Reaffirms 2024 EBITDA and Increases Free Cash Flow Guidance
- Net sales for the first quarter of $388 million, down $79 million from prior year quarter
- Net loss for the first quarter of $2 million, a decline of $4 million from prior year quarter
- Adjusted EBITDA for the first quarter of $52 million, up $1 million from prior year quarter
- Total debt of $779 million; Net Secured Debt of $721 million with a net secured debt ratio of 4.4 times
- 2024 Adjusted EBITDA guidance of $180 million to $200 million
- 2024 Adjusted Free Cash Flow guidance increased to $80 million to $100 million
JACKSONVILLE, Fla. - Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) today reported results for its first quarter ended March 30, 2024.
“First quarter results exceeded our expectations, driven by lower costs and improved demand for cellulose specialties. We delivered a solid $52 million in Adjusted EBITDA to maintain a net secured debt ratio of 4.4 times covenant EBITDA,” stated De Lyle Bloomquist, President and CEO of RYAM. “We also increased capital expenditures to support growth in our Biomaterials strategy and increased net debt to boost inventory levels in preparation for Jesup’s annual outage.”
“The solid first quarter, along with the start-up of the bioethanol facility in Tartas and the April completion of the planned maintenance outage in Jesup, keep us on track to deliver our full-year guidance of $180 to $200 million in Adjusted EBITDA. As a result of the indefinite suspension of operations of our Temiscaming High Purity Cellulose plant and the sale of refund rights to our softwood lumber duties to OCP Lumber LLC, our 2024 Adjusted Free Cash Flow guidance is increased to $80 to $100 million. The suspension at Temiscaming will also reduce our exposure to the volatile commodity viscose market. The potential sale of the Temiscaming Paperboard and High-Yield Pulp facilities is progressing, albeit slower than originally expected, as we manage buyers through the complexity of carving out these assets. While the suspension and asset sale decisions affecting the Temiscaming site have been approached and carried out independently, we believe the suspension will bring clarity to the asset sale diligence process by validating that these assets can be efficiently run separately. Updates on these processes will be provided as appropriate. In the meantime, we are focused on reducing debt with lower earnings volatility as we plan to refinance our senior secured notes prior to them becoming current in early 2025,” concluded Mr. Bloomquist.
Link to full report
Source: RYAM
