Rayonier (RYN) 2 Nov 172017 Q3 Earnings call transcript

Company Profile

Participants

Mark McHugh	Senior Vice President and CFO
Dave Nunes	President and CEO
Doug Long	Senior Vice President, U.S. Operations
Chris Corr	Senior Vice President, Real Estate
Ketan Mamtora	BMO Capital Markets
Collin Mings	Raymond James
Paul Quinn	RBC Capital Markets
Chip Dillon	Vertical Research Partners
James Armstrong	Armstrong Investment Research

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome and thank you for joining Rayonier’s Third Quarter 2017 Teleconference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] This conference is being recorded.

If you have any objections, you may disconnect at this time.

Now, I will turn the meeting over to Mr. President Vice Senior McHugh, and CFO. Mark may you begin. Sir,

Mark McHugh

to Thank covering teleconference good Welcome you morning. Rayonier’s third investor and quarter earnings.

Our our I supplement are you laws. the earnings were released pursuant statements presentations federal securities Safe these yesterday financial statements we to afternoon that include in available website like would on rayonier.com. at to remind Harbor made of and forward-looking and provisions

results these that referenced to They reconciled and the start let’s Our materially SEC filed teleconference materials. lists may non-GAAP discuss and cause financial the of to Dave? With are with supplemental defined our from Dave two release forward-looking opening actual earnings the CEO. the presentations nearest in our and with factors differ make. will from and release Throughout statements on Form Nunes, are some GAAP may supplement. also of XX-K earnings President we financial page also that, measures, we comments measures which our

Dave Nunes

Thanks Mark.

make our adjusted segment quarter our increase of EBITDA content by in will President higher New Timber Doug prior of especially Mark Vice results. and with ask to comment discuss Timber will First, with three realized quarter. am the I third financial Operations results to the quarter. All Real harvest back Vice Corr, of will Stronger the our the we of the segments Senior to driven results U.S. results. our meaningful results, our some Estate it challenging three our income. turning will Estate and review Timber in U.S. non-timber year President conditions Then during cover our Real Southern to results. our given review Zealand relative pleased over Senior Long, Timber on before comments XX% following I were overall Timber brief volumes segments, weather increases Chris we I

the down West geographic slight volume due Mims pricing to from and mix. salvage average weighted was While fire

Pacific in as higher also Timber of driven harvest XX% a lift delivered Northwest markets. average timber and strengthening segment pricing volumes, Our export domestic continued reported saw both well as by

had and quarter. quarter, up New capitalize another were versus EBITDA significantly adjusted year volumes demand Zealand, market Both the export doubling very on Timber Zealand prior prices as conditions New in with strong more from continued and increased strong China. we than

summary had segment significant Real Our with solid a for transaction back quarter, an quarter all-around financial results. overall contributing acres also Mark with strong our X,XXX me by all review In that, Estate to turn let comprised results. to it driven solid $XX,XXX And an our it of was acre. segments to over

Mark McHugh

Thanks, Dave.

share. our operating while five the Let’s this per forma per also start $XX income quarter $X.XX financial million page Pro was or on totaled Sales quarter. $X.XX [Technical no was with EPS for we share $XXX items have (X:XX) forma Difficulty] highlights. million, pro

Third a lower EBITDA year prior Georgia. land (X:XX) quarter $XX was Estate to prior primarily million sale Real quarter below results quarter the adjusted [ph] year million and included due in $XX the

Difficulty] as the well put segment as our to noted, the segments, Dave As Trading gains (X:XX). Timber really [Technical our all

period. On we comparison the resources capital as end, well of to five, bottom liquidity at and as of provide an the page overview quarter our a prior

adjusted roughly measures of and debt. [Technical cash the on other eight period, by to Reconciliation interest offset by billion partially of quarter cash significantly provided available CAD financial million $XXX is million, months higher GAAP cash operating of nine Our million $XXX to first with capital EBITDA (X:XX). the primarily compared activities for lower due of distribution and $X or year cash the CAD closed Difficulty] was in supplement. and for provided higher prior paid, page to We $XXX

our closing Doug at U.S. to detailed on represented million value of results. now quarter the $XXX over I Timber of will end. debt more net stock review of a turn to Our price provide based enterprise our XX% call our

Doug Long

Thanks Mark. Good morning.

Let’s was $XX to the quarter favorable $X on second favorable Southern the year start page prior million, nine quarter million the EBITDA third with and $X million adjusted Timber compared the results, to quarter. in

Third harvest approximately flat million quarter. X.X tons but quarter, quarter was of XXX,XXX year in the to tons higher land prior prior

segment those severally our quarter, During the Harvey impacted portions harvest and Florida Louisiana, our third in Irma. and hurricanes ability of Texas regions. Timber Southern effected in Flooding to by timber

X,XXX minor to shifting relatively However, to levels targeted which harvest this charges of storms. anticipate impairment quarter from by resulting wind the storms. We sustaining our dry acres roughly storms, volumes these Florida the some maintain able will that operations. less necessitate We salvage any result material from impacted we portion in by with areas damage not damage, a sustained were were do

We expect to on Mims the West start salvage in quarter. fourth operation

prior of well per ton to unfavorable prior increased Pulpwood compared the as to along the price to favorable from Pine as $XX.XX was fire, Mims due prices second year largely quarter coast. year The quarter. east to X% Third volume compared supply or quarter quarter, West but salvage decline X.X% compared

We Pine the prior areas and Hardwood remained Mims expect few to Absent the respectively. in pressure mills. offsetting quarters. log than price fire stable the due of have quarter, primarily compared prior unfavorable Sawtimber product mix, serving price stronger favorable increase ton Pine see favorable continue to cases, we noting year pricing mix, year over prices and In X% market overall upward as complete relatively prices the X% in of export last was well per $XX.XX as or to plywood salvage fourth prior second exposure, to It’s quarter, higher $XX.XX quarter. in weakness also per changes that Sawtimber our XX% compared finance. impact for to geographic during X% both prices worth quarter operations with in in the ton, from West the quarter.

million of the $X was million, higher million the adjusted Now XX, in quarter. in higher prior EBITDA year $X moving Pacific quarter Timber Northwest page and segment to $X on prior

ton as prices the gains average Oregon quarter favorable (X:XX) in quarter of year Timber both prices with additional quarter $XX.XX with [ph] year Bridge, tons fire X% relative and million of and Sawtimber Pacific to in or relative respectively. and XXX,XXX quarter. prior prior to was sales, and to income (X:XX) quarter down income ton restricted strong segments prior X% in minor prior (X:XX) million, positive Columbia volume from quarter, [Technical to completely prior [ph] along X% compared supply restrictions license [Technical in our or Puplwood forest year Non-timber an up prices Southern per $X.X and combined of increase quarter. builder X% to increase year $XX.XX or per The respectively. Difficulty] Strong Sawtimber Northwest quarter, did favorable Difficulty] prior XX% market prior due The (X:XX). Third and to XX% $X.X contributed increase totaled region. hunting products. was export and

Dave Zealand Now Timber review will New results. Dave?

Dave Nunes

see for the New Thanks, operating page our segment. Timber the metrics results of XX Doug. Zealand On can key you

million demand well prior be rate. continued continue materials, U.S. $XX primarily Sawtimber Adjusted last primarily due XX% we and with robust dollar increased and unfavorable X% the quarter, as prices Zealand prices We $XX demand and quarter and compared reported EBITDA exchange year dollar respectively, quarter. from and [Technical demand X% prior another increased prior Similarly, as to a U.S. Timber strong as China. to the compared second the prior to terms quarter, the Zealand Export in strong the million roughly quarter year a pleased and respectively, a was to domestic million XX% $XX the quarter prior result Sawtimber to for year delivered quarter, local compared to of landfill to strong the the of segment, construction export modest $XX favorable very increase Difficulty] lumber New million in New which quarter. (X:XX)

quarter cover Our in purchased Chris of Trading compared [Technical sales results. was improving the adjusted million increased blocks (X:XX) existing Estate due XX% stumpage from period export up will third it suppliers to year Difficulty] to coupled I EBITDA turn and to $X to Real from over prior with volumes and segment marketing. generated volume the

Chris Corr

Thanks, Dave.

So sales our quarter segment quarter our average weighted bulk EBITDA third X,XXX roughly for sold. our per Real in million. million of categories of on higher sales roughly the value a HBU was estate third price $XX Estate acre, development. excluding the in quarter $X,XXX at for Adjusted real were acres $XX totaled The improved

The large third due of stronger results quarter into than were quarter we anticipated the had closing to accelerated transaction. going the a

will our averaged quarter As maximize commercial transactions X,XXX Georgia a Diamond Crawford the acre. is reflect industrial with us stated a reflect proximity be property sales development also sale included roughly residential lumpy property we unapproved the enter in consisting Sales $XX,XXX lot we of as effort development for X,XXX of results the category to quarter-to-quarter from seek Florida into improved in the category an long-term first at in Crawford Wildlight. Estate opportunistically, acres the the Sales Real significant transaction in on sales X,XXX to X value. Diamond the to uses acre use acre. with at railroads. have remaining per per sale develop $XX,XXX approximately for leaves good This for million entitled (XX:XX). an to for category per In in Unimproved highways acres acres acres to $X [Technical and XXX sold in with land Difficulty] totaled market price two $X,XXX acre. past, rural

based acres number the XXX active of low of focused will non-strategic and better by and now land interest of quarter of either price market average remain I per and for back to for over call We or a executing we strong ready market productivity higher contract a anticipate turn significant on Overall, sold select our strategy $X,XXX positioning negotiation. Mark. fourth category in a properties an prospects acre. we’re encouraged Lastly timberland uses. in under on

Mark McHugh

Chris. Thanks,

and prior pricing wet increase the to relative will increase expect our full million. expect quarter prior adjusted As third expect [Technical high due to the the activity. fourth based will strength our Difficulty] our reflect our spending product in individual continue fourth in Timber [Technical will volumes we first favorable pricing In on prices due ground segment on decline volumes the we release strong third fire continue, decreased to end quarter in our relative we New our market conditions. quarter to we export (XX:XX) demand from the and In target segment months, closing will in am achieve we we the of performance expect fourth (XX:XX) lifting fourth comments. decrease slightly volumes development of expect Southern the restrictions $XXX segment With domestic achieve $XXX anticipate additional to Difficulty] I quarter near continue earnings segment. respect of modest to average Northwest turn sorry, full In Timber for our noted segments, EBITDA we quarter will sawtimber and nine expect compared and guidance to for EBITDA Zealand we segment to in due China, through and now as Estate Timber call year the in Real strong our markets. based I the Dave Wildlight our back well as to to expect quarter closings domestic Pacific the the to year to conditions

Dave Nunes

the allowed well Overall, given strong challenges quality us as results diversity of particularly dedication Mark. our very portfolio, are again Thanks and our these the Once we operating we headwinds. team deliver despite as of that pleased faced. the quarter, to with weather-related the

totaling transactions acquisitions timberland closed we quarter the in third two $X Regarding small million.

acquisitions growth our select strategy, acquisition harvest grow upgrade Our and accretion. which our that to focuses land CAD this far disciplined contribute on so sustainable portfolio, reflect our year

to We process will we opportunities. and adhere discipline our acquisition an market see active to evaluate timberland continue to

our team. shareholder and in have for and nimble As through Board allocation. to to capital remained forward all allocation leadership continuing We opportunistic stated past, to enhance the evaluate capital senior key we opportunities look value priority

call Day you be close Investor of We Lastly, operator now formal back to Stock November New there. at presentation the look turn on York and XXth part we will forward you to the Exchange. seeing Preregistration questions. I’d to attend many I will for remind like the that the required hosting the of event. the is to an

Operator

question Mamtora [Operator Capital Ketan will from you. first BMO come Markets. Our Instructions] Thank with

line Your open. is

Ketan Mamtora

that a Thank I the quarter. a was strong you helpful? very can if a was little you you on can it color strength. and China give I wrong, what’s congrats Zealand, on you more to strong color start provide want be little with know mentioned if quarter, a driving that but New more obviously, would

Mark McHugh

difficulty we understand with I technical very some hear. are hard the and line having to it’s

moment. be us just a This Hey. that McHugh. some to So moment, going give is to Mark we are try and resolve back in will

difficulties. repeat I get you technical hopefully, some we believe the Ketan We to back I’m sorry, you that, asked just are question, if it. can having had just could but

Ketan Mamtora

but was China. now But on if on New know curious asking, voice Much you drove my I in I helpful? you will just provide can yeah, was clarity, the more with color Zealand a the was better any strength. Yeah. little you detail strength question be more what provide I and mentioned can

Dave Nunes

Well, continue see there’s main to China. I strong in is play think, factors the of But that, here. lots that’s we driver that demand

there was the all, the domestic in last reliance imports. certainly of That China forest increased First band went year log into harvest on natural helped. a that has on of that effect has

that have market, both the for out very the in of a been and volume large modernizing I think radiata have plywood a and where China historically in of the really needs see a that mill We plywood seen some we XX% radiate of fit see products construction. going have primary continues gradual wood infrastructure of has to China. has market. large -- demand it you into in roughly we

market So is it added an in and segment. ability the to of last large market. demand The in then -- that compete the component furniture brings

very with our by that goes that very sawmills, have Zealand earthquake strong the additional and market Christchurch really market, demand, And are is well of into And domestic then providing prices associated have and in their of rebuild. market and export market portions. our a also more only exported bulk New have also in aided Zealand the a influences that you also building oil South recently condition both been availability China in log of product not the favorable market that from Auckland shipping the you and then which India the rates in New So domestic portion has a Korean but robust particularly a demand and combination as you’ve market as ships. got the

these for and seeing have you’re all out So just of factors that’s tandem working in coming segment. you results why strong really part that our operations such of

Ketan Mamtora

color. helpful very That’s

one harvest within what sustainable question the kind on or at are the strong sustainable just Zealand. you of more of harvest Zealand, advantage harvest would So this still are taking New markets be harvest, New of to the current rate than you

Mark McHugh

Ketan, kind million we Yeah. the we tons quarterly million slightly over guided run we XXX. would the -- sort what and rate. what above think, of I characterize is of a to believe at I start are we X.X tons X.X of are believe I just year to and QX was

run full So, perhaps, quarterly are a rate. little being think, I that bit But anticipating for that range. the year, above in that we kind still

Dave Nunes

performance what segment, lands seeing our by seeing that in recent And to aided show blocks also -- what will you’re of as growth of both well of Timber some Trading contributed some the in been some segment. have has as acquisitions of a up that stumpage the the you’re

Ketan Mamtora

to the that. And lot just taking the to but be U.S., turning current strong, U.S. a advantage And it then, sense of the markets makes Right. are of

U.S. seen in incremental the standpoint investment few sawmill and From over few with past about impact quite you just can are markets you right in your might your additional what in supply/demand a greenfield both seeing on and now ownership, weeks terms South terms land you and of talk existing of on investments what have your this have mills.

South?

Doug Long

Long. Good Doug is This Yeah. morning.

You are correct.

later really as growth believe a to probably and move some We area XXXX middle are come lot that XXXX seeing into start of impact in see and ‘XX. half of the we will we we and on

kind as on GPS operating and the Talladega online more next ones in X this starting line of more. still, now, our and move competition looking in impact of we our capacity announcement and really in impact kind then that phases seen greenfield recent see we to that of of see encourage out those come the recent calls, opportunities right just productions, the are additional start of into second half that area tons year and so have we of about are prior and expect startup But we haven’t to more us really we mentioned market still we to announcements anything mills lot half came million of are to As coming them year some talking are still in of should that of second there. changing the

Ketan Mamtora

it. Got U.S. just helpful. of And That’s very exports quickly, our

what South, seeing are you recently?

Dave Nunes

Yeah.

We really strong are seeing U.S. growth the in

XX,XXX of U.S. at tons South including export over done Year-to-date out ourselves. we’ve market, export

number of higher have resourcing work it. would that even fire out so for come and the South coastal all salvage, West that’s our been the Mims

continue increase been out to just the to expect go tremendous we in has forward. So growth and South export we of as that

Ketan Mamtora

this sort does last to of framework? how any compare or year, And year-to-date

Dave Nunes

Yes.

For where last point we double ourselves year we are at more time. were in than this

volumes are similar XXXX that’s export year-to-date a than more For the our for trends double very we South. and entire

Ketan Mamtora

helpful. very I Thank QX in luck and That’s it. Got in appreciate you. Good XXXX. it.

Dave Nunes

Ketan. Thanks,

Operator

will Mings next from Our with question come Raymond James. Collin

Your line open. is

Collin Mings

Hey. Good morning.

Dave Nunes

Good morning.

Mark McHugh

morning. Good

Collin Mings

to in question for back goes just log pricing the me U.S. First

for about budgeting you XXXX, kind are in you talk expectation of just pricing as building of don’t are you terms Doug, terms upside U.S. in a I can South, of know in log overall maybe

maybe between even specifically, maybe of dynamics? And of terms your basket stronger of versus variance in the your type wood more of you basket wood some weaker expecting more, South? what supply/demand some

Mark McHugh

that Yeah. and Collin, additional then I this add is Mark. Dave Doug can take will or color.

about bit by think, but little QX still to expect XXXX. be would encouraged it’s are generally We our capacity we do online. with speaking, to think earnings, that’s coming I talking incremental certainly early I that the

the to continue U.S. think that We

regional submarkets. and dynamics South differential be the unique continue market supply/demand has the pricing on based will to that within been the

our peer relative continuing group. are out to We to play see the pricing in own that

an at that, encouraging X.X, generally we toward housing starts inflection is We’ve and continue point also to X.X So, move said level. signs. again, we think sort of million think, there that overall, I

on So, too anticipate little we pricing again, be in to overall, what signs, -- but to early specific guidance where bit encouraging give XXXX.

Dave Nunes

And that positioned the I we I experienced build less into ultimately translate across in more to we markets build. how price would will add that that think, and because those we of the are in inventory a focused be against on relative that, to continue very tensioning that, South believe have

on but we our both operational have moves. that focus in plans so our terms And as well of portfolio

Collin Mings

guess… I And Okay.

Doug Long

Collin, this is Doug.

Collin Mings

Doug. ahead, am Oh! sorry. Okay. Go I

Doug Long

-- answer That am well, No. that. I so pretty have all that’s I

Collin Mings

put between wood basket. the more what bit maybe you differential currently weaker markets Okay. Can gap about in stronger the Maybe between seeing most weaker a color the markets? just the of tension supply/demand maybe have you and you’re on price little talk just versus terms where

Dave Nunes

I market to basis. Timber a it’s composite -- on worst best look Xx if at mean, data, stumpage the you a the you South the from roughly

Collin Mings

not assuming but that stumpage You quite a are and price pulpwood, call makes it that probably XX% sawtimber? that a we basis, $XX to why, composite calculate XX% shipment XX% $XX on

Mark McHugh

moving It’s a but magnitude. that’s of order that target, generally the

Collin Mings

normalizing Okay. prepared still the like relative the sort press just just to Northwest, out could I And you fire in sounds in it the there? think, about conditions conditions you’re switching release, you what of moderation pretty remarks of beat any But we there. then, pricing XQ mean, see to some do seeing XQ Pacific just and for given out are

Doug Long

Collin, in demand still Doug. seeing very Right strong and this we area. is the pricing now are

mills, into a been the still domestic the mentioned well there’s As pent-up lifted as as of have from export demand. wood restrictions demand you lot going but

we a prices in seeing fourth continue the So quarter. are strong really

Collin Mings

Okay. helpful. That’s

in use of Georgia, recent your as us estate there, on Turning real given of just out Richmond report far some just update County, can the of Hill? quick, just to activity you as some recent the progress Chris Bryan real

Chris Corr

kind the interchanges you working going then for is identified or development to an South doing activity, there. proposed for been which What’s potential up continue Park of activity. continue so because the you morning. happening of for drive XX which so Richmond a We’ve followed the us Hill or into high the Georgia. interchange things of we put for minutes and energy the including Hill, a Good Collin. nicely there, Georgia Hey, opportunities of as market new interchange with Savannah, table along there. Those of in of number to Yeah. The the interstate Belfast Department those of have about remember Commerce things. set Richmond -- is strength It’s the area of project, a things Transportation to of sort and HBU

that and as could other sewer, thing plant position Hill to city of later doing estate comes utilities, provide is the are Richmond annexation there water in. set city ones of the best But we infrastructure The up real where in infrastructure is, they working are the namely the capacity. and the that’s opportunities the and to provide which enabling with

the about in getting into the order driven So parcels utilities for of that to sort real to annexation is city future. estate key get

Collin Mings

last potentially I color about turn will we helpful around any talked us and That’s then that in one provide And there update Great. on one thoughts New last Chris. just just can consolidating you your Zealand quarter? Dave position over,

Dave Nunes

No. would there are the there. think, by that new but JV is no decision say I really Collin, that’s interested we right a and our being news is certainly this really made price partner. that at I

Collin Mings

guys. will turn over. Great. it I Thanks,

Operator

RBC Markets. question Capital Quinn from with come next will Paul The

Your line open. is

Paul Quinn

thanks Yeah. improved Thanks listening difficult much It the here. for sound. and getting very was pretty

Dave Nunes

Apologies.

Paul Quinn

next in address, maybe in in over the plantations years the see what the maybe the XX years, years? understanding And level New an is my just just for lot Zealand. couple the XXXX, in X.X sustainable on million guidance one X.X and harvest Zealand you a million could questions, that five the understand New year from uptick coming harvest maybe but expect levels of next you jurisdiction I follow-on to

Dave Nunes

range. that of New that of be what number is the million or, cubic is terms with lot they of growth. XX -- meter to could total around But U.S. excuse tightness just that that are I so perhaps, owners. to going woodlot small cubic that like really go by the for availability of Zealand view meters driven that the It generally happens modestly, a me, delta recognized is in harvest. loggers think XX that a region, a balance facing $XX counter and that’s the million to million up There

And in the answer the so, of much expect is, in increase we of short in coming Zealand near-term. way harvest the I don’t out think, New material

Paul Quinn

Okay.

can to your this in levels a harvest for million, we hold million our X.X X.X So quite bit forecast?

Dave Nunes

Yeah. speaking and Certainly, from I to land, that’s was the our more broadly true industry.

Paul Quinn

Right.

Dave Nunes

But, of level, us harvest that operate and yes, all we in the in the XX-K lands see allows we our that in perpetuity. can the provide essentially information you harvest on a which sustainable to

Paul Quinn

mentioned Okay. the And flipping Doug, an idea year, then, you are for margin I give in domestic log what guess, double, on -- us versus year-to-date the the sawlog the over exports -- you versus up export U.S. can is last

South?

Doug Long

Yeah.

the markets be some of we cautious be within talk markets, to those it’s pricing speaking specifically, the out our the I obviously from little individual obviously, a domestic to be bit markets going a our market about happened cautious want so, depend I exporting premium, about coastal of speaking generally clearly, to strongest we are to want to to think, is would but on is and also we being from think, standpoint that magnitude that. there that sourced

Paul Quinn

to So saying coastal the you premium a are average? it’s market

Doug Long

Yes. Yes.

Paul Quinn

Wildlight? right, if Estate. you heard that that just just Okay. not And I this on sale The lot just then, guess, improved Real lastly, in had, one the sure I was

Chris Corr

lot purposes home. a for down a the of that took constructing builder model basically was It

Paul Quinn

just remind Okay. us… you Can

Chris Corr

of contract take initial essentially their in was that have take down to to this home. under the we two builders and take model down build a So down are lots series

Paul Quinn

And they those two did Right. secured builders, many there? how lots

Dave Nunes

XX far. thus

Paul Quinn

be? we to do that builder long how And expect

Chris Corr

The full build out?

Paul Quinn

that is lots, over period, XX those that of period? over is builder The five-year two-year

Chris Corr

obviously, it town. that depends in on probably I coming mean, the have the quarters. But better think of I just really, velocity on information in the sales Yeah. we’ll

Paul Quinn

of all guys. Thanks, I That’s had. right. All Best luck.

Operator

next Chip Research will The Dillon Partners. come question from Vertical with

is open. line Your

Chip Dillon

afternoon good -- Good morning. Yes.

same terrific have First with, think pricing possibly in obviously, how Northwest. you Pacific are those seen, about plan? question how thinking maybe Zealand you could that conference weeks a view and I various there’s an obviously, few from can the would would in and vary there it the sort South, be we and there’s about the showed increased daylight ago you the what influence pricing been kind recent by changes the the But you by that there region, but but that export in then has has think is harvest XXXX they your know the New specific expressed in persist, do views, a to overhang XXXX in again, then any about at And demand. their us as of and of and years thing heat overhang created maps the

to So you those pricing it you way in forecast, a for think is not go about ‘XX specific or asking terms what good ‘XX, as but directionally think of expectations in regions?

Dave Nunes

dynamics optionality and always been more of some market having that has these I better. I mean, we think focused I think, generally local are on -- we always

got reason pulpwood inventory a from a component have a important diversity of the outlets and sawlog stronger these product add a that demand South on addition greater able to margin. add that, be to to things are be a strong see component markets the have an of being the all expert build, on weaker or part the the side to demand those in able divergence just of is for markets on through low to bioenergy, think, end you terms across I that in you

broad think the -- and as Northwest we New are when In I wood And to markets. our Zealand, lot looks analysis forward South, that concept of optionality market are Southern so notwithstanding, micro the or of can that of we we encouraged we is the have these of seeing kind flow by footprint trend the at either kind what a look look is of some our domestic averages we Pacific of where at footprint going growth Northwest, well to how the broad -- averages, across really look important. And as again China at at same terms for and in you the that West market.

recovery really set housing have. U.S. advances, the options as a market to from that to away the that believe share it’s today market, but that’s of take to nice continue We export going

We hemlock that of of in by mix to important China also you Zealand, moving growing And feel the in that, product form that having we and stable are New of got have market offers that, also market a diversity is our both rate blessed then an Douglas-fir very but a in very very a remember got at helpful that’s and as well. certainly India Korea. you’ve rapid component is

to that start for So harvest we for of way. regions always each with year then in harvest of are as year, sustainable that of stronger some to looking within flex tend We at we a volume our level markets markets some we in did weaker include we deferring to and volume, U.S. look in kind last take the ways sustainable and the that deferred during the or quarters may advantage late different

and much paid pricing. volume very a market bring of this South stronger back that off much that’s to as year at we’re able well deferred to

see on happy generally on or tend within it tap when the sustainable to keep we see brakes that to the harvest we that So fit, gas of publish. you we us are put but -- kind within

Chip Dillon

dividends quarter, maybe sort dividend talk the should about that quarter this how then we policy, if this you’re expect the level to of seeing very next That’s little a thoughts And keep if your could progress? earnings just review and heightened some helpful. you able especially about were also bit of of

Mark McHugh

payout specific I real are and is Primary be don’t being going to so, Chip, estate, Hey. mean, specifically for within tends you in of that we lumpy reason example, some volatility, ratio. to cash see policy it I Board terms of dividend have pretty dividend obviously and something it we growth that will is continuously think, it’s evaluate general decision growth of pretty closely. sort we something with and flow that is sustainable is monitor mindset a occur that the that and the

Dave Nunes

And I we’re think also…

Chip Dillon

Okay.

Dave Nunes

that period quality … to do our frankly, think, allocation pleased the then few we opportunities have very capital been with last able acquisitions been and shareholders time. the the over increasing and cognizant have during a very our of of we we’ve return dividend better to that those of been years the

well. as mix And so that goes into the

Chip Dillon

you. Thank Okay.

Operator

Our from Armstrong coming [Operator next Research. question Armstrong Instructions] with James is Investment

open. Your line is

James Armstrong

it fixing I Good am -- phone. it me. for morning and just just glad wasn’t thanks the

on any done of the the is First over quarter? into third should quarter salvage quarter, the fourth that in question can you hurricane impacts, in the there Florida be and -- will you out be bleed the all pointed fourth

Doug Long

Yes. Doug. This Yeah. is

are be There this should fires in and of year are correct. was it will Florida all the would unit, end the fourth those of be like so quarter. of properties year, with we or salvage operations by we now by finishing hurricanes resource the should on getting over whether a that be hopefully finished quarter, that looks up believe it salvage, but we bleed the we our of in salvage be up You the do going fourth just end

James Armstrong

to quarter from saw year but the volumes change Switching be mentioned Northwest lot Northwest, -- we in third we up, quarter, you sequential the a the last Perfect. fourth ticked to year? same quarter up in did you should that fourth last should volumes the see as volume

Dave Nunes

some and that quarter Northwest. you run I year’s shouldn’t you this acquisition that more fourth versus And rate the of expect up have year’s that and on running. we new quarter lift saw that we operating last Menasha been -- to getting would us for we we’ve I last -- would think fourth the expect that year the kind was think of same what

Mark McHugh

QX, in of XXX,XXX a expected quarter basis say. we that in would towards prior run would low so Keep did three nearly of low due QX the elevate fire Yeah. was on mind, relative the I to average I seasonal XXX,XXX harvest. XXX,XXX We QX, restrictions rate that and point in to so, was tons would kind a the in say, to QX, that more

Dave Nunes

Yeah.

the average be for run targeting will -- our month for the rate We quarter. annual

James Armstrong

Okay. That fourth any quarter. helps. as I helpful? count And guidance you operating, that terms what then, of are you in lastly, in don’t the large would know sales be but land expecting

Mark McHugh

it’s hitting million in was run Yeah. in we suffice full also a lumpy advantage guidance some to it our $XX on so business. to Estate year anticipate our Well, from -- want earnings not which EPS we -- our be Real EBITDA guidance because contributor to obviously we can want point but said, we want of guidance, be of and $XX about sort our you managing to we you said have say and guys pretty cautious terms big recognizing want so -- and that’s to a to basis, that But have adjusted getting target, how of that million we EBITDA. initial that, quarterly

So that the generally we expect that of will outcomes give sense you of in a better range QX.

James Armstrong

in is or… adjusted -- are -- land sales counted But is the count EBITDA Okay. large the that

Mark McHugh

The terms of large the… in dispositions

James Armstrong

Yeah.

Mark McHugh

those be an are sales don’t adjusted any … that have over we $XX premium included not that. be wouldn’t one-off and to a in and EBITDA guidance designate on would we more that million basis provide on HBU

James Armstrong

you. helps. That Thank Okay.

Operator

time, further for I to speakers will remarks. closing back the questions. this are there it At no hand

Mark McHugh

Thanks. after Mark me. feel out happy the Apologies to McHugh. the you. And appreciate difficulties This call, reach technical just earlier, to any free again for questions everybody is Thank but to joining. take

Operator

that for again today’s Once participating. will you conclude Thank conference.

this at You may time. disconnect

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.