Latest news with #DeLyleBloomquist
Globe and Mail
21 hours ago
- Business
- Globe and Mail
RYAM Leadership to Highlight Growth Strategy at August Investor Conference and Roadshow
Rayonier Advanced Materials Inc. (NYSE: RYAM) (the 'Company'), the global leader in High Purity Cellulose, today announced that President and Chief Executive Officer De Lyle Bloomquist and Chief Financial Officer and Senior Vice President Finance Marcus Moeltner will engage with investors at two events later this month — the 16th Annual Midwest IDEAS Investor Conference and a Toronto Investor Roadshow. These events will provide investors direct access to RYAM's leadership and insight into the Company's strategic priorities, operational execution, and market outlook. Event Details: 16th Annual Midwest IDEAS Investor Conference Presenter: De Lyle Bloomquist, President and CEO Date: August 26, 2025 Time: 8:55 AM (EST) Webcast Registration: Link For questions or meeting requests, please contact InvestorRelations@ About RYAM RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. RYAM's specialized assets, capable of creating the world's leading high purity cellulose products, are also used to produce biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The Company also manufactures products for the paper and packaging markets. With manufacturing operations in the U.S., Canada and France, RYAM generated $1.6 billion of revenue in 2024. More information is available at 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' or future or expected events, developments, or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "should," "expect," "estimate," "believe," "intend," "anticipate," and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events, and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained. It is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law.
National Post
21 hours ago
- Business
- National Post
RYAM Leadership to Highlight Growth Strategy at August Investor Conference and Roadshow
Article content JACKSONVILLE, Fla. — Rayonier Advanced Materials Inc. (NYSE: RYAM) (the 'Company'), the global leader in High Purity Cellulose, today announced that President and Chief Executive Officer De Lyle Bloomquist and Chief Financial Officer and Senior Vice President Finance Marcus Moeltner will engage with investors at two events later this month — the 16th Annual Midwest IDEAS Investor Conference and a Toronto Investor Roadshow. Article content These events will provide investors direct access to RYAM's leadership and insight into the Company's strategic priorities, operational execution, and market outlook. Article content Event Details: Article content 16th Annual Midwest IDEAS Investor Conference Presenter: De Lyle Bloomquist, President and CEO Date: August 26, 2025 Time: 8:55 AM (EST) Webcast Registration: Link Article content About RYAM Article content RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. RYAM's specialized assets, capable of creating the world's leading high purity cellulose products, are also used to produce biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The Company also manufactures products for the paper and packaging markets. With manufacturing operations in the U.S., Canada and France, RYAM generated $1.6 billion of revenue in 2024. More information is available at Article content Forward-Looking Statements Article content 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' or future or expected events, developments, or financial or operational performance or results, are 'forward-looking statements' made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as 'may,' 'will,' 'should,' 'expect,' 'estimate,' 'believe,' 'intend,' 'anticipate,' and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events, and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained. It is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Article content Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law. Article content Article content Article content Article content Article content Contacts Article content Media Ryan Houck 904-357-9134 Article content Article content Article content
Business Wire
05-08-2025
- Business
- Business Wire
RYAM Reports Second Quarter 2025 Results
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Rayonier Advanced Materials Inc. (NYSE:RYAM) (the 'Company') today reported results for its second quarter ended June 28, 2025. 'Our second quarter results were impacted by a series of extraordinary and largely non-recurring challenges, including tariff volatility, operational disruptions and significant non-cash charges,' said De Lyle Bloomquist, President and CEO of RYAM. 'These factors, while meaningful in the short term, are now largely behind us. As a result, we revised our 2025 Adjusted EBITDA guidance to $150 to $160 million. Importantly, these headwinds peaked in the second quarter and we're already seeing tangible signs of stabilization and recovery entering the second half of the year. 'Looking ahead, we expect that our long-term plan remains on track to nearly double our EBITDA over the next two years relative to our revised 2025 outlook. This confidence is grounded in the cessation of extraordinary headwinds encountered in 2025 and a clear set of growth drivers. We are actively addressing these near-term headwinds and expect to capture significant upside from our Cellulose Specialties strategy, investments into Biomaterials and cost reduction initiatives. In addition, we have initiatives in place to restore our Paperboard and High-Yield Pulp businesses to historical levels of profitability and position it for divestiture in 2026. With disciplined execution and a solid balance sheet, we are well-positioned to capture these opportunities and unlock substantial, sustainable shareholder value. The temporary setbacks we've faced this year do not alter the fundamentals of our business or the trajectory we are on—they simply reinforce the importance and impact of the strategy we are executing,' concluded Mr. Bloomquist. Second Quarter 2025 Financial Results The Company reported a net loss of $363 million, inclusive of a $337 million non-cash deferred tax asset write-off, or $(5.44) per diluted share, for the quarter ended June 28, 2025 compared to net income of $11 million, or $0.17 per diluted share, for the prior year quarter. Loss from continuing operations for the quarter ended June 28, 2025 was $366 million, inclusive of the $337 million non-cash deferred tax asset write-off, or $(5.48) per diluted share, compared to income from continuing operations of $8 million, or $0.12 per diluted share, for the prior year quarter. Beginning in January 2025, the Company reorganized its former High Purity Cellulose operating segment into three separate businesses: Cellulose Specialties, Biomaterials and Cellulose Commodities. No changes were made to the composition of the Paperboard and High-Yield Pulp operating segments. Prior period segment results have been recast to align with this new segment reporting structure. Net sales were comprised of the following for the periods presented: Operating income (loss) was comprised of the following for the periods presented: Three Months Ended (in millions) June 28, 2025 March 29, 2025 June 29, 2024 Cellulose Specialties $ 29 $ 31 $ 50 Biomaterials 1 2 1 Cellulose Commodities (9 ) (13 ) (21 ) Paperboard — (2 ) 12 High-Yield Pulp (7 ) (7 ) 1 Corporate (15 ) (26 ) (15 ) Operating income (loss) $ (1 ) $ (15 ) $ 28 Expand Following the indefinite suspension of Temiscaming cellulose operations in the third quarter of 2024, certain infrastructure assets of the site's cellulose plant continue to run in support of the ongoing energy needs of the Paperboard and High-Yield Pulp operations. As such, beginning in the fourth quarter of 2024, the net impact of the custodial site costs being incurred and the sales of any electricity generated by the running of the cellulose plant assets are reflected within the operating results of the Paperboard and High-Yield Pulp businesses. Cellulose Specialties Net sales for the second quarter decreased $33 million, or 14 percent, compared to the same prior year quarter driven by a 15 percent decrease in sales volumes that was in line with expectations and due primarily to a pause in customer orders driven by uncertainty surrounding imposed tariffs, strong sales in the prior year quarter ahead of the indefinite suspension of Temiscaming cellulose operations in July 2024 and the impact of a labor strike at the Tartas cellulose plant in the current quarter. Partially offsetting the sales volume decrease was a 3 percent increase in sales prices. Operating income for the second quarter decreased $21 million, or 42 percent, compared to the same prior year quarter driven by the lower sales volumes, higher key input costs, lower production due to operational challenges and the labor strike at the Tartas cellulose plant, and the one-time prior year recognition of $3 million in CEWS benefit claims. Compared to the first quarter of 2025, net sales increased $7 million driven by a 3 percent increase in sales prices, with flat sales volumes. Operating income decreased $2 million primarily due to operational challenges and the labor strike at the Tartas cellulose plant in the current quarter, partially offset by the higher sales prices. Biomaterials Net sales for the second quarter decreased $2 million, or 25 percent, compared to the same prior year quarter driven by lower production due to operational challenges and the impact of the labor strike at the Tartas cellulose plant in the current quarter, which limited raw material supply due to the bioethanol facility's reliance on the Tartas cellulose plant for feedstock. Operating income for the second quarter was flat compared to the same prior year quarter as higher shared and ancillary service costs under the business's newly established cost structure were offset by lower production costs as a result of the aforementioned reductions in feedstock availability. Compared to the first quarter of 2025, net sales and operating income each decreased $1 million, impacted by the lower production due to the aforementioned reductions in feedstock availability. Cellulose Commodities Net sales for the second quarter decreased $26 million, or 31 percent, compared to the same prior year quarter driven by a 33 percent decrease in sales volumes due primarily to lower non-fluff commodity sales and the impact of the labor strike at the Tartas cellulose plant, partially offset by a 7 percent increase in sales prices driven by market supply dynamics for fluff. Operating loss for the second quarter improved $12 million, or 57 percent, compared to the same prior year quarter driven by lower non-fluff commodity losses, lower indefinite suspension charges and lower key input costs, partially offset by lower production due to operational challenges and the labor strike at the Tartas cellulose plant, and the one-time prior year recognition of $2 million in CEWS benefit claims. Compared to the first quarter of 2025, net sales decreased $16 million as sales volumes decreased 24 percent primarily driven by lower production due to operational challenges and the labor strike at the Tartas cellulose plant in the current quarter. These decreases were partially offset by a 6 percent increase in sales prices that was driven by market supply dynamics. Operating loss improved $4 million primarily due to the higher sales prices, partially offset by the lower sales volumes. Paperboard Net sales for the second quarter decreased $13 million, or 22 percent, compared to the same prior year quarter. Sales prices and volumes decreased 3 percent and 23 percent, respectively, driven by mix, shifting customer dynamics associated with tariff uncertainty and increased competitive activity due to increased EU imports and the start-up of new U.S. capacity. Operating results for the second quarter declined $12 million, or 100 percent, compared to the same prior year quarter driven by the lower sales, the impact of Temiscaming net custodial site costs and the one-time prior year recognition of $2 million in CEWS benefit claims. Compared to the first quarter of 2025, net sales decreased $2 million driven by an 8 percent decrease in sales volumes due to shifting customer dynamics associated with tariff uncertainty, partially offset by a 2 percent increase in sales prices. Operating results improved $2 million driven by lower production costs due to improved operations. High-Yield Pulp Net sales for the second quarter decreased $4 million, or 12 percent, compared to the same prior year quarter. Sales prices and volumes decreased 11 percent and 7 percent, respectively, driven by lower demand, including in China where demand for all grades of market pulp were down, continued oversupply in China and the timing of shipments, primarily related to shipping challenges to customers in India. Operating results for the second quarter declined $8 million compared to the same prior year quarter driven by the lower sales, higher logistics costs, the impact of Temiscaming net custodial site costs and the one-time prior year recognition of $2 million in CEWS benefit claims. Compared to the first quarter of 2025, net sales decreased $2 million and operating loss was flat driven by 2 percent and 13 percent decreases in sales prices and volumes, respectively, that were offset by lower key input costs. Corporate Operating loss for the second quarter was flat compared to the same prior year quarter as lower variable compensation costs and a decrease in costs related to the Company's ERP implementation were offset by unfavorable foreign exchange rates in the current quarter compared to favorable rates in the prior year quarter. Compared to the first quarter of 2025, operating loss improved $11 million driven by first quarter non-cash environmental reserves charges of $12 million and lower variable compensation costs, partially offset by unfavorable foreign exchange rates in the current quarter compared to the first quarter. Non-Operating Income & Expense Interest expense for the quarter ended June 28, 2025 increased $2 million compared to the same prior year quarter primarily driven by an increase in the average effective interest rate on debt. Total debt decreased $32 million from June 29, 2024 to June 28, 2025. Unfavorable foreign exchange rates during the quarter ended June 28, 2025 compared to favorable rates in the same prior year quarter resulted in a net unfavorable impact of $2 million. Income Taxes The Company determined that a valuation allowance is required against a substantial portion of its Canadian deferred tax assets, driven by weakness in the Paperboard and High-Yield Pulp businesses, resulting in the recognition of a non-cash tax expense of $337 million in the current quarter. This determination was made after considering all available evidence, with significant weight being given to evidence that can be objectively verified, such as recently incurred losses in the applicable jurisdiction, as required under U.S. GAAP. The valuation allowance does not impact the Company's legal right to use the deferred tax assets against cash taxes and future recognition will continue to be evaluated as market conditions evolve. The effective tax rate on the loss from continuing operations for the quarter ended June 28, 2025 was not meaningful as a result of the valuation allowance placed on the Company's Canadian deferred tax assets. Also driving the difference between the effective tax rate and the federal statutory rate of 21 percent were different statutory tax rates in foreign jurisdictions, valuation allowances on nondeductible U.S. interest expense, U.S. tax credits and nondeductible executive compensation. The effective tax rate on the income from continuing operations for the quarter ended June 29, 2024 was a benefit of 11 percent. This rate differed from the federal statutory rate of 21 percent primarily due to the release of certain tax reserves, return-to-accrual adjustments, excess deficit on vested stock compensation and changes in the valuation allowance on disallowed interest deductions. Discontinued Operations During the quarter ended June 28, 2025, the Company recorded pre-tax income from discontinued operations of $4 million related to the remaining CEWS benefit claims deferred since 2021. During the quarter ended June 29, 2024, the Company recorded pre-tax income from discontinued operations of $5 million related to CEWS benefit claims deferred since 2021 and a pre-tax loss of $1 million on the sale of its softwood lumber duty refund rights. Cash Flows & Liquidity The Company generated operating cash flows of $10 million during the six months ended June 28, 2025 driven by strong working capital management despite the significant decline in operating results. The Company used $75 million in investing activities during the six months ended June 28, 2025 related to net capital expenditures, which included $13 million of strategic capital spending. The Company had $1 million of net cash inflows from financing activities during the six months ended June 28, 2025 from net borrowings of long-term debt, partially offset by the repurchase of common stock and net repayments of short-term debt. The Company ended the second quarter with $202 million of global liquidity, including $71 million of cash, $116 million of borrowing capacity under the ABL Credit Facility and $15 million of availability under the France factoring facility. As of June 28, 2025, the Company's consolidated net secured leverage ratio was 3.8 times covenant EBITDA. Business Outlook The Company now expects full year 2025 Adjusted EBITDA to range between $150 million and $160 million, reflecting the impact of extraordinary and primarily non-recurring challenges encountered during the first half of the year. These included global trade disruptions, tariff-driven market volatility, operational challenges, softer demand in Paperboard and High-Yield Pulp, a non-cash environmental charge and foreign exchange headwinds. While these near-term pressures weighed on second quarter results, they are largely considered to have peaked in the period. Since May, order trends in Cellulose Specialties have improved month over month and operational performance across the Company's cellulose facilities has remained broadly stable. With signs of normalization emerging, RYAM is positioned to rebuild momentum in the second half of the year. Looking ahead, the Company expects to meaningfully grow EBITDA over the two years following 2025, supported by focused efforts to increase Cellulose Specialties sales volume from the expected market demand growth, expand Cellulose Specialties margins by increasing prices and investing in high return cost reduction projects and accelerate high-return investments in Biomaterials. These actions are core to RYAM's long-term strategy, which targets over $300 million in run-rate EBITDA by the end of 2027. The Company remains committed to disciplined capital allocation. As previously disclosed, RYAM began a process to explore the sale of its Paperboard and High-Yield Pulp businesses; however, given current market conditions and trade-related uncertainty, the process is now effectively on hold. The following segment outlooks reflect RYAM's current performance expectations for its operating businesses for the remainder of 2025. Cellulose Specialties Average cellulose specialties sales prices in 2025 are expected to increase by a mid single-digit percentage compared to the prior year. Sales volumes are anticipated to decline by a high single-digit percentage, reflecting tariff impacts, accelerated destocking of acetate and the absence of 2024 bridge volumes following the indefinite suspension of production at the Temiscaming plant. Acetate demand remains soft due to tariff-driven impacts, accelerated customer destocking and weaker global cigarette market trends. Ethers volumes are anticipated to improve, while demand for other cellulose specialties grades remains strong, supported by tight global supply conditions. Raw material input and logistics costs are expected to increase moderately year-over-year. All cellulose plants are currently running at expected operating rates. Overall, EBITDA is expected to approximate $232 million to $235 million for the full year 2025, subject to additional impacts from tariffs. Biomaterials The Company continues to evaluate investments in new green energy and renewable products to provide both increased end-market diversity and incremental profitability. The Company intends to proceed only with those projects that are expected to meet its investment hurdles: a minimum 30 percent return on equity and a less than two-year payback period for RYAM equity. In the fourth quarter of 2024, the Company secured green capital of €67 million, which allows it to advance the biomaterials strategy and further progress towards its goal of generating over $70 million of EBITDA from RYAM's Biomaterials business, inclusive of the projects summarized below: The Company's bioethanol facility in France is operational since the first quarter of 2024. The Company re-started its lignosulfonate powder plant in France in the first quarter of 2025. The Company continues to pursue an investment in a bioethanol facility in Fernandina Beach, Florida, similar to its bioethanol facility in France. While the City of Fernandina Beach recently denied the site plan application for this project, the Company believes the City erred in making its determination and is pursuing all available legal remedies. In expectation of a favorable outcome, the Company continues to advance engineering plans and explore potential commercial agreements. The Company is evaluating investments in crude tall oil facilities in Jesup, Georgia and Tartas and a prebiotics facility at the Jesup plant, and is currently working on permitting, engineering and commercial agreements for these new facilities. In July 2025, the Company received GRAS (generally recognized as safe) status for its prebiotics product with a letter of no objection from the U.S. Food and Drug Administration. The Company is a partner in AGE (Altamaha Green Energy, LLC), a start-up entity that aims to utilize renewable forestry waste and other biomass generally discarded as waste to generate green electricity for the State of Georgia from a new facility to be constructed adjacent to the Company's Jesup plant. Although the project remains in the development phase, AGE is actively evaluating the construction and financing requirements for the new facility. The Company recently signed Memoranda of Understanding with Verso Energy to explore electrofuel Sustainable Aviation Fuel (eSAF) opportunities at both its Jesup and Tartas facilities, and with GranBio to develop a pilot-scale SAF plant at the Jesup site. The Company expects to make final investment decisions on several of these projects in 2025. Overall, EBITDA is expected to approximate $8 million to $10 million for the full year 2025. Cellulose Commodities Chinese retaliatory tariffs continue to disrupt global fluff market dynamics, creating a mismatch between supply and demand. As a result, RYAM's production is being actively shifted toward non-fluff commodities until RYAM's new DWP (dissolving wood pulp) fluff product is fully qualified in China. While demand remains uncertain, RYAM will continue to adjust production mix to mitigate the impact of direct tariffs and related second-order effects. Raw material input and logistics costs are expected to increase moderately. Overall, EBITDA is expected to approximate a loss of $15 million for the full year 2025, subject to additional impacts from tariffs. Paperboard Paperboard sales volumes are expected to remain soft due to continued economic uncertainty and weaker customer demand. Additionally, prices are expected to decline year-over-year, reflecting increased competitive activity from new U.S. competitor capacity. Input costs are projected to rise as a result of higher purchased pulp prices, increased allocation of Temiscaming custodial site costs and ongoing tariff mitigation efforts. In response to ongoing market weakness and a softer sales outlook, the Company is idling Paperboard production for two weeks during the third quarter as a proactive measure to align inventory levels with demand and preserve cash flow. Overall, EBITDA is expected to approximate $20 million for the full year 2025. High-Yield Pulp High-Yield Pulp sales prices and volumes are expected to decline in 2025, driven primarily by continued oversupply in the Chinese market. Input costs are also projected to rise due to a higher allocation of custodial site costs at the Temiscaming facility. Given the ongoing market weakness, the Company continues to take proactive steps to manage production and costs. In response to ongoing market weakness and a softer sales outlook, the Company is idling High-Yield Pulp production for three weeks during the third quarter to proactively manage inventory levels and preserve cash flow. Overall, EBITDA is expected to approximate a loss of $20 million to $25 million for the full year 2025. Corporate Corporate costs for full year 2025 are expected to be higher compared to the prior year primarily due to the $12 million of non-cash environmental reserve charges recorded in the first quarter and potential continued foreign exchange headwinds from a weaker U.S. dollar. These impacts are expected to be partially offset by lower corporate spending in the second half of the year following the completion of the Company's ERP implementation. Overall, Corporate costs are expected to approximate $70 million for the full year 2025. Conference Call Information RYAM will host a conference call and live webcast at 9:00 a.m. ET on Wednesday, August 6, 2025, to discuss these results. Supplemental materials and access to the live audio webcast will be available at A replay of this webcast will be archived on the Company's website shortly after the call. Investors may listen to the conference call by dialing 877-407-8293, no passcode required. For international parties, dial 201-689-8349. A replay of the teleconference will be available one hour after the call ends until 6:00 p.m. ET on August 20, 2025. The replay dial-in number within the U.S. is 877-660-6853, international is 201-612-7415, Conference ID: 13750564. About RYAM RYAM is a global leader of cellulose-based technologies, including cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. RYAM's specialized assets, capable of creating the world's leading cellulose specialties products, are also used to produce commodity fluff pulp, biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The Company also manufactures products for the paper and packaging markets. With manufacturing operations in the U.S., Canada and France, RYAM generated $1.6 billion of revenue in 2024. More information is available at 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 future events, developments or financial or operational performance or results, are 'forward-looking statements' made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as 'may,' 'will,' 'should,' 'expect,' 'estimate,' 'target,' 'believe,' 'intend,' 'plan,' 'forecast,' 'anticipate,' 'guidance' and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. Forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to various risks and uncertainties. All statements made in this earnings release are made only as of the date set forth at the beginning of this release. The Company undertakes no obligation to update the information made in this release in the event facts or circumstances change after the date of this release. The Company has not filed its Form 10-Q for the quarter ended June 28, 2025. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Form 10-Q. The Company's operations are subject to a number of risks and uncertainties, including, but not limited to, those listed below. When considering an investment in the Company's securities, you should carefully read and consider these risks, together with all other information in the Company's Annual Report on Form 10-K and other filings and submissions to the SEC, which provide more information and detail on the risks described below. If any of the events described in the following risk factors occur, the Company's business, financial condition, operating results and cash flows, as well as the market price of the Company's securities, could be materially adversely affected. These risks and events include, without limitation: Macroeconomic and Industry Risks The Company's business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by geopolitical conflicts and related impacts. The businesses the Company operates are highly competitive and many of them are cyclical, which may result in fluctuations in pricing and volume that can materially adversely affect the Company's business, financial condition, results of operations and cash flows. Changes in the availability and price of raw materials and energy and continued inflationary pressure could have a material adverse effect on the Company's business, financial condition and results of operations. The Company is subject to material risks associated with doing business outside of the United States. Foreign currency exchange fluctuations may have a material adverse impact on the Company's business, financial condition and results of operations. Restrictions on trade through tariffs, countervailing and anti-dumping duties, quotas and other trade barriers, in the United States and internationally, could materially adversely affect the Company's ability to access certain markets. The Company is subject to risks associated with epidemics and pandemics, which could have a material adverse impact on the Company's business, financial condition, results of operations and cash flows. Business and Operational Risks The Company's ten largest customers represented a significant portion of the Company's 2024 revenue and the loss of all or a substantial portion of revenue from these customers could have a material adverse effect on the Company's business. A material disruption at any of the Company's manufacturing plants could prevent the Company from meeting customer demand, reduce sales and profitability, increase the cost of production and capital needs, or otherwise materially adversely affect the Company's business, financial condition and results of operations. Unfavorable changes in the availability of, and prices for, wood fiber may have a material adverse impact on the Company's business, financial condition and results of operations. Substantial capital is required to maintain the Company's production facilities, and the cost to repair or replace equipment, as well as the associated downtime, could materially adversely affect the Company's business. The Company faces risks to its assets, including the potential for substantial impairment of long-lived assets. The Company may be required to recognize a significant non-cash charge to earnings if its recorded deferred tax assets are deemed unrealizable. The Company depends on third parties for transportation services and unfavorable changes in the cost and availability of transportation could materially adversely affect the Company's business. Failure to maintain satisfactory labor relations could have a material adverse effect on the Company's business. The Company depends on attracting and retaining key personnel, the loss of whom could materially adversely affect the Company's business. Failure to meet the Company's customers' needs through the development of new products or the discovery of new applications for existing products, or inability to protect the intellectual property underlying new products or applications, could have a material adverse impact on the Company's business. Loss of Company intellectual property and sensitive data or disruption of manufacturing operations due to a cybersecurity incident could materially adversely impact the business. Challenges and uncertainties in executing the Company's Biomaterials strategy may adversely impact its business and financial results. Regulatory and Environmental Risks The Company's business is subject to extensive environmental laws, regulations and permits that may materially restrict or adversely affect how the Company conducts business and its financial results. The potential long-term impact of climate-related risks remain uncertain at this time. Regulatory measures to address climate change may materially restrict how the Company conducts business or adversely affect its financial results. Financial Risks The Company may need to make significant additional cash contributions to its retirement benefit plans if investment returns on pension assets are lower than expected or interest rates decline, and/or due to changes to regulatory, accounting and actuarial requirements. The Company has debt obligations that could materially adversely affect the Company's business and its ability to meet its obligations. Covenants in the Company's debt agreements may impair its ability to operate its business. Challenges in the commercial and credit environments may materially adversely affect the Company's future access to capital. The Company may require additional financing in the future to meet its capital needs or to make acquisitions, and such financing may not be available on favorable terms, if at all, and may be dilutive to existing stockholders. Common Stock and Certain Corporate Matters Risks Stockholders' ownership in RYAM may be diluted. Certain provisions in the Company's amended and restated certificate of incorporation and bylaws, as well as Delaware law, could prevent or delay an acquisition of the Company, which could decrease the price of its common stock. Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in the Company's filings with the U.S. Securities and Exchange Commission, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company assumes no obligation to update these statements except as is required by law. Non-GAAP Financial Measures This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flow, adjusted net income, adjusted net debt and net secured debt. The Company believes these non-GAAP financial measures provide useful information to its Board of Directors, management and investors regarding its financial condition and results of operations. Management uses these non-GAAP financial measures to compare its performance to that of prior periods for trend analyses, to determine management incentive compensation and for budgeting, forecasting and planning purposes. The Company does not consider these non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in the consolidated financial statements. In addition, they reflect the exercise of management's judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures are provided below. Non-GAAP financial measures are not necessarily indicative of results that may be generated in future periods and should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of the Company. Rayonier Advanced Materials Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions) June 28, 2025 December 31, 2024 Assets Cash and cash equivalents $ 71 $ 125 Other current assets 469 476 Property, plant and equipment, net 1,043 1,019 Other assets 172 510 Total assets $ 1,755 $ 2,130 Liabilities, Redeemable Noncontrolling Interest and Stockholders' Equity Debt due within one year $ 26 $ 24 Other current liabilities 346 376 Long-term debt 720 706 Non-current environmental liabilities 172 160 Other liabilities 136 139 Redeemable noncontrolling interest 13 11 Total stockholders' equity 342 714 Total liabilities, redeemable noncontrolling interest and stockholders' equity $ 1,755 $ 2,130 Expand Rayonier Advanced Materials Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) Six Months Ended June 28, 2025 June 29, 2024 Operating Activities Net income (loss) $ (395 ) $ 10 Adjustments to reconcile net income (loss) to cash provided by operating activities: Income from discontinued operations, net of tax (3 ) (3 ) Depreciation and amortization 62 67 Deferred income tax expense (benefit) 333 (1 ) Changes in working capital and other assets and liabilities (13 ) 20 Other 26 6 Cash provided by operating activities 10 99 Investing Activities Capital expenditures, net of proceeds (75 ) (58 ) Cash used in investing activities (75 ) (58 ) Financing Activities Changes in debt principal balance 4 1 Other (3 ) (2 ) Cash provided by (used in) financing activities 1 (1 ) Net increase (decrease) in cash and cash equivalents (64 ) 40 Net effect of foreign exchange on cash and cash equivalents 10 (2 ) Balance, beginning of period 125 76 Balance, end of period $ 71 $ 114 Expand Rayonier Advanced Materials Inc. Sales Volumes and Average Prices (Unaudited) Three Months Ended Six Months Ended June 28, 2025 March 29, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Average Sales Prices ($ per metric ton) Cellulose Specialties $ 1,807 $ 1,750 $ 1,750 $ 1,783 $ 1,733 Cellulose Commodities $ 911 $ 863 $ 849 $ 883 $ 850 Paperboard $ 1,346 $ 1,321 $ 1,384 $ 1,333 $ 1,383 High-Yield Pulp (external sales) $ 509 $ 518 $ 574 $ 514 $ 566 Sales Volumes ('000s of metric tons) Cellulose Specialties 111 111 130 221 244 Cellulose Commodities 64 84 96 149 201 Paperboard 34 37 44 72 82 High-Yield Pulp (external sales) 42 48 45 90 95 Expand Rayonier Advanced Materials Inc. Reconciliation of Non-GAAP Measures (Unaudited) (in millions) EBITDA and Adjusted EBITDA by Segment (a) Three Months Ended June 28, 2025 Cellulose Specialties Biomaterials Cellulose Commodities Paperboard High-Yield Pulp Corporate Total Income (loss) from continuing operations $ 29 $ 1 $ (10 ) $ (1 ) $ (7 ) $ (378 ) $ (366 ) Income from continuing operations attributable to redeemable noncontrolling interest — — — — — — — Income (loss) from continuing operations attributable to RYAM 29 1 (10 ) (1 ) (7 ) (378 ) (366 ) Depreciation and amortization 17 — 7 6 — 1 31 Interest expense, net — — — — — 23 23 Income tax expense — — — — — 339 339 EBITDA-continuing operations attributable to RYAM 46 1 (3 ) 5 (7 ) (15 ) 27 Indefinite suspension charges — — 1 — — — 1 Adjusted EBITDA-continuing operations attributable to RYAM $ 46 $ 1 $ (2 ) $ 5 $ (7 ) $ (15 ) $ 28 Three Months Ended March 29, 2025 Cellulose Specialties Biomaterials Cellulose Commodities Paperboard High-Yield Pulp Corporate Total Income (loss) from continuing operations $ 31 $ 1 $ (12 ) $ (1 ) $ (7 ) $ (44 ) $ (32 ) Income from continuing operations attributable to redeemable noncontrolling interest — — — — — — — Income (loss) from continuing operations attributable to RYAM 31 1 (12 ) (1 ) (7 ) (44 ) (32 ) Depreciation and amortization 15 1 10 5 1 (1 ) 31 Interest expense, net — — — — — 23 23 Income tax benefit — — — — — (5 ) (5 ) EBITDA-continuing operations attributable to RYAM 46 2 (2 ) 4 (6 ) (27 ) 17 Indefinite suspension charges — — — — — — — Adjusted EBITDA-continuing operations attributable to RYAM $ 46 $ 2 $ (2 ) $ 4 $ (6 ) $ (27 ) $ 17 Three Months Ended June 29, 2024 Cellulose Specialties Biomaterials Cellulose Commodities Paperboard High-Yield Pulp Corporate Total Income (loss) from continuing operations $ 50 $ 1 $ (21 ) $ 13 $ 1 $ (36 ) $ 8 Income from continuing operations attributable to redeemable noncontrolling interest — — — — — — — Income (loss) from continuing operations attributable to RYAM 50 1 (21 ) 13 1 (36 ) 8 Depreciation and amortization 18 1 10 2 1 1 33 Interest expense, net — — — — — 21 21 Income tax benefit — — — — — (1 ) (1 ) EBITDA-continuing operations attributable to RYAM 68 2 (11 ) 15 2 (15 ) 61 Indefinite suspension charges — — 7 — — — 7 Adjusted EBITDA-continuing operations attributable to RYAM $ 68 $ 2 $ (4 ) $ 15 $ 2 $ (15 ) $ 68 Expand Six Months Ended June 28, 2025 Cellulose Specialties Biomaterials Cellulose Commodities Paperboard High-Yield Pulp Corporate Total Income (loss) from continuing operations $ 60 $ 2 $ (22 ) $ (2 ) $ (14 ) $ (422 ) $ (398 ) Income from continuing operations attributable to redeemable noncontrolling interest — — — — — — — Income (loss) from continuing operations attributable to RYAM 60 2 (22 ) (2 ) (14 ) (422 ) (398 ) Depreciation and amortization 32 1 17 11 1 — 62 Interest expense, net — — — — — 46 46 Income tax expense — — — — — 334 334 EBITDA-continuing operations attributable to RYAM 92 3 (5 ) 9 (13 ) (42 ) 44 Indefinite suspension charges — — 1 — — — 1 Adjusted EBITDA-continuing operations attributable to RYAM $ 92 $ 3 $ (4 ) $ 9 $ (13 ) $ (42 ) $ 45 Six Months Ended June 29, 2024 Cellulose Specialties Biomaterials Cellulose Commodities Paperboard High-Yield Pulp Corporate Total Income (loss) from continuing operations $ 87 $ 3 $ (39 ) $ 21 $ — $ (65 ) $ 7 Income from continuing operations attributable to redeemable noncontrolling interest — — — — — — — Income (loss) from continuing operations attributable to RYAM 87 3 (39 ) 21 — (65 ) 7 Depreciation and amortization 36 1 21 6 2 1 67 Interest expense, net — — — — — 41 41 Income tax benefit — — — — — (2 ) (2 ) EBITDA-continuing operations attributable to RYAM 123 4 (18 ) 27 2 (25 ) 113 Indefinite suspension charges — — 7 — — — 7 Adjusted EBITDA-continuing operations attributable to RYAM $ 123 $ 4 $ (11 ) $ 27 $ 2 $ (25 ) $ 120 Expand _____________________________ (a) EBITDA from continuing operations is defined as income (loss) from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA from continuing operations is defined as EBITDA from continuing operations adjusted for items that management believes are not representative of core operations. EBITDA and Adjusted EBITDA are non-GAAP measures used by management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. (b) Estimated using the statutory rates of each jurisdiction, with the exception of Canada, which assumes a 0% tax rate due to valuation allowances, and ignoring all permanent book-to-tax differences. Expand Annual Guidance 2025 Low High Cash provided by operating activities $ 60 $ 75 Capital expenditures, net (85 ) (85 ) Adjusted free cash flow $ (25 ) $ (10 ) Expand _____________________________ (a) Adjusted free cash flow is defined as cash provided by (used in) operating activities adjusted for capital expenditures, net of proceeds from the sale of assets and excluding strategic capital expenditures. Adjusted free cash flow is a non-GAAP measure of cash generated during a period that is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of the Company's common stock. Expand _____________________________ (a) Adjusted net debt is defined as the amount of debt after the consideration of debt premium, discount and issuance costs, less cash. Net secured debt is defined as adjusted net debt less unsecured debt. Expand _____________________________ (a) Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations adjusted net of tax for items that management believes are not representative of core operations. Expand
Yahoo
22-05-2025
- Business
- Yahoo
Rayonier Advanced Materials President Acquires 15% More Stock
Investors who take an interest in Rayonier Advanced Materials Inc. (NYSE:RYAM) should definitely note that the President, De Lyle Bloomquist, recently paid US$3.95 per share to buy US$250k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 15%. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In fact, the recent purchase by De Lyle Bloomquist was the biggest purchase of Rayonier Advanced Materials shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$3.97 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Rayonier Advanced Materials share holders is that insiders were buying at near the current price. In the last twelve months Rayonier Advanced Materials insiders were buying shares, but not selling. The average buy price was around US$4.62. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! View our latest analysis for Rayonier Advanced Materials Rayonier Advanced Materials is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying. I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Rayonier Advanced Materials insiders own 4.6% of the company, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment. It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Rayonier Advanced Materials insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Rayonier Advanced Materials you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Wire
06-05-2025
- Business
- Business Wire
RYAM Reports First Quarter 2025 Results
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Rayonier Advanced Materials Inc. (NYSE:RYAM) (the 'Company') today reported results for its first quarter ended March 29, 2025. 'Despite near-term challenges in the macroeconomic and regulatory environment, we remain focused on creating long-term value and are confident in the strength of our core business and strategic positioning,' said De Lyle Bloomquist, President and CEO of RYAM. 'Our first quarter results fell short of expectations, primarily due to several factors: a $12 million non-cash environmental charge, lower cellulose specialties sales volumes following accelerated customer purchases in the prior quarter ahead of a potential supply chain disruption, higher key input costs and operational challenges. In addition, demand in our Paperboard and High-Yield Pulp businesses remained soft. 'We are also navigating a dynamic global trade environment. Based on our most recent insight, approximately $85 million of RYAM annual revenues are currently exposed to a 125 percent import tariff from China. Additionally, we believe we are exposed to second-order effects as certain Cellulose Specialties customers adjust their supply chains in response to the tariffs. While some Chinese fluff customers have chosen to absorb the tariff and continue placing orders, we anticipate shifting production toward non-fluff commodities to help offset potential reductions in direct fluff sales to China and the likely softer demand resulting from these second-order effects. 'Considering these factors — the tariffs, poor first quarter operational performance, the weaker U.S. dollar, the one-time non-cash environmental charge and elevated key input costs — we now project 2025 Adjusted EBITDA to range between $175 million and $185 million. We also expect 2025 Adjusted Free Cash Flow to approximate $5 million to $15 million. With a strong balance sheet and ample liquidity, we remain confident in our ability to manage near-term pressures, meet our debt covenants and deliver long-term value for our shareholders,' concluded Mr. Bloomquist. First Quarter 2025 Financial Results The Company reported a net loss of $32 million, or $(0.49) per diluted share, for the quarter ended March 29, 2025 compared to a net loss of $2 million, or $(0.02) per diluted share, for the prior year quarter. Beginning in January 2025, the Company reorganized its former High Purity Cellulose operating segment into three separate businesses: Cellulose Specialties, Cellulose Commodities and Biomaterials. No changes were made to the composition of the Paperboard and High-Yield Pulp operating segments. Prior period segment results have been recast to align with this new segment reporting structure. Net sales were comprised of the following for the periods presented: Operating income (loss) was comprised of the following for the periods presented: Following the indefinite suspension of Temiscaming cellulose operations in the third quarter of 2024, certain infrastructure assets of the site's cellulose plant continue to run in support of the ongoing energy needs of the Paperboard and High-Yield Pulp operations. As such, beginning in the fourth quarter of 2024, the net impact of the custodial site costs being incurred and the sales of any electricity generated by the running of the cellulose plant assets are reflected within the operating results of the Paperboard and High-Yield Pulp businesses. Cellulose Specialties Net sales for the quarter decreased $5 million, or 2 percent, compared to the prior year quarter driven by a 2 percent decrease in sales volumes that was in line with expectations and primarily due to strong sales in the prior year quarter ahead of the indefinite suspension of Temiscaming cellulose operations. Partially offsetting the sales volume decrease was a 2 percent increase in sales prices that was lower than the Company's guidance of mid single-digits primarily due to the timing of orders and an unfavorable sales mix. Operating income for the quarter decreased $7 million, or 18 percent, compared to the prior year quarter driven by the lower sales, higher key input costs and operational challenges at the plants in the current quarter, partially offset by the absence of prior year operating losses from cellulose operations due to the indefinite suspension of operations at the Temiscaming site in July 2024. Compared to the fourth quarter of 2024, net sales decreased $40 million as sales volumes decreased 17 percent primarily due to elevated sales volumes in the prior quarter resulting from accelerated customer shipments ahead of potential supply chain disruptions. This decrease was partially offset by a 1 percent increase in sales prices. Operating income decreased $14 million primarily due to the lower sales volumes, operational challenges at the plants in the current quarter and the fourth quarter recognition of $7 million of energy cost benefits from sales of excess emission allowances. Offsetting these decreases were the higher sales prices and the fourth quarter impact of the Jesup plant fire. Cellulose Commodities Net sales for the quarter decreased $19 million, or 20 percent, compared to the prior year quarter. Sales volumes decreased 21 percent driven primarily by lower non-fluff commodity sales, partially offset by a 2 percent increase in sales prices due to stronger demand for fluff. Operating loss for the quarter improved $6 million, or 32 percent, compared to the prior year quarter driven by lower commodity losses, partially offset by higher key input costs and operational challenges at the cellulose plants. Compared to the fourth quarter of 2024, net sales decreased $15 million as sales volumes decreased 23 percent primarily due to elevated sales volumes in the prior quarter resulting from accelerated customer shipments ahead of potential supply chain disruptions and reduced production due to operational challenges in the current quarter. These decreases were partially offset by a 7 percent increase in sales prices. Operating loss improved $3 million primarily due to the higher sales prices and the fourth quarter impact of the Jesup plant fire. Offsetting these improvements were the lower sales volumes, operational challenges in the current quarter and $3 million of energy cost benefits from sales of excess emission allowances recognized in the fourth quarter. Biomaterials Net sales and operating income were both flat in the current quarter compared to the prior year quarter. Increased sales from the April 2024 startup of the France bioethanol facility were offset by lower production in the current quarter due to operational challenges and the planned maintenance shutdown of the Tartas cellulose plant, which limited raw material supply due to the bioethanol facility's reliance on the Tartas cellulose plant for feedstock. In operating income, higher shared and ancillary service costs under the business's newly-established cost structure were offset by lower production costs as a result of the current quarter shutdown and reduced feedstock availability. Compared to the fourth quarter of 2024, net sales decreased $1 million, impacted by the lower production in the current quarter due to the restricted raw material availability resulting from the operational challenges and planned maintenance shutdown. Operating income was flat as higher shared and ancillary service costs were offset by the lower production costs that resulted from the current quarter shutdown and reduced feedstock availability. Paperboard Net sales for the quarter decreased $4 million, or 8 percent, compared to the prior year quarter. Sales prices and volumes decreased 4 percent and 3 percent, respectively, driven by mix and continued competitive activity from European imports. Operating results for the quarter declined $10 million, or 125 percent, compared to the prior year quarter driven by the lower sales prices and volumes, higher maintenance and purchased pulp costs and the impact of Temiscaming net custodial site costs. Compared to the fourth quarter of 2024, operating results declined $6 million driven by 5 percent and 14 percent decreases in sales prices and volumes, respectively, due to mix, operational challenges and continued competitive activity from European imports, and a higher cost impact of the fourth quarter planned maintenance outage. High-Yield Pulp Net sales for the quarter decreased $3 million, or 9 percent, compared to the prior year quarter. Sales prices and volumes decreased 7 percent and 4 percent, respectively, driven by lower demand, continued oversupply in China and the timing of shipments, primarily related to shipping challenges to customers in India. Operating loss for the quarter increased $6 million, or 600 percent, compared to the prior year quarter driven by the lower sales prices and volumes and the impact of Temiscaming net custodial site costs. Compared to the fourth quarter of 2024, operating loss improved $1 million driven by lower maintenance and labor costs, partially offset by 1 percent and 2 percent decreases in sales prices and volumes, respectively. Corporate Operating loss for the quarter increased $15 million, or 136 percent, compared to the prior year quarter driven by current quarter non-cash environmental reserves charges of $12 million and unfavorable foreign exchange rates in the current quarter compared to favorable rates in the prior year quarter. The environmental reserves charges are associated with recent developments at the Port Angeles, Washington, and Augusta, Georgia, remediation sites. The cash impact associated with the Augusta remediation site is expected in early 2027; the cash impact for the Port Angeles remediation site is not expected to begin before 2028, with outflows in the following three to five years. Compared to the fourth quarter of 2024, operating loss increased $10 million driven by the non-cash environmental reserves charges mentioned above and unfavorable foreign exchange rates in the current quarter compared to favorable rates in the prior year quarter, partially offset by lower variable compensation costs and the impact of the debt refinancing in the prior period. Non-Operating Income & Expense Interest expense for the quarter ended March 29, 2025 increased $3 million compared to the prior year quarter driven primarily by an increase in the average effective interest rate on debt, partially offset by a decrease in the average outstanding principal balance. Total debt decreased $43 million from March 30, 2024 to March 29, 2025. Unfavorable foreign exchange rates during the quarter ended March 29, 2025 compared to favorable rates in the prior year quarter resulted in a net unfavorable impact of $1 million. Income Taxes The effective tax rate for the quarter ended March 29, 2025 was a benefit of 15 percent. This rate differed from the federal statutory rate of 21 percent primarily due to changes in the valuation allowance on disallowed interest deductions, different statutory tax rates in foreign jurisdictions, U.S. tax credits and nondeductible executive compensation. The effective tax rate for the quarter ended March 30, 2024 was a benefit of 30 percent. This rate differed from the federal statutory rate of 21 percent primarily due to the release of certain tax reserves, partially offset by return-to-accrual adjustments, excess deficit on vested stock compensation and changes in the valuation allowance on disallowed interest deductions. Cash Flows & Liquidity The Company generated operating cash flows of $40 million during the three months ended March 29, 2025 driven by strong working capital management. The Company used $38 million in investing activities during the three months ended March 29, 2025 related to net capital expenditures, which included $8 million of strategic capital spending. The Company had $1 million of net cash outflows from financing activities during the three months ended March 29, 2025 for the repurchase of common stock and repayment of long-term debt, partially offset by net borrowings of short-term financing. The Company ended the first quarter with $272 million of global liquidity, including $130 million of cash, $131 million of borrowing capacity under the ABL Credit Facility and $11 million of availability under the France factoring facility. As of March 29, 2025, the Company's consolidated net secured leverage ratio was 2.9 times covenant EBITDA. Business Outlook The Company now projects 2025 Adjusted EBITDA to range between $175 million and $185 million, primarily reflecting the impact of tariffs, unfavorable foreign exchange due to the weaker U.S. dollar relative to the Canadian dollar and euro, the one-time non-cash environmental charge, poor first quarter operational results and continued soft demand and pricing in Paperboard and High-Yield Pulp. In October 2023, the Company announced that it was exploring the potential sale of its Paperboard and High-Yield Pulp assets at its Temiscaming site. Given the current global trade uncertainty, the sale process is effectively on hold. The Company continues to focus on operating these businesses and remains committed to pursuing a sale at a fair price when timing and value align. The following market assessment represents the Company's current outlook for its operating segments' future performance. Cellulose Specialties Average sales prices for Cellulose Specialties in 2025 are expected to increase by a mid single-digit percentage compared to 2024. Sales volumes are expected to decline by a similar percentage, primarily due to the absence of 2024 bridge volumes following the indefinite suspension of the Temiscaming plant, as well as second-order tariff impacts and accelerated acetate destocking. Demand trends vary across product lines: acetate demand remains soft due to elevated inventories and ongoing destocking in China, with added risk that customers may use the tariff-related pause in orders to further reduce stock levels. Ethers volumes are expected to improve, while other specialty grades are anticipated to remain strong given reduced global supply. The Company remains cautious about further supply chain adjustments by certain Cellulose Specialties customers in response to tariffs. Raw material input and logistics costs are projected to be moderately higher in 2025. Operational challenges experienced in the first quarter are believed to have been resolved through planned maintenance outages completed at all three cellulose plants in March and April. Overall, EBITDA is expected to approximate $237 million to $245 million for the full year 2025, subject to fluctuations in tariff rates. Cellulose Commodities While overall fluff demand is expected to remain resilient, RYAM fluff products are subject to a 125 percent import tariff into China. These retaliatory tariffs are expected to create a dislocation of supply relative to demand and the Company anticipates a loss of market share in China as a result. Raw material input and logistics costs are projected to be moderately higher in 2025. Overall, EBITDA is expected to approximate negative $5 million for the full year 2025, subject to fluctuations in tariff rates. Biomaterials The Company is evaluating investments in new green energy and renewable products to provide both increased end-market diversity and incremental profitability. The Company intends to proceed only with those projects that are expected to meet its investment hurdles: a minimum 30 percent return on equity and a less than two-year payback period for RYAM equity. In the fourth quarter of 2024, the Company secured green capital of €67 million, which allows it to advance the biomaterials strategy and further progress towards its future goal of generating over $70 million of EBITDA from RYAM's Biomaterials business, inclusive of the projects below: The Company's bioethanol facility in France is operational since the first quarter of 2024. The Company re-started its lignosulfonate powder plant in France in the fourth quarter of 2024. The Company continues to pursue an investment in a bioethanol facility in Fernandina Beach, Florida, similar to its bioethanol facility in France. While the City of Fernandina Beach recently denied the site plan application for this project, the Company believes the City erred in making its determination and is pursuing all available legal remedies. In expectation of a favorable outcome, the Company continues to advance engineering plans and explore potential commercial agreements, driving toward a final investment decision anticipated in 2025 based on current legal timelines. The Company is evaluating investments in crude tall oil facilities in Jesup, Georgia and Tartas and a prebiotics facility at the Jesup plant, and is currently working on permitting, engineering and commercial agreements on these new facilities ahead of making final investment decisions later this year. The Company is a partner in AGE (Altamaha Green Energy, LLC), a start-up entity that aims to utilize renewable forestry waste and other biomass generally discarded as waste to generate green electricity for the State of Georgia from a new facility to be constructed adjacent to the Company's Jesup plant. Although the project remains in the development phase, AGE is actively evaluating the construction and financing requirements for the new facility, with a final investment decision expected in the third quarter of 2025. Overall, EBITDA is expected to approximate $8 million to $10 million for the full year 2025. Paperboard Paperboard volumes are expected to increase in 2025, supported by improved certainty around zero-tariff access to the U.S. market due to USMCA compliance, reduced supply from European competitors impacted by tariffs and growing interest from the domestic Canadian market. However, prices are projected to decline year over year. Costs are expected to rise due to higher purchased pulp costs, greater allocation of custodial site costs at the Temiscaming facility and tariff mitigation efforts. Overall, EBITDA is expected to approximate $25 million for the full year 2025. High-Yield Pulp High-Yield Pulp prices and volumes are expected to decline in 2025 due to continued oversupply in the Chinese market. Costs are projected to increase as a result of higher allocation of custodial site costs at the Temiscaming facility. Overall, EBITDA is expected to approximate negative $20 million for the full year 2025. Corporate Corporate costs in 2025 are expected to be higher year over year due to the $12 million non-cash environmental reserves charges recorded in the first quarter and potential foreign exchange headwinds stemming from a weaker U.S. dollar relative to the Canadian dollar and euro. These impacts are partially offset by lower spending following the completion of the Company's ERP implementation. Overall, Corporate costs are expected to approximate $70 million for the full year 2025. Conference Call Information RYAM will host a conference call and live webcast at 9:00 a.m. ET on Wednesday, May 7, 2025, to discuss these results. Supplemental materials and access to the live audio webcast will be available at A replay of this webcast will be archived on the Company's website shortly after the call. Investors may listen to the conference call by dialing 877-407-8293, no passcode required. For international parties, dial 201-689-8349. A replay of the teleconference will be available one hour after the call ends until 6:00 p.m. ET on May 21, 2025. The replay dial-in number within the U.S. is 877-660-6853, international is 201-612-7415, Conference ID: 13750563. About RYAM RYAM is a global leader of cellulose-based technologies, including cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. RYAM's specialized assets, capable of creating the world's leading cellulose specialties products, are also used to produce commodity fluff pulp, biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The Company also manufactures products for the paper and packaging markets. With manufacturing operations in the U.S., Canada and France, RYAM generated $1.6 billion of revenue in 2024. More information is available at 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 future events, developments or financial or operational performance or results, are 'forward-looking statements' made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as 'may,' 'will,' 'should,' 'expect,' 'estimate,' 'target,' 'believe,' 'intend,' 'plan,' 'forecast,' 'anticipate,' 'guidance' and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. Forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to various risks and uncertainties. All statements made in this earnings release are made only as of the date set forth at the beginning of this release. The Company undertakes no obligation to update the information made in this release in the event facts or circumstances change after the date of this release. The Company has not filed its Form 10-Q for the quarter ended March 29, 2025. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Form 10-Q. The Company's operations are subject to a number of risks and uncertainties, including, but not limited to, those listed below. When considering an investment in the Company's securities, you should carefully read and consider these risks, together with all other information in the Company's Annual Report on Form 10-K and other filings and submissions to the SEC, which provide more information and detail on the risks described below. If any of the events described in the following risk factors occur, the Company's business, financial condition, operating results and cash flows, as well as the market price of the Company's securities, could be materially adversely affected. These risks and events include, without limitation: Macroeconomic and Industry Risks The Company's business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by geopolitical conflicts and related impacts. The businesses the Company operates are highly competitive and many of them are cyclical, which may result in fluctuations in pricing and volume that can materially adversely affect the Company's business, financial condition, results of operations and cash flows. Changes in the availability and price of raw materials and energy and continued inflationary pressure could have a material adverse effect on the Company's business, financial condition and results of operations. The Company is subject to material risks associated with doing business outside of the United States. Foreign currency exchange fluctuations may have a material adverse impact on the Company's business, financial condition and results of operations. Restrictions on trade through tariffs, countervailing and anti-dumping duties, quotas and other trade barriers, in the United States and internationally, could materially adversely affect the Company's ability to access certain markets. The Company is subject to risks associated with epidemics and pandemics, which could have a material adverse impact on the Company's business, financial condition, results of operations and cash flows. Business and Operational Risks The Company's ten largest customers represented a significant portion of the Company's 2024 revenue and the loss of all or a substantial portion of revenue from these customers could have a material adverse effect on the Company's business. A material disruption at any of the Company's manufacturing plants could prevent the Company from meeting customer demand, reduce sales and profitability, increase the cost of production and capital needs, or otherwise materially adversely affect the Company's business, financial condition and results of operations. Unfavorable changes in the availability of, and prices for, wood fiber may have a material adverse impact on the Company's business, financial condition and results of operations. Substantial capital is required to maintain the Company's production facilities, and the cost to repair or replace equipment, as well as the associated downtime, could materially adversely affect the Company's business. The Company faces risks to its assets, including the potential for substantial impairment of long-lived assets. The Company may be required to recognize a significant non-cash charge to earnings if its recorded deferred tax assets are deemed unrealizable. The Company depends on third parties for transportation services and unfavorable changes in the cost and availability of transportation could materially adversely affect the Company's business. Failure to maintain satisfactory labor relations could have a material adverse effect on the Company's business. The Company depends on attracting and retaining key personnel, the loss of whom could materially adversely affect the Company's business. Failure to meet the Company's customers' needs through the development of new products or the discovery of new applications for existing products, or inability to protect the intellectual property underlying new products or applications, could have a material adverse impact on the Company's business. Loss of Company intellectual property and sensitive data or disruption of manufacturing operations due to a cybersecurity incident could materially adversely impact the business. Challenges and uncertainties in executing the Company's Biomaterials strategy may adversely impact its business and financial results. Regulatory and Environmental Risks The Company's business is subject to extensive environmental laws, regulations and permits that may materially restrict or adversely affect how the Company conducts business and its financial results. The potential long-term impact of climate-related risks remain uncertain at this time. Regulatory measures to address climate change may materially restrict how the Company conducts business or adversely affect its financial results. Financial Risks The Company may need to make significant additional cash contributions to its retirement benefit plans if investment returns on pension assets are lower than expected or interest rates decline, and/or due to changes to regulatory, accounting and actuarial requirements. The Company has debt obligations that could materially adversely affect the Company's business and its ability to meet its obligations. Covenants in the Company's debt agreements may impair its ability to operate its business. Challenges in the commercial and credit environments may materially adversely affect the Company's future access to capital. The Company may require additional financing in the future to meet its capital needs or to make acquisitions, and such financing may not be available on favorable terms, if at all, and may be dilutive to existing stockholders. Common Stock and Certain Corporate Matters Risks Stockholders' ownership in RYAM may be diluted. Certain provisions in the Company's amended and restated certificate of incorporation and bylaws, as well as Delaware law, could prevent or delay an acquisition of the Company, which could decrease the price of its common stock. Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in the Company's filings with the U.S. Securities and Exchange Commission, including the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company assumes no obligation to update these statements except as is required by law. Non-GAAP Financial Measures This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flow, adjusted net income, adjusted net debt and net secured debt. The Company believes these non-GAAP financial measures provide useful information to its Board of Directors, management and investors regarding its financial condition and results of operations. Management uses these non-GAAP financial measures to compare its performance to that of prior periods for trend analyses, to determine management incentive compensation and for budgeting, forecasting and planning purposes. The Company does not consider these non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in the consolidated financial statements. In addition, they reflect the exercise of management's judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures are provided below. Non-GAAP financial measures are not necessarily indicative of results that may be generated in future periods and should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of the Company. Rayonier Advanced Materials Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions) December 31, 2024 Assets Cash and cash equivalents $ 130 $ 125 Other current assets 443 476 Property, plant and equipment, net 1,031 1,019 Other assets 514 510 Total assets $ 2,118 $ 2,130 Liabilities, Redeemable Noncontrolling Interest and Stockholders' Equity Debt due within one year $ 29 $ 24 Other current liabilities 376 376 Long-term debt 707 706 Non-current environmental liabilities 172 160 Other liabilities 135 139 Redeemable noncontrolling interest 11 11 Total stockholders' equity 688 714 Total liabilities, redeemable noncontrolling interest and stockholders' equity $ 2,118 $ 2,130 Expand Rayonier Advanced Materials Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) Three Months Ended March 29, 2025 March 30, 2024 Operating Activities Net loss $ (32 ) $ (2 ) Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 31 34 Changes in working capital and other assets and liabilities 31 (21 ) Other 10 1 Cash provided by operating activities 40 12 Investing Activities Capital expenditures, net of proceeds (38 ) (33 ) Cash used in investing activities (38 ) (33 ) Financing Activities Changes in debt principal balance 2 3 Other (3 ) (2 ) Cash provided by (used in) financing activities (1 ) 1 Net increase (decrease) in cash and cash equivalents 1 (20 ) Net effect of foreign exchange on cash and cash equivalents 4 (1 ) Balance, beginning of period 125 76 Balance, end of period $ 130 $ 55 Expand Rayonier Advanced Materials Inc. Sales Volumes and Average Prices (Unaudited) Three Months Ended March 29, 2025 December 31, 2024 March 30, 2024 Average Sales Prices ($ per metric ton) Cellulose Specialties $ 1,750 $ 1,732 $ 1,724 Cellulose Commodities $ 863 $ 807 $ 842 Paperboard $ 1,321 $ 1,394 $ 1,382 High-Yield Pulp (external sales) $ 518 $ 523 $ 559 Sales Volumes ('000s of metric tons) Cellulose Specialties 111 134 113 Cellulose Commodities 84 109 106 Paperboard 37 43 38 High-Yield Pulp (external sales) 48 49 50 Expand Rayonier Advanced Materials Inc. Reconciliation of Non-GAAP Measures (Unaudited) (in millions) EBITDA and Adjusted EBITDA by Segment (a) Three Months Ended March 29, 2025 (in millions) Cellulose Specialties Cellulose Commodities Biomaterials Paperboard High-Yield Pulp Corporate Total Net income (loss) $ 31 $ (12 ) $ 1 $ (1 ) $ (7 ) $ (44 ) $ (32 ) Net income attributable to redeemable noncontrolling interest — — — — — — — Net income (loss) attributable to RYAM 31 (12 ) 1 (1 ) (7 ) (44 ) (32 ) Depreciation and amortization 15 10 1 5 1 (1 ) 31 Interest expense, net — — — — — 23 23 Income tax expense — — — — — (5 ) (5 ) EBITDA attributable to RYAM 46 (2 ) 2 4 (6 ) (27 ) 17 Indefinite suspension charges — — — — — — — Adjusted EBITDA attributable to RYAM $ 46 $ (2 ) $ 2 $ 4 $ (6 ) $ (27 ) $ 17 Three Months Ended December 31, 2024 Cellulose Specialties Cellulose Commodities Biomaterials Paperboard High-Yield Pulp Corporate Total Income (loss) from continuing operations $ 44 $ (16 ) $ 3 $ 5 $ (8 ) $ (44 ) $ (16 ) Income from continuing operations attributable to redeemable noncontrolling interest — — — — — — — Income (loss) from continuing operations attributable to RYAM 44 (16 ) 3 5 (8 ) (44 ) (16 ) Depreciation and amortization 18 10 — 5 — 1 34 Interest expense, net — — — — — 23 23 Income tax benefit — — — — — (3 ) (3 ) EBITDA-continuing operations attributable to RYAM 62 (6 ) 3 10 (8 ) (23 ) 38 Indefinite suspension charges — 3 — — — — 3 Debt refinancing charges — — — — — 10 10 Adjusted EBITDA-continuing operations attributable to RYAM $ 62 $ (3 ) $ 3 $ 10 $ (8 ) $ (13 ) $ 51 Three Months Ended March 30, 2024 Cellulose Specialties Cellulose Commodities Biomaterials Paperboard High-Yield Pulp Corporate Total Net income (loss) $ 38 $ (19 ) $ 2 $ 8 $ (1 ) $ (30 ) $ (2 ) Net income attributable to redeemable noncontrolling interest — — — — — — — Net income (loss) attributable to RYAM 38 (19 ) 2 8 (1 ) (30 ) (2 ) Depreciation and amortization 17 12 — 4 1 — 34 Interest expense, net — — — — — 20 20 Income tax benefit — — — — — — — EBITDA and Adjusted EBITDA attributable to RYAM $ 55 $ (7 ) $ 2 $ 12 $ — $ (10 ) $ 52 Expand 2025 Low High Loss from continuing operations attributable to RYAM $ (34 ) $ (24 ) Depreciation and amortization 125 125 Interest expense, net 93 93 Income tax benefit (b) (9 ) (9 ) EBITDA & Adjusted EBITDA-continuing operations attributable to RYAM $ 175 $ 185 Expand _____________________________ (a) EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for items that management believes are not representative of core operations. EBITDA and Adjusted EBITDA are non-GAAP measures used by management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. (b) Estimated using the statutory rates of each jurisdiction and ignoring all permanent book-to-tax differences. Expand Annual Guidance 2025 Low High Cash provided by operating activities $ 90 $ 100 Capital expenditures, net (85 ) (85 ) Adjusted free cash flow $ 5 $ 15 Expand _____________________________ (a) Adjusted free cash flow is defined as cash provided by (used in) operating activities adjusted for capital expenditures, net of proceeds from the sale of assets and excluding strategic capital expenditures. Adjusted free cash flow is a non-GAAP measure of cash generated during a period that is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of the Company's common stock. Expand Adjusted Net Debt and Net Secured Debt (a) March 29, 2025 December 31, 2024 Debt due within one year $ 29 $ 24 Long-term debt 707 706 Total debt 736 730 Unamortized premium, discount and issuance costs 47 48 Cash and cash equivalents (130 ) (125 ) Adjusted net debt 653 653 Unsecured debt (29 ) (28 ) Net secured debt $ 624 $ 625 Expand _____________________________ (a) Adjusted net debt is defined as the amount of debt after the consideration of debt premium, discount and issuance costs, less cash. Net secured debt is defined as adjusted net debt less unsecured debt. Expand Adjusted Net Income (Loss) (a) Three Months Ended March 29, 2025 December 31, 2024 March 30, 2024 $ Per Diluted Share $ Per Diluted Share $ Per Diluted Share Net loss $ (32 ) $ (0.49 ) $ (16 ) $ (0.25 ) $ (2 ) $ (0.02 ) Indefinite suspension charges — — 3 0.03 — — Debt refinancing charges — — 10 0.16 — — Tax effect of adjustments — — (3 ) (0.04 ) — — Adjusted net loss $ (32 ) $ (0.49 ) $ (6 ) $ (0.10 ) $ (2 ) $ (0.02 ) Expand _____________________________ (a) Adjusted net income (loss) is defined as net income (loss) adjusted net of tax for items that management believes are not representative of core operations. Expand
