The following is a summary of the Rayonier Advanced Materials Inc. (RYAM) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Adjusted EBITDA in Q2 2024 was $68 million, marking a 152% increase from the previous year.

• Strong year-to-date free cash flow generation of $69 million, supported by a significant transaction to monetize lumber duty refund rights.

• Full year adjusted EBITDA guidance increased to $205 million to $215 million and adjusted free cash flow guidance raised to $100 million to $110 million.

Business Progress:

• Operations at Temiscaming HPC plant will be indefinitely suspended to eliminate financial drains from non-fluff commodities and improve the supply-demand balance in the core cellulose specialty market.

• Launching various biomaterials projects including the construction of a bioethanol plant at Fernandina and a prebiotics animal feed product expected to start production trials.

• Actively pursuing refinancing of senior notes, reflecting confidence in improved business performance and credit metrics.

Opportunities:

• Focused approach to increasing cellulose specialty production and sales, as well as leveraging the market conditions with closed competitors' facilities to enhance product mix.

• Significant opportunities in the bio-material sector with multiple ongoing projects projected to generate substantial revenue and EBITDA by 2027.

Risks:

• Lower sales prices and volumes affecting the high-yield pulp and paperboard segments.

• The length of the process to refinance senior notes and potential sale of high-yield pulp and paperboard assets increases financial and operational uncertainties.

More details: Rayonier Advanced Materials IR

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