17 slides from Rayonier Inc. Reit's earnings presentation, Apr 27, 2017
Slide 1: Q1 2017 Earnings Release
Q1 2017 Earnings Release April 27, 2017 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 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, statements about our expectations regarding U.S. housing s
Slide 3: Q1 2017: Total Company Summary
Q1 2017: Total Company Summary (unaudited, $ in millions, except per share amounts) 2016 2017 2016 2017 Q4 Q1 Q4 Q1 Operating Income EBITDDA (1) Resource $ 22.7 $ 14.9 Northern region $ 19.3 $ 15.2 Wood Products 8.3 8.7 Southern region 9.6 4.1 Real Estate 6.0 8.6 Total Resource 28.9 19.3 Elimination
Slide 4: Resource: Segment Summary
RESOURCE: Segment Summary • Harvest volumes declined seasonally in the North and the South • Northern sawlog prices increased 3% due largely to strong cedar pricing • Southern sawlog prices decreased 9%, primarily the result of a seasonal decline in hardwood logs in the sales mix $50 50% Operating I
Slide 5: Resource: Northern Region – Volume, Pricing and EBITDDA
RESOURCE: Northern Region – Volume, Pricing and EBITDDA Sawlog Pulpwood 900 $110 140 $50 800 Tons (thousands) $100 120 700 $45 Tons (thousands) 600 $90 100 $40 $/Ton 80 $/Ton 500 $80 400 60 $35 300 $70 40 200 $30 $60 20 100 0 $50 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016
Slide 6: Resource: Southern Region – Volume, Pricing and EBITDDA
RESOURCE: Southern Region – Volume, Pricing and EBITDDA Sawlog Pulpwood 400 $60 400 $50 350 350 $50 Tons (thousands) $45 Tons (thousands) 300 300 $40 250 250 $/Ton $40 $/Ton 200 $30 200 150 150 $35 $20 100 100 $10 $30 50 50 0 $0 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2
Slide 7: Wood Products: Segment Summary
WOOD PRODUCTS: Segment Summary • Three weeks of scheduled downtime was taken during Q1 at the Warren, Arkansas sawmill for boiler maintenance and replacement of pollution control equipment • Lumber shipments decreased 7% in Q1 due primarily to the down time • Average lumber prices were 7% higher in
Slide 8: Wood Products: Lumber Sales Prices, Shipments and EBITDDA
WOOD PRODUCTS: Lumber Sales Prices, Shipments and EBITDDA 200 $500 171 175 180 Shipment Volumes 165 (thousand board ft) 155 162 168 (millions of board ft) 154 152 150 $387 $425 $ / MBF $386 $369 $363 $351 $351 $335 100 $324 $350 $316 50 $275 0 $200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 EBITDDA(1
Slide 9: Real Estate: Segment Summary
REAL ESTATE: Segment Summary(1) • A conservation sale with an attractive price of almost $2,600 per acre closed in Q1 • Approximately 70% of Q1 sales were HBU, which have a higher land basis than rural real estate $12 100% Operating Income (millions) 90% 79% 80% $9 70% 69% $8.6 70% $8.5 60% Margin (
Slide 10: Real Estate: Acres Sold, Average Price and EBITDDA
REAL ESTATE: (1) Acres Sold, Average Price and EBITDDA 14,000 $3,000 $2,595 AVG Weighted Price $2,209 Acres Sold 10,500 $2,250 $1,726 $1,800 $1,602 $1,603 $1,445 $1,195 $1,339 6,565 7,000 $1,500 5,530 4,140 4,535 4,560 6,292 3,473 7,248 3,500 $750 2,153 0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS DEBT MATURITIES FOR THE NEXT FIVE YEARS (in millions) Amounts as of March 31, 2017: $190 Unaudited, $ in millions Cash and cash equivalents $ 101.7 Debt $ 583.9 Pension & postretirement liability $ 123.9 $46 $40 (1) Net debt to enterprise value 20.3% $11 $14 (2) Dividend yield 3
Slide 12: Q2 Outlook
Q2 OUTLOOK • Harvest 775,000 – 825,000 tons Q2 • Slightly more than half of the total volume in the South RESOURCE • Sawlogs ≈90% of Northern volume and ≈45% of Southern volume • Estimated Q2 sawlog prices: • 10% higher in the North • Modestly lower in the South • Expect to ship record 190 million b
Slide 13: Appendix
4\ Potlatch. | Appendix www.potlatchcorp.com
Slide 14: Statistics: Resource
STATISTICS: Resource (unaudited) 2015 2016 2017 Fee Volumes (tons) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Northern Region Sawlog 451,548 287,979 762,813 490,625 366,852 388,575 579,837 474,024 354,104 Pulpwood 47,840 31,284 69,329 46,449 52,361 44,497 62,138 35,418 47,785 Stumpage 16,903 3,277 2,604 790 16,207
Slide 15: Statistics: Wood Products & Real Estate
STATISTICS: Wood Products & Real Estate (unaudited) 2015 2016 2017 Wood Products Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Lumber Shipments (MBF) 154,206 152,071 155,388 164,965 161,992 170,829 175,358 180,050 167,559 Lumber Sales Prices ($ per MBF) $ 386 $ 351 $ 335 $ 316 $ 324 $ 351 $ 369 $ 363 $ 387 Real Estate
Slide 16: Total Company Earnings Summary
Total Company Earnings Summary (unaudited, $ in millions, except per share amounts) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Operating income: Resource $ 15.0 $ 8.8 $ 36.4 $ 16.1 $ 10.2 $ 15.7 $ 33.3 $ 22.7 $ 14.9 Wood Products 3.5 (2.0) (5.4) (1.3) 1.0 4.7 10.6 8.3 8.7 Real Estate 1.6 8.5 4.2 2.5
Slide 17: Non-GAAP Reconciliation: Operating Segment EBITDDA
NON-GAAP RECONCILIATION: Operating Segment EBITDDA (unaudited, $ in millions) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Northern Resource Operating Income $ 12.7 $ 6.3 $ 28.6 $ 11.7 $ 8.6 $ 12.3 $ 26.9 $ 17.0 $ 13.4 Depreciation, depletion and amortization 3.7 1.9 5.3 3.9 3.0 2.0 2.5 2.3 1.8 Norther