Second Quarter 2020 Highlights:
*Second quarter loss from continuing operations was $13 million, $6 million better than comparable quarter in 2019 driven by certain tax benefits, improved reliability and lower costs offset by demand weakness related to COVID-19
*Second quarter EBITDA of $19 million, down $2 million from comparable quarter in 2019 as impacts from COVID-19 and non-cash Corporate expenses more than offset improvements in Forest Products and Paperboard
*High Purity Cellulose segment improved from first quarter of 2020 driven by higher commodity volumes and lower costs
*$16 million of Free Cash Flow generated in the second quarter driven by reduced capital expenditures and improved working capital added to improved liquidity of $166 million; well within financial debt covenant compliance
*Expecting $31 million cash refund in fourth quarter from 2019 taxes, primarily related to CARES Act benefits
Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) reported a loss from continuing operations for the quarter ended June 27, 2020 of $13 million or $0.20 per diluted share, compared to a loss of $19 million or $0.46 per diluted share for the same prior year quarter.
Year-to-date net loss from continuing operations for the six months ended June 27, 2020 was $38 million, or $0.60 per diluted common share, compared to a net loss of $47 million, or $1.10 per diluted common share for the same prior year period. The decrease in the diluted loss per share was due primarily to the conversion of the Company’s preferred stock into approximately 13 million shares of common stock in August of 2019.
“Second quarter results were below expectations primarily driven by the impacts of COVID-19,” said Paul Boynton, President and Chief Executive Officer. “High Purity Cellulose was impacted from reduced demand for textile, automotive and construction related products and ocean carrier delays, while newsprint demand was adversely affected, severely impacting price realizations and volumes. Despite the market challenges, we continued to focus on operating reliably to meet the needs of our customers, minimizing our costs and improving our cash flow. In addition, we amended our bank debt covenants and increased liquidity, providing us with incremental financial flexibility to manage through the pandemic.”
details at: https://investors.rayonieram.com/news-releases/news-release-details/rayonier-advanced-materials-announces-second-quarter-2020