NYSE$RYAM

Rayonier Advanced Materials Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Rayonier AM reported results with increased adjusted EBITDA driven by higher High Purity Cellulose prices and secured double-digit price increases along with volume improvements for cellulose specialties contracts.

Rayonier Advanced Materials reported a net loss from continuing operations of $28 million for the fourth quarter of 2021, which was $1 million favorable compared to the same period in 2020. Adjusted EBITDA from continuing operations was $26 million, up $12 million from the comparable quarter in 2020, primarily driven by higher High Purity Cellulose prices. The company secured double-digit percent price increases along with volume improvements for cellulose specialties contracts in 2022.

  • Net loss from continuing operations for the fourth quarter was $28 million, $1 million favorable to the comparable period in 2020
  • Adjusted EBITDA from continuing operations was $26 million, up $12 million from the comparable quarter in 2020, driven primarily by higher High Purity Cellulose prices
  • Amidst strong demand, secured double-digit percent price increases along with volume improvements for cellulose specialties contracts in 2022
  • Expect to drive EBITDA growth in 2022 focused on higher pricing, managing costs and improved reliability; expect a stronger back half with extensive maintenance outages heavily weighted to the first half of 2022

Headline financials

Total Revenue

$374M

Previous: $508M-26.4%
EPS (adj)

-$0.37

Previous: -$0.03-1133.3%
Adjusted EBITDA

$26M

Previous: $53M-50.9%
Interest Expense

$17M

Previous: $17M+0.0%
Capital Expenditures

$95.2M

Previous: $34.3M+177.3%
Free Cash Flow

-$68.9M

Previous: $73M-194.4%
Net Income

-$24M

Previous: $9M-366.7%
Operating Income

-$14M

Previous: $37M-137.8%
Gross Profit

$13M

Previous: $57M-77.2%
Cash & Equivalents

$253M

Previous: $94M+169.1%
Total Assets

$2.45B

Previous: $2.53B-3.4%
Stock-Based Comp

$3.48M

Previous: -$240K+1549.6%

Revenue & EPS history

Rayonier AM · Revenue · Quarterly

$374M

Q4 2021-26.4%vs Q4 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Rayonier AM · $81M total across 2 segments · Q4 2021

  • Paperboard
    $52M+6.1%
  • High-Yield Pulp
    $29M-35.6%

Forward guidance

The Company expects to drive EBITDA growth in 2022 focused on higher pricing, managing costs and improved reliability; expect a stronger back half with extensive maintenance outages heavily weighted to the first half of 2022. Sales prices are expected to increase double digit percent for 2022, while sales volumes are also expected to increase.

Tailwinds

  • Sales prices are expected to increase double digit percent for 2022
  • Sales volumes are also expected to increase
  • Demand for commodity products also remains solid
  • Paperboard prices continue to increase driven by strong demand in both commercial printing and packaging segments
  • Demand for renewable packaging continues to grow as consumers and governments drive more sustainable solutions

Headwinds

  • Total sales volumes will be dependent on managing ongoing supply-chain constraints and production reliability, including extensive planned outages in all four facilities in 2022
  • The Company expects a slow start to the year as it executes extensive maintenance outages in its Jesup, Fernandina Beach and Temiscaming facilities to addresses reliability on major pieces of equipment within the production process in the first half of 2022
  • The Company is also managing production reliability ahead of the outages, along with supply chain disruptions and higher raw material and energy costs
  • The Company expects to realize lower prices in the first quarter of 2022 driven by lower selling prices contracted in the fourth quarter for High-Yield Pulp
  • Supply-chain constraints may also continue to impact sales volumes, while the costs are expected to increase driven by chemical and transportation costs for High-Yield Pulp

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 Q4 2021

Historical avgQ4 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

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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