Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q4 2024 Earnings Presentation
28 slides from Rayonier Advanced Materials's earnings presentation, Mar 6, 2025
Slide 1: Fourth Quarter & Full Year 2024 Financial Presentation Materials
Fourth Quarter & Full Year 2024 Financial Presentation Materials March 6, 2025
Slide 2: Safe Harbor
Safe Harbor 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 future events, developments or financial or operational performan
Slide 3: Non-GAAP Financial Measures
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, adjusted net debt, and net secured debt. The Company believes these n
Slide 4: 2024 Financial Highlights
2024 Financial Highlights Revenue by Segment/Product ⎔ Revenue of $1,630 million; -$13 million from 2023 ⎔ Operating Income of $39 million; +$104 million from 2023 Paperboard 14% ⎔ Adjusted Free Cash Flow generation of $128 million; +$75 million from 2023 ⎔ Adjusted EBITDA of $222 million; +$83 mill
Slide 5: High Purity Cellulose
High Purity Cellulose 100 Operating Income Bridge 80 76 Quarter Ended Year Ended 60 Key 40 Dec 31, Sep 28, Dec 31, Dec 31, Dec 31, $ millions Financials 20 2024 2024 2023 2024 2023 0 ($ millions) (20) Net Sales $338 $325 $347 $1,302 $1,313 (40) (42) Operating (60) 31 (6) (49) 76 (42) Income (80) (1)
Slide 6: Paperboard
Paperboard Quarter Ended Year Ended Operating Income Bridge 45 Key Dec 31, Sep 28, Dec 31, Dec 31, Dec 31, 40 37 Financials 35 31 2024 2024 2023 2024 2023 30 $ millions ($ millions) 25 20 Net Sales $60 $55 $55 $228 $219 15 Operating 10 4 7 8 31 37 5 Income 0 Adjusted 2023 Price Volume / Cost CEWS SG
Slide 7: High-Yield Pulp
High-Yield Pulp Quarter Ended Year Ended Operating Income Bridge Key Dec 31, Sep 28, Dec 31, Dec 31, Dec 31, 5 Financials 2024 2024 2023 2024 2023 0 $ millions ($ millions) (5) (3) Net Sales $32 $28 $25 $127 $136 Operating (10) (8) (8) - (5) (8) (3) Income (15) Adjusted 2023 Price Volume / Cost CEWS
Slide 8: Consolidated Operating Income Bridge 2023 to 2024
Consolidated Operating Income BRIDGE 2023 TO 2024 60 40 39 ⎔ Higher Cellulose Specialties pricing offset by 20 lower prices in HPC Commodities, High-Yield Pulp, and Paperboard 0 ⎔ Favorable sales mix from increased Cellulose Specialties volumes, more than offsetting $ millions (20) lower HPC commodi
Slide 9: Capital Structure & Liquidity
Total Liquidity Capital Structure & Liquidity Cash $141 $276 $125 Factoring (France) Million ABL (North America) ⎔ Adjusted Net Debt of $653 million, $68 million reduction from 2023 $10 – Net Secured debt of $625 million, $73 million reduction from 2023 Amount ⎔ $276 million of liquidity, including
Slide 10: 2025 Initiatives
2025 Initiatives ⎔ Implement New Segment Reporting ⎔ Optimize Assets – New ERP systems and infrastructure will support new – Reduce earnings volatility and increase profit margins by reporting segments in Q1 2025 minimizing exposure to commodity markets – The new segments include Cellulose Specialti
Slide 11: Evaluating High-Return Strategic CapEx Opportunities
Evaluating High-Return Strategic CapEx Opportunities STRICT HURDLE RATE: MINIMUM >30% ROE WITH <2-YEAR PAYBACK C ($ Millions) 2025 Strategic 2025 Ext. 2025 Strategic 0Total Strategic Total Ext. Total Strategic CapEx oFull Production EBITDA Benefit (1) Project Aera 0 CapEx Financing CapEx, net 2 CapE
Slide 12: 2025 Guidance
2025 Guidance EBITDA: $215-$235M | ADJUSTED FREE CASH FLOW: $25-$45M ($ Millions) $215-235 Capital allocation $(93) decision to repay debt or invest in high return strategic capital projects $5 $37-57 $0 $25-45 $(85) $(14) $(3) (1) (2) (3) Adjusted EBITDA Cash Interest Maintenance Recurring Free Env
Slide 13: Market Outlook
Market Outlook Cellulose ⎔ 2025 cellulose specialties average sales prices expected to increase mid-single-digit percentage ⎔ Sales volumes expected to decline slightly due to the 2024 bridge volume uplift from the Temiscaming suspension Specialties ⎔ Acetate demand impacted by supply chain destocki
Slide 14: Potential Tariffs: Impact & Mitigation Summary
Potential Tariffs: Impact & Mitigation Summary Cellulose Specialties Cellulose Commodities Paperboard Exposed Market ⎔ China ⎔ China ⎔ US Coated Paperboard ⎔ Retaliatory Tariff from China ⎔ Retaliatory Tariff from China ⎔ US Tariff Implementation Revenue Exposed ⎔ ~$160 Million ⎔ ~$110 Million ⎔ ~$1
Slide 15: Reducing Net Leverage via EBITDA Growth & Debt Reduction
Reducing Net Leverage via EBITDA Growth & Debt Reduction 18.0% 10.0x 17% 10.0x 16.0% 15% 13.6% 14% 14.0% 13% Net Debt/Adjusted EBITDA 7.5x 12.0% EBITDA Margin 10.3% 9.0% 10.0% 8.5% 5.0x 5.4x 5.2x 7.4% 8.0% 4.0x $1,095 4.2x 6.0% $937 2.9x ~ 2.9x $859 2.7x < 2.5x 2.5x $797 $778 ~ 2.7x$760 4.0% 2.0% 0.
Slide 16: Appendix
Appendix
Slide 17: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA Net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adj
Slide 18: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ MILLIONS) 18
Slide 19: Consolidated Statements of Operations
Consolidated Statements of Operations ($ MILLIONS) 19
Slide 20: Consolidated Balance Sheets
Consolidated Balance Sheets ($ MILLIONS) 20
Slide 21: Reconciliation of Quarterly EBITDA by Segment
Reconciliation of Quarterly EBITDA by Segment ($ MILLIONS) 21
Slide 22: Reconciliation of Annual EBITDA by Segment
Reconciliation of Annual EBITDA by Segment ($ MILLIONS) 22
Slide 23: Reconciliation of EBITDA Guidance
Reconciliation of EBITDA Guidance ($ MILLIONS) 23
Slide 24: Reconciliation of Adjusted Free Cash Flow
Reconciliation of Adjusted Free Cash Flow ($ MILLIONS) 24
Slide 25: Reconciliation of Adjusted Free Cash Flow Guidance
Reconciliation of Adjusted Free Cash Flow Guidance ($ MILLIONS) 25
Slide 26: Reconciliation of Adjusted Net Secured Debt
Reconciliation of Adjusted Net Secured Debt ($ MILLIONS) 26
Slide 27: Reconciliation of Adjusted Income from Continuing Operations
Reconciliation of Adjusted Income from Continuing Operations ($ MILLIONS) 27
Slide 28: Commodity Prices Mixed
Commodity Prices Mixed Viscose Delivered to China Fluff Delivered to North America 1,000 905 900 905 950 955 965 2,300 2,138 890 1,977 1,890 850 1,833 1,873 1,832 900 1,747 1,755 PRICE ($ / MT) PRICE ($ / MT) 800 1,800 700 1,300 600 500 800 400 300 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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