21 slides from Rayonier Inc. Reit's earnings presentation, Feb 2, 2021
Slide 1: Q4 2020 Earnings
Q4 2 0 2 0 E A R NI N G S F E B R UA RY 2 , 2 0 2 1
Slide 2: Forward-Looking Statements & Non-GAAP Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES FORWARD-LOOKING STATEMENTS This press release 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 curre
Slide 3: Key Highlights
Record annual Total Adjusted EBITDDA of $382 million was driven by historic lumber prices KEY HIGHLIGHTS and a large land sale. We are well positioned to continue growing shareholder value with our 2020 strong liquidity. STRATEGY PERFORMANCE CAPITAL ALLOCATION Leverage to lumber prices Total Adjuste
Slide 4: Consolidated Results
Q4 2020 Total Adjusted EBITDDA of $164 million is a new record. Higher indexed CONSOLIDATED RESULTS sawlog prices and a large land sale more than offset seasonally lower harvest and lumber shipment volumes. Total Adjusted EBITDDA – Q3 2020 to Q4 2020 Variance $43.1 ($1.5) ($7.5) $163.9 $135.4 $2.8 $
Slide 5: Timberlands Results
TIMBERLANDS RESULTS Historic annual Timberlands Adjusted EBITDDA of $183 million was driven by very 2020 strong indexed sawlog prices and record harvest volumes of 6 million tons. Timberlands Adjusted EBITDDA – Q3 2020 to Q4 2020 Variance $2.7 $0.1 $62.5 ($8.9) $8.9 $ MILLIONS $59.7 Q3 2020 Harvest
Slide 6: Timberlands Results: Northern Region
TIMBERLANDS RESULTS NORTHERN REGION Q4 2020 Northern Sawlog Pricing and Volume Northern Pulpwood Pricing and Volume $200 700 $180 $50 60 600 $40 $160 50 Volume: Tons (thousands) $40 500 Volume: Tons (thousands) $120 40 378 Price: $/Ton 400 $30 Price: $/Ton 30 $60 300 $20 20 200 15 $40 $10 100 10 $0
Slide 7: Timberlands Results: Southern Region
TIMBERLANDS RESULTS SOUTHERN REGION Q4 2020 Southern Sawlog Pricing and Volume Southern Pulpwood Pricing and Volume $60 700 $35 $28 600 $45 $50 600 480 521 $30 500 Volume: Tons (thousands) 500 $25 $40 Volume: Tons (thousands) 400 $20 Price: $/Ton 400 Price: $/Ton $30 300 $15 300 200 $20 $10 200 $5 1
Slide 8: Wood Products Results
WOOD PRODUCTS Outstanding execution in a challenging environment and historic lumber RESULTS prices drove record annual Wood Products Adjusted EBITDDA of $176 million. Wood Products Adjusted EBITDDA – Q3 2020 to Q4 2020 Variance $81.7 ($2.1) ($5.8) ($4.6) $ MILLIONS $1.3 ($0.2) $70.3 Manufacturing R
Slide 9: Wood Products Results
WOOD PRODUCTS RESULTS Q4 2020 Lumber Pricing and Shipments Wood Products Adjusted EBITDDA ($ in millions) $90 $800 400 $629 $80 350 $70.3 $700 274 $70 300 Shipments (MMBF) $600 $60 Price: $/MBF 250 $50 $500 200 $40 150 $400 $30 100 $20 $300 50 $10 $200 0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 10: Real Estate Results
Record annual Real Estate Adjusted EBITDDA of $86.5 million reflects strong rural REAL ESTATE RESULTS and development sales, including sale of 72,440 acres to The Conservation Fund 2020 for nearly $48 million. Real Estate Adjusted EBITDDA – Q3 2020 to Q4 2020 Variance $5.8 ($1.0) $56.5 $38.3 $ MILLI
Slide 11: Real Estate Results
REAL ESTATE RESULTS Q4 2020 Rural - Acres Sold and Avg. Price Development – Residential Lots Sold and Avg. Price1 100 $3,000 $140,000 90 $700 70,000 $80,115 $120,000 80 $2,500 73,573 72 Average Price: $/Lot 60,000 Residential Lots Sold Average Price: $/Acre 70 $100,000 $2,000 50,000 60 Acres Sold $8
Slide 12: Favorable Capital Structure
In 2020, we returned $123 million to shareholders, refinanced $40 million of FAVORABLE CAPITAL debt and locked in historically low interest rates on future refinances. Liquidity of STRUCTURE $631 million provides a strong platform to continue growing shareholder value. Debt Maturities $200 $190 $176
Slide 13: Outlook
We expect housing fundamentals and lumber demand to remain strong in 2021. While lumber prices will likely moderate this year, we expect lumber prices to remain OUTLOOK higher than long-term averages. TIMBERLANDS Q1 2021 FY 2021 Harvest volume 1.2 - 1.3 million tons ~ 6.0 million tons Geographic har
Slide 14: Appendix
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Slide 15: Total Company Summary
TOTAL COMPANY SUMMARY in millions except per-share amounts – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Operating (loss) Income Timberlands $ 16.6 $ 15.7 $ 30.9 $ 24.7 $ 87.9 $ 22.4 $ 14.0 $ 45.9 $ 49.4 $ 131.7 Wood Products 2.2 (7.9) (0.2) (4.7) (10.6) 7.8 5.1 75.7 63.9 152.5 Real Esta
Slide 16: Operating Segment Adjusted EBITDDA
OPERATING SEGMENT Non - GAAP Reconciliation ADJUSTED EBITDDA in millions – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL TIMBERLANDS Northern Timberlands operating income $ 11.7 $ 10.1 $ 22.4 $ 18.4 $ 62.6 $ 17.8 $ 10.9 $ 40.5 $ 44.5 $ 113.7 Depreciation, depletion and amortization 2.0 1.8
Slide 17: Total Adjusted EBITDDA & CAD
TOTAL ADJUSTED Non - GAAP Reconciliation EBITDDA & CAD in millions – unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL TOTAL ADJUSTED EBITDDA Net (loss) Income (GAAP) $ 6.6 $ 17.1 $ 20.6 $ 11.4 $ 55.7 $ (16.8) $ 2.6 $ 81.0 $ 100.0 $ 166.8 Interest expense, net 5.4 7.9 8.5 8.6 30.4 3.7 8.3 8.6
Slide 18: Statistics: Timberlands and Wood Products
STATISTICS: TIMBERLANDS AND WOOD PRODUCTS unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL TIMBERLANDS Fee Volumes (tons) Northern Region Sawlog 373,865 324,556 529,030 472,620 1,700,071 433,870 302,917 554,845 377,685 1,669,317 Pulpwood 48,643 30,520 39,371 29,816 148,350 37,801 31,463 29,91
Slide 19: Statistics: Real Estate
STATISTICS: REAL ESTATE unaudited 2019 2020 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL RURAL Acres Sold HBU Development 759 2,497 975 846 5,077 630 2,257 1,599 1,003 5,489 Recreation Real Estate 1,143 1,637 5,037 2,152 9,969 880 2,216 1,201 541 4,838 Non-Strategic Timberlands 440 8,241 213 — 8,894 2,929 1,
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, depreci- ation and amortization, basis of real estate sold, non-operating pension and other post-retirement benefit costs, pension settlement charge, gains
Slide 21: Q4 2020 Earnings
Q4 2020 JERALD W. RICHARDS E A R N I N GS Vice President and Chief Financial Officer 509-835-1521 F E B R UA RY 2 , 2 0 2 1 PotlatchDeltic (NASDAQ: PCH) www.PotlatchDeltic.com