18 slides from Rayonier Inc. Reit's earnings presentation, Jan 31, 2017
Slide 1: Q4 2016 Earnings Release
Q4 2016 Earnings Release January 31, 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: Q4 2016: Total Company Summary
Q4 2016: Total Company Summary (unaudited, $ in millions, except per share amounts) 2016 2016 2015 2016 2016 2016 2015 2016 Q3 Q4 Q3 Q4 Operating Income (1) EBITDDA Resource $ 33.3 $ 22.7 $ 76.3 $ 81.9 Northern region $ 29.4 $ 19.3 $ 74.1 $ 74.6 Wood Products 10.6 8.3 (5.2) 24.6 Southern region 10.3
Slide 4: Resource: Segment Summary
RESOURCE: Segment Summary • Northern sawlog prices decreased 13% due largely to a lower mix of cedar sawlogs • Southern sawlog prices decreased 7%, primarily the result of a seasonal decrease in hardwood logs in the sales mix $50 50% Operating Income (millions) Margin (%) 39% $40 34% 40% 34% 36% 28%
Slide 5: Northern Region – Volume, Pricing and EBITDDA
RESOURCE: Northern Region – Volume, Pricing and EBITDDA Sawlog Pulpwood 900 $110 140 $50 800 120 Tons (thousands) $100 700 $45 100 Tons (thousands) 600 $90 80 $40 $/Ton 500 $/Ton $80 400 60 $35 300 $70 40 200 $30 $60 20 100 0 $50 0 $25 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015
Slide 6: Southern Region – Volume, Pricing and EBITDDA
RESOURCE: Southern Region – Volume, Pricing and EBITDDA Sawlog Pulpwood 400 $60 400 $50 350 350 $50 $45 Tons (thousands) Tons (thousands) 300 300 $40 250 250 $40 $/Ton $/Ton 200 $30 200 150 150 $35 $20 100 100 $10 $30 50 50 0 $0 0 $25 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2
Slide 7: Wood Products: Segment Summary
WOOD PRODUCTS: Segment Summary • Wood Products achieved a new quarterly lumber production record in Q4, beating the record just set in Q3 • Lumber shipments increased 3% in Q4 • Average lumber prices were 2% lower in Q4 $15 15% Operating Income (millions) 10% 11% $10 9% 10% $10.6 $9.1 $8.3 5% Margin
Slide 8: Lumber Sales Prices, Shipments and EBITDDA
WOOD PRODUCTS: Lumber Sales Prices, Shipments and EBITDDA 200 $500 165 171 175 180 Shipment Volumes 162 (thousand board ft) 156 154 152 155 (millions of board ft) 150 $393 $386 $425 $ / MBF $369 $363 $351 $351 $335 100 $316 $324 $350 50 $275 0 $200 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 EBITDDA(1
Slide 9: Real Estate: Segment Summary
REAL ESTATE: Segment Summary(1) • Real Estate operating income and margins in Q4 were the same as the strong Q3 results • The effect of the sale of more acres in Q4 was offset by a lower average sale price due to more non-strategic timberland sales in the mix in Q4 $12 100% Operating Income (million
Slide 10: Acres Sold, Average Price and EBITDDA
REAL ESTATE: Acres Sold, Average Price and EBITDDA(1) 14,000 $3,000 $2,595 AVG Weighted Price 10,500 $2,250 Acres Sold $1,726 $1,800 $1,445 $1,602 $1,603 $1,195 $1,359 $1,339 7,000 $1,500 5,530 4,535 4,560 6,292 4,140 7,248 3,022 3,473 3,500 $750 2,153 0 $0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS DEBT MATURITIES FOR THE NEXT FIVE YEARS Amounts as of December 31, 2016: (in millions) Unaudited, $ in millions $190 Cash and cash equivalents $ 82.6 Debt $ 584.0 Pension & postretirement liability $ 123.3 (1) Net debt to enterprise value 22.9% $46 $40 (2) 3.6% $11 $14 Dividend
Slide 12: Outlook
OUTLOOK • Harvest 4.2 million tons for the year • Slightly more than half of annual volume in the South • Sawlogs ≈90% of Northern volume and ≈47% of Southern volume RESOURCE • Harvest 750,000 – 800,000 tons Q1 • Higher prices for cedar sawlogs offset the effect of seasonally heavier logs in the Nor
Slide 13: Appendix
4\ Potlatch. | Appendix www.potlatchcorp.com
Slide 14: Statistics: Resource
STATISTICS: Resource (unaudited) 2014 2015 2016 Fee Volumes (tons) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Northern Region Sawlog 538,738 451,548 287,979 762,813 490,625 366,852 388,575 579,837 474,024 Pulpwood 48,883 47,840 31,284 69,329 46,449 52,361 44,497 62,138 35,418 Stumpage 1,007 16,903 3,277 2,604 790 1
Slide 15: Statistics: Wood Products & Real Estate
STATISTICS: Wood Products & Real Estate (unaudited) 2014 2015 2016 Wood Products Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Lumber Shipments (MBF) 156,123 154,206 152,071 155,388 164,965 161,992 170,829 175,358 180,050 Lumber Sales Prices ($ per MBF) $ 393 $ 386 $ 351 $ 335 $ 316 $ 324 $ 351 $ 369 $ 363 (1) Real Es
Slide 16: Total Company Earnings Summary
Total Company Earnings Summary (unaudited, $ in millions, except per share amounts) 2014 2015 2016 2015 2016 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating income: Resource $ 23.9 $ 15.0 $ 8.8 $ 36.4 $ 16.1 $ 10.2 $ 15.7 $ 33.3 $ 22.7 $ 76.3 $ 81.9 Wood Products 9.1 3.5 (2.0) (5.4) (1.3) 1.0 4.7 10.6 8.3 (5.2
Slide 17: Non-GAAP Reconciliation: Operating Segment EBITDDA
NON-GAAP RECONCILIATION: Operating Segment EBITDDA (unaudited, $ in millions) 2014 2015 2016 2015 2016 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Northern Resource Operating Income $ 18.4 $ 12.7 $ 6.3 $ 28.6 $ 11.7 $ 8.6 $ 12.3 $ 26.9 $ 17.0 $ 59.3 $ 64.8 Depreciation, depletion and amortization 3.9 3.7 1.9 5.3 3.9
Slide 18: Non-GAAP Reconciliation: Adjusted Net Income
NON-GAAP RECONCILIATION: Adjusted Net Income (unaudited, $ in millions, except per share amounts) 2016 Adjusted Net Income Amount Per share As reported $ 10.9 $ 0.27 Central Idaho timberland sale: Loss on sale 48.5 1.18 Income tax benefit (11.8) (0.29) As adjusted $ 47.6 $ 1.16 Q4 2016 Earnings Rele