Slide 1: First Quarter 2017 Financial Presentation Materials
First Quarter 2017 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 performa
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures These presentation materials contain certain non-GAAP financial measures, including EBITDA, adjusted free cash flows, pro forma operating income, pro forma net income and adjusted net debt. These non-GAAP measures are reconciled to each of their respective most directly c
Slide 4: Financial Highlights
Financial Highlights ($ Millions) First Quarter Ended 2017 2016 Sales $ 201 $ 218 Operating Income 26 32 Net Income 10 21 Pro Forma Net Income1 10 15 EBITDA1 48 63 Pro Forma EBITDA1 48 54 Diluted Earnings per Share $ 0.15 $ 0.49 Pro Forma Net Income per Share1 $ 0.15 $ 0.36 1 Non-GAAP measures (see
Slide 5: Operating Income - Variance Analysis
Operating Income - Variance Analysis ($ Millions) Operating Income 32 (7) 26 Three Months Ended (3) 6 (2) Operating Income 291 Pro Forma Adjustments 0 1Q 2016 Price Volume/Sales Mix Costs SG&A and Other 1Q 2017 Operating Income 1 See Appendix for pro forma adjustments detail and reconciliations. Pri
Slide 6: Selected Financial and Operating Information
Selected Financial and Operating Information Three Months Ended March 25, 2017 March 26, 2016 Sales Volume, thousands of metric tons Cellulose specialties 107 106 Commodity products 59 75 Total 166 181 Average Sales Price, $ per metric ton Cellulose specialties $ 1,473 $ 1,555 Commodity products $ 7
Slide 7: Cost Improvement Initiatives
Cost Improvement Initiatives ($ Millions) 25 4 Year Total Cost Improvement 30 $125M - $140M 50 35 2015 2016 2017 2018* White Space Achieved Targeted Total $92 million in Cost Improvements achieved since 2014 * Breakdown of expected future cost savings on a run-rate basis included for illustrative pu
Slide 8: Capital Resources & Liquidity
Capital Resources & Liquidity ($ Millions) Three Months Ended March 25, 2017 March 26, 2016 Cash Provided by Operating Activities $ 38 $ 74 Cash Used for Investing Activities (14) (20) Cash Provided by (Used for) Financing Activities (5) (45) Adjusted Free Cash Flows* 24 54 Debt Principal Payments $
Slide 9: 2017 Guidance
2017 Guidance ▪ Cellulose specialties (“CS”) prices 3% to 4% below 2016 average prices primarily due to lower acetate pricing and mix ▪ CS volumes flat to slightly down compared to 2016 due to the timing of revenue recognition ▪ Commodity sales volumes higher (depending on viscose/absorbent material
Slide 10: Outlook
Outlook ▪ Cellulose specialties — Acetate-tow growth flat — Emerging opportunities in other acetate product end-uses — Volume growth opportunities in ethers, tire cord & filtration — Competitive supply environment given strong U.S. dollar ▪ Commodity viscose markets remain strong due to underlying d
Slide 11: Strategic Pillars of Growth
Strategic Pillars of Growth Drive Future Growth and Stockholder Value Cost Market New Products Acquisitions Transformation Optimization EBITDA Growth Stockholder Value 11
Slide 12: Appendix
RAYONIER Advanced Materials. Appendix
Slide 13: 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 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) Three Months Ended March 25, 2017 March 26, 2016 EBITDA Reconciliation Net Income $ 10 $ 21 Depreciation and amortization 22 22 Interest expense, net 8 9 Income tax expense 8 11 EBITDA $ 48 $ 63 Gain on debt extinguishment — (9) Pro Forma EBITDA $ 48
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) March 25, 2017 March 26, 2016 Adjusted Net Debt Reconciliation Current maturities of long-term debt $ 10 $ 8 Long-term debt & capital lease obligation 771 797 Total debt $ 781 $ 805 Original issue discount and debt issuance costs 8 10 Cash and cash eq
Slide 16: Reconciliation of Reported to Pro Forma Earnings
Reconciliation of Reported to Pro Forma Earnings ($ Millions, except per share amounts) Three Months Ended March 25, 2017 March 26, 2016 Per Diluted Per Diluted Pro Forma Net Income: $ Share $ Share Net Income $ 10 $ 0.15 $ 21 $ 0.49 Gain on debt extinguishment — — (9) (0.21) Tax effects of Pro Form
Slide 17: Reconciliation of Guided Non-GAAP Measures
Reconciliation of Guided Non-GAAP Measures ($ Millions, except per share amounts) Minimum Maximum 2017 Net Income Guidance $ 41 $ 48 Income tax expense 23 26 Interest expense, net 37 37 Depreciation and amortization 89 89 2017 EBITDA Guidance $ 190 $ 200 Minimum Maximum 2017 Operating Cash Flows Gui
Slide 18: Debt Maturity Schedule
Debt Maturity Schedule Millions $800 4 $700 251 $600 29 $500 $400 $300 506 240 509 $200 $100 8 11 19 3 $0 Total 2017 2018 2019 2020 2021 Thereafter Senior Notes 5.5% Term A-1 Loan Facility Term A-2 Loan Facility Capital Lease Obligation 18