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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

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Equity Bottom-Up

Rayonier Advanced Materials / Equity Bottom-Up

<ul><li>Strong 3Q24 beat and 2024 EBITDA guidance reiterated.</li><li>RYAM delivered 3Q24 revenue of $401MM, slightly above our $398MM estimate, with EBITDA of $51MM slightly below our $52MM estimate, with both measures exceeding Street expectations.</li><li>More importantly, despite the Jesup fire that shut down production of two specialty cellulose lines for 10 days in October, management reiterated its $205-215MM EBITDA guidance for the year, commenting during the earnings call that prior to the fire, it was considering raising its annual guidance given the strong 3Q24 performance.</li></ul>

Strong 3Q24 beat and 2024 EBITDA guidance reiterated.RYAM delivered 3Q24 revenue of $401MM, slightly above our $398MM estimate, with EBITDA of $51MM slightly below our $52MM estimate, with both measures exceeding Street expectations.More importantly, despite the Jesup fire that shut down production of two specialty cellulose lines for 10 days in October, management reiterated its $205-215MM EBITDA guidance for the year, commenting during the earnings call that prior to the fire, it was considering raising its annual guidance given the strong 3Q24 performance.

RYAM: Strong 3Q24 Results and Debt Refinancing Set the Stage for Solid 2025