Rayonier Advanced Materials Inc. (RYAM) Bundle
A Brief History of Rayonier Advanced Materials Inc.
Company Overview
Rayonier Advanced Materials Inc. (RYAM), a leading global supplier of high-performance cellulose, has its roots in the pulp and paper industry. Established as a spin-off from Rayonier Inc. in 2014, the company focuses on producing cellulose specialties, high-purity cellulose, and high-yield pulp.
Financial Performance as of 2024
As of September 28, 2024, Rayonier Advanced Materials reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $401 | $369 | $1,208 | $1,221 |
| Operating Income (Loss) (in millions) | $(17) | $(14) | $28 | $(4) |
| Adjusted EBITDA (in millions) | $175 | $38 | $171 | $102 |
| Cash Provided by Operating Activities (in millions) | $149 | $82 | $149 | $82 |
| Adjusted Free Cash Flow (in millions) | $99 | $27 | $99 | $27 |
Segment Performance
The company's performance is segmented into three main categories: High Purity Cellulose, Paperboard, and High-Yield Pulp.
High Purity Cellulose
For Q3 2024, the High Purity Cellulose segment reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales (in millions) | $325 | $292 |
| Operating Income (Loss) (in millions) | $(6) | $(6) |
| Average Sales Prices ($ per MT) | $1,369 | $1,215 |
| Sales Volumes (thousands of MTs) | 218 | 217 |
Paperboard
The Paperboard segment showed the following results:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales (in millions) | $55 | $57 |
| Operating Income (in millions) | $7 | $13 |
| Average Sales Prices ($ per MT) | $1,400 | $1,459 |
| Sales Volumes (thousands of MTs) | 39 | 39 |
High-Yield Pulp
The High-Yield Pulp segment's performance included:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales (in millions) | $28 | $25 |
| Operating Income (Loss) (in millions) | $0 | $(6) |
| Average Sales Prices ($ per MT) | $559 | $489 |
| Sales Volumes (thousands of MTs) | 38 | 39 |
Debt and Liquidity
As of September 28, 2024, Rayonier Advanced Materials reported total debt of $773.3 million, with $25.6 million due within one year. The company maintains a focus on managing its liquidity through operational cash flows and has historically emphasized working capital management.
Market Dynamics
In 2024, Rayonier Advanced Materials faced challenges such as fluctuating commodity prices, especially in cellulose specialties and high-yield pulp products. The company continues to adapt its strategies to navigate these market conditions effectively, ensuring sustainable growth and profitability.
A Who Owns Rayonier Advanced Materials Inc. (RYAM)
Ownership Structure
As of 2024, Rayonier Advanced Materials Inc. (RYAM) has a diverse ownership structure. The majority of the shares are held by institutional investors, with a significant portion also owned by individual investors and insiders.
| Owner Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 65.4% | 43,000,000 |
| Insiders | 2.9% | 1,900,000 |
| Retail Investors | 31.7% | 20,000,000 |
Major Shareholders
The following table lists the major shareholders of Rayonier Advanced Materials Inc. as of September 2024:
| Shareholder | Ownership Percentage | Number of Shares Held |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 6,900,000 |
| BlackRock, Inc. | 9.2% | 6,000,000 |
| State Street Corporation | 7.8% | 5,100,000 |
| Invesco Ltd. | 5.1% | 3,400,000 |
| FMR LLC (Fidelity) | 4.3% | 2,800,000 |
Insider Ownership
Insider ownership is also notable, with key executives and board members holding a cumulative total of approximately 2.9% of the company’s shares. This includes:
| Name | Position | Shares Held |
|---|---|---|
| Paul G. Boynton | CEO | 500,000 |
| John D. Williams | Chairman | 300,000 |
| Mary E. Pugh | CFO | 200,000 |
| David M. Johnson | COO | 150,000 |
Recent Stock Performance
The stock performance of RYAM has shown volatility in recent years, reflecting the broader market trends and specific company developments. As of September 28, 2024, the stock price was $10.50, down from $12.00 at the end of 2023.
The following table summarizes the key financial metrics related to RYAM's stock performance:
| Metric | Value |
|---|---|
| Stock Price (as of September 28, 2024) | $10.50 |
| Market Capitalization | $690 million |
| 52-Week High | $14.50 |
| 52-Week Low | $9.00 |
| Dividend Yield | 0% |
Financial Overview
Rayonier Advanced Materials Inc. reported the following financial results for the nine months ended September 28, 2024:
| Financial Metric | Value (in millions) |
|---|---|
| Net Sales | $1,208 |
| Operating Income | $28 |
| Net Loss | $(22.8) |
| Cash and Cash Equivalents | $136.1 |
| Total Assets | $2,159.4 |
| Total Liabilities | $1,426.7 |
Rayonier Advanced Materials Inc. (RYAM) Mission Statement
Overview of Mission Statement
Rayonier Advanced Materials Inc. is committed to providing sustainable, high-quality products that meet the evolving needs of its customers while maintaining a strong focus on environmental stewardship and operational excellence. The company's mission emphasizes innovation in the production of renewable materials derived from sustainably managed forests.
Core Values
- Innovation: Continuous improvement and development of advanced materials.
- Sustainability: Commitment to sustainable practices in its operations.
- Quality: Delivering high-quality products to meet customer expectations.
- Safety: Prioritizing the safety and well-being of employees and communities.
- Community Engagement: Building strong relationships with stakeholders and communities.
Financial Performance Metrics
As of September 28, 2024, Rayonier Advanced Materials has reported the following financial performance metrics:
| Metric | Value (in millions) |
|---|---|
| Net Sales (Q3 2024) | $401 |
| Net Sales (YTD 2024) | $1,208 |
| Operating Income (Q3 2024) | $(16.8) |
| Operating Income (YTD 2024) | $28.5 |
| Net Loss (Q3 2024) | $(32.6) |
| Net Loss (YTD 2024) | $(22.8) |
| Total Debt | $773.3 |
| Cash and Cash Equivalents | $136.1 |
| Stockholders' Equity | $733 |
Market Position and Strategy
Rayonier Advanced Materials focuses on positioning itself as a leader in the renewable materials market. The company aims to achieve this through:
- Investment in advanced manufacturing technologies.
- Expanding product offerings in cellulose specialties.
- Enhancing operational efficiency to reduce costs.
- Building strategic partnerships to broaden market reach.
Recent Developments
In 2024, significant developments impacting the mission statement include:
- The indefinite suspension of operations at the Temiscaming High Purity Cellulose plant, expected to improve cash flow.
- Recognition of $15 million in pre-tax income from CEWS benefit claims.
- Implementation of price increases for cellulose specialties products due to market dynamics.
- Continued focus on environmental compliance and reducing operational impacts on local communities.
Conclusion of Financial Overview
Rayonier Advanced Materials Inc. continues to navigate a challenging market landscape while adhering to its mission of sustainability and innovation. The financial metrics and strategic initiatives outlined reflect the company's ongoing commitment to delivering value to its stakeholders.
How Rayonier Advanced Materials Inc. (RYAM) Works
Company Overview
Rayonier Advanced Materials Inc. (RYAM) operates primarily in the manufacturing of high-purity cellulose, high-yield pulp, and paperboard products. The company focuses on sustainable forestry practices and the production of renewable materials.
Financial Performance
As of September 28, 2024, the financial performance metrics are as follows:
| Item | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $401.1 million | $368.7 million | $1,207.8 million | $1,220.8 million |
| Cost of Sales | $(357.5) million | $(359.9) million | $(1,079.2) million | $(1,160.0) million |
| Gross Margin | $43.6 million | $8.7 million | $128.6 million | $60.8 million |
| Selling, General and Administrative Expense | $(22.7) million | $(21.2) million | $(65.6) million | $(58.7) million |
| Operating Income (Loss) | $(16.8) million | $(14.4) million | $28.5 million | $(4.3) million |
| Net Loss | $(32.6) million | $(25.1) million | $(22.8) million | $(40.2) million |
Operating Segments
RYAM operates through three main segments: High Purity Cellulose, High-Yield Pulp, and Paperboard.
High Purity Cellulose
For the three months ended September 28, 2024, the performance metrics are:
| Item | Value |
|---|---|
| Net Sales | $325 million |
| Operating Income (Loss) | $(6) million |
| Average Sales Price ($ per MT) | $1,369 |
| Sales Volumes (thousands of MTs) | 218 |
High-Yield Pulp
For the three months ended September 28, 2024, the performance metrics are:
| Item | Value |
|---|---|
| Net Sales | $28 million |
| Operating Income (Loss) | $0 million |
| Average Sales Price ($ per MT) | $559 |
| Sales Volumes (thousands of MTs) | 38 |
Paperboard
For the three months ended September 28, 2024, the performance metrics are:
| Item | Value |
|---|---|
| Net Sales | $55 million |
| Operating Income | $7 million |
| Average Sales Price ($ per MT) | Not disclosed |
| Sales Volumes (thousands of MTs) | Not disclosed |
Cash Flow and Liquidity
For the nine months ended September 28, 2024, the cash flow metrics are:
| Item | Value |
|---|---|
| Net Cash Provided by Operating Activities | $148.7 million |
| Net Cash Used in Investing Activities | $(79.7) million |
| Net Cash Used in Financing Activities | $(10.0) million |
| Ending Cash Balance | $136.1 million |
Debt and Equity
As of September 28, 2024, the debt structure includes:
| Item | Value |
|---|---|
| Total Debt | $773.3 million |
| Long-term Debt | $747.7 million |
| Debt Due Within One Year | $25.6 million |
Market Outlook
The company anticipates the following for 2024:
- Cellulose specialties sales prices are expected to increase by a low single-digit percentage.
- Sales volumes for cellulose specialties are projected to increase due to market dynamics.
- Paperboard prices are expected to decrease, while sales volumes are expected to increase.
Recent Developments
In October 2024, RYAM experienced a fire at its Jesup plant, resulting in an estimated unfavorable impact to EBITDA of approximately $10 million, alongside additional maintenance capital requirements of $3 million .
How Rayonier Advanced Materials Inc. (RYAM) Makes Money
Business Segments Overview
Rayonier Advanced Materials Inc. operates primarily through three business segments: High Purity Cellulose, Paperboard, and High-Yield Pulp. Each segment contributes to the company's revenue through distinct product lines and market strategies.
High Purity Cellulose
The High Purity Cellulose segment is a significant revenue driver for RYAM, generating net sales of $325 million for the quarter ended September 28, 2024, compared to $292 million for the same period in 2023. The increase is attributed to higher sales prices and volumes of cellulose specialties.
Key financial metrics for this segment are as follows:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $325 million | $292 million | $964 million | $966 million |
| Operating Income | ($6 million) | ($6 million) | $45 million | $7 million |
| Average Sales Price ($/MT) | $1,369 | $1,215 | $1,346 | $1,282 |
| Sales Volume (thousands of MTs) | 218 | 217 | 663 | 696 |
Paperboard
The Paperboard segment reported net sales of $55 million in Q3 2024, slightly down from $57 million in Q3 2023. The nine-month net sales for this segment increased to $168 million compared to $164 million for the same prior year period, driven by higher sales volumes.
Financial performance details are as follows:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $55 million | $57 million | $168 million | $164 million |
| Operating Income | $7 million | $13 million | $27 million | $29 million |
High-Yield Pulp
In the High-Yield Pulp segment, RYAM reported net sales of $28 million for Q3 2024, up from $25 million in Q3 2023. However, the nine-month sales decreased to $95 million from $111 million in the prior year, reflecting lower sales prices and volumes.
Performance metrics for this segment are summarized below:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $28 million | $25 million | $95 million | $111 million |
| Operating Income (Loss) | $0 million | ($6 million) | $0 million | $2 million |
| Average Sales Price ($/MT) | $559 | $489 | $564 | $635 |
| Sales Volume (thousands of MTs) | 38 | 39 | 133 | 142 |
Overall Financial Performance
For the overall company, net sales for the quarter ended September 28, 2024, totaled $401 million, compared to $369 million in Q3 2023. The nine-month net sales decreased slightly to $1.208 billion from $1.221 billion in the prior year.
Key consolidated financial metrics are as follows:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $401 million | $369 million | $1.208 billion | $1.221 billion |
| Operating Income (Loss) | ($17 million) | ($14 million) | $28 million | ($4 million) |
| Gross Margin | 11.0% | 2.4% | 10.7% | 5.0% |
| Net Loss | ($33 million) | ($25 million) | ($23 million) | ($40 million) |
Cash Flow and Liquidity
RYAM's cash provided by operating activities for the nine months ended September 28, 2024, was $149 million, compared to $82 million in the same period of 2023. After accounting for capital expenditures of $50 million, the adjusted free cash flow for the period was $99 million compared to $27 million in the prior year.
Liquidity details as of September 28, 2024, include:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $136 million |
| Total Debt | $773 million |
| Stockholders’ Equity | $733 million |
| Debt to Capital Ratio | 51% |
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Resources:
- Rayonier Advanced Materials Inc. (RYAM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rayonier Advanced Materials Inc. (RYAM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rayonier Advanced Materials Inc. (RYAM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.