21 slides from Rayonier Inc. Reit's earnings presentation, Apr 28, 2020
Slide 1: Q1 2020 Earnings
Q1 2020 EARNI NG S APRIL 28, 2020
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 Q1 2020
KEY HIGHLIGHTS Our three business segments performed well in a favorable economic environment in Q1. Q1 2020 Our strong liquidity positions us to weather the shift in our markets caused by COVID-19. STRATEGY PERFORMANCE CAPITAL ALLOCATION Leverage to lumber prices Total Adjusted EBITDDA:1 Returned $
Slide 4: Consolidated Results
Q1 2020 Total Adjusted EBITDDA of $48 million reflects seasonally lower CONSOLIDATED RESULTS harvest volumes, higher lumber prices and shipments, and seasonally lower Real Estate sales. Total Adjusted EBITDDA – Q4 2019 to Q1 2020 Variance $11.4 $46.6 $0.7 $47.6 ($3.0) ($6.7) ($1.4) $ MILLIONS Q4 201
Slide 5: Timberlands Results Q1 2020
TIMBERLANDS RESULTS Q1 2020 Total Adjusted EBITDDA of $35 million is a strong result in what is Q1 2020 typically a seasonally weaker quarter. The amount is 30% higher than Q1 2019. Timberlands Adjusted EBITDDA – Q4 2019 to Q1 2020 Variance $ MILLIONS ($2.8) ($0.9) $38.0 $0.1 $0.6 $35.0 Q4 2019 Harv
Slide 6: Timberlands Results Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Q1 2020 Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $45 60 $140 600 $38 $40 50 Volume: Tons (thousands) $120 434 500 $35 Volume: Tons (thousands) $95 38 $100 $30 40 Price: $/Ton 400 $25 Price: $/Ton $80 30 300 $20 $60 200 $15 20 $40 $10
Slide 7: Timberlands Results Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Q1 2020 Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $60 548 600 $35 600 $44 $31 $50 500 $30 500 Volume: Tons (thousands) Volume: Tons (thousands) $25 $40 400 367 400 Price: $/Ton $20 Price: $/Ton $30 300 300 $15 $20 200 200 $10 $10 100
Slide 8: Wood Products Results
Our mills operated well, allowing them to take advantage of favorable WOOD PRODUCTS conditions that existed for most of Q1. Operating hours were reduced RESULTS beginning mid-March. Wood Products Adjusted EBITDDA – Q4 2019 to Q1 2020 Variance $0.7 $13.2 $ MILLIONS $2.5 $8.4 $0.1 $0.5 ($0.8) $1.8 Man
Slide 9: Wood Products Results Q1 2020
WOOD PRODUCTS RESULTS Q1 2020 Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $550 400 350 $60 $500 283 300 $50 Shipments (MMBF) $450 $396 Price: $/MBF 250 $40 $400 200 $30 $350 150 $20 $13.2 $300 100 $10 $250 50 $0 $200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 10: Real Estate Results
REAL ESTATE RESULTS Real Estate sold more rural acres in Q1 which was more than offset by Q1 2020 seasonally lower Chenal Valley residential lot sales and no commercial land sales. Real Estate Adjusted EBITDDA – Q4 2019 to Q1 2020 Variance $ MILLIONS $1.7 $14.0 $7.3 ($8.2) ($0.2) Q4 2019 Rural Sales
Slide 11: Real Estate Results Q1 2020
REAL ESTATE RESULTS Q1 2020 Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price Legacy Deltic $3,500 100 13,500 $140,000 90 $3,000 Average Price: $/Acre 11,000 $120,000 80 Average Price: $/Lot Residential Lots Sold $2,500 $99,652 70 $100,000 Acres Sold $2,000 $1,643
Slide 12: Favorable Capital Structure
FAVORABLE CAPITAL Our strong balance sheet and ample liquidity provide the flexibility to manage STRUCTURE through the effects of COVID-19. 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 | Subject to
Slide 13: Outlook Q2 2020
OUTLOOK Our 2020 Outlook has been revised to reflect our current view of the shift in business Q2 2020 conditions caused by COVID-19. TIMBERLANDS Q2 FY 2020 Harvest volume 1.0 - 1.2 million tons 5.5 - 5.8 million tons Geographic harvest ~ 70% of volume in South 70% of volume in South Sawlog mix Nort
Slide 14: Appendix
APPENDIX Q1 2020 4\ PotiatchDeltic
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Operating (loss) Income Timberlands $ 16.6 $ 15.7 $ 30.9 $ 24.7 $ 87.9 $ 22.4 Wood Products 2.2 (7.9) (0.2) (4.7) (10.6) 7.8 Real Estate 0.9 23.7 9.3 7.4 41.3 0.6 Corporate (11.0) (9.5) (7.2) (9.6)
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non - GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 TIMBERLANDS Northern Timberlands operating income $ 11.7 $ 10.1 $ 22.4 $ 18.4 $ 62.6 $ 17.8 Depreciation, depletion and amortization 2.0 1.8 2.0 2.2 8.0 2.1 Northern Timberlands Adjust
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non - GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 TOTAL ADJUSTED EBITDDA Net (loss) Income (GAAP) $ 6.6 $ 17.1 $ 20.6 $ 11.4 $ 55.7 $ (16.8) Interest expense, net 5.4 7.9 8.5 8.6 30.4 3.7 Income taxes 1.6 (1.0) 1.3 (0.9) 1.0 (10.9) Deprecia
Slide 18: Statistics: Timberlands and Wood Products
STATISTICS: TIMBERLANDS AND WOOD PRODUCTS unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 373,865 324,556 529,030 472,620 1,700,071 433,870 Pulpwood 48,643 30,520 39,371 29,816 148,350 37,801 Stumpage 7,376 — 602 — 7,978 23,178 Total 429,884 355,076 569
Slide 19: Statistics: Real Estate
STATISTICS: REAL ESTATE unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 RURAL Acres Sold HBU Development 759 2,497 975 846 5,077 630 Recreation Real Estate 1,143 1,637 5,037 2,152 9,969 880 Non-Strategic Timberlands 440 8,241 213 — 8,894 2,929 2,342 12,375 6,225 2,998 23,940 4,439 Revenues by Product Type
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: Q1 2020 Earnings
Q1 2020 JERALD W. RICHARDS E A R N I N GS Vice President and Chief Financial Officer 509-835-1521 APRIL 28, 2020 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com