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Jun 27, 2020

Rayonier AM Q2 2020 Earnings Report

Rayonier AM's Q2 2020 results were impacted by COVID-19, but the company focused on cost control and cash flow improvement.

Key Takeaways

Rayonier Advanced Materials reported a loss from continuing operations of $13 million for the second quarter of 2020, which was $6 million better than the comparable quarter in 2019. The company's EBITDA was $19 million, down $2 million from the same quarter in 2019. COVID-19 and non-cash corporate expenses offset improvements in Forest Products and Paperboard. The company generated $16 million of free cash flow and expects a $31 million cash refund in the fourth quarter from 2019 taxes.

Second quarter loss from continuing operations was $13 million, $6 million better than comparable quarter in 2019.

Second quarter EBITDA of $19 million, down $2 million from comparable quarter in 2019.

High Purity Cellulose segment improved from first quarter of 2020 driven by higher commodity volumes and lower costs.

$16 million of Free Cash Flow generated in the second quarter, improving liquidity to $166 million.

Total Revenue
$397M
Previous year: $488M
-18.6%
EPS
-$0.2
Previous year: -$0.35
-42.9%
Interest Expense
$16M
Gross Profit
$20M
Previous year: $25.4M
-21.4%
Cash and Equivalents
$49M
Previous year: $90.1M
-45.6%
Free Cash Flow
$16M
Previous year: $16M
-0.2%
Total Assets
$2.45B
Previous year: $2.65B
-7.7%

Rayonier AM

Rayonier AM

Rayonier AM Revenue by Segment

Forward Guidance

The company suspended its guidance due to the uncertainty of the magnitude and timing of economic recovery due to the COVID-19 pandemic and the risk of supply chain disruptions beyond the control of the Company.

Revenue & Expenses

Visualization of income flow from segment revenue to net income