Rayonier(RYN)2024-11-08 21:36Financial Performance - Rayonier Inc. reported sales of $194.993 million for the three months ended September 30, 2024, a decrease of 3% from $201.579 million in the same period of 2023[12]. - Operating income for the three months ended September 30, 2024, was $27.606 million, down 22% from $35.356 million in the prior year[12]. - Net income attributable to Rayonier Inc. for the three months ended September 30, 2024, was $28.758 million, an increase of 50% compared to $19.237 million in the same period of 2023[12]. - Comprehensive income attributable to Rayonier Inc. for the three months ended September 30, 2024, was $24.563 million, compared to $22.429 million in the same period of 2023[12]. - The company reported basic earnings per share of $0.19 for the three months ended September 30, 2024, compared to $0.13 in the same period of 2023[12]. - Net income for the second quarter of 2024 was $30,442, reflecting an increase from the previous quarter's net income of $3,035[17]. - Net income for the nine months ended September 30, 2024, was $35,783, a decrease of 27.4% compared to $49,274 in 2023[33]. - Adjusted EBITDA for the three months ended September 30, 2024, was $71.8 million, a decrease of 9.0% from $78.9 million in Q3 2023[149]. Assets and Liabilities - Total assets as of September 30, 2024, were $3.479 billion, a decrease from $3.648 billion as of December 31, 2023[14]. - Current liabilities decreased slightly to $139.462 million as of September 30, 2024, from $140.277 million at the end of 2023[14]. - Long-term debt, net, decreased to $1.285 billion as of September 30, 2024, from $1.366 billion as of December 31, 2023[14]. - Rayonier Inc. had cash and cash equivalents of $74.225 million as of September 30, 2024, down from $207.696 million at the end of 2023[14]. - Total current assets decreased to $277.1 million as of September 30, 2024, compared to $317.0 million at December 31, 2023[27]. - Total principal debt as of September 30, 2024, was $1,313,368,000, with total long-term debt amounting to $1,285,239,000 after accounting for current maturities and discounts[73]. Shareholder Equity and Dividends - Rayonier Inc. has a total of 149 million shares issued and outstanding as of September 30, 2024, an increase from 148 million shares at the end of 2023[14]. - As of June 30, 2024, total shareholders' equity increased to $1,821,065, up from $1,515,026 at the beginning of the year[17]. - The company declared dividends of $0.285 per share, totaling $42,433 for the quarter[17]. - The balance of retained earnings decreased to $243,861 as of September 30, 2024, down from $264,012[17]. - The company declared dividends of $0.285 per share, totaling $42,460 for the quarter ended September 30, 2023[21]. Revenue and Sales - Total sales for the nine months ended September 30, 2024, were $536.7 million, a decrease of 8.95% compared to $589.5 million for the same period in 2023[25]. - Total timber sales for the three months ended September 30, 2024, amounted to $137.537 million, a decrease from $143.236 million in the same period of 2023, representing a decline of about 4%[57]. - The company reported a total of $315.118 million in delivered wood sales for the nine months ended September 30, 2024[63]. - The total real estate sales for the nine months ended September 30, 2024, were $76.6 million, a decrease of 3.7% from $79.5 million in the same period of 2023[149]. Operating Expenses and Costs - Other operating expenses for the three months ended September 30, 2024, totaled $1,914, compared to $1,654 for the same period in 2023[105]. - The company incurred a pre-tax non-cash pension settlement charge of $5.7 million due to actuarial losses related to the termination of its Defined Benefit Plan[108]. - Costs related to disposition initiatives amounted to $1,553 for the nine months ended September 30, 2024, reflecting legal and advisory costs associated with the asset disposition plan[105]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, was $173,778, down from $208,936 for the same period in 2023[22]. - Capital expenditures for the nine months ended September 30, 2024, were $53,166, consistent with $53,128 for the same period in 2023[22]. - Cash used for investing activities decreased by $4.8 million from the prior year period, primarily due to lower cash used for timberland acquisitions of $10.4 million[194]. - The company expects full-year harvest volumes in the Southern Timber and Pacific Northwest Timber segments to be slightly below the lower end of prior guidance due to land dispositions and weather impacts[186]. Market and Segment Performance - The Southern Timber segment relies heavily on domestic markets for pulp and paper, while the Pacific Northwest Timber segment exports to China and Japan, indicating a diverse market strategy[137]. - The New Zealand Timber segment is impacted by lower construction activity in China, negatively affecting export market demand and prices[138]. - The company reported a total operating loss of $10.5 million in the corporate and other segment for the three months ended September 30, 2024, compared to a loss of $9.4 million in the same period of 2023[165]. Foreign Currency and Derivatives - The company hedges 50% to 90% of projected foreign exchange exposure for the next 12 months using derivative financial instruments[82]. - The company reported a loss of $21.38 million in interest expense related to interest rate products for the nine months ended September 30, 2024[85]. - The estimated net gain on derivatives contracts expected to be reclassified into earnings in the next 12 months is approximately $17.9 million[86].