22 slides from Rayonier Inc. Reit's earnings presentation, Oct 29, 2019
Slide 1: Q3 2019 Earnings
Q3 2019 Earnings October 29, 2019
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 – Q3 2019
Key Highlights – Q3 2019 Performance Strategy Capital Allocation (1) Total Adjusted EBITDDA: Solid long-term lumber fundamentals Share Repurchases: • $55.0 million • Housing demand supported by • 686,240 shares YTD at an average of • Total Adjusted EBITDDA margin of 24% demographics $36.65/share - $
Slide 4: Q3 2019 Consolidated Results
Q3 2019 Consolidated Results Total Adjusted EBITDDA – Q2 2019 to Q3 2019 Variance ($ in millions) $7.9 ($16.6) $16.9 $2.3 ($4.5) $55.0 $49.0 Q2 2019 Timberlands Wood Products Real Estate Corporate Eliminations Q3 2019 Key Consolidated Highlights: Total Adjusted EBITDDA increased $6.0 million from Q2
Slide 5: Q3 2019 Timberlands Results
Q3 2019 Timberlands Results Timberlands Adjusted EBITDDA – Q2 2019 to Q3 2019 Variance ($ in millions) $8.5 ($3.5) ($0.5) $43.0 $12.4 $26.1 Q2 2019 Harvest Volume Sales Price & Mix Log & Haul Forest Mgmt/Roads Q3 2019 Key Timberlands Highlights: Timberlands Adjusted EBITDDA increased $16.9 million f
Slide 6: Q3 2019 Timberlands Results – Northern Region
Q3 2019 Timberlands Results Northern Region Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $140 600 $45 60 529 $38 $120 $40 Volume: Tons (thousands) 500 50 Volume: Tons (thousands) $100 $35 $100 39 400 $30 40 Price: $/Ton Price: $/Ton $80 31 300 $25 30 $60 $20 200 $15 20 $40
Slide 7: Q3 2019 Timberlands Results – Southern Region
Q3 2019 Timberlands Results Southern Region Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $50 $48 600 $35 $33 600 496 $30 475 500 500 Volume: Tons (thousands) $40 Volume: Tons (thousands) $25 400 400 Price: $/Ton Price: $/Ton $30 $20 300 300 $20 $15 200 200 $10 $10 100 $5 1
Slide 8: Q3 2019 Wood Products Results
Q3 2019 Wood Products Results Wood Products Adjusted EBITDDA – Q2 2019 to Q3 2019 Variance ($ in millions) $3.9 $0.2 ($0.5) $5.9 $3.9 ($2.0) ($3.8) $4.2 Q2 2019 Price Manufacturing Cost Log Cost Inventory Charge Residuals & Panels Other Q3 2019 Lumber Key Wood Products Highlights: Wood Products Adju
Slide 9: Q3 2019 Wood Products Results
Q3 2019 Wood Products Results Lumber Pricing and Shipments Wood Products Adjusted EBITDDA $550 400 $58 ($ in millions) 299 $500 350 $363 $48 300 Shipments (MMBF) $450 Price: $/ MBF 250 $38 $400 200 $28 $350 150 $18 $300 100 $250 $8 $5.9 50 $200 - -$2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q
Slide 10: Q3 2019 Real Estate Results
Q3 2019 Real Estate Results Real Estate Adjusted EBITDDA – Q2 2019 to Q3 2019 Variance ($ in millions) $31.3 $20.6 $3.1 $0.9 $14.7 Q2 2019 Rural Sales Development Sales Other, net Q3 2019 Key Real Estate Highlights: Real Estate Adjusted EBITDDA decreased $16.6 million as the sale of a former Deltic
Slide 11: Q3 2019 Real Estate Results
Q3 2019 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 $110,504 80 Average Price: $ / Acre 11,000 $120,000 Average Price: $ / Lot Residential Lots Sold $2,500 $1,557 70 $100,000 6,225 8,500 6
Slide 12: Favorable Capital Structure
Favorable Capital Structure $250 Debt Maturities ($ 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 Unaudited, $ in millions September 30, 2019 Key Highlights: (1) Market capitalization $ 2,762 Net debt 662 Inve
Slide 13: Q4 2019 Outlook
Q4 2019 Outlook TIMBERLANDS Harvest volume 1.5 ̶ 1.6 million tons Geographic harvest ~ 70% of volume in South Sawlog mix North: ~ 95% sawlogs South: ~ 50% sawlogs Sawlog pricing North: seasonally heavier logs South: WOOD PRODUCTS Lumber shipments ~290 MMBF Lumber prices flat REAL ESTATE Rural Develo
Slide 14: Appendix
4\PotlatchDeltic. Appendix
Slide 15: Total Company Summary
Total Company Summary (Dollars in millions except per-share amounts – unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total Operating income: Timberlands $ 29.0 $ 29.1 $ 46.0 $ 17.5 $ 121.6 $ 16.6 $ 15.7 $ 30.9 $ 63.2 Wood Products 25.6 45.5 40.6 (3.3) 108.4 2.2 (7.9) (0.2) (5.9) Real Estate 4.3 9.3
Slide 16: Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA
Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA (in millions – unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total Timberlands Northern Timberlands Operating Income $ 26.2 $ 26.0 $ 39.6 $ 13.6 $ 105.4 $ 11.7 $ 10.1 $ 22.4 $ 44.2 Depreciation, depletion and amortization 2.1 1.9 2.3 2.0
Slide 17: Non-GAAP Reconciliation: Total Adjusted EBITDDA and CAD
Non-GAAP Reconciliation: Total Adjusted EBITDDA and Cash Available for Distribution (in millions – unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total Total Adjusted EBITDDA Net Income (GAAP) $ 14.6 $ 46.1 $ 60.4 $ 1.8 $ 122.9 $ 6.6 $ 17.1 $ 20.6 $ 44.3 Interest expense, net 5.6 9.4 10.1 10.1 35.2
Slide 18: Statistics: Timberlands and Wood Products
Statistics: Timberlands and Wood Products (unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 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 1,227,451 Pulpwood 45,428 31,389 37,953 31,978 146,749 48,643 30,520 39,371 118,534
Slide 19: Statistics: Real Estate
Statistics: Real Estate (unaudited) 2018 2019 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total Real Estate Rural Acres Sold HBU Development 1,796 1,133 1,136 1,326 5,391 759 2,497 975 4,231 Recreation Real Estate 3,461 2,280 2,024 1,160 8,925 1,143 1,637 5,037 7,817 Non-Strategic Timberlands 887 8,158 — 80 9,125 44
Slide 20: Share Count Changes
Share Count Changes (unaudited) In Q1 2018, 22 million shares were issued to complete the Deltic Timber merger In November of 2018, 4.8 million shares were issued as part of the $222 million special distribution Thousands 2018 2019 Common shares outstanding Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total Beginning
Slide 21: 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 22: Jerald W. Richards, Vice President and Chief Financial Officer
Jerald W. Richards Vice President and Chief Financial Officer 509-835-1521 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com