Rayonier(RYN) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter net income attributable to Rayonier was $43.2 million, or $0.28 per share, on revenues of $177.5 million, compared to $28.8 million, or $0.19 per share, on revenues of $124.1 million in the prior year quarter[3] - Pro forma net income for the third quarter was $50.2 million, or $0.32 per share, significantly up from $11.1 million, or $0.07 per share, in the prior year period[4] - Adjusted EBITDA for the third quarter was $114.3 million, nearly doubling from $57.2 million in the prior year period[6] - Operating income for the same period was $41.7 million, up from $14.5 million in the previous quarter, reflecting a significant improvement in profitability[29] - Net income attributable to Rayonier Inc. was $43.2 million, compared to $408.7 million in the previous quarter, which included a gain on the sale of discontinued operations[29] - Net income for the nine months ended September 30, 2025, was $454.2 million, a significant increase from $35.8 million in the same period of 2024[40] - Cash provided by operating activities for the nine months ended September 30, 2025, was $204.9 million, compared to $173.8 million in 2024, reflecting improved operational efficiency[40] - The company reported a net gain of $404.4 million from the sale of discontinued operations during the nine months ended September 30, 2025[40] Segment Performance - Southern Timber segment sales increased by 7% to $66.8 million, with harvest volumes rising 24% to 1.94 million tons[8] - Pacific Northwest Timber segment sales decreased by 37% to $19.9 million, with harvest volumes down 34% to 210,000 tons[9] - Real Estate segment sales surged by $60.7 million to $90.8 million, driven by a significant increase in acres sold from 2,916 to 23,348 acres[10] - Southern Timber sales for Q3 2025 reached $66.8 million, up from $62.4 million in Q3 2024, while Pacific Northwest Timber sales decreased to $19.9 million from $31.6 million[44] - Real Estate segment reported sales of $90.8 million in Q3 2025, significantly higher than $30.1 million in Q3 2024[44] - Total sales for Q3 2025 were $177.5 million, compared to $124.1 million in Q3 2024, representing a 43% increase[44] Shareholder Actions - Rayonier repurchased 1,226,384 shares for $30.1 million at an average price of $24.55 per share during the quarter[5] - The company repurchased common shares under its repurchase program, totaling $67.7 million for the nine months ended September 30, 2025[40] - Total dividends paid for the nine months ended September 30, 2025, amounted to $195.4 million, an increase from $158.1 million in 2024[40] - The company issued an additional dividend of $1.80 per common share, consisting of both cash and common shares, paid on January 30, 2025[41] Cash and Equity Position - The company’s cash and cash equivalents increased to $919.6 million as of September 30, 2025, up from $303.1 million at the end of 2024[32] - Rayonier's total shareholders' equity rose to $2,278.7 million, compared to $1,769.3 million at the end of 2024, indicating strong financial health[32] - Rayonier's long-term debt decreased to $845.1 million from $1,044.4 million at the end of 2024, reflecting improved leverage[32] - The balance of cash, cash equivalents, and restricted cash at the end of the period was $920.3 million, a significant increase from $77.2 million at the end of September 2024[40] Future Outlook - The company expects full-year Adjusted EBITDA to be at or above the higher end of prior guidance, with fourth quarter net income projected between $13 million and $17 million[17] - Rayonier announced a merger of equals with PotlatchDeltic, expected to close in late Q1 or early Q2 2026[5] - The company is in the process of a proposed merger with PotlatchDeltic Corporation, which is expected to enhance future financial and operational results[24] - Rayonier's earnings guidance and future financial outcomes remain subject to various risks, including market conditions and regulatory approvals related to the merger[24] - Adjusted EBITDA guidance for Q4 2025 is projected to be between $50.0 million and $60.0 million[53] - Net income attributable to Rayonier Inc. for Q4 2025 is expected to range from $12.5 million to $17.0 million[53] - Pro forma net income for Q4 2025 is estimated to be between $17.3 million and $21.8 million[53] - Costs related to the merger with PotlatchDeltic are projected at $4.8 million for Q4 2025[53] - Diluted earnings per share for Q4 2025 is anticipated to be between $0.08 and $0.11[53] - Pro forma diluted earnings per share for Q4 2025 is expected to range from $0.11 to $0.14[53] Other Financial Metrics - The company utilizes non-GAAP financial measures such as "cash available for distribution" and "Adjusted EBITDA" to provide additional insights into its financial performance[26] - Cash Available for Distribution (CAD) for the nine months ended September 30, 2025, was $153.5 million, more than double the $77.1 million reported for the same period in 2024[47] - Capital expenditures from continuing operations for the nine months ended September 30, 2025, were $35.0 million, down from $40.3 million in 2024[40] - The company experienced a depreciation, depletion, and amortization expense of $81.7 million from continuing operations for the nine months ended September 30, 2025[40] - Cash interest received during the nine months ended September 30, 2025, was $15.0 million, compared to $4.8 million for the same period in 2024[51] Merger-Related Information - The merger with PotlatchDeltic is expected to close in late Q1 or early Q2 2026, with costs expected to increase prior to quarter-end[54] - The company recognized an asset impairment charge related to certain real estate assets acquired in the 2020 merger with Pope Resources[51] - Restructuring charges included severance costs related to workforce optimization initiatives[51]