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Rayonier Inc. Reports Operating Results (10-K)

February 28, 2012 | About:
10qk

10qk

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Rayonier Inc. (RYN) filed Annual Report for the period ended 2011-12-31.

Rayonier Inc has a market cap of $5.43 billion; its shares were traded at around $44.58 with a P/E ratio of 21.2 and P/S ratio of 3.7. The dividend yield of Rayonier Inc stocks is 3.6%. Rayonier Inc had an annual average earning growth of 13.4% over the past 10 years. GuruFocus rated Rayonier Inc the business predictability rank of 2.5-star.

Highlight of Business Operations:

Full year sales and operating income were $25 million and $6 million below 2010, respectively, primarily reflecting 32,365, or 73 percent, fewer non-strategic timberland acres sold. This decline was partially offset by improved results in rural HBU sales. While rural HBU volumes declined by 1,047 acres, or seven percent, prices increased by 29 percent mainly due to site specific characteristics. Operating income in 2011 also benefited from a $6 million property tax settlement covering years 2005 through 2010; however, this benefit was offset by higher costs due to property mix.

The full year effective tax rate was 9.9 percent compared to 6.5 percent in 2010. Excluding non-routine items, the effective tax rate was 24.6 percent, up from 18.2 percent in 2010. The higher rate in 2011 was due to proportionately higher earnings from the TRS. See Note 8 — Income Taxes for additional information regarding the provision for income taxes and the non-routine tax items.

Full year sales and operating income were $5 million and $3 million below the prior year, respectively, primarily due to a 14 percent decline in rural prices reflecting a change in geographic mix. A 17 percent decline in non-strategic timberland acres sold due to timing of sales was mostly offset by an average price increase of $215 per acre, or 17 percent, due to location and site characteristics.

The full year effective tax rate was 6.5 percent compared to 12.9 percent in 2009. The significant decline in 2010 reflects the benefit of a $24 million CBPC. Excluding non-routine items the effective tax rate was 18.2 percent, down from 22.0 percent in 2009. The lower rate in 2010 was due to proportionately higher earnings from the REIT. See Note 8 — Income Taxes for additional information regarding the provision for income taxes and the non-routine tax items.

Adjusted CAD was lower in 2011 due to the 2010 receipt of $189 million related to the AFMC. Excluding this amount, 2011 adjusted CAD was consistent with 2010 results. Higher earnings in 2011 were offset by the $93 million repayment of an installment note due in 2011. Adjusted CAD increased $273 million in 2010 compared to 2009 primarily due to the $189 million AFMC refund as well as higher operating results. Adjusted CAD generated in any period is not necessarily indicative of the amounts that may be generated in future periods.

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