Rayonier Advanced Materials Reports Third Quarter 2018 Results

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  • Third quarter 2018 net income of $38 million and adjusted EBITDA of $99 million
  • Year-to-date diluted earnings per share of $1.82 and adjusted net income per share of $1.53; 264 percent increase in adjusted earnings per share from prior year
  • Year-to-date operating cash flow of $160 million; Adjusted free cash flow of $97 million
  • Increased sequential performance in High Purity Cellulose with continued support from commodity segment earnings
  • Successful execution of Cost Transformation with $38 million of savings achieved year-to-date; Increasing 2018 target by $10 million to $50 million; On-track to deliver $155 million of 3-year strategic EBITDA goal
  • Returned capital of $39 million to stockholders through dividends and share repurchases year-to-date

JACKSONVILLE, Fla.--Nov. 5, 2018-- Rayonier Advanced Materials Inc. (the "Company") (NYSE:RYAM) today reported third quarter 2018 net income of $38 million, or $0.60 per diluted common share, compared to $16 million, or $0.28 per diluted common share in the third quarter of 2017. Year-to-date 2018 net income was $116 million, or $1.82 per diluted common share, compared to $30 million, or $0.46 per diluted common share for the first nine months of 2017. Earnings for both the third quarter and year-to-date 2018 periods increased due to the November 2017 acquisition of Tembec Inc. ("Tembec").

Third quarter 2018 adjusted net income was $35 million, or $0.54 per diluted common share, compared to $10 million, or $0.18 per diluted common share in the third quarter of 2017. Year-to-date adjusted net income was $98 million, or $1.53 per diluted common share, compared to $28 million, or $0.42 per diluted common share in 2017.

A reconciliation of net income to adjusted net income and the related impact on diluted earnings per share can be found on Schedule F.

"Year-to-date we have generated $291 million of adjusted EBITDA, $97 million of adjusted free cash flow, and captured cost transformation and synergy savings of $38 million. Our solid results this quarter allowed us to invest in high-return strategic capital projects, repay debt and return capital to shareholders," said Paul Boynton, Chairman, President and Chief Executive Officer. "With our strong position in High Purity Cellulose, a positive outlook in the Pulp markets, and significant cash generation, we remain committed to our execution focus and opportunities to return capital through share repurchases."

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Source: Rayonier Advanced Materials