Rayonier Advanced Materials (RYAM) risk factors, FY2024 10-K

Macroeconomic and Industry Risks

1. 01Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by geopolitical conflicts and related impacts
2. 02The businesses we operate are highly competitive and many of them are cyclical, which may result in fluctuations in pricing and volume that can materially adversely affect our business, financial condition, results of operations and cash flows
3. 03Changes in the availability and price of raw materials and energy and continued inflationary pressure could have a material adverse effect on our business, financial condition and results of operations
4. 04We are subject to material risks associated with doing business outside of the U.S
5. 05Foreign currency exchange fluctuations may have a material adverse impact on our business, financial condition and results of operations
6. 06Restrictions on trade through tariffs, countervailing and anti-dumping duties, quotas and other trade barriers, in the U.S. and internationally, could materially adversely affect our ability to access certain markets
7. 07We are subject to risks associated with epidemics and pandemics, which could have a material adverse impact on our business, financial condition, results of operations and cash flows

Business and Operational Risks

1. 08Our ten largest customers represented a significant portion of our 2024 revenue and the loss of all or a substantial portion of our revenue from these customers could have a material adverse effect on our business
2. 09A material disruption at any of our manufacturing facilities could prevent us from meeting customer demand, reduce our sales and profitability, increase our cost of production and capital needs, or otherwise materially adversely affect our business, financial condition and results of operations
3. 10Unfavorable changes in the availability of, and prices for, wood fiber may have a material adverse impact on our business, financial condition and results of operations
4. 11Substantial capital is required to maintain our production facilities, and the cost to repair or replace equipment, as well as the associated downtime, could materially adversely affect our business
5. 12We face risks to our assets, including the potential for substantial impairment of our long-lived assets
6. 13We may be required to recognize a significant non-cash charge to earnings if our recorded deferred tax assets are deemed unrealizable
7. 14We depend on third parties for transportation services and unfavorable changes in the cost and availability of transportation could materially adversely affect our business
8. 15Failure to maintain satisfactory labor relations could have a material adverse effect on our business
9. 16We depend on attracting and retaining key personnel, the loss of whom could materially adversely affect our business
10. 17Failure to meet our customers’ needs through the development of new products or the discovery of new applications for our existing products, or our inability to protect the intellectual property underlying new products or applications, could have a material adverse impact on our business
11. 18Loss of our intellectual property and sensitive data or disruption of our manufacturing operations due to a cybersecurity incident could materially adversely impact our business
12. 19The successful execution of our biomaterials strategy is subject to a number of potential challenges and uncertainties

Regulatory and Environmental Risks

1. 20Our business is subject to extensive environmental laws, regulations and permits that may materially restrict or adversely affect how we conduct business and our financial results
2. 21The potential long-term impact of climate-related risks remain uncertain at this time
3. 22Regulatory measures to address climate change may materially restrict how we conduct business or adversely affect our financial results

Financial Risks

1. 23We may need to make significant additional cash contributions to our retirement benefit plans if investment returns on pension assets are lower than expected or interest rates decline, and/or due to changes to regulatory, accounting and actuarial requirements
2. 24We have debt obligations that could materially adversely affect our business and our ability to meet our obligations
3. 25Covenants in our debt agreements may impair our ability to operate our business
4. 26Challenges in the commercial and credit environments may materially adversely affect our future access to capital
5. 27We may require additional financing in the future to meet our capital needs or to make acquisitions, and such financing may not be available on favorable terms, if at all, and may be dilutive to existing stockholders

Common Stock and Certain Corporate Matters Risks

1. 28Our stockholders’ ownership in RYAM may be diluted
2. 29Certain provisions in our amended and restated certificate of incorporation and bylaws, as well as Delaware law, could prevent or delay an acquisition of RYAM, which could decrease the price of our common stock