RAYONIER ADVANCED MATERIALS INC (RYAM) has reported 31.25 percent plunge in profit for the quarter ended Sep. 24, 2016. The company has earned $22 million, or $0.44 a share in the quarter, compared with $32 million, or $0.76 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22 million, or $0.44 a share compared with $33 million or $0.78 a share, a year ago.
Revenue during the quarter dropped 19.46 percent to $207 million from $257 million in the previous year period. Gross margin for the quarter contracted 260 basis points over the previous year period to 24.64 percent. Total expenses were 80.19 percent of quarterly revenues, up from 77.43 percent for the same period last year. That has resulted in a contraction of 276 basis points in operating margin to 19.81 percent.
Operating income for the quarter was $41 million, compared with $58 million in the previous year period.
However, the adjusted operating income for the quarter stood at $41 million compared to $60 million in the prior year period. At the same time, adjusted operating margin contracted 354 basis points in the quarter to 19.81 percent from 23.35 percent in the last year period.
"We delivered another strong quarter through great execution of our Transformation Initiative," said Paul Boynton, chairman, president and chief executive officer. "This performance is a testament to our dedication to continuous improvement over the last two years, and it gives us confidence we will exceed our 2016 guidance."
For fiscal year 2016, RAYONIER ADVANCED MATERIALS INC expects net income to be in the range of $66 million to $72 million.
Operating cash flow improvesRAYONIER ADVANCED MATERIALS has generated cash of $181 million from operating activities during the nine month period, up 19.08 percent or $29 million, when compared with the last year period. The company has spent $56 million cash to meet investing activities during the nine month period as against cash outgo of $60 million in the last year period.
Cash flow from financing activities was $94 million for the nine month period as against cash outgo of $58 million in the last year period.
Cash and cash equivalents stood at $320 million as on Sep. 24, 2016, up 218.87 percent or $219.64 million from $100.36 million on Sep. 26, 2015.
Debt comes down
RAYONIER ADVANCED MATERIALS INC has recorded a decline in total debt over the last one year. It stood at $783 million as on Sep. 24, 2016, down 12.31 percent or $109.87 million from $892.87 million on Sep. 26, 2015. Total debt was 54.56 percent of total assets as on Sep. 24, 2016, compared with 69.38 percent on Sep. 26, 2015.
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