Rayonier(US:RYN) ZACKS·2025-03-06 18:06Core Viewpoint - Rayonier Advanced Materials (RYAM) reported a narrower loss in Q4 2024 compared to the previous year, indicating improved operational performance despite flat sales year-over-year [1][12]. Financial Performance - RYAM reported a loss of 10 cents per share in Q4 2024, better than the Zacks Consensus estimate of a loss of 12 cents per share, and an adjusted loss of 22 cents per share in the same quarter last year [1][12]. - The company’s net sales were $422 million in Q4 2024, flat year-over-year, missing the Zacks Consensus Estimate of $436 million [3]. - The cost of sales decreased by 2.5% year-over-year to $385 million, while gross profit increased by 37% to $37 million, resulting in a gross margin of 8.8%, a 240-basis-point improvement year-over-year [3][4]. - Selling, general and administrative expenses surged by 53% year-over-year to $26 million, but operating income improved to $11 million from an operating loss of $61 million in Q4 2023 [4]. - Adjusted EBITDA rose by 38% year-over-year to $51 million, with an adjusted EBITDA margin of 12.1%, up from 8.8% in the previous year [4]. Segment Performance - The High Purity Cellulose segment reported sales of $338 million, down 3% year-over-year, with adjusted EBITDA increasing by 38% to $62 million [5][6]. - The Paperboard segment's sales increased by 9% to $60 million, with a 13% rise in sales volumes, although prices fell by 3% [7]. - The High-Yield Pulp segment saw sales rise by 28% to $32 million, driven by a 4% price increase and a 22.5% increase in volumes, but adjusted EBITDA remained negative at $8 million [8]. Cash Position - RYAM ended 2024 with cash and cash equivalents of $125 million, up from $76 million at the end of 2023, and net cash provided by operating activities was $203 million compared to $136 million in the prior year [9][10]. - Adjusted free cash flow increased to $128 million from $53 million in 2023 [9]. 2024 Performance Overview - For the full year 2024, RYAM reported an adjusted loss of five cents per share, better than the Zacks Consensus Estimate of a loss of eight cents, and a decrease in net sales by 0.8% year-over-year to $1.63 billion [12]. Guidance for 2025 - RYAM anticipates net custodial site costs of $20 - $22 million in 2025 due to the indefinite suspension of Temiscaming HPC operations [13]. - The company expects adjusted EBITDA to range between $215 million and $235 million in 2025, with stronger earnings anticipated in the second half of the year [15]. - Adjusted free cash flow is projected to be between $25 million and $45 million in 2025 [16]. Stock Performance - RYAM shares have increased by 97.1% over the past year, significantly outperforming the industry growth of 18.5% [17].