Rayonier Advanced Materials Inc. (the “Company”) (NYSE:RYAM) today reported full year 2018 net income of $128 million, or $1.96 per diluted common share, compared to $325 million, or $5.81 per diluted common share for 2017.
- Full year 2018 net income of $128 million, or $1.96 per diluted common share; adjusted EBITDA of $364 million
- Full year 2018 operating cash flow of $247 million; adjusted free cash flow of $152 million
- Balanced capital allocation with $45 million of debt reductions, $37 million of strategic capital investments, and $72 million returned to stockholders through dividends and stock repurchases
- Achieved 2015 Cost Transformation goal to reduce costs by $140 million over four years
- On-track to deliver $155 million of EBITDA from Strategic Pillars by end of 2020, with $61 million captured in 2018 which includes $25 million from 2015 Cost Transformation goal
- Cellulose specialties prices and volumes in 2019 expected to be stable for the first time in six years
JACKSONVILLE, Fla.--Feb. 13, 2019-- Rayonier Advanced Materials Inc. (the “Company”) (NYSE:RYAM) today reported full year 2018 net income of $128 million, or $1.96 per diluted common share, compared to $325 million, or $5.81 per diluted common share for 2017. Full year adjusted net income was $111 million, or $1.69 per diluted common share, compared to $57 million, or $0.97 per diluted common share in 2017. The 74 percent increase in adjusted net income per common share was due to the November 2017 acquisition of Tembec Inc. (“Tembec”).
Fourth quarter 2018 net income was $13 million, or $0.18 per diluted common share, compared to $295 million, or $5.01 per diluted common share in the fourth quarter of 2017. Fourth quarter 2018 adjusted net income was $13 million, or $0.19 per diluted common share, compared to $29 million, or $0.50 per diluted common share in the fourth quarter of 2017.
The unadjusted earnings for both the full year and fourth quarter 2017 and 2018 include a Gain on Bargain Purchase in 2017 and the related adjustments in 2018. A reconciliation of net income to adjusted net income and the related impact on diluted earnings per share can be found on Schedule F.
“We achieved two significant objectives in 2018: the successful completion of our $140 million 2015 Cost Transformation initiative and the integration of Tembec operations. The principles and culture established during our Cost Transformation initiative helped us navigate difficult market conditions over the past few years, and those same competencies are the foundation of the incremental value we expect to be created from the combined companies,” said Paul Boynton, Chairman, President and Chief Executive Officer. “In 2018, we delivered solid financial results despite volatility in the global economy. Our efforts to create a culture of continuous cost improvement along with the successful integration of Tembec, has positioned the Company to capture enhanced value for our stockholders in 2019 and beyond.”
Full Year and Fourth Quarter 2018 Operating Results
In the following tables, the Company’s net sales and operating income results for the three and twelve month periods ended December 31, 2018 are compared against the prior year comparable period results which included the results of the Tembec acquisition as of November 17, 2017. In addition, the 2018 net sales and operating results are compared against the 2017 combined net sales and operating results which assume that the Company’s prior year comparable periods had been combined with Tembec’s.