21 slides from Rayonier Inc. Reit's earnings presentation, Feb 4, 2020
Slide 1: 4Q 2019 Earnings
4Q 2019 EARNI NGS F E B R UA RY 4 , 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 our stepped-up capi
Slide 3: Key Highlights 2019
Total Adjusted EBITDDA of $179 million was the 3rd highest level of annual EBITDDA since KEY HIGHLIGHTS becoming a REIT in 2006. We accomplished this despite a relatively weak lumber pricing 2019 environment which reflects the stronger company created by the 2018 Deltic merger. STRATEGY PERFORMANCE
Slide 4: Consolidated Results
Real Estate’s strong 2019 performance demonstrates flexibility in PotlatchDeltic’s CONSOLIDATED RESULTS ability to generate cash against a backdrop of relatively weak lumber prices and harvest volumes lower than the annual plan. Total Adjusted EBITDDA – Q3 2019 to Q4 2019 Variance $55.0 ($5.0) $ MIL
Slide 5: Timberlands Results
Southern harvest volumes were below plan in 2019 due to extraordinarily TIMBERLANDS wet weather in the first half and a price and supply response leading to RESULTS oversupplied mill log inventories in the second half. Timberlands Adjusted EBITDDA – Q3 2019 to Q4 2019 Variance $ MILLIONS $43.0 ($1.2
Slide 6: Timberlands Results: Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Q4 2019 Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $45 60 $140 600 $40 $36 473 50 Volume: Tons (thousands) $120 $96 $35 Volume: Tons (thousands) 500 $30 40 $100 Price: $/Ton 400 Price: $/Ton $25 30 $80 30 300 $20 $60 $15 20 200 $40 $10
Slide 7: Timberlands Results: Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Q4 2019 Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume 543 $60 600 $35 600 $45 $32 $50 500 $30 500 455 Volume: Tons (thousands) Volume: Tons (thousands) $25 $40 400 400 Price: $/Ton $20 Price: $/Ton $30 300 300 $15 $20 200 200 $10 $10 100
Slide 8: Wood Products Results
WOOD PRODUCTS Wood Products successfully completed its elevated capital project plan in RESULTS 2019, which expanded capacity and improved grade realization. Wood Products Adjusted EBITDDA – Q3 2019 to Q4 2019 Variance $ MILLIONS $0.9 ($3.0) $5.9 ($1.6) ($0.6) $0.2 $1.8 Residuals Q3 2019 Price Manuf
Slide 9: Wood Products Results
WOOD PRODUCTS RESULTS Q4 2019 Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $550 400 350 $60 $500 259 300 $50 Shipments (MMBF) $450 $366 Price: $/MBF 250 $40 $400 200 $350 $30 150 $300 $20 100 $250 50 $10 $1.8 $200 0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: Real Estate Results
Our Real Estate segment’s performance was particularly strong in 2019. REAL ESTATE For the year, the segment’s EBITDDA was $63 million, highlighted by sale RESULTS of legacy Deltic timberlands for $11,000 per acre. Real Estate Adjusted EBITDDA – Q3 2019 to Q4 2019 Variance $ MILLIONS $14.7 ($4.2) $2
Slide 11: Real Estate Results
REAL ESTATE RESULTS Q4 2019 Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price $3,500 Legacy Deltic 100 13,500 $140,000 90 $3,000 $120,000 80 Average Price: $/Acre 11,000 Average Price: $/Lot Residential Lots Sold $2,500 $100,000 $69,791 70 $1,819 Acres Sold $2,000
Slide 12: Favorable Capital Structure
2019 was an active year. We returned $133 million to shareholders, sold the FAVORABLE CAPITAL legacy Deltic MDF plant, refinanced $190 million of debt and maintained a STRUCTURE strong balance sheet. Debt Maturities $250 $190 $200 $ MILLIONS $176 $150 $100 $100 $100 $50 $46 $40 $43 $40 $28 $0 $0 202
Slide 13: Outlook
Improving housing fundamentals coupled with 2019 permanent sawmill closures are OUTLOOK expected to result in higher lumber demand and prices in 2020. TIMBERLANDS Q1 2020 FY 2020 Harvest volume 1.3–1.4 million tons ~ 6.0 million tons Geographic harvest ~ 70% of volume in South ~ 70% of volume in Sou
Slide 14: Appendix
APPENDIX a4 2019 4\ PotiatchDeltic
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2018 2019 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Operating Income Timberlands $ 29.0 $ 29.1 $ 46.0 $ 17.5 $ 121.6 $ 16.6 $ 15.7 $ 30.9 $ 24.7 $ 87.9 Wood Products 25.6 45.5 40.6 (3.2) 108.5 2.2 (7.9) (0.2) (4.7) (10.6) Real Estate 4
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non - GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2018 2019 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL TIMBERLANDS Northern Timberlands operating income $ 26.2 $ 26.0 $ 39.6 $ 13.6 $ 105.4 $ 11.7 $ 10.1 $ 22.4 $ 18.4 $ 62.6 Depreciation, depletion and amortization 2.1 1.9
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non - GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2018 2019 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL TOTAL ADJUSTED EBITDDA Net Income (GAAP) $ 14.6 $ 46.1 $ 60.4 $ 1.8 $ 122.9 $ 6.6 $ 17.1 $ 20.6 $ 11.4 $ 55.7 Interest expense, net 5.6 9.4 10.1 10.1 35.2 5.4 7.9 8.5 8.6 30.4
Slide 18: Statistics: Timberlands and Wood Products
STATISTICS: TIMBERLANDS AND WOOD PRODUCTS unaudited 2018 2019 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 448,782 377,636 500,138 387,598 1,714,154 373,865 324,556 529,030 472,620 1,700,071 Pulpwood 45,428 31,389 37,953 31,978 146,749 48,643 30,520 39,37
Slide 19: Statistics: Real Estate
STATISTICS: REAL ESTATE unaudited 2018 2019 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL RURAL Acres Sold HBU Development 1,796 1,133 1,136 1,326 5,391 759 2,497 975 846 5,077 Recreation Real Estate 3,461 2,280 2,024 1,160 8,925 1,143 1,637 5,037 2,152 9,969 Non-Strategic Timberlands 887 8,158 — 80 9,125 440
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, gains and losses on disposi
Slide 21: 4Q 2019 Earnings
4Q 2019 JERALD W. RICHARDS EARNI NGS Vice President and Chief Financial Officer 509-835-1521 F E B R UA RY 4 , 2 0 2 0 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com