22 slides from Rayonier Inc. Reit's earnings presentation, May 4, 2018
Slide 1: Q1 2018 Earnings
Q1 2018 Earnings May 4, 2018
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, our expectations regarding the U.S. housing market; strong
Slide 3: Key Highlights – Q1 2018
Key Highlights – Q1 2018 Financial Performance Strategy Capital Allocation (1) Adjusted EBITDDA margin of 32.4%, Strong lumber fundamentals Closed Deltic merger on Feb 20, 2018 an increase of 361 bps from Q4 2017 • Housing demand improving • Issued 22 million shares @ • Legacy Potlatch EBITDDA of $5
Slide 4: Q1 2018 Consolidated Results
Q1 2018 Consolidated Results Adjusted EBITDDA – Q4 2017 to Q1 2018 Variance ($ in millions) $4.6 $0.6 $64.7 ($0.4) $7.2 $2.2 $50.5 Q4 2017 Resource Wood Products Real Estate Corporate Eliminations Q1 2018 Key Consolidated Highlights: Adjusted EBITDDA increased $14.2 million from Q4 2017 levels Highe
Slide 5: Q1 2018 Resource Results
Q1 2018 Resource Results Adjusted Segment EBITDDA – Q4 2017 to Q1 2018 Variance ($ in millions) $4.2 $1.5 $37.7 $0.0 $35.5 ($2.5) ($0.9) ($0.1) Q4 2017 North Volume North Price/Mix South Volume South Price/Mix Forestry Costs & SG&A Q1 2018 Other Key Resource Highlights: Segment Adjusted EBITDDA incr
Slide 6: Resource Results: Northern Region
Q1 2018 Resource Results Northern Region $140 Northern Sawlog Pricing and Volume 700 Northern Pulpwood Pricing and Volume $45 70 $40 $39 $120 600 Volumes: Tons (thousands) Volumes: Tons (thousands) $110 60 $35 $100 500 50 449 45 $30 Price: $/Ton Price: $/Ton $80 400 40 $25 $60 300 $20 30 $40 200 $15
Slide 7: Resource Results: Southern Region
Q1 2018 Resource Results Southern Region Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $50 500 $35 500 450 Volumes: Tons (thousands) $41 $30 450 Volumes: Tons (thousands) $30 $40 400 400 339 350 $25 350 Price: $/Ton Price: $/Ton $30 300 295 300 $20 250 250 $20 200 $15 200 1
Slide 8: Q1 2018 Wood Products Results
Q1 2018 Wood Products Results Adjusted Segment EBITDDA – Q4 2017 to Q1 2018 Variance ($ in millions) $29.0 $4.0 ($0.1) $21.8 $3.7 $1.0 $2.8 ($4.2) Legacy Potlatch Q4 2017 Lumber Lumber Price Lumber Deltic Lumber Plywood & MDF SG&A and Other Q1 2018 Shipments Production Costs Key Wood Products Highli
Slide 9: Wood Products Results: Lumber Pricing and Shipments
Q1 2018 Wood Products Results $500 Lumber Pricing and Shipments 260 Wood Products Adjusted EBITDDA (1) $465 240 $35 ($ in millions) Shipments (thousand board feet) $450 $30 $29 220 $400 204 Price: $/ MBF 200 $25 $350 180 $20 160 $15 $300 140 $10 $250 120 $5 $200 100 $0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: Q1 2018 Real Estate Results
Q1 2018 Real Estate Results Adjusted Segment EBITDDA – Q4 2017 to Q1 2018 Variance ($ in millions) $1.2 $4.1 $8.0 ($0.3) ($0.4) $3.4 Q4 2017 Rural Sales Development Sales Other, net SG&A Q1 2018 Key Real Estate Highlights: Segment Adjusted EBITDDA increased $4.6 million from Q4 2017 levels Real Esta
Slide 11: Real Estate Results: Rural and Development
Q1 2018 Real Estate Results Rural - Acres Sold and Avg. Price Development – Lots Sold and Avg. Price $2,500 8,000 $100,000 100 Legacy Deltic 7,000 $98,975 90 Average Price: $ / Acre $2,000 6,144 $80,000 80 Average Price: $ / Lot Residential Lots Sold 6,000 Acres Sold 70 $1,500 5,000 $1,438 $60,000 6
Slide 12: Synergies & Operational Efficiencies
Synergies & Operational Efficiencies Q1 2018 $50 Million After-Tax Cash Synergies Goal $50 Million Run Rate Synergy Target Synergy ($ millions) Achieved On-Track $15 $50 Sustainable Harvest $50 $ 10 Successful harvest ramp-up $40 Expand Lumber Output $4 $40 $7 Waldo kiln conversion completed in Apri
Slide 13: Favorable Capital Structure
Favorable Capital Structure Debt Maturities ($ in millions) $200 $190 Potlatch Deltic $176 $150 $100 $100 $100 $50 $46 $40 $43 $40 $28 $29 $- $0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Key Highlights: No significant maturities until November 2019 Closed new $380 million revolver Febru
Slide 14: Q2 and Full-Year 2018 Outlook
Q2 and Full-Year 2018 Outlook Q2 2018 Outlook FY 2018 Outlook RESOURCE Harvest volume 1.4 - 1.5 million tons 5.5 - 5.9 million tons Geographic harvest 70% of volume in South 70% of volume in South Sawlog mix North: sawlogs ~90% of volume North: sawlogs ~90% of volume South: sawlogs ~ 55% of volume S
Slide 15: Appendix
4\PotlatchDeltic Q1 2018 Earnings
Slide 16: 2018 Outlook
2018 Outlook 2018 Projected Guidance Range Lower Upper RESOURCE Resource Segment Adjusted EBITDDA $160 $180 WOOD PRODUCTS Wood Products Segment Adjusted EBITDDA $130 $150 REAL ESTATE Real Estate Segment Adjusted EBITDDA $35 $45 CORPORATE Corporate expense ($77) ($70) Non-operating pension and other
Slide 17: Total Company Summary
Total Company Summary 2017 2018 Q1 Q2 Q3 Q4 Q1 Operating income: Resource $ 14.9 $ 19.6 $ 41.8 $ 29.9 $ 29.0 (1) Wood Products 9.0 24.9 19.5 19.7 25.6 Real Estate 8.7 5.7 1.4 2.8 4.3 Eliminations 1.1 1.0 (3.1) (1.7) (1.1) Total operating income 33.7 51.2 59.6 50.7 57.8 (2) Corporate (7.9) (9.1) (14.
Slide 18: Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA
Non-GAAP Reconciliation: Operating Segment Adjusted EBITDDA 2017 2018 Resource Q1 Q2 Q3 Q4 Q1 Northern Operating Income $ 13.4 $ 17.8 $ 36.8 $ 26.0 $ 26.2 Depreciation, depletion and amortization 1.8 1.7 2.2 2.2 2.1 Northern Adjusted EBITDDA 15.2 19.5 39.0 28.2 28.3 Southern Operating Income 1.5 1.8
Slide 19: Statistics: Resource and Wood Products
Statistics: Resource and Wood Products (unaudited) Resource 2017 2018 Fee Volumes (tons) Q1 Q2 Q3 Q4 Total Q1 Northern Region Sawlog 354,104 333,926 559,580 463,978 1,711,588 448,782 Pulpwood 47,785 40,054 33,742 24,821 146,402 45,428 Stumpage 10,693 - 1,434 - 12,127 5,836 Total 412,582 373,980 594,
Slide 20: Statistics: Real Estate
Statistics: Real Estate (unaudited) Real Estate 2017 2018 Q1 Q2 Q3 Q4 Total Q1 Rural Acres Sold HBU Development 4,628 700 628 484 6,440 1,796 Rural Real Estate 1,740 4,523 1,207 2,523 9,993 3,461 Non-Strategic Timberlands 197 186 191 - 574 887 6,565 5,409 2,026 3,007 17,007 6,144 Revenues by Product
Slide 21: Definitions
Definitions Adjusted EBITDDA is a non-GAAP measure and is calculated as net income (loss) adjusted for interest expense, provision (benefit) for income taxes, depletion, depreciation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, gains and
Slide 22: Michael J. Covey, Eric J. Cremers, Jerald W. Richards
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 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com