19 slides from Rayonier Inc. Reit's earnings presentation, Jul 28, 2015
Slide 1: 2Q 2015 Earnings Release
Michael J. Covey Chairman and Chief Executive Officer 2Q 2015 Earnings Release Eric J. Cremers President and Chief Operating Officer Potlatch Corporation Jerald W. Richards Vice President and Chief Financial Officer July 28, 2015
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, statements about our expectations regarding the company’s
Slide 3: 2Q 2015: Total Company Summary
2Q 2015: Total Company Summary (unaudited, $ in millions, except per share amounts) 2014 2015 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD Operating income Resource $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 15.0 $ 8.8 $ 27.0 $ 23.8 Wood Products 12.7 14.9 15.8 9.1 3.5 (2.0) 27.6 1.5 Real Estate 8.3 12.4 4.6 1.6 1.6 8.5
Slide 4: Resource: Segment Summary
RESOURCE: Segment Summary Northern sawlog volumes were seasonally lower due to spring break up Northern sawlog prices increased $6 per ton as a result of significantly higher cedar log prices Southern sawlog and hardwood prices were slightly higher as unseasonably wet weather constrained suppl
Slide 5: Resource: Northern Region – Volume and Pricing
RESOURCE: Northern Region – Volume and Pricing Sawlog Pulpwood 900 $100 140 $50 800 120 $90 $45 700 100 Tons (thousands) Tons (thousands) 600 $80 $40 $ / Ton $ / Ton 500 80 $70 400 60 $35 300 $60 40 200 $30 $50 20 100 0 $40 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 6: Resource: Southern Region – Volume and Pricing
RESOURCE: Southern Region – Volume and Pricing Sawlog Pulpwood 300 $60 300 $50 250 250 $55 $45 Tons (thousands) Tons (thousands) 200 200 $50 $40 $ / Ton $ / Ton 150 150 $45 $35 100 100 $40 $30 50 50 0 $35 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 20
Slide 7: Wood Products: Segment Summary
WOOD PRODUCTS: Segment Summary Lumber prices continued to decline into May and recovered sharply in the West in June Lumber shipments were down slightly in Q2 Two of four major 2015 capital projects were completed Q2 $25 25% 21% 21% $20 $18.9 20% Operating Income (millions) $19.7 16% 15% $15 1
Slide 8: Wood Products: Lumber – Sales Prices and Shipments
WOOD PRODUCTS: Lumber – Sales Prices and Shipments 200 $550 173 176 172 163 $500 156 156 Shipment Volumes (millions of board ft) 153 152 154 152 150 $450 $423 $412 $408 $402 $407 $393 $ / MBF $386 $400 $374 100 $363 $351 $350 $300 50 $250 0 $200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2Q
Slide 9: Real Estate: Segment Summary
REAL ESTATE: Segment Summary Strength in Minnesota rural recreational real estate market led to record number of quarterly transactions Two commercial real estate sites were sold in Q2 2015 Q2 2014 included a 9,400 acre conservation sale in Minnesota $20 90% 79% 79% 73% 75% 80% 71% Operating I
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Amounts as of June 30, 2015: Funds Available for Distribution(3) (millions) Unaudited, $ in millions $150 Cash and short-term investments $ 10.6 $100 $98 Long-term debt $ 629.3 $77 Pension & other postretirement liability $ 115.1 $58 $61 $60 $53 $50 $52 $50 Undrawn revolver $ 23
Slide 11: Outlook
OUTLOOK Harvest 1.5 – 1.6 million tons Q3 Slightly more than half of the volume in the North Sawlogs ≈50% of Southern volume and ≈90% of Northern volume RESOURCE Sawlog prices up almost 5% in the North Higher sawlog price in the South due to seasonally higher mix of hardwood Lumber shipm
Slide 12: Appendix
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Slide 13: Statistics: Resource
STATISTICS: Resource (unaudited) 2014 2015 2014 2015 Fee Volumes (tons) Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD Northern Region Sawlog 443,084 279,831 720,460 538,738 451,548 287,979 722,915 739,527 Pulpwood 60,579 30,124 62,340 48,883 47,840 31,284 90,703 79,124 Stumpage 10,968 2,475 1,862 1,007 16,903 3,277 13,
Slide 14: Statistics: Wood Products & Real Estate
STATISTICS: Wood Products & Real Estate (unaudited) 2014 2015 2014 2015 Wood Products Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD Lumber Shipments (MBF) 155,596 176,046 171,818 156,123 154,206 152,071 331,642 306,277 Lumber Sales Prices ($ per MBF) $ 402 $ 407 $ 408 $ 393 $ 386 $ 351 $ 403 $ 368 Real Estate Acres Sol
Slide 15: EBITDDA Reconciliation
EBITDDA RECONCILIATION (unaudited, $ in millions) 2014 2015 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD GAAP net income $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 5.7 $ 0.7 $ 36.6 $ 6.4 Interest expense, net (1) 5.5 5.5 5.5 6.4 8.1 8.0 11.0 16.1 Income tax provision 5.5 7.9 6.2 0.1 0.3 (1.4) 13.
Slide 16: EBITDDA Reconciliation: By Segment
EBITDDA RECONCILIATION: By Segment (unaudited, $ in millions) 2014 2015 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD Resource Operating Income $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 15.0 $ 8.8 $ 27.0 $ 23.8 Depreciation, depletion and amortization 3.9 2.8 6.0 5.1 6.2 4.8 6.7 11.0 Resource EBI
Slide 17: FAD Reconciliation
FAD RECONCILIATION (unaudited, $ in millions) 2014 2015 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Q2 YTD YTD GAAP net income $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 5.7 $ 0.7 $ 36.6 $ 6.4 Depreciation, depletion & amortization(1) 6.1 4.9 8.3 7.4 8.5 7.1 11.0 15.6 Basis of real estate sold 4.6 2.2 0.5
Slide 18: Operating Working Capital Reconciliation
OPERATING WORKING CAPITAL RECONCILIATION (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Q2 Current assets $ 139.1 $ 145.1 $ 144.1 $ 93.7 $ 89.3 $ 90.3 Less: Current liabilities (49.5) (54.9) (60.0) (72.2) (81.5) (104.0) Working capital 89.6 90.2 84.1 21.5 7.8 (13.7) Les
Slide 19: Sth ei ie Rc,
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