Asset Sale Positions Company for Growth Supported by Strong Demand for Cellulose Specialties
- Sale of lumber and newsprint assets for approximately $232 million; estimated gain on sale of $6 million, net of tax
- Retired $127 million of senior unsecured debt; additional $25 million of senior secured debt repaid in October
- Expect significant price increases on the majority of cellulose specialties contracts in 2022
- Net loss from continuing operations was $13 million, $26 million unfavorable to the comparable period in 2020, driven by income tax benefit recorded in the prior year
- Adjusted EBITDA from continuing operations was $35 million, up $3 million from the comparable quarter in 2020, driven by higher High Purity Cellulose and High-Yield Pulp prices offset by impacts of cost inflation
- Targeting EBITDA margin growth focused on lowering cost, improving reliability, executing strategic projects and funding attractive innovation initiatives
JACKSONVILLE, Fla.--Nov. 2, 2021-- Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) reported a net loss of $5 million or a net loss of $0.07 per diluted share, compared to net income of $29 million or $0.45 per diluted share for the same prior year quarter. The net loss from continuing operations for the quarter ended September 25, 2021 was $13 million or $0.21 per diluted share, compared to net income from continuing operations of $13 million or $0.20 per diluted share for the same prior year quarter. The decrease in the diluted earnings per share was primarily due to significant income tax benefits recorded in the prior year. Income from discontinued operations for the quarter ended September 25, 2021 was $9 million or $0.14 per diluted share, compared to income from discontinued operations of $16 million or $0.25 per diluted share for the same prior year quarter. The decrease in the diluted earnings per share was due to lower lumber sales volumes as only two months of activity are recorded in the current quarter along with a higher income tax expense. As a result of the sale of lumber and newsprint assets, the Company has reclassified certain prior year amounts to conform to the current year presentation for discontinued operations. Unless otherwise stated, information in this press release relates to continuing operations.
“We made great progress on our strategic initiatives in the quarter including completion of the portfolio optimization initiative,” said Paul Boynton, President and Chief Executive Officer. “Along with our sale of the lumber and newsprint assets, we repaid a significant amount of debt and built cash reserves, which will be used to make investments in lowering cost, improving reliability and growing our BioFuture over the coming years. As we experience significant cost inflation and strong demand for cellulose specialties products, which are expected to continue into 2022, it is imperative that we capture fair value for our products to maintain our capital-intensive assets and service our customers. As such, we expect significant price increases on our majority of cellulose specialties contracts in 2022.”
Source: Rayonier Advanced Materials
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