RYAM Announces Third Quarter 2022 Results
Rayonier Advanced Materials (RYAM) reported a robust net income of $30 million for Q3 2022, reversing a net loss from the previous year. Net sales surged to $466 million, a 25% increase year-over-year, with Adjusted EBITDA guidance raised to exceed $175 million. Strong performance in High Purity Cellulose drove a 28% sales increase, while Paperboard sales also saw a 27% rise. Despite inflationary pressures, the company improved its profitability through productivity gains and strategic pricing. RYAM continues to focus on debt reduction and plans to refinance upcoming maturities.
- Net income increased to $30 million from a loss of $5 million year-over-year.
- Net sales rose 25% to $466 million compared to $374 million in the prior year.
- Adjusted EBITDA guidance raised to exceed $175 million for 2022.
- High Purity Cellulose sales up 28%, contributing significantly to revenue growth.
- Debt repayments of $59 million year-to-date enhance financial stability.
- Inflation on key input costs continues to be a challenge.
- High-Yield Pulp sales volumes decreased 18%, impacting overall sales.
- Corporate operating loss increased to $11 million due to higher stock-based compensation.
Increases Adjusted EBITDA Guidance to Exceed
-
Net sales for the third quarter of
, up 25 percent from prior year quarter$466 million
-
Income from continuing operations for the third quarter of
$18 million
-
Adjusted EBITDA from continuing operations of
, up 106 percent from prior year quarter$68 million
- Higher prices across all segments partially offset by inflation on key input costs
“The quarter’s improved financial results are evidence of the significant earnings power of RYAM. Increased productivity in the third quarter led to higher sales volumes in High Purity Cellulose and stronger financial results,” said De
Third Quarter 2022 Operating Results from Continuing Operations
The Company operates in the following business segments: High Purity Cellulose, Paperboard, High-Yield Pulp and Corporate.
Net sales were comprised of the following for the periods presented:
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
369 |
|
|
$ |
302 |
|
|
$ |
288 |
|
|
$ |
952 |
|
|
$ |
792 |
|
Paperboard |
|
66 |
|
|
|
63 |
|
|
|
52 |
|
|
|
183 |
|
|
|
157 |
|
High-Yield Pulp |
|
40 |
|
|
|
40 |
|
|
|
42 |
|
|
|
102 |
|
|
|
106 |
|
Eliminations |
|
(9 |
) |
|
|
(6 |
) |
|
|
(8 |
) |
|
|
(20 |
) |
|
|
(21 |
) |
Net sales |
$ |
466 |
|
|
$ |
399 |
|
|
$ |
374 |
|
|
$ |
1,217 |
|
|
$ |
1,034 |
|
Operating results were comprised of the following for the periods presented:
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
22 |
|
|
$ |
7 |
|
|
$ |
2 |
|
|
$ |
21 |
|
|
$ |
19 |
|
Paperboard |
|
12 |
|
|
|
10 |
|
|
|
2 |
|
|
|
28 |
|
|
|
10 |
|
High-Yield Pulp |
|
6 |
|
|
|
(2 |
) |
|
|
8 |
|
|
|
4 |
|
|
|
8 |
|
Corporate |
|
(11 |
) |
|
|
(18 |
) |
|
|
(9 |
) |
|
|
(43 |
) |
|
|
(33 |
) |
Operating income (loss) |
$ |
29 |
|
|
$ |
(3 |
) |
|
$ |
3 |
|
|
$ |
10 |
|
|
$ |
4 |
|
High Purity Cellulose
Net sales for the quarter increased
Compared to the second quarter of 2022, operating income increased by
Paperboard
Net sales for the quarter increased
Compared to the second quarter of 2022, operating income increased
High-Yield Pulp
Net sales for the three months ended
Operating results improved by
Corporate
The operating loss for the three months ended
Compared to the second quarter of 2022, the operating loss improved by
Non-Operating Expenses
Included in non-operating expenses for the nine months ended
Income Taxes
The effective tax rate on income from continuing operations for the three months ended
The effective tax rates on the loss from continuing operations for the three and nine months ended
Discontinued Operations
As a result of the sale of lumber and newsprint assets in
The cash received at closing was preliminary and remains subject to final purchase price and other sale-related adjustments. During the first quarter of 2022, the Company trued-up certain sale-related items with GreenFirst for a total net cash outflow of
During the third quarter of 2022, the
Cash Flows & Liquidity
For the nine months ended
For the nine months ended
For the nine months ended
The Company ended the quarter with
In
With its next significant debt maturity in mid-2024, the Company continues to monitor the capital markets and is prepared to opportunistically refinance its senior notes due
Market Assessment
This market assessment represents the Company’s best current estimate of its business segments’ future performance.
The Company updated its Adjusted EBITDA guidance to exceed
High Purity Cellulose
Demand for cellulose specialties and commodity products remains strong albeit somewhat tempered as global economic growth slows. As such, average sales prices are expected to be down modestly in the fourth quarter driven by a greater mix of commodity sales volumes as production and logistics constraints improve. Key raw material inflation is expected to remain elevated. Adjusted EBITDA for the segment is expected to be down slightly compared to the third quarter but higher for the full year 2022 compared to 2021.
Paperboard
Paperboard prices are expected to remain elevated in the fourth quarter driven by strong demand in both the commercial printing and packaging end-use markets. Sales volumes and raw material costs are expected to remain steady. As a result, Paperboard is anticipated to deliver another solid quarter of Adjusted EBITDA.
High-Yield Pulp
High-yield pulp markets appear to be peaking as global economic demand slows. However, due to the sales lag experienced in this segment, realized prices are still expected to increase in the fourth quarter. Sales volumes are anticipated to increase significantly as production and logistics constraints improve. As such, Adjusted EBITDA for High-Yield Pulp is anticipated to improve in the coming quarter.
A Sustainable Future
For over 95 years, the Company has invested in renewable product offerings and the Company’s biorefinery model provides a platform to grow existing and new products to address needs of the changing economy. The Company continues to focus on growing its bio-based product offering. In the first nine months of 2022, other sales in the High Purity Cellulose segment were
The Company’s investment into a bioethanol facility at its Tartas,
Conference Call Information
RYAM will host a conference call and live webcast at
Investors may listen to the conference call by dialing 888-645-4404, no passcode required. For international parties, dial 404-267-0371. A replay of the teleconference will be available one hour after the call ends until
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 Company has not filed its Form 10-Q for the quarter ended
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
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
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 each reconciled to their respective most directly comparable GAAP financial measures beginning on Schedule D of this earnings release. The Company believes these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to its financial condition and results of operations. 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 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, reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures are provided below. 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.
|
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
(in millions, except per share information) |
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
466 |
|
|
$ |
399 |
|
|
$ |
374 |
|
|
$ |
1,217 |
|
|
$ |
1,034 |
|
Cost of Sales |
|
(419 |
) |
|
|
(372 |
) |
|
|
(355 |
) |
|
|
(1,138 |
) |
|
|
(972 |
) |
Gross Margin |
|
47 |
|
|
|
27 |
|
|
|
19 |
|
|
|
79 |
|
|
|
62 |
|
Selling, general & administrative expenses |
|
(20 |
) |
|
|
(28 |
) |
|
|
(17 |
) |
|
|
(68 |
) |
|
|
(52 |
) |
Foreign exchange gain (loss) |
|
3 |
|
|
|
2 |
|
|
|
3 |
|
|
|
4 |
|
|
|
1 |
|
Other operating expense, net |
|
(1 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(7 |
) |
Operating Income (Loss) |
|
29 |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
10 |
|
|
|
4 |
|
Interest expense |
|
(16 |
) |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
(49 |
) |
|
|
(49 |
) |
Interest income and other, net |
|
4 |
|
|
|
3 |
|
|
|
5 |
|
|
|
8 |
|
|
|
4 |
|
Gain (loss) on GreenFirst equity securities |
|
— |
|
|
|
(4 |
) |
|
|
(8 |
) |
|
|
5 |
|
|
|
(8 |
) |
Income (Loss) From Continuing Operations Before Income Taxes |
|
17 |
|
|
|
(20 |
) |
|
|
(17 |
) |
|
|
(26 |
) |
|
|
(49 |
) |
Income tax benefit (expense) |
|
2 |
|
|
|
(4 |
) |
|
|
4 |
|
|
|
(3 |
) |
|
|
29 |
|
Equity in loss of equity method investment |
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(1 |
) |
Income (Loss) from Continuing Operations |
|
18 |
|
|
|
(25 |
) |
|
|
(13 |
) |
|
|
(31 |
) |
|
|
(21 |
) |
Income from discontinued operations, net of taxes |
|
12 |
|
|
|
2 |
|
|
|
9 |
|
|
|
12 |
|
|
|
112 |
|
Net Income (Loss) |
$ |
30 |
|
|
$ |
(23 |
) |
|
$ |
(5 |
) |
|
$ |
(19 |
) |
|
$ |
90 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations |
$ |
0.29 |
|
|
$ |
(0.39 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.33 |
) |
Income from discontinued operations |
|
0.18 |
|
|
|
0.03 |
|
|
|
0.14 |
|
|
|
0.20 |
|
|
|
1.76 |
|
Net income (loss) per common share-basic |
$ |
0.47 |
|
|
$ |
(0.36 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.28 |
) |
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations |
$ |
0.28 |
|
|
$ |
(0.39 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.33 |
) |
Income from discontinued operations |
|
0.17 |
|
|
|
0.03 |
|
|
|
0.14 |
|
|
|
0.20 |
|
|
|
1.76 |
|
Net income (loss) per common share-diluted |
$ |
0.45 |
|
|
$ |
(0.36 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.28 |
) |
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares Used in Determining EPS |
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS |
|
63,971,166 |
|
|
|
63,898,761 |
|
|
|
63,737,355 |
|
|
|
63,882,920 |
|
|
|
63,610,710 |
|
Diluted EPS |
|
65,520,107 |
|
|
|
63,898,761 |
|
|
|
63,737,355 |
|
|
|
63,882,920 |
|
|
|
63,610,710 |
|
|
|||||
Condensed Consolidated Balance Sheets |
|||||
(Unaudited) |
|||||
(in millions) |
|||||
|
|
|
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
132 |
|
$ |
253 |
Other current assets |
|
556 |
|
|
523 |
Property, plant and equipment, net |
|
1,132 |
|
|
1,146 |
Other assets |
|
516 |
|
|
523 |
Total assets |
$ |
2,336 |
|
$ |
2,445 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
Debt due within one year |
$ |
22 |
|
$ |
38 |
Other current liabilities |
|
319 |
|
|
317 |
Long-term debt |
|
851 |
|
|
891 |
Long-term environmental liabilities |
|
159 |
|
|
160 |
Other liabilities |
|
205 |
|
|
225 |
Total stockholders’ equity |
|
780 |
|
|
814 |
Total liabilities and stockholders’ equity |
$ |
2,336 |
|
$ |
2,445 |
|
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
(in millions) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
Operating Activities |
|
|
|
||||
Net income (loss) |
$ |
(19 |
) |
|
$ |
90 |
|
Income from discontinued operations |
|
(12 |
) |
|
|
(112 |
) |
Adjustments: |
|
|
|
||||
Depreciation and amortization |
|
96 |
|
|
|
101 |
|
Other adjustments to reconcile net income (loss) to cash provided by operating activities |
|
10 |
|
|
|
(8 |
) |
Changes in working capital and other assets and liabilities |
|
(68 |
) |
|
|
(26 |
) |
Cash Provided by Operating Activities-Continuing Operations |
|
7 |
|
|
|
45 |
|
Cash Provided by Operating Activities-Discontinued Operations |
|
— |
|
|
|
162 |
|
Cash Provided by Operating Activities |
|
7 |
|
|
|
207 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures, net |
|
(114 |
) |
|
|
(61 |
) |
Investment in equity method investment |
|
— |
|
|
|
(4 |
) |
Cash Used in Investing Activities-Continuing Operations |
|
(114 |
) |
|
|
(65 |
) |
Cash Provided by Investing Activities-Discontinued Operations |
|
44 |
|
|
|
183 |
|
Cash Provided by (Used in) Investing Activities |
|
(70 |
) |
|
|
118 |
|
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Changes in debt |
|
(50 |
) |
|
|
(136 |
) |
Other changes |
|
(1 |
) |
|
|
(2 |
) |
Cash Used in Financing Activities |
|
(51 |
) |
|
|
(138 |
) |
|
|
|
|
||||
Change in cash and cash equivalents |
|
(114 |
) |
|
|
187 |
|
Net effect of foreign exchange on cash and cash equivalents |
|
(7 |
) |
|
|
(2 |
) |
Balance, beginning of period |
|
253 |
|
|
|
94 |
|
Balance, end of period |
$ |
132 |
|
|
$ |
279 |
|
|
||||||||||||||
Sales Volumes and Average Prices |
||||||||||||||
(Unaudited) |
||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Average Sales Prices ($ per metric ton) |
||||||||||||||
High Purity Cellulose |
$ |
1,402 |
|
$ |
1,355 |
|
$ |
1,159 |
|
$ |
1,329 |
|
$ |
1,111 |
Paperboard |
$ |
1,587 |
|
$ |
1,439 |
|
$ |
1,184 |
|
$ |
1,450 |
|
$ |
1,149 |
High-Yield Pulp (external sales) |
$ |
712 |
|
$ |
603 |
|
$ |
618 |
|
$ |
630 |
|
$ |
549 |
|
|
|
|
|
|
|
|
|
|
|||||
Sales Volumes (thousands of metric tons) |
||||||||||||||
High Purity Cellulose |
|
240 |
|
|
206 |
|
|
225 |
|
|
653 |
|
|
646 |
Paperboard |
|
41 |
|
|
44 |
|
|
44 |
|
|
126 |
|
|
137 |
High-Yield Pulp (external sales) |
|
45 |
|
|
55 |
|
|
55 |
|
|
130 |
|
|
154 |
|
|||||||||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
EBITDA and Adjusted EBITDA by Segment (a) |
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate &
|
|
Total |
||||||||
Income (loss) from continuing operations |
$ |
23 |
|
$ |
12 |
|
$ |
6 |
|
|
$ |
(23 |
) |
|
$ |
18 |
|
Depreciation and amortization |
|
30 |
|
|
3 |
|
|
— |
|
|
|
2 |
|
|
|
35 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
|
17 |
|
|
|
17 |
|
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
EBITDA and Adjusted EBITDA-continuing operations |
$ |
53 |
|
$ |
15 |
|
$ |
6 |
|
|
$ |
(6 |
) |
|
$ |
68 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
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 expense |
|
— |
|
|
— |
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Adjusted EBITDA-continuing operations |
$ |
36 |
|
$ |
14 |
|
$ |
— |
|
|
$ |
(16 |
) |
|
$ |
34 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate &
|
|
Total |
||||||||
Income (loss) from continuing operations |
$ |
2 |
|
$ |
2 |
|
$ |
8 |
|
|
$ |
(25 |
) |
|
$ |
(13 |
) |
Depreciation and amortization |
|
30 |
|
|
4 |
|
|
1 |
|
|
|
— |
|
|
|
35 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
|
17 |
|
|
|
17 |
|
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
EBITDA-continuing operations |
|
32 |
|
|
6 |
|
|
9 |
|
|
|
(12 |
) |
|
|
35 |
|
Gain on debt extinguishment |
|
— |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
Adjusted EBITDA-continuing operations |
$ |
32 |
|
$ |
6 |
|
$ |
9 |
|
|
$ |
(14 |
) |
|
$ |
33 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended |
||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate &
|
|
Total |
||||||||
Income (loss) from continuing operations |
$ |
22 |
|
$ |
29 |
|
$ |
5 |
|
|
$ |
(87 |
) |
|
$ |
(31 |
) |
Depreciation and amortization |
|
83 |
|
|
10 |
|
|
1 |
|
|
|
2 |
|
|
|
96 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
|
49 |
|
|
|
49 |
|
Income tax expense |
|
— |
|
|
— |
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
EBITDA-continuing operations |
|
105 |
|
|
39 |
|
|
6 |
|
|
|
(33 |
) |
|
|
117 |
|
Pension settlement loss |
|
— |
|
|
— |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Severance |
|
— |
|
|
— |
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Adjusted EBITDA-continuing operations |
$ |
105 |
|
$ |
39 |
|
$ |
6 |
|
|
$ |
(28 |
) |
|
$ |
122 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended |
||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate &
|
|
Total |
||||||||
Income (loss) from continuing operations |
$ |
20 |
|
$ |
11 |
|
$ |
9 |
|
|
$ |
(61 |
) |
|
$ |
(21 |
) |
Depreciation and amortization |
|
85 |
|
|
11 |
|
|
2 |
|
|
|
3 |
|
|
|
101 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
|
49 |
|
|
|
49 |
|
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
|
(29 |
) |
|
|
(29 |
) |
EBITDA-continuing operations |
|
105 |
|
|
22 |
|
|
11 |
|
|
|
(38 |
) |
|
|
100 |
|
Pension settlement loss |
|
— |
|
|
— |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Gain on debt extinguishment |
|
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
Adjusted EBITDA-continuing operations |
$ |
105 |
|
$ |
22 |
|
$ |
11 |
|
|
$ |
(39 |
) |
|
$ |
99 |
|
(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, 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 and gain on debt extinguishment. |
|
|||||||
Reconciliation of Non-GAAP Measures (Continued) |
|||||||
(Unaudited) |
|||||||
(in millions, except per share information) |
|||||||
Adjusted Free Cash Flows - Continuing Operations (a) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
Cash provided by operating activities-continuing operations |
$ |
7 |
|
|
$ |
45 |
|
Capital expenditures for continuing operations, net |
|
(92 |
) |
|
|
(51 |
) |
Adjusted free cash flows-continuing operations |
$ |
(85 |
) |
|
$ |
(6 |
) |
(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 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) |
|||||||
|
|
|
|
||||
Debt due within one year |
$ |
22 |
|
|
$ |
38 |
|
Long-term debt |
|
851 |
|
|
|
891 |
|
Total debt |
|
873 |
|
|
|
929 |
|
Debt premium, original issue discount and issuance costs, net |
|
7 |
|
|
|
8 |
|
Cash and cash equivalents |
|
(132 |
) |
|
|
(253 |
) |
Adjusted net debt |
$ |
748 |
|
|
$ |
684 |
|
(a) |
Adjusted net debt is defined as the amount of debt after the consideration of debt premiums, original issue discounts 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. |
Adjusted Income (Loss) from Continuing Operations (a) |
|||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
||||||||||||||||||
Income (loss) from continuing operations |
$ |
18 |
|
$ |
0.28 |
|
$ |
(25 |
) |
|
$ |
(0.39 |
) |
|
$ |
(13 |
) |
|
$ |
(0.21 |
) |
|
$ |
(31 |
) |
|
$ |
(0.48 |
) |
|
$ |
(21 |
) |
|
$ |
(0.33 |
) |
Pension settlement loss |
|
— |
|
|
— |
|
|
1 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
0.02 |
|
|
|
1 |
|
|
|
0.01 |
|
Severance |
|
— |
|
|
— |
|
|
4 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
Tax effects of adjustments |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted income (loss) from continuing operations |
$ |
18 |
|
$ |
0.28 |
|
$ |
(20 |
) |
|
$ |
(0.31 |
) |
|
$ |
(13 |
) |
|
$ |
(0.21 |
) |
|
$ |
(26 |
) |
|
$ |
(0.40 |
) |
|
$ |
(20 |
) |
|
$ |
(0.32 |
) |
(a) |
Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations adjusted net of tax for a settlement of certain pension plans and severance costs associated with an executive departure. Adjusted income (loss) from continuing operations is not necessarily indicative of results that may be generated in future periods. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221101006212/en/
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FAQ
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