Rayonier (NYSE:RYN) today reported second quarter income from
continuing operations of $42.8 million, or 55 cents per share. This
compares to $23.3 million, or 30 cents per share, in the first
quarter and $41.6 million, or 54 cents per share, in second quarter
2005. Second quarter 2006 included a special item gain of $6.5
million, or 8 cents per share, on the sale of a portion of the
company's investment in a New Zealand timberland consortium. There
were no special items in the first quarter, while second quarter
2005 included a tax benefit of $7.2 million, or 10 cents per share,
resulting from an IRS audit settlement. Net income equaled income
from continuing operations for both the second and first quarters
of 2006. Net income for second quarter 2005 was $16.9 million, or
22 cents per share, which included a discontinued operation loss of
$24.7 million, or 32 cents per share, almost entirely due to a
write-down of the company's medium-density-fiberboard business. Lee
Nutter, Chairman, President and CEO, said: "Second quarter results
reflect the strength and balance of our three core businesses as
demand and prices remained strong, particularly for cellulose
specialties and U.S. timber." Second quarter results, excluding
special items, were above the first quarter primarily due to
increased volumes and prices for Northwest timber and cellulose
specialties. Compared to second quarter 2005, earnings were up due
to higher prices and Northwest timber volumes, partly offset by
increased performance fibers manufacturing costs and lower lumber
prices. Sales for the second quarter of $312 million were $35
million and $22 million above first quarter 2006 and second quarter
2005, respectively. Cash provided by operating activities of $133
million for the six months ended June 30 was $10 million above the
2005 comparable period primarily due to lower working capital
requirements partly offset by reduced earnings. For the same
period, Cash Available for Distribution (CAD) of $82 million was
$14 million below 2005 principally due to capital spending for a
major energy cost reduction project partly offset by increased cash
provided by operating activities. (CAD is a non-GAAP measure
defined and reconciled to GAAP in the attached exhibits.) Debt of
$557 million and the debt-to-capital ratio of 38.6 percent at
quarter-end were comparable to year-end 2005. Cash at June 30 was
$165 million. Timber Sales of $61 million and operating income of
$30 million were $7 million and $6 million above first quarter,
respectively, primarily due to higher Northwest volume and prices.
Compared to second quarter 2005, both sales and operating income
increased $7 million principally due to higher prices and Northwest
volume. Real Estate Sales of $18 million and operating income of
$11 million were $5 million and $1 million above first quarter,
respectively, due to a significant increase in the number of rural
acres sold. Compared to second quarter 2005, sales were up $3
million while operating income was essentially unchanged due to a
higher proportion of rural versus development acres sold.
Performance Fibers Sales of $166 million and operating income of
$16 million were $20 million and $5 million above first quarter,
respectively. The results reflect higher prices and volumes partly
offset by increased costs. Compared to second quarter 2005, sales
increased $13 million mainly due to higher cellulose specialties
volume and prices. However, operating income decreased $3 million
as higher raw material and energy costs more than offset increased
sales. The company recently announced that it has secured long term
contracts into 2011 with its key customers for nearly 80 percent of
its high-value cellulose specialties production, representing
almost 2 million metric tons and more than $2 billion in revenue at
current pricing. Wood Products Sales of $32 million were $1 million
above first quarter while operating income of $2 million decreased
$1 million. The improvement in sales was mostly due to higher
volume partly offset by lower prices. Operating income declined
principally due to lower prices partially offset by reduced
manufacturing costs. Compared to second quarter 2005, sales and
operating income were both down $4 million primarily due to lower
prices. Other Operations Sales of $35 million were $3 million above
first quarter while essentially break even operating income
improved by $1 million due to stronger trading activity and coal
royalties. Compared to second quarter 2005, sales and operating
income improved $4 million and $1 million, respectively, mainly due
to stronger trading activity. Other Items Corporate expenses of
$7.1 million were $2.4 million below first quarter and $1.2 million
below second quarter 2005, primarily due to lower stock-based
incentive compensation. Intersegment eliminations and other expense
of $0.7 million was $1 million unfavorable to first quarter largely
due to an increase in disposition reserves, but comparable to
second quarter 2005. Interest expense of $11.9 million was
comparable to first quarter and $0.9 million below second quarter
2005 mainly due to lower debt. Interest and other income of $1.8
million was comparable to first quarter, but $0.8 million above
second quarter 2005 primarily due to higher interest income.
Excluding discrete items, the effective tax rate for the quarter
was 14.0 percent compared to 16.4 percent in the first quarter
largely due to foreign earnings taxed below the U.S. statutory
rate. The second quarter 2005 rate was 14.1 percent. Through June
30, the effective tax rate, before discrete items, was 14.9 percent
compared to 15.7 percent for the comparable period last year mainly
due to U.S. taxes recorded on undistributed foreign earnings in
2005 (see Schedule J for details). Outlook The company said third
quarter 2006 results are expected to be above the second quarter
(excluding special items), due to higher real estate sales partly
offset by seasonally lower Northwest timber volume. Also, earnings
are anticipated to be above third quarter 2005 primarily due to
increased real estate sales and higher cellulose specialties prices
partly offset by lower lumber prices and higher performance fibers
manufacturing costs. Nutter said: "As we previously indicated, the
second half of the year should be much stronger than the first due
to increased real estate revenues - particularly from transactions
involving our high-value development properties - and stronger
performance fibers operating income. As a result, we still expect
full-year earnings to be above 2005, excluding special items."
About Rayonier Rayonier is a leading international forest products
company with three core businesses: Timber, Real Estate and
Performance Fibers. It owns, leases or manages 2.5 million acres of
timber and land in the U.S., New Zealand and Australia. The
company's holdings include approximately 200,000 acres with
residential and commercial development potential along the
fast-growing Interstate 95 corridor between Savannah, Georgia, and
Daytona Beach, Florida. Its Performance Fibers business is the
world's leading producer of high-value specialty cellulose fibers.
Approximately 40 percent of the company's sales are outside the
U.S. to customers in more than 50 countries. Except for historical
information, the statements made in this press release are
"forward-looking statements" made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. These forward-looking
statements, which include statements regarding anticipated
earnings, revenues, volumes, pricing, costs and other statements
relating to Rayonier's financial and operational performance, in
some cases are identified by the use of words such as "may,"
"will," "should," "expect," "estimate," "believe," "anticipate" and
other similar language. The following important factors, among
others, could cause actual results to differ materially from those
expressed in the forward-looking statements contained in this
release: changes in global market trends and world events; interest
rate and currency movements; fluctuations in demand for, or supply
of, cellulose specialty products, absorbent materials, timber, wood
products or real estate and entry of new competitors into these
markets; adverse weather conditions affecting production, timber
availability and sales, or distribution; changes in production
costs for wood products or performance fibers, particularly for raw
materials such as wood, energy and chemicals; unexpected delays in
the entry into or closing of real estate sale transactions; changes
in law or policy that might condition, limit or restrict the
development of real estate; the ability of the company to identify
and complete timberland and higher-value real estate acquisitions;
the company's ability to continue to qualify as a REIT; the ability
of the company to complete tax-efficient exchanges of real estate;
and implementation or revision of governmental policies and
regulations affecting the environment, endangered species, import
and export controls or taxes, including changes in tax laws that
could reduce the benefits associated with REIT status. For
additional factors that could impact future results, please see the
company's most recent Form 10-K on file with the Securities and
Exchange Commission. Rayonier assumes no obligation to update these
statements except as may be required by law. A conference call will
be held on Tuesday, July 25, at 2:00 p.m. EDT to discuss these
results. Interested parties are invited to listen to the live
webcast by logging onto http://www.rayonier.com and following the
link. Supplemental materials will be available at the website. A
replay will be available on the site shortly after the call where
it will be archived for one month. Also, investors may access the
"listen only" conference call by dialing 913-981-5584. For further
information, visit the company's web site at
http://www.rayonier.com. Complimentary copies of Rayonier press
releases and other financial documents are also available by mail
or fax by calling 1-800-RYN-7611. -0- *T RAYONIER FINANCIAL
HIGHLIGHTS JUNE 30, 2006 (unaudited) (millions of dollars, except
per share information) Three Months Ended Six Months Ended
------------------------------ ------------------- June 30, March
31, June 30, June 30, June 30, 2006 2006 2005 2006 2005 ---------
---------- --------- --------- --------- Profitability Sales $312.1
$277.2 $290.3 $589.3 $565.3 Operating income $ 51.0 $ 37.3 $ 48.9 $
88.3 $ 96.2 Income from continuing operations $ 42.8 $ 23.3 $ 41.6
$ 66.1 $ 76.4 Discontinued operations $ - $ - $(24.7) $ - $(25.1)
Net income $ 42.8 $ 23.3 $ 16.9 $ 66.1 $ 51.3 Income per diluted
common share Continuing operations $ 0.55 $ 0.30 $ 0.54 $ 0.85 $
0.99 Net income $ 0.55 $ 0.30 $ 0.22 $ 0.85 $ 0.67 Pro forma income
from continuing operations (a) $ 0.47 $ 0.30 $ 0.44 $ 0.77 $ 0.77
Operating income as a percent of sales 16.3% 13.5% 16.8% 15.0%
17.0% ROE (annualized) (b) 12.9% 10.0% 15.0% 12.9% 15.0% Six Months
Ended June 30, -------------------------- 2006 2005 ------ ------
Capital Resources and Liquidity Continuing operations: Cash
provided by operating activities $133.1 $122.9 Cash used for
investing activities $(47.7) $(45.7) Cash used for financing
activities $(66.3) $(25.8) Adjusted EBITDA (c) (e) $159.2 $174.4
Cash Available for Distribution (CAD) (d) (e) $ 81.7 $ 95.8
(Repayment)/borrowing of debt, net $ (1.5) $ 28.4 Debt $556.5
$686.8 Debt / capital 38.6% 46.3% Cash $165.0 $136.3 (a), (b), (c),
(d) and (e), see Schedule B. - A - *T -0- *T RAYONIER FOOTNOTES FOR
SCHEDULE A JUNE 30, 2006 (unaudited) (a) Pro forma income is a
non-GAAP measure. See Schedule H for reconciliation to the nearest
GAAP measure. (b) Based on year-to-date percent; major land sales
are not annualized. (c) Adjusted EBITDA is defined as earnings from
continuing operations before interest, taxes, depreciation,
depletion, amortization and the non-cash cost basis of real estate
sold. Adjusted EBITDA is a non-GAAP measure of operating cash
generating capacity of the Company. See reconciliation on Schedule
I. (d) Cash Available for Distribution (CAD) is defined as cash
provided by operating activities of continuing operations less
capital spending, adjusted for equity based compensation amounts,
proceeds from matured energy forward contracts, the tax benefits
associated with certain strategic acquisitions and the change in
committed cash. CAD is a non-GAAP measure of cash generated during
a period that is available for dividend distribution, repurchase of
the Company's common shares, debt reduction and for strategic
acquisitions net of associated financing. See reconciliation on
Schedule H. (e) Management considers these measures to be important
to estimate the enterprise and shareholder values of the Company as
a whole and of its core segments, and for allocating capital
resources. In addition, analysts, investors and creditors use these
measures when analyzing the financial condition and cash generating
ability of the Company. - B - *T -0- *T RAYONIER CONDENSED
STATEMENTS OF CONSOLIDATED INCOME JUNE 30, 2006 (unaudited)
(millions of dollars, except per share information) Three Months
Ended Six Months Ended -----------------------------------
---------------------- June 30, March 31, June 30, June 30, June
30, 2006 2006 2005 2006 2005 ----------- ----------- -----------
----------- ---------- Sales $312.1 $277.2 $290.3 $589.3 $565.3
----------- ----------- ----------- ----------- ---------- Costs
and expenses Cost of sales 247.4 224.2 227.0 471.6 444.4 Selling
and general expenses 14.4 16.2 15.3 30.6 29.8 Other operating
income, net (0.7) (0.5) (0.9) (1.2) (5.1) ----------- -----------
----------- ----------- ---------- Operating income 51.0 37.3 48.9
88.3 96.2 Gain on sale of portion of New Zealand JV 7.8 - - 7.8 -
----------- ----------- ----------- ----------- ---------- Income
from continuing operations, including gain on sale of portion of
New Zealand joint venture 58.8 37.3 48.9 96.1 96.2 Interest expense
(11.9) (12.2) (12.8) (24.1) (25.1) Interest and other income, net
1.8 2.2 1.0 4.0 1.5 ----------- ----------- ----------- -----------
---------- Income before taxes 48.7 27.3 37.1 76.0 72.6 Income tax
(expense)/ benefit (5.9) (4.0) 4.5 (9.9) 3.8 -----------
----------- ----------- ----------- ---------- Income from
continuing operations $ 42.8 $ 23.3 $ 41.6 $ 66.1 $ 76.4
Discontinued operations, net - - (24.7) - (25.1) -----------
----------- ----------- ----------- ---------- Net income $ 42.8 $
23.3 $ 16.9 $ 66.1 $ 51.3 =========== =========== ===========
=========== ========== Income per Common Share: Basic From
continuing operations $ 0.56 $ 0.31 $ 0.55 $ 0.87 $ 1.01
=========== =========== =========== =========== ========== Net
income $ 0.56 $ 0.31 $ 0.22 $ 0.87 $ 0.68 =========== ===========
=========== =========== ========== Diluted From continuing
operations $ 0.55 $ 0.30 $ 0.54 $ 0.85 $ 0.99 ===========
=========== =========== =========== ========== Net income $ 0.55 $
0.30 $ 0.22 $ 0.85 $ 0.67 =========== =========== ===========
=========== ========== Pro forma income from continuing operations
(a) Adjusted basic EPS $ 0.48 $ 0.31 $ 0.45 $ 0.79 $ 0.79
=========== =========== =========== =========== ========== Adjusted
diluted EPS $ 0.47 $ 0.30 $ 0.44 $ 0.77 $ 0.77 ===========
=========== =========== =========== ========== Weighted average
Common Shares used for determining Basic EPS 76,465,269 76,289,274
75,326,922 76,377,976 75,253,811 =========== ===========
=========== =========== =========== Diluted EPS 77,969,132
78,006,773 77,412,110 77,989,798 77,278,596 =========== ===========
=========== =========== =========== (a) See Schedule H for a
reconciliation to the nearest GAAP measure. - C - *T -0- *T
RAYONIER BUSINESS SEGMENT SALES AND OPERATING INCOME (LOSS) JUNE
30, 2006 (unaudited) (millions of dollars) Three Months Ended Six
Months Ended ------------------------------ ------------------ June
30, March 31, June 30, June 30, June 30, 2006 2006 2005 2006 2005
--------- ---------- --------- -------- --------- Sales Timber $
61.1 $ 54.4 $ 54.5 $115.5 $106.4 Real Estate 17.8 13.1 14.7 30.9
38.3 Performance Fibers Cellulose specialties 126.4 106.7 108.0
233.1 209.1 Absorbent materials 39.4 39.3 45.2 78.7 87.1 ---------
---------- --------- --------- --------- Total Performance Fibers
165.8 146.0 153.2 311.8 296.2 --------- ---------- ---------
--------- --------- Wood Products 32.2 31.6 36.4 63.8 66.9 Other
Operations 35.3 32.1 31.5 67.4 57.8 Intersegment eliminations (0.1)
- - (0.1) (0.3) --------- ---------- --------- --------- ---------
Total sales $312.1 $277.2 $290.3 $589.3 $565.3 ========= ==========
========= ========= ========= Operating income/(loss) Timber $ 29.8
$ 23.8 $ 23.1 $ 53.6 $ 46.8 Real Estate 10.9 10.2 10.7 21.1 26.0
Performance Fibers 15.7 10.3 18.5 26.0 30.9 Wood Products 2.0 2.6
5.8 4.6 9.0 Other Operations 0.4 (0.4) (0.4) - (0.2) Corporate
(7.1) (9.5) (8.3) (16.6) (15.9) Intersegment eliminations and other
(Including Corporate FX) (0.7) 0.3 (0.5) (0.4) (0.4) ---------
---------- --------- --------- --------- Total operating income $
51.0 $ 37.3 $ 48.9 $ 88.3 $ 96.2 ========= ========== =========
========= ========= - D - *T -0- *T RAYONIER CONDENSED CONSOLIDATED
BALANCE SHEETS AND STATEMENTS OF CASH FLOWS JUNE 30, 2006
(unaudited) (millions of dollars) CONDENSED CONSOLIDATED BALANCE
SHEETS June 30, December 31, 2006 2005 --------- ------------
Assets Current assets $ 403.3 $ 354.1 Timber, timberlands and
logging roads, net of depletion and amortization 917.3 927.0
Property, plant and equipment 1,387.5 1,352.4 Less - accumulated
depreciation (1,018.7) (991.1) --------- ---------- 368.8 361.3
--------- ---------- Investment in New Zealand JV 55.9 81.7 Other
assets 114.3 115.0 --------- ---------- $1,859.6 $1,839.1 =========
========== Liabilities and Shareholders' Equity Current liabilities
$ 192.1 $ 170.1 Deferred income taxes 34.8 32.2 Long-term debt
554.7 555.2 Non-current reserves for dispositions and discontinued
operations 124.0 128.0 Other non-current liabilities 69.0 68.7
Shareholders' equity 885.0 884.9 --------- ---------- $1,859.6
$1,839.1 ========= ========== CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS Six Months Ended ---------------------- June 30, June
30, 2006 2005 --------- ------------ Cash provided by operating
activities of continuing operations: Income from continuing
operations $ 66.1 $ 76.4 Depreciation, depletion, amortization and
non-cash cost basis of real estate sold 71.1 78.0 Other non-cash
items included in income (4.0) (12.6) Changes in working capital
and other assets and liabilities (0.1) (18.9) --------- ----------
133.1 122.9 --------- ---------- Cash used for investing activities
of continuing operations: Capital expenditures, net of sales and
retirements (61.6) (43.7) Purchase of timberlands (4.3) - Proceeds
from sale of portion of New Zealand JV 21.7 - Increase in
restricted cash (4.2) (2.0) Proceeds from matured energy forward
contracts 0.7 - --------- ---------- (47.7) (45.7) ---------
---------- Cash used for financing activities:
(Repayment)/borrowing of debt, net (1.5) 28.4 Dividends paid (71.8)
(62.2) Issuance of common shares 5.3 8.0 Repurchase of common
shares (0.5) - Excess tax benefits from equity-based
compensation(1) 2.2 - --------- ---------- (66.3) (25.8) ---------
---------- Effect of exchange rate changes on cash (0.3) 0.1
--------- ---------- Cash provided by discontinued operations - 0.7
--------- ---------- Cash and cash equivalents: Increase in cash
and cash equivalents 18.8 52.2 Balance, beginning of year 146.2
84.1 --------- ---------- Balance, end of period $ 165.0 $ 136.3
========= ========== (1) SFAS No. 123R requires the excess tax
benefits on equity-based compensation to be included as a financing
activity. Since the Company did not adopt SFAS No. 123R until
January 1, 2006, no adjustment is required for the six months ended
June 30, 2005. - E - *T -0- *T RAYONIER SELECTED SUPPLEMENTAL
FINANCIAL DATA JUNE 30, 2006 (unaudited) (millions of dollars)
Three Months Ended Six Months Ended ----------------------
---------------- June March June June June 30, 31, 30, 30, 30, 2006
2006 2005 2006 2005 -------- ------ ------ ------- -------
Geographical Data (Non-U.S.) Sales New Zealand $ 8.2 $ 5.5 $14.1
$13.7 $23.0 Other 3.7 4.5 2.8 8.2 5.5 -------- ------ ------
------- ------- Total $11.9 $10.0 $16.9 $21.9 $28.5 ======== ======
====== ======= ======= Operating income (loss) New Zealand $(0.3)
$(1.1) $1.0 $(1.4) $1.5 Other (0.5) (0.4) (0.4) (0.9) (0.6)
-------- ------ ------ ------- ------- Total $(0.8) $(1.5) $0.6
$(2.3) $0.9 ======== ====== ====== ======= ======= Timber Sales
Northwest U.S. $35.2 $27.1 $26.0 $62.3 $52.3 Southeast U.S. 23.5
25.0 21.6 48.5 42.5 New Zealand 2.4 2.3 6.9 4.7 11.6 --------
------ ------ ------- ------- Total $61.1 $54.4 $54.5 $115.5 $106.4
======== ====== ====== ======= ======= Operating income Northwest
U.S. $21.4 $16.0 $16.0 $37.4 $32.4 Southeast U.S. 8.8 8.9 5.8 17.7
12.2 New Zealand (0.4) (1.1) 1.3 (1.5) 2.2 -------- ------ ------
------- ------- Total $29.8 $23.8 $23.1 $53.6 $46.8 ======== ======
====== ======= ======= Adjusted EBITDA by Segment(1) Timber $43.3
$38.8 $38.4 $82.1 $76.7 Real Estate 15.5 11.5 12.6 27.0 35.1
Performance Fibers 33.1 25.4 37.3 58.5 65.7 Wood Products 3.8 4.3
7.6 8.1 12.6 Other Operations 0.5 (0.2) 0.1 0.3 0.4 Corporate and
other (7.9) (8.9) (8.8) (16.8) (16.1) -------- ------ ------
------- ------- Total $88.3 $70.9 $87.2 $159.2 $174.4 ========
====== ====== ======= ======= (1) Adjusted EBITDA is a non-GAAP
measure, see Schedule I for reconciliation to nearest GAAP measure.
- F - *T -0- *T RAYONIER SELECTED OPERATING INFORMATION JUNE 30,
2006 (unaudited) Three Months Ended Six Months Ended
------------------------------ ------------------- June 30, March
31, June 30, June 30, June 30, 2006 2006 2005 2006 2005 ---------
---------- --------- --------- --------- Timber Northwest U.S., in
millions of board feet 89 75 69 164 145 Southeast U.S., in
thousands of short green tons 1,204 1,247 1,206 2,451 2,427 Real
Estate Acres sold Development 7 744 1,006 751 2,526 Rural 9,613
2,660 5,031 12,273 14,179 Northwest U.S. 4 - 149 4 229 ---------
---------- --------- --------- --------- Total 9,624 3,404 6,186
13,028 16,934 Performance Fibers Sales Volume Cellulose
specialties, in thousands of metric tons 121 104 113 225 220
Absorbent materials, in thousands of metric tons 63 65 69 128 136
Production as a percent of capacity 99.2% 98.9% 100.1% 99.0% 99.8%
Lumber Sales volume, in millions of board feet 92 84 90 176 173 - G
- *T -0- *T RAYONIER RECONCILIATION OF NON-GAAP MEASURES JUNE 30,
2006 (unaudited) (millions of dollars, except per share
information) CASH AVAILABLE FOR DISTRIBUTION: Six Months Ended
---------------------- June 30, June 30, 2006 2005 ---------
--------- Cash provided by operating activities $ 133.1 $ 122.9
Capital spending (a) (61.6) (43.7) Like-kind exchange tax benefits
on third party real estate sales (b) (2.6) (0.9) Decrease in
committed cash 7.9 5.5 Equity based compensation adjustments 4.2 -
Release of restricted cash (c) - 12.0 Proceeds from matured forward
energy contracts 0.7 - --------- --------- Cash Available for
Distribution $ 81.7 $ 95.8 ========= ========= (a) Capital spending
is net of sales and retirements and excludes strategic acquisitions
and dispositions. (b) Represents taxes that would have been paid if
the Company had not completed LKE transactions. (c) Released on
July 19, 2005. PRO FORMA INCOME: Three Months Ended Six Months
Ended ------------------------------ ------------------- June 30,
March 31, June 30, June 30, June 30, 2006 2006 2005 2006 2005
--------- ---------- --------- --------- --------- Income from
Continuing Operations per Common Share Basic EPS $0.56 $0.31 $0.55
$0.87 $1.01 ========= ========== ========= ========= =========
Diluted EPS $0.55 $0.30 $0.54 $0.85 $0.99 ========= ==========
========= ========= ========= Sale of portion of New Zealand JV
Basic EPS (0.08) - - (0.08) - ========= ========== =========
========= ========= Diluted EPS (0.08) - - (0.08) - =========
========== ========= ========= ========= IRS audit settlements
Basic EPS - - (0.10) - (0.22) ========= ========== =========
========= ========= Diluted EPS - - (0.10) - (0.22) =========
========== ========= ========= ========= Pro forma income from
Continuing Operations per Common Share Adjusted basic EPS $0.48
$0.31 $0.45 $0.79 $0.79 ========= ========== ========= =========
========= Adjusted diluted EPS $0.47 $0.30 $0.44 $0.77 $0.77
========= ========== ========= ========= ========= - H - *T -0- *T
RAYONIER RECONCILIATION OF NON-GAAP MEASURES (1) JUNE 30, 2006
(unaudited) (millions of dollars) ADJUSTED EBITDA: Perf- Other
Corporate Real ormance Wood Opera- and Timber Estate Fibers
Products tions other Total ------ ------ ------ -------- -----
------- ----- Three Months Ended June 30, 2006 Cash provided by
operating activities $ 53.1 $18.7 $14.8 $ 6.3 $ 7.1 $(17.7) $ 82.3
Income tax expense - - - - - 5.9 5.9 Interest, net - - - - - 9.9
9.9 Working capital increases (decreases) (6.8) (3.1) 18.2 (2.5)
(6.4) (18.9) (19.5) Other balance sheet changes (3.0) (0.1) 0.1 -
(0.2) 12.9 9.7 ------ ----- ----- ----- ----- ------ ------
Adjusted EBITDA $ 43.3 $15.5 $33.1 $ 3.8 $ 0.5 $ (7.9) $ 88.3
====== ===== ===== ===== ===== ====== ====== March 31, 2006 Cash
provided by operating activities $ 43.8 $ 7.5 $29.6 $ 0.7 $ 0.5
$(31.3) $ 50.8 Income tax expense - - - - - 4.0 4.0 Interest, net -
- - - - 10.0 10.0 Working capital increases (decreases) 4.5 4.0
(4.2) 3.6 (0.9) 3.5 10.5 Other balance sheet changes (9.5) - - -
0.2 4.9 (4.4) ------ ----- ----- ----- ----- ------ ------ Adjusted
EBITDA $ 38.8 $11.5 $25.4 $ 4.3 $(0.2) $ (8.9) $ 70.9 ====== =====
===== ===== ===== ====== ====== June 30, 2005 Cash provided by
operating activities $ 37.4 $(0.4) $29.0 $ 6.9 $ 2.5 $(28.0) $ 47.4
Income tax benefit - - - - - (4.5) (4.5) Interest, net - - - - -
11.6 11.6 Working capital increases (decreases) (1.4) 10.9 8.3 0.7
(2.0) 3.6 20.1 Other balance sheet changes 2.4 2.1 - - (0.4) 8.5
12.6 ------ ----- ----- ----- ----- ------ ------ Adjusted EBITDA $
38.4 $12.6 $37.3 $ 7.6 $ 0.1 $ (8.8) $ 87.2 ====== ===== =====
===== ===== ====== ====== Six Months Ended June 30, 2006 Cash
provided by operating activities $ 96.9 $26.2 $44.4 $ 7.0 $ 7.6
$(49.0) $133.1 Income tax expense - - - - - 9.9 9.9 Interest, net -
- - - - 19.9 19.9 Working capital increases (decreases) (2.3) 0.9
14.0 1.1 (7.3) (15.4) (9.0) Other balance sheet changes (12.5)
(0.1) 0.1 - - 17.8 5.3 ------ ----- ----- ----- ----- ------ ------
Adjusted EBITDA $ 82.1 $27.0 $58.5 $ 8.1 $ 0.3 $(16.8) $159.2
====== ===== ===== ===== ===== ====== ====== June 30, 2005 Cash
provided by operating activities $ 83.1 $26.1 $54.7 $ 8.5 $(1.2)
$(48.3) $122.9 Income tax benefit - - - - - (3.8) (3.8) Interest,
net - - - - - 23.3 23.3 Working capital increases (decreases) (6.2)
7.2 11.0 4.1 0.1 3.9 20.1 Other balance sheet changes (0.2) 1.8 - -
1.5 8.8 11.9 ------ ----- ----- ----- ----- ------ ------ Adjusted
EBITDA $ 76.7 $35.1 $65.7 $12.6 $ 0.4 $(16.1) $174.4 ====== =====
===== ===== ===== ====== ====== (1) Unusual, non-trade intercompany
items between the segments have been eliminated. - I - *T -0- *T
RAYONIER RECONCILIATION OF STATUTORY INCOME TAX TO REPORTED INCOME
TAX JUNE 30, 2006 (unaudited) (millions of dollars, except
percentages) Three Months Ended
------------------------------------------- June 30, March 31, June
30, 2006 2006 2005 ------------- ------------ ------------- $ % $ %
$ % ------ ------ ----- ------ ------ ------ Income tax provision
at the U.S. statutory rate $(17.0) (35.0) $(9.6) (35.0) $(13.0)
(35.0) REIT income not subject to federal tax 11.4 23.4 8.0 29.3
9.9 26.7 Lost deduction on REIT interest expense and overhead
expenses associated with REIT activities (2.7) (5.6) (3.2) (11.7)
(2.6) (7.0) Foreign, state and local income taxes, foreign exchange
rate changes and permanent differences 1.5 3.2 0.3 1.0 0.5 1.2
------ ------ ----- ------ ------ ------ Income tax (expense)
benefit before discrete items $ (6.8) (14.0) $(4.5) (16.4) $ (5.2)
(14.1) Return to accrual adjustments 0.9 1.9 - - - - Favorable IRS
audit settlements - - 0.5 1.8 7.2 19.4 Exchange rate changes on tax
on undistributed foreign earnings - - - - 2.5 6.7 Non-realizability
of New Zealand tax credits on U.S. withholding tax for prior years'
intercompany note interest - - - - - - ------ ------ ----- ------
------ ------ Income tax (expense) benefit $ (5.9) (12.1) $(4.0)
(14.6) $ 4.5 12.0 ====== ====== ===== ====== ====== ====== Six
Months Ended ----------------------------- June 30, June 30, 2006
2005 ------------- ------------- $ % $ % ------ ------ ------
------ Income tax provision at the U.S. statutory rate $(26.6)
(35.0) $(25.4) (35.0) REIT income not subject to federal tax 19.4
25.5 18.3 25.2 Lost deduction on REIT interest expense and overhead
expenses associated with REIT activities (5.9) (7.8) (5.3) (7.3)
Foreign, state and local income taxes, foreign exchange rate
changes and permanent differences 1.8 2.4 1.0 1.4 ------ ------
------ ------ Income tax (expense) benefit before discrete items
$(11.3) (14.9) $(11.4) (15.7) Return to accrual adjustments 0.9 1.2
- - Favorable IRS audit settlements 0.5 0.7 16.7 23.1 Exchange rate
changes on tax on undistributed foreign earnings - - 1.4 1.9
Non-realizability of New Zealand tax credits on U.S. withholding
tax for prior years' intercompany note interest - - (2.9) (4.0)
------ ------ ------ ------ Income tax (expense) benefit $ (9.9)
(13.0) $ 3.8 5.3 ====== ====== ====== ====== - J - *T
Rayonier (NYSE:RYN)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Rayonier (NYSE:RYN)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024