Rayonier Advanced Materials Inc. · NYSE:RYAM
Rayonier Advanced Materials — Q3 2015 Earnings Presentation
13 slides from Rayonier Advanced Materials's earnings presentation, Oct 29, 2015
Slide 1: Third Quarter 2015 Financial Presentation Materials
Third 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) Quarter Ended Nine Months Ended 3Q 2015 3Q 2014 3Q 2015 3Q 2014 Sales $ 257 $ 254 $ 700 $ 710 Operating Income 58 42 90 91 Pro Forma Operating Income* 60 47 118 135 Net Income 32 19 42 55 Pro Forma Net Income* 33 22 60 80 Pro Forma Net Income per Share* $ 0.78 $ 0.5
Slide 4: Pro Forma Operating Income - Variance Analysis
Pro Forma Operating Income - Variance Analysis ($ Millions) 21 (1) (17) 10 60 47 (49) 27 (6) 11 135 118 Price variance is calculated for all products. Volume variance is calculated on a contribution margin basis. 4
Slide 5: Selected Financial and Operating Information
Selected Financial and Operating Information Three Months Ended Nine Months Ended September September September September 26, 2015 27, 2014 26, 2015 27, 2014 Sales Volume, thousands of metric tons Cellulose specialties 133 129 352 356 Commodity products 61 39 174 102 Total 194 168 526 458 Sales Pric
Slide 6: Capital Resources & Liquidity
Capital Resources & Liquidity ($ Millions) Nine Months Ended September 26, 2015 September 27, 2014 Cash Provided by Operating Activities $ 152 $ 128 Cash Used for Investing Activities (60) (76) Cash Used for Financing Activities (58) (24) EBITDA* 155 153 Pro Forma EBITDA* 183 197 Adjusted Free Cash
Slide 7: Revised 2015 Guidance
Revised 2015 Guidance ⦁ CS volumes comparable with 2014 levels ⦁ CS Prices 7 – 8% below 2014 average prices ⦁ Commodity sales volumes higher than 2014 ⦁ Pro forma EBITDA of approximately $230 million ⦁ Expected cost savings of at least $30 million ⦁ CapEx of approximately $80 million 7
Slide 8: 2015 Focus and Initiatives
2015 Focus and Initiatives ⦁ Reduce costs and enhance profitability ⦁ Significant cost savings initiatives ⦁ Efficient and reliable operations ⦁ Discipline of continuous improvement ⦁ Focus on cash generation and debt repayment ⦁ Asset optimization ⦁ Review and match assets to market conditions ⦁ Dr
Slide 9: Appendix
RAYONIER Advanced Materials. Appendix
Slide 10: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative to the ass
Slide 11: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ($ Millions) Nine Months Ended September 26, 2015 September 27, 2014 EBITDA Reconciliation Net Income $ 42 $ 55 Depreciation and amortization 65 62 Interest expense, net 27 13 Income tax expense 21 23 EBITDA $ 155 $ 153 Non-cash impairment charge 28 — Environmenta
Slide 12: Reconciliation of Reported to Pro Forma Earnings
Reconciliation of Reported to Pro Forma Earnings ($ Millions, except per share amounts) Three Months Ended Nine Months Ended September 26, 2015 June 27, 2015 September 27, 2014 September 26, 2015 September 27, 2014 Per Per Per Per Per Pro Forma Operating Income and Diluted Diluted Diluted Diluted Di
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule Millions 286 274 57 550 550 2 8 10 11 3* 35 * $3 million of Term A-2 paid in 2019 13
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