21 slides from Rayonier Inc. Reit's earnings presentation, Oct 26, 2021
Slide 1: Q3 2021 Earnings
Q3 2021 E A R N I N GS OCTOBER 26, 2021
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
Our strategy is well aligned with favorable industry fundamentals and our strong liquidity and KEY HIGHLIGHTS prudent capital allocation strategy position us to continue increasing shareholder value. STRATEGY PERFORMANCE CAPITAL ALLOCATION Leverage to lumber prices Q3 Total Adjusted EBITDDA1 Return
Slide 4: Consolidated Results
Q3 2021 Total Adjusted EBITDDA of $107 million is the highest quarterly amount CONSOLIDATED RESULTS we have generated prior to the lumber price run that began in 2020. Lumber prices remained at historically high levels in Q3. Total Adjusted EBITDDA – Q2 2021 to Q3 2021 Variance $275.0 ($1.2) ($178.0
Slide 5: Timberlands Results
Timberlands Adjusted EBITDDA was nearly even with a record Q2 as seasonally TIMBERLANDS RESULTS higher harvest volume offset lower indexed Idaho sawlog prices. Timberlands Adjusted EBITDDA – Q2 2021 to Q3 2021 Variance $13.0 ($10.6) $77.2 ($3.2) ($0.4) $76.0 $ MILLIONS Q2 2021 Harvest Volume Sales P
Slide 6: Timberlands Results: Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $50 60 700 Volume: Tons (thousands) $280 $191 50 Volume: Tons (thousands) 600 $40 $240 462 Price: $/Ton 500 $30 40 $200 Price: $/Ton $30 400 $160 30 300 $120 $20 20 $60 200 100 $10 10 $40 4 $0
Slide 7: Timberlands Results: Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $60 700 $35 600 $50 $48 600 $30 $30 467 500 Volume: Tons (thousands) 461 500 $25 $40 Volume: Tons (thousands) 400 400 $20 Price: $/Ton Price: $/Ton $30 300 $15 300 $20 200 $10 200 $5 100 $10 1
Slide 8: Wood Products Results
WOOD PRODUCTS The Q3 Wood Products Adjusted EBITDDA decline reflects the correction of lumber prices RESULTS from unsustainable levels. Prices appear to have bottomed in Q3 and are moving up. Wood Products Adjusted EBITDDA – Q2 2021 to Q3 2021 Variance $204.6 ($169.6) $ MILLIONS $0.5 ($5.1) $0.3 ($6
Slide 9: Wood Products Results
WOOD PRODUCTS RESULTS Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,300 400 $1,200 $198 350 $1,100 $1,000 300 Shipments (MMBF) 265 $148 Price: $/MBF $900 250 $800 200 $98 $700 $600 150 $500 100 $48 $533 $26.6 $400 50 $300 $0 $200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
Slide 10: Real Estate Results
Real Estate Adjusted EBITDDA declined as lower rural land sale closings REAL ESTATE RESULTS quarter-over-quarter were partially offset by an increase in residential lot sales in our Chenal Valley master planned community in Little Rock, Arkansas. Real Estate Adjusted EBITDDA – Q2Lorem $ MILLIONS ips
Slide 11: Real Estate Results
REAL ESTATE RESULTS Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price 100 $4,500 $140,000 70,000 90 $4,000 $120,000 80 60,000 Average Price: $/Acre Average Price: $/Lot Residential Lots Sold $3,500 $81,923 70 50,000 $100,000 $3,000 52 60 Acres Sold $3,013 $80,000 $
Slide 12: Favorable Capital Structure
Liquidity of $972 million and declining cost of capital provide a strong platform FAVORABLE CAPITAL to continue growing shareholder value. We expect to pay a $3-$5/share special STRUCTURE dividend in December 2021. Debt Maturities $200 $190 $176 $ MILLIONS $150 $100 $100 $100 $50 $40 $43 $40 $46 $28
Slide 13: Outlook
We anticipate Q4 2021 Total Adjusted EBITDDA will be lower than Q3 2021 due to seasonally OUTLOOK lower harvest volumes and a decline in sawlog prices. TIMBERLANDS Q4 2021 FY 2021 Harvest volume 1.3 - 1.5 million tons 5.4 - 5.6 million tons Geographic harvest ~ 70% of volume in South ~ 70% of volume
Slide 14: Appendix
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Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL Operating Income Timberlands $ 22.4 $ 14.0 $ 45.9 $ 49.4 $ 131.7 $ 56.5 $ 66.7 $ 64.1 $ 187.3 Wood Products 7.8 5.1 75.7 63.9 152.5 119.3 197.6 16.6 333.5 Real Estate 0.6 6.0 8.0 45.3 59
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non - GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL TIMBERLANDS Northern Timberlands operating income $ 17.8 $ 10.9 $ 40.5 $ 44.5 $ 113.7 $ 52.2 $ 64.4 $ 57.2 $ 173.8 Depreciation, depletion and amortization 2.1 1.8 2.3 2.0
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non - GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL TOTAL ADJUSTED EBITDDA Net (loss) Income (GAAP) $ (16.8) $ 2.6 $ 81.0 $ 100.0 $ 166.8 $ 131.1 $ 187.9 $ 65.7 $ 384.7 Interest expense, net 3.7 8.3 8.6 8.9 29.5 3.6 8.2 8.6 20.4 I
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 433,870 302,917 554,845 377,685 1,669,317 427,255 353,792 462,492 1,243,539 Pulpwood 37,801 31,463 29,910 14,707 113,881 13,884 6,813 4,039 24,736 Stumpage 23,178 — — —
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL WOOD PRODUCTS Lumber shipments (MBF) 282,967 249,239 291,391 274,485 1,098,082 258,069 260,311 264,855 783,235 Lumber sales prices ($ per MBF) $ 396 $ 412 $ 637 $ 629 $ 522 $ 890 $ 1,185 $ 533 $ 867 REAL E
Slide 20: Definitions
DEFINITIONS 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, gains a
Slide 21: Q3 2021 Earnings
Q 3 2021 JERALD W. RICHARDS E A R NI NGS Vice President and Chief Financial Officer 509-835-1521 OCTOBER 26, 2021 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com