Rayonier Inc. (NYSE:RYN) Q4 2014 Earnings Conference Call - Final Transcript

Feb 12, 2015 • 02:00 pm ET


Rayonier Inc. (NYSE:RYN) Q4 2014 Earnings Conference Call - Final Transcript


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Welcome, and thank you for joining Rayonier's Fourth Quarter 2014 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'll turn the meeting over to Mr. Mark McHugh, Senior Vice President and CFO. Sir, you may begin.

Mark McHugh

Thank you, and good afternoon. Welcome to Rayonier's investor teleconference covering fourth quarter earnings. Our earnings statements and financial supplements were released this morning and are available on our website at rayonier.com.

I would like to remind you that in these presentations we include forward-looking statements made pursuant to the Safe Harbor provisions of Federal Securities laws. Our earnings release and Form 10-K/A filled with the SEC lists some of the factors that may cause actual results to differ materially from the forward-looking statements we may make. They are also referenced on Page 1 of our financial supplement.

With that, let's start our teleconference with the opening comments from Dave Nunes, President and CEO. Dave?

David L. Nunes

Thanks, Mark. And before I begin, I'd just like to welcome Mark to our team. Mark's been here a couple months, and it's great to have him as part of the Rayonier team and great for you all to get introduced to him in his new capacity. So first, regarding the fourth-quarter and full-year results, I'll make a few overall comments before turning it back over to Mark to review our financial results, and then we'll ask Doug Long, Vice President of US Operations, to comment on our US timber results. I'll then discuss New Zealand timber results followed by the review of our timber results segment. Chris Corr, our Senior Vice President for Real Estate, will discuss our real estate result.

One of the changes that you'll see in our reporting this quarter is that we've realigned our reportable segment. The new segments reflect the way that our senior management team evaluates the operating performance of our business. With our narrower focus on timber and real estate following the spinoff of the performance fibers business and with our new management team in place, we recently completed an evaluation of our segment reporting.

In determining our reportable segments, we considered the economic characteristics of each business unit and how we internally evaluate business performance and make capital allocation decisions. The outcome of that evaluation is that we have disaggregated our former forest resources segment into three new segments: Southern timber, Pacific Northwest timber, and New Zealand timber. Our real estate segment remains the same, except we will now provide more detailed categories on sales. We previously reported real estate sales in three categories: development, rural, and non-strategic.

We now separate development into improved development, for sales of properties where Rayonier has invested capital and infrastructure to add value and marketability; and unimproved development, for sales of properties designated for development but for which Rayonier has not invested any material improvements. We expect that this new, improved development