1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ........... TO ............ COMMISSION FILE NUMBER 1-6780 RAYONIER INC. Incorporated in the State of North Carolina I.R.S. Employer Identification Number 13-2607329 50 North Laura Street, Jacksonville, FL 32202 (Principal Executive Office) Telephone Number: (904) 357-9100 Indicate by check mark whether the registrant (l) has filed all reports required to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during the preceding l2 months and (2) has been subject to such filing requirements for the past 90 days. YES (X) NO ( ) As of May 4, 2001, there were outstanding 27,148,598 Common Shares of the Registrant. ----------------
2 RAYONIER INC. FORM 10-Q MARCH 31, 2001 TABLE OF CONTENTS <TABLE> <CAPTION> PAGE ---- <S> <C> <C> PART I. FINANCIAL INFORMATION Item l. Financial Statements Statements of Consolidated Income for the Three Months Ended March 31, 2001 and 2000 1 Consolidated Balance Sheets as of March 31, 2001 and December 3l, 2000 2 Statements of Consolidated Cash Flows for the Three Months Ended March 31, 2001 and 2000 3 Notes to Consolidated Financial Statements 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 3. Quantitative and Qualitative Disclosures About Market Risk 9 PART II. OTHER INFORMATION Item 5. Selected Operating Data 10 Item 6. Exhibits and Reports on Form 8-K 12 Signature 12 Exhibit Index 13 </TABLE> i
3 PART I. FINANCIAL INFORMATION ITEM I. FINANCIAL STATEMENTS RAYONIER INC. AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED) (THOUSANDS OF DOLLARS, EXCEPT PER SHARE DATA) <TABLE> <CAPTION> Three Months Ended March 31, ------------------------------ 2001 2000 ----------- ----------- <S> <C> <C> SALES $ 276,487 $ 354,597 ----------- ----------- Costs and Expenses Cost of sales 231,521 268,435 Selling and general expenses 7,558 9,936 Other operating (income) expense, net (470) 1,573 ----------- ----------- 238,609 279,944 ----------- ----------- OPERATING INCOME 37,878 74,653 Interest expense (18,915) (22,790) Interest and miscellaneous (expense) income, net (523) 167 ----------- ----------- INCOME BEFORE INCOME TAXES 18,440 52,030 Income tax expense (6,188) (16,557) ----------- ----------- NET INCOME $ 12,252 $ 35,473 =========== =========== EARNINGS PER COMMON SHARE (EPS) BASIC EPS $ 0.45 $ 1.30 =========== =========== DILUTED EPS $ 0.45 $ 1.27 =========== =========== </TABLE> The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated statements. 1
4 RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (THOUSANDS OF DOLLARS) <TABLE> <CAPTION> March 31, December 31, 2001 2000 ------------ ------------ <S> <C> <C> ASSETS CURRENT ASSETS Cash and short-term investments $ 10,893 $ 9,824 Accounts receivable, less allowance for doubtful accounts of $3,650 and $3,969 110,366 117,114 Inventories Finished goods 60,779 60,627 Work in process 10,273 9,076 Raw materials 5,201 11,044 Manufacturing and maintenance supplies 17,147 16,359 ------------ ------------ Total inventories 93,400 97,106 Timber purchase agreements 35,799 33,775 Other current assets 12,779 12,779 ------------ ------------ Total current assets 263,237 270,598 ------------ ------------ OTHER ASSETS 60,501 63,129 TIMBER PURCHASE AGREEMENTS 6,171 6,335 TIMBER, TIMBERLANDS AND LOGGING ROADS, NET OF DEPLETION AND AMORTIZATION 1,182,861 1,192,388 PROPERTY, PLANT AND EQUIPMENT Land, buildings, machinery and equipment 1,368,491 1,360,296 Less - accumulated depreciation 748,678 730,472 ------------ ------------ Total property, plant and equipment, net 619,813 629,824 ------------ ------------ TOTAL ASSETS $ 2,132,583 $ 2,162,274 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 82,180 $ 87,401 Bank loans and current maturities 2,565 2,565 Accrued taxes 14,418 10,314 Accrued payroll and benefits 26,109 27,756 Accrued interest 23,583 11,745 Accrued customer incentives 6,065 18,163 Other current liabilities 22,843 22,389 Current reserves for dispositions and discontinued operations 15,341 15,434 ------------ ------------ Total current liabilities 193,104 195,767 ------------ ------------ DEFERRED INCOME TAXES 135,204 130,333 LONG-TERM DEBT 941,415 970,415 NON-CURRENT RESERVES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS 159,530 161,465 OTHER NON-CURRENT LIABILITIES 19,562 24,193 SHAREHOLDERS' EQUITY Common Shares, 60,000,000 shares authorized, 27,133,681 and 27,104,462 shares issued and outstanding 49,900 48,717 Retained earnings 633,868 631,384 ------------ ------------ 683,768 680,101 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,132,583 $ 2,162,274 ============ ============ </TABLE> The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated statements. 2
5 RAYONIER INC. AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED) (THOUSANDS OF DOLLARS) <TABLE> <CAPTION> Three Months Ended March 31, -------------------------------- 2001 2000 ------------- ------------- <S> <C> <C> OPERATING ACTIVITIES Net income $ 12,252 $ 35,473 Non-cash items included in income: Depreciation, depletion and amortization 40,495 56,847 Deferred income taxes 4,117 2,319 Non-cash cost of land sales 255 7,651 (Decrease) increase in other non-current liabilities (4,631) 948 Change in accounts receivable, inventory and accounts payable 5,232 (22,564) (Increase) decrease in current timber purchase agreements (2,024) 3,134 Increase in other current assets - (5,108) Increase in accrued liabilities 2,651 24,029 Expenditures for dispositions and discontinued operations, net of tax benefits of $754 and $1,000 (1,274) (1,732) ------------- ------------- CASH FROM OPERATING ACTIVITIES 57,073 100,997 ------------- ------------- INVESTING ACTIVITIES Capital expenditures, net of sales and retirements or $74 and $2,381 (20,998) (25,530) Change in timber purchase agreements and other assets 2,579 6,932 ------------- ------------- CASH USED FOR INVESTING ACTIVITIES (18,419) (18,598) ------------- ------------- FINANCING ACTIVITIES Issuance of debt 96,500 15,000 Repayment of debt (125,500) (75,828) Dividends paid (9,768) (9,849) Repurchase of common shares - (3,543) Issuance of common shares 1,183 1,298 ------------- ------------- CASH USED FOR FINANCING ACTIVITIES (37,585) (72,922) ------------- ------------- CASH AND SHORT TERM INVESTMENTS Increase in cash and short-term investments 1,069 9,477 Balance, beginning of year 9,824 12,265 ------------- ------------- Balance, end of period $ 10,893 $ 21,742 ============= ============= SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for: Interest $ 7,077 $ 7,963 ============= ============= Income taxes $ 229 $ 799 ============= ============= </TABLE> The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated statements. 3
6 RAYONIER INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (DOLLAR AMOUNTS IN THOUSANDS UNLESS OTHERWISE STATED) 1. BASIS OF PRESENTATION The unaudited financial statements reflect, in the opinion of Rayonier Inc. and subsidiaries (Rayonier or the Company), all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the results of operations, the financial position and the cash flows for the periods presented. For a full description of accounting policies, please refer to the Notes to Consolidated Financial Statements in the 2000 Annual Report on Form 10K. 2. EARNINGS PER COMMON SHARE The following table provides details of the calculation of basic and diluted earnings per common share in accordance with Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per Share" for the three months ended: <TABLE> <CAPTION> March 31 ---------------------------- 2001 2000 ------------ ------------ <S> <C> <C> Net income $ 12,252 $ 35,473 ------------ ------------ Shares used for determining basic earnings per common share 27,125,148 27,390,362 Dilutive effect of: Stock options 166,489 186,588 Contingent shares 202,000 360,000 ------------ ------------ Shares used for determining diluted earnings per common share 27,493,637 27,936,950 ============ ============ Basic earnings per common share $ .45 $ 1.30 ============ ============ Diluted earnings per common share $ .45 $ 1.27 ============ ============ </TABLE> 3. FINANCIAL INSTRUMENTS The Company adopted SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended, in the first quarter of 2001. The adoption did not have a material impact on the Company's consolidated financial position or results of operations. The Company is exposed to various market risks, including changes in commodity prices, interest rates and foreign exchange rates. The Company's objective is to minimize the economic impact of these market risks. Derivatives are used, as noted below, in accordance with policies and procedures approved by the Board of Directors and are managed by a senior executive committee whose responsibilities include initiating, managing and monitoring resulting exposures. The Company does not enter into such financial instruments for trading purposes. Rayonier's New Zealand forward contracts are intended to cover anticipated operating needs and therefore do not hedge firm commitments in accordance with SFAS No. 52, "Foreign Currency Translation." As a result, contracts are marked to market as in the past, and the resulting gains and losses on these contracts are included in the "Interest and miscellaneous income (expense), net" line. The Company incurred a loss of approximately $1 million on these foreign currency contracts in the first three months of 2001. During the first quarter of 2001, the maximum foreign currency forward contracts outstanding at any point in time totaled $17.7 million. At March 31, 2001, the Company held foreign currency contracts maturing through April 2002, totaling $12.5 million (nominal value). This included $10.4 million of New Zealand dollar contracts to cover anticipated operating needs, and $2.1 million of Danish Krone contracts to hedge a firm commitment related to equipment purchases payable in Danish Krones. 4
7 RAYONIER INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (DOLLAR AMOUNTS IN THOUSANDS UNLESS OTHERWISE STATED) 4. IDENTIFIABLE ASSETS Total assets by segment as of March 31, 2001 and December 31, 2000, follows (in millions): <TABLE> <CAPTION> IDENTIFIABLE ASSETS ------------------------- 2001 2000 --------- ---------- <S> <C> <C> Performance Fibers $ 620 $ 643 Timberland Management 1,249 1,243 Wood Products and Trading 232 234 Corporate and other 21 32 Dispositions 11 10 --------- ---------- Total $ 2,133 $ 2,162 ========= ========== </TABLE> See Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations for information about segment sales and operating income. 5. SHAREHOLDERS' EQUITY An analysis of shareholders' equity for the three months ended March 31, 2001 and the year ended December 31, 2000, follows (in thousands, share amounts actual): <TABLE> <CAPTION> Common Shares Total ---------------------------- Retained Shareholders' Shares Amount Earnings Equity ---------- ------------- ------------ ------------- <S> <C> <C> <C> <C> BALANCE, JANUARY 1, 2000 27,407,094 $ 63,709 $ 592,382 $ 656,091 Net income - - 78,187 78,187 Dividends paid ($1.44 per share) - - (39,185) (39,185) Incentive stock plans 130,368 2,632 - 2,632 Repurchase of Common Shares (433,000) (17,624) - (17,624) ---------- ------------- ------------ ------------- BALANCE, DECEMBER 31, 2000 27,104,462 48,717 631,384 680,101 Net income - - 12,252 12,252 Dividends paid ($0.36 per share) - - (9,768) (9,768) Incentive stock plans 29,219 1,183 - 1,183 Repurchase of Common Shares - - - - ---------- ------------- ------------ ------------- BALANCE, MARCH 31, 2001 27,133,681 49,900 633,868 683,768 ========== ============= ============ ============= </TABLE> 6. RECLASSIFICATIONS Certain reclassifications of the prior period amounts have been made to conform to the current year presentation. Effective December 31, 2000, the Company changed its method of reporting freight revenue and costs in compliance with Emerging Issues Task Force (EITF) Issue 00-10, "Accounting for Shipping and Handling Fees and Costs." Freight costs will now be charged to cost of sales rather than netted against sales. The Company's financial statements have been reclassified to reflect the increase in sales and cost of sales of $15.8 million for the period ended March 31, 2000. On November 28, 2000, the Company announced its intention to focus on two core businesses, Performance Fibers and Timberland Management, and de-emphasize activities in a third segment, Wood Products and Trading. Based upon the segment changes and the Company's intention of selling timberlands on a more regular basis, certain items in the financial statements have been reclassified. The gain of $23.1 million from the sale of timberland in the first quarter of 2000 was reclassified to Timberland and Real Estate sales of $49.6 million and cost of sales of $26.5 million. In the cash flow statements for the periods ended March 31, 2001 and 2000, an adjustment was made for non-cash expenses relating to the depletion of merchantable and pre-merchantable timber on the land and the basis in the land. All changes noted herein had no effect on net income or earnings per share in the prior period. 5
8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SEGMENT INFORMATION Rayonier operates in three major business segments: Performance Fibers, Timberland Management, and Wood Products and Trading. The Performance Fibers segment includes two reportable business units, Cellulose Specialties and Absorbent Materials. The Timberland Management segment includes two reportable business units, Timber Harvest, and Timberland and Real Estate. Prior years' segment information has been reclassified to conform with the segment information presented in the current year. The amounts and relative contributions to sales and operating income attributable to each of Rayonier's reportable business units for the three months ended March 31, 2001 and 2000 were as follows (thousands of dollars): <TABLE> <CAPTION> Three Months Ended March 31 ------------------------------- 2001 2000 ------------- ------------ <S> <C> <C> SALES Performance Fibers Cellulose Specialties $ 89,955 $ 87,438 Absorbent Materials 49,079 53,714 ------------- ------------ Total Performance Fibers 139,034 141,152 ------------- ------------ Timberland Management Timber Harvest 61,824 62,677 Timberland and Real Estate 1,234 53,079 ------------- ------------ Total Timberland Management 63,058 115,756 ------------- ------------ Wood Products and Trading 83,807 107,882 Intersegment Eliminations (9,412) (10,193) ------------- ------------ Total Sales $ 276,487 $ 354,597 ============= ============ OPERATING INCOME (LOSS) Performance Fibers $ 14,720 $ 17,501 ------------- ------------ Timberland Management Timber Harvest 33,410 40,766 Timberland and Real Estate 2,733 26,018 ------------- ------------ Total Timberland Management 36,143 66,784 ------------- ------------ Wood Products and Trading (6,213) (1,879) Corporate and other (6,772) (7,753) ------------- ------------ Total Operating Income $ 37,878 $ 74,653 ============= ============ </TABLE> 6
9 RESULTS OF OPERATIONS SALES AND OPERATING INCOME Sales for the first quarter of 2001 were $276 million, $78 million below the first quarter of 2000. The sales decrease was due to substantially lower timberland sales, lower log trading activity and weakness in lumber markets. Operating income of $38 million was $37 million lower than the first quarter of 2000, primarily due to lower timberland sales compared to last year, coupled with weak U.S. timber and lumber markets. PERFORMANCE FIBERS Sales of Performance Fibers products for the first quarter of 2001 were $139 million, $2 million lower than first quarter 2000. Operating income for first quarter 2001 of $15 million was $3 million lower than the prior year. Operating income declined 16 percent as a result of higher manufacturing costs, partially offset by higher Cellulose Specialties volume and improved Absorbent Materials prices. CELLULOSE SPECIALTIES Cellulose Specialty sales of $90 million for the first quarter of 2001 were $3 million higher than the first quarter of 2000. The increase over prior year was due primarily from higher sales volume, partly offset by average price decreases of approximately 1 percent. ABSORBENT MATERIALS Absorbent Materials sales of $49 million for the first quarter of 2001 were $5 million lower than the first quarter 2000 sales of $54 million. Lower Absorbent Materials volume was partially offset by improved prices. TIMBERLAND MANAGEMENT Sales of $63 million and operating income of $36 million for first quarter 2001 were lower than first quarter 2000 by $53 million and $31 million, respectively. TIMBER HARVEST Timber Harvest sales for the first quarter of 2001 were $62 million, $1 million lower than last year's first quarter. Operating income of $33 million, was $7 million lower than prior year. These decreases were primarily due to lower Northwest U.S. timber volumes compared to an unusually high level last year, partially offset by an increase in Southeast U.S. timber volumes, following the ramp-up of the October 1999 timberland acquisition in late 2000 and into early 2001. In addition to the volume changes over prior year, timber pricing was negatively impacted by weak lumber markets. TIMBERLAND AND REAL ESTATE Sales for the Timberland and Real Estate unit decreased $52 million for the first quarter ended 2001, while operating income decreased $23 million compared to the first quarter of 2000. Both sales and operating income were lower primarily due to higher timberland sales in the first quarter of 2000, which contributed $53 million and $26 million in sales and operating income, respectively. On April 30, 2001, the Company sold approximately 57,000 acres of timberland for $60 million. The sale will increase operating income in the second quarter of 2001 by approximately $33 million. The net proceeds from the transaction of approximately $58 million will be used to pay down debt. WOOD PRODUCTS AND TRADING First quarter 2001 sales were $84 million compared to $108 million in the first quarter of 2000, while operating losses of $6 million were $4 million higher than a year ago. The variance was primarily due to significantly weaker lumber markets, and lower U.S. domestic trading activity. 7
10 CORPORATE AND OTHER Corporate and other costs were $1 million below last year's first quarter primarily due to lower incentive compensation and relocation expenses, partially offset by higher intersegment eliminations. OTHER INCOME / EXPENSE Interest expense in the first quarter was $19 million, a decrease of $4 million from the first quarter of 2000 primarily due to lower average debt balances. The effective tax rate of 33.6 percent for the first quarter of 2001 was slightly higher than the 31.8 percent rate in the first quarter of 2000. The effective tax rate is below U.S. statutory rates, due to lower tax rates in effect for foreign subsidiaries and to various tax credits. NET INCOME Net income for the first quarter of 2001 was $12.3 million, or $0.45 per diluted common share, compared with $35.5 million, or $1.27 per diluted common share, for the first quarter of 2000. First quarter 2000 included gains of $0.59 per share from timberland sales. Earnings were lower primarily due to lower timberland sales, coupled with weak U.S. timber and lumber markets. OTHER ITEMS Despite continued weakness in the global economy, lower Performance Fibers results in the second quarter of 2001 are expected to be comparable to the first quarter as an increase in shipments should mostly offset continued weakness in Absorbent Materials (fluff pulp) prices. Timber markets continue to soften somewhat and the Northwest timber harvest is expected to decrease from first quarter levels. Second quarter results in total however, should improve over the first quarter, and last year's second quarter, due to the $60 million timberland sale on April 30, 2001. LIQUIDITY AND CAPITAL RESOURCES Cash flow provided by operating activities of $57 million for the first three months of 2001 decreased $44 million from 2000, primarily as a result of lower timberland sales in the first quarter of 2001. Cash flow used for investing activities for the first three months of 2001 was $18 million, essentially the same as in the prior year, with lower expenditures for plant and equipment and for timber purchase agreements, offset by a lower decrease in other assets in 2001 compared to 2000. Cash flow used for financing activities was $38 million, a decrease of $35 million from $73 million in 2000. This was primarily due to higher debt repayments in 2000 and the absence of repurchases of common shares in 2001. EBITDA (defined as earnings from continuing operations before significant non-recurring items, provision for dispositions, interest expense, income taxes, depreciation, depletion, amortization and the non-cash cost of the land basis in timberland and real estate sales) for first quarter 2001 amounted to $78 million, $61 million lower than first quarter 2000 results. The decrease in EBITDA was primarily due to lower timberland sales in the first quarter of 2001. Cash provided by operating activities helped to finance capital expenditures of $21 million, dividends of $10 million, and allowed for the repayment of $29 million of debt. Free cash flow (defined as EBITDA plus significant non-recurring items, less income taxes, interest expense, change in working capital, long-term assets and liabilities, custodial capital spending and prior-year dividend levels) decreased $38 million to $33 million in first quarter 2001, primarily as a result of lower net earnings. The Company did not repurchase any of its common shares outstanding during the first quarter of 2001. During the first quarter of 2000, the Company repurchased 85,600 shares at an average price of $41.39 or a total cost of $3.5 million. At March 31, 2001, debt was $944 million, a reduction of $29 million from December 31, 2000, and the debt-to-capital ratio was 58.0 percent compared to 58.8 percent at December 31, 2000. As of March 31, 2001, Rayonier had $375 million available under its revolving credit facilities. In addition, the Company has on file with the Securities and Exchange Commission shelf registration statements to offer $150 million of new public debt securities. The Company believes that internally generated funds, combined with available external financing, will enable Rayonier to fund capital expenditures, share repurchases, working capital and other liquidity needs for the foreseeable future. 8
11 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK MARKET RISK The Company is exposed to various market risks, including changes in commodity prices, interest rates and foreign exchange rates. The Company's objective is to minimize the economic impact of these market risks. Derivatives are used, as noted, in accordance with policies and procedures approved by the Board of Directors and are managed by a senior executive committee whose responsibilities include initiating, managing and monitoring resulting exposures. The Company does not enter into financial instruments for trading purposes. Circumstances surrounding the Company's exchange rate risk, commodity price risk and interest rate risk remain unchanged from December 31, 2000. For a full description of the Company's market risk, please refer to Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations in the 2000 Annual Report on Form 10K. SAFE HARBOR Comments about market trends, anticipated earnings and activities in second quarter 2001 and beyond, including disclosures about the Company's anticipated timber harvest levels, are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Changes in the following important factors, among others, could cause actual results to differ materially from those expressed in the forward-looking statements: global market conditions impacting supply and demand for wood products, export and domestic logs and high performance cellulose fibers; governmental policies and regulations affecting the environment, import and export controls and taxes; availability and pricing of competitive products; production costs for wood products and performance fibers, particularly for raw materials such as wood and chemicals; weather conditions in the Company's operating areas; and interest rate and currency movements. 9
12 PART II. OTHER INFORMATION ITEM 5. SELECTED OPERATING DATA <TABLE> <CAPTION> Three Months Ended March 31, ----------------------------- 2001 2000 ---------- ---------- <S> <C> <C> PERFORMANCE FIBERS Pulp Sales Volume Cellulose specialties, in thousands of metric tons 103 98 Absorbent materials, in thousands of metric tons 72 85 Production as a percent of capacity 98.6% 104.0% TIMBERLAND MANAGEMENT Timber sales volume Northwest U.S., in millions of board feet 88 90 Southeast U.S., in thousands of short green tons 1,635 999 New Zealand, in thousands of cubic meters 278 253 Intercompany timber sales volume Northwest U.S., in millions of board feet 29 20 Southeast U.S., in thousands of short green tons 14 12 New Zealand, in thousands of cubic meters 138 109 WOOD PRODUCTS AND TRADING Lumber sales volume, in millions of board feet 57 65 Medium-density fiberboard sales volume, in thousands of cubic meters 37 37 Log trading sales volume North America, in millions of board feet 49 62 New Zealand, in thousands of cubic meters 214 244 Other, in thousands of cubic meters 123 119 </TABLE> 10
13 SELECTED SUPPLEMENTAL FINANCIAL DATA (MILLIONS OF DOLLARS, EXCEPT PER SHARE DATA) <TABLE> <CAPTION> Three Months Ended March 31, --------------------------- 2001 2000 ---------- ----------- <S> <C> <C> GEOGRAPHICAL DATA (NON-U.S.) Sales New Zealand $ 24.0 $ 23.2 Other 12.0 13.0 ---------- ----------- Total $ 36.0 $ 36.2 ========== =========== Operating Income New Zealand $ 0.6 $ (1.1) Other 0.1 - ---------- ----------- Total $ 0.7 $ (1.1) ========== =========== TIMBERLAND MANAGEMENT Sales Northwest U.S. $ 25.1 $ 34.3 Southeast U.S. 31.7 77.0 New Zealand 6.3 4.5 ---------- ----------- Total $ 63.1 $ 115.8 ========== =========== Operating Income Northwest U.S. $ 20.1 $ 29.6 Southeast U.S. 14.1 36.1 New Zealand 1.9 1.1 ---------- ----------- Total $ 36.1 $ 66.8 ========== =========== EBITDA PER SHARE Performance Fibers $ 1.22 $ 1.33 Timberland Management 2.02 3.88 Wood Products and Trading (0.11) 0.06 Corporate and other (0.29) (0.28) ---------- ----------- Total $ 2.84 $ 4.99 ========== =========== </TABLE> 11
14 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) See Exhibit Index. (b) Rayonier Inc. filed a report on Form 8-K dated March 23, 2001 that highlighted certain Form 10-K items. (c) Rayonier, Inc. filed a report on Form 8-K dated April 24, 2001, for a news release issued on April 16, 2001, concerning the sale of 57,000 acres of Florida timberland. SIGNATURE Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RAYONIER INC. (Registrant) BY: GERALD J. POLLACK -------------------------- Gerald J. Pollack Senior Vice President and Chief Financial Officer (Chief Accounting Officer) May 14, 2001 12
15 EXHIBIT INDEX <TABLE> <CAPTION> EXHIBIT NO. DESCRIPTION LOCATION - ---------- ----------- -------- <S> <C> <C> 2 Plan of acquisition, reorganization, None arrangement, liquidation or succession 3.1 Amended and restated articles of incorporation No amendments 3.2 By-laws No amendments 4 Instruments defining the rights of security holders, Not required to be filed. The including indentures Registrant hereby agrees to file with the Commission a copy of any instrument defining the rights of holders of the Registrant's long- term debt upon request of the Commission. 10 Material contracts None 11 Statement re: computation of per share earnings Not required to be filed 12 Statement re: computation of ratios Filed herewith 15 Letter re: unaudited interim financial information None 18 Letter re: change in accounting principles None 19 Report furnished to security holders None 22 Published report regarding matters None submitted to vote of security holders 23 Consents of experts and counsel None 24 Power of attorney None 99 Additional exhibits None </TABLE> 13