Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q1 2022 Earnings Presentation
21 slides from Rayonier Advanced Materials's earnings presentation, May 3, 2022
Slide 1: First Quarter 2022 Financial Presentation Materials
First Quarter 2022 Financial Presentation Materials May 3, 2022
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 Rayonier Advanced Materials’ future events, developments, or financ
Slide 3: Safe Harbor
Safe Harbor Regulatory Risks Our business is subject to extensive environmental laws, regulations and permits that may restrict or adversely affect how we conduct our business and our financial results. The Company considers and evaluates climate-related risk in three general categories: Regulatory,
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures These presentation materials contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted operating income (loss), adjusted income (loss) from continuing operations and adjusted net debt. These non-GAAP measures are re
Slide 5: Q1'22 Financial Highlights
Q1’22 Financial Highlights Revenue by Segment ◼ Revenue of $352 million from continuing operations; 6% up $33 million or 10% from Q1 2021 amid strong demand 15% ◼ Operating loss from continuing operations of $16 million; $352 $16 million down from Q1 2021 million ◼ $20 million of Adjusted EBITDA fro
Slide 6: Strategic Highlights
Strategic Highlights ◼ Further reliability and productivity improvements expected after significant investments in assets — Completed extensive planned maintenance outages in Jesup & Fernandina ◼ Represents 4 of 6 operating lines — Decided to accelerate Tartas planned maintenance outage from Q4 into
Slide 7: High Purity Cellulose
High Purity Cellulose $ Millions Operating Income/(Loss) Bridge Quarter Ended 50 Mar 26, Dec 31, Mar 27, 40 2022 2021 2021 30 Key Financials ($ millions) 20 10 6 Net Sales $281 $299 $250 (8) 0 Operating Income (Loss) (8) 1 6 (10) Adjusted EBITDA 16 33 35 (20) Q1'21 Price Volume / Cost SG&A / Q1'22 S
Slide 8: Paperboard
Paperboard Operating Income/(Loss) Bridge $ Millions Quarter Ended 16 Mar 26, Dec 31, Mar 27, 14 2022 2021 2021 12 Key Financials ($ millions) 10 8 6 Net Sales $54 $52 $48 6 6 Operating Income/(Loss) 6 3 6 4 Adjusted EBITDA 10 7 10 2 0 Q1'21 Price Volume / Cost SG&A / Q1'22 Sales Mix Other Paperboar
Slide 9: High-Yield Pulp
High-Yield Pulp High-Yield Pulp Operating Income/(Loss) Bridge Quarter Ended $ Millions Mar 26, Dec 31, Mar 27, 2 2022 2021 2021 Key Financials ($ millions) 1 0 (1) Net Sales $22 $29 $28 0 Operating Income/(Loss) 0 (1) (1) (1) Adjusted EBITDA 0 (1) 1 (2) Q1'21 Price Volume / Cost SG&A / Q1'22 Sales
Slide 10: Consolidated Operating Income/(Loss) from Continuing Operations
Consolidated Operating Income/(Loss) from Continuing Operations ($ Millions) Bridge Q1’21 to Q1’22 50 40 30 20 10 0 (16) 0 (10) (20) Q1'21 Price Volume / Cost SG&A / Q1'22 Sales Mix Other ◼ Operating loss of $16 million; down $16 million from prior year ◼ Improved prices across commodity High Purity
Slide 11: Capital Structure & Liquidity
Capital Structure & Liquidity ◼ $302 million of liquidity, including $100 $179 million of cash $302 — $43 million from sale of GFP shares million $179 in Q2 $23 ◼ Adjusted Net Debt of $755 million ◼ 2022 Capital Allocation focused on: Cash Factoring (France) ABL (North America) — $100 million of Mai
Slide 12: Market Assessment
Market Assessment ◼ Strong demand for cellulose specialties continues ◼ Implemented $146/ MT cost surcharge in Q2 and double-digit prices increases negotiated for cellulose specialties in 2022 with sales volume increases High Purity Cellulose ◼ Commodity prices are expected to improve to offset high
Slide 13: RYAM - Pure Nature - Pure Science
RYAM> Pure Nature - Pure Science
Slide 14: Appendix
RAYONIER Advanced Materials. Appendix
Slide 15: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative t
Slide 16: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ Millions) Three Months Ended Net sales March 26, December 31, March 27, (in millions) 2022 2021 2021 High Purity Cellulose $ 281 $ 299 $ 250 ......................................................................................................... Paperboa
Slide 17: Consolidated Statements of Income
Consolidated Statements of Income Three Months Ended ($ Millions) March 26, December 31, March 27, 2022 2021 2021 Net Sales $ 352 $ 374 $ 319 Cost of Sales (346) (361) (299) Gross Margin 6 13 20 Selling, general & administrative expenses (20) (24) (16) Other operating expense, net (2) (3) (4) Operat
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet ($ Millions) March 26, December 31, 2022 2021 Assets Cash and cash equivalents............................................................................................. $ 179 $ 253 Other current assets ....................................................................
Slide 19: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ Millions) Three Months Ended March 26, 2022 High Purity High-Yield Corporate & EBITDA by Segment (a): Cellulose Paperboard Pulp Other Total Income (loss) from continuing operations $ (7) $ 6 $ — $ (23) $ (24) Depreciation and amortization 23 4 — — 27 Interest e
Slide 20: Reconciliation of Adjusted Income
Reconciliation of Adjusted Income ($ Millions) Three Months Ended March 26, December 31, March 27, 2022 2021 2021 Per Per Per Diluted Diluted Diluted Loss from Continuing Operations (a): $ Share $ Share $ Share Loss from Continuing Operations $ (24) $ (0.38) $ (28) $ (0.45) $ (16) $ (0.26) Pension s
Slide 21: Commodity Prices Mixed
Commodity Prices Mixed Price ($ / MT) Viscose Price ($ / MT) Fluff 1,400 Delivered to China 2,000 Delivered to North America 1,770 1,200 1,105 1,800 1,647 1,640 1,618 1,020 940 935 1,600 1,000 905 1,400 1,285 800 1,183 1,175 1,165 675 635 615 1,200 600 1,000 400 800 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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