- Fourth quarter net income attributable to Rayonier of $126.9
million ($0.85 per share) on revenues of $467.4 million
- Fourth quarter pro forma net income of $25.4 million ($0.17 per
share) on pro forma revenues of $225.2 million
- Fourth quarter operating income of $145.2 million, pro forma
operating income of $40.1 million, and Adjusted EBITDA of $93.7
million
- Full-year net income attributable to Rayonier of $173.5 million
($1.17 per share) on revenues of $1.1 billion
- Full-year pro forma net income of $53.5 million ($0.36 per
share) on pro forma revenues of $814.7 million
- Full-year operating income of $211.3 million, pro forma
operating income of $108.5 million, and Adjusted EBITDA of $296.5
million
- Full-year cash provided by operations of $298.4 million and
cash available for distribution (CAD) of $163.9 million
Rayonier Inc. (NYSE:RYN) today reported fourth quarter net
income attributable to Rayonier of $126.9 million, or $0.85 per
share, on revenues of $467.4 million. This compares to net income
attributable to Rayonier of $33.1 million, or $0.22 per share, on
revenues of $245.4 million in the prior year quarter.
The fourth quarter results included $105.1 million of income
from Large Dispositions,1 a $2.0 million non-cash pension
settlement charge,2 and a $0.2 million net recovery associated with
legal settlements.3 Excluding these items and adjusting for pro
forma net income adjustments attributable to noncontrolling
interests,4 fourth quarter pro forma net income5 was $25.4 million,
or $0.17 per share, on pro forma revenues5 of $225.2 million. This
compares to pro forma net income5 of $16.5 million, or $0.11 per
share, on pro forma revenues5 of $214.9 million in the prior year
period.
The following table summarizes the current quarter and
comparable prior year period results:
Three Months Ended
(millions of dollars, except earnings per
share (EPS))
December 31, 2023
December 31, 2022
$
EPS
$
EPS
Revenues
$467.4
$245.4
Large Dispositions1
(242.2
)
(30.5
)
Pro forma revenues5
$225.2
$214.9
Net income attributable to Rayonier
$126.9
$0.85
$33.1
$0.22
Large Dispositions1
(105.1
)
(0.70
)
(16.6
)
(0.11
)
Pension settlement charge2
2.0
0.01
—
—
Net recovery on legal settlements3
(0.2
)
—
—
—
Timber write-offs resulting from casualty
events6
—
—
(0.4
)
—
Pro forma net income adjustments
attributable to noncontrolling interests4
1.7
—
0.4
—
Pro forma net income5
$25.4
$0.17
$16.5
$0.11
Fourth quarter operating income was $145.2 million versus $44.1
million in the prior year period. Fourth quarter operating income
included $105.1 million of income from Large Dispositions.1
Excluding this item, pro forma operating income5 was $40.1 million.
This compares to pro forma operating income5 of $27.2 million in
the prior year period. Fourth quarter Adjusted EBITDA5 was $93.7
million versus $68.4 million in the prior year period.
The following table summarizes operating income (loss), pro
forma operating income (loss),5 and Adjusted EBITDA5 for the
current quarter and comparable prior year period:
Three Months Ended December
31,
Operating Income(Loss)
Pro forma Operating Income
(Loss)5
Adjusted EBITDA5
(millions of dollars)
2023
2022
2023
2022
2023
2022
Southern Timber
$13.7
$19.7
$13.7
$19.7
$32.0
$33.2
Pacific Northwest Timber
(2.5
)
3.5
(2.5
)
3.1
6.2
15.5
New Zealand Timber
6.8
8.0
6.8
8.0
12.1
13.7
Real Estate
137.9
21.5
32.8
4.9
53.5
14.2
Trading
0.1
0.3
0.1
0.3
0.1
0.3
Corporate and Other
(10.8
)
(8.9
)
(10.8
)
(8.9
)
(10.3
)
(8.6
)
Total
$145.2
$44.1
$40.1
$27.2
$93.7
$68.4
Overview of Full-Year Results: Full-year 2023 net income
attributable to Rayonier was $173.5 million, or $1.17 per share, on
revenues of $1.1 billion. This compares to net income attributable
to Rayonier of $107.1 million, or $0.73 per share, on revenues of
$909.1 million in the prior year.
Full-year results included $105.1 million of income from Large
Dispositions,1 $20.7 million of net recoveries on legal
settlements,3 $2.3 million of timber write-offs resulting from a
casualty event,6 and a $2.0 million non-cash pension settlement
charge.2 Excluding these items and adjusting for pro forma net
income adjustments attributable to noncontrolling interests,4
full-year pro forma net income5 was $53.5 million, or $0.36 per
share, on pro forma revenues5 of $814.7 million. This compares to
pro forma net income5 of $91.5 million, or $0.62 per share, on pro
forma revenues5 of $878.6 million in the prior year period.
The following table summarizes the full-year and comparable
prior year period results:
Year Ended
(millions of dollars, except earnings per
share (EPS))
December 31, 2023
December 31, 2022
$
EPS
$
EPS
Revenues
$1,056.9
$909.1
Large Dispositions1
(242.2
)
(30.5
)
Pro forma revenues5
$814.7
$878.6
Net income attributable to Rayonier
$173.5
$1.17
$107.1
$0.73
Large Dispositions1
(105.1
)
(0.70
)
(16.6
)
(0.11
)
Net recovery on legal settlements3
(20.7
)
(0.14
)
—
—
Pension settlement charge2
2.0
0.01
—
—
Timber write-offs resulting from casualty
events6
2.3
0.02
0.7
—
Pro forma net income adjustments
attributable to noncontrolling interests4
1.5
—
0.3
—
Pro forma net income5
$53.5
$0.36
$91.5
$0.62
Full-year operating income was $211.3 million versus $165.8
million in the prior year. Full-year operating income included
$105.1 million of income from Large Dispositions1 and a $2.3
million timber write-off resulting from a casualty event.6
Excluding these items, full-year pro forma operating income5 was
$108.5 million. This compares to pro forma operating income5 of
$138.5 million in the prior year. Full-year Adjusted EBITDA5 was
$296.5 million versus $314.2 million in the prior year.
The following table summarizes operating income, pro forma
operating income (loss)5 and Adjusted EBITDA5 for the full-year and
comparable prior year period:
Year Ended December
31,
Operating Income
Pro forma Operating Income
(Loss)5
Adjusted EBITDA5
(millions of dollars)
2023
2022
2023
2022
2023
2022
Southern Timber
$76.3
$96.6
$76.3
$96.6
$156.2
$156.9
Pacific Northwest Timber
(9.0
)
15.2
(9.0
)
15.9
27.9
63.9
New Zealand Timber
26.0
30.6
28.3
30.6
50.0
54.5
Real Estate
156.6
58.5
51.5
30.4
99.3
72.7
Trading
0.5
0.4
0.5
0.4
0.5
0.4
Corporate and Other
(39.1
)
(35.5
)
(39.1
)
(35.5
)
(37.4
)
(34.2
)
Total
$211.3
$165.8
$108.5
$138.5
$296.5
$314.2
Full-year cash provided by operating activities was $298.4
million versus $269.2 million in the prior year. Full-year cash
available for distribution (CAD)5 was $163.9 million, which
decreased $27.6 million versus the prior year due to lower Adjusted
EBITDA5 ($17.7 million), higher cash interest paid (net) ($13.6
million), and higher capital expenditures ($6.6 million), partially
offset by lower cash taxes paid ($10.3 million).
“We are pleased with our overall financial performance for the
full-year 2023, particularly in light of the challenging and
uncertain market conditions that we faced throughout the year,”
said David Nunes, CEO. “Full-year 2023 Adjusted EBITDA of $296.5
million declined 6% versus the prior year, as lower results in our
Timber segments were largely offset by a significantly higher
contribution from our Real Estate segment. Our Southern Timber
segment Adjusted EBITDA was relatively flat, as the segment
benefited from recent acquisitions, which contributed to increased
volumes as well as the operational flexibility to target more
resilient sawlog markets. Additionally, non-timber income generated
by the Southern Timber segment increased $9.0 million, or 35%,
relative to the prior year, driven in part by increased revenue
from our burgeoning land-based solutions business. In our Pacific
Northwest Timber segment, we chose to defer roughly 150,000 tons of
planned harvests in response to soft market conditions, which
contributed to the significant decrease in Adjusted EBITDA versus
the prior year. In our New Zealand Timber segment, Adjusted EBITDA
declined modestly versus the prior year, as reduced volumes and
lower log prices were largely offset by higher carbon credit sales
and significantly lower export shipping costs. Finally, in our Real
Estate segment, we capitalized on strong demand in both the rural
HBU market and our improved development projects, generating
Adjusted EBITDA well above our initial expectations entering the
year. Overall, I’m proud of how our team was able to navigate an
ever-evolving market environment to deliver solid full-year
financial performance.”
“During the fourth quarter, we achieved total Adjusted EBITDA of
$93.7 million, an increase of 37% versus the prior year, as
exceptionally strong results in our Real Estate segment more than
offset weaker results across our Timber segments. Specifically,
Real Estate segment Adjusted EBITDA was $39.3 million above the
prior year period, as we closed on significant transaction volume
in the quarter. In our Southern Timber segment, Adjusted EBITDA
declined 4% versus the prior year quarter, as a 12% decrease in
weighted-average net stumpage realizations was largely offset by a
17% increase in harvest volumes driven by our late-2022
acquisitions. In our Pacific Northwest Timber segment, Adjusted
EBITDA declined 60% versus the prior year quarter, driven by a 12%
decrease in weighted-average log prices and 25% lower harvest
volumes, as we deferred harvest in response to soft market
conditions. In New Zealand, Adjusted EBITDA declined 11% versus the
prior year quarter due to lower carbon credit sales, a 9% decrease
in export sawtimber prices and 8% lower sales volumes, partially
offset by a significant reduction in port and freight costs.”
“As previously disclosed, during the fourth quarter we completed
a $242 million disposition of 55,000 acres of timberland in Oregon.
We used $150 million of the proceeds to pay down our only floating
rate debt and $30 million for a special dividend paid on January
12, 2024. The successful closing of this asset sale is an important
step toward completing the asset disposition and capital structure
realignment plan that we announced on November 1st, targeting $1
billion of select asset sales over 18 months. We are pleased with
our progress to date in identifying and bringing additional
timberland assets to market as we execute on our plan to capture
the disparity between public and private timberland values and
reduce leverage in a higher interest rate environment.”
“As we move into 2024, we are cautiously optimistic that timber
market conditions have generally stabilized across our portfolio,
and our team is energized around our growing pipeline of land-based
solutions opportunities and the continued strong demand for both
rural and development HBU properties. We continue to believe that
our improved development projects are uniquely well positioned to
benefit from favorable migration trends and healthy regional demand
for both residential and commercial properties. Notably, we
recently received entitlement approval for the next 15,000-acre
phase of Wildlight, which will provide the project with a
substantial runway for future growth and value creation.”
Southern Timber
Fourth quarter sales of $60.0 million increased $3.4 million, or
6%, versus the prior year period. Harvest volumes increased 17% to
1.60 million tons versus 1.37 million tons in the prior year
period, primarily driven by incremental volume from acquisitions
completed in the fourth quarter of 2022. Average pine sawtimber
stumpage realizations decreased 15% to $28.84 per ton versus $34.00
per ton in the prior year period, primarily due to softer sawmill
demand and decreased competition from pulp mills for chip-n-saw
volume. Average pine pulpwood stumpage realizations decreased 16%
to $17.68 per ton versus $20.95 per ton in the prior year period
due to weaker end-market demand. Non-timber sales of $8.4 million
increased 21% versus the prior year period, driven primarily by
growth in our land-based solutions business and increased revenue
from hunting and recreational licenses. Overall, weighted-average
stumpage realizations (including hardwood) decreased 12% to $22.63
per ton versus $25.74 per ton in the prior year period. Operating
income of $13.7 million decreased $6.0 million versus the prior
year period due to lower net stumpage realizations ($5.0 million),
costs associated with long-term timber lease expirations ($3.0
million), higher overhead and other costs ($0.6 million), and
higher depletion rates ($2.6 million), partially offset by higher
volumes ($3.8 million) and higher non-timber income ($1.4
million).
Fourth quarter Adjusted EBITDA5 of $32.0 million was 4%, or $1.2
million, below the prior year period.
Pacific Northwest Timber
Fourth quarter sales of $28.1 million decreased $14.3 million,
or 34%, versus the prior year period. Harvest volumes decreased 25%
to 298,000 tons versus 397,000 tons in the prior year period, as
some planned harvests were deferred in response to soft market
conditions. Average delivered prices for domestic sawtimber
decreased 10% to $93.91 per ton versus $104.44 per ton in the prior
year period due to weaker domestic and export market demand.
Average delivered pulpwood prices decreased 56% to $28.91 per ton
versus $66.26 per ton in the prior year period, as supply
constraints and strong end-market demand significantly benefited
the prior year period. An operating loss of $2.5 million versus
operating income of $3.5 million in the prior year period was
driven by lower net stumpage realizations ($2.5 million), higher
costs ($2.4 million), lower volumes ($1.5 million), and the prior
year period adjustment to a timber write-off resulting from a
casualty event6 ($0.4 million), partially offset by lower depletion
rates ($0.7 million) and higher non-timber income ($0.1
million).
Fourth quarter Adjusted EBITDA5 of $6.2 million was 60%, or $9.4
million, below the prior year period.
New Zealand Timber
Fourth quarter sales of $60.0 million decreased $11.3 million,
or 16%, versus the prior year period. Sales volumes decreased 8% to
632,000 tons versus 686,000 tons in the prior year period, due in
part to the timing of export shipments. Average delivered prices
for export sawtimber decreased 9% to $100.73 per ton versus $111.30
per ton in the prior year period, primarily due to weaker
construction demand in China. The decline in export sawtimber
prices was partially offset by significantly lower port and freight
costs, resulting in relatively flat net stumpage realizations
versus the prior year period. Average delivered prices for domestic
sawtimber declined 3% to $63.03 per ton versus $64.79 per ton in
the prior year period. The decrease in domestic sawtimber prices
was primarily driven by weaker domestic demand and decreased
competition from export markets, partially offset by the increase
in the NZ$/US$ exchange rate (US$0.60 per NZ$1.00 versus US$0.58
per NZ$1.00). Excluding the impact of foreign exchange rates,
domestic sawtimber prices decreased 5% versus the prior year
period. Despite the decline in delivered prices for domestic
sawtimber, weighted-average net stumpage realizations on domestic
volume (including pulpwood) improved versus the prior year period
due to a favorable grade mix. Fourth quarter non-timber / carbon
credit sales totaled $7.7 million versus $9.1 million in the prior
year period. Operating income of $6.8 million decreased $1.2
million versus the prior year period primarily due to lower carbon
credit income ($1.9 million), higher costs ($1.2 million), and
lower volumes ($0.8 million), partially offset by favorable foreign
exchange impacts ($1.7 million) and higher overall net stumpage
realizations ($1.0 million).
Fourth quarter Adjusted EBITDA5 of $12.1 million was 11%, or
$1.5 million, below the prior year period.
Real Estate
Fourth quarter sales of $310.5 million increased $253.5 million
versus the prior year period, while operating income of $137.9
million increased $116.3 million versus the prior year period.
Fourth quarter sales and operating income included $242.2 million
and $105.1 million, respectively, from Large Dispositions.1
Excluding Large Dispositions,1 pro forma sales5 were $68.3 million
and pro forma operating income5 was $32.8 million. Pro forma sales5
and pro forma operating income5 increased versus the prior year
period due to significantly higher acres sold (20,488 acres sold
versus 2,090 acres sold in the prior year period), partially offset
by lower weighted-average prices ($3,320 per acre versus $13,747
per acre in the prior year period), driven by a higher mix of
Improved Development activity in the prior year period.
Improved Development sales of $10.6 million included $9.0
million from the Wildlight development project north of
Jacksonville, Florida and $1.6 million from the Heartwood
development project south of Savannah, Georgia. Sales in Wildlight
consisted of a 58-acre industrial-use parcel for $5.8 million
($101,000 per acre) and an 11-acre parcel for a church site for
$3.1 million ($299,000 per acre). Sales in Heartwood consisted of
21 finished residential lots for $0.9 million (a base price before
true-up of $44,000 per lot or $280,000 per acre) and a 1.8-acre
parcel for a daycare facility for $0.6 million ($363,000 per acre).
This compares to Improved Development sales of $16.6 million in the
prior year period.
Rural sales of $57.1 million consisted of 20,215 acres at an
average price of $2,824 per acre, including a 16,123-acre
transaction consisting of scattered parcels with a relatively high
ratio of non-plantable lands (i.e., 48%) in Alabama and Georgia for
$36.8 million ($2,280 per acre). This compares to prior year period
sales of $12.2 million, which consisted of 1,961 acres at an
average price of $6,196 per acre.
Timberland & Non-Strategic sales of $0.4 million consisted
of a 200-acre transaction for $2,000 per acre. There were no
Timberland & Non-Strategic sales in the prior year period.
Fourth quarter Adjusted EBITDA5 of $53.5 million increased $39.3
million versus the prior year period.
Trading
Fourth quarter sales of $8.9 million decreased $9.3 million
versus the prior year period due to lower volumes and prices. Sales
volumes decreased 46% to 77,000 tons versus 143,000 tons in the
prior year period. The Trading segment generated operating income
of $0.1 million versus $0.3 million in the prior year period.
Other Items
Fourth quarter corporate and other operating expenses of $10.8
million increased $1.9 million versus the prior year period,
primarily due to higher stock compensation and benefits expenses
and professional services fees. Compensation and benefits expenses
were elevated versus the prior year quarter primarily due to the
acceleration of equity compensation expense for retirement-eligible
employees.
Fourth quarter interest expense of $11.6 million increased $1.9
million versus the prior year period, primarily due to higher
average outstanding debt and a higher weighted-average interest
rate.
Fourth quarter income tax expense of $3.4 million increased $2.0
million versus the prior year period, primarily due to a higher
percentage of full-year income generated in the fourth quarter as
compared to the prior year period. The New Zealand subsidiary is
the primary driver of income tax expense.
Outlook
In 2024, we expect to achieve net income attributable to
Rayonier of $60 to $80 million, EPS of $0.40 to $0.54, and Adjusted
EBITDA of $290 to $325 million. Our full-year guidance excludes the
potential impact of any additional asset sales as part of the $1
billion disposition target that we announced in November 2023.
In our Southern Timber segment, we expect to achieve full-year
harvest volumes of 7.1 to 7.3 million tons. We anticipate a modest
decrease in harvest volumes versus the prior year as logging
conditions normalize following a period of relatively dry weather.
Further, we expect that regional pine stumpage realizations will
improve modestly versus the prior year based on improving end
market demand coupled with an anticipated increase in rainfall from
the El Niño weather pattern. However, we expect these pricing gains
will be largely offset by a less favorable geographic mix. Lastly,
we expect higher non-timber income for full-year 2024 as compared
to full-year 2023, primarily driven by additional income from
land-based solutions. Overall, we expect full-year Adjusted EBITDA
of $153 to $163 million, generally in line with full-year 2023
results.
In our Pacific Northwest Timber segment, we expect to achieve
full-year harvest volumes of approximately 1.4 million tons. The
anticipated increase relative to the prior year assumes a return to
a more normalized level of demand and harvest activity, partially
offset by a reduction in our Pacific Northwest sustainable yield
resulting from the recent Oregon disposition. Further, while we
anticipate some demand improvement as the year progresses, we
expect that full-year weighted average log pricing will remain
modestly below the pricing achieved in 2023 due in part to a less
favorable species mix. Overall, we expect full-year Adjusted EBITDA
of $25 to $31 million, generally in line with full-year 2023
results.
In our New Zealand Timber segment, we expect full-year harvest
volumes of 2.4 to 2.5 million tons. We expect that full-year
domestic and export sawtimber pricing will improve modestly
relative to the full-year pricing achieved in 2023 as end-markets
continue to recover. We further anticipate a modest increase in
carbon credit sales in 2024 as pricing has remained strong
following the significant market volatility experienced in the
first half of 2023. Overall, we expect full-year Adjusted EBITDA of
$57 to $65 million, a meaningful increase versus full-year 2023
results.
Turning to our Real Estate segment, we are encouraged by both
the continued strong demand for our rural properties as well as the
continued momentum across our improved development projects as we
enter 2024. We expect another strong year in both our rural land
sales program as well as our improved development projects based on
our current pipeline of transactions. However, similar to 2023, we
anticipate very light closing activity (and a correspondingly low
Adjusted EBITDA contribution) in the first quarter, followed by a
significant pickup in activity in the second quarter. Overall, we
expect full-year Adjusted EBITDA of $92 to $104 million, generally
in line with full-year 2023 results.
Conference Call
A conference call and live audio webcast will be held on
Thursday, February 1, 2024 at 10:00 AM (ET) 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
888-604-9366 (domestic) or 517-308-9338 (international), passcode:
RAYONIER. A replay of the conference call will be available one
hour following the call until Friday, March 1, 2024, by dialing
800-876-4058 (domestic) or 203-369-3575 (international), passcode:
3091.
Complimentary copies of Rayonier press releases and other
financial documents are also available by calling (904)
357-9100.
1"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.
2"Pension settlement charge"
reflects the loss recognized upon remeasurement of the Company’s
defined benefit plan due to one-time lump sum payments made to
participants during the fourth quarter of 2023.
3"Net recovery on legal
settlements" reflects net proceeds received from litigation
regarding insurance claims.
4"Pro forma net income adjustments
attributable to noncontrolling interests" are the proportionate
share of pro forma items that are attributable to noncontrolling
interests.
5"Pro 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 exhibits.
6"Timber write-offs and adjustments
resulting from casualty events" include the write-off and
adjustments of merchantable and pre-merchantable timber volume
damaged by a casualty event that cannot be salvaged.
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, 2023, Rayonier owned or leased under long-term
agreements approximately 2.7 million acres of timberlands located
in the U.S. South (1.85 million acres), U.S. Pacific Northwest
(418,000 acres) and New Zealand (421,000 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, 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, including any downturn
in the housing market; entry of new competitors into our markets;
changes in global economic conditions and geopolitical tensions,
including the war in Ukraine and escalating tensions between China
and Taiwan as well as in the Middle East; business disruptions
arising from public health crises and outbreaks of communicable
diseases; 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, trucking and ocean freight services; the geographic
concentration of a significant portion of our timberland; our
ability to identify, finance and complete timberland acquisitions
and/or to complete dispositions; changes in environmental laws and
regulations regarding timber harvesting, delineation of wetlands,
endangered species and development of real estate generally, 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; the lengthy, uncertain and
costly process associated with the ownership, entitlement and
development of real estate, especially in Florida and Washington,
including changes in law, policy and political factors beyond our
control; the availability of financing for real estate development
and mortgage loans; 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; and 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.
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 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
SUBSIDIARIES
CONDENSED STATEMENTS OF
CONSOLIDATED INCOME
December 31, 2023
(unaudited)
(millions of dollars, except per
share information)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
SALES
$467.4
$201.6
$245.4
$1,056.9
$909.1
Costs and Expenses
Cost of sales
(299.4
)
(145.6
)
(180.9
)
(762.6
)
(688.3
)
Selling and general expenses
(20.1
)
(18.9
)
(15.7
)
(74.8
)
(64.7
)
Other operating (expense) income, net
(2.7
)
(1.7
)
(4.7
)
(8.2
)
9.7
OPERATING INCOME
145.2
35.4
44.1
211.3
165.8
Interest expense, net
(11.6
)
(12.6
)
(9.7
)
(48.3
)
(36.2
)
Interest and other miscellaneous (expense)
income, net
(1.0
)
0.5
1.6
20.6
2.6
INCOME BEFORE INCOME TAXES
132.6
23.3
36.0
183.6
132.2
Income tax expense
(3.4
)
(0.6
)
(1.4
)
(5.1
)
(9.4
)
NET INCOME
129.2
22.7
34.6
178.5
122.8
Less: Net income attributable to
noncontrolling interests in the operating partnership
(2.1
)
(0.3
)
(0.7
)
(2.9
)
(2.4
)
Less: Net income attributable to
noncontrolling interests in consolidated affiliates
(0.2
)
(3.2
)
(0.8
)
(2.1
)
(13.3
)
NET INCOME ATTRIBUTABLE TO RAYONIER
INC.
$126.9
$19.2
$33.1
$173.5
$107.1
EARNINGS PER COMMON SHARE
Basic earnings per share attributable to
Rayonier Inc.
$0.86
$0.13
$0.23
$1.17
$0.73
Diluted earnings per share attributable to
Rayonier Inc.
$0.85
$0.13
$0.22
$1.17
$0.73
Pro forma net income per share (a)
$0.17
$0.13
$0.11
$0.36
$0.62
Weighted Average Common Shares used for
determining
Basic EPS
148,296,110
148,274,209
146,765,131
148,046,673
146,209,847
Diluted EPS (b)
151,173,460
151,036,253
150,572,519
151,067,195
150,152,953
(a)
Pro forma net income per share is a
non-GAAP measure. See Schedule F for definition and reconciliation
to the nearest GAAP measure.
(b)
Diluted earnings per share is calculated
based on the weighted average number of shares of common stock
outstanding combined with the incremental weighted average number
of shares that would have been outstanding assuming all potentially
dilutive securities (including Redeemable Operating Partnership
Units) were converted into shares of common stock at the earliest
date possible. As of December 31, 2023, there were 148,299,117
common shares and 2,443,898 Redeemable Operating Partnership Units
outstanding.
A
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
December 31, 2023
(unaudited)
(millions of dollars)
December 31,
December 31,
2023
2022
Assets
Cash and cash equivalents
$207.7
$114.3
Assets held for sale
9.9
0.7
Other current assets
99.3
87.3
Timber and timberlands, net of depletion
and amortization
3,004.3
3,230.9
Higher and better use timberlands and real
estate development investments
105.6
115.1
Property, plant and equipment
46.1
44.7
Less - accumulated depreciation
(19.1
)
(17.5
)
Net property, plant and equipment
27.0
27.2
Restricted cash
0.7
1.2
Right-of-use assets
95.5
97.2
Other assets
97.6
115.5
$3,647.6
$3,789.4
Liabilities, Noncontrolling Interests
in the Operating Partnership and Shareholders’ Equity
Other current liabilities
132.0
95.3
Long-term debt
1,365.8
1,514.7
Long-term lease liability
87.7
88.8
Other non-current liabilities
102.8
104.1
Noncontrolling interests in the operating
partnership
81.7
105.8
Total Rayonier Inc. shareholders’
equity
1,860.5
1,865.4
Noncontrolling interests in consolidated
affiliates
17.1
15.3
Total shareholders’ equity
1,877.6
1,880.7
$3,647.6
$3,789.4
B
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
December 31, 2023
(unaudited)
(millions of dollars, except
share information)
Common Shares
Retained
Earnings
Accumulated Other
Comprehensive Income (Loss)
Noncontrolling
Interests in Consolidated Affiliates
Shareholders’
Equity
Shares
Amount
Balance, December 31, 2021
145,372,961
$1,389.1
$402.3
($19.6
)
$43.8
$1,815.6
Issuance of shares under the
“at-the-market” (ATM) equity offering program, net of commissions
and offering costs of $1.1 million
1,579,228
59.3
—
—
—
59.3
Net income
—
—
109.5
—
13.3
122.8
Net income attributable to noncontrolling
interests in the operating partnership
—
—
(2.4
)
—
—
(2.4
)
Dividends ($1.125 per share)
—
—
(166.0
)
—
—
(166.0
)
Issuance of shares under incentive stock
plans
321,337
2.5
—
—
—
2.5
Stock-based compensation
—
12.4
—
—
—
12.4
Adjustment of noncontrolling interests in
the operating partnership
—
—
23.2
—
—
23.2
Other (a)
9,105
(0.3
)
—
55.4
(41.8
)
13.3
Balance, December 31, 2022
147,282,631
$1,463.0
$366.6
$35.8
$15.3
$1,880.7
Issuance of shares under the
“at-the-market” (ATM) equity offering program, net of commissions
and offering costs
400
(0.1
)
—
—
—
(0.1
)
Net income
—
—
176.4
—
2.1
178.5
Net income attributable to noncontrolling
interests in the operating partnership
—
—
(2.9
)
—
—
(2.9
)
Dividends ($1.340 per share) (b)
—
—
(199.5
)
—
—
(199.5
)
Issuance of shares under incentive stock
plans
380,080
0.1
—
—
—
0.1
Stock-based compensation
—
14.0
—
—
—
14.0
Adjustment of noncontrolling interests in
the operating partnership
—
—
(2.4
)
—
—
(2.4
)
Other (a)
636,006
20.7
—
(11.2
)
(0.3
)
9.2
Balance, December 31, 2023
148,299,117
$1,497.7
$338.2
$24.6
$17.1
$1,877.6
(a)
Primarily includes shares purchased from
employees in non-open market transactions to pay withholding taxes
associated with the vesting of shares granted under the Company’s
Incentive Stock Plan, amortization of pension and post-retirement
plan liabilities, foreign currency translation adjustments,
mark-to-market adjustments of qualifying cash flow hedges,
distributions to noncontrolling interests in consolidated
affiliates and the allocation of other comprehensive income to
noncontrolling interests in the operating partnership. The year
ended December 31, 2023 and December 31, 2022 also includes the
redemption of 764,929 and 106,914 Redeemable Operating Partnership
Units, respectively, for an equal number of Rayonier Inc. common
shares.
(b)
Includes a one-time special cash dividend
of $0.20 per common share. The dividend was payable January 12,
2024, to shareholders of record on December 29, 2023.
C
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
December 31, 2023
(unaudited)
(millions of dollars)
Year Ended December 31,
2023
2022
Cash provided by operating
activities:
Net income
$178.5
$122.8
Depreciation, depletion and
amortization
158.2
147.3
Non-cash cost of land and improved
development
29.8
28.4
Timber write-offs resulting from casualty
events
2.3
0.7
Gain on large dispositions of
timberlands
(105.1
)
(16.6
)
Stock-based incentive compensation
expense
14.0
12.4
Deferred income taxes
0.3
(5.4
)
Other items to reconcile net income to
cash provided by operating activities
15.2
1.8
Changes in working capital and other
assets and liabilities
5.2
(22.2
)
298.4
269.2
Cash provided by (used for) investing
activities:
Capital expenditures
(81.4
)
(74.8
)
Real estate development investments
(23.1
)
(13.7
)
Purchase of timberlands
(14.1
)
(458.5
)
Net proceeds from large dispositions of
timberlands
239.9
29.5
Other
2.8
1.1
124.1
(516.4
)
Cash used for financing
activities:
Net (decrease) increase in debt
(150.0
)
125.0
Dividends paid
(170.0
)
(165.7
)
Distributions to noncontrolling interests
in the operating partnership
(3.0
)
(3.7
)
Proceeds from the issuance of common
shares under incentive stock plan
0.1
2.6
Proceeds from the issuance of common
shares under the “at-the-market” (ATM) equity offering program, net
of commissions and offering costs
(0.1
)
61.6
Distributions to noncontrolling interests
in consolidated affiliates
(1.7
)
(19.4
)
Other
(4.2
)
(5.0
)
(328.9
)
(4.6
)
Effect of exchange rate changes on cash
and restricted cash
(0.6
)
(1.9
)
Cash, cash equivalents and restricted
cash:
Change in cash, cash equivalents and
restricted cash
93.0
(253.7
)
Balance, beginning of year
115.4
369.1
Balance, end of period
$208.4
$115.4
D
RAYONIER INC. AND
SUBSIDIARIES
BUSINESS SEGMENT SALES, PRO
FORMA SALES, OPERATING INCOME,
PRO FORMA OPERATING INCOME AND
ADJUSTED EBITDA
December 31, 2023
(unaudited)
(millions of dollars)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Sales
Southern Timber
$60.0
$64.0
$56.6
$264.1
$264.2
Pacific Northwest Timber
28.1
29.3
42.4
124.1
162.2
New Zealand Timber
60.0
70.4
71.4
235.5
274.1
Real Estate
310.5
31.2
57.0
390.0
138.0
Trading
8.9
6.8
18.2
43.7
71.0
Intersegment Eliminations
(0.1
)
(0.1
)
(0.2
)
(0.5
)
(0.4
)
Sales
$467.4
$201.6
$245.4
$1,056.9
$909.1
Pro forma sales (a)
Southern Timber
$60.0
$64.0
$56.6
$264.1
$264.2
Pacific Northwest Timber
28.1
29.3
42.4
124.1
162.2
New Zealand Timber
60.0
70.4
71.4
235.5
274.1
Real Estate
68.3
31.2
26.5
147.8
107.5
Trading
8.9
6.8
18.2
43.7
71.0
Intersegment Eliminations
(0.1
)
(0.1
)
(0.2
)
(0.5
)
(0.4
)
Pro forma sales
$225.2
$201.6
$214.9
$814.7
$878.6
Operating income (loss)
Southern Timber
$13.7
$18.6
$19.7
$76.3
$96.6
Pacific Northwest Timber
(2.5
)
(0.6
)
3.5
(9.0
)
15.2
New Zealand Timber
6.8
17.6
8.0
26.0
30.6
Real Estate
137.9
9.2
21.5
156.6
58.5
Trading
0.1
(0.1
)
0.3
0.5
0.4
Corporate and Other
(10.8
)
(9.4
)
(8.9
)
(39.1
)
(35.5
)
Operating income
$145.2
$35.4
$44.1
$211.3
$165.8
Pro forma operating income (loss)
(a)
Southern Timber
$13.7
$18.6
$19.7
$76.3
$96.6
Pacific Northwest Timber
(2.5
)
(0.6
)
3.1
(9.0
)
15.9
New Zealand Timber
6.8
17.6
8.0
28.3
30.6
Real Estate
32.8
9.2
4.9
51.5
30.4
Trading
0.1
(0.1
)
0.3
0.5
0.4
Corporate and Other
(10.8
)
(9.4
)
(8.9
)
(39.1
)
(35.5
)
Pro forma operating income
$40.1
$35.4
$27.2
$108.5
$138.5
Adjusted EBITDA (a)
Southern Timber
$32.0
$37.8
$33.2
$156.2
$156.9
Pacific Northwest Timber
6.2
7.8
15.5
27.9
63.9
New Zealand Timber
12.1
23.5
13.7
50.0
54.5
Real Estate
53.5
18.9
14.2
99.3
72.7
Trading
0.1
(0.1
)
0.3
0.5
0.4
Corporate and Other
(10.3
)
(9.0
)
(8.6
)
(37.4
)
(34.2
)
Adjusted EBITDA
$93.7
$78.9
$68.4
$296.5
$314.2
(a)
Pro forma sales, Pro forma operating
income (loss) and Adjusted EBITDA are non-GAAP measures. See
Schedule F for definitions and reconciliations.
E
RAYONIER INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
MEASURES
December 31, 2023
(unaudited)
(millions of dollars, except per
share information)
LIQUIDITY MEASURES:
Year Ended
December 31,
December 31,
2023
2022
Cash Provided by Operating
Activities
$298.4
$269.2
Working capital and other balance sheet
changes
(32.4
)
(2.9
)
Net recovery on legal settlements (a)
(20.7
)
—
Capital expenditures (b)
(81.4
)
(74.8
)
Cash Available for Distribution
(c)
$163.9
$191.5
Net Income
$178.5
$122.8
Interest, net and miscellaneous income
45.9
33.2
Income tax expense
5.1
9.4
Depreciation, depletion and
amortization
158.2
147.3
Non-cash cost of land and improved
development
29.8
28.4
Non-operating (income) expense (d)
(18.3
)
0.4
Timber write-offs resulting from casualty
events (e)
2.3
0.7
Gain associated with the multi-family
apartment complex sale attributable to NCI (f)
—
(11.5
)
Large Dispositions (g)
(105.1
)
(16.6
)
Adjusted EBITDA (h)
$296.5
$314.2
Cash interest paid (net) (i)
(46.3
)
(32.7
)
Cash taxes paid
(4.8
)
(15.1
)
Capital expenditures (b)
(81.4
)
(74.8
)
Cash Available for Distribution
(c)
$163.9
$191.5
Cash Available for Distribution
(c)
$163.9
$191.5
Real estate development investments
(23.1
)
(13.7
)
Cash Available for Distribution after
real estate development investments
$140.8
$177.8
PRO FORMA SALES (j):
Three Months Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Intersegment
Eliminations
Total
December 31, 2023
Sales
$60.0
$28.1
$60.0
$310.5
$8.9
($0.1
)
$467.4
Large Dispositions (g)
—
—
—
(242.2
)
—
—
(242.2
)
Pro forma sales
$60.0
$28.1
$60.0
$68.3
$8.9
($0.1
)
$225.2
September 30, 2023
Sales
$64.0
$29.3
$70.4
$31.2
$6.8
($0.1
)
$201.6
Pro forma sales
$64.0
$29.3
$70.4
$31.2
$6.8
($0.1
)
$201.6
December 31, 2022
Sales
$56.6
$42.4
$71.4
$57.0
$18.2
($0.2
)
$245.4
Large Dispositions (g)
—
—
—
(30.5
)
—
—
(30.5
)
Pro forma sales
$56.6
$42.4
$71.4
$26.5
$18.2
($0.2
)
$214.9
PRO FORMA SALES (j):
Year Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Intersegment
Eliminations
Total
December 31, 2023
Sales
$264.1
$124.1
$235.5
$390.0
$43.7
($0.5
)
$1,056.9
Large Dispositions (g)
—
—
—
(242.2
)
—
—
(242.2
)
Pro forma sales
$264.1
$124.1
$235.5
$147.8
$43.7
($0.5
)
$814.7
December 31, 2022
Sales
$264.2
$162.2
$274.1
$138.0
$71.0
($0.4
)
$909.1
Large Disposition (g)
—
—
—
(30.5
)
—
—
(30.5
)
Pro forma sales
$264.2
$162.2
$274.1
$107.5
$71.0
($0.4
)
$878.6
PRO FORMA NET INCOME (k):
Three Months Ended
Year Ended
December 31,
2023
September 30, 2023
December 31,
2022
December 31,
2023
December 31,
2022
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
Net Income Attributable to Rayonier
Inc.
$126.9
$0.85
$19.2
$0.13
$33.1
$0.22
$173.5
$1.17
$107.1
$0.73
Large Dispositions (g)
(105.1
)
(0.70
)
—
—
(16.6
)
(0.11
)
(105.1
)
(0.70
)
(16.6
)
(0.11
)
Net recovery on legal settlements (a)
(0.2
)
—
—
—
—
—
(20.7
)
(0.14
)
—
—
Pension settlement charge (l)
2.0
0.01
—
—
—
—
2.0
0.01
—
—
Timber write-offs resulting from casualty
events (e)
—
—
—
—
(0.4
)
—
2.3
0.02
0.7
—
Pro forma net income adjustments
attributable to noncontrolling interests (m)
1.7
—
—
—
0.4
—
1.5
—
0.3
—
Pro Forma Net Income
$25.4
$0.17
$19.2
$0.13
$16.5
$0.11
$53.5
$0.36
$91.5
$0.62
PRO FORMA OPERATING INCOME (LOSS) AND
ADJUSTED EBITDA (n) (h):
Three Months Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Corporate and
Other
Total
December 31, 2023
Operating income (loss)
$13.7
($2.5
)
$6.8
$137.9
$0.1
($10.8
)
$145.2
Large Dispositions (g)
—
—
—
(105.1
)
—
—
(105.1
)
Pro forma operating income (loss)
$13.7
($2.5
)
$6.8
$32.8
$0.1
($10.8
)
$40.1
Depreciation, depletion and
amortization
18.3
8.7
5.3
11.1
—
0.5
44.0
Non-cash cost of land and improved
development
—
—
—
9.6
—
—
9.6
Adjusted EBITDA
$32.0
$6.2
$12.1
$53.5
$0.1
($10.3
)
$93.7
September 30, 2023
Operating income (loss)
$18.6
($0.6
)
$17.6
$9.2
($0.1
)
($9.4
)
$35.4
Depreciation, depletion and
amortization
19.2
8.3
6.0
3.1
—
0.4
37.0
Non-cash cost of land and improved
development
—
—
—
6.6
—
—
6.6
Adjusted EBITDA
$37.8
$7.8
$23.5
$18.9
($0.1
)
($9.0
)
$78.9
December 31, 2022
Operating income
$19.7
$3.5
$8.0
$21.5
$0.3
($8.9
)
$44.1
Timber write-offs resulting from casualty
events (e)
—
(0.4
)
—
—
—
—
(0.4
)
Large Dispositions (g)
—
—
—
(16.6
)
—
—
(16.6
)
Pro forma operating income
$19.7
$3.1
$8.0
$4.9
$0.3
($8.9
)
$27.2
Depreciation, depletion and
amortization
13.5
12.4
5.7
1.2
—
0.3
33.1
Non-cash cost of land and improved
development
—
—
—
8.1
—
—
8.1
Adjusted EBITDA
$33.2
$15.5
$13.7
$14.2
$0.3
($8.6
)
$68.4
PRO FORMA OPERATING INCOME (LOSS) AND
ADJUSTED EBITDA (n) (h):
Year Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Corporate and
Other
Total
December 31, 2023
Operating income (loss)
$76.3
($9.0
)
$26.0
$156.6
$0.5
($39.1
)
$211.3
Timber write-offs resulting from casualty
events (e)
—
—
2.3
—
—
—
2.3
Large Dispositions (g)
—
—
—
(105.1
)
—
—
(105.1
)
Pro forma operating income (loss)
$76.3
($9.0
)
$28.3
$51.5
$0.5
($39.1
)
$108.5
Depreciation, depletion and
amortization
80.0
36.9
21.7
18.0
—
1.7
158.2
Non-cash cost of land and improved
development
—
—
—
29.8
—
—
29.8
Adjusted EBITDA
$156.2
$27.9
$50.0
$99.3
$0.5
($37.4
)
$296.5
December 31, 2022
Operating income
$96.6
$15.2
$30.6
$58.5
$0.4
($35.5
)
$165.8
Gain associated with the multi-family
apartment complex sale attributable to NCI (f)
—
—
—
(11.5
)
—
—
(11.5
)
Timber write-offs resulting from casualty
events (e)
—
0.7
—
—
—
—
0.7
Large Dispositions (g)
—
—
—
(16.6
)
—
—
(16.6
)
Pro forma operating income
$96.6
$15.9
$30.6
$30.4
$0.4
($35.5
)
$138.5
Depreciation, depletion and
amortization
60.3
48.0
23.9
13.9
—
1.3
147.3
Non-cash cost of land and improved
development
—
—
—
28.4
—
—
28.4
Adjusted EBITDA
$156.9
$63.9
$54.5
$72.7
$0.4
($34.2
)
$314.2
(a)
“Net recovery on legal settlements”
reflects net proceeds received from litigation regarding insurance
claims.
(b)
“Capital expenditures” exclude timberland
acquisitions of $14.1 million and $458.5 million during the twelve
months ended December 31, 2023 and December 31, 2022,
respectively.
(c)
“Cash Available for Distribution” (CAD) is
defined as cash provided by operating activities adjusted for
capital spending (excluding timberland acquisitions and real estate
development investments) and working capital and other balance
sheet changes. CAD is a non-GAAP measure of cash generated during a
period that is available for common stock dividends, distributions
to operating partnership unitholders, distributions to
noncontrolling interests, repurchase of the Company's common
shares, debt reduction, timberland acquisitions and real estate
development investments. CAD is not necessarily indicative of the
CAD that may be generated in future periods.
(d)
The twelve months ended December 31, 2023
include $20.7 million of net recoveries associated with legal
settlements, which is partially offset by a $2.0 million pension
settlement charge.
(e)
“Timber write-offs resulting from casualty
events” include the write-off and adjustments of merchantable and
pre-merchantable timber volume damaged by casualty events that
cannot be salvaged.
(f)
“Gain associated with the multi-family
apartment complex sale attributable to noncontrolling interests"
represents the gain recognized in connection with the sale of
property by the Bainbridge Landing joint venture attributable to
noncontrolling interests.
(g)
“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.
(h)
“Adjusted EBITDA” is defined as earnings
before interest, taxes, depreciation, depletion, amortization, the
non-cash cost of land and improved development, non-operating
(income) expense, timber write-offs resulting from casualty events,
the gain associated with the multi-family apartment complex sale
attributable to noncontrolling interests 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 excludes specific items that management believes are
not indicative of the Company’s ongoing operating results.
(i)
“Cash interest paid (net)” is presented
net of patronage refunds received of $6.2 million and $6.0 million
during the twelve months ended December 31, 2023 and December 31,
2022, respectively. In addition, cash interest paid (net) has been
restated to be presented net of cash interest received of $2.4
million and $3.0 million during the twelve months ended December
31, 2023 and December 31, 2022, respectively.
(j)
“Pro forma revenue (sales)” is defined as
revenue (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 the Company’s
ongoing operating results.
(k)
“Pro forma net income” is defined as net
income attributable to Rayonier Inc. adjusted for its proportionate
share of the net recoveries associated with legal settlements,
timber write-offs resulting from casualty events, a pension
settlement charge, 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 the Company’s
ongoing operating results.
(l)
“Pension settlement charge" reflects the
loss recognized upon remeasurement of the Company’s defined benefit
plan due to one-time lump sum payments made to participants during
the fourth quarter of 2023.
(m)
“Pro forma net income adjustments
attributable to noncontrolling interests” are the proportionate
share of pro forma items that are attributable to noncontrolling
interests.
(n)
“Pro forma operating income (loss)” is
defined as operating income (loss) adjusted for timber write-offs
resulting from casualty events, the gain associated with the
multi-family apartment complex sale attributable to noncontrolling
interests, 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 the Company’s
ongoing operating results.
F
RAYONIER INC. AND
SUBSIDIARIES
RECONCILIATION OF ADJUSTED
EBITDA GUIDANCE
December 31, 2023
(unaudited)
ADJUSTED EBITDA GUIDANCE (a):
2024 Guidance
Low
High
Net Income to Adjusted EBITDA
Reconciliation
Net income
$66.1
-
$87.4
Less: Net income attributable to
noncontrolling interests
(5.3
)
-
(6.3
)
Less: Net income attributable to
noncontrolling interests in the operating partnership
(0.9
)
-
(1.3
)
Net income attributable to Rayonier
Inc.
$59.9
-
$79.8
Interest expense, net
37.7
-
38.2
Interest income
(5.5
)
-
(6.0
)
Income tax expense
7.7
-
9.4
Depreciation, depletion and
amortization
150.0
-
159.0
Non-cash cost of land and improved
development
34.0
-
37.0
Net income attributable to noncontrolling
interests
6.2
-
7.6
Adjusted EBITDA
$290.0
-
$325.0
Diluted Earnings per Share
$0.40
-
$0.54
(a)
“Adjusted EBITDA” is defined as earnings
before interest, taxes, depreciation, depletion, amortization, the
non-cash cost of land and improved development, non-operating
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 excludes specific
items that management believes are not indicative of the Company's
ongoing operating results.
G
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240130360314/en/
Investors/Media Collin Mings 904-357-9100
investorrelations@rayonier.com
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