pricing North: lumber indexed South: more hardwood WOOD PRODUCTS Lumber shipments 280 - 300 million board fe
Slide 15: Appendix
4\PotlatchDeltic Q2 2018 Earnings
Slide 16: Total Company Summary
Total Company Summary 2017 2018 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD Operating income: Resource $ 14.9 $ 19.6 $ 41.8 $ 29.9 $ 29.0 $ 29.1 $ 34.5 $ 58.1 (1) Wood Products 9.0 24.9 19.5 19.7 25.6 45.5 33.9 71.1 Real Estate 8.7 5.7 1.4 2.8 4.3 9.3 14.4 13.6 Eliminations 1.1 1.0 (3.1) (1.7) (1.1) (2.0) 2
Slide 17: Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA
Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA 2017 2018 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD Resource Northern Operating Income $ 13.4 $ 17.8 $ 36.8 $ 26.0 $ 26.2 $ 26.0 $ 31.2 $ 52.2 Depreciation, depletion and amortization 1.8 1.7 2.2 2.2 2.1 1.9 3.5 4.0 Northern Adjusted EBITDDA 15.2
Slide 18: Statistics: Resource and Wood Products
Statistics: Resource and Wood Products (unaudited) 2017 2018 Q1 Q2 Q3 Q4 Total Q1 Q2 Total Resource Fee Volumes (tons) Northern Region Sawlog 354,104 333,926 559,580 463,978 1,711,588 448,782 377,636 826,418 Pulpwood 47,785 40,054 33,742 24,821 146,402 45,428 31,389 76,817 Stumpage 10,693 - 1,434 -
Slide 19: Statistics: Real Estate
Statistics: Real Estate (unaudited) 2017 2018 Q1 Q2 Q3 Q4 Total Q1 Q2 Total Real Estate Rural Acres Sold HBU Development 4,628 700 628 484 6,440 1,796 1,133 2,929 Rural Real Estate 1,740 4,523 1,207 2,523 9,993 3,461 2,280 5,741 Non-Strategic Timberlands 197 186 191 - 574 887 8,158 9,045 6,565 5,409
Slide 20: Definitions
Definitions Adjusted EBITDDA is a non-GAAP measure and is calculated as net income (loss) adjusted for interest expense, provision (benefit) for income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, gains and
Slide 21: Michael J. Covey, Eric J. Cremers, Jerald W. Richards
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 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com