Group 1 - Rayonier Advanced Materials reported a quarterly loss of $0.10 per share, better than the Zacks Consensus Estimate of a loss of $0.12, and an improvement from a loss of $0.22 per share a year ago, resulting in an earnings surprise of 16.67% [1] - The company posted revenues of $422 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.21%, with year-ago revenues also at $422 million [2] - Rayonier Advanced Materials shares have declined approximately 9.3% since the beginning of the year, contrasting with the S&P 500's decline of 1.8% [3] Group 2 - The earnings outlook for Rayonier Advanced Materials is mixed, with the current consensus EPS estimate for the coming quarter at -$0.01 on revenues of $410.8 million, and $0.29 on revenues of $1.74 billion for the current fiscal year [7] - The Zacks Industry Rank for Paper and Related Products is currently in the top 36% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Company Information - Rayonier Advanced Materials Inc. announced preliminary unaudited financial results for the year ended December 31, 2024[4]. - The company is listed on the New York Stock Exchange under the trading symbol RYAM[2]. - The company is incorporated in the State of Delaware with an I.R.S. Employer Identification Number of 46-4559529[1]. Financial Reporting - The report was issued on February 3, 2025, and is not deemed "filed" under the Securities Exchange Act[5]. - The financial results are detailed in Exhibit 99.1, which is incorporated by reference[4]. - The report includes a cover page interactive data file embedded within the Inline XBRL document[6]. - The press release announcing the financial results is furnished as Exhibit 99.1[4]. - The report was signed on behalf of the company by Gabriela Garcia on February 4, 2025[9]. Management - Gabriela Garcia serves as the Chief Accounting Officer and Vice President, Corporate Controller[9]. - The company has not indicated whether it is an emerging growth company[3].

Core Viewpoint - Rayonier Advanced Materials (RYAM) is anticipated to show improvements in both revenue and loss figures in its upcoming fourth-quarter 2024 results [1] Financial Performance - The Zacks Consensus Estimate for RYAM's fourth-quarter revenues is $436 million, reflecting a 3.3% increase from the previous year [2] - The expected loss for the fourth quarter is 12 cents per share, an improvement from the loss of 22 cents per share reported in the same quarter last year [2] - RYAM's net sales for 2024 decreased by 0.2% to $1.639 billion, with fourth-quarter sales projected at $431 million, indicating a 2% year-over-year growth from $422 million in Q4 2023 [9] - The company reported a loss from continuing operations of $43 million in 2024, improving from a loss of $102 million in the prior year, with an anticipated loss of $17 million for Q4 2024 [10] - Adjusted EBITDA for 2024 was $222 million, a 60% increase year-over-year, with an expected adjusted EBITDA of $51 million for Q4 2024, suggesting a 38% increase from the previous year's quarter [11] Market Dynamics - RYAM has been enhancing its product mix and managing operating costs effectively, leading to improved results [12] - Average sales prices for cellulose specialties are expected to rise, driven by increased demand and the closure of a competitor's plant [12] - Lower paperboard prices in Q4 are expected to be offset by increased sales volumes, while high-yield-pulp prices are anticipated to decline [13] - An isolated fire at the company's plant in Jesup, GA, is expected to impact earnings by $10 million, although the plant resumed operations in less than two weeks [13] Stock Performance - RYAM shares have increased by 60% over the past year, outperforming the industry growth of 40.1% [14]

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, focusing on fundamental analysis and traditional valuation metrics to identify undervalued stocks [2][3] Company Analysis - Rayonier Advanced Materials (RYAM) is highlighted as a strong candidate for value investors, currently holding a Zacks Rank of 1 (Strong Buy) and an A grade in the Value category [3][6] - RYAM has a Price-to-Sales (P/S) ratio of 0.36, significantly lower than the industry average of 0.81, indicating potential undervaluation [4] - The company also has a Price-to-Cash Flow (P/CF) ratio of 9.64, which is attractive compared to the industry average of 14.32, suggesting a favorable cash outlook [5][6] Valuation Metrics - The P/S ratio is favored by value investors as it is less susceptible to manipulation compared to earnings metrics, making it a more reliable performance indicator [4] - RYAM's P/CF ratio has fluctuated between 1.85 and 11.06 over the past year, with a median of 7.09, further supporting its undervaluation status [5]

Group 1 - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] - Fast-moving trending stocks can be risky if their valuations exceed future growth potential, leading to potential losses for investors [2] - Investing in bargain stocks with recent price momentum may be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2 - Rayonier Advanced Materials (RYAM) has shown a price increase of 11.5% over the past four weeks, indicating growing investor interest [4] - RYAM has gained 16.2% over the past 12 weeks and has a beta of 3.01, suggesting it moves significantly more than the market [5] - RYAM holds a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3 - RYAM has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors and drive prices higher [7] - The stock is trading at a Price-to-Sales ratio of 0.36, suggesting it is undervalued, as investors pay only 36 cents for each dollar of sales [7] - RYAM is positioned for further growth, supported by its momentum characteristics and reasonable valuation [8]

Core Viewpoint - Rayonier Advanced Materials (RYAM) is identified as a strong value stock, currently holding a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating its potential for undervaluation in the market [3][7]. Valuation Metrics - RYAM has a Price-to-Book (P/B) ratio of 0.86, significantly lower than the industry average of 2.54, suggesting it is undervalued compared to its peers [4]. - The Price-to-Sales (P/S) ratio for RYAM stands at 0.38, compared to the industry average of 0.85, further indicating its potential undervaluation [5]. - RYAM's Price-to-Cash Flow (P/CF) ratio is 10.66, which is lower than the industry average of 13.74, reinforcing the notion that RYAM may be undervalued based on its cash flow outlook [6]. Investment Outlook - The combination of RYAM's favorable valuation metrics and strong earnings outlook positions it as an attractive investment opportunity for value investors [7].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Rayonier Advanced Materials (RYAM) Analysis - Rayonier Advanced Materials (RYAM) has shown a four-week price change of 11.3%, indicating growing investor interest [4] - Over the past 12 weeks, RYAM's stock has gained 33.2%, with a beta of 3.01, suggesting it moves 201% higher than the market [5] - RYAM has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - RYAM has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.40, suggesting it is undervalued, as investors pay only 40 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides RYAM, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 strategies tailored to help investors find winning stock picks [9]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 reached $51 million, a $27 million or 113% increase year-over-year, with margins nearly doubling to 12.7% [7] - Year-to-date adjusted free cash flow stands at $99 million, indicating strong cash generation capabilities [7] - Net debt decreased by $90 million from the same period in 2023, ending the quarter at $653 million, with net secured leverage at 2.8 times [18] Business Segment Data and Key Metrics Changes - High Purity Cellulose (HPC) segment saw EBITDA rise by $32 million or 119%, driven by higher specialty prices and volumes [8] - Paperboard segment experienced a $6 million EBITDA decline due to reduced sales prices and increased pulp costs [8] - High-Yield Pulp segment improved by $6 million in EBITDA, attributed to higher prices and productivity, despite a decrease in sales volumes [8][16] Market Data and Key Metrics Changes - HPC segment sales increased by $33 million or 11% to $325 million, with pricing up 13% [14] - Paperboard sales decreased by $2 million, driven by lower demand, with EBITDA margins reducing to 20% [15] - High-Yield Pulp sales increased by $3 million, with a 14% rise in sales prices, although sales volumes declined by 3% [16] Company Strategy and Development Direction - The company aims to optimize its balance sheet and explore the sale of non-core businesses while focusing on enhancing the earnings power of its core HPC business [28] - A key initiative includes reducing commodity exposure, with non-fluff commodity revenue dropping to 4% in Q3 2024 from 14% the previous year [30] - The company is advancing its biomaterials strategy, with the Fernandina bioethanol plant project expected to commence operations in late 2026 [31] Management's Comments on Operating Environment and Future Outlook - Management reiterated adjusted EBITDA guidance for the year at $205 million to $215 million, despite a $10 million impact from a fire incident [33] - The company expects cash interest expense for 2024 to be approximately $93 million, with a projected annual cash expense of just over $80 million post-refinancing [34] - Management anticipates lower overall costs in 2024, driven by reduced key input and logistics expenses, although some costs will rise due to maintenance and recovery efforts from the fire [40] Other Important Information - The company successfully refinanced its debt, raising $700 million in secured term loan financing, enhancing financial flexibility [19] - Corporate expenses increased by $5 million due to unfavorable foreign exchange rates and higher variable compensation [9] - The company received a $15 million IRS tax refund and $39 million from the sale of lumber duty rights, which will be partially offset by the impact of the Temiscaming HPC plant suspension [36] Q&A Session Summary Question: Exposure to China and European Construction Demand - Management noted that approximately 20% of total enterprise sales are exposed to China, primarily in acetate and some commodities [48] - Acetate demand remains stable, while the company is reducing exposure to viscose [50] - There is a modest uptick in ethers demand in Europe, attributed to restocking and underlying demand improvements [54] Question: Demand Environment for Acetates and CS - Acetate is expected to remain stable, while other cellulose specialties may see improved demand due to competitor shutdowns [58] - The company is working on price increases for cellulose specialties, but specifics on implementation are still early [60] Question: Spending on Jesup Repairs - Management indicated it is too early to estimate repair costs for the Jesup facility, as investigations are ongoing [63] Question: Temiscaming Plant Closure Impact - The benefit from bridge sales during the Temiscaming plant shutdown has diminished, but some uplift is expected in Q4 [66] Question: Growth in Biomaterials - The biomaterials strategy is central to the company's ESG objectives, leveraging existing resources to produce renewable products [70]

Third Quarter 2024 Financial Presentation Materials November 6, 2024 Safe Harbor Forward-Looking Statements Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to RYAM's future events, developments, or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform A ...

Company Performance - Rayonier Advanced Materials reported a quarterly loss of $0.12 per share, better than the Zacks Consensus Estimate of a loss of $0.18, and an improvement from a loss of $0.41 per share a year ago, representing an earnings surprise of 33.33% [1] - The company posted revenues of $401 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.72%, but showing an increase from year-ago revenues of $369 million [2] - Over the last four quarters, Rayonier Advanced Materials has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Rayonier Advanced Materials shares have increased approximately 100.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 19.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.47 on revenues of $430.7 million, and -$0.48 on revenues of $1.65 billion for the current fiscal year [7] Industry Outlook - The Paper and Related Products industry, to which Rayonier Advanced Materials belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating a challenging environment [8] - The outlook for the industry can materially impact the stock's performance, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]