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Dec 31, 2021
Rayonier AM Q4 2021 Earnings Report
Rayonier AM reported results with increased adjusted EBITDA driven by higher High Purity Cellulose prices and secured double-digit price increases along with volume improvements for cellulose specialties contracts.
Key Takeaways
Rayonier Advanced Materials reported a net loss from continuing operations of $28 million for the fourth quarter of 2021, which was $1 million favorable compared to the same period in 2020. Adjusted EBITDA from continuing operations was $26 million, up $12 million from the comparable quarter in 2020, primarily driven by higher High Purity Cellulose prices. The company secured double-digit percent price increases along with volume improvements for cellulose specialties contracts in 2022.
Net loss from continuing operations for the fourth quarter was $28 million, $1 million favorable to the comparable period in 2020
Adjusted EBITDA from continuing operations was $26 million, up $12 million from the comparable quarter in 2020, driven primarily by higher High Purity Cellulose prices
Amidst strong demand, secured double-digit percent price increases along with volume improvements for cellulose specialties contracts in 2022
Expect to drive EBITDA growth in 2022 focused on higher pricing, managing costs and improved reliability; expect a stronger back half with extensive maintenance outages heavily weighted to the first half of 2022
Rayonier AM
Rayonier AM
Rayonier AM Revenue by Segment
Revenue by Segment
Paperboard Revenue
CapyFin.comHigh-Yield Pulp Revenue
CapyFin.com Forward Guidance
The Company expects to drive EBITDA growth in 2022 focused on higher pricing, managing costs and improved reliability; expect a stronger back half with extensive maintenance outages heavily weighted to the first half of 2022. Sales prices are expected to increase double digit percent for 2022, while sales volumes are also expected to increase.
Positive Outlook
- Sales prices are expected to increase double digit percent for 2022
- Sales volumes are also expected to increase
- Demand for commodity products also remains solid
- Paperboard prices continue to increase driven by strong demand in both commercial printing and packaging segments
- Demand for renewable packaging continues to grow as consumers and governments drive more sustainable solutions
Challenges Ahead
- Total sales volumes will be dependent on managing ongoing supply-chain constraints and production reliability, including extensive planned outages in all four facilities in 2022
- The Company expects a slow start to the year as it executes extensive maintenance outages in its Jesup, Fernandina Beach and Temiscaming facilities to addresses reliability on major pieces of equipment within the production process in the first half of 2022
- The Company is also managing production reliability ahead of the outages, along with supply chain disruptions and higher raw material and energy costs
- The Company expects to realize lower prices in the first quarter of 2022 driven by lower selling prices contracted in the fourth quarter for High-Yield Pulp
- Supply-chain constraints may also continue to impact sales volumes, while the costs are expected to increase driven by chemical and transportation costs for High-Yield Pulp
Revenue & Expenses
Visualization of income flow from segment revenue to net income