Rayonier Advanced Materials Inc. Q1 FY2021 Earnings Call

Good morning, and welcome to the Rayonier Advanced Materials First Quarter 2021 Earnings Conference Call. 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 for Rayonier Advanced Materials. Thank you, Mr. Walsh. You may begin.

Thank you, Operator, and good morning, everyone. Welcome again to Rayonier Advanced Materials first quarter 2021 earnings conference call and webcast. Joining me on today’s call are Paul Boynton, our President and Chief Executive Officer; and Marcus Moeltner, our Chief Financial Officer and Senior Vice President of Finance. Our earnings release and presentation materials were issued last evening and are available on our website at rayonieram.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 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 2 and 3 of our presentation materials. Today’s presentation will also reference certain non-GAAP financial measures, as noted on Slide 4 of our presentation. We believe non-GAAP 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 18 through 22 of our presentation. I’ll now turn the call over to Paul.

Thank you, Mickey. And good morning, everyone. I'm pleased to report that we generated significantly improved EBITDA in the first quarter, both compared to the prior year as well as on a sequential basis. And note, we continue to see strong momentum in all of our end-markets as we enter the second quarter. Starting on Slide 5, EBITDA improved by $64 million from prior year to $91 million, driven by a surge in lumber prices, momentum in High Purity Cellulose commodity prices, and demand for cellulose specialty products. Along with a strong EBITDA, we generated $21 million of free cash flow as we captured higher prices across all key products to overcome our typical seasonal uses of working capital as well as certain logistic constraints. Importantly, shortly after we finished the quarter in April, we announced the strategic sale of our Lumber and Newsprint assets. The sale allows the company to first capture significant value from these assets, partially due to the surge in lumber prices. Second, it allows the company to pay down debt, and third, it allows us to build upon our core high purity cellulose businesses, which we see as leveraging our key assets to create new sustainable bio-based products. We have also formally announced an exciting strategic investment in Anomera, a startup company that will be producing and marketing Carboxylated Cellulose Nanocrystals or CNC, which are fundamental natural building blocks that have widespread consumer and industrial applications. Anomera's nanocrystals are patented biodegradable products to be produced at our Temiscaming site from our cellulose specialty products. The emerging business will be supported by a recently signed distribution agreement with Croda, a global leader in sustainable high performance ingredient formulations. So now I'd like to ask Marcus to take us through the numbers for the quarter, and then I'm going to come back on and provide additional perspective on the asset sale as well as highlight some of our key opportunities to invest in growth for the company.

Thank you, Paul. Starting with High Purity Cellulose on Slide 6. First quarter sales held flat at $250 million driven by a 9% increase in sales prices offset by an 8% decline in sales volumes. As expected, CS prices were down slightly while higher commodity prices grew with a combined increase. CS sales volumes increased by a strong 6% driven by sharper demand in acetate, tire cord, and engine filtration. Commodity volume declines were driven primarily by logistic constraints, even our further segment improved $9 million to $35 million. Pricing improvements on a more favorable mix of CS and lower operating costs helped drive profitability gains. Looking forward to the second quarter, we expect commodity prices to increase further. For our CS prices are expected to remain slightly below prior year despite stronger demand as we fulfill our annual contracts. Total high purity cellulose volumes are expected to remain stable for the full year; however, we expect a more favorable mix toward cellulose specialties. Turning to Slide 7, sales in our forest product segment improved by $65 million from the first quarter of 2020, driven by a 118% price increase offset by a 3% volume decline for lumber products mainly due to logistic constraints. EBITDA for the segment increased $62 million to $63 million driven by the stronger sales pricing. As a reminder, EBITDA results improved $7 million for duties paid in the quarter. Since the start of softwood lumber duties and shipments into the U.S. in 2017, we have now paid a total of $98 million of duties and have also accrued interest of approximately $5 million. Based on the results of prior trade disputes, Canadian producers have historically recovered all or a vast majority of these duties upon resolution, and Rayon will retain the rights to these duties after the sale of the lumber business later this year. Looking forward with the continued strength in the lumber market, robust repair and remodeling, and very little incremental available new supply, we expect sale prices to remain very strong in the second quarter with higher prices likely sequentially. Our order book now extends into June. We are focused on ensuring reliable operations and capturing the benefits of these higher prices through the completion of the asset sale in the back half of the year. Turning to Slide 8, Paperboard segment sales declined $2 million driven by a 7% decline in sales volumes, while EBITDA for the segment increased by $1 million to $10 million driven by lower operating costs. Looking forward, we are seeing announced price increases stick in the market to help offset rising raw material pulp costs. Turning to our Pulp & Newsprint segment on Slide 9. Sales declined $8 million from prior year driven by a 38% decline in newsprint volumes, which primarily resulted from our decision to only operate one of our two manufacturing lines. High yield pulp volumes declined 15% due to logistic delays. Newsprint and high yield pulp prices increased 12% and 2% respectively. EBITDA for the segment held flat at a $4 million loss driven by lower sales volumes offset by the higher prices and cost reductions. Looking ahead, we expect increased prices for both Newsprint and high yield pulp while we manage through global logistic constraints, including the recent Montreal Port strike. Turning to Slide 10. On a consolidated basis, operating income improved $67 million from prior year to $55 million; significant price improvements in lumber and commodity high purity cellulose contributed to the vast majority of the increase. Volume impacts were related to the lower newsprint volumes and logistic delays while cost improvements helped offset non-cash costs in the corporate cost segment. Notably, the quarter reflects a $64 million book tax expense. There are a few key drivers of this high rate. Firstly, the company generated significant income in Canada during the quarter. Second, the company is required to recognize a double taxation for our Canadian earnings due to guilty taxes in the U.S. In Canada, NOLs are available to offset the amount and volume does not expect to pay any cash taxes. However, a smaller amount of taxes in the U.S. could be payable which will be applied against existing credit amounts. We are required to account for both of these amounts; however, we only expect to pay the smaller U.S. portion. Second, we are unable to fully utilize our interest expense deductibility to reduce our U.S. taxes, which increases our overall rate in this jurisdiction. While the book tax rate is high for this quarter, we expect to pay only a minimal amount of tax in 2021 and still receive a substantial $50 million refund in the year. Lastly, driven by the strong results and despite seasonal working capital increases, liquidity improved $53 million to $268 million, while net debt fell to just below $1 million. Along with the proceeds from the sale of lumber and newsprint, the company is well positioned to further reduce that and make the strategic investments necessary to grow the core HPC business. With that, I'd like to turn the call back over to Paul.

Hey thanks, Marcus. Turning to Page 11, as announced on April 12, we will be selling our lumber mill and newsprint facility to GreenFirst Forest Products for a purchase price of approximately $214 million, plus an additional $6 million related to a chip offset agreement. The purchase price will fluctuate based on the level of inventory delivered at closing, which we are currently assuming to be about $74 million. 85% of the purchase price will be paid in cash with the remaining 15% being paid in shares of GreenFirst, which has upside potential. It's important to note that Rayon will also retain all earnings of these businesses up until closing, which is not expected to incur until sometime in the second half of the year and is expected to provide a substantial amount of incremental value. Rayon will also retain all the rights to duties paid into the U.S. Department of Commerce up until closing, which we estimate will be around a $110 million. In total, we captured significant value for our shareholders in this transaction. As our investors know, the lumber business is very cyclical and the newsprint business is in secular decline. Just a year ago at this time, all of these assets were shut down due to lack of demand. We've stated that with an appropriate valuation, we would consider further portfolio optimization and divest the company of these businesses. Over the past three years, EBITDA has averaged $34 million for these businesses. Based on our $214 million purchase price, we're capturing an enterprise multiple of over six times through this cycle. We plan to use the proceeds from the sale of the lumber and newsprint businesses to both repay debt and invest in key strategic opportunities in our high purity cellulose business, which over time has had higher margins that investors tend to reward with a higher enterprise multiple. As such, looking forward on Slide 12, the BioFuture of Rayon will center around opportunities to leverage bio-based solutions from our four manufacturing locations in Quebec, Georgia, Florida, and France, along with our world-class R&D centers. We are a leading manufacturer of cellulose specialties across all grades, from acetate and plastics to cellulose ethers used for many food and pharmaceutical additives. We're also a producer of differentiated commodity products such as fluff, viscose, and lyocell in our environmentally friendly textile operations. Additionally, we also continue to produce a high-quality branded 3-ply paperboard and a mechanical hardwood pulp. The tailwinds supporting prices on our commodity products in strong demand for our cellulose specialties, we are well-positioned to capture value with the upswing of the market. Turning to Slide 13, we also have the ability to invest in our businesses to capture even greater value that helps smooth out the peaks and valleys of commodity markets. These investments into our BioFuture will add to our product diversity and our financial growth. After considering manufacturing processes for cellulose pulp products, we know that much more can be done with these assets. We've already invested in producing new lignin salt and each of our three softwood sulfite facilities in Florida, France, and Quebec. We've also invested in green energy projects in these facilities, including last year's new bioelectric turbine in Tartas. We are exploring opportunities for similar bioelectric investments in our Georgia facility. Other areas of exploration include our second generation bioethanol as well as biomaterials such as natural prebiotics, which we believe can further diversify revenue streams coming from our assets and drive more value for our shareholders. Looking at Page 14, as I noted at the beginning of the call, an additional investment into our BioFuture is the investment in Anomera. An entire new opportunity for growth. This investment applies a technology platform that expands our core competency of cellulose chemistry. Anomera produces the highest quality cellulose nanocrystals sustainably sourced from our Temiscaming cellulose specialties. These nanocrystals can be formed into a variety of building blocks including microbeads, a biodegradable natural alternative for plastic, cosmetic texturing powders as well as products that can enhance performance properties in cements, paints, coatings, composites, adhesives, agriculture, medicine, and life sciences. Anomera is headquartered in Montreal with a team of nearly 20 scientists and 17 patents. It is currently in the process of developing a specialty manufacturing facility on our property in Temiscaming, which can produce over 500,000 kilograms of nanocellulose per year. Since 2017, we have invested a total of $8 million in Anomera through the end of this first quarter. Rayon is the largest shareholder with a 44% voting interest and we expect to make additional investments over the next five years. We are excited about the future of Rayon. Our reputation as the market leader in cellulose specialties with differentiating commodities within fluff and viscose markets positions us well for the future. A diverse asset allows us to service all the cellulose specialties market segments, and our leading R&D platform and BioFuture investment opportunities will further broaden our presence. We have proven that we can control costs and manage cash to drive stronger liquidity and a more flexible balance sheet. Now that market conditions are in our favor, we're well on our way to capitalize and grow our business. So with that, operator, let me open up the call for questions.

Thank you. Our first question is from John Babcock with Bank of America. Please proceed with your question.

Great. Good morning and thanks for taking my questions. First I just was wondering if you might be able to quantify the impact of the volume loss, say with the freight challenges in high purity cellulose. Apologies if I've missed the part, could you just kind of go through that? That'll be helpful.

Hi, good morning John, this is Paul. Look, we said that volumes were off a bit and we didn’t quantify that out there, but we had it across the business, and I don’t think we're unique in any way. A lot of companies are facing challenges. Part of that is related to logistics and we've had the Port of Savannah actually defer a lot of product for us and everybody else who moves out of the second largest port there on the Eastern Seaboard. A lot of fog for a few days in February created a lot of backlog, so that was certainly an impact on our business. We've also had issues with trucking and the availability of truck drivers. So we've had that hit not only on our HPC business but also on our lumber and our high yield businesses as well. It's kind of across the board. We think the challenges will ease up, but we still see in the second quarter delays as well. So it may take us through to the third quarter, back half of this year to kind of get all that leveled out. And again I don’t think we're unique in that way across the industry or even outside of our industry.

Alright, John.

Okay. Oh, go ahead.

Well, John, you most likely noticed that there was back to work legislation in Canada for the Montreal Port which is a good development that speaks to Paul's comments where we should see some of that ease up.

And John, as a benchmark on the volumes, we've guided HPC volumes to be stable for the year with really an increase and benefit in the next towards cellulose specialties.

Okay. Well, that's helpful. And so, based on the commentary, I mean it sounds like you should get some of those volumes back in the second quarter. Is that kind of fair, obviously it sounds like pay channels grow continue to be a challenge. But it sounds like you're not losing these volumes, so that you sell it.

We don’t see the volumes going out of the year at all. I think we've stated we remain consistent with our comments last quarter that year-over-year, our volume should be stable. And we actually see at this point CS volume is potentially stronger than we had originally anticipated, up slightly from last year.

Okay. And then, actually on that last point there. Could you just talk about the demand trends you're seeing in commodity viscose and also cellulose specialties with focus on maybe this?

Well, I think I got your question, John. Yes, we're seeing good strong demand in a lot of our markets for the CS acetate, probably a lot of that going into acetate plastics, automotive related products that we sell. Engine filtration media, tire cord, we're also seeing it in nitrocellulose which goes into a lot of construction products and paint and coating. So some good fundamental demand. We've had a lot of conversations with our customers around this. We think some of it certainly is just catch-up on inventories they got within. But we actually see some real fundamental demand pull-through on that. So hence our thoughts for the year, the CS volumes would be up year-over-year. Ending with viscose and fluff pulp, look we're continuing to see very strong demand for those products we've been commenting on. On the market, pricing increases are out there. And you'll probably note John, that our prices have lagged and probably most people have lagged the overall market, certainly fluff pulp. The market place is up in Q1 by 10% compared to Q4 for NBSK and already in April it's pushed up about 19% to 20% relative to those Q1 prices. So we're probably a quarter behind that. So you're going to see some good strong push-up in our second quarter for both fluff pulp and viscous prices, and a majority of our product is the fluff pulp.

Okay, that's great. And then, next question I just had, and I think this is a relatively common question these days, but overall how are you thinking about the impact of inflation across your business to the whole main area?

Hey John, this is Marcus here. We're seeing signs of inflation in a couple of spots. Certainly some of the sulfur based chemicals, energy inputs such as diesel fuel, so we're starting to see signs of that, and certainly that then migrates into the logistics supply chain as well. We'll probably not see as strong as some might have thought at the beginning of the year, but we're definitely seeing signs of it coming through our business units.

Got you. And so labor inflation, I mean should we just assume that's off the standard kind of 2% to 3%?

Yes, labor is certainly more tied to the labor agreements that we have in place. So, some markets, well it's a bit of a lag on those commodities and when it comes to inflation for our business. But well you should see it coming through. We probably anticipate pretty muted inflation for the year originally. And maybe we're up kind of mid-single digits you think overall?

Yes, that'll be a good number, yes.

Alright, that's just one in. Just a last question before I turn it over. I was just wondering if you could talk about any potential impact from some of the tax proposals that will make their way through Congress.

Yes, we're keeping a sharp eye on that John. Yes, it's somewhat fluid still. There are moving parts. There is certainly the guilty taxes that have been referenced that could present some additional tax leakage. But again, we feel good about our NOL position up in Canada and in the U.S. we still have some credits to mitigate any near term impacts. But we're staying close to it.

Okay great, thanks for your help.

Thanks, John.

Thank you. Our next question is from Paul Quinn with RBC. Please proceed with your question.

Yes, thanks very much. Good morning, guys. Listen, you guys referenced the strong pulp markets that we're currently seeing. Just wondering how this sets you up for your negotiations around the high purity business and when do those negotiations start?

Hey Paul, thanks for the question. Look, we've said actually the last couple of years that those weak commodity HPC markets are not typically helpful as a backdrop to our discussions in cellulose specialties. To your question, the real gain in the strength of those commodity markets is actually, I think, a helpful backdrop. Right now we know that some of our competitors are far more advantaged to sell the commodities in this market than they are on selling cellulose specialties. And all that I think just fuels some tightness across the market. Again, which we think would be a helpful backdrop that we haven’t had for a couple of years. Those discussions usually kick off in earnest in the next couple of months and as you know kind of carry into the fall timeframe.

Okay. And then, just on the sale of the lumber businesses or the newsprint mill, you've got a 15% equity position in GreenFirst. What are the restrictions around that, what's your intention with that position?

Well, it's Marcus. Paul, the so the rollover, you're correct, can't think of 32 U.S. current exchange rates, that'd be about a 40 million rollover into GreenFirst as equity. We feel we're well-positioned to participate in the upside in the lumber market with that vehicle. The nice thing is our position on the hold is measured in six months. After that time period, we would be free to monetize it at our option.

And as we're sitting down and looking at the lumber market, I mean obviously there are record highs well above past fees. But is that something that you'd anticipate taking advantage of with just a six month holding period, or do you think this lumber market's got some length?

Yes, we'll monitor the situation closely, just like you, Paul. As Marcus mentioned, there is potential for about a 15% upside that has rolled over. We'll evaluate that and find ways to capitalize on it. We divested those assets with the intention of not being involved in that sector long-term, but we will certainly seize any short-term opportunities in the lumber market. The volumes remain strong, and all indications suggest that this strength will continue for some time. We are really excited, especially about GreenFirst products, as it's a great way for them to begin. As we pointed out, that transaction will be finalized in the latter half of this year, giving us a solid chance to capture much of the value created in 2021. Additionally, we'll be able to benefit from some of the upside with GreenFirst, and we'll make decisions accordingly at that time.

Okay. Fair enough. And then maybe just, any other portfolio changes that you're anticipating with businesses that you're currently in?

No, we feel like we've executed what we intended to. When we entered this transaction, we made it clear that we were focused on the HPC assets of Tembec. We indicated that we would evaluate opportunities over time when the market was right. We received inquiries about why not now or why not then. It's about timing and doing it when the market is strong. We believe the market is currently strong. We appreciate the additional businesses involved, particularly those linked to the paperboard and high yield pulp in Temiscaming. We plan to be long-term owners of all these assets. I think we are in a good position now. Paul, we need to leverage what we have and reinvest in them. Let's maximize their potential. That's why we're discussing the BioFuture and expanding our portfolio into sustainable bio-based products.

Great, that's all I had. Thanks very much, guys.

Thanks, Paul.

Thank you. Our next question is from Roger Spitz with Bank of America. Please proceed with your question.

Thanks very much. The $182 million the U.S. faces cash out proceeds, how much do you expect to use to repay debt and do you have a view of which debt you would go after with that?

Yes. Good morning, Roger, it's Marcus. As you know within the senior note facility that we negotiated recently, we have an option for a $150 million pay down within that credit facility. So certainly we built in that flexibility. We would see that as a natural place to allocate a pay down. But again, we'll evaluate as we get to a closing what the best option is based on where the markets are, but certainly we have that flexibility before us.

Got it. And can you disclose, I guess at some point you'll will be anyway what newsprint's Q1 '20 and Q1 '21 sales in EBITDA is so we can get our LTM's right on the pro forma?

Roger, we put a schedule in the back of the investor deck on Page 22. That sets out both for lumber and the newsprint EBITDA. Figure is here for the three-year period.

And do you expect to pay any cash taxes payable on the sale of the lumber and newsprint business?

Sorry, do we expect to pay any cash taxes on the sale of the lumber and newsprint business? I didn’t catch that.

Would they be on cash taxes, yes? Very little tax leakage. We estimated call it in the range of under $10 million, and we're fortunate to have our NOLs in Canada to help offset any leakage in Canada, and then in the U.S. we have some credits. So very little leakage is what we're expecting.

Okay. Then just a couple last ones on cash flow. The last call you expect a 2021 CapEx of $85 million to $90 million. Obviously that probably depends on the timing of the sale, but any update on that and then what 2022 CapEx might look like?

You heard Paul's comments. Right. With us refocusing the portfolio, we would then be focused on the right level of custodial capital to maintain the reliability of our HPC assets. So previously, we said $85 million to $90 million on a net basis. You saw on the first quarter we were at $20 million including some strategic capital. I would certainly see us looking in the range of a $100 million to maintain custodial CapEx.

Alright, last from me. And ignoring the $10 million tax leakage on the sale or less than tax $10 million. Last call you expect the 2021 cash tax inflow of $55 million. You made some earlier comments on cash taxes in the prepared remarks. But I'm wondering should we still think of that being good $5 million excluding the shelf tax leakage?

Yes Roger, we still envision the Cares Act refund which is $33 million, and then we'll couple that with $17 million to come in at around $50 million now. We classified a portion just based on some further audit work that's ongoing. But we still feel good about the $50 million in the back end of this year.

Thank you very much.

Thanks, Roger.

Thank you. And our final question is from Paretosh Misra with Berenberg. Please proceed with your question.

Thank you. Good morning, everyone. So starting off and maybe a follow-up on the earlier question on CS pricing for next year. I just maybe wanted to focus on the volumes because when you see this business, you have multiple customers and different contracts. So I guess there's the volumes that are coming up for renewal or price reset next year. Is there any sense you could give us as to how much volume might be up for reset as we enter 2022?

Paretosh, I don’t think we have that out there. I don’t know that that's something we want to put out there right now. Obviously, we have some of our business that comes up for renewal. I don’t think this coming period of 2022 is anything more substantial than what we've seen in the last few years. So I think it's in line. It's a pretty typical rollover type of year. We've got a lot of contracts in place for multiple years. We've got a lot of contracts in place for multiple years. And we do have a bit of volume up for discussion coming forward, but I think it's all on the range of what we've seen the last handful of years.

Got it, that's actually very useful. And then, switching to the TEMSILK opportunity. I guess, any updates in that lyocell market in recent months that's worth sharing? And longer term, if this becomes a bigger opportunity, how should we think about the pricing? Is that something that'll be priced at a premium to viscose or what kind of discussions are you having on that?

Yes. Look, that market, like most textiles, was pretty significantly impacted by COVID-19, and we saw that. We saw a lot of the lyocell assets in Asia shut down or slow down, that could even be down to probably a 50%-55% capacity there for a while period. A lot of that looks like it's coming back on nicely. It's probably behind the viscose market a bit but moving forward. Our customers in that area are still very optimistic about the five-year growth plan, and most of them are still all combined. When we put it together, we're still looking at a 300,000 to 500,000 ton type of growth opportunity out there. Obviously, we've got our sights on that, and some of our competitors do as well. We've got a really nice softwood product that feeds into that market. So we're optimistic about that business going forward. With that, we think our product will be priced at a premium, and I'd say probably most products. It takes a more specialized fiber to feed into the lyocell market than it does into the general viscose pulp market. So as we look at what capacity we have available, and this is broadly for the viscose market, and keep in mind as I already said, we’ve got a good amount available for the fluff pulp market. We would take a look at driving that TEMSILK business and then the balance would be remaining into the general viscose market. But also keep in mind that we have a softwood set of products. I know there's been some notes out there that there's more capacity coming into dissolving pulp and the viscose market; they are often in the Southern Hemisphere. Almost all of that is hardwood. We've got a nice softwood product. As that hardwood demand moves into the market, supply moves into the market, the demand for the softwood product is going to continue to be increasing and we think at a premium over that hardwood. So we think either way whether it's TEMSILK or general viscose with our softwood product, we're in a good spot to serve the market at a good price.

And do you currently have capacity to make this material? There's 300,000 tons to 500,000 tons there. How does it compare with your current viscose capacity?

So we don’t have the capacity at this time to do 300,000 tons to 500,000 tons. We're saying that's with the overall market demand looks like over the next five years. What we've talked about this product, TEMSILK, is being made in our Temiscaming facility. We have said that we could see up to and including a majority of our production in Temiscaming at some point being converted to produce a TEMSILK type product. That's kind of how we're framing it right now. Paretosh, if that helps you, that facility has the potential capacity or more than freight capacity, let's just call it 140,000 tons to 150,000 tons in that range. We could see the majority of that growing into the market for TEMSILK and lyocell.

Thanks Paul, that's very clear now. And maybe a last quick one for Marcus. The corporate cost which was I believe around $30 million in Q1, how should we think about that as we go into the second half and when this transaction closes?

Yes, Paretosh, we do have some not seasonal but lumpiness on the corporate cost side there, but think of an $11 million to $12 million a quarter on the corporate side. We would challenge ourselves to optimize our corporate costs due to the transaction. But it's not going to be a step change; it's going to be an optimization of the corner run rate.

Got it, that makes sense. Thanks guys, that's all I had.

Thank you.

Ladies and gentlemen, we have reached the end of the question and answer session. I will now turn the call over to Paul Boynton for closing remarks.

Yes. Hey, thanks everybody for your time today. With the current market tailwinds and significant opportunities we see to reinvest in our business, we're excited about the BioFuture of Rayonier Advanced Materials. So again, thank you for your time and have a good day.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. Have a great day.