Rayonier Inc. reported Q1 2023 net income of $8.3 million, or $0.06 per share, on revenues of $179.1 million. This compares to net income of $29.3 million, or $0.20 per share, on revenues of $222.0 million in the prior year quarter.
Q1 2023 operating income was $10.6 million versus $45.3 million in the prior year period. Q1 2023 operating income included a $2.3 million loss from a timber write-off resulting from a tropical cyclone casualty event in New Zealand. Excluding this item, pro forma operating income was $12.9 million versus $45.3 million in the prior year period. Q1 2023 adjusted EBITDA3 was $54.7 million versus $98.1 million in the prior year period.
“Our team navigated numerous market challenges throughout the Q1,” said David Nunes, CEO. “Amid weaker end-market demand and continued macroeconomic headwinds, the total Adjusted EBITDA generated by our Timber segments collectively declined 30% relative to an extraordinarily strong Q1 2022. Southern Timber Adjusted EBITDA declined $5.6 million relative to the prior year quarter, as weaker demand for pulp products and lumber coupled with drier weather conditions drove a 14% reduction in net stumpage prices. Pacific Northwest Timber Adjusted EBITDA fell $14.4 million versus the prior year quarter, driven by 24% lower harvest volumes and a 12% decline in domestic sawtimber prices, as both domestic and export markets weakened.”
“In our New Zealand Timber segment, Adjusted EBITDA declined $4.3 million versus the prior year quarter due to lower carbon credit sales, unfavorable foreign exchange impacts, and 7% lower harvest volumes resulting from the impacts of Cyclone Gabrielle, which struck the North Island of New Zealand in February. While delivered export sawtimber prices also declined by roughly 11%, stumpage realizations were relatively flat as shipping costs returned to more normalized levels.”
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.
