Rayonier Advanced Materials Inc. (NYSE:RYAM) Q2 2016 Earnings Conference Call - Preliminary Transcript
Aug 02, 2016 • 10:00 am ET
Greetings and welcome to the Rayonier Advanced Materials Second Quarter 2016 Analyst Teleconference. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Mickey Walsh. Thank you. You may now begin.
Thank you, Rob, and good morning. This is Mickey Walsh, Treasurer and Vice President of Investor Relations. Welcome to Rayonier Advanced Materials 2016 Second Quarter Earnings Call and Webcast. Joining me on today's call are Paul Boynton, our Chairman, President and Chief Executive Officer, and Frank Ruperto, our Chief Financial Officer. Our earnings release and presentation materials were issued yesterday afternoon and are available on our website at rayonieram.com.
I would like to remind you that in today's presentation we will include forward-looking statements made pursuant to the Safe Harbor provisions of federal securities laws. Our earnings release as well as our filings with the SEC list some of the factors which may cause actual results to differ materially from the forward-looking statements we may make. They are also referenced on slide three of our presentation material. Today's presentation will also reference certain non-GAAP financial measures as noted on slide two of our presentation material. We believe non-GAAP financial measures provide useful information for management and investors. But non-GAAP measures should not be considered an alternative to GAAP measures. A reconciliation of these measures to their most directly comparable GAAP financial measures are included on pages 16 through 19 of our presentation. At this time, I would like to turn the call over to Paul for his opening remarks.
Paul G. Boynton
Thanks, Mickey. Good morning, everyone. I'll start today's call highlighting some of the achievements of the quarter before turning it over to Frank to review our financial results. Yesterday afternoon, we reported solid second quarter earnings that put us on track to meet or beat the high end of our previous full-year guidance. We've made substantial progress on our Transformation Initiative which continues to deliver lower costs, higher productivity and enhanced profitability. I'm proud of the engagement, focus and energy that our employees have demonstrated in regards to this initiative. Their efforts will allow us to improve our cost structure and position us well for the future in the cellulose specialties market. I'll comment later on the markets and key initiatives to drive stockholder value.
And with that, let me turn the call over to Frank for a review of our financials and more details on our transformation cost initiatives.
Frank A. Ruperto
Thank you, Paul. Let's look at slide four to review our financial highlights for the second quarter. Sales for the quarter totaled $214 million, 3% below second quarter 2015. The decrease was primarily driven by 5% lower CS or cellulose specialty prices which were partially offset by modestly higher CS volumes.
Sales for the first six months were $431 million, 2% below the prior-year period. The decrease was driven by 6% lower