Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q2 2022 Earnings Presentation
20 slides from Rayonier Advanced Materials's earnings presentation, Aug 4, 2022
Slide 1: Second Quarter 2022 Financial Presentation Materials
Second Quarter 2022 Financial Presentation Materials August 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 RYAM’s future events, developments, or financial or operational per
Slide 3: Safe Harbor
Safe Harbor Business and Operational Risks (continued): We are dependent upon attracting and retaining key personnel, the loss of whom could adversely affect our business; Failure to develop new products or discover new applications for our existing products, or our inability to protect the intellec
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, adjusted income (loss) from continuing operations and adjusted net debt. These non-GAAP measures are reconcile
Slide 5: Near-Term Initiatives
Near-Term Initiatives ◼ Opportunistically refinance Senior Notes maturing in June 2024 — Improved balance sheet through $43 million sale of shares in GFP and repaid $20 million of Senior Notes ◼ Completed extensive planned maintenance outages in all facilities — Improved productivity through increas
Slide 6: Q2'22 Financial Highlights
Q2’22 Financial Highlights ◼ Revenue of $399 million from continuing operations; up $58 million or 17% from Q2 2021 Revenue by Segment ◼ Operating loss from continuing operations of $3 million; 15% $4 million lower than Q2 2021 10% $399 ◼ $34 million of Adjusted EBITDA from continuing operations; Mi
Slide 7: High Purity Cellulose
High Purity Cellulose $ Millions Operating Income/(Loss) Bridge Quarter Ended 70 Key Financials Jun 25, Mar 26, Jun 26, 60 2022 2022 2021 50 ($ millions) 40 30 Net Sales $302 $281 $255 20 Operating Income (Loss) 7 (8) 11 11 7 10 Adjusted EBITDA 36 16 38 0 Q2'21 Price Volume / Cost SG&A / Q2'22 Sales
Slide 8: Paperboard
Paperboard Operating Income/(Loss) Bridge Quarter Ended $ Millions 16 Key Financials Jun 25, Mar 26, Jun 26, 2022 2022 2021 12 10 ($ millions) 8 Net Sales $63 $54 $57 Operating Income/(Loss) 10 6 2 4 2 Adjusted EBITDA 14 10 7 0 Q2'21 Price Volume / Cost SG&A / Q2'22 Sales Mix Other Paperboard - Volu
Slide 9: High-Yield Pulp
High-Yield Pulp Operating Income/(Loss) Bridge Quarter Ended $ Millions Key Financials Jun 25, Mar 26, Jun 26, 10 2022 2022 2021 8 ($ millions) 6 Net Sales $40 $22 $37 4 Operating Income/(Loss) (2) - 1 2 1 Adjusted EBITDA - - 1 (2) 0 (2) Q2'21 Price Volume / Cost SG&A / Q2'22 Sales Mix Other High-Yi
Slide 10: Consolidated Operating Income/(Loss) from Continuing Operations
Consolidated Operating Income/(Loss) from Continuing Operations ($ Millions) Bridge Q2’21 to Q2’22 70 60 50 40 30 20 10 1 (3) 0 (10) Q2'21 Price Volume / Cost SG&A / Q2'22 Sales Mix Other ◼ Operating loss of $3 million; down $4 million from prior year ◼ Improved prices across commodity High Purity C
Slide 11: Capital Structure & Liquidity
Capital Structure & Liquidity ◼ $274 million of liquidity, including $108 $148 million of cash $274 $148 — Repaid $20 million of Sr Notes million — $43 million from sale of GFP shares $18 ◼ Adjusted Net Debt of $764 million ◼ 2022 Capital Allocation focused on: — $140-150 million of CapEx Cash Facto
Slide 12: Market Assessment
Market Assessment ◼ Strong demand to continue for High Purity Cellulose ◼ Double-digit price increases with higher sales volume negotiated for cellulose specialties in 2022, plus $146/ MT cost surcharge implemented in Q2 High Purity Cellulose ◼ Commodity prices remain elevated ◼ Extensive planned fa
Slide 13: Appendix
Appendix Section
Slide 14: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. EBITDA is a non- GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative
Slide 15: Net Sales and Operating Income by Segment
Net Sales and Operating Income by Segment ($ Millions) Three Months Ended Net sales June 25, March 26, June 26, (in millions) 2022 2022 2021 High Purity Cellulose $ 302 $ 281 $ 255 ......................................................................................................... Paperboard 63
Slide 16: Consolidated Statements of Income
Consolidated Statements of Income ($ Millions) Three Months Ended June 25, 2022 March 26, 2022 June 26, 2021 Net Sales $ 399 $ 352 $ 341 Cost of Sales (372) (346) (319) Gross Margin 27 6 22 Selling, general & administrative expenses (28) (20) (18) Foreign exchange gain (loss) 2 (1) (2) Other operati
Slide 17: Consolidated Balance Sheet
Consolidated Balance Sheet ($ Millions) June 25, December 31, 2022 2021 Assets Cash and cash equivalents $ 148 $ 253 Other current assets .................................................................................................................................... 554 523 Property, plant and e
Slide 18: Reconciliation of EBITDA by Segment
Reconciliation of EBITDA by Segment ($ Millions) Three Months Ended June 25, 2022 High Purity High-Yield Corporate & EBITDA by Segment (a): Cellulose Paperboard Pulp Other Total Income (loss) from continuing operations $ 6 $ 11 $ (1) $ (41) $ (25) Depreciation and amortization 30 3 1 — 34 Interest e
Slide 19: Reconciliation of Adjusted Income
Reconciliation of Adjusted Income ($ Millions) Three Months Ended June 25, March 26, June 26, 2022 2022 2021 Income (Loss) from Continuing Per Diluted Per Diluted Per Diluted Operations (a): $ Share $ Share $ Share Income (Loss) from Continuing Operations $ (25) $ (0.39) $ (24) $ (0.38) $ 8 $ 0.13 P
Slide 20: Commodity Prices Mixed
Commodity Prices Mixed Price ($ / MT) Viscose Price ($ / MT) Fluff 1,400 Delivered to China 2,200 Delivered to North America 2,070 1,130 * 2,000 1,200 1,105 1,770 1,020 1,800 1,647 1,640 1,618 940 935 1,000 905 1,600 1,400 1,285 800 675 1,175 1,165 615 1,200 600 1,000 400 800 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
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