o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
|
|
|
PAGE
|
|
Item 2.02.
|
|
|
1
|
|
|
Item 9.01.
|
|
|
1
|
|
|
|
|
|
2
|
|
|
|
|
|
3
|
|
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 9.01.
|
Financial Statements and Exhibits
|
(d)
|
Exhibits.
|
99.1
|
|
|
Press release entitled “Rayonier Advanced Materials Reports Third Quarter Results” issued October 28, 2015.
|
|
|
Rayonier Advanced Materials Inc. (Registrant)
|
|
|
|
BY:
|
|
/s/ F
RANK
A. R
UPERTO
|
|
|
Frank A. Ruperto
|
|
|
Chief Financial Officer and Senior Vice President, Finance and Strategy
|
|
|
|
Exhibit No.
|
|
Description
|
|
Location
|
99.1
|
|
Press release entitled “Rayonier Advanced Materials Reports Third Quarter Results” issued October 28, 2015.
|
|
Furnished herewith
|
Contacts:
|
|
|
Media
|
Russell Schweiss
|
904-357-9158
|
Investors
|
Mickey Walsh
|
904-357-9162
|
•
|
Raises 2015 pro forma EBITDA guidance to
approximately $230 million
|
•
|
Continues progress toward $40 million cost-reduction initiative
|
•
|
Reduces net debt by $86 million through first nine months and $136 million since separation
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
September 26,
|
|
June 27,
|
|
September 27,
|
|
September 26,
|
|
September 27,
|
||||||||||
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||
Net Sales
|
|
|
|
|
|
|
|
|
|
||||||||||
Cellulose specialties
|
$
|
215
|
|
|
$
|
183
|
|
|
$
|
223
|
|
|
$
|
577
|
|
|
$
|
630
|
|
Commodity products and other
|
42
|
|
|
38
|
|
|
31
|
|
|
123
|
|
|
80
|
|
|||||
Total Net Sales
|
$
|
257
|
|
|
$
|
221
|
|
|
$
|
254
|
|
|
$
|
700
|
|
|
$
|
710
|
|
Cost of Sales
|
187
|
|
|
176
|
|
|
198
|
|
|
548
|
|
|
547
|
|
|||||
Gross Margin
|
70
|
|
|
45
|
|
|
56
|
|
|
152
|
|
|
163
|
|
|||||
Selling and general expenses
|
11
|
|
|
10
|
|
|
9
|
|
|
34
|
|
|
27
|
|
|||||
Other operating expense, net (a)
|
1
|
|
|
27
|
|
|
5
|
|
|
28
|
|
|
45
|
|
|||||
Operating Income
|
58
|
|
|
8
|
|
|
42
|
|
|
90
|
|
|
91
|
|
|||||
Interest and other expense, net
|
9
|
|
|
9
|
|
|
10
|
|
|
27
|
|
|
13
|
|
|||||
Income Before Income Taxes
|
49
|
|
|
(1
|
)
|
|
32
|
|
|
63
|
|
|
78
|
|
|||||
Income tax expense (benefit)
|
17
|
|
|
(1
|
)
|
|
13
|
|
|
21
|
|
|
23
|
|
|||||
Net Income
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
42
|
|
|
$
|
55
|
|
Earnings Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share
|
$
|
0.77
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.46
|
|
|
$
|
1.01
|
|
|
$
|
1.30
|
|
Diluted earnings per share
|
$
|
0.76
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.46
|
|
|
$
|
1.00
|
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pro forma net income per share (b)
|
$
|
0.78
|
|
|
$
|
0.39
|
|
|
$
|
0.53
|
|
|
$
|
1.42
|
|
|
$
|
1.90
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares Used for Determining
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS
|
42,199,659
|
|
|
42,192,913
|
|
|
42,167,014
|
|
|
42,192,956
|
|
|
42,160,559
|
|
|||||
Diluted EPS
|
42,321,022
|
|
|
42,192,913
|
|
|
42,247,970
|
|
|
42,313,335
|
|
|
42,240,448
|
|
(a)
|
Other expenses primarily consist of non-cash impairment charges, environmental and one-time separation and legal costs.
|
(b)
|
Pro forma net income per share is a non-GAAP measure. See Schedule D for a reconciliation to the nearest GAAP measure.
|
|
September 26, 2015
|
|
December 31, 2014
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
100
|
|
|
$
|
66
|
|
Other current assets
|
238
|
|
|
254
|
|
||
Property, plant and equipment, net
|
804
|
|
|
843
|
|
||
Other assets
|
145
|
|
|
141
|
|
||
|
$
|
1,287
|
|
|
$
|
1,304
|
|
Liabilities and Stockholders’ Deficit
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
8
|
|
|
$
|
8
|
|
Other current liabilities
|
122
|
|
|
123
|
|
||
Long-term debt
|
885
|
|
|
936
|
|
||
Non-current liabilities for disposed operations
|
143
|
|
|
149
|
|
||
Other non-current liabilities
|
146
|
|
|
150
|
|
||
Total stockholders’ deficit
|
(17
|
)
|
|
(62
|
)
|
||
|
$
|
1,287
|
|
|
$
|
1,304
|
|
|
Nine Months Ended
|
||||||
|
September 26, 2015
|
|
September 27, 2014
|
||||
Cash Provided by Operating Activities:
|
|
|
|
||||
Net income
|
$
|
42
|
|
|
$
|
55
|
|
Depreciation and amortization
|
65
|
|
|
62
|
|
||
Non-cash impairment charge
|
28
|
|
|
—
|
|
||
Other items to reconcile net income to cash provided by operating activities
|
8
|
|
|
34
|
|
||
Changes in working capital and other assets and liabilities
|
9
|
|
|
(23
|
)
|
||
|
152
|
|
|
128
|
|
||
Cash Used for Investing Activities:
|
|
|
|
||||
Capital expenditures
|
(60
|
)
|
|
(60
|
)
|
||
Other
|
—
|
|
|
(16
|
)
|
||
|
(60
|
)
|
|
(76
|
)
|
||
Cash Used for Financing Activities:
|
|
|
|
||||
Changes in debt, net of issuance costs
|
(52
|
)
|
|
932
|
|
||
Dividends paid
|
(6
|
)
|
|
—
|
|
||
Net payments to Parent
|
—
|
|
|
(956
|
)
|
||
|
(58
|
)
|
|
(24
|
)
|
||
Cash and Cash Equivalents:
|
|
|
|
||||
Change in cash and cash equivalents
|
34
|
|
|
28
|
|
||
Balance, beginning of year
|
66
|
|
|
—
|
|
||
Balance, end of period
|
$
|
100
|
|
|
$
|
28
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
EBITDA (a):
|
September 26,
2015 |
|
September 27,
2014 |
|
September 26,
2015 |
|
September 27,
2014 |
||||||||
Net Income
|
$
|
32
|
|
|
$
|
19
|
|
|
$
|
42
|
|
|
$
|
55
|
|
Depreciation and amortization
|
23
|
|
|
24
|
|
|
65
|
|
|
62
|
|
||||
Interest expense, net
|
9
|
|
|
10
|
|
|
27
|
|
|
13
|
|
||||
Income tax expense
|
17
|
|
|
13
|
|
|
21
|
|
|
23
|
|
||||
EBITDA
|
$
|
81
|
|
|
$
|
66
|
|
|
$
|
155
|
|
|
$
|
153
|
|
|
|
|
|
|
|
|
|
||||||||
Non-cash impairment charge
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||
Environmental reserve adjustments
|
—
|
|
|
2
|
|
|
—
|
|
|
20
|
|
||||
One-time separation and legal costs
|
2
|
|
|
3
|
|
|
1
|
|
|
24
|
|
||||
Insurance settlement
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Pro Forma EBITDA
|
$
|
83
|
|
|
$
|
71
|
|
|
$
|
183
|
|
|
$
|
197
|
|
|
Nine Months Ended
|
||||||
Adjusted Free Cash Flow (b):
|
September 26, 2015
|
|
September 27, 2014
|
||||
Cash provided by operating activities
|
$
|
152
|
|
|
$
|
128
|
|
Capital expenditures
|
(60
|
)
|
|
(60
|
)
|
||
Adjusted Free Cash Flow
|
$
|
92
|
|
|
$
|
68
|
|
(a)
|
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) is defined by the Securities and Exchange Commission. Pro forma EBITDA
is defined by the Company as EBITDA before non-cash impairment charges, environmental reserve adjustments, one-time separation and legal costs and insurance recoveries.
EBITDA and pro forma EBITDA are not necessarily indicative of results that may be generated in future periods.
|
(b)
|
Adjusted free cash flow is defined as cash provided by operating activities adjusted for capital expenditures excluding strategic capital. Adjusted free cash flow, as defined by the Company, 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 free cash flow is not necessarily indicative of the adjusted free cash flow that may be generated in future periods.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||||||||||
|
September 26,
2015 |
|
June 27,
2015 |
|
September 27,
2014 |
|
September 26,
2015 |
|
September 27,
2014 |
||||||||||||||||||||||||||||||
Pro Forma Operating Income and Net Income (a):
|
$
|
|
Per Diluted
Share
|
|
$
|
|
Per Diluted Share
|
|
$
|
|
Per Diluted Share
|
|
$
|
|
Per Diluted Share
|
|
$
|
|
Per Diluted Share
|
||||||||||||||||||||
Operating Income
|
$
|
58
|
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
42
|
|
|
|
|
$
|
90
|
|
|
|
|
$
|
91
|
|
|
|
|||||||||
Non-cash impairment charge
|
—
|
|
|
|
|
28
|
|
|
|
|
—
|
|
|
|
|
28
|
|
|
|
|
—
|
|
|
|
|||||||||||||||
One-time separation and legal costs
|
2
|
|
|
|
|
|
(1
|
)
|
|
|
|
3
|
|
|
|
|
1
|
|
|
|
|
24
|
|
|
|
||||||||||||||
Insurance recovery
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
|
|||||||||||||||
Environmental reserve adjustments
|
—
|
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
20
|
|
|
|
|||||||||||||||
Pro Forma Operating Income
|
$
|
60
|
|
|
|
|
|
$
|
34
|
|
|
|
|
$
|
47
|
|
|
|
|
$
|
118
|
|
|
|
|
$
|
135
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net Income
|
$
|
32
|
|
|
$
|
0.76
|
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
|
$
|
19
|
|
|
$
|
0.46
|
|
|
$
|
42
|
|
|
$
|
1.00
|
|
|
$
|
55
|
|
|
$
|
1.30
|
|
Non-cash impairment charge, net of tax
|
—
|
|
|
—
|
|
|
18
|
|
|
0.43
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
0.43
|
|
|
—
|
|
|
—
|
|
||||||||||
One-time separation and legal costs, net of tax
|
1
|
|
|
0.02
|
|
|
(1
|
)
|
|
(0.01
|
)
|
|
2
|
|
|
0.04
|
|
|
1
|
|
|
0.01
|
|
|
17
|
|
|
0.41
|
|
||||||||||
Insurance recovery, net of tax
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(0.02
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Environmental reserve adjustments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
0.30
|
|
||||||||||
Reversal of reserve related to the taxability of the CBPC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(0.11
|
)
|
||||||||||
Pro Forma Net Income
|
$
|
33
|
|
|
$
|
0.78
|
|
|
$
|
16
|
|
|
$
|
0.39
|
|
|
$
|
22
|
|
|
$
|
0.53
|
|
|
$
|
60
|
|
|
$
|
1.42
|
|
|
$
|
80
|
|
|
$
|
1.90
|
|
(a)
|
Pro forma operating income
is defined as operating income adjusted for non-cash impairment charges, one-time separation and legal costs, insurance recovery and environmental reserve adjustments.
Pro forma net income
is defined as net income adjusted net of tax for non-cash impairment charges, one-time separation and legal costs, insurance recovery, environmental reserve adjustments and for tax benefits from the reversal of reserve related to the taxability of the CBPC.
|