Rayonier Advanced Materials Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the Year 2017
January 30, 2017 at 05:22 pm EST
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Rayonier Advanced Materials Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported total net sales were $231 million against $242 million a year ago. Operating income was $26 million against $29 million a year ago. Income before income taxes was $11 million against $13 million a year ago. Net income was $13 million against $23 million a year ago. Diluted earnings per share were $0.18 against $0.30 a year ago. Pro-forma net income per share was $0.18 against $0.32 a year ago. EBITDA was $50 million against $53 million a year ago. Pro-forma EBITDA was $50 million against $54 million a year ago.
For the full year, the company reported total net sales were $869 million against $941 million a year ago. The full year sales decline was primarily driven by a 7% decline in CS prices and a 2% decline in CS volumes. Operating income was $138 million against income of $120 million a year ago. Income before income taxes was $112 million against $83 million a year ago. Net income was $73 million against income of $55 million a year ago. Diluted earnings per share were $1.55 against diluted earnings per share of $1.30 a year ago. Pro-forma net income per share was $1.43 against $1.74 a year ago. EBITDA was $235 million against $209 million a year ago. Pro-forma EBITDA was $226 million against $238 million a year ago. Adjusted free cash flow was $143 million, an $124 million improvement from 2014. Cash provided by operating activities was $232 million against $202 million a year ago. Capital expenditures were $89 million against $78 million a year ago. Pro-forma net income was $67 million compared to $73 million in 2015.
The company provided earnings guidance for the year 2016. For the year, the company's EBITDA expected to be $190 to $200 million. The company expects $25 to $30 million of cost improvements to partially offset declines in revenue, resulting in forecasted net income of $41 to $48 million. Cash flows from operations and adjusted free cash flows are expected to be $140 to $150 million and $80 to $90 million. The company anticipates capital expenditures of approximately $60 million, including investment in the LignoTech Florida project. Net interest expense is expected to be in range of $27 million to $37 million. Depreciation and amortization is expected to be at $85 million.
Rayonier Advanced Materials Inc. is engaged in specialty cellulose materials. The Company has three segments. The High Purity Cellulose segment offers cellulose specialties products, which are natural polymers, used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, and lacquers. Paperboard segment manufactures paperboard at the Temiscaming plant in Quebec, Canada. Its production facility has an annual production capacity of approximately 180,000 MTs of paperboard. High-Yield Pulp segment manufactures and markets high-yield pulp produced at its Temiscaming plant in Quebec, Canada. Its Temiscaming plant has an annual production capacity of approximately 290,000 MTs of high-yield pulp, approximately 65,000 MTs of which are used internally to produce paperboard.
Rayonier Advanced Materials Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the Year 2017
RAYONIER ADVANCED MATERIALS INC. 
