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.