21 slides from Rayonier Inc. Reit's earnings presentation, Jul 27, 2021
Slide 1: Q2 2021 Earnings
Q2 2021 EARNINGS J U LY 2 7, 2 0 2 1
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 Q2 2021
Our Wood Products and Timberlands businesses leveraged historic lumber prices to achieve KEY HIGHLIGHTS our fourth consecutive quarter of record financial performance. Our substantial liquidity Q2 2021 provides a high degree of flexibility to increase shareholder value. STRATEGY PERFORMANCE CAPITAL
Slide 4: Consolidated Results
Q2 2021 Total Adjusted EBITDDA of $275 million topped Q1 2021's record CONSOLIDATED RESULTS financial performance. Historic lumber and Idaho sawlog prices drove Q2 2021 record results. Total Adjusted EBITDDA – Q1 2021 to Q2 2021 Variance $79.1 ($4.8) ($2.1) ($1.5) $275.0 $195.0 $9.3 $ MILLIONS Q1 20
Slide 5: Timberlands Results
Timberlands generated record Adjusted EBITDDA as historic Idaho sawlog prices TIMBERLANDS RESULTS offset the impact of lower harvest volumes. Timberlands Adjusted EBITDDA – Q1 2021 to Q2 2021 Variance $ MILLIONS $16.5 $0.8 ($2.7) ($0.5) $77.2 $67.9 ($4.8) Q1 2021 Harvest Volume Sales Price & Mix Log
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) 50 Volume: Tons (thousands) $280 $40 $245 600 $240 $29 40 Price: $/Ton 500 Price: $/Ton $200 $30 354 400 30 $160 300 $20 $120 20 $60 200 $10 7 10 $40 100 $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 $44 600 $30 $29 480 500 Volume: Tons (thousands) 500 $40 Volume: Tons (thousands) $25 352 400 400 $20 Price: $/Ton Price: $/Ton $30 300 300 $15 $20 200 200 $10 $10 $5 100 1
Slide 8: Wood Products Results
WOOD PRODUCTS Q2 Wood Products Adjusted EBITDDA exceeded the annual EBITDDA record RESULTS achieved in 2020. Wood Products Adjusted EBITDDA – Q1 2021 to Q2 2021 Variance $74.9 ($2.9) ($2.5) $1.3 $8.6 ($0.3) $204.6 $ MILLIONS $125.5 Manufacturing Residuals Q1 2021 Price Cost Log Cost Volume & Panels
Slide 9: Wood Products Results
WOOD PRODUCTS RESULTS Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $1,300 400 $1,200 $1,185 $204.6 350 $198 $1,100 $1,000 300 Shipments (MMBF) 260 Price: $/MBF $900 250 $148 $800 200 $700 $98 $600 150 $500 100 $48 $400 50 $300 $200 0 $-2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 10: Real Estate Results
Real Estate Adjusted EBITDDA declined due primarily to fewer Chenal Valley REAL ESTATE RESULTS lot and commercial land sales. Real Estate Adjusted EBITDDA – Q1Lorem ipsum 2021 to Q2 2021 Variance $ MILLIONS $16.6 $1.5 ($5.8) ($0.5) $11.8 Q1 2021 Rural Sales Development Sales Other, net Q2 2021 Key R
Slide 11: Real Estate Results
REAL ESTATE RESULTS Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price 100 $4,500 $4,416 $140,000 70,000 90 $4,000 $120,000 80 60,000 Average Price: $/Acre Average Price: $/Lot Residential Lots Sold $3,500 $90,874 70 50,000 $100,000 $3,000 60 Acres Sold $2,500 40,00
Slide 12: Favorable Capital Structure
Liquidity of $891 million and declining cost of capital provide a strong platform FAVORABLE CAPITAL to continue growing shareholder value. We expect to distribute a meaningful STRUCTURE special dividend to shareholders in Q4 2021. Debt Maturities $200 $190 $176 $ MILLIONS $150 $100 $100 $100 $50 $40
Slide 13: Outlook
While Q3 2021 Total Adjusted EBITDDA will be lower than Q2 2021, we expect housing OUTLOOK fundamentals and lumber prices to remain strong in the second half of 2021. TIMBERLANDS Q3 2021 FY 2021 Harvest volume 1.5 - 1.7 million tons 5.6 - 5.7 million tons Geographic harvest ~ 70% of volume in South
Slide 14: Appendix
APPENDIX Q2 2021 1 4\ PotlatchDeltic ?
Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL Operating Income Timberlands $ 22.4 $ 14.0 $ 45.9 $ 49.4 $ 131.7 $ 56.5 $ 66.7 $ 123.2 Wood Products 7.8 5.1 75.7 63.9 152.5 119.3 197.6 316.9 Real Estate 0.6 6.0 8.0 45.3 59.9 7.5 4.8 12.3
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 TOTAL TIMBERLANDS Northern Timberlands operating income $ 17.8 $ 10.9 $ 40.5 $ 44.5 $ 113.7 $ 52.2 $ 64.4 $ 116.6 Depreciation, depletion and amortization 2.1 1.8 2.3 2.0 8.2 2.0 1.
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 TOTAL TOTAL ADJUSTED EBITDDA Net (loss) Income (GAAP) $ (16.8) $ 2.6 $ 81.0 $ 100.0 $ 166.8 $ 131.1 $ 187.9 $ 319.0 Interest expense, net 3.7 8.3 8.6 8.9 29.5 3.6 8.2 11.8 Income taxes (1
Slide 18: Statistics: Timberlands
STATISTICS: TIMBERLANDS unaudited 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 433,870 302,917 554,845 377,685 1,669,317 427,255 353,792 781,047 Pulpwood 37,801 31,463 29,910 14,707 113,881 13,884 6,813 20,697 Stumpage 23,178 — — — 23,178 — — — Total
Slide 19: Statistics: Wood Products and Real Estate
STATISTICS: WOOD PRODUCTS unaudited AND REAL ESTATE 2020 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL WOOD PRODUCTS Lumber shipments (MBF) 282,967 249,239 291,391 274,485 1,098,082 258,069 260,311 518,380 Lumber sales prices ($ per MBF) $ 396 $ 412 $ 637 $ 629 $ 522 $ 890 $ 1,185 $ 1,038 REAL ESTATE Rural Rev
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: Q2 2021 Earnings
Q2 2021 JERALD W. RICHARDS E A R N I N GS Vice President and Chief Financial Officer 509-835-1521 J U LY 2 7, 2 0 2 1 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com