JACKSONVILLE, Fla.--(BUSINESS WIRE)--Rayonier Advanced Materials Inc. (NYSE: RYAM) (the “Company”), the global leader in High Purity Cellulose, outlined its financial growth strategy during the 2023 Investor Day event earlier today.
De Lyle W. Bloomquist, RYAM’s President and Chief Executive Officer, stated, “Looking beyond the current headwinds, RYAM has a tremendous opportunity to drive significant upside for its shareholders through capturing value from our Cellulose Specialties offerings, unlocking the potential of our Biomaterials business, reducing our commodity exposure, and addressing our balance sheet."
- Core Cellulose Specialties business expected to benefit from recent capacity closure in the industry.
- Focus on generating free cash flow and repaying debt to position the Company to refinance its 2026 Notes in 2024.
- Investments to expand Biomaterials business provide compelling growth prospects financed with low-cost capital.
- Conducting strategic review of Temiscaming site including a potential sale of non-core businesses with proceeds expected to be applied toward debt reduction.
- Executing strategy to minimize negative EBITDA impact of commodity viscose and paper pulp products.
- Demonstrating a willingness to curtail production based on market conditions.
- Near-term hurdles with expected lower third-quarter results and guidance for the full year. A more detailed update to be provided at the next quarter earnings call in early November.
- Financial vision centered on achieving $325 million in annual EBITDA over the next five years.
A replay of the 2023 Investor Day event will be available tomorrow at www.RYAM.com in the Investors section.
RYAM is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals, and other industrial applications. The Company also manufactures products for paper and packaging markets. With manufacturing operations in the U.S., Canada, and France, RYAM employs just over 2,500 people and generated an estimated $1.7 billion of revenues in 2022. More information is available at www.RYAM.com.
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 Rayonier Advanced Materials’ or future or expected 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," "believe," "intend," "anticipate," and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, 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. 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.
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 our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law.