RYAM Announces Fourth Quarter and Full Year 2023 Results and Provides Improved Outlook for 2024

De Lyle Bloomquist, RYAM’s President and Chief Executive Officer

Financial News
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  • Net sales for 2023 of $1,643 million, down $74 million from the prior year
  • Loss from continuing operations for 2023 of $102 million inclusive of a $62 million non-cash impairment, down $75 million from the prior year
  • Adjusted EBITDA from continuing operations for 2023 of $139 million
  • Year-to-date cash provided by operating activities of $136 million; total debt of $777 million, a reduction of $76 million
  • Adjusted Free Cash Flow year-to-date generation of $53 million; Net Secured Debt of $698 million
  • Remained in compliance with our debt covenants with a net secured debt ratio of 4.2 times
  • 2024 Adjusted EBITDA guidance of $180 million to $200 million expected to drive $20 million to $40 million of Adjusted Free Cash Flow

JACKSONVILLE, Fla. - Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) today reported results for the fourth quarter and full year 2023.

“Our EBITDA results for 2023 fell short of expectations reflecting soft demand for cellulose ethers products driven by weak construction activity, lower than expected demand in Paperboard and weak pricing in High-Yield Pulp and commodity pulp products. In response to weaker markets, we implemented cost-cutting measures and strategically scheduled market-driven downtime across all segments. Our primary focus shifted to generating free cash flow, driven predominantly by improvements in working capital and adhering to our lending commitments,” said De Lyle Bloomquist, RYAM’s President and Chief Executive Officer. “As a result, we concluded the year with $139 million in Adjusted EBITDA and $53 million of free cash flow and remained in compliance with our original debt covenants with a net secured debt ratio of 4.2 times Adjusted EBITDA.

“With an improving outlook aided by a competitor’s closure, coupled with our sales priority of value over volume, we anticipate better results for 2024. Higher pricing for our key cellulose specialties products, along with lower unit production costs for our High Purity Cellulose business, driven by improved productivity and lower key input and logistics costs, are expected to generate higher earnings for this segment. Furthermore, our new bioethanol facility is expected to commence operations in the first quarter of 2024. Paperboard and High-Yield Pulp are also expected to deliver improved results due to lower costs and higher production due to normalized demand. In total, we project an Adjusted EBITDA of $180 to $200 million and free cash flow of $20 to $40 million in 2024,” concluded Mr. Bloomquist.

Fourth Quarter 2023 Financial Results

The Company reported a net loss of $102 million, or $(1.57) per diluted share, for the year ended December 31, 2023, compared to a net loss of $15 million, or $(0.23) per diluted share, for the prior year. Loss from continuing operations for the year ended December 31, 2023 was $102 million, or $(1.57) per diluted share, compared to a loss from continuing operations of $27 million, or $(0.42) per diluted share, for the prior year.

The Company operates in the following business segments: High Purity Cellulose, Paperboard and High-Yield Pulp.


Source: RYAM


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