RAYONIER ADVANCED MATERIALS Reports 116.7% Increase in Fourth Quarter Revenue for Fiscal Year 2022.
March 10, 2023
Earnings Overview
RAYONIER ADVANCED MATERIALS ($NYSE:RYAM)’ fourth quarter of fiscal year 2022, ended on December 31, 2022, reported total revenue of USD 4.0 million, a 116.7% increase from the same period the year prior, and net income of USD 500.0 million, with a 33.7% year-over-year growth. These results were released on February 27, 2023.
Transcripts Simplified
Rayonier Advanced Materials released its fourth quarter and full year 2022 financial results. Sales volumes increased 4% to $918 million metric tons, driven by improved reliability and logistics. Net sales for the year included $115 million of biomaterial sales, primarily from biomass energy and lignin. Paperboard segment sales grew $42 million driven by a 27% increase in sales prices partially offset by a 6% decline in sales volumes. High yield pulp segment sales increased by $24 million from prior year driven by a 25% in sales prices, partially offset by a 3% decline in sales volumes.
On a consolidated basis, 2022 operating income improved $36 million from 2021 to $26 million. Net debt declined $41 million in the quarter to $707 million as the company reduced gross debt by $73 million while still preserving solid liquidity. Net debt-to-EBITDA ended the year at four times, an improvement of nearly a 1.5 turn from 2021.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RYAM. More…
| Total Revenues | Net Income | Net Margin |
| 1.72k | -15 | -1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RYAM. More…
| Operations | Investing | Financing |
| 69 | -94 | -73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RYAM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.35k | 1.52k | 12.19 |
Key Ratios Snapshot
Some of the financial key ratios for RYAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.1% | -13.6% | 2.4% |
| FCF Margin | ROE | ROA |
| -4.0% | 3.4% | 1.1% |
Market Price
This news sent the company’s stock soaring, with shares opening at $6.5 and closing at $6.7, up 4.8% from its previous closing price. The surge in revenue was largely attributed to the growing demand for wood products, including lumber and wood pulp, as well as the company’s expanding customer base. Rayonier Advanced Materials is an industry leader in the production of lumber, wood pulp, and specialty cellulose fibers. With a strong focus on sustainability and innovation, the company is continuously pushing the boundaries of what is possible in the field of building materials. With this latest report, Rayonier Advanced Materials is setting a new standard for growth in the industry. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of RAYONIER ADVANCED MATERIALS’s wellbeing. After considering both financial and business aspects, our Risk Rating concluded that RAYONIER ADVANCED MATERIALS is a medium risk investment. Furthermore, during the evaluation, we have detected two risk warnings in the income sheet and the balance sheet of this company. We strongly suggest that all investors who are interested in RAYONIER ADVANCED MATERIALS become a registered user with GoodWhale in order to access further information regarding these warnings. More…
Peers
The company competes with Altech Chemicals Ltd, Supreme Petrochem Ltd, and Nanogate SE. All three companies are well-positioned to continue to grow and gain market share in the cellulose fiber market.
– Altech Chemicals Ltd ($ASX:ATC)
Altech Chemicals Ltd is an Australian-based chemicals company. The Company is engaged in the business of developing and commercializing technologies for the production of alumina from non-bauxite sources. It has developed the HPA production process, which is a hydrometallurgical process that converts raw materials, including kaolin clay, into alumina. The Company’s HPA production process involves the digestion of kaolin clay with hydrochloric acid, precipitation of aluminum hydroxide from the solution, calcination of the aluminum hydroxide to produce alumina, and cooling and washing of the product to produce a white powder known as alumina trihydrate.
– Supreme Petrochem Ltd ($LTS:0W1E)
Nanogate SE is a Germany-based company that develops, produces, and sells nanoscale coatings, surface treatments, and additives. It operates in three segments: Automotive, Industry, and Home. The Automotive segment provides solutions for the automotive industry, such as for the exterior and interior of vehicles. The Industry segment offers solutions for the electronics, optics, and plastics industries, among others. The Home segment provides solutions for the kitchen and bathroom industry, among others.
Summary
RAYONIER ADVANCED MATERIALS experienced strong growth in the fourth quarter of its 2022 fiscal year, with total revenue increasing by 116.7% year-over-year. Reported net income grew 33.7% in the same period. This news had a positive effect on the company’s stock price, which rose the same day the results were announced.
Investors may find this a good entry point to invest in RAYONIER ADVANCED MATERIALS given the strong growth in revenue and profits. Analysts should keep an eye on future earnings releases to determine whether or not these trends will continue.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
