Rayonier Advanced Materials Inc. (NYSE:RYAM) Q3 2019 Earnings Conference Call Transcript
Nov 05, 2019 • 09:00 am ET
Good morning and welcome to the Rayonier Advanced Materials Third Quarter 2019 Earnings Conference call. [Operator Instructions]
I would now like to turn the conference over to your host Mr. Mickey Walsh Treasurer and Vice President of Investor Relations for Rayonier Advanced Materials. Thank you. You may begin Mr. Walsh.
Thank you operator and good morning everyone, Welcome again to Rayonier Advanced Materials Third Quarter 2019 Earnings Conference Call and Webcast. Joining me on today's call are Paul Boynton our Chairman President and Chief Executive Officer; Marcus Moeltner our Chief Financial Officer and Senior Vice President of Finance and Frank Ruperto our Senior Vice President of High Purity & High Yield Cellulose Businesses. Our earnings release and presentation materials were issued last evening and are available on our website at Rainier am.com. I'd 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 with 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 two of the presentation material. Today's presentation will also reference certain non-GAAP financial measures as noted on Slide three of our presentation. 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 Slides 14 through 19 of our presentation.
I'll now turn the call over to Paul.
Paul G. Boynton
Thank you Mickey and good morning everyone, we have accomplished some key milestones since our last quarterly call and I want to provide you with an update on 2 recent announcements. First on September 30 we successfully renegotiated our senior secured credit agreement to provide a more flexible covenant package through 2021. The amendment to the agreement provides us the runway we need to navigate the ongoing challenge of the commodity markets. We believe we now have a covenant package that positions us to both execute successfully in the current market environment and position the company for long-term value creation. Secondly yesterday we announced the completion of the sale of the Matane facility for a purchase price of $175 million resulting in net proceeds to the company of approximately $150 million. This sale represents a major achievement in executing our portfolio strategy. It reduces future earnings variability by minimizing exposure to a volatile commodity pulp market. It also provides an infusion of cash to both reduce debt and enhance liquidity.
Lastly, it allows us to more narrowly focus on our core high purity cellular segments. While these two events were important, we remain focused on delivering improved results. In the third quarter we generated $35 million of adjusted EBITDA Verses $21 million in the second quarter, measured on a comparable basis. Importantly High Purity Cellulose results improved as