NYSE$RYAM

Rayonier Advanced Materials Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Rayonier AM's Q1 2022 performance was impacted by higher input costs and supply chain issues, but the company reaffirmed its 2022 guidance and implemented cost surcharges to offset inflation.

Rayonier Advanced Materials reported a net loss of $25 million for the first quarter of 2022, compared to a net loss of $27 million in the same quarter of the previous year. Adjusted EBITDA from continuing operations was $20 million, driven by higher key input costs due to inflation and lower sales volumes due to supply chain constraints and lower production, partially offset by higher sales prices across all segments. The company reaffirms its 2022 guidance of driving EBITDA growth.

  • Reaffirms 2022 guidance of driving EBITDA growth, with expected previously announced slow start in first quarter.
  • Cost surcharge on cellulose specialties and higher prices for other commodity products expected to offset incremental inflation.
  • Reliability and productivity expected to improve with the completion of extensive planned maintenance outages at Jesup and Fernandina facilities in April.
  • Net loss from continuing operations for the first quarter of $24 million, $8 million unfavorable to the comparable period in 2021.

Headline financials

Total Revenue

$352M

Previous: $465M-24.4%
EPS (adj)

-$0.38

Previous: -$0.43+11.6%
Adjusted EBITDA

$20M

Previous: $91M-78.0%
Interest Expense

$16M

Previous: $18M-11.1%
Free Cash Flow

-$24.9M

Previous: -$46.6M+46.6%
Net Income

-$24.9M

Previous: -$27M+8.1%
Operating Income

-$15.8M

Previous: $54.8M-128.8%
Gross Profit

$5.93M

Previous: $84.2M-93.0%
Cash & Equivalents

$179M

Previous: $107M+67.4%
Total Assets

$2.44B

Previous: $2.52B-3.0%
Stock-Based Comp

$2.26M

Previous: -$687K+428.8%

Revenue & EPS history

Rayonier AM · Revenue · Quarterly

$352M

Q1 2022-24.4%vs Q1 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Rayonier AM · $76M total across 2 segments · Q1 2022

  • Paperboard
    $54M+12.5%
  • High-Yield Pulp
    $22M-43.6%

Forward guidance

The Company remains on track to generate improved financial results for 2022 and have taken decisive action to improve operating results and capture value from unique assets and high-quality product offerings.

Tailwinds

  • Demand for cellulose specialties remains strong.
  • Sales prices for cellulose specialties increased double digit percent in the first three months of 2022 and are expected to increase further as the Company realizes the cost surcharge implemented in the second quarter of 2022, designed to offset extraordinary inflation pressures for key inputs.
  • Commodity sales prices in the second quarter of 2022 are also expected to increase from the first quarter as supply for fluff products remains constrained.
  • Paperboard prices continue to increase driven by strong demand in both commercial printing and packaging segments.
  • High-yield pulp markets remain positive with realized prices expected to increase in the second quarter.

Headwinds

  • Total sales volumes for the full year remain dependent on managing ongoing supply-chain constraints and production reliability.
  • Costs are also expected to increase driven by chemical and transportation costs for High-Yield Pulp.
  • The potential longer-term impacts of climate-related risks remain uncertain at this time.
  • Changes in raw material and energy availability and prices could have a material adverse effect on our business, results of operations and financial condition.
  • We are subject to material risks associated with doing business outside of the United States.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.1%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+6.3%

Avg return

30 days after

43%

23 / 53 earnings

Positive

+34.0%

Q1 2016

Best reaction

-40.2%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.7%-0.6%
Q4 2025+16.5%+9.6%+13.3%
Q3 2025-8.9%-4.3%-3.5%
Q1 2025-6.6%-7.1%-7.6%
Q4 2024-17.6%-28.0%-33.5%
Q3 2024+20.9%+22.5%+5.3%
Q2 2024+33.5%+30.0%+39.9%
Q1 2024-0.5%+12.2%+36.9%
Q4 2023-21.9%-13.7%+9.1%
Q3 2023+4.4%+6.7%+17.5%
Q2 2023-23.4%-23.2%-30.2%
Q1 2023-17.5%-21.1%-20.6%
Q4 2022+27.9%+30.3%-3.7%
Q3 2022+31.9%+56.9%+73.8%
Q2 2022+15.3%+26.5%+14.7%
Q1 2022+14.4%+5.3%-25.7%
Q4 2021+6.4%+13.3%+29.9%
Q3 2021-5.3%-10.1%-26.0%
Q2 2021-4.3%+2.4%+3.0%
Q1 2021-26.7%-18.6%-17.4%
Q4 2020-7.8%+22.7%+8.0%
Q3 2020+12.9%+11.4%+114.7%
Q2 2020+10.2%+10.9%+11.9%
Q1 2020+9.4%+41.7%+130.9%
Q4 2019-17.8%-9.3%-55.2%
Q3 2019-18.6%+0.9%-8.8%
Q2 2019-40.2%-41.6%-22.7%
Q1 2019-35.2%-40.0%-52.9%
Q4 2018-6.0%-3.7%-13.1%
Q3 2018+6.0%+5.9%+5.0%
Q2 2018+11.4%+14.6%+17.9%
Q1 2018-8.7%-5.1%-9.6%
Q4 2017+12.3%+10.2%+9.7%
Q3 2017+7.2%+16.0%+30.5%
Q2 2017-5.5%-7.1%-7.1%
Q1 2017-8.1%+0.5%+31.2%
Q4 2016-20.8%-19.6%-21.8%
Q3 2016-5.6%-8.9%+5.1%
Q2 2016+4.7%-11.0%-10.7%
Q1 2016+34.0%
Q4 2015-0.4%
Q3 2015+15.5%
Q2 2015+15.4%
Q1 2014+12.4%
Q1 2015+12.4%
Q4 2012-0.4%
Q1 2013-0.4%
Q4 2014-9.4%
Q3 2013-3.4%
Q3 2014-8.1%
Q2 2013-1.2%
Q4 2013-1.2%
Q2 2014-12.6%

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