Rayonier(RYN)2025-04-30 20:27Financial 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].