Nov 05, 2024 4:15 PM
“RYAM delivered another solid quarter of financial results as we continued to improve our product mix and manage operating costs. Demand for cellulose specialties has remained solid supporting the improved product mix and margins. We also generated
“With three quarters of strong financial results, we were on track to meet or exceed the
“On the strength of 2024 earnings and a positive outlook for 2025, we refinanced the aggregate principal amounts of both our
Third Quarter 2024 Financial Results
The Company reported a net loss of
The Company operates in three business segments: High Purity Cellulose, Paperboard and High-Yield Pulp.
Net sales was comprised of the following for the periods presented:
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
325 |
|
|
$ |
332 |
|
|
$ |
292 |
|
|
$ |
964 |
|
|
$ |
966 |
|
Paperboard |
|
55 |
|
|
|
60 |
|
|
|
57 |
|
|
|
168 |
|
|
|
164 |
|
High-Yield Pulp |
|
28 |
|
|
|
33 |
|
|
|
25 |
|
|
|
95 |
|
|
|
111 |
|
Eliminations |
|
(7 |
) |
|
|
(6 |
) |
|
|
(5 |
) |
|
|
(19 |
) |
|
|
(20 |
) |
Net sales |
$ |
401 |
|
|
$ |
419 |
|
|
$ |
369 |
|
|
$ |
1,208 |
|
|
$ |
1,221 |
|
Operating results were comprised of the following for the periods presented:
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(in millions) |
|
|
|
|
|
|
|
|
|
||||||||||
High Purity Cellulose |
$ |
(6 |
) |
|
$ |
30 |
|
|
$ |
(6 |
) |
|
$ |
45 |
|
|
$ |
7 |
|
Paperboard |
|
7 |
|
|
|
12 |
|
|
|
13 |
|
|
|
27 |
|
|
|
29 |
|
High-Yield Pulp |
|
— |
|
|
|
1 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
2 |
|
Corporate |
|
(18 |
) |
|
|
(15 |
) |
|
|
(15 |
) |
|
|
(44 |
) |
|
|
(42 |
) |
Operating income (loss) |
$ |
(17 |
) |
|
$ |
28 |
|
|
$ |
(14 |
) |
|
$ |
28 |
|
|
$ |
(4 |
) |
High Purity Cellulose
Net sales for the third quarter increased
Net sales for the nine months ended
Operating results for the quarter and nine months ended
Compared to the second quarter of 2024, net sales decreased
Paperboard
Net sales for the third quarter decreased
Operating income for the quarter and nine months ended
Compared to the second quarter of 2024, operating income decreased
High-Yield Pulp
Net sales for the third quarter increased
Operating results for the quarter and nine months ended
Compared to the second quarter of 2024, operating income decreased
Corporate
Operating loss for the quarter and nine months ended
Compared to the second quarter of 2024, the operating loss increased
Non-Operating Income & Expense
Interest expense for the quarter and nine months ended
Interest income for the quarter and nine months ended
Unfavorable foreign exchange rates during the quarter ended
Also included in “other income, net” in the quarter and nine months ended
Income Taxes
The effective tax rate on the loss from continuing operations for the quarter and nine months ended
The effective tax rate on the loss from continuing operations for the quarter and nine months ended
Discontinued Operations
During the nine months ended
During the quarter and nine months ended
Cash Flows & Liquidity
The Company generated operating cash flows of
The Company used
The Company had
In
In conjunction with the successful refinancing of its capital structure, the Company secured commitments for a five-year
In
The Company ended the third quarter with
As of
Business Outlook
In
In
In
The Company expects to generate
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 as the Company continues to prioritize value over volume. Sales volumes for cellulose specialties are expected to increase compared to 2023 driven by increased volumes from the closure of a competitor’s plant, a modest increase in ethers demand and additional volume sold to customers affected by the indefinite suspension of Temiscaming HPC operations, partially offset by a one-time favorable impact from a change in customer contract terms in the prior year first quarter, customer destocking in the acetate markets and reduced sales related to the fire in
Looking forward to 2025, the Company announced price increases of up to 10 percent for its cellulose specialties products, as contracts allow, and expects higher margins for cellulose specialties in the coming year. The Company expects to continue reducing its exposure to non-fluff commodities in 2025.
Paperboard
Paperboard prices are expected to decrease in the fourth quarter while sales volumes are expected to increase. Raw material prices are expected to increase compared to the third quarter. Overall, the Company expects a decline in EBITDA from this segment in the coming quarters as market pressure continues with new competitive supply coming online in 2025.
High-Yield Pulp
High-Yield Pulp prices are expected to decline in the fourth quarter, while sales volumes are expected to increase significantly due to timing of shipments. Overall, the Company expects to incur a loss in EBITDA from this segment in the coming quarter due to the decline in sales prices. Current pricing is expected to remain low in the coming quarters.
Corporate
Corporate costs are expected to decrease in the fourth quarter subject to fluctuations in foreign exchange rates.
Biomaterials Strategy
The Company continues to invest in new products to provide both increased end market diversity and incremental profitability. These new products will target the growing green energy and renewable product markets. Current projects include:
The Company is also advancing various other projects and expects to secure financing for many of these projects in the coming quarter.
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. RYAM’s specialized assets, capable of creating the world’s leading high purity cellulose products, are also used to produce biofuels, bioelectricity and other biomaterials such as bioethanol and tall oils. The Company also manufactures products for the paper and packaging markets. With manufacturing operations in the
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 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-Q for the quarter 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 flow, adjusted net income, adjusted net debt and net secured 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 |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
401 |
|
|
$ |
419 |
|
|
$ |
369 |
|
|
$ |
1,208 |
|
|
$ |
1,221 |
|
Cost of sales |
|
(357 |
) |
|
|
(371 |
) |
|
|
(360 |
) |
|
|
(1,079 |
) |
|
|
(1,160 |
) |
Gross margin |
|
44 |
|
|
|
48 |
|
|
|
9 |
|
|
|
129 |
|
|
|
61 |
|
Selling, general and administrative expense |
|
(24 |
) |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
(66 |
) |
|
|
(59 |
) |
Foreign exchange gain (loss) |
|
(2 |
) |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
(1 |
) |
Asset impairment |
|
(25 |
) |
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
Indefinite suspension charges |
|
(7 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
(14 |
) |
|
|
— |
|
Other operating income (expense), net |
|
(3 |
) |
|
|
8 |
|
|
|
(2 |
) |
|
|
3 |
|
|
|
(5 |
) |
Operating income (loss) |
|
(17 |
) |
|
|
28 |
|
|
|
(14 |
) |
|
|
28 |
|
|
|
(4 |
) |
Interest expense |
|
(20 |
) |
|
|
(21 |
) |
|
|
(21 |
) |
|
|
(62 |
) |
|
|
(52 |
) |
Other income, net |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
4 |
|
|
|
6 |
|
Income (loss) from continuing operations before income tax |
|
(36 |
) |
|
|
8 |
|
|
|
(31 |
) |
|
|
(30 |
) |
|
|
(50 |
) |
Income tax benefit |
|
4 |
|
|
|
1 |
|
|
|
5 |
|
|
|
6 |
|
|
|
11 |
|
Equity in loss of equity method investment |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Income (loss) from continuing operations |
|
(33 |
) |
|
|
8 |
|
|
|
(27 |
) |
|
|
(26 |
) |
|
|
(41 |
) |
Income from discontinued operations, net of tax |
|
— |
|
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
|
|
1 |
|
Net income (loss) |
$ |
(33 |
) |
|
$ |
11 |
|
|
$ |
(25 |
) |
|
$ |
(23 |
) |
|
$ |
(40 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations |
$ |
(0.49 |
) |
|
$ |
0.12 |
|
|
$ |
(0.41 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.62 |
) |
Income from discontinued operations |
|
— |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
— |
|
Net income (loss) |
$ |
(0.49 |
) |
|
$ |
0.17 |
|
|
$ |
(0.39 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.62 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares used in determining EPS |
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS |
|
65,892,750 |
|
|
|
65,716,362 |
|
|
|
65,343,418 |
|
|
|
65,686,397 |
|
|
|
65,024,654 |
|
Diluted EPS |
|
65,892,750 |
|
|
|
68,790,311 |
|
|
|
65,343,418 |
|
|
|
65,686,397 |
|
|
|
65,024,654 |
|
Condensed Consolidated Balance Sheets (Unaudited) (in millions) |
|||||
|
|
|
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
136 |
|
$ |
76 |
Other current assets |
|
493 |
|
|
499 |
Property, plant and equipment, net |
|
1,022 |
|
|
1,075 |
Other assets |
|
508 |
|
|
533 |
Total assets |
$ |
2,159 |
|
$ |
2,183 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
Debt due within one year |
$ |
25 |
|
$ |
25 |
Other current liabilities |
|
339 |
|
|
351 |
Long-term debt |
|
748 |
|
|
752 |
Non-current environmental liabilities |
|
160 |
|
|
160 |
Other liabilities |
|
154 |
|
|
148 |
Total stockholders’ equity |
|
733 |
|
|
747 |
Total liabilities and stockholders’ equity |
$ |
2,159 |
|
$ |
2,183 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (in millions) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
Operating Activities |
|
|
|
||||
Net loss |
$ |
(23 |
) |
|
$ |
(40 |
) |
Adjustments to reconcile net loss to cash provided by operating activities: |
|
|
|
||||
Income from discontinued operations |
|
(3 |
) |
|
|
(1 |
) |
Depreciation and amortization |
|
103 |
|
|
|
104 |
|
Asset impairment |
|
25 |
|
|
|
— |
|
Other |
|
6 |
|
|
|
(3 |
) |
Changes in working capital and other assets and liabilities |
|
41 |
|
|
|
22 |
|
Cash provided by operating activities |
|
149 |
|
|
|
82 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures, net of proceeds |
|
(80 |
) |
|
|
(95 |
) |
Cash used in investing activities |
|
(80 |
) |
|
|
(95 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Changes in debt |
|
(7 |
) |
|
|
(97 |
) |
Other |
|
(3 |
) |
|
|
(15 |
) |
Cash used in financing activities |
|
(10 |
) |
|
|
(112 |
) |
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
59 |
|
|
|
(125 |
) |
Net effect of foreign exchange on cash and cash equivalents |
|
1 |
|
|
|
— |
|
Balance, beginning of period |
|
76 |
|
|
|
152 |
|
Balance, end of period |
$ |
136 |
|
|
$ |
27 |
|
Sales Volumes and Average Prices (Unaudited) |
||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Average Sales Prices ($ per metric ton) |
||||||||||||||
High Purity Cellulose |
$ |
1,369 |
|
$ |
1,371 |
|
$ |
1,215 |
|
$ |
1,346 |
|
$ |
1,282 |
Paperboard |
$ |
1,400 |
|
$ |
1,384 |
|
$ |
1,459 |
|
$ |
1,388 |
|
$ |
1,508 |
High-Yield Pulp (external sales) |
$ |
559 |
|
$ |
574 |
|
$ |
489 |
|
$ |
564 |
|
$ |
635 |
|
|
|
|
|
|
|
|
|
|
|||||
Sales Volumes (‘000s of metric tons) |
||||||||||||||
High Purity Cellulose |
|
218 |
|
|
225 |
|
|
217 |
|
|
663 |
|
|
696 |
Paperboard |
|
39 |
|
|
44 |
|
|
39 |
|
|
121 |
|
|
109 |
High-Yield Pulp (external sales) |
|
38 |
|
|
45 |
|
|
39 |
|
|
133 |
|
|
142 |
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 |
$ |
(5 |
) |
|
$ |
7 |
|
$ |
1 |
|
|
$ |
(36 |
) |
|
$ |
(33 |
) |
Depreciation and amortization |
|
32 |
|
|
|
4 |
|
|
— |
|
|
|
— |
|
|
|
36 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
20 |
|
|
|
20 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
EBITDA-continuing operations |
|
27 |
|
|
|
11 |
|
|
1 |
|
|
|
(20 |
) |
|
|
19 |
|
Asset impairment |
|
25 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
25 |
|
Indefinite suspension charges |
|
7 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Adjusted EBITDA-continuing operations |
$ |
59 |
|
|
$ |
11 |
|
$ |
1 |
|
|
$ |
(20 |
) |
|
$ |
51 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
30 |
|
|
$ |
13 |
|
$ |
1 |
|
|
$ |
(36 |
) |
|
$ |
8 |
|
Depreciation and amortization |
|
29 |
|
|
|
2 |
|
|
1 |
|
|
|
1 |
|
|
|
33 |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
— |
|
|
|
21 |
|
|
|
21 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
EBITDA-continuing operations |
|
59 |
|
|
|
15 |
|
|
2 |
|
|
|
(15 |
) |
|
|
61 |
|
Indefinite suspension charges |
|
7 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
7 |
|
Adjusted EBITDA-continuing operations |
$ |
66 |
|
|
$ |
15 |
|
$ |
2 |
|
|
$ |
(15 |
) |
|
$ |
68 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
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 |
|
|
Nine Months Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
46 |
|
$ |
28 |
|
$ |
1 |
|
$ |
(101 |
) |
|
$ |
(26 |
) |
||
Depreciation and amortization |
|
90 |
|
|
10 |
|
|
2 |
|
|
1 |
|
|
|
103 |
|
||
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
61 |
|
|
|
61 |
|
||
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
(6 |
) |
|
|
(6 |
) |
||
EBITDA-continuing operations |
|
136 |
|
|
38 |
|
|
3 |
|
|
(45 |
) |
|
|
132 |
|
||
Asset impairment |
|
25 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
25 |
|
||
Indefinite suspension charges |
|
14 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
14 |
|
||
Adjusted EBITDA-continuing operations |
$ |
175 |
|
$ |
38 |
|
$ |
3 |
|
$ |
(45 |
) |
|
$ |
171 |
|
||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Nine Months Ended |
|||||||||||||||||
|
High Purity
|
|
Paperboard |
|
High-Yield
|
|
Corporate |
|
Total |
|||||||||
Income (loss) from continuing operations |
$ |
8 |
|
$ |
30 |
|
$ |
2 |
|
$ |
(81 |
) |
|
$ |
(41 |
) |
||
Depreciation and amortization |
|
91 |
|
|
10 |
|
|
2 |
|
|
1 |
|
|
|
104 |
|
||
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
48 |
|
|
|
48 |
|
||
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
(11 |
) |
|
|
(11 |
) |
||
EBITDA-continuing operations |
|
99 |
|
|
40 |
|
|
4 |
|
|
(43 |
) |
|
|
100 |
|
||
Pension settlement loss |
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
|
2 |
|
||
Adjusted EBITDA-continuing operations |
$ |
99 |
|
$ |
40 |
|
$ |
4 |
|
$ |
(41 |
) |
|
$ |
102 |
|
|
Annual Guidance |
||||||
|
2024 |
||||||
|
Low |
|
High |
||||
Loss from continuing operations |
$ |
(43 |
) |
|
$ |
(34 |
) |
Depreciation and amortization |
|
140 |
|
|
|
140 |
|
Interest expense, net |
|
80 |
|
|
|
80 |
|
Income tax benefit(b) |
|
(13 |
) |
|
|
(13 |
) |
EBITDA-continuing operations |
|
164 |
|
|
|
173 |
|
Asset impairment |
|
25 |
|
|
|
25 |
|
Indefinite suspension charges |
|
16 |
|
|
|
17 |
|
Adjusted EBITDA-continuing operations |
$ |
205 |
|
|
$ |
215 |
|
|
|
(a) |
EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA 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(a) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
Cash provided by operating activities |
$ |
149 |
|
|
$ |
82 |
|
Capital expenditures, net |
|
(50 |
) |
|
|
(55 |
) |
Adjusted free cash flow |
$ |
99 |
|
|
$ |
27 |
|
|
Annual Guidance |
||||||
|
2024 |
||||||
|
Low |
|
High |
||||
Cash provided by operating activities |
$ |
193 |
|
|
$ |
203 |
|
Capital expenditures, net |
|
(78 |
) |
|
|
(78 |
) |
Adjusted free cash flow |
$ |
115 |
|
|
$ |
125 |
|
|
|
(a) |
Adjusted free cash flow is defined as cash provided by (used in) operating activities adjusted for capital expenditures, net of proceeds from the sale of assets and excluding strategic capital expenditures. Adjusted free cash flow 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) |
|||||||
|
|
|
|
||||
Debt due within one year |
$ |
25 |
|
|
$ |
25 |
|
Long-term debt |
|
748 |
|
|
|
752 |
|
Total debt |
|
773 |
|
|
|
777 |
|
Unamortized premium, discount and issuance costs |
|
16 |
|
|
|
20 |
|
Cash and cash equivalents |
|
(136 |
) |
|
|
(76 |
) |
Adjusted net debt |
|
653 |
|
|
|
721 |
|
Unsecured debt |
|
(31 |
) |
|
|
(23 |
) |
Net secured debt |
$ |
622 |
|
|
$ |
698 |
|
|
|
(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 adjusted net debt less unsecured debt. |
Adjusted Income (Loss) from Continuing Operations(a) |
|||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
|
$ |
|
Per
|
||||||||||||||||||||
Income (loss) from continuing operations |
$ |
(33 |
) |
|
$ |
(0.49 |
) |
|
$ |
8 |
|
|
$ |
0.12 |
|
|
$ |
(27 |
) |
|
$ |
(0.41 |
) |
|
$ |
(26 |
) |
|
$ |
(0.40 |
) |
|
$ |
(41 |
) |
|
$ |
(0.62 |
) |
Asset impairment |
|
25 |
|
|
|
0.38 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
|
|
0.38 |
|
|
|
— |
|
|
|
— |
|
Indefinite suspension charges |
|
7 |
|
|
|
0.12 |
|
|
|
7 |
|
|
|
0.10 |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
0.22 |
|
|
|
— |
|
|
|
— |
|
Pension settlement loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.04 |
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax effect of adjustments |
|
(8 |
) |
|
|
(0.13 |
) |
|
|
(2 |
) |
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(0.15 |
) |
|
|
— |
|
|
|
— |
|
Adjusted income (loss) from continuing operations |
$ |
(9 |
) |
|
$ |
(0.12 |
) |
|
$ |
13 |
|
|
$ |
0.19 |
|
|
$ |
(26 |
) |
|
$ |
(0.40 |
) |
|
$ |
3 |
|
|
$ |
0.05 |
|
|
$ |
(39 |
) |
|
$ |
(0.58 |
) |
|
(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/20241105370779/en/
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