JACKSONVILLE, Fla. - Rayonier Advanced Materials Inc. (NYSE:RYAM) reported a narrower net loss for the first quarter, though its revenue fell short of analyst expectations.
The company posted a net loss of $2 million, or -$0.02 per share, which was an improvement from the analyst estimate of a -$0.12 per share loss. However, revenue for the quarter was $388 million, below the consensus estimate of $429.87 million.
The company's net sales decreased by $79 million compared to the same quarter last year. Despite this decline, adjusted EBITDA for the quarter was $52 million, a slight increase of $1 million from the previous year.
The company's President and CEO, De Lyle Bloomquist, attributed the first-quarter results to lower costs and improved demand for cellulose specialties, which helped maintain a net secured debt ratio of 4.4 times covenant EBITDA.
Looking ahead, Rayonier (NYSE:RYN) Advanced Materials has reaffirmed its 2024 adjusted EBITDA guidance of $180 million to $200 million and increased its adjusted free cash flow guidance to $80 million to $100 million.
The midpoint of the adjusted EBITDA guidance range is $190 million, which is yet to be compared with analyst consensus as the data is not provided. Similarly, the midpoint of the adjusted free cash flow guidance is $90 million, with no available analyst consensus for comparison.
The company's stock moved down slightly by 0.2% following the earnings release, indicating a relatively muted market response to the revenue miss and the financial results.
In his statement, Bloomquist also mentioned strategic moves such as the increase in capital expenditures to support growth in their Biomaterials strategy and the preparation for the annual outage at the Jesup plant. Additionally, the company is navigating the complexities of potential asset sales and operational suspensions, which are expected to reduce exposure to volatile markets and contribute to lower debt and earnings volatility.
The first quarter's performance and strategic initiatives set the stage for the company's plans to refinance its senior secured notes before they become due in early 2025. Rayonier Advanced Materials continues to focus on reducing debt and aligning its portfolio with long-term growth strategies, aiming for a stable financial future.
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