17 slides from Rayonier Inc. Reit's earnings presentation, Jan 26, 2016
Slide 1: 4Q 2015 Earnings Release
4Q 2015 Earnings Release January 26, 2016 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
Slide 2: Forward-Looking Statement & Non-GAAP Measures
Forward-Looking Statement & Non-GAAP Measures FORWARD-LOOKNG 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 fi
Slide 3: 4Q 2015: Total Company Summary
4Q 2015: Total Company Summary (unaudited, $ in millions, except per share amounts) 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 Operating income Resource $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 15.0 $ 8.8 $ 36.4 $ 16.1 $ 85.0 $ 76.3 Wood Products 12.7 14.9 15.8 9.1 3.5 (2.0) (5.4) (1.3) 52.5 (5.2) Real Estate
Slide 4: Resource: Segment Summary
RESOURCE: Segment Summary • Harvest volumes were seasonally lower in the North and the South • Northern sawlog prices declined 10%, due to seasonally heavier logs and lower lumber prices • Southern sawlog prices were down 11%, primarily the result of a seasonal decrease in hardwood logs in the mix $
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 80 $ / Ton $ / Ton 500 $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 400 $60 400 $50 350 350 $55 $45 300 300 Tons (thousands) Tons (thousands) 250 250 $50 $40 $ / Ton $ / Ton 200 200 $45 $35 150 150 100 100 $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 2
Slide 7: Wood Products: Segment Summary
WOOD PRODUCTS: Segment Summary • Average lumber prices were 6% lower in Q4 • Lumber shipments increased 6% in Q4 • The last two of the four major 2015 capital projects were completed in Q3 $25 25% 21% 21% Operating Income (millions) $20 20% $18.9 $19.7 16% 15% $15 14% 15% 12% $15.8 $14.9 Margin (%)
Slide 8: Wood Products: Lumber – Sales Prices and Shipments
WOOD PRODUCTS: Lumber – Sales Prices and Shipments 200 $550 173 176 172 Shipment Volumes (millions of board ft) 163 165 $500 153 152 156 156 154 152 155 150 $450 $423 $412 $402 $407 $408 $393 $400 $ / MBF $386 $374 100 $363 $351 $335 $350 $316 $300 50 $250 0 $200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 9: Real Estate: Segment Summary
REAL ESTATE: Segment Summary • The Minnesota rural recreational real estate market remained strong • Land basis increased in Q4 due to a higher proportion of recently acquired property in the sales mix $20 90% 79% 79% 73% 75% 80% 71% Operating Income (millions) 67% 67% 70% $15 57% $12.4 51% 54% 60%
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Amounts as of December 31, 2015: FUNDS AVAILABLE FOR DISTRIBUTION(3) (in millions) Unaudited, $ in millions $98 Cash and short-term investments $ 7.9 $77 Debt $ 633.9 $56 $53 Pension & other postretirement liability $ 119.4 $58 $61 $50 $52 Undrawn revolver $ 218.6 (1) Net debt t
Slide 11: Outlook
OUTLOOK • Harvest 4.4 million tons for year, 850,000 – 875,000 tons Q1 • Slightly more than half of the volume in the North • Sawlogs ≈45% of Southern volume and ≈90% of Northern volume RESOURCE • Lower sawlog prices Q1 • Seasonally wetter logs in the North: price decline 5% – 10% • Seasonally lower
Slide 12: Appendix
4\ Potlatch. | Appendix www.potlatchcorp.com
Slide 13: Statistics: Resource
STATISTICS: Resource (unaudited) 2014 2015 Fee Volumes (tons) Q4 Q1 Q2 Q3 Q4 2014 2015 Northern Region Sawlog 538,738 451,548 287,979 762,813 490,625 1,982,113 1,992,965 Pulpwood 48,883 47,840 31,284 69,329 46,449 201,926 194,902 Stumpage 1,007 16,903 3,277 2,604 790 16,312 23,574 Total 588,628 516,
Slide 14: Statistics: Wood Products & Real Estate
STATISTICS: Wood Products & Real Estate (unaudited) 2014 2015 Wood Products Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 Lumber Shipments (MBF) 155,596 176,046 171,818 156,123 154,206 152,071 155,388 164,965 659,583 626,630 Lumber Sales Prices ($ per MBF) $ 402 $ 407 $ 408 $ 393 $ 386 $ 351 $ 335 $ 316 $ 402 $
Slide 15: EBITDDA Reconciliation
EBITDDA RECONCILIATION (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 GAAP net income $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 5.7 $ 0.7 $ 21.8 $ 3.5 $ 89.9 $ 31.7 (1) Interest expense, net 5.5 5.5 5.5 6.4 8.1 8.0 8.3 8.4 22.9 32.8 Income tax provision 5.5 7.9 6
Slide 16: EBITDDA Reconciliation: By Segment
EBITDDA RECONCILIATION: By Segment (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 Resource Operating Income $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 15.0 $ 8.8 $ 36.4 $ 16.1 $ 85.0 $ 76.3 Depreciation, depletion and amortization 3.9 2.8 6.0 5.1 6.2 4.8 10.3 7.5
Slide 17: FAD Reconciliation
FAD RECONCILIATION (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 GAAP net income $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 5.7 $ 0.7 $ 21.8 $ 3.5 $ 89.9 $ 31.7 Depreciation, depletion & amortization(1) 6.1 4.9 8.3 7.4 8.5 7.1 12.6 9.9 26.7 38.1 Basis of real est