Rayonier Advanced Materials (NYSE: RYAM) reported Q1 EPS of ($0.38), $0.04 better than the analyst estimate of ($0.42). Revenue for the quarter came in at $410 million versus the consensus estimate of $427.87 million.

First Quarter Highlights

• First quarter loss from continuing operations was $25 million, comparable to the prior year
• First quarter EBITDA was $27 million, a $17 million improvement from prior year driven by lower costs from improved reliability
• $35 million improvement on Free Cash Flow from prior year
• Maintaining solid liquidity at $145 million; well within financial debt covenant compliance
• Expect second quarter 2020 results to be well above prior year

COVID-19 Response

• Established safety protocols including working remotely, sanitizing workspaces and enhancing personal protection equipment
• Curtailing operations for products with significantly reduced demand and/or price; delaying annual maintenance outages to protect employees and operations
• Maintaining strong focus on cost reductions, streamlined capital expenditures and working capital management initiatives

“In response to the COVID-19 pandemic, we’ve taken decisive actions to ensure the safety of our employees and to protect our business by minimizing operational disruptions and mitigating the financial impact through prudent cost and capex reductions,” said Paul Boynton, Chairman, President and Chief Executive Officer. “All of our businesses and operations have been deemed essential due to the important role these products play in the food, pharmaceutical, and industrial products supply chains. We are focused on maintaining stable operations and providing security of supply to our customers during these unprecedented times.”

Market Assessment

A full year outlook for each of the Company’s segments is difficult to predict based on the current economic conditions caused by the COVID-19 pandemic and the lack of visibility around the timing and trajectory of the economic recovery. The Company is providing its best assessment of each business in this environment.

For earnings history and earnings-related data on Rayonier Advanced Materials (RYAM) click here.