Rayonier Inc. RYN recorded first-quarter 2021 pro forma net income per share of 8 cents, meeting the Zacks Consensus Estimate. Also, the figure compares favorably with breakeven pro-forma net income per share reported in the year-ago period.

Results reflect a year-over-year decline in sales. Nonetheless, cost of sales and interest expenses decreased, thereby, aiding the bottom line. Revenues were down around 26% year over year to $191.4 million. In addition, the revenue figure lagged the Zacks Consensus Estimate of $214 million.

Segmental Performance

In the first quarter, pro-forma operating income at the company’s Southern Timber segment was $17.3 million, up from the prior-year quarter’s $15.1 million. Favorable demand spurring from sawmills and the export market along with limited supply due to weather conditions resulted in favorable saw-timber pricing in its markets. Moreover, higher average net stumpage prices and higher pipeline easement revenues resulted in the upside.

The Pacific Northwest Timber segment reported pro-forma operating income of $1.3 million against the operating loss of $0.9 million posted in first-quarter 2020. This was mainly due to higher sales and harvest volumes primarily due to additional volume from the Pope Resources acquisition. Also, a strong domestic lumber market drove the improvement in demand and pricing.

The New Zealand Timber segment recorded pro-forma operating income of $14 million, up from the year-earlier number of $5.4 million. Results gained from a rise in volumes, higher net stumpage prices and lower costs, partly negated by deferred carbon credit sales, high depletion rates and unfavorable foreign-exchange impact.

The Timber Funds segment reported pro-forma operating income of $0.4 million in the first quarter.

Real Estate’s pro-forma operating income was $1.7 million against the year-ago pro-forma operating loss of $1.9 million. This chiefly resulted from higher number of acres sold and an increase in weighted-average prices.

The Corporate and Other segment reported pro-forma operating loss of $7.6 million in first-quarter 2021. The segment registered a pro-forma operating loss of $5.3 million in first-quarter 2020.

The Trading segment reported a pro-forma operating income of $0.2 million in the first quarter.

Rayonier ended first-quarter 2021 with $77.9 million in cash and cash equivalents (excluding Timber Funds), down from $80.5 million recorded as of Dec 31, 2020. Nonetheless, total long-term debt was $1.29 billion, down from $1.3 billion as of Dec 31, 2020.

Outlook

Management anticipates a significant increase in real estate activity in the current year and this will likely aid the company to achieve 2021 adjusted EBITDA in the upper end of its prior guidance of $285-$315 million.