Fourth Quarter and Full Year 2020 Highlights
- Fourth quarter and full year income from continuing operations was $9 million, and $0 million, respectively, $66 million and $119 million higher than comparable periods in 2019, respectively
- Fourth quarter Adjusted EBITDA from continuing operations of $53 million was up $44 million from the comparable quarter in 2019 primarily driven by higher lumber and High Purity Cellulose prices
- Full year 2020 Adjusted EBITDA from continuing operations of $153 million improved $78 million from the prior year primarily driven by strong demand for lumber and reduced costs across segments as a result of improved reliability
- Generated $73 million of Free Cash Flow through the year ended December 31, 2020 driven by prudent management of capital expenditures and improved working capital; expect $55 million from cash tax refunds during 2021
- Completed refinancing in December to extend maturities, remove financial maintenance covenants and enhance liquidity
JACKSONVILLE, Fla.-- Feb. 24, 2021-- Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) reported income from continuing operations for the quarter ended December 31, 2020 of $9 million or $0.14 per diluted share, compared to a loss from continuing operations of $57 million or $0.91 per diluted share for the same prior year quarter.
The net income from continuing operations for the twelve months ended December 31, 2020 was $0 million, or $0.00 per diluted common share, compared to a net loss of $119 million, or $2.33 per diluted common share for the prior year ended. The significant improvement in the diluted earnings per share was due to higher prices for lumber and High Purity Cellulose, lower costs driven by improved operational reliability and the conversion of the Company’s preferred stock into approximately 13 million shares of common stock in August of 2019.
“In the face of a very challenging economic backdrop, we delivered significantly improved financial results in 2020 and made substantial progress to position the company to deliver increased value for our shareholders in the coming years,” said Paul Boynton, President and Chief Executive Officer. “Through a cash-focused lens, we launched an initiative to think differently about how to manage the business in extremely challenging markets. Despite the outbreak of COVID-19, we executed on our plans to reduce costs, preserve cash and align production to fluctuating market demand. We focused on operating safely, efficiently and reliably to ensure we could help our customers thrive as their markets recovered. By the end of the year, with solid liquidity and sequentially-improved financial performance, we completed a refinancing to position the Company to successfully drive future results. I am proud of the team’s efforts to serve our customers and protect our shareholders.”
Source: Rayonier Advanced Materials