19 slides from Rayonier Inc. Reit's earnings presentation, Apr 22, 2015
Slide 1: 1Q 2015 Earnings Release
Michael J. Covey Chairman and Chief Executive Officer 1Q 2015 Earnings Release Eric J. Cremers President and Chief Operating Officer Potlatch Corporation Jerald W. Richards Vice President and Chief Financial Officer April 22, 2015
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 the company’s
Slide 3: 1Q 2015: Total Company Summary
1Q 2015: Total Company Summary (unaudited, $ in millions, except per share amounts) Unaudited, $ in millions 2014 2015 Q1 Q2 Q3 Q4 Q1 Operating income Resource $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 15.0 Wood Products 12.7 14.9 15.8 9.1 3.5 Real Estate 8.3 12.4 4.6 1.6 1.6 Eliminations and adjustments 0.8 0.
Slide 4: Resource: Segment Summary
RESOURCE: Segment Summary Northern sawlog prices were 4% lower on a dimensional (mbf) basis; the reported price based on tons is also affected by seasonally wetter logs Southern sawlog price declined $7 per ton due primarily to lower mix of hardwood; pine sawlog price remains relatively flat H
Slide 5: Resource: Northern Region – Volume and Pricing
RESOURCE: Northern Region – Volume and Pricing Sawlog Pulpwood 900 $100 140 $50 800 120 $90 $45 700 100 Tons (thousands) Tons (thousands) 600 $80 $40 80 $ / Ton $ / Ton 500 $70 400 60 $35 300 $60 40 200 $30 $50 20 100 0 $40 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 6: Resource: Southern Region – Volume and Pricing
RESOURCE: Southern Region – Volume and Pricing Sawlog Pulpwood 250 $60 250 $50 200 $55 200 $45 Tons (thousands) Tons (thousands) 150 $50 150 $40 $ / Ton $ / Ton 100 $45 100 $35 50 $40 50 $30 0 $35 0 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2013 2014
Slide 7: Wood Products: Segment Summary
WOOD PRODUCTS: Segment Summary Lumber price decline in Q1 was muted by mix Lumber shipments were relatively flat; inventories increased in preparation for capital project outage in Q2 $30 25% 21% 21% $25 Operating Income (millions) 20% $20 $19.7 16% Margin (%) $18.9 15% 14% 15% $15.8 12% $14.9 $
Slide 8: Wood Products: Lumber – Sales Prices and Shipments
WOOD PRODUCTS: Lumber – Sales Prices and Shipments 200 $550 173 176 172 163 $500 156 156 Shipment Volumes (millions of board ft) 153 152 154 150 $450 $423 $412 $408 $402 $407 $393 $ / MBF $386 $400 $374 100 $363 $350 $300 50 $250 0 $200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 1Q 2015 Earn
Slide 9: Real Estate: Segment Summary
REAL ESTATE: Segment Summary Q1 2014 included sale of 11,000 acres of rural recreation property in one transaction Average HBU per acre price was higher Q1 due to sale of an industrial lot $20 90% 79% 73% 75% 80% 71% Operating Income (millions) 67% 67% 70% $15 57% $12.4 60% 51% Margin (%) 40% 50
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS Funds Available for Distribution(3) (millions) Amounts as of March 31, 2015: $150 Unaudited, $ in millions Cash and short-term investments $ 28.0 $100 $98 $77 $77 Long-term debt $ 629.6 $58 $59 $53 $50 $52 Pension & other postretirement liability $ 115.6 $50 Undrawn revolver $ 2
Slide 11: Outlook
OUTLOOK Harvest 900,000 – 950,000 tons Q2 ≈60% South, 40% North Sawlogs ≈45% of Southern volume and ≈90% of Northern volume RESOURCE Flat sawlog prices in the North Higher sawlog price in the South due to seasonally higher mix of hardwood Ship 165 mmbf of lumber Q2 WOOD PRODUCTS ≈5% lo
Slide 12: Appendix
Appendix Sth ei ie Rc,
Slide 13: Statistics: Resource
STATISTICS: Resource (unaudited) 2014 2015 Fee Volumes (tons) Q1 Q2 Q3 Q4 Q1 Northern Region Sawlog 443,084 279,831 720,460 538,738 451,548 Pulpwood 60,579 30,124 62,340 48,883 47,840 Stumpage 10,968 2,475 1,862 1,007 16,903 Total 514,631 312,430 784,662 588,628 516,291 Southern Region Sawlog 121,91
Slide 14: Statistics: Wood Products & Real Estate
STATISTICS: Wood Products & Real Estate (unaudited) 2014 2015 Wood Products Q1 Q2 Q3 Q4 Q1 Lumber Shipments (MBF) 155,596 176,046 171,818 156,123 154,206 Lumber Sales Prices ($ per MBF) $ 402 $ 407 $ 408 $ 393 $ 386 Real Estate Acres Sold HBU Development 68 1,424 1,876 416 243 Rural Real Estate 13,2
Slide 15: EBITDDA Reconciliation
EBITDDA RECONCILIATION (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 GAAP net income $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 5.7 Interest expense, net (1) 5.5 5.5 5.5 6.4 8.1 Income tax provision 5.5 7.9 6.2 0.1 0.3 Depreciation, depletion & amortization 5.8 4.6 7.9 7.1 8.1 Basi
Slide 16: EBITDDA Reconciliation: By Segment
EBITDDA RECONCILIATION: By Segment (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Resource Operating income $ 16.2 $ 10.8 $ 34.1 $ 23.9 $ 15.0 Depreciation, depletion and amortization 3.9 2.8 6.0 5.1 6.2 Resource EBITDDA 20.1 13.6 40.1 29.0 21.2 Wood Products Operating
Slide 17: FAD Reconciliation
FAD RECONCILIATION (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 GAAP net income $ 20.3 $ 16.3 $ 33.2 $ 20.1 $ 5.7 (1) Depreciation, depletion & amortization 6.1 4.9 8.3 7.4 8.5 Basis of real estate sold 4.6 2.2 0.5 1.3 0.4 (2) Capital expenditures (3.6) (8.8) (7.8) (7
Slide 18: Operating Working Capital Reconciliation
OPERATING WORKING CAPITAL RECONCILIATION (unaudited, $ in millions) 2014 2015 Unaudited, $ in millions Q1 Q2 Q3 Q4 Q1 Current assets $ 139.1 $ 145.1 $ 144.1 $ 93.7 $ 89.3 Less: current liabilities (49.5) (54.9) (60.0) (72.2) (81.5) Working capital 89.6 90.2 84.1 21.5 7.8 Less: Cash (9.4) (9.3) (8.3)
Slide 19: Sth ei ie Rc,
Sth ei ie Rc,