RYAM Announces Fourth Quarter and Full Year 2023 Results and Provides Improved Outlook for 2024
-
Net sales for 2023 of
$1,643 million , down$74 million from the prior year
-
Loss from continuing operations for 2023 of
$102 million inclusive of a$62 million non-cash impairment, down$75 million from the prior year
-
Adjusted EBITDA from continuing operations for 2023 of
$139 million
-
Year-to-date cash provided by operating activities of
$136 million ; total debt of$777 million , a reduction of$76 million
-
Adjusted Free Cash Flow year-to-date generation of
$53 million ; Net Secured Debt of$698 million
- Remained in compliance with our debt covenants with a net secured debt ratio of 4.2 times
-
2024 Adjusted EBITDA guidance of
$180 million to$200 million expected to drive$20 million to$40 million of Adjusted Free Cash Flow
“Our EBITDA results for 2023 fell short of expectations reflecting soft demand for cellulose ethers products driven by weak construction activity, lower than expected demand in Paperboard and weak pricing in High-Yield Pulp and commodity pulp products. In response to weaker markets, we implemented cost-cutting measures and strategically scheduled market-driven downtime across all segments. Our primary focus shifted to generating free cash flow, driven predominantly by improvements in working capital and adhering to our lending commitments,” said De
“With an improving outlook aided by a competitor’s closure, coupled with our sales priority of value over volume, we anticipate better results for 2024. Higher pricing for our key cellulose specialties products, along with lower unit production costs for our High Purity Cellulose business, driven by improved productivity and lower key input and logistics costs, are expected to generate higher earnings for this segment. Furthermore, our new bioethanol facility is expected to commence operations in the first quarter of 2024. Paperboard and High-Yield Pulp are also expected to deliver improved results due to lower costs and higher production due to normalized demand. In total, we project an Adjusted EBITDA of
Fourth Quarter 2023 Financial Results
The Company reported a net loss of
The Company operates in the following business segments: High Purity Cellulose, Paperboard and High-Yield Pulp.
Net sales was comprised of the following for the periods presented:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
347 |
|
|
$ |
292 |
|
|
$ |
384 |
|
|
$ |
1,313 |
|
|
$ |
1,336 |
|
Paperboard |
|
55 |
|
|
|
57 |
|
|
|
67 |
|
|
|
219 |
|
|
|
250 |
|
High-Yield Pulp |
|
25 |
|
|
|
25 |
|
|
|
58 |
|
|
|
136 |
|
|
|
160 |
|
Eliminations |
|
(5 |
) |
|
|
(5 |
) |
|
|
(9 |
) |
|
|
(25 |
) |
|
|
(29 |
) |
Net sales |
$ |
422 |
|
|
$ |
369 |
|
|
$ |
500 |
|
|
$ |
1,643 |
|
|
$ |
1,717 |
|
Operating results were comprised of the following for the periods presented:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
(49 |
) |
|
$ |
(6 |
) |
|
$ |
10 |
|
|
$ |
(42 |
) |
|
$ |
31 |
|
Paperboard |
|
8 |
|
|
|
13 |
|
|
|
9 |
|
|
|
37 |
|
|
|
37 |
|
High-Yield Pulp |
|
(5 |
) |
|
|
(6 |
) |
|
|
12 |
|
|
|
(3 |
) |
|
|
16 |
|
Corporate |
|
(15 |
) |
|
|
(15 |
) |
|
|
(15 |
) |
|
|
(57 |
) |
|
|
(58 |
) |
Operating income (loss) |
$ |
(61 |
) |
|
$ |
(14 |
) |
|
$ |
16 |
|
|
$ |
(65 |
) |
|
$ |
26 |
|
High Purity Cellulose
Net sales for the year ended
Net sales for the fourth quarter decreased
Operating results for the quarter and year ended
Year over year, the higher cellulose specialties sales prices and commodity sales volumes and decreased key input and logistics costs were offset by the lower cellulose specialties sales volumes and commodity sales prices and higher labor costs due to inflation. Also contributing to the year-over-year decline in operating results were
In the current quarter, the higher cellulose specialties sales prices and commodity sales volumes, decreased key input, logistics and labor costs and the impact of the timing and extent of maintenance outages were offset by the lower cellulose specialties sales volumes and commodity sales prices.
Compared to the third quarter of 2023, the operating loss increased
Paperboard
Net sales for the year ended
Operating income for the quarter and year ended
Compared to the third quarter of 2023, operating income decreased
High-Yield Pulp
Net sales for the year ended
Operating results for the quarter and year ended
Compared to the third quarter of 2023, operating results improved
Corporate
Operating loss for the quarter and year ended
Non-Operating Income & Expense
Interest expense increased
Interest income increased
Also included in non-operating other income in the year ended
Included in non-operating other income in the year ended
Income Taxes
The effective tax rate on the loss from continuing operations for the quarter and year ended
The effective tax rate on the income from continuing operations for the quarter ended
Discontinued Operations
During the year ended
During the year ended
Cash Flows & Liquidity
For the year ended
For the year ended
For the year ended
The Company ended the year with
In
As of the fourth quarter, the Company’s consolidated secured net leverage ratio was 4.2 times.
2024 Outlook
In
Excluding any assets sales, the Company expects to generate between
The following market assessment represents the Company’s current outlook of its business segments’ future performance.
High Purity Cellulose
Average sales prices for cellulose specialties in 2024 are expected to increase by a low single-digit percentage as compared to average sales prices in 2023. Sales volumes for cellulose specialties are expected to remain flat compared to 2023 as increased volumes from the closure of a competitor’s plant are offset by a favorable change in customer contract terms in the first quarter of 2023 that is not expected to repeat in 2024. Demand for RYAM cellulose specialties will be mixed. Acetate is expected to experience moderate destocking. Ethers volumes are anticipated to improve albeit at lower than historical levels. Other cellulose specialties volumes will benefit from the closure of a competitor’s facility. Demand for RYAM commodity products remains resilient with fluff and viscose prices expected to improve from the fourth quarter of 2023, however not to the level of realized prices in early 2023. Commodity sales volumes are expected to increase in 2024 as the Company focuses on improving productivity, with fluff volume expected to improve due to higher demand and both viscose and paper pulp sales volume expected to decrease. Raw material input and logistics costs are expected to be lower in 2024. Additionally, the Company expects to commission its bioethanol facility in Tartas,
Paperboard
Paperboard prices in 2024 are expected to decrease slightly as compared to the fourth quarter of 2023, while sales volumes are expected to improve as production is ramped up to meet improved customer demand. Raw material prices are expected to increase as purchased pulp prices are forecast to increase from fourth quarter 2023 levels. Overall, EBITDA is expected to remain flat sequentially.
High-Yield Pulp
High-yield pulp prices are expected to increase in the first quarter of 2024 as the Company captures the value of higher index pricing from the latter part of the fourth quarter of 2023. Sales volumes are also expected to increase in the first quarter as production is ramped up to meet customer demand. Overall, the Company expects to generate positive EBITDA from this segment in the coming quarter.
Corporate
Corporate costs are expected to be flat or increase slightly in 2024 as the Company completes the final year of its multi-year ERP implementation. The project will enhance the Company’s operating and reporting systems and is expected to drive additional improvements and efficiencies beginning in 2025.
Biomaterials Strategy
As previously announced at the Company’s Investor Day in
Conference Call Information
RYAM will host a conference call and live webcast at
Investors may listen to the conference call by dialing 877-407-8293, no passcode required. For international parties, dial 201-689-8349. A replay of the teleconference will be available one hour after the call ends until
About RYAM
RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly used in the production of filters, food, pharmaceuticals and other industrial applications. The Company also manufactures products for paper and packaging markets. With manufacturing operations in the
F orward-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 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 Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “target,” “believe,” “intend,” “plan,” “forecast,” “anticipate,” “guidance” and other similar language. However, the absence of these or similar words or expressions does not mean a statement is not forward-looking. Forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. All statements made in this earnings release are made only as of the date set forth at the beginning of this release. The Company undertakes no obligation to update the information made in this release in the event facts or circumstances subsequently change after the date of this release. The Company has not filed its Form 10-K for the year ended
The Company’s operations are subject to a number of risks and uncertainties including, but not limited to, those listed below. When considering an investment in the Company’s securities, you should carefully read and consider these risks, together with all other information in the Company’s Annual Report on Form 10-K and other filings and submissions to the
Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in the Company’s filings with the
Non-GAAP Financial Measures
This earnings release and the accompanying schedules contain certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted free cash flows, adjusted income from continuing operations and adjusted net debt. The Company believes these non-GAAP financial measures provide useful information to its Board of Directors, management and investors regarding its financial condition and results of operations. Management uses these non-GAAP financial measures to compare its performance to that of prior periods for trend analyses, to determine management incentive compensation and for budgeting, forecasting and planning purposes.
The Company does not consider these non-GAAP financial measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they may exclude significant expense and income items that are required by GAAP to be recognized in the consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expense and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures are provided below. Non-GAAP financial measures are not necessarily indicative of results that may be generated in future periods and should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of the Company.
|
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
(in millions, except share and per share information) |
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
422 |
|
|
$ |
369 |
|
|
$ |
500 |
|
|
$ |
1,643 |
|
|
$ |
1,717 |
|
Cost of sales |
|
(395 |
) |
|
|
(360 |
) |
|
|
(456 |
) |
|
|
(1,555 |
) |
|
|
(1,594 |
) |
Gross margin |
|
27 |
|
|
|
9 |
|
|
|
44 |
|
|
|
88 |
|
|
|
123 |
|
Selling, general and administrative expense |
|
(17 |
) |
|
|
(22 |
) |
|
|
(23 |
) |
|
|
(76 |
) |
|
|
(91 |
) |
Foreign exchange gain (loss) |
|
(2 |
) |
|
|
1 |
|
|
|
— |
|
|
|
(3 |
) |
|
|
4 |
|
Asset impairment |
|
(62 |
) |
|
|
— |
|
|
|
— |
|
|
|
(62 |
) |
|
|
— |
|
Other operating expense, net |
|
(7 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
|
|
(10 |
) |
Operating income (loss) |
|
(61 |
) |
|
|
(14 |
) |
|
|
16 |
|
|
|
(65 |
) |
|
|
26 |
|
Interest expense |
|
(22 |
) |
|
|
(21 |
) |
|
|
(17 |
) |
|
|
(74 |
) |
|
|
(66 |
) |
Gain on GreenFirst equity securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Other income, net |
|
1 |
|
|
|
4 |
|
|
|
3 |
|
|
|
7 |
|
|
|
11 |
|
Income (loss) from continuing operations before income tax |
|
(82 |
) |
|
|
(31 |
) |
|
|
2 |
|
|
|
(132 |
) |
|
|
(24 |
) |
Income tax (expense) benefit |
|
21 |
|
|
|
5 |
|
|
|
2 |
|
|
|
32 |
|
|
|
(1 |
) |
Equity in loss of equity method investment |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
Income (loss) from continuing operations |
|
(61 |
) |
|
|
(27 |
) |
|
|
4 |
|
|
|
(102 |
) |
|
|
(27 |
) |
Income from discontinued operations, net of tax |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
Net income (loss) |
$ |
(61 |
) |
|
$ |
(25 |
) |
|
$ |
4 |
|
|
$ |
(102 |
) |
|
$ |
(15 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share |
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations |
$ |
(0.94 |
) |
|
$ |
(0.41 |
) |
|
$ |
0.06 |
|
|
$ |
(1.57 |
) |
|
$ |
(0.42 |
) |
Income from discontinued operations |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
0.19 |
|
Net income (loss) per common share |
$ |
(0.94 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.06 |
|
|
$ |
(1.57 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations |
$ |
(0.94 |
) |
|
$ |
(0.41 |
) |
|
$ |
0.05 |
|
|
$ |
(1.57 |
) |
|
$ |
(0.42 |
) |
Income from discontinued operations |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
0.19 |
|
Net income (loss) per common share |
$ |
(0.94 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.05 |
|
|
$ |
(1.57 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in determining EPS |
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS |
|
65,356,895 |
|
|
|
65,343,418 |
|
|
|
63,983,818 |
|
|
|
65,108,397 |
|
|
|
63,910,010 |
|
Diluted EPS |
|
65,356,895 |
|
|
|
65,343,418 |
|
|
|
66,213,467 |
|
|
|
65,108,397 |
|
|
|
63,910,010 |
|
|
|||||
Condensed Consolidated Balance Sheets |
|||||
(Unaudited) |
|||||
(in millions) |
|||||
|
|
||||
|
2023 |
|
2022 |
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
76 |
|
$ |
152 |
Other current assets |
|
499 |
|
|
538 |
Property, plant and equipment, net |
|
1,075 |
|
|
1,151 |
Other assets |
|
533 |
|
|
507 |
Total assets |
$ |
2,183 |
|
$ |
2,348 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
Debt due within one year |
$ |
25 |
|
$ |
14 |
Other current liabilities |
|
351 |
|
|
340 |
Long-term debt |
|
752 |
|
|
839 |
Non-current environmental liabilities |
|
160 |
|
|
160 |
Other liabilities |
|
148 |
|
|
166 |
Total stockholders’ equity |
|
747 |
|
|
829 |
Total liabilities and stockholders’ equity |
$ |
2,183 |
|
$ |
2,348 |
|
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
(in millions) |
|||||||
|
Year Ended |
||||||
|
2023 |
|
2022 |
||||
Operating Activities |
|
|
|
||||
Net loss |
$ |
(102 |
) |
|
$ |
(15 |
) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
||||
Income from discontinued operations |
|
— |
|
|
|
(12 |
) |
Depreciation and amortization |
|
140 |
|
|
|
135 |
|
Asset impairment |
|
62 |
|
|
|
— |
|
Other |
|
(22 |
) |
|
|
12 |
|
Changes in working capital and other assets and liabilities |
|
58 |
|
|
|
(51 |
) |
Cash provided by operating activities |
|
136 |
|
|
|
69 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures, net of proceeds |
|
(128 |
) |
|
|
(138 |
) |
Cash used in investing activities-continuing operations |
|
(128 |
) |
|
|
(138 |
) |
Cash provided by investing activities-discontinued operations |
|
1 |
|
|
|
44 |
|
Cash used in investing activities |
|
(127 |
) |
|
|
(94 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Changes in debt |
|
(71 |
) |
|
|
(73 |
) |
Other |
|
(16 |
) |
|
|
— |
|
Cash used in financing activities |
|
(87 |
) |
|
|
(73 |
) |
|
|
|
|
||||
Net decrease in cash and cash equivalents |
|
(78 |
) |
|
|
(98 |
) |
Net effect of foreign exchange on cash and cash equivalents |
|
2 |
|
|
|
(3 |
) |
Balance, beginning of period |
|
152 |
|
|
|
253 |
|
Balance, end of period |
$ |
76 |
|
|
$ |
152 |
|
|
||||||||||||||
Sales Volumes and Average Prices |
||||||||||||||
(Unaudited) |
||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Average Sales Prices ($ per metric ton) |
||||||||||||||
High Purity Cellulose |
$ |
1,248 |
|
$ |
1,215 |
|
$ |
1,331 |
|
$ |
1,273 |
|
$ |
1,330 |
Paperboard |
$ |
1,441 |
|
$ |
1,459 |
|
$ |
1,557 |
|
$ |
1,491 |
|
$ |
1,478 |
High-Yield Pulp (external sales) |
$ |
504 |
|
$ |
489 |
|
$ |
802 |
|
$ |
606 |
|
$ |
685 |
|
|
|
|
|
|
|
|
|
|
|||||
Sales Volumes (thousands of metric tons) |
||||||||||||||
High Purity Cellulose |
|
259 |
|
|
217 |
|
|
265 |
|
|
955 |
|
|
918 |
Paperboard |
|
38 |
|
|
39 |
|
|
43 |
|
|
147 |
|
|
169 |
High-Yield Pulp (external sales) |
|
40 |
|
|
39 |
|
|
61 |
|
|
182 |
|
|
191 |
|
||||||||||||||||||
Reconciliation of Non-GAAP Measures |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
(in millions) |
||||||||||||||||||
EBITDA and Adjusted EBITDA by Segment(a) |
||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
(49 |
) |
|
$ |
9 |
|
$ |
(5 |
) |
|
$ |
(16 |
) |
|
$ |
(61 |
) |
Depreciation and amortization |
|
32 |
|
|
|
3 |
|
|
— |
|
|
|
1 |
|
|
|
36 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
21 |
|
|
|
21 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(21 |
) |
|
|
(21 |
) |
EBITDA-continuing operations |
|
(17 |
) |
|
|
12 |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(25 |
) |
Asset impairment |
|
62 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
62 |
|
Adjusted EBITDA-continuing operations |
$ |
45 |
|
|
$ |
12 |
|
$ |
(5 |
) |
|
$ |
(15 |
) |
|
$ |
37 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
(5 |
) |
|
$ |
14 |
|
$ |
(6 |
) |
|
$ |
(30 |
) |
|
$ |
(27 |
) |
Depreciation and amortization |
|
32 |
|
|
|
3 |
|
|
1 |
|
|
|
— |
|
|
|
36 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
19 |
|
|
|
19 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(5 |
) |
|
|
(5 |
) |
EBITDA-continuing operations |
|
27 |
|
|
|
17 |
|
|
(5 |
) |
|
|
(16 |
) |
|
|
23 |
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Adjusted EBITDA-continuing operations |
$ |
27 |
|
|
$ |
17 |
|
$ |
(5 |
) |
|
$ |
(15 |
) |
|
$ |
24 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
11 |
|
|
$ |
10 |
|
$ |
12 |
|
|
$ |
(29 |
) |
|
$ |
4 |
|
Depreciation and amortization |
|
34 |
|
|
|
4 |
|
|
1 |
|
|
|
— |
|
|
|
39 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
15 |
|
|
|
15 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
EBITDA-continuing operations |
|
45 |
|
|
|
14 |
|
|
13 |
|
|
|
(16 |
) |
|
|
56 |
|
Gain on debt extinguishment |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Adjusted EBITDA-continuing operations |
$ |
45 |
|
|
$ |
14 |
|
$ |
13 |
|
|
$ |
(17 |
) |
|
$ |
55 |
|
|
Year Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
(41 |
) |
|
$ |
39 |
|
$ |
(3 |
) |
|
$ |
(97 |
) |
|
$ |
(102 |
) |
Depreciation and amortization |
|
123 |
|
|
|
13 |
|
|
2 |
|
|
|
2 |
|
|
|
140 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
69 |
|
|
|
69 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(32 |
) |
|
|
(32 |
) |
EBITDA-continuing operations |
|
82 |
|
|
|
52 |
|
|
(1 |
) |
|
|
(58 |
) |
|
|
75 |
|
Asset impairment |
|
62 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
62 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
Adjusted EBITDA-continuing operations |
$ |
144 |
|
|
$ |
52 |
|
$ |
(1 |
) |
|
$ |
(56 |
) |
|
$ |
139 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Year Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
33 |
|
|
$ |
39 |
|
$ |
17 |
|
|
$ |
(116 |
) |
|
$ |
(27 |
) |
Depreciation and amortization |
|
117 |
|
|
|
14 |
|
|
2 |
|
|
|
2 |
|
|
|
135 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
64 |
|
|
|
64 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
EBITDA-continuing operations |
|
150 |
|
|
|
53 |
|
|
19 |
|
|
|
(49 |
) |
|
|
173 |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
Severance |
|
— |
|
|
|
— |
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Gain on debt extinguishment |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
Adjusted EBITDA-continuing operations |
$ |
150 |
|
|
$ |
53 |
|
$ |
19 |
|
|
$ |
(45 |
) |
|
$ |
177 |
|
|
Annual Guidance |
||||||
|
2024 |
||||||
|
Low |
|
High |
||||
Loss from continuing operations |
$ |
(34 |
) |
|
$ |
(14 |
) |
Depreciation and amortization |
|
140 |
|
|
|
140 |
|
Interest expense, net |
|
75 |
|
|
|
75 |
|
Income tax benefit(b) |
|
(1 |
) |
|
|
(1 |
) |
EBITDA and Adjusted EBITDA-continuing operations |
$ |
180 |
|
|
$ |
200 |
|
__________________________ | |
(a) |
EBITDA-continuing operations is defined as income (loss) from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA-continuing operations is defined as EBITDA-continuing operations adjusted for items that management believes are not representative of core operations. EBITDA and Adjusted EBITDA are non-GAAP measures used by Management, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. |
(b) |
Estimated using the statutory rates of each jurisdiction and ignoring all permanent book-to-tax differences. |
Adjusted Free Cash Flow - Continuing Operations(a) |
|||||||
|
Year Ended |
||||||
|
2023 |
|
2022 |
||||
Cash provided by operating activities-continuing operations |
$ |
136 |
|
|
$ |
69 |
|
Capital expenditures, net |
|
(83 |
) |
|
|
(104 |
) |
Adjusted free cash flow-continuing operations |
$ |
53 |
|
|
$ |
(35 |
) |
|
Annual |
||||||
|
2024 |
||||||
|
Low |
|
High |
||||
Cash provided by operating activities-continuing operations |
$ |
105 |
|
|
$ |
125 |
|
Capital expenditures, net |
|
(85 |
) |
|
|
(85 |
) |
Adjusted free cash flow-continuing operations |
$ |
20 |
|
|
$ |
40 |
|
__________________________ | |
(a) |
Adjusted free cash flows-continuing operations is defined as cash provided by (used in) operating activities-continuing operations adjusted for capital expenditures, net of proceeds from the sale of assets and excluding strategic capital expenditures. Adjusted free cash flows is a non-GAAP measure of cash generated during a period which is available for dividend distribution, debt reduction, strategic acquisitions and repurchase of the Company’s common stock. |
Adjusted Net Debt and Net Secured Debt(a) |
|||||||
|
|
||||||
|
2023 |
|
2022 |
||||
Debt due within one year |
$ |
25 |
|
|
$ |
14 |
|
Long-term debt |
|
752 |
|
|
|
839 |
|
Total debt |
|
777 |
|
|
|
853 |
|
Unamortized premium, discount and issuance costs |
|
20 |
|
|
|
6 |
|
Cash and cash equivalents |
|
(76 |
) |
|
|
(152 |
) |
Adjusted net debt |
|
721 |
|
|
|
707 |
|
Unsecured debt |
|
(23 |
) |
|
|
(327 |
) |
Net secured debt |
$ |
698 |
|
|
$ |
380 |
|
__________________________ | |
(a) |
Adjusted net debt is defined as the amount of debt after the consideration of debt premium, discount and issuance costs, less cash. Net secured debt is defined as the amount of debt after the consideration of debt premium, discount and issuance costs, less cash and unsecured debt. |
Adjusted Income (Loss) from Continuing Operations(a) |
|||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
||||||||||||||||||||
Income (loss) from continuing operations |
$ |
(61 |
) |
|
$ |
(0.94 |
) |
|
$ |
(27 |
) |
|
$ |
(0.41 |
) |
|
$ |
4 |
|
|
$ |
0.05 |
|
|
$ |
(102 |
) |
|
$ |
(1.57 |
) |
|
$ |
(27 |
) |
|
$ |
(0.42 |
) |
Asset impairment |
|
62 |
|
|
|
0.95 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
62 |
|
|
|
0.96 |
|
|
|
— |
|
|
|
— |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.04 |
|
|
|
1 |
|
|
|
0.01 |
|
Severance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
0.06 |
|
(Gain) loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
0.01 |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(0.01 |
) |
Tax effect of adjustments |
|
(15 |
) |
|
|
(0.23 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15 |
) |
|
|
(0.24 |
) |
|
|
— |
|
|
|
— |
|
Adjusted income (loss) from continuing operations |
$ |
(14 |
) |
|
$ |
(0.22 |
) |
|
$ |
(26 |
) |
|
$ |
(0.40 |
) |
|
$ |
3 |
|
|
$ |
0.04 |
|
|
$ |
(53 |
) |
|
$ |
(0.81 |
) |
|
$ |
(23 |
) |
|
$ |
(0.36 |
) |
__________________________ | |
(a) |
Adjusted income (loss) from continuing operations is defined as income (loss) from continuing operations adjusted net of tax for items that management believes are not representative of core operations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227639214/en/
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