Reaffirms 2023 EBITDA and Raises Free Cash
Flow Guidance
- Net sales for the first quarter of $467 million, up $115
million, or 33 percent, from prior year quarter
- Income from continuing operations for the first quarter of $2
million, up $26 million, or 108 percent, from prior year
quarter
- Adjusted EBITDA from continuing operations for the first
quarter of $51 million, up $31 million, or 155 percent, from prior
year quarter
- Cash provided by operating activities of $51 million; total
debt of $846 million
- Adjusted Free Cash Flow generation of $36 million; Net Debt
reduced to $683 million
- Reaffirm 2023 Adjusted EBITDA guidance of $200 million to $215
million
- Increase 2023 Adjusted Free Cash Flow guidance to $40 million
to $65 million
Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”)
reported net income of $2 million, or $0.02 per diluted share, for
the quarter ended April 1, 2023, compared to a net loss of $25
million, or $(0.39) per diluted share, for the prior year quarter.
Income from continuing operations for the quarter ended April 1,
2023 was $2 million, or $0.02 per diluted share, compared to a loss
from continuing operations of $24 million, or $(0.38) per diluted
share, for the prior year quarter.
“First quarter results were in line with expectations and keep
us on track to deliver upon our full year guidance of $200 to $215
million of Adjusted EBITDA, and we now expect that our Adjusted
Free Cash Flow will be $40 to $65 million due to increased scrutiny
on maintenance capital expenditures as operational efficiency has
improved. While we are experiencing pockets of softness in some
parts of our business, we are able to offset through more efficient
operations and reduced costs,” said De Lyle W. Bloomquist,
President and Chief Executive Officer. “With another quarter of
solid financial results, including the good progress on our working
capital initiatives, we reduced net debt leverage to 3.3 times. Our
top near-term priority remains the refinancing of our debt maturing
in June 2024. With improved credit metrics, we expect to execute on
this goal at acceptable terms in the coming quarter. As we look
into the second quarter, we expect net leverage to continue to
improve despite the annual maintenance outages at our two largest
facilities.”
First 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
(in millions)
April 1, 2023
December 31, 2022
March 26, 2022
High Purity Cellulose
$
374
$
384
$
281
Paperboard
59
67
54
High-Yield Pulp
42
58
22
Eliminations
(8
)
(9
)
(5
)
Net sales
$
467
$
500
$
352
Operating results were comprised of the following for the
periods presented:
Three Months Ended
(in millions)
April 1, 2023
December 31, 2022
March 26, 2022
High Purity Cellulose
$
13
$
10
$
(8
)
Paperboard
10
9
6
High-Yield Pulp
7
12
—
Corporate
(13
)
(15
)
(14
)
Operating income (loss)
$
17
$
16
$
(16
)
High Purity Cellulose
Net sales for the quarter increased $93 million, or 33 percent,
to $374 million compared to the prior year quarter. Included in the
current and prior year quarters were $23 million and $27 million,
respectively, of other sales primarily from bio-based energy and
lignosulfonates. Sales prices increased 8 percent during the
current quarter compared to the prior year quarter, driven by
increases in cellulose specialties and commodity products prices of
18 percent and 6 percent, respectively. Total sales volumes
increased 27 percent during the current quarter compared to the
prior year quarter, including 65 percent and 5 percent increases in
commodity products and cellulose specialties, respectively. These
increases were primarily driven by strong demand, increased
productivity and improved logistics and cellulose specialties
customer contract terms.
Operating income for the quarter increased $21 million compared
to the prior year, driven by the higher sales prices and sales
volumes, partially offset by higher chemicals and logistics costs
and the impact of the extended maintenance outage in the prior
year.
Compared to the fourth quarter of 2022, operating income
increased $3 million, driven by higher cellulose specialties sales
prices and commodity products volumes, partially offset by lower
commodity products sales prices and cellulose specialties volumes.
Total sales prices decreased 1 percent, driven by a 10 percent
decrease in commodity products sales prices that was partially
offset by 7 percent higher cellulose specialties sales prices.
Total sales volumes for the quarter were flat to the fourth quarter
of 2022.
Paperboard
Net sales for the quarter increased $5 million, or 9 percent, to
$59 million compared to the prior year quarter. Sales prices
increased 18 percent during the quarter compared to the prior year
quarter, driven primarily by demand for packaging. Sales volumes
decreased 7 percent during the quarter compared to the prior year
quarter, driven by the timing of sales.
Operating income for the quarter increased $4 million compared
to the prior year quarter, driven by the higher sales prices,
partially offset by the lower sales volumes and higher chemicals
and purchased pulp costs.
Compared to the fourth quarter of 2022, operating income
increased $1 million, driven by a 1 percent increase in sales
prices, partially offset by a 12 percent decrease in sales volumes
driven by the timing of sales.
High-Yield Pulp
Net sales for the quarter increased $20 million, or 91 percent,
to $42 million compared to the prior year quarter, driven by 39
percent and 43 percent increases in sales prices and sales volumes,
respectively, driven by stronger demand, increased productivity and
easing logistics constraints.
Operating income for the quarter increased $7 million compared
to the prior year quarter, driven by the higher sales prices and
sales volumes, partially offset by higher chemicals and logistics
costs.
Operating income decreased $5 million compared to the fourth
quarter of 2022, driven primarily by 4 percent lower sales prices
and lower sales volumes due to a decrease in global demand.
Corporate
Compared to the first quarter of 2022, the operating loss
decreased $1 million, driven primarily by lower variable
stock-based compensation costs. Compared to the fourth quarter of
2022, the operating loss decreased $2 million, driven primarily by
lower variable stock-based compensation costs and environmental
expenses.
Non-Operating Expenses
Included in non-operating expenses in the first quarter of 2023
was a $2 million pension settlement loss.
Included in non-operating expenses in the first quarter of 2022
was a $9 million unrealized gain on GreenFirst Forest Products,
Inc. common shares received in connection with the sale of the
Company’s lumber and newsprint assets.
Income Taxes
The effective tax rate for the first quarter of 2023 is not
meaningful due to near break-even pretax income for the period,
which results in any discrete tax adjustments significantly
impacting the rate. The largest adjustments creating a difference
between the effective tax rate and the statutory rate of 21 percent
were an excess tax benefit on vested stock compensation and
return-to-accrual adjustments related to previously filed tax
returns.
The effective tax rate on the loss from continuing operations
for the first quarter of 2022 was an expense of 6 percent. The 2022
effective tax rate differed from the federal statutory rate of 21
percent primarily due to disallowed interest deductions in the U.S.
and nondeductible executive compensation, partially offset by U.S.
tax credits and tax return-to-accrual adjustments.
Cash Flows & Liquidity
For the three months ended April 1, 2023, the Company generated
operating cash flows of $51 million, which were driven by increased
cash inflows from working capital, partially offset by payments on
deferred energy liabilities associated with Tartas facility
operations.
For the three months ended April 1, 2023, the Company used $21
million in its investing activities related to net capital
expenditures, which included $6 million of strategic capital
spending focused on enhancing reliability and cost efficiency.
For the three months ended April 1, 2023, the Company used $14
million in its financing activities primarily for the repayment of
long-term debt and the repurchase of common stock to satisfy tax
withholding requirements related to the issuance of stock under
Company incentive stock plans.
The Company ended the quarter with $276 million of global
liquidity, including $169 million of cash, borrowing capacity under
the ABL Credit Facility of $100 million and $7 million of
availability under the factoring facility in France. The Company
recently purchased credit insurance, which the Company estimates
would have resulted in pro forma ABL Credit Facility availability
as of quarter end of $136 million. Additionally, the Company
repurchased $10 million of Senior Secured Notes in April through
open-market transactions and retired the notes for cash of $9
million.
The next significant debt maturity for the Company is in June
2024. The Company is actively monitoring the capital markets and is
prepared to refinance its senior unsecured notes due June 2024 at
acceptable terms in the coming quarter. The Company has partnered
with Goldman Sachs to act as the lead financial advisor to support
the refinancing effort. The Company is considering using a portion
of its cash balance to repay debt or assist in a holistic
refinancing of its capital structure.
Market Assessment
This market assessment represents the Company’s best current
estimate of its business segments’ future performance.
High Purity Cellulose
Demand for cellulose specialties remains mixed. Strength in
acetate and certain other cellulose specialty end markets is
offsetting softness in construction and food-related end markets.
Average sales prices for cellulose specialties in 2023 are expected
to be high single digit percent higher than average 2022 sales
prices, while sales volumes are expected to decrease due to the
softness in demand. Market demand for commodity products remains
resilient but at lower prices than first quarter levels. Fluff
sales prices are expected to decline versus 2022 levels, in line
with industry forecasts. Viscose pulp sales prices have stabilized
and are expected to increase slightly in the second half of the
year. Commodity sales volumes are expected to increase as
production and logistics constraints improve. Additional benefits
from prior strategic capital investments are expected throughout
the year. Certain raw material and energy prices have come off the
2022 highs, but are expected to remain significantly elevated
versus pre-COVID pandemic levels. The Company experienced a slower
than anticipated return to production after the annual maintenance
outage of its Tartas facility, which has been completed but is
expected to impact the second quarter, but overall production is
anticipated to be made up in the balance of the year. Additionally
in the second quarter, annual maintenance outages will be executed
at the Company’s two largest facilities in Jesup and
Temiscaming.
Paperboard
Paperboard prices are expected to moderate slightly over the
balance of the year but remain elevated from 2022 levels, while
sales volumes are expected to remain steady. Raw material prices
are expected to reduce as pulp markets decline.
High-Yield Pulp
High-yield pulp markets have declined as global economic demand
slows and new capacity ramps up, impacting sales price. Prices are
expected to decline in 2023, in line with industry forecasts for
the global paper pulp market. Sales volumes are expected to improve
slightly in 2023, primarily due to improved logistics and
production reliability.
2023 Guidance
Overall, income (loss) from continuing operations is expected to
be between $(8) million and $12 million, with Adjusted EBITDA
between $200 million and $215 million for 2023. The Company expects
to spend approximately $100 million to $105 million of custodial
capital expenditures, including $10 million to $15 million of
catch-up maintenance capital, and discretionary strategic capital
expenditures of approximately $30 million to $35 million, net of
financing. Strategic capital may be modulated as necessary to
support Adjusted Free Cash Flow. The Company is targeting $45
million of benefit from working capital to support Adjusted Free
Cash Flow for the year. Overall, the Company expects to generate
$40 million to $65 million of Adjusted Free Cash Flow in 2023. For
the second quarter, Adjusted EBITDA is expected to be in the low
$40 million range, which is expected to be the trough quarter due
to the timing of customer annual maintenance outages, the slower
than anticipated return to production of the Tartas facility, which
has now been completed, and the Company’s planned annual
maintenance outages at its two largest facilities.
A Sustainable Future
The Company continues to focus on growing its bio-based product
offering and expects to grow its sales of bioelectricity and
lignosulfonates and increase overall margins over time.
The Company’s bioethanol facility at its Tartas, France facility
is under construction and is anticipated to be operational in the
first half of 2024. The total estimated cost of the project is
approximately $41 million, with $29 million to be spent in 2023.
The Company plans to utilize $28 million of low-cost green loans to
help fund the project, including $8 million already raised, and $4
million in grants. The project is expected to provide $9 million to
$11 million of annual incremental EBITDA beginning in 2024.
“RYAM is well positioned to meet the demands of a more
sustainable world. We have the right team and assets in place to
develop innovative solutions that meet our customers' needs while
running our operations in a safe and reliable way. Our improved
operations and strengthened balance sheet position the Company to
make disciplined strategic capital allocation decisions that create
value for our shareholders,” concluded Mr. Bloomquist.
Conference Call Information
RYAM will host a conference call and live webcast at 9:00 a.m.
ET on Wednesday, May 10, 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, May 24,
2023. The replay dial-in number within the U.S. is 877-660-6853,
international is 201-612-7415, Conference ID: 13737694.
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 U.S., Canada and France, RYAM employs
approximately 2,500 people and generated $1.7 billion of revenues
in 2022. More information is available at www.RYAM.com.
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 April
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 Russia and Ukraine or other
geopolitical conflicts. The Company is subject to risks associated
with epidemics and pandemics, including the COVID-19 pandemic,
which has had, and may continue to have, a material adverse impact
on the Company’s business, financial condition, results of
operations and cash flows. 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 raw material and energy
availability and prices, 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 the United
States. Foreign currency exchange fluctuations may have a material
adverse impact on the Company’s business, financial condition and
results of operations. Restrictions on trade through tariffs,
countervailing and anti-dumping duties, quotas and other trade
barriers, in the United States and internationally, could
materially adversely affect the Company’s ability to access certain
markets. Business and Operational Risks The Company’s ten
largest customers represented approximately 40 percent of 2022
revenue, and the loss of all or a substantial portion of revenue
from these customers could have a material adverse effect on the
Company’s business. A material disruption at any of the Company’s
major manufacturing facilities could prevent the Company from
meeting customer demand, reduce sales and profitability, increase
the cost of production and capital needs, or otherwise materially
adversely affect the Company’s business, financial condition and
results of operations. Unfavorable changes in the availability of,
and prices for, wood fiber may have a material adverse impact on
the Company’s business, financial condition and results of
operations. Substantial capital is required to maintain the
Company’s facilities, and the cost to repair or replace equipment,
as well as the associated downtime, could materially adversely
affect the Company’s business. The Company depends on third parties
for transportation services and unfavorable changes in the cost and
availability of transportation could materially adversely affect
the Company’s business. Failure to maintain satisfactory labor
relations could have a material adverse effect on the Company’s
business. The Company is dependent upon attracting and retaining
key personnel, the loss of whom could materially adversely affect
the Company’s business. Failure to develop new products or discover
new applications for existing products, or inability to protect the
intellectual property underlying new products or applications,
could have a material adverse impact on the Company’s business.
Loss of Company intellectual property and sensitive data or
disruption of manufacturing operations due to cyberattacks or
cybersecurity breaches could materially adversely impact the
business. Regulatory and Environmental Risks The Company’s
business is subject to extensive environmental laws, regulations
and permits that may materially restrict or adversely affect how
the Company conducts business and its financial results. The
potential longer-term impacts of climate-related risks remain
uncertain at this time. Regulatory measures to address climate
change may materially restrict how the Company conducts business or
adversely affect its financial results. Financial Risks The
Company may need to make significant additional cash contributions
to its retirement benefit plans if investment returns on pension
assets are lower than expected or interest rates decline, and/or
due to changes to regulatory, accounting and actuarial
requirements. The Company has debt obligations that could
materially adversely affect the Company’s business and its ability
to meet its obligations. Challenges in the commercial and credit
environments may materially adversely affect the Company’s future
access to capital. The Company may require additional financing in
the future to meet its capital needs or to make acquisitions, and
such financing may not be available on favorable terms, if at all,
and may be dilutive to existing stockholders. Common Stock and
Certain Corporate Matters Risks Stockholders’ percentage of
ownership in RYAM may be diluted. Certain provisions in the
Company’s amended and restated certificate of incorporation and
bylaws, and of Delaware law, could prevent or delay an acquisition
of the Company, which could decrease the price of its common
stock.
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 U.S.
Securities and Exchange Commission, including the Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. The Company assumes
no obligation to update these statements except as is required by
law.
Non-GAAP Financial Measures
This earnings release and the accompanying schedules contain
certain non-GAAP financial measures, including EBITDA, adjusted
EBITDA, adjusted free cash flows, adjusted 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
April 1, 2023
December 31, 2022
March 26, 2022
Net sales
$
467
$
500
$
352
Cost of sales
(430
)
(456
)
(346
)
Gross margin
37
44
6
Selling, general and administrative
expenses
(19
)
(23
)
(20
)
Other operating expense, net
(1
)
(5
)
(2
)
Operating income (loss)
17
16
(16
)
Interest expense
(15
)
(17
)
(16
)
Unrealized gain on GreenFirst equity
securities
—
—
9
Other income (expense), net
(2
)
3
—
Income (loss) from continuing
operations before income taxes
—
2
(23
)
Income tax (expense) benefit
3
2
(1
)
Equity in loss of equity method
investment
(1
)
—
—
Income (loss) from continuing
operations
2
4
(24
)
Loss from discontinued operations, net of
taxes
—
—
(1
)
Net income (loss)
$
2
$
4
$
(25
)
Basic earnings per common share
Income (loss) from continuing
operations
$
0.02
$
0.06
$
(0.38
)
Loss from discontinued operations
—
—
(0.01
)
Net income (loss) per common
share-basic
$
0.02
$
0.06
$
(0.39
)
Diluted earnings per common
share
Income (loss) from continuing
operations
$
0.02
$
0.05
$
(0.38
)
Loss from discontinued operations
—
—
(0.01
)
Net income (loss) per common
share-diluted
$
0.02
$
0.05
$
(0.39
)
Shares used in determining EPS
Basic EPS
64,504,200
63,983,818
63,771,484
Diluted EPS
66,596,653
66,213,467
63,771,484
Rayonier Advanced Materials
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
(in millions)
April 1, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
169
$
152
Other current assets
493
538
Property, plant and equipment, net
1,144
1,151
Other assets
504
507
Total assets
$
2,310
$
2,348
Liabilities and Stockholders’
Equity
Debt due within one year
$
14
$
14
Other current liabilities
307
340
Long-term debt
832
839
Non-current environmental liabilities
159
160
Other liabilities
167
166
Total stockholders’ equity
831
829
Total liabilities and stockholders’
equity
$
2,310
$
2,348
Rayonier Advanced Materials
Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
(in millions)
Three Months Ended
April 1, 2023
March 26, 2022
Operating Activities
Net income (loss)
$
2
$
(25
)
Adjustments to reconcile net income (loss)
to cash provided by operating activities:
Depreciation and amortization
35
27
Other
5
(1
)
Changes in working capital and other
assets and liabilities
9
(24
)
Cash provided by (used in) operating
activities-continuing operations
51
(23
)
Cash used in operating
activities-discontinued operations
—
(1
)
Cash provided by (used in) operating
activities
51
(24
)
Investing Activities
Capital expenditures, net
(21
)
(45
)
Cash used in investing activities
(21
)
(45
)
Financing Activities
Changes in debt
(9
)
(4
)
Other
(5
)
—
Cash used in financing activities
(14
)
(4
)
Change in cash and cash equivalents
16
(73
)
Net effect of foreign exchange on cash and
cash equivalents
1
(1
)
Balance, beginning of period
152
253
Balance, end of period
$
169
$
179
Rayonier Advanced Materials
Inc.
Sales Volumes and Average
Prices
(Unaudited)
Three Months Ended
April 1, 2023
December 31, 2022
March 26, 2022
Average Sales Prices ($ per metric
ton)
High Purity Cellulose
$
1,322
$
1,331
$
1,222
Paperboard
$
1,568
$
1,557
$
1,326
High-Yield Pulp (external sales)
$
769
$
802
$
555
Sales Volumes (thousands of metric
tons)
High Purity Cellulose
265
265
208
Paperboard
38
43
41
High-Yield Pulp (external sales)
43
61
30
Rayonier Advanced Materials
Inc.
Reconciliation of Non-GAAP
Measures
(Unaudited)
(in millions)
EBITDA and Adjusted EBITDA by
Segment(a)
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 December
31, 2022
High Purity Cellulose
Paperboard
High-Yield Pulp
Corporate
Total
Income (loss) from continuing
operations
$
11
$
10
$
12
$
(29
)
$
4
Depreciation and amortization
34
4
1
—
39
Interest expense, net
—
—
—
15
15
Income tax benefit
—
—
—
(2
)
(2
)
EBITDA-continuing operations
45
14
13
(16
)
56
Gain on debt extinguishment
—
—
—
(1
)
(1
)
Adjusted EBITDA-continuing
operations
$
45
$
14
$
13
$
(17
)
$
55
Three Months Ended March 26,
2022
High Purity Cellulose
Paperboard
High-Yield Pulp
Corporate
Total
Income (loss) from continuing
operations
$
(7
)
$
6
$
—
$
(23
)
$
(24
)
Depreciation and amortization
23
4
—
—
27
Interest expense, net
—
—
—
16
16
Income tax expense
—
—
—
1
1
EBITDA and Adjusted EBITDA-continuing
operations
$
16
$
10
$
—
$
(6
)
$
20
___________________________________
(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 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.
Annual Guidance Range
2023
Low
High
Income (loss) from continuing
operations
$
(8
)
$
12
Depreciation and amortization
135
135
Interest expense, net(a)
70
65
Income tax expense(b)
3
3
EBITDA and Adjusted EBITDA-continuing
operations
$
200
$
215
___________________________________
(a)
Dependent on timing and cost of
refinancing.
(b)
Estimated using the statutory rates of
each jurisdiction and ignoring all permanent book-to-tax
differences.
Rayonier Advanced Materials
Inc.
Reconciliation of Non-GAAP
Measures (Continued)
(Unaudited)
(in millions, except per share
information)
Adjusted Free Cash Flows -
Continuing Operations(a)
Three Months Ended
April 1, 2023
March 26, 2022
Cash provided by (used in) operating
activities-continuing operations
$
51
$
(23
)
Capital expenditures, net
(15
)
(36
)
Adjusted free cash flows-continuing
operations
$
36
$
(59
)
Annual Guidance Range
2023
Low
High
Cash provided by operating
activities-continuing operations
$
145
$
165
Capital expenditures, net
(105
)
(100
)
Adjusted free cash flows-continuing
operations
$
40
$
65
___________________________________
(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. 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.
Rayonier Advanced Materials
Inc.
Reconciliation of Non-GAAP
Measures (Continued)
(Unaudited)
(in millions, except per share
information)
Adjusted Net Debt(a)
April 1, 2023
December 31, 2022
Debt due within one year
$
14
$
14
Long-term debt
832
839
Total debt
846
853
Unamortized debt premium, discount and
issuance costs
6
6
Cash and cash equivalents
(169
)
(152
)
Adjusted net debt
$
683
$
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
April 1, 2023
December 31, 2022
March 26, 2022
$
Per Diluted Share
$
Per Diluted Share
$
Per Diluted Share
Income (loss) from continuing
operations
$
2
$
0.02
$
4
$
0.05
$
(24
)
$
(0.38
)
Pension settlement loss
2
0.03
—
—
—
—
Gain on debt extinguishment
—
—
(1
)
(0.01
)
—
—
Tax effect of adjustments
—
—
—
—
—
—
Adjusted income (loss) from continuing
operations
$
4
$
0.05
$
3
$
0.04
$
(24
)
$
(0.38
)
___________________________________
(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/20230509006093/en/
Media Ryan Houck 904-357-9134
Investors Mickey Walsh 904-357-9162
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