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Rayonier Advanced Materials Inc. (NYSE: RYAM) (the “Company” or “RYAM”) today announced preliminary unaudited fourth quarter and full year results.
For the quarter ending December 31, 2022, the company forecasts the following:
- Revenue $488-508 million;
- Income (loss) from continuing operations between $1 million and $3 million; and
- Adjusted EBITDA $52 million to $56 million, including the previously disclosed force majeure event.
(Consensus sees third-quarter revenue of $440 million)
For the year ending December 31, 2022, the company forecasts the following:
- Revenue $1,705-$1,725 million;
- Loss from continuing operations between $28 million and $32 million;
- Adjusted EBITDA of $174 million to $178 million, including the previously disclosed force majeure event;
- Short-term and current portion of long-term debt of $14 million plus long-term debt of $839 million; and
- Adjusted net debt $707 million.
“RYAM continues to demonstrate the ability to deliver consistently positive results in line with our previously disclosed current rate expectations while reducing our total debt balance,” said De Lyle W. Bloomquist, President and CEO. “Additionally, our 2023 specialty pulp price negotiations resulted in higher contract prices for the upcoming year compared to 2022, including the cost surcharge implemented in April 2022.”
The figures above are preliminary, unaudited and subject to change as RYAM completes its period-end reporting process and related activities for the fourth quarter and full year ended December 31, 2022. RYAM is finalizing its regular annual report. closing and review procedures as of the quarter and year ended December 31, 2022, and there can be no assurance that the final results for that period will not differ from these estimates. RYAM’s independent registered public accountants have not reviewed, audited, prepared or performed any procedures in connection with these estimates and express no opinion or other assurance about them. The company expects to provide full details of its fourth quarter and year ended December 31, 2022 results during its next earnings call, scheduled for March 1, 2023.
About RYAM
RYAM is a global leader in cellulose-based technologies, including specialty products from high-purity cellulose, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The company also produces products for the paper and packaging markets. With manufacturing operations in the US, Canada and France, RYAM employs just over 2,500 people and is expected to generate $1.7 billion in revenue in 2022. More information can be found at www.RYAM.com.
Forward-looking statements
Certain statements in this document about anticipated financial, business, legal or other results, including business and market conditions, outlook and other similar statements relating to future events, developments or financial or operating results or results of RYAM are forward-looking. statements. 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,” “must,” “expect,” “estimate,” “believe,” “intend,” “anticipate,” “anticipate.” instructions and similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. Although we believe these forward-looking statements are reasonable, forward-looking statements are not guarantees of future actions or events and undue reliance should not be placed on such statements. Although we believe that the expectations reflected in any forward-looking statement are based on reasonable assumptions, we can give no assurance that these expectations will be met and it is possible that actual results could differ materially from those indicated in these forward-looking statements for a number of reasons. risks and uncertainties. All statements made in this earnings release are made only as of the date stated at the beginning of this release. The Company undertakes no obligation to update the information contained in this publication in the event that facts or circumstances change after the date of this publication. The financial results presented in this press release are preliminary, estimated and unaudited and reflect management’s estimates, which are based solely on information available to management as of the date of this press release and are subject to change. The Company has not completed the preparation of its financial statements for the fourth quarter or full year ended December 31, 2022, and has not filed a Form 10-K for the year ended December 31, 2022. In the course of preparing such financial statements on Form 10-K for the year ended December 31, 2022, the Company’s independent registered public accountants may identify items that could cause the final reported results to differ materially from the preliminary financial estimates presented herein. Therefore, any financial results described in this income statement should be considered preliminary and may be revised to reflect any necessary adjustments or changes in accounting estimates identified prior to the time the Company files its Annual Report on Form 10-K and should not be considered a substitute for financial information to be provided to the US Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, when it becomes available.
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 December 31, 2021, in the Company’s Quarterly Reports on Form 10-Q for the quarters ended. March 26, 2022, June 25, 2022 and September 24, 2022 and those filed from time to time in the Company’s filings with the US Securities and Exchange Commission available at www.RYAM.com. The Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
This press release and accompanying schedules contain certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA and Adjusted Net Debt. Each of these non-GAAP measures is reconciled to their respective most directly comparable GAAP financial measures on page 3 of this press release. The Company and its management believe that these non-GAAP measures provide useful information to its board of directors, management and investors about certain trends related to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare its performance with prior period results to analyze trends, determine management incentive compensation, and budget, forecast and plan.
The Company does not consider these non-GAAP measures to be an alternative to financial measures determined in accordance with GAAP. The primary limitation of these non-GAAP financial measures is that they may exclude significant expenses and income that are required to be reported in the consolidated financial statements under GAAP. In addition, they reflect management’s judgment as to which expenses and revenues are excluded or included in determining these non-GAAP financial measures. To compensate for these limitations, reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures are presented. Non-GAAP financial measures should not be relied upon in whole or in part in evaluating a company’s financial condition, results of operations or future prospects.
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Rayonier Advanced Materials Inc. |
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Reconciliation of Non-GAAP Measures |
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(unaudited) |
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(in millions) |
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EBITDA and Adjusted EBITDA(a) |
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|
The three months ended on December 31, 2022 |
Year over December 31, 2022 |
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|
Low |
High |
Low |
High |
||||||||||||
|
Income (loss) from continuing operations |
$ |
(1 |
) |
$ |
3 |
$ |
(32 |
) |
$ |
(28 |
) |
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|
Depreciation and amortization |
38 |
38 |
135 |
135 |
|||||||||||
|
Interest expense, net |
17 |
17 |
65 |
65 |
|||||||||||
|
Income tax expense (compensation) |
(2 |
) |
(2 |
) |
1 |
1 |
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|
EBITDA-Continuing operations |
52 |
56 |
169 |
173 |
|||||||||||
|
Loss of pension settlement |
— |
— |
1 |
1 |
|||||||||||
|
Parting |
— |
— |
4 |
4 |
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|
Adjusted EBITDA-Continuing Operations |
$ |
52 |
$ |
56 |
$ |
174 |
$ |
178 |
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(a) EBITDA from 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 shareholders and potential shareholders to measure the company’s performance against assets under management. Adjusted EBITDA from continuing operations is defined as EBITDA from continuing operations adjusted for certain pension plans and severance costs related to executive departures. |
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Adjusted Net Debt(a) |
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|
December 31, 2022 |
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Due within one year |
$ |
14 |
||
|
Long term debt |
839 |
|||
|
All debt |
853 |
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|
Debt premium, initial issue discount and issue costs, net |
6 |
|||
|
Cash and cash equivalents |
(152 |
) |
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|
Adjusted net debt |
$ |
707 |
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|
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(a) Adjusted net debt is defined as the amount of debt after taking into account the debt premium, original issue discount and issue costs, less cash. Adjusted net debt is a non-GAAP measure of debt and is not necessarily indicative of adjusted net debt that may be incurred in future periods. |
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