- Third quarter net loss attributable to Rayonier of ($0.4)
million ($0.00 per share) on revenues of $156.4 million
- Third quarter operating income of $11.0 million and Adjusted
EBITDA of $43.2 million
- Year-to-date cash provided by operations of $164.2 million and
cash available for distribution (CAD) of $115.6 million
- Third quarter share repurchases of $8.4 million
Rayonier Inc. (NYSE:RYN) today reported third quarter net loss
attributable to Rayonier of ($0.4) million, or $0.00 per share, on
revenues of $156.4 million. This compares to net income
attributable to Rayonier of $23.4 million, or $0.18 per share, on
revenues of $200.9 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))
September 30, 2019
September 30, 2018
$
EPS
$
EPS
Revenues
$156.4
$200.9
Net (loss) income attributable to
Rayonier
($0.4
)
—
$23.4
$0.18
Third quarter operating income was $11.0 million versus $46.4
million in the prior year period. Third quarter Adjusted EBITDA1
was $43.2 million versus $83.3 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 September
30,
Operating Income
(Loss)
Adjusted EBITDA1
(millions of dollars)
2019
2018
2019
2018
Southern Timber
$9.5
$9.2
$22.5
$22.9
Pacific Northwest Timber
(3.6
)
1.9
2.7
9.7
New Zealand Timber
10.1
16.4
17.7
24.0
Real Estate
0.4
24.7
5.4
32.3
Trading
—
0.3
—
0.3
Corporate and other
(5.4
)
(6.2
)
(5.1
)
(5.9
)
Total
$11.0
$46.4
$43.2
$83.3
Year-to-date cash provided by operating activities was $164.2
million versus $261.1 million in the prior year period.
Year-to-date cash available for distribution (CAD)1 of $115.6
million decreased $106.3 million versus the prior year period
primarily due to lower Adjusted EBITDA1 ($105.1 million), higher
capital expenditures ($1.1 million) and higher cash taxes paid
($0.5 million), partially offset by lower cash interest paid ($0.3
million).
“Our overall results were down considerably from the prior year
quarter, primarily as a result of a significantly lower
contribution from our Real Estate segment due to the timing of
transactions, as well as challenging end-market conditions in our
timber segments,” said David Nunes, President and CEO. “In Southern
Timber, weighted-average stumpage prices decreased 7%, while
harvest volumes decreased 4% versus the prior year period. However,
non-timber income generated sales of $8.3 million, representing an
increase of $3.4 million versus the prior year period. In Pacific
Northwest Timber, weak export markets coupled with challenging
lumber market conditions continued to negatively impact results, as
harvest volumes decreased 16% and delivered sawtimber prices
decreased 24% versus the prior year period. New Zealand Timber
results also declined due to weaker demand from China and
competition from alternative supply sources, which resulted in a
17% decline in export sawtimber prices versus the prior year
period. As expected, Real Estate results in the third quarter were
well below the prior year quarter, as the prior year quarter
included a significant Non-strategic / Timberland sale.”
Southern Timber
Third quarter sales of $41.3 million (which included non-timber
sales of $8.3 million) increased $1.6 million, or 4%, versus the
prior year period primarily due to higher pipeline easement
revenue. Harvest volumes decreased 4% to 1.28 million tons versus
1.33 million tons in the prior year period, largely driven by
weaker sawtimber demand, particularly in log export markets.
Average pine sawtimber stumpage prices decreased 9% to $23.16 per
ton versus $25.55 per ton in the prior year period, driven in part
by an oversupply in the domestic market from sawtimber initially
targeted for export. Average pine pulpwood stumpage prices
decreased 7% to $15.53 per ton versus $16.74 per ton in the prior
year period, due to increased supply resulting from dry weather
conditions during the quarter as well as geographic mix, as an
increased proportion of volume was harvested from lower-priced
regions. Overall, weighted-average stumpage prices (including
hardwood) decreased 7% to $18.05 per ton versus $19.36 per ton in
the prior year period. Operating income of $9.5 million increased
$0.3 million versus the prior year period as higher non-timber
income ($3.4 million) and lower depletion rates ($0.1 million) were
largely offset by lower volumes ($0.4 million), lower net stumpage
prices ($1.7 million) and higher lease and other expenses ($1.1
million).
Third quarter Adjusted EBITDA1 of $22.5 million was $0.4 million
below the prior year period.
Pacific Northwest Timber
Third quarter sales of $18.8 million decreased $9.0 million, or
33%, versus the prior year period. Harvest volumes decreased 16% to
261,000 tons versus 310,000 tons in the prior year period, as we
deferred harvest in response to soft market conditions. Average
delivered sawtimber prices decreased 24% to $78.26 per ton versus
$102.74 per ton in the prior year period, while average delivered
pulpwood prices decreased 23% to $37.87 per ton versus $48.93 per
ton in the prior year period. The decrease in delivered sawtimber
prices was driven by weak export market conditions due to the
ongoing U.S.-China trade dispute as well as competition from
lower-priced European salvage timber. The decrease in delivered
pulpwood prices was driven primarily by excess supply in the
market. Operating loss of $3.6 million versus operating income of
$1.9 million in the prior year period was due primarily to lower
net stumpage prices ($5.5 million), lower volumes ($0.9 million)
and lower non-timber income ($0.2 million), partially offset by
lower road maintenance and other costs ($0.8 million) and lower
depletion rates ($0.3 million).
Third quarter Adjusted EBITDA1 of $2.7 million was $7.0 million
below the prior year period.
New Zealand Timber
Third quarter sales of $62.0 million decreased $4.3 million, or
6%, versus the prior year period. Harvest volumes increased 4% to
754,000 tons versus 724,000 tons in the prior year period. Average
delivered prices for export sawtimber decreased 17% to $95.51 per
ton versus $114.54 per ton in the prior year period, while average
delivered prices for domestic sawtimber decreased 7% to $75.29 per
ton versus $80.74 per ton in the prior year period. The decrease in
export sawtimber prices was primarily due to increased competition
from lower-cost log and lumber imports into China as well as a
general slowdown in the Chinese economy. The decrease in domestic
sawtimber prices (in U.S. dollar terms) was driven in part by the
fall in the NZ$/US$ exchange rate (US$0.66 per NZ$1.00 versus
US$0.68 per NZ$1.00). Excluding the impact of foreign exchange
rates, domestic sawtimber prices decreased 4% versus the prior year
period, following the negative trend in the export market.
Operating income of $10.1 million decreased $6.3 million versus the
prior year period as a result of lower net stumpage prices ($6.8
million) and higher roading costs ($0.8 million), partially offset
by higher volumes ($0.9 million) and higher non-timber income ($0.4
million).
Third quarter Adjusted EBITDA1 of $17.7 million was $6.3 million
below the prior year period.
Real Estate
Third quarter sales of $9.2 million decreased $27.0 million
versus the prior year period, while operating income of $0.4
million decreased $24.3 million versus the prior year period due to
a lower number of acres sold (1,345 acres sold versus 7,336 acres
sold in the prior year period), partially offset by a significant
increase in weighted-average prices ($6,513 per acre versus $4,929
per acre in the prior year period).
Improved Development sales of $4.5 million in the Wildlight
development project consisted of 21.7 acres of commercial property
($207,000 per acre). This compares to prior year period sales of
$1.3 million, which consisted of 2.2 acres of commercial property
for $0.5 million ($225,000 per acre) and 20 residential lots for
$0.8 million ($42,000 per lot or $288,000 per acre).
There were no Unimproved Development sales in the third quarter.
This compares to prior year period sales of $1.2 million, which
consisted of 126 acres at an average price of $9,325 per acre.
Rural sales of $3.8 million consisted of 1,121 acres at an
average price of $3,425 per acre. This compares to prior year
period sales of $4.5 million, which consisted of 1,420 acres at an
average price of $3,161 per acre.
Non-strategic / Timberland sales of $0.4 million consisted of
202 acres at an average price of $2,117 per acre. This compares to
prior year period sales of $29.2 million, which consisted of 5,785
acres at an average price of $5,039 per acre, including a $28.1
million timberland sale in New Zealand consisting of 4,996
productive acres at an average price of $5,628 per acre.
Third quarter Adjusted EBITDA1 of $5.4 million was $26.9 million
below the prior year period.
Trading
Third quarter sales of $25.2 million decreased $5.8 million
versus the prior year period primarily due to lower volumes and
prices. Sales volumes decreased 5% to 270,000 tons versus 283,000
tons in the prior year period. The Trading segment generated
breakeven results versus operating income of $0.3 million in the
prior year period, due to lower trading margins resulting from
lower volumes and prices.
Other Items
Third quarter corporate and other operating expenses of $5.4
million decreased $0.8 million versus the prior year period,
primarily due to variances in overhead costs allocated to operating
segments ($0.3 million), lower legal expenses ($0.3 million) and
lower compensation and benefit expenses ($0.2 million).
Third quarter interest expense of $8.0 million increased $0.1
million versus the prior year period.
Third quarter income tax expense of $2.3 million decreased $6.1
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.
Share Repurchases
During the third quarter, the Company repurchased $8.4 million
of common shares at an average price of $26.34 per share. As of
September 30, 2019, the Company had 129.3 million common shares
outstanding and $90.9 million remaining on its current share
repurchase authorization.
Outlook
“Based on challenging export and domestic market conditions
across our timber segments, we expect to achieve full-year Adjusted
EBITDA toward the lower end of our prior guidance,” stated Nunes.
“In our Southern Timber segment, we now expect full-year harvest
volumes of 6.0 to 6.1 million tons as we have pulled back harvest
volumes in certain markets impacted by the decline in sawtimber
demand, although we anticipate continued solid pulpwood demand in
our key market areas. In our Pacific Northwest Timber segment, we
are on track to achieve full-year harvest volumes of approximately
1.2 million tons, as we anticipate a modest improvement in domestic
demand and pricing. In our New Zealand Timber segment, full-year
harvest volumes are expected to remain between 2.7 and 2.8 million
tons. Pricing in New Zealand has improved modestly from mid-year
lows, but still remains well below average pricing in the first
half of the year. In our Real Estate segment, following a
relatively light third quarter, we expect a strong fourth quarter
contribution based on a number of transactions that are either
under contract or in active negotiation.”
Conference Call
A conference call and live audio webcast will be held on
Thursday, October 31, 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, November 7, 2019 by dialing
866-415-3312 (domestic) or 203-369-0691 (international), passcode:
10312019.
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
September 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 (414,000 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
September 30, 2019
(unaudited)
(millions of dollars, except per
share information)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
SALES
$156.4
$184.8
$200.9
$532.8
$650.0
Costs and Expenses
Cost of sales
(134.5
)
(140.4
)
(143.2
)
(418.2
)
(466.2
)
Selling and general expenses
(10.1
)
(11.0
)
(10.8
)
(30.9
)
(31.3
)
Other operating (expense) income, net
(0.8
)
(2.0
)
(0.5
)
(2.8
)
2.6
OPERATING INCOME
11.0
31.4
46.4
80.9
155.1
Interest expense
(8.0
)
(7.9
)
(7.9
)
(23.6
)
(24.0
)
Interest and other miscellaneous income,
net
0.8
1.0
0.5
3.1
4.0
INCOME BEFORE INCOME TAXES
3.8
24.5
39.0
60.4
135.1
Income tax expense
(2.3
)
(3.6
)
(8.4
)
(10.2
)
(22.4
)
NET INCOME
1.5
20.9
30.6
50.2
112.7
Less: Net income attributable to
noncontrolling interest
(1.9
)
(2.1
)
(7.2
)
(7.1
)
(12.5
)
NET (LOSS) INCOME ATTRIBUTABLE TO
RAYONIER INC.
($0.4
)
$18.8
$23.4
$43.1
$100.2
EARNINGS PER COMMON SHARE
Basic earnings per share attributable to
Rayonier Inc.
—
$0.14
$0.18
$0.33
$0.78
Diluted earnings per share attributable to
Rayonier Inc.
—
$0.14
$0.18
$0.33
$0.77
Weighted Average Common Shares used for
determining
Basic EPS
129,325,181
129,380,282
129,142,931
129,293,562
129,005,074
Diluted EPS
129,325,181
129,643,915
129,755,874
129,652,462
129,674,438
A
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
September 30, 2019
(unaudited)
(millions of dollars)
September 30,
December 31,
2019
2018
Assets
Cash and cash equivalents
$56.9
$148.4
Other current assets
49.6
59.5
Timber and timberlands, net of depletion
and amortization
2,408.3
2,401.3
Higher and better use timberlands and real
estate development investments
89.5
85.6
Property, plant and equipment
31.4
30.7
Less - accumulated depreciation
(9.2
)
(7.9
)
Net property, plant and equipment
22.2
22.8
Restricted cash
3.0
8.1
Right-of-use assets
97.4
—
Other assets
40.2
55.0
$2,767.1
$2,780.7
Liabilities and Shareholders’
Equity
Other current liabilities
83.8
63.5
Long-term debt
973.0
972.6
Long-term lease liability
88.4
—
Other non-current liabilities
106.3
90.0
Total Rayonier Inc. shareholders’
equity
1,425.1
1,556.9
Noncontrolling interest
90.5
97.7
Total shareholders’ equity
1,515.6
1,654.6
$2,767.1
$2,780.7
B
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
September 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
250,344
0.2
—
—
—
0.2
Stock-based compensation
—
2.3
—
—
—
2.3
Other (a)
(134,194
)
(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
Net (loss) income
—
—
(0.4
)
—
1.9
1.5
Dividends ($0.27 per share)
—
—
(34.9
)
—
—
(34.9
)
Issuance of shares under incentive stock
plans
2,423
0.1
—
—
—
0.1
Stock-based compensation
—
1.5
—
—
—
1.5
Repurchase of common shares made under
repurchase program
(320,016
)
—
(8.4
)
—
—
(8.4
)
Other (a)
(230
)
—
—
(33.7
)
(10.8
)
(44.5
)
Balance, September 30, 2019
129,311,893
$886.2
$602.1
($63.2
)
$90.5
$1,515.6
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
Net income
—
—
23.4
—
7.2
30.6
Dividends ($0.27 per share)
—
—
(34.9
)
—
—
(34.9
)
Issuance of shares under incentive stock
plans
16,382
0.3
—
—
—
0.3
Stock-based compensation
—
1.5
—
—
—
1.5
Other (a)
(413
)
—
0.7
(4.3
)
(5.8
)
(9.4
)
Balance, September 30, 2018
129,467,237
$882.4
$705.5
$12.3
$100.8
$1,701.1
(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, mark-to-market adjustments of qualifying
cash flow hedges and distributions to minority shareholders. The
three months ended September 30, 2018 also includes the adjustment
related to the adoption of ASU 2018-02.
C
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
September 30, 2019
(unaudited)
(millions of dollars)
Nine Months Ended September
30,
2019
2018
Cash provided by operating
activities:
Net income
$50.2
$112.7
Depreciation, depletion and
amortization
91.9
115.7
Non-cash cost of land and improved
development
10.0
17.1
Other items to reconcile net income to
cash provided by operating activities
13.2
30.0
Changes in working capital and other
assets and liabilities
(1.1
)
(14.4
)
164.2
261.1
Cash used for investing
activities:
Capital expenditures
(45.3
)
(44.1
)
Real estate development investments
(3.3
)
(6.9
)
Purchase of timberlands
(81.9
)
(39.0
)
Other
(2.3
)
2.1
(132.8
)
(87.9
)
Cash used for financing
activities:
Net decrease in debt, net of issuance
costs
—
(53.4
)
Dividends paid
(106.1
)
(101.8
)
Proceeds from the issuance of common
shares under incentive stock plan
0.8
8.2
Repurchase of common shares made under
repurchase program
(8.4
)
—
Other
(11.5
)
(5.5
)
(125.2
)
(152.5
)
Effect of exchange rate changes on cash
and restricted cash
(2.8
)
(1.4
)
Cash, cash equivalents and restricted
cash:
Change in cash, cash equivalents and
restricted cash
(96.6
)
19.3
Balance, beginning of year
156.5
172.4
Balance, end of period
$59.9
$191.7
D
RAYONIER INC. AND
SUBSIDIARIES
BUSINESS SEGMENT SALES,
OPERATING INCOME AND ADJUSTED EBITDA
September 30, 2019
(unaudited)
(millions of dollars)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
2019
2019
2018
2019
2018
Sales
Southern Timber
$41.3
$46.2
$39.7
$148.3
$131.3
Pacific Northwest Timber
18.8
18.6
27.8
57.9
91.4
New Zealand Timber
62.0
62.1
66.3
181.3
188.9
Real Estate
9.2
22.5
36.2
52.7
122.1
Trading
25.2
35.5
31.0
92.7
116.4
Intersegment Eliminations
(0.1
)
(0.1
)
—
(0.1
)
—
Sales
$156.4
$184.8
$200.9
$532.8
$650.0
Operating income (loss)
Southern Timber
$9.5
$14.7
$9.2
$45.8
$37.1
Pacific Northwest Timber
(3.6
)
(3.8
)
1.9
(11.1
)
12.2
New Zealand Timber
10.1
12.8
16.4
38.6
50.1
Real Estate
0.4
15.5
24.7
25.9
71.6
Trading
—
(0.2
)
0.3
0.3
0.7
Corporate and Other
(5.4
)
(7.6
)
(6.2
)
(18.6
)
(16.6
)
Operating income
$11.0
$31.4
$46.4
$80.9
$155.1
Adjusted EBITDA (a)
Southern Timber
$22.5
$27.6
$22.9
$91.4
$81.7
Pacific Northwest Timber
2.7
2.2
9.7
8.0
38.9
New Zealand Timber
17.7
20.0
24.0
59.7
71.4
Real Estate
5.4
18.3
32.3
41.1
111.0
Trading
—
(0.2
)
0.3
0.3
0.7
Corporate and Other
(5.1
)
(7.3
)
(5.9
)
(17.7
)
(15.8
)
Adjusted EBITDA
$43.2
$60.6
$83.3
$182.8
$287.9
(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
September 30, 2019
(unaudited)
(millions of dollars, except per
share information)
LIQUIDITY MEASURES:
Nine Months Ended
September 30,
September 30,
2019
2018
Cash Provided by Operating
Activities
$164.2
$261.1
Working capital and other balance sheet
changes
(3.3
)
5.0
Capital expenditures (a)
(45.3
)
(44.1
)
Cash Available for Distribution
(b)
$115.6
$222.0
Net Income
$50.2
$112.7
Interest, net and miscellaneous income
21.2
22.5
Income tax expense
10.2
22.4
Depreciation, depletion and
amortization
91.9
115.7
Non-cash cost of land and improved
development
10.0
17.1
Non-operating income
(0.8
)
(2.6
)
Adjusted EBITDA (c)
$182.8
$287.9
Cash interest paid (d)
(20.6
)
(20.9
)
Cash taxes paid
(1.4
)
(0.8
)
Capital expenditures (a)
(45.3
)
(44.1
)
Cash Available for Distribution
(b)
$115.6
$222.0
Cash Available for Distribution
(b)
$115.6
$222.0
Real estate development investments
(3.3
)
(6.9
)
Cash Available for Distribution after
real estate development investments
$112.3
$215.1
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
September 30, 2019
Operating income (loss)
$9.5
($3.6
)
$10.1
$0.4
—
($5.4
)
$11.0
Depreciation, depletion and
amortization
13.0
6.3
7.6
0.7
—
0.3
27.8
Non-cash cost of land and improved
development
—
—
—
4.3
—
—
4.3
Adjusted EBITDA
$22.5
$2.7
$17.7
$5.4
—
($5.1
)
$43.2
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
September 30, 2018
Operating income
$9.2
$1.9
$16.4
$24.7
$0.3
($6.2
)
$46.4
Depreciation, depletion and
amortization
13.7
7.8
7.5
5.5
—
0.3
34.8
Non-cash cost of land and improved
development
—
—
—
2.1
—
—
2.1
Adjusted EBITDA
$22.9
$9.7
$24.0
$32.3
$0.3
($5.9
)
$83.3
F
OPERATING INCOME (LOSS) AND ADJUSTED
EBITDA (c):
Nine Months Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Corporate and Other
Total
September 30, 2019
Operating income (loss)
$45.8
($11.1
)
$38.6
$25.9
$0.3
($18.6
)
$80.9
Depreciation, depletion and
amortization
45.6
19.2
21.1
5.2
—
0.9
91.9
Non-cash cost of land and improved
development
—
—
—
10.0
—
—
10.0
Adjusted EBITDA
$91.4
$8.0
$59.7
$41.1
$0.3
($17.7
)
$182.8
September 30, 2018
Operating income
$37.1
$12.2
$50.1
$71.6
$0.7
($16.6
)
$155.1
Depreciation, depletion and
amortization
44.6
26.7
21.3
22.3
—
0.9
115.7
Non-cash cost of land and improved
development
—
—
—
17.1
—
—
17.1
Adjusted EBITDA
$81.7
$38.9
$71.4
$111.0
$0.7
($15.8
)
$287.9
(a)
Capital expenditures exclude
timberland acquisitions of $81.9 million and $39.0 million during
the nine months ended September 30, 2019 and September 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 $4.1 million
for the nine months ended September 30, 2019 and September 30,
2018, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191030005978/en/
Investors/Media Mark McHugh 904-357-9100
investorrelations@rayonier.com
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