Rayonier Inc. (NYSE:RYN) Q1 2023 Earnings Conference Call May 4, 2023 10:00 AM ET

Company Participants

Collin Mings – Vice President-Capital Markets and Strategic Planning

Dave Nunes – Chief Executive Officer

Mark McHugh – President and Chief Financial Officer

Doug Long – Executive Vice President and Chief Resource Officer

Conference Call Participants

Anthony Pettinari – Citi

Ketan Mamtora – BMO Capital Markets

Buck Horne – Raymond James

Paul Quinn – RBC Capital Markets

Operator

Welcome, and thank you for joining Rayonier’s First Quarter 2023 Teleconference Call. At this time all participants are in a listen-only mode. [Operator Instructions] Today’s conference is being recorded. If you have any objections, you may disconnect at this time.

Now I will turn the meeting over to Mr. Collin Mings, Vice President, Capital Markets and Strategic Planning.

Collin Mings

Thank you, and good morning. Welcome to Rayonier’s investor teleconference covering first quarter earnings. Our earnings statements and financial supplement were released yesterday afternoon and are available on our website at rayonier.com. I would like to remind you that in these presentations, we include forward-looking statements made pursuant to the safe harbor provisions of federal securities laws. Our earnings release and Forms 10-K and 10-Q filed with the SEC list some of the factors that may cause actual results to differ materially from the forward-looking statements we may make. They are also referenced on Page 2 of our financial supplement. Throughout these presentations, we will also discuss non-GAAP financial measures, which are defined and reconciled to the nearest GAAP measures in our earnings release and supplemental materials.

With that, let’s start our teleconference with opening comments from Dave Nunes, our CEO. Dave?

Dave Nunes

Thanks, Collin. Good morning, everyone. First, I’ll make some high-level comments before turning it over to Mark McHugh, President and Chief Financial Officer, to review our consolidated financial results; then we’ll ask Doug Long, Executive Vice President and Chief Resource Officer, to comment on our U.S. and New Zealand Timber results; and following the review of our Timber segments, Mark will discuss our real estate results as well as our outlook for the remainder of 2023.

For the first quarter, we generated adjusted EBITDA of $55 million and pro forma net income of $1.1 million or $0.01 per share as our team navigated numerous market challenges. The total adjusted EBITDA generated by our Timber segments collectively declined 30% relative to an extraordinarily strong first quarter 2022 amid weaker end market demand, continued macroeconomic headwinds and the harvest disruptions associated with tropical Cyclone Gabrielle, which hit New Zealand’s North Island in February. As anticipated, real estate closings were relatively light in the first quarter. However, our full year real estate pipeline remains relatively strong, and we continue to expect that closing activity will be heavily weighted toward the second half of the year.