21 slides from Rayonier Inc. Reit's earnings presentation, Jul 30, 2024
Slide 1: Q2 2024 Earnings
Q2 2024 EARNINGS July 30, 2024
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 Securities Litigation Reform Act of 1995 as amended, including without limitation, our expectations regarding the company’s revenu
Slide 3: Key Highlights Q2 2024
Record annual Total Adjusted EBITDDA of $653 million far exceeded 2020’s record financial KEY HIGHLIGHTS performance. We executed on our disciplined capital allocation strategy and are well positioned Q2 2024 to continue to drive shareholder value with our strong liquidity. STRATEGY PERFORMANCE CAPI
Slide 4: Consolidated Results
Q2 2024 Total Adjusted EBITDDA of $103.2 million is driven by rural real C O N S O L I D AT E D estate activity, including a $57 million Southern timberland sale. R E S U LT S Total Adjusted EBITDDA – Q1 2024 to Q2 2024 Variance Key Consolidated Highlights: Total Adjusted EBITDDA increased $73.5 mil
Slide 5: Timberlands Results
Q2 2024 Timberlands Adjusted EBITDDA of $34.2 million reflects T I M B E R L A N D S R E S U LT S higher Northern sawlog prices offset by seasonally higher forest management costs. Timberlands Adjusted EBITDDA – Q1 2024 to Q2 2024 Variance Key Timberlands Highlights: Timberlands Adjusted EBITDDA dec
Slide 6: Timberlands Northern Region
T I M B E R L A N D S R E S U LT S N O RT H E R N R E G I O N Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $250 500 $60 $50 Volume: Tons (thousands) Volume: Tons (thousands) $200 359 400 $40 Price: $ / Ton Price $ / Ton $150 300 $36 $30 6 $113 $100 200 $20 $50 100 $10 $- 0
Slide 7: Timberlands Southern Region
T I M B E R L A N D S R E S U LT S SOUTHERN REGION Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume 729 800 $35 700 $50 700 $31 $47 Volume: Tons (thousands) $30 600 496 Volume: Tons (thousands) $40 600 $25 500 500 Price $ / Ton Price: $ / Ton $30 $20 400 400 300 $15 300 $20 20
Slide 8: Wood Products Results
Q2 2024 Wood Products Adjusted EBITDDA was impacted by lower lumber WOOD PRODUCTS prices and higher per-unit manufacturing costs. R E S U LT S Wood Products Adjusted EBITDDA – Q1 2024 to Q2 2024 Variance (Primarily Waldo) Lumber Key Wood Products Highlights: Wood Products Adjusted EBITDDA decreased
Slide 9: Wood Products
WOOD PRODUCTS R E S U LT S Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 350 $180 $1,000 286 300 Shipments (MMBF) $800 $140 Price: $/ MBF 250 $600 200 $100 $400 $423 150 100 $60 $200 50 $20 $(6.8) $- 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $(20) Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 10: Real Estate Results
Real Estate Adjusted EBITDDA of $89.6 million reflects robust rural real estate activity, including the $57 million Southern timberland sale along with R E A L E S TAT E R E S U LT S one commercial sale in Chenal Valley. Rural real estate sales activity remains strong. Real Estate Adjusted EBITDDA –
Slide 11: Real Estate
R E A L E S TAT E R E S U LT S Rural Acres Sold and Average Price Residential Lots Sold and Average Price 43,121 $5,250 $140,000 $4,500 $120,000 Average Price: $ / Acre Average Price: $ / Lot Residential Lots Sold $100,000 $112,721 $3,750 Acres Sold $3,000 $80,000 $2,250 $60,000 $1,968 $1,500 $40,00
Slide 12: Favorable Capital Structure
During the first half of 2024, we returned $96 million to shareholders, including FAV O R A B L E C A P I TA L repurchasing $25 million of shares in the second quarter. Our strong balance sheet STRUCTURE and nearly $500 million of liquidity provide a solid foundation to continue growing shareholder
Slide 13: Outlook
We anticipate Q3 2024 Total Adjusted EBITDDA will be lower than Q2 2024 primarily OUTLOOK due to a decline in rural real estate activity. TIMBERLANDS Q3 2024 FY 2024 Harvest Volume 1.9 – 2.0 million tons ~7.6 million tons Geographic harvest ~77% of volume in South ~80% of volume in South Sawlog mix
Slide 14: Appendix
APPENDIX Q2 2024 le i it ie a a
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Operating income (loss): Timberlands $ 26.2 $ 13.4 $ 22.9 $ 13.9 $ 76.4 $ 17.1 $ 17.4 $ 34.5 Wood Products (11.1) 1.1 4.2 (17.7) (23.5) (12.7) (18.9) (31.6) Real Estate 8.7 7.2 7.9 12.0 35.
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non–GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Timberlands Northern Timberlands operating income $ 17.2 $ 8.7 $ 15.7 $ 8.3 $ 49.9 $ 9.3 $ 11.3 $ 20.6 Depreciation, depletion and amortization 2.2 1.9 1.9 1.8 7.8 1.8 1.9 3.7 N
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non–GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Total Adjusted EBITDDA Net income (loss) (GAAP) $ 16.3 $ 22.3 $ 23.6 $ (0.1) $ 62.1 $ (0.3) $ 13.7 $ 13.4 Interest expense, net 0.2 7.6 8.0 8.4 24.2 (0.3) 8.7 8.4 Income taxes (3.5) 6
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Timberlands Fee Volumes (tons) Northern Region Sawlog 470,790 319,173 376,607 328,574 1,495,144 327,423 359,311 686,734 Pulpwood 8,029 7,989 7,081 3,703 26,802 1,863 5,889 7,752 Total 478,819 327,162 383,688 332,277 1,521,946
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2023 2024 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Wood Products Lumber shipments (MBF) 261,633 280,251 276,071 285,134 1,103,089 271,148 285,650 556,798 Lumber sales prices ($ per MBF) $ 435 $ 476 $ 481 $ 415 $ 452 $ 430 $ 423 $ 427 Real Estate Rural Revenue
Slide 20: Definitions
D E F I N I TI O NS Total Adjusted EBITDDA is a non-GAAP measure and is calculated as net income (loss) adjusted for interest expense, net, income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefits, pension settlement
Slide 21: Q2 2024 Earnings
Q2 2024 WAYNE WASECHEK EARNINGS Vice President and Chief Financial Officer July 30, 2024 509-835-1521 PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com