Rayonier Advanced Materials (RYAM) 8 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the RYAM Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. Mickey Walsh, Treasurer and Vice President of Investor Relations. you. Thank Mr. begin. may you Walsh,

you, and Quarter to Third Welcome good Earnings Conference morning. XXXX again Call RYAM's Thank and Webcast.

today's Executive Moeltner, Joining President of Finance. and on call Lyle President De me Bloomquist, Senior and Vice Chief Chief Officer; our Marcus and Financial Officer are our

provisions Our and forward-looking the that you today's were will include presentation federal issued are to evening and of remind earnings on like our harbor to made laws. release statements safe pursuant available website materials last at securities ryam.com. I'd presentation

GAAP Our as financial materials. Today's list also differ are we release we'll presentation, as actual which well earnings statements with should these as certain Slides They presentation Slide comparable non-GAAP presentation. measures on considered XX an measures to investors, like on We noted to believe the are some may referenced presentation. I'll to our of also over GAAP reference non-GAAP through our on to SEC X materially now but A De useful information the results measures and most factors forward-looking of turn our not included directly make. be filings from Slide the to management their of call measures. non-GAAP for Lyle. reconciliation X the measures financial provide may our cause of XX alternative measures of

segments our capital an turning on start on to and will before business and overview Thank over to update quarter in strategic I then and structure with additional the Marcus financial you, provide morning. our details call liquidity. good Mickey, of the executing the the and provide priorities progress our

questions. details call come XXXX back Marcus' before and our Following on to opening initiatives up I and provide guidance will further the update,

of review Let's product Quarter decline of the year. across persistent XX% or consequence CS now of strong $XX turn pricing poor a were Results disappointing many XXXX. Slide compared categories, Third for weak Quarter the million, million were The which recognized with Third a to $XX of our results demand our to overshadowed performance in the prior EBITDA the X in to segment.

While due due market the we in do cellulose the weakness stronger full part experienced closure CS expect that have will to volumes. realization notably that in some challenges of persist. increased reduction high-purity and we cellulose specialty of the will resulting share GP shipments the prices to We fourth segment initiatives the be to due from were that and the of primarily declining high demand commodity cost our quarter stronger lower the facility. The confidence level

products remained result However, prior prices a period compared our for over value as of volume for our the as prioritizing of increase highly Cellulose year-to-date products. specialized Specialty us year strong, a to with XX%

response driven weak quarter. in business to stable, Also, year pricing majority primarily the end by an perform of segment pricing that million the for our specific continues the approximately It's lower prices the million $XX reductions million. by to saw prices, purchased to and our are shutdown improvement year from favorable from to rates weak the expected end products revising period. in in have the than and well. versus weakness. Corporate mentioning to and opportunistic quarter $X markets $X paperboard we that demand foreign Paperboard increased specialty third million lower prior we High-Yield prior adjusted period, July compared prices volumes. commodity production and market attributed this lower results prior cellulose driven sales worth have volumes our The to demand exchange markets, due guidance ongoing EBITDA cost light the EBITDA and seen decreased of took the year, In the pulp third in of reduced weakness remained impact $XXX rebounded market expenses versus Pulp less sales more resulting which a offset

keeping cash success Therefore, and $XX We working reduced million, to driven monetization, the are some our million we business guidance will lower in range later our flow to are by expenditures. free efforts increasing positive. on. $XX a better-than-expected of having I provide cash cash details capital of our flow expense capital adjusted

Turning to Slide X.

deleveraging course As our These a from next exposure. debt making balance from we mix the must due earnings. that share this the our global of if are that the fixed. We expect Not have facility minimum will through deal margins up notes us our closure through this assets. To believe next flows sales balance sheet that we pulp to GP packaging. we volatility and the sale reduction cash Foley with healthy the year. The first dealing I passive million EBITDA our to mentioned announce tailwinds is reducing low XXXX. commodity This over the market Day, second that profit we [indiscernible] realized to of sales deleveraging end, the issue our the during CapEx addressed of we also add our transaction cash significant XXXX from will be believe the in set the issue the further year. and of value we opportunity will of strong refinancing good generates in market. assets met. high-yield and achieved paperboard half that from of have our free this will this on with $XX coming a flows and strong of half make our exposure on and move a we commodities are with are we business expectations We further progress XXXX. XXXX, impact in targeting to more Also, the expect gain requirements. recognize improved reducing to front exploring will the the enjoy improvement well the $XX assets confident in that of high The sustainable be This in we challenging adviser that Investor a are that the of feel to million purity We're business. on and sheet actively accelerate working senior custodial the will will premium we sale adds

also we working customers lowest cost with -- consolidate cellulose commodity in qualify We to other quantify houses production at are high-purity which begin our viscose production product our our or variable Temiscaming, line. so to our to at Temiscaming lines, CS current CS can

realize robust biomaterials a business, solid promising plan with RYAM to be core sheet business. our balance Lastly, able a fully the of and will

initial is and plan years. $XXX EBITDA over As million to the forecasted discussed X this next during revenue phase our of recent Investor yield million the in $XX of within Day, annually

Our first plant project, in France is progressing the bioethanol well.

this end and near of in should completed XXXX. be will construction that QX commercial start expect year's production We

We are a of biomaterial also advancing couple other projects.

Florida and bio our located Georgia We second next to round. in to to are of generate on plant working permitting our electricity in engineering bioethanol be and bid the has advanced the

well All strategic achieve sets in annual RYAM EBITDA in million up in our $XXX to all, vision XXXX.

to confident are opportunities We that near-term realize us the overcome ahead. issues successfully we significant the will positioning

you financial forward. With to Marcus through to we keep over the details updated take the progress like will to us that, meeting I'd the We as for turn quarter.

CS a XXX,XXX for our lignin. markets, on decreased for million tons attributed decline of the High to favorable than Commodity energy result substantial X. primarily biomaterial specifically to by by to related construction sales our of XX% products. Sales XX%. offerings. Lyle. for decreased compared commodity with $XXX De previous The declines and decreasing due Slide higher year, decreased The the quarter segment destocking, $XX pricing prices of for for more XX% by $XX declined CS commodity CS This costs Cellulose demand, to XX% market-driven was was Starting volumes in saw mainly prices. fair sales a underscoring included volumes and Sales green in a million specialty rose Purity impact sales our commodity the you, decrease was of as customer metric prices. the reduced quarter price offset and X% million markets. Sales million. by by and due the whereas whereas for to mix XX% volumes securing Thank input in primarily or products from value sales increase weaker to reduction a commitment to demand in less to million EBITDA segment market sales our specialty to both $XX $XX drop

lower in and of sales market costs, Turning to decrease prices, to segment Slide sales sales decline the purchase weaker-than-expected saw X. and from increased Sales reduced by in in the $X million volumes million, reflecting Paperboard for X% impact partially million, volumes. X% $X by an $XX driven pulp reduction the prices offset EBITDA demand. a of segment a resulting

XX% due in volumes. and X. Sales Slide prior to Pulp sales million in drop the a and comparison reductions response prices million recorded external mainly sales by High-yield on were of negative a opportunistic the to reduction consequence weaker at conditions. XX% year, in Segment for Turning declined $XX to The to stood segment's The to the downtime $X year. million EBITDA in market taken in $X demand contrast quarter, a previous in

at inventory to net increased for of than offset from Sales in at in to $XX XXXX. a certain of for our a rates million previous million, Turning $X input an to It and ended improvements year in period of operating were costs The inventories. and $XX an Paperboard result Fernandina pace mix decreased $XXX expected million maintenance worth annual the HPC for commodities quarter the shutdown the SG&A more noting during of from was plant. at prior to Sequentially, primarily HPC increase the costs. less due increased other basis, of capital On for quarter same in prices exchange outlined XX, buildup approximately we net $XX mitigation Slide due period. On earnings by million call. our lower to $X initiatives million levels million the X. in Slide working finished Costs by cost is favorable High-Yield cost in related million. debt loss and the had reduction goods foreign improvements our consolidated debt CS compared resulted preparation Pulp. unfavorable $XX as disinflation a

million demand our and quarters. net experienced cash, the million, for is to during X.Xx, our at focus for both our executed primary quarter Paperboard for at High-Yield Our facilities, levels. intend Tartas EBITDA at Liquidity including lower $XX higher our similar aimed expectations. available the facility. quarter million have facility opportunistic at than and initial capital and $X we downtime Consequently, ABL cash debt to adjusted be under strategy XXXX X $XXX optimizing weaker attributed past million French facility. Covenant the flow $XXX downtime ended factoring our to ended of All the This we management. working increase and Pulp implement and leverage continues

committed ongoing provide are maintaining our loan XXXX covenant managing We X.Xx term and of I cushion. net debt follow. will to address slides our in test covenant maintenance additional the our facility with linked ensure to flow are compliance levels and actively plan the covenant our to that cash regarding details the to

to during free cash company assets part Day, notes to possible our debt, XXXX effort will passive our further by retire additional senior through our As of we the We be of $XX believe in the reduce our refinancing to flow outlined million positioned well and balance the objective sheet, for debt year. our lowering Investor next an the debt this of within continued and we divestiture XXXX. strengthening plan achieve in

potential confirmed these be as recently and and market proceeds that formalize sheet. a have emphasize believe the proposition our to our assets company assets the reduction offer both Houlihan process. pursue have sale sale these important if these utilized accelerate and Furthermore, balance is of best interest the our it we this with aligns and engaged our compelling would will Pulp see from stakeholders. the to valuable intention we of We High-Yield in of monetization of debt and Lokey the to deleverage explore to only It the further Any assets. value we Paperboard assets we

maintenance additional bridge a fixed To on begin, to shift the supplies. increase to discussed XX, out you our here QX. mitigation including to we'll call $XX last achieve focus let's expect The from previous related during costs, see QX lower million to which how is we revisit Now measures illustrating we primarily and quarter. Slide sets EBITDA

the and our quarter. HPC in We we benefits price product an CS XX% the in usage anticipate ship more QX improvement weighted and QX wood reduced Over chemical and of towards products and confirmed in as to also higher-margin compared book is CS are expect in plan to furthermore, the mix QX. orders from segment order

expect demand both have prices are and slightly High-Yield experience Pulp QX we lows in to market expected rebounded is from QX. And an in market to by compared is projected driven Additionally, increase Tartas as Paperboard lanes improves. and lastly, increase an their prices but in unfavorable volume shift destocking opportunistic at flat to QX volumes QX, HPC in remain to production anticipated December. production roughly mix and downtime

We focused in quarter of have guidance confidence a high X this progresses. remain achieving level as execution on and

Let's debt meet $XX as indicating million, at we available We on a below debt of approximately Slide X.Xx a add-backs net net with approximately our closed leverage X.Xx, ability QX now covenant to our to $XX on $XXX test. covenant $XXX million stands basis. million in the with normalized covenant review and how the QX, aligns EBITDA LTM shown XX. guidance have million at In our that we covenant maintained

million we $XXX Looking the million, QX, on flat ahead and guidance, net are leverage based $XXX debt of to net keeping our at X.Xx. of we targeting EBITDA covenant covenant anticipate

debt Our including achieving free addressing other of will capital. flow, capital provide the costs, components benefits. $XX several including to strategy working million $XX comprises for million mitigation cash also and million expenditures items discretionary million actions $XX to net target Ongoing $XX of

assets turn we to confidence the full meet cushion amounting call If back any fully covenant I'd the plan are actively utilizing our dedicated passive have that, potential in Additionally, to quarter, the in believe negotiating in all means available well-defined we approach like million. requirements. With to $XX $XX to manage of arise we million De monetization to place. I over a Lyle. are to upcoming have the and to problems covenant the

Marcus. you, Thank

XX, XXXX to Now let's on shift update initiatives. our our focus Slide where I'll you

higher Building guidance. efforts call, steps we've trimming in earlier, various specifically, the Marcus encountered proactive us implementing reducing took As caustic we totaling the at contractor the faced boosting led I in EBITDA our to to on power sustained have freight, nearly our impact the of while set measures now $XXX weakness freeze, wood, which earnings on a million. These reduce our across XXXX previous made reduce scaling $XX of include half sales team and hiring challenging address we're is actions This conditions the substantial mentioned services, back management overtime, productivity capitalizing discussion upon million. demand expenditures year, like markets. second also has expenses multiple and in second prices. on and market end quarter to

financials enhance to XX% the anticipate to efficiency commitment we slower to Nevertheless, process year's cost-saving will in forecasted However, in reoccur we now million a line further longer impact the to in measures the are with recognize expected, and quarter, we the savings tangible fourth than our cost-saving initiatives to our of approximate that important we by quarter. It's took the efforts of that we to XXXX end. note are believe approximately initially these $XX the due turnover measures. ongoing benefits these that witness and rate in savings to manifest of enter these in third inventory and our primarily beginning as

quarter due largely to an well expanded. Fernandina inventories cash for XXXX the we the of was flow EBITDA Although in quarter, are shutdown In increasing in offtake as markets. This flow guidance our $XX working range as decrease as less million free is facility temporary our into construction plant to capital a lower ethers a outlook for favorable, third $XX cash in preparation for free XXXX fourth $XX of witnessed we to the at million increase million. our

of million, full required. the implementing $XX and scale year production capital environment, million opportunistic our Pulp we across if aggressively net we High-Yield anticipate prepared businesses. Furthermore, We hardest total HPC financing. manage $XXX adaptability CapEx substantial QX Paperboard in inclusive current essential, for investments, by our in full is In year ] of have strategic back projection to and capital strategic the downtime inventories as we working [ benefit a CapEx, are to lowered

price are Cellulose we've for capturing prior compared on impressive Year-to-date, higher Cellulose increase XX% to achieved for Specialties We our products. an our focus year value maintaining Specialty period. the

to forward, strategic a we will across our the the of profitability Specialties, better Cellulose optimize Moving value continue prioritize to cycle. ensuring approach

Our discussions optimistic coming for and am commercial terms contract of currently discussing XXXX. the as year, we team is these about outcomes hard I working the approach

Finally, further paper I'd provide and pulp like to details our regarding businesses. viscose

products to rates loss these production sulfide sale As are prevailing discussed production estimated million fixed an in EBITDA North due our Traditionally, previous purity commodity to cost this a of to X incur lines, the significant we and year have utilization high our portion earnings in maximizing maintain American our concentrated of businesses call, of plants. sales these low high thereby for prices losses used with expected absorption. the $XX

the In offers financial evident benefits. shift. a for challenging strategy become it market strategic Consequently, like has the present, conditions that this we only need recognize marginal

initiated have of Temiscaming viscose facility. the production We our to consolidating process

specialty We completed, the remaining with customers of facilities qualifications to other production. and at grades currently our produce the facilities. are with the are backfill will cellulose viscose process these we cellulose within in qualifying our Temiscaming Once these transition Temiscaming successfully specialty grades

lower working expense other year, The EBITDA. cash to we attributable interest, of offsetting will million plan guidance. flow the cash of range. the Now free interest more increasing have monetization. our chart and let's obligations The encumber refinancing. These $XX XXXX to timing lower illustrates lower cash payments reduced adjustments largely Anticipating cash the within the waterfall than turn progress capital for is the we CapEx outflows million effectively recent related Slide while flow to EBITDA assess XX. against and our to $XXX to EBITDA million Where realize our $XX free

also that CapEx believe catch-up We sustained CapEx can we to the capital has at $XX levels into million, have be our been reduced custodial XXXX. current level. and this operating eliminated Our

we target realized confidence given likely spend to our revised going million that to reliability However, months, optimized. working million, capital couple have deferred on year-end we years our QX inventory are are to this forward. Expanding the next enhancements $XX maintain X will be benefits need in to initial during as balances of the million $XX in we realized the in further will capital $XX

Reflected miscellaneous our energy in further Furthermore, we the with for the partners understanding necessitate chart our XXXX. payments reached regarding deferred in will this France in have and customer so property includes encompasses element incorporated quarter accrued actual reconciliation We've liabilities, interest on. which as our taxes, which rebates, a figures. government not for connect items liabilities, with accrued to like category our this a guidance

discussed, As previously toward flow our free directed strategically investments strategic either allocated cash or appealing debt repayment in will be projects. we've

Turning of our net we Slide our leverage decline. XX, and the depict progress growth margin to EBITDA

we enjoy land in our year. of steady EBITDA to range, leverage which as and X% and expected XXXX, is noted, we debt a in strong the margins viscose negative Cellulose at for full average anticipate For the and Net covenant to the the businesses. margins the commodity margins in other expected segments Paperboard hold Specialties X.Xx weighted as the

we of committed target remain debt in However, ratio to drive leverage towards XXXX. our net X.Xx

in volumes that believe price half, viscose more businesses CS and results that see QX and sales by confident as quarter remained pulp pick will fourth closure I resilient demand and recent normalizing to many an CS the of in the showing our high-yield capacity. Paperboard QX. expect will The sensitive due our signs do QX increases. are fluff, than the uplift to in second up products we evidenced I'm demand for are that our stronger of has be of competitive GDP

expense outages in to $XX see to we questions. behind million please the our we as in operator, the curtailments. With lower will execute nearly million $XX and scheduled and are so improved reductions productivity that, All $XX CapEx million the now of plant open us, spending call

Markets. [Operator Instructions] Our from of line with the comes first question RBC Capital Matthew McKellar

going in last, either markets. Maybe you and any provide the give stronger demand, in ethers that first, then called maybe related weakness can are down what's markets? other market? it is and by end X% out drivers in that strength on you you looks relative to And Can are like color or color there And of in any construction other then CS call out business product you more volumes on any in weakness the anticipate QX? what on of maybe pockets mix quarter-over-quarter,

Talk good any And and ethers Most commercial in interest De the this Lyle. think market. portion little what's -- construction, Matthew, is it's the I on in is a an ethers a ends of on impact higher about seeing residential. don't markets. that our bit globally up surprise. of having really rates our both construction we're the going

continue year XXXX. we're So We it's market. not issue rest in in is going to -- weakness with through end well expectation as an the seeing to a we're that going surprise as respect of that demand into our see ethers that this to

as All a of us similar customers environment -- expect are to similar year. this our in saw we year telling next

So we're given macro soon, not counting on ethers what to bounce environment. the in back seeing we're anytime

also closure for it's improve we other to as normalizes or quarter. [ of was due markets, in that for and in that ] was the Relative competitive capacity have stronger be from had the fourth took other the relatively CS, respect most whether it, markets to to to announced would expected I commentary softer, And an in are the our demand see some as the quarter. we're customers of, noted acetates going regular they the quarter, mix to and it's of or the downtime expect than we improved outages In but acetates quarter I mentioned, that during due demand resilient. fourth because CS September. QX, part, acetates rebound taken just that maintenance saw been those With were the they call the to were really scheduled that outages, as period other because that our going to that third acetates other third our in say, in

mix in big X will the improvement drivers QX. the are in those the the that So drive

you're to like $XX it or to of assets. sounds about next, million monetize passive Maybe monetizing $XX million helpful. That's Great. looking

what think what the to portion you at confidence with components place that of value as level by your dollar your monetizing to maybe high in to getting at would around agreements granularity there? there, speak out might be level that And or a more major specific you've of be some options any I but you're year-end? give a talked now range, can least

Yes, those those assets, third Matthew. discussions With respect to passive active with on parties potential negotiations of and we're the monetization assets. in

I get what any really high cellulose to So confidence to don't to can specifics by relative going that I to trying But include ] and do into relatively we're generally want I who we're have to. talking that [ year-end. we're say assets

October. Okay. you any operational at took went and an the restart Maybe Temiscaming all purity on from downtime that impact to your cellulose the on one Pulp last in the perspective higher whether and from one. Paperboard how at at side site downtime High-Yield downtime? is comment there you Can and operations

we started start-up, the any the whether facilities past answer trouble operations line, answer that downtime Pulp Paperboard getting the -- High-Yield line bounced to impacted back. those to ran no. we down. great right is respect had facilities a up or were period the October. our on With the the whether high no. Both that's during With there was well line lines is purity to back -- respect once Yes, the question. high-purity The The got

comes Our Company. with the next & from Daniel line question of Harriman Sidoti

for quick ones you. X have Guys. I just

going the and end a year First, Foley towards also to market's mill the the of closure, bit tighten the obviously, in quite into with going XXXX.

pricing 'XX? pricing you do negotiations you with as customers a So benefit as the into CS to in boost being upside see potential go margins in segment,

XXXX. mentioned refinancing secondly, now you've Pulp wondering of the all assets 'XX? several High-Yield know Paperboard me. change committed strategy does just the XX go to the all through, at sale notes you're in in for to that if financing And times That's in that terms not your of and/or then I I'm were

which you're in Daniel, Alright negotiations respect is question CS respect our market. 'XX, other CS markets. filtration, part have the that ethers need principally of in forth But because tightens its would way. closure GP an that your casings the and that capacity and the it impact the on to only market. that material acetate, of closure with is other -- to into really the the around is going to CS, includes pricing That Foley absolutely how closure segments: any correct with and it going tighten only supplied impact note There's so I CS X to market CS to

do will that, up. will of as result mix we share we talked as So some expect believe, improved see that the tighten and earlier. And market of that gain sales that we that, a result market a we about

The other X ] Brussel Borregaard markets, different acetate. in in ethers [ and ] competitors, [

that. that some macro because seeing We pressures are on things they're seeing available aware terms same that they've got like the we're capacity a basis in of and destocking

it to are, of our going that going to other to the in closure 'XX, those So that as forecast from the we happen dynamics market. X pushing markets be you in Foley to CS going would as stated in think expect or the effect in of what's but But it's commentary way even early about we're less too have is would value.

Dan, second on question. your

you're I'm that. the sorry, the maybe, I'm second yes, to probably Oh, question, Marcus, talk sorry. right person And about yes,

Yes, we the Dan, remain next would focused refi care of our addressing next year. and take on maturity

our the any maturity with but company As sale Investor reducing are is and accelerate retirement, aligned further Day and the would that addressing key comments we for priority management. a asset mentioned, debt

Instructions]. [Operator

Tower the with of Dmitry Water Silversteyn from will question next come Our line Research.

do the going little what with on improvement, is that seeing comments the caustic in on XXXX. well the your as as see year of the playing situation. of a in you And you I raw mentioned talk out an You guess, you're about bit we pricing raw for both material Can side on the as material pricing wood side? into head and how the rest that

Dmitry. to some respect we the will we yes, improvement into QX we that expect XXXX. as see continue go seeing improvement to of input that, we are as With terms costs, into and in purchase go price the

in end pricing is modest seeing pay caustic, as 'XX change -- that we're I've be quarter the in what change of the is going to expect in in back that noted, significant caustic. note got fourth more in prepandemic. to improvements relatively biggest that at we we're paid the day, higher the we we of Some at of the a than this going year But still XXXX you to

part, I the to, prices that's -- due what going have regions So our we're to own again, by different be in a some as see which have not as impact down be paper generally large affected there. Wood wood we back the in degree But prices, within announced we normal that pulp And in industry industry. on level. operate. the it's But to been down. will due and will say the improvement would going different well closures to is been the

of to have in So Temiscaming an the U.S. Espanola here in because Domtar bring a we wood example of that going on significant fairly be in would that's impact 'XX. the closure the And pricing Canada, to and

basket then of Tartas what to expect to again, respect XXXX, flat going a in the in at a of the than thing same that lower Got in though, than consequence, well caustic, still was WestRock XXXX. And some it pricing pricing relatively And we're to there, a will note States. are closure we then we expect Charleston 'XX impact, here and be higher even prices the Foley again, the relative that. in the back with Southeast, end as the wood as be the well 'XX though the closure see do little pricing and closure of as will as have in the result finally, tighter Tartas, with impact we as day, 'XX. should that some IP expecting down, the

ongoing seeing rates Dmitry, it ocean is on the relates green to reductions good we're that item last shoots freight. container on as

another So that's item.

Fairly significant change in logistics costs.

big When this of and logistic -- closure the from business a it necessarily weeks That's picking the couple going that the some in fourth few maybe products the business volume the Should products right requalify because take negotiated infer months plant. I being these to some Georgia-Pacific for that you share product. Foley are understanding when up market switch you now the and additional not is plug-and-play a basically kind cellulose talked your quarter getting that some pricing was suppliers, anybody's or of get you for of to a of part to been because solution good problem your for couple need last everybody you you was at guidance, and qualified. a to look type qualified a about is certainly a applications has process of your years. products My or

you're XXXX? talk in realize going you business where sort the you in much process? that about terms of can in to quarter how And fourth versus incremental are of So

I to as of with CS Okay. And other consequence, start guess is already a customers we shared with GP. many the were the market, we qualified. that in

would So we customer get to the same don't hoops competitors that have into to those potential go through accounts.

very, very result the as of I So said in earlier, the the at -- as of hurdle sales in for lot a sales in volume a principal of was us. from of gain GP's that change already And the EBITDA result sales next sales as favorable closure. in mix $XX 'XX mix see consequence, QX have QX for a we're the achieve a But as the 'XX. the we're confident mix change already least lower as in million volumes a already to And that's closure. And or one -- CS quarter. increased market of favorable starting of improvements expected we'll the result drivers our booked a we've

question Understood. earlier up regards following with question. final on And then kind Dan's of pricing and to

some a Foley prices. of able that more demand to Is function Plant that that closure of up? market has people get the realizing of the Or of improving? you specialty were higher was a cellulose and mentioned the function the that pricing capacity You tightened

I'm quite to make just Can right. just got not restate that sure. question I the sure question again, you

Sure.

that price you you in X% -- business. in mentioned or specialty So cellulose gave I your think, got, increase remarks sales your

Foley terms market improved fundamentals is, side have that -- businesses of the do demand do in it question my tightened more of that other where CS up. So to plant with has or with closure the did now have capacity and the to did

versus change numbers. believe, X% prior the The in QX QX increase current pricing, the the is in I Yes.

increase to Foley not seeing doesn't in really any really or it you're business. have effect Foley yet So the of --

in the coming last the So from we or -- and the say affected change XXXX price you're due is negotiations. as new that for I increases into coming into would that of and favorable change to August year-to-year year well year prior in as business, CS our seeing just that

Okay.

rephrase question So my differently. a if bit I little

momentum your of you can the coming accelerate Is strategy of XXXX of the closure? continue out what going of we regardless just with are terms get conditions volume. emphasizing you're of and the get in opinion, market capacity the Foley because your get with pricing into industry. Foley value You've to plant strategy to to going a in your pricing gotten execute as Or over pricing that

we're we for the make we've we the we at but And in focus said the strategy same Well, volume. same, going the over going to defend is volume this value that calls, previous stay first will the to sure on time, and need our -- share. get before business,

we're So with forward 'XX. speculate in Dmitry, Pulp I middle time, to where -- for go Week, this customers respect is and at to go discussions in with week We're London pricing we'll our the right 'XX. to that. going this of for can't really with is initial fact, continue

position. a offer. Foley we're will the you I'm going So in people's respect to our But take needs to closure feel what strong we relative position from are out we going go. not negotiating them I And with do only to things where and my helps underneath to us -- tell think pretty

I Bloomquist Mr. like questions this back the CEO, and And comments. no There time. Lyle President you. over De Thank to floor are closing for would at to further turn

you proud of enhance to Please Well, of our our full team always to diligently know I RYAM profitability communication incredibly leverage. debt and will thank that we joining for I'm the today. note work our I efforts that confidence continue and again we are want us by reduce made to while have here at collective open. lines the that our

to you to any us require questions feel any reach out free one have if information. further or of So

your So again, thank you time. for

This concludes today's teleconference.

this at for may lines time. your disconnect you Thank participation. your You