Group 1: Earnings Performance - Rayonier reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.08, compared to earnings of $0.05 per share a year ago, representing an earnings surprise of -125% [1] - The company posted revenues of $82.9 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 47.20%, and down from year-ago revenues of $168.1 million [2] - Over the last four quarters, Rayonier has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Rayonier shares have lost about 6.1% since the beginning of the year, while the S&P 500 has declined by -5.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.13 on $165 million in revenues, and $0.55 on $677.23 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Building Products - Wood industry, to which Rayonier belongs, is currently in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Rayonier is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expectations of outperforming the market in the near future [6]

Financial Performance - Rayonier reported a first quarter net loss of $3.4 million, or $0.02 per share, on revenues of $82.9 million, compared to a net income of $1.4 million, or $0.01 per share, on revenues of $113.7 million in the prior year quarter [3][5]. - Adjusted EBITDA for the first quarter was $27.1 million, representing a 39% decline compared to $44.6 million in the prior year period [5][7]. - The company expects second quarter net income attributable to Rayonier of $3 to $8 million, with Adjusted EBITDA of $30 to $40 million [5]. - First quarter cash available for distribution (CAD) was $20.3 million, a decrease of $10.8 million compared to the prior year period [6]. - The company reported a net loss of $3.1 million for the three months ended March 31, 2025, compared to a net income of $2.3 million for the same period in 2024 [46]. - Total sales for the three months ended March 31, 2025, were $82.9 million, down 27.2% from $113.7 million in the same period of 2024 [49]. - Operating income for the three months ended March 31, 2025, was $0.1 million, a significant decrease from $8.6 million in the same period of 2024 [49]. - Dividends paid increased to $110.4 million for the three months ended March 31, 2025, compared to $72.3 million for the same period in 2024 [46]. - Pro forma net loss income attributable to Rayonier Inc. was $2.7 million in Q1 2025, compared to a profit of $1.2 million in Q1 2024 [54]. - Pro forma sales for Q1 2025 totaled $82.9 million, a decrease from $113.7 million in Q1 2024, reflecting a decline of 27.1% [53]. Segment Performance - Southern Timber segment sales decreased by 27% to $50.9 million, with harvest volumes down 21% to 1.58 million tons [8]. - Pacific Northwest Timber segment sales decreased by 15% to $21.4 million, with harvest volumes down 18% to 261,000 tons, but average delivered prices for domestic sawtimber increased by 7% [9][10]. - Real Estate segment sales decreased by $5.4 million to $10.2 million, with an operating loss of $1.0 million due to fewer acres sold [11][12]. - Southern Timber segment expects full-year harvest volumes of 6.9 to 7.0 million tons, with Adjusted EBITDA projected at $135 to $140 million, down from prior guidance [19]. - Pacific Northwest Timber segment anticipates full-year harvest volumes of approximately 0.9 million tons, with Adjusted EBITDA expected to be between $22 to $26 million, slightly up from previous guidance [20]. - Real Estate segment forecasts Adjusted EBITDA contribution of $90 to $100 million for the full year, reflecting a modest increase from prior guidance [21]. Guidance and Projections - The company revised its full-year 2025 guidance, expecting net income attributable to Rayonier of $424 to $458 million, or $2.71 to $2.93 per share, and Adjusted EBITDA of $215 to $235 million [5][18]. - Revised total Adjusted EBITDA guidance for 2025 is now $215 to $235 million, a decrease of $55 to $65 million from previous estimates [22]. - The company expects adjusted EBITDA guidance for 2025 to be between $215.0 million and $235.0 million, compared to prior guidance of $270.0 million to $300.0 million [58]. Cash Flow and Capital Management - Cash provided by operating activities decreased to $27.7 million in Q1 2025 from $52.3 million in Q1 2024, a decline of 47.1% [52]. - Cash available for distribution after real estate development investments was $16.2 million in Q1 2025, down 36.8% from $25.6 million in Q1 2024 [52]. - The company completed or announced pending dispositions totaling $1.45 billion, allowing for reduced leverage and capital return to shareholders [7]. - Rayonier repurchased 95,000 shares at an average price of $27.61 per share during the first quarter, totaling $2.6 million [16]. Asset and Equity Changes - Total assets decreased from $3,474.4 million as of December 31, 2024, to $3,351.4 million as of March 31, 2025, representing a decline of approximately 3.5% [40]. - Cash and cash equivalents decreased significantly from $303.1 million to $216.2 million, a reduction of about 28.7% [40]. - The company’s total shareholders' equity increased from $1,780.5 million as of December 31, 2024, to $1,925.3 million as of March 31, 2025, an increase of approximately 8.1% [40]. - Capital expenditures from continuing operations were $12.0 million for the three months ended March 31, 2025, compared to $15.3 million for the same period in 2024 [46]. - Capital expenditures for Q1 2025 were $12.0 million, a decrease from $15.3 million in Q1 2024, reflecting a reduction of 21.5% [52]. Discontinued Operations and Legal Matters - Income from discontinued operations, net of tax, includes income from the New Zealand joint venture, which is now classified as discontinued operations [28]. - Gain on sale of discontinued operations reflects the estimated gain from the sale of the New Zealand joint venture interest [59]. - Net cost on legal settlements indicates a net loss from litigation related to insurance claims [59]. - Restructuring charges include severance costs associated with workforce optimization initiatives [59]. - The company incurred restructuring charges of $1.1 million in Q1 2025, indicating ongoing efforts to optimize workforce [55]. Other Considerations - The company owns or leases approximately 2.5 million acres of timberlands across the U.S. South, U.S. Pacific Northwest, and New Zealand [29]. - The anticipated impact of increased duties on Canadian lumber is expected to positively influence log pricing in the Pacific Northwest segment [20]. - The company is experiencing lower non-timber income for full-year 2025 compared to the prior year [19]. - The company plans to provide quarterly guidance to better manage expectations around the variability of Real Estate segment results [25]. - Adjusted EBITDA is a non-GAAP measure used by management for strategic decisions and operational performance evaluation [59]. - Pro forma net income (loss) adjustments account for noncontrolling interests' share of specific pro forma items [59]. - Pro forma net income (loss) is adjusted for various non-operational items to provide a clearer view of core business operations [59].

Core Viewpoint - Rayonier, Inc. (RYN) has experienced a stock price increase of 9.6% over the past month, contrasting with a 2.5% decline in the industry, driven by the company's focus on unlocking long-term value through higher-and-better-use (HBU) development and advancements in biogenetics and cloning [1][8]. Group 1: Company Overview - Rayonier possesses a robust timberland portfolio across productive regions in the U.S. South, Pacific Northwest, and New Zealand, with a total of 1.75 million acres in the U.S. South, 308,000 acres in the U.S. Pacific Northwest, and 412,000 gross acres in New Zealand as of December 31, 2024 [3]. - The company is recognized as a leading "Pure Play" timber REIT, benefiting from significant growth in lumber production and capacity in the U.S. South, where approximately 71% of its timberlands are located in top quartile markets [3]. Group 2: Recent Developments - Rayonier has announced the sale of its 77% interest in a New Zealand joint venture for $710 million, allowing the company to concentrate on its core U.S. markets, with the transaction expected to close in 2025 [4]. - The company is actively exploring alternative uses for its timberlands, particularly in the Florida and Georgia coastal corridors, and is optimistic about the demand and value realizations for HBU properties [5]. Group 3: Financial Position - Rayonier's balance sheet is strong, with cash and cash equivalents reported at $323.2 million in Q4 2024, and a weighted average maturity of its debt portfolio of approximately four years, with no significant debt maturities until 2026 [7]. - The company’s well-staggered debt maturity profile provides financial flexibility to navigate external challenges and pursue growth opportunities [7]. Group 4: Market Outlook - The combination of Rayonier's strategic initiatives and favorable market conditions suggests that the upward trend in its stock price is likely to continue in the near term [8].

Core Insights - Rayonier Inc. has agreed to sell its 77% stake in a New Zealand joint venture to Ents LP for $710 million, with the transaction expected to close in 2025, pending regulatory approvals [1][2] - The sale will reduce Rayonier's exposure to log export markets and allow the company to focus on core U.S. markets with better long-term growth prospects [2][3] - The transaction is expected to be modestly accretive to pro forma CAD per share and significantly reduce pro forma Net Debt to Adjusted EBITDA to nearly 0.3X [3][4] Transaction Details - The sales price implies an enterprise value of $922 million for the New Zealand joint venture, which manages approximately 287,000 productive acres of timberlands as of December 31, 2024 [3] - Proceeds from the transaction will be used to reduce leverage, return capital to shareholders, and fund other capital allocation priorities, including a special dividend projected between $1.00 to $1.40 per share for 2025 [4][5] Management Commentary - Rayonier's management has successfully completed or announced pending dispositions totaling $1.45 billion, exceeding the original target of $1 billion, which has allowed for significant leverage reduction and enhanced shareholder value [5][6] - The company aims to capitalize on the disconnect between public and private timberland values while reducing leverage in a high-interest rate environment [6]

Core Viewpoint - Rayonier reported strong fourth-quarter earnings, beating estimates and showing significant year-over-year revenue growth, although some segments faced challenges [2][3]. Financial Performance - Rayonier's Q4 2024 pro-forma net income was 27 cents per share, exceeding the Zacks Consensus Estimate of 19 cents and up from 17 cents in the prior year [2]. - Total revenues reached $726.3 million, surpassing the Zacks Consensus Estimate of $203 million, and increased by 55.4% year-over-year [3]. - Adjusted EBITDA for Q4 was $115.1 million, up from $93.7 million in the previous year [3]. - For the full year 2024, pro forma net income per share was 47 cents, up from 36 cents, and total revenues were $1.26 billion, a 19.5% increase year-over-year [3]. Segment Performance - Southern Timber segment reported pro-forma operating income of $18 million, a 31.4% increase from the prior year, driven by higher non-timber income and lower costs [4]. - The Pacific Northwest Timber segment had a pro-forma operating loss of $1.3 million, an improvement from a loss of $2.5 million a year ago, attributed to lower costs and higher non-timber income [5]. - New Zealand Timber segment's pro forma operating income rose to $14.2 million from $6.8 million, benefiting from favorable foreign exchange impacts and higher volumes [6]. - Real Estate segment's pro-forma operating income increased to $35 million from $32.8 million, supported by higher weighted-average prices [7]. - The Trading segment reported a slight operating loss of $0.1 million compared to an operating income of $0.1 million in the prior year [7]. Balance Sheet - Rayonier ended Q4 2024 with $323.2 million in cash and cash equivalents, a significant increase from $74.2 million as of September 30, 2024 [8]. 2025 Outlook - Management projects full-year net income attributable to Rayonier between $79 million and $100 million, with EPS expected to be between 51 cents and 64 cents [9]. - Adjusted EBITDA is anticipated to range from $270 million to $300 million [9]. - The guidance excludes potential impacts from additional asset sales related to a $1 billion disposition target announced in November 2023 [10]. Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 41.38% recently [11]. VGM Scores - Rayonier has an average Growth Score of C, a Momentum Score of B, and a Value Score of D, placing it in the bottom 40% for the value investment strategy [12]. Overall Outlook - Estimates for Rayonier have been trending downward, indicating a potential in-line return in the coming months, with a Zacks Rank of 3 (Hold) [13].

Core Viewpoint - Rayonier Advanced Materials (RYAM) reported a narrower loss in Q4 2024 compared to the previous year, indicating improved operational performance despite flat sales year-over-year [1][12]. Financial Performance - RYAM reported a loss of 10 cents per share in Q4 2024, better than the Zacks Consensus estimate of a loss of 12 cents per share, and an adjusted loss of 22 cents per share in the same quarter last year [1][12]. - The company’s net sales were $422 million in Q4 2024, flat year-over-year, missing the Zacks Consensus Estimate of $436 million [3]. - The cost of sales decreased by 2.5% year-over-year to $385 million, while gross profit increased by 37% to $37 million, resulting in a gross margin of 8.8%, a 240-basis-point improvement year-over-year [3][4]. - Selling, general and administrative expenses surged by 53% year-over-year to $26 million, but operating income improved to $11 million from an operating loss of $61 million in Q4 2023 [4]. - Adjusted EBITDA rose by 38% year-over-year to $51 million, with an adjusted EBITDA margin of 12.1%, up from 8.8% in the previous year [4]. Segment Performance - The High Purity Cellulose segment reported sales of $338 million, down 3% year-over-year, with adjusted EBITDA increasing by 38% to $62 million [5][6]. - The Paperboard segment's sales increased by 9% to $60 million, with a 13% rise in sales volumes, although prices fell by 3% [7]. - The High-Yield Pulp segment saw sales rise by 28% to $32 million, driven by a 4% price increase and a 22.5% increase in volumes, but adjusted EBITDA remained negative at $8 million [8]. Cash Position - RYAM ended 2024 with cash and cash equivalents of $125 million, up from $76 million at the end of 2023, and net cash provided by operating activities was $203 million compared to $136 million in the prior year [9][10]. - Adjusted free cash flow increased to $128 million from $53 million in 2023 [9]. 2024 Performance Overview - For the full year 2024, RYAM reported an adjusted loss of five cents per share, better than the Zacks Consensus Estimate of a loss of eight cents, and a decrease in net sales by 0.8% year-over-year to $1.63 billion [12]. Guidance for 2025 - RYAM anticipates net custodial site costs of $20 - $22 million in 2025 due to the indefinite suspension of Temiscaming HPC operations [13]. - The company expects adjusted EBITDA to range between $215 million and $235 million in 2025, with stronger earnings anticipated in the second half of the year [15]. - Adjusted free cash flow is projected to be between $25 million and $45 million in 2025 [16]. Stock Performance - RYAM shares have increased by 97.1% over the past year, significantly outperforming the industry growth of 18.5% [17].

Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility through well-priced options [1][2] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1][2] - Trapping Value focuses on generating options income and capital preservation, with a team of analysts having over 40 years of combined experience [3] Group 2 - The Covered Calls Portfolio aims for lower volatility income investing with an emphasis on capital preservation [2][3] - The Fixed Income Portfolio is centered on acquiring securities that offer high income potential and are significantly undervalued compared to peers [2]

Timberland Holdings and Inventory - Rayonier owns, leases, or manages approximately 2.5 million acres of timberland and real estate, with 1.75 million acres in the U.S. South, 308,000 acres in the U.S. Pacific Northwest, and 412,000 gross acres in New Zealand[28]. - As of December 31, 2024, Rayonier's merchantable timber inventory is estimated at 95,479 thousand short green tons, with 69,876 thousand in the South (73%), 7,525 thousand in the Pacific Northwest (8%), and 18,078 thousand in New Zealand (19%)[42]. - As of December 31, 2024, the Southern timberlands acreage consisted of approximately 1.75 million acres, with an estimated sustainable yield of 6.5 to 6.9 million tons annually[45][46]. - The gross timber inventory and merchantable timber inventory of the Southern timberlands were 83 million tons and 70 million tons, respectively, as of September 30, 2024[48]. - The Pacific Northwest timberlands comprised approximately 308,000 acres, with a sustainable yield estimated at 115 to 135 MMBF (0.90 to 1.05 million tons) annually[50][51]. - The gross timber inventory and merchantable timber inventory of the Pacific Northwest timberlands were 1,981 MMBF and 971 MMBF, respectively, as of September 30, 2024[53]. - The New Zealand timberlands consisted of approximately 412,000 acres, with a sustainable yield estimated at 2.1 to 2.4 million cubic meters (2.4 to 2.7 million tons) annually[55][57]. - The gross timber inventory and merchantable timber inventory of the New Zealand timberlands were both 16.2 million cubic meters as of December 31, 2024[58]. - The company expects the average annual harvest volume across its timberlands over the next five years to be generally in line with its sustainable yield estimates[46][51][57]. Financial Performance - Rayonier's total sales for 2024 reached $1,263.0 million, a 19.5% increase from $1,056.9 million in 2023[208]. - Net income attributable to Rayonier Inc. for 2024 was $359.1 million, a substantial increase from $173.5 million in 2023, representing a growth of 106.5%[208]. - Adjusted EBITDA for 2024 was $298.8 million, slightly up from $296.5 million in 2023, indicating stable operational performance[208]. - Rayonier's operating income for 2024 was $402.5 million, significantly higher than $211.3 million in 2023, reflecting a 90.5% increase[208]. - The company reported liabilities related to environmental contamination and natural resource damages amounting to $7.9 million as of December 31, 2024[205]. Real Estate Development - The company has a multi-year pipeline of real estate development opportunities primarily in Florida, Georgia, and Washington, focusing on rural and recreational high-value property sales[32]. - The company’s Real Estate segment includes sales from properties sold for development, with categories such as Improved Development and Unimproved Development[64]. - In 2024, Rayonier achieved significant growth in the Real Estate segment, with total sales of $643.8 million in 2024, compared to $390.0 million in 2023, marking a 65.0% increase[208]. Environmental and Regulatory Considerations - The company is subject to extensive environmental laws and regulations that may restrict its ability to conduct business, potentially impacting timber harvesting and real estate development[128]. - Delays or restrictions in obtaining regulatory and environmental permits could adversely affect various operations, including timber harvesting[129]. - Environmental groups may increasingly intervene in regulatory processes, potentially delaying or preventing operations on the company's properties[130]. - The company has accrued amounts on its balance sheet for environmental liabilities associated with the Port Gamble site, which is undergoing remediation[80]. Safety and Employee Welfare - In 2024, Rayonier achieved zero fatalities or significant incidents, emphasizing its commitment to workplace safety[105]. - The company conducted 1,364 contractor safety meetings in 2024, highlighting its focus on safety management for both employees and contractors[107]. - Rayonier's employee wellness program, Stay Strong, promotes health and well-being through various resources and financial investments[108]. - The company offers a comprehensive benefits package, including medical, dental, vision, and a 401(k) retirement savings plan with company matching contributions[103]. Market and Economic Risks - The company is exposed to economic risks such as inflation and rising energy costs, which could negatively impact its financial condition and operations[114]. - The ongoing geopolitical tensions, including the Russia-Ukraine conflict, have increased volatility in global log and lumber markets, potentially impacting the company's operations and financial condition[119]. - Weather and climate change may limit timber harvest and sales, affecting the volume and value of timber that can be harvested[120]. - The company operates in highly competitive markets, particularly in the Timber and Real Estate segments, facing significant pressures from competitors with greater financial resources[118]. Capital Expenditures and Investments - Total capital expenditures for 2024 amounted to $79.8 million, a decrease of 1.9% from $81.4 million in 2023[227]. - Southern Timber capital expenditures increased to $48.4 million in 2024 from $46.5 million in 2023, driven by higher reforestation and silviculture expenditures[227]. - Real estate development investments rose to $25.8 million in 2024, compared to $23.1 million in 2023, reflecting ongoing project commitments[227]. Shareholder Returns and Dividends - The company declared ordinary cash dividends of $1.14 per common share for the years ended December 31, 2024, and 2023, maintaining the same dividend level[173]. - Rayonier's Board of Directors approved a new share repurchase program of up to $300 million, replacing the previous $100 million program, with no shares repurchased under the new program in Q4 2024[176].

Q4 2024 Financial Supplement February 2025 Safe Harbor Statement Q4 2024 Financial Supplement | February 2025 2 Table of Contents SECTION 1 Financial and Segment Information SECTION 2 Supplemental Information Q4 2024 Financial Supplement | February 2025 Forward-Looking Statements - Certain statements in this presentation regarding anticipated financial outcomes including Rayonier's earnings guidance, if any, business and market conditions, outlook, expected dividend rate, Rayonier's business strategies, exp ...

Rayonier Inc. (NYSE:RYN) Q4 2024 Earnings Conference Call February 6, 2025 10:00 AM ET Company Participants Collin Mings - Vice President, Capital Markets and Strategic Planning Mark McHugh - President and CEO April Tice - Senior Vice President and CFO Doug Long - Executive Vice President and CRO Conference Call Participants Matthew McKellar - RBC Mark Weintraub - Seaport Mike Roxland - Truist Anthony Pettinari - Citi Ketan Mamtora - BMO Capital Markets Operator Welcome, and thank you for joining Rayonier I ...