Rayonier Advanced Materials (NYSE: RYAM) reported Q1 EPS of ($0.43), $0.82 worse than the analyst estimate of $0.39. Revenue for the quarter came in at $465 million versus the consensus estimate of $520.03 million.

“As expected, first quarter operating results were significantly favorable to both the prior year and sequential quarter. The primary driver was a surge in lumber prices, which is expected to continue in the second quarter before moderating later in the year. We also captured higher value from our core High Purity Cellulose business and improved margins in our Paperboard and Pulp & Newsprint segments,” said Paul Boynton, President and Chief Executive Officer. “Recently, we also announced the strategic sale of our lumber and newsprint assets to GreenFirst Forest Products for $214 million. In addition to the attractive purchase price of 6.3 times trailing 3-year reported Adjusted EBITDA we will enter into a key 20-year agreement for chip supply to our Temiscaming facility. We will use the cash proceeds to reduce debt and reinvest in growth of our core high purity cellulose business.”

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