Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q1 2015 Earnings Presentation
15 slides from Rayonier Advanced Materials's earnings presentation, May 1, 2015
Slide 1: First Quarter 2015 Financial Presentation Materials
First Quarter 2015 Financial Presentation Materials
Slide 2: Safe Harbor
Safe Harbor 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 Rayonier Advanced Materials’ future events, developments or financial or operational performan
Slide 3: Financial Highlights
Financial Highlights ($ Millions – Except EPS) Quarter Ended Profitability 1Q 2015 4Q 2014 1Q 2014 Sales $ 221 $ 248 $ 243 Operating income (loss) 24 (28) 43 Pro forma operating income* 24 47 46 Net income (loss) 11 (23) 31 Pro forma net income* 11 26 33 * Non-GAAP measures (see Appendix for definit
Slide 4: Pro Forma Operating Income 4Q 2014 to 1Q 2015
Pro Forma Operating Income 4Q 2014 to 1Q 2015 ($ Millions) $50 (7) $45 (15) $40 $35 $30 (1) $25 47 $20 $15 24 $10 $5 $0 4Q 2014 Price Volume / Costs 1Q 2015 Sales Mix Price variance is calculated for all products. Volume variance is calculated on a contribution margin basis. 4 Rayonier Advanced Mate
Slide 5: Pro Forma Operating Income 1Q 2014 to 1Q 2015
Pro Forma Operating Income 1Q 2014 to 1Q 2015 ($ Millions) $50 (17) $45 $40 $35 0 (5) $30 $25 46 $20 $15 24 $10 $5 $0 1Q 2014 Price Volume / Costs 1Q 2015 Sales Mix Price variance is calculated for all products. Volume variance is calculated on a contribution margin basis. 5 Rayonier Advanced Materi
Slide 6: Raising 2015 Full Year Guidance
Raising 2015 Full Year Guidance • CS volumes comparable with 2014 / 2013 levels • CS prices 7-8% below 2014 average prices • Commodity sales volumes higher than 2014 • Increasing EBITDA guidance to $210 - $225 million (from $200 - $220 million) 6 Rayonier Advanced Materials Confidential and Propriet
Slide 7: Capital Resources and Liquidity
Capital Resources and Liquidity ($ Millions) Three Months Ended 3/28/2015 3/31/2014 Cash Provided by Operating Activities $ 56 $ 55 Cash Used for Investing Activities (24) (21) Cash Used for Financing Activities (20) (34) EBITDA* 46 64 Pro forma EBITDA* 46 67 Adjusted Free Cash Flow * 32 33 Debt $ 9
Slide 8: 2015 Capital Allocation Strategies
2015 Capital Allocation Strategies • Reduce debt / increase financial flexibility • Invest in our business • Fund modest dividend 8 Rayonier Advanced Materials Confidential and Proprietary Information
Slide 9: 2015 Focus and Initiatives
2015 Focus and Initiatives • Reduce costs and enhance profitability • Efficient and reliable operations • Discipline of continuous improvement • Focus on working capital • Asset optimization • Review and match assets to market conditions • Drive incremental sales and profits from our assets, specifi
Slide 10: Appendix
RAYONIER Advanced Materials. Appendix
Slide 11: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative to the ass
Slide 12: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Three Months Ended 3/28/2015 3/31/2014 EBITDA Reconciliation Net Income $ 11 $ 31 Depreciation & amortization 22 21 Interest, net 9 - Income tax expense 4 12 EBITDA $ 46 $ 64 One-time separation and legal costs - 3 Pro Forma EBITDA $ 46 $ 67 Adjusted Free Cash Flo
Slide 13: Reconciliation of Reported to Pro Forma Earnings
Reconciliation of Reported to Pro Forma Earnings ($ Millions, except per share amounts) Three Months Ended December 31, 2014 March 31, 2014 $ EPS $ EPS Operating income (loss) $ (28) $ 43 One-time separation and legal costs 2 3 Environmental reserve and impairment adjustments 76 - Insurance settleme
Slide 14: Selected Financial and Operating Information
Selected Financial and Operating Information Three Months Ended March 28, December 31, March 31, 2015 2014 2014 Sales Volume, thousands of metric tons Cellulose specialties 107 123 113 Commodity products 58 46 50 Total 165 169 163 Sales Price, $ per metric ton Cellulose specialties $ 1,667 $ 1,735 $
Slide 15: Debt Maturity Schedule
Debt Maturity Schedule Millions $1,000 $900 $800 288 $700 274 $600 88 $500 $400 Principal Repayments of Term Loans $300 550 550 $200 $100 3* 6 9 10 11 63 $- Total Remaining 2016 2017 2018 2019 Thereafter 2015 Senior Notes 5.5% Term A-1 Loan Facility Term A-2 Loan Facility Revolver ($250m Line of Cre
Rayonier Advanced Materials — Q1 2015 Earnings Presentation on 6ix