Rayonier Inc. Reit · NYSE:RYN
Rayonier Inc. Reit — Q2 2023 Earnings Presentation
19 slides from Rayonier Inc. Reit's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Financial Supplement
Q2 2023 Financial Supplement August 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements - Certain statements in this presentation 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 schedu
Slide 3: Table of Contents
Table of Contents SECTION 1 Financial and Segment Information SECTION 2 Supplemental Information 3 Q2 2023 Financial Supplement | August 2023
Slide 4: Section 1 Financial and Segment Information
Section 1 Financial and Segment Information 4 Q2 2023 Financial Supplement | August 2023
Slide 5: Financial Highlights
Financial Highlights ($ in millions, except per share data) Profitability Q2 2023 Q1 2023 Q2 2022 Sales $208.9 $179.1 $246.3 Operating Income 20.1 10.6 35.5 Pro Forma Operating Income(1) 20.1 12.9 35.5 Net Income Attributable to Rayonier Inc. 19.0 8.3 24.1 Pro Forma Net Income(1) 7.8 1.1 24.1 Adjust
Slide 6: Variance Analysis – Q2 2022 to Q2 2023
Variance Analysis – Q2 2022 to Q2 2023 Operating Income (Loss) ($ in millions) Southern Pacific Northwest New Zealand Corporate Timber Timber Timber Real Estate Trading and Other Total Q2-22 Operating Income (Loss) $24.1 $2.9 $8.0 $11.0 ($0.4) ($10.1) $35.5 Volume 7.6 (0.8) (0.5) (3.6) — — 2.7 Price
Slide 7: Variance Analysis – Q2 2022 YTD to Q2 2023 YTD
Variance Analysis – Q2 2022 YTD to Q2 2023 YTD Operating Income ($ in millions) Southern Pacific Northwest New Zealand Corporate Timber Timber Timber Real Estate Trading and Other Total Q2-22 YTD Operating Income $54.4 $9.5 $13.4 $21.2 ($0.1) ($17.7) $80.8 Volume 8.2 (3.4) (1.2) (20.2) — — (16.6) (1
Slide 8: Liquidity Measures – Cash Available for Distribution
Liquidity Measures – Cash Available for Distribution Six Months Ended June 30, ($ in millions, except per share data) 2023 2022 Cash Provided by Operating Activities $126.3 $148.5 Working capital and other balance sheet changes (26.8) 1.3 Capital expenditures(1) (36.8) (30.3) Cash Available for Dist
Slide 9: Southern Timber Overview
Southern Timber Overview 2022 2023 Q1 Q2 Q3 Q4 FY 2022 Q1 Q2 Q3 Q4 YTD Sales Volume (Tons in 000s) Pine Pulpwood 1,171 962 965 813 3,911 979 1,036 — — 2,015 Pine Sawtimber 622 458 449 512 2,041 886 932 — — 1,818 Total Pine Volume 1,793 1,420 1,414 1,325 5,952 1,865 1,969 — — 3,833 Hardwood 103 103 8
Slide 10: Pacific Northwest Timber Overview
Pacific Northwest Timber Overview 2022 2023 Q1 Q2 Q3 Q4 FY 2022 Q1 Q2 Q3 Q4 YTD Sales Volume (Tons in 000s) Pulpwood 76 80 59 86 300 77 61 — — 138 Domestic Sawtimber(1) 426 255 230 277 1,188 284 251 — — 535 Export Sawtimber 3 41 18 34 97 23 21 — — 43 Total Volume 505 376 307 397 1,585 384 332 — — 71
Slide 11: New Zealand Timber Overview
New Zealand Timber Overview 2022 2023 Q1 Q2 Q3 Q4 FY 2022 Q1 Q2 Q3 Q4 YTD Sales Volume (Tons in 000s) Domestic Pulpwood (Delivered) 94 105 103 85 388 55 50 — — 105 Domestic Sawtimber (Delivered) 135 188 221 142 686 137 155 — — 291 Export Pulpwood (Delivered) 36 55 38 53 182 42 70 — — 112 Export Sawt
Slide 12: Real Estate Overview
Real Estate Overview 2022 2023 Q1 Q2 Q3 Q4 FY 2022 Q1 Q2 Q3 Q4 YTD Gross Sales ($ in MMs) Improved Development(1) $5.0 $11.6 $2.3 $16.6 $35.4 $4.8 $12.2 — — $17.0 Rural 16.9 23.4 7.0 12.2 59.5 6.5 15.6 — — 22.1 Timberland & Non-Strategic 11.4 — — — 11.4 1.6 0.3 — — 1.9 Deferred Revenue/Other(2) 0.9
Slide 13: Capital Expenditures By Segment
Capital Expenditures By Segment Three Months Ended Six Months Ended ($ in millions) June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Southern Timber Reforestation, Silviculture & Other Capital Expenditures $6.6 $6.9 $3.6 $13.5 $6.1 Property taxes 2.0 2.0 1.9 4.0 3.7 Lease payme
Slide 14: 2023 Financial Guidance
2023 Financial Guidance Prior 2023 Revised 2023 Year-to-Date ($ in millions) Full-Year Guidance Guidance Results Timber Volumes (tons in millions) Southern Timber 6.7 - 7.0 7.2 - 7.4 3.9 Pacific Northwest Timber 1.5 - 1.6 1.4 - 1.5 0.7 New Zealand Timber 2.5 - 2.7 2.3 - 2.5 1.2 Total 10.7 - 11.3 10.
Slide 15: Section 2 Supplemental Information
Section 2 Supplemental Information 15 Q2 2023 Financial Supplement | August 2023
Slide 16: Definitions of Non-GAAP Measures and Pro Forma Items
Definitions of Non-GAAP Measures and Pro Forma Items 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, the gain associated with the multi-family apartment complex s
Slide 17: Reconciliation of Reported to Pro Forma Earnings
Reconciliation of Reported to Pro Forma Earnings ($ in millions, except per share amounts) June 30, 2023 March 31, 2023 June 30, 2022 Three Months Ended $ EPS $ EPS $ EPS Net Income attributable to Rayonier Inc. $19.0 $0.13 $8.3 $0.06 $24.1 $0.16 Net recoveries on legal settlements (11.4) (0.08) (9.
Slide 18: Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Segment ($ in millions) Pacific New Southern Northwest Zealand Real Corporate Three Months Ended Timber Timber Timber Estate Trading and Other Total June 30, 2023 Operating income (loss) $21.7 ($2.4) $2.4 $8.6 $0.1 ($10.3) $20.1 Depreci
Slide 19: Reconciliation of Operating Income to Adjusted EBITDA by Segment
Reconciliation of Operating Income to Adjusted EBITDA by Segment ($ in millions) Pacific New Southern Northwest Zealand Real Corporate Six Months Ended Timber Timber Timber Estate Trading and Other Total June 30, 2023 Operating income (loss) $43.9 ($5.9) $1.7 $9.5 $0.4 ($18.9) $30.7 (1) Timber write