22 slides from Rayonier Inc. Reit's earnings presentation, Jan 31, 2023
Slide 1: Q4 2022 Earnings
Q4 2022 EARNINGS January 31, 2023
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 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 2022 to continue to drive shareholder value with our strong liquidity. STRATEGY PERFORMANCE CAPITAL
Slide 4: CatchMark Merger
C AT C H M A R K M E R G E R We expect to achieve CAD synergies of $21 million versus the $16 million CAD SYNERGIES target we communicated May 31, 2022. $21.0 TARGET SYNERGY ($ MILLIONS) INITIAL CURRENT ACHIEVED COMPLETION Insource Timberland Management $ 3.0 $ 3.0 $ 3.0 Done Reduce SG&A $ 9.5 $ 9.5
Slide 5: Consolidated Results
Q4 Total Adjusted EBITDDA of $52 million reflects declines in C O N S O L I D AT E D lumber and indexed sawlog prices, along with seasonally lower R E S U LT S harvest volumes. Total Adjusted EBITDDA – Q3 to Q4 2022 Variance Key Consolidated Highlights: Total Adjusted EBITDDA decreased $48.8 million
Slide 6: Timberlands Results
Timberlands Adjusted EBITDDA declined to $51 million in Q4 due primarily to lower indexed sawlog prices and seasonally lower harvest volumes. Full year T I M B E R L A N D S R E S U LT S Adjusted EBITDDA of $249 million was the segment’s second highest annual amount on record. Timberlands Adjusted E
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 $280 700 $60 40 $53 Volume: Tons (thousands) 35 Volume: Tons (thousands) $240 600 $50 456 30 $200 500 Price: $ / Ton $40 Price: $ / Ton 25 $160 400 $30 20 $140 $120 3
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 $50 700 $35 $32 700 $50 Volume: Tons (thousands) Volume: Tons (thousands) 588 600 $30 582 600 $40 500 $25 500 Price: $ / Ton Price $ / Ton $30 400 $20 400 300 $15 300 $20 200 $1
Slide 9: Wood Products Results
Wood Products Adjusted EBITDDA declined to $2 million in Q4 largely due to WOOD PRODUCTS lower lumber prices. Full year Adjusted EBITDDA of $291 million was the R E S U LT S segment’s second highest annual amount on record. Wood Products Adjusted EBITDDA – Q3 to Q4 2022 Variance Lumber Key Consolida
Slide 10: Wood Products
WOOD PRODUCTS R E S U LT S Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,200 400 $200 $1,000 350 300 $150 Shipments (MMBF) 257 $800 Price: $ / MBF 250 $600 200 $100 $473 150 $400 100 $50 $200 50 $2.4 $- 0 $- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 11: Real Estate Results
Real Estate Adjusted EBITDDA declined to $7 million in Q4 due to the sale of R E A L E S TAT E R E S U LT S fewer acres and residential lots. Annual Real Estate Adjusted EBITDDA of $73 million reflects strong rural and Chenal Valley development sales in 2022. Real Estate Adjusted EBITDDA – Q3 to Q4
Slide 12: Real Estate Adjusted EBITDDA
R E A L E S TAT E R E S U LT S Rural Acres Sold and Avg. Price Residential Lots Sold and Avg. Price $140,000 $132,000 100 $4,500 20,000 + $4,000 18,000 90 $120,000 16,000 80 Average Price: $ / Acre $3,500 Average Price: $ / Lot Residential Lots Sold 14,000 $100,000 70 $3,000 12,000 60 Acres Sold $2,
Slide 13: Favorable Capital Structure
In 2022 we returned $263 million to shareholders, including repurchasing $55 FAV O R A B L E C A P I TA L million of shares. Our strong balance sheet and $643 million of liquidity provide STRUCTURE a high degree of flexibility. Debt Maturities $190 $185 $200 $176 $190 $176 $139 $ MILLIONS $150 $100
Slide 14: Outlook
We anticipate our 2023 Total Adjusted EBITDDA to be significantly lower OUTLOOK than 2022 stemming from higher interest rates and their expected impact on housing starts. TIMBERLANDS Q1 2023 FY 2023 Harvest Volume 1.8-1.9 million tons ~7.7 million tons Geographic harvest ~79% of volume in South ~79%
Slide 15: Appendix
APPENDIX Q4 2022 A atcnDeltic (\Potl
Slide 16: Total Company Summary
TOTAL COMPANY in millions except per-share amounts – unaudited SUMMARY 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Operating income: Timberlands $ 56.5 $ 66.7 $ 64.1 $ 30.2 $ 217.5 $ 64.2 $ 46.4 $ 47.5 $ 31.7 $ 189.8 Wood Products 119.3 197.6 16.6 29.7 363.2 143.1 99.0 21.2 (8.4) 254.9 Real Estate
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 Q3 Q4 TOTAL Timberlands Northern Timberlands operating income $ 52.2 $ 64.4 $ 57.2 $ 23.7 $ 197.5 $ 56.7 $ 41.0 $ 42.3 $ 27.4 $ 167.4 Depreciation, depletion and amortization 2.0 1.
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 Q3 Q4 TOTAL Total Adjusted EBITDDA Net Income (GAAP) $ 131.1 $ 187.9 $ 65.7 $ 39.2 $ 423.9 $ 163.9 $ 120.2 $ 46.0 $ 3.8 $ 333.9 Interest expense, net 3.6 8.2 8.6 8.9 29.3 2.9 7.4 8.3 8.8
Slide 19: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Timberlands Fee Volumes (tons) Northern Region Sawlog 427,255 353,792 462,492 348,935 1,592,474 385,290 276,347 459,128 455,993 1,576,758 Pulpwood 13,884 6,813 4,039 8,398 33,134 8,259 11,383 11,197 9,043 39,882 Total 44
Slide 20: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2021 2022 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Wood Products Lumber shipments (MBF) 258,069 260,311 264,855 243,054 1,026,289 233,188 254,225 264,748 257,587 1,009,748 Lumber sales prices ($ per MBF) $ 890 $ 1,185 $ 533 $ 563 $ 795 $ 1,075 $ 865 $ 5
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: Q4 2022 Earnings
Q4 2022 JERALD W. RICHARDS EARNINGS Vice President and Chief Financial Officer January 31, 2023 509-835-1521 PotlatchDeltic (Nasdaq: PCH) www.PotlatchDeltic.com