Rayonier Advanced Materials Announces Second Quarter 2021 Results

- Second quarter net income was $122 million, of which net income from continuing operations was $8 million, $12 million favorable to the comparable period in 2020, and net income from discontinued operations was $114 million, $123 million favorable to the comparable period in 2020

- Second quarter Adjusted EBITDA was $149 million, of which Adjusted EBITDA from continuing operations was $33 million, up $8 million from the comparable quarter in 2020 primarily driven by higher prices for High Purity Cellulose. Adjusted EBITDA from discontinued operations was $116 million, up $121 million from the comparable quarter in 2020, driven by higher lumber prices

- Generated $186 million in cash flow from operations, of which $46 million was generated by continuing operations and $140 million was generated by discontinued operations

- Generated $141 million of Free Cash Flow, of which $3 million was generated by continuing operations and $138 million was generated by discontinued operations

Rayonier Advanced Materials Inc. (NYSE:RYAM) (the “Company”) reported net income of $122 million or $1.89 per diluted share, compared to a net loss of $13 million or $0.20 per diluted share for the same prior year quarter. Income from continuing operations for the quarter ended June 26, 2021 was $8 million or $0.13 per diluted share, compared to a loss from continuing operations of $4 million or $0.05 per diluted share for the same prior year quarter. The improvement in the diluted earnings per share was due to higher commodity High Purity Cellulose product sales prices along with stronger cellulose specialties volumes. Income from discontinued operations for the quarter ended June 26, 2021 was $114 million or $1.76 per diluted share, compared to a loss from discontinued operations of $9 million or $0.15 per diluted share for the same prior year quarter. The improvement in the diluted earnings per share was due to higher lumber sales prices. As a result of the announced sale of lumber and newsprint assets, the Company has reclassified certain prior year amounts to conform to the current year presentation for discontinued operations. Unless otherwise stated, information in this press release relates to continuing operations.

“As expected, second quarter operating results were significantly favorable to both the prior year and sequential quarter,” said Paul Boynton, President and Chief Executive Officer. “With strong cash flows generated by the record lumber prices in the second quarter, the pending sale of assets to GreenFirst Forest Products and the market recovery in commodity prices, the Company expects to capture significant Free Cash Flow for the year that will enable it to undertake prudent capital allocation initiatives, including debt paydown and investment in high-return projects in its core business.”