RYAM Announces Impressive Fourth Quarter and Full Year 2024 Results and Provides 2025 Guidance
Rayonier Advanced Materials (RYAM) reported its Q4 and full-year 2024 results, showing mixed performance. Net sales reached $1,630 million, slightly down $13 million from 2023. The company reduced its loss from continuing operations to $42 million, a $60 million improvement year-over-year.
Key financial metrics include Adjusted EBITDA of $222 million (up $83 million), total debt of $730 million, and Net Secured Debt of $625 million. The company generated $203 million from operating activities and $128 million in Adjusted Free Cash Flow.
Strategic highlights include reducing commodity market exposure, securing €67 million in capital commitments for biomaterials investments, and completing a five-year loan refinancing. For 2025, RYAM projects Adjusted EBITDA guidance of $215-235 million and Adjusted Free Cash Flow of $25-45 million, with a negotiated mid-single-digit price increase for cellulose specialties.
Rayonier Advanced Materials (RYAM) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. Le vendite nette hanno raggiunto 1.630 milioni di dollari, in calo di 13 milioni di dollari rispetto al 2023. L'azienda ha ridotto la sua perdita dalle operazioni continuative a 42 milioni di dollari, con un miglioramento di 60 milioni di dollari anno su anno.
I principali indicatori finanziari includono un EBITDA rettificato di 222 milioni di dollari (in aumento di 83 milioni), un debito totale di 730 milioni di dollari e un debito netto garantito di 625 milioni di dollari. L'azienda ha generato 203 milioni di dollari dalle attività operative e 128 milioni di dollari in flusso di cassa libero rettificato.
Le principali strategie includono la riduzione dell'esposizione al mercato delle materie prime, l'assicurazione di 67 milioni di euro in impegni di capitale per investimenti in biomateriali e il completamento di un rifinanziamento di prestiti quinquennali. Per il 2025, RYAM prevede una guida per l'EBITDA rettificato di 215-235 milioni di dollari e un flusso di cassa libero rettificato di 25-45 milioni di dollari, con un aumento di prezzo negoziato a cifra singola bassa per le specialità di cellulosa.
Rayonier Advanced Materials (RYAM) informó sus resultados del cuarto trimestre y del año completo 2024, mostrando un rendimiento mixto. Las ventas netas alcanzaron 1,630 millones de dólares, una disminución de 13 millones de dólares en comparación con 2023. La empresa redujo su pérdida de operaciones continuas a 42 millones de dólares, una mejora de 60 millones de dólares en comparación con el año anterior.
Las métricas financieras clave incluyen un EBITDA ajustado de 222 millones de dólares (un aumento de 83 millones), una deuda total de 730 millones de dólares y una deuda neta asegurada de 625 millones de dólares. La empresa generó 203 millones de dólares de actividades operativas y 128 millones de dólares en flujo de caja libre ajustado.
Los aspectos estratégicos incluyen la reducción de la exposición al mercado de materias primas, la obtención de 67 millones de euros en compromisos de capital para inversiones en biomateriales y la finalización de un refinanciamiento de préstamos a cinco años. Para 2025, RYAM proyecta una guía de EBITDA ajustado de 215-235 millones de dólares y un flujo de caja libre ajustado de 25-45 millones de dólares, con un aumento de precio negociado de un solo dígito bajo para las especialidades de celulosa.
레이오니어 어드밴스드 머티리얼즈 (RYAM)는 2024년 4분기 및 전체 연도 실적을 발표하며 혼합된 성과를 보여주었습니다. 순매출은 16억 3천만 달러에 달하며, 2023년 대비 1천3백만 달러 감소했습니다. 회사는 지속 운영에서의 손실을 4천2백만 달러로 줄였으며, 이는 전년 대비 6천만 달러의 개선입니다.
주요 재무 지표에는 조정된 EBITDA가 2억 2천2백만 달러(8천3백만 달러 증가), 총 부채가 7억 3천만 달러, 순 담보 부채가 6억 2천5백만 달러가 포함됩니다. 회사는 운영 활동에서 2억 3백만 달러를 생성하였고, 1억 2천8백만 달러의 조정된 자유 현금 흐름을 기록했습니다.
전략적 하이라이트에는 원자재 시장 노출 감소, 바이오 소재 투자에 대한 6천7백만 유로의 자본 약정 확보, 5년 대출 재융자 완료가 포함됩니다. 2025년을 위해 RYAM은 2억 1천5백만-2억 3천5백만 달러의 조정된 EBITDA 가이드를 예상하며, 조정된 자유 현금 흐름은 2천5백만-4천5백만 달러로, 셀룰로오스 특수 제품에 대한 낮은 단일 자릿수 가격 인상을 협상했습니다.
Rayonier Advanced Materials (RYAM) a publié ses résultats du quatrième trimestre et de l'année complète 2024, montrant des performances mitigées. Les ventes nettes ont atteint 1,630 milliard de dollars, en baisse de 13 millions de dollars par rapport à 2023. L'entreprise a réduit sa perte d'exploitation continue à 42 millions de dollars, soit une amélioration de 60 millions de dollars par rapport à l'année précédente.
Les indicateurs financiers clés comprennent un EBITDA ajusté de 222 millions de dollars (en hausse de 83 millions), une dette totale de 730 millions de dollars et une dette nette garantie de 625 millions de dollars. L'entreprise a généré 203 millions de dollars grâce à ses activités opérationnelles et 128 millions de dollars de flux de trésorerie libre ajusté.
Les points forts stratégiques incluent la réduction de l'exposition au marché des matières premières, la sécurisation de 67 millions d'euros d'engagements en capital pour des investissements dans les biomatériaux et l'achèvement d'un refinancement de prêt sur cinq ans. Pour 2025, RYAM prévoit une prévision d'EBITDA ajusté de 215-235 millions de dollars et un flux de trésorerie libre ajusté de 25-45 millions de dollars, avec une augmentation de prix négociée à un chiffre unique bas pour les spécialités de cellulose.
Rayonier Advanced Materials (RYAM) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte Leistung zeigen. Der Nettoumsatz erreichte 1.630 Millionen Dollar, was einem Rückgang von 13 Millionen Dollar im Vergleich zu 2023 entspricht. Das Unternehmen hat seinen Verlust aus fortgeführten Aktivitäten auf 42 Millionen Dollar reduziert, was einer Verbesserung von 60 Millionen Dollar im Jahresvergleich entspricht.
Wichtige Finanzkennzahlen umfassen ein bereinigtes EBITDA von 222 Millionen Dollar (ein Anstieg um 83 Millionen), eine Gesamtverschuldung von 730 Millionen Dollar und eine netto gesicherte Verschuldung von 625 Millionen Dollar. Das Unternehmen erzielte 203 Millionen Dollar aus operativen Tätigkeiten und 128 Millionen Dollar an bereinigtem freien Cashflow.
Strategische Highlights umfassen die Reduzierung der Rohstoffmarktexposition, die Sicherung von 67 Millionen Euro an Kapitalzusagen für Investitionen in Biomaterialien und den Abschluss einer fünfjährigen Kreditrefinanzierung. Für 2025 prognostiziert RYAM eine bereinigte EBITDA-Leitlinie von 215-235 Millionen Dollar und einen bereinigten freien Cashflow von 25-45 Millionen Dollar, mit einer ausgehandelten Preiserhöhung im niedrigen einstelligen Bereich für Zellulose-Spezialitäten.
- Adjusted EBITDA increased 60% to $222 million
- Generated $128 million Adjusted Free Cash Flow
- Reduced net debt by $73 million
- Secured €67 million capital commitments for biomaterials strategy
- Negotiated mid-single-digit price increase for 2025
- Net sales declined by $13 million to $1,630 million
- Reported loss from continuing operations of $42 million
- Lower sales volumes expected in 2025
- Headwinds in Paperboard business due to new supply
- 25% tariff impact on U.S. paperboard sales
Insights
RYAM's Q4 and full-year 2024 results demonstrate a significant financial turnaround despite continued challenges. The company improved its loss from continuing operations by
The strategic pivot to focus on higher-margin specialty products is yielding results, with cellulose specialties volumes increasing
For 2025, RYAM has successfully negotiated mid-single-digit price increases for its core cellulose specialties without losing market share. However, the 2025 Free Cash Flow guidance of
The
RYAM's transformation strategy is showing tangible results through three interconnected initiatives: portfolio optimization, biomaterials expansion, and financial restructuring. The indefinite suspension of Temiscaming HPC operations represents a decisive portfolio rationalization move that intentionally sacrifices volume for margin improvement. This strategic shift has already reduced commodity exposure from
The biomaterials strategy represents RYAM's most promising growth vector. Securing
RYAM's operational strategy emphasizes targeted efficiency improvements rather than broad cost-cutting. The
The mid-single-digit price increase negotiated for cellulose specialties without losing market share indicates RYAM's strengthened competitive position following a competitor's plant closure. However, challenges remain in the paperboard segment due to European imports and the
-
Net sales for 2024 of
$1,630 million $13 million -
Loss from continuing operations for 2024 of
$42 million $60 million -
Adjusted EBITDA from continuing operations for 2024 of
$222 million $83 million -
Total debt of
$730 million $625 million -
Cash provided by operating activities in 2024 of
$203 million $128 million -
2025 Adjusted EBITDA guidance of
$215 million $235 million -
2025 Adjusted Free Cash Flow guidance
$25 million $45 million
“2024 marked a transformative chapter in our journey at RYAM, with the achievement of several strategic milestones that will position us well for the future,” stated De Lyle Bloomquist, President and CEO of RYAM. “We continued to strengthen our core High Purity Cellulose business and reduced our exposure to commodity markets. We made significant strides towards executing on our biomaterials strategy, and we improved our balance sheet while delivering outstanding financial results.
“We took decisive action to reduce our exposure to commodity markets in 2024, including the indefinite suspension of our High Purity Cellulose operations in Temiscaming. As a result, we reduced our commodity viscose, paper pulp and High-Yield Pulp sales from 22 percent in 2023 to 13 percent in 2024. With respect to our biomaterials strategy, we secured
“Looking forward to 2025, we expect to build upon last year’s achievements by continuing to prioritize value over volume for our core cellulose specialties products, advancing our biomaterials strategy and realizing production efficiencies from strategic capital investments. We have negotiated a mid single-digit price increase for our cellulose specialties business for 2025 without losing market share, though our sales volumes will be lower due to accelerated shipments in 2024 resulting from the indefinite suspension of the Temiscaming HPC operations. We expect to achieve
Fourth Quarter 2024 Financial Results
The Company reported a net loss of
During 2024, the Company operated in three operating segments: High Purity Cellulose, Paperboard and High-Yield Pulp.
Net sales were comprised of the following for the periods presented:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
(in millions) |
December 31,
|
|
September 28,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
High Purity Cellulose |
$ |
338 |
|
|
$ |
325 |
|
|
$ |
347 |
|
|
$ |
1,302 |
|
|
$ |
1,313 |
|
Paperboard |
|
60 |
|
|
|
55 |
|
|
|
55 |
|
|
|
228 |
|
|
|
219 |
|
High-Yield Pulp |
|
32 |
|
|
|
28 |
|
|
|
25 |
|
|
|
127 |
|
|
|
136 |
|
Eliminations |
|
(8 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(27 |
) |
|
|
(25 |
) |
Net sales |
$ |
422 |
|
|
$ |
401 |
|
|
$ |
422 |
|
|
$ |
1,630 |
|
|
$ |
1,643 |
|
Operating income (loss) was comprised of the following for the periods presented:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
(in millions) |
December 31,
|
|
September 28,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
High Purity Cellulose |
$ |
31 |
|
|
$ |
(6 |
) |
|
$ |
(49 |
) |
|
$ |
76 |
|
|
$ |
(42 |
) |
Paperboard |
|
4 |
|
|
|
7 |
|
|
|
8 |
|
|
|
31 |
|
|
|
37 |
|
High-Yield Pulp |
|
(8 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(3 |
) |
Corporate |
|
(16 |
) |
|
|
(18 |
) |
|
|
(15 |
) |
|
|
(60 |
) |
|
|
(57 |
) |
Operating income (loss) |
$ |
11 |
|
|
$ |
(17 |
) |
|
$ |
(61 |
) |
|
$ |
39 |
|
|
$ |
(65 |
) |
Following the indefinite suspension of Temiscaming HPC operations in the third quarter of 2024, the Temiscaming site continues to incur custodial site costs in support of the ongoing energy needs of the Paperboard and High-Yield Pulp operations. Further, the electricity generated from the Temiscaming HPC plant assets is no longer deemed a by-product of the HPC manufacturing process. Due to these assets now running solely to support Paperboard and High-Yield Pulp, beginning in the fourth quarter, the net impact of these electricity sales and the custodial site costs being incurred in support of these operations is reflected within the operating results of the Paperboard and High-Yield Pulp businesses.
High Purity Cellulose
Net sales for the year ended December 31, 2024 decreased
Net sales for the fourth quarter decreased
Operating income (loss) for the quarter and year ended December 31, 2024 improved
In addition to the items above, the improvement in the quarter operating results was further driven by lower costs due to the indefinite suspension of HPC operations at Temiscaming and
Compared to the third quarter of 2024, net sales increased
Paperboard
Net sales for the quarter and year ended December 31, 2024 increased
Operating income for the quarter and year ended December 31, 2024 decreased
Compared to the third quarter of 2024, operating income decreased
High-Yield Pulp
Net sales for the year ended December 31, 2024 decreased
Operating loss for the quarter and year ended December 31, 2024 increased
Compared to the third quarter of 2024, operating results declined
Corporate
Operating loss for the quarter and year ended December 31, 2024 increased
Compared to the third quarter of 2024, the operating loss decreased
Non-Operating Income & Expense
Interest expense for the quarter and year ended December 31, 2024 increased
During the quarter and year ended December 31, 2024, the Company recorded charges of
Interest income for the year ended December 31, 2024 decreased
Favorable foreign exchange rates during the quarter and year ended December 31, 2024 compared to unfavorable rates in the same prior year periods resulted in a net favorable impact of
Included in “other income, net” in the year ended December 31, 2023 were a
Income Taxes
The effective tax rate on the loss from continuing operations for the quarter and year ended December 31, 2024 was a benefit of 16 percent and 18 percent, respectively. The 2024 effective tax rate differed from the federal statutory rate of 21 percent primarily due to changes in the valuation allowance on disallowed interest deductions, the release of certain tax reserves, different statutory tax rates in foreign jurisdictions,
The effective tax rate on the loss from continuing operations for the quarter and year ended December 31, 2023 was a benefit of 26 percent and 24 percent, respectively. The 2023 effective tax rates differed from the federal statutory rate of 21 percent primarily due to different statutory tax rates in foreign jurisdictions,
Discontinued Operations
During the year ended December 31, 2024, the Company recorded pre-tax income from discontinued operations of
During the year ended December 31, 2023, the USDOC completed its administrative review of duties applied to Canadian softwood lumber exports to the
Cash Flows & Liquidity
The Company generated operating cash flows of
The Company used
The Company had
As previously reported, in October 2024, the Company raised
In November 2024, the Company secured green capital of
The Company ended the year with
As of December 31, 2024, the Company’s consolidated net secured leverage ratio was 2.7 times covenant EBITDA.
Business Outlook
In October 2023, the Company announced that it is exploring the potential sale of its Paperboard and High-Yield Pulp assets at its Temiscaming site. The Company remains committed to pursuing a sale of these assets at a fair price.
In July 2024, the Company indefinitely suspended operations at its Temiscaming HPC plant. The indefinite suspension of the Temiscaming HPC plant was
Following the indefinite suspension of Temiscaming HPC operations, the Temiscaming site continues to incur custodial site costs in support of the ongoing energy needs of the Paperboard and High-Yield Pulp operations. These costs are mitigated by any sales of electricity generated during the process. The Company expects to incur net custodial site costs totaling
In October 2024, an isolated fire occurred at the Company’s
Beginning in January 2025, the Company reorganized its High Purity Cellulose operating segment as a result of changes in its internal operating model, the BioNova developments and a successful enterprise reporting system launch that significantly enhances the Company’s financial reporting capabilities. Specifically, the Company determined, in light of these new developments and capabilities, that the performance and outlook of the High Purity Cellulose business will be better managed as three separate businesses: Cellulose Specialties, Cellulose Commodities and a new Biomaterials business. No changes were made to the composition of the Paperboard and High-Yield Pulp operating segments.
The Company expects to generate
The following market assessment represents the Company’s current outlook for its operating segments’ future performance.
Cellulose Specialties
Average sales prices for cellulose specialties in 2025 are expected to increase a mid single-digit percentage as compared to 2024. Sales volumes for cellulose specialties are expected to decline a low single-digit percentage compared to 2024 as certain sales volumes accelerated in 2024 due to the indefinite suspension of operations in Temiscaming will not repeat in 2025. Demand for RYAM cellulose specialties is expected to be mixed. Acetate is expected to experience moderate destocking, specifically in
Overall, EBITDA is expected to approximate
Cellulose Commodities
Average sales prices for cellulose commodities in 2025 are expected to increase by a mid single-digit percentage as compared to 2024. Demand for RYAM fluff remains resilient. Other cellulose commodities sales volumes are expected to decline in 2025, as the Company mitigated its exposure to the commodity viscose markets with the indefinite suspension of operations at Temiscaming in 2024. Raw material input and logistics costs are expected to be moderately higher in 2025.
Overall, EBITDA is expected to approximate
Biomaterials
The Company is investing in new green energy and renewable products to provide both increased end-market diversity and incremental profitability. The Company intends to proceed only with those projects that are expected to meet its investment hurdles: a minimum 30 percent return on equity and less than a two-year payback period for RYAM equity. In the fourth quarter, the Company secured green capital of
-
The Company’s bioethanol facility in
France is currently operational. The Company expects to generate$6 million -
The Company re-started its lignosulfonate powder plant in
France , which is expected to generate$4 million -
The Company continues to pursue an investment in a bioethanol facility in
Fernandina Beach, Florida , similar to its bioethanol facility inFrance . While theCity of Fernandina Beach recently denied the site plan application for this project, the Company believes the City erred in making its determination and intends to pursue all available legal and administrative remedies. In expectation of a favorable outcome, the Company continues to advance engineering plans and explore potential commercial agreements, with a final investment decision still expected in 2025. -
The Company is evaluating investments in crude tall oil facilities in
Jesup, Georgia and Tartas and a prebiotics facility at ourJesup plant, and is currently working on permitting, engineering and commercial agreements on these new facilities ahead of making final investment decisions later this year. -
The Company is actively involved in AGE (Altamaha Green Energy, LLC), a start-up entity that aims to utilize renewable forestry waste and other biomass generally discarded as waste to generate green electricity for the state of
Georgia from a new facility to be constructed adjacent to the Company’sJesup plant. Although the project remains in the development phase, AGE is actively evaluating the construction and financing requirements for the new facility, with a final investment decision expected in the third quarter of 2025.
Overall, EBITDA is expected to approximate
Paperboard
Paperboard prices in 2025 are expected to decline as compared to the fourth quarter of 2024, while sales volumes are expected to improve as production is ramped up after taking scheduled maintenance downtime in the fourth quarter. Raw material prices are expected to rise as purchased pulp prices are forecast to increase from fourth quarter 2024 levels. Operating costs are expected to increase as net custodial site costs are incurred to support ongoing operations at the Temiscaming site. Overall, EBITDA is expected to approximate
High-Yield Pulp
High-Yield Pulp prices are expected to decrease slightly in the first quarter of 2025 while sales volumes are expected to increase as production improves after taking downtime in the fourth quarter of 2024. Operating costs are expected to increase as net custodial site costs are incurred to support ongoing operations at the Temiscaming site. Overall, EBITDA is expected to approximate a loss of
Corporate
Corporate costs are expected to decrease slightly in 2025 due to the completion of the Company’s ERP implementation, though currency fluctuations could offset any potential savings. Overall, Corporate costs are expected to approximate
Conference Call Information
RYAM will host a conference call and live webcast at 9:00 a.m. ET on Thursday, March 6, 2025, to discuss these results. Supplemental materials and access to the live audio webcast will be available at www.RYAM.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 March 20, 2025. The replay dial-in number within the
About RYAM
RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. RYAM’s specialized assets, capable of creating the world’s leading high purity cellulose products, are also used to produce biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The Company also manufactures products for the paper and packaging markets. With manufacturing operations in the
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 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,” “target,” “believe,” “intend,” “plan,” “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. 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 that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to various 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 change after the date of this release. The Company has not filed its Form 10-K for the year ended December 31, 2024. 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 identified prior to the Company filing its Form 10-K.
The Company’s operations are subject to a number of risks and uncertainties, including, but not limited to, those listed below. When considering an investment in the Company’s securities, you should carefully read and consider these risks, together with all other information in the Company’s Annual Report on Form 10-K and other filings and submissions to the SEC, which provide more information and detail on the risks described below. If any of the events described in the following risk factors occur, the Company’s business, financial condition, operating results and cash flows, as well as the market price of the Company’s securities, could be materially adversely affected. These risks and events include, without limitation: Macroeconomic and Industry Risks The Company’s business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by geopolitical conflicts and related impacts. The businesses the Company operates are highly competitive and many of them are cyclical, which may result in fluctuations in pricing and volume that can materially adversely affect the Company’s business, financial condition, results of operations and cash flows. Changes in the availability and price of raw materials and energy and continued inflationary pressure could have a material adverse effect on the Company’s business, financial condition and results of operations. The Company is subject to material risks associated with doing business outside of
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 the Company’s filings with the
Non-GAAP Financial Measures
This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flow, adjusted net income, adjusted net debt and net secured debt. The Company believes these non-GAAP financial measures provide useful information to its Board of Directors, management and investors regarding its financial condition and results of operations. Management uses these non-GAAP financial measures to compare its performance to that of prior periods for trend analyses, to determine management incentive compensation and for budgeting, forecasting and planning purposes.
The Company does not consider these non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in the consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures are provided below. Non-GAAP financial measures are not necessarily indicative of results that may be generated in future periods and 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 Operations (Unaudited) (in millions, except share and per share information) |
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
December 31,
|
|
September 28,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
Net sales |
$ |
422 |
|
|
$ |
401 |
|
|
$ |
422 |
|
|
$ |
1,630 |
|
|
$ |
1,643 |
|
Cost of sales |
|
(385 |
) |
|
|
(357 |
) |
|
|
(395 |
) |
|
|
(1,464 |
) |
|
|
(1,555 |
) |
Gross margin |
|
37 |
|
|
|
44 |
|
|
|
27 |
|
|
|
166 |
|
|
|
88 |
|
Selling, general and administrative expense |
|
(26 |
) |
|
|
(24 |
) |
|
|
(17 |
) |
|
|
(92 |
) |
|
|
(76 |
) |
Foreign exchange gain (loss) |
|
6 |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
7 |
|
|
|
(3 |
) |
Asset impairment |
|
— |
|
|
|
(25 |
) |
|
|
(62 |
) |
|
|
(25 |
) |
|
|
(62 |
) |
Indefinite suspension charges |
|
(3 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
(17 |
) |
|
|
— |
|
Other operating income (expense), net |
|
(3 |
) |
|
|
(3 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
(12 |
) |
Operating income (loss) |
|
11 |
|
|
|
(17 |
) |
|
|
(61 |
) |
|
|
39 |
|
|
|
(65 |
) |
Interest expense |
|
(24 |
) |
|
|
(20 |
) |
|
|
(22 |
) |
|
|
(86 |
) |
|
|
(74 |
) |
Debt refinancing charges |
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
Other income, net |
|
4 |
|
|
|
1 |
|
|
|
1 |
|
|
|
8 |
|
|
|
7 |
|
Loss from continuing operations before income tax |
|
(19 |
) |
|
|
(36 |
) |
|
|
(82 |
) |
|
|
(49 |
) |
|
|
(132 |
) |
Income tax benefit |
|
3 |
|
|
|
4 |
|
|
|
21 |
|
|
|
9 |
|
|
|
32 |
|
Equity in loss of equity method investment |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
Loss from continuing operations |
|
(16 |
) |
|
|
(33 |
) |
|
|
(61 |
) |
|
|
(42 |
) |
|
|
(102 |
) |
Income from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Net loss |
|
(16 |
) |
|
|
(33 |
) |
|
|
(61 |
) |
|
|
(39 |
) |
|
|
(102 |
) |
Net income attributable to redeemable noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss attributable to RYAM |
$ |
(16 |
) |
|
$ |
(33 |
) |
|
$ |
(61 |
) |
|
$ |
(39 |
) |
|
$ |
(102 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
||||||||||
Loss from continuing operations |
$ |
(0.25 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.57 |
) |
Income from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Net loss |
$ |
(0.25 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.59 |
) |
|
$ |
(1.57 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares used in determining Basic and Diluted EPS |
|
65,929,272 |
|
|
|
65,892,750 |
|
|
|
65,356,895 |
|
|
|
65,748,775 |
|
|
|
65,108,397 |
|
Rayonier Advanced Materials Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions) |
|||||
|
December 31,
|
|
December 31,
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
125 |
|
$ |
76 |
Other current assets |
|
476 |
|
|
499 |
Property, plant and equipment, net |
|
1,019 |
|
|
1,075 |
Other assets |
|
510 |
|
|
533 |
Total assets |
$ |
2,130 |
|
$ |
2,183 |
|
|
|
|
||
Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Equity |
|
|
|
||
Debt due within one year |
$ |
24 |
|
$ |
25 |
Other current liabilities |
|
376 |
|
|
351 |
Long-term debt |
|
706 |
|
|
752 |
Non-current environmental liabilities |
|
160 |
|
|
160 |
Other liabilities |
|
139 |
|
|
148 |
Redeemable noncontrolling interest |
|
11 |
|
|
— |
Total stockholders’ equity |
|
714 |
|
|
747 |
Total liabilities, redeemable noncontrolling interest and stockholders’ equity |
$ |
2,130 |
|
$ |
2,183 |
Rayonier Advanced Materials Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) |
|||||||
|
Year Ended |
||||||
|
December 31,
|
|
December 31,
|
||||
Operating Activities |
|
|
|
||||
Net loss |
$ |
(39 |
) |
|
$ |
(102 |
) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
||||
Income from discontinued operations |
|
(3 |
) |
|
|
— |
|
Depreciation and amortization |
|
137 |
|
|
|
140 |
|
Asset impairment |
|
25 |
|
|
|
62 |
|
Changes in working capital and other assets and liabilities |
|
82 |
|
|
|
58 |
|
Other |
|
1 |
|
|
|
(22 |
) |
Cash provided by operating activities |
|
203 |
|
|
|
136 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures, net of proceeds |
|
(108 |
) |
|
|
(128 |
) |
Cash used in investing activities-continuing operations |
|
(108 |
) |
|
|
(128 |
) |
Cash provided by investing activities-discontinued operations |
|
— |
|
|
|
1 |
|
Cash used in investing activities |
|
(108 |
) |
|
|
(127 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Changes in debt principal balance |
|
(32 |
) |
|
|
(71 |
) |
Debt issuance costs |
|
(24 |
) |
|
|
(10 |
) |
Contribution from redeemable noncontrolling interest |
|
16 |
|
|
|
— |
|
Other |
|
(2 |
) |
|
|
(6 |
) |
Cash used in financing activities |
|
(42 |
) |
|
|
(87 |
) |
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
53 |
|
|
|
(78 |
) |
Net effect of foreign exchange on cash and cash equivalents |
|
(4 |
) |
|
|
2 |
|
Balance, beginning of period |
|
76 |
|
|
|
152 |
|
Balance, end of period |
$ |
125 |
|
|
$ |
76 |
|
Rayonier Advanced Materials Inc. Sales Volumes and Average Prices (Unaudited) |
||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
December 31,|
|
|
September 28,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|||||
Average Sales Prices ($ per metric ton) |
||||||||||||||
High Purity Cellulose |
$ |
1,317 |
|
$ |
1,369 |
|
$ |
1,248 |
|
$ |
1,335 |
|
$ |
1,273 |
Paperboard |
$ |
1,394 |
|
$ |
1,400 |
|
$ |
1,441 |
|
$ |
1,390 |
|
$ |
1,491 |
High-Yield Pulp (external sales) |
$ |
523 |
|
$ |
559 |
|
$ |
504 |
|
$ |
553 |
|
$ |
606 |
|
|
|
|
|
|
|
|
|
|
|||||
Sales Volumes (‘000s of metric tons) |
||||||||||||||
High Purity Cellulose |
|
244 |
|
|
218 |
|
|
259 |
|
|
909 |
|
|
955 |
Paperboard |
|
43 |
|
|
39 |
|
|
38 |
|
|
164 |
|
|
147 |
High-Yield Pulp (external sales) |
|
49 |
|
|
38 |
|
|
40 |
|
|
182 |
|
|
182 |
Rayonier Advanced Materials Inc. Reconciliation of Non-GAAP Measures (Unaudited) (in millions)
EBITDA and Adjusted EBITDA by Segment(a) |
||||||||||||||||||
|
Three Months Ended December 31, 2024 |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
31 |
|
|
$ |
5 |
|
$ |
(8 |
) |
|
$ |
(44 |
) |
|
$ |
(16 |
) |
Income from continuing operations attributable to redeemable noncontrolling interest |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income (loss) from continuing operations attributable to RYAM |
|
31 |
|
|
|
5 |
|
|
(8 |
) |
|
|
(44 |
) |
|
|
(16 |
) |
Depreciation and amortization |
|
28 |
|
|
|
5 |
|
|
— |
|
|
|
1 |
|
|
|
34 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
23 |
|
|
|
23 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(3 |
) |
|
|
(3 |
) |
EBITDA-continuing operations attributable to RYAM |
|
59 |
|
|
|
10 |
|
|
(8 |
) |
|
|
(23 |
) |
|
|
38 |
|
Indefinite suspension charges |
|
3 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Debt refinancing charges |
|
— |
|
|
|
— |
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
Adjusted EBITDA-continuing operations attributable to RYAM |
$ |
62 |
|
|
$ |
10 |
|
$ |
(8 |
) |
|
$ |
(13 |
) |
|
$ |
51 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended September 28, 2024 |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
(5 |
) |
|
$ |
7 |
|
$ |
1 |
|
|
$ |
(36 |
) |
|
$ |
(33 |
) |
Depreciation and amortization |
|
32 |
|
|
|
4 |
|
|
— |
|
|
|
— |
|
|
|
36 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
20 |
|
|
|
20 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
EBITDA-continuing operations |
|
27 |
|
|
|
11 |
|
|
1 |
|
|
|
(20 |
) |
|
|
19 |
|
Asset impairment |
|
25 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
25 |
|
Indefinite suspension charges |
|
7 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Adjusted EBITDA-continuing operations |
$ |
59 |
|
|
$ |
11 |
|
$ |
1 |
|
|
$ |
(20 |
) |
|
$ |
51 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended December 31, 2023 |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
(49 |
) |
|
$ |
9 |
|
$ |
(5 |
) |
|
$ |
(16 |
) |
|
$ |
(61 |
) |
Depreciation and amortization |
|
32 |
|
|
|
3 |
|
|
— |
|
|
|
1 |
|
|
|
36 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
21 |
|
|
|
21 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(21 |
) |
|
|
(21 |
) |
EBITDA-continuing operations |
|
(17 |
) |
|
|
12 |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(25 |
) |
Asset impairment |
|
62 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
62 |
|
Adjusted EBITDA-continuing operations |
$ |
45 |
|
|
$ |
12 |
|
$ |
(5 |
) |
|
$ |
(15 |
) |
|
$ |
37 |
|
|
Year Ended December 31, 2024 |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
77 |
|
|
$ |
33 |
|
$ |
(7 |
) |
|
$ |
(145 |
) |
|
$ |
(42 |
) |
Income from continuing operations attributable to redeemable noncontrolling interest |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income (loss) from continuing operations attributable to RYAM |
|
77 |
|
|
|
33 |
|
|
(7 |
) |
|
|
(145 |
) |
|
|
(42 |
) |
Depreciation and amortization |
|
118 |
|
|
|
15 |
|
|
2 |
|
|
|
2 |
|
|
|
137 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
84 |
|
|
|
84 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(9 |
) |
|
|
(9 |
) |
EBITDA-continuing operations attributable to RYAM |
|
195 |
|
|
|
48 |
|
|
(5 |
) |
|
|
(68 |
) |
|
|
170 |
|
Asset impairment |
|
25 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
25 |
|
Indefinite suspension charges |
|
17 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Debt refinancing charges |
|
— |
|
|
|
— |
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
Adjusted EBITDA-continuing operations attributable to RYAM |
$ |
237 |
|
|
$ |
48 |
|
$ |
(5 |
) |
|
$ |
(58 |
) |
|
$ |
222 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended December 31, 2023 |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
(41 |
) |
|
$ |
39 |
|
$ |
(3 |
) |
|
$ |
(97 |
) |
|
$ |
(102 |
) |
Depreciation and amortization |
|
123 |
|
|
|
13 |
|
|
2 |
|
|
|
2 |
|
|
|
140 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
69 |
|
|
|
69 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(32 |
) |
|
|
(32 |
) |
EBITDA-continuing operations |
|
82 |
|
|
|
52 |
|
|
(1 |
) |
|
|
(58 |
) |
|
|
75 |
|
Asset impairment |
|
62 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
62 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
Adjusted EBITDA-continuing operations |
$ |
144 |
|
|
$ |
52 |
|
$ |
(1 |
) |
|
$ |
(56 |
) |
|
$ |
139 |
|
|
Annual Guidance |
||||||
|
2025 |
||||||
|
Low |
|
High |
||||
Loss from continuing operations attributable to RYAM |
$ |
(13 |
) |
|
$ |
7 |
|
Depreciation and amortization |
|
140 |
|
|
|
140 |
|
Interest expense, net |
|
90 |
|
|
|
90 |
|
Income tax benefit(b) |
|
(2 |
) |
|
|
(2 |
) |
EBITDA & Adjusted EBITDA-continuing operations attributable to RYAM |
$ |
215 |
|
|
$ |
235 |
|
| _____________________________ | ||
| (a) | EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for items that management believes are not representative of core operations. EBITDA and Adjusted EBITDA are non-GAAP measures used by management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. |
|
| (b) | Estimated using the statutory rates of each jurisdiction and ignoring all permanent book-to-tax differences. |
|
Adjusted Free Cash Flow(a) |
|||||||
|
Year Ended |
||||||
|
December 31,
|
|
December 31,
|
||||
Cash provided by operating activities |
$ |
203 |
|
|
$ |
136 |
|
Capital expenditures, net |
|
(75 |
) |
|
|
(83 |
) |
Adjusted free cash flow |
$ |
128 |
|
|
$ |
53 |
|
|
Annual Guidance |
||||||
|
2025 |
||||||
|
Low |
|
High |
||||
Cash provided by operating activities |
$ |
110 |
|
|
$ |
130 |
|
Capital expenditures, net |
|
(85 |
) |
|
|
(85 |
) |
Adjusted free cash flow |
$ |
25 |
|
|
$ |
45 |
|
| _____________________________ | ||
| (a) | Adjusted free cash flow is defined as cash provided by (used in) operating activities adjusted for capital expenditures, net of proceeds from the sale of assets and excluding strategic capital expenditures. Adjusted free cash flow is a non-GAAP measure of cash generated during a period that is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of the Company’s common stock. |
|
Adjusted Net Debt and Net Secured Debt(a) |
|||||||
|
December 31,
|
|
December 31,
|
||||
Debt due within one year |
$ |
24 |
|
|
$ |
25 |
|
Long-term debt |
|
706 |
|
|
|
752 |
|
Total debt |
|
730 |
|
|
|
777 |
|
Unamortized premium, discount and issuance costs |
|
48 |
|
|
|
20 |
|
Cash and cash equivalents |
|
(125 |
) |
|
|
(76 |
) |
Adjusted net debt |
|
653 |
|
|
|
721 |
|
Unsecured debt |
|
(28 |
) |
|
|
(23 |
) |
Net secured debt |
$ |
625 |
|
|
$ |
698 |
|
| _____________________________ | ||
| (a) | Adjusted net debt is defined as the amount of debt after the consideration of debt premium, discount and issuance costs, less cash. Net secured debt is defined as adjusted net debt less unsecured debt. |
|
Adjusted Income (Loss) from Continuing Operations(a) |
|||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||||||||||||
|
December 31, 2024 |
|
September 28, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
||||||||||||||||||||||||||||||
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
||||||||||||||||||||
Income (loss) from continuing operations |
$ |
(16 |
) |
|
$ |
(0.25 |
) |
|
$ |
(33 |
) |
|
$ |
(0.49 |
) |
|
$ |
(61 |
) |
|
$ |
(0.94 |
) |
|
$ |
(42 |
) |
|
$ |
(0.64 |
) |
|
$ |
(102 |
) |
|
$ |
(1.57 |
) |
Asset impairment |
|
— |
|
|
|
— |
|
|
|
25 |
|
|
|
0.38 |
|
|
|
62 |
|
|
|
0.95 |
|
|
|
25 |
|
|
|
0.38 |
|
|
|
62 |
|
|
|
0.96 |
|
Indefinite suspension charges |
|
3 |
|
|
|
0.03 |
|
|
|
7 |
|
|
|
0.12 |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
|
|
0.25 |
|
|
|
— |
|
|
|
— |
|
Debt refinancing charges |
|
10 |
|
|
|
0.16 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
0.16 |
|
|
|
— |
|
|
|
— |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.04 |
|
Tax effect of adjustments |
|
(3 |
) |
|
|
(0.04 |
) |
|
|
(8 |
) |
|
|
(0.13 |
) |
|
|
(15 |
) |
|
|
(0.23 |
) |
|
|
(13 |
) |
|
|
(0.20 |
) |
|
|
(15 |
) |
|
|
(0.24 |
) |
Adjusted income (loss) from continuing operations |
$ |
(6 |
) |
|
$ |
(0.10 |
) |
|
$ |
(9 |
) |
|
$ |
(0.12 |
) |
|
$ |
(14 |
) |
|
$ |
(0.22 |
) |
|
$ |
(3 |
) |
|
$ |
(0.05 |
) |
|
$ |
(53 |
) |
|
$ |
(0.81 |
) |
| _____________________________ | ||
| (a) | Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations adjusted net of tax for items that management believes are not representative of core operations. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305098838/en/
Media: Ryan Houck, 904-357-9134
Investors: Mickey Walsh, 904-357-9162
Source: Rayonier Advanced Materials Inc.
FAQ
What is RYAM's projected Adjusted EBITDA guidance for 2025?
How much did RYAM reduce its net debt in 2024?
What was RYAM's Adjusted Free Cash Flow in 2024?
How much capital commitment did RYAM secure for biomaterials investments?
What price increase did RYAM negotiate for cellulose specialties in 2025?
