20 slides from Rayonier Inc. Reit's earnings presentation, Jan 28, 2015
Slide 1: 4Q 2014 Earnings Release
Michael J. Covey Chairman and Chief Executive Officer 4Q 2014 Earnings Release Eric J. Cremers President and Chief Operating Officer Potlatch Corporation Jerald W. Richards Vice President and Chief Financial Officer January 28, 2015
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, statements about our expectations regarding the company’s
Slide 3: 4Q 2014: Total Company Summary
4Q 2014: Total Company Summary (unaudited, $ in millions, except per share amounts) 2013 2014 Q4 Q1 Q2 Q3 Q4 2013 2014 Operating income Resource $ 18.0 $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 73.4 $ 85.0 Wood Products 9.0 12.7 14.9 15.8 9.1 58.9 52.5 Real Estate 4.6 8.3 12.4 4.6 1.6 18.3 26.9 Eliminations and
Slide 4: Resource: Segment Summary
RESOURCE: Segment Summary Northern sawlog prices remain strong Southern sawlog price declined due to mix; pine sawlog price remains flat Harvest volumes were seasonally lower in Q4 $40 45% $35 $34.1 40% Operating Income (millions) 34% 33% 35% $30 32% 31% 37% 29% 27% 28% $25.4 30% Margin (%) $2
Slide 5: Resource: Northern Region – Volume and Pricing
RESOURCE: Northern Region – Volume and Pricing Sawlog Pulpwood 900 $100 140 $50 800 120 $90 $45 700 100 Tons (thousands) Tons (thousands) 600 $80 $40 $ / Ton $ / Ton 500 80 $70 400 60 $35 300 $60 40 200 $30 $50 20 100 0 $40 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 6: Resource: Southern Region – Volume and Pricing
RESOURCE: Southern Region – Volume and Pricing Sawlog Pulpwood 250 $60 250 $50 200 $55 200 $45 Tons (thousands) Tons (thousands) 150 $50 150 $40 $ / Ton $ / Ton 100 $45 100 $35 50 $40 50 $30 0 $35 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2012 2013
Slide 7: Wood Products: Segment Summary
WOOD PRODUCTS: Segment Summary Average lumber price realized decreased slightly Lumber shipments down sequentially due to fewer operating days in Q4 Log costs continue to increase in the Lake States $30 25% 21% 21% $25 Operating Income (millions) 20% 18% 16% $19.7 16% $20 Margin (%) $18.9 15%
Slide 8: Wood Products: Lumber – Sales Prices and Shipments
WOOD PRODUCTS: Lumber – Sales Prices and Shipments 200 $550 173 176 172 162 163 164 163 $500 160 156 Shipment Volumes (millions of board ft) 153 152 156 150 $450 $423 $412 $407 $408 $402 $393 $ / MBF $400 $374 100 $363 $351 $354 $357 $350 $306 $300 50 $250 0 $200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 9: Real Estate: Segment Summary
REAL ESTATE: Segment Summary Sold 33,400 acres in 2014, including 20,400 acres in two sales in the first half Land basis was 23% of revenue for the year; land basis higher in Q4 due to low level of sales and mix $20 90% 77% 79% 77% 75% 80% 72% 71% 73% Operating Income (millions) 67% 67% 70% $15
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Funds Available for Distribution (3) (millions) $150 Amounts as of December 31, 2014: Unaudited, $ in millions $100 $98 Cash & short-term investments $ 31.0 $77 Debt $ 629.3 $53 $50 $52 $58 $50 Pension & other postretirement liability $ 115.9 Revolver availability $ 248.6 $0 (1)
Slide 11: 2015 Outlook
2015 OUTLOOK Harvest 4.5 million tons Expect slightly higher sawlog prices in the North and flat pine sawlog prices in the South Strong demand should translate to another solid year for Wood Products Plan to sell 20,000 acres of real estate Land basis is estimated to be 40% to 45% Consol
Slide 12: Appendix
Appendix
Slide 13: Long-Term Harvest Profile
Long-Term Harvest Profile Annual Harvest Projected Average Annual Harvest (millions of tons) (millions of tons) 6.0 6.0 5.5 5.0 5.0 4.8 4.8 4.8 4.9 4.5 4.0 4.1 4.0 4.0 4.0 4.0 3.7 3.6 3.6 3.0 3.0 2.0 2.0 1.0 1.0 0.0 0.0 2012A 2013A 2014A 2015-2019 2020-2024 2025-2029 2030-2064 Long-Term Potential (2
Slide 14: Statistics: Resource
STATISTICS: Resource (unaudited) 2013 2014 Fee Volumes (tons) Q4 Q1 Q2 Q3 Q4 2013 2014 Northern Region Sawlog 541,304 443,084 279,831 720,460 538,738 2,031,637 1,982,113 Pulpwood 17,197 60,579 30,124 62,340 48,883 127,998 201,926 Stumpage 1,901 10,968 2,475 1,862 1,007 25,397 16,312 Total 560,402 51
Slide 15: Statistics: Wood Products & Real Estate
STATISTICS: Wood Products & Real Estate (unaudited) 2013 2014 Wood Products Q4 Q1 Q2 Q3 Q4 2013 2014 Lumber Shipments (MBF) 163,033 155,596 176,046 171,818 156,123 641,217 659,583 Lumber Sales Prices ($ per MBF) $ 374 $ 402 $ 407 $ 408 $ 393 $ 392 $ 402 Real Estate Acres Sold HBU Development 1,137 6
Slide 16: EBITDDA Reconciliation
EBITDDA RECONCILIATION (unaudited, $ in millions) 2013 2014 Q4 Q1 Q2 Q3 Q4 2013 2014 GAAP net income $ 13.7 $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 70.6 $ 89.9 Interest expense, net (1) 5.6 5.5 5.5 5.5 6.4 23.1 22.9 Income tax provision 1.3 5.5 7.9 6.2 0.1 13.9 19.7 Depreciation, depletion & amortization 6.6
Slide 17: EBITDDA Reconciliation: By Segment
EBITDDA RECONCILIATION: By Segment (unaudited, $ in millions) 2013 2014 Q4 Q1 Q2 Q3 Q4 2013 2014 Resource Operating Income $ 18.0 $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 73.4 $ 85.0 Depreciation, depletion and amortization 4.6 3.9 2.8 6.0 5.1 18.1 17.8 Resource EBITDDA 22.6 20.1 13.6 40.1 29.0 91.5 102.8 Wood
Slide 18: FAD Reconciliation
FAD RECONCILIATION (unaudited, $ in millions) 2013 2014 Q4 Q1 Q2 Q3 Q4 2013 2014 GAAP net income $ 13.7 $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 70.6 $ 89.9 Depreciation, depletion & amortization(1) 6.9 6.1 4.9 8.3 7.4 27.0 26.7 Basis of real estate sold 1.0 4.6 2.2 0.5 1.3 2.9 8.6 Capital expenditures (2) (6.
Slide 19: Operating Working Capital Reconciliation
OPERATING WORKING CAPITAL RECONCILIATION (unaudited, $ in millions) 2013 2014 Q4 Q1 Q2 Q3 Q4 Current assets $ 130.4 $ 139.1 $ 145.1 $ 144.1 $ 93.6 Less: Current liabilities (50.3) (49.5) (54.9) (60.0) (72.2) Working capital 80.1 89.6 90.2 84.1 21.4 Less: Cash (5.6) (9.4) (9.3) (8.3) (4.6) Less: Shor
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