NYSE$RYAM
Rayonier Advanced Materials Inc · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Rayonier AM's Q2 2021 earnings significantly surpassed the prior year and sequential quarter, driven by strong cash flows and market recovery.
Rayonier Advanced Materials reported a net income of $122 million, or $1.89 per diluted share, for the second quarter of 2021, compared to a net loss of $13 million, or $0.20 per diluted share, for the same quarter last year. The company's Adjusted EBITDA from continuing operations was $33 million, up $8 million from the comparable quarter in 2020, primarily driven by higher prices for High Purity Cellulose.
- Sale of the lumber and newsprint assets on track to close on August 28, 2021, positioning the Company to pursue disciplined investments in its core High Purity Cellulose business and improve the balance sheet through debt repayment.
- Second quarter net income was $122 million, of which net income from continuing operations was $8 million, $12 million favorable to the comparable period in 2020.
- Second quarter Adjusted EBITDA was $149 million, of which Adjusted EBITDA from continuing operations was $33 million, up $8 million from the comparable quarter in 2020 primarily driven by higher prices for High Purity Cellulose.
- Generated $186 million in cash flow from operations, of which $46 million was generated by continuing operations and $140 million was generated by discontinued operations.
Headline financials
Revenue & EPS history
Rayonier AM · Revenue · Quarterly
$341M
Revenue by segment
Rayonier AM · $94M total across 2 segments · Q2 2021
- Paperboard$57M+32.6%60.6%
- High-Yield Pulp$37M-14.0%39.4%
Forward guidance
Company expects to capture significant Free Cash Flow for the year that will enable it to undertake prudent capital allocation initiatives, including debt paydown and investment in high-return projects in its core business.
Tailwinds
- Pricing levels for the Company’s commodity products increased significantly during the second quarter and the Company expects this upward trend to continue into the third quarter.
- Cellulose specialties volumes are expected to be well above prior year due to strong demand while total segment volumes will decline slightly for the full year mainly due to the length of extended planned maintenance outages.
- Volumes for both cellulose specialties and commodity products are expected to increase significantly in the second half of 2021 from first half levels.
- Paperboard prices are expected to increase further as demand for the Company’s products continues to strengthen, and additionally supported by industry supply disruptions.
- High-yield pulp markets experienced additional price increases during the second quarter that the Company will recognize in the third quarter due to the typical sales lag.
Headwinds
- Key costs are difficult to predict.
- Prices for energy, wood and commodity chemicals as well as logistics costs, have continued to increase during the second quarter and are expected to escalate in the back half of the year.
- Further, logistic and shipping constraints may negatively impact operating and sales results through the end of the year.
- However, pulp market prices are forecasted to decrease later in the year.
- Logistics constraints and higher costs may negatively impact operating results through the end of the year.
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 Q2 2021
-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
| Quarter | Report date | Reaction (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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