Rayonier Advanced Materials Inc.

Good morning and welcome to the Rainier Advanced Materials Second Quarter 2020 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. 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 Rainier Advanced Materials. Thank you, Mr. Walsh. You may begin.

Thank you, Operator, and good morning, everyone. Welcome again to Rainier Advanced Materials Second Quarter 2020 Earnings Conference Call and Webcast. Joining me on today's call are Paul Boynton, our President and Chief Executive Officer, Marcus Moeltner, our Chief Financial Officer and Senior Vice President of Finance, and Frank Ruperto, our Executive Vice President of High Purity and High Yield Cellulose Businesses. Our earnings release and presentation materials were issued last evening and are available on our website at rainieram.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 slides two and three of our presentation material. Today's presentation will also reference certain non-GAAP financial measures as noted on slide four 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 17 through 20 of our presentation. Now, I'll turn the call over to Paul.

Thank you, Mickey, and good morning, everyone. Let me first start by saying how proud I am of the way the team has operated over the past six months in safely supporting our customers. Managing our complex assets in a normal environment is challenging. The global COVID pandemic has added a whole new level to this complexity, and our teams have responded admirably. Throughout the pandemic, we've kept pace with the demand for all of our products, serving as a reliable source of supply to our customers and enabling them to continue to provide uninterrupted support to their critical end markets. In product markets where we've seen demand weakness, we've been able to flex down our production to appropriate levels. In June, we successfully executed a significant planned maintenance shutdown at our Jessup facility, safely bringing in over 1,000 contractors under adherence of very strict protocols. We are planning similar maintenance outages in Fernandina and Témiscamingue in the coming months. Financially, results were pressured by the pandemic and did not meet our expectations compared to guidance, but we are seeing some signs of improvements in certain areas, which I will discuss later. Let me first provide some highlights for the second quarter as laid out on page five. Overall, we delivered $19 million of adjusted EBITDA for the quarter compared to $21 million last year. Our ongoing efforts to reduce costs helped offset pressure brought on by the COVID pandemic. We saw a significant price decline in commodity high purity cellulose products, viscose and fluffball as well as in both High Yield Pulp and New Sprint compared to prior year. Cellulose specialties and forest products volumes were impacted by reduced demand stemming from the pandemic. Corporate costs, while improved from prior year, contributed to a missing guidance primarily from non-cash charges. We generated $16 million of free cash flow in the quarter as the team did a good job of minimizing CapEx and reducing working capital. I'll now ask Marcus to go into more detail on the quarter's results, then I'll provide you with an update on key actions we're taking in response to COVID-19 and provide a perspective on our markets before opening up the call to questions. Marcus.