RYAM - Earnings call transcript Q3 2020 | Rayonier Advanced Materials Inc.

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Operator

Good morning and welcome to the Rayonier Advanced Materials Third Quarter 2020 Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions with instructions to follow at that time.

As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. Vice Investor and Advanced for Treasurer Materials. Walsh, President Relations of Rayonier Mickey you. Thank Mr. begin. Walsh, you may

Mickey Walsh

Thank good conference operator, Materials you, and third Rayonier again quarter Advanced to XXXX earnings call webcast. morning and everyone. Welcome

and on our Executive Marcus Senior Executive of Chief Vice Vice me President Officer Finance; of Purity Chief Officer; today's Boynton, President Moeltner, Paul Joining our High are and Businesses. and President Financial our Yield Cellulose and call Frank High Ruperto,

evening in and presentation site forward-looking and materials we the last provisions federal to our like were release Safe will pursuant available earnings Web of are issued securities at to Our on remind today's include I'd rayonieram.com. laws. made Harbor you statements that presentation,

to believe these We most comparable and alternative the actual the which Slide now should of we referenced Slides also on GAAP of presentation. financial SEC measures GAAP material. to list information Our X as to as measures of results XX an our Paul. may certain also for Today's over X non-GAAP presentation reconciliation earnings the be release, some may on make. presentation. factors but X their with I'd non-GAAP like well our measures forward-looking measures Slide cause on provide materially investors, noted and filings as the not A measures. included from are differ to measures considered non-GAAP are statements to of useful management reference financial presentation directly call XX through They of our will our turn

Paul Boynton

the reduce to that production maintain I'm strong we've $XX productivity we seen Page we morning with seen we've also costs. been actions. good as as where of such to while on in lumber, million reliable pleased continued million markets demand recovery, such of $XX weakness, these proud the across capture for these safe In our experienced and value, year. EBITDA company, flexed operations and our last X, as the incremental Mickey, benefit to delivered the third while results. quarter we to Newsprint, Thanks, robust I'm Overall, increased Financially, out able results. adjusted we compared quarter And way accomplishing of markets where laid you've everyone.

Our our efforts to in increase gross with costs, to to helped significant reduce expected Purity cash saw High ongoing inputs. drive CS solid and flows. increased lower along cost and driven response XXX% Cellulose pulp improvements actions offset in We weakness in prices. lower margins cost commodity and viscose COVID-XX and by a volumes productivity and reliability as by segment, benefits continued were of These fluff taken

to offer a capital through million working continue optimized $XX Newsprint for to weakness losses results. productivity and lowering efforts, Forest of Pulp extra part Products' strong lower for our facility this of upside significant benefiting lumber And input running EBITDA, positive in focus In take we costs. we volume our to advantage the while to end Also, minimized September. the and of flow total, the CapEx the positive drive ongoing by To a of generated pricing, segment. free Newsprint in contributor shifts quarter to our saw pulp prices remained operations liquidity. operations stable from we and continue segment, we were the a contributor increased quarterly our sales. Paperboard and extended as on or in quarter lumber of our the see result fourth we'll cash

before for I'll for provide the our an Marcus? ask quarter objectives questions. call I'm to then going Now, detail up to on key the go through results opening and year into our Marcus more on update afterwards,

Marcus Moeltner

X. Paul. Purity High Thank with Slide on Cellulose Starting you,

from company. EBITDA price prior million, by Georgia in from overall segment increased decline improved year significantly sales our sales CS quarter efficiency from X% in to $XX this commodity an Third decreased CS down a higher improved primarily quarter a sales lower in volumes, by offset $XX volumes. were and improved increase and goal line operational Improving lower cost. improved to reliability XXXX, for factors $X Compared XX% Jesup, by a by sales partially driven improved due $X CS have our year is increase second Florida specific XX% were X% the Beach, decline year. was volumes and facilities offset Commodity asset commodity a and These overall pricing Fernandina a of prices, with by productivity million, and ago. EBITDA expectations. declines costs million across to prices for the productivity. base particular in the mix In million,

nearly Looking into quarter, both viscose prices in two price price increases November, have October first improved we fourth captured lows in the increases for commodity viscose years. from as our pulp and

the significantly expect in quarter delays third and to in production fourth shipping also commodity higher to sales We strong be the realized due quarter.

million XX% higher Turning increased prices quarter prices. Forest in Products year, from increase to $XX in our of lumber third million sales $XX from prior and driven X% the a by XXXX improved EBITDA X. in Slide driven the volumes. segment segment increase Sales the for by a

start on lumber expected Since into The X% when finalized and of this duties million next as shipments deposited Canadian the have from the million reminder, the and or in duties the producers month is $X on paid tariffs a duties interest majority of to December disputes, of X. revised effective XX% of include lumber deposits. will to XXXX, all preliminary the $X become process prior upon later In in results of duties are from $XX million in duties decline come recovered accumulated determination the have historically the softwood a U.S. the EBITDA around we trade steps total these quarter. a resolution. vast As

for realized our productivity to as in lumber September, trailed be levels historically the volumes but still have levels. in high peak quarter off increase from Prices we expect efforts should forward, remain at Looking period. this strong sales in

fell sales competition Meanwhile, the and steady in held COVID-XX offset segment volumes for expect Slide $X to sales. $X we X% and material segment Turning modest EBITDA the markets. increased declined as X% million Paperboard X. This end our at in decline stability. to from raw impacts as costs has million prices declined general due lower sales ahead, looking segment seen

Slide partially demand prices Newsprint due volumes by remains Sales prices decreased segment Newsprint as to decline Turning in a This driven to of and year $X for weak. million prior pulp as offset Newsprint Newsprint was million Pulp XX% our from and on prices for X. $X decline to XX% the in lower of offset volumes, a loss, X% segment by stabilized. and EBITDA declined high-yield in in increase Newsprint an by by million costs. weakness $X X% the sales, a partially

pulp, to we see increases for while price sales input forward, remained are have Looking starting stable. costs

ban also this pulp on had continue are high-yield demand. In January. to assets keeping We has on market we a match further Newsprint, Historically, the our positive demand. eye on an to including impact recycled actions China, in adapt full in our pulp

meet have facility customer and two As Newsprint operating to throttle our at production our can a lines needs. reminder, we

is new product quick-service We have should renewable, but over compostable Kapuskasing, improved early the for targeting help and an This our also market. product it product. product developed bag days restaurant as recyclable develop Envirosmart mill is new It the in mix a a time.

of Slide majority Turning in $XX for markets up quarter, the consolidated million the with lumber to drove year. volumes basis, a The mix. million operating improvements XX. from was benefits offsets to On the the and income prior $XX significant pricing

an costs settlement prior $X that an million benefits increased currency benefited reducing quarter. and on to compared Our fluctuations ongoing million, of additional XXXX. other insurance focus generated to $XX due SG&A costs and primarily the

our interest not at ended ratio a operating for at Along facility in quarter the liquidity Turning improved declined from million million, our of million more increased prior X.Xx Paul. X.Xx while remained to quarter, covenant. million to flow XX. by our like in The driven a With leverage quarter. gross to XX% $XXX a the strong of million now cushion $X.X we $XX EBITDA, $XX currently requirement the over $XX quarter, the free covenant $XX secured Slide that, back credit with of the cash With covenant X.Xx. maintain Total and of available from than $XXX covenant results to I'd we call the LTM Liquidity million France. factoring to $XX X.XXx. revolving turn including compared million to debt to compared on billion, coverage ratio the to cash, of facility

Paul Boynton

Marcus. thanks, Hey,

track three-fourths to Looking our to of remain a financial behind or meet XXXX targets. most our our entered exceed team we on us, we XX. the COVID-XX adapted. goals, but these at year We that number With ability challenged of Page goals. note of meet with

in of covenants. compliance remain our with course, Our top priority, was financial to

As creating team uncertainty amendment to and with manage our to we ensure the the increase saw compliance to COVID-XX to worked our our to markets, liquidity in lenders through secure end pandemic. covenants an

the with today, margin comfortable versus of covenants. are As we operating a

incremental manufacturing cost we've savings, captured operational in our of targeted plus in facilities. operations. months, of these procurement we $XX million improvements logistics Second, nine $XX our in improvements million and primarily Through improvements through

Third, the we quarters, $XX three corporate Through savings recognized of million planned. costs. million targeted as $X from to of million savings first $XX we've the

target quarter. range improvements incremental coming in expect We us the to put in the

liquidity, increase expenditures still million CapEx we to capital in $XX while than across Next, assets. of million critical we by $XX period. sought year spent our investing first reduce comparable million lower Through the million to prior to areas $XX nine months, the $XX or

still the For but targeted remain level. expect increased our quarter, spending below fourth we

Lastly, we've working we improving million captured goal. set by of a million. $XX goal $XX of To-date, capital that

million tax comment. million fourth above prior estimated a refund the or $X now to be expect we quarter, $XX our in Additionally,

Additionally, we XXXX. in anticipate refund million cash tax another $XX

cost curtailments a So of resulting has benefits of focus XXXX, discrete actions. free on other including generated Year-to-date, challenges of overall million we one-time to despite costs million and cash of from production led reductions, capture again, $XX flow. our the $XXX us number

our current like well-positioned XX. but previously believe that Page earnings we COVID-XX recovery discussed the as we're our keeping have discussed We on below potential, well pandemic for

of and France industry security five the world-class positioned the eight leader unmatched owner research lines are product supply. facilities two in uniquely the including to in diversity As dedicated an our of global specialties, knowledge, technical of and cellulose we manufacturing with and U.S. customers to industry-leading service and

broad a have and portfolio on delivering quality customers. our sustainably value focused and products natural-based to of We diversified

strategy reducing costs, We in productivity and increasing reliability have executing team leadership new global on flows, cash products and developing new strong by a focused improving our markets.

know we signs focused just stronger volumes market and to markets increasing demonstrated, beginning manage to Corporate, Lumber took to our have in capitalize ensure winners potential. we're and control improving liquidity. earnings, provides full the long-term conditions nice costs other through team able to markets. decisive In flexibility taken we the controlling that financial Pulp provided markets taking the and us with actions that we to and them. show position a This on and markets of to markets. are we job to the on capitalize poised remain for segments improving improve cycle remain our a boost challenging like in just quarter Newsprint actions going but and As cash. the well to of ensure we our did today be We of that we're costs we're us recovery advantage the great third to our on the

unlike We quality are allowed competitors. show are to that leveraged pandemic, starting recovery. that many the pulp employees to We and us assets prices, commodity fortunate of our of signs which have operate know to we have are to through

previously to million know we'll a potential viscose and discussed, and that We stronger, fluff returning the to have we're of upside that going confident market $XX emerge capture to resilient company. We prices $XX the this as million value five-year more we're average. by returns

call questions. the So that, turn let's with operator, over to

Operator

first Our with John with the question of of America. line Instructions] from question. Bank [Operator your proceed Please comes you. Thank Babcock

John Babcock

well. wondering Starting it well-positioned good during fourth you're seems if obviously, the and cash can pretty talk a generated out, like quarter I you quarter, you for really the was as about –

can I whether with cash, point, deploying do your talk on or if that was on that plan you elsewhere. assets wondering reduction, investments So about you how in debt it's

Marcus Moeltner

Marcus. It's

maturities deployment include that leverage. the and we're close remain As in making we conscious coming prudent and CapEx our would sure avenues markets on that capital, addressing to certainly said previously, we overall both of our with continue to to staying up. any And are be capital that focused address of

John Babcock

up was you've Okay. the wondering business. big are assets if you regards be entered And much business, how obviously that effectively able Newsprint then scale bag there bag us keep to is if could as I might potentially, other off you the there are busy? those and possible. sense give to Clearly, far that help business, also, next there to two working might have as some to products be with and now, you assets it to how as that produce you sell lines able might those

Paul Boynton

On We've forth asset to market talked low-cost to kind Newsprint, of between a in we're right? lines American trials line. value and real. The the We've really early, Kapuskasing. quite the And situation. export, different asset, mix we've marketplace, We're But, company it's John. on kind effectively, just we're got two the there one address to then is got lines more near around demand. reduced advantage we that North about where running but sales one on great out really of going there's back operationally playing opportunity taking and few two the opportunity bag moving there. term much a and also is the our currently plan in lower line, a optimize which of We've in

updates say couple and we new you to we we to too forward. far team we for value drive too the of to make it's yes, see, that early business. forward it's a how give that to giving opportunities I going what value on and how going on than the just it's say value but today. different there do have that's working opportunity. other going we expand is forward, this, go look have So a say, believe kind as I drive and up we'll well to real And early you do some call But, into of updates to let's to product as would

John Babcock

around Okay. when timing, logistically, it because with works? get And of of down deposits from Can that Materials me, Thanks but on just reduction, then first might for associated should not X%. refunds any Advanced on might around cash of you all, duty mean, we remind that? XX% looks front. how like from to expect that. sort would past inflow Rayonier any next they guess, down, So, Clearly, sort I of just also that come I this come the or the

Marcus Moeltner

Yes, Marcus it's again.

So the at preliminary look determination be is to the will the duties way confirmed.

there forward There of the 'XX So place will XX% duty be of that duties file, on we were of so given, no will if deposits refunds overpaid. addresses continue you rate and the that that agreement. should in follow new accumulate rate a an and duties past duties going duty these see final resolution will reduction X% XXXX until and ultimate remain to is in then

Department but most periods, So we was that cash, there an get Commerce. of there validation likely be won't will for those with the overpayment any

John Babcock

Specialties. in some if last are question over. contract color provide be it And I just you was then, as Thanks. Cellulose negotiations as able progressing to the how Okay. before turn wondering I far might

Frank Ruperto

John. Yes,

it's call negotiations, for and/or policy earnings in CS February not always, our volume competitive the until fourth pricing on reasons. quarter As to comment

the bit finalized of finalized will with in into many due you virtual them a but meetings or remainder we'll most so the customers the two the will next those likely slower call, go tuned-in how COVID months. as middle are is the year discussions I travel this the XXXX be of finalized discussions quarter making And on will the through point over would couple all some months. at first the over be and the negotiations them insights next next of the customer give to and say stay agreements over to all continue are of of limited of fact, two we in for So be them months. many supply

Operator

you. Thank

Our Chercover next from of question. the question comes with Steve proceed D.A. your line with Davidson. Please

Steven Chercover

stick made shifts in So third on I'm how so, quarter? into extended did sell in will the to intrigued start, you accumulate flow was that market And or you every the fire Like, why you QX lumber the sales. wouldn't inventory? when extra if

Paul Boynton

through the did possible Steve, just third right? extent noted question. we just is quarter. Great as and shifts Yes. there, to that the look, extended you We

If at you in we weeks that time. probably talked remember call, out last when six talked the point we quarterly were lumber doing orders at we about in

you October were September, already through about in quarter in if the we probably So think time. at point up sold ramping that

September and realizing were sales peak we So October them capturing sales. into

going it's future we're and they have to So to obviously, and fourth come considerably, cash. down now prices is we've above sitting give a start strong have but quarter us sales stabilized noted,

another we on we So sitting sold out because -- fact of quarter today. of sales benefit bit we quarter a good a four. than get from that quarter again, would equilibrium the the feel further benefit kind into three of strong about would where the is we normally little And lot should

Steven Chercover

be could EBITDA down similar in a to QX mean, you're prudent generated or I what to So, you it being still little bit? put

Paul Boynton

said, September EBITDA but, -- see And strong going that you're pricing kind math, October won't of strong we be timeframe your factor Well, be and we noted you can market quarter balance and the we sold Steve, out should volume another the on well. if there, in will lumber. and of to you look, stronger give the as indices also the kind if of do we've guidance

Marcus Moeltner

Marcus. It's

sequentially, if X%. you almost last if on to Just And add compare you look up, X%. volumes, the we year, call to the it it, volumes, at were lumber then

So Paul's of build we to good comments. on drive kind some did volumes, just

Steven Chercover

expected where you know your mill Day discussed benefits COVID XXXX, in that for of Investor I did in switching crimped were? also has demand the operationally they the clients and rationalization Thank market did the initiatives both generate perception your you knew that you. context back your but that capabilities during And gears, Cellulose Specialties

Frank Ruperto

Yes.

we the did is track in answer and those We They savings short that have. over several generate regards of all savings past the years. our integration the very to yes. closely transformation So

they in from moving had most better many So, where efficiently cases we to produced logistics benefited were where we prices. grades and

So of we did some benefits see those movements. real from

coming this did we over last price margin XXXX, saw year, year, addition, X% there. as businesses X% some into you some some exited timeframe lower for volumes year to we modest In lower see improvement, the set the although

overall, have the give year, answered negotiations I reasons we're competitive going how into John's repositioning outlook the question, of As for CS goes but to into generated not as there. And efficiently, run trialed to more most -- in so that the opportunities that for allowed the with which some any to mill successfully. assets next moved move effectively have real and them and done to part, customers us

a good effort. all-in So,

Steven Chercover

Okay. Thanks, Frank.

do are my the So see release, in starting just us markets of nothing in of with Can negotiations, you recovery. signs mentioned press give X, and the and viscose you economic ethers? follow-on high-yield to but the the has that Page acetate land lay to

Frank Ruperto

about more any you tell on viscose can and volumes I'm pulp, of the high-yield not I No, going comment CS to pricing. but or

Steven Chercover

viscose the cord? tire T-shirts that for it is you're to, viscose So or is commodity referring that

Frank Ruperto

No. commodity This applications. the going textile into is viscose

So viscose and fluff October. commodities commodity That that viscose time months for in in the run. we this the run, XX is what we've first up is

increases went until level downstream down October $XXX Trump place as to picked is year we're of better than those seen So in at sat XXXX say, result, the more and seen of strong put But up post-COVID, with remain and quarter. are apparel textiles November, out increase, market the entire spinners would over as seen anticipated roughly November. dynamics and the and roughly $XXX, charts a accelerated those two we October. the into demand from They started price and in into having price effectively drop and for we've when momentum those $XXX the over up viscose I before up we the that seeing better the in us went a the analysts the XX% in year manufacturers, their And the dated demand tariffs apparel demand Through $XXX-ish we've has effectively year most the half half think months, this up $XXX and probably a October XX%. to put those, for September analysts enter tariffs had in to in ton. and fourth as as were China May next last that on markets you've

others, perspectives that So would I cover analysts we do more different the market, have enter bullish perspectives, to XXXX. for look those and maybe as viscose CCF

Steven Chercover

Okay.

So whatsoever -- let you're on in cellulose. really comments, no what's specialty making on And going me just...

Frank Ruperto

tell you I'll markets just is general, about only of The cellulose in specialty Steve. our thing kind

as We tire So seem improving talked would and first about but industrial been resilient say I'm year, looked automotive the this applications half very has depressed fourth see and filtration albeit to mean, tow seeing declines that. throughout for find I quarter. at the end in I forecasts, we a happy are we've stability in acetate markets the cord that. hard customer say we've finally hit and from But, year, were level to the year. of the did

pharma plastering market going general and So construction, and There's envision go opinions and of bit a wildcard. don't likely a mix, that improve, some for construction But portfolio ethers expect into to the while stabilize. have remains healing steady. further customer's product on which improve food and forward, depending remained each as to market ethers that relatively varying there geographic in outlook. the while deterioration cement, we Ethers things segment, for

negotiations of that's into customers. can to side current on So in the kind state the best and demand specifics we getting regards without see and the it of

Steven Chercover

you. Got

in do Okay. worse and are administration. side? respect There hostage a Last China there on was, the expect being the other don't be I would make better there or an that lumber $XX election that million bucks held odd honestly and to your But you in know. ball also one. might was the with tariffs day things change assuming

Paul Boynton

know don't I and don't you know I know. Steve, Look,

this the too impact and where it's think early to to goes the say I business. all

outcomes. both You minuses can lay out and scenarios plus on that are

operating of of So Obviously, years regardless with last conditions couple been we company. right And the we tariffs, I the just haven't been positive forward. the the to now, Frank we've the as improve those for noted conditions hope outcome, tight. think, going in stay

Operator

you. Thank

Please comes next RBC Quinn proceed the question your Markets. with with question. from Our Capital line Paul of

Paul Quinn

on Just that is specialty to that X% up pricing mix was on is volumes? contracted or the on XX.XX, that up quarter-over-quarter,

Frank Ruperto

Yes.

the back So of all let me and over just year. -- course that contracted changes mix the then of volume step contracted on it's And volume. the

products. So has to Cellulose you one -- this there into as think of the specific were way going able the by the the see is, And end through to year. two negotiate depending the set increase X% a about of sales That during things. all are to pricing our on year, is flowing year of Specialties what relatively go the we through gets that course previous prices of markets we for that year. and the the the in One is 'XX, X% a range end

a The in contractual which based sold other prices is on it on of quarter. piece is the is basis what mix the or piece, actually lower higher

X% it's So fundamental more changes to in that any customer about given than is is it any quarter the order X% the about patterns in more deviation about any patterns, from order market. customer the

Paul Quinn

And innovation Okay. side of in on got the That's you, helpful, Frank. note specialties? product anything I while

Frank Ruperto

acetate couple of give the that I'll got a right, we've in innovation applications, too into very lot type it's viscose Yes. just -- been or alternative regard. areas whether into going time textile a looking you which a and group. its grades go We where at of we without big focused are improved deep grades product but at textile spend effort we've it, of looking that

the So that's we're there. one forward perspective fairly far a road from as down that we development move

many emerging And for also particular in to at, we're structural on we're trends, for time. acetate our I in to and market, that market world. acetate a are looking faster that customers drive can -- acetate when extent to tow them partner of new manage say with declining into expand some that, market uses the businesses to the tow outside focused opportunities think non-Chinese the in the very arena customers I of with acetate help of those actively acetate over decline growing to we looking looking

that on we that a been ethers So One cotton good market. little growing that pulp more prices time out a ethers significant out give there. you has cotton of There application world. that's lint the goes market. is viscosity over the one another flavor But one. the And have, our we're I'd is with into some ethers these of market, looking the pulp fairly viscosity makes our take out in only is highest lint wood the dissolving levels big. Tartas that viscosity and And the to intrinsic of which against we facility, compete component of that the cotton of are to and knowledge,

very both to where And closely of some market cotton so so, these mix there applications, ground cotton pulps uses hard products. a have will and and and is both still its take lint and it significant we're lint working with very time developed cotton used middle will capable penetrate lint because of but fluff that ethers and both are recently

Paul Quinn

not production? volumes the of take the then, impressive. And at great. side. a lumber sustainability maybe question Okay, just that it's the look year-over-year, the What's lumber And in last shipment when increased I

what are the running on mill in Are you you just basis? two-shift mills? you doing overtime or are every So running

Paul Boynton

Yes, did depends say on Paul, would it talk mill, that. on the higher the I those we they're levels, not. how And sustainability about of

year-over-year. again, the month in mind, two some months I be production on the And to relatively downtime timeframe, facility. a we our to levels keep in April/May going depending think consistent considerable took are

and elimination quarter around kind just like period shifts, and that focus things breaks extended again, for of really were these of that a of third really So time.

our a at improvement And of take a year-over-year relative output so of I assets. change don't think substantial or that it's you the look in would a anything

time upside to going that an at prices said to see I you're think you again, really prices bit in taking more this quite of strong, we QX a of in are levels. had elevated and we're bit compared as in just look advantage when got a we relatively of historical it period QX, to at

Operator

Thank you.

question. proceed next Stifel. with Sandy Burns Our from with comes Please your question

Sandy Burns

Obviously, do this positive company or business. think normalized volatile it to feel cost Maybe before to the that on will maybe enough if pricing uncertain the historically somewhat were such, enough operational like that strong the levels, a we see upturn your against things you structure, business you just could may still going industry? and feel but tagging business, demand and demand and basis even forward on previous go in you future EBITDA initiatives certain taking pricing, high that in on more about lumber the be given thinking quarter-by-quarter the volatile and it's return question the consistently

Marcus Moeltner

Yes, good It's morning. Marcus.

deployed Over of better margin these scanning to targeted years, improvements, saw drive costs. down line we the capabilities and drive some capital to last couple facilities, strategic

would are through that to production. positioned fiber run sustain I that to the have and base say of they certainly So better they certainly cycle type a

think, I given certainly that the capital they're there. strength was So, spent positioned, to better yes,

Paul Boynton

add across starting think, of I on focus our reliability see Marcus, we're Yes, the of assets, to all to that, that really our I just think further, benefits that.

as And our cost of so, that assets these position improves I think overall obviously well.

kind tackling as the day on think been team to the from out I it's blocking, well as both of focus the investments, excellent. just So day there,

the with outcome. pleased we're So

Operator

proceed from the Thank Berenberg. with question Instructions] with next comes line question. of Please you. [Operator Misra Paretosh Our your

Paretosh Misra

your to back go Specialty of products. wanted just uses Cellulose for -- Frank products, I some made believe, to about comments, so I So your

tow. So some to some for it cigarette textiles applications as opposed using are of emerging your obviously customers

end? change on do any So to difference product And my that is ship is there they at does that them? And the your a that, when side? question anything you that pricing different is,

Frank Ruperto

product. both product the but well side into characteristics. getting its its it as say ability use, application its without and I a would it in pricing different that -- a It as is valued, to Paretosh, particular, of is for is sustainability So

that sustainable market So are sustainability the continues move textile solutions, by towards more a into well base the to those as our products received go from perspective. customer

Paul Boynton

and based them mentioned And also Paretosh, something recognizing add with nature right, at, better them a is are here And they're some -- working we're think building it fundamental making effort. of and us we're a a what we together very bioplastic, it's on our sell happy that's how chain that block because hey, -- is made approached I'll exciting different. are partner earlier, our a the customers It's petroleum-based our on some shift, looking against we about compete on of with supply these looking comment for interest customers some Frank certainly time, of the to and But, other Frank team customers. of do as our are who've at us, support textiles to also going to again, but take to and very their working initiatives customers alternatives?

Paretosh Misra

front there how of in pretty for to the yourself or you for cellulose same And Interesting. sustainability everybody opportunity it. Got you the any terms much your the differentiate on is get feedstock also thing? does products

Frank Ruperto

No, continue it. And we it's to work on not.

-- is Paul in we've cellulose going that's will items This appropriate opportunities the marketplace. is And a the removal is in U.S. to Canada, pointed in wood petroleum-based continue designations supply our focus from to will So through cellulose of over got needle especially Paretosh, the consumer that And, getting away up sustainable chain, to the which base. they end the way better markets. things out, move to work -- and do with ours. to to customer going this wood regards I useful on solutions is go FSC-certified very NGOs broaden sourcing opportunities in a which of trend consumer we've to to on not opportunities more greener And and which This this the that is the to think begun a the the pull is continue big time. go as really continue leave purchase. goes going for

Paretosh Misra

it. Got

And industry question I an pulp. Now, high-yield had lastly, on very then interesting.

there, pulp. So, market? the not pricing the fiber, mentioned recycled of China those think use that elaborate changes? could in close you regarding in I think of changes some I'm And do but in happening to news the recycled Can you on industry flow what's super sorry that going to when just impact you as because

Marcus Moeltner

Yes, good morning. It's Marcus.

office with sorted the those options, what the are paper for product. that replace the production recycled of board, producers in market band, you If look but Chinese would at coated limited. look pulp, to they given that And we're use from hearing, those

be look that where past that seen -- So high-yield. their come fiber, if continuum and would shifts you these at for we've you look in in that the they're of might next high-yield they and fiber, use, the when the available sourcing see fiber they

that potential opportunity here see. we a certainly it's So

Operator

appears you. questions we Thank this additional It no at have time.

floor like the additional closing comments. any back pass to I'd for management So to

Paul Boynton

we to operator. you, Thank our Yes. And rising participate we as pleased shareholder and with and do look, everybody's we look driving commodity to initiatives value We're time quarter these today. cost takeout in appreciate markets. we our third forward continue results

to We everybody the again, future. this an So your time morning. update forward thanks for near giving you in look

Operator

this may at does your gentlemen, thank We for you and today's teleconference. participation you this your time. and Ladies conclude disconnect lines

Rayonier Advanced Materials (RYAM) 7 Nov 202020 Q3 Earnings call transcript