On November 1, 2023, Rayonier Inc (RYN, Financial) released its third-quarter earnings report, revealing a net income of $19.2 million, or $0.13 per share, on revenues of $201.6 million. This compares to a net income of $20.6 million, or $0.14 per share, on revenues of $195.3 million in the same period last year.
Financial Performance
The company's third-quarter operating income was $35.4 million, compared to $40.9 million in the prior year period. Adjusted EBITDA for the quarter was $78.9 million, a 22% improvement from the $64.7 million reported in the same period last year. Year-to-date cash provided by operations was $208.9 million, while cash available for distribution (CAD) was $113.5 million.
Segment Performance
The Southern Timber segment reported sales of $64.0 million, a decrease of 1% from the prior year period. The Pacific Northwest Timber segment saw a 15% decrease in sales to $29.3 million. The New Zealand Timber segment reported sales of $70.4 million, a decrease of 3% from the prior year period. The Real Estate segment, however, saw a significant increase in sales to $31.2 million, up from $12.5 million in the prior year period.
CEO Commentary
“We generated strong third quarter results, particularly in light of the macroeconomic challenges that continue to adversely impact our timber businesses,” said David Nunes, CEO. “Adjusted EBITDA improved 22% versus the prior year quarter, primarily driven by a stronger contribution from our Real Estate segment and increased carbon credit sales in our New Zealand Timber segment."
Outlook
Looking ahead, the company expects full-year Adjusted EBITDA to be toward the higher end of its prior guidance range. This is due to an improved outlook for non-timber income in the Southern Timber segment, an improved outlook for carbon credit sales in the New Zealand Timber segment, and increased transaction volume expected to close in the fourth quarter in the Real Estate segment.
Explore the complete 8-K earnings release (here) from Rayonier Inc for further details.