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Rayonier Reports a 13% Increase in First Quarter 2008 Results

April 22, 2008

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JACKSONVILLE, Fla., Apr 22, 2008 (BUSINESS WIRE) -- Rayonier (NYSE:RYN) today reported first quarter net income of $40.6 million, or 51 cents per share, compared to $35.1 million, or 45 cents per share, in first quarter 2007.

"Despite a weak timber market, first quarter results were quite good," said Lee M. Thomas, Chairman, President and CEO. "Softness in timber prices and lower volumes from our planned reductions in sawlog harvests were offset by strong demand in Performance Fibers and demand for higher and better use rural properties and non-strategic timberlands. We also executed on our strategy to grow and upgrade our timberland portfolio, as evidenced by our recent acquisitions of more than 110,000 acres in Washington and New York."

Cash provided by operating activities of $100 million was $48 million above the prior year period due to lower working capital requirements and higher operating earnings. Cash available for distribution(1) of $61 million was comparable to first quarter 2007. (See Schedule H for more details.)

Timber

In first quarter 2008, sales and operating income were $47 million and $12 million, $18 million and $14 million below the prior year period, respectively, due to the weak housing market's impact on sawlog pricing and the Company's planned reductions in sawlog volume. Based on current conditions, the Company expects to continue to limit its sawtimber harvest for the balance of the year preserving higher-value timber until markets improve.

Real Estate

Sales and operating income were $29 million and $22 million, $8 million and $7 million above first quarter 2007, respectively, due to increased rural property prices and volumes and non-strategic timberland sales. The first quarter improvement in volume was partially attributable to the acceleration of transactions originally expected to close in second quarter 2008.

Performance Fibers

Sales and operating income were $175 million and $37 million, an improvement of $9 million and $10 million from the prior year period, respectively. Increased prices and lower depreciation expense more than offset higher raw materials costs as well as the maintenance costs and lower volume resulting primarily from unplanned downtime early in the quarter.

Other Items

Corporate expenses were $7 million, down $2 million from the prior year period primarily due to lower stock-based and other incentive compensation expenses.

Interest expense of $11 million was $2 million below first quarter 2007 primarily due to lower interest rates resulting from the fourth quarter 2007 debt refinancing.

The first quarter effective tax rate before discrete items increased to 20.5 percent compared to 16.7 percent in 2007 due to proportionately higher earnings from the Company's taxable REIT subsidiary.(2) Including discrete items, the first quarter effective tax rate was 20.2 percent.

Outlook

"Given the outlook for the timber and real estate markets, we expect that second quarter and full year 2008 earnings will be below prior year periods. However, we anticipate that the softness in those markets will be somewhat offset by the continued strength in Performance Fibers," said Thomas. "In Real Estate, we anticipate continued interest in rural properties and non-strategic timberlands although sales will be more heavily weighted to the second half of the year. Cash available for distribution is expected to remain strong, although below 2007."

Further Information

A conference call will be held on Tuesday, April 22, at 2:00 p.m. ET to discuss these results. Interested parties are invited to listen to the live Webcast by logging on to www.rayonier.com and following the link. Investors may also choose to access the "listen only" conference call by dialing 913-981-5584. Supplemental materials will be available at the website. A replay will be available on the site shortly after the call, and it will be archived for one month.

For further information, visit the company's web site at www.rayonier.com. Complimentary copies of Rayonier press releases and other financial documents are also available by mail or fax by calling 1-800-RYN-7611.

(1) Cash available for distribution (CAD) is a non-GAAP measure defined and reconciled to GAAP in the attached exhibits.

(2) See Schedule J for details.

Rayonier is a leading international forest products company with three core businesses: Timber, Real Estate and Performance Fibers. The company owns, leases or manages 2.6 million acres of timber and land in the United States and New Zealand. The company's holdings include approximately 200,000 acres with residential and commercial development potential along the fast-growing Interstate 95 corridor between Savannah, Georgia, and Daytona Beach, Florida. Its Performance Fibers business is the world's leading producer of high-value specialty cellulose fibers. Approximately 40 percent of the company's sales are outside the U.S. to customers in more than 50 countries. Rayonier is structured as a real estate investment trust. More at www.rayonier.com.

Certain statements in this document regarding anticipated financial outcomes including earnings guidance, if any, business and market conditions, outlook and other similar statements relating to Rayonier's future financial and operational performance, 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," "anticipate" and other similar language. Forward-looking statements are not guarantees of future performance and undue reliance should not be placed on these statements.

The following important factors, among others, could cause actual results 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; entry of new competitors into our markets; changes in global economic conditions and world events, including political changes in particular regions or countries; changes in energy and raw material prices, particularly for our performance fibers and wood products businesses; unanticipated equipment maintenance and repair requirements at our manufacturing facilities; the geographic concentration of a significant portion of our timberland; our ability to identify and complete timberland acquisitions; changes in environmental laws and regulations, including laws regarding air emissions and water discharges, remediation of contaminated sites, timber harvesting, delineation of wetlands, and endangered species, 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, which can adversely affect our timberlands and the production, distribution and availability of our products and raw materials such as wood, energy and chemicals; interest rate and currency movements; the availability of credit generally, including its impact on the cost and terms of obtaining financing; our capacity to incur additional debt, and any decision we may make to do so; changes in tariffs, taxes or treaties relating to the import and export of our products or those of our competitors; the ability to complete like-kind-exchanges of timberlands and real estate; changes in key management and personnel; our ability to continue to qualify as a REIT and to fund distributions using cash generated through our taxable REIT subsidiaries; and changes in tax laws that could reduce the benefits associated with REIT status.

In addition, specifically with respect to our Real Estate business, the following important factors, among others, could cause actual results to differ materially from those expressed in forward-looking statements that may have been made in this document: the cyclical nature of the real estate business generally, including fluctuations in demand for both entitled and unentitled property; the lengthy, uncertain and costly process associated with the ownership, entitlement and development of real estate, especially in Florida, which also may be affected by changes in law, policy and political factors beyond our control; the potential for legal challenges to entitlements and permits in connection with our properties; unexpected delays in the entry into or closing of real estate transactions; the existence of competing developers and communities in the markets in which we own property; the pace of development and the rate and timing of absorption of existing entitled property in the markets in which we own property; changes in the demographics affecting projected population growth and migration to the Southeastern U.S.; changes in environmental laws and regulations, including laws regarding water withdrawal and management and delineation of wetlands, that may restrict or adversely impact our ability to sell or develop properties; the cost of the development of property generally, including the cost of property taxes, labor and construction materials; the timing of construction and availability of public infrastructure; and the availability of financing for real estate development and mortgage loans.

Additional factors are described in the company's most recent Form 10-K on file with the Securities and Exchange Commission. Rayonier assumes no obligation to update these statements except as is required by law.

                               RAYONIER
                         FINANCIAL HIGHLIGHTS
                      MARCH 31, 2008 (unaudited)
         (millions of dollars, except per share information)

                                         Three Months Ended
                               ---------------------------------------
                               March 31,    December 31,    March 31,
                                 2008          2007            2007
                               --------- ---------------    ----------
Profitability
 Sales                         $  284.2    $      290.4     $   299.7
 Operating income              $   60.5    $       43.1     $    55.2
 Pro forma operating income
  (a)                          $   60.5    $       43.9     $    55.2
 Net income                    $   40.6    $       34.4     $    35.1
 Income per diluted common
  share
    Net income                 $   0.51    $       0.44     $    0.45
    Pro forma net income (a)   $   0.51    $       0.45     $    0.45
 Pro forma operating income as
  a percent of sales (a)           21.3%           15.1%         18.4%
 Average diluted shares
  (millions)                       79.2            79.3          78.5

                                         Three Months Ended March 31,
                                         -----------------------------
                                               2008            2007
                                         ---------------    ----------
Capital Resources and
 Liquidity
    Cash provided by operating
     activities                            $      100.2     $    52.4
    Cash used for investing
     activities                            $      (38.2)    $   (46.9)
    Cash used for financing
     activities                            $      (96.1)    $   (17.0)
 Adjusted EBITDA (b) (d)                   $       96.5     $    97.5
 Cash Available for
  Distribution (CAD) (c) (d)               $       61.4     $    60.8

                                               03/31/08      12/31/07
                                         ---------------    ----------
 Debt                                      $      694.8     $   749.8
 Debt / capital                                    41.3%         43.3%
 Cash                                      $      146.9     $   181.1

(a), (b), (c) and (d), see Schedule B.



                                - A -

                                RAYONIER
                       FOOTNOTES FOR SCHEDULE A
                      MARCH 31, 2008 (unaudited)


 (a) Pro forma operating income and net income are non-GAAP measures.
      See Schedule H for reconciliation to the nearest GAAP measure.
 (b) Adjusted EBITDA is defined as earnings from operations before
      interest, taxes, depreciation, depletion, amortization and the
      non-cash cost basis of real estate sold. Adjusted EBITDA is a
      non-GAAP measure of operating cash generating capacity of the
      Company. See reconciliation on Schedule I.
 (c) Cash Available for Distribution (CAD) is defined as cash provided
      by operating activities less capital spending, adjusted for the
      tax benefits associated with certain strategic acquisitions, the
      change in committed cash and other items which include the
      proceeds from matured energy forward contracts and the change in
      capital expenditures purchased on account. CAD is a non-GAAP
      measure of cash generated during a period that is available for
      dividend distribution, repurchase of the Company's common
      shares, debt reduction and for strategic acquisitions net of
      associated financing. See reconciliation on Schedule H.
 (d) Management considers these measures to be important to estimate
      the enterprise and shareholder values of the Company as a whole
      and of its core segments, and for allocating capital resources.
      In addition, analysts, investors and creditors use these
      measures when analyzing the financial condition and cash
      generating ability of the Company.



                                - B -

                               RAYONIER
             CONDENSED STATEMENTS OF CONSOLIDATED INCOME
                      MARCH 31, 2008 (unaudited)
         (millions of dollars, except per share information)

                                         Three Months Ended
                               ---------------------------------------
                                 March 31,   December 31,  March 31,
                                   2008          2007         2007
                               ------------- ------------ ------------
Sales                          $      284.2  $     290.4  $     299.7
                               ------------- ------------ ------------
Costs and expenses
   Cost of sales (a)                  211.0        231.9        231.7
   Selling and general
    expenses                           14.9         18.1         15.8
   Other operating income, net         (2.2)        (2.7)        (3.0)
                               ------------- ------------ ------------
Operating income (a)                   60.5         43.1         55.2
Interest expense                      (11.2)       (14.1)       (13.6)
Interest and other income, net          1.5          4.1          1.0
                               ------------- ------------ ------------
Income before taxes                    50.8         33.1         42.6
Income tax (expense) / benefit        (10.2)         1.3         (7.5)
                               ------------- ------------ ------------
Net income                     $       40.6  $      34.4  $      35.1
                               ============= ============ ============
Income per Common Share:
   Basic
     Net income                $       0.52  $      0.45  $      0.45
                               ============= ============ ============
   Diluted
     Net income                $       0.51  $      0.44  $      0.45
                               ============= ============ ============
     Pro forma net income (b)  $       0.51  $      0.45  $      0.45
                               ============= ============ ============
Weighted average Common
Shares used for determining
     Basic EPS                   78,254,220   77,969,013   77,130,711
                               ============= ============ ============
     Diluted EPS                 79,212,287   79,264,982   78,528,221
                               ============= ============ ============


(a)Cost of sales and operating income for the three months December
    31, 2007 include a $0.8 million charge, for timber destroyed by
    forest fires. Excluding this amount, cost of sales and operating
    income were $231.1 million and $43.9 million, respectively.

(b)Non-GAAP measure, see Schedule H for a reconciliation to the
    nearest GAAP measure.


                                - C -

                               RAYONIER
          BUSINESS SEGMENT SALES AND OPERATING INCOME (LOSS)
                      MARCH 31, 2008 (unaudited)
                        (millions of dollars)

                                           Three Months Ended
                                  ------------------------------------
                                   March 31,  December 31,  March 31,
                                     2008         2007        2007
                                  ----------- ------------ -----------
Sales
    Timber                        $     47.2  $      49.4  $     65.0
    Real Estate                         29.4         10.2        21.0
    Performance Fibers
      Cellulose specialties            132.7        143.3       129.5
      Absorbent materials               42.2         56.0        36.9
                                  ----------- ------------ -----------
          Total Performance
           Fibers                      174.9        199.3       166.4
                                  ----------- ------------ -----------
    Wood Products                       18.9         20.3        19.7
    Other Operations                    13.8         11.2        27.6
                                  ----------- ------------ -----------
          Total sales             $    284.2  $     290.4  $    299.7
                                  =========== ============ ===========

Pro forma operating income/(loss)(a)
    Timber                        $     12.0  $      11.8  $     26.3
    Real Estate                         21.8          6.0        15.2
    Performance Fibers                  37.1         39.9        27.1
    Wood Products                       (2.5)        (2.9)       (3.3)
    Other Operations                    (0.6)        (1.3)       (1.3)
    Corporate and other                 (7.3)        (9.6)       (8.8)
                                  ----------- ------------ -----------
          Pro forma operating
           income (a)             $     60.5  $      43.9  $     55.2
                                  =========== ============ ===========

(a)Timber segment pro forma operating income excludes the $0.8 million
    fire loss for the three months ended December 31, 2007. Pro forma
    operating income is a non-GAAP measure, see Schedule H for a
    reconciliation to the nearest GAAP measure.


                                - D -

                               RAYONIER
  CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CASH FLOWS
                      MARCH 31, 2008 (unaudited)
                        (millions of dollars)

CONDENSED CONSOLIDATED BALANCE SHEETS

                                             March 31,   December 31,
                                                2008         2007
                                            ------------ -------------
 Assets
     Current assets                         $     351.1  $      396.2
     Timber and timberlands, net of
      depletion and amortization                1,122.3       1,117.2
     Property, plant and equipment              1,361.5       1,340.2
     Less - accumulated depreciation           (1,006.8)       (994.4)
                                            ------------ -------------
                                                  354.7         345.8
                                            ------------ -------------
     Investment in New Zealand JV                  68.8          62.8
     Other assets                                 151.8         157.0
                                            ------------ -------------
                                            $   2,048.7  $    2,079.0
                                            ============ =============
 Liabilities and Shareholders' Equity
     Current liabilities                    $     180.8  $      218.4
     Long-term debt                               694.3         694.3
     Non-current liabilities for
      dispositions and discontinued
      operations                                  102.4         103.6
     Other non-current liabilities                 81.6          81.6
     Shareholders' equity                         989.6         981.1
                                            ------------ -------------
                                            $   2,048.7  $    2,079.0
                                            ============ =============
 CONDENSED CONSOLIDATED STATEMENTS OF CASH
  FLOWS
                                                Three Months Ended
                                            --------------------------
                                             March 31,     March 31,
                                                2008         2007
                                            ------------ -------------
 Cash provided by operating activities:
     Net Income                             $      40.6  $       35.1
     Depreciation, depletion, amortization
      and non-cash basis of real estate
      sold                                         36.1          42.3
     Other non-cash items included in
      income                                        8.0           4.9
     Changes in working capital and other
      assets and liabilities                       15.5         (29.9)
                                            ------------ -------------
                                                  100.2          52.4
                                            ------------ -------------
 Cash used for investing activities:
     Capital expenditures                         (31.8)        (31.4)
     Purchase of timberlands and wood
      chipping facilities                         (19.6)         (8.7)
     Decrease / (increase) in restricted
      cash                                         10.0         (14.0)
     Other                                          3.2           7.2
                                            ------------ -------------
                                                  (38.2)        (46.9)
                                            ------------ -------------
 Cash used for financing activities:
     (Repayment) / borrowing of debt, net         (55.0)         12.0
     Dividends paid                               (39.1)        (36.3)
     Issuance of common shares                      0.6           5.1
     Repurchase of common shares                   (3.5)            -
     Excess tax benefits from equity-based
      compensation                                  0.9           2.2
                                            ------------ -------------
                                                  (96.1)        (17.0)
                                            ------------ -------------
 Effect of exchange rate changes on cash           (0.1)         (0.2)
                                            ------------ -------------
 Cash and cash equivalents:
     Decrease in cash and cash equivalents        (34.2)        (11.7)
     Balance, beginning of year                   181.1          40.2
                                            ------------ -------------
     Balance, end of period                 $     146.9  $       28.5
                                            ============ =============


                                - E -

                               RAYONIER
                 SELECTED SUPPLEMENTAL FINANCIAL DATA
                      MARCH 31, 2008 (unaudited)
                        (millions of dollars)

                                          Three Months Ended
                                 -------------------------------------
                                  March 31,    December 31, March 31,
                                     2008         2007         2007
                                 ------------ ------------- ----------

Timber
    Sales
       Western U.S.              $    20.6     $     20.1       $30.7
       Eastern U.S.                   24.1           25.7        31.1
       New Zealand                     2.5            3.6         3.2
                                 ------------ ------------  ----------
          Total                  $    47.2     $     49.4       $65.0
                                 ============ ============  ==========

    Pro forma operating income
     (a)
       Western U.S.              $     8.5     $      5.7       $18.0
       Eastern U.S. (a)                2.5            5.9         7.8
       New Zealand                     1.0            0.2         0.5
                                 ------------ ------------  ----------
          Total                  $    12.0     $     11.8       $26.3
                                 ============ ============  ==========

Adjusted EBITDA by Segment (b)
    Timber                       $    30.1     $     30.6       $48.0
    Real Estate                       27.0            7.7        18.8
    Performance Fibers                48.2           58.5        42.4
    Wood Products                     (1.1)          (1.5)       (1.7)
    Other Operations                  (0.6)          (1.6)       (1.3)
    Corporate and other               (7.1)          (9.4)       (8.7)
                                 ------------ ------------  ----------
       Total                     $    96.5     $     84.3       $97.5
                                 ============ ============  ==========

(a) Timber segment pro forma operating income excludes the $0.8
     million fire loss for the three months ended December 31, 2007.
     Pro forma operating income is a non-GAAP measure, see Schedule H
     for a reconciliation to the nearest GAAP measure.
(b) Adjusted EBITDA is a non-GAAP measure, see Schedule I for
     reconciliation to nearest GAAP measure.


                                - F -

                               RAYONIER
                    SELECTED OPERATING INFORMATION
                      MARCH 31, 2008 (unaudited)

                                            Three Months Ended
                                     ---------------------------------
                                     March 31,  December 31, March 31,
                                       2008        2007        2007
                                     --------- ------------- ---------
Timber
 Sales Volume
   Western U.S.
     in millions of board feet             59            47        79
   Eastern U.S.
     in thousands of short green tons   1,312         1,615     1,643

Real Estate
 Acres sold
 HBU Development                           47           351       123
 HBU Rural                              6,488           861     6,014
 Non-Strategic Timberlands              4,073             -         -
                                     --------- ------------- ---------
 Total                                 10,608         1,212     6,137

Performance Fibers
 Sales Volume
   Cellulose specialties,
     in thousands of metric tons          107           123       114
   Absorbent materials,
     in thousands of metric tons           56            75        55
 Production as a percent of capacity     94.7%         99.4%     95.1%

Lumber
 Sales volume,
  in millions of board feet                74            81        73


                                - G -

                               RAYONIER
                 RECONCILIATION OF NON-GAAP MEASURES
                      MARCH 31, 2008 (unaudited)
         (millions of dollars, except per share information)


CASH AVAILABLE FOR DISTRIBUTION:
                                                Three Months Ended
                                               --------------------
                                               March 31,  March 31,
                                                 2008       2007
                                               ---------- ---------
 Cash provided by operating activities         $   100.2   $  52.4
 Capital spending (a)                              (31.8)    (31.4)
 (Increase) / decrease in committed cash            (8.0)     27.8 (b)
 Equity based compensation adjustments                 -       5.8
 Like-kind exchange tax benefits on real estate
  sales (c)                                         (2.9)     (1.0)
 Other                                               3.9       7.2
                                               ---------- ---------
 Cash Available for Distribution               $    61.4   $  60.8
                                               ========== =========


(a) Capital spending excludes strategic acquisitions and dispositions.
(b) Primarily 2006 interest paid in 2007 and previously reflected as a
 reduction in 2006 CAD.
(c) Represents taxes that would have been paid if the Company had not
 completed LKE transactions.

PRO FORMA OPERATING INCOME AND NET INCOME:

                                       Three Months Ended
                          --------------------------------------------
                            March 31,     December 31,    March 31,
                               2008           2007           2007
                          -------------- -------------- --------------

                                  Per            Per            Per
                                 Diluted        Diluted        Diluted
                            $    Share     $    Share     $    Share
                          ----- -------- ----- -------- ----- --------
Operating Income          $60.5          $43.1          $55.2
 Forest fire loss             -            0.8              -
                          -----          -----          -----
Pro Forma Operating
 Income                   $60.5          $43.9          $55.2
                          =====          =====          =====

Net Income                $40.6    $0.51 $34.4    $0.44 $35.1    $0.45
 Forest fire loss             -        -   0.8     0.01     -        -
                          ----- -------- ----- -------- ----- --------
Pro Forma Net Income      $40.6    $0.51 $35.2    $0.45 $35.1    $0.45
                          ===== ======== ===== ======== ===== ========


                                - H -

                               RAYONIER
                 RECONCILIATION OF NON-GAAP MEASURES
                      MARCH 31, 2008 (unaudited)
                        (millions of dollars)

ADJUSTED EBITDA:


                                                        Cor-
                               Perfor-          Other  porate
                        Real    mance    Wood   Oper-   and
                Timber  Estate Fibers  Products ations  other   Total
               ------- ------- ------- -------- ------ ------- -------
 Three Months Ended
 March 31, 2008
  Cash
   provided by
   operating
   activities    $26.5  $26.2  $ 58.3    $(4.0) $ 2.2  $ (9.0) $100.2
  Income tax
   expense           -      -       -        -      -    10.2    10.2
  Interest,
   net               -      -       -        -      -     9.7     9.7
  Working
   capital and
   other           3.6    0.8   (10.1)     2.9   (2.8)  (18.0)  (23.6)
               ------- ------- ------- -------- ------ ------- -------
  Adjusted
   EBITDA        $30.1  $27.0  $ 48.2    $(1.1) $(0.6) $ (7.1) $ 96.5
               ======= ======= ======= ======== ====== ======= =======
 December 31, 2007
  Cash
   provided by
   operating
   activities    $20.0  $ 6.5  $ 81.9    $ 0.3  $(4.3) $(44.1) $ 60.3
  Income tax
   benefit           -      -       -        -      -    (1.3)   (1.3)
  Interest,
   net               -      -       -        -      -    10.2    10.2
  Working
   capital and
   other          10.6    1.2   (23.4)    (1.8)   2.7    25.8    15.1
               ------- ------- ------- -------- ------ ------- -------
  Adjusted
   EBITDA        $30.6  $ 7.7  $ 58.5    $(1.5) $(1.6) $ (9.4) $ 84.3
               ======= ======= ======= ======== ====== ======= =======
 March 31, 2007
  Cash
   provided by
   operating
   activities    $47.3  $19.0  $ 45.4    $(1.3) $(7.3) $(50.7) $ 52.4
  Income tax
   expense           -      -       -        -      -     7.5     7.5
  Interest,
   net               -      -       -        -      -    12.6    12.6
  Working
   capital and
   other           0.7   (0.2)   (3.0)    (0.4)   6.0    21.9    25.0
               ------- ------- ------- -------- ------ ------- -------
  Adjusted
   EBITDA        $48.0  $18.8  $ 42.4    $(1.7) $(1.3) $ (8.7) $ 97.5
               ======= ======= ======= ======== ====== ======= =======


                                - I -

                               RAYONIER
    RECONCILIATION OF STATUTORY INCOME TAX TO REPORTED INCOME TAX
                      MARCH 31, 2008 (unaudited)
              (millions of dollars, except percentages)

                                       Three Months Ended
                          --------------------------------------------
                            March 31,     December 31,    March 31,
                               2008           2007           2007
                          -------------- -------------- --------------
                             $      %       $      %       $      %
                          ------- ------ ------- ------ ------- ------

 Income tax provision at
  the U.S. statutory rate $(17.8) (35.0) $(11.6) (35.0) $(14.9) (35.0)

 REIT income not subject
  to federal tax             9.1   17.9    11.5   34.8    10.7   25.2

 Lost deduction on REIT
  interest expense and
  overhead expenses
  associated with REIT
  activities                (1.4)  (2.8)   (3.0)  (9.1)   (3.1)  (7.2)



 Foreign, state and local
  income taxes, foreign
  exchange rate changes
  and permanent
  differences               (0.3)  (0.6)    0.4    1.3     0.2    0.3
                          ------- ------ ------- ------ ------- ------

 Income tax expense
  before discrete items   $(10.4) (20.5) $ (2.7)  (8.0) $ (7.1) (16.7)

 Return to accrual
  adjustment                   -      -     0.1    0.3       -      -

 Taxing authority
  settlements and FIN 48
  adjustments               (0.1)  (0.3)    1.1    3.3       -      -

 Deferred tax adjustments
  / other                    0.3    0.6     2.8    8.4    (0.4)  (0.9)
                          ------- ------ ------- ------ ------- ------

 Income tax (expense) /
  benefit                 $(10.2) (20.2) $  1.3    4.0  $ (7.5) (17.6)
                          ======= ====== ======= ====== ======= ======


                                - J -

SOURCE: Rayonier, Inc.

Rayonier, Jacksonville
Investors
Carl Kraus, 904-357-9158
or
Media Relations
Shannon Thuren, 904-357-9181

Contact

Mark McHugh

Senior Vice President and Chief Financial Officer

Phone: (904) 357-9100

investorrelations@rayonier.com

Transfer Agent

For essential services such as change of address, lost certificates or dividend checks, or change in registered ownership, please write or call:

  • Regular Mail
  • Computershare
  • P.O. Box 43006
  • Providence, RI 02940-3006
  • United States
  • Overnight Delivery
  • Computershare
  • 250 Royall Street
  • Canton, MA 02021
  • United States

Inside the U.S.: (800) 659-0158

Outside the U.S.: (201) 680-6587

For online inquiries, please visit https://www-us.computershare.com.

Please include your name, address, account number and telephone number with all correspondence.

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