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 Fourth Quarter and Full Year 2014 Results” issued January 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 Fourth Quarter and Full Year 2014 Results” issued January 28, 2015.
|
|
Furnished herewith
|
Contacts:
|
|
|
Media
|
Russell Schweiss
|
904-357-9158
|
Investors
|
Beth Johnson
|
904-357-9136
|
•
|
Adjusted free cash flow for the second half of 2014 was $61 million
|
•
|
Net debt reduced to $880 million from $930 million at time of separation
|
•
|
Company announces $40 million in cost cutting initiatives for 2015
|
•
|
2015 EBITDA expected to be $200 million to $220 million
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
|
December 31,
|
|
September 27,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||||
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||
NET SALES
|
|
|
|
|
|
|
|
|
|
||||||||||
Cellulose specialties
|
213.8
|
|
|
222.6
|
|
|
249.9
|
|
|
843.5
|
|
|
929.9
|
|
|||||
Commodity products and other
|
34.2
|
|
|
31.1
|
|
|
31.8
|
|
|
114.2
|
|
|
116.7
|
|
|||||
Total net sales
|
$
|
248.0
|
|
|
$
|
253.7
|
|
|
$
|
281.7
|
|
|
$
|
957.7
|
|
|
$
|
1,046.6
|
|
COST OF SALES
|
187.0
|
|
|
198.0
|
|
|
198.2
|
|
|
734.0
|
|
|
714.0
|
|
|||||
GROSS MARGIN
|
61.0
|
|
|
55.7
|
|
|
83.5
|
|
|
223.7
|
|
|
332.6
|
|
|||||
Selling and general expenses
|
13.2
|
|
|
9.5
|
|
|
8.9
|
|
|
40.0
|
|
|
35.8
|
|
|||||
Other operating expense, net (a)
|
76.1
|
|
|
4.5
|
|
|
4.4
|
|
|
120.7
|
|
|
8.2
|
|
|||||
OPERATING (LOSS) INCOME
|
(28.3
|
)
|
|
41.7
|
|
|
70.2
|
|
|
63.0
|
|
|
288.6
|
|
|||||
Interest and other (expense) income, net
|
(9.8
|
)
|
|
(9.6
|
)
|
|
—
|
|
|
(22.5
|
)
|
|
0.3
|
|
|||||
(LOSS) INCOME BEFORE INCOME TAXES
|
(38.1
|
)
|
|
32.1
|
|
|
70.2
|
|
|
40.5
|
|
|
288.9
|
|
|||||
Income tax benefit (expense) (b)
|
14.8
|
|
|
(12.7
|
)
|
|
(19.4
|
)
|
|
(8.8
|
)
|
|
(69.1
|
)
|
|||||
NET (LOSS) INCOME
|
(23.3
|
)
|
|
19.4
|
|
|
50.8
|
|
|
31.7
|
|
|
219.8
|
|
|||||
EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
||||||||||
BASIC EARNINGS PER SHARE
|
$
|
(0.55
|
)
|
|
$
|
0.46
|
|
|
$
|
1.20
|
|
|
$
|
0.75
|
|
|
$
|
5.21
|
|
DILUTED EARNINGS PER SHARE
|
$
|
(0.55
|
)
|
|
$
|
0.46
|
|
|
$
|
1.20
|
|
|
$
|
0.75
|
|
|
$
|
5.21
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pro forma net income per share (c)
|
$
|
0.61
|
|
|
$
|
0.53
|
|
|
$
|
1.25
|
|
|
$
|
2.51
|
|
|
$
|
4.86
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted Average Common
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used for determining
(d)
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS
|
42,185,223
|
|
|
42,167,014
|
|
|
42,176,565
|
|
|
42,166,629
|
|
|
42,176,565
|
|
|||||
Diluted EPS
|
42,185,223
|
|
|
42,247,970
|
|
|
42,176,565
|
|
|
42,239,682
|
|
|
42,176,565
|
|
|
December 31,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
66.0
|
|
|
$
|
—
|
|
Other current assets
|
254.0
|
|
|
246.1
|
|
||
Property, plant and equipment, net
|
843.4
|
|
|
846.3
|
|
||
Other assets
|
141.3
|
|
|
27.9
|
|
||
|
$
|
1,304.7
|
|
|
$
|
1,120.3
|
|
Liabilities and Stockholders’ (Deficit) Equity
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
8.4
|
|
|
$
|
—
|
|
Other current liabilities
|
123.0
|
|
|
79.8
|
|
||
Long-term debt
|
936.4
|
|
|
—
|
|
||
Non-current liabilities for disposed operations
|
149.5
|
|
|
—
|
|
||
Other non-current liabilities
|
151.2
|
|
|
72.2
|
|
||
Total stockholders’ (deficit) equity
|
(63.8
|
)
|
|
968.3
|
|
||
|
$
|
1,304.7
|
|
|
$
|
1,120.3
|
|
|
Year Ended December 31,
|
||||||
|
2014
|
|
2013
|
||||
Cash provided by operating activities:
|
|
|
|
||||
Net income
|
$
|
31.7
|
|
|
$
|
219.8
|
|
Depreciation and amortization
|
85.6
|
|
|
74.4
|
|
||
Increase in liabilities for disposed operations
|
88.5
|
|
|
—
|
|
||
Disposed operations impairment charge
|
7.2
|
|
|
—
|
|
||
Other items to reconcile net income to cash provided by operating activities
|
(13.7
|
)
|
|
(14.9
|
)
|
||
Changes in working capital and other assets and liabilities
|
(11.5
|
)
|
|
(21.3
|
)
|
||
|
187.8
|
|
|
258.0
|
|
||
Cash used for investing activities:
|
|
|
|
||||
Capital expenditures
|
(74.8
|
)
|
|
(96.0
|
)
|
||
Jesup plant cellulose specialties expansion
|
—
|
|
|
(141.1
|
)
|
||
Other
|
(15.7
|
)
|
|
(13.5
|
)
|
||
|
(90.5
|
)
|
|
(250.6
|
)
|
||
Cash used for financing activities:
|
|
|
|
||||
Changes in debt, net of issuance costs
|
930.4
|
|
|
—
|
|
||
Dividends paid
|
(5.9
|
)
|
|
—
|
|
||
Proceeds from the issuance of common stock
|
0.6
|
|
|
—
|
|
||
Excess tax benefits on stock-based compensation
|
0.3
|
|
|
—
|
|
||
Common stock repurchased
|
(0.1
|
)
|
|
—
|
|
||
Net payments to Parent
|
(956.6
|
)
|
|
(7.4
|
)
|
||
|
(31.3
|
)
|
|
(7.4
|
)
|
||
Cash and cash equivalents:
|
|
|
|
||||
Change in cash and cash equivalents
|
66.0
|
|
|
—
|
|
||
Balance, beginning of year
|
—
|
|
|
—
|
|
||
Balance, end of period
|
$
|
66.0
|
|
|
$
|
—
|
|
EBITDA (a):
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||
Net (loss) income
|
$
|
(23.3
|
)
|
|
$
|
50.8
|
|
|
$
|
31.7
|
|
|
$
|
219.8
|
|
Depreciation and amortization
|
23.5
|
|
|
23.3
|
|
|
85.6
|
|
|
74.4
|
|
||||
Interest, net
|
9.7
|
|
|
—
|
|
|
22.3
|
|
|
(0.3
|
)
|
||||
Income tax (benefit) expense
|
(14.8
|
)
|
|
19.4
|
|
|
8.8
|
|
|
69.1
|
|
||||
EBITDA
|
$
|
(4.9
|
)
|
|
$
|
93.5
|
|
|
$
|
148.4
|
|
|
$
|
363.0
|
|
|
|
|
|
|
|
|
|
||||||||
One-time separation and legal costs
|
2.2
|
|
|
3.2
|
|
|
44.1
|
|
|
6.0
|
|
||||
Environmental reserve and impairment adjustments
|
75.6
|
|
|
—
|
|
|
77.1
|
|
|
—
|
|
||||
Insurance settlement
|
(2.9
|
)
|
|
—
|
|
|
(2.9
|
)
|
|
—
|
|
||||
Pro forma EBITDA
|
$
|
70.0
|
|
|
$
|
96.7
|
|
|
$
|
266.7
|
|
|
$
|
369.0
|
|
Corporate costs
|
9.7
|
|
|
4.1
|
|
|
23.9
|
|
|
16.6
|
|
||||
Segment EBITDA
|
$
|
79.7
|
|
|
$
|
100.8
|
|
|
$
|
290.6
|
|
|
$
|
385.6
|
|
ADJUSTED FREE CASH FLOW (b):
|
|
|
|
||||
|
|
|
|
||||
|
Year Ended
|
||||||
|
December 31, 2014
|
|
December 31, 2013
|
||||
Cash provided by operating activities
|
$
|
187.8
|
|
|
$
|
258.0
|
|
Capital expenditures (c)
|
(74.8
|
)
|
|
(96.0
|
)
|
||
Tax benefit due to exchange of AFMC for CBPC
|
—
|
|
|
(19.0
|
)
|
||
Adjusted Free Cash Flow
|
$
|
113.0
|
|
|
$
|
143.0
|
|
PRO FORMA OPERATING INCOME AND NET INCOME (a):
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||||||||||||||||||||||
|
December 31, 2014
|
|
September 27, 2014
|
|
December 31, 2013
|
|
December 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||||
|
$
|
|
Per Diluted Share
|
|
$
|
|
Per Diluted Share
|
|
$
|
|
Per Diluted Share
|
|
$
|
|
Per Diluted Share
|
|
$
|
|
Per Diluted Share
|
||||||||||||||||||||
Operating (loss) income
|
$
|
(28.3
|
)
|
|
|
|
|
$
|
41.7
|
|
|
|
|
$
|
70.2
|
|
|
|
|
$
|
63.0
|
|
|
|
|
$
|
288.6
|
|
|
|
|||||||||
One-time separation and legal costs
|
2.2
|
|
|
|
|
|
2.8
|
|
|
|
|
3.2
|
|
|
|
|
44.1
|
|
|
|
|
6.0
|
|
|
|
||||||||||||||
Environmental reserve and impairment adjustments
|
75.6
|
|
|
|
|
1.5
|
|
|
|
|
—
|
|
|
|
|
77.1
|
|
|
|
|
—
|
|
|
|
|||||||||||||||
Insurance settlement
|
(2.9
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(2.9
|
)
|
|
|
|
—
|
|
|
|
|||||||||||||||
Pro forma operating income
|
$
|
46.6
|
|
|
|
|
|
$
|
46.0
|
|
|
|
|
$
|
73.4
|
|
|
|
|
$
|
181.3
|
|
|
|
|
$
|
294.6
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net (loss) income
|
$
|
(23.3
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
19.4
|
|
|
$
|
0.46
|
|
|
$
|
50.8
|
|
|
$
|
1.20
|
|
|
$
|
31.7
|
|
|
$
|
0.75
|
|
|
$
|
219.8
|
|
|
$
|
5.21
|
|
One-time separation and legal costs, net of tax
|
1.6
|
|
|
0.04
|
|
|
2.0
|
|
|
0.04
|
|
|
2.1
|
|
|
0.05
|
|
|
30.6
|
|
|
0.73
|
|
|
4.0
|
|
|
0.10
|
|
||||||||||
Environmental reserve and impairment adjustments, net of tax
|
49.3
|
|
|
1.17
|
|
|
1.0
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
50.3
|
|
|
1.19
|
|
|
—
|
|
|
—
|
|
||||||||||
Insurance settlement, net of tax
|
(2.0
|
)
|
|
(0.05
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
|
(0.05
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Reversal of reserve related to the taxability of the CBPC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
(0.11
|
)
|
|
—
|
|
|
—
|
|
||||||||||
Tax benefit due to exchange of AFMC for CBPC
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.0
|
)
|
|
(0.45
|
)
|
||||||||||
Pro forma net income
|
$
|
25.6
|
|
|
$
|
0.61
|
|
|
$
|
22.4
|
|
|
$
|
0.53
|
|
|
$
|
52.9
|
|
|
$
|
1.25
|
|
|
$
|
105.8
|
|
|
$
|
2.51
|
|
|
$
|
204.8
|
|
|
$
|
4.86
|
|