- Fourth quarter net income attributable to Rayonier of $327.1
million ($2.15 per share), pro forma net income of $41.1 million
($0.27 per share), and Adjusted EBITDA of $115.1 million
- Full-year net income attributable to Rayonier of $359.1 million
($2.39 per share), pro forma net income of $69.9 million ($0.47 per
share), and Adjusted EBITDA of $298.8 million
- Closed $495 million of previously announced Large Dispositions
during the fourth quarter
- Since November 2023 announcement of Initiatives to Enhance
Shareholder Value, completed $737 million of Large Dispositions,
returned over $110 million of capital to shareholders in the form
of special cash dividends and share repurchases, and reduced Net
Debt to 2024 Adjusted EBITDA to 2.6x (as of 12/31/2024)
- Delivered significant growth in Land-Based
Solution business—year-end pipeline of ~39,000 acres under solar
option and ~154,000 acres under carbon capture and storage (CCS)
lease*
Rayonier Inc. (NYSE:RYN) today reported fourth quarter net
income attributable to Rayonier of $327.1 million, or $2.15 per
share, on revenues of $726.3 million. This compares to net income
attributable to Rayonier of $126.9 million, or $0.85 per share, on
revenues of $467.4 million in the prior year quarter.
The fourth quarter results included $291.1 million of income
from Large Dispositions,1 a $1.6 million gain from the termination
of a cash flow hedge,2 $1.6 million of net costs associated with
legal settlements,3 and $1.1 million of restructuring charges.4
Excluding these items and adjusting for pro forma net income
adjustments attributable to noncontrolling interests,5 fourth
quarter pro forma net income6 was $41.1 million, or $0.27 per
share, on pro forma revenues6 of $231.3 million. This compares to
pro forma net income6 of $25.4 million, or $0.17 per share, on pro
forma revenues of $225.2 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, 2024
December 31, 2023
$
EPS
$
EPS
Revenues
$726.3
$467.4
Large Dispositions1
(495.0
)
(242.2
)
Pro forma revenues6
$231.3
$225.2
Net income attributable to Rayonier
$327.1
$2.15
$126.9
$0.85
Large Dispositions1
(291.1
)
(1.88
)
(105.1
)
(0.70
)
Gain from terminated cash flow hedge2
(1.6
)
(0.01
)
—
—
Net cost (recovery) on legal
settlements3
1.6
0.01
(0.2
)
—
Restructuring charges4
1.1
0.01
—
—
Pension settlement charge7
—
—
2.0
0.01
Pro forma net income adjustments
attributable to noncontrolling interests5
3.9
—
1.7
—
Pro forma net income6
$41.1
$0.27
$25.4
$0.17
Fourth quarter operating income was $346.2 million versus $145.2
million in the prior year period. Fourth quarter operating income
included $291.1 million of income from Large Dispositions1 and $1.1
million of restructuring charges.4 Excluding these items, pro forma
operating income6 was $56.3 million. This compares to pro forma
operating income6 of $40.1 million in the prior year period. Fourth
quarter Adjusted EBITDA6 was $115.1 million versus $93.7 million in
the prior year period.
The following table summarizes operating income (loss), pro
forma operating income (loss),6 and Adjusted EBITDA6 for the
current quarter and comparable prior year period:
Three Months Ended December
31,
Operating Income
(Loss)
Pro forma Operating Income
(Loss)6
Adjusted EBITDA6
(millions of dollars)
2024
2023
2024
2023
2024
2023
Southern Timber
$18.0
$13.7
$18.0
$13.7
$34.7
$32.0
Pacific Northwest Timber
(1.3
)
(2.5
)
(1.3
)
(2.5
)
6.0
6.2
New Zealand Timber
14.2
6.8
14.2
6.8
20.0
12.1
Real Estate
326.1
137.9
35.0
32.8
63.4
53.5
Trading
(0.1
)
0.1
(0.1
)
0.1
(0.1
)
0.1
Corporate and Other
(10.6
)
(10.8
)
(9.4
)
(10.8
)
(9.0
)
(10.3
)
Total
$346.2
$145.2
$56.3
$40.1
$115.1
$93.7
Overview of Full-Year Results: Full-year 2024 net income
attributable to Rayonier was $359.1 million, or $2.39 per share, on
revenues of $1.3 billion. This compares to net income attributable
to Rayonier of $173.5 million, or $1.17 per share, on revenues of
$1.1 billion in the prior year.
Full-year results included $291.1 million of income from Large
Dispositions,1 $8.0 million of net recoveries on legal
settlements,3 a $1.6 million gain from the termination of a cash
flow hedge,2 a $4.8 million pension settlement charge,7 $1.6
million of costs related to disposition initiatives,8 and $1.1
million of restructuring charges.4 Excluding these items and
adjusting for pro forma net income adjustments attributable to
noncontrolling interests,5 full-year pro forma net income6 was
$69.9 million, or $0.47 per share, on pro forma revenues6 of $768.0
million. This compares to pro forma net income6 of $53.5 million,
or $0.36 per share, on pro forma revenues6 of $814.7 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, 2024
December 31, 2023
$
EPS
$
EPS
Revenues
$1,263.0
$1,056.9
Large Dispositions1
(495.0
)
(242.2
)
Pro forma revenues6
$768.0
$814.7
Net income attributable to Rayonier
$359.1
$2.39
$173.5
$1.17
Large Dispositions1
(291.1
)
(1.91
)
(105.1
)
(0.70
)
Net recovery on legal settlements3
(8.0
)
(0.05
)
(20.7
)
(0.14
)
Gain from terminated cash flow hedge2
(1.6
)
(0.01
)
—
—
Pension settlement charge7
4.8
0.03
2.0
0.01
Costs related to disposition
initiatives8
1.6
0.01
—
—
Restructuring charges4
1.1
0.01
—
—
Timber write-offs resulting from casualty
events9
—
—
2.3
0.02
Pro forma net income adjustments
attributable to noncontrolling interests5
3.9
—
1.5
—
Pro forma net income6
$69.9
$0.47
$53.5
$0.36
Full-year operating income was $402.5 million versus $211.3
million in the prior year. Full-year operating income included
$291.1 million of income from Large Dispositions,1 $1.6 million of
costs related to disposition initiatives,8 and $1.1 million of
restructuring charges.4 Excluding these items, full-year pro forma
operating income6 was $114.1 million. This compares to pro forma
operating income6 of $108.5 million in the prior year. Full-year
Adjusted EBITDA6 was $298.8 million versus $296.5 million in the
prior year.
The following table summarizes operating income (loss), pro
forma operating income (loss)6 and Adjusted EBITDA6 for the
full-year and comparable prior year period:
Year Ended December
31,
Operating Income
(Loss)
Pro forma Operating Income
(Loss)6
Adjusted EBITDA6
(millions of dollars)
2024
2023
2024
2023
2024
2023
Southern Timber
$77.9
$76.3
$77.9
$76.3
$151.3
$156.2
Pacific Northwest Timber
(6.3
)
(9.0
)
(6.3
)
(9.0
)
25.4
27.9
New Zealand Timber
33.5
26.0
33.5
28.3
53.8
50.0
Real Estate
340.4
156.6
49.3
51.5
106.8
99.3
Trading
(0.1
)
0.5
(0.1
)
0.5
(0.1
)
0.5
Corporate and Other
(42.9
)
(39.1
)
(40.2
)
(39.1
)
(38.4
)
(37.4
)
Total
$402.5
$211.3
$114.1
$108.5
$298.8
$296.5
Full-year cash provided by operating activities was $261.6
million versus $298.4 million in the prior year period. Full-year
cash available for distribution (CAD)6 was $183.7 million, which
increased $19.8 million versus the prior year period due to lower
cash interest paid (net) ($16.9 million), higher Adjusted EBITDA6
($2.3 million), and lower capital expenditures ($1.7 million),
partially offset by higher cash taxes paid ($1.1 million).
“Our full-year 2024 financial performance demonstrates our
resilience and nimble execution amid persistent market headwinds,”
said Mark McHugh, President and CEO. “We were pleased to finish the
year with strong fourth quarter financial results, which allowed us
to deliver full-year Adjusted EBITDA of $298.8 million—roughly 3%
above the high end of our prior guidance range. Our outperformance
versus expectations in the fourth quarter was driven primarily by
extraordinarily strong results in our Real Estate segment, which
delivered Adjusted EBITDA for the quarter of $63.4 million on
roughly 7,800 acres sold. Notably, our Real Estate segment achieved
a weighted-average price per acre for the quarter of roughly $7,200
(excluding Improved Development and Large Dispositions),
demonstrating our team’s ability to optimize the value of our
portfolio by generating significant HBU premiums above timberland
value.”
“We further advanced several important strategic initiatives
throughout the year, including growing our Land-Based Solutions
business, accelerating value creation in our Real Estate business,
and demonstrating significant progress on our disposition and
capital structure realignment plan. To date, we’ve closed on
roughly $737 million of dispositions (~74% of our $1 billion
target), which has allowed us to meaningfully reduce leverage and
return over $110 million of capital to shareholders in the form of
special cash dividends and share repurchases. In sum, I’m proud of
how our team was able to navigate challenging market conditions
throughout the year to deliver strong financial results while also
maintaining a relentless focus on driving shareholder value
creation.”
“Turning to our fourth quarter results, we achieved total
Adjusted EBITDA of $115.1 million—an increase of 23% versus the
prior year period. The increase in Adjusted EBITDA versus the prior
year quarter was driven primarily by stronger results in our
Southern Timber, New Zealand Timber, and Real Estate segments,
partially offset by slightly lower results in our Pacific Northwest
Timber segment.”
“In our Southern Timber segment, Adjusted EBITDA improved 8%
versus the prior year quarter, as higher non-timber income was
partially offset by a 15% reduction in weighted-average net
stumpage realizations and 3% lower harvest volumes. In our Pacific
Northwest Timber segment, Adjusted EBITDA declined 2% versus the
prior year quarter, as a 9% decrease in weighted-average log prices
and 3% lower harvest volumes were partially offset by favorable
costs. In New Zealand Timber, Adjusted EBITDA improved 66% versus
the prior year quarter, primarily driven by favorable foreign
exchange impacts and a 15% increase in harvest volumes. Lastly, in
our Real Estate segment, Adjusted EBITDA increased 18% relative to
the prior year quarter, driven by the closing of several key rural
HBU and development transactions. Notably, weighted-average
per-acre prices in our Real Estate segment were more than double
the prices achieved in the prior year period, reflecting the high
quality of the transactions completed.”
Southern Timber
Fourth quarter sales of $59.1 million decreased $0.9 million, or
2%, versus the prior year period. Harvest volumes decreased 3% to
1.56 million tons versus 1.60 million tons in the prior year
period, primarily due to the impact of the Large Disposition
completed in the fourth quarter. Average pine sawtimber stumpage
realizations decreased 14% to $24.74 per ton versus $28.84 per ton
in the prior year period, primarily due to softer overall demand
from sawmills coupled with increased log supply from salvage timber
and an unfavorable shift in geographic mix. Average pine pulpwood
stumpage realizations decreased 9% to $16.08 per ton versus $17.68
per ton in the prior year period, primarily driven by the impact of
salvage volume and an unfavorable shift in geographic mix. Overall,
weighted-average net stumpage realizations (including hardwood)
decreased 15% to $19.30 per ton versus $22.63 per ton in the prior
year period, reflecting lower pricing as well as a heavier mix of
pulpwood. Non-timber sales of $15.8 million increased $7.4 million
versus the prior year period, primarily driven by growth in our
Land-Based Solutions business and higher pipeline easement
revenues. Operating income of $18.0 million increased $4.3 million
versus the prior year period due to higher non-timber income ($7.4
million), lower costs ($1.4 million), and lower depletion expense
($1.1 million), partially offset by lower net stumpage realizations
($5.2 million) and lower volumes ($0.4 million).
Fourth quarter Adjusted EBITDA6 of $34.7 million was 8%, or $2.7
million, above the prior year period.
Pacific Northwest Timber
Fourth quarter sales of $24.1 million decreased $4.0 million, or
14%, versus the prior year period. Harvest volumes decreased 3% to
290,000 tons versus 298,000 tons in the prior year period,
primarily due to the impact of the Large Dispositions completed in
the fourth quarter. Average delivered prices for domestic sawtimber
decreased 5% to $89.04 per ton versus $93.91 per ton in the prior
year period due to weaker demand from domestic lumber mills and an
unfavorable product mix, as a higher proportion of chip-n-saw was
harvested in the current year period. Average delivered pulpwood
prices increased 4% to $29.99 per ton versus $28.91 per ton in the
prior year period, primarily due to improved supply/demand dynamics
resulting from reduced sawmill residuals. Operating loss of $1.3
million versus operating loss of $2.5 million in the prior year
period was driven by lower costs ($1.5 million), lower depletion
expense ($1.1 million), and higher non-timber income ($0.2
million), partially offset by lower net stumpage realizations ($1.6
million).
Fourth quarter Adjusted EBITDA6 of $6.0 million was 2%, or $0.1
million, below the prior year period.
New Zealand Timber
Fourth quarter sales of $72.4 million increased $12.3 million,
or 21%, versus the prior year period. Sales volumes increased 15%
to 729,000 tons versus 632,000 tons in the prior year period.
Average delivered prices for export sawtimber increased 7% to
$108.09 per ton versus $100.73 per ton in the prior year period, as
higher shipping costs were partially passed on to export customers
through increased prices. Average delivered prices for domestic
sawtimber increased 6% to $66.68 per ton versus $63.03 per ton in
the prior year period. The increase in domestic sawtimber prices
was driven in part by an increase in the NZ$/US$ exchange rate
(US$0.61 per NZ$1.00 versus US$0.60 per NZ$1.00). Excluding the
impact of foreign exchange rates, domestic sawtimber prices
increased 3% versus the prior year period, reflecting increased
competition from export markets. Overall, net stumpage realizations
improved 1% versus the prior year quarter, as elevated shipping
costs largely offset higher delivered log pricing. Fourth quarter
non-timber / carbon credit sales totaled $6.2 million versus $7.7
million in the prior year period, primarily due to a lower volume
of carbon credits sold as compared to the prior year period.
Operating income of $14.2 million increased $7.4 million versus the
prior year period due to favorable foreign exchange impacts ($5.7
million), higher volumes ($1.5 million), higher net stumpage
realizations ($0.5 million), lower costs ($0.4 million), and lower
depletion rates ($0.3 million), partially offset by lower carbon
credit income ($1.0 million).
Fourth quarter Adjusted EBITDA6 of $20.0 million was 66%, or
$7.9 million, above the prior year period.
Real Estate
Fourth quarter sales of $567.2 million increased $256.7 million
versus the prior year period, while operating income of $326.1
million increased $188.2 million versus the prior year period.
Fourth quarter sales and operating income included $495.0 million
and $291.1 million, respectively, from Large Dispositions.1
Excluding Large Dispositions,1 pro forma sales6 were $72.2 million
and pro forma operating income6 was $35.0 million. Pro forma sales6
and pro forma operating income6 increased versus the prior year
period as higher weighted-average prices ($8,923 per acre versus
$3,320 per acre in the prior year period) were partially offset by
lower acres sold (7,811 acres sold versus 20,488 acres sold in the
prior year period).
Improved Development sales of $14.4 million included $13.5
million from the Heartwood development project south of Savannah,
Georgia, and $0.9 million from the Wildlight development project
north of Jacksonville, Florida. Sales in Heartwood included a
37.4-acre build-for-rent residential parcel for $9.1 million
($244,000 per acre), a 37.1-acre residential pod for $2.0 million
($54,000 per acre), a 7.2-acre industrial parcel for $1.7 million
($240,000 per acre), and a 7.1-acre commercial site for $0.6
million ($84,000 per acre). Sales in Wildlight consisted of a
0.9-acre commercial parcel for $0.9 million ($968,000 per acre).
This compares to Improved Development sales of $10.6 million in the
prior year period.
Unimproved Development sales of $12.4 million consisted of a
1,129-acre residential pod sale to a national homebuilder for
$10,980 per acre. There were no Unimproved Development sales in the
prior year period.
Rural sales of $42.9 million consisted of 6,592 acres at an
average price of $6,515 per acre. This compares to prior year
period sales of $57.1 million, which consisted of 20,215 acres at
an average price of $2,824 per acre.
There were no Timberland & Non-Strategic sales in the fourth
quarter. This compares to prior year period sales of $0.4 million,
which consisted of a 200-acre transaction for $2,000 per acre.
Fourth quarter Adjusted EBITDA6 of $63.4 million increased $9.9
million versus the prior year period.
Trading
Fourth quarter sales of $3.6 million decreased $5.3 million
versus the prior year period, primarily due to lower volumes. Sales
volumes of 28,000 tons decreased 63% versus the prior year period.
The Trading segment generated an operating loss of $0.1 million
versus operating income of $0.1 million in the prior year
period.
Other Items
Fourth quarter corporate and other operating expenses of $10.6
million decreased $0.2 million versus the prior year period, as
lower stock compensation expense and professional services fees
were partially offset by $1.1 million of restructuring charges4 and
other increased expenses. The restructuring charges were related to
a workforce optimization initiative designed to reduce overhead
costs following the disposition of approximately 255,000 acres of
timberlands in connection with our Initiatives to Enhance
Shareholder Value.
Fourth quarter interest expense of $7.3 million decreased $4.2
million versus the prior year period, primarily due to lower
average outstanding debt and a $1.6 million gain from the
termination of a cash flow hedge2 associated with the repayment of
a $100 million term loan.
Fourth quarter income tax expense increased $4.0 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.
Share Repurchases
During the fourth quarter, the Company repurchased 488,000
shares at an average price of $30.10 per share, or $14.7 million in
total. In December, the Company announced a new $300 million share
repurchase authorization, replacing our previous $100 million share
repurchase authorization.
Outlook
In 2025, we expect to achieve net income attributable to
Rayonier of $79 to $100 million, EPS of $0.51 to $0.64, and
Adjusted EBITDA of $270 to $300 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 6.9 to 7.1 million tons—a modest increase in
harvest volumes versus the prior year, primarily due to the
carryover of some planned 2024 volume into 2025, partially offset
by reduced volume from the recent disposition in Oklahoma. Further,
while we expect pine stumpage realizations to trend higher as the
year progresses, we anticipate that full-year realizations will be
slightly lower versus the prior year, due in part to the continued
impact of salvage volume on the market. Lastly, we expect slightly
lower non-timber income for full-year 2025 as compared to the prior
year, which benefited from significant pipeline easement activity.
Overall, we expect full-year Adjusted EBITDA of $141 to $149
million, slightly below full-year 2024 results.
In our Pacific Northwest Timber segment, we expect to achieve
full-year harvest volumes of approximately 0.9 million tons, which
reflects the reduction in our Pacific Northwest sustainable yield
resulting from the recent dispositions in Washington. Further, we
expect that full-year weighted average log pricing will increase
modestly versus the prior year as a result of improving demand
conditions. Overall, we expect full-year Adjusted EBITDA of $21 to
$26 million, comparable to full-year 2024 results.
In our New Zealand Timber segment, we expect full-year harvest
volumes of 2.5 to 2.7 million tons. We expect that full-year
domestic and export sawtimber pricing will improve modestly
relative to the full-year pricing achieved in 2024 as supply-demand
fundamentals continue to improve. We further anticipate a modest
increase in carbon credit sales in 2025, as pricing appears to have
stabilized following a period of unusual market volatility.
Overall, we expect full-year Adjusted EBITDA of $54 to $60 million,
up modestly versus full-year 2024 results.
Turning to our Real Estate segment, we are encouraged by the
continued strong demand and value realizations for our HBU
properties, and we expect another solid 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 2024, we
anticipate very light closing activity (and a correspondingly low
Adjusted EBITDA contribution of less than $10 million) in the first
quarter. Overall, we expect full-year Adjusted EBITDA of $86 to $96
million, down from the exceptionally strong full-year 2024
results.
Conference Call
A conference call and live audio webcast will be held on
Thursday, February 6, 2025 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 7, 2025, by dialing
800-876-5258 (domestic) or 203-369-3998 (international), passcode:
4080.
Complimentary copies of Rayonier press releases and other
financial documents are also available by calling (904)
357-9100.
* Year-end 2024 solar option acreage based
on ~17,000 option acres added and ~3,000 option acres expired /
terminated during the year. Year-end 2024 carbon capture and
storage (CCS) pore space lease acreage based on ~154,000 lease
acres added and ~26,000 lease acres expired / terminated during the
year.
1"Large Dispositions" are defined
as transactions involving the sale of productive timberland assets
that exceed $20 million in size and do not reflect a demonstrable
premium relative to timberland value.
2"Gain from terminated cash flow
hedge" is the mark to market gain recognized in earnings when
the hedged cash flows will no longer occur.
3"Net cost (recovery) on legal
settlements" reflects the net gain from litigation regarding
insurance claims.
4"Restructuring charges" include
severance costs related to workforce optimization initiatives.
5"Pro forma net income adjustments
attributable to noncontrolling interests" are the proportionate
share of pro forma items that are attributable to noncontrolling
interests.
6"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.
7"Pension settlement charge"
reflects the net loss recognized in connection with the termination
and settlement of the Company’s pension plans.
8"Costs related to disposition
initiatives" include legal, advisory, and other due diligence
costs incurred in connection with the Company’s asset disposition
plan, which was announced in November 2023.
9"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, 2024, Rayonier owned or leased under long-term
agreements approximately 2.5 million acres of timberlands located
in the U.S. South (1.75 million acres), U.S. Pacific Northwest
(308,000 acres) and New Zealand (412,000 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 further
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 and cost 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, 2024
(unaudited)
(millions of dollars, except per
share information)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
SALES
$726.3
$195.0
$467.4
$1,263.0
$1,056.9
Costs and Expenses
Cost of sales
(365.8
)
(147.2
)
(299.4
)
(784.8
)
(762.6
)
Selling and general expenses
(16.6
)
(18.3
)
(20.1
)
(74.4
)
(74.8
)
Other operating income (expense), net
2.3
(1.9
)
(2.7
)
(1.3
)
(8.2
)
OPERATING INCOME
346.2
27.6
145.2
402.5
211.3
Interest expense, net
(7.3
)
(10.0
)
(11.6
)
(36.9
)
(48.3
)
Interest and other miscellaneous income
(expense), net
1.6
12.8
(1.0
)
10.4
20.6
INCOME BEFORE INCOME TAXES
340.5
30.4
132.6
376.0
183.6
Income tax expense
(7.3
)
—
(3.4
)
(7.0
)
(5.1
)
NET INCOME
333.2
30.4
129.2
369.0
178.5
Less: Net income attributable to
noncontrolling interests in the Operating Partnership
(4.4
)
(0.3
)
(2.1
)
(4.9
)
(2.9
)
Less: Net income attributable to
noncontrolling interests in consolidated affiliates
(1.7
)
(1.3
)
(0.2
)
(5.0
)
(2.1
)
NET INCOME ATTRIBUTABLE TO RAYONIER
INC.
$327.1
$28.8
$126.9
$359.1
$173.5
EARNINGS PER COMMON SHARE
Basic earnings per share attributable to
Rayonier Inc.
$2.20
$0.19
$0.86
$2.41
$1.17
Diluted earnings per share attributable to
Rayonier Inc.
$2.15
$0.19
$0.85
$2.39
$1.17
Pro forma net income per share (a)
$0.27
$0.12
$0.17
$0.47
$0.36
Weighted Average Common Shares used for
determining
Basic EPS
148,895,111
148,984,534
148,296,110
148,839,858
148,046,673
Diluted EPS (b)
154,425,650
151,292,994
151,173,460
152,095,503
151,067,195
(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. The incremental weighted average number of shares
used for determining diluted EPS for the three and twelve months
ended December 31, 2024 also include 3,290,617 and 827,150,
respectively, of contingently issuable shares from an additional
dividend of $1.80 per share, which was declared on December 2,
2024. As of December 31, 2024, there were 148,536,643 common shares
and 1,986,319 Redeemable Operating Partnership Units
outstanding.
A
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
December 31, 2024
(unaudited)
(millions of dollars)
December 31,
December 31,
2024
2023
Assets
Cash and cash equivalents
$323.2
$207.7
Restricted cash, current
19.4
—
Assets held for sale
5.4
9.9
Other current assets
89.0
99.3
Timber and timberlands, net of depletion
and amortization
2,724.1
3,004.3
Higher and better use timberlands and real
estate development investments
109.6
105.6
Property, plant and equipment
37.6
46.1
Less - accumulated depreciation
(19.2
)
(19.1
)
Net property, plant and equipment
18.4
27.0
Restricted cash, non-current
0.7
0.7
Right-of-use assets
82.6
95.5
Other assets
102.0
97.6
$3,474.4
$3,647.6
Liabilities, Noncontrolling Interests
in the Operating Partnership and Shareholders’ Equity
Current maturities of long-term debt
19.4
—
Dividend and distribution payable
271.8
30.1
Other current liabilities
97.5
110.2
Long-term debt
1,089.8
1,365.8
Long-term lease liability
76.3
87.7
Other non-current liabilities
87.3
94.5
Noncontrolling interests in the operating
partnership
51.8
81.7
Total Rayonier Inc. shareholders’
equity
1,769.3
1,860.5
Noncontrolling interests in consolidated
affiliates
11.2
17.1
Total shareholders’ equity
1,780.5
1,877.6
$3,474.4
$3,647.6
B
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
December 31, 2024
(unaudited)
(millions of dollars, except
share information)
Common Shares
Retained Earnings
Accumulated
Other
Comprehensive (Loss)
Income
Noncontrolling Interests in
Consolidated Affiliates
Shareholders’ Equity
Shares
Amount
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 ($1.34 per share) (a)
—
—
(199.5
)
—
—
(199.5
)
Issuance of shares under incentive stock
plans
380,080
0.1
—
—
—
0.1
Stock-based incentive compensation
—
14.0
—
—
—
14.0
Adjustment of noncontrolling interests in
the Operating Partnership
—
—
(2.4
)
—
—
(2.4
)
Other (b)
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
Net income
—
—
364.0
—
5.0
369.0
Net income attributable to noncontrolling
interests in the Operating Partnership
—
—
(4.9
)
—
—
(4.9
)
Dividends ($2.94 per share) (a)
—
—
(438.6
)
—
—
(438.6
)
Issuance of shares under incentive stock
plans
399,929
—
—
—
—
—
Stock-based incentive compensation
—
14.2
—
—
—
14.2
Repurchase of common shares made under
repurchase program
(488,017
)
—
(14.7
)
—
—
(14.7
)
Adjustment of noncontrolling interests in
the Operating Partnership
—
—
13.2
—
—
13.2
Other (b)
325,614
10.6
—
(35.0
)
(10.9
)
(35.3
)
Balance, December 31, 2024
148,536,643
$1,522.5
$257.2
($10.4
)
$11.2
$1,780.5
(a)
The year ended December 31, 2024 includes
an additional dividend of $1.80 per common share, consisting of a
combination of cash and the Company’s common shares. The dividend
was payable January 30, 2025, to shareholders of record on December
12, 2024. The year ended December 31, 2023 includes an additional
cash dividend of $0.20 per common share. The dividend was payable
January 12, 2024, to shareholders of record on December 29,
2023.
(b)
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, pension and post-retirement benefit plan
adjustments, 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, 2024 and December 31, 2023 also includes the
redemption of 457,579 and 764,929 Redeemable Operating Partnership
Units, respectively, for an equal number of Rayonier Inc. common
shares.
C
RAYONIER INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
December 31, 2024
(unaudited)
(millions of dollars)
Year Ended December 31,
2024
2023
Cash provided by operating
activities:
Net income
$369.0
$178.5
Depreciation, depletion and
amortization
140.2
158.2
Non-cash cost of land and improved
development
44.4
29.8
Timber write-offs resulting from casualty
events
—
2.3
Gain on large dispositions of
timberlands
(291.1
)
(105.1
)
Stock-based incentive compensation
expense
14.2
14.0
Deferred income taxes
2.6
0.3
Other items to reconcile net income to
cash provided by operating activities
5.5
15.2
Changes in working capital and other
assets and liabilities
(23.2
)
5.2
261.6
298.4
Cash provided by investing
activities:
Capital expenditures
(79.8
)
(81.4
)
Real estate development investments
(25.8
)
(23.1
)
Purchase of timberlands
(22.8
)
(14.1
)
Net proceeds from large dispositions of
timberlands
484.8
239.9
Other
(2.4
)
2.8
354.0
124.1
Cash used for financing
activities:
Net decrease in debt
(250.0
)
(150.0
)
Dividends paid (a)
(200.6
)
(170.0
)
Distributions to noncontrolling interests
in the Operating Partnership (b)
(2.8
)
(3.0
)
Proceeds from the issuance of common
shares under incentive stock plan
—
0.1
Proceeds from the issuance of common
shares under the “at-the-market” (ATM) equity offering program, net
of commissions and offering costs
—
(0.1
)
Repurchase of common shares made under
repurchase program
(14.7
)
—
Distributions to noncontrolling interests
in consolidated affiliates
(7.1
)
(1.7
)
Other
(4.2
)
(4.2
)
(479.4
)
(328.9
)
Effect of exchange rate changes on cash
and restricted cash
(1.4
)
(0.6
)
Cash, cash equivalents and restricted
cash:
Change in cash, cash equivalents and
restricted cash
134.8
93.0
Balance, beginning of year
208.4
115.4
Balance, end of year
$343.2
$208.4
(a)
The year ended December 31, 2024 includes
an additional cash dividend of $0.20 per common share, totaling
$29.8 million. The additional dividend was paid on January 12,
2024, to shareholders of record on December 29, 2023.
(b)
The year ended December 31, 2024 includes
an additional cash distribution of $0.20 per Redeemable Operating
Partnership Unit, totaling $0.5 million. The additional
distribution was paid on January 12, 2024, to holders of record on
December 29, 2023.
D
RAYONIER INC. AND
SUBSIDIARIES
BUSINESS SEGMENT SALES, PRO
FORMA SALES, OPERATING INCOME,
PRO FORMA OPERATING INCOME AND
ADJUSTED EBITDA
December 31, 2024
(unaudited)
(millions of dollars)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Sales
Southern Timber
$59.1
$62.0
$60.0
$250.4
$264.1
Pacific Northwest Timber
24.1
27.2
28.1
100.8
124.1
New Zealand Timber
72.4
66.8
60.0
238.6
235.5
Real Estate
567.2
30.1
310.5
643.8
390.0
Trading
3.6
9.0
8.9
29.6
43.7
Intersegment Eliminations
—
(0.1
)
(0.1
)
(0.2
)
(0.5
)
Sales
$726.3
$195.0
$467.4
$1,263.0
$1,056.9
Pro forma sales (a)
Southern Timber
$59.1
$62.0
$60.0
$250.4
$264.1
Pacific Northwest Timber
24.1
27.2
28.1
100.8
124.1
New Zealand Timber
72.4
66.8
60.0
238.6
235.5
Real Estate
72.2
30.1
68.3
148.8
147.8
Trading
3.6
9.0
8.9
29.6
43.7
Intersegment Eliminations
—
(0.1
)
(0.1
)
(0.2
)
(0.5
)
Pro forma sales
$231.3
$195.0
$225.2
$768.0
$814.7
Operating income (loss)
Southern Timber
$18.0
$19.8
$13.7
$77.9
$76.3
Pacific Northwest Timber
(1.3
)
0.8
(2.5
)
(6.3
)
(9.0
)
New Zealand Timber
14.2
8.9
6.8
33.5
26.0
Real Estate
326.1
8.6
137.9
340.4
156.6
Trading
(0.1
)
(0.1
)
0.1
(0.1
)
0.5
Corporate and Other
(10.6
)
(10.5
)
(10.8
)
(42.9
)
(39.1
)
Operating income
$346.2
$27.6
$145.2
$402.5
$211.3
Pro forma operating income (loss)
(a)
Southern Timber
$18.0
$19.8
$13.7
$77.9
$76.3
Pacific Northwest Timber
(1.3
)
0.8
(2.5
)
(6.3
)
(9.0
)
New Zealand Timber
14.2
8.9
6.8
33.5
28.3
Real Estate
35.0
8.6
32.8
49.3
51.5
Trading
(0.1
)
(0.1
)
0.1
(0.1
)
0.5
Corporate and Other
(9.4
)
(9.6
)
(10.8
)
(40.2
)
(39.1
)
Pro forma operating income
$56.3
$28.5
$40.1
$114.1
$108.5
Adjusted EBITDA (a)
Southern Timber
$34.7
$37.9
$32.0
$151.3
$156.2
Pacific Northwest Timber
6.0
8.7
6.2
25.4
27.9
New Zealand Timber
20.0
14.6
12.1
53.8
50.0
Real Estate
63.4
19.9
53.5
106.8
99.3
Trading
(0.1
)
(0.1
)
0.1
(0.1
)
0.5
Corporate and Other
(9.0
)
(9.2
)
(10.3
)
(38.4
)
(37.4
)
Adjusted EBITDA
$115.1
$71.8
$93.7
$298.8
$296.5
(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, 2024
(unaudited)
(millions of dollars, except per
share information)
LIQUIDITY MEASURES:
Year Ended
December 31,
December 31,
2024
2023
Cash Provided by Operating
Activities
$261.6
$298.4
Working capital and other balance sheet
changes
9.9
(32.4
)
Net recovery on legal settlements (a)
(8.0
)
(20.7
)
Capital expenditures (b)
(79.8
)
(81.4
)
Cash Available for Distribution
(c)
$183.7
$163.9
Net Income
$369.0
$178.5
Interest, net and miscellaneous income
(d)
27.8
45.9
Income tax expense (e)
7.0
5.1
Depreciation, depletion and
amortization
140.2
158.2
Non-cash cost of land and improved
development
44.4
29.8
Non-operating income (f)
(1.3
)
(18.3
)
Costs related to disposition initiatives
(g)
1.6
—
Restructuring charges (h)
1.1
—
Timber write-offs resulting from casualty
events (i)
—
2.3
Large Dispositions (j)
(291.1
)
(105.1
)
Adjusted EBITDA (k)
$298.8
$296.5
Cash interest paid, net (l)
(29.4
)
(46.3
)
Cash taxes paid
(5.9
)
(4.8
)
Capital expenditures (b)
(79.8
)
(81.4
)
Cash Available for Distribution
(c)
$183.7
$163.9
Cash Available for Distribution
(c)
$183.7
$163.9
Real estate development investments
(25.8
)
(23.1
)
Cash Available for Distribution after
real estate development investments
$157.9
$140.8
PRO FORMA SALES (m):
Three Months Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Intersegment
Eliminations
Total
December 31, 2024
Sales
$59.1
$24.1
$72.4
$567.2
$3.6
—
$726.3
Large Dispositions (j)
—
—
—
(495.0
)
—
—
(495.0
)
Pro forma sales
$59.1
$24.1
$72.4
$72.2
$3.6
—
$231.3
September 30, 2024
Sales
$62.0
$27.2
$66.8
$30.1
$9.0
($0.1
)
$195.0
Pro forma sales
$62.0
$27.2
$66.8
$30.1
$9.0
($0.1
)
$195.0
December 31, 2023
Sales
$60.0
$28.1
$60.0
$310.5
$8.9
($0.1
)
$467.4
Large Dispositions (j)
—
—
—
(242.2
)
—
—
(242.2
)
Pro forma sales
$60.0
$28.1
$60.0
$68.3
$8.9
($0.1
)
$225.2
F
PRO FORMA SALES (m):
Year Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Intersegment
Eliminations
Total
December 31, 2024
Sales
$250.4
$100.8
$238.6
$643.8
$29.6
($0.2
)
$1,263.0
Large Dispositions (j)
—
—
—
(495.0
)
—
—
(495.0
)
Pro forma sales
$250.4
$100.8
$238.6
$148.8
$29.6
($0.2
)
$768.0
December 31, 2023
Sales
$264.1
$124.1
$235.5
$390.0
$43.7
($0.5
)
$1,056.9
Large Dispositions (j)
—
—
—
(242.2
)
—
—
(242.2
)
Pro forma sales
$264.1
$124.1
$235.5
$147.8
$43.7
($0.5
)
$814.7
PRO FORMA NET INCOME (n):
Three Months Ended
Year Ended
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
Net Income Attributable to Rayonier
Inc.
$327.1
$2.15
$28.8
$0.19
$126.9
$0.85
$359.1
$2.39
$173.5
$1.17
Large Dispositions (j)
(291.1
)
(1.88
)
—
—
(105.1
)
(0.70
)
(291.1
)
(1.91
)
(105.1
)
(0.70
)
Restructuring charges (h)
1.1
0.01
—
—
—
—
1.1
0.01
—
—
Net cost (recovery) on legal settlements
(a)
1.6
0.01
(12.0
)
(0.08
)
(0.2
)
—
(8.0
)
(0.05
)
(20.7
)
(0.14
)
Gain from terminated cash flow hedge
(o)
(1.6
)
(0.01
)
—
—
—
—
(1.6
)
(0.01
)
—
—
Costs related to disposition initiatives
(g)
—
—
0.9
0.01
—
—
1.6
0.01
—
—
Pension settlement charges, net of tax
(p)
—
—
0.3
—
2.0
0.01
4.8
0.03
2.0
0.01
Timber write-offs resulting from casualty
events (i)
—
—
—
—
—
—
—
—
2.3
0.02
Pro forma net income adjustments
attributable to noncontrolling interests (q)
3.9
—
0.1
—
1.7
—
3.9
—
1.5
—
Pro Forma Net Income
$41.1
$0.27
$18.1
$0.12
$25.4
$0.17
$69.9
$0.47
$53.5
$0.36
F
PRO FORMA OPERATING INCOME (LOSS) AND
ADJUSTED EBITDA (r) (k):
Three Months Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Corporate
and
Other
Total
December 31, 2024
Operating income (loss)
$18.0
($1.3
)
$14.2
$326.1
($0.1
)
($10.6
)
$346.2
Large Dispositions (j)
—
—
—
(291.1
)
—
—
(291.1
)
Restructuring charges (h)
—
—
—
—
—
1.1
1.1
Pro forma operating income (loss)
$18.0
($1.3
)
$14.2
$35.0
($0.1
)
($9.4
)
$56.3
Depreciation, depletion and
amortization
16.7
7.4
5.9
3.2
—
0.5
33.6
Non-cash cost of land and improved
development
—
—
—
25.2
—
—
25.2
Adjusted EBITDA
$34.7
$6.0
$20.0
$63.4
($0.1
)
($9.0
)
$115.1
September 30, 2024
Operating income (loss)
$19.8
$0.8
$8.9
$8.6
($0.1
)
($10.5
)
$27.6
Costs related to disposition initiatives
(g)
—
—
—
—
—
0.9
0.9
Pro forma operating income (loss)
$19.8
$0.8
$8.9
$8.6
($0.1
)
($9.6
)
$28.5
Depreciation, depletion and
amortization
18.1
7.8
5.6
1.5
—
0.4
33.5
Non-cash cost of land and improved
development
—
—
—
9.8
—
—
9.8
Adjusted EBITDA
$37.9
$8.7
$14.6
$19.9
($0.1
)
($9.2
)
$71.8
December 31, 2023
Operating income (loss)
$13.7
($2.5
)
$6.8
$137.9
$0.1
($10.8
)
$145.2
Large Dispositions (j)
—
—
—
(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
PRO FORMA OPERATING INCOME (LOSS) AND
ADJUSTED EBITDA (r) (k):
Year Ended
Southern Timber
Pacific Northwest
Timber
New Zealand Timber
Real Estate
Trading
Corporate
and
Other
Total
December 31, 2024
Operating income (loss)
$77.9
($6.3
)
$33.5
$340.4
($0.1
)
($42.9
)
$402.5
Costs related to disposition initiatives
(g)
—
—
—
—
—
1.6
1.6
Large Dispositions (j)
—
—
—
(291.1
)
—
—
(291.1
)
Restructuring charges (h)
—
—
—
—
—
1.1
1.1
Pro forma operating income (loss)
$77.9
($6.3
)
$33.5
$49.3
($0.1
)
($40.2
)
$114.1
Depreciation, depletion and
amortization
73.4
31.7
20.3
13.1
—
1.8
140.2
Non-cash cost of land and improved
development
—
—
—
44.4
—
—
44.4
Adjusted EBITDA
$151.3
$25.4
$53.8
$106.8
($0.1
)
($38.4
)
$298.8
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 (i)
—
—
2.3
—
—
—
2.3
Large Dispositions (j)
—
—
—
(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
(a)
“Net cost (recovery) on legal settlements”
reflects the net loss (gain) from litigation regarding insurance
claims.
(b)
“Capital expenditures” exclude timberland
acquisitions of $22.8 million and $14.1 million during the twelve
months ended December 31, 2024 and December 31, 2023,
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, 2024
includes a $1.6 million gain from a terminated cash flow hedge.
(e)
The twelve months ended December 31, 2024
includes a $1.2 million income tax benefit related to the pension
settlement.
(f)
The twelve months ended December 31, 2024
includes $8.0 million of net recoveries associated with legal
settlements, which is partially offset by $6.0 million of pension
settlement charges. The twelve months ended December 31, 2023
includes $20.7 million of net recoveries associated with legal
settlements, which is partially offset by $2.0 million of pension
settlement charges.
(g)
“Costs related to disposition initiatives”
include legal, advisory, and other due diligence costs incurred in
connection with the Company’s asset disposition plan, which was
announced in November 2023.
(h)
“Restructuring charges” include severance
costs related to workforce optimization initiatives.
(i)
“Timber write-offs resulting from casualty
events” includes the write-off of merchantable and pre-merchantable
timber volume damaged by casualty events that cannot be
salvaged.
(j)
“Large Dispositions” are defined as
transactions involving the sale of productive timberland assets
that exceed $20 million in size and do not reflect a demonstrable
premium relative to timberland value.
(k)
“Adjusted EBITDA” is defined as earnings
before interest, taxes, depreciation, depletion, amortization, the
non-cash cost of land and improved development, non-operating
income, costs related to disposition initiatives, restructuring
charges, timber write-offs resulting from casualty events 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.
(l)
“Cash interest paid, net” is presented net
of patronage refunds received of $8.3 million and $6.2 million
during the twelve months ended December 31, 2024 and December 31,
2023, respectively. In addition, cash interest paid, net is
presented net of cash interest received of $9.2 million and $2.4
million during the twelve months ended December 31, 2024 and
December 31, 2023, respectively.
(m)
“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.
(n)
“Pro forma net income” is defined as net
income attributable to Rayonier Inc. adjusted for its proportionate
share of the net costs (recoveries) associated with legal
settlements, costs related to disposition initiatives,
restructuring charges, gain from terminated cash flow hedge,
pension settlement charges, timber write-offs resulting from
casualty events 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.
(o)
“Gain from terminated cash flow hedge" is
the mark to market gain recognized in earnings when the hedged cash
flows will no longer occur.
(p)
“Pension settlement charges, net of tax"
reflects the net loss recognized in connection with the termination
and settlement of the Company’s pension plans.
(q)
“Pro forma net income adjustments
attributable to noncontrolling interests” are the proportionate
share of pro forma items that are attributable to noncontrolling
interests.
(r)
“Pro forma operating income (loss)” is
defined as operating income (loss) adjusted for costs related to
disposition initiatives, restructuring charges, timber write-offs
resulting from casualty events 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, 2024
(unaudited)
ADJUSTED EBITDA GUIDANCE (a):
2025 Guidance
Low
High
Net Income to Adjusted EBITDA
Reconciliation
Net income
$83.2
-
$105.1
Less: Net income attributable to
noncontrolling interests
(3.2
)
-
(3.9
)
Less: Net income attributable to
noncontrolling interests in the Operating Partnership
(1.0
)
-
(1.3
)
Net income attributable to Rayonier
Inc.
$79.0
-
$99.9
Interest expense, net
28.3
-
28.8
Interest and other miscellaneous income,
net
(10.0
)
-
(12.0
)
Income tax expense
7.0
-
8.1
Depreciation, depletion and
amortization
122.5
-
129.0
Non-cash cost of land and improved
development
39.0
-
41.0
Net income attributable to noncontrolling
interests
4.2
-
5.2
Adjusted EBITDA
$270.0
-
$300.0
Diluted Earnings per Share
$0.51
-
$0.64
(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 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/20250204886462/en/
Investors/Media Collin Mings 904-357-9100
investorrelations@rayonier.com
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