21 slides from Rayonier Inc. Reit's earnings presentation, Feb 5, 2019
Slide 1: Q4 2018 Earnings
Q4 2018 Earnings February 5, 2019
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, our expectations regarding the U.S. housing market; strong
Slide 3: Key Highlights – Q4 2018
Key Highlights – Q4 2018 Financial Performance Strategy Capital Allocation (1) Adjusted EBITDDA margin of 17% Strong lumber fundamentals Closed Deltic merger on Feb 20, 2018 • Adjusted EBITDDA of $36.4 million in Q4 • Housing demand supported by • Issued 22 million shares @ $52/share 2018 demographi
Slide 4: Q4 2018 Consolidated Results
Q4 2018 Consolidated Results Adjusted EBITDDA – Q3 2018 to Q4 2018 Variance ($ in millions) $101.8 ($28.9) ($42.9) $5.2 $0.2 $1.0 $36.4 Q3 2018 Resource Wood Products Real Estate Corporate Eliminations Q4 2018 Key Consolidated Highlights: Adjusted EBITDDA decreased $65.4 million from Q3 2018 levels
Slide 5: Q4 2018 Resource Results
Q4 2018 Resource Results Adjusted Segment EBITDDA – Q3 2018 to Q4 2018 Variance ($ in millions) $58.7 ($25.6) ($6.0) $2.4 $0.8 $0.3 $29.8 ($0.8) Q3 2018 Sales Price & Mix Production Volume Other Revenue Log & Haul Price Forest Mgmt/Roads Indirects & Overhead Q4 2018 Variance Variance Key Resource Hi
Slide 6: Q4 2018 Resource Results – Northern Region
Q4 2018 Resource Results Northern Region Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $140 700 $45 $42 70 $40 60 $120 $96 600 Volumes: Tons (thousands) Volumes: Tons (thousands) $35 $100 500 50 $30 Price: $/Ton Price: $/Ton 388 $80 400 $25 40 32 $60 300 $20 30 $15 $40 200
Slide 7: Q4 2018 Resource Results – Southern Region
Q4 2018 Resource Results Southern Region Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $50 600 $35 600 $43 $30 500 $30 500 Volumes: Tons (thousands) $40 468 Volumes: Tons (thousands) 409 $25 400 400 Price: $/Ton Price: $/Ton $30 $20 300 300 $20 $15 200 200 $10 $10 100 $5 10
Slide 8: Q4 2018 Wood Products Results
Q4 2018 Wood Products Results Adjusted Segment EBITDDA – Q3 2018 to Q4 2018 Variance ($ in millions) $46.5 ($32.8) ($3.5) ($2.4) ($3.4) ($0.8) $3.6 Q3 2018 Price Manufacturing Cost Log Cost Residuals & Panels Other Q4 2018 Lumber Key Wood Products Highlights: Segment Adjusted EBITDDA decreased $42.9
Slide 9: Q4 2018 Wood Products Results – Lumber Pricing and Shipments
Q4 2018 Wood Products Results Lumber Pricing and Shipments Wood Products Adjusted EBITDDA $550 400 $60 ($ in millions) $500 $367 350 $50 265 300 Shipments (MMBF) $450 Price: $/ MBF 250 $40 $400 200 $30 $350 150 $20 $300 100 $250 $10 $4 50 $200 - $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: Q4 2018 Real Estate Results
Q4 2018 Real Estate Results Adjusted Segment EBITDDA – Q3 2018 to Q4 2018 Variance ($ in millions) $7.3 $0.3 ($0.5) $12.6 $7.4 ($1.9) Q3 2018 Rural Sales Development Sales Other, net SG&A Q4 2018 Key Real Estate Highlights: Segment Adjusted EBITDDA increased $5.2 million from Q3 2018 levels Real Est
Slide 11: Q4 2018 Real Estate Results – Rural and Development
Q4 2018 Real Estate Results Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price $3,500 100 13,500 $140,000 Legacy Deltic 90 $3,000 Average Price: $ / Acre $2,449 11,000 $120,000 80 67 Average Price: $ / Lot Residential Lots Sold $2,500 70 $100,000 60 Acres Sold $2,00
Slide 12: Favorable Capital Structure
Favorable Capital Structure $250 Debt Maturities(1) ($ in millions) $200 $176 $150 $150 $100 $100 $100 $50 $40 $46 $40 $43 $40 $28 $0 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 (1) Proforma Unaudited, $ in millions December 31, 2018 Key Highlights: Market capitalization (2) $ 2,492 Re
Slide 13: Outlook
Outlook RESOURCE Q1 2019 FY 2019 Harvest volume 1.1 ̶ 1.2 million tons 6.0 ̶ 6.1 million tons Geographic harvest ~ 65% of volume in South 70% of volume in South Sawlog mix North: ~ 90% sawlogs North: ~ 90% sawlogs South: just over 50% sawlogs South: just over 50% sawlogs Sawlog pricing North: slight
Slide 14: Appendix
4\PotlatchDeltic Q4 2018 Earnings
Slide 15: Total Company Summary
Total Company Summary (Dollars in millions except per-share amounts - unaudited) 2017 2018 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Operating income: Resource $ 14.9 $ 19.6 $ 41.8 $ 29.9 $ 106.2 $ 29.0 $ 29.1 $ 46.0 $ 17.5 $ 121.6 Wood Products(1) 9.0 24.9 19.5 19.7 73.1 25.6 45.5 40.6 (3.3) 108.4 Real E
Slide 16: Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA
Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA (Dollars in millions - unaudited) 2017 2018 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Resource Northern Operating Income $ 13.4 $ 17.8 $ 36.8 $ 26.0 $ 94.0 $ 26.2 $ 26.0 $ 39.6 $ 13.6 $ 105.4 Depreciation, depletion and amortization 1.8 1.7 2.2 2
Slide 17: Statistics: Resource and Wood Products
Statistics: Resource and Wood Products (unaudited) 2017 2018 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Resource Fee Volumes (tons) Northern Region Sawlog 354,104 333,926 559,580 463,978 1,711,588 448,782 377,636 500,138 387,598 1,714,154 Pulpwood 47,785 40,054 33,742 24,821 146,402 45,428 31,389 37,953 31
Slide 18: Statistics: Real Estate
Statistics: Real Estate (unaudited) 2017 2018 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Real Estate Rural Acres Sold HBU Development 4,628 700 628 484 6,440 1,796 1,133 1,136 1,326 5,391 Rural Real Estate 1,740 4,523 1,207 2,523 9,993 3,461 2,280 2,024 1,160 8,925 Non-Strategic Timberlands 197 186 191 — 5
Slide 19: 2018 Share Count Changes
2018 Share Count Changes (unaudited) In Q1 2018, 22 million shares were issued in conjunction with acquisition of Deltic Timber In November of 2018, 4.8 million shares were issued as part of the $222 million special distribution Thousands 2018 Total Common shares outstanding Q1 Q2 Q3 Q4 2018 Beginni
Slide 20: Definitions
Definitions Adjusted EBITDDA is a non-GAAP measure and is calculated as net income (loss) adjusted for interest expense, provision (benefit) for income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, gains and
Slide 21: Michael J. Covey, Eric J. Cremers, Jerald W. Richards
Michael J. Covey Chairman and Chief Executive Officer Eric J. Cremers President and Chief Operating Officer Jerald W. Richards Vice President and Chief Financial Officer PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com