Rayonier Inc. (NYSE:RYN) Q4 2018 Earnings Conference Call Transcript
Feb 07, 2019 • 10:00 am ET
Welcome and thank you for joining Rayonier's Fourth Quarter 2018 Teleconference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) Now I will turn the meeting over to Mr. Mark McHugh, Senior Vice President and CFO. Sir, you may begin.
Thank you and good morning. Welcome to Rayonier's investor teleconference covering fourth quarter earnings. Our earnings statements and financial supplements were released yesterday afternoon and are available on our Web site 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 are also referenced on Page 2 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. First, I will make some high level comments before turning it back over to Mark to review our consolidated financial results. Then we'll ask Doug Long, our Senior Vice President for Forest Resources to comment on our US and New Zealand timber results. And following the review of our timber segments, Mark will discuss our real estate results as well as our outlook for 2019.
Our first quarter results were generally in line with our expectations and capped off a year in which we generated post spin off highs in adjusted EBITDA across all four of our key operating segments. The quality and diversity of our portfolio coupled with the tremendous dedication and focus of our employees allowed us to achieve our prior full year adjusted EBITDA guidance, despite contending with some challenging market conditions.
In the fourth quarter, we generated adjusted EBITDA of $50 million and earnings per share of $0.02. As expected, fourth quarter results were relatively modest as harvest volumes and real estate transaction activity were both heavily front-loaded in the first half of the year. In addition, we elected to defer harvest volume in the south in the fourth quarter both in the U.S. South and the Pacific Northwest. Specifically, we deferred 200,000 tons in the U.S. South due to market impacts from Hurricane Michael, as well as 50,000 tons in the Pacific Northwest, due to deteriorating market conditions, stemming from tariffs on log exports to China.
For the full year, we generated adjusted EBITDA of $338 million and earnings per share of $0.79. In Southern Timber, adjusted EBITDA increased 12% over the prior year, driven by higher volumes and stronger non-timber income. In Pacific Northwest Timber, we pulled forward harvest volume due to strong pricing in the first half of the year, which allowed us to register a 24% year-over-year increase in adjusted EBITDA, despite a drop in pricing