Rayonier Advanced Matls Inc Stock Price, News & Analysis

Rayonier Advanced Materials (NYSE: RYAM) has finalized the sale of its lumber and newsprint assets to GreenFirst Forest Products for approximately US$235 million, with 85% paid in cash and 15% in shares, subject to a six-month holding period. The company will use the proceeds to reduce debt and invest in its High Purity Cellulose segment. RYAM retains rights related to $110 million in softwood lumber duties. Post-transaction, RYAM owns 28,684,433 GreenFirst shares, constituting 16.2% of the company.

Rayonier Advanced Materials (RYAM) achieved a net income of $122 million ($1.89/share) for Q2 2021, a turnaround from a $13 million loss in the prior year. Higher sales prices in High Purity Cellulose and a strong performance in discontinued operations contributed to this improvement. The company expects significant free cash flow due to strong lumber prices and the pending sale of its lumber and newsprint assets for $214 million. Overall, second quarter results show improved cash flows and operational performance, setting the stage for strategic capital allocation.

Rayonier Advanced Materials (NYSE:RYAM) will release its second quarter 2021 earnings on August 3, 2021, after market close. A conference call is scheduled for August 4, 2021, at 10:00 a.m. ET to discuss earnings. Investors can join the call via phone or online, with a replay available until August 18, 2021.

Rayonier specializes in cellulose-based technologies and generated approximately $1.7 billion in revenue, employing over 4,000 people across operations in the U.S., Canada, and France.

Rayonier Advanced Materials (NYSE:RYAM) reported a loss from continuing operations for Q1 2021 of $27 million, or $0.43 per share, compared to a $25 million loss in Q1 2020. The decline was attributed to higher tax expenses but offset by increased lumber prices and stronger sales in High Purity Cellulose. The company announced the sale of its lumber and newsprint assets to GreenFirst for $214 million, which will help reduce debt and reinvest in core operations. Q1 net sales totaled $465 million, driven by strong performance in High Purity Cellulose and Forest Products segments.

Rayonier Advanced Materials Inc. (NYSE: RYAM) announced a strategic investment in Anomera Inc., the leading producer of Cellulose Nanocrystals (CNC) with a potential annual market exceeding $8 billion. The investment supports the construction of Anomera's Specialty Manufacturing Facility in Quebec, enhancing production capabilities of its eco-friendly products. RYAM increases its stake, becoming Anomera's largest shareholder, with a total investment of $8 million to date. Anomera's products, including DextraCel™ and ChromaPur™, cater to diverse industries, promoting sustainable alternatives to conventional materials.

Rayonier Advanced Materials (RYAM) will announce its Q1 2021 earnings on May 4, 2021, post-market. A subsequent conference call is scheduled for May 5, 2021, at 10:00 a.m. ET, to discuss these results. The call will be accessible via www.rayonieram.com. With over 4,000 employees, the company reported approximately $1.8 billion in revenues, specializing in cellulose-based technologies across various sectors.

Rayonier Advanced Materials (RYAM) has entered a binding asset purchase agreement with GreenFirst Forest Products to sell its lumber and newsprint facilities in Ontario and Québec for approximately US$214 million. This agreement includes 85% cash and 15% shares of GreenFirst. RYAM will also retain all cash generated by the assets and an estimated $110 million in softwood lumber duties. The deal will be finalized in the second half of 2021, pending regulatory approvals. This strategic divestment allows RYAM to focus on its core high purity cellulose business and reduce debt.

Rayonier Advanced Materials (NYSE:RYAM) reported a strong turnaround in Q4 2020 with income from continuing operations of $9 million ($0.14 per diluted share), compared to a loss of $57 million in Q4 2019. Full-year net income was $0 million, improving from a loss of $119 million. Key drivers included higher prices for lumber and High Purity Cellulose, as well as lower operational costs. The company completed a refinancing, boosting liquidity to $215 million. Despite challenges from COVID-19, Rayonier is positioned for growth in 2021 with expected improvements in pricing and production capabilities across its segments.