☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | RYAM | New York Stock Exchange |
Large accelerated filer
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o
|
Accelerated filer |
x
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Non-accelerated filer
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o
|
Smaller reporting company |
☐
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Emerging growth company |
☐
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Item | Page | ||||||||||
Part I — Financial Information
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1. | |||||||||||
2. | |||||||||||
3. | |||||||||||
4. | |||||||||||
Part II — Other Information
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1. | |||||||||||
1A. | |||||||||||
2. | |||||||||||
6. | |||||||||||
Part I. | Financial Information |
Item 1. | Financial Statements |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | ||||||||||||||||||||
Net Sales | $ | 341,019 | $ | 324,170 | $ | 659,697 | $ | 648,645 | |||||||||||||||
Cost of Sales | (318,740) | (301,632) | (616,994) | (617,827) | |||||||||||||||||||
Gross Margin | 22,279 | 22,538 | 42,703 | 30,818 | |||||||||||||||||||
Selling, general and administrative expenses | (18,235) | (20,491) | (34,075) | (39,068) | |||||||||||||||||||
Foreign exchange gains (losses) | (2,127) | (4,591) | (2,733) | 1,158 | |||||||||||||||||||
Other operating income (expense), net | (540) | (3,617) | (4,992) | (5,235) | |||||||||||||||||||
Operating Income (Loss) | 1,377 | (6,161) | 903 | (12,327) | |||||||||||||||||||
Interest expense | (16,470) | (13,651) | (31,819) | (26,815) | |||||||||||||||||||
Interest income and other, net | (939) | (1,036) | (1,733) | (563) | |||||||||||||||||||
Other components of pension and OPEB, excluding service costs
|
(66) | (257) | 742 | (607) | |||||||||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes
|
(16,098) | (21,105) | (31,907) | (40,312) | |||||||||||||||||||
Income tax (expense) benefit (Note 16) | 24,656 | 17,600 | 24,564 | 18,819 | |||||||||||||||||||
Equity in income (loss) of equity method investment | (261) | — | (570) | — | |||||||||||||||||||
Income (Loss) from Continuing Operations | 8,297 | (3,505) | (7,913) | (21,493) | |||||||||||||||||||
Income (loss) from discontinued operations, net of taxes (Note 2) | 113,931 | (9,358) | 103,114 | (15,497) | |||||||||||||||||||
Net Income (Loss) | $ | 122,228 | $ | (12,863) | $ | 95,201 | $ | (36,990) | |||||||||||||||
Basic Earnings Per Common Share (Note 13)
|
|||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | (0.05) | $ | (0.12) | $ | (0.34) | |||||||||||||||
Income (loss) from discontinued operations | 1.79 | (0.15) | 1.62 | (0.25) | |||||||||||||||||||
Net income (loss) per common share-basic | $ | 1.92 | $ | (0.20) | $ | 1.50 | $ | (0.59) | |||||||||||||||
Diluted Earnings Per Common Share (Note 13)
|
|||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | (0.05) | $ | (0.12) | $ | (0.34) | |||||||||||||||
Income (loss) from discontinued operations | 1.76 | (0.15) | 1.62 | (0.25) | |||||||||||||||||||
Net income (loss) per common share-diluted | $ | 1.89 | $ | (0.20) | $ | 1.50 | $ | (0.59) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | ||||||||||||||||||||
Net Income (Loss) | $ | 122,228 | $ | (12,863) | $ | 95,201 | $ | (36,990) | |||||||||||||||
Other Comprehensive Income (Loss), net of tax (Note 11): | |||||||||||||||||||||||
Foreign currency translation adjustments
|
3,046 | 5,888 | (6,221) | (583) | |||||||||||||||||||
Unrealized gain (loss) on derivative instruments
|
(1,585) | 10,129 | (2,853) | (10,530) | |||||||||||||||||||
Net gain from pension and postretirement plans
|
3,363 | 2,741 | 6,664 | 9,313 | |||||||||||||||||||
Total other comprehensive income (loss) | 4,824 | 18,758 | (2,410) | (1,800) | |||||||||||||||||||
Comprehensive Income (Loss) | $ | 127,052 | $ | 5,895 | $ | 92,791 | $ | (38,790) |
June 26, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 214,739 | $ | 93,653 | |||||||
Accounts receivable, net (Note 3) | 187,882 | 179,208 | |||||||||
Inventory (Note 4) | 195,171 | 170,647 | |||||||||
Income tax receivable | 48,663 | 58,657 | |||||||||
Prepaid and other current assets | 68,504 | 58,845 | |||||||||
Assets of discontinued operations-held for sale (Note 2)
|
245,643 | 72,562 | |||||||||
Total current assets | 960,602 | 633,572 | |||||||||
Property, Plant and Equipment (net of accumulated depreciation of $1,623,146 at June 26, 2021 and $1,578,140 at December 31, 2020)
|
1,161,012 | 1,177,791 | |||||||||
Deferred Tax Assets | 342,749 | 382,959 | |||||||||
Intangible Assets, net | 34,937 | 38,441 | |||||||||
Other Assets | 149,002 | 156,399 | |||||||||
Assets of discontinued operations-held for sale (Note 2) | — | 140,703 | |||||||||
Total Assets | $ | 2,648,302 | $ | 2,529,865 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | 157,166 | $ | 156,721 | |||||||
Accrued and other current liabilities (Note 6) | 137,489 | 109,715 | |||||||||
Debt due within one year (Note 7) | 17,013 | 17,100 | |||||||||
Current environmental liabilities (Note 8) | 8,712 | 8,684 | |||||||||
Liabilities of discontinued operations-held for sale (Note 2) | 13,913 | 780 | |||||||||
Total current liabilities | 334,293 | 293,000 | |||||||||
Long-Term Debt (Note 7) | 1,063,739 | 1,066,837 | |||||||||
Long-Term Environmental Liabilities (Note 8)
|
162,384 | 162,995 | |||||||||
Pension and Other Postretirement Benefits | 246,681 | 251,391 | |||||||||
Deferred Tax Liabilities | 23,822 | 24,462 | |||||||||
Other Long-Term Liabilities | 30,542 | 24,279 | |||||||||
Liabilities of Discontinued Operations-Held for Sale (Note 2) | — | 11,814 | |||||||||
Commitments and Contingencies (Note 18) | |||||||||||
Stockholders’ Equity | |||||||||||
Common stock, 140,000,000 shares authorized at $0.01 par value, 63,737,356 and 63,359,839 issued and outstanding, as of June 26, 2021 and December 31, 2020, respectively
|
637 | 633 | |||||||||
Additional paid-in capital | 404,120 | 405,161 | |||||||||
Retained earnings | 518,129 | 422,928 | |||||||||
Accumulated other comprehensive income (loss) (Note 11) | (136,045) | (133,635) | |||||||||
Total Stockholders’ Equity | 786,841 | 695,087 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,648,302 | $ | 2,529,865 |
Six Months Ended | ||||||||||||||
June 26, 2021 | June 27, 2020 | |||||||||||||
Operating Activities | ||||||||||||||
Net income (loss) | $ | 95,201 | $ | (36,990) | ||||||||||
Loss (income) from discontinued operations | (103,114) | 15,497 | ||||||||||||
Adjustments to reconcile income (loss) from continuing operations to cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 65,728 | 67,235 | ||||||||||||
Stock-based incentive compensation expense | 317 | 5,074 | ||||||||||||
Deferred income tax expense (benefit) | (23,290) | 3,952 | ||||||||||||
Net periodic benefit cost of pension and other postretirement plans
|
5,163 | 5,762 | ||||||||||||
Unrealized loss (gain) on derivative instruments | (3,885) | 2,311 | ||||||||||||
Unrealized loss (gain) from foreign currency | 5,236 | (7,054) | ||||||||||||
Other | (145) | 270 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Receivables | (13,283) | 4,851 | ||||||||||||
Inventories | (25,231) | 1,335 | ||||||||||||
Accounts payable | 6,126 | 6,058 | ||||||||||||
Accrued liabilities | 27,555 | 12,001 | ||||||||||||
All other operating activities | 12,943 | (51,925) | ||||||||||||
Contributions to pension and other postretirement plans | (3,535) | (5,783) | ||||||||||||
Cash Provided by Operating Activities-continuing operations | 45,786 | 22,594 | ||||||||||||
Cash Provided by (Used for) Operating Activities-discontinued operations | 140,633 | (11,523) | ||||||||||||
Cash Provided by Operating Activities | 186,419 | 11,071 | ||||||||||||
Investing Activities | ||||||||||||||
Capital expenditures, net | (47,048) | (19,169) | ||||||||||||
Investment in equity method investment | (4,013) | — | ||||||||||||
Cash Used for Investing Activities-continuing operations | (51,061) | (19,169) | ||||||||||||
Cash Used for Investing Activities-discontinued operations | (5,758) | (3,428) | ||||||||||||
Cash Used for Investing Activities | (56,819) | (22,597) | ||||||||||||
Financing Activities | ||||||||||||||
Revolving credit facility and other borrowings | — | 10,561 | ||||||||||||
Repayments of revolving credit and other facilities | — | (8,000) | ||||||||||||
Repayment of long-term debt | (4,651) | (2,359) | ||||||||||||
Short-term financing, net | (1,296) | — | ||||||||||||
Common stock repurchased | (1,423) | (438) | ||||||||||||
Debt issue costs | (449) | (3,378) | ||||||||||||
Cash Used for Financing Activities | (7,819) | (3,614) | ||||||||||||
Cash and Cash Equivalents | ||||||||||||||
Change in cash and cash equivalents | 121,781 | (15,140) | ||||||||||||
Net effect of foreign exchange on cash and cash equivalents | (695) | (146) | ||||||||||||
Balance, beginning of year | 93,653 | 64,025 | ||||||||||||
Balance, end of period | $ | 214,739 | $ | 48,739 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | ||||||||||||||||||||
Net sales (a) | $ | 212,376 | $ | 72,583 | $ | 358,838 | $ | 157,916 | |||||||||||||||
Cost of sales | (86,961) | (74,907) | (169,688) | (158,057) | |||||||||||||||||||
Gross margin | 125,415 | (2,324) | 189,150 | (141) | |||||||||||||||||||
Selling, general and administrative expenses and other | (10,428) | (6,935) | (18,894) | (14,958) | |||||||||||||||||||
Operating income (loss) | 114,987 | (9,259) | 170,256 | (15,099) | |||||||||||||||||||
Interest expense (b) | (2,703) | (2,110) | (5,317) | (4,172) | |||||||||||||||||||
Other non-operating income | 368 | 604 | 713 | 1,257 | |||||||||||||||||||
Income (loss) from discontinued operations before income taxes | 112,652 | (10,765) | 165,652 | (18,014) | |||||||||||||||||||
Income tax benefit (expense) | 1,279 | 1,343 | (62,538) | 1,745 | |||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | $ | 113,931 | $ | (9,422) | $ | 103,114 | $ | (16,269) | |||||||||||||||
Gain from sale of discontinued operation, pre-tax | — | — | — | 955 | |||||||||||||||||||
Income tax benefit (expense) on gain | 64 | — | (183) | ||||||||||||||||||||
Gain from sale of discontinued operations, net of tax (c) | — | 64 | — | 772 | |||||||||||||||||||
Income (Loss) from Discontinued Operations | $ | 113,931 | $ | (9,358) | $ | 103,114 | $ | (15,497) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | ||||||||||||||||||||
Depreciation and amortization | $ | — | $ | 2,957 | $ | 3,173 | $ | 5,782 | |||||||||||||||
Capital expenditures | $ | 2,326 | $ | (187) | $ | 5,814 | $ | 3,428 |
June 26, 2021 | December 31, 2020 | ||||||||||
Inventory | $ | 92,624 | $ | 62,837 | |||||||
Prepaid and other current assets | 9,446 | 9,725 | |||||||||
Total current assets | 102,070 | 72,562 | |||||||||
Property, plant and equipment, net | 97,980 | 97,151 | |||||||||
Other assets | 45,593 | 43,552 | |||||||||
Total assets | $ | 245,643 | $ | 213,265 | |||||||
Accrued and other current liabilities | $ | 933 | $ | 780 | |||||||
Total current liabilities | 933 | 780 | |||||||||
Pension and Other Postretirement Benefits | 9,578 | 9,316 | |||||||||
Other long-term liabilities | 3,402 | 2,498 | |||||||||
Total liabilities | $ | 13,913 | $ | 12,594 |
June 26, 2021 | December 31, 2020 | ||||||||||
Accounts receivable, trade | $ | 154,417 | $ | 140,036 | |||||||
Accounts receivable, other (a) | 33,900 | 39,659 | |||||||||
Allowance for expected credit losses | (435) | (487) | |||||||||
Total accounts receivable, net | $ | 187,882 | $ | 179,208 |
June 26, 2021 | December 31, 2020 | ||||||||||
Finished goods | $ | 141,586 | $ | 119,549 | |||||||
Work-in-progress | 4,968 | 2,242 | |||||||||
Raw materials | 44,654 | 43,697 | |||||||||
Manufacturing and maintenance supplies | 3,963 | 5,159 | |||||||||
Total inventory | $ | 195,171 | $ | 170,647 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||
Operating lease expense | $ | 1,423 | $ | 1,499 | $ | 2,838 | $ | 2,991 | ||||||||||||||||||
Finance Leases | ||||||||||||||||||||||||||
Amortization of ROU assets | 87 | 81 | 173 | 161 | ||||||||||||||||||||||
Interest | 42 | 47 | 85 | 96 | ||||||||||||||||||||||
Total | $ | 1,552 | $ | 1,627 | $ | 3,096 | $ | 3,248 |
Balance Sheet Classification | June 26, 2021 | December 31, 2020 | |||||||||||||||
Right-of-use assets | Other assets | $ | 14,084 | $ | 15,847 | ||||||||||||
Lease liabilities, current | Accrued and other current liabilities | $ | 5,301 | $ | 4,886 | ||||||||||||
Lease liabilities, non-current | Other long-term liabilities | $ | 9,922 | $ | 11,974 | ||||||||||||
June 26, 2021 | |||||
Remainder of 2021 | $ | 3,024 | |||
2022 | 5,978 | ||||
2023 | 5,089 | ||||
2024 | 1,498 | ||||
2025 | 657 | ||||
Thereafter | 476 | ||||
Total minimum lease payments | $ | 16,722 | |||
Less: imputed interest | (1,499) | ||||
Present value of future minimum lease payments | $ | 15,223 |
June 26, 2021 | December 31, 2020 | ||||||||||
Accrued customer incentives and prepayments | $ | 28,769 | $ | 29,387 | |||||||
Accrued payroll and benefits | 32,509 | 21,500 | |||||||||
Accrued interest | 22,073 | 3,230 | |||||||||
Accrued income taxes | 4,996 | 5,052 | |||||||||
Accrued stumpage | 2,072 | 10,045 | |||||||||
Accrued property and other taxes | 7,941 | 3,995 | |||||||||
Other current liabilities | 39,129 | 36,506 | |||||||||
Total accrued and other current liabilities | $ | 137,489 | $ | 109,715 |
June 26, 2021 | December 31, 2020 | |||||||||||||
ABL Credit Facility due 2025, $124 million available, bearing interest 0.25% LIBOR floor plus 2.75%, interest rate of 3.00% at June 26, 2021
|
— | — | ||||||||||||
Senior Secured Notes due 2026 at a fixed interest rate of 7.625%
|
$ | 500,000 | $ | 500,000 | ||||||||||
Senior Notes due 2024 at a fixed interest rate of 5.5%
|
495,647 | 495,647 | ||||||||||||
Canadian dollar, fixed interest rate term loans with rates ranging from 5.5% to 6.86% and maturity dates ranging from July 2022 through April 2028, secured by certain assets of the Temiscaming mill
|
72,983 | 73,791 | ||||||||||||
Other loans (a) | 16,605 | 18,193 | ||||||||||||
Short-term factoring facility-France | 3,730 | 5,089 | ||||||||||||
Finance lease obligation | 2,317 | 2,489 | ||||||||||||
Total debt principal payments due | 1,091,282 | 1,095,209 | ||||||||||||
Less: Debt premium, original issue discount and issuance costs, net | (10,530) | (11,272) | ||||||||||||
Total debt | 1,080,752 | 1,083,937 | ||||||||||||
Less: Debt due within one year | (17,013) | (17,100) | ||||||||||||
Long-term debt | $ | 1,063,739 | $ | 1,066,837 | ||||||||||
(a) Primarily loans for energy projects in France.
|
Finance Lease Payments | Debt Principal Payments | |||||||||||||
Remainder of 2021 | $ | 258 | $ | 11,041 | ||||||||||
2022 | 515 | 31,082 | ||||||||||||
2023 | 515 | 10,533 | ||||||||||||
2024 | 515 | 506,100 | ||||||||||||
2025 | 515 | 10,495 | ||||||||||||
Thereafter | 472 | 519,714 | ||||||||||||
Total principal payments | $ | 2,790 | $ | 1,088,965 | ||||||||||
Less: Imputed interest
|
473 | |||||||||||||
Present value minimum finance lease payments | $ | 2,317 |
Balance, December 31, 2020 | $ | 171,679 | |||
Increase in liabilities | 1,168 | ||||
Payments | (2,165) | ||||
Foreign currency adjustments | 414 | ||||
Balance, June 26, 2021 | 171,096 | ||||
Less: Current portion | (8,712) | ||||
Long-term environmental liabilities | $ | 162,384 |
Three Months Ended June 26, 2021 | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Gain (Loss) Recognized in OCI on Derivative | Gain (Loss) Reclassified from AOCI into Income | Location on Statement of Income | |||||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | — | $ | 2,260 | Cost of sales | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | — | $ | (102) | Interest income and other, net | |||||||||||||||||||||||||||
Three Months Ended June 27, 2020 | ||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in OCI on Derivative | Gain (Loss) Reclassified from AOCI into Income | Location on Statement of Income | ||||||||||||||||||||||||||||||
Interest rate swaps
|
$ | (225) | $ | (716) | Interest expense | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | 5,914 | $ | 367 | Other operating income (expense), net | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | 3,863 | $ | (3,863) | Cost of sales | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | 2,192 | $ | 2,135 | Interest income and other, net | |||||||||||||||||||||||||||
Six Months Ended June 26, 2021 | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Gain (Loss) Recognized in OCI on Derivative | Gain (Loss) Reclassified from AOCI into Income | Location on Statement of Income | |||||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | — | $ | 4,088 | Cost of sales | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | — | $ | (202) | Interest income and other, net | |||||||||||||||||||||||||||
Six Months Ended June 27, 2020 | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Gain (Loss) Recognized in OCI on Derivative | Gain (Loss) Reclassified from AOCI into Income | Location on Statement of Income | |||||||||||||||||||||||||||||
Interest rate swaps
|
$ | (1,982) | $ | (836) | Interest expense | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | (20,618) | $ | (994) | Other operating income (expense), net | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | 3,469 | $ | (3,469) | Cost of sales | |||||||||||||||||||||||||||
Foreign exchange forward contracts
|
$ | (4,710) | $ | (4,597) | Interest income and other, net |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||||||||||
Foreign exchange forward contracts | Other operating income (expense), net | $ | — | $ | 18 | $ | — | $ | (703) | |||||||||||||||||||||||
June 26, 2021 | December 31, 2020 | |||||||||||||
Foreign exchange cash flow hedges
|
$ | (1,019) | $ | 1,834 |
June 26, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Carrying
Amount |
Fair Value |
Carrying
Amount |
Fair Value | |||||||||||||||||||||||||||||||||||||||||
Assets: | Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 214,739 | $ | 214,739 | $ | — | $ | 93,653 | $ | 93,653 | $ | — | ||||||||||||||||||||||||||||||||
Liabilities (a): | ||||||||||||||||||||||||||||||||||||||||||||
Fixed-rate long-term debt | 1,074,705 | — | 1,093,500 | 1,076,359 | — | 1,050,287 | ||||||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||
June 26, 2021 | June 27, 2020 | ||||||||||
Unrecognized components of employee benefit plans, net of tax: | |||||||||||
Balance, beginning of year
|
$ | (146,614) | $ | (126,638) | |||||||
Other comprehensive gain (loss) before reclassifications
|
— | 4,781 | |||||||||
Income tax on other comprehensive loss
|
— | (1,238) | |||||||||
Reclassifications to earnings: (a)
|
|||||||||||
Pension settlement loss | 111 | — | |||||||||
Amortization of losses
|
8,169 | 6,764 | |||||||||
Amortization of prior service costs
|
276 | 280 | |||||||||
Income tax on reclassifications
|
(1,892) | (1,274) | |||||||||
Net comprehensive gain (loss) on employee benefit plans, net of tax
|
6,664 | 9,313 | |||||||||
Balance, end of period | (139,950) | (117,325) | |||||||||
Unrealized gain (loss) on derivative instruments, net of tax: | |||||||||||
Balance, beginning of year
|
1,834 | 1,290 | |||||||||
Other comprehensive gain (loss) before reclassifications
|
— | (23,841) | |||||||||
Income tax on other comprehensive income
|
— | 5,487 | |||||||||
Reclassifications to earnings: (b)
|
|||||||||||
Interest rate contracts
|
— | 836 | |||||||||
Foreign exchange contracts
|
(3,886) | 9,060 | |||||||||
Income tax on reclassifications
|
1,033 | (2,072) | |||||||||
Net comprehensive gain (loss) on derivative instruments, net of tax
|
(2,853) | (10,530) | |||||||||
Balance, end of period | (1,019) | (9,240) | |||||||||
Foreign currency translation adjustments: | |||||||||||
Balance, beginning of year
|
11,145 | (13,879) | |||||||||
Foreign currency translation adjustment, net of tax of $0 and $0
|
(6,221) | (583) | |||||||||
Balance, end of period | 4,924 | (14,462) | |||||||||
Accumulated other comprehensive income (loss), end of quarter | $ | (136,045) | $ | (141,027) |
Common Stock | Additional Paid in Capital |
Retained
Earnings |
Accumulated Other Comprehensive Loss |
Total Stockholders’
Equity |
|||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | 63,359,839 | $ | 633 | $ | 405,161 | $ | 422,928 | $ | (133,635) | $ | 695,087 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 95,201 | — | 95,201 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
— | — | — | — | (2,410) | (2,410) | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under incentive stock plans
|
509,713 | 5 | (5) | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
— | — | 385 | — | — | 385 | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares (a) | (132,196) | (1) | (1,421) | — | — | (1,422) | |||||||||||||||||||||||||||||||||||||||||
Balance June 26, 2021 | 63,737,356 | $ | 637 | $ | 404,120 | $ | 518,129 | $ | (136,045) | $ | 786,841 | ||||||||||||||||||||||||||||||||||||
For the three months ended June 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance March 27, 2021 | 63,597,356 | $ | 636 | $ | 403,086 | $ | 395,901 | $ | (140,869) | $ | 658,754 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | 122,228 | — | 122,228 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
— | — | — | — | 4,824 | 4,824 | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under incentive stock plans
|
140,000 | 1 | (1) | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 1,038 | — | — | 1,038 | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares (a) | — | — | (3) | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||
Balance, June 26, 2021 | 63,737,356 | $ | 637 | $ | 404,120 | $ | 518,129 | $ | (136,045) | $ | 786,841 | ||||||||||||||||||||||||||||||||||||
For the six months ended June 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 | 63,136,129 | $ | 632 | $ | 399,020 | $ | 422,373 | $ | (139,227) | $ | 682,798 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (36,990) | — | (36,990) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
— | — | — | — | (1,800) | (1,800) | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under incentive stock plans
|
396,753 | 3 | (4) | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation
|
— | — | 5,157 | — | — | 5,157 | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares (a) | (185,556) | (2) | (436) | — | — | (438) | |||||||||||||||||||||||||||||||||||||||||
Balance June 27, 2020 | 63,347,326 | $ | 633 | $ | 403,737 | $ | 385,383 | $ | (141,027) | $ | 648,726 | ||||||||||||||||||||||||||||||||||||
For the three months ended June 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 28, 2020 | 63,246,867 | $ | 632 | $ | 400,525 | $ | 398,246 | $ | (159,785) | $ | 639,618 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | (12,863) | — | (12,863) | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
— | — | — | — | 18,758 | 18,758 | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under incentive stock plans
|
106,064 | 1 | (2) | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 3,214 | — | — | 3,214 | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares (a) | (5,605) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance, June 27, 2020 | 63,347,326 | $ | 633 | $ | 403,737 | $ | 385,383 | $ | (141,027) | $ | 648,726 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | ||||||||||||||||||||
Income (loss) from continuing operations | $ | 8,297 | $ | (3,505) | $ | (7,913) | $ | (21,493) | |||||||||||||||
Income (loss) from discontinued operations | 113,931 | (9,358) | 103,114 | (15,497) | |||||||||||||||||||
Net income (loss) available for common stockholders
|
$ | 122,228 | $ | (12,863) | $ | 95,201 | $ | (36,990) | |||||||||||||||
Shares used for determining basic earnings per share of common stock
|
63,654,278 | 63,235,151 | 63,545,599 | 63,111,058 | |||||||||||||||||||
Dilutive effect of: | |||||||||||||||||||||||
Stock options | — | — | — | — | |||||||||||||||||||
Performance and restricted stock | 1,159,735 | — | — | — | |||||||||||||||||||
Shares used for determining diluted earnings per share of common stock
|
64,814,013 | 63,235,151 | 63,545,599 | 63,111,058 | |||||||||||||||||||
Basic per share amounts | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | (0.05) | $ | (0.12) | $ | (0.34) | |||||||||||||||
Income (loss) from discontinued operations | 1.79 | (0.15) | 1.62 | (0.25) | |||||||||||||||||||
Net income (loss) | $ | 1.92 | $ | (0.20) | $ | 1.50 | $ | (0.59) | |||||||||||||||
Diluted per share amounts | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.13 | $ | (0.05) | $ | (0.12) | $ | (0.34) | |||||||||||||||
Income (loss) from discontinued operations | 1.76 | (0.15) | 1.62 | (0.25) | |||||||||||||||||||
Net income (loss) | $ | 1.89 | $ | (0.20) | $ | 1.50 | $ | (0.59) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | ||||||||||||||||||||
Stock options | 122,525 | 153,977 | 122,525 | 153,977 | |||||||||||||||||||
Performance and restricted stock | 655,540 | 2,691,362 | 2,286,865 | 2,691,362 | |||||||||||||||||||
Total anti-dilutive instruments | 778,065 | 2,845,339 | 2,409,390 | 2,845,339 |
Stock Options | Restricted Stock Units | Performance-Based Stock Units | |||||||||||||||||||||||||||||||||||||||||||||
Options | Weighted Average Exercise Price | Awards | Weighted Average Grant Date Fair Value | Awards | Weighted Average Grant Date Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2021 | 152,281 | $ | 38.26 | 828,955 | $ | 10.27 | 1,821,402 | $ | 8.77 | ||||||||||||||||||||||||||||||||||||||
Granted | — | — | 551,476 | 9.76 | 136,061 | 17.61 | |||||||||||||||||||||||||||||||||||||||||
Forfeited | — | — | (108,986) | 11.68 | (312,697) | 8.92 | |||||||||||||||||||||||||||||||||||||||||
Exercised or settled | — | — | (326,830) | 13.50 | (302,516) | 22.76 | |||||||||||||||||||||||||||||||||||||||||
Expired or cancelled | (29,756) | 33.39 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Outstanding at June 26, 2021 | 122,525 | $ | 39.44 | 944,615 | $ | 8.69 | 1,342,250 | $ | 6.48 |
Pension | Postretirement | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
Components of Net Periodic Benefit Cost | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
Service cost | $ | 2,600 | $ | 2,207 | $ | 363 | $ | 316 | |||||||||||||||
Interest cost | 4,446 | 5,844 | 176 | 149 | |||||||||||||||||||
Expected return on plan assets | (9,673) | (9,246) | — | — | |||||||||||||||||||
Amortization of prior service cost | 177 | 178 | (38) | (38) | |||||||||||||||||||
Amortization of losses | 4,086 | 3,427 | 2 | (57) | |||||||||||||||||||
Pension settlement loss (gain) | 890 | — | — | — | |||||||||||||||||||
Total net periodic benefit cost | $ | 2,526 | $ | 2,410 | $ | 503 | $ | 370 | |||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||||
Components of Net Periodic Benefit Cost | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
Service cost | $ | 5,181 | $ | 4,482 | $ | 725 | $ | 674 | |||||||||||||||
Interest cost | 8,851 | 11,748 | 351 | 428 | |||||||||||||||||||
Expected return on plan assets | (19,279) | (18,612) | — | — | |||||||||||||||||||
Amortization of prior service cost | 352 | 357 | (76) | (77) | |||||||||||||||||||
Amortization of losses | 8,163 | 6,854 | 6 | (91) | |||||||||||||||||||
Pension settlement loss (gain) | 890 | — | — | — | |||||||||||||||||||
Total net periodic benefit cost | $ | 4,158 | $ | 4,829 | $ | 1,006 | $ | 934 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | ||||||||||||||||||||
High Purity Cellulose | $ | 10,623 | $ | 6,721 | $ | 17,051 | $ | 1,863 | |||||||||||||||
Paperboard | 2,441 | 6,261 | 8,196 | 10,936 | |||||||||||||||||||
High-Yield Pulp | 1,079 | 570 | 538 | (476) | |||||||||||||||||||
Corporate | (12,766) | (19,713) | (24,882) | (24,650) | |||||||||||||||||||
Total operating income (loss) | $ | 1,377 | $ | (6,161) | $ | 903 | $ | (12,327) |
June 26, 2021 | December 31, 2020 | ||||||||||||||||
High Purity Cellulose | $ | 1,540,743 | $ | 1,528,929 | |||||||||||||
Paperboard | 120,125 | 129,871 | |||||||||||||||
High-Yield Pulp | 38,985 | 33,259 | |||||||||||||||
Corporate and other (a) | 702,806 | 624,541 | |||||||||||||||
Assets Held for Sale | 245,643 | 213,265 | |||||||||||||||
Total identifiable assets | $ | 2,648,302 | $ | 2,529,865 |
June 26, 2021 | June 27, 2020 | ||||||||||
Interest paid | $ | 13,394 | $ | 24,916 | |||||||
Income taxes paid (received) | $ | (21,032) | $ | 633 | |||||||
Capital assets purchased on account | $ | 15,704 | $ | 11,136 | |||||||
Assets acquired under operating leases | $ | 624 | $ | 658 | |||||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Financial Information | Three Months Ended | % | Six Months Ended | % | |||||||||||||||||||||||||||||||
(in millions, except percentages) | June 26, 2021 | June 27, 2020 | Change | June 26, 2021 | June 27, 2020 | Change | |||||||||||||||||||||||||||||
Net Sales | $ | 341 | $ | 324 | 5% | $ | 660 | $ | 649 | 2% | |||||||||||||||||||||||||
Cost of Sales | (319) | (301) | (617) | (618) | |||||||||||||||||||||||||||||||
Gross Margin | 22 | 23 | (1)% | 43 | 31 | 39% | |||||||||||||||||||||||||||||
Selling, general and administrative expenses
|
(18) | (20) | (34) | (39) | |||||||||||||||||||||||||||||||
Foreign exchange gains (losses)
|
(2) | (5) | (3) | 1 | |||||||||||||||||||||||||||||||
Other operating income (expense), net
|
(1) | (4) | (5) | (5) | |||||||||||||||||||||||||||||||
Operating Income (Loss) | 1 | (6) | 123% | 1 | (12) | 108% | |||||||||||||||||||||||||||||
Interest expense | (16) | (14) | (32) | (27) | |||||||||||||||||||||||||||||||
Interest income and other, net | (2) | (1) | (2) | (1) | |||||||||||||||||||||||||||||||
Net periodic pension and OPEB income (expense), excluding service costs | — | — | 1 | — | |||||||||||||||||||||||||||||||
Income (Loss) From Continuing Operations Before Income Taxes
|
(17) | (21) | 19% | (32) | (40) | 20% | |||||||||||||||||||||||||||||
Income tax benefit (expense) | 25 | 17 | 25 | 19 | |||||||||||||||||||||||||||||||
Equity in income (loss) of equity method investment | — | $ | — | $ | (1) | $ | — | ||||||||||||||||||||||||||||
Income (Loss) from Continuing Operations
|
$ | 8 | $ | (4) | 300% | $ | (8) | $ | (21) | 62% | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes
|
114 | (9) | 103 | (16) | |||||||||||||||||||||||||||||||
Net Income (Loss) | $ | 122 | $ | (13) | $ | 95 | $ | (37) | |||||||||||||||||||||||||||
Gross Margin % | 7 | % | 7 | % | 6 | % | 5 | % | |||||||||||||||||||||||||||
Operating Margin % | — | % | (2) | % | — | % | (2) | % | |||||||||||||||||||||||||||
Effective Tax Rate % | 153 | % | 83 | % | 77 | % | 47 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
Net sales (in millions) | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
High Purity Cellulose | $ | 255 | $ | 255 | $ | 504 | $ | 505 | |||||||||||||||
Paperboard | 57 | 43 | 105 | 94 | |||||||||||||||||||
High-Yield Pulp | 37 | 32 | 64 | 62 | |||||||||||||||||||
Eliminations | (8) | (6) | (13) | (12) | |||||||||||||||||||
Total net sales | $ | 341 | $ | 324 | $ | 660 | $ | 649 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
Operating income (loss) (in millions) | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
High Purity Cellulose | $ | 11 | $ | 7 | $ | 17 | $ | 2 | |||||||||||||||
Paperboard | 2 | 6 | 8 | 11 | |||||||||||||||||||
High-Yield Pulp | 1 | 1 | 1 | — | |||||||||||||||||||
Corporate | (13) | (20) | (25) | (25) | |||||||||||||||||||
Total operating income (loss) | $ | 1 | $ | (6) | $ | 1 | $ | (12) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in millions) | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
Net Sales | $ | 255 | $ | 255 | $ | 504 | $ | 505 | |||||||||||||||
Operating income (loss) | $ | 11 | $ | 7 | $ | 17 | $ | 2 | |||||||||||||||
Average Sales Prices ($ per metric ton): | |||||||||||||||||||||||
High Purity Cellulose | $ | 1,128 | $ | 966 | $ | 1,086 | $ | 965 | |||||||||||||||
Sales Volumes (thousands of metric tons): | |||||||||||||||||||||||
High Purity Cellulose | 204 | 245 | 421 | 480 |
Three Months Ended | Changes Attributable to: | ||||||||||||||||||||||
Net Sales (in millions)
|
June 27, 2020 | Price | Volume/Mix/Other | June 26, 2021 | |||||||||||||||||||
Total Net Sales (a) | $ | 255 | $ | 14 | $ | (14) | $ | 255 | |||||||||||||||
(a) includes other sales consisting of electricity, lignin and other by-products to third-parties. |
Six Months Ended | Changes Attributable to: | ||||||||||||||||||||||
Net Sales (in millions)
|
June 27, 2020 | Price | Volume/Mix/Other | June 26, 2021 | |||||||||||||||||||
Total Net Sales (a) | $ | 505 | $ | 19 | $ | (20) | $ | 504 | |||||||||||||||
(a) includes other sales consisting of electricity, lignin and other by-products to third-parties. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in millions) | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
Net Sales | $ | 57 | $ | 43 | $ | 105 | $ | 94 | |||||||||||||||
Operating income | $ | 2 | $ | 6 | $ | 8 | $ | 11 | |||||||||||||||
Average Sales Prices ($ per metric tons): | |||||||||||||||||||||||
Paperboard | $ | 1,150 | $ | 1,091 | $ | 1,132 | $ | 1,100 | |||||||||||||||
Sales Volumes (in thousands of metric tons): | |||||||||||||||||||||||
Paperboard | 49 | 40 | 92 | 85 |
Three Months Ended | June 27, 2020 | Changes Attributable to: | June 26, 2021 | ||||||||||||||||||||
Net Sales
(in millions)
|
Price | Volume/Mix | |||||||||||||||||||||
Paperboard | $ | 43 | $ | 3 | $ | 11 | $ | 57 |
Six Months Ended | June 27, 2020 | Changes Attributable to: | June 26, 2021 | ||||||||||||||||||||
Net Sales
(in millions)
|
Price | Volume/Mix | |||||||||||||||||||||
Paperboard | $ | 94 | $ | 3 | $ | 8 | $ | 105 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in millions) | June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
Net Sales | $ | 37 | $ | 32 | $ | 64 | $ | 62 | |||||||||||||||
Operating income (loss) | $ | 1 | $ | 1 | $ | 1 | $ | — | |||||||||||||||
Average Sales Prices ($ per metric ton): | |||||||||||||||||||||||
High-Yield Pulp (a) | $ | 539 | $ | 493 | $ | 510 | $ | 478 | |||||||||||||||
Sales Volumes (in metric tons): | |||||||||||||||||||||||
High-Yield Pulp (a) | 55 | 53 | 99 | 105 | |||||||||||||||||||
(a) Average sales prices and volumes for external sales only. For the three month period ended June 26, 2021 and June 27, 2020, the High-Yield Pulp segment sold 17,000 metric tons and 17,000 metric tons of high-yield pulp for $7 million and $6 million, respectively, to the Paperboard segment. For the six months ended June 26, 2021 and June 27, 2020, the High-Yield Pulp segment sold 34,000 metric tons and 33,000 metric tons of high-yield pulp for $14 million and $12 million, respectively, to the Paperboard segment.
|
Three Months Ended | June 27, 2020 | Changes Attributable to: | June 26, 2021 | ||||||||||||||||||||
Net Sales
(in millions)
|
Price | Volume/Mix | |||||||||||||||||||||
High-Yield Pulp Net Sales | $ | 32 | $ | 4 | $ | 1 | $ | 37 | |||||||||||||||
Six Months Ended | June 27, 2020 | Changes Attributable to: | June 26, 2021 | ||||||||||||||||||||
Net Sales
(in millions)
|
Price | Volume/Mix | |||||||||||||||||||||
High-Yield Pulp Net Sales | $ | 62 | $ | 5 | $ | (3) | $ | 64 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
Operating Income (Loss)
(in millions)
|
June 26, 2021 | June 27, 2020 | June 26, 2021 | June 27, 2020 | |||||||||||||||||||
Operating loss | $ | (13) | $ | (20) | $ | (25) | $ | (25) |
June 26, 2021 | December 31, 2020 | ||||||||||
Cash and cash equivalents (a) | $ | 215 | $ | 94 | |||||||
Availability under the ABL Credit Facility (b) | 124 | 102 | |||||||||
Total debt (c) | 1,081 | 1,084 | |||||||||
Stockholders’ equity | 787 | 695 | |||||||||
Total capitalization (total debt plus equity) | $ | 1,868 | $ | 1,779 | |||||||
Debt to capital ratio | 58 | % | 61 | % |
Cash Flows Provided by (Used for): | June 26, 2021 | June 27, 2020 | |||||||||
Operating activities-continuing operations | $ | 46 | $ | 23 | |||||||
Operating activities-discontinued operations | $ | 141 | $ | (12) | |||||||
Investing activities-continuing operations | $ | (51) | $ | (19) | |||||||
Investing activities-discontinued operations | $ | (6) | $ | (3) | |||||||
Financing activities | $ | (8) | $ | (4) |
Three Months Ended: | High Purity Cellulose | Paperboard | High-Yield Pulp | Corporate & Other | Total | ||||||||||||||||||||||||||||||
June 26, 2021 | |||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | 11 | $ | 3 | $ | 1 | $ | (7) | $ | 8 | |||||||||||||||||||||||||
Depreciation and amortization | 27 | 4 | 1 | 1 | 33 | ||||||||||||||||||||||||||||||
Interest expense, net | — | — | — | 16 | 16 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | — | — | (25) | (25) | ||||||||||||||||||||||||||||||
EBITDA from continuing operations | $ | 38 | $ | 6 | $ | 2 | $ | (15) | $ | 32 | |||||||||||||||||||||||||
Pension settlement (gain) loss | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 38 | $ | 6 | $ | 2 | $ | (14) | $ | 33 | |||||||||||||||||||||||||
June 27, 2020 | |||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | 5 | $ | 6 | $ | 1 | $ | (16) | $ | (4) | |||||||||||||||||||||||||
Depreciation and amortization | 26 | 4 | 1 | 1 | 32 | ||||||||||||||||||||||||||||||
Interest expense, net | — | — | — | 14 | 14 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | — | — | (17) | (17) | ||||||||||||||||||||||||||||||
EBITDA from continuing operations | $ | 31 | $ | 10 | $ | 2 | $ | (18) | $ | 25 | |||||||||||||||||||||||||
Six Months Ended: | High Purity Cellulose | Paperboard | High-Yield Pulp | Corporate & Other | Total | ||||||||||||||||||||||||||||||
June 26, 2021 | |||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | 18 | $ | 9 | $ | 1 | $ | (36) | $ | (8) | |||||||||||||||||||||||||
Depreciation and amortization | 55 | 8 | 1 | 2 | 66 | ||||||||||||||||||||||||||||||
Interest expense, net | — | — | — | 32 | 32 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | — | — | (25) | (25) | ||||||||||||||||||||||||||||||
EBITDA form continuing operations | $ | 73 | $ | 17 | $ | 2 | $ | (27) | $ | 65 | |||||||||||||||||||||||||
Pension settlement (gain) loss | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 73 | $ | 17 | $ | 2 | $ | (26) | $ | 66 | |||||||||||||||||||||||||
June 27, 2020 | |||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations
|
$ | — | $ | 11 | $ | — | $ | (32) | $ | (21) | |||||||||||||||||||||||||
Depreciation and amortization | 57 | 8 | 1 | 1 | 67 | ||||||||||||||||||||||||||||||
Interest expense, net | — | — | — | 27 | 27 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | — | — | (19) | (19) | ||||||||||||||||||||||||||||||
EBITDA from continuing operations | $ | 57 | $ | 19 | $ | 1 | $ | (23) | $ | 54 | |||||||||||||||||||||||||
Six Months Ended | |||||||||||
Cash Flows from Operations to Adjusted Free Cash Flows Reconciliation | June 26, 2021 | June 27, 2020 | |||||||||
Cash provided by (used for) operating activities - continuing operations | $ | 46 | $ | 23 | |||||||
Capital expenditures (a) | (43) | (15) | |||||||||
Adjusted Free Cash Flows | $ | 3 | $ | 8 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
Part II. |
Other Information
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (b) | Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (a)
|
|||||||||||||||||||
March 28 to April 1 | — | $ | — | — | $ | 60,294,000 | |||||||||||||||||
April 2 to May 29 | — | $ | — | — | $ | 60,294,000 | |||||||||||||||||
May 30 to June 26 | — | $ | — | — | $ | 60,294,000 | |||||||||||||||||
Total | — | — |
Item 6. |
Exhibits
|
Amended and Restated Certificate of Incorporation of Rayonier Advanced Materials Inc.
|
Incorporated herein by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed on June 30, 2014 | ||||||||||
Certificate of Designations of 8.00% Series A Mandatory Convertible Preferred Stock of Rayonier Advanced Materials Inc., filed with the Secretary of State of the State of Delaware and effective August 10, 2016 | Incorporated herein by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed on August 10, 2016 | ||||||||||
Amended and Restated Bylaws of Rayonier Advanced Materials Inc | Incorporated herein by reference to Exhibit 3.2 to the Registrant’s Form 8-K filed on June 30, 2014 | ||||||||||
Rayonier Advanced Materials Inc. 2021 Incentive Stock Plan*
|
Incorporated herein by reference to Appendix B to the Registrant’s Proxy Statement filed on April 2, 2021
|
||||||||||
Description of Rayonier Advanced Materials Inc. 2021 Performance Share Award Program*#
|
Filed herewith
|
||||||||||
Chief Executive Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed herewith
|
||||||||||
Chief Financial Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed herewith
|
||||||||||
Certification of Periodic Financial Reports Under Section 906 of the Sarbanes-Oxley Act of 2002
|
Furnished herewith
|
||||||||||
101 | The following financial information from our Quarterly Report on Form 10-Q for the three and six months ended June 26, 2021 formatted in Extensible Business Reporting Language (“XBRL”), includes: (i) the Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the Three and Six Months Ended June 26, 2021 and June 27, 2020; (ii) the Condensed Consolidated Balance Sheets as of June 26, 2021 and December 31, 2020; (iii) the Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 26, 2021 and June 27, 2020; and (iv) the Notes to Condensed Consolidated Financial Statements |
Filed herewith
|
|||||||||
104 |
Cover Page Interactive Data File - formatted as Inline XBRL and contained in Exhibit 101
|
Rayonier Advanced Materials Inc. | ||||||||
(Registrant) | ||||||||
By: |
/s/ MARCUS J. MOELTNER
|
|||||||
Marcus J. Moeltner
Chief Financial Officer and
Senior Vice President, Finance
(Duly Authorized Officer and Principal Financial Officer)
|
Threshold
|
Target
|
Maximum
|
|||||||||
EBITDA Margin Improvement versus 2020 Results of [**]%
|
[**]
|
[**]
|
[**]
|
||||||||
Payout Range
|
30%
|
100%
|
200%
|
Relative Performance
|
Payout
|
||||||||||
Maximum
|
75P
|
200%
|
|||||||||
Target
|
50P
|
100%
|
|||||||||
Threshold
|
25P
|
30%
|
/s/ PAUL G. BOYNTON
|
|||||
Paul G. Boynton
President and Chief Executive Officer
|
|||||
Rayonier Advanced Materials Inc. |
/s/ MARCUS J. MOELTNER
|
|||||
Marcus J. Moeltner
Chief Financial Officer and
Senior Vice President, Finance
|
|||||
Rayonier Advanced Materials Inc. |
/s/ PAUL G. BOYNTON
|
/s/ MARCUS J. MOELTNER
|
|||||||
Paul G. Boynton | Marcus J. Moeltner | |||||||
President and Chief Executive Officer
Rayonier Advanced Materials Inc. |
Chief Financial Officer and
Senior Vice President, Finance Rayonier Advanced Materials Inc. |