Rayonier (RYN) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income attributable was $28.8M ($0.19 per share), up from $19.2M ($0.13 per share) in Q3 2023, on $195.0M sales; nine-month net income was $32.0M, down from $46.6M year-over-year.

• Adjusted EBITDA for Q3 2024 was $71.8M, down from $78.9M in Q3 2023; nine-month Adjusted EBITDA was $183.7M, down from $202.9M year-over-year.

• Completed and pending timberland dispositions of ~200,000 acres for $495M, with $378M closed in Q4, advancing the $1B asset disposition plan.

• Dispositions expected to generate pro forma CAD per share accretion of 9% and concentrate the portfolio in higher-growth markets.

• Strategic focus on nimble capital allocation, balance sheet strength, and advancing Land-Based Solutions and Real Estate platforms.

Financial highlights

• Q3 2024 sales were $195.0M, down from $201.6M in Q3 2023; operating income was $27.6M, down from $35.4M; pro forma net income was $18.1M.

• Q3 2024 EPS was $0.19 (basic and diluted), up from $0.13 in Q3 2023; pro forma EPS was $0.12.

• Adjusted EBITDA for Q3 2024 was $71.8M, a 9% decrease year-over-year.

• Year-to-date cash provided by operations was $173.8M, with CAD at $105.7M, both down from prior year.

• Net debt at September 30, 2024 was $1,239.1M; cash and cash equivalents at quarter-end were $74.2M.

Outlook and guidance

• Full-year 2024 net income guidance is $343M–$359M, EPS $2.30–$2.40, and Adjusted EBITDA $275M–$290M, reflecting lower harvest volumes due to asset dispositions.

• Southern and Pacific Northwest Timber segments expect full-year Adjusted EBITDA slightly below prior guidance due to dispositions and weather impacts.

• New Zealand Timber expects full-year Adjusted EBITDA modestly below prior guidance due to lower carbon credit sales and elevated shipping costs.

• Real Estate segment is expected to achieve full-year Adjusted EBITDA within prior guidance, contingent on timing of large transactions.

• 2024 capital expenditures expected between $79M and $82M; real estate development investments projected at $30M–$34M.