*Reaffirms 2022 guidance of driving EBITDA growth, with expected previously announced slow start in first quarter, and a focus on capturing higher prices from strong demand, managing inflationary costs and improving reliability
*Cost surcharge on cellulose specialties and higher prices for other commodity products expected to offset incremental inflation
*Reliability and productivity expected to improve with the completion of extensive planned maintenance outages at Jesup and Fernandina facilities in April, representing four of the Company’s six High Purity Cellulose operating lines
*Net loss from continuing operations for the first quarter of $24 million, $8 million unfavorable to the comparable period in 2021
*Adjusted EBITDA from continuing operations was $20 million, unfavorable $12 million from the comparable quarter in 2021, driven by higher key input costs due to inflation and lower sales volumes due to supply chain constraints and lower production, partially offset by higher sales prices across all segments
Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) reported a net loss of $25 million or $(0.39) per diluted share for the quarter ended March 26, 2022, compared to net loss of $27 million or $(0.43) per diluted share for the same prior year quarter. The net loss from continuing operations for the quarter ended March 26, 2022 was $24 million or $(0.38) per diluted share, compared to net loss from continuing operations of $16 million or $(0.26) per diluted share for the same prior year quarter. The increase in the diluted loss per share was driven primarily by higher key input costs. Loss from discontinued operations for the quarter ended March 26, 2022 was $1 million or $(0.01) per diluted share, compared to a loss from discontinued operations of $11 million or $(0.17) per diluted share for the same prior year quarter. The Company sold its lumber and newsprint assets in the third quarter of 2021, and as a result, reclassified prior year amounts to conform to the presentation for discontinued operations. Unless otherwise stated, information in this press release relates to continuing operations.
“During the first quarter, we continued to advance our efforts to improve reliability and manage inflationary pressure in order to position ourselves for greater profitability. We recently completed the extensive planned maintenance outages in Jesup and Fernandina. We decided to accelerate Tartas’ planned maintenance outage into the second quarter from the fourth quarter. With Temiscaming’s outage also in the second quarter, we will proactively position the assets to operate with greater reliability and productivity to better service our customers” said Vito J. Consiglio, President and Chief Executive Officer. “In this dynamic environment, our team has continued to work diligently to absorb and mitigate the impacts of inflation and supply chain challenges. As previously stated, we have maintained an active and ongoing dialogue with our customers, and effective April 1, we implemented a cost surcharge to help offset the inflation of our key input costs. With these actions in place, we remain on track to deliver improved EBITDA in the second quarter and for the full year 2022.”
details at: https://investors.rayonieram.com/news-releases/news-release-details/rayonier-advanced-materials-announces-first-quarter-2022-results