RYN - Earnings call transcript Q1 2018

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

Operator

Welcome and thank you for joining Rayonier's First Quarter 2018 Teleconference Call. at this time, all participants are in a listen-only mode. [Operator Instructions] Today's 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 first investor and quarter earnings.

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

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

David Nunes

morning Thanks and good Mark everyone.

results executing the segment estate our timber encouraged strong we've and and to I'd three in following Mark to has our some our our First, on and timber to ask financial of to then also results, quarter President very will results strength Forest back first of our discuss results, this Doug strong Senior portfolio and of strategy progress of pleased by Resources reflective New overall turning President we'll quality generated. it estate Corr, report for results. real that U.S. of like results, Vice We're the diversity comment real comments Senior review the over the and within made Vice before that review our make Long, segments. timber Zealand We're to Chris Real the our market Estate each

year the $XX prior first EBITDA increase the realized of meaningful to were a increases quarter, per the all pricing. in quarter, three disposition, large adjusted and also quarter. prior prior from sales real year timber acres the increase results due year first represents in of EBITDA our excluding segments average of higher share and higher achieved significant the to significantly we gain which Relative of on million, our the the $X.XX For number sold adjusted and estate earnings first a

Our Southern Timber and increased volumes from stumpage quarter, relatively prices. higher X% segment flat average adjusted prior the EBITDA reflecting year

this online, and As timberlands pick discussed flat we we generally U.S. wood pricing XXXX. in to XXXX we the of up momentum expect see the quarter, primarily fortunate year in in We're to then baskets come strongest capacity last lumber itself some some as own and remain new in

Atlantic continue we region, enjoy the above pricing South where south-wide well Coastal to average.

region. import seasonal continued markets these more bolster experienced the and pulpwood as with in XX% and Timber during both balanced down by as optionality. demand over to improving results similar weeks. significant significantly offer to and export that export proportion of about quarter higher versus to improved the dropped compete And export XX% prices back competition year flowing past our past products believe our China Zealand from we market In to while Strong in housing demand large also domestic given and the from diversity segment the sawtimber in favorable production the year testament in of pulpwood to improving primarily New prior a for the due bounced build long-term sawtimber Chinese quarter, Northwest brought to first to also quarter, We to over New quickly prospects, has inventories first Pacific India the well customers. segment, prior Timber lumber the pricing. seen the increase product worked saw a U.S. have We've served available year, export strong first markets our in The as Northwest markets in growing and Year, level from supply. domestic for due inventories into several log a the mix a appears have both demand dynamics these log pretty We've pricing starts. the

premium Moving we a Real X,XXX to in the $X,XXX value quarter, weighted per just HBU underlying as segment, of improved price we peers. Estate well average to realizations sold excluding wildlife, and development acre. strong represents particularly timberland very enjoyed This to at our our a a over first our sales as of value strong our acres

all is premium yielding past, this financial to real back is And it and with core Mark me turn strong returns. results. timberland pleased very to our see the we're business that over our about our that, to meaningfully results in review stated and we've strategy let really As estate augmenting

Mark McHugh

Thanks Dave.

was financial in Let's start while had attributable million, and $X.XX $XX share. items $X.XX or was with $XXX was quarter. totaled operating forma million EPS Pro on the page quarter as Sales Rayonier net income five our pro highlights. the million also per forma we share for per $XX no to income

Real of million quarter segment. timber due $XX as of of above favorable First three million Estate EBITDA significantly EBITDA adjusted to segments was $XX in our results adjusted quarter year well as the all prior our

quarter the disposition. the reminder, prior of in a large excludes impact As adjusted EBITDA a year

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

expenditures. million Our primarily $XX quarter, quarter $X the million supplement. was provided operating the seven paid for the adjusted $XX interest in is quarter to million activities or of measures roughly CAD, compared EBITDA, financial cash prior lower cash lower debt. first cash CAD of $XX We reconciliation to provided of to cash billion higher due with available in and the distribution, capital A page closed on and by other GAAP of and

as intermediaries classified million now and the exchange figures therefore, cash of of held provide over $XXX I'll turn of results. our that are represented $XX of timber a review at by restricted Our Doug from detailed that sales call enterprise more Note our based exclude on our to timberland cash. to price currently closing debt and XX% end. are value net million stock like-kind proceeds quarter these HBU

Douglas Long

Good Mark. morning. Thanks

Let's favorable segment. $X first start Adjusted eight, our the was the and the million to million Timber EBITDA $X quarter, in million of quarter page respectively. prior on Southern with year $XX quarter prior and

largely incremental with and demand was driven prior relative harvest mill stronger to to the volume increased of was quarter whereas fewer tons pulp from outages. quarter by acquisitions, the demand, prior volume approximately volume volume coupled quarter by quarter increase quarter driven stronger year prior First prior The and X.X tons was XXX,XXX compared million than and tons respectively. the higher year XXX,XXX

to pulpwood In per prior were and and of standpoint. to the prior the lower is reduction pricing X% prior cases, a of heavily and compared and large roughly to to to relative Pine unfavorable geographic mix. XX% quarter the quarter, impacted in the were prior the quarter price due pricing our the year sawtimber X% which Arkansas both pine of $XX.XX quarter from $XX.XX was lump The First on a prices, pine prices to and stumpage product by was quarter. quarter. flat increase in quarter both prices market ton compared unfavorable per prices sum compared prior sawtimber X% last weakest X% prior $XX.XX year Pulpwood quarter. the year compared stumpage pulpwood per ton and prior sale ton quarter, favorable both favorable were in to

favorable the million was to page the to moving $X $X and year nine. segment quarter Timber Now, $XX of Pacific million West quarter prior and million North on Adjusted respectively. EBITDA prior

of we increased export of tons quarter XX% in volume prior volume quarter planned XX,XXX and tons to First going year the relative fourth XXX,XXX to Recall quarter that prior to capture X% harvest deferred Japan. improving relative particularly into in decreased of XXXX, the markets quarter. the XXXX,

the sawtimber due favorable advantage metrics harvest XX% year for compete the the can As market quarter attributed compared per year prices shows in prior prices to be competition both of per those Page quarter. volume. they prices $XX.XX expected, to ton were and XX% sawtimber compared Delivered market the the compared to continued Delivered took quarter same a Timber flat Strong during growing strength Pulpwood we quarter. continued strong prior flat quarter, to XX as to quarter exports contributed to first to New the Zealand prior and operating compared remained markets segment. Asia. favorable compared prior for key export logs. to $XX.XX ton prior to and favorable the for domestic of and chip year our increased results of from which prices pulpwood were conditions

quarter, volumes, compared favorable the quarter, partially primarily was to domestic quarter. Our delivered million domestic strong primarily EBITDA sawtimber to favorable New prices by lower due combination export harvest Timber and million sawtimber Adjusted higher prices. segment $X compared Zealand prior the year and due unfavorable a of $XX $X to offset higher of to million and export and harvest volumes prior another

sawtimber respectively. respectively, million to import EBITDA quarter strong China. to and with resulting exchange First This X% markets it demand Zealand quarter was prior to of between competition In higher the quarter $X prior and I'll and now to coupled the to year quarter prior local quarter segment, margins X% mills XX% higher higher export for XX% continued Due from cover and prior increased Chris rate. saw adjusted our increased dollar and due Estate. year in XXX,XXX less the compared $X.X adjusted Domestic to the increased Real prior to quarter to prices rise were volume Trading U.S. modest along with than both harvest XX% year sawtimber was was log in quarter than quarter prior prices supply the log over quarter. due EBITDA of quarter. X% the turn demand the a the first decrease yard lower U.S. prior trading quarter from primarily the than tension year New tons terms year in compared costs. lower compared million prior Export prior and and the

Christopher Corr

morning Thank you, everybody. Doug and good

wildlife Real XX, the at development totaling by in As segment in X,XXX large quarter highlighted our first sold with results. acres our reflect activity million sales Estate our pace project. Sales million. sales development Estate Florida, totaled steady $XX Real on three category delivered improved on a strong dominated of $XX page activity

the reflects per $XXX,XXX for During for million or in development per nine Florida, closed category $XX,XXX per or $X.X lots commercial for of residential log a of XXX totaled total $XX,XXX $XXX,XXX improved in Florida $X.X acre. acres acres million acre. acres per total was transactions and of The $XX,XXX XXX we price acres a X.X roughly per two million transaction sales acre. quarter, roughly $XXX,XXX property or $X Florida average acres roughly the One was for per of acre. transaction XXX for million XXX acre an $XX,XXX on or in Rural the $X.X $X,XXX at other In and category, or totaling

$XX in or Florida for X,XXX includes per with average in at we We our in sold acre the In the This our premium attractive build, million roughly of per pleased progress Florida on non-strategic value. this acres XX are on comprised Interest lots a closed $XX separates an of category, timberland of million $X,XXX Texas. $X,XXX program, places acres transactions. where in and rural acre. to were continues sale roughly XX product and at of an to very particularly price sales timberlands X,XXX

to or pipeline another in we ahead, half lighter during of opportunities quarter with by QX, this a negotiation number year. of close a either We contract of anticipate in strong the HBU followed activity year. prospects second the Looking have expected under and strong

to and wildlife to construction continue both to at expect We through I'll activity progress the in the build project year now back our over steady turn infrastructure with sales the call pipeline. Mark. development

Mark McHugh

Chris. Thanks

full we As to start $XXX we're to following adjusted $XXX of guidance our In year, a track our EBITDA release, on year earnings million the in to U.S. strong the noted achieve million.

first volumes quarter. although full the anticipate year a remainder to South, to following for guidance of of quarterly lower we expect volume harvest relatively X achieve we tons, year the our million strong X.X million

pricing We the in expect XXXX that to U.S. continue average

year year X.X volumes years. year, But demand of and longer to to full the guidance a X.X volumes remain while strong segment, for optimistic remain achieve Pacific the sawtimber of in South competing harvest In on million we're tons XXXX with continued will flat pricing to new achieve our full tons. balance the quarterly our of the track New harvest average given segment, the capacity scheduled of be uptick X.X volume and to to few balance our we to likewise prices. domestic markets. million export million seasonal magnitude Timber online million lumber come we next Zealand our quarterly expect In guidance on of for X.X lower we Northwest due over in year relatively versus volume Timber term expect track the

dynamics lighter to Chris as by markets. continue Estate favorable strength in again noted, strong domestic our both see in We Real And segment, we New price expect driven export and followed in results Zealand of the in second second anticipated call quarter our Dave the the pipeline activity I'll year. based half by the of on now closings closing comments. for during back to turn

David Nunes

HBU across quality in lot our Thanks the of outlook words three well and our these describe optimistic Real see as segments Rayonier, are segments impact taken We've diversity results. build future. last few in we're as for our well all as and timber both our the Pacific portfolio and Mark. portfolio developed as the pleased management seeing well we're Overall, price we Quality to portfolio efforts. as Northwest with diversity delivered efforts New HBU our momentum as to our business. years on of Estate our Timber in our about measured Zealand at We the financial over very steps and meaningfully business use and a of the that quarter our guide meaningful but

on conclusion, recovery lumber with well-positioned believe we price potential these as as to we exports. slowly, the in regarding that continue to building uniquely timberland questions. While to to additional the continues capital in for has deliver want the proud to trends forward. on reiterate announcements by to located going We recent well be In towards I markets. opportunities I'll capitalize active assets successful forward the strong are are South great log and progress on the another call southern portfolio long-term per turn look we share. we capitalizing encouraged operator capacity intensely focused how view and disciplined for management our over with to quarter I'm allocation, value now of executed a new team back incremental

Operator

Thank you.

begin We from will of The with the America. Bank comes now first question-and-answer Babcock [Operator session. Instructions] question John

is open. line Your

John Babcock

Hey morning. good

talk out, of forward? couple begin April the of what pricing? quickly I was X I pricing start seen but at if currently here, in the Just wondering attention arise that very how here. guess if to you've just upwards kind of Northwest. downward not but and talk maybe at kind you'll you of months have that on some want to pricing you of of moving see was start pretty last May you over potentially questions a wondering we per about far limit maybe ultimately, so Pacific seen I could the trends, couple the what And could about And -- potentially point kind see an se, of -- on and

Douglas Long

We in quarter, Yes, same this we've you've that the that results John, moving question. in prices strength on take quarter we've pricing. really continued well-balanced attention and now, I'll of Doug. the into seen right first there's our think second markets seen that level seen as competition. Hello is -- a

The any So per from bully right that pressure it side. downward seen now, export continues market we haven't se. to

we're So, very right market. looking at healthy now, a

David Nunes

we that would And that's of China shifted to. I expect from is take we add away mind the all as period export market market time it's keep John that this We've going the as the likely Pacific what that to has said mix market. the during share would mix and -- in it strengthens, Northwest along to view

fact, the out Pacific past. lumber has we've production coming seen Northwest that we've of and to run-up seen the as in so relative increased And more price this conversely,

John Babcock

that. Real just for on Thanks on Estate. actually Zealand And New -- Okay. then

expecting talk Is on about seem XQ. could provide little more you there you quarter bit color any to If there, a be strong that? could relatively in you

Mark McHugh

at guidance. try Well, least quarterly we to but there's provide tend going We be quarter-to-quarter give on guidance, we directional to imbalance basis. not a know, some some to what again,

is ends falls by mind the dominated of transactions. which generally end in Estate of again, a by side because transaction dictated So, the quarter -- it ultimately keep Real activity larger being particular up

a And we're that's again, QX, color year. then can that lighter all of strong activity we another so the give. strong had anticipating and the back in we But QX, half the

David Nunes

always you transactions take greater near-term a it on visibility always have always just some it -- to they And -- -- take typically months of visibility because number complete.

the so And greater visibility year. much than we have second half do of the QX on we

John Babcock

And turn wondering was last before least, that's across for timberland over. Okay, just the helpful. I I just here then pickup slow pretty broader what was question expect activity ultimately drivers sales you at XQ. and And in wondering, Thanks. the market I generally, the so the are? from it if market was

David Nunes

I there. This year and of we're on And plenty we're it seasonal going is There and far where is makes makes I that to to focused conversely of to of in to There it pattern. the very out sense have tend to think tends pickup terms typical where things down we sense the been look the a be where would path of that -- continue to at is, as one specific go are say, other to assets. things this be on that see of time more the things not a do at. look continue assets to

John Babcock

Thanks Okay. again.

Operator

with Our Mamtora question Capital Markets. next Ketan BMO comes from

open. Your line is

Ketan Mamtora

everyone. morning good Hi,

David Nunes

Good morning.

Ketan Mamtora

China, how First absolute right us peaked are of kind percentage have down? sense where you In gone of now? terms, much question, they they some they give where kind of inventories in can log and or terms

David Nunes

than which meters, was Ketan, over Yes, were million a terms, up little they absolute the -- ended in higher cubic anticipating. bit so, we X just exceeding

the much build pretty demand roughly in, X.X were that that the New Year anticipating is come range in What happens at would shuts in the flowing so. I but up ports. get during think keeps and down, the supply Chinese we you they

Chinese pretty has we'll a to becomes and in We very And demand that's Year far we've mind is see and tend And the -- condition, which roughly or we're generally at is months how so back to taken market has ratio now once and one there. over, that been right inventory level half how a our stable and to inventory it New to place. support takeaway fast drawdown the experiencing that a develops. ratio come what generally a by of encouraged important, that how look healthy

by has coming that it of over point on the drawdown, we're will how the get encouraged and behaved So, initial But certainly visibility favorably. more critical that very gone this months. it's

Ketan Mamtora

months say That's half a would time the maybe this of for you consider also helpful. typical average year and you a below or kind or And typical average? one would of above this the

David Nunes

it's years. I'd characterize the perhaps last say, few the of typical just I years, as prior of strength of the And think than which been I lower would some market. speaks to it sort is

Ketan Mamtora

to Got helpful. sawlog it. southern That's And then turning market.

about talked more a the seeing to XXXX you supply markets more that or be can. -- this in where extent to kind in? of expecting expect You pricing baskets Do where broad-based and kind be -- to to are you very recovery? wood Or you lumber higher XXXX specific come prices of

David Nunes

that things you of about couple a break there's question think down. to I as think

absolutely situation very those we we increase is, to of look that incremental at in from local pricing price running, got $X area. level. in over a facilities But online up first at capacity and and local feed I so much driven the that the the The Once come a roughly And next elasticity of board to point absolute years. expect log to at by There's level inventory lumber are particular the is billion capacity at think been it an standpoint, you've look that increases. also the is believe that have you production. couple

are And builds and look the those our occurring. so we footprint inventory capacity pretty across at carefully where occurred increases how have

that where twofold. as as inventory in well is behaving is your capacity really understanding taking how place. your increase -- It's it's across that So, footprint

Ketan Mamtora

Any of remind are us, cash? question. All bolt-ons last of pipeline M&A your an of priorities you deals thinking how it's some will And about again, right. guys might That's larger just be Can helpful. maybe or helpful. maybe or looking you be from just kind dividend kind thoughts for standpoint you color at? And that just deal whether use

Mark McHugh

our be remain or and Sure, We be into to terms responsive is the we don't targets is, capital on continues opportunistic. to see thoughts on year would are the Ketan, our stock with buybacks this mean, Mark. that I nimble We are price go in course. opportunities that specific really allocation, try trading. available to of where where environment The both of be acquisition assets market acquisitions.

-- But to in nimble opportunities our just respond long-term of again, the And remain and to kind opportunistic without pipeline utilize that's have of the build so, see that hard and different question to again, it's of to to share. levers mantra, us. is we we front per value

Ketan Mamtora

That's it. helpful. luck for very the rest year. Got of Good

David Nunes

you. Thank

Operator

Instructions] from question next comes Raymond Our Collin [Operator James. with Mings

Your open. line is

Collin Mings

good morning Hey guys.

David Nunes

Good morning.

Mark McHugh

morning. Good

Collin Mings

you little offer how I there a quantitative then tracked grown lot a bit thinking EBITDA particularly, are any about region. talk think capital a curious just you're that a segment whole in are to on value couple start, you recent want I'm more comp mark that there or can region? the sales values isn't about, has you Clearly, from timberland of New there us but recognize in deal that your and completed guide Zealand infusion posts substantially. since values when flow, just ago, was going years and how obviously about have how on of To

David Nunes

both recognize valuation that a -- issue of also that it recognize old performance And of the was few the time. region. looking you recap, -- that's the Yes. our as years is, backward the crux flow a a a the from not -- prior the but both run-up on is based to that there is it's at say, is in deal And lot really standpoint,

there -- fairly there, the there they're a recent of been not number some have value sales of been And -- dated -- in There but terms perspective. a have disclosed. not it's the been has -- public so that's

really And in it so we speak sense to can only a directional

Mark McHugh

partner And Zealand appraisal. looking in Collin, Phaunos disclose based NAV, an on New which mind, backward publicly JV in they Fund, Timber is our a do keep

that's the which the I sufficed to in But at in we at that say, the closed the least a in is Zealand price of in do capital benchmark absence earnings have So New there. tripled acre then. think since about better that information, we announced XXXX, XXXX, out per infusion

a change So, in asset. obviously we've seen significant the cash flow of that

David Nunes

that that million an JV the the to end year pointed And $XXX week approximate Phaunos results earlier of this value enterprise. were whole roughly for released

Collin Mings

Okay. Very helpful color guys. that. I appreciate

to Moving the U.S.

I Doug, guidance South, in the mean, overall U.S.

to sawlog in wood that even flat. baskets is U.S. But questions, have emphasized, you one differential again, the of will comments between relatively pricing guys South in the earlier the be

South. where power good or customers you're are point even you six Or bit you ton to sustainable that than on I markets Are pricing able months getting curious, basis a particular they're three higher to more was call with actually true at kind able being just little pricing per any just there actually were sawlogs you for a demand? ago. actually now? that have versus of extract

Douglas Long

States roughly but wood along on minor the some flat basis, year-over-year pricing we've a basins, been to to a along Gulf the X% Coast in increase relatively those decreases. X% even Yes Collin. seen grade Sure, have Atlantic

classes, a Gulf going harvest said flat our the see year. based is we've relatively So, for differential this seeing States shift in age the to heavily And our year more we're still to pricing. we're that the reason on in

Gulf particularly and that'll to composition pricing XXXX, modest we harvest exposure about while in the overall with like Atlantic improvement grade the So, prices XXXX. is of be our further in XX% exports that to more those in anticipate in comparable geographic going in markets, from States result Coast, being

Collin Mings

Got you.

the color. least is kind helpful in kind But get to pricing tangible more of there able your at you're along bottom-line the of Atlantic Coast, -- logs? for very Okay, power

Douglas Long

correct. That's

Collin Mings

cycle, improved at this leverage the you sense wanting consider then over degree? want Just your that that more on capital sort targets? a you where of context leverage? of XX point and months any on to Mark you of vastly the deals? moved really the to again, obviously any your And underwriting cost maybe the equity margins equity opportunistic, you more even cost be remain recognizing, Will last Are point at of conservative of to Are disciplined capital. go on still even reevaluating make year think criteria or has as -- nimble to adjusting change about

Mark McHugh

I mean for that different acquisitions obviously has I capital to of But our a say mindful finance criteria the meaningfully. timberland changed we're toolbox. to in within wouldn't capital we're cost respective looking the transaction, whenever underwriting alternatives the

of And think so the raise an any to of we're we're use value of stock manner And value the in we're terms again our move about a relative with acquisition how certainly sure capital. of mindful we price matching disciplined we're mindful the evaluating. very stock but in right price, also of the that making of in the equity that doing that

David Nunes

really all that so standpoint back few of other as been past debt I'd well that from context. that recognize as kind we've years is such, long-term to The down debt And a drawing feel positioned organically rate we in thing we a a fixed load Collin, result. add and that, over essentially the our few of years

transactions feel flexibility going think makes we that sense us. for so a lot we like us positions And with about as that forward, of

Collin Mings

if the dividend was there Rayonier to go increasing tend and we to Okay. summer. over the of serves timeframe of kind Rayonier there think of summer prior one movement to kind I the around to kind the tend the maybe when more span, of level And back of back a memory kind me, from But be think more that then chance a into allocation board just on dividend a the that day capital consideration of of one little bit as point, theme. in at be to the again, last kind at

the Just Board a at one thinking curious of allocation the or standpoint? Is from spends more there a kind dividend? kind that from of little a process of how truly bit is quarterly that about time time where a the of Board capital kind looks year maybe at

David Nunes

very all, to Board. of first recognize that Well, it's pre-spin, different relative much a

thinking it, I by We we're that discussion bound the to spin so the terms that. have done sort to measured it's lowered we respect recognize that the generally as joint And it, other relative we're about restocking we and lightly. thoughtful and have mind flows, pretty CAD New pay it, an our three also increasing case be seriously. is the from from our consider And company of CAD Pacific and but And to norms much have that the so have that materials, decision greatest say a Real we we pipeline. where very volatility area Zealand, New the with cash more that generate, a think we're with attention a that and volatile, a as discussed would I the you lot that But is business premiums of of the Estate a on want in note payouts. you that coming that we've not pretty in Estate. that a recognize our cash recent we that lot board we investor on just the not that also increase the think namely interest non-controlling historically we of was the considerable our meeting is and any comfortably be recognize certainly subset And the dividend in it we in diligent we shortly take to such of basis, dividend seen the when Zealand after when of also of Real I'd that of then And as keep historical change. been was the been this change focused venture. we that permanent parts and thing flows have is viewed to increase mindful in as to a Northwest

to portion the allocating sold. our to And like so replace CAD lands to of we timberland about think a we've that buying

the And you closer things, all payout generating. those is to a normalize when so we're of for what lot

we're that And mindful of. so that's something

at look Mark are capital very to there at in there we perspective. potential us. sense of in nimble to number maintaining our allocation transactions are that earlier, said There it look this, out continuing might I make continue of described for much we As the what a -- Board context our is believe

And don't the of very a good as situation stay proceeds so use thoughtful to going front But see down going we're from we continue be assess road. this acquisition a and an we're in standpoint. where on this not we nimble to

Collin Mings

quarter. Appreciate guys. on there. a Thanks Congrats solid the color

Mark McHugh

dividend again, I say I timeframe Yes, there just is change. a entertains the when that something going Board that a it's do we was basis periodic a It's to follow-up, wouldn't appropriate. we and on specific think

Collin Mings

Okay. Thanks again Mark.

Operator

The next Pettinari with Citi. Anthony from question comes

Your line open. is

Randy Toth

sitting in Anthony. This morning. actually for Randy is Toth Good

at Looking U.S.

the Freight like pricing, were net it gross looks a but pricing. actually costs up South prices on something X%, leading Cut, ton basis the Haul like XX%, per and grew lower to

or of increase above trend? freight hauling much characterize would of in how out and kind the of So, the you ordinary as

Douglas Long

that, of say in some long distance. would we the that for some did is seeing I you're the of Cuts so is that, have some This Doug. part issue of that excessively

at that, we excessively to of in, probably it, and of XX% say XX% at which would we're cuts looking hauls. be So, least, can

in single-digits been tucking that, probably rates and some particularly those more seen they've pushing have to and in X% things on tune numbers. but to kind of We and and like freight the closer

Randy Toth

or are then XQ May, of how average? realizations New And out Zealand the early in price than and Okay. lower are they April export higher

Douglas Long

increase seen We've actually pretty against We're pricing, now. but rates basically essentially flat. the being seeing to have worked right shipping flat pricing in us then export an

Randy Toth

And Okay. moving to the just U.S. then

log the volume XXXX? both are standpoint in so far pricing trending year-over-year from How and exports South.

Douglas Long

logs across exports, an with ourselves. on industry, entire seen we've and obviously, increase the Yes,

going over Our our doubling of to volume QX, export China. that's seen a we've

So, it's moved up and pricing we've seen.

impact As mentioned on X% before definitely and increase on has export I to across about X% the all composite Coast, that. volume the a on price, Atlantic down an

Mark McHugh

Mark. clarify I one just want to This point. is

On the costs. cut haul and

large a I it think in cut there a the on and if of there per was haul of type percentage that it was a near percentage. increase nothing was basis, gross unit costs,

clarify to that. wanted just So,

Randy Toth

over. I'll that's you. Okay, turn very helpful. Thank it

Operator

the concludes This session. question-and-answer

turn back will closing I Now, for the conference remarks. over

Mark McHugh

feel Thank you you. additional This with is to the joining any Thanks if have free call McHugh. me, questions. Mark and follow-up today for

Operator

you for conference. participating. today's conclude does That Thank

disconnect may this You time. at

Rayonier (RYN) 3 May 182018 Q1 Earnings call transcript