Rayonier (NYSE:RYN) today reported third quarter net income of $81 million, or 62 cents per share, compared to $105 million, or 84 cents per share, in the prior year period. The 2011 results included a $16 million tax benefit from the reversal of a reserve relating to the taxability of the 2009 alternative fuel mixture credit (AFMC). Excluding this benefit, 2011 third quarter net income was $89 million, or 71 cents per share.
Year-to-date 2012 net income totaled $203 million, or $1.58 per share, compared to $220 million, or $1.75 per share, in 2011. Excluding the tax benefit from the AFMC, net income for the first three quarters of 2011 was $204 million, or $1.62 per share.
Cash provided by operating activities was $354 million for the first nine months of 2012 compared to $326 million for the prior year period. Year-to-date cash available for distribution (CAD)
was $261 million versus $242 million in 2011. (See Schedule D for more details.)
“We are pleased to report continued strong operating results this quarter in line with our expectations. In Performance Fibers, the cellulose specialties market remains strong, and in Forest Resources, sales increased as we added volume from our recent acquisitions,” said Paul G. Boynton, Chairman, President and CEO.
Third quarter sales of $60 million were $3 million above the prior year period, while operating income of $11 million was comparable. Year-to-date sales of $165 million increased $2 million over prior year, while operating income of $27 million declined $7 million primarily due to lower prices in the Pacific Northwest and New Zealand reflecting weaker Asian demand. Third quarter and year-to-date sales improved over the prior year in the Gulf States region due to higher volumes from the 2011 timberland acquisitions.
Third quarter sales of $13 million were $19 million lower than the prior year period and operating income of $8 million decreased $20 million. Year-to-date sales of $37 million were $21 million below 2011, and operating income of $21 million was $19 million below the prior year. The third quarter and year-to-date periods of 2011 benefited from a 6,300 acre non-strategic sale at $3,995 per acre and a $6 million property tax settlement covering several prior years. The 2012 periods included improved margins on rural land sales due to geographic mix.