NYSE$RYAM

Rayonier Advanced Materials Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong financial results driven by increased productivity and higher prices across all segments, partially offset by inflation.

Rayonier Advanced Materials Inc. reported net income of $30 million for Q3 2022, a significant improvement compared to a net loss of $5 million in the same quarter of the prior year. Adjusted EBITDA from continuing operations increased by 106 percent to $68 million. The company has increased its full year Adjusted EBITDA guidance to exceed $175 million for 2022.

  • Net sales for the third quarter were $466 million, up 25 percent from the prior year quarter.
  • Income from continuing operations for the third quarter was $18 million.
  • Adjusted EBITDA from continuing operations was $68 million, up 106 percent from the prior year quarter.
  • Higher prices across all segments were partially offset by inflation on key input costs.

Headline financials

Total Revenue

$466M

Previous: $374M+24.7%
EPS (adj)

$0.28

Previous: -$0.21+233.3%
Adjusted EBITDA

$68M

Previous: $35M+94.3%
Interest Expense

$16M

Previous: $17M-5.9%
Free Cash Flow

$29.6M

Previous: -$4.76M+722.3%
Net Income

$29.6M

Previous: -$4.76M+722.3%
Operating Income

$28.5M

Previous: $2.83M+909.5%
Gross Profit

$46.5M

Previous: $19.3M+140.7%
Cash & Equivalents

$132M

Previous: $279M-52.8%
Total Assets

$2.34B

Previous: $2.47B-5.6%
Stock-Based Comp

$1.96M

Previous: $1.3M+50.3%

Revenue & EPS history

Rayonier AM · Revenue · Quarterly

$466M

Q3 2022+24.7%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Rayonier AM · $106M total across 2 segments · Q3 2022

  • Paperboard
    $66M+26.9%
  • High-Yield Pulp
    $40M-4.8%

Forward guidance

The Company updated its Adjusted EBITDA guidance to exceed $175 million for 2022, subject to ongoing supply chain constraints. Additionally, the Company remains on track to reduce its net debt level to $725 million by the end of the year.

Tailwinds

  • Paperboard prices are expected to remain elevated in the fourth quarter driven by strong demand in both the commercial printing and packaging end-use markets.
  • Sales volumes and raw material costs are expected to remain steady for Paperboard.
  • Paperboard is anticipated to deliver another solid quarter of Adjusted EBITDA.
  • Realized prices for High-Yield Pulp are still expected to increase in the fourth quarter.
  • Sales volumes for High-Yield Pulp are anticipated to increase significantly as production and logistics constraints improve.

Headwinds

  • Demand for cellulose specialties and commodity products remains strong albeit somewhat tempered as global economic growth slows.
  • Average sales prices are expected to be down modestly in the fourth quarter driven by a greater mix of commodity sales volumes as production and logistics constraints improve for High Purity Cellulose.
  • Key raw material inflation is expected to remain elevated for High Purity Cellulose.
  • Adjusted EBITDA for the High Purity Cellulose segment is expected to be down slightly compared to the third quarter.
  • High-yield pulp markets appear to be peaking as global economic demand slows.

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 Q3 2022

Historical avgQ3 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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