Rayonier Advanced Materials Announces Second Quarter 2021 Results
Rayonier Advanced Materials (RYAM) achieved a net income of $122 million ($1.89/share) for Q2 2021, a turnaround from a $13 million loss in the prior year. Higher sales prices in High Purity Cellulose and a strong performance in discontinued operations contributed to this improvement. The company expects significant free cash flow due to strong lumber prices and the pending sale of its lumber and newsprint assets for $214 million. Overall, second quarter results show improved cash flows and operational performance, setting the stage for strategic capital allocation.
- Net income increased to $122 million from a loss of $13 million year-over-year.
- Strong performance from High Purity Cellulose and cellulose specialties products.
- Anticipated free cash flow driven by robust lumber prices and asset sales.
- Pending sale of lumber and newsprint assets for approximately $214 million.
- Reduced sales volumes in High Purity Cellulose due to shipping constraints and maintenance outages.
- Increased operational and raw material costs impacting margins.
- Interest expense increased by $2 million for the quarter compared to the prior year.
Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) reported net income of
“As expected, second quarter operating results were significantly favorable to both the prior year and sequential quarter,” said Paul Boynton, President and Chief Executive Officer. “With strong cash flows generated by the record lumber prices in the second quarter, the pending sale of assets to GreenFirst Forest Products and the market recovery in commodity prices, the Company expects to capture significant Free Cash Flow for the year that will enable it to undertake prudent capital allocation initiatives, including debt paydown and investment in high-return projects in its core business.”
Second Quarter 2021 Operating Results from Continuing Operations
As a result of the announced sale of the Company’s lumber and newsprint assets, the Company operates in the following business segments: High Purity Cellulose, Paperboard, High-Yield Pulp and Corporate.
Net sales comprised the following for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
Net sales (in millions) |
June 26, 2021 |
|
March 27, 2021 |
|
June 27, 2020 |
|
June 26, 2021 |
|
June 27, 2020 |
|||||||||||||||
High Purity Cellulose |
$ |
255 |
|
|
|
$ |
250 |
|
|
|
$ |
255 |
|
|
|
$ |
504 |
|
|
|
$ |
505 |
|
|
Paperboard |
57 |
|
|
|
48 |
|
|
|
43 |
|
|
|
105 |
|
|
|
94 |
|
|
|||||
High-Yield Pulp |
37 |
|
|
|
28 |
|
|
|
32 |
|
|
|
64 |
|
|
|
62 |
|
|
|||||
Eliminations |
(8 |
) |
|
|
(7 |
) |
|
|
(6 |
) |
|
|
(13 |
) |
|
|
(12 |
) |
|
|||||
Total net sales |
$ |
341 |
|
|
|
$ |
319 |
|
|
|
$ |
324 |
|
|
|
$ |
660 |
|
|
|
$ |
649 |
|
|
Operating results comprised the following for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
Operating income (loss) (in millions) |
June 26, 2021 |
|
March 27, 2021 |
|
June 27, 2020 |
|
June 26, 2021 |
|
June 27, 2020 |
|||||||||||||||
High Purity Cellulose |
$ |
11 |
|
|
|
$ |
6 |
|
|
|
$ |
7 |
|
|
|
$ |
17 |
|
|
|
$ |
2 |
|
|
Paperboard |
2 |
|
|
|
6 |
|
|
|
6 |
|
|
|
8 |
|
|
|
11 |
|
|
|||||
High-Yield Pulp |
1 |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|||||
Corporate |
(13 |
) |
|
|
(11 |
) |
|
|
(20 |
) |
|
|
(25 |
) |
|
|
(25 |
) |
|
|||||
Total operating income (loss) |
$ |
1 |
|
|
|
$ |
— |
|
|
|
$ |
(6 |
) |
|
|
$ |
1 |
|
|
|
$ |
(12 |
) |
|
High Purity Cellulose
Operating results for the three and six months ended June 26, 2021 improved
Compared to the first quarter of 2021, operating income improved by
Paperboard
Operating results for the three and six months ended June 26, 2021 declined
Compared to the first quarter of 2021, operating income declined
High-Yield Pulp
Operating income for the three months ended June 26, 2021 was flat when compared to the same prior year period at
Operating results improved by
Corporate
The operating loss for the three-month period ended June 26, 2021, improved by
Compared to the first quarter of 2021, the operating loss increased by
Non-Operating Expenses
Interest expense for the three and six months ended June 26, 2021 increased
Interest expense during the three months ended June 26, 2021 was flat at
Income Taxes
For continuing operations, the effective tax rate for the three and six months ended June 26, 2021 was a benefit of 153 percent and 77 percent, respectively, compared to a benefit of 83 percent and 47 percent, respectively, in the same periods of the prior year. The 2021 effective tax rates differ from the statutory rate of 21 percent primarily due to a tax benefit recognized by remeasuring the Company’s Canadian deferred tax assets at a higher blended statutory tax rate in Canada. The statutory tax rate is higher as a result of changing the allocation of income between the Canadian provinces once the sale of Forest Products and Newsprint is completed.
Discontinued Operations
The Company presents businesses that represent components as discontinued operations when they meet the criteria for held for sale or are sold, and their disposal represents a strategic shift that has, or will have, a major effect on its operations and financial results. As a result of the announced sale of lumber and newsprint assets, the Company is presenting the operations for the Forest Products and Newsprint segments as discontinued operations.
Sale of lumber and newsprint assets
On April 12, 2021, the Company announced the sale of its lumber and newsprint facilities and certain related assets (the “Purchased Assets”) located in Ontario and Québec Canada to GreenFirst Forest Products, Inc. (“GreenFirst”), for approximately
The Purchased Assets exclude accounts receivable, accounts payable, certain retained inventory and rights and obligations to softwood lumber duties, generated or incurred through the closing date. Since 2017, the Company has paid a total of
In connection with the transaction, the Company and GreenFirst will enter into a 20-yr wood chip and residual fiber supply agreement as well as a transition services agreement.
Discontinued operations results
Income from discontinued operations, net of taxes, for the three months ended June 26, 2021 was
Income from discontinued operations net of taxes, during the six months ended June 26, 2021 was
The Company currently expects minimal cash taxes to be paid in 2021 or 2022 as a result of 2021 earnings associated with its discontinued operations.
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
Net sales (in millions) |
June 26, 2021 |
|
March 27, 2021 |
|
June 27, 2020 |
|
June 26, 2021 |
|
June 27, 2020 |
|||||||||||||||
Forest Products |
$ |
209 |
|
|
|
$ |
147 |
|
|
|
$ |
70 |
|
|
|
$ |
356 |
|
|
|
$ |
153 |
|
|
Newsprint |
13 |
|
|
|
11 |
|
|
|
11 |
|
|
25 |
|
|
|
28 |
|
|
||||||
Eliminations |
(10 |
) |
|
|
(12 |
) |
|
|
(9 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|||||
Total net sales |
$ |
212 |
|
|
|
$ |
146 |
|
|
|
$ |
72 |
|
|
|
$ |
359 |
|
|
|
$ |
158 |
|
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
Operating income (loss) (in millions) |
June 26, 2021 |
|
March 27, 2021 |
|
June 27, 2020 |
|
June 26, 2021 |
|
June 27, 2020 |
|||||||||||||||
Forest Products |
$ |
117 |
|
|
|
$ |
61 |
|
|
|
$ |
(4 |
) |
|
|
$ |
178 |
|
|
|
$ |
(5 |
) |
|
Newsprint |
(2 |
) |
|
|
(5 |
) |
|
|
(6 |
) |
|
|
(7 |
) |
|
|
(11 |
) |
|
|||||
Total operating income (loss) |
$ |
115 |
|
|
|
$ |
56 |
|
|
|
$ |
(10 |
) |
|
|
$ |
171 |
|
|
|
$ |
(16 |
) |
|
Forest Products
The operating results for the three-month and six-month periods ended June 26, 2021 improved
Compared to the first quarter of 2021, the operating results improved by
Newsprint
Operating results for both the three and six months ended June 26, 2021 improved by
Compared to the first quarter of 2021, the operating results improved by
Cash Flows & Liquidity
For the six months ended June 26, 2021, the Company generated operating cash flows of
For the six months ended June 26, 2021, the Company invested
The Company ended the quarter with
Market Assessment
The market assessment represents the Company’s best current estimate of each business in this environment.
High Purity Cellulose
Pricing levels for the Company’s commodity products increased significantly during the second quarter and the Company expects this upward trend to continue into the third quarter. Prices for cellulose specialties are in line with expectations for the full year. Cellulose specialties volumes are expected to be well above prior year due to strong demand while total segment volumes will decline slightly for the full year mainly due to the length of extended planned maintenance outages. Volumes for both cellulose specialties and commodity products are expected to increase significantly in the second half of 2021 from first half levels.
Key costs are difficult to predict. Prices for energy, wood and commodity chemicals as well as logistics costs, have continued to increase during the second quarter and are expected to escalate in the back half of the year. Further, logistic and shipping constraints may negatively impact operating and sales results through the end of the year.
With current market conditions, including strong demand for cellulose specialties products, specifically in construction, automotive and plastics end markets, and elevated pricing for commodity viscose and fluff products, the Company believes it is well positioned to maintain or improve cellulose specialties margins in 2022 in spite of inflationary pressures. The Company also remains committed to investing in its core business to reduce costs, improve reliability, optimize performance and provide new platforms for growth.
Paperboard
Paperboard prices continued to increase in the second quarter as expected, due to strong demand in both commercial printing and packaging segments, helping offset increases in raw material costs. Paperboard prices are expected to increase further as demand for the Company’s products continues to strengthen, and additionally supported by industry supply disruptions.
High-Yield Pulp
High-yield pulp markets experienced additional price increases during the second quarter that the Company will recognize in the third quarter due to the typical sales lag. However, pulp market prices are forecasted to decrease later in the year. Logistics constraints and higher costs may negatively impact operating results through the end of the year.
Growing RYAM’s BioFuture
Upon the completion of the sale of the lumber and newsprint assets, the Company will focus on and invest in leveraging its four high purity cellulose plants to capitalize on the global demand for more sustainable products with its leading cellulose specialties offerings as alternatives for petroleum-based incumbents. Not only are these specialized assets capable of creating the world’s leading plant-based high purity cellulose, they are also ideally suited for generating green fuels, bioelectricity and other biomaterials such as lignins and tall oils. The Company has executed on several high return projects to enhance the value of these assets, including investments in green energy in Tartas, France, in TemSilk™ pulp, a critical input in the production of Lyocell, a more sustainable textile, and in Anomera, Inc., a company that manufactures carboxylated cellulose nanocrystals (CNC), a patented, biodegradable product for use in cosmetics and a wide variety of industrial applications. The Tartas green energy project is fully operational in the second quarter and the Company anticipates realizing
The Company will seek further opportunities to leverage its core knowledge of creating the remarkable from the renewable to drive incremental value in its BioFuture.
Conclusion
"The second quarter provided strong cash flow for the Company, which combined with the pending sale of our sawmill and newsprint assets, leaves us in a good position to reduce debt and invest in our BioFuture. Further, with rapidly escalating inflation, we will aggressively use all tools available to us to maintain or improve cellulose specialties margins in 2022. With strong demand for cellulose specialties, robust viscose and fluff markets and market supply constraints, we believe this goal is achievable,” concluded Mr. Boynton.
Conference Call Information
Rayonier Advanced Materials will host a conference call and live webcast at 10:00 a.m. ET on Wednesday, August 4, 2021 to discuss these results. Supplemental materials and access to the live audio webcast will be available at www.rayonieram.com. A replay of this webcast will be archived on the company’s website shortly after the call.
Investors may listen to the conference call by dialing 877-407-8293, no passcode required. For international parties, dial 201-689-8349. A replay of the teleconference will be available one hour after the call ends until 6:00 p.m. ET on Wednesday, August 18, 2021. The replay dial-in number within the U.S. is 877-660-6853, international is 201-612-7415, Conference ID: 13721701.
About Rayonier Advanced Materials
Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The Company also manufactures products for lumber, paper and packaging markets. In connection with the announced sale of its lumber and newsprint assets, expected to close on August 28, 2021, the Company will cease to manufacture lumber and certain paper products. With manufacturing operations in the U.S., Canada and France, Rayonier Advanced Materials employed approximately 4,000 people and generated approximately
Forward-Looking Statements
Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Rayonier Advanced Materials’ future events, developments, or financial or operational performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “forecast,” “anticipate,” “guidance,” and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained and it is possible actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. All statements made in this earnings release are made only as of the date set forth at the beginning of this release. The Company undertakes no obligation to update the information made in this release in the event facts or circumstances subsequently change after the date of this release. The Company has not filed its Form 10-Q for the quarter ended June 26, 2021. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Form 10-Q.
Our operations are subject to a number of risks and uncertainties including, but not limited to, those listed below. When considering an investment in our securities, you should carefully read and consider these risks, together with all other information in our Annual Report on Form 10-K and our other filings and submissions to the SEC, which provide much more information and detail on the risks described below. If any of the events described in the following risk factors actually occur, our business, financial condition or operating results, as well as the market price of our securities, could be materially adversely affected. These risks and events include, without limitation: Epidemic and Pandemic Risks Our businesses are subject to risks associated with epidemics and pandemics, including the COVID-19 pandemic and related impacts. The nature and extent of ongoing and future impacts of the pandemic are highly uncertain and unpredictable. Macroeconomic and Industry Risks The businesses we operate are highly competitive and many of them are cyclical, which may result in fluctuations in pricing and volume that can adversely impact our business, financial condition and results of operations; Changes in raw material and energy availability and prices could affect our business, financial condition and results of operations; We are subject to risks associated with doing business outside of the United States; Currency fluctuations may have a negative impact on our business, financial condition and results of operations; Restrictions on trade through tariffs, countervailing and anti-dumping duties, quotas and other trade barriers, in the United States and internationally, could adversely affect our ability to access certain markets. Business and Operating Risks Our ten largest customers represent approximately 31 percent of our 2020 sales, and the loss of all or a substantial portion of our revenue from these large customers could have a material adverse effect on our business; A material disruption at one of our major manufacturing facilities could prevent us from meeting customer demand, reduce our sales and profitability, increase our cost of production and capital needs, or otherwise adversely affect our business, financial condition and results of operation; The availability of, and prices for, wood fiber could materially impact our business, results of operations and financial condition; Our operations require substantial capital; We depend on third parties for transportation services and increases in costs and the availability of transportation could adversely affect our business; Our failure to maintain satisfactory labor relations could have a material adverse effect on our business; We are dependent upon attracting and retaining key personnel, the loss of whom could adversely affect our business; Failure to develop new products or discover new applications for our existing products, or our inability to protect the intellectual property underlying such new products or applications, could have a negative impact on our business; The risk of loss of the Company’s intellectual property and sensitive business information, or disruption of its manufacturing operations, in each case due to cyberattacks or cybersecurity breaches, could adversely impact the Company. Regulatory Risks Our business is subject to extensive environmental laws, regulations and permits that may restrict or adversely affect our financial results and how we conduct business; The potential longer-term impacts of climate-related risks remain uncertain at this time. Financial Risks We may need to make significant additional cash contributions to our retirement benefit plans if investment returns on pension assets are lower than expected or interest rates decline, and/or due to changes to regulatory, accounting and actuarial requirements; We have significant debt obligations that could adversely affect our business and our ability to meet our obligations; The phase-out of LIBOR as an interest rate benchmark in 2023 may impact our borrowing costs; Challenges in the commercial and credit environments may materially adversely affect our future access to capital; We may need additional financing in the future to meet our capital needs or to make acquisitions, and such financing may not be available on favorable terms, if at all, and may be dilutive to existing stockholders. Company’s Common Stock and Certain Corporate Matters Risks Your percentage of ownership in the Company may be diluted in the future; Certain provisions in our amended and restated certificate of incorporation and bylaws, and of Delaware law, could prevent or delay an acquisition of the Company, which could decrease the price of our common stock. Merger and Acquisition Risks Failure to consummate the closing of the sale of the lumber and newsprint facilities and related assets to GreenFirst as contemplated under the binding asset purchase agreement could negatively impact the Company’s future earnings volatility and ability to reduce its leverage and invest in its core business; Fifteen percent (
Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law.
Non-GAAP Financial Measures
This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted operating income, adjusted net income and adjusted net debt. These non-GAAP measures are reconciled to each of their respective most directly comparable GAAP financial measures beginning on Schedule D of this earnings release. We believe these non-GAAP measures provide useful information to our board of directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes.
We do not consider these non-GAAP measures an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they may exclude significant expenses and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expenses and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management provides reconciliations of the non-GAAP financial measures we use to their most directly comparable GAAP measures. Non-GAAP financial measures should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of the Company.
Rayonier Advanced Materials Inc. Condensed Consolidated Statements of Income (Loss) June 26, 2021 (Unaudited) (millions of dollars, except per share information) |
||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
|
June 26,
|
|
March 27,
|
|
June 27,
|
|
June 26,
|
|
June 27,
|
|||||||||||||||
Net Sales |
$ |
341 |
|
|
|
$ |
319 |
|
|
|
$ |
324 |
|
|
|
$ |
660 |
|
|
|
$ |
649 |
|
|
Cost of Sales |
(319 |
) |
|
|
(298 |
) |
|
|
(301 |
) |
|
|
(617 |
) |
|
|
(618 |
) |
|
|||||
Gross Margin |
22 |
|
|
|
21 |
|
|
|
23 |
|
|
|
43 |
|
|
|
31 |
|
|
|||||
Selling, general & administrative expenses |
(18 |
) |
|
|
(16 |
) |
|
|
(20 |
) |
|
|
(34 |
) |
|
|
(39 |
) |
|
|||||
Foreign exchange gains (losses) |
(2 |
) |
|
|
(1 |
) |
|
|
(5 |
) |
|
|
(3 |
) |
|
|
1 |
|
|
|||||
Other operating income (expense), net |
(1 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
|
|||||
Operating Income (Loss) |
1 |
|
|
|
— |
|
|
|
(6 |
) |
|
|
1 |
|
|
|
(12 |
) |
|
|||||
Interest expense |
(16 |
) |
|
|
(16 |
) |
|
|
(14 |
) |
|
|
(32 |
) |
|
|
(27 |
) |
|
|||||
Interest income and other, net |
(2 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|||||
Income (Loss) From Continuing Operations Before Income Taxes |
(17 |
) |
|
|
(16 |
) |
|
|
(21 |
) |
|
|
(32 |
) |
|
|
(40 |
) |
|
|||||
Income tax benefit (expense) |
25 |
|
|
|
— |
|
|
|
17 |
|
|
|
25 |
|
|
|
19 |
|
|
|||||
Equity in income (loss) of equity method investment |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|||||
Income (Loss) from Continuing Operations |
$ |
8 |
|
|
|
(16 |
) |
|
|
$ |
(4 |
) |
|
|
$ |
(8 |
) |
|
|
$ |
(21 |
) |
|
|
Income (loss) from discontinued operations, net of taxes |
114 |
|
|
|
(11 |
) |
|
|
(9 |
) |
|
|
103 |
|
|
|
(16 |
) |
|
|||||
Net Income (Loss) |
$ |
122 |
|
|
|
$ |
(27 |
) |
|
|
$ |
(13 |
) |
|
|
$ |
95 |
|
|
|
$ |
(37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Basic Earnings Per Common Share: |
|
|
|
|
|
|
|
|
||||||||||||||||
Income (loss) from continuing operations |
$ |
0.13 |
|
|
|
$ |
(0.26 |
) |
|
|
$ |
(0.05 |
) |
|
|
$ |
(0.12 |
) |
|
|
$ |
(0.34 |
) |
|
Income (loss) from discontinued operations |
1.79 |
|
|
|
(0.17 |
) |
|
|
(0.15 |
) |
|
|
1.62 |
|
|
|
(0.25 |
) |
|
|||||
Net income (loss) per common share - Basic |
$ |
1.92 |
|
|
|
$ |
(0.43 |
) |
|
|
$ |
(0.20 |
) |
|
|
$ |
1.50 |
|
|
|
$ |
(0.59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Diluted Earnings Per Common Share: |
|
|
|
|
|
|
|
|
||||||||||||||||
Income (loss) from continuing operations |
$ |
0.13 |
|
|
|
$ |
(0.26 |
) |
|
|
$ |
(0.05 |
) |
|
|
$ |
(0.12 |
) |
|
|
$ |
(0.34 |
) |
|
Income (loss) from discontinued operations |
1.76 |
|
|
|
(0.17 |
) |
|
|
(0.15 |
) |
|
|
1.62 |
|
|
|
(0.25 |
) |
|
|||||
Net income (loss) per common share - Diluted |
$ |
1.89 |
|
|
|
$ |
(0.43 |
) |
|
|
$ |
(0.20 |
) |
|
|
$ |
1.50 |
|
|
|
$ |
(0.59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Shares Used for Determining: |
|
|
|
|
|
|
|
|
|
|||||||||||||||
Basic EPS |
63,654,278 |
|
|
|
63,430,601 |
|
|
|
63,235,151 |
|
|
|
63,545,599 |
|
|
|
63,111,058 |
|
|
|||||
Diluted EPS |
64,814,013 |
|
|
|
63,430,601 |
|
|
|
63,235,151 |
|
|
|
63,545,599 |
|
|
|
63,111,058 |
|
|
|||||
A |
||||||||||||||||||||||||
Rayonier Advanced Materials Inc. Condensed Consolidated Balance Sheets June 26, 2021 (Unaudited) (millions of dollars) |
|||||||
|
June 26,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
215 |
|
|
$ |
94 |
|
Assets of discontinued operations-held for sale, current |
246 |
|
|
73 |
|
||
Other current assets |
500 |
|
|
467 |
|
||
Property, plant and equipment, net |
1,161 |
|
|
1,178 |
|
||
Assets of discontinued operations-held for sale, non-current |
— |
|
|
141 |
|
||
Other assets |
526 |
|
|
577 |
|
||
|
$ |
2,648 |
|
|
$ |
2,530 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Debt due within one year |
$ |
17 |
|
|
$ |
17 |
|
Liabilities of discontinued operations-held for sale, current |
14 |
|
|
1 |
|
||
Other current liabilities |
303 |
|
|
275 |
|
||
Long-term debt and finance lease obligations |
1,064 |
|
|
1,067 |
|
||
Non-current environmental liabilities |
162 |
|
|
163 |
|
||
Liabilities of discontinued operations-held for sale, non-current |
— |
|
|
12 |
|
||
Other non-current liabilities |
301 |
|
|
300 |
|
||
Total stockholders’ equity |
787 |
|
|
695 |
|
||
|
$ |
2,648 |
|
|
$ |
2,530 |
|
B |
|||||||
Condensed Consolidated Statements of Cash Flows June 26, 2021 (Unaudited) (millions of dollars) |
|||||||||
|
Six Months Ended |
||||||||
|
June 26,
|
|
June 27,
|
||||||
Operating Activities: |
|
|
|
||||||
Net income (loss) |
$ |
95 |
|
|
|
$ |
(37 |
) |
|
Loss (income) from discontinued operations |
(103 |
) |
|
|
16 |
|
|
||
Adjustments: |
|
|
|
||||||
Depreciation and amortization |
66 |
|
|
|
67 |
|
|
||
Other items to reconcile net income to cash provided by operating activities |
(14 |
) |
|
|
13 |
|
|
||
Changes in working capital and other assets and liabilities |
2 |
|
|
|
(36 |
) |
|
||
Cash provided by operating activities- continuing operations |
46 |
|
|
|
23 |
|
|
||
Cash provided by (used for) operating activities- discontinued operations |
140 |
|
|
|
(12 |
) |
|
||
Cash Provided by Operating Activities |
186 |
|
|
|
11 |
|
|
||
|
|
|
|
||||||
Investing Activities: |
|
|
|
||||||
Capital expenditures, net |
(47 |
) |
|
|
(19 |
) |
|
||
Investment in equity method investment |
(4 |
) |
|
|
— |
|
|
||
Cash provided by (used for) investing activities-continuing operations |
(51 |
) |
|
|
(19 |
) |
|
||
Cash provided by (used for) investing activities-discontinued operations |
(6 |
) |
|
|
(4 |
) |
|
||
Cash Provided by (Used for) Investing Activities |
(57 |
) |
|
|
(23 |
) |
|
||
|
|
|
|
||||||
Financing Activities: |
|
|
|
||||||
Changes in debt |
(6 |
) |
|
|
— |
|
|
||
Common stock repurchased, net of issuances |
(1 |
) |
|
|
— |
|
|
||
Debt issuance costs |
(1 |
) |
|
|
(4 |
) |
|
||
Cash Provided by (Used for) Financing Activities |
(8 |
) |
|
|
(4 |
) |
|
||
|
|
|
|
||||||
Cash and Cash Equivalents: |
|
|
|
||||||
Change in cash and cash equivalents |
121 |
|
|
|
(15 |
) |
|
||
Net effect of foreign exchange on cash and cash equivalents |
— |
|
|
|
— |
|
|
||
Balance, beginning of year |
94 |
|
|
|
64 |
|
|
||
Balance, end of period |
$ |
215 |
|
|
|
$ |
49 |
|
|
C |
|||||||||
Rayonier Advanced Materials Inc. Sales Volumes and Average Prices June 26, 2021 (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 26,
|
|
March 27,
|
|
June 27,
|
|
June 26,
|
|
June 27,
|
||||||||||
Average Sales Prices: |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose ($ per metric ton): |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
1,128 |
|
|
$ |
1,046 |
|
|
$ |
966 |
|
|
$ |
1,086 |
|
|
$ |
965 |
|
Paperboard ($ per metric ton): |
|
|
|
|
|
|
|
|
|
||||||||||
Paperboard |
$ |
1,150 |
|
|
$ |
1,111 |
|
|
$ |
1,091 |
|
|
$ |
1,132 |
|
|
$ |
1,100 |
|
High-Yield Pulp ($ per metric ton): |
|
|
|
|
|
|
|
|
|
||||||||||
Pulp (external sales) |
$ |
539 |
|
|
$ |
474 |
|
|
$ |
493 |
|
|
$ |
510 |
|
|
$ |
478 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes: |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose (thousands of metric tons): |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
204 |
|
|
217 |
|
|
245 |
|
|
421 |
|
|
480 |
|
|||||
Paperboard (thousands of metric tons): |
|
|
|
|
|
|
|
|
|
||||||||||
Paperboard |
49 |
|
|
43 |
|
|
40 |
|
|
92 |
|
|
85 |
|
|||||
High-Yield Pulp (thousands of metric tons): |
|
|
|
|
|
|
|
|
|
||||||||||
Pulp (external sales) |
55 |
|
|
44 |
|
|
53 |
|
|
99 |
|
|
105 |
|
|||||
D |
|||||||||||||||||||
Rayonier Advanced Materials Inc. Reconciliation of Non-GAAP Measures June 26, 2021 (Unaudited) |
||||||||||||||||||||
Total EBITDA |
Three Months Ended |
|
|
Six Months Ended |
||||||||||||||||
June 26, 2021 |
|
June 27, 2020 |
|
|
June 26, 2021 |
|
June 27, 2020 |
|||||||||||||
Net Income (Loss) |
$ |
122 |
|
|
|
$ |
(13 |
) |
|
|
|
$ |
95 |
|
|
|
$ |
(37 |
) |
|
Depreciation and amortization-continuing operations |
33 |
|
|
|
32 |
|
|
|
|
66 |
|
|
|
67 |
|
|
||||
Depreciation and amortization-discontinued operations |
— |
|
|
|
3 |
|
|
|
|
3 |
|
|
|
6 |
|
|
||||
Interest expense, net-continuing operations |
16 |
|
|
|
14 |
|
|
|
|
32 |
|
|
|
27 |
|
|
||||
Interest expense, net-discontinued operations |
3 |
|
|
|
2 |
|
|
|
|
5 |
|
|
|
4 |
|
|
||||
Income tax expense (benefit) continuing operations |
(25 |
) |
|
|
(17 |
) |
|
|
|
(25 |
) |
|
|
(19 |
) |
|
||||
Income tax expense (benefit)-discontinued operations |
(1 |
) |
|
|
(1 |
) |
|
|
|
63 |
|
|
|
(2 |
) |
|
||||
EBITDA |
$ |
148 |
|
|
|
$ |
20 |
|
|
|
|
$ |
239 |
|
|
|
$ |
46 |
|
|
Pension settlement (gain) loss |
1 |
|
|
|
— |
|
|
|
|
1 |
|
|
|
— |
|
|
||||
Adjusted EBITDA |
$ |
149 |
|
|
|
$ |
20 |
|
|
|
|
$ |
240 |
|
|
|
$ |
46 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Adjusted Free Cash Flow Reconciliation |
|||||||||
|
|
|
|
||||||
|
Six Months Ended |
||||||||
Adjusted Free Cash Flows (a): |
June 26,
|
|
June 27,
|
||||||
Cash provided by operating activities |
$ |
186 |
|
|
|
$ |
11 |
|
|
Capital expenditures, net |
(45 |
) |
|
|
(17 |
) |
|
||
Adjusted Free Cash Flows from Total Operations |
$ |
141 |
|
|
|
$ |
(6 |
) |
|
(a) |
Adjusted free cash flows is defined as cash provided by (used for) operating activities adjusted for capital expenditures, net of proceeds from sale of assets, excluding strategic capital. Adjusted free cash flows is a non-GAAP measure of cash generated during a period which is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of our common stock. Adjusted free cash flows is not necessarily indicative of the adjusted free cash flows that may be generated in future periods. |
|
E |
||
EBITDA by Segment (a): |
Three Months Ended June 26, 2021 |
||||||||||||||||||||
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from continuing operations |
$ |
11 |
|
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
(7 |
) |
|
|
$ |
8 |
|
|
Depreciation and amortization |
27 |
|
|
4 |
|
|
1 |
|
|
1 |
|
|
|
33 |
|
|
|||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
16 |
|
|
|
16 |
|
|
|||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
(25 |
) |
|
|
(25 |
) |
|
|||||
EBITDA-continuing operations |
$ |
38 |
|
|
$ |
7 |
|
|
$ |
2 |
|
|
$ |
(15 |
) |
|
|
$ |
32 |
|
|
Pension settlement (gain) loss |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
|
1 |
|
|
|||||
Adjusted EBITDA-continuing operations |
$ |
38 |
|
|
$ |
7 |
|
|
$ |
2 |
|
|
$ |
(14 |
) |
|
|
$ |
33 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Segment (a): |
Three Months Ended March 27, 2021 |
||||||||||||||||||||
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from continuing operations |
$ |
7 |
|
|
$ |
6 |
|
|
$ |
— |
|
|
$ |
(29 |
) |
|
|
$ |
(16 |
) |
|
Depreciation and amortization |
28 |
|
|
4 |
|
|
— |
|
|
1 |
|
|
|
33 |
|
|
|||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
15 |
|
|
|
15 |
|
|
|||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|||||
EBITDA-continuing operations |
$ |
35 |
|
|
$ |
10 |
|
|
$ |
— |
|
|
$ |
(13 |
) |
|
|
$ |
32 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended June 27, 2020 |
||||||||||||||||||||
|
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate & Other |
|
Total |
||||||||||||
Income (loss) from continuing operations |
$ |
5 |
|
|
$ |
6 |
|
|
$ |
1 |
|
|
$ |
(16 |
) |
|
|
$ |
(4 |
) |
|
Depreciation and amortization |
26 |
|
|
4 |
|
|
1 |
|
|
1 |
|
|
|
32 |
|
|
|||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
14 |
|
|
|
14 |
|
|
|||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
(17 |
) |
|
|
(17 |
) |
|
|||||
EBITDA-continuing operations |
$ |
31 |
|
|
$ |
10 |
|
|
$ |
2 |
|
|
$ |
(18 |
) |
|
|
$ |
25 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Segment (a): |
Six Months Ended June 26, 2021 |
||||||||||||||||||||
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from continuing operations |
$ |
18 |
|
|
$ |
9 |
|
|
$ |
1 |
|
|
$ |
(36 |
) |
|
|
$ |
(8 |
) |
|
Depreciation and amortization |
55 |
|
|
8 |
|
|
1 |
|
|
2 |
|
|
|
66 |
|
|
|||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
32 |
|
|
|
32 |
|
|
|||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
(25 |
) |
|
|
(25 |
) |
|
|||||
EBITDA-continuing operations |
$ |
73 |
|
|
$ |
17 |
|
|
$ |
2 |
|
|
$ |
(27 |
) |
|
|
$ |
65 |
|
|
Pension settlement (gain) loss |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
|
1 |
|
|
|||||
Adjusted EBITDA-continuing operations |
$ |
73 |
|
|
$ |
17 |
|
|
$ |
2 |
|
|
$ |
(26 |
) |
|
|
$ |
66 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 27, 2020 |
||||||||||||||||||||
|
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate & Other |
|
Total |
||||||||||||
Income (loss) from continuing operations |
$ |
— |
|
|
$ |
11 |
|
|
$ |
— |
|
|
$ |
(32 |
) |
|
|
$ |
(21 |
) |
|
Depreciation and amortization |
57 |
|
|
8 |
|
|
1 |
|
|
1 |
|
|
|
67 |
|
|
|||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
27 |
|
|
|
27 |
|
|
|||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
(19 |
) |
|
|
(19 |
) |
|
|||||
EBITDA-continuing operations |
$ |
57 |
|
|
$ |
19 |
|
|
$ |
1 |
|
|
$ |
(23 |
) |
|
|
$ |
54 |
|
|
(a) |
EBITDA- continuing operations is defined as income (loss) from continuing operations before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. |
|
G |
||
Rayonier Advanced Materials Inc. Reconciliation of Non-GAAP Measures (Continued) June 26, 2021 (Unaudited) (millions of dollars, except per share information) |
|||||||||
|
Six Months Ended |
||||||||
Adjusted Free Cash Flows - continuing operations (a): |
June 26,
|
|
June 27,
|
||||||
Cash provided by operating activities of continuing operations |
$ |
46 |
|
|
|
$ |
23 |
|
|
Capital expenditures, net |
(43 |
) |
|
|
(15 |
) |
|
||
Adjusted Free Cash Flows-continuing operations |
$ |
3 |
|
|
|
$ |
8 |
|
|
(a) |
Adjusted free cash flows-continuing operations is defined as cash provided by (used for) operating activities from continuing operations adjusted for capital expenditures, net of proceeds from sale of assets, excluding strategic capital. Adjusted free cash flows is a non-GAAP measure of cash generated during a period which is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of our common stock. Adjusted free cash flows is not necessarily indicative of the adjusted free cash flows that may be generated in future periods. |
Adjusted Net Debt (a): |
June 26,
|
|
December 31,
|
||||||
Debt due within one year |
$ |
17 |
|
|
|
$ |
17 |
|
|
Long-term debt & finance lease obligation |
1,064 |
|
|
|
1,067 |
|
|
||
Total debt |
1,081 |
|
|
|
1,084 |
|
|
||
Original issue discount, premiums and debt issuance costs |
11 |
|
|
|
11 |
|
|
||
Cash and cash equivalents |
(215 |
) |
|
|
(94 |
) |
|
||
Adjusted Net Debt |
$ |
877 |
|
|
|
$ |
1,001 |
|
|
(a) |
Adjusted net debt is defined as the amount of debt after the consideration of the original issue discount, premiums, and debt issuance costs, less cash. Adjusted net debt is a non-GAAP measure of debt and is not necessarily indicative of the adjusted net debt that may occur in future periods. |
|
H |
||
Rayonier Advanced Materials Inc. Reconciliation of Non-GAAP Measures (Continued) June 26, 2021 (Unaudited) (millions of dollars, except per share information) |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||||||||||||||||||||
|
June 26,
|
|
March 27,
|
|
June 27,
|
|
June 26,
|
|
June 27,
|
||||||||||||||||||||||||||||||||||||||
Adjusted Income (Loss) from Continuing Operations (a): |
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
||||||||||||||||||||||||||||
Income (Loss) from Continuing Operations |
$ |
8 |
|
|
$ |
0.13 |
|
|
$ |
(16 |
) |
|
|
$ |
(0.26 |
) |
|
|
$ |
(4 |
) |
|
|
$ |
(0.05 |
) |
|
|
$ |
(8 |
) |
|
|
$ |
(0.12 |
) |
|
|
$ |
(21 |
) |
|
|
$ |
(0.34 |
) |
|
Pension settlement loss |
1 |
|
|
0.01 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
||||||||||
Tax effects of adjustments |
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
— |
|
|
|||||||||
Adjusted Income (Loss) from Continuing Operations |
$ |
9 |
|
|
$ |
0.14 |
|
|
$ |
(16 |
) |
|
|
$ |
(0.26 |
) |
|
|
$ |
(4 |
) |
|
|
$ |
(0.05 |
) |
|
|
$ |
(7 |
) |
|
|
$ |
(0.11 |
) |
|
|
$ |
(21 |
) |
|
|
$ |
(0.34 |
) |
|
(a) |
Adjusted income (loss) from Continuing Operations is defined as net income (loss) from Continuing Operations adjusted net of tax for a settlement of certain pension plans. Adjusted net income (loss) is not necessarily indicative of results that may be generated in future periods. |
|
I |
||
Discontinued Operations EBITDA Reconciliation - Forest Products and Newsprint |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Discontinued Segment: |
Three Months Ended June 26, 2021 |
|||||||||||||||||||
|
Forest Products |
|
Newsprint |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from discontinued operations |
|
$ |
118 |
|
|
|
$ |
(1 |
) |
|
|
$ |
(3 |
) |
|
|
$ |
114 |
|
|
Depreciation and amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
|
||||
Income tax expense (benefit) |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
||||
EBITDA from discontinued operations |
|
$ |
118 |
|
|
|
$ |
(1 |
) |
|
|
$ |
(1 |
) |
|
|
$ |
116 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Discontinued Segment: |
Three Months Ended March 27, 2021 |
|||||||||||||||||||
|
Forest Products |
|
Newsprint |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from discontinued operations |
|
$ |
61 |
|
|
|
$ |
(4 |
) |
|
|
$ |
(68 |
) |
|
|
$ |
(11 |
) |
|
Depreciation and amortization |
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
||||
Income tax expense (benefit) |
|
— |
|
|
|
— |
|
|
|
64 |
|
|
|
64 |
|
|
||||
EBITDA from discontinued operations |
|
$ |
64 |
|
|
|
$ |
(4 |
) |
|
|
$ |
(2 |
) |
|
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Discontinued Segment: |
Three Months Ended June 27, 2020 |
|||||||||||||||||||
|
Forest Products |
|
Newsprint |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from discontinued operations |
|
$ |
(3 |
) |
|
|
$ |
(5 |
) |
|
|
$ |
(1 |
) |
|
|
$ |
(9 |
) |
|
Depreciation and amortization |
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
||||
Income tax expense (benefit) |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
||||
EBITDA from discontinued operations |
|
$ |
(1 |
) |
|
|
$ |
(4 |
) |
|
|
$ |
— |
|
|
|
$ |
(5 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Discontinued Segment: |
Six Months Ended June 26, 2021 |
|||||||||||||||||||
|
Forest Products |
|
Newsprint |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from discontinued operations |
|
$ |
179 |
|
|
|
$ |
(5 |
) |
|
|
$ |
(71 |
) |
|
|
$ |
103 |
|
|
Depreciation and amortization |
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
|
||||
Income tax expense (benefit) |
|
— |
|
|
|
— |
|
|
|
63 |
|
|
|
63 |
|
|
||||
EBITDA from discontinued operations |
|
$ |
182 |
|
|
|
$ |
(5 |
) |
|
|
$ |
(3 |
) |
|
|
$ |
174 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Discontinued Segment: |
Six Months Ended June 27, 2020 |
|||||||||||||||||||
|
Forest Products |
|
Newsprint |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from discontinued operations |
|
$ |
(3 |
) |
|
|
$ |
(9 |
) |
|
|
$ |
(3 |
) |
|
|
$ |
(15 |
) |
|
Depreciation and amortization |
|
5 |
|
|
|
1 |
|
|
|
— |
|
|
|
6 |
|
|
||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
|
||||
Income tax expense (benefit) |
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
||||
EBITDA from discontinued operations |
|
$ |
2 |
|
|
|
$ |
(8 |
) |
|
|
$ |
(1 |
) |
|
|
$ |
(7 |
) |
|
J |
||||||||||||||||||||
Discontinued Operations Adjusted Free Cash Flow Reconciliation |
|||||||||
|
|
|
|
||||||
|
Six Months Ended |
||||||||
Adjusted Free Cash Flows from Discontinued Operations (a): |
June 26,
|
|
June 27,
|
||||||
Cash provided by operating activities of discontinued operations |
$ |
140 |
|
|
|
$ |
(12 |
) |
|
Capital expenditures, net, for discontinued operations |
(2 |
) |
|
|
(2 |
) |
|
||
Adjusted Free Cash Flows from Discontinued Operations |
$ |
138 |
|
|
|
$ |
(14 |
) |
|
(a) |
Adjusted free cash flows from discontinued operations is defined as cash provided by (used for) operating activities from discontinued operations adjusted for capital expenditures, net of proceeds from sale of assets, excluding strategic capital, all solely related to discontinued operations. Adjusted free cash flows for discontinued operations is a non-GAAP measure of cash generated during a period which is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of our common stock. Adjusted free cash flows for discontinued operations is not necessarily indicative of the adjusted free cash flows that may be generated by these operations in future periods. |
Discontinued Operations - Sales Volumes and Average Prices |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 26, 2021 |
|
March 27, 2021 |
|
June 27, 2020 |
|
June 26, 2021 |
|
June 27, 2020 |
||||||||||
Average Sales Prices: |
|
|
|
|
|
|
|
|
|
||||||||||
Forest Products ($ per thousand board feet): |
|
|
|
|
|
|
|
|
|
||||||||||
Lumber |
$ |
1,223 |
|
|
$ |
888 |
|
|
$ |
391 |
|
|
$ |
1,062 |
|
|
$ |
399 |
|
Newsprint ($ per metric ton): |
|
|
|
|
|
|
|
|
|
||||||||||
Newsprint |
$ |
529 |
|
|
$ |
468 |
|
|
$ |
412 |
|
|
$ |
499 |
|
|
$ |
415 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes: |
|
|
|
|
|
|
|
|
|
||||||||||
Forest Products (millions of board feet): |
|
|
|
|
|
|
|
|
|
||||||||||
Lumber |
156 |
|
144 |
|
142 |
|
300 |
|
290 |
||||||||||
Newsprint (thousands of metric tons): |
|
|
|
|
|
|
|
|
|
||||||||||
Newsprint |
25 |
|
25 |
|
27 |
|
50 |
|
67 |
||||||||||
K |
|||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210803006098/en/
FAQ
What was Rayonier Advanced Materials' net income for Q2 2021?
How did RYAM perform in the previous year compared to Q2 2021?
What drove the increase in RYAM's earnings per share in Q2 2021?
What is the expected impact of the pending asset sale for RYAM?
How much did RYAM's operating cash flow improve in Q2 2021?
