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FOR RELEASE AT 5:00 P.M. Media Contact: Jay Fredericksen
THURSDAY, MARCH 22, 2001 904-357-9106
Investor Contact: Parag Bhansali
904-357-9155
RAYONIER HIGHLIGHTS CERTAIN FORM 10-K ITEMS
JACKSONVILLE, FL, March 22, 2001 - Rayonier (NYSE: RYN) today filed its
Annual Report on Form 10-K with the Securities and Exchange Commission. The
company said the 10-K incorporates several items that update information issued
in its year-end earnings press release:
1. Business segment reporting has been reformatted in line with the
company's strategy to focus on two core businesses, Performance Fibers and
Timberland Management. The reclassified sales and operating income for each
quarter of 2000 are shown in the new format in the accompanying analysis.
2. The major timberland sale that occurred in the first quarter of 2000
has been reclassified as operating activity to correspond with the company's new
strategy to annually sell 2 to 4 percent of its timberland holdings and
opportunistically replace the acreage over time. As a result, the following
changes took place:
a. Operating income for the year increased from $166.4 million
to $189.5 million. Net income was unchanged.
b. Depletion, depreciation and amortization increased from
$161.5 million to $176.9 million and now includes depletable costs associated
with the major timberland sale.
c. EBITDA increased from $347.7 million to $393.1 million,
also incorporating the remaining non-cash costs of the major timberland sale.
3. Sales reported in the 10-K are $1,226.9 million, approximately $57.4
million higher than the year-end preliminary amount, due to the reclassification
of the major timberland sale, and additional freight costs charged to cost of
sales in accordance with EITF-00-10 (accounting for shipping and handling
costs).
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4. The company reclassified certain contingent liabilities related to
long term compensation to the equity account to the extent that such
compensation would be paid in common shares. This change had no material effect
on the company's debt-to-capital ratio.
5. In the management's discussion and analysis section, the company
updated the earnings outlook for the first quarter of 2001, expressed in its
year-end earnings release, from "may be lower" to "will be lower" than fourth
quarter 2000 earnings before non-recurring items, due to the widening global
economic slowdown.
Rayonier is the world's premier producer of high performance specialty
cellulose and has 2.3 million acres of timber in the United States and New
Zealand. About half of Rayonier's sales are to international customers in 60
countries. In 2001, Rayonier is celebrating its 75th anniversary.
For further information, visit the company's website at
www.rayonier.com. Complimentary copies of Rayonier press releases and other
financial documents are available by calling 1-800-RYN-7611.
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RESTATED SEGMENT INFORMATION BY QUARTER FOR 2000
(in Millions)
Q1 Q2 Q3 Q4 Total Year
----- ----- ----- ----- ----------
SALES
- -----
Performance Fibers
Cellulose Specialties $ 87 $ 87 $ 83 $ 91 $ 348
Absorbent Materials 54 57 60 57 228
----- ----- ----- ----- --------
Total Performance Fibers 141 144 143 148 576
----- ----- ----- ----- --------
Timberland Management
Timber Harvest 63 50 40 57 210
Timberland and Real Estate 53 4 5 8 70
----- ----- ----- ----- --------
Total Timberland Management 116 54 45 65 280
----- ----- ----- ----- --------
Wood Products and Trading 108 115 86 92 401
Intersegment Eliminations (10) (9) (4) (7) (30)
----- ----- ----- ----- --------
Total Sales $ 355 $ 304 $ 270 $ 298 $ 1,227
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OPERATING INCOME/(LOSS)
- -----------------------
Performance Fibers $ 18 $ 21 $ 23 $ 21 $ 83
Timberland Management
Timber Harvest 41 28 17 28 114
Timberland and Real Estate 26 3 4 5 38
----- ----- ----- ----- --------
Total Timberland Management 67 31 21 33 152
----- ----- ----- ----- --------
Wood Products and Trading (2) (1) (8) (6) (17)
Provision for Dispositions -- -- -- (15) (15)
Corporate and Other (8) (4) (2) 1 (13)
----- ----- ----- ----- --------
Total Operating Income $ 75 $ 47 $ 34 $ 34 $ 190
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