Rayonier Advanced Materials (RYAM) Q4 2023 earnings summary

Executive summary

• FY2023 net sales were $1.643B, down $74M YoY; adjusted EBITDA was $139M versus $177M in 2022, and the $102M net loss included a $62M non-cash impairment.

• Adjusted free cash flow improved to $53M from $(35)M; Q4 net sales were $422M versus $500M a year earlier, with a $61M continuing-operations loss.

Financial highlights

• FY2023 gross margin was $88M versus $123M in 2022; operating loss was $65M versus $66M.

• FY2023 net loss was $102M, or $1.57 diluted loss per share, versus $15M, or $0.23, in 2022.

• Adjusted EBITDA was $139M: High Purity Cellulose $144M, Paperboard $52M, High-Yield Pulp $(1)M and Corporate $(56)M.

• Q4 continuing-operations loss was $61M, including the impairment, versus $27M income in Q4 2022.

Outlook and guidance

• 2024 guidance: adjusted EBITDA of $180M–$200M, excluding asset sales, and adjusted free cash flow of $20M–$40M.

• HPC expects low-single-digit cellulose specialties price growth, flat specialties volumes, lower input and logistics costs, and a stronger second half; 2024 bioethanol EBITDA is targeted at $4M.

• Paperboard volumes are expected to improve as demand recovers, with prices easing slightly; High-Yield Pulp expects higher Q1 prices and volumes and positive EBITDA.

• Tartas Bioethanol is expected to contribute $8M–$10M EBITDA at full scale in 2025; newer biomaterials products target $42M annual EBITDA by 2027.