NYSE$RYAM

Rayonier Advanced Materials Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Rayonier AM's financial performance was impacted by inflation, but revenues increased due to higher prices across all segments.

Rayonier Advanced Materials Inc. reported a net loss of $23 million for the quarter ended June 25, 2022. Revenues for the second quarter were $399 million, up 17 percent from the prior year quarter. The company is updating its full year Adjusted EBITDA guidance to exceed $160 million.

  • Revenues for the second quarter were $399 million, up 17 percent from prior year quarter.
  • Net loss from continuing operations for the second quarter was $25 million.
  • Adjusted EBITDA from continuing operations was $34 million, comparable to the same quarter in 2021.
  • Higher prices across all segments were partially offset by inflation on key input costs.

Headline financials

Total Revenue

$399M

Previous: $341M+17.1%
EPS (adj)

-$0.31

Previous: $0.14-321.4%
Adjusted EBITDA

$34M

Previous: $149M-77.2%
Interest Expense

$16M

Previous: $16M+0.0%
Free Cash Flow

-$23.3M

Previous: $122M-119.0%
Net Income

-$23.3M

Previous: $122M-119.0%
Operating Income

-$2.9M

Previous: $1.38M-310.4%
Gross Profit

$26.7M

Previous: $22.3M+19.8%
Cash & Equivalents

$148M

Previous: $215M-31.2%
Total Assets

$2.38B

Previous: $2.65B-10.1%
Stock-Based Comp

$4.47M

Previous: $1M+345.1%

Revenue & EPS history

Rayonier AM · Revenue · Quarterly

$399M

Q2 2022+17.1%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Rayonier AM · $103M total across 2 segments · Q2 2022

  • Paperboard
    $63M+10.5%
  • High-Yield Pulp
    $40M+8.1%

Forward guidance

The Company expects to exceed $160 million of Adjusted EBITDA for 2022, subject to ongoing supply chain constraints and expects to reduce its Net Debt to $725 million by the end of the year.

Tailwinds

  • Demand for cellulose specialties and commodity products remain strong.
  • Average sales prices are expected to remain elevated in the third quarter.
  • Sales volumes are expected to increase significantly as the Company increases productivity with the completion of all of its planned maintenance outages in the first half of 2022.
  • 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 third quarter.

Headwinds

  • Total sales volumes remain dependent on managing ongoing supply-chain constraints.
  • Price increases are expected to offset raw material cost increases in the third quarter, while sales volumes are expected to stay consistent with prior quarter for Paperboard.
  • Sales volumes remain dependent on production and supply chain constraints for High-Yield pulp.
  • The Company’s investment into a bioethanol facility at its Tartas, France facility was expected to be operational in mid-2023 but Given permitting delays the project is currently behind schedule.
  • Potential longer-term impacts of climate-related risks remain uncertain.

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 2022

Historical avgQ2 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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