22 slides from Rayonier Inc. Reit's earnings presentation, Jul 26, 2022
Slide 1: Q2 2022 Earnings
Q2 2022 EARNINGS July 26, 2022
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 2022
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 to Q2 2022 continue to drive shareholder value with our strong liquidity. STRATEGY PERFORMANCE CAPI
Slide 4: CatchMark Merger Update
Record annual Total Adjusted EBITDDA of $653 million far exceeded 2020’s record financial CATCHMARK MERGER performance. We executed on our disciplined capital allocation strategy and are well positioned to The combination creates significant strategic and financial opportunities beyond what could be
Slide 5: Consolidated Total Adjusted EBITDDA Variance
C O N S O L I D AT E D Q2 2022 Total Adjusted EBITDDA of $175.1 million reflects lower, but still R E S U LT S attractive lumber prices and seasonally lower harvest volumes. Total Adjusted EBITDDA – Q1 2022 to Q2 2022 Variance $245.6 ($18.5) ($42.8) ($8.3) ($4.3) $3.4 $175.1 $ MILLIONS Q1 Q1 2022 20
Slide 6: Timberlands
Timberlands’ Adjusted EBITDDA of $57.9 million reflects lower harvest T I M B E R L A N D S R E S U LT S volumes and modestly higher indexed Idaho sawlog prices. Timberlands Adjusted EBITDDA – Q1 2022 to Q2 2022 Variance $76.4 ($17.7) $ MILLIONS $4.7 ($2.1) ($2.8) ($0.6) $57.9 Q4Q12021 2022 Harvest
Slide 7: 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 700 $60 40 $52 Volume: Tons (thousands) Volume: Tons (thousands) $280 $228 600 35 $240 $50 30 Price: $/Ton Price: $/Ton 500 $200 $40 25 $160 400 276 $30 20 $120 300 1
Slide 8: 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 $50 $48 700 $35 $32 600 Volume: Tons (thousands) Volume: Tons (thousands) 600 $30 500 $40 508 500 $25 377 400 Price: $/Ton Price: $/Ton $30 400 $20 300 $20 300 $15 200 200 $10 $
Slide 9: Wood Products
WOOD PRODUCTS Lumber prices receded from near historic levels but remain well above long- term averages. R E S U LT S Wood Products Adjusted EBITDDA – Q1 2022 to Q2 2022 Variance $150.0 ($49.3) $ MILLIONS $0.1 ($4.8) $7.9 $3.3 $107.2 Q1 Q1 2022 2022 Price Price Manufacturing Manufacturing Cost LogCo
Slide 10: Wood Products
WOOD PRODUCTS R E S U LT S Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $200 $1,200 400 $1,100 350 $1,000 $865 $150 300 $900 254 $107.2 Shipments (MMBF) Price: $/MBF $800 250 $700 200 $100 $600 150 $500 $50 100 $400 $300 50 $200 - $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q1
Slide 11: Real Estate
Real Estate Adjusted EBITDDA declined primarily due to lower rural land R E A L E S TAT E R E S U LT S sales and fewer Chenal Valley residential lot sales. Real Estate Adjusted EBITDDA – Q1 2022 to Q2 2022 Variance $30.1 ($5.6) $ MILLIONS ($1.7) ($1.0) $21.8 Q1 Q4 2022 2021 Rural Sales Rural Sales D
Slide 12: Real Estate
R E A L E S TAT E R E S U LT S Rural – Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price 20,000 + 100 $4,500 $140,000 $134,373 17,500 90 $4,000 $120,000 80 Residential Lots Sold Average Price: $ / Lot Average Price: $ / Acre $3,500 15,000 12,749 70 $100,000 Acres Sold $3,0
Slide 13: Favorable Capital Structure
Our strong balance sheet and ample liquidity of $810 million provide a solid FAV O R A B L E C A P I TA L foundation to execute on our disciplined and opportunistic capital allocation STRUCTURE strategy. We expect to distribute a special dividend to shareholders in Q4 2022. Debt Maturities $200 $190
Slide 14: Outlook
We expect lumber prices to continue to remain higher than long-term OUTLOOK averages for the remainder of 2022. TIMBERLANDS Q3 2022 FY 2022 Harvest Volume 1.7-1.9 million tons ~6.1 million tons Geographic harvest ~65% of volume in South ~70% of volume in South Sawlog mix North: ~95% sawlogs North: ~
Slide 15: Appendix
APPENDIX Q2 2022 z Ee: 4\PotlatchDeltic
Slide 16: Total Company Summary
TOTAL COMPANY in millions except per-share amounts – unaudited SUMMARY 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Operating income: Timberlands $ 56.5 $ 66.7 $ 64.1 $ 30.2 $ 217.5 $ 64.2 $ 46.4 $ 110.6 Wood Products 119.3 197.6 16.6 29.7 363.2 143.1 99.0 242.1 Real Estate 7.5 4.8 2.2 5.2 19.7 19.0 14.4
Slide 17: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non – GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL TIMBERLANDS Northern Timberlands operating income $ 52.2 $ 64.4 $ 57.2 $ 23.7 $ 197.5 $ 56.7 $ 41.0 $ 97.7 Depreciation, depletion and amortization 2.0 1.9 2.2 1.8 7.9 1.9 1.7
Slide 18: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non – GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL TOTAL ADJUSTED EBITDDA Net Income (GAAP) $ 131.1 $ 187.9 $ 65.7 $ 39.2 $ 423.9 $ 163.9 $ 120.2 $ 284.1 Interest expense, net 3.6 8.2 8.6 8.9 29.3 2.9 7.4 10.3 Income taxes 30.0 50.9
Slide 19: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 427,255 353,792 462,492 348,935 1,592,474 385,290 276,347 661,637 Pulpwood 13,884 6,813 4,039 8,398 33,134 8,259 11,383 19,642 Total 441,139 360,605 466,531 357,333 1,625,6
Slide 20: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL WOOD PRODUCTS Lumber shipments (MBF) 258,069 260,311 264,855 243,054 1,026,289 233,188 254,225 487,413 Lumber sales prices ($ per MBF) $ 890 $ 1,185 $ 533 $ 563 $ 795 $ 1,075 $ 865 $ 966 REAL ESTATE Rural Rev
Slide 21: Definitions
D E F I N I TI O NS Total Adjusted EBITDDA is a non-GAAP measure and is calculated as net income adjusted for interest expense, income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, pension settlement charge,
Slide 22: Q2 2022 Earnings
Q2 2022 JERALD W. RICHARDS EARNINGS Vice President and Chief Financial Officer July 26, 2022 509-835-1521 PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com