RYAM Announces Second Quarter 2023 Results
Updates 2023 EBITDA and Raises Free Cash Flow Guidance
-
Loss from continuing operations for the second quarter of
, an improvement of$16 million , or 36 percent, over prior year quarter$9 million
-
Adjusted EBITDA from continuing operations for the second quarter of
, down$27 million , or 21 percent, from prior year quarter$7 million
-
Year-to-date cash provided by operating activities of
; total debt of$84 million $834 million
-
Adjusted Free Cash Flow generation of
; Net Debt reduced to$52 million $682 million
-
Updates 2023 Adjusted EBITDA guidance to
to$185 million $200 million
-
Raises 2023 Adjusted Free Cash Flow guidance to
to$55 million $70 million
“Results for the second quarter reflected shifting market conditions across several key end markets. Despite facing volume pressure due to destocking in certain areas of our Cellulose Specialties and Paperboard businesses, we successfully increased prices by 13 percent and 4 percent, respectively, from the previous year, demonstrating our commitment to prioritizing value over volume. Moreover, we are experiencing downward pressure on commodity prices across all our segments, which intensified during the quarter. We are reacting by taking downtime at our High-Yield Pulp plant to reduce costs, minimize losses and monetize inventories. We are also reviewing strategic options with respect to our non-fluff High Purity Cellulose commodity businesses, specifically including viscose and paper pulp products,” said De Lyle W. Bloomquist, RYAM’s President and Chief Executive Officer. “Consequently, we are revising down our 2023 Adjusted EBITDA guidance, but raising our free cash flow guidance as we reduce capital expenditures and monetize additional working capital. The lower EBITDA guidance is driven primarily by a softer outlook for commodity pricing and lower sales volumes in Cellulose Specialties and Paperboard. Overall, reductions in commodity prices are impacting our 2023 EBITDA guidance by approximately
“Subsequent to the quarter's end, we successfully raised a new
Second Quarter 2023 Operating Results from Continuing Operations
The Company operates in the following business segments: High Purity Cellulose, Paperboard and High-Yield Pulp.
Net sales was comprised of the following for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
(in millions) |
July 1, 2023 |
|
April 1, 2023 |
|
June 25, 2022 |
|
July 1, 2023 |
|
June 25, 2022 |
||||||||||
High Purity Cellulose |
$ |
300 |
|
|
$ |
374 |
|
|
$ |
302 |
|
|
$ |
674 |
|
|
$ |
583 |
|
Paperboard |
|
48 |
|
|
|
59 |
|
|
|
63 |
|
|
|
107 |
|
|
|
117 |
|
High-Yield Pulp |
|
44 |
|
|
|
42 |
|
|
|
40 |
|
|
|
86 |
|
|
|
62 |
|
Eliminations |
|
(7 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(15 |
) |
|
|
(11 |
) |
Net sales |
$ |
385 |
|
|
$ |
467 |
|
|
$ |
399 |
|
|
$ |
852 |
|
|
$ |
751 |
|
Operating results were comprised of the following for the periods presented:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
(in millions) |
July 1, 2023 |
|
April 1, 2023 |
|
June 25, 2022 |
|
July 1, 2023 |
|
June 25, 2022 |
||||||||||
High Purity Cellulose |
$ |
— |
|
|
$ |
13 |
|
|
$ |
7 |
|
|
$ |
13 |
|
|
$ |
(1 |
) |
Paperboard |
|
6 |
|
|
|
10 |
|
|
|
10 |
|
|
|
16 |
|
|
|
16 |
|
High-Yield Pulp |
|
1 |
|
|
|
7 |
|
|
|
(2 |
) |
|
|
8 |
|
|
|
(2 |
) |
Corporate |
|
(14 |
) |
|
|
(13 |
) |
|
|
(18 |
) |
|
|
(27 |
) |
|
|
(32 |
) |
Operating income (loss) |
$ |
(7 |
) |
|
$ |
17 |
|
|
$ |
(3 |
) |
|
$ |
10 |
|
|
$ |
(19 |
) |
High Purity Cellulose
Net sales for the second quarter decreased
Net sales for the six months ended July 1, 2023 increased
Operating income for the three and six months ended July 1, 2023 decreased
Compared to the first quarter of 2023, operating income decreased
Paperboard
Net sales for the second quarter decreased
Operating income for the three and six months ended July 1, 2023 decreased
Compared to the first quarter of 2023, operating income decreased
High-Yield Pulp
Net sales for the second quarter increased
Operating results for the three and six months ended July 1, 2023 improved
Compared to the first quarter of 2023, operating income decreased
Corporate
Operating loss for the three and six months ended July 1, 2023 decreased
Non-Operating Income & Expense
Included in other income, net in the three and six months ended July 1, 2023 was a gain on a passive land sale and a net gain on debt extinguishment, which were partially offset by unfavorable foreign exchange rates. Also included in the six-month period was a pension settlement loss of
The three and six months ended June 25, 2022 included a
Income Taxes
The effective tax rate on the loss from continuing operations for the three and six months ended July 1, 2023 was a benefit of 18 percent and 32 percent, respectively. The 2023 effective tax rates differed from the federal statutory rate of 21 percent primarily due to disallowed interest deductions in the
The effective tax rate on the loss from continuing operations for the three and six months ended June 25, 2022 was an expense of 18 percent and 12 percent, respectively. The 2022 effective tax rates differed from the federal statutory rate of 21 percent primarily due to disallowed interest deductions in the
Cash Flows & Liquidity
For the six months ended July 1, 2023, the Company generated operating cash flows of
For the six months ended July 1, 2023, the Company used
For the six months ended July 1, 2023, the Company used
The Company ended the quarter with
On July 20, 2023, the Company secured term loan financing of
Market Assessment
This market assessment represents the Company’s best current estimate of its business segments’ future performance.
High Purity Cellulose
Average sales prices for cellulose specialties in 2023 are expected to be in the high single-digit percent higher than average 2022 sales prices, while sales volumes are expected to decrease from prior year due to softness in sales orders driven principally by significant customer destocking. Market demand for commodity products remains resilient but at lower prices than the first half of the year, in line with industry forecasts. Commodity sales volumes are expected to continue to increase through the end of 2023. The prices for certain inputs have come off the 2022 highs but are expected to remain significantly elevated versus pre-COVID pandemic levels.
Paperboard
Paperboard prices are expected to moderate over the balance of the year but remain elevated from 2022 levels, while sales volumes are expected to improve in the second half of the year. Raw material prices are expected to reduce further as pulp markets decline.
High-Yield Pulp
High-yield pulp prices have declined due to soft demand and new paper pulp capacity ramping up. Prices are expected to decline overall in 2023 despite an expected uptick in the fourth quarter, in line with industry forecasts for the global paper pulp market. Sales volumes are expected to decline in the coming quarter as the Company takes downtime in the third quarter due to market conditions.
2023 Guidance
Overall, loss from continuing operations is expected to be approximately
A Sustainable Future
The Company continues to focus on growing its bio-based product offering and expects to grow its biomaterials sales and increase overall margins over time. The Company’s bioethanol facility at its Tartas,
Conference Call Information
RYAM will host a conference call and live webcast at 9:00 a.m. ET on Wednesday, August 9, 2023 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 Wednesday, August 23, 2023. 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. 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 Company has not filed its Form 10-Q for the quarter ended July 1, 2023. 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.
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 actually occur, the Company’s business, financial condition or operating results, 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 the ongoing conflict between
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 flows, adjusted income from continuing operations and adjusted net 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 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 |
|
Six Months Ended |
||||||||||||||||
|
July 1, 2023 |
|
April 1, 2023 |
|
June 25, 2022 |
|
July 1, 2023 |
|
June 25, 2022 |
||||||||||
Net sales |
$ |
385 |
|
|
$ |
467 |
|
|
$ |
399 |
|
|
$ |
852 |
|
|
$ |
751 |
|
Cost of sales |
|
(370 |
) |
|
|
(430 |
) |
|
|
(372 |
) |
|
|
(800 |
) |
|
|
(718 |
) |
Gross margin |
|
15 |
|
|
|
37 |
|
|
|
27 |
|
|
|
52 |
|
|
|
33 |
|
Selling, general and administrative expense |
|
(18 |
) |
|
|
(19 |
) |
|
|
(28 |
) |
|
|
(37 |
) |
|
|
(48 |
) |
Foreign exchange gain (loss) |
|
(2 |
) |
|
|
— |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
1 |
|
Other operating expense, net |
|
(2 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
Operating income (loss) |
|
(7 |
) |
|
|
17 |
|
|
|
(3 |
) |
|
|
10 |
|
|
|
(19 |
) |
Interest expense |
|
(16 |
) |
|
|
(15 |
) |
|
|
(16 |
) |
|
|
(31 |
) |
|
|
(33 |
) |
Gain (loss) on GreenFirst equity securities |
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
5 |
|
Other income (expense), net |
|
4 |
|
|
|
(2 |
) |
|
|
3 |
|
|
|
2 |
|
|
|
4 |
|
Loss from continuing operations before income taxes |
|
(19 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
(19 |
) |
|
|
(43 |
) |
Income tax (expense) benefit |
|
3 |
|
|
|
3 |
|
|
|
(4 |
) |
|
|
6 |
|
|
|
(5 |
) |
Equity in loss of equity method investment |
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Income (loss) from continuing operations |
|
(16 |
) |
|
|
2 |
|
|
|
(25 |
) |
|
|
(14 |
) |
|
|
(49 |
) |
Income (loss) from discontinued operations, net of taxes |
|
(1 |
) |
|
|
— |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
1 |
|
Net income (loss) |
$ |
(17 |
) |
|
$ |
2 |
|
|
$ |
(23 |
) |
|
$ |
(15 |
) |
|
$ |
(48 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations |
$ |
(0.24 |
) |
|
$ |
0.02 |
|
|
$ |
(0.39 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.77 |
) |
Income (loss) from discontinued operations |
|
(0.02 |
) |
|
|
— |
|
|
|
0.03 |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
Net income (loss) per common share |
$ |
(0.26 |
) |
|
$ |
0.02 |
|
|
$ |
(0.36 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in determining EPS |
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS |
|
65,226,344 |
|
|
|
64,504,200 |
|
|
|
63,898,761 |
|
|
|
64,865,272 |
|
|
|
63,837,292 |
|
Diluted EPS |
|
65,226,344 |
|
|
|
66,596,653 |
|
|
|
63,898,761 |
|
|
|
64,865,272 |
|
|
|
63,837,292 |
|
Rayonier Advanced Materials Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions)
|
|||||||
|
July 1, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
157 |
|
$ |
152 |
||
Other current assets |
|
483 |
|
|
|
538 |
|
Property, plant and equipment, net |
|
1,152 |
|
|
|
1,151 |
|
Other assets |
|
514 |
|
|
|
507 |
|
Total assets |
$ |
2,306 |
|
|
$ |
2,348 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Debt due within one year |
$ |
81 |
|
|
$ |
14 |
|
Other current liabilities |
|
329 |
|
|
|
340 |
|
Long-term debt |
|
753 |
|
|
|
839 |
|
Non-current environmental liabilities |
|
159 |
|
|
|
160 |
|
Other liabilities |
|
170 |
|
|
|
166 |
|
Total stockholders’ equity |
|
814 |
|
|
|
829 |
|
Total liabilities and stockholders’ equity |
$ |
2,306 |
|
|
$ |
2,348 |
|
Rayonier Advanced Materials Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions)
|
|||||||
|
Six Months Ended |
||||||
|
July 1, 2023 |
|
June 25, 2022 |
||||
Operating Activities |
|
|
|
||||
Net loss |
$ |
(15 |
) |
|
$ |
(48 |
) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: |
|
|
|
||||
(Income) loss from discontinued operations |
|
1 |
|
|
|
(1 |
) |
Depreciation and amortization |
|
68 |
|
|
|
61 |
|
Other |
|
(1 |
) |
|
|
10 |
|
Changes in working capital and other assets and liabilities |
|
31 |
|
|
|
(58 |
) |
Cash provided by (used in) operating activities |
|
84 |
|
|
|
(36 |
) |
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures, net |
|
(54 |
) |
|
|
(87 |
) |
Cash used in investing activities-continuing operations |
|
(54 |
) |
|
|
(87 |
) |
Cash provided by investing activities-discontinued operations |
|
— |
|
|
|
43 |
|
Cash used in investing activities |
|
(54 |
) |
|
|
(44 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Changes in debt |
|
(21 |
) |
|
|
(21 |
) |
Other |
|
(5 |
) |
|
|
(1 |
) |
Cash used in financing activities |
|
(26 |
) |
|
|
(22 |
) |
|
|
|
|
||||
Change in cash and cash equivalents |
|
4 |
|
|
|
(102 |
) |
Net effect of foreign exchange on cash and cash equivalents |
|
1 |
|
|
|
(3 |
) |
Balance, beginning of period |
|
152 |
|
|
|
253 |
|
Balance, end of period |
$ |
157 |
|
|
$ |
148 |
|
Rayonier Advanced Materials Inc. Sales Volumes and Average Prices (Unaudited)
|
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
July 1, 2023 |
|
April 1, 2023 |
|
June 25, 2022 |
|
July 1, 2023 |
|
June 25, 2022 |
||||||||||
Average Sales Prices ($ per metric ton) |
|||||||||||||||||||
High Purity Cellulose |
$ |
1,301 |
|
$ |
1,322 |
|
$ |
1,355 |
|
$ |
1,313 |
|
$ |
1,288 |
|||||
Paperboard |
$ |
1,498 |
|
|
$ |
1,568 |
|
|
$ |
1,439 |
|
|
$ |
1,536 |
|
|
$ |
1,384 |
|
High-Yield Pulp (external sales) |
$ |
633 |
|
|
$ |
769 |
|
|
$ |
603 |
|
|
$ |
691 |
|
|
$ |
586 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes (thousands of metric tons) |
|||||||||||||||||||
High Purity Cellulose |
|
214 |
|
|
|
265 |
|
|
|
206 |
|
|
|
479 |
|
|
|
414 |
|
Paperboard |
|
32 |
|
|
|
38 |
|
|
|
44 |
|
|
|
70 |
|
|
|
85 |
|
High-Yield Pulp (external sales) |
|
60 |
|
|
|
43 |
|
|
|
55 |
|
|
|
103 |
|
|
|
85 |
|
Rayonier Advanced Materials Inc. Reconciliation of Non-GAAP Measures (Unaudited) (in millions)
EBITDA and Adjusted EBITDA by Segment(a)
|
|||||||||||||||||||
|
Three Months Ended July 1, 2023 |
||||||||||||||||||
|
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate |
|
Total |
||||||||||
Income (loss) from continuing operations |
$ |
— |
|
|
$ |
6 |
|
|
$ |
1 |
|
|
$ |
(23 |
) |
|
$ |
(16 |
) |
Depreciation and amortization |
|
28 |
|
|
|
4 |
|
|
|
— |
|
|
|
1 |
|
|
|
33 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
14 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(3 |
) |
EBITDA-continuing operations |
|
28 |
|
|
|
10 |
|
|
|
1 |
|
|
|
(11 |
) |
|
|
28 |
|
Gain on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Adjusted EBITDA-continuing operations |
$ |
28 |
|
|
$ |
10 |
|
|
$ |
1 |
|
|
$ |
(12 |
) |
|
$ |
27 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended April 1, 2023 |
||||||||||||||||||
|
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate |
|
Total |
||||||||||
Income (loss) from continuing operations |
$ |
13 |
|
|
$ |
10 |
|
|
$ |
7 |
|
|
$ |
(28 |
) |
|
$ |
2 |
|
Depreciation and amortization |
|
31 |
|
|
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
35 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
15 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(3 |
) |
EBITDA-continuing operations |
|
44 |
|
|
|
13 |
|
|
|
8 |
|
|
|
(16 |
) |
|
|
49 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
Adjusted EBITDA-continuing operations |
$ |
44 |
|
|
$ |
13 |
|
|
$ |
8 |
|
|
$ |
(14 |
) |
|
$ |
51 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended June 25, 2022 |
||||||||||||||||||
|
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate |
|
Total |
||||||||||
Income (loss) from continuing operations |
$ |
6 |
|
$ |
11 |
|
$ |
(1 |
) |
|
$ |
(41 |
) |
|
$ |
(25 |
) |
||
Depreciation and amortization |
|
30 |
|
|
|
3 |
|
|
|
1 |
|
|
|
— |
|
|
|
34 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
16 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
EBITDA-continuing operations |
|
36 |
|
|
|
14 |
|
|
|
— |
|
|
|
(21 |
) |
|
|
29 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Adjusted EBITDA-continuing operations |
$ |
36 |
|
|
$ |
14 |
|
|
$ |
— |
|
|
$ |
(16 |
) |
|
$ |
34 |
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended July 1, 2023 |
||||||||||||||||||
|
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate & Other |
|
Total |
||||||||||
Income (loss) from continuing operations |
$ |
13 |
|
|
$ |
16 |
|
$ |
8 |
|
|
$ |
(51 |
) |
|
$ |
(14 |
) |
|
Depreciation and amortization |
|
59 |
|
|
|
7 |
|
|
|
1 |
|
|
|
1 |
|
|
|
68 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29 |
|
|
|
29 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
(6 |
) |
EBITDA-continuing operations |
|
72 |
|
|
|
23 |
|
|
|
9 |
|
|
|
(27 |
) |
|
|
77 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
Gain on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Adjusted EBITDA-continuing operations |
$ |
72 |
|
|
$ |
23 |
|
|
$ |
9 |
|
|
$ |
(26 |
) |
|
$ |
78 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended June 25, 2022 |
||||||||||||||||||
|
High Purity Cellulose |
|
Paperboard |
|
High-Yield Pulp |
|
Corporate & Other |
|
Total |
||||||||||
Income (loss) from continuing operations |
$ |
(1 |
) |
|
$ |
17 |
|
|
$ |
(1 |
) |
|
$ |
(64 |
) |
|
$ |
(49 |
) |
Depreciation and amortization |
|
53 |
|
|
|
7 |
|
|
|
1 |
|
|
|
— |
|
|
|
61 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
32 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
5 |
|
EBITDA-continuing operations |
|
52 |
|
|
|
24 |
|
|
|
— |
|
|
|
(27 |
) |
|
|
49 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Adjusted EBITDA-continuing operations |
$ |
52 |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
(22 |
) |
|
$ |
54 |
|
|
Annual Guidance Range |
||||||
|
2023 |
||||||
|
Low |
|
High |
||||
Loss from continuing operations |
$ |
(17 |
) |
|
$ |
(2 |
) |
Depreciation and amortization |
|
140 |
|
|
|
140 |
|
Interest expense, net |
|
65 |
|
|
|
65 |
|
Income tax benefit(b) |
|
(3 |
) |
|
|
(3 |
) |
EBITDA and Adjusted EBITDA-continuing operations |
$ |
185 |
|
|
$ |
200 |
|
__________________________ | |
(a) |
EBITDA-continuing operations is defined as income (loss) from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA-continuing operations is defined as EBITDA-continuing operations adjusted for the settlement of certain pension plans, gain on debt extinguishment and other items. 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 Flows - Continuing Operations(a)
|
Six Months Ended |
||||||
|
July 1, 2023 |
|
June 25, 2022 |
||||
Cash provided by (used in) operating activities-continuing operations |
$ |
84 |
|
|
$ |
(36 |
) |
Capital expenditures, net |
|
(32 |
) |
|
|
(71 |
) |
Adjusted free cash flows-continuing operations |
$ |
52 |
|
|
$ |
(107 |
) |
|
Annual Guidance Range |
||||||
|
2023 |
||||||
|
Low |
|
High |
||||
Cash provided by operating activities-continuing operations |
$ |
150 |
|
|
$ |
165 |
|
Capital expenditures, net |
|
(95 |
) |
|
|
(95 |
) |
Adjusted free cash flows-continuing operations |
$ |
55 |
|
|
$ |
70 |
|
__________________________ | |
(a) |
Adjusted free cash flows-continuing operations is defined as cash provided by (used in) operating activities-continuing operations adjusted for capital expenditures, net of proceeds from the sale of assets and excluding strategic capital expenditures. 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 the Company’s common stock. |
Adjusted Net Debt(a)
|
July 1, 2023 |
|
December 31, 2022 |
||||
Debt due within one year |
$ |
81 |
|
|
$ |
14 |
|
Long-term debt |
|
753 |
|
|
|
839 |
|
Total debt |
|
834 |
|
|
|
853 |
|
Unamortized debt premium, discount and issuance costs |
|
5 |
|
|
|
6 |
|
Cash and cash equivalents |
|
(157 |
) |
|
|
(152 |
) |
Adjusted net debt |
$ |
682 |
|
|
$ |
707 |
|
__________________________ | |
(a) |
Adjusted net debt is defined as the amount of debt after the consideration of debt premium, discount and issuance costs, less cash. |
Adjusted Income (Loss) from Continuing Operations(a)
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||||||||||||||
|
July 1, 2023 |
|
April 1, 2023 |
|
June 25, 2022 |
|
July 1, 2023 |
|
June 25, 2022 |
||||||||||||||||||||||||||||||
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
||||||||||||||||||||
Income (loss) from continuing operations |
$ |
(16 |
) |
|
$ |
(0.24 |
) |
|
$ |
2 |
) |
|
$ |
0.02 |
) |
|
$ |
(25 |
) |
|
$ |
(0.39 |
) |
|
$ |
(14 |
) |
|
$ |
(0.22 |
) |
|
$ |
(49 |
) |
|
$ |
(0.77 |
) |
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.03 |
|
|
|
1 |
|
|
|
0.02 |
|
|
|
2 |
|
|
|
0.04 |
|
|
|
1 |
|
|
|
0.02 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
0.06 |
|
Gain on debt extinguishment |
|
(1 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
Tax effect of adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted income (loss) from continuing operations |
$ |
(17 |
) |
|
$ |
(0.25 |
) |
|
$ |
4 |
|
|
$ |
0.05 |
|
|
$ |
(20 |
) |
|
$ |
(0.31 |
) |
|
$ |
(13 |
) |
|
$ |
(0.19 |
) |
|
$ |
(44 |
) |
|
$ |
(0.69 |
) |
__________________________ | |
(a) |
Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations adjusted net of tax for the settlement of certain pension plans, gain on debt extinguishment and other items. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808058571/en/
Media
Ryan Houck
904-357-9134
Investors
Mickey Walsh
904-357-9162
Source: Rayonier Advanced Materials Inc.