Loading...
•
Jul 01, 2023
Rayonier AM Q2 2023 Earnings Report
Rayonier AM's financial performance reflected shifting market conditions across several key end markets.
Key Takeaways
Rayonier Advanced Materials Inc. reported a net loss of $17 million for the quarter ended July 1, 2023. The company is revising down its 2023 Adjusted EBITDA guidance but raising its free cash flow guidance as it reduces capital expenditures and monetizes additional working capital.
Loss from continuing operations for the second quarter was $16 million, an improvement of $9 million over the prior year quarter.
Adjusted EBITDA from continuing operations for the second quarter was $27 million, down $7 million from the prior year quarter.
Adjusted Free Cash Flow generation of $52 million; Net Debt reduced to $682 million.
Updated 2023 Adjusted EBITDA guidance to $185 million to $200 million and raises 2023 Adjusted Free Cash Flow guidance to $55 million to $70 million.
Rayonier AM
Rayonier AM
Rayonier AM Revenue by Segment
Revenue by Segment
Paperboard Revenue
CapyFin.comHigh-Yield Pulp Revenue
CapyFin.com Forward Guidance
Overall, loss from continuing operations is expected to be approximately $17 to $2 million, with Adjusted EBITDA of approximately $185 to $200 million for 2023. The Company expects to generate $55 to $70 million of Adjusted Free Cash Flow in 2023.
Positive Outlook
- Average sales prices for cellulose specialties in 2023 are expected to be in the high single-digit percent higher than average 2022 sales prices.
- Market demand for commodity products remains resilient.
- Commodity sales volumes are expected to continue to increase through the end of 2023.
- Paperboard prices are expected to moderate over the balance of the year but remain elevated from 2022 levels.
- Raw material prices are expected to reduce further as pulp markets decline.
Challenges Ahead
- Sales volumes are expected to decrease from prior year due to softness in sales orders driven principally by significant customer destocking.
- Market demand for commodity products at lower prices than the first half of the year.
- The prices for certain inputs have come off the 2022 highs but are expected to remain significantly elevated versus pre-COVID pandemic levels.
- Paperboard sales volumes are expected to improve in the second half of the year.
- High-yield pulp prices have declined due to soft demand and new paper pulp capacity ramping up.
Revenue & Expenses
Visualization of income flow from segment revenue to net income