Rayonier Advanced Materials Announces Third Quarter 2021 Results

*Sale of lumber and newsprint assets for approximately $232 million; estimated gain on sale of $6 million, net of tax
*Retired $127 million of senior unsecured debt; additional $25 million of senior secured debt repaid in October
*Expect significant price increases on the majority of cellulose specialties contracts in 2022
*Net loss from continuing operations was $13 million, $26 million unfavorable to the comparable period in 2020, driven by income tax benefit recorded in the prior year
*Adjusted EBITDA from continuing operations was $35 million, up $3 million from the comparable quarter in 2020, driven by higher High Purity Cellulose and High-Yield Pulp prices offset by impacts of cost inflation
*Targeting EBITDA margin growth focused on lowering cost, improving reliability, executing strategic projects and funding attractive innovation initiatives

Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) reported a net loss of $5 million or a net loss of $0.07 per diluted share, compared to net income of $29 million or $0.45 per diluted share for the same prior year quarter. The net loss from continuing operations for the quarter ended September 25, 2021 was $13 million or $0.21 per diluted share, compared to net income from continuing operations of $13 million or $0.20 per diluted share for the same prior year quarter. The decrease in the diluted earnings per share was primarily due to significant income tax benefits recorded in the prior year. Income from discontinued operations for the quarter ended September 25, 2021 was $9 million or $0.14 per diluted share, compared to income from discontinued operations of $16 million or $0.25 per diluted share for the same prior year quarter. The decrease in the diluted earnings per share was due to lower lumber sales volumes as only two months of activity are recorded in the current quarter along with a higher income tax expense. As a result of the sale of lumber and newsprint assets, the Company has reclassified certain prior year amounts to conform to the current year presentation for discontinued operations. Unless otherwise stated, information in this press release relates to continuing operations.

“We made great progress on our strategic initiatives in the quarter including completion of the portfolio optimization initiative,” said Paul Boynton, President and Chief Executive Officer. “Along with our sale of the lumber and newsprint assets, we repaid a significant amount of debt and built cash reserves, which will be used to make investments in lowering cost, improving reliability and growing our BioFuture over the coming years. As we experience significant cost inflation and strong demand for cellulose specialties products, which are expected to continue into 2022, it is imperative that we capture fair value for our products to maintain our capital-intensive assets and service our customers. As such, we expect significant price increases on our majority of cellulose specialties contracts in 2022.”
details at: https://investors.rayonieram.com/news-releases/news-release-details/rayonier-advanced-materials-announces-third-quarter-2021-results

Related Posts

Johnsonburg Pulp and Paper Mill: 131 years of Papermaking

At Domtar, we are proud to be a part of the communities where we work, live and play. In many of these communities, the pulp and paper mill has influenced the development of the town and is often the area’s largest employer. Our Johnsonburg Mill is a great example of how a mill can shape a town. The Johnsonburg pulp and paper mill has been the backdrop and the backbone of this small Pennsylvania town since 1889. Boasting more than a century of partnership, the mill and the town have developed a symbiotic relationship. Click read more below for the rest of the story.

AF&PA Applauds EPA‘s Proposed Boiler Maximum Achievable Control Technology (MACT) Rule

American Forest & Paper Association (AF&PA) President and CEO Heidi Brock issued the following statement regarding the Environmental Protection Agency’s (EPA) Boiler Maximum Achievable Control Technology (MACT) proposed rule: “AF&PA is pleased the EPA has moved forward in proposing an achievable Boiler Maximum Achievable Control Technology (MACT) rule. This is the result of more than two decades of work that gives the forest products industry regulatory certainty while encouraging the use of renewable, carbon-neutral fuel. “While limits for several boiler types have become more stringent, we believe they are feasible and affordable. Already, to date, our industry has invested $1 billion in controls to meet Boiler MACT obligations.

American Forest & Paper Association Releases September 2020 Printing-Writing Monthly Report

According to the report, total printing-writing paper shipments decreased 21 percent in September compared to September 2019. U.S. purchases of total printing-writing papers decreased 20 percent in September compared to the same month last year. Total printing-writing paper inventory levels decreased seven percent when compared to August 2020. Uncoated free sheet (UFS) paper shipments decreased 19 percent compared to September 2019 while the inventory level decreased six percent compared to August 2020. UFS imports and exports both decreased compared to August 2019, down 18 percent and 40 percent respectively. U.S. purchases of coated free sheet (CFS) papers in September decreased 12 percent compared to last September while the inventory level decreased 10 percent compared to August 2020. CFS imports and exports both decreased compared to August 2019, down 36 percent and 27 percent respectively. Coated mechanical (CM) paper shipments decreased 31 percent compared to September 2019 while the inventory level increased two percent compared to August 2020. CM imports decreased 30 percent while exports increased five percent in August 2020. U.S. purchases of uncoated mechanical (UM) papers in September decreased 28 percent compared to last September while the inventory level decreased eight percent compared to August 2020. UM imports and exports both decreased compared to August 2019, down 15 percent and 44 percent respectively.
Back To Top
×Close search
Search