- Second quarter net loss of ($1.5)
million or ($0.01) per share; year-to-date net income of $16.2
million or $0.13 per share
- Second quarter pro forma net income of
$0.0 million or $0.00 per share; year-to-date pro forma net income
of $17.8 million or $0.14 per share
- Adjusted EBITDA of $33.1 million in
second quarter and $94.6 million year-to-date
Rayonier Inc. (NYSE:RYN) today reported second quarter net loss
attributable to Rayonier of ($1.5) million, or ($0.01) per share,
versus income of $16.4 million, or $0.12 per share, in the prior
year quarter. The second quarter results include $1.5 million of
costs related to shareholder litigation.1 The prior year second
quarter results included $12.1 million of income from discontinued
operations2 and $3.8 million of costs related to the spin-off.
Excluding these items, pro forma net income3 was $0.0 million, or
$0.00 per share versus $8.1 million, or $0.06 per share, in the
prior year period.
For the first six months of 2015, net income attributable to
Rayonier was $16.2 million, or $0.13 per share, versus $57.8
million, or $0.44 per share in the prior year period. Pro forma net
income3 was $17.8 million, or $0.14 per share, versus $18.5
million, or $0.14 per share, in the prior year period.
The following table summarizes the current quarter and
comparable prior year period results on a pro forma basis:
Three Months Ended (millions of dollars, except earnings per
share (EPS))
June 30, 2015 June 30, 2014
$ EPS $ EPS Net (loss)
income attributable to Rayonier ($1.5 ) ($0.01 ) $16.4 $0.12 Costs
related to shareholder litigation1 1.5 0.01 — — Costs related to
the spin-off of the Performance Fibers business — — 3.8 0.03
Discontinued operations, net2 — — (12.1 ) (0.09 ) Pro
forma net income3 $—
$—
$8.1 $0.06
The following table summarizes the current year-to-date and
comparable prior year period results on a pro forma basis:
Six Months Ended (millions of dollars,
except earnings per share (EPS))
June 30, 2015 June 30,
2014 $ EPS $ EPS Net income
attributable to Rayonier $16.2 $0.13 $57.8 $0.44 Costs related to
shareholder litigation1 1.6 0.01 — — Costs related to the spin-off
of the Performance Fibers business — — 3.8 0.03 Discontinued
operations, net2 — — (43.1 ) (0.33 ) Pro forma net
income3 $17.8 $0.14 $18.5 $0.14
Adjusted EBITDA4 was $33.1 million for the second quarter of
2015 versus $70.2 million in the prior year period. Adjusted
EBITDA4 was $94.6 million for the first six months of 2015 versus
$113.7 million in the prior year period. Cash provided by operating
activities was $85.9 million versus $229.1 million in the prior
year period, which included $64.0 million in cash flows from
discontinued operations.2 Cash available for distribution (CAD)5 of
$52.3 million increased $12.2 million versus the prior year period
due to lower cash interest paid ($11.7 million), lower cash tax
payments ($10.1 million), decreased capital expenditures from
continuing operations ($7.5 million) and decreased real estate
development costs ($2.0 million), which were partially offset by
lower Adjusted EBITDA4 ($19.1) million. Cash interest and taxes
paid in the prior year period include payments related to the
spun-off Performance Fibers business.
“In Southern Timber, higher volumes and prices compared with the
prior year quarter reflected continued strong demand in our key
market areas,” said David Nunes, President and CEO. “However,
reductions in harvest volumes in the Pacific Northwest coupled with
lower prices in the Pacific Northwest and New Zealand, primarily
due to weaker demand from China, negatively impacted results in
these segments. In Real Estate, sales of significantly fewer acres
of non-strategic timberlands and the timing of closings led to
lower results this quarter than in the prior year period.”
Southern Timber
Second quarter sales of $32.7 million increased $1.2 million
versus the prior year period due to higher harvest volumes and
improved pricing. Harvest volumes increased 13% to 1.3 million tons
versus 1.1 million tons in the prior year period. Average sawtimber
stumpage prices increased 4% to $27.33 per ton versus $26.16 per
ton in the prior year period, while pulpwood stumpage prices
increased 1% to $19.10 per ton versus $18.94 per ton in the prior
year period. The increase in average sawtimber prices was driven by
restricted supply as a result of wet weather, partially offset by
increased harvest activity in lower-price sawtimber regions. The
increase in average pulpwood prices was driven primarily by strong
demand in the Company’s core pulpwood markets. Overall, weighted
average stumpage prices (including hardwood) increased 2% to $21.03
per ton versus $20.71 per ton in the prior year period. Operating
income of $11.8 million increased $2.9 million versus the prior
year period due to higher volumes ($1.9 million), higher pricing
($0.1 million), and higher non-timber income ($1.9 million), which
were partially offset by higher depletion rates ($0.6 million) and
higher costs ($0.5 million).
Second quarter Adjusted EBITDA4 of $24.4 million was $4.8
million above the prior year period.
Year-to-date sales of $68.2 million increased $2.8 million
versus the prior year period due to higher harvest volumes and
improved pricing. Harvest volumes increased 10% to 2.7 million tons
versus 2.4 million tons in the prior year period. Average sawtimber
stumpage prices increased 6% to $28.13 per ton versus $26.63 per
ton in the prior year period, while pulpwood stumpage prices
increased 1% to $18.96 per ton versus $18.74 per ton in the prior
year period. The increase in average sawtimber prices was driven by
restricted supply as a result of wet weather, partially offset by
increased harvest activity in lower-price sawtimber regions. The
increase in average pulpwood prices was driven primarily by strong
demand in the Company’s core pulpwood markets. Overall, weighted
average stumpage prices (including hardwood) increased 3% to $21.37
per ton versus $20.71 per ton in the prior year period. Operating
income of $24.2 million increased $4.8 million versus the prior
year period due to higher volumes ($3.2 million), higher pricing
($0.9 million), and higher non-timber income ($3.4 million), which
were partially offset by higher depletion rates ($1.7 million) and
costs ($1.0 million).
Year-to-date Adjusted EBITDA4 of $51.2 million was $9.1 million
above the prior year period.
Pacific Northwest Timber
Second quarter sales of $17.1 million decreased $8.0 million
versus the prior year period due to the planned reduction of
harvest volumes and, to a lesser extent, lower sawtimber prices.
Harvest volumes declined 44% to 0.25 million tons versus 0.45
million tons in the prior year period. Average delivered sawtimber
prices decreased 9% to $76.80 per ton versus $84.46 per ton in the
prior year period, while delivered pulpwood prices increased 17% to
$43.37 per ton versus $37.10 per ton in the prior year period.
Weaker demand from China contributed to sawtimber price declines in
the region, while strong local demand for pulpwood proximate to our
properties resulted in lower haul costs and higher net stumpage
prices. Operating income of $1.7 million decreased $7.1 million
versus the prior year period due to lower volumes ($5.5 million)
and lower prices ($2.0 million), which were partially offset by
higher non-timber income ($0.5 million) primarily as a result of a
strong cedar market.
Second quarter Adjusted EBITDA4 of $4.6 million was $9.4 million
below the prior year period.
Year-to-date sales of $36.3 million decreased $21.8 million
versus the prior year period due to the planned reduction of
harvest volumes and, to a lesser extent, lower sawtimber prices.
Harvest volumes declined 42% to 0.58 million tons versus 1.0
million tons in the prior year period. Average delivered sawtimber
prices decreased 11% to $73.98 per ton versus $83.05 per ton in the
prior year period, while delivered pulpwood prices increased 15% to
$43.29 per ton versus $37.55 per ton in the prior year period.
Weaker demand from China resulted in a lower export mix of 22%
versus 24% in the prior year period and contributed to sawtimber
price declines in the region. Operating income of $4.3 million
decreased $17.1 million versus the prior year period due to lower
volumes ($13.0 million), lower prices ($4.6 million) and higher
costs ($0.4 million), which were partially offset by higher
non-timber income ($1.0 million).
Year-to-date Adjusted EBITDA4 of $11.0 million was $21.9 million
below the prior year period.
New Zealand Timber
Second quarter sales of $39.2 million decreased $5.2 million
versus the prior year period due to lower domestic and export
product prices, which were partially offset by higher domestic
pulpwood and export sawtimber volumes. Harvest volumes increased
11% to 0.58 million tons versus 0.52 million tons in the prior year
period. Average delivered prices for export sawtimber declined 28%
to $85.31 per ton versus $118.12 per ton in the prior year period,
while average delivered prices for domestic sawtimber declined 21%
to $66.96 per ton versus $84.64 per ton in the prior year period.
The decline in export sawtimber prices was primarily due to weaker
demand from China, while the decline in domestic sawtimber prices
(in U.S. dollar terms) was driven primarily by the fall in the
NZ$/US$ exchange rate (US$.74 per NZ$1.00 versus US$.86 per
NZ$1.00). Operating loss of ($0.9) million versus operating income
of $2.2 million in the prior year period was primarily due to the
decrease in prices ($3.9 million) and foreign exchange losses ($2.0
million), which were partially offset by lower depletion rates
($1.7 million) and lower costs ($1.4 million).
Second quarter Adjusted EBITDA4 of $6.2 million was $3.7 million
below the prior year period.
Year-to-date sales of $80.4 million decreased $1.9 million
versus the prior year period due to lower domestic and export
product prices, which were partially offset by higher domestic
pulpwood and export sawtimber volumes. Harvest volumes increased
14% to 1.1 million tons versus 1.0 million tons in the prior year
period. Average delivered prices for export sawtimber declined 22%
to $93.21 per ton versus $119.15 per ton in the prior year period,
while average delivered prices for domestic sawtimber declined 17%
to $68.76 per ton versus $82.53 per ton in the prior year period.
The decline in export sawtimber prices was primarily due to weaker
demand from China, while the decline in domestic sawtimber prices
(in U.S. dollar terms) was driven primarily by the fall in the
NZ$/US$ exchange rate (US$.75 per NZ$1.00 versus US$.84 per
NZ$1.00). Operating income of $4.8 million was comparable to the
prior year period, as the decrease in prices ($4.8 million) and
foreign exchange losses ($2.0 million) were largely offset by lower
depletion rates ($2.9 million) and costs ($2.2 million).
Year-to-date Adjusted EBITDA4 of $19.9 million was $1.0 million
below the prior year period.
Real Estate
Second quarter sales of $6.9 million decreased $27.1 million
versus the prior year period, and operating income of $1.4 million
decreased $26.4 million versus the prior year period. Sales and
operating income decreased in the second quarter due to lower
volumes (2,337 acres sold versus 25,283 acres in the prior year
period) partially offset by higher weighted average prices ($2,971
per acre versus $1,345 per acre in the prior year period).
Year-to-date sales of $30.7 million decreased $8.8 million
versus the prior year period, and operating income of $14.0 million
decreased $14.5 million versus the prior year period. Sales and
operating income decreased due to lower volumes (9,734 acres sold
versus 27,405 acres in the prior year period) partially offset by
higher weighted average prices ($3,157 per acre versus $1,443 per
acre in the prior year period).
Second quarter and year-to-date operating income also decreased
as the prior year periods included $5.8 million in proceeds from a
bankruptcy settlement with respect to a former land sale
customer.
Improved Development second quarter and year-to-date sales of
$0.8 million were comprised of 19 acres in the Belfast Commerce
Centre near Savannah, Georgia for $42,281 per acre.
Unimproved Development second quarter sales of $0.8 million
decreased $0.6 million versus the prior year period. The prior year
period included a six-acre sale to the Florida Department of
Transportation for $173,574 per acre. Year-to-date sales of $5.6
million increased $4.1 million versus the prior year period and
included 217 acres in St. Johns County, Florida for $17,000 per
acre, 76 acres in Bryan County, Georgia for $8,305 per acre and 20
acres in Baker County, Florida for $10,000 per acre.
Rural second quarter and year-to-date sales of $3.3 million and
$10.1 million decreased $2.1 million and $0.4 million,
respectively, versus the prior year periods due to a decrease in
average prices. The prior year period included a 656-acre sale in
Nassau County, Florida for $2,750 per acre and a higher proportion
of sales in higher-price regions.
Non-strategic/Timberland second quarter and year-to-date sales
of $2.0 million and $14.2 million decreased $25.2 million and $13.3
million, respectively, versus the prior year period. The prior year
period included 19,556 acres of non-strategic timberlands in
Gilchrist County, Florida at $1,125 per acre and 3,629 acres sold
to the Alabama Department of Conservation for $1,435 per acre.
Second quarter and year-to-date Adjusted EBITDA4 of $3.6 million
and $23.8 million were $32.9 million and $15.3 million,
respectively, below the prior year period.
Trading
Second quarter sales of $19.8 million decreased $9.4 million
versus the prior year period due to lower volumes and prices
primarily as a result of continued weak demand in China. Sales
volumes decreased 1.3% to 234,000 tons versus 237,000 tons in the
prior year period. Average prices decreased 29.4% to $84.16 per ton
versus $119.28 per ton in the prior year period. Operating loss of
$0.1 million was comparable to the prior year period.
Year-to-date sales of $40.5 million decreased $24.4 million
versus the prior year period due to lower volumes and prices as a
result of unfavorable China market conditions. Sales volumes
decreased 12.7% to 448,000 tons versus 513,000 tons in the prior
year period. Average prices decreased 27.8% to $88.58 per ton
versus $122.67 per ton in the prior year period. Operating income
increased $0.7 million versus the prior year period, as the
reductions in price and volume were more than offset by favorable
costs and NZ$/US$ exchange gains ($1.3 million).
Other Items
Excluding $1.5 million and $1.6 million of costs related to the
shareholder litigation1, second quarter and year-to-date corporate
and other operating expenses of $5.8 million and $11.6 million
decreased $4.2 million and $9.8 million, respectively, versus the
prior year periods primarily due to lower selling, general and
administrative expenses as a result of the spin-off of the
Performance Fibers business.
Second quarter and year-to-date interest expense of $8.5 million
and $17.0 million decreased $7.1 million and $9.3 million,
respectively, versus the prior year periods primarily due to lower
outstanding debt and $5.0 million of interest expense related to an
early repayment of debt in the prior year periods.
Excluding $3.8 million of costs related to the spin-off in the
prior year period, second quarter and year-to-date other
non-operating expenses of $1.2 million and $2.7 million increased
$0.6 million and $1.1 million, respectively, primarily due to
unfavorable mark-to-market adjustments on New Zealand joint venture
interest rate swaps.
The second quarter and year-to-date income tax benefit from
continuing operations was $0.3 million and $0.7 million versus an
income tax expense of $13.6 million and $5.9 million, respectively,
in the prior year periods. The current quarter and year-to-date tax
benefit is principally related to the New Zealand joint venture.
The expense in the prior year periods was primarily related to the
Performance Fibers business.
Share Repurchases
During the second quarter the Company repurchased approximately
$10.7 million of common stock at an average price of $25.94 per
share. As of June 30, 2015, the Company had 126.5 million shares of
common stock outstanding and $89.3 million remaining in its current
share repurchase authorization.
Outlook
“We remain on track to achieve our full-year Adjusted EBITDA
guidance,” stated Nunes. “In our Southern Timber segment, we
anticipate continued strong pulpwood demand and prices in our key
market areas. We continue to expect that the gradual improvement in
U.S. housing demand will drive increases in Southern sawtimber
prices over the long term; however, we expect limited upside to
current prices through the remainder of 2015. In our Pacific
Northwest and New Zealand segments, we anticipate near-term
weakness in the China export market will weigh on prices but that
export demand will gradually improve, although likely at a slower
pace than we expected earlier in the year. In our Real Estate
segment, we continue to see steady demand for rural properties and
increasing interest in selected development properties as we
execute on our strategy and develop catalysts for demand.”
“In addition, as announced separately today, we entered into a
credit agreement with CoBank, ACB, as administrative agent, and a
syndicate of Farm Credit institutions and other commercial banks to
provide $550 million of new credit facilities, which we expect will
lower our overall interest expense, improve the capital structure
and cash flows of our New Zealand joint venture, and allow for
continued disciplined capital allocation to improve our overall
portfolio and contribute to stronger cash flows.”
Conference Call
A conference call will be held on Thursday, August 6, 2015
at 10:00 AM EDT to discuss these results. Supplemental materials
and access to the live webcast will be available at
www.rayonier.com. Investors may also choose to access the
conference call by dialing (800) 369-1184, password: Rayonier. A
replay of this webcast will be available on the Company's website
shortly after the call. A replay of the teleconference will be
available one hour after the call ends until Thursday, August 13,
2015. The replay number is (866) 480-3542, passcode: 5631.
Complimentary copies of Rayonier press releases and other financial
documents are also available by calling 1-800-RYN-7611.
1“Costs related to shareholder litigation” include expenses
incurred as a result of the securities litigation, the shareholder
derivative demands and the Securities and Exchange Commission
investigation. See Note 12—Contingencies of Item 1 — Financial
Statements in the Company’s most recent Quarterly Report on Form
10-Q.
2Discontinued operations include Performance Fibers business in
the three and six months ended June 30, 2014.
3Pro forma net income is a non-GAAP measure defined and
reconciled to GAAP in the attached exhibits.
4Adjusted EBITDA is a non-GAAP measure defined and reconciled to
GAAP in the attached exhibits.
5CAD is a non-GAAP measure defined and reconciled to GAAP in the
attached exhibits.
About Rayonier
Rayonier is a leading timberland real estate investment trust
with assets located in some of the most productive timber growing
regions in the U.S. and New Zealand. As of June 30, 2015,
Rayonier owned, leased or managed approximately 2.7 million acres
of timberlands located in the U.S. South (1.9 million acres), U.S.
Pacific Northwest (373,000 acres) and New Zealand (444,000 acres).
More information is available at www.rayonier.com.
___________________________________________________________________________
Forward-Looking Statements
Certain statements in this document regarding anticipated
financial outcomes including Rayonier’s earnings guidance, if any,
business and market conditions, outlook, expected dividend rate,
Rayonier’s business strategies, including expected harvest
schedules, timberland acquisitions, sales of non-strategic
timberlands, the anticipated benefits of Rayonier’s business
strategies, and other similar statements relating to Rayonier’s
future events, developments or financial or operational performance
or results, 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,”
“intend,” “project,” “anticipate” and other similar language.
However, the absence of these or similar words or expressions does
not mean that a statement is not forward-looking. While management
believes that these forward-looking statements are reasonable when
made, forward-looking statements are not guarantees of future
performance or events and undue reliance should not be placed on
these statements.
The following important factors, among others, could cause
actual results or events to differ materially from those expressed
in forward-looking statements that may have been made in this
document: 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; fluctuations in demand for our products in Asia, and
especially China; various lawsuits relating to matters arising out
of our previously announced internal review and the restatement of
our consolidated financial statements; the uncertainties of
potential impacts of climate-related initiatives; the cost and
availability of third party logging and trucking services; 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 regarding 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; 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; changes in key management and personnel; our
ability to meet all necessary legal requirements to continue to
qualify as a real estate investment trust (“REIT”) and changes in
tax laws that could adversely affect tax treatment of our specific
businesses or reduce the benefits associated with REIT status.
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; a delayed or weak recovery 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.
For additional factors that could impact future results, please
see Item 1A — Risk Factors in the Company’s most recent Annual
Report on Form 10-K and similar discussions included in other
reports that we subsequently file with the Securities and Exchange
Commission (the “SEC”).
Forward-looking statements are only as of the date they are
made, and the Company undertakes no duty to update its
forward-looking statements except as required by law. You are
advised, however, to review any further disclosures we make on
related subjects in our subsequent reports filed with the SEC.
RAYONIER INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED
INCOME
June 30, 2015 (unaudited)
(millions of dollars, except per share
information)
Three Months Ended Six Months Ended June 30, March
31, June 30, June 30, June 30, 2015 2015 2014 2015
2014
SALES $115.8 $140.3 $163.1 $256.1
$306.3 Costs and Expenses Cost of sales 103.7 107.2 123.1 210.9
239.0 Selling and general expenses 12.7 10.9 13.9 23.6 27.1 Other
operating income, net (7.1 ) (5.5 ) (11.5 ) (12.7 ) (11.8 )
OPERATING INCOME 6.5 27.7 37.6 34.3 52.0 Interest expense
(8.5 ) (8.5 ) (15.6 ) (17.0 ) (26.3 ) Interest income and
miscellaneous expense, net (1.2 ) (1.5 ) (4.4 ) (2.7 ) (5.4 )
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(3.2 ) 17.7 17.6 14.6 20.3 Income tax benefit (expense) 0.3
0.5 (13.6 ) 0.7 (5.9 )
(LOSS) INCOME FROM
CONTINUING OPERATIONS (2.9 ) 18.2 4.0 15.3 14.4 Income from
discontinued operations, net — — 12.1 —
43.1
NET (LOSS) INCOME (2.9 ) 18.2 16.1 15.3 57.5
Less: Net (loss) income attributable to noncontrolling interest
(1.4 ) 0.5 (0.3 ) (0.9 ) (0.3 )
NET (LOSS) INCOME
ATTRIBUTABLE TO RAYONIER INC. ($1.5 ) $17.7 $16.4
$16.2 $57.8
(LOSS) EARNINGS PER COMMON SHARE BASIC (LOSS)
EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. Continuing
Operations ($0.01 ) $0.14 $0.03 $0.13 $0.12 Discontinued Operations
— — 0.10 — 0.34 Net (Loss)
Income ($0.01 ) $0.14 $0.13 $0.13 $0.46
DILUTED
(LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC.
Continuing Operations ($0.01 ) $0.14 $0.03 $0.13 $0.11 Discontinued
Operations — — 0.09 — 0.33 Net
(Loss) Income ($0.01 ) $0.14 $0.12 $0.13 $0.44
Pro forma Net Income (a)
$—
$0.14 $0.06 $0.14 $0.14
Weighted
Average Common Shares used for determining Basic EPS
126,635,710 126,614,334 126,434,376
126,625,081 126,390,891 Diluted EPS 126,635,710
127,727,393 132,299,665 127,504,651
132,118,689 (a) Pro forma Net Income per share is a
non-GAAP measure. See Schedule E for definition and a
reconciliation to the nearest GAAP measure.
A
RAYONIER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
June 30, 2015 (unaudited)
(millions of dollars)
June 30, December 31, 2015 2014
Assets Cash and cash equivalents $91.6 $161.6 Other current
assets 54.1 52.1 Timber and timberlands, net of depletion and
amortization 2,086.7 2,088.5 Higher and better use timberlands and
real estate development costs 69.7 77.4 Property, plant and
equipment 15.0 14.9 Less - accumulated depreciation (8.6 ) (8.2 )
Net property, plant and equipment 6.4 6.7 Other assets 57.8
66.8 $2,366.3 $2,453.1
Liabilities and
Shareholders’ Equity Current maturities of long-term debt 30.0
$129.7 Other current liabilities 82.4 72.3 Long-term debt 722.4
621.8 Other non-current liabilities 54.2 54.1 Total Rayonier Inc.
shareholders’ equity 1,404.1 1,488.5 Noncontrolling interest 73.2
86.7 Total shareholders’ equity 1,477.3
1,575.2 $2,366.3 $2,453.1
B
RAYONIER INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
June 30, 2015 (unaudited)
(millions of dollars)
Six Months Ended June 30,
2015 2014
Cash provided by operating activities: Net income
$15.3 $57.5 Depreciation, depletion and amortization 53.8 56.3
Non-cash cost of land sold and real estate development costs
recovered upon sale 4.9 5.4 Depreciation, depletion and
amortization from discontinued operations — 38.0 Other items to
reconcile net income to cash provided by operating activities 4.1
21.9 Changes in working capital and other assets and liabilities
7.8 50.0 85.9 229.1
Cash used for
investing activities: Capital expenditures (26.1 ) (33.6 )
Capital expenditures from discontinued operations — (47.1 ) Real
estate development costs (0.6 ) (2.6 ) Purchase of timberlands
(88.4 ) (74.8 ) Change in restricted cash 4.2 63.1 Other 3.6
(0.4 ) (107.3 ) (95.4 )
Cash used for financing activities:
Increase in debt, net of issuance costs 27.7 118.9 Dividends paid
(63.4 ) (124.6 ) Proceeds from the issuance of common shares 0.7
3.3 Repurchase of common shares (9.1 ) (1.8 ) Net cash disbursed
upon spin-off of Performance Fibers business — (106.4 ) Other —
(0.7 ) (44.1 ) (111.3 )
Effect of exchange rate changes
on cash (4.5 ) 0.1
Cash and cash equivalents:
Change in cash and cash equivalents (70.0 ) 22.5 Balance, beginning
of year 161.6 199.6 Balance, end of period $91.6
$222.1
C
RAYONIER INC. AND SUBSIDIARIES
BUSINESS SEGMENT SALES AND OPERATING
INCOME
June 30, 2015 (unaudited)
(millions of dollars)
Three Months Ended Six Months Ended June 30, March
31, June 30, June 30, June 30, 2015 2015 2014 2015
2014
Sales Southern Timber $32.7 $35.5 $31.5 $68.2 $65.4
Pacific Northwest Timber 17.1 19.2 25.1 36.3 58.1 New Zealand
Timber 39.2 41.2 44.4 80.4 82.3 Real Estate 6.9 23.8 34.0 30.7 39.5
Trading 19.8 20.6 29.2 40.5 64.9 Intersegment Eliminations 0.1
— (1.1 ) — (3.9 )
Total sales
$115.8 $140.3 $163.1 $256.1 $306.3
Pro forma operating income/(loss) (a) Southern
Timber $11.8 $12.4 $8.9 $24.2 $19.4 Pacific Northwest Timber 1.7
2.6 8.8 4.3 21.4 New Zealand Timber (0.9 ) 5.7 2.2 4.8 4.6 Real
Estate 1.4 12.6 27.8 14.0 28.5 Trading (0.1 ) 0.3 (0.1 ) 0.2 (0.5 )
Corporate and other (5.9 ) (5.8 ) (10.0 ) (11.6 ) (21.4 )
Pro
forma operating income $8.0 $27.8 $37.6
$35.9 $52.0
Adjusted EBITDA (a)
Southern Timber $24.4 $26.7 $19.6 $51.2 $42.1 Pacific Northwest
Timber 4.6 6.4 14.0 11.0 32.9 New Zealand Timber 6.2 13.7 9.9 19.9
20.9 Real Estate 3.6 20.1 36.5 23.8 39.1 Trading (0.1 ) 0.3 (0.1 )
0.2 (0.5 ) Corporate and other (5.6 ) (5.7 ) (9.7 ) (11.5 ) (20.8 )
Adjusted EBITDA $33.1 $61.5 $70.2 $94.6
$113.7 (a) Pro forma operating income and
Adjusted EBITDA are non-GAAP measures. See Schedule E for
definitions and reconciliations.
D
RAYONIER INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP
MEASURES
June 30, 2015 (unaudited)
(millions of dollars except per share
information)
CASH AVAILABLE FOR DISTRIBUTION (a): Six Months Ended
June 30, June 30, 2015 2014 Operating Income $34.3 $52.0
Depreciation, depletion and amortization 53.8 56.3 Non-cash cost of
land sold and real estate development costs recovered upon sale 4.9
5.4 Costs related to shareholder litigation (b) 1.6 —
Adjusted EBITDA $94.6 $113.7 Cash interest paid (c) (d)
(15.3 ) (27.0 ) Cash taxes paid (c) (0.3 ) (10.4 ) Real estate
development costs (0.6 ) (2.6 ) Capital expenditures from
continuing operations (e) (26.1 ) (33.6 )
Cash Available for
Distribution $52.3 $40.1 Working capital and other balance
sheet changes 6.9 88.8 Real estate development costs 0.6 2.6
Capital expenditures from continuing operations (e) 26.1 33.6 Cash
flow from discontinued operations — 64.0
Cash
Provided by Operating Activities $85.9 $229.1
(a) Cash Available for Distribution (CAD) is defined as cash
provided by operating activities adjusted for capital spending
(excluding strategic acquisitions), real estate development costs,
cash provided by discontinued operations and working capital and
other balance sheet changes. 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 strategic acquisitions. CAD is not necessarily
indicative of the CAD that may be generated in future periods. (b)
“Costs related to shareholder litigation” include expenses incurred
as a result of the securities litigation, the shareholder
derivative demands and the Securities and Exchange Commission
investigation. See Note 12—Contingencies of Item 1 — Financial
Statements in the company’s most recent Quarterly Report on Form
10-Q. (c) The six months ended June 30, 2014 include payments
related to the spun-off Performance Fibers business. (d) Cash
interest paid is presented net of patronage refunds received of
$1.3 million for the six months ended June 30, 2015 and $2.1
million for the six months ended June 30, 2014. (e) Capital
expenditures exclude timberland acquisitions of $88.4 million and
$74.8 million during the six months ended June 30, 2015 and June
30, 2014, respectively.
PRO FORMA OPERATING INCOME AND NET INCOME (a):
Three
Months Ended Six Months Ended June 30, 2015 March 31, 2015
June 30, 2014 June 30, 2015 June 30, 2014 $
PerDilutedShare
$
PerDilutedShare
$
PerDilutedShare
$
PerDilutedShare
$
PerDilutedShare
Operating income $6.5 $27.7 $37.6 $34.3 $52.0 Costs related
to shareholder litigation (b) 1.5 0.1 — 1.6
—
Pro forma operating income $8.0 $27.8
$37.6 $35.9 $52.0
Net (loss) income
attributable to Rayonier Inc. ($1.5 ) ($0.01 ) $17.7 $0.14
$16.4 $0.12 $16.2 $0.13 $57.8 $0.44 Costs related to shareholder
litigation (b) 1.5 0.01 0.1 — — — 1.6 0.01 — — Costs related to the
spin-off of the Performance Fibers business — — — — 3.8 0.03 — —
3.8 0.03 Discontinued operations, net — — — —
(12.1 ) (0.09 ) — — (43.1 ) (0.33 )
Pro
forma net income $—
$—
$17.8 $0.14 $8.1 $0.06 $17.8
$0.14 $18.5 $0.14 (a) Pro forma operating income is defined
as operating income adjusted for costs related to shareholder
litigation. Pro forma net income is defined as net income
attributable to Rayonier Inc. adjusted for costs related to
shareholder litigation, costs related to the spin-off of the
Performance Fibers business and discontinued operations. (b) “Costs
related to shareholder litigation” include expenses incurred as a
result of the securities litigation, the shareholder derivative
demands and the Securities and Exchange Commission investigation.
See Note
12—Contingencies of Item 1 — Financial
Statements in the Company’s most recent Quarterly Report on Form
10-Q.
E
ADJUSTED EBITDA (a): Three Months
Ended
SouthernTimber
PacificNorthwestTimber
NewZealandTimber
RealEstate
Trading
Corporateandother
Total June 30, 2015 Operating income (loss) $11.8
$1.7 ($0.9 ) $1.4 ($0.1 ) ($7.4 ) $6.5 Depreciation, depletion and
amortization 12.6 2.9 7.1 1.0 — 0.3 23.9 Non-cash cost of land sold
and real estate development costs recovered upon sale — — — 1.2 — —
1.2 Costs related to shareholder litigation (b) — — —
— — 1.5 1.5 Adjusted EBITDA $24.4
$4.6 $6.2 $3.6 ($0.1 ) ($5.6 ) $33.1
March 31, 2015 Operating income (loss) $12.4 $2.6
$5.7 $12.6 $0.3 ($5.9 ) $27.7 Depreciation, depletion and
amortization 14.3 3.8 8.0 3.8 — 0.1 30.0 Non-cash cost of land sold
and real estate development costs recovered upon sale — — — 3.7 — —
3.7 Costs related to shareholder litigation (b) — — —
— — 0.1 0.1 Adjusted EBITDA $26.7
$6.4 $13.7 $20.1 $0.3 ($5.7 )
$61.5
June 30, 2014 Operating income (loss) $8.9 $8.8
$2.2 $27.8 ($0.1 ) ($10.0 ) $37.6 Depreciation, depletion and
amortization 10.7 5.2 7.7 6.4 — 0.3 30.3 Non-cash cost of land sold
and real estate development costs recovered upon sale — —
— 2.3 — — 2.3 Adjusted EBITDA
$19.6 $14.0 $9.9 $36.5 ($0.1 ) ($9.7 )
$70.2
Six Months Ended
SouthernTimber
PacificNorthwestTimber
NewZealandTimber
RealEstate
Trading
Corporateandother
Total June 30, 2015 Operating income (loss)
$24.2 $4.3 $4.8 $14.0 $0.2 ($13.2 ) $34.3 Depreciation, depletion
and amortization 27.0 6.7 15.1 4.9 — 0.1 53.8 Non-cash cost of land
sold and real estate development costs recovered upon sale — — —
4.9 — — 4.9 Costs related to shareholder litigation (b) — —
— — — 1.6 1.6 Adjusted EBITDA
$51.2 $11.0 $19.9 $23.8 $0.2
($11.5 ) $94.6
June 30, 2014 Operating income (loss)
$19.4 $21.4 $4.6 $28.5 ($0.5 ) ($21.4 ) $52.0 Depreciation,
depletion and amortization 22.7 11.5 14.2 7.3 — 0.6 56.3 Non-cash
cost of land sold and real estate development costs recovered upon
sale — — 2.1 3.3 — — 5.4
Adjusted EBITDA $42.1 $32.9 $20.9 $39.1
($0.5 ) ($20.8 ) $113.7 (a) Adjusted EBITDA is defined as
earnings before interest, taxes, depreciation, depletion,
amortization, the non-cash cost of land sold and real estate
development costs recovered upon sale, costs related to shareholder
litigation, costs related to the spin-off of the Performance Fibers
business and discontinued operations. Adjusted EBITDA is a non-GAAP
measure used by our Chief Operating Decision Maker, existing
shareholders and potential shareholders to measure how the Company
is performing relative to the assets under management. (b) “Costs
related to shareholder litigation” include expenses incurred as a
result of the securities litigation, the shareholder derivative
demands and the Securities and Exchange Commission investigation.
See Note 12—Contingencies of Item 1 —
Financial Statements in the Company’s most recent Quarterly
Report on Form 10-Q.
E
Three Months Ended Six Months Ended
June 30,2015
March 31,2015
June 30,2014
June 30,2015
June 30,2014
Net (loss) income ($2.9 ) $18.2 $16.1 $15.3 $57.5 Interest, net,
continuing operations 9.7 10.0 16.2 19.7 27.9 Income tax (benefit)
expense, continuing operations (0.3 ) (0.5 ) 13.6 (0.7 ) 5.9
Depreciation, depletion and amortization 23.9 30.0 30.3 53.8 56.3
Non-cash cost of land sold and real estate development costs
recovered upon sale 1.2 3.7 2.3 4.9 5.4 Costs related to
shareholder litigation (a) 1.5 0.1 — 1.6 — Costs related to the
spin-off of the Performance Fibers business — — 3.8 — 3.8
Discontinued operations — — (12.1 ) — (43.1 )
Adjusted EBITDA (a) $33.1 $61.5 $70.2 $94.6
$113.7 (a) “Costs related to shareholder
litigation” include expenses incurred as a result of the securities
litigation, the shareholder derivative demands and the Securities
and Exchange Commission
investigation. See Note 12—Contingencies
of Item 1 — Financial Statements in the Company’s most
recent Quarterly Report on Form 10-Q. (b) Adjusted EBITDA is
defined as earnings before interest, taxes, depreciation,
depletion, amortization, the non-cash cost of land sold and real
estate development costs recovered upon sale, costs related to
shareholder litigation, costs related to the spin-off of the
Performance Fibers business and discontinued operations. Adjusted
EBITDA is a non-GAAP measure used by our Chief Operating Decision
Maker, existing shareholders and potential shareholders to measure
how the Company is performing relative to the assets under
management.
E
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150805006626/en/
Rayonier Inc.InvestorsMark McHugh, 904-357-3757orMediaRoseann
Wentworth, 904-357-9185roseann.wentworth@rayonier.com
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