RYAM Announces Preliminary Fourth Quarter and Full Year Results
Rayonier Advanced Materials (RYAM) announced its preliminary, unaudited fourth quarter and full year results for 2022. For Q4, estimated revenue is between $488 million and $508 million, while the income from continuing operations ranges from $(1) million to $3 million. The adjusted EBITDA is expected to be $52 million to $56 million. For the full year, RYAM anticipates revenues of $1.705 billion to $1.725 billion, with a loss from continuing operations of $(28) million to $(32) million. Total debt is reported at $853 million, with adjusted net debt standing at $707 million.
- Higher contracted prices for cellulose specialties products in 2023 compared to 2022.
- RYAM's consistent performance aligns with run-rate expectations while reducing debt.
- Loss from continuing operations of $(28) million to $(32) million for the full year 2022.
- Preliminary estimates indicate a potential revenue decline in Q4 compared to previous quarters.
For the quarter ended on
-
Revenue of
to$488 million ;$508 million -
Income (loss) from continuing operations in the range of
to$(1) million ; and$3 million -
Adjusted EBITDA of
to$52 million , inclusive of the previously disclosed force majeure event.$56 million
For the year ended on
-
Revenue of
to$1,705 million ;$1,725 million -
Loss from continuing operations in the range of
to$28 million ;$32 million -
Adjusted EBITDA of
to$174 million , inclusive of the previously disclosed force majeure event;$178 million -
Short-term and current portion of long-term debt of
plus long-term debt of$14 million ; and$839 million -
Adjusted net debt of
.$707 million
“RYAM continues to demonstrate an ability to consistently deliver positive results in line with our previously disclosed run-rate expectations, while reducing the total debt balance,” stated De
The above figures are preliminary, unaudited and are subject to change as RYAM completes its end-of-period reporting process and related activities for the fourth quarter and full year ended
About RYAM
RYAM 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 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 RYAM’s 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 financial results presented in this press release are preliminary, estimated and unaudited, and reflect management’s estimates based solely upon information available to management as of the date of this press release and are subject to change. The Company has not completed preparation of its financial statements for the fourth quarter or full year ended
These forward-looking statements are also affected by the risk factors and forward-looking statements described in the Company’s Annual Report on Form 10-K for the year ended
Non-GAAP Financial Measures
This news release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA and adjusted net debt. These non-GAAP measures are each reconciled to their respective most directly comparable GAAP financial measures on page 3 of this news release. The Company and its management believe these non-GAAP measures provide useful information to its Board of Directors, management and investors regarding certain trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare its performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes.
The Company does 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 the 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, reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures are provided. 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.
|
|||||||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(in millions) |
|||||||||||||||
EBITDA and Adjusted EBITDA(a) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended
|
||||||||||||
|
Low |
|
High |
|
Low |
|
High |
||||||||
Income (loss) from continuing operations |
$ |
(1 |
) |
|
$ |
3 |
|
|
$ |
(32 |
) |
|
$ |
(28 |
) |
Depreciation and amortization |
|
38 |
|
|
|
38 |
|
|
|
135 |
|
|
|
135 |
|
Interest expense, net |
|
17 |
|
|
|
17 |
|
|
|
65 |
|
|
|
65 |
|
Income tax expense (benefit) |
|
(2 |
) |
|
|
(2 |
) |
|
|
1 |
|
|
|
1 |
|
EBITDA-continuing operations |
|
52 |
|
|
|
56 |
|
|
|
169 |
|
|
|
173 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Adjusted EBITDA-continuing operations |
$ |
52 |
|
|
$ |
56 |
|
|
$ |
174 |
|
|
$ |
178 |
|
—————————————— |
|||||||||||||||
(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 management, RYAM’s board, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adjusted EBITDA-continuing operations is defined as EBITDA-continuing operations adjusted for a settlement of certain pension plans and severance costs associated with an executive departure. |
Adjusted Net Debt(a) |
||||
|
|
|
||
Debt due within one year |
|
$ |
14 |
|
Long-term debt |
|
|
839 |
|
Total debt |
|
|
853 |
|
Debt premium, original issue discount and issuance costs, net |
|
|
6 |
|
Cash and cash equivalents |
|
|
(152 |
) |
Adjusted net debt |
|
$ |
707 |
|
—————————————— |
||||
(a) Adjusted net debt is defined as the amount of debt after the consideration of debt premium, original issue discount and 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. |
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