Rayonier Inc. (NYSE:RYN) Q1 2018 Earnings Conference Call Transcript
May 03, 2018 • 10:00 am ET
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. Mark McHugh, Senior Vice President and CFO. Sir, you may begin.
Mark D. McHugh
Thank you and good morning. Welcome to Rayonier's investor teleconference covering first quarter earnings. Our earnings statements and financial supplement were released yesterday afternoon and are available on our website at rayonier.com.
I'd 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 filed 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're also referenced on page two of our financial supplement. Throughout these presentations, we will also discuss non-GAAP financial measures, which are defined and reconciled to the nearest GAAP measure in our earnings release and supplemental materials.
With that, let's start our teleconference with opening comments from Dave Nunes, President and CEO. Dave?
David L. Nunes
Thanks, Mark, and good morning, everyone.
First, I would like to make some overall comments before turning it back over to Mark to review our financial results. Then we'll ask Doug Long, Senior Vice President of Forest Resources to comment on our US and New Zealand timber results and following them review of our timber results, Chris Corr, Senior Vice President for Real Estate will discuss our real estate results.
We're pleased to report strong first quarter results, reflective of the quality and diversity of our portfolio and the market strength within each of our three timber segments. We're also very encouraged by the progress that we've made in executing our real estate strategy and the strong result that this segment has generated.
For the first quarter, we achieved earnings of $0.31 per share and adjusted EBITDA of $93 million, which represents a significant increase from the prior year first quarter. Relative to the prior year first quarter, all three of our timber segments realized meaningful increases in adjusted EBITDA. And excluding the prior year gain on a large disposition, our real estate results were also significantly higher due to the increase in the number of acres sold and the higher average sales pricing.
Our Southern Timber segment adjusted EBITDA increased 7% from the prior year quarter, reflecting higher volumes and relatively flat average stumpage prices. As we discussed last quarter, we generally expect pricing in the South to remain flat this year and then pick up some momentum as we see new lumber capacity come online primarily in 2019 and 2020. We're fortunate to own timberlands in some of the strongest wood baskets in the US South Coastal Atlantic region, where we continue to enjoy pricing well above the South-wide average. We also believe that these markets offer favorable long-term prospects,