Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q4 2023 Earnings Presentation
25 slides from Rayonier Advanced Materials's earnings presentation, Feb 28, 2024
Slide 1: Fourth Quarter & Full Year 2023 Financial Presentation Materials
Fourth Quarter & Full Year 2023 Financial Presentation Materials February 28, 2024
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 RYAM’s future events, developments, or financial or operational pe
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: 2023 Financial Highlights
2023 Financial Highlights Revenue by Segment/Product ⎔ Revenue of $1,643 million; -$74 million from 2022 ⎔ Operating loss of $65 million, $62 million related to non-cash asset impairment Paperboard ⎔ Adjusted Free Cash Flow of $53 million, +$88 million from 2022 13% ⎔ Adjusted EBITDA of $139 million
Slide 5: High Purity Cellulose
High Purity Cellulose Quarter Ended Year Ended Operating Income Bridge Key Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, Financials 120 100 2023 2023 2022 2023 2022 80 $ MILLIONS 60 31 ($ millions) 40 20 Net Sales $347 $292 $384 $1,313 $1,336 0 (20) Operating (40) (49) (6) 10 (42) 31 (60) (42) Income 2022
Slide 6: Paperboard
Paperboard Quarter Ended Year Ended Operating Income Bridge Key Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, Financials 45 40 37 37 2023 2023 2022 2023 2022 35 $ MILLIONS 30 ($ millions) 25 20 Net Sales $55 $57 $67 $219 $250 15 10 Operating 5 8 13 9 37 37 0 Income 2022 Price Volume / Cost SG&A / 2023 Adj
Slide 7: High-Yield Pulp
High-Yield Pulp Quarter Ended Year Ended Operating Income Bridge Key Dec 31, Sep 30, Dec 31, Dec 31, Dec 31, Financials 20 16 2023 2023 2022 2023 2022 15 $ MILLIONS ($ millions) 10 Net Sales $25 $25 $58 $136 $160 5 (3) 0 Operating (5) (6) 12 (3) 16 (5) Income 2022 Price Volume / Cost SG&A / 2023 Adj
Slide 8: Consolidated Operating Income
Consolidated Operating Income BRIDGE 2022 TO 2023 ⎔ Higher sales prices in Cellulose Specialties ⎔ High Purity Cellulose commodity sales volumes increased but were more than offset by lower Cellulose Specialties, Paperboard, and High-Yield Pulp sales volumes due to market-driven demand weakness ⎔ La
Slide 9: Capital Structure & Liquidity
Total Liquidity Capital Structure & Liquidity ⎔ Adjusted Net Debt of $721 million; $14 million $76 Cash increase from 2022 $199 Factoring (France) – Total debt of $777 million; $76 million decrease $118 Million ABL (North America) from 2022 $5 – Net Secured debt of $698 million ⎔ $199 million of liq
Slide 10: 2024 Initiatives
2024 Initiatives ⎔ Opportunistically refinance Senior Notes ⎔ Asset optimization maturing in January 2026 before going current – Reduce commodity exposure and earnings volatility by – Continued focus on deleveraging through targeted debt concentrating all commodity viscose production into reduction
Slide 11: 2024 Guidance
2024 Guidance ADJUSTED FREE CASH FLOW GUIDANCE OF $20-40 MILLION ($ Millions) $180-200 Capital allocation (1) 85 decision to repay debt or invest in high return strategic capital projects 10 15 $20-40 0 0 10 5 85 (2) (1) Higher due to the timing of interest payments related to the 2023 refinance. (2
Slide 12: Market Assessment
Market Assessment High Purity Cellulose ⎔ 2024 cellulose specialties low single-digit percentage price increase versus 2023 prices ⎔ Cellulose specialties sales volumes to remain flat in 2024, with increased volumes from a competitor's plant closure offset by a favorable change in volumes due to cha
Slide 13: Net Debt/Adjusted EBITDA
Reducing Net Leverage via EBITDA Growth & Debt Reduction 12.5x 16.0% 16% 14% 14.0% 10.0x 10.0x 12.0% 11% Net Debt/Adjusted EBITDA 10.3% 10% 10.0% EBITDA Margin 7.5x 9.0% 8.5% 7.4% 8.0% 5.4x 5.2x 5.0x 6.0% 4.0x $1,095 3.5x 4.2x $937 4.0% $859 3.3x < 2.5x 2.5x $797 (1) $727 $700 2.0% ~$750 0.0x 0.0% 2
Slide 14: Appendix
Appendix
Slide 15: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA Net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adj
Slide 16: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ MILLIONS) 16
Slide 17: Consolidated Statements of Operations
Consolidated Statements of Operations ($ MILLIONS) 17
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets ($ MILLIONS) 18
Slide 19: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ MILLIONS) 19
Slide 20: Reconciliation of EBITDA Guidance
Reconciliation of EBITDA Guidance ($ MILLIONS) 20
Slide 21: Reconciliation of Adjusted Free Cash Flow
Reconciliation of Adjusted Free Cash Flow ($ MILLIONS) 21
Slide 22: Reconciliation of Adjusted Free Cash Flow Guidance
Reconciliation of Adjusted Free Cash Flow Guidance ($ MILLIONS) 22
Slide 23: Reconciliation of Adjusted Net Secured Debt
Reconciliation of Adjusted Net Secured Debt ($ MILLIONS) 23
Slide 24: Reconciliation of Adjusted Income from Continuing Operations
Reconciliation of Adjusted Income from Continuing Operations ($ MILLIONS) 24
Slide 25: Commodity Prices Mixed
Commodity Prices Mixed Viscose Delivered to China Fluff Delivered to North America 1,300 1,130 1,170 2,800 2,230 2,208 2,138 970 2,070 1,977 1,100 935 905 2,300 PRICE ($ / MT) PRICE ($ / MT) 900 850 895 1,770 1,747 1,755 900 1,800 700 1,300 500 800 300 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
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