Connect with us

News

Aircraft Thrust Reverser Actuation Systems Market – Actionable Research on COVID-19|To Tackle Adverse Climatic Conditions During Landing to Boost the Market Growth | Technavio

gbafNews28

The global aircraft thrust reverser actuation systems market size is poised to grow by USD 202.73 million during 2020-2024, progressing at a CAGR of almost 8% throughout the forecast period, according to the latest report by Technavio. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. Download a Free Sample of REPORT with COVID-19 Crisis and Recovery Analysis.

The need for thrust reverser to tackle adverse climatic conditions during landing has been identified as one of the critical aircraft thrust reverser actuation systems market growth drivers. Thrust reversers act as an additional braking system in instances where the main breaks fail during landing. They provide an additional stopping force on slippery and wet runways. For instance, airports located in Europe and North America experience severe ice accumulation on runways, which hinders the smooth landing of aircraft. In such situations, when the wheel brakes and aerodynamic braking systems fail to halt the aircraft, thrust reversers are very effective. Under normal weather conditions, pilots use thrust reversers to reduce the amount of required wheel braking, which helps extend the lifespan of wheel brakes. Moreover, in case of aborted landings and takeoffs, they provide safety and control margins.

Register for a free trial today and gain instant access to 17,000+ market research reports. Technavio’s SUBSCRIPTION platform

Report Highlights:

  • The major aircraft thrust reverser actuation systems market growth came from commercial aircraft segment. The increase in air passenger traffic due to global economic recovery has fueled commercial aircraft procurement. Moreover, as the airline industry is focused on reducing carbon emission levels, newer-generation fuel-efficient aircraft are replacing aging aircraft. Such developments will drive the global aircraft thrust reverser actuation systems market by the commercial aircraft segment over the forecast period.
  • North America was the largest aircraft thrust reverser actuation systems market in 2019, and the region will offer several growth opportunities to market vendors during the forecast period. The rising spending in the military aircraft market and the growing demand for fuel-efficient, newer-generation commercial aircraft have been significantly driving the aircraft thrust reverser actuation systems market growth in this region.
  • The global aircraft thrust reverser actuation systems market is concentrated. Arkwin Industries Inc., Diakont Advanced Technologies Inc., General Electric Co., Honeywell International Inc., Parker-Hannifin Corp., Safran SA, Technodinamika Holding Co., Triumph Group Inc., United Technologies Corp., and Woodward Inc. are some of the major market participants. To help clients improve their market position, this aircraft thrust reverser actuation systems market forecast report provides a detailed analysis of the market leaders.
  • As the business impact of COVID-19 spreads, the aircraft thrust reverser actuation systems market 2020-2024 is expected to have Negative and Inferior growth. As the pandemic spreads in some regions and plateaus in other regions, we revaluate the impact on businesses and update our report forecasts.

Read the full report here: https://www.technavio.com/report/report/aircraft-thrust-reverser-actuation-systems-market-industry-analysis

Use of Additive Manufacturing for Thrust Reverser Actuation System Components will be a Key Market Trend

The use of additive manufacturing for thrust reverser actuation system components is one of the critical aircraft thrust reverser actuation systems market trends. Additive manufacturing has helped vendors in producing intricately shaped and lightweight components in a cost-effective manner. The use of 3D printing in the aerospace industry guarantees reduced assembly time, material wastage, and general costs. The Canadian additive manufacturing company Burloak Technologies partnered with Safran Landing Systems, a global vendor in aircraft landing and braking technology, to develop 3D printed aircraft landing gear components. Safran Group, a global player in the aerospace industry, in March 2019, announced the opening of a USD 75.6 million greenfield additive manufacturing unit in Bordeaux, France, to enhance the production of thrust reverser actuation system components.

Technavios sample reports are free of charge and contain multiple sections of the report, such as the market size and forecast, drivers, challenges, trends, and more. Request a free sample report

Aircraft Thrust Reverser Actuation Systems Market 2020-2024: Key Highlights

  • CAGR of the market during the forecast period 2020-2024
  • Detailed information on factors that will assist aircraft thrust reverser actuation systems market growth during the next five years
  • Estimation of the aircraft thrust reverser actuation systems market size and its contribution to the parent market
  • Predictions on upcoming trends and changes in consumer behavior
  • The growth of the aircraft thrust reverser actuation systems market
  • Analysis of the markets competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of aircraft thrust reverser actuation systems market vendors

Buy 1 Technavio report and get the second for 50% off. Buy 2 Technavio reports and get the third for free.

View market snapshot before purchasing

Executive Summary

  • Market Overview

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 – 2024

Five Forces Analysis

  • Five Forces Summary
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

Market Segmentation by Type

  • Market segments
  • Comparison by Type placement
  • Commercial aircraft – Market size and forecast 2019-2024
  • Business jet – Market size and forecast 2019-2024
  • Military aircraft – Market size and forecast 2019-2024
  • Market opportunity by Type

Customer landscape

  • Overview

Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • North America – Market size and forecast 2019-2024
  • Europe – Market size and forecast 2019-2024
  • APAC – Market size and forecast 2019-2024
  • South America – Market size and forecast 2019-2024
  • MEA – Market size and forecast 2019-2024
  • Key leading countries
  • Market opportunity by geography

Drivers, Challenges, and Trends

  • Market drivers
  • Volume driver – Demand led growth
  • Volume driver – Supply led growth
  • Volume driver – External factors
  • Volume driver – Demand shift in adjacent markets
  • Price driver – Inflation
  • Price driver – Shift from lower to higher priced units
  • Market challenges
  • Market trends

Vendor Landscape

  • Overview
  • Vendor landscape
  • Landscape disruption

Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • Arkwin Industries Inc.
  • Diakont Advanced Technologies Inc.
  • General Electric Co.
  • Honeywell International Inc.
  • Parker-Hannifin Corp.
  • Safran SA
  • Technodinamika Holding Co.
  • Triumph Group Inc.
  • United Technologies Corp.
  • Woodward Inc.

Appendix

  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavios report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavios comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Technavio Research

Jesse Maida

Media & Marketing Executive

US: +1 844 364 1100

UK: +44 203 893 3200

Email: [email protected]

Website: www.technavio.com/

News

Rayonier Reports Third Quarter 2020 Results

gbafNews28

Rayonier Inc. (NYSE:RYN) today reported third quarter net loss attributable to Rayonier of ($0.8) million, or ($0.01) per share, on revenues of $198.9 million. This compares to net loss attributable to Rayonier of ($0.4) million, or $0.00 per share, on revenues of $156.4 million in the prior year quarter. The third quarter results included costs related to the merger with Pope Resources1 of $0.4 million and timber write-offs resulting from casualty events2 attributable to Rayonier of $7.9 million. Excluding these items, pro forma net income (loss)3 was $7.5 million, or $0.06 per share, versus ($0.4) million, or $0.00 per share, in the prior year period.

The following table summarizes the current quarter and comparable prior year period results:

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(millions of dollars, except earnings per share (EPS))

September 30, 2020

 

September 30, 2019

 

 

 

$

 

EPS

 

$

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$198.9

 

 

 

 

$156.4

 

 

 

 

 

Sales attributable to noncontrolling interest in Timber Funds

(7.7

)

 

Pro forma revenues3

$191.2

 

 

 

 

$156.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Rayonier

($0.8

)

 

($0.01

)

 

($0.4

)

 

 

 

 

Costs related to the merger with Pope Resources1

0.4

 

 

 

 

 

 

 

 

 

Timber write-offs resulting from casualty events2 attributable to Rayonier

7.9

 

 

0.07

 

 

 

 

 

 

 

Pro forma net income (loss)3

$7.5

 

 

$0.06

 

 

($0.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Third quarter operating income was $1.8 million versus $11.0 million in the prior year period. The current quarter operating income included costs related to the merger with Pope Resources1 of $0.4 million and timber write-offs resulting from casualty events2 of $15.2 million (of which $7.9 million was attributable to Rayonier). Excluding these items and adjusting for the operating loss attributable to noncontrolling interest in Timber Funds, current quarter pro forma operating income3 was $20.3 million. Third quarter Adjusted EBITDA3 was $67.2 million versus $43.2 million in the prior year period.

The following table summarizes operating income (loss), pro forma operating income (loss)3 and Adjusted EBITDA3 for the current quarter and comparable prior year period:

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Operating Income (Loss)

 

Pro forma Operating Income (Loss)3

 

Adjusted EBITDA3

(millions of dollars)

2020

 

2019

 

2020

 

2019

 

2020

2019

Southern Timber

$5.1

 

 

$9.5

 

 

$11.1

 

 

$9.5

 

 

$26.1

 

 

$22.5

 

Pacific Northwest Timber

(1.8

)

 

(3.6

)

 

(1.8

)

 

(3.6

)

 

9.1

 

 

2.7

 

New Zealand Timber

10.7

 

 

10.1

 

 

10.7

 

 

10.1

 

 

18.1

 

 

17.7

 

Timber Funds

(12.4

)

 

 

 

(0.3

)

 

 

 

0.2

 

 

 

Real Estate

9.5

 

 

0.4

 

 

9.5

 

 

0.4

 

 

22.2

 

 

5.4

 

Trading

(0.6

)

 

 

 

(0.6

)

 

 

 

(0.6

)

 

 

Corporate and other

(8.7

)

 

(5.4

)

 

(8.3

)

 

(5.4

)

 

(7.9

)

 

(5.1

)

Total

$1.8

 

 

$11.0

 

 

$20.3

 

 

$11.0

 

 

$67.2

 

 

$43.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-date cash provided by operating activities was $138.0 million versus $164.2 million in the prior year period. Cash available for distribution (CAD)3 of $124.2 million increased $8.6 million versus the prior year period primarily due to higher Adjusted EBITDA3 ($10.1 million), lower cash taxes paid ($0.7 million) and lower capital expenditures ($2.2 million), partially offset by higher cash interest paid ($4.4 million).

We delivered strong operating results across our segments in the third quarter despite ongoing challenges associated with the COVID-19 pandemic, said David Nunes, President and CEO. Both our U.S. and New Zealand timber operations remained fully-operational throughout the third quarter as we continued to follow enhanced safety protocols to protect our employees, contractors and customers. During the quarter, we also contended with several casualty events, including a hurricane that impacted properties in our Southern Timber segment and wildfires that impacted properties in our Timber Funds segment. Fortunately, no Rayonier employees were injured during these events. While our third quarter results were negatively impacted by inventory write-downs due to damage sustained to standing timber on these properties, Im pleased that our team was able to quickly mobilize, assess the damage to our lands and execute a plan to maximize salvage opportunities. Overall, Ive been very encouraged by the resiliency of our business as well as the dedication of our employees as weve navigated these various operational challenges.

Notably, each of our operating segments registered an increase in Adjusted EBITDA versus the prior year quarter, continued Nunes. Southern Timber Adjusted EBITDA improved 16% relative to the prior year quarter, as strong demand for sawlogs amid surging lumber prices resulted in a 16% increase in harvest volumes and an 8% increase in sawtimber stumpage prices. In Pacific Northwest Timber, Adjusted EBITDA more than tripled versus the prior year quarter, as an additional 55,000 tons of harvest volume resulting from the acquisition of Pope Resources was augmented by an 18% increase in weighted-average log prices. New Zealand Timber Adjusted EBITDA improved 2% relative to the prior year quarter, as lower log prices were offset by a 3% increase in harvest volumes and higher carbon credit sales. Real Estate also delivered another strong quarter as Adjusted EBITDA rose significantly versus the prior year quarter driven primarily by strong rural sales demand.

Hurricane & Wildfire Update

During the third quarter, properties within our Southern Timber and Timber Funds segments were impacted by hurricane and wildfire events, respectively. In our Southern Timber segment, Hurricane Laura made landfall in Louisiana on August 27th as a Category 4 hurricane with 150mph sustained winds, impacting nearly 8,000 acres of our timberland properties in the state. Initial damage assessments indicated that approximately 4,900 acres of pine plantations and 2,900 acres of natural stands sustained severe damage. Of the approximately 4,900 acres of pine plantations, we anticipate being able to salvage approximately 1,000 acres, weather permitting, based on existing mill quotas and the condition of the damaged timber. We do not expect to be able to salvage any of the natural stands. As a result of the hurricane, we wrote off timber basis in the amount of $6.0 million during the third quarter.

In our Timber Funds segment, the Beachie Creek fire in Oregon spread through approximately 9,000 acres of land owned by ORM Timber Fund II, which Rayonier manages and in which Rayonier holds a 20% economic interest, and the Slater fire in Oregon spread through approximately 1,000 acres of land owned by ORM Timber Fund IV, which Rayonier manages and in which Rayonier holds a 15% economic interest. Based on the severity of the damage sustained to these properties, as well as the widespread impact on other timberland owners throughout the Pacific Northwest, we estimate that approximately 60% of the damaged merchantable timber will be salvageable. As a result of the wildfires, we wrote off timber basis of approximately $9.2 million (including $8.8 million in ORM Timber Fund II and $0.4 million in ORM Timber Fund IV) during the third quarter, of which approximately $7.3 million was attributable to the non-controlling interest in the Timber Funds and $1.9 million was attributable to Rayonier.

Due to the nature of these casualty events and the infrequency with which they materially impact our results, we have included these charges as a pro forma item in our third quarter results.

Southern Timber

Third quarter sales of $47.7 million increased $6.4 million, or 15%, versus the prior year period primarily due to higher volumes, partially offset by lower pipeline easement revenue. Harvest volumes increased 16% to 1.48 million tons versus 1.28 million tons in the prior year period due to strong demand for sawtimber and pulpwood products. Average pine sawtimber stumpage prices increased 8% to $25.02 per ton versus $23.16 per ton in the prior year period, primarily due to improved demand for domestic and export grade timber coupled with favorable geographic mix. Average pine pulpwood stumpage prices were flat at $15.50 per ton versus $15.53 per ton in the prior year period. Overall, weighted-average stumpage prices (including hardwood) increased 5% to $18.88 per ton versus $18.05 per ton in the prior year period, primarily driven by higher sawtimber prices coupled with an 8% increase in sawtimber mix. Operating income of $5.1 million decreased $4.4 million versus the prior year period due to the write-off of timber basis as a result of Hurricane Laura ($6.0 million) and lower non-timber income ($2.9 million), partially offset by higher volumes ($1.6 million), higher net stumpage prices ($1.2 million), lower lease and other expenses ($1.6 million) and lower depletion rates ($0.1 million).

Third quarter Adjusted EBITDA3 of $26.1 million was $3.6 million above the prior year period.

Pacific Northwest Timber

Third quarter sales of $28.9 million increased $10.1 million, or 54%, versus the prior year period. Harvest volumes increased 33% to 346,000 tons versus 261,000 tons in the prior year period primarily due to improved sawtimber demand coupled with 55,000 tons of incremental volume from the acquired Pope Resources timberlands. Average delivered sawtimber prices increased 19% to $93.34 per ton versus $78.26 per ton in the prior year period, primarily due to improved domestic lumber markets coupled with a higher percentage of Douglas-fir sawtimber. Average delivered pulpwood prices decreased 15% to $32.12 per ton versus $37.87 per ton in the prior year period, as the deterioration of pulpwood export markets and higher lumber mill residuals resulted in excess domestic supply. Operating loss of $1.8 million improved $1.7 million versus the prior year period due to higher net stumpage prices ($5.0 million) and higher non-timber income ($0.8 million), partially offset by higher depletion rates ($2.6 million) and higher overhead and road maintenance costs ($1.4 million).

Third quarter Adjusted EBITDA3 of $9.1 million was $6.4 million above the prior year period.

New Zealand Timber

Third quarter sales of $62.8 million increased $0.8 million, or 1%, versus the prior year period. Harvest volumes increased 3% to 776,000 tons versus 754,000 tons in the prior year period. Average delivered prices for export sawtimber decreased 1% to $94.42 per ton versus $95.51 per ton in the prior year period, while average delivered prices for domestic sawtimber decreased 7% to $70.24 per ton versus $75.29 per ton in the prior year period. The slight decrease in export sawtimber prices was driven primarily by a buildup of China log inventories and continued competition from lower-cost European log and lumber imports into China. The decrease in domestic sawtimber prices (in U.S. dollar terms) was partially offset by the slight rise in the NZ$/US$ exchange rate (US$0.661 per NZ$1.00 versus US$0.655 per NZ$1.00). Excluding the impact of foreign exchange rates, domestic sawtimber prices decreased 8% versus the prior year period, generally lagging the prior negative trend in the export market. Operating income of $10.7 million increased $0.6 million versus the prior year period as a result of higher volumes ($0.4 million), higher carbon credit sales ($0.9 million) and lower depletion rates ($0.5 million), partially offset by lower net stumpage prices ($1.0 million) and unfavorable foreign exchange impacts ($0.2 million).

Third quarter Adjusted EBITDA3 of $18.1 million was $0.4 million above the prior year period.

Timber Funds

The Timber Funds segment generated third quarter sales of $9.9 million on harvest volumes of 110,000 tons, and operating loss of $12.4 million. Third quarter operating loss included timber write-offs of $9.2 million resulting from two fires in Oregon.2 Adjusting for the portion of the Timber Funds segment attributable to noncontrolling interests and fee revenue to Rayonier, and excluding timber write-offs resulting from the Oregon fires, pro forma sales3 and pro forma operating loss3 were $2.2 million and ($0.3) million, respectively.

Third quarter Adjusted EBITDA3 was $0.2 million.

Real Estate

Third quarter sales of $28.8 million increased $19.6 million versus the prior year period while operating income of $9.5 million increased $9.0 million versus the prior year period due to a higher number of acres sold (10,562 acres sold versus 1,345 acres sold in the prior year period), partially offset by a decrease in weighted-average prices ($2,332 per acre versus $6,513 per acre in the prior year period).

Improved Development sales of $1.3 million included $1.0 million of sales in the Wildlight development project north of Jacksonville, Florida consisting of 15 residential lots ($65,000 per lot or $377,000 per acre) in addition to a $0.3 million sale of development property in Kitsap County, Washington ($247,000 per acre). This compares to prior year period sales of $4.5 million, which consisted of 21.7 acres of commercial property ($207,000 per acre) in the Wildlight development project.

There were no Unimproved Development sales in the third quarter or the prior year period.

Rural sales of $23.2 million consisted of 10,482 acres at an average price of $2,218 per acre. This compares to prior year period sales of $4.2 million, which consisted of 1,291 acres at an average price of $3,262 per acre.

Timberland and Non-Strategic sales in the current quarter and the prior year quarter were negligible.

During the quarter, we began reporting Conservation Easement sales as a new sales category within the Real Estate segment. Since Conservation Easement sales involve the sale of certain land use rights rather than an outright sale of the land, these sales are not reflected in our average price per acre metrics for the Real Estate segment. Conservation Easement sales during the quarter were $3.1 million and covered 2,150 acres in Kitsap and Mason Counties, Washington ($1,450 per acre). There were no Conservation Easement sales in the prior year period.

Third quarter Adjusted EBITDA3 of $22.2 million was $16.8 million above the prior year period.

Trading

Third quarter sales of $22.2 million decreased $3.0 million versus the prior year period due to lower volumes and prices. Sales volumes decreased 7% to 252,000 tons versus 270,000 tons in the prior year period. The Trading segment generated operating loss of $0.6 million versus breakeven results in the prior year period, due to lower trading margins resulting from lower volumes and prices as well as higher shipping expenses.

Other Items

Third quarter corporate and other operating expenses of $8.7 million increased $3.3 million versus the prior year period, primarily due to higher employee benefit costs ($1.8 million), legal expenses ($0.7 million), costs related to the Pope Resources merger ($0.4 million) and other overheads ($0.4 million). The increase in employee benefit costs was primarily driven by an increase in the annual bonus accrual due to an improved outlook for the year as well as additional headcount from the Pope Resources merger.

Third quarter interest expense of $10.4 million increased $2.4 million versus the prior year period due to higher outstanding debt following the closing of the Pope Resources merger.

Third quarter income tax expense of $0.7 million decreased $1.5 million versus the prior year period. The New Zealand subsidiary is the primary driver of income tax expense.

ATM Equity Offering Program

In September, we established an at-the-market (ATM) equity offering program under which we may sell common shares, from time to time, having an aggregate sales price of up to $300 million. There were no shares issued under the ATM program during the three months ended September 30, 2020, and all $300 million authorized under the program remained available for issuance.

Outlook

Based on our year-to-date results and expectations for the fourth quarter, we anticipate that full-year Adjusted EBITDA will be modestly above the high end of our prior guidance while pro forma EPS will be around the high end of our prior guidance, stated Nunes. In our Southern Timber segment, we expect full-year Adjusted EBITDA toward the higher end of our prior guidance based on continued strong sawtimber demand and pricing, partially offset by lower-priced salvage volume and market impacts from Hurricane Laura. In our Pacific Northwest Timber segment, we expect full-year Adjusted EBITDA well above our prior guidance based on continued strong log demand and pricing. In our New Zealand Timber segment, we expect full-year Adjusted EBITDA near the high end of our prior guidance as our operations continue to normalize following the COVID-19 disruptions earlier this year, with modest improvements anticipated in both export and domestic pricing. In our Real Estate segment, we expect full-year Adjusted EBITDA near the high end of our prior guidance, as we continue to see strong demand and a favorable transaction pipeline across our sales categories. Overall, we remain very encouraged by the stability of our business and the strength of our end markets despite the ongoing uncertainty associated with the COVID-19 pandemic.

Conference Call

A conference call and live audio webcast will be held on Thursday, October 29, 2020 at 10:00 AM EDT to discuss these results.

Access to the live audio webcast will be available at www.rayonier.com. A replay of the webcast will be archived on the Companys website and available shortly after the call.

Investors may listen to the conference call by dialing 800-857-5752 (domestic) or 312-470-7110 (international), passcode: Rayonier. A replay of the conference call will be available one hour following the call until Saturday, November 28, 2020 by dialing 800-835-5808 (domestic) or 203-369-3353 (international), passcode: 3360.

Complimentary copies of Rayonier press releases and other financial documents are also available by calling (904) 357-9100.

1Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.

2Timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which cannot be salvaged.

3Pro forma net income (loss), Pro forma revenues (sales), Pro forma operating income (loss), Adjusted EBITDA and CAD are non-GAAP measures defined and reconciled to GAAP in the attached exhibits.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of September 30, 2020, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.75 million acres), U.S. Pacific Northwest (507,000 acres) and New Zealand (416,000 acres). The Company also acts as the managing member in a private equity timber fund business with three funds comprising approximately 141,000 acres. On a look-through basis, the Companys ownership in the timber fund business equates to approximately 17,000 acres. More information is available at www.rayonier.com.

_______________________________________________________________________

Forward-Looking Statements – Certain statements in this press release regarding anticipated financial outcomes including Rayoniers earnings guidance, if any, business and market conditions, outlook, expected dividend rate, Rayoniers business strategies, including the recent acquisition of Pope Resources, expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of Rayoniers business strategies, and other similar statements relating to Rayoniers future events, developments or financial or operational performance or results, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as may, will, should, expect, estimate, believe, intend, project, anticipate and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While management believes that these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements.

The following important factors, among others, could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document: the cyclical and competitive nature of the industries in which we operate; fluctuations in demand for, or supply of, our forest products and real estate offerings, including any downturn in the housing market; entry of new competitors into our markets; changes in global economic conditions and world events; business disruptions arising from public health crises and outbreaks of communicable diseases, including the current outbreak of the virus known as the novel coronavirus; fluctuations in demand for our products in Asia, and especially China; the uncertainties of potential impacts of climate-related initiatives; the cost and availability of third party logging and trucking services; the geographic concentration of a significant portion of our timberland; our ability to identify, finance and complete timberland acquisitions; changes in environmental laws and regulations regarding timber harvesting, delineation of wetlands, endangered species and development of real estate generally, that may restrict or adversely impact our ability to conduct our business, or increase the cost of doing so; adverse weather conditions, natural disasters and other catastrophic events such as hurricanes, wind storms and wildfires; the lengthy, uncertain and costly process associated with the ownership, entitlement and development of real estate, especially in Florida and Washington, including changes in law, policy and political factors beyond our control; the availability of financing for real estate development and mortgage loans; changes in tariffs, taxes or treaties relating to the import and export of our products or those of our competitors; changes in key management and personnel; and our ability to meet all necessary legal requirements to continue to qualify as a real estate investment trust (REIT) and changes in tax laws that could adversely affect beneficial tax treatment.

For additional factors that could impact future results, please see Item 1A – Risk Factors in the Companys most recent Annual Report on Form 10-K and similar discussion included in other reports that we subsequently file with the Securities and Exchange Commission (the SEC). Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent reports filed with the SEC.

Non-GAAP Financial Measures “ To supplement Rayoniers financial statements presented in accordance with generally accepted accounting principles in the United States (GAAP), Rayonier uses certain non-GAAP measures, including cash available for distribution, pro forma sales, pro forma operating income (loss), pro forma net (loss) income, and Adjusted EBITDA, which are defined and further explained in this communication. Reconciliation of such measures to the nearest GAAP measures can also be found in this communication. Rayoniers definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

 

RAYONIER INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

September 30, 2020 (unaudited)

(millions of dollars, except per share information)

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2020

 

2020

 

2019

 

2020

 

2019

 

SALES

$198.9

 

 

$195.6

 

 

$156.4

 

 

$653.6

 

 

$532.8

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

Cost of sales

(180.9

)

 

(154.9

)

 

(134.5

)

 

(545.3

)

 

(418.2

)

Selling and general expenses

(14.5

)

 

(12.5

)

 

(10.1

)

 

(37.1

)

 

(30.9

)

Other operating expense, net

(1.7

)

 

(16.5

)

 

(0.8

)

 

(19.2

)

 

(2.8

)

OPERATING INCOME

1.8

 

 

11.7

 

 

11.0

 

 

52.0

 

 

80.9

 

Interest expense

(10.4

)

 

(9.8

)

 

(8.0

)

 

(28.4

)

 

(23.6

)

Interest and other miscellaneous (expense) income, net

(0.2

)

 

1.5

 

 

0.8

 

 

1.2

 

 

3.1

 

(LOSS) INCOME BEFORE INCOME TAXES

(8.8

)

 

3.4

 

 

3.8

 

 

24.8

 

 

60.4

 

Income tax expense

(0.7

)

 

(2.9

)

 

(2.3

)

 

(7.4

)

 

(10.2

)

NET (LOSS) INCOME

(9.5

)

 

0.5

 

 

1.5

 

 

17.4

 

 

50.2

 

Less: Net loss (income) attributable to noncontrolling interests in the Operating Partnership

 

 

(0.2

)

 

 

 

(0.2

)

 

 

Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates

8.7

 

 

1.4

 

 

(1.9

)

 

9.6

 

 

(7.1

)

NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.

($0.8

)

 

$1.7

 

 

($0.4

)

 

$26.8

 

 

$43.1

 

(LOSS) EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per share attributable to Rayonier Inc.

($0.01

)

 

$0.01

 

 

 

 

$0.20

 

 

$0.33

 

Diluted (loss) earnings per share attributable to Rayonier Inc.

($0.01

)

 

$0.01

 

 

 

 

$0.20

 

 

$0.33

 

 

 

 

 

 

 

 

 

 

 

Pro forma net income (loss) per share (a)

$0.06

 

 

$0.11

 

 

 

 

$0.17

 

$0.33

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares used for determining

 

 

 

 

 

 

 

 

 

Basic EPS

136,351,271

 

 

133,318,209

 

 

129,325,181

 

 

132,948,124

 

 

129,293,562

 

Diluted EPS (b)

136,351,271

 

 

135,957,026

 

 

129,325,181

 

 

135,460,456

 

 

129,652,462

 

(a)

Pro forma net income (loss) per share is a non-GAAP measure. See Schedule F for definition and reconciliation to the nearest GAAP measure.

(b)

Diluted earnings per share is calculated based on the weighted average number of shares of common stock outstanding combined with the incremental weighted average number of shares that would have been outstanding assuming all potentially dilutive securities (including redeemable operating partnership units) were converted into shares of common stock at the earliest date possible. As of September 30, 2020, there were 136,518,006 common shares and 4,445,153 redeemable operating partnership units outstanding.

A

 

RAYONIER INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2020 (unaudited)

(millions of dollars)

 

 

 

 

September 30,

 

December 31,

 

 

2020

 

2019

 

Assets

 

 

 

 

Cash and cash equivalents (excluding Timber Funds)

 

$75.2

 

 

$68.7

 

Cash and cash equivalents (Timber Funds)

 

3.0

 

 

 

Assets held for sale

 

9.7

 

 

 

Other current assets

 

80.9

 

 

57.3

 

Timber and timberlands, net of depletion and amortization

 

3,284.7

 

 

2,482.0

 

Higher and better use timberlands and real estate development investments

 

108.3

 

 

81.8

 

Property, plant and equipment

 

39.9

 

 

31.9

 

Less – accumulated depreciation

 

(11.1

)

 

(9.6

)

Net property, plant and equipment

 

28.8

 

 

22.3

 

Restricted cash

 

0.5

 

 

1.2

 

Right-of-use assets

 

100.3

 

 

99.9

 

Other assets

 

35.6

 

 

47.8

 

 

 

$3,727.0

 

 

$2,861.0

 

Liabilities, Noncontrolling Interests in the Operating Partnership and Shareholders Equity

 

 

 

 

Current maturities of long-term debt (excluding Timber Funds)

 

 

 

82.0

 

Other current liabilities

 

92.1

 

 

69.2

 

Long-term debt (excluding Timber Funds)

 

1,318.2

 

 

973.1

 

Long-term debt (Timber Funds)

 

60.4

 

 

 

Long-term lease liability

 

91.1

 

 

90.5

 

Other non-current liabilities

 

196.6

 

 

108.6

 

Noncontrolling interests in the Operating Partnership

 

117.5

 

 

 

Total Rayonier Inc. shareholders equity

 

1,429.2

 

 

1,440.0

 

Noncontrolling interests in consolidated affiliates

 

421.9

 

 

97.6

 

Total shareholders equity

 

1,851.1

 

 

1,537.6

 

 

 

$3,727.0

 

 

$2,861.0

 

 

B

 

RAYONIER INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY

September 30, 2020 (unaudited)

(millions of dollars, except share information)

 

Common Shares

 

Retained Earnings

 

Accumulated Other Comprehensive (Loss) Income

 

Noncontrolling Interests in consolidated affiliates

 

Shareholders Equity

 

Shares

 

Amount

 

 

Balance, January 1, 2020

129,331,069

 

 

$888.2

 

 

$583.0

 

 

($31.2

)

 

$97.6

 

 

$1,537.6

 

Net income

 

 

 

 

25.9

 

 

 

 

0.5

 

 

26.4

 

Dividends ($0.27 per share)

 

 

 

 

(34.8

)

 

 

 

 

 

(34.8

)

Issuance of shares under incentive stock plans

2,407

 

 

0.1

 

 

 

 

 

 

 

 

0.1

 

Stock-based compensation

 

 

1.5

 

 

 

 

 

 

 

 

1.5

 

Repurchase of common shares made under repurchase program

(152,223

)

 

 

 

(3.2

)

 

 

 

 

 

(3.2

)

Other (a)

(14

)

 

 

 

 

 

(116.1

)

 

(11.8

)

 

(127.9

)

Balance, March 31, 2020

129,181,239

 

 

$889.8

 

 

$570.9

 

 

($147.3

)

 

$86.3

 

 

$1,399.7

 

Issuance of shares in merger with Pope Resources

7,181,071

 

 

172.4

 

 

 

 

 

 

 

 

172.4

 

Net income (loss)

 

 

 

 

1.9

 

 

 

 

(1.4

)

 

0.5

 

Net income attributable to noncontrolling interest in the Operating Partnership

 

 

 

 

(0.2

)

 

 

 

 

 

(0.2

)

Dividends ($0.27 per share)

 

 

 

 

(37.0

)

 

 

 

 

 

(37.0

)

Issuance of shares under incentive stock plans

215,970

 

 

0.2

 

 

 

 

 

 

 

 

0.2

 

Stock-based compensation

 

 

2.7

 

 

 

 

 

 

 

 

2.7

 

Acquisition of noncontrolling interests in consolidated affiliates

 

 

 

 

 

 

 

 

372.3

 

 

372.3

 

Adjustment of noncontrolling interest in the Operating Partnership

 

 

 

 

(3.9

)

 

 

 

 

 

(3.9

)

Other (a)

(66,168

)

 

(1.6

)

 

 

 

9.4

 

 

(0.5

)

 

7.3

 

Balance, June 30, 2020

136,512,112

 

 

$1,063.5

 

 

$531.7

 

 

($137.9

)

 

$456.7

 

 

$1,914.0

 

Net loss

 

 

 

 

(0.8

)

 

 

 

(8.7

)

 

(9.5

)

Dividends ($0.27 per share)

 

 

 

 

(37.3

)

 

 

 

 

 

(37.3

)

Issuance of shares under incentive stock plans

6,079

 

 

0.2

 

 

 

 

 

 

 

 

0.2

 

Stock-based compensation

 

 

2.0

 

 

 

 

 

 

 

 

2.0

 

Measurement period adjustment of noncontrolling interests in consolidated affiliates

 

 

 

 

 

 

 

 

(0.7

)

 

(0.7

)

Adjustment of noncontrolling interest in the Operating Partnership

 

 

 

 

(8.0

)

 

 

 

 

 

(8.0

)

Other (a)

(185

)

 

(0.5

)

 

 

 

16.3

 

 

(25.4

)

 

(9.6

)

Balance, September 30, 2020

136,518,006

 

 

$1,065.2

 

 

$485.6

 

 

($121.6

)

 

$421.9

 

 

$1,851.1

 

 

C

 

 

Common Shares

 

Retained Earnings

 

Accumulated Other Comprehensive (Loss) Income

 

Noncontrolling Interests in consolidated affiliates

 

Shareholders Equity

 

Shares

 

Amount

 

 

Balance, January 1, 2019

129,488,675

 

 

$884.3

 

 

$672.4

 

 

$0.2

 

 

$97.7

 

 

$1,654.6

 

Net income

 

 

 

 

24.8

 

 

 

 

3.0

 

 

27.8

 

Dividends ($0.27 per share)

 

 

 

 

(35.1

)

 

 

 

 

 

(35.1

)

Issuance of shares under incentive stock plans

26,031

 

 

0.6

 

 

 

 

 

 

 

 

0.6

 

Stock-based compensation

 

 

1.4

 

 

 

 

 

 

 

 

1.4

 

Other (a)

(1,140

)

 

 

 

 

 

(6.0

)

 

(2.1

)

 

(8.1

)

Balance, March 31, 2019

129,513,566

 

 

$886.3

 

 

$662.1

 

 

($5.8

)

 

$98.6

 

 

$1,641.2

 

Net income

 

 

 

 

18.8

 

 

 

 

2.1

 

 

20.9

 

Dividends ($0.27 per share)

 

 

 

 

(35.1

)

 

 

 

 

 

(35.1

)

Issuance of shares under incentive stock plans

250,344

 

 

0.2

 

 

 

 

 

 

 

 

0.2

 

Stock-based compensation

 

 

2.3

 

 

 

 

 

 

 

 

2.3

 

Other (a)

(134,194

)

 

(4.2

)

 

 

 

(23.7

)

 

(1.3

)

 

(29.2

)

Balance, June 30, 2019

129,629,716

 

 

$884.6

 

 

$645.8

 

 

($29.5

)

 

$99.4

 

 

$1,600.3

 

Net (loss) income

 

 

 

 

(0.4

)

 

 

 

1.9

 

 

1.5

 

Dividends ($0.27 per share)

 

 

 

 

(34.9

)

 

 

 

 

 

(34.9

)

Issuance of shares under incentive stock plans

2,423

 

 

0.1

 

 

 

 

 

 

 

 

0.1

 

Stock-based compensation

 

 

1.5

 

 

 

 

 

 

 

 

1.5

 

Repurchase of common shares made under repurchase program

(320,016

)

 

 

 

(8.4

)

 

 

 

 

 

(8.4

)

Other (a)

(230

)

 

 

 

 

 

(33.7

)

 

(10.8

)

 

(44.5

)

Balance, September 30, 2019

129,311,893

 

 

$886.2

 

 

$602.1

 

 

($63.2

)

 

$90.5

 

 

$1,515.6

 

(a)

Primarily includes shares purchased from employees in non-open market transactions to pay withholding taxes associated with the vesting of shares granted under the Companys Incentive Stock Plan, amortization of pension and postretirement plan liabilities, foreign currency translation adjustments, mark-to-market adjustments of qualifying cash flow hedges, and distributions to noncontrolling interests in consolidated affiliates. The three months ended September 30, 2020 also include the redemption of 1,000 common units in the Operating Partnership for an equal number of Rayonier Inc. common shares, common stock offering costs associated with the At-the-market (ATM) offering program, as well as changes related to the recapitalization of the New Zealand JV.

C

 

RAYONIER INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

September 30, 2020 (unaudited)

(millions of dollars)

 

 

Nine Months Ended September 30,

 

2020

 

2019

 

Cash provided by operating activities:

 

 

 

Net income

$17.4

 

 

$50.2

 

Depreciation, depletion and amortization

119.5

 

 

91.9

 

Non-cash cost of land and improved development

20.7

 

 

10.0

 

Timber-write offs due to casualty events

15.2

 

 

 

Gain on large dispositions of timberlands

(28.7

)

 

 

Other items to reconcile net income to cash provided by operating activities

10.1

 

 

13.2

 

Changes in working capital and other assets and liabilities

(16.2

)

 

(1.1

)

 

138.0

 

 

164.2

 

Cash used for investing activities:

 

 

 

Capital expenditures

(44.7

)

 

(45.3

)

Real estate development investments

(5.4

)

 

(3.3

)

Purchase of timberlands

(24.4

)

 

(81.9

)

Net proceeds from large dispositions of timberlands

115.7

 

 

 

Net cash consideration for merger with Pope Resources

(231.1

)

 

 

Other

5.1

 

 

(2.3

)

 

(184.8

)

 

(132.8

)

Cash provided by (used for) financing activities:

 

 

 

Net increase in debt

188.0

 

 

 

Dividends paid

(109.1

)

 

(106.1

)

Distributions to noncontrolling interests in the Operating Partnership

(2.4

)

 

 

Proceeds from the issuance of common shares under incentive stock plan

0.2

 

 

0.8

 

Repurchase of common shares made under repurchase program

(3.2

)

 

(8.4

)

Noncontrolling interests in consolidated affiliates redemption of shares

(5.1

)

 

 

Distributions to noncontrolling interest in consolidated affiliates

(8.2

)

 

(7.3

)

Other

(4.5

)

 

(4.2

)

 

55.7

 

 

(125.2

)

Effect of exchange rate changes on cash and restricted cash

(0.3

)

 

(2.8

)

Cash, cash equivalents and restricted cash:

 

 

 

Change in cash, cash equivalents and restricted cash

8.6

 

 

(96.6

)

Balance, beginning of year

70.0

 

 

156.5

 

Balance, end of period

$78.6

 

 

$59.9

 

D

 

RAYONIER INC. AND SUBSIDIARIES

BUSINESS SEGMENT SALES, PRO FORMA SALES, OPERATING INCOME,

PRO FORMA OPERATING INCOME AND ADJUSTED EBITDA

September 30, 2020 (unaudited)

(millions of dollars)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2020

 

2020

 

2019

 

2020

 

2019

 

Sales

 

 

 

 

 

 

 

 

 

Southern Timber

$47.7

 

 

$46.8

 

 

$41.3

 

 

$147.4

 

 

$148.3

 

Pacific Northwest Timber

28.9

 

 

26.2

 

 

18.8

 

 

86.1

 

 

57.9

 

New Zealand Timber

62.8

 

 

41.8

 

 

62.0

 

 

142.1

 

 

181.3

 

Timber Funds

9.9

 

 

7.5

 

 

 

 

17.4

 

 

 

Real Estate

28.8

 

 

50.0

 

 

9.2

 

 

197.4

 

 

52.7

 

Trading

22.2

 

 

24.3

 

 

25.2

 

 

65.5

 

 

92.7

 

Intersegment Eliminations

(1.4

)

 

(1.0

)

 

(0.1

)

 

(2.3

)

 

(0.1

)

Sales

$198.9

 

 

$195.6

 

 

$156.4

 

 

$653.6

 

 

$532.8

 

 

 

 

 

 

 

 

 

 

 

Pro forma sales (a)

 

 

 

 

 

 

 

 

 

Southern Timber

$47.7

 

 

$46.8

 

 

$41.3

 

 

$147.4

 

$148.3

 

Pacific Northwest Timber

28.9

 

 

26.2

 

 

18.8

 

 

86.1

 

57.9

 

New Zealand Timber

62.8

 

 

41.8

 

 

62.0

 

 

142.1

 

181.3

 

Timber Funds

2.2

 

 

1.7

 

 

 

 

3.9

 

 

 

Real Estate

28.8

 

 

50.0

 

 

9.2

 

 

81.4

 

52.7

 

Trading

22.2

 

 

24.3

 

 

25.2

 

 

65.5

 

92.7

 

Intersegment Eliminations

(1.4

)

 

(1.0

)

 

(0.1

)

 

(2.3

)

 

(0.1

)

Pro forma sales

$191.2

 

 

$189.8

 

 

$156.4

 

 

$524.1

 

$532.8

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

Southern Timber

$5.1

 

 

$11.2

 

 

$9.5

 

 

$31.4

 

 

$45.8

 

Pacific Northwest Timber

(1.8

)

 

(6.7

)

 

(3.6

)

 

(9.5

)

 

(11.1

)

New Zealand Timber

10.7

 

 

5.0

 

 

10.1

 

 

21.1

 

 

38.6

 

Timber Funds

(12.4

)

 

(1.9

)

 

 

 

(14.3

)

 

 

Real Estate

9.5

 

 

24.8

 

 

0.4

 

 

61.1

 

 

25.9

 

Trading

(0.6

)

 

0.1

 

 

 

 

(0.5

)

 

0.3

 

Corporate and Other

(8.7

)

 

(20.9

)

 

(5.4

)

 

(37.3

)

 

(18.6

)

Operating income

$1.8

 

 

$11.7

 

 

$11.0

 

 

$52.0

 

 

$80.9

 

 

 

 

 

 

 

 

 

 

 

Pro forma operating income (loss) (a)

 

 

 

 

 

 

 

 

 

Southern Timber

$11.1

 

 

$11.2

 

 

$9.5

 

 

$37.4

 

 

$45.8

 

Pacific Northwest Timber

(1.8

)

 

(6.7

)

 

(3.6

)

 

(9.5

)

 

(11.1

)

New Zealand Timber

10.7

 

 

5.0

 

 

10.1

 

 

21.1

 

 

38.6

 

Timber Funds

(0.3

)

 

0.1

 

 

 

 

(0.1

)

 

 

Real Estate

9.5

 

 

24.8

 

 

0.4

 

 

32.4

 

 

25.9

 

Trading

(0.6

)

 

0.1

 

 

 

 

(0.5

)

 

0.3

 

Corporate and Other

(8.3

)

 

(7.4

)

 

(5.4

)

 

(20.9

)

 

(18.6

)

Pro forma operating income

$20.3

 

 

$27.2

 

 

$11.0

 

 

$59.9

 

 

$80.9

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (a)

 

 

 

 

 

 

 

 

 

Southern Timber

$26.1

 

 

$26.4

 

 

$22.5

 

 

$85.8

 

 

$91.4

 

Pacific Northwest Timber

9.1

 

 

3.9

 

 

2.7

 

 

22.8

 

 

8.0

 

New Zealand Timber

18.1

 

 

9.9

 

 

17.7

 

 

38.2

 

 

59.7

 

Timber Funds

0.2

 

 

0.7

 

 

 

 

0.8

 

 

 

Real Estate

22.2

 

 

44.6

 

 

5.4

 

 

65.7

 

 

41.1

 

Trading

(0.6

)

 

0.1

 

 

 

 

(0.5

)

 

0.3

 

Corporate and Other

(7.9

)

 

(7.0

)

 

(5.1

)

 

(19.9

)

 

(17.7

)

Adjusted EBITDA

$67.2

 

 

$78.6

 

 

$43.2

 

 

$192.9

 

 

$182.8

 

(a)

Pro forma sales, Pro forma operating income (loss) and Adjusted EBITDA are non-GAAP measures. See Schedule F for definitions and reconciliations

E

 

RAYONIER INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

September 30, 2020 (unaudited)

(millions of dollars, except per share information)

LIQUIDITY MEASURES:

 

 

 

 

Nine Months Ended

 

September 30,

 

September 30,

 

2020

 

2019

 

Cash Provided by Operating Activities

$138.0

 

 

$164.2

 

Working capital and other balance sheet changes

14.6

 

 

(3.3

)

Costs related to the merger with Pope Resources (a)

16.4

 

 

 

Cash Available for Distribution attributable to NCI in Timber Funds

(0.1

)

 

 

Capital expenditures (b)

(44.7

)

 

(45.3

)

Cash Available for Distribution (c)

$124.2

 

 

$115.6

 

 

 

 

 

Net Income

$17.4

 

 

$50.2

 

Operating loss attributable to NCI in Timber Funds

12.3

 

 

 

Interest, net attributable to NCI in Timber Funds

0.3

 

 

 

Income tax expense attributable to NCI in Timber Funds

0.2

 

 

 

Net Income (Excluding NCI in Timber Funds)

$30.2

 

 

$50.2

 

Interest, net and miscellaneous income attributable to Rayonier

27.9

 

 

21.2

 

Income tax expense attributable to Rayonier

7.3

 

 

10.2

 

Depreciation, depletion and amortization attributable to Rayonier

112.2

 

 

91.9

 

Non-cash cost of land and improved development

20.7

 

 

10.0

 

Timber write-offs resulting from casualty events attributable to Rayonier (d)

7.9

 

 

 

Non-operating income

(1.0

)

 

(0.8

)

Costs related to the merger with Pope Resources (a)

16.4

 

 

 

Large Dispositions (e)

(28.7

)

 

 

Adjusted EBITDA (f)

$192.9

 

 

$182.8

 

Cash interest paid attributable to Rayonier (g)

(25.0

)

 

(20.6

)

Cash taxes paid attributable to Rayonier

(0.6

)

 

(1.4

)

Capital expenditures attributable to Rayonier (b)

(43.1

)

 

(45.3

)

Cash Available for Distribution (c)

$124.2

 

 

$115.6

 

 

 

 

 

Cash Available for Distribution (c)

$124.2

 

 

$115.6

 

Real estate development investments

(5.4

)

 

(3.3

)

Cash Available for Distribution after real estate development investments

$118.8

 

 

$112.3

 

F

 

PRO FORMA SALES (h):

Three Months Ended

 

Southern Timber

 

Pacific Northwest Timber

 

New Zealand Timber

 

Timber Funds

 

Real Estate

 

Trading

 

Intersegment Eliminations

 

Total

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$47.7

 

 

$28.9

 

 

$62.8

 

 

$9.9

 

 

$28.8

 

 

$22.2

 

 

($1.4

)

 

$198.9

 

Sales attributable to noncontrolling interest in Timber Funds

 

 

 

 

 

 

 

(7.7

)

 

 

 

 

 

 

 

(7.7

)

Pro forma sales

 

$47.7

 

 

$28.9

 

 

$62.8

 

 

$2.2

 

 

$28.8

 

 

$22.2

 

 

($1.4

)

 

$191.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$46.8

 

 

$26.2

 

 

$41.8

 

 

$7.5

 

 

$50.0

 

 

$24.3

 

 

($1.0)

 

 

$195.6

 

Sales attributable to noncontrolling interest in Timber Funds

 

 

 

 

 

 

 

(5.8

)

 

 

 

 

 

 

 

(5.8

)

Pro forma sales

 

$46.8

 

 

$26.2

 

 

$41.8

 

 

$1.7

 

 

$50.0

 

 

$24.3

 

 

($1.0

)

 

$189.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$41.3

 

 

$18.8

 

 

$62.0

 

 

 

 

$9.2

 

 

$25.2

 

 

($0.1

)

 

$156.4

 

Pro forma sales

 

$41.3

 

 

$18.8

 

 

$62.0

 

 

 

 

$9.2

 

 

$25.2

 

 

($0.1

)

 

$156.4

 

 

PRO FORMA SALES (h):

Nine Months Ended

Southern Timber

 

Pacific Northwest Timber

 

New Zealand Timber

 

Timber Funds

 

Real Estate

 

Trading

 

Intersegment Eliminations

 

Total

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$147.4

 

$86.1

 

$142.1

 

$17.4

 

 

$197.4

 

 

$65.5

 

($2.3

)

 

$653.6

 

Sales attributable to noncontrolling interest in Timber Funds

 

 

 

(13.5

)

 

 

 

 

 

 

(13.5

)

Large Dispositions (e)

 

 

 

 

 

(116.0

)

 

 

 

 

(116.0

)

Pro forma sales

$147.4

 

$86.1

 

$142.1

 

$3.9

 

 

$81.4

 

 

$65.5

 

($2.3

)

 

$524.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$148.3

 

$57.9

 

$181.3

 

 

 

$52.7

 

 

$92.7

 

($0.1

)

 

$532.8

 

Pro forma sales

$148.3

 

$57.9

 

$181.3

 

 

 

$52.7

 

 

$92.7

 

($0.1

)

 

$532.8

 

 

PRO FORMA NET INCOME (LOSS) (i):

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30, 2020

 

June 30, 2020

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

 

$

 

Per Diluted Share

 

$

 

Per Diluted Share

 

$

 

Per Diluted Share

 

$

 

Per Diluted Share

 

$

 

Per Diluted Share

 

Net (Loss) Income Attributable to Rayonier Inc.

($0.8

)

 

($0.01

)

 

$1.7

 

$0.01

 

($0.4

)

 

 

$26.8

 

 

$0.20

 

 

$43.1

 

$0.33

Costs related to the merger with Pope Resources (a)

0.4

 

 

 

 

13.5

 

0.10

 

 

 

 

16.4

 

 

0.12

 

 

 

Timber write-offs resulting from casualty events attributable to Rayonier (d)

7.9

 

 

0.07

 

 

 

 

 

 

 

7.9

 

 

0.06

 

 

 

Large Dispositions (e)

 

 

 

 

 

 

 

 

 

(28.7

)

 

(0.21

)

 

 

Pro Forma net income (loss)

$7.5

 

 

$0.06

 

 

$15.2

 

$0.11

 

($0.4

)

 

 

$22.4

 

 

$0.17

 

$43.1

 

$0.33

 

F

 

PRO FORMA OPERATING INCOME (LOSS) AND ADJUSTED EBITDA (f) (j):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Southern Timber

 

Pacific Northwest Timber

 

New Zealand Timber

 

Timber Funds

 

Real Estate

 

Trading

 

Corporate and Other

 

Total

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$5.1

 

($1.8

)

 

$10.7

 

($12.4

)

 

$9.5

 

($0.6

)

 

($8.7

)

 

$1.8

Operating loss attributable to NCI in Timber Funds

 

 

 

 

10.3

 

 

 

 

 

 

 

10.3

Timber write-offs resulting from casualty events attributable to Rayonier (d)

6.0

 

 

 

 

1.8

 

 

 

 

 

 

 

7.9

Costs related to the merger with Pope Resources (a)

 

 

 

 

 

 

 

 

 

0.4

 

 

0.4

Pro forma operating income (loss)

$11.1

 

($1.8

)

 

$10.7

 

($0.3

)

 

$9.5

 

($0.6

)

 

($8.3

)

 

$20.3

Depreciation, depletion and amortization

15.0

 

10.9

 

 

7.3

 

0.5

 

 

5.5

 

 

 

0.4

 

 

39.6

Non-cash cost of land and improved development

 

 

 

 

 

 

7.3

 

 

 

 

 

7.3

Adjusted EBITDA

$26.1

 

$9.1

 

 

$18.1

 

$0.2

 

 

$22.2

 

($0.6

)

 

($7.9

)

 

$67.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$11.2

 

($6.7

)

 

$5.0

 

($1.9

)

 

$24.8

 

$0.1

 

 

($20.9

)

 

$11.7

Operating loss attributable to NCI in Timber Funds

 

 

 

 

2.0

 

 

 

 

 

 

 

2.0

Costs related to merger with Pope Resources (a)

 

 

 

 

 

 

 

 

 

13.5

 

 

13.5

Pro forma operating income (loss)

$11.2

 

($6.7

)

 

$5.0

 

$0.1

 

 

$24.8

 

$0.1

 

 

($7.4

)

 

$27.2

Depreciation, depletion and amortization

15.2

 

10.6

 

 

4.9

 

0.5

 

 

6.7

 

 

 

0.3

 

 

38.3

Non-cash cost of land and improved development

 

 

 

 

 

 

13.0

 

 

 

 

 

13.0

Adjusted EBITDA

$26.4

 

$3.9

 

 

$9.9

 

$0.7

 

 

$44.6

 

$0.1

 

 

($7.0

)

 

$78.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$9.5

 

($3.6

)

 

$10.1

 

 

 

$0.4

 

 

 

($5.4

)

 

$11.0

Depreciation, depletion and amortization

13.0

 

6.3

 

 

7.6

 

 

 

0.7

 

 

 

0.3

 

 

27.8

Non-cash cost of land and improved development

 

 

 

 

 

 

4.3

 

 

 

 

 

4.3

Adjusted EBITDA

$22.5

 

$2.7

 

 

$17.7

 

 

 

$5.4

 

 

 

($5.1

)

 

$43.2

PRO FORMA OPERATING INCOME (LOSS) AND ADJUSTED EBITDA (f) (j):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

Southern Timber

 

Pacific Northwest Timber

 

New Zealand Timber

 

Timber Funds

 

Real Estate

 

Trading

 

Corporate and Other

 

Total

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$31.4

 

($9.5

)

 

$21.1

 

($14.3

)

 

$61.1

 

 

($0.5

)

 

($37.3

)

 

$52.0

 

Operating loss attributable to NCI in Timber Funds

 

 

 

 

12.3

 

 

 

 

 

 

 

 

12.3

 

Timber write-offs resulting from casualty events attributable to Rayonier (d)

6.0

 

 

 

 

1.8

 

 

 

 

 

 

 

 

7.9

 

Costs related to the merger with Pope Resources (a)

 

 

 

 

 

 

 

 

 

 

16.4

 

 

16.4

 

Large Dispositions (e)

 

 

 

 

 

 

(28.7

)

 

 

 

 

 

(28.7

)

Pro forma operating income (loss)

$37.4

 

($9.5

)

 

$21.1

 

($0.1

)

 

$32.4

 

 

($0.5

)

 

($20.9

)

 

$59.9

 

Depreciation, depletion and amortization

48.4

 

32.2

 

 

17.1

 

1.0

 

 

12.6

 

 

 

 

1.0

 

 

112.2

 

Non-cash cost of land and improved development

 

 

 

 

 

 

20.7

 

 

 

 

 

 

20.7

 

Adjusted EBITDA

$85.8

 

$22.8

 

 

$38.2

 

$0.8

 

 

$65.7

 

 

($0.5

)

 

($19.9

)

 

$192.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$45.8

 

($11.1

)

 

$38.6

 

 

 

$25.9

 

 

$0.3

 

 

($18.6

)

 

$80.9

 

Depreciation, depletion and amortization

45.6

 

19.2

 

 

21.1

 

 

 

5.2

 

 

 

 

0.9

 

 

91.9

 

Non-cash cost of land and improved development

 

 

 

 

 

 

10.0

 

 

 

 

 

 

10.0

 

Adjusted EBITDA

$91.4

 

$8.0

 

 

$59.7

 

 

 

$41.1

 

 

$0.3

 

 

($17.7

)

 

$182.8

 

(a)

Costs related to the merger with Pope Resources include legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources.

(b)

Capital expenditures during the nine months ended September 30, 2020 exclude timberland acquisitions. Excluding the Pope Resources acquisition, timberland acquisitions were $24.4 million and $81.9 million, respectively, during the nine months ended September 30, 2020 and September 30, 2019.

(c)

Cash Available for Distribution (CAD) is defined as cash provided by operating activities adjusted for capital spending (excluding timberland acquisitions and real estate development investments), CAD attributable to noncontrolling interest in Timber Funds and working capital and other balance sheet changes. CAD is a non-GAAP measure of cash generated during a period that is available for common stock dividends, distributions to noncontrolling interest in the Operating Partnership, distributions to the New Zealand minority shareholder, repurchase of the Companys common shares, debt reduction, timberland acquisitions and real estate development investments. CAD is not necessarily indicative of the CAD that may be generated in future periods.

(d)

Timber write-offs resulting from casualty events include the write-off of merchantable and pre-merchantable timber volume destroyed by casualty events which cannot be salvaged.

(e)

Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value. In March 2020, the Company completed a disposition of approximately 67,000 acres located in Mississippi for a sales price and gain of approximately $116.0 million and $28.7 million, respectively.

(f)

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income and expense, operating loss attributable to noncontrolling interest in Timber Funds, costs related to the merger with Pope Resources, timber write-offs resulting from casualty events and Large Dispositions. Adjusted EBITDA is a non-GAAP measure that management uses to make strategic decisions about the business and that investors can use to evaluate the operational performance of the assets under management. It removes the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis attributable to Rayonier.

(g)

Cash interest paid is presented net of patronage refunds received of $4.6 million and $4.0 million, respectively, excluding patronage refunds attributable to noncontrolling interest in Timber Funds during the nine months ended September 30, 2020 and September 30, 2019.

(h)

Pro forma revenue (sales) is defined as revenue (sales) adjusted for Large Dispositions and sales attributable to the noncontrolling interest in Timber Funds. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate core business operations because it excludes specific items that are not indicative of ongoing operating results attributable to Rayonier.

(i)

Pro forma net income (loss) is defined as net (loss) income attributable to Rayonier Inc. adjusted for costs related to the merger with Pope Resources, timber write-offs resulting from casualty events and Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because it excludes specific items that are not indicative of ongoing operating results attributable to Rayonier.

(j)

Pro forma operating income (loss) is defined as operating income (loss) adjusted for operating loss attributable to noncontrolling interest in Timber Funds, costs related to the merger with Pope Resources, timber write-offs resulting from casualty events and Large Dispositions. Rayonier believes that this non-GAAP financial measure provides investors with useful information to evaluate our core business operations because it excludes specific items that are not indicative of ongoing operating results attributable to Rayonier.

F

Investors/Media

Mark McHugh

904-357-9100

[email protected]

Continue Reading

News

The St. Joe Company Reports Third Quarter 2020 Results and Initiates Quarterly Dividend Program

gbafNews28

The St. Joe Company (NYSE: JOE) (the Company) today announced total revenue increased by approximately 28% to $42.0 million for the third quarter of 2020 as compared to $32.8 million for the third quarter of 2019. The increase was broad-based across all segments with a 37% increase in real estate revenue, a 22% increase in leasing revenue and a 21% increase in hospitality revenue. Operating income increased approximately 49% for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019. Net income increased approximately 37% to $7.8 million, or $0.13 per share, compared with net income of $5.7 million, or $0.10 per share, for the same period in 2019. For the nine months ended September 30, 2020, the Companys net income increased by approximately 40% to $25.4 million or $0.43 per share compared to net income of $18.1 million or $0.30 per share for the same nine-month period in 2019.

The Board of Directors authorized a new quarterly cash dividend program, and on October 28, 2020, declared a cash dividend of $0.07 per share on its common stock, payable on December 9, 2020 to shareholders of record at the close of business on November 13, 2020.

Jorge Gonzalez, the Companys President and Chief Executive Officer, said, We are continuing to see positive momentum in all operating segments. We sold 162 homesites in the third quarter, compared to 94 homesites in the third quarter of 2019, an increase of 72%. The Clubs by JOE membership grew by 97 in the third quarter and 174 for the first nine months of 2020, bringing the total to 1,448 members as of September 30, 2020. The 21% growth in our hospitality revenue is especially noteworthy considering the COVID-19 impacts across the world. In addition to our amazing people and assets, we believe that the drive-to aspect of our hospitality market is one of the reasons for the strong growth. This momentum is also occurring in our commercial segment. In the third quarter, we executed nine new commercial leases bringing the year to date total of new commercial leases to 23.

Mr. Gonzalez continued, Our operating revenue and income for the third quarter and for the first nine months of 2020 exceeded our revenue and operating income for the same periods in 2019, while our operating and corporate expenses have remained steady. We currently have 1,401 residential homesites under contract with 13 different builders and plans for additional residential communities in Bay County. The opening of the Latitude Margaritaville Watersound community is on target for April 2021 with site development on the initial 248 homesites underway with an additional 381 homesites fully permitted and anticipated to commence development within the next 30 days for a total of 629 homesites. We have an additional 637 new apartment units under construction plus the recently announced 240-unit Star Avenue apartment community planned to begin construction in November 2020. Together with the 240 completed Pier Park Crossings units, it will bring the total apartment unit count to 1,117. Our hospitality segment is building upon the growth we are experiencing by adding an additional 689 new hotel rooms which are currently under construction, and other operational assets such as The Clubs by JOE amenity complex at Watersound Camp Creek.

Mr. Gonzalez concluded, With the continued improvement in business, the Board of Directors initiated a new quarterly dividend program, and today declared a $0.07 per share dividend. I expect the dividend will grow with earnings and complement our existing share buyback program and growth investments.

Real Estate Revenue

Real estate revenue increased by approximately 37% to $18.5 million in the third quarter of 2020 as compared to $13.5 million in the third quarter of 2019. The Company sold 162 homesites at an average price of approximately $82,000 with gross margins of 49% in the third quarter of 2020 as compared to 94 homesites at an average price of $101,000 with gross margins of 44% in the third quarter of 2019. The difference in the average sales price was due to mix of sales from different communities. In addition to the homesite sales, the Company had eight commercial, rural and unimproved residential land sales totaling $2.6 million as compared to six such commercial and rural land sales totaling $2.2 million in the third quarter of 2019.

The Company executed new contracts for 694 homesites in the third quarter of 2020 bringing the total homesites under contract to 1,401 as of September 30, 2020. These 1,401 residential homesites under contract are expected to result in revenue of approximately $85,000 per homesite for a total of $119.3 million over the next several years.

Hospitality Revenue

Hospitality revenue increased by approximately 21% to $17.0 million in the third quarter of 2020 as compared to $14.0 million in the third quarter of 2019. Hospitality revenue benefited from an extended vacation season in the current period consistent with delayed school openings, increases in homeschooling and a rise in remote work arrangements related to COVID-19. The table below details hospitality revenue by month for the third quarter of 2020 and 2019.

 

Q3 2020

Q3

2019

Percentage

Change

Revenue:

July

$6.8

$6.1

11.5%

August

5.2

4.2

23.8%

September

5.0

3.7

35.1%

Total Quarter

$17.0

$14.0

21.4%

 

For additional context, the table below details the hospitality revenue in the second quarter of 2020 and 2019 as the COVID-19 effects commenced.

 

Q2 2020

Q2

2019

Percentage Change

Revenue:

April

$1.3

$4.4

-70.5%

May

4.0

5.9

-32.2%

June

6.3

5.3

18.9%

Total Quarter

$11.6

$15.6

-25.6%

As of September 30, 2020, the Company had under construction a 143-room Hilton Garden Inn hotel located near the Northwest Florida Beaches International Airport, a 75-room boutique inn and new The Clubs by JOE amenities at Watersound Camp Creek and a 131-room Homewood Suites hotel near the new Panama City Beach Sports Complex. In addition, the Company, with separate joint venture partners, has under construction a 255-room Embassy Suites hotel in the Pier Park area of Panama City Beach and an 85-room boutique hotel in Seagrove Beach. The Company intends to operate these new hotels. In addition, the Bay Point Marina and Port St. Joe Marina are in reconstruction and additional new marinas are in the planning process.

Leasing Revenue

Leasing revenue from commercial, retail, apartment and other properties increased by approximately 22% for the third quarter of 2020 compared to the same period in 2019. This increase was due to increasing apartment leasing revenue as well as higher lease rates. COVID-19 had minimal impact on the commercial segment. In the third quarter of 2020, the Company did not provide any rent abatements, but deferred approximately $0.1 million of lease payments. The Company has also started collecting the $0.3 million of deferred lease payments from the second quarter of 2020.

In the third quarter of 2020, the Company executed nine new commercial leases bringing the year to date total of new commercial leases to 23. As of September 30, 2020, the Companys rentable space consisted of approximately 904,000 square feet of which approximately 758,000 was leased, compared to approximately 822,000 square feet as of September 30, 2019 of which approximately 757,000 was leased. In the first quarter of 2020, the Company sold the SouthWood Town Center, which consisted of 34,230 rentable square feet. The decrease in gross square feet under lease resulting from the sale of the SouthWood Town Center was offset by newly completed rentable space. As of September 30, 2020, the 240 completed apartment units in Pier Park Crossings were 98% leased.

The Company, through consolidated and unconsolidated joint ventures, has under construction three apartment communities totaling 637 additional units and a 107 unit assisted living / memory care project. In addition, the Company has a commercial leasing project and a self-storage facility under construction totaling approximately 91,000 square feet of rentable space. The Company has executed leases on approximately 55,000 square feet of additional commercial spaces which are expected to begin construction in 2021.

Timber Revenue

Timber revenue increased by approximately 23% to $1.6 million with gross margins of approximately 88% for the third quarter of 2020 as compared to $1.3 million with gross margins of approximately 85% for the third quarter of 2019.

Other Operating and Corporate Expenses

Other operating and corporate expenses of $5.1 million remained essentially flat in the third quarter of 2020 compared to the third quarter of 2019. The Company continues to manage operating costs to maintain an efficient structure.

Liquidity

The Company maintained cash, cash equivalents and investments of $155.1 million as of September 30, 2020 compared to $158.5 million at the beginning of the quarter. Of the $155.1 million, $50.0 million was invested in U.S. Treasury Bills and $84.0 million was invested in U.S. Treasury Money Market Funds. During the third quarter of 2020, the Company incurred a total of $36.5 million in capital expenditures.

Financial data schedules in this press release include consolidated results, summary balance sheets, debt and other operating and corporate expenses for the third quarter of 2020 and 2019, respectively.

 

FINANCIAL DATA

 

Consolidated Results (Unaudited)

($ in millions except share and per share amounts)

 

 

Quarter Ended

September 30,

Nine Months Ended

September 30,

 

2020

2019

2020

2019

Revenue

 

 

 

 

Real estate revenue

$18.5

$13.5

$41.8

$33.6

Hospitality revenue

17.0

14.0

35.2

37.0

Leasing revenue

4.9

4.0

14.2

11.2

Timber revenue

1.6

1.3

5.5

2.6

Total revenue

42.0

32.8

96.7

84.4

Expenses

 

 

 

 

Cost of real estate revenue

9.4

6.0

18.4

14.7

Cost of hospitality revenue

11.0

10.2

26.5

26.4

Cost of leasing revenue

2.0

1.3

4.0

3.4

Cost of timber revenue

0.2

0.2

0.6

0.5

Other operating and corporate expenses

5.1

5.1

17.0

16.1

Depreciation, depletion and amortization

3.3

2.6

9.4

7.2

Total expenses

31.0

25.4

75.9

68.3

Operating income

11.0

7.4

20.8

16.1

Investment income, net

2.4

2.4

2.8

11.0

Interest expense

(3.4)

(3.1)

(10.1)

(9.1)

Other income, net

0.3

2.1

20.3

7.1

Income before equity in loss from unconsolidated affiliates and income taxes

10.3

8.8

33.8

25.1

Equity in loss from unconsolidated affiliates

(0.1)

(0.3)

Income tax expense

(2.4)

(3.0)

(7.8)

(7.1)

Net income

7.8

5.8

25.7

18.0

Net (income) loss attributable to non-controlling interest

(0.1)

(0.3)

0.1

Net income attributable to the Company

$7.8

$5.7

$25.4

$18.1

Net income per share attributable to the Company

$0.13

$0.10

$0.43

$0.30

Weighted average shares outstanding

58,882,549

60,043,427

59,052,613

60,187,313

 

Summary Balance Sheets (Unaudited)

($ in millions)

 

 

September 30, 2020

December 31, 2019

Assets

 

 

Investment in real estate, net

$530.7

$430.8

Investment in unconsolidated joint ventures

34.8

5.1

Cash and cash equivalents

102.4

185.7

Investments “ debt securities

50.0

0.1

Investments “ equity securities

2.7

9.7

Other assets

58.5

52.0

Property and equipment, net

18.7

19.0

Investments held by special purpose entities

206.1

206.8

Total assets

$1,003.9

$909.2

 

 

 

Liabilities and Equity

 

 

Debt, net

$143.4

$92.5

Other liabilities

70.8

57.2

Deferred tax liabilities, net

60.1

52.8

Senior Notes held by special purpose entity

177.2

177.0

Total liabilities

451.5

379.5

Total equity

552.4

529.7

Total liabilities and equity

$1,003.9

$909.2

 

Debt Schedule (Unaudited)

($ in millions “ Net of issuance costs)

 

 

September 30, 2020

December 31, 2019

Pier Park North joint venture

$44.5

$45.1

Pier Park Crossings joint venture

34.5

33.5

Watersound Origins Crossings joint venture

21.1

2.4

Pier Park Crossings II joint venture

14.0

Watercrest joint venture

13.5

Community Development District

6.1

7.0

Beckrich Building III

5.4

Beach Homes

1.5

1.6

Pier Park outparcel

1.5

1.5

WaterColor Crossings

1.3

1.4

Total debt, net

$143.4

$92.5

 

Other Operating and Corporate Expenses (Unaudited)

($ in millions)

 

 

Quarter Ended

September 30,

Nine Months Ended

September 30,

 

2020

2019

2020

2019

Employee costs

$2.0

$1.9

$6.3

$5.7

401(k) contribution

1.2

1.1

Property taxes and insurance

1.3

1.3

3.8

3.7

Professional fees

1.0

1.0

3.2

3.0

Marketing and owner association costs

0.4

0.2

0.9

0.9

Occupancy, repairs and maintenance

0.2

0.2

0.6

0.7

Other

0.2

0.5

1.0

1.0

Total other operating and corporate expense

$5.1

$5.1

$17.0

$16.1

 

Additional Information and Where to Find It

Additional information with respect to the Companys results for the third quarter 2020 will be available in a Form 10-Q that will be filed with the Securities and Exchange Commission (SEC) and can be found at the SECs website www.sec.gov.

Important Notice Regarding Forward-Looking Statements

Certain statements contained in this press release, as well as other information provided from time to time by the Company or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as guidance, anticipate, estimate, expect, forecast, project, plan, intend, believe, confident, may, should, can have, likely, future and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Examples of forward-looking statements in this press release include statements regarding expected revenues from sales of residential homesites; our continued cost discipline to maintain an efficient cost structure; our capital allocation initiatives, including the timing and amount of dividends; timing of new projects in 2020; and our continued progress in our operations, including revenue growth and bottom line expectations from new projects or phases. Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Companys control) and assumptions.

The Company wishes to caution readers that, although we believe any forward-looking statements are based on reasonable assumptions, certain important factors may have affected and could in the future affect the Companys actual financial results and could cause the Companys actual financial results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company, including (1) the potential impacts of the ongoing COVID-19 pandemic; (2) any changes in our strategic objectives or our ability to successfully implement such strategic objectives; (3) our ability to successfully execute our newer business ventures, including expansion of our portfolio of income producing commercial and multi-family properties, assisted living communities and hotels some or all of which may be negatively impacted by the COVID-19 pandemic; (4) any potential negative impact of our longer-term property development strategy, including losses and negative cash flows for an extended period of time if we continue with the self-development of granted entitlements; (5) significant decreases in the market value of our investments in securities or any other investments; (6) our ability to capitalize on strategic opportunities presented by a population growth in Florida due to retirees and individuals seeking vacation homes; (7) our ability to accurately predict market demand for the range of potential residential and commercial uses of our real estate; (8) volatility in the consistency and pace of our residential real estate sales; (9) any downturns in real estate markets in Florida or across the nation; (10) any reduction in the supply of mortgage loans or tightening of credit markets; (11) our ability to fully recover under claims for losses related to Hurricane Michael; (12) our dependence on the real estate industry and the cyclical nature of our real estate operations; (13) our ability to successfully and timely obtain land use entitlements and construction financing, maintain compliance with state law requirements and address issues that arise in connection with the use and development of our land, including the permits required for mixed-use and active adult communities; (14) changes in laws, regulations or the regulatory environment affecting the development of real estate; (15) our ability to effectively deploy and invest our assets, including our available-for-sale securities; (16) our ability to effectively manage our real estate assets, as well as the ability for us or our joint venture partners to effectively manage the day-to-day activities of our joint venture projects; (17) increases in operating costs, including costs related to real estate taxes, owner association fees, construction materials, labor and insurance, and our ability to manage our cost structure; (18) ability to mutually agree to joint venture structures with our potential joint venture partners and to successfully enter into previously announced potential joint ventures; (19) potential limitations on our ability to declare dividends at our expected rates, or at all; and (20) the other cautionary statements and risk factor disclosures contained in the Companys Securities and Exchange Commission filings including the Companys Annual Report on Form 10-K for the year ended December 31, 2019, the Companys Quarterly Reports on Form 10-Q for the quarter ended March 31, 2020 and June 30, 2020 which can be found at the SECs website www.sec.gov. The discussion of these risks is specifically incorporated by reference into this press release.

Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About The St. Joe Company

The St. Joe Company is a real estate development, asset management and operating company with real estate assets and operations in Northwest Florida, which the Company predominantly use, or intend to use, for or in connection with, our various residential, hospitality, commercial, leasing and forestry operations. More information about the Company can be found on its website at www.joe.com. On a regular basis, the Company releases a video showing progress on projects in development or under construction. See https://www.joe.com/video-gallery for more information.

2020, The St. Joe Company. St. Joe, JOE, the Taking Flight Design, St. Joe (and Taking Flight Design), and other amenity names used herein are the registered service marks of The St. Joe Company or its affiliates or others.

St. Joe Investor Relations Contact:

Marek Bakun

Chief Financial Officer

1-866-417-7132

[email protected]

Continue Reading

News

Ameriprise Financial Declares Regular Quarterly Dividend

gbafNews28

The Board of Directors of Ameriprise Financial, Inc. (NYSE: AMP) has declared a quarterly cash dividend of $1.04 per common share payable on November 20, 2020 to shareholders of record as of November 9, 2020.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive advisory, asset management and insurance capabilities and a nationwide network of approximately 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors’ financial needs. For more information, or to find an Ameriprise financial advisor, visit ameriprise.com.

2020 Ameriprise Financial, Inc. All rights reserved.

Paul Johnson

Ameriprise Financial

612.671.0625

[email protected]

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
gbafNews28 gbafNews28
News2 hours ago

Rayonier Reports Third Quarter 2020 Results

Rayonier Inc. (NYSE:RYN) today reported third quarter net loss attributable to Rayonier of ($0.8) million, or ($0.01) per share, on...

gbafNews28 gbafNews28
News2 hours ago

Ameriprise Financial Declares Regular Quarterly Dividend

The Board of Directors of Ameriprise Financial, Inc. (NYSE: AMP) has declared a quarterly cash dividend of $1.04 per common...

gbafNews28 gbafNews28
News2 hours ago

The St. Joe Company Reports Third Quarter 2020 Results and Initiates Quarterly Dividend Program

The St. Joe Company (NYSE: JOE) (the Company) today announced total revenue increased by approximately 28% to $42.0 million for...

gbafNews28 gbafNews28
News2 hours ago

Western Digital Reports Fiscal First Quarter 2021 Financial Results

Western Digital Corp. (Nasdaq: WDC) today reported fiscal first quarter 2021 financial results. I am pleased with our results, as...

gbafNews28 gbafNews28
News2 hours ago

Kimco Realty Declares Dividends on Class L and Class M Preferred Stock

Kimco Realty Corp. (NYSE: KIM), one of North Americas largest publicly traded owners and operators of open-air, grocery-anchored shopping centers...

gbafNews28 gbafNews28
News2 hours ago

Spok Reports 2020 Third Quarter Operating Results

Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced operating results for the third quarter ended...

gbafNews28 gbafNews28
News2 hours ago

Hercules Capital Gains Additional Liquidity for New Investments with Approval of Third SBA License

Hercules Capital, Inc. (NYSE: HTGC) (Hercules or the Company), the largest and leading specialty financing provider to innovative venture, growth...

gbafNews28 gbafNews28
News2 hours ago

ServiceSource Announces Planned CFO Transition

ServiceSource International, Inc. (NASDAQ: SREV), the customer journey experience company, today announces that Chad W. Lyne, ServiceSources Executive Vice President...

gbafNews28 gbafNews28
News2 hours ago

Fastly Ignites Developer Innovation On [email protected] with Extensive Tooling, Scalability, and Performance

Fastly, Inc. (NYSE: FSLY), provider of a global edge cloud platform, today announced major enhancements to its [email protected] solution, adding...

gbafNews28 gbafNews28
News2 hours ago

Cognex Reports Strong Results for the Third Quarter of 2020

Cognex Corporation (NASDAQ: CGNX) today reported financial results for the third quarter of 2020. Table 1 below shows selected financial...