Rayonier Advanced Materials(US:RYAM)2025-05-06 21:24Financial Performance - Net sales for Q1 2025 were $356 million, a decrease of $32 million or 8.2% from the prior year quarter[5]. - The company reported a net loss of $32 million, or $(0.49) per diluted share, compared to a net loss of $2 million, or $(0.02) per diluted share, in the prior year quarter[6]. - Adjusted EBITDA for Q1 2025 was $17 million, down $35 million from the prior year quarter, including a $12 million non-cash environmental charge[5]. - Overall EBITDA is projected to be $8 million to $10 million for the full year 2025[37]. - EBITDA is expected to approximate negative $5 million for the full year 2025, subject to fluctuations in tariff rates[35]. - The company reported a net loss of $32 million for the three months ended March 29, 2025, translating to a loss of $0.49 per diluted share[73]. - Adjusted net loss for the same period was $32 million, or $0.49 per diluted share, compared to an adjusted net loss of $6 million, or $0.10 per diluted share, for the previous quarter[73]. Cash Flow and Debt - Cash provided by operating activities for Q1 2025 was $40 million, with Adjusted Free Cash Flow generation of $10 million[5][26]. - Cash provided by operating activities increased to $40 million in Q1 2025, up from $12 million in Q1 2024[68]. - The company anticipates cash provided by operating activities to be between $90 million and $100 million for 2025[69]. - Total debt as of March 29, 2025, was $736 million, with a net secured debt of $624 million and a net secured leverage ratio of 2.9 times[5][28]. - Total debt increased to $736 million as of March 29, 2025, from $730 million at the end of 2024[71]. - Long-term debt remained stable at $707 million as of March 29, 2025, compared to $706 million at the end of 2024[71]. Sales and Pricing - Cellulose Specialties net sales decreased by $5 million, or 2%, compared to the prior year quarter, driven by a decrease in sales volumes[8]. - Average sales prices for Cellulose Specialties in 2025 are expected to increase by a mid single-digit percentage compared to 2024[32]. - Average sales price for Cellulose Specialties rose to $1,750 per metric ton, a 1.0% increase from $1,732 in the previous quarter[63]. - The average sales price for High-Yield Pulp decreased to $518 per metric ton, down from $523 in the previous quarter[63]. - Paperboard volumes are expected to increase in 2025, but prices are projected to decline year over year[39]. - High-Yield Pulp prices and volumes are expected to decline in 2025, with overall EBITDA approximating negative $20 million[41]. Future Projections and Strategies - The company projects 2025 Adjusted EBITDA to range between $175 million and $185 million, reflecting impacts from tariffs and operational challenges[4][29]. - Adjusted EBITDA for continuing operations is projected to be between $175 million and $185 million for 2025[66]. - Corporate costs are expected to approximate $70 million for the full year 2025, influenced by $12 million non-cash environmental reserves charges[42]. - The Company secured green capital of €67 million in Q4 2024 to advance its biomaterials strategy, aiming for over $70 million of EBITDA from this business[36]. - The company is exploring the potential sale of its Paperboard and High-Yield Pulp assets, but the process is currently on hold due to global trade uncertainty[30]. - The bioethanol facility in France has been operational since Q1 2024, and the Company is pursuing a similar facility in Fernandina Beach, Florida[38]. - The Company is evaluating investments in new facilities in Georgia and is working on permitting and engineering ahead of final investment decisions later this year[38]. Conference and Reporting - The Company will host a conference call on May 7, 2025, to discuss these results[43]. - Total assets decreased slightly to $2,118 million as of March 29, 2025, from $2,130 million at the end of 2024[58]. - The company incurred indefinite suspension charges of $3 million, impacting the previous quarter's results[73]. - Debt refinancing charges amounted to $10 million in the previous quarter, contributing to the adjusted net loss[73]. - The tax effect of adjustments was a reduction of $3 million in the previous quarter, affecting the overall financial performance[73].