- Second quarter net income attributable to Rayonier of $18.8
million ($0.14 per share) on revenues of $184.8 million
- Second quarter operating income of $31.4 million and Adjusted
EBITDA of $60.6 million
- Year-to-date cash provided by operations of $117.0 million and
cash available for distribution (CAD) of $95.1 million
- Full-year 2019 guidance revised — net income attributable to
Rayonier of $54 to $63 million; EPS of $0.42 to $0.49 and Adjusted
EBITDA of $245 to $265 million
Rayonier Inc. (NYSE:RYN) today reported second quarter net
income attributable to Rayonier of $18.8 million, or $0.14 per
share, on revenues of $184.8 million. This compares to net income
attributable to Rayonier of $36.3 million, or $0.28 per share, on
revenues of $245.9 million in the prior year quarter.
The following table summarizes the current quarter and
comparable prior year period results:
Three Months Ended
(millions of dollars, except earnings per
share (EPS))
June 30, 2019
June 30, 2018
$
EPS
$
EPS
Revenues
$184.8
$245.9
Net income attributable to Rayonier
$18.8
$0.14
$36.3
$0.28
Second quarter operating income was $31.4 million versus $51.6
million in the prior year period. Second quarter Adjusted EBITDA1
was $60.6 million versus $111.3 million in the prior year
period.
The following table summarizes operating income (loss) and
Adjusted EBITDA1 for the current quarter and comparable prior year
period:
Three Months Ended June
30,
Operating Income
(Loss)
Adjusted EBITDA1
(millions of dollars)
2019
2018
2019
2018
Southern Timber
$14.7
$15.7
$27.6
$30.6
Pacific Northwest Timber
(3.8
)
5.6
2.2
15.0
New Zealand Timber
12.8
17.8
20.0
25.8
Real Estate
15.5
18.9
18.3
45.9
Trading
(0.2
)
0.2
(0.2
)
0.2
Corporate and other
(7.6
)
(6.5
)
(7.3
)
(6.2
)
Total
$31.4
$51.6
$60.6
$111.3
Year-to-date cash provided by operating activities was $117.0
million versus $181.6 million in the prior year period.
Year-to-date cash available for distribution (CAD)1 of $95.1
million decreased $68.4 million versus the prior year period
primarily due to lower Adjusted EBITDA1 ($64.9 million), higher
capital expenditures ($3.6 million) and higher cash taxes paid
($0.5 million), partially offset by lower cash interest paid ($0.5
million).
“Overall, we delivered solid operational results in the second
quarter despite challenging market conditions, particularly in the
Pacific Northwest,” said David Nunes, President and CEO. “In
Southern Timber, weighted-average stumpage prices increased 5%,
while harvest volumes decreased 14% versus the prior year period.
The decrease in harvest volumes in the second quarter was
anticipated following accelerated stumpage removals in the first
quarter. In Pacific Northwest Timber, uncertainty regarding the
U.S.-China trade dispute and challenging lumber market conditions
continued to negatively impact results, as harvest volumes
decreased 33% and delivered sawtimber prices decreased 24% versus
the prior year period. New Zealand Timber results also declined due
to weakening export demand, as harvest volumes and export sawtimber
prices both decreased 7% versus the prior year period. Real Estate
results in the second quarter were strong, with over 3,200 acres
sold at a weighted-average price of roughly $6,900 per acre;
however, results were below the prior year quarter, as the prior
year quarter included a significant Non-strategic / Timberland
sale.”
Southern Timber
Second quarter sales of $46.2 million decreased $1.8 million, or
4%, versus the prior year period. Harvest volumes decreased 14% to
1.27 million tons versus 1.49 million tons in the prior year
period, largely driven by accelerated stumpage removals in the
first quarter of the year. Average pine sawtimber stumpage prices
decreased 2% to $25.82 per ton versus $26.23 per ton in the prior
year period due to geographic mix, as an increased proportion of
volume was harvested from lower priced regions. Average pine
pulpwood stumpage prices increased 7% to $17.16 per ton versus
$16.05 per ton in the prior year period, driven primarily by strong
pricing on sales committed during wet weather conditions in the
first quarter. Overall, weighted-average stumpage prices (including
hardwood) increased 5% to $20.29 per ton versus $19.27 per ton in
the prior year period. Operating income of $14.7 million decreased
$1.0 million versus the prior year period as a result of lower
volumes ($2.0 million), lower non-timber income ($1.5 million) and
higher depletion rates ($0.1 million), partially offset by higher
net stumpage prices ($1.3 million) and lower overhead and other
expenses ($1.3 million).
Second quarter Adjusted EBITDA1 of $27.6 million was $3.0
million below the prior year period.
Pacific Northwest Timber
Second quarter sales of $18.6 million decreased $13.6 million,
or 42%, versus the prior year period. Harvest volumes decreased 33%
to 250,000 tons versus 374,000 tons in the prior year period, as we
deferred harvest in response to soft market conditions. Average
delivered sawtimber prices decreased 24% to $78.35 per ton versus
$103.38 per ton in the prior year period, while average delivered
pulpwood prices decreased 15% to $42.26 per ton versus $49.76 per
ton in the prior year period. The decrease in delivered sawtimber
prices was driven by uncertainty in the export market resulting
from the ongoing trade dispute between the U.S. and China as well
as weaker U.S. lumber markets. The decrease in delivered pulpwood
prices was driven primarily by excess supply in the market due to
reduced chip exports to Asia. Operating loss of $3.8 million versus
operating income of $5.6 million in the prior year period was
primarily due to lower net stumpage prices ($6.0 million), lower
volumes ($2.6 million), higher road maintenance and engineering
costs ($1.0 million) and lower non-timber income ($0.1 million),
partially offset by lower depletion rates ($0.3 million).
Second quarter Adjusted EBITDA1 of $2.2 million was $12.8
million below the prior year period.
New Zealand Timber
Second quarter sales of $62.1 million decreased $7.6 million, or
11%, versus the prior year period. Harvest volumes decreased 7% to
684,000 tons versus 738,000 tons in the prior year period primarily
due to favorable timing of export shipments in the prior year
period. Average delivered prices for export sawtimber decreased 7%
to $111.81 per ton versus $120.80 per ton in the prior year period,
while average delivered prices for domestic sawtimber decreased 4%
to $82.66 per ton versus $86.21 per ton in the prior year period.
The decrease in export sawtimber prices was primarily due to
increased competition from lower-cost lumber imports into China and
higher log inventories at China ports. The decrease in domestic
sawtimber prices (in U.S. dollar terms) was driven primarily by the
fall in the NZ$/US$ exchange rate (US$0.67 per NZ$1.00 versus
US$0.71 per NZ$1.00). Excluding the impact of foreign exchange
rates, domestic sawtimber prices increased 2% versus the prior year
period. Operating income of $12.8 million decreased $5.0 million
versus the prior year period as a result of lower net stumpage
prices ($2.6 million), lower volumes ($1.7 million), higher
depletion rates ($0.2 million) and unfavorable foreign exchange
impacts ($1.2 million), partially offset by lower road maintenance
costs ($0.3 million) and higher non-timber income ($0.4
million).
Second quarter Adjusted EBITDA1 of $20.0 million was $5.8
million below the prior year period.
Real Estate
Second quarter sales of $22.5 million decreased $27.4 million
versus the prior year period, while operating income of $15.5
million decreased $3.4 million versus the prior year period due to
a lower number of acres sold (3,265 acres sold versus 15,804 acres
sold in the prior year period), partially offset by a significant
increase in weighted-average prices ($6,899 per acre versus $3,153
per acre in the prior year period).
Improved Development sales of $0.2 million in the Wildlight
development project consisted of six residential lots for townhomes
($28,750 per lot or $198,000 per acre). This compares to prior year
period sales of $1.3 million, which consisted of 2.0 acres of
commercial property for $0.7 million ($351,000 per acre) and 12
residential lots for $0.6 million ($52,000 per lot or $287,000 per
acre).
Unimproved Development sales of $14.4 million consisted of a 784
acre sale in St. Johns County, Florida for $18,402 per acre. This
compares to no Unimproved Development sales in the prior year
period.
Rural sales of $6.8 million consisted of 1,717 acres at an
average price of $3,959 per acre. This compares to prior year
period sales of $4.8 million, which consisted of 1,071 acres at an
average price of $4,509 per acre.
Non-strategic / Timberland sales of $1.1 million consisted of
763 acres at an average price of $1,472 per acre. This compares to
prior year period sales of $43.7 million, which consisted of 14,729
acres at an average price of $2,966 per acre, including a sale of
14,447 acres in Louisiana for $2,988 per acre.
Second quarter Adjusted EBITDA1 of $18.3 million was $27.6
million below the prior year period.
Trading
Second quarter sales of $35.5 million decreased $10.7 million
versus the prior year period primarily due to lower volumes and
prices. Sales volumes decreased 18% to 325,000 tons versus 395,000
tons in the prior year period. Operating loss of $0.2 million
versus operating income of $0.2 million in the prior year period
was due to lower trading margins resulting from lower volumes and
prices.
Other Items
Second quarter corporate and other operating expenses of $7.6
million increased $1.1 million versus the prior year period,
primarily due to elevated legal expenses.
Second quarter interest expense of $7.9 million decreased $0.2
million versus the prior year period.
Second quarter income tax expense of $3.6 million decreased $3.5
million versus the prior year period as a result of lower taxable
income. The New Zealand subsidiary is the primary driver of income
tax expense.
Outlook
“The ongoing U.S.-China trade dispute and its corresponding
effects have continued to negatively impact our timber segments,”
added Nunes. “With no clear resolution in sight, we have tempered
our expectations for the balance of the year. As a result, we now
anticipate full-year net income attributable to Rayonier of $54 to
$63 million, EPS of $0.42 to $0.49 and Adjusted EBITDA of $245 to
$265 million. In our Southern Timber segment, we expect to achieve
our prior full-year volume guidance of 6.2 to 6.3 million tons with
higher Adjusted EBITDA driven primarily by strong non-timber
income. In our Pacific Northwest Timber segment, we now expect
full-year harvest volumes of approximately 1.2 million tons, as we
have deferred planned harvest in response to weak market
conditions. Given the current status of the U.S.-China trade
dispute, we expect limited upside to current prices through the
remainder of 2019. In our New Zealand Timber segment, we are
maintaining our full-year volume guidance of 2.7 to 2.8 million
tons, although we expect that near-term weakness in the China
export market coupled with continued competition from alternative
supply sources will weigh on pricing in the second half of the
year. In our Real Estate segment, we are on track to achieve
full-year Adjusted EBITDA generally in line with our prior
guidance, although we expect that second half transaction activity
will be concentrated in the fourth quarter.”
Conference Call
A conference call and live audio webcast will be held on
Thursday, August 8, 2019 at 10:00 AM EDT 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, August 15, 2019 by dialing
800-234-7802 (domestic) or 402-220-9690 (international), passcode:
8012019.
Complimentary copies of Rayonier press releases and other
financial documents are also available by calling (904)
357-9100.
1Adjusted EBITDA and CAD are non-GAAP measures defined and
reconciled to GAAP in the attached schedules.
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 June
30, 2019, 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 (379,000 acres) and New Zealand
(410,000 acres). More information is available at
www.rayonier.com.
_______________________________________________________________________
Forward-Looking Statements - Certain statements in this
press release 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 and dispositions, 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; 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 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; 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,” 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
SUBSIDIARIES
CONDENSED STATEMENTS OF
CONSOLIDATED INCOME
June 30, 2019
(unaudited)
(millions of dollars, except per
share information)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2019
2019
2018
2019
2018
SALES
$184.8
$191.5
$245.9
$376.3
$449.1
Costs and Expenses
Cost of sales
(140.4
)
(143.3
)
(184.4
)
(283.7
)
(322.9
)
Selling and general expenses
(11.0
)
(9.8
)
(11.5
)
(20.8
)
(20.5
)
Other operating (expense) income, net
(2.0
)
0.1
1.6
(1.9
)
3.0
OPERATING INCOME
31.4
38.5
51.6
69.9
108.7
Interest expense
(7.9
)
(7.7
)
(8.1
)
(15.6
)
(16.2
)
Interest and other miscellaneous income,
net
1.0
1.3
2.9
2.4
3.5
INCOME BEFORE INCOME TAXES
24.5
32.1
46.4
56.7
96.0
Income tax expense
(3.6
)
(4.3
)
(7.1
)
(8.0
)
(14.0
)
NET INCOME
20.9
27.8
39.3
48.7
82.0
Less: Net income attributable to
noncontrolling interest
(2.1
)
(3.0
)
(3.0
)
(5.2
)
(5.2
)
NET INCOME ATTRIBUTABLE TO RAYONIER
INC.
$18.8
$24.8
$36.3
$43.5
$76.8
EARNINGS PER COMMON SHARE
Basic earnings per share attributable to
Rayonier Inc.
$0.14
$0.19
$0.28
$0.34
$0.60
Diluted earnings per share attributable to
Rayonier Inc.
$0.14
$0.19
$0.28
$0.34
$0.59
Weighted Average Common Shares used for
determining
Basic EPS
129,380,282
129,172,925
129,067,325
129,277,490
128,935,003
Diluted EPS
129,643,915
129,750,281
129,711,287
129,697,985
129,632,578
A
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
June 30, 2019
(unaudited)
(millions of dollars)
June 30,
December 31,
2019
2018
Assets
Cash and cash equivalents
$131.0
$148.4
Other current assets
89.8
59.5
Timber and timberlands, net of depletion
and amortization
2,392.4
2,401.3
Higher and better use timberlands and real
estate development investments
77.1
85.6
Property, plant and equipment
30.8
30.7
Less - accumulated depreciation
(8.8
)
(7.9
)
Net property, plant and equipment
22.0
22.8
Restricted cash
3.8
8.1
Right-of-use assets
104.0
—
Other assets
41.0
55.0
$2,861.1
$2,780.7
Liabilities and Shareholders’
Equity
Other current liabilities
86.1
63.5
Long-term debt
972.8
972.6
Long-term lease liability
93.7
—
Other non-current liabilities
108.2
90.0
Total Rayonier Inc. shareholders’
equity
1,500.9
1,556.9
Noncontrolling interest
99.4
97.7
Total shareholders’ equity
1,600.3
1,654.6
$2,861.1
$2,780.7
B
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
June 30, 2019
(unaudited)
(millions of dollars, except
share information)
Common Shares
Retained Earnings
Accumulated Other
Comprehensive Income
Non-controlling
Interest
Shareholders’
Equity
Shares
Amount
Balance, January 1, 2019
129,488,675
$884.3
$672.4
$0.2
$97.7
$1,654.6
Net income
—
—
24.8
—
3.0
27.8
Dividends ($0.27 per share)
—
—
(35.1
)
—
—
(35.1
)
Issuance of shares under incentive stock
plans
26,031
0.6
—
—
—
0.6
Stock-based compensation
—
1.4
—
—
—
1.4
Other (a)
(1,140
)
—
—
(6.0
)
(2.1
)
(8.1
)
Balance, March 31, 2019
129,513,566
$886.3
$662.1
($5.8
)
$98.6
$1,641.2
Net income
—
—
18.8
—
2.1
20.9
Dividends ($0.27 per share)
—
—
(35.1
)
—
—
(35.1
)
Issuance of shares under incentive stock
plans
167,837
0.2
—
—
—
0.2
Stock-based compensation
—
2.3
—
—
—
2.3
Other (a)
(51,687
)
(4.2
)
—
(23.7
)
(1.3
)
(29.2
)
Balance, June 30, 2019
129,629,716
$884.6
$645.8
($29.5
)
$99.4
$1,600.3
Common Shares
Retained Earnings
Accumulated Other
Comprehensive
Income
Non-controlling
Interest
Shareholders’ Equity
Shares
Amount
Balance, January 1, 2018
128,970,776
$872.3
$707.4
$13.4
$99.9
$1,693.0
Net income
—
—
40.5
—
2.2
42.7
Dividends ($0.25 per share)
—
—
(32.6
)
—
—
(32.6
)
Issuance of shares under incentive stock
plans
204,336
5.4
—
—
—
5.4
Stock-based compensation
—
1.2
—
—
—
1.2
Other (a)
(811
)
—
—
24.1
2.3
26.4
Balance, March 31, 2018
129,174,301
$878.9
$715.3
$37.5
$104.4
$1,736.1
Net income
—
—
36.3
—
3.0
39.3
Dividends ($0.27 per share)
—
—
(35.3
)
—
—
(35.3
)
Issuance of shares under incentive stock
plans
357,139
2.4
—
—
—
2.4
Stock-based compensation
—
2.3
—
—
—
2.3
Other (a)
(80,172
)
(3.0
)
—
(20.9
)
(8.0
)
(31.9
)
Balance, June 30, 2018
129,451,268
$880.6
$716.3
$16.6
$99.4
$1,712.9
(a)
Primarily includes shares purchased from
employees in non-open market transactions to pay withholding taxes
associated with the vesting of restricted stock, amortization of
pension and postretirement plan liabilities, foreign currency
translation adjustments and mark-to-market adjustments of
qualifying cash flow hedges.
C
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
June 30, 2019
(unaudited)
(millions of dollars)
Six Months Ended June 30,
2019
2018
Cash provided by operating
activities:
Net income
$48.7
$82.0
Depreciation, depletion and
amortization
64.1
80.9
Non-cash cost of land and improved
development
5.6
14.9
Other items to reconcile net income to
cash provided by operating activities
12.4
12.1
Changes in working capital and other
assets and liabilities
(13.8
)
(8.3
)
117.0
181.6
Cash used for investing
activities:
Capital expenditures
(29.5
)
(25.9
)
Real estate development investments
(1.0
)
(4.5
)
Purchase of timberlands
(26.4
)
(31.2
)
Other
(3.9
)
0.1
(60.8
)
(61.5
)
Cash used for financing
activities:
Net decrease in debt, net of issuance
costs
—
(53.4
)
Dividends paid
(71.1
)
(67.1
)
Proceeds from the issuance of common
shares under incentive stock plan
0.8
7.7
Repurchase of common shares
(4.2
)
(2.8
)
Other
(3.5
)
—
(78.0
)
(115.6
)
Effect of exchange rate changes on cash
and restricted cash
—
(0.7
)
Cash, cash equivalents and restricted
cash:
Change in cash, cash equivalents and
restricted cash
(21.8
)
3.8
Balance, beginning of year
156.5
172.4
Balance, end of period
$134.7
$176.2
D
RAYONIER INC. AND
SUBSIDIARIES
BUSINESS SEGMENT SALES,
OPERATING INCOME AND ADJUSTED EBITDA
June 30, 2019
(unaudited)
(millions of dollars)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2019
2019
2018
2019
2018
Sales
Southern Timber
$46.2
$60.8
$48.0
$107.0
$91.6
Pacific Northwest Timber
18.6
20.5
32.2
39.1
63.6
New Zealand Timber
62.1
57.1
69.7
119.3
122.6
Real Estate
22.5
21.0
49.9
43.5
85.9
Trading
35.5
32.1
46.2
67.5
85.4
Intersegment Eliminations
(0.1
)
—
—
(0.1
)
—
Sales
$184.8
$191.5
$245.9
$376.3
$449.1
Operating income (loss)
Southern Timber
$14.7
$21.5
$15.7
$36.3
$27.9
Pacific Northwest Timber
(3.8
)
(3.7
)
5.6
(7.6
)
10.3
New Zealand Timber
12.8
15.7
17.8
28.5
33.7
Real Estate
15.5
10.0
18.9
25.5
46.9
Trading
(0.2
)
0.5
0.2
0.3
0.4
Corporate and Other
(7.6
)
(5.5
)
(6.5
)
(13.1
)
(10.5
)
Operating income
$31.4
$38.5
$51.6
$69.9
$108.7
Adjusted EBITDA (a)
Southern Timber
$27.6
$41.2
$30.6
$68.9
$58.8
Pacific Northwest Timber
2.2
3.1
15.0
5.3
29.2
New Zealand Timber
20.0
22.0
25.8
42.0
47.5
Real Estate
18.3
17.4
45.9
35.7
78.7
Trading
(0.2
)
0.5
0.2
0.3
0.4
Corporate and Other
(7.3
)
(5.2
)
(6.2
)
(12.5
)
(9.9
)
Adjusted EBITDA
$60.6
$79.0
$111.3
$139.7
$204.6
(a) Adjusted EBITDA is a non-GAAP measure. See Schedule F for
definitions and reconciliations.
E
RAYONIER INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
MEASURES
June 30, 2019
(unaudited)
(millions of dollars, except per
share information)
LIQUIDITY MEASURES:
Six Months Ended
June 30,
June 30,
2019
2018
Cash Provided by Operating
Activities
$117.0
$181.6
Working capital and other balance sheet
changes
7.6
7.8
Capital expenditures (a)
(29.5
)
(25.9
)
Cash Available for Distribution
(b)
$95.1
$163.5
Net Income
$48.7
$82.0
Interest, net and miscellaneous income
13.8
15.3
Income tax expense
8.0
14.0
Depreciation, depletion and
amortization
64.1
80.9
Non-cash cost of land and improved
development
5.6
14.9
Non-operating income
(0.6
)
(2.7
)
Adjusted EBITDA (c)
$139.7
$204.6
Cash interest paid (d)
(14.4
)
(14.9
)
Cash taxes paid
(0.7
)
(0.2
)
Capital expenditures (a)
(29.5
)
(25.9
)
Cash Available for Distribution
(b)
$95.1
$163.5
Cash Available for Distribution
(b)
$95.1
$163.5
Real estate development investments
(1.0
)
(4.5
)
Cash Available for Distribution after
real estate development investments
$94.1
$159.1
OPERATING INCOME (LOSS) AND ADJUSTED
EBITDA (c):
Three Months Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Corporate and Other
Total
June 30, 2019
Operating income (loss)
$14.7
($3.8
)
$12.8
$15.5
($0.2
)
($7.6
)
$31.4
Depreciation, depletion and
amortization
12.9
6.0
7.2
1.2
—
0.3
27.6
Non-cash cost of land and improved
development
—
—
—
1.6
—
—
1.6
Adjusted EBITDA
$27.6
$2.2
$20.0
$18.3
($0.2
)
($7.3
)
$60.6
March 31, 2019
Operating income (loss)
$21.5
($3.7
)
$15.7
$10.0
$0.5
($5.5
)
$38.5
Depreciation, depletion and
amortization
19.7
6.8
6.3
3.3
—
0.3
36.5
Non-cash cost of land and improved
development
—
—
—
4.0
—
—
4.0
Adjusted EBITDA
$41.2
$3.1
$22.0
$17.4
$0.5
($5.2
)
$79.0
June 30, 2018
Operating income
$15.7
$5.6
$17.8
$18.9
$0.2
($6.5
)
$51.6
Depreciation, depletion and
amortization
14.9
9.4
8.0
13.7
—
0.3
46.4
Non-cash cost of land and improved
development
—
—
—
13.3
—
—
13.3
Adjusted EBITDA
$30.6
$15.0
$25.8
$45.9
$0.2
($6.2
)
$111.3
OPERATING INCOME (LOSS) AND ADJUSTED
EBITDA (c):
Six Months Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Corporate and Other
Total
June 30, 2019
Operating income (loss)
$36.3
($7.6
)
$28.5
$25.5
$0.3
($13.1
)
$69.9
Depreciation, depletion and
amortization
32.6
12.9
13.5
4.5
—
0.6
64.1
Non-cash cost of land and improved
development
—
—
—
5.6
—
—
5.6
Adjusted EBITDA
$68.9
$5.3
$42.0
$35.7
$0.3
($12.5
)
$139.7
June 30, 2018
Operating income
$27.9
$10.3
$33.7
$46.9
$0.4
($10.5
)
$108.7
Depreciation, depletion and
amortization
30.9
18.9
13.7
16.8
—
0.6
80.9
Non-cash cost of land and improved
development
—
—
—
14.9
—
—
14.9
Adjusted EBITDA
$58.8
$29.2
$47.5
$78.7
$0.4
($9.9
)
$204.6
(a)
Capital expenditures exclude timberland
acquisitions of $26.4 million and $31.2 million during the six
months ended June 30, 2019 and June 30, 2018, 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 common stock dividends,
distributions to the New Zealand minority shareholder, repurchase
of the Company’s common shares, debt reduction, strategic
acquisitions and real estate development investments. CAD is
defined as cash provided by operating activities adjusted for
capital spending (excluding timberland acquisitions) and working
capital and other balance sheet changes. CAD is not necessarily
indicative of the CAD that may be generated in future periods.
(c)
Adjusted EBITDA is defined as earnings
before interest, taxes, depreciation, depletion, amortization, the
non-cash cost of land and improved development, non-operating
income and expense 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.
Large Dispositions, which are excluded in the calculation of
Adjusted EBITDA, 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.
(d)
Cash interest paid is presented net of
patronage refunds received of $4.0 million and $3.8 million for the
six months ended June 30, 2019 and June 30, 2018, respectively.
F
RAYONIER INC. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED
EBITDA GUIDANCE
June 30, 2019
(unaudited)
(millions of dollars)
ADJUSTED EBITDA GUIDANCE (a):
Revised Full-Year
Guidance
Year-to-Date Results
Net Income to Adjusted EBITDA
Reconciliation
Net income
$61.5
-
$71.5
$48.7
Less: Net income attributable to
noncontrolling interest
(7.5
)
-
(8.5
)
(5.2
)
Net income attributable to Rayonier
Inc.
$54.0
-
$63.0
$43.5
Interest, net
29.5
-
30.5
13.8
Income tax expense
12.0
-
13.5
8.0
Depreciation, depletion and
amortization
130.0
-
135.5
64.1
Non-cash cost of land and improved
development
12.0
-
14.0
5.6
Non-operating income
—
—
(0.6
)
Net income attributable to noncontrolling
interest
7.5
-
8.5
5.2
Adjusted EBITDA
$245.0
-
$265.0
$139.7
Diluted Earnings per Share
$0.42
-
$0.49
$0.34
(a)
Adjusted EBITDA is defined as earnings
before interest, taxes, depreciation, depletion, amortization, the
non-cash cost of land and improved development, non-operating
income and expense 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.
Large Dispositions, which are excluded in the calculation of
Adjusted EBITDA, 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.
G
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005801/en/
Investors/Media Mark McHugh 904-357-9100
investorrelations@rayonier.com
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