Date: Thu, 20 Nov 1997 21:26:40 GMT Server: Apache/1.1.1 Content-type: text/html Set-Cookie: Apache=heart25632880061200902; path=/ Content-length: 14003 Last-modified: Wed, 05 Feb 1997 21:43:19 GMT
For the six month period, Partnership income was $61.9 million, or $3.27 per Class A Unit, down $1.4 million, or 1 cent per Class A Unit, from 1995 results. Operating cash flow allocable to each Class A Unit was $3.39, down 3 cents per Class A Unit. Sales for the first half of 1996 were $85.8 million, up $0.3 million from last year's first half.
In the Northwest region, the combined stumpage and delivered log volume for the second quarter was 24 percent higher than the prior year as customers expedited harvesting on expiring stumpage contracts. This increase was partially offset by a 10 percent decline in prices from the prior year caused by weak export and domestic log markets. Second quarter sales increased $2.7 million to $26.4 million and operating income rose $2.4 million to $20.9 million. Approximately 67 percent of the anticipated annual harvest had been cut by midyear.
In the Southeast region, second quarter sales declined $0.6 million to $12.6 million and operating income declined $0.9 million to $9.9 million from the prior year, reflecting lower prices. Pine prices declined 10 percent from the prior year due to contracts previously entered into during recent weak pulp and paper markets. Approximately 48 percent of the anticipated annual harvest had been cut by midyear.
Rayonier Forest Resources continues to caution unitholders that when the Initial Term ends on December 31, 2000, the Primary Account of the Partnership will be closed but there will not be any redemption of the partners' capital accounts. The interest of Class A unitholders in the Partnership's future revenues, expenses and cash flows will then decrease from 95 percent to 4 percent. On a pro forma basis, using 1995 results as an example, cash allocable per Class A unit would decline from $6.17 to approximately 22 cents. In addition, there will be substantial Secondary Account debt that will mature on January 1, 2001. This debt (incurred to fund long- term investment in such areas as reforestation and silivicultural activities including accrued interest) is expected to amount to over $350 million, more than three times 1995's net operating cash flow. In accordance with the Partnership Agreement, all Secondary Account debt must be repaid before any distribution of Partnership cash flow resumes. As a result, it is expected that the market price of Class A Units should begin to decline substantially sometime prior to December 31, 2000.
Rayonier Timberlands, L.P. grows and sells timber in the U.S. on 784,000 acres in the Southeast and on 369,000 acres in the Northwest. Rayonier Inc., the Special General Partner, owns 74.7 percent of the 20 million outstanding Class A Units of Rayonier Timberlands, L.P. The balance is publicly traded on the NYSE.
Editor's Note: Earnings for Rayonier Inc. (NYSE:RYN), the parent company of Rayonier Timberlands, were released earlier.
(thousands of dollars, except per unit information)
Second Quarter Ended June 30, |
Six Months Ended June 30, |
|||
1996 |
1995 |
1996 |
1995 |
|
Sales | $38,921 |
$36,865 |
$85,763 |
$85,420 |
Partnership income | $27,419 |
$26,522 |
$61,931 |
$63,342 |
Income per publicly traded Class A Unit | $1.49 |
$1.44 |
$3.27 |
$3.28 |
Operating cash flow allocable to a publicly traded Class A Unit |
$1.56 |
$1.50 |
$3.39 |
$3.42 |
RAYONIER TIMBERLANDS, L.P. BUSINESS SEGMENT INFORMATION JUNE 30, 1996 (unaudited) (thousands of dollars, except volumes and per unit information) |
||||
Second Quarter Ended June 30, |
Six Months Ended June 30, |
|||
1996 |
1995 |
1996 |
1995 |
|
Timber and timberland sales | ||||
Northwest | $26,367 | $23,714 | $57,984 | $49,399 |
Southeast | 12,554 |
13,151 |
27,779 |
36,021 |
Total | $38,921 |
$36,865 |
$85,763 |
$85,420 |
Operating income | ||||
Northwest | $20,910 | $18,554 | $46,778 | $39,803 |
Southeast | 9,853 | 10,741 | 21,889 | 29,019 |
Corporate and other | (489) |
(501) |
(980) |
(924) |
Total | $30,274 |
$28,794 |
$67,687 |
$67,898 |
Partnership income | $27,419 |
$26,522 |
$61,931 |
$63,342 |
Income per publicly | ||||
traded Class A Unit | $1.49 |
$1.44 |
$3.27 |
$3.28 |
Operating cash flow allocable to a | ||||
publicly traded Class A Unit | $1.56 |
$1.50 |
$3.39 |
$3.42 |
Northwest harvest volumes | ||||
Stumpage, in millions of board feet | 37.7 | 30.8 | 82.8 | 68.4 |
Delivered logs, in millions of board feet |
14.7 |
11.6 |
29.9 |
20.1 |
Total | 52.4 |
42.4 |
112.7 |
88.5 |
Southeast harvest volumes | ||||
Pine, in thousands of short green tons |
436.7 |
410.8 |
893.3 |
1,001.1 |
Hardwoods, in thousands of short green tons |
46.3 |
50.3 |
102.3 |
91.3 |
Total | 483.0 |
461.1 |
995.6 |
1,092.4 |