Rayonier Inc. Reit · NYSE:RYN
Rayonier Inc. Reit — PotlatchDeltic — Q3 2020 Earnings Presentation
21 slides from Rayonier Inc. Reit's earnings presentation, Oct 27, 2020
Slide 1: Q3 2020 Earnings
Q 3 2020 EARNINGS O C T O B E R 2 7, 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 Q3 2020
KEY HIGHLIGHTS Solid execution and historic lumber prices yielded record quarterly EBITDDA. Q3 2020 Our strong liquidity provides a solid platform for growing shareholder value over the long term. STRATEGY PERFORMANCE CAPITAL ALLOCATION Leverage to lumber prices Total Adjusted EBITDDA:1 Returned $96
Slide 4: Consolidated Results
Q3 2020 Total Adjusted EBITDDA of $135 million reflects historic lumber prices CONSOLIDATED RESULTS and record quarterly harvest volume. Total Adjusted EBITDDA – Q2 2020 to Q3 2020 Variance $70.8 $4.1 ($4.1) ($4.8) $135.4 $ MILLIONS $34.1 $35.3 Q2 2020 Timberlands Wood Products Real Estate Corporate
Slide 5: Timberlands Results Q3 2020
TIMBERLANDS RESULTS Record quarterly Timberlands EBITDDA was driven by record quarterly harvest Q3 2020 volume and strong Northern sawlog prices. Timberlands Adjusted EBITDDA – Q2 2020 to Q3 2020 Variance $ MILLIONS $22.9 ($3.6) $0.7 $59.7 $14.1 $25.6 Q2 2020 Harvest Volume Sales Price & Mix Log & H
Slide 6: Timberlands Results: Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Q3 2020 Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $131 $140 700 $50 60 555 $45 $42 $120 600 50 Volume: Tons (thousands) $40 500 Volume: Tons (thousands) $100 $35 40 Price: $/Ton $30 30 $80 400 Price: $/Ton $25 30 $60 300 $20 20 $15 $4
Slide 7: Timberlands Results: Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Q3 2020 Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $60 700 578 $44 $35 463 600 $50 600 $29 $30 500 Volume: Tons (thousands) 500 $40 Volume: Tons (thousands) $25 400 400 $20 Price: $/Ton Price: $/Ton $30 300 300 $15 $20 200 200 $10 $10
Slide 8: Wood Products Results
WOOD PRODUCTS Strong performance by our employees allowed us to maximize the benefit of RESULTS historic lumber prices, resulting in record quarterly Wood Products EBITDDA. Wood Products Adjusted EBITDDA – Q2 2020 to Q3 2020 Variance $6.0 $3.5 $0.6 $81.7 $2.6 ($1.5) $ MILLIONS $59.6 $10.9 Manufactur
Slide 9: Wood Products Results Q3 2020
WOOD PRODUCTS RESULTS Q3 2020 Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $800 400 $90 $81.7 $637 $80 350 $700 291 $70 300 Shipments (MMBF) $600 $60 Price: $/MBF 250 $50 $500 200 $40 150 $400 $30 100 $20 $300 50 $10 $200 0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3
Slide 10: Real Estate Results
REAL ESTATE RESULTS Real Estate expects to close on the sale of 72,000 acres in Minnesota to a Q3 2020 conservation fund for approximately $48 million in Q4 2020. Real Estate Adjusted EBITDDA – Q2 2020 to Q3 2020 Variance $1.6 ($0.9) $13.4 $3.4 $ MILLIONS $9.3 Q2 2020 Rural Sales Development Sales O
Slide 11: Real Estate Results Q3 2020
REAL ESTATE RESULTS Q3 2020 Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price1 100 $3,500 $140,000 90 $1,202 13,500 $3,000 $120,000 80 11,048 $82,573 Average Price: $/Acre Average Price: $/Lot Residential Lots Sold 11,000 70 $2,500 $100,000 60 Acres Sold $2,000 8,5
Slide 12: Favorable Capital Structure
FAVORABLE CAPITAL Our strong balance sheet and ample liquidity provide a solid platform for STRUCTURE growing shareholder value over the long term. 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 | Sub
Slide 13: Outlook Q4 2020
OUTLOOK Q4 2020 TIMBERLANDS Harvest volume 1.3 - 1.4 million tons Geographic harvest ~ 70% of volume in South Sawlog mix North: ~ 90% sawlogs South: ~ 45% sawlogs Sawlog pricing North: South: WOOD PRODUCTS Lumber shipments 260 - 270 MMBF Lumber prices REAL ESTATE Rural1 Development Land sales 73-74,
Slide 14: Appendix
iii) Ly i i ni 1 hy | ! ly \ APPENDIX Q3 2020 ms i My A
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Operating (loss) Income Timberlands $ 16.6 $ 15.7 $ 30.9 $ 24.7 $ 87.9 $ 22.4 $ 14.0 $ 45.9 $ 82.3 Wood Products 2.2 (7.9) (0.2) (4.7) (10.6) 7.8 5.1 75.7 88.6 Real Estate 0.9 23.7 9.3 7
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 Q3 TOTAL TIMBERLANDS Northern Timberlands operating income $ 11.7 $ 10.1 $ 22.4 $ 18.4 $ 62.6 $ 17.8 $ 10.9 $ 40.5 $ 69.2 Depreciation, depletion and amortization 2.0 1.8 2.0 2.2 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 Q3 TOTAL TOTAL ADJUSTED EBITDDA Net (loss) Income (GAAP) $ 6.6 $ 17.1 $ 20.6 $ 11.4 $ 55.7 $ (16.8) $ 2.6 $ 81.0 $ 66.8 Interest expense, net 5.4 7.9 8.5 8.6 30.4 3.7 8.3 8.6 20.6 Income
Slide 18: Statistics: Timberlands and Wood Products
STATISTICS: TIMBERLANDS AND WOOD PRODUCTS unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 373,865 324,556 529,030 472,620 1,700,071 433,870 302,917 554,845 1,291,632 Pulpwood 48,643 30,520 39,371 29,816 148,350 37,801 31,463 29,910 99,174 St
Slide 19: Statistics: Real Estate
STATISTICS: REAL ESTATE unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL RURAL Acres Sold HBU Development 759 2,497 975 846 5,077 630 2,257 1,599 4,486 Recreation Real Estate 1,143 1,637 5,037 2,152 9,969 880 2,216 1,201 4,297 Non-Strategic Timberlands 440 8,241 213 — 8,894 2,929 1,064 8,248 12,
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: Q3 2020 Earnings
Q3 2020 JERALD W. RICHARDS E A R N I N GS Vice President and Chief Financial Officer 509-835-1521 O C T O B E R 2 7, 2 0 2 0 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com