- Fourth quarter net income attributable
to Rayonier of $64.2 million ($0.50 per share) on revenues of
$239.7 million
- Fourth quarter pro forma net income of
$25.4 million ($0.20 per share) on pro forma revenues of $186.3
million
- Fourth quarter operating income of
$80.1 million, pro forma operating income of $41.3 million and
Adjusted EBITDA of $77.0 million
- Full-year net income attributable to
Rayonier of $148.8 million ($1.16 per share) on revenues of $819.6
million
- Full-year pro forma net income of $82.5
million ($0.65 per share) on pro forma revenues of $724.2
million
- Full-year operating income of $215.5
million, pro forma operating income of $149.2 million and Adjusted
EBITDA of $290.5 million
- Full-year cash provided by operations
of $256.3 million and cash available for distribution (CAD) of
$188.7 million
Rayonier Inc. (NYSE: RYN) today reported fourth quarter net
income attributable to Rayonier of $64.2 million, or $0.50 per
share, on revenues1 of $239.7 million. This compares to net income
attributable to Rayonier of $48.3 million, or $0.39 per share, on
revenues1 of $229.3 million in the prior year quarter. The fourth
quarter and prior year fourth quarter results included income from
Large Dispositions2 of $38.8 million and $42.6 million,
respectively. Excluding these items, pro forma net income3 was
$25.4 million, or $0.20 per share, on pro forma revenues3 of $186.3
million versus $5.7 million, or $0.05 per share, on pro forma
revenues3 of $151.6 million in the prior year period.
The following table summarizes the current quarter and
comparable prior year period results on an actual and pro forma
basis:
Three Months Ended
(millions of dollars, except earnings per share (EPS))
December
31, 2017 December 31, 2016 $
EPS $ EPS
Revenues1 $239.7 $229.3 Large Dispositions2 (53.4 ) (77.7 ) Pro
forma revenues3 $186.3 $151.6 Net income
attributable to Rayonier $64.2 $0.50 $48.3 $0.39 Large
Dispositions2 (38.8 ) (0.30 ) (42.6 ) (0.34 ) Pro forma net income3
$25.4 $0.20 $5.7 $0.05
Fourth quarter operating income was $80.1 million versus $61.5
million in the prior year period. The current and prior fourth
quarter operating income included $38.8 million and $42.6 million,
respectively, from Large Dispositions.2 Excluding these items,
current and prior fourth quarter pro forma operating income3 was
$41.3 million and $18.9 million, respectively. Fourth quarter
Adjusted EBITDA3 was $77.0 million versus $52.0 million in the
prior year period.
The following table summarizes operating income (loss), pro
forma operating income (loss)3 and Adjusted EBITDA3 for the current
quarter and comparable prior year period:
Three Months Ended December
31,
Operating Income
(Loss)
Pro forma
Operating Income
(Loss)3
Adjusted EBITDA3 (millions of dollars)
2017 2016 2017
2016 2017 2016 Southern Timber $
7.2 $ 8.1 $ 7.2 $ 8.1 $ 19.5 $ 20.8 Pacific Northwest Timber
2.4 (3.1 ) 2.4 (3.1 ) 10.6 7.2 New Zealand Timber 16.1 11.7 16.1
11.7 22.8 17.9 Real Estate 58.8 49.4 20.0 6.8 28.2 10.6 Trading 1.2
0.5 1.2 0.5 1.2 0.5 Corporate and other (5.6 ) (5.1 )
(5.6 ) (5.1 ) (5.3 ) (5.0 ) Total $
80.1 $ 61.5 $ 41.3 $ 18.9 $ 77.0
$ 52.0
Full-year 2017 net income attributable to Rayonier was $148.8
million, or $1.16 per share, on revenues1 of $819.6 million. This
compares to net income attributable to Rayonier of $212.0 million,
or $1.73 per share, on revenues1 of $815.9 million in the prior
year. The full-year results included $0.7 million of costs related
to shareholder litigation4 and $67.0 million from Large
Dispositions.2 The prior year results included $2.2 million of
costs related to shareholder litigation4, $1.2 million of gain on
foreign currency derivatives5 and $143.9 million from Large
Dispositions.2 Excluding these items, pro forma net income3 was
$82.5 million, or $0.65 per share, on pro forma revenues3 of $724.2
million versus $69.1 million, or $0.56 per share, on pro forma
revenues3 of $608.6 million in the prior year.
The following table summarizes the current full-year and
comparable prior year results on an actual and pro forma basis:
Year Ended (millions of
dollars, except earnings per share (EPS))
December 31, 2017
December 31, 2016 $
EPS $ EPS Revenues1
$819.6 $815.9 Large Dispositions2 (95.4 ) (207.3 ) Pro forma
revenues3 $724.2 $608.6 Net income
attributable to Rayonier $148.8 $1.16 $212.0 $1.73 Costs related to
shareholder litigation4 0.7 0.01 2.2 0.02 Gain on foreign currency
derivatives5 — — (1.2 ) (0.01 ) Large Dispositions2 (67.0 ) (0.52 )
(143.9 ) (1.18 ) Pro forma net income3 $82.5 $0.65
$69.1 $0.56
Full-year operating income was $215.5 million versus $255.8
million in the prior year. The full-year operating income included
$0.7 million of costs related to shareholder litigation4 and $67.0
million from Large Dispositions2. The prior year operating income
included $2.2 million of costs related to shareholder litigation4,
$1.2 million of gain on foreign currency derivatives5 and $143.9
million from Large Dispositions2. Excluding these items, pro forma
operating income3 was $149.2 million versus $112.9 million in the
prior year. Full-year Adjusted EBITDA3 was $290.5 million versus
$239.7 million in the prior year.
The following table summarizes operating income (loss), pro
forma operating income (loss)3 and Adjusted EBITDA3 for the current
full year and comparable prior year:
Year Ended December 31,
Operating Income
(Loss)
Pro forma
Operating Income
(Loss)3
Adjusted EBITDA3 (millions of dollars)
2017 2016 2017
2016 2017 2016 Southern Timber
$42.2 $43.1 $42.2 $43.1 $91.6 $92.9 Pacific Northwest Timber
1.1 (4.0 ) 1.1 (4.0 ) 33.1 21.2 New Zealand Timber 72.5 33.1 72.5
33.1 109.0 58.3 Real Estate 116.0 202.4 49.0 58.5 71.6 84.7 Trading
4.6 2.0 4.6 2.0 4.6 2.0 Corporate and other (20.9 ) (20.8 ) (20.2 )
(19.8 ) (19.4 ) (19.4 ) Total $215.5 $255.8 $149.2
$112.9 $290.5 $239.7
Full-year cash provided by operating activities was $256.3
million versus $203.8 million in the prior year. Full-year cash
available for distribution (CAD)3 of $188.7 million increased $44.4
million versus the prior year primarily due to higher Adjusted
EBITDA3 ($50.8 million) and lower cash interest paid ($0.2
million), partially offset by higher capital expenditures ($6.6
million).
“We are pleased with our fourth quarter results, as favorable
performance in the Pacific Northwest Timber, New Zealand Timber and
Real Estate segments more than offset the impact of lower harvest
volumes and lower average stumpage prices in the Southern Timber
segment,” said David Nunes, President and CEO. “Southern Timber
volumes decreased 5% relative to the prior year quarter, as wet
weather conditions hampered access in certain areas. Average
stumpage prices in Southern Timber decreased 4% relative to the
prior year quarter primarily due to geographic mix. In Pacific
Northwest Timber, results improved significantly despite 10% lower
volumes due to a 27% increase in delivered sawtimber prices
relative to the prior year quarter, reflecting strong domestic and
export market conditions. New Zealand Timber results also improved
significantly versus the prior year quarter, driven by 16% higher
harvest volumes and increases in export and domestic sawtimber
prices of 11% and 7%, respectively. Real Estate results, excluding
the gain on Large Dispositions2, were significantly above the prior
year quarter driven by an increase in the number of acres sold,
partially offset by lower average pricing, reflecting the mix of
properties sold.”
Southern Timber
Fourth quarter sales1 of $32.5 million decreased $2.5 million,
or 7%, versus the prior year period. Harvest volumes decreased 5%
to 1.22 million tons versus 1.29 million tons in the prior year
period, primarily due to storms in the fourth quarter resulting in
wet ground conditions that limited access in certain areas. Average
pine sawtimber stumpage prices decreased 9% to $24.44 per ton
versus $26.75 per ton in the prior year period, while average pine
pulpwood stumpage prices decreased 4% to $15.16 per ton versus
$15.83 per ton in the prior year period. The decrease in average
sawtimber and pulpwood stumpage prices was driven primarily by
geographic mix, including a lump-sum sale of 165,000 tons in one of
the Company’s lowest-priced regions. Overall, weighted-average
stumpage prices (including hardwood) decreased 4% to $18.24 per ton
versus $19.06 per ton in the prior year period. Operating income of
$7.2 million decreased $0.9 million versus the prior year period
due to lower weighted-average stumpage prices ($1.0 million), lower
volumes ($0.7 million), higher depletion rates ($0.2 million) and
higher road maintenance costs ($0.2 million), which were partially
offset by higher non-timber income ($0.6 million) and lower
overhead expense ($0.6 million).
Fourth quarter Adjusted EBITDA3 of $19.5 million was $1.3
million below the prior year period.
Pacific Northwest Timber
Fourth quarter sales1 of $26.4 million increased $3.0 million,
or 13%, versus the prior year period. Harvest volumes decreased 10%
to 321,000 tons versus 356,000 tons in the prior year period,
primarily due to the decision to defer approximately 50,000 tons of
volume into 2018 to capture improving market pricing. Average
delivered sawtimber prices increased 27% to $95.34 per ton versus
$74.97 per ton in the prior year period, while average delivered
pulpwood prices increased 12% to $44.44 per ton versus $39.62 per
ton in the prior year period. The increase in average sawtimber
prices was due to stronger domestic and export markets. The
increase in average pulpwood prices was due to geographic mix and
additional chip export demand in the Washington market. Operating
income of $2.4 million increased $5.5 million relative to an
operating loss of $3.1 million in the prior year period due to
higher prices ($4.4 million), lower depletion rates ($1.0 million)
and higher non-timber income ($0.1 million).
Fourth quarter Adjusted EBITDA3 of $10.6 million was $3.4
million above the prior year period.
New Zealand Timber
Fourth quarter sales1 of $59.3 million increased $9.2 million,
or 18%, versus the prior year period. Harvest volumes increased 16%
to 649,000 tons versus 562,000 tons in the prior year period,
driven primarily by incremental volume from recent acquisitions.
Average delivered prices for export sawtimber increased 11% to
$115.77 per ton versus $104.26 per ton in the prior year period,
while average delivered prices for domestic sawtimber increased 7%
to $83.02 per ton versus $77.41 per ton in the prior year period.
The increase in export sawtimber prices was primarily due to
stronger demand from China. The increase in domestic sawtimber
prices (in U.S. dollar terms) was driven by strong local demand for
construction materials, partially offset by a modest decrease in
the NZ$/US$ exchange rate (US$0.70 per NZ$1.00 versus US$0.72 per
NZ$1.00). Excluding the impact of foreign exchange rates, domestic
sawtimber prices increased 11% from the prior year period.
Operating income of $16.1 million increased $4.4 million versus the
prior year period due to higher prices ($5.3 million) and higher
volumes ($2.1 million), which were partially offset by lower carbon
sales ($2.8 million), higher road maintenance costs ($0.1 million)
and higher depletion rates ($0.1 million).
Fourth quarter Adjusted EBITDA3 of $22.8 million was $4.9
million above the prior year period.
Real Estate
Fourth quarter sales1 of $85.9 million decreased $2.2 million
versus the prior year period, while operating income of $58.8
million increased $9.4 million versus the prior year period. Fourth
quarter sales and operating income included $53.4 million and $38.8
million, respectively, from Large Dispositions2. The prior year
fourth quarter sales and operating income included $77.7 million
and $42.6 million, respectively, from Large Dispositions2.
Excluding these items, pro forma sales3 of $32.5 million increased
$22.1 million versus the prior year period, while pro forma
operating income3 of $20.0 million increased $13.2 million versus
the prior year period due to a higher number of acres sold (7,475
acres sold versus 1,489 acres sold in the prior year period),
partially offset by a decrease in weighted-average prices ($4,378
per acre versus $6,929 per acre in the prior year period) due to
the mix of properties sold.
Improved Development closings of $6.4 million in the Wildlight
development project included 20.7 acres of commercial property for
$6.0 million ($292,553 per acre) and 8 residential lots for $0.4
million ($46,000 per lot or $344,000 per acre). Based on ongoing
site development obligations, $6.1 million of revenue was
recognized in the fourth quarter.
Rural sales of $3.3 million were comprised of 1,204 acres at an
average price of $2,721 per acre. This compares to the prior year
quarter sales of $1.5 million, comprised of 504 acres at an average
price of $2,749 per acre.
Non-strategic / Timberland sales of $23.0 million were comprised
of 6,249 acres at an average price of $3,686 per acre, including a
sale of 1,922 acres in Nassau County, Florida for $4,000 per acre.
This compares to the prior year quarter sales of $5.6 million,
comprised of 901 acres at an average price of $6,228 per acre,
including 816 acres in Washington for $6,495 per acre.
Large Dispositions2 of $53.4 million were comprised of 24,645
acres in Alabama an average price of $2,167 per acre. This compares
to Large Dispositions2 in the prior year quarter of $77.7 million
comprised of 37,114 acres in Alabama and Mississippi at an average
price of $2,094 per acre.
Fourth quarter Adjusted EBITDA3 of $28.2 million was $17.6
million above the prior year period.
Trading
Fourth quarter sales1 of $35.6 million increased $2.9 million
versus the prior year period due to higher volumes and prices.
Sales volumes increased 2% to 326,000 tons versus 321,000 tons in
the prior year period. Average prices increased 8% to $108.07 per
ton versus $100.41 per ton in the prior year period primarily due
to stronger demand from China. Operating income and Adjusted
EBITDA3 of $1.2 million increased $0.7 million versus the prior
year period.
Other Items
Fourth quarter corporate and other operating expenses of $5.6
million increased $0.5 million versus the prior year period due to
higher selling, general and administrative costs ($0.5 million),
higher depreciation expense ($0.2 million) and a reduction in
overhead costs historically allocated to operating segments ($0.6
million), partially offset by lower pension expense ($0.8
million).
Fourth quarter interest expense of $8.5 million decreased $0.1
million versus the prior year period due to lower average debt.
Fourth quarter income tax expense of $4.9 million increased $2.1
million versus the prior year period due to improved results from
the New Zealand JV, which is the primary driver of income tax
expense.
Outlook
“In 2018, we expect to achieve net income attributable to
Rayonier of $78 to $87 million and Adjusted EBITDA of $280 to $305
million,” added Nunes. “In our Southern Timber segment, we expect
an increase in harvest volumes with a full-year contribution from
our 2017 acquisitions in Florida, Georgia and South Carolina.
We further anticipate modestly improved pricing in certain Southern
markets; however, we expect overall pricing in the Southern Timber
segment to be relatively flat to 2017 average pricing due to
geographic mix. In our Pacific Northwest Timber segment, we expect
a modest increase in harvest volumes as well as higher sawtimber
prices relative to 2017 average pricing due to stronger domestic
and export markets. In our New Zealand Timber segment, we expect a
modest increase in harvest volumes and continued strong pricing
dynamics driven by solid demand in both domestic and export
markets. In our Real Estate segment, we continue to focus on
unlocking the long-term value of our HBU development and rural
property portfolio. Following a year of meaningful infrastructure
investments in our Wildlight development project, we expect
additional residential and commercial closings in 2018.”
Conference Call
A conference call and live audio webcast will be held on
Thursday, February 8, 2018 at 10:00 AM EST to discuss these
results.
Access to the live audio webcast will be available at
www.rayonier.com. A replay of the webcast will be archived on the
Company’s website and available shortly after the call.
Investors may listen to the conference call by dialing
800-369-1184 (domestic) or 415-228-3898 (international), passcode:
Rayonier. A replay of the conference call will be available one
hour following the call until Thursday, February 15, 2018 by
dialing 866-756-0537 (domestic) or 203-369-3006 (international),
passcode: 2082018.
Complimentary copies of Rayonier press releases and other
financial documents are also available by calling (904)
357-9100.
1In an effort to report certain revenue and expenses in a manner
more representative of activities that constitute ongoing central
operations, the Company has changed its classification of
non-timber income, including lease and license income, carbon
credit sales, log agency fees and other non-timber income, net of
costs, from “Other Operating Income, Net” to “Sales” and “Cost of
Sales.” This reclassification was applied retrospectively to all
periods presented.2”Large Dispositions” are defined as transactions
involving the sale of timberland that exceed $20 million in size
and do not have a demonstrable premium relative to timberland
value.3Pro forma net income, pro forma revenues (sales), pro forma
operating income (loss), Adjusted EBITDA and CAD are non-GAAP
measures defined and reconciled to GAAP in the attached
schedules.4“Costs related to shareholder litigation” include
expenses incurred as a result of the securities litigation and the
shareholder derivative demands. See Note 10—Contingencies of Item 8
— Financial Statements and Supplementary Data in the Company’s most
recent Annual Report on Form 10-K. In addition, these costs include
the costs associated with the Company’s response to a subpoena it
received from the SEC in November 2014. In July 2016, the Division
of Enforcement of the SEC notified the Company that it had
concluded its investigation into the Company.5Gain on foreign
currency derivatives is the gain resulting from the foreign
exchange derivatives the Company used to mitigate the risk of
fluctuations in foreign exchange rates while awaiting the capital
contribution to the New Zealand JV.
About Rayonier
Rayonier is a leading timberland real estate investment trust
with assets located in some of the most productive softwood timber
growing regions in the United States and New Zealand. As of
December 31, 2017, Rayonier owned, leased or managed
approximately 2.6 million acres of timberlands located in the U.S.
South (1.8 million acres), U.S. Pacific Northwest (378,000 acres)
and New Zealand (410,000 acres). More information is available at
www.rayonier.com.
______________________________________________________________________________________________________________________________
Forward-Looking Statements - Certain statements in this
presentation 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; 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 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; 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 beneficial tax treatment; the cyclical
nature of the real estate business generally; 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;
unexpected delays in the entry into or closing of real estate
transactions; changes in environmental laws and regulations that
may restrict or adversely impact our ability to sell or develop
properties; 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 discussion 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.
Non-GAAP Financial Measures - To supplement Rayonier’s
financial statements presented in accordance with generally
accepted accounting principles in the United States (“GAAP”),
Rayonier uses certain non-GAAP measures, including “cash available
for distribution,” “pro forma revenues (sales),” “pro forma
operating income (loss),” “pro forma net income,” and “Adjusted
EBITDA,” which are defined and further explained in this
communication. Reconciliation of such measures to the nearest GAAP
measures can also be found in this communication. Rayonier’s
definitions of these non-GAAP measures may differ from similarly
titled measures used by others. These non-GAAP measures should be
considered supplemental to, and not a substitute for, financial
information prepared in accordance with GAAP.
RAYONIER INC. AND
SUBSIDIARIESCONDENSED STATEMENTS OF CONSOLIDATED
INCOMEDecember 31, 2017 (unaudited)(millions of
dollars, except per share information)
Three Months Ended Year
Ended December 31, September 30,
December 31, December 31, December 31, 2017 2017 2016
2017 2016
SALES (a) $239.7 $184.4 $229.3
$819.6 $815.9 Costs and Expenses Cost of sales
(a) 149.8 137.0 162.6 568.3 526.4 Selling and general expenses 10.5
9.9 11.1 40.2 42.8 Other operating income, net (a) (0.7 ) (1.8 )
(5.9 ) (4.4 ) (9.1 )
OPERATING INCOME 80.1 39.3 61.5 215.5
255.8 Interest expense (8.5 ) (8.6 ) (8.6 ) (34.1 ) (32.2 )
Interest income and miscellaneous income (expense), net 0.2
1.1 0.4 1.9 (0.8 )
INCOME BEFORE INCOME
TAXES 71.8 31.8 53.3 183.3 222.8 Income tax expense (4.9 ) (3.0
) (2.8 ) (21.8 ) (5.0 )
NET INCOME 66.9 28.8 50.5 161.5
217.8 Less: Net income attributable to noncontrolling interest 2.7
4.1 2.2 12.7 5.8
NET INCOME
ATTRIBUTABLE TO RAYONIER INC. $64.2 $24.7 $48.3
$148.8 $212.0
EARNINGS PER COMMON SHARE
Basic earnings per share attributable to Rayonier Inc. $0.50 $0.19
$0.39 $1.17 $1.73 Diluted earnings per share attributable to
Rayonier Inc. $0.50 $0.19 $0.39 $1.16 $1.73
Pro forma net income per share (b)
$0.20 $0.19 $0.05 $0.65 $0.56
Weighted Average Common Shares used for determining
Basic EPS 128,653,911 128,610,696 122,618,278
127,367,608 122,585,200 Diluted EPS 129,193,264
128,965,780 122,900,350 127,809,949
122,812,323
(a) In an effort to report certain revenue
and expenses in a manner more representative of activities that
constitute ongoing central operations, the Company has changed its
classification of non-timber income, including lease and license
income, carbon credit sales, log agency fees and other non-timber
income, net of costs, from “Other Operating Income, Net” to “Sales”
and “Cost of Sales.” This reclassification was applied
retrospectively to all periods presented.
(b) Pro forma net income per share is a
non-GAAP measure. See Schedule F for definition and a
reconciliation to the nearest GAAP measure.
A
RAYONIER INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETSDecember 31, 2017 (unaudited)(millions of
dollars)
December 31,
December 31, 2017 2016
Assets Cash and cash equivalents
$112.7 $85.9 Assets held for sale — 23.2 Other current assets 70.9
55.8 Timber and timberlands, net of depletion and amortization
2,462.1 2,291.0 Higher and better use timberlands and real estate
development investments 80.8 70.4 Property, plant and equipment
32.6 23.1 Less - accumulated depreciation (9.3 ) (9.1 ) Net
property, plant and equipment 23.3 14.0 Restricted cash 59.7 71.7
Other assets 49.0 73.8 $2,858.5 $2,685.8
Liabilities and Shareholders’ Equity Current
maturities of long-term debt $3.4 $31.7 Other current liabilities
65.1 60.3 Long-term debt 1,022.0 1,030.2 Other non-current
liabilities 75.0 66.7 Total Rayonier Inc. shareholders’ equity
1,593.1 1,411.7 Noncontrolling interest 99.9 85.2
Total shareholders’ equity 1,693.0 1,496.9 $2,858.5
$2,685.8
B
RAYONIER INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
SHAREHOLDERS’ EQUITYDecember 31, 2017
(unaudited)(millions of dollars, except share information)
Common Shares
Retained
Earnings
Accumulated
Other
Comprehensive
Income/(Loss)
Non-controlling
Interest
Shareholders’
Equity
Shares Amount Balance, December 31,
2015 122,770,217 $708.8 $612.8 ($33.5 ) $73.6 $1,361.7 Net
income — — 212.0 — 5.8 217.8 Dividends ($1.00 per share) — — (123.2
) — — (123.2 )
Issuance of shares under incentive stock
plans
179,743 1.6 — — — 1.6 Stock-based compensation — 5.1 — — — 5.1
Repurchase of common shares made under repurchase program (35,200 )
— (0.7 ) — — (0.7 ) Other (a) (10,392 ) (5.6 ) — 34.4
5.8 34.6
Balance, December 31, 2016 122,904,368
$709.9 $700.9 $0.9 $85.2 $1,496.9 Net income — — 148.8 — 12.7 161.5
Dividends ($1.00 per share) — — (128.0 ) — — (128.0 )
Issuance of shares under incentive stock
plans
322,314 4.8 — — — 4.8 Stock-based compensation — 5.4 — — — 5.4
Issuance of shares under equity offering 5,750,000 152.4 — — —
152.4 Other (a) (5,906 ) (0.2 ) (14.3 ) 12.5 2.0 —
Balance, December 31, 2017 128,970,776 $872.3
$707.4 $13.4 $99.9 $1,693.0
(a) Primarily includes the
cumulative-effect adjustment related to the adoption of ASU No.
2016-16, shares purchased from employees in non-open market
transactions to pay withholding taxes associated with the vesting
of restricted stock, actuarial changes and amortization of pension
and postretirement plan liabilities, foreign currency translation
adjustments, and mark-to-market adjustments of qualifying cash flow
hedges. The twelve months ended December 31, 2016 also include
changes as a result of the recapitalization of the New Zealand
JV.
C
RAYONIER INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWSDecember 31, 2017 (unaudited)(millions of
dollars)
Year Ended December 31, 2017
2016
Cash provided by operating activities: Net
income $161.5 $217.8 Depreciation, depletion and amortization 127.6
115.1 Non-cash cost of land and improved development 13.7 11.7 Gain
on large dispositions of timberlands (67.0 ) (143.9 ) Other items
to reconcile net income to cash provided by operating activities
27.2 12.7 Changes in working capital and other assets and
liabilities (6.7 ) (9.6 ) 256.3 203.8
Cash used
for investing activities: Capital expenditures (65.3 ) (58.7 )
Real estate development investments (15.8 ) (8.7 ) Purchase of
timberlands (242.9 ) (366.5 ) Assets purchased in business
acquisition — (0.9 ) Net proceeds from large dispositions of
timberlands 95.2 203.9 Change in restricted cash 12.0 (48.2 )
Rayonier office building (6.1 ) (6.3 ) Other (0.3 ) 2.2
(223.2 ) (283.2 )
Cash (used for) provided by financing
activities: Net (decrease) increase in debt, net of issuance
costs (36.8 ) 236.6 Dividends paid (127.1 ) (122.8 ) Proceeds from
the issuance of common shares under incentive stock plan 4.8 1.6
Proceeds from the issuance of common shares from equity offering
152.4 — Repurchase of common shares made under repurchase program —
(0.7 ) Other (0.2 ) (0.3 ) (6.9 ) 114.4
Effect of
exchange rate changes on cash 0.6 (0.9 )
Cash and
cash equivalents: Change in cash and cash equivalents 26.8 34.1
Balance, beginning of year 85.9 51.8 Balance, end of
period $112.7 $85.9
D
RAYONIER INC. AND
SUBSIDIARIESBUSINESS SEGMENT SALES, PRO FORMA SALES,
OPERATING INCOME,PRO FORMA OPERATING INCOME AND ADJUSTED
EBITDADecember 31, 2017 (unaudited)(millions of
dollars)
Three Months Ended
Year Ended
December 31, September 30, December 31,
December 31, December 31, 2017 2017 2016 2017 2016
Sales Southern Timber $32.5 $37.3 $35.0 $144.5 $151.2
Pacific Northwest Timber 26.4 19.1 23.4 91.9 77.8 New Zealand
Timber 59.3 70.1 50.1 247.6 177.8 Real Estate 85.9 17.3 88.1 183.0
299.4 Trading 35.6 40.6 32.7 152.6 109.7
Total sales $239.7 $184.4 $229.3 $819.6
$815.9
Pro forma sales (a) Southern Timber $32.5
$37.3 $35.0 $144.5 $151.2 Pacific Northwest Timber 26.4 19.1 23.4
91.9 77.8 New Zealand Timber 59.3 70.1 50.1 247.6 177.8 Real Estate
32.5 17.3 10.4 87.6 92.1 Trading 35.6 40.6 32.7
152.6 109.7
Pro forma sales $186.3
$184.4 $151.6 $724.2 $608.6
Operating income (loss) Southern Timber $7.2 $11.5 $8.1
$42.2 $43.1 Pacific Northwest Timber 2.4 1.1 (3.1 ) 1.1 (4.0 ) New
Zealand Timber 16.1 19.3 11.7 72.5 33.1 Real Estate 58.8 11.4 49.4
116.0 202.4 Trading 1.2 1.1 0.5 4.6 2.0 Corporate and Other (5.6 )
(5.1 ) (5.1 ) (20.9 ) (20.8 )
Operating income $80.1
$39.3 $61.5 $215.5 $255.8
Pro
forma operating income (loss) (a) Southern Timber $7.2 $11.5
$8.1 $42.2 $43.1 Pacific Northwest Timber 2.4 1.1 (3.1 ) 1.1 (4.0 )
New Zealand Timber 16.1 19.3 11.7 72.5 33.1 Real Estate 20.0 11.4
6.8 49.0 58.5 Trading 1.2 1.1 0.5 4.6 2.0 Corporate and Other (5.6
) (5.1 ) (5.1 ) (20.2) (19.8 )
Pro forma operating income
$41.3 $39.3 $18.9 $149.2 $112.9
Adjusted EBITDA (a) Southern Timber $19.5 $24.2 $20.8 $91.6
$92.9 Pacific Northwest Timber 10.6 7.6 7.2 33.1 21.2 New Zealand
Timber 22.8 28.4 17.9 109.0 58.3 Real Estate 28.2 13.4 10.6 71.6
84.7 Trading 1.2 1.1 0.5 4.6 2.0 Corporate and Other (5.3 ) (4.8 )
(5.0 ) (19.4 ) (19.4 )
Adjusted EBITDA $77.0 $69.9
$52.0 $290.5 $239.7
(a) Pro forma sales, Pro forma operating
income and Adjusted EBITDA are non-GAAP measures. See Schedule F
for definitions and reconciliations.
E
RAYONIER INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP
MEASURESDecember 31, 2017 (unaudited)(millions of
dollars except per share information)
LIQUIDITY MEASURES: Year
Ended December 31, December 31, 2017 2016
Cash
Provided by Operating Activities $256.3 $203.8 Working capital
and other balance sheet changes (2.3 ) (0.8 ) Capital expenditures
(a) (65.3 ) (58.7 )
Cash Available for Distribution (b)
$188.7 $144.3
Net income $161.5 $217.8 Interest, net
and miscellaneous income 32.2 33.0 Income tax expense 21.8 5.0
Depreciation, depletion and amortization 127.6 115.1 Non-cash cost
of land and improved development 13.7 11.7 Costs related to
shareholder litigation (c) 0.7 2.2 Gain on foreign currency
derivatives (d) — (1.2 ) Large Dispositions (e) (67.0 ) (143.9 )
Adjusted EBITDA (j) $290.5 $239.7 Cash interest paid (f)
(36.0 ) (36.2 ) Cash taxes paid (0.5 ) (0.5 ) Capital expenditures
(a) (65.3 ) (58.7 )
Cash Available for Distribution (b)
$188.7 $144.3
Cash Available for Distribution (b)
$188.7 $144.3 Real estate development investments (15.8 ) (8.7 )
Cash Available for Distribution after real estate development
investments $172.9 $135.6
F
PRO FORMA SALES
(g)
Three Months Ended
Southern
Timber
Pacific
Northwest
Timber
New
Zealand
Timber
Real
Estate
Trading Total December 31, 2017 Sales $32.5
$26.4 $59.3 $85.9 $35.6 $239.7 Large Dispositions (e) — — — (53.4 )
— (53.4 ) Pro forma sales $32.5 $26.4 $59.3 $32.5 $35.6
$186.3
September 30, 2017 Sales $37.3 $19.1
$70.1 $17.3 $40.6 $184.4 Large Dispositions (e) — — — — — —
Pro forma sales $37.3 $19.1 $70.1 $17.3 $40.6 $184.4
December 31, 2016 Sales $35.0 $23.4 $50.1
$88.1 $32.7 $229.3 Large Dispositions (e) — — — (77.7 ) — (77.7 )
Pro forma sales $35.0 $23.4 $50.1 $10.4 $32.7 $151.6
Year Ended
Southern
Timber
Pacific
Northwest
Timber
New
Zealand
Timber
Real
Estate
Trading Total December 31, 2017 Sales $144.5
$91.9 $247.6 $183.0 $152.6 $819.6 Large Dispositions (e) — — —
(95.4 ) — (95.4 ) Pro forma sales $144.5 $91.9 $247.6 $87.6
$152.6 $724.2
December 31, 2016 Sales $151.2
$77.8 $177.8 $299.4 $109.7 $815.9 Large Dispositions (e) — — —
(207.3 ) — (207.3 ) Pro forma sales $151.2 $77.8 $177.8 $92.1
$109.7 $608.6
PRO FORMA NET INCOME
(h):
Three Months Ended Year Ended
December 31,
2017
September 30,
2017
December 31,
2016
December 31,
2017
December 31,
2016
$
Per
Diluted
Share
$
Per
Diluted
Share
$
Per
Diluted
Share
$
Per
Diluted
Share
$
Per
Diluted
Share
Net income attributable to Rayonier Inc. $64.2 $0.50 $24.7
$0.19 $48.3 $0.39 $148.8 $1.16 $212.0 $1.73 Costs related to
shareholder litigation (c) — — — — — — 0.7 0.01 2.2 0.02 Gain on
foreign currency derivatives (d) — — — — — — — — (1.2 ) (0.01 )
Large Dispositions (e) (38.8 ) (0.30 ) — — (42.6 )
(0.34 ) (67.0 ) (0.52 ) (143.9 ) (1.18 )
Pro forma net
income $25.4 $0.20 $24.7 $0.19 $5.7
$0.05 $82.5 $0.65 $69.1 $0.56
F
PRO FORMA OPERATING INCOME (LOSS) AND
ADJUSTED EBITDA (i)(j):
Three Months Ended
Southern
Timber
Pacific
Northwest
Timber
New
Zealand
Timber
Real
Estate
Trading
Corporate
and
Other
Total
December 31, 2017 Operating income $7.2 $2.4 $16.1 $58.8
$1.2 ($5.6 ) $80.1 Large Dispositions (e) — — —
(38.8 ) — — (38.8 ) Pro forma operating income
$7.2 $2.4 $16.1 $20.0 $1.2 ($5.6 ) $41.3 Non-operating expense — —
(0.2 ) — — — (0.2 ) Depreciation, depletion and amortization 12.3
8.2 6.9 3.1 — 0.3 30.8 Non-cash cost of land and improved
development — — — 5.1 — —
5.1 Adjusted EBITDA $19.5 $10.6 $22.8
$28.2 $1.2 ($5.3 ) $77.0
September
30, 2017 Operating income $11.5 $1.1 $19.3 $11.4 $1.1 ($5.1 )
$39.3 Non-operating income — — 0.6 — — — 0.6 Depreciation,
depletion and amortization 12.7 6.5 8.5 0.7 — 0.3 28.7 Non-cash
cost of land and improved development — — —
1.3 — — 1.3 Adjusted EBITDA $24.2
$7.6 $28.4 $13.4 $1.1 ($4.8 )
$69.9
December 31, 2016 Operating income
(loss) $8.1 ($3.1 ) $11.7 $49.4 $0.5 ($5.1 ) $61.5 Large
Dispositions (e) — — — (42.6 ) — —
(42.6 ) Pro forma operating income (loss) $8.1 ($3.1 ) $11.7
$6.8 $0.5 ($5.1 ) $18.9 Depreciation, depletion and amortization
12.7 10.3 6.2 2.2 — 0.1 31.5 Non-cash cost of land and improved
development — — — 1.6 — —
1.6 Adjusted EBITDA $20.8 $7.2 $17.9
$10.6 $0.5 ($5.0 ) $52.0
Year Ended
Southern
Timber
Pacific
Northwest
Timber
New
Zealand
Timber
Real
Estate
Trading
Corporate
and
Other
Total
December 31, 2017 Operating income $42.2 $1.1 $72.5 $116.0
$4.6 ($20.9 ) $215.5 Costs related to shareholder litigation (c) —
— — — — 0.7 0.7 Large Dispositions (e) — — —
(67.0 ) — — (67.0 ) Pro forma operating income $42.2
$1.1 $72.5 $49.0 $4.6 ($20.2 ) $149.2 Depreciation, depletion and
amortization 49.4 32.0 36.4 9.0 — 0.8 127.6 Non-cash cost of land
and improved development — — 0.1 13.6 —
— 13.7 Adjusted EBITDA $91.6 $33.1
$109.0 $71.6 $4.6 ($19.4 ) $290.5
December 31, 2016 Operating income (loss)
$43.1 ($4.0 ) $33.1 $202.4 $2.0 ($20.8 ) $255.8 Costs related to
shareholder litigation (c) — — — — — 2.2 2.2 Gain on foreign
currency derivatives (d) — — — — — (1.2 ) (1.2 ) Large Dispositions
(e) — — — (143.9 ) — — (143.9 )
Pro forma operating income (loss) $43.1 ($4.0 ) $33.1 $58.5 $2.0
($19.8 ) $112.9 Depreciation, depletion and amortization 49.8 25.2
23.4 16.3 — 0.4 115.1 Non-cash cost of land and improved
development — — 1.8 9.9 — —
11.7 Adjusted EBITDA $92.9 $21.2 $58.3
$84.7 $2.0 ($19.4 ) $239.7
(a) Capital expenditures exclude timberland acquisitions of
$242.9 million and $366.5 million and spending on the Rayonier
office building of $6.1 million and $6.3 million during the twelve
months ended December 31, 2017 and December 31, 2016,
respectively.(b) Cash Available for Distribution (CAD) is a
non-GAAP measure that management uses to measure 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 defined as cash provided by
operating activities adjusted for capital spending (excluding
timberland acquisitions and spending on the Rayonier office
building) and working capital and other balance sheet changes. CAD
is not necessarily indicative of the CAD that may be generated in
future periods.(c) “Costs related to shareholder litigation”
include expenses incurred as a result of the securities litigation
and the shareholder derivative demands. See Note 10—Contingencies
of Item 8 — Financial Statements and Supplementary Data in the
Company’s most recent Annual Report on Form 10-K. In addition,
these costs include the costs associated with the Company’s
response to a subpoena it received from the SEC in November 2014.
In July 2016, the Division of Enforcement of the SEC notified the
Company that it had concluded its investigation into the
Company.(d) The Company used foreign exchange derivatives to
mitigate the risk of fluctuations in foreign exchange rates while
awaiting the capital contribution to the New Zealand JV.(e) “Large
Dispositions” are defined as transactions involving the sale of
timberland that exceed $20 million in size and do not have a
demonstrable premium relative to timberland value. In 2017, the
Company completed two dispositions of approximately 50,000 acres in
total. In January 2017, the Company completed a disposition of
approximately 25,000 acres of timberland located in Alabama for a
sales price and gain of approximately $42.0 million and $28.2
million, respectively. In December 2017, the Company completed a
second disposition of approximately 25,000 acres of timberland
located in Alabama for a sales price and gain of approximately
$53.4 million and $38.8 million, respectively. In 2016, the Company
completed two dispositions of approximately 92,000 acres in total
for a combined sales price and gain of approximately $207.3 million
and $143.9 million, respectively.(f) Cash interest paid is
presented net of patronage refunds received of $3.0 million and
$0.4 million for the twelve months ended December 31, 2017 and
December 31, 2016, respectively.(g) Pro forma revenues (sales)
is defined as revenues (sales) adjusted for Large Dispositions.
Rayonier believes that this non-GAAP financial measure provides
investors with useful information to evaluate our core business
operations because it excludes specific items that are not
indicative of ongoing operating results.(h) Pro forma net income is
defined as net income attributable to Rayonier Inc. adjusted for
costs related to shareholder litigation, the gain on foreign
currency derivatives and Large Dispositions. Rayonier believes that
this non-GAAP financial measure provides investors with useful
information to evaluate our core business operations because it
excludes specific items that are not indicative of ongoing
operating results.(i) Pro forma operating income (loss) is defined
as operating income (loss) adjusted for costs related to
shareholder litigation, the gain on foreign currency derivatives
and Large Dispositions. Rayonier believes that this non-GAAP
financial measure provides investors with useful information to
evaluate our core business operations because it excludes specific
items that are not indicative of ongoing operating results.(j)
Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation, depletion, amortization, the non-cash cost of land
and improved development, costs related to shareholder litigation,
the gain on foreign currency derivatives and Large Dispositions.
Adjusted EBITDA is a non-GAAP measure that management uses to make
strategic decisions about the business and that investors can use
to evaluate the operational performance of the assets under
management. It removes the impact of specific items that management
believes do not directly reflect the core business operations on an
ongoing basis.
F
RAYONIER INC. AND
SUBSIDIARIESRECONCILIATION OF ADJUSTED EBITDA
GUIDANCEDecember 31, 2017 (unaudited)(millions of
dollars)
ADJUSTED EBITDA GUIDANCE (a):
2018 Guidance Net Income to Adjusted EBITDA
Reconciliation Net income
$88.7
-
$98.5
Less: Net income attributable to noncontrolling interest
(11.0
) -
(11.6
) Net income attributable to Rayonier Inc.
$77.7
-
$86.9
Interest, net
33.0
-
33.5
Income tax expense
14.3
-
15.5
Depreciation, depletion and amortization 126.0 - 135.5 Non-cash
cost of land and improved development 18.0 - 22.0 Net income
attributable to noncontrolling interest
11.0
-
11.6
Adjusted EBITDA (a) $280.0 - $305.0
(a) Adjusted EBITDA is defined as earnings before interest,
taxes, depreciation, depletion, amortization, the non-cash cost of
land and improved development, costs related to shareholder
litigation, the gain on foreign currency derivatives and Large
Dispositions. Adjusted EBITDA is a non-GAAP measure that management
uses to make strategic decisions about the business and that
investors can use to evaluate the operational performance of the
assets under management. It removes the impact of specific items
that management believes do not directly reflect the core business
operations on an ongoing basis.
G
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180207006175/en/
Rayonier Inc.Mark McHugh,
904-357-9100investorrelations@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