Rayonier (NYSE:RYN) today reported third quarter net income of
$81 million, or $1.01 per share. Year-to-date net income was $215
million, or $2.69 per share.
The 2009 results include a special item for earnings related to
the alternative fuel mixture credit (“AFMC”) of $49 million, or 61
cents per share and $128 million, or $1.61 per share, for the three
and nine months ended September 30, 2009, respectively. Excluding
the AFMC, third quarter earnings were $32 million, or 40 cents per
share, compared to $29 million, or 36 cents per share, in the prior
year period. Earnings for the nine months ended September 30, 2009,
excluding the AFMC, were $86 million, or $1.08 per share, compared
to $105 million, or $1.32 per share, in the first nine months of
2008.
Cash provided by operating activities was $214 million for the
nine months ended September 30, 2009 compared to $248 million in
2008. Year-to-date cash available for distribution1 was $163
million compared to $164 million in 2008. (See Schedule D for more
details.)
Lee M. Thomas, Chairman, President and CEO said, "We generated
solid cash flows in the third quarter as strong Performance Fibers
sales and continued interest in our rural properties helped offset
the negative impact of the housing market on our timber
segment.
“Additionally, in the third quarter, we successfully issued $173
million of six-year, 4.5 percent Senior Exchangeable Notes and are
using a portion of the proceeds to pay off a maturing note in
December. Overall, our unique business mix, manageable debt
maturities, and ample liquidity continue to provide good operating
flexibility,” said Thomas.
Timber
Third quarter sales and operating income of $46 million and $1
million increased $4 million and $2 million from the prior year
period, respectively. Year-to-date sales of $125 million declined
$20 million from prior year, while operating income decreased $21
million to an operating loss of $1 million.
In the Eastern region, sales and operating income increased from
the prior year periods reflecting higher volumes and lower costs.
However, these improvements were largely offset by a sales mix
shift from sawtimber to lower-price pulpwood. The year-to-date
results also benefited from increased non-timber income.
In the Western region, sales declined but operating results
improved for the third quarter compared to the prior year. The
results reflected lower sales prices and improved logging and
transportation costs. Year-to-date sales and operating income
decreased from 2008 due to lower prices and volumes from weak
markets and planned harvest reductions. Additionally, operating
income was impacted by higher depletion expense, partially offset
by lower other costs.
Real Estate
Sales of $22 million were $4 million below third quarter 2008,
while operating income of $13 million declined $1 million.
Increased rural property sales were more than offset by lower
non-strategic timberland and development acres, as well as, reduced
rural prices.
For the nine month period, sales of $90 million were $11 million
above the prior year period, while operating income of $51 million
increased $1 million. Higher non-strategic timberland volumes were
partially offset by lower per acre prices due to sales mix and
reduced rural property sales primarily due to timing.
Performance Fibers
For the quarter, sales of $217 million were $7 million above the
prior year period, while operating income of $50 million increased
$6 million. The results reflect higher cellulose specialties prices
somewhat offset by lower fluff prices and increased costs.
For the nine month period, sales of $598 million were $25
million higher than 2008, while operating income of $125 million
increased $8 million. The results reflect higher cellulose
specialties prices mostly offset by increased costs, declines in
fluff prices and lower cellulose specialties volumes as many
customers delayed orders into the back half of 2009.
Other Items
Excluding the impact of the AFMC, Corporate and other expenses
were $6 million and $21 million for the quarter and nine months
ended September 2009, respectively. Third quarter and year-to-date
expenses declined $1 million from the prior year periods primarily
due to a third quarter 2009 insurance recovery partially offset by
foreign exchange losses.
Interest and other expenses were $1 million and $2 million
higher for the three and nine months ended September 2009 compared
to 2008, respectively. The third quarter of 2008 included a $1
million favorable IRS settlement. The year-to-date results reflect
higher average net debt balances, partially offset by lower
interest rates.
Third quarter effective tax rates before discrete items were
25.2 percent and 14.3 percent in 2009 and 2008, respectively. For
the nine months ended, the effective tax rates before discrete
items were 22.1 percent and 15.5 percent in 2009 and 2008,
respectively. The increased rates in 2009 were due to
proportionately higher earnings from the taxable REIT subsidiary
(“TRS”).
Including discrete items, the effective tax rates for the
quarter and year-to-date were 17.8 percent and 14.6 percent
compared to 23.0 percent and 17.9 percent in 2008, respectively. In
the third quarter of 2008, the Company recorded discrete tax items
related to its New Zealand operations.
For the nine months ended 2009, $12 million of the AFMC was used
to offset the TRS’ federal estimated income tax payments. An
additional $9 million is expected to be applied against income tax
payments during the fourth quarter; a cash refund for the remaining
AFMC is anticipated to be received in 2010 after filing of the 2009
tax return.
Outlook
“We remain encouraged by signs of economic improvement,
including solid demand for our Performance Fibers products and
stable pulpwood markets. Our expectation of a gradual recovery in
housing leads us to continue to hold off harvest of our more
valuable sawtimber until pricing improves,” said Thomas.
“For the full year 2009, we anticipate EBITDA to be
approximately 10 percent below 2008, and EPS (excluding AFMC) to be
about 20 percent below 2008. Cash generation is expected to remain
strong, with CAD comparable to 2008 and well above our $2.00 per
share dividend,” Thomas concluded.
Further Information
A conference call will be held on Tuesday, October 27, 2009 at
2:00 p.m. EDT to discuss these results. Interested parties are
invited to listen to the live webcast by logging on to www.rayonier.com and following the link.
Investors may also choose to access the conference call by dialing
888-790-3052, password: Rayonier. Financial Presentation materials
are available at the website. A replay will be available on the
site shortly after the call.
For further information, visit the company’s website at
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.
1 Cash available for distribution (CAD) is a non-GAAP measure
defined and reconciled to GAAP in the attached exhibits.
Rayonier is a leading international forest products company with
three core businesses: Timber, Real Estate and Performance Fibers.
The company owns, leases or manages 2.5 million acres of timber and
land in the United States and New Zealand. 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 one of the world’s leading producers
of high-value specialty cellulose fibers. Approximately 40 percent
of the company’s sales are outside the U.S. to customers in
approximately 40 countries. Rayonier is structured as a real estate
investment trust. More information is available at
www.rayonier.com.
Certain statements in this document regarding anticipated
financial outcomes including earnings guidance, if any, business
and market conditions, outlook and other similar statements
relating to Rayonier's future financial and operational
performance, 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 are identified by the use of words such
as "may," "will," "should," "expect," "estimate," "believe,"
"anticipate" and other similar language. Forward-looking statements
are not guarantees of future performance and undue reliance should
not be placed on these statements.
The following important factors, among others, could cause
actual results to differ materially from those expressed in
forward-looking statements that may have been made in this
document: the effect of the current economic downturn, which is
impacting many areas of our economy, including the housing market,
availability and cost of credit, pricing of raw materials and
energy and demand for our products and real estate; the cyclical
and competitive nature of the industries in which we operate;
fluctuations in demand for, or supply of, our forest products and
real estate offerings; entry of new competitors into our markets;
changes in global economic conditions and world events, including
political changes in particular regions or countries; changes in
energy and raw material prices, particularly for our performance
fibers and wood products businesses; impacts of the rising cost of
fuel, including the cost and availability of transportation for our
products, both domestically and internationally, and the cost and
availability of third party logging and trucking services;
unanticipated equipment maintenance and repair requirements at our
manufacturing facilities; the geographic concentration of a
significant portion of our timberland; our ability to identify,
finance and complete timberland acquisitions; changes in
environmental laws and regulations, including laws regarding air
emissions and water discharges, remediation of contaminated sites,
timber harvesting, delineation of wetlands, and endangered species,
that may restrict or adversely impact our ability to conduct our
business, or increase the cost of doing so; adverse weather
conditions, natural disasters and other catastrophic events such as
hurricanes, wind storms and wildfires, which can adversely affect
our timberlands and the production, distribution and availability
of our products and raw materials such as wood, energy and
chemicals; interest rate and currency movements; our capacity to
incur additional debt, and any decision we may make to do so;
changes in tariffs, taxes or treaties relating to the import and
export of our products or those of our competitors; the ability to
complete like-kind-exchanges of property; changes in key management
and personnel; our ability to continue to qualify as a REIT and to
fund distributions using cash generated through our taxable REIT
subsidiaries; and changes in tax laws that could reduce the
benefits associated with REIT status, or the alternative fuel
mixture credit discussed in this document.
In addition, specifically with respect to our Real Estate
business, the following important factors, among others, could
cause actual results to differ materially from those expressed in
forward-looking statements that may have been made in this
document: the cyclical nature of the real estate business
generally, including fluctuations in demand for both entitled and
unentitled property; the current downturn in the housing market,
the lengthy, uncertain and costly process associated with the
ownership, entitlement and development of real estate, especially
in Florida, which also may be affected by changes in law, policy
and political factors beyond our control; the potential for legal
challenges to entitlements and permits in connection with our
properties; unexpected delays in the entry into or closing of real
estate transactions; the existence of competing developers and
communities in the markets in which we own property; the pace of
development and the rate and timing of absorption of existing
entitled property in the markets in which we own property; changes
in the demographics affecting projected population growth and
migration to the Southeastern U.S.; changes in environmental laws
and regulations, including laws regarding water withdrawal and
management and delineation of wetlands, that may restrict or
adversely impact our ability to sell or develop properties; the
cost of the development of property generally, including the cost
of property taxes, labor and construction materials; the timing of
construction and availability of public infrastructure; and the
availability of financing for real estate development and mortgage
loans.
Additional factors are described in 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
is required by law.
RAYONIER CONDENSED STATEMENTS
OF CONSOLIDATED INCOME September 30, 2009 (unaudited)
(millions of dollars, except per share information) Three
Months Ended Nine Months Ended September 30, June 30, September 30,
September 30, September 30, 2009 2009
2008 2009 2008
Sales $ 300.6 $ 278.7 $ 317.5 $ 858.7
$ 906.5 Costs and expenses Cost of sales 231.8 216.7
252.7 672.8 700.7 Selling and general expenses 16.0 14.3 16.2 45.0
48.0 Other operating income, net (a) (58.3 ) (86.5 )
(0.4 ) (147.7 ) (5.3 )
Operating income
(a) 111.1 134.2 49.0 288.6 163.1 Interest expense (12.8 ) (12.2
) (11.8 ) (37.6 ) (37.4 ) Interest and other income, net 0.3
0.2 0.3 0.5
2.4
Income before taxes 98.6 122.2 37.5 251.5 128.1
Income tax expense (17.5 ) (14.5 ) (8.6 )
(36.7 ) (22.9 )
Net income $ 81.1 $
107.7 $ 28.9 $ 214.8 $ 105.2
Income
per Common Share: Basic Net income $ 1.03 $ 1.37
$ 0.37 $ 2.72 $ 1.34 Diluted Net income $ 1.01
$ 1.35 $ 0.36 $ 2.69 $ 1.32
Pro forma net income (b) $ 0.40 $ 0.36 $ 0.36
$ 1.08 $ 1.32
Weighted average Common
Shares used for determining Basic EPS 79,145,323
78,913,563 78,580,895
78,956,526 78,404,815 Diluted EPS
80,107,115 79,789,075 79,571,363
79,746,034 79,389,285 (a)
Includes $55.8 million and $85.9 million for the alternative fuel
mixture credit during the three months ended September 30, 2009 and
June 30, 2009, respectively, and $141.8 million for the nine months
ended September 30, 2009. (b) Pro forma net income excludes
earnings for the alternative fuel mixture credit of $0.61 per share
and $0.99 per share for the three months ended September 30, 2009
and June 30, 2009, respectively, and $1.61 per share for the nine
months ended September 30, 2009. Pro forma net income is a non-GAAP
measure, see Schedule D for a reconciliation to the nearest GAAP
measure.
-A-
RAYONIER CONDENSED CONSOLIDATED BALANCE
SHEETS AND STATEMENTS OF CASH FLOWS September 30, 2009
(unaudited) (millions of dollars)
CONDENSED
CONSOLIDATED BALANCE SHEETS September 30, December 31, 2009
2008
Assets Cash and cash equivalents $ 153.1 $ 61.7 AFMC
receivable, net 133.3 - Other current assets 257.2 217.3 Timber and
timberlands, net of depletion and amortization 1,191.7 1,255.0
Property, plant and equipment 1,414.4 1,393.6 Less - accumulated
depreciation (1,068.1 ) (1,042.8 ) Net property,
plant and equipment 346.3 350.8 Investment in New Zealand JV 48.8
43.0 Other assets 161.8 154.1 $ 2,292.2
$ 2,081.9
Liabilities and Shareholders' Equity
Current liabilities $ 166.4 $ 159.6 Long-term debt 809.1 746.6
Non-current liabilities for dispositions and discontinued
operations 90.2 96.4 Other non-current liabilities 148.8 140.4
Shareholders' equity 1,077.7 938.9 $
2,292.2 $ 2,081.9
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended
September 30, 2009 2008
Cash provided by operating
activities: Net income $ 214.8 $ 105.2 Depreciation, depletion,
amortization 126.8 112.0 Non-cash basis of real estate sold 6.3 7.6
Other non-cash items included in income 17.8 25.8
Changes in working capital and
other assets and liabilities
(151.4 ) (a) (2.4 ) 214.3 248.2
Cash used for investing activities: Capital
expenditures (65.1 ) (74.9 ) Purchase of timberlands - (229.5 )
Change in restricted cash 1.2 4.6 Other (7.7 ) (8.4 )
(71.6 ) (308.2 )
Cash used for financing
activities: Borrowings, net of repayments and issuance costs
67.8 44.4 Dividends paid (118.5 ) (117.6 ) Issuance of common
shares 9.2 8.2 Repurchase of common shares (1.4 ) (3.7 ) Excess tax
benefits from equity-based compensation 2.3 3.4 Purchase of
exchangeable note hedge (23.5 ) - Proceeds from issuance of warrant
12.5 - (51.6 ) (65.3 )
Effect of exchange rate changes on cash 0.3
(0.8 )
Cash and cash equivalents: Change in cash and
cash equivalents 91.4 (126.1 ) Balance, beginning of year
61.7 181.1 Balance, end of period $ 153.1
$ 55.0 (a) Includes $128.3 million of
working capital increases for the alternative fuel mixture credit.
-B-
RAYONIER BUSINESS SEGMENT SALES AND OPERATING INCOME
(LOSS) September 30, 2009 (unaudited) (millions of
dollars) Three Months Ended Nine Months Ended September 30,
June 30, September 30, September 30, September 30, 2009 2009 2008
2009 2008
Sales Timber $ 46.5 $ 43.6 $ 42.9 $ 125.0 $ 145.4
Real Estate 21.9 41.4 26.0 89.9 78.8 Performance Fibers Cellulose
specialties 173.1 134.7 156.8 464.5 436.5 Absorbent materials
43.7 42.4 53.3
133.1 135.6 Total Performance Fibers
216.8 177.1 210.1 597.6
572.1 Wood Products 13.3 12.5 24.1 37.5 67.5
Other Operations 8.5 9.0 14.4 23.2 42.7 Intersegment Eliminations
(6.4 ) (4.9 ) - (14.5 ) -
Total sales $ 300.6 $ 278.7 $ 317.5 $
858.7 $ 906.5
Pro forma operating
income/(loss) (a) Timber $ 1.0 $ 0.4 $ (1.4 ) $ (0.9 ) $ 20.1
Real Estate 12.8 24.2 14.0 51.4 50.4 Performance Fibers 49.5 34.7
43.0 125.1 116.8 Wood Products (2.0 ) (2.5 ) 0.3 (8.1 ) (2.6 )
Corporate and other (6.0 ) (8.5 ) (6.9 )
(20.7 ) (21.6 )
Pro forma operating income (a)
$ 55.3 $ 48.3 $ 49.0 $ 146.8 $ 163.1
(a) Corporate and other excludes $55.8 and $85.9
million of operating income related to the alternative fuel mixture
credit for the three months ended September 30, 2009 and June 30,
2009, respectively, and $141.8 million for the nine months ended
September 30, 2009. Pro forma operating income is a non-GAAP
measure, see Schedule D for a reconciliation to the nearest GAAP
measure. - C -
RAYONIER RECONCILIATION OF NON-GAAP MEASURES
September 30, 2009 (unaudited) (millions of dollars, except
per share information)
CASH AVAILABLE FOR DISTRIBUTION
(a): Nine Months Ended September 30, September 30, 2009 2008
Cash provided by operating activities $ 214.3 $ 248.2 Capital
expenditures (b) (65.1 ) (74.9 ) Change in committed cash 21.8 3.5
Like-kind exchange tax benefits on real estate sales (c) - (9.0 )
Other (7.7 ) (4.1 )
Cash Available for
Distribution $ 163.3 $ 163.7 (a)
Cash Available for Distribution (CAD) is defined as cash provided
by operating activities adjusted for capital spending, the tax
benefits associated with certain strategic acquisitions, the change
in committed cash, and other items which include cash provided by
discontinued operations, proceeds from matured energy forward
contracts and the change in capital expenditures purchased on
account. 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. (b) Capital spending
excludes strategic acquisitions. (c) Represents taxes that would
have been paid if the Company had not completed LKE transactions.
PRO FORMA OPERATING INCOME AND NET INCOME: Three
Months Ended September 30, June 30, September 30, 2009 2009 2008
$
Per Diluted
Share
$
Per Diluted
Share
$
Per Diluted
Share
Operating Income $ 111.1 $ 134.2 $ 49.0 Alternative Fuel
Mixture Credit (55.8 ) (85.9 ) -
Pro Forma
Operating Income $ 55.3 $ 48.3 $ 49.0
Net Income $ 81.1 $ 1.01 $ 107.7 $ 1.35 $ 28.9 $ 0.36
Alternative Fuel Mixture Credit (49.1 ) (0.61 )
(79.3 ) (0.99 ) - -
Pro Forma Net
Income $ 32.0 $ 0.40 $ 28.4 $ 0.36
$ 28.9 $ 0.36 Nine Months Ended
September 30, September 30, 2009 2008 $
Per Diluted
Share
$
Per Diluted
Share
Operating Income $ 288.6 $ 163.1 Alternative Fuel Mixture
Credit (141.8 ) -
Pro Forma Operating
Income $ 146.8 $ 163.1
Net Income $
214.8 $ 2.69 $ 105.2 $ 1.32 Alternative Fuel Mixture Credit
(128.5 ) (1.61 ) - -
Pro
Forma Net Income $ 86.3 $ 1.08 $ 105.2 $
1.32 -D-
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