RYAM - Earnings call transcript Q2 2024 | Rayonier Advanced Materials Inc.

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Operator

Good morning, and welcome to RYAM's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to your host, Mr. Mickey Walsh, Treasurer and Vice President of Investor Relations. Thank you. Mr. begin. may you Walsh,

Mickey Walsh

morning. Call to and Good XXXX Second Earnings Conference Webcast. Welcome you. RYAM's again Quarter Thank

Joining me Moeltner, on Finance. our Officer President today's Senior call are Chief and Officer; De Executive and President Marcus Vice our Financial and Chief of Lyle Bloomquist,

earnings were last are presentation evening materials website, on our ryam.com. and release and Our issued available

laws. like remind you harbor will made statements forward-looking the to that, safe we I'd pursuant of provisions securities federal include in today's to presentation,

filings with results Our SEC as from earnings on as our of presentation which make. actual release of Slide some cause the may our factors referenced materials. to the the are we well list materially also They X forward-looking may statements differ

measures on measures to of non-GAAP XX these not non-GAAP directly Today's comparable We believe be reconciliation presentation our useful A considered Slide financial of included provide measures presentation. presentation measures. and also as materials. X an should certain to most will our their investors, XX financial GAAP reference of for non-GAAP are information management on measures financial alternative GAAP but through noted Slides measures,

And De Lyle. like over call to now to I'd turn the

De Lyle Bloomquist

business quarter with capital I'll handing Thank good and morning. the I'll segments, structure Marcus, who After outline to over and details XXXX. financial you, the overview more for start second on recent company Mickey, before liquidity. of that, the actions provide will

sales and paperboard ongoing and businesses. on Marcus' plant at guidance Following on Temiscaming the operations to our suspending and initiatives XXXX. comments updated towards our This brief of pulp return our discuss include the progress remarks, for high-yield will updates I'll process HPC

for floor will open We then questions. the

quarter from our EBITDA Slide we'll same discuss performance. increase quarter up $XX year. XXX% $XX million our X, to the attention strong to Let's a million, Adjusted last turn or reached where second

and improved by key In cellulose productivity. for driven logistics or costs inputs specialties, higher for decreased the EBITDA cellulose XXX%, million segment, sales and high-purity $XX improved by volumes

it during Additionally, this of subsidy million quarter recognized was due during $X a quarter's of government the pandemic, to benefit. completion the the Canadian benefit results from this included a wage but audit received COVID the

segment for volumes, and or million Canadian XX% pulp driven a a $X cost lower benefit sales gains lower by by EBITDA, wage experienced paperboard higher purchased from were The $X increase These a sales subsidy. partially offset million prices. the in

million EBITDA pulp due the In wage rose costs, to $X the subsidy. Canadian chemical segment, and primarily $X high-yield reduced benefit million, by along with logistics from a

the improvements these offset were prices volumes. largely However, and by lower sales

related by partially impact. by were the a fees $X ERP costs increased capital working compensation favorable foreign discounting by and offset project, driven of million, to higher in These variable expenses initiatives. financing Corporate support our exchange and

overall as our to the reduction enterprise across core our softness specialty for to was continue than of performance businesses. and more production commodity compensated strong in mix summary, we specialty the results which our in driven In segment and cellulose by some sales, pivot focused cost more

finalized that of generation refund I'm for we free in $XX and million. $XX strong our to to Last transaction monetize announced million significant year-to-date as lumber transaction cash quarter, rights report was a received $XX reflected expected. our June flow have million. happy This duty in that we

our HPC to positive yielding plant track. market operations flows. benefits free is The our EBITDA indefinitely at process current consolidated conditions, suspension Temiscaming suspend enhanced the remains Under cash on and

million million to to in I flow our and of to strong million. half our to $XXX guidance full the year and year $XXX free am performance to million our first $XXX full updates the adjusted raise to EBITDA guidance pleased cash these increase Considering year, $XXX

the to walk quarter. over Marcus. hand financials I'll it to for that, Marcus us With through the

Marcus Moeltner

million. XX% $XXX resulting a decrease pricing by increased a with by De reflective whereas Beginning of in Slide XX% on increased Lyle. sales $XX our sales, X%, X, sales segment to products, volumes offset of quarterly increased mix total from a commodity higher HPC by increase sales. CS you, Overall, XX% million X%, HPC partially CS Thank or in

in success continued HPC of the HPC plant the late volumes volumes our and from product sales segment suspension a and in in was of by The indefinite plant. enhance reached recovery ether XXXX, XX%, rise initiatives bridge of the specialties. margins closure the Temiscaming supported EBITDA the CS demonstrating mix to sales in prioritize the competitor's muted

million due the and green mix sales. key primarily CS decreased the million, $XX which quarter impact and the inputs with of enriched million rose of $XX logistics, EBITDA were energy of along improved sales productivity. to $XX included Other for benefit the to costs of million, an sales $XX noted segment by for for HPC previously

quarter's million This for the benefit. $X CEWS included results also

as X. the a and volumes $XX EBITDA Turning volumes. decreased result purchase sales the sales driven in increased to pulp the Slide Sales primarily for million, segment of benefit increased $XX costs. improved paperboard higher by by by $X reaching million, of million, segment

In addition, for $X included CEWS. the segment million

to to EBITDA compared $X drop Turning $X included the million and in Slide quarter's sales Sales The prior the reduced in to $XX declined million by $X the prior of volumes year, demand CEWS. dynamics X% as decline overall a a on quarter. due pulp sales impact high-yield Segment reflecting X. for million prices in in market supply benefit and the comparison segment year also improved to a million results China. to XX%

lower was by of for Slide improvement reflective the primarily year. million amounted the last quarter HPC's and to for million, high-yield reduced operating HPC and CS partially X. Consolidated were $XX second driven positive quarter improved of Transitioning to favoring sales for commodity prices. of grades, versus a $XX income products This paperboard volumes change than sales offset compensated The more increased by product pulp. sales mix CS which

company's to and a to impact favorable fees working partially project, results. higher as and contributed the CEWS of million compensation were the including benefits, support improved incurred exchange capital ERP foreign cost benefit, by support variable initiatives. positive financing to as increased Other rates gains These discounting well offset $XX costs

from and at $XXX reflecting reduced let's debt same of covenant million the facility million. $XX loan, X. under term the the within covenant further associated ended strong to X.Xx, Net Now quarter well $XXX million, in debt, the $XX facility. million ratio financial with turn Net $XXX XXXX. test. available secured ended quarter million million, and reflected of period at at French our Slide $XXX the as the from million a $XXX Gross in closed quarter leverage factoring our ABL Liquidity secured remains at our cash, reduction

$XX implementation ERP of strategic and reached of million. $XX of system. financing, bioethanol the our project million, towards strategic Tartas Year-to-date with capital Net the start-up $XX upgraded CapEx million allocated totaled to the capital support

De additionally, And sale planned Currently, all major XXXX outages completed the have Lyle for now successfully been our we mentioned, for of million. duty refund maintenance completed. as $XX rights

us targeted this liquidity $XX reduction million well remains positioning to debt our strong, achieve year. our Overall,

are senior improving We of the enhanced performance refinancing to credit actively metrics XXXX will the refinancing and company notes pursuing expect the current the enable going before company's year-end. our of in business and January by complete

With Lyle. back to De that, over turn like I'd the call to

De Lyle Bloomquist

Thank you, Marcus.

attention key I'll initiatives turn to our now provide XXXX. on update our for where an XX, Slide Let's

January Working secure options the and refinance exploring market the Our in at year XXXX Lokey, with terms. to our advisers current we are with senior engaging the they closely refinancing is best this to Houlihan top XXXX. notes go before goal actively

on at by are refinancing our debt achieve In million gross supported flow, strong terms in interest satisfactory We the effort, support enjoy of we from by tax sale year. of to generated the duty of proceeds among free in the reducing recent this also therefore, rights. lenders, refund cash and track refund $XX target XXXX, the confident we refinancing business are a completing potential within

our is progressing. paperboard pulp The process high-yield sales of assets and

Temiscaming parties offers have the for parties, met assets have not multiple criteria these sale. to received transact from We our a but

we parties are continue dialogue operations through suspension complexities expect and the HPC We of as of with continuing the Temiscaming. the work at to various diligence

committed combined a margins custodial which the we if of the high the are values intensity assets to and an of We paperboard EBITDA offer and completing capital sale low high-yield businesses. appropriate receive these

our potential load, from repayment. significantly sales would estimated we the cash carefully any from free businesses in million debt are proceeds flow the $XX the balancing reduce While these against annual debt

process, these the notes a prior senior Given to sale XXXX at turns secured the assets. we refinance of the expect to of potential satisfactory length

plant. announced In loss April, indefinitely decision the mitigating our in HPC million. we to reflected in $XX at of commitment XXXX decision we commodities, This EBITDA time part a to our from Temiscaming which the of non-fluff operations would result suspend projected drag our the financial

As a in by supply/demand market. reduced nearly commodity we the of the this also result forecast losses non-fluff while balance specialty to these improving half be year cellulose the core suspension,

raw slightly approximately continue of CS The activities materials. process and and significantly was suspended operations and on continues of higher is announced, suspension The commenced plan expect utilized from qualification half EBITDA the July later volume through XXXX, than per retain to a historically sales all have Temiscaming. that percentage we will XX, the customer October. sourced ongoing, the with Mothball

produced sulphite the Going fluff at B lines and A Jesup most at continuing our our C with products fluff be business Jesup plants committed We line will Tartas. production. from focus and CS forward, of and these our at Fernandina remain to on to

We positive a estimate for $XX $XX $XX upgraded impact $XX impact and impact on suspension severance, to million services our mothballing. to financial $XX a forecasted positive have onetime costs to free to and of cash million million outplacement million EBITDA on extensions, the benefit We million for flow. of XXXX adjusted $XX million

announced to increase improvement the due financial primarily recurring Free after HPC $XX improvement an $XX with $XX to is of for due plant. million The reduced EBITDA $XX the commodity impact remains cash are to flow adjusted losses adjusted million million to EBITDA customer avoided qualifications completed, CapEx and expected Temiscaming to EBITDA from million custodial by sales. as

of routinely previously light stated, conditions, in factors. will the indefinite market of and As relevant we economic other suspension monitor this status dynamics

our our most promising of business. involves initiatives biomaterials One

Fernandina and could in We process. which time engineering is delay being plant. line bioethanol the are has of completion project's participation, the regulatory public uncommon addressed of a not line this -- detailed extended time construction phase through permitting The our is been project. for nearing of This result the

submitted a our GRAS to for production prebiotics September. trials notice expect in product for self-certification feed have begin We animal and

and our with energy tall both projects operations capital. including are proposed pipeline, sale green other crude France We aim facility, produce oil biomaterials projects Jesup at will primarily which our U.S. green finance to and for project project We at advancing these the in the AGE

Let's turn XX. Slide to

achieve updating We to guidance adjusted and the for year. our to EBITDA expect are $XXX million of now million $XXX

benefited The first the exceeded of to expectations million in as CEWS. benefits recognition half related from we results $XX

of CS We suspension the HPC plant. Temiscaming the customers at indefinite benefited operations advancing also orders our from ahead of

majority the of order While of future sales half we to our the XXXX, plants. at in back expect we the these production don't retain requalify the other in expect do we advancing repeat as to

Overall, results reduced we still sales of expect XXXX, operating increased solid back half costs. and driven in specialty by the

expense is plant. million Maintenance holidays. $XX of CapEx QX at now $XX Cash which million due made includes a the year's to reflecting a around the interest in approximately for $XX million, $XX suspension payment last the projected at due early the interest of the timing million, is HPC estimated January to reduction payment Temiscaming

other a have capital, benefit refunds the completed successfully and $XX related in project accrued the includes to gains we anticipate will and plant partially monetization which of the for suspension. HPC we the Temiscaming million million $XX be impacts Additionally, from These duties. by liabilities. $XX Temiscaming $XX transaction working plant HPC offset resulting from million Furthermore, the million for tax suspension lumber

raising and adjusted will funds reduction These of our strategic flow $XXX free million to a to towards guidance the investments. range for are cash we debt be $XXX sum, allocated capital year. In million

Temiscaming $XXX anticipate gains dive to I range XXXX value plant compared for and of increase We our ether million XX, deeper cellulose prices low to to uptick to each will HPC we in bridge by for the suspension. closure, cellulose EBITDA $XXX HPC expected segment be offset We performance prior volumes Slide and partially of in competitor's to due specialty in On destocking XXXX continue project as by prioritize over terms. of a to the acetate increase percentage into an to businesses. single-digit the expected These our volumes sales volume. year specialties contract are changes Sales be from million.

XXXX flat we HX driven XXXX, stable HPC for sales. a with increase project Demand to in products by prices compared fluff remained slight and increased sales volumes commodity

to stranded due and We to improved logistics in expect HPC and the costs overall be costs, Temiscaming XXXX the lower suspension, costs offset to suspension. partially reduced by input related productivity net

be QX XXXX. We anticipate significantly QX XXXX stronger EBITDA than to

and benefit due XXXX QX than the bridge as CS increased the of lower Temiscaming end of costs be HPC to suspension plant. will it the the stranded volumes However, CEWS well as from

centered is on growth business. our in biomaterials Our investments strategic strategy

have several strong projects outlined and of in the our promising earnings have both initiatives. and We confidence upcoming current potential

and Tartas plant, we the EBITDA million to project, $XX to as million generating is this already first $X levels. XXXX bioethanol is $X $X Our million million year, production growing to positive expected contribute of earnings targeted achieve to in

million-plus With of $XXX of portfolio million in initiatives the these XXXX. $XX anticipate from the of achieving addition on remaining X, projects revenue we EBITDA in

control XXXX, we paperboard, achieve the approximately Regarding reduce, slightly XXXX. distributive planned despite in upgrade. system increase expect projected of volumes Prices maintenance sales half to downtime are are higher inventories while million in to of decrease EBITDA expected $XX a slightly second to for as

coming cost. Consequently, the quarter. anticipate raw prices However, to to are in due rise pulp expected purchase decline we EBITDA increased material to

high-yield EBITDA million approximately We pulp achieve of in XXXX. to $X our expect business

decline Second capacity are China. pressures from in pulp half prices to XXXX expected stranded due pricing to

increase However, are sales projected improved due to volumes productivity. to

be expect in a result, As we EBITDA coming higher the quarter. moderately to

For $XX slightly we expect and implementation. are XXXX, increase second with Corporate to of XXXX, the year project to ERP foreign in line are corporate half in as final multiyear XXXX due costs the costs our exchange project million, of in we expected rates. favorable less this of

starting concludes, vary note ERP cost due in and system fluctuations, and reductions other costs project environmental currency factors It's charges like the to we important As expenses. that to enhancements noncash anticipate these may XXXX.

our to current core dynamics specialties want to the Turning supply/demand We an market. in Slide on cellulose update XX. provide

Given capacity Temiscaming industry in seen Foley XX% approximate and our reductions suspension GP the recent the HPC of to an facility, facility we the with have indefinite XX% reduction capacity.

participants. supply/demand a supply/demand analysts project believe the Industry debottlenecking anything in to to in XX% from increases growing as remaining We around above of be the tight a capacity view inclusive dynamics a indicate We XXXX, market market XXXX, current balance. market. XX% XX% supply-constrained ratios

our XX, be market the growth where year margin at range. turn we net anticipate to The forecast the XX% decline. our and XXXX, to Slide X.Xx secured margins trajectory the favorable covenant stands outlook, In this leverage EBITDA end the With of of net EBITDA. for at leverage we we illustrate in

target We are before ratio confident leverage that debt our we will well of achieve XXXX. net X.Xx

With to please call the that, operator, questions. open

Operator

Matthew the with [Operator Instructions] Your first of Markets. question RBC McKellar from comes line Capital

Matthew McKellar

business. pulp your on for just first, the process Maybe sales high-yield and paperboard

bids, this give mentioned And else that the a have received but are you for think apart I then are price alone? offers you not on a that far met parties Or Is to able from is your have fair there you've criteria. comment submitted sense of they is that anything how us business? here? worth think value you the considering

De Lyle Bloomquist

how get high-yield seen diligence can but our there can Lyle. couple a further is can't points on -- A De -- are really think that with we into specifics where of other clarify going, what make of what this I I I paperboard points are the and make. Matthew, we've could and couple to process. I respect I pulp is

talk other I -- criteria, points when addition when to differences. say valuation it's So in I

junior of and the the the senior position employees, revolve -- Temiscaming. employees a by facility more So be is speak. the Because process employment good versus on desire. at employees to the other so criteria contract going get really, bumping force around have rights gives reduction if is unique they as right the paperboard operations the example in of that the at we senior in those points would that A the suspension triggered

to there's need this effort. as mothballing go whole process through So through this go we we

it's so with changing -- the to questions raises buyer. and out or the personnel, potential hourly and salaried personnel, Obviously, respect concerns, that whether when you're

demonstrate, that will effectively really able get we and plant to get to to be other that the and we need So through process end, going when the efficiently forward. run

want both are be the efficiently would There sure and for of and operated assets around within shared issue what's make effectively. be of sale. Another that would -- us example, perimeter utilities the are maintained to

going So that to going them who's so own there's discussions around them, forth. to obviously, and of operate who's

as well. discussions So still ongoing those are

Xx of somewhere we neighborhood it of in such of point In kind the been of to where respect benchmark, GP of that's recent, valuations, our with the and And fairly Xx. mean, to around mill Augusta terms having has kind we're been working X with EBITDA, where that's a discussions sale to I synergies benchmark at after that. and suitors. the potential as sold our

Matthew McKellar

prebiotic time I today? bringing you on about 'XX. the then to could that sounds please? maybe you it about to like just that refresh capital anticipated any Is progress Maybe just able the late previously you're returns or project relevant that 'XX make Can good update targeted you market to, you're us And talked think and if on Great. on next, to a us how still you initiative. thinking continue line? extent cost

De Lyle Bloomquist

Yes.

mean, So I and and taking that animal that sold some spray-drying kraft purifying various of at would stream pulp feed generates opportunity, streams packaging suppliers. advantage facility, and then the be it Jesup mill be the prebiotics product to located our to material then

gotten of the the as are standing validation they safe, the through with self-GRAS-approval potential And through couple as competitive process, independent our of benefits working product process. own generally their called We've go versus GRAS customers of regarded key closely our offerings. for

for through produce we this go And we come the doing at prebiotics production actual make sure and that September, capital committing pre-engineering we're before trials scale some start plant. going to to can the

startup. little hit to tight, we're think still late date. still a timing, for starting targeting XXXX still we we terms that can And In a get of though that's

a you that. expect, now, we're have But qualification on any really hit go haven't you to right bumps and through quite through process, So that. lengthy as marching speed

Matthew McKellar

targeted returns say anything able project? around there to or that costs of is you're anticipated And capital

De Lyle Bloomquist

needs will do in question, of that an and inexpensive. on XX%. return The -- largely And is be it of thresholds, green that, very though meet by capital be equity, north terms that's our answered. -- expect to that will open financed capital that that which be We capital return -- will

Matthew McKellar

provide maybe China? seeing last then And And high-yield around what you bit for the in just a in pulp markets? seeing an in one Could particular, you're me. of you're update what

De Lyle Bloomquist

with Yes. a topics, least favorite This about the time about just because kind at dynamic. my talk is one really of it's I something my team all of moving

the that the constructed a What paperboard trouble we're of paperboard. production home were having recently plants that China finding is seeing are for in

in of in lines the same kind they're that's bring dynamic on it's weighing those That purpose. And continues then pulp competition the to running any China. into for obviously pulp China bring flow, pricing cash So in competitive their and that lines plants. we selling pulp the paperboard heavily to with and

is So to going other an to sales terms activity in don't China, consumer markets long how idea to really we're our like China now. around on, the questions Europe. right large reposition given that, in into But go outside this of and in working response India have of

Operator

the next of Sidoti. with Daniel question comes from Harriman line Your

Daniel Harriman

on quarter. Congrats the

ones a quick Just me. couple of for

any it's the the before refinancing like event? end at should then of production, total. And of we we sales QX a that QX now event the when down And year? the to viscose concerns as X% all or First, your finally, about at look a about think

revenue be So that's towards continue the there. the commodity of a going piece obviously, of managing to Is the you're pie moving year? the to safe to end assume it volatility smaller that,

De Lyle Bloomquist

look a public potential first you the we a working issues Lokey the Houlihan around let as and of where I been couple and of both private do tell and I have now markets Daniel, well are and can lenders the that about What we've at continue the worked with address so. months, process. for number to is with with refi as me

for receiving start we'll September. refi that expect the come We early proposals

so as quarter. lead until, won't through go the fourth pick and And those it's completed the let's and that obviously, likely get we all horses and evaluate the say, that, refi

before in we that but year-end. transcript, So done to again, as noted our get we this do -- expect

first viscose, respect With the viscose, seen we expect levels was it Around as In -- XXXX we've your further. similar question beyond, around to half. it? Again, see what and around to for yes decrease the through viscose,

largely back to say, continue say, sales let's historical Let's to in we're 'XX efforts then that to X. roughly, as ethers going X% to in around demand And levels. will And push ether be accomplished to to that put through continue normalizes lower.

Operator

line with Water Your Dmitry next comes Tower of from question the Research. Silversteyn

Dmitry Silversteyn

I good on to couple Congratulations you into may. black. and if quarter a guys back the see strong A swing of questions,

First dynamic the their is due paperboard your terms of impacted Can of European about all, being behind you U.S.? product mentioned in that? becoming lower by Why sort that more to Europeans you talk importing the into are business prices imports. of aggressive

De Lyle Bloomquist

issue conditions Yes. can conditions the And in probably secret. I it. think, weak say And really the no The it's, worldwide is I generally weak is just Europe. economic driving economic

looking you boxboard kind -- the are European of any sales. for find folding plenty of have So producers and capacity

And half. so here actually first Europe we the have been on seeing in imports and basis increasing an from

Dmitry Silversteyn

Okay.

with So has a to rightsizing that. like anything just That's that's longer-term do something or issue. nothing going general... a that inventories is be to It

De Lyle Bloomquist

think that Europe. I all until driven that consumer the that see say, all starts And returns in up, pressure. general. by demand, we'll it's picking and No, weak being would I It's

Marcus Moeltner

the and happened Lyle flows that's It Europe. with, general mentioned, Dmitry, as De in before. economy And ebbs

So...

Dmitry Silversteyn

question level you'd to strong like to volumes, better. ether my second see but you the is, then And your certainly Marcus. Understood, probably mentioned comments them, in getting that not

market. Typically, You construction interpret can given that input of being data and also wood costs, it's chemicals. about as perhaps other demand chip the and talked chips a wood growth market ethers, you your in the inversely lower points assuming some I'm related are costs key are to construction these for which indicative improving,

this to this? reading an I improvement starting you market end into important right? sort in much Or am too Are for we see am ethers? I this of reading So in

De Lyle Bloomquist

in some of chain areas, been believe could With restocking. the some respect driven in ethers is saw value certain there is say demand that I we we ethers, has but what doing pickup some in by that there being increase market to do end

saw the So are go we the discounting related to QX, restocking. into when we half increase first we in

So that one is issue.

would input of plants. many being improvement purchase in the the prices by lower to emphasize driven also year. I they that investments we last like say are inputs, year seeing capital were than respect would made that the the But to With I we're costs, last our key

in seeing as you're be efficiencies which long-lasting. improvement our usage an more well in much material obviously so And operations, much would -- more

And then commodities. finally, facilities. cases the It's costs, on to we're with is mix than a the it impact our make -- benefit to specialty getting respect the from across production make many variable improved a seeing to actually easier for us in

On improvement. One also fixed is higher is, costs, we've significant seen this obviously, productivity year.

plants You running may control plants we year, throttled back last This the the to capacity. remember year, inventories. at actually are

the fixed down unit costs year. this So are

costs And about that remember those announced benefit the you're that of And first cost is aggressively reduction last comparison cost so start we the this second then of in we -- reducing may other savings -- and began year, the in the half around were what you those now XXXX. of the half, issue at you're going to of realized is seeing the that continuation the time we costs facility. seeing that

that's side. cost the going So on what's

Dmitry Silversteyn

And very helpful, acetate the last on one That's then Lyle. Okay. market. De question

given by global that getting going this wind now certainly continuing you to isn't the by economy destocking of expectation down customers. talked do You that end is into Or this XXXX, year? about expect stronger? still it to the get Is

De Lyle Bloomquist

Yes.

couple of the me make acetate about destocking. points Let a

Previously, and half. need we then out have demand plant sold with it would we there seeing first XXXX. second expected felt on to the was out, hit that Jesup After happen the out, that that our XXXX. the with all half, and demand start given take in First, the destocking was difficulties we'll worked level-ize we for across trying of of is had that improvements sold whole year customers to that the said the the leveled -- we we make seeing the in being we would a

'XX huge uptick have to in year. a going for now essentially not this you're essentially because So the flat see whole got line we

question, continue think the that consumer to More Asia. we I elevated weakness, to though, to Asia see in think And 'XX, going end in the Unfortunately, of in been going end directly your we generally. to principally do is that's about destocking in 'XX? again, China, indicative but it's inventories

some so likelihood see is there demand And bleed into a the lower of 'XX. that we'll off

Operator

from the line Stifel. comes question of Burns Sandy with next Your

Sanford Burns

add wondering And on if congrats components can in guidance of just it comment mostly quarter in this year is a or the down volume I'm the the strong earlier I'll also the increasing environment. you versus, The More mix -- More in on the it? plant you improvement weigh break different maybe and how on increased of guidance? in and from increase those there? confidence the Like what suspension? cost side? would clarity cost the benefits terms drove in how

De Lyle Bloomquist

we realized right? of that's And is in of Temiscaming. sales wanted some in which their part in CEWS before Obviously, $XX at advance be, stock half. the rooms it, the operations our second that suspended the component the we of that then inventory by some first it obvious, benefit it, would call million is of Well, get $XX to customers that million

-- a as -- of the So was saw some bit benefit suspension at move some Temiscaming. well. to growth sales, demand in driving we related that then or And forward little demand as increase and ether did sales ether result uptick of that's growth with to a see underlying in the and sales, an respect that we

that million and at say million on in ethers that improvement Kind $XX when in demand $X $XX a of the we're roughly down, say looking would or we Temiscaming and that $X I break So related million ethers CEWS million sales all to the and would to move-forward guidance if I -- I increase in million midpoints. was improvement a roughly were suspension. the look at the on then $X

Operator

at further I question this time. over is Instructions] will turn the Lyle [Operator call There De now no to closing remarks. for

De Lyle Bloomquist

work right. and enhance you in and interest very been leverage. appreciate RYAM company. We again team, your I'm to in thank profitability the very our our the our ability for dedication the reduce continue shown and call today. to Well, joining hard confident support and proud All and are debt once certainly has by that of our

I updates forward on support company. strive growth to success the ongoing we and as and and long-term all our further the providing of look value for projects your initiatives contribution

any to contact and maintaining to information. us transparency communication, have need are so We or if free further open feel please committed you questions

participation. you thank your for So again

Operator

This call. today's concludes conference

You may now disconnect.

Rayonier Advanced Materials (RYAM) 7 Aug 242024 Q2 Earnings call transcript