Feb 24, 2021 5:14 PM
Fourth Quarter and Full Year 2020 Highlights
The net income from continuing operations for the twelve months ended
“In the face of a very challenging economic backdrop, we delivered significantly improved financial results in 2020 and made substantial progress to position the company to deliver increased value for our shareholders in the coming years,” said
Fourth Quarter 2020 Operating Results
Net sales comprised the following for the periods presented:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
Net sales (in millions) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
High Purity Cellulose |
$ |
294 |
|
|
$ |
253 |
|
|
$ |
304 |
|
|
$ |
1,051 |
|
|
$ |
1,127 |
|
Forest Products |
137 |
|
|
103 |
|
|
77 |
|
|
392 |
|
|
299 |
|
|||||
Paperboard |
49 |
|
|
47 |
|
|
49 |
|
|
190 |
|
|
200 |
|
|||||
Pulp & Newsprint |
45 |
|
|
38 |
|
|
54 |
|
|
172 |
|
|
215 |
|
|||||
Eliminations |
(17 |
) |
|
(17 |
) |
|
(16 |
) |
|
(66 |
) |
|
(66 |
) |
|||||
Total net sales |
$ |
508 |
|
|
$ |
424 |
|
|
$ |
468 |
|
|
$ |
1,739 |
|
|
$ |
1,775 |
|
Operating results comprised the following for the periods presented:
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
Operating income (loss) (in millions) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
High Purity Cellulose |
$ |
(3 |
) |
|
$ |
8 |
|
|
$ |
(4 |
) |
|
$ |
7 |
|
|
$ |
7 |
|
Forest Products |
60 |
|
|
25 |
|
|
(4 |
) |
|
80 |
|
|
(31 |
) |
|||||
Paperboard |
4 |
|
|
3 |
|
|
3 |
|
|
18 |
|
|
4 |
|
|||||
Pulp & Newsprint |
(8 |
) |
|
(6 |
) |
|
(2 |
) |
|
(25 |
) |
|
2 |
|
|||||
Corporate |
(16 |
) |
|
(13 |
) |
|
(25 |
) |
|
(53 |
) |
|
(65 |
) |
|||||
Total operating income (loss) |
$ |
37 |
|
|
$ |
17 |
|
|
(32 |
) |
|
$ |
27 |
|
|
$ |
(83 |
) |
|
High Purity Cellulose
Operating results for the three-month and full year periods ended
Compared to the third quarter of 2020, operating income declined
Forest Products
The operating results for the three-month and full year periods ended
Compared to the third quarter of 2020, the operating results improved by
Paperboard
Operating income improved
Compared to the third quarter of 2020, operating income improved
Pulp & Newsprint
Operating income for the three and twelve months ended
The operating loss was
Corporate
The operating loss for the three months ended
Compared to the third quarter of 2020, the operating loss increased by
Non-Operating Expenses
On
Interest expense for the three months and full year ended
Income Taxes
The effective tax rate benefit for the full year 2020 was 101 percent. The 2020 effective tax rate benefit differs from the federal statutory rate of 21 percent primarily due to benefits from the CARES Act, the release of certain valuation allowances related to nondeductible interest expense, tax return to accrual adjustments, and tax credits, partially offset by increases to uncertain tax position reserves, nondeductible executive compensation, and lower tax deductions on vested stock compensation. The effective tax rate benefit for the full year 2019 was 20 percent.
Cash Flows & Liquidity
For the year ended
For the year ended
The Company ended the year with
Market Assessment
The market assessment represents the Company’s best current estimate of each business in this environment.
High Purity Cellulose
The Company is experiencing increased strong demand for its commodity products and stable demand for its high-value cellulose specialties products. Prices for cellulose specialties are expected to decline slightly relative to 2020 while prices for commodity products, fluff and viscose pulps, will increase significantly in the first quarter and are forecasted to remain elevated for the near-term. Overall, the Company expects increased pricing from 2020 levels while total volumes and mix for 2021 are expected to remain steady compared to 2020 as increased productivity will be offset by an extended maintenance outage at the Jesup facility in the second quarter.
Key costs, including wood, energy and commodity chemical prices declined in 2020 from prior year levels due to both market conditions and strategic actions taken by the Company. However, certain chemical prices are now trending higher and, overall, future input prices and availability of these inputs remain difficult to predict due to the current unprecedented economic conditions. The Company will also continue to invest in its business to reduce costs, improve reliability and provide new platforms for growth. The Company’s 2020 investment in a green energy project at its Tartas facility will deliver lower costs and improved reliability starting in 2021.
Forest Products
Prices for lumber continue to remain near all-time high levels driven by exceptional demand in the
In
Paperboard
Paperboard prices are expected to increase slightly in early 2021 given solid demand for packaging grades and announced price increases from larger competitors in the industry. Overall profitability is expected to remain flat as price and volume benefits are expected to be offset by increased raw material costs.
Pulp & Newsprint
Pulp and newsprint markets are beginning to recover from lows in 2020 as economies recover from the impacts caused by COVID-19. Larger competitors in both pulp and newsprint markets have recently announced price increases, and the Company expects higher prices for both products in the near-term. Additionally, the Company continues to manage production of its newsprint facility in order to minimize costs and improve sales mix. As such, the Company expects lower newsprint volumes and higher prices in 2021 compared to 2020. Further, the Company is maintaining focus on the expansion of the Envirosmart™ food service bag, launched in late third quarter, targeting the quick service restaurant end-market and used for items such as sandwiches and to-go orders, which have grown and remain strong in the post COVID-19 environment.
Conclusion
"Financial results in 2020 were significantly stronger than 2019 as we were able to manage costs and execute reliably through the bottom of several market cycles, complicated by the volatile impact of COVID-19. We benefited from a strong lumber recovery in the back half of 2020 and now, as we enter 2021, we see very positive momentum in the commodity pulp markets. With price increases in these markets combined with 2020 cost actions, we are well positioned to capture significant incremental cash flow which will allow us to reduce debt, invest in our core High Purity Cellulose business, and drive high-potential growth and innovation projects,” concluded
Conference Call Information
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
Forward-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 Rayonier Advanced Materials’ 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,” “believe,” “intend,” “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. 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 these expectations will be attained and it is possible 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
Our operations are subject to a number of risks and uncertainties including, but not limited to, those listed below. When considering an investment in our securities, you should carefully read and consider these risks, together with all other information in our Annual Report on Form 10-K and our 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 our 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 operating income, adjusted net income and adjusted net debt. These non-GAAP measures are reconciled to each of their respective most directly comparable GAAP financial measures beginning on Schedule D of this earnings release. We believe these non-GAAP measures provide useful information to our board of directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes.
We do not consider these non-GAAP measures an alternative to financial measures determined in accordance with GAAP. The principal limitations of these non-GAAP financial measures are that they may exclude significant expenses and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management’s judgment about which expenses and income items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management provides reconciliations of the non-GAAP financial measures we use to their most directly comparable GAAP measures. Non-GAAP financial measures should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of the Company.
|
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
|
$ |
508 |
|
|
$ |
424 |
|
|
$ |
468 |
|
|
$ |
1,739 |
|
|
$ |
1,775 |
|
Cost of Sales |
(451 |
) |
|
(374 |
) |
|
(456 |
) |
|
(1,601 |
) |
|
(1,721 |
) |
|||||
Gross Margin |
57 |
|
|
50 |
|
|
12 |
|
|
138 |
|
|
54 |
|
|||||
Selling, general & administrative expenses |
(23 |
) |
|
(20 |
) |
|
(18 |
) |
|
(85 |
) |
|
(90 |
) |
|||||
Duties |
10 |
|
|
(8 |
) |
|
(7 |
) |
|
(10 |
) |
|
(22 |
) |
|||||
Other operating income (expense), net |
(7 |
) |
|
(5 |
) |
|
(19 |
) |
|
(16 |
) |
|
(25 |
) |
|||||
Operating Income (Loss) |
37 |
|
|
17 |
|
|
(32 |
) |
|
27 |
|
|
(83 |
) |
|||||
Interest expense |
(17 |
) |
|
(16 |
) |
|
(18 |
) |
|
(64 |
) |
|
(60 |
) |
|||||
Interest income and other, net |
(9 |
) |
|
— |
|
|
(11 |
) |
|
(9 |
) |
|
(5 |
) |
|||||
Income (Loss) From Continuing Operations Before Income Taxes |
11 |
|
|
1 |
|
|
(61 |
) |
|
(46 |
) |
|
(148 |
) |
|||||
Income tax benefit (expense) |
(1 |
) |
|
28 |
|
|
4 |
|
|
47 |
|
|
30 |
|
|||||
Equity in income (loss) of equity method investment |
(1 |
) |
|
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|||||
Income (Loss) from Continuing Operations |
$ |
9 |
|
|
$ |
29 |
|
|
$ |
(57 |
) |
|
$ |
— |
|
|
$ |
(119 |
) |
Income (loss) from discontinued operations, net of taxes |
— |
|
|
— |
|
|
86 |
|
|
1 |
|
|
96 |
|
|||||
Net Income (Loss) Attributable to the Company |
9 |
|
|
29 |
|
|
29 |
|
|
1 |
|
|
(22 |
) |
|||||
Mandatory convertible stock dividends |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9 |
) |
|||||
Net Income (Loss) Available to Common Stockholders |
$ |
9 |
|
|
$ |
29 |
|
|
$ |
29 |
|
|
$ |
1 |
|
|
$ |
(31 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations |
$ |
0.14 |
|
|
$ |
0.46 |
|
|
$ |
(0.91 |
) |
|
$ |
— |
|
|
$ |
(2.33 |
) |
Income from discontinued operations |
— |
|
|
— |
|
|
1.36 |
|
|
0.01 |
|
|
1.76 |
|
|||||
Net income (loss) per common share - Basic |
$ |
0.14 |
|
|
$ |
0.46 |
|
|
$ |
0.45 |
|
|
$ |
0.01 |
|
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted Earnings Per Common Share: |
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations |
$ |
0.14 |
|
|
$ |
0.45 |
|
|
$ |
(0.91 |
) |
|
$ |
— |
|
|
$ |
(2.33 |
) |
Income from discontinued operations |
— |
|
|
— |
|
|
1.36 |
|
|
0.01 |
|
|
1.76 |
|
|||||
Net income (loss) per common share - Diluted |
$ |
0.14 |
|
|
$ |
0.45 |
|
|
$ |
0.45 |
|
|
$ |
0.01 |
|
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares Used for Determining: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS |
63,344,054 |
|
|
63,310,689 |
|
|
62,975,537 |
|
|
63,241,197 |
|
|
54,511,863 |
|
|||||
Diluted EPS |
64,478,161 |
|
|
63,916,242 |
|
|
62,975,537 |
|
|
63,241,197 |
|
|
54,511,863 |
|
|||||
A |
|
|||||||
|
|||||||
|
2020 |
|
2019 |
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
94 |
|
|
$ |
64 |
|
Other current assets |
540 |
|
|
510 |
|
||
Property, plant and equipment, net |
1,275 |
|
|
1,316 |
|
||
Other assets |
621 |
|
|
590 |
|
||
|
$ |
2,530 |
|
|
$ |
2,480 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Debt due within one year |
$ |
17 |
|
|
$ |
19 |
|
Other current liabilities |
276 |
|
|
267 |
|
||
Long-term debt and finance lease obligations |
1,067 |
|
|
1,063 |
|
||
Non-current environmental liabilities |
163 |
|
|
160 |
|
||
Other non-current liabilities |
312 |
|
|
288 |
|
||
Total stockholders’ equity |
695 |
|
|
683 |
|
||
|
$ |
2,530 |
|
|
$ |
2,480 |
|
B |
Condensed Consolidated Statements of Cash Flows
|
|||||||
|
|||||||
|
Year Ended |
||||||
|
2020 |
|
2019 |
||||
Operating Activities: |
|
|
|
||||
Net income (loss) |
$ |
1 |
|
|
$ |
(22 |
) |
Income from discontinued operations |
(1 |
) |
|
(96 |
) |
||
Adjustments: |
|
|
|
||||
Depreciation and amortization |
151 |
|
|
153 |
|
||
Other items to reconcile net income to cash provided by operating activities |
39 |
|
|
20 |
|
||
Changes in working capital and other assets and liabilities |
(66 |
) |
|
(33 |
) |
||
Cash provided by (used for) operating activities- continuing operations |
124 |
|
|
22 |
|
||
Cash provided by (used for) operating activities- discontinued operations |
— |
|
|
20 |
|
||
Cash Provided by (Used for) Operating Activities |
124 |
|
|
42 |
|
||
|
|
|
|
||||
Investing Activities: |
|
|
|
||||
Capital expenditures |
(77 |
) |
|
(105 |
) |
||
Investment in equity method investment |
(4 |
) |
|
— |
|
||
Proceeds from the sale of assets |
4 |
|
|
2 |
|
||
Cash provided by (used for) investing activities-continuing operations |
(78 |
) |
|
(103 |
) |
||
Cash provided by (used for) investing activities-discontinued operations |
— |
|
|
155 |
|
||
Cash Provided by (Used for) Investing Activities |
(78 |
) |
|
53 |
|
||
|
|
|
|
||||
Financing Activities: |
|
|
|
||||
Changes in debt |
5 |
|
|
(109 |
) |
||
Dividends paid |
— |
|
|
(19 |
) |
||
Common stock repurchased, net of issuances |
— |
|
|
(7 |
) |
||
Debt issuance costs |
(24 |
) |
|
(4 |
) |
||
Cash provided by (used for) financing activities-continuing operations |
(19 |
) |
|
(138 |
) |
||
Cash provided by (used for) financing activities-discontinued operations |
— |
|
|
— |
|
||
Cash Provided by (Used for) Financing Activities |
(19 |
) |
|
(138 |
) |
||
|
|
|
|
||||
Cash and Cash Equivalents: |
|
|
|
||||
Change in cash and cash equivalents |
27 |
|
|
(44 |
) |
||
Net effect of foreign exchange on cash and cash equivalents |
3 |
|
|
(1 |
) |
||
Balance, beginning of year |
64 |
|
|
109 |
|
||
Balance, end of period |
$ |
94 |
|
|
$ |
64 |
|
C |
|
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
Average Sales Prices: |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose
|
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
1,016 |
|
|
$ |
1,020 |
|
|
$ |
992 |
|
|
$ |
992 |
|
|
$ |
1,083 |
|
Forest Products
|
|
|
|
|
|
|
|
|
|
||||||||||
Lumber |
$ |
669 |
|
|
$ |
592 |
|
|
$ |
383 |
|
|
$ |
523 |
|
|
$ |
373 |
|
Paperboard
|
|
|
|
|
|
|
|
|
|
||||||||||
Paperboard |
$ |
1,061 |
|
|
$ |
1,048 |
|
|
$ |
1,098 |
|
|
$ |
1,076 |
|
|
$ |
1,103 |
|
Pulp & Newsprint
|
|
|
|
|
|
|
|
|
|
||||||||||
Pulp |
$ |
445 |
|
|
$ |
486 |
|
|
$ |
440 |
|
|
$ |
470 |
|
|
$ |
499 |
|
Newsprint |
$ |
418 |
|
|
$ |
428 |
|
|
$ |
473 |
|
|
$ |
418 |
|
|
$ |
524 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales Volumes: |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose
|
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
267 |
|
|
229 |
|
|
286 |
|
|
976 |
|
|
964 |
|
|||||
Forest Products
|
|
|
|
|
|
|
|
|
|
||||||||||
Lumber |
176 |
|
|
144 |
|
|
155 |
|
|
611 |
|
|
617 |
|
|||||
Paperboard
|
|
|
|
|
|
|
|
|
|
||||||||||
Paperboard |
47 |
|
|
45 |
|
|
44 |
|
|
176 |
|
|
181 |
|
|||||
Pulp & Newsprint
|
|
|
|
|
|
|
|
|
|
||||||||||
Pulp |
63 |
|
|
49 |
|
|
61 |
|
|
217 |
|
|
207 |
|
|||||
Newsprint |
27 |
|
|
19 |
|
|
44 |
|
|
112 |
|
|
166 |
|
|||||
D |
|
|||||||||||||||||||||||
|
|||||||||||||||||||||||
EBITDA by Segment (a): |
Three Months Ended |
||||||||||||||||||||||
Forest Products |
|
Paperboard |
|
Pulp & Newsprint |
|
High Purity Cellulose |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from continuing operations |
$ |
60 |
|
|
$ |
4 |
|
|
$ |
(6 |
) |
|
$ |
(4 |
) |
|
$ |
(45 |
) |
|
$ |
9 |
|
Depreciation and amortization |
3 |
|
|
4 |
|
|
1 |
|
|
32 |
|
|
1 |
|
|
41 |
|
||||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
|
17 |
|
||||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
||||||
EBITDA |
$ |
63 |
|
|
$ |
8 |
|
|
$ |
(5 |
) |
|
$ |
28 |
|
|
$ |
(26 |
) |
|
$ |
68 |
|
Loss on debt extinguishment |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
|
8 |
|
||||||
Pension settlement (gain) loss |
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
(2 |
) |
|
(3 |
) |
||||||
Duties reversal |
(21 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(21 |
) |
||||||
Adjusted EBITDA |
$ |
42 |
|
|
$ |
8 |
|
|
$ |
(6 |
) |
|
$ |
28 |
|
|
$ |
(20 |
) |
|
$ |
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended |
||||||||||||||||||||||
|
Forest Products |
|
Paperboard |
|
Pulp & Newsprint |
|
High Purity Cellulose |
|
Corporate & Other |
|
Total |
||||||||||||
Income (loss) from continuing operations |
$ |
(4 |
) |
|
$ |
4 |
|
|
$ |
(12 |
) |
|
$ |
(7 |
) |
|
$ |
(39 |
) |
|
$ |
(58 |
) |
Depreciation and amortization |
3 |
|
|
4 |
|
|
1 |
|
|
34 |
|
|
— |
|
|
42 |
|
||||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
18 |
|
|
18 |
|
||||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
(4 |
) |
||||||
EBITDA |
(1 |
) |
|
8 |
|
|
(11 |
) |
|
27 |
|
|
(25 |
) |
|
(2 |
) |
||||||
Pension settlement (gain) loss |
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
(2 |
) |
|
9 |
|
||||||
Severance expense |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
||||||
Loan amendment costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
||||||
Adjusted EBITDA |
$ |
(1 |
) |
|
$ |
8 |
|
|
$ |
— |
|
|
$ |
27 |
|
|
$ |
(25 |
) |
|
$ |
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA by Segment (a): |
Year Ended |
||||||||||||||||||||||
Forest Products |
|
Paperboard |
|
Pulp & Newsprint |
|
High Purity Cellulose |
|
Corporate & Other |
|
Total |
|||||||||||||
Income (loss) from continuing operations |
$ |
80 |
|
|
$ |
18 |
|
|
$ |
(20 |
) |
|
$ |
5 |
|
|
$ |
(83 |
) |
|
$ |
— |
|
Depreciation and amortization |
12 |
|
|
16 |
|
|
4 |
|
|
116 |
|
|
4 |
|
|
152 |
|
||||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
64 |
|
|
64 |
|
||||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(47 |
) |
|
(47 |
) |
||||||
EBITDA |
$ |
92 |
|
|
$ |
34 |
|
|
$ |
(16 |
) |
|
$ |
121 |
|
|
$ |
(62 |
) |
|
$ |
169 |
|
Loss on debt extinguishment |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8 |
|
|
8 |
|
||||||
Pension settlement (gain) loss |
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
(2 |
) |
|
(3 |
) |
||||||
Duties reversal |
(21 |
) |
|
— |
|
0 |
— |
|
|
— |
|
|
— |
|
|
(21 |
) |
||||||
Adjusted EBITDA |
$ |
71 |
|
|
$ |
34 |
|
|
$ |
(17 |
) |
|
$ |
121 |
|
|
$ |
(56 |
) |
|
$ |
153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Year Ended |
||||||||||||||||||||||
|
Forest Products |
|
Paperboard |
|
Pulp & Newsprint |
|
High Purity Cellulose |
|
Corporate & Other |
|
Total |
||||||||||||
Income (loss) from continuing operations |
$ |
(31 |
) |
|
$ |
6 |
|
|
$ |
(3 |
) |
|
$ |
4 |
|
|
$ |
(94 |
) |
|
$ |
(118 |
) |
Depreciation and amortization |
9 |
|
|
16 |
|
|
4 |
|
|
123 |
|
|
1 |
|
|
153 |
|
||||||
Interest expense, net |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
60 |
|
|
60 |
|
||||||
Income tax expense (benefit) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(30 |
) |
|
(30 |
) |
||||||
EBITDA |
$ |
(22 |
) |
|
$ |
22 |
|
|
$ |
1 |
|
|
$ |
127 |
|
|
$ |
(63 |
) |
|
$ |
65 |
|
Pension settlement (gain) loss |
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
(2 |
) |
|
9 |
|
||||||
Severance expense |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
||||||
Non-recurring expense (b) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
||||||
Loan amendment costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
4 |
|
||||||
Insurance recovery |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
(4 |
) |
||||||
Adjusted EBITDA |
$ |
(22 |
) |
|
$ |
22 |
|
|
$ |
12 |
|
|
$ |
127 |
|
|
$ |
(63 |
) |
|
$ |
76 |
|
(a) |
EBITDA is defined as income (loss) from continuing operations before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP measure used by our Chief Operating Decision Maker, existing stockholders and potential stockholders to measure how the Company is performing relative to the assets under management. Adjusted EBITDA is defined as EBITDA adjusted for items management believes do not represent core operations. Management believes this measure is useful to evaluate the Company's performance. |
|
(b) |
Non-recurring expenses are related to the Company’s review of its commodity asset portfolio. |
|
E |
|
|||||||
|
|||||||
|
Year Ended |
||||||
Adjusted Free Cash Flows (a): |
2020 |
|
2019 |
||||
Cash provided by operating activities of continuing operations |
$ |
124 |
|
|
$ |
22 |
|
Capital expenditures, net |
(51 |
) |
|
(75 |
) |
||
Adjusted Free Cash Flows |
$ |
73 |
|
|
$ |
(53 |
) |
(a) |
Adjusted free cash flows is defined as cash provided by (used for) operating activities from continuing operations adjusted for capital expenditures, net of proceeds from sale of assets, excluding strategic capital. 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 our common stock. Adjusted free cash flows is not necessarily indicative of the adjusted free cash flows that may be generated in future periods. |
Adjusted Net Debt (a): |
2020 |
|
2019 |
||||
Debt due within one year |
$ |
17 |
|
|
$ |
19 |
|
Long-term debt & finance lease obligation |
1,067 |
|
|
1,063 |
|
||
Total debt |
1,084 |
|
|
1,082 |
|
||
Original issue discount, premiums and debt issuance costs |
11 |
|
|
6 |
|
||
Cash and cash equivalents |
(94 |
) |
|
(64 |
) |
||
Adjusted Net Debt |
$ |
1,001 |
|
|
$ |
1,024 |
|
(a) |
Adjusted net debt is defined as the amount of debt after the consideration of the original issue discount, premiums, and debt issuance costs, less cash. Adjusted net debt is a non-GAAP measure of debt and is not necessarily indicative of the adjusted net debt that may occur in future periods. |
|
F |
|
|||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||||||||||||||||||||||
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Income (Loss) from Continuing Operations (a): |
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
|
$ |
|
Per Diluted Share |
||||||||||||||||||||
Operating Income (Loss) |
$ |
37 |
|
|
|
|
$ |
17 |
|
|
|
|
$ |
(32 |
) |
|
|
|
$ |
27 |
|
|
|
|
$ |
(83 |
) |
|
|
||||||||||
Duties reversal |
(21 |
) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(21 |
) |
|
|
|
— |
|
|
|
|||||||||||||||
Severance expense |
— |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|||||||||||||||
Non-recurring expense (b) |
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|||||||||||||||
Loan amendment costs |
— |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
— |
|
|
|
|
4 |
|
|
|
|||||||||||||||
Insurance recovery |
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(4 |
) |
|
|
|||||||||||||||
Adjusted Operating Income (Loss) |
$ |
16 |
|
|
|
|
$ |
17 |
|
|
|
|
$ |
(30 |
) |
|
|
|
$ |
6 |
|
|
|
|
$ |
(81 |
) |
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Income (Loss) from Continuing Operations |
$ |
9 |
|
|
$ |
0.14 |
|
|
$ |
29 |
|
|
$ |
0.45 |
|
|
$ |
(57 |
) |
|
$ |
(0.91 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(119 |
) |
|
$ |
(2.33 |
) |
Pension settlement (gain) loss |
(3 |
) |
|
(0.04 |
) |
|
— |
|
|
— |
|
|
9 |
|
|
0.14 |
|
|
(3 |
) |
|
(0.04 |
) |
|
9 |
|
|
0.16 |
|
||||||||||
Duties reversal |
(21 |
) |
|
(0.32 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(21 |
) |
|
(0.33 |
) |
|
— |
|
|
— |
|
||||||||||
Severance expense |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
0.02 |
|
|
— |
|
|
— |
|
|
1 |
|
|
0.03 |
|
|||||||||||
Loss on debt extinguishment |
8 |
|
|
0.12 |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
8 |
|
|
0.12 |
|
|
— |
|
|
— |
|
|||||||||||
Non-recurring expense (b) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
0.02 |
|
||||||||||
Loan amendment costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
4 |
|
|
0.07 |
|
||||||||||
Insurance recovery |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
(0.07 |
) |
||||||||||
Tax effects of adjustments |
4 |
|
|
0.07 |
|
|
— |
|
|
— |
|
|
(3 |
) |
|
(0.04 |
) |
|
4 |
|
|
0.07 |
|
|
(2 |
) |
|
$ |
(0.04 |
) |
|||||||||
Adjusted Income (Loss) from Continuing Operations |
$ |
(3 |
) |
|
$ |
(0.03 |
) |
|
$ |
29 |
|
|
$ |
0.45 |
|
|
$ |
(49 |
) |
|
$ |
(0.78 |
) |
|
$ |
(12 |
) |
|
$ |
(0.18 |
) |
|
$ |
(110 |
) |
|
$ |
(2.16 |
) |
(a) |
Adjusted Operating Income (Loss) is defined as operating income adjusted for non-recurring costs related to the Company’s review of its commodity asset portfolio, duties reversal, loan amendment costs, insurance recovery received, and severance expense. Adjusted income (loss) from Continuing Operations is defined as net income (loss) from Continuing Operations adjusted net of tax for non-recurring costs related to the Company’s review of its commodity asset portfolio, loan amendment costs, duties receivable, insurance recovery received, severance expense, pension settlement, and loss on debt extinguishment. Adjusted operating and net income (loss) are not necessarily indicative of results that may be generated in future periods. |
|
(b) |
Non-recurring expenses are related to the Company’s review of its commodity asset portfolio. |
|
G |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224006132/en/
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