SLVM Sylvamo Corporation

Sylvamo (NYSE: SLVM), the world’s paper company, is releasing second quarter 2024 earnings.

Financial Highlights – Second Quarter vs. First Quarter

• Net income of $83 million ($1.98 per diluted share) vs. $43 million ($1.02 per diluted share)
• Adjusted operating earnings1 of $83 million ($1.98 per diluted share) vs. $45 million ($1.07 per diluted share)
• Adjusted EBITDA2 of $164 million (18% margin) vs. $118 million (13% margin)
• Cash provided by operating activities of $115 million vs. $27 million
• Free cash flow3 of $62 million vs. $(33) million

Commercial and Operational Highlights – Second Quarter vs. First Quarter

• Price and mix improved by $26 million due to pulp and paper price realizations in all regions and a better mix in Latin America
• Volume increased by $8 million due to seasonally stronger demand in Latin America
• Operations and other costs improved by $10 million due primarily to solid operations and seasonally lower costs
• Planned maintenance outage expenses increased by $4 million
• Input and transportation costs decreased by $6 million, driven primarily by North America

Third Quarter Outlook

• Adjusted EBITDA of $170 million to $185 million
• Compared to the second quarter:
  • Price and mix are expected to be slightly unfavorable up to $5 million due to mix
  • Volume is projected to increase by $10 million to $15 million, driven by Latin America and North America
  • Operations and other costs are expected to increase by $10 million to $15 million due primarily to higher unabsorbed fixed costs from economic downtime
  • Input and transportation costs are projected to increase by $5 million to $10 million due to fiber in Latin America and energy in North America
  • Total planned maintenance outage expenses are expected to decrease by $28 million

Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras

In the second quarter, price and mix were favorable and input costs largely remained stable compared to last quarter. Uncoated freesheet conditions improved in the first half of the year, with year-over-year demand up in Europe and North America and down slightly in Latin America. After successfully completing our heaviest planned maintenance outage quarter of 2024, we have more than 70% of our annual planned maintenance outages behind us.

On July 31, we refinanced long-term debt to extend our debt maturity profile and take advantage of a favorable financing market. We also sent notice for the redemption of all outstanding 7% notes and will use a new term loan facility with a 2031 maturity to pay for it. Our long-term debt balance remains stable. The terms, conditions and credit spreads are generally consistent with those in place before refinancing. Our strong balance sheet provides us the flexibility to address macro conditions and downside risks while investing in high-return opportunities through the cycle.

We continue to allocate capital to generate long-term shareowner value. This year, we repurchased $30 million of our shares and have $120 million remaining on our $150 million share repurchase authorization from September 2023. Our board of directors declared a 50% dividend increase for the third quarter from $0.30 per share to $0.45 per share, which we paid July 29. This was the third dividend increase in the last two years. As of today, we have distributed $43 million through three quarterly dividends in 2024. We are committed to return at least 40% of our free cash flow to shareowners this year through share repurchases and dividends.

We continue to develop a pipeline of more than $200 million of high-return capital projects, which will allow us to grow our earnings and cash flows as we reinvest in our business in the coming years.

We are making good progress with Project Horizon, our structural cost reduction program to streamline overhead, manufacturing and supply chain costs. Before inflation, we are on target to achieve run rate savings of $110 million by the end of 2024.

1 Adjusted Operating Earnings (non-GAAP) are net income (GAAP), net of tax and net special items. Management uses this measure to focus on ongoing operations and believes it is useful to investors because it enables them to perform meaningful comparisons of past and present combined operating results. The Company believes that using this information, along with net income, provides for a more complete analysis of the results of operations. Net income is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Condensed Consolidated Statement of Operations and related notes included later in this release.

 

2 Adjusted EBITDA (non-GAAP) is net income (GAAP), net of tax, plus the sum of income taxes, net interest expense (income), depreciation, amortization and cost of timber harvested, stock-based compensation, and, when applicable for the periods reported, net special items. Management uses this measure in managing the operating performance of our business and believes that Adjusted EBITDA and Adjusted EBITDA Margin provide investors and analysts meaningful insights into our operating performance and Adjusted EBITDA is a relevant metric for the third-party debt. The Company believes that using this information, along with net income, provides for a more complete analysis of the results of its operations. Net income is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Condensed Consolidated Statement of Operations and related notes included later in this release.

 

3 Free Cash Flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operating activities. Management utilizes this measure in connection with managing our business and believes that Free Cash Flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet and service debt, and return cash to shareowners. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. Free Cash Flow also enables investors to perform meaningful comparisons between past and present periods.

Select Financial Measures

 

(In millions)

Second Quarter 2024

 

First Quarter 2024

 

Second Quarter 2023

Net Sales

$

933

 

$

905

 

 

$

919

Net Income

 

83

 

 

43

 

 

 

49

Business Segment Operating Profit

 

122

 

 

72

 

 

 

82

Adjusted Operating Earnings

 

83

 

 

45

 

 

 

49

Adjusted EBITDA

 

164

 

 

118

 

 

 

124

Cash Provided By Operating Activities

 

115

 

 

27

 

 

 

77

Free Cash Flow

 

62

 

 

(33

)

 

 

33

Segment Information

Sylvamo uses business segment operating profit to measure the earnings performance of its businesses and is calculated as set forth in footnote (e) under the "Sales and Earnings by Business Segment" table (page 7). Second quarter 2024 net sales by business segment and operating profit by business segment compared with the first quarter of 2024 and the second quarter of 2023 are as follows:

Business Segment Results

 

(In millions)

Second Quarter 2024

 

First Quarter 2024

 

Second Quarter 2023

Net Sales by Business Segment

 

 

 

 

 

Europe

$

206

 

 

$

207

 

 

$

210

 

Latin America

 

245

 

 

 

216

 

 

 

250

 

North America

 

493

 

 

 

490

 

 

 

474

 

Inter-segment Sales

 

(11

)

 

 

(8

)

 

 

(15

)

Net Sales

$

933

 

 

$

905

 

 

$

919

 

Operating Profit by Business Segment

 

 

 

 

 

Europe

$

8

 

 

$

(4

)

 

$

(11

)

Latin America

 

37

 

 

 

14

 

 

 

48

 

North America

 

77

 

 

 

62

 

 

 

45

 

Business Segment Operating Profit

$

122

 

 

$

72

 

 

$

82

 

Operating profits in the second quarter of 2024:

Europe - $8 million compared with $(4) million in the first quarter of 2024. Earnings were higher due to higher price and mix and lower operating and input costs which more than offset higher unabsorbed costs due to economic downtime.

Latin America - $37 million compared with $14 million in the first quarter of 2024. Earnings were higher due to higher price and mix, higher volumes, lower operating costs and lower planned maintenance outages which more than offset higher input costs.

North America - $77 million compared with $62 million in the first quarter of 2024. Earnings were higher due to higher price and mix and lower operating and input costs which more than offset higher planned maintenance outages.

Effective Tax Rate

The reported effective tax rate for the second quarter of 2024 was 27%, compared to 28% for the first quarter of 2024. The higher rate for the first quarter was due to the mix of earnings in our regions.

Excluding net special items, the effective tax rate for the second quarter of 2024 was 27%, compared with 28% for the first quarter of 2024.

The effective tax rate excluding net special items is a non-GAAP financial measure and is calculated by adjusting the income tax provision and rate to exclude the tax effect at the applicable statutory rate of net special items. Management believes that this presentation provides useful information to investors by providing a more meaningful comparison of the income tax rate between past and present periods.

Effects of Net Special Items

Net special items in the second quarter of 2024 amounted to a net after-tax charge of $0 million ($0.00 per diluted share), compared with a net after-tax charge of $2 million ($0.05 per diluted share) in the first quarter of 2024.

Earnings Webcast

The company will host an audio webcast at 10 a.m. EDT / 9 a.m. CDT. All interested parties are invited to listen at investors.sylvamo.com.

Parties who wish to participate should call +1-844-867-6169 (U.S.) or +1-409-207-6975 (international) and use access code 4990882. Participants should call in no later than 9:45 a.m. EDT / 8:45 a.m. CDT.

Replays are available at investors.sylvamo.com for one year and by phone for 90 days, beginning at approximately 2 p.m. EDT / 1 p.m. CDT the day of the call. To listen to the replay by phone, call +1-866-207-1041 (U.S.) or +1-402-970-0847 (international) and use access code 8081310.

About Sylvamo

Sylvamo Corporation (NYSE: SLVM) is the world's paper company with mills in Europe, Latin America and North America. Our vision is to be the employer, supplier and investment of choice. We transform renewable resources into papers that people depend on for education, communication and entertainment. Headquartered in Memphis, Tennessee, we employ more than 6,500 colleagues. Net sales for 2023 were $3.7 billion. For more information, please visit Sylvamo.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the information under the headings "Third Quarter Outlook" and "Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras." Any or all forward-looking statements may turn out to be incorrect, and our actual actions and results could differ materially from what they express or imply, because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. These risks, uncertainties, and other factors include those disclosed in the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2023, filed with the U.S. Securities and Exchange Commission (SEC) and in our subsequent filings with the SEC, available on our website, Sylvamo.com. These forward-looking statements reflect our current expectations, and we undertake no obligation to publicly update any forward-looking statements, whether because of new information, future events or otherwise.

SYLVAMO CORPORATION

Condensed Consolidated Statement of Operations

Preliminary and Unaudited

(In millions, except per share amounts)

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Net Sales

$

933

 

$

919

 

$

905

 

$

1,838

 

$

1,860

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

Cost of products sold

 

684

(a)

 

721

 

 

716

(c)

 

1,400

 

 

1,390

(e)

Selling and administrative expenses

 

82

(b)

 

76

 

 

74

(d)

 

156

(b)

 

159

(f)

Depreciation, amortization and cost of timber harvested

 

37

 

 

34

 

 

39

 

 

76

 

 

69

 

Taxes other than payroll and income taxes

 

8

 

 

6

 

 

7

 

 

15

 

 

12

 

Interest expense (income), net

 

9

 

 

12

 

 

9

 

 

18

 

 

19

(g)

Income Before Income Taxes

 

113

 

 

70

 

 

60

 

 

173

 

 

211

 

Income tax provision

 

30

 

 

21

 

 

17

 

 

47

 

 

65

 

Net Income

$

83

 

$

49

 

$

43

 

$

126

 

$

146

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

Basic

$

2.02

 

$

1.16

 

$

1.04

 

$

3.06

 

$

3.44

 

Diluted

$

1.98

 

$

1.14

 

$

1.02

 

$

3.00

 

$

3.40

 

Average Shares of Common Stock Outstanding - Diluted

 

42

 

 

43

 

 

42

 

 

42

 

 

43

 

The accompanying notes are an integral part of this condensed consolidated statement of operations.

  Three Months and Six Months Ended June 30, 2024

 

(a)

Includes pre-tax gain of $1 million ($1 million after taxes) for the three months ended June 30, 2024, to adjust the recognition of a foreign value-added tax refund in Brazil.

 

(b)

Includes pre-tax loss of $1 million ($1 million after taxes) for the three and six months ended June 30, 2024, for certain severance costs related to our salaried workforce and a pre-tax loss of $2 million ($1 million after taxes) for the six months ended June 30, 2024, for integration costs related to the Nym�lla acquisition.

  Three Months Ended March 31, 2024

 

(c)

Includes pre-tax loss of $1 million ($1 million after taxes) for other charges.

 

(d)

Includes pre-tax loss of $2 million ($1 million after taxes) for integration costs related to the Nym�lla acquisition.

 

Six Months Ended June 30, 2023

 

(e)

Includes incremental expense of $9 million ($7 million after taxes) related to the impact of the step-up of acquired Nym�lla inventory sold during the first quarter.

 

(f)

Includes a pre-tax loss of $4 million ($3 million after taxes) for transaction costs related to the Nym�lla acquisition and a pre-tax loss of $4 million ($3 million after taxes) for professional and legal fees related to negotiations resulting in a shareholder cooperation agreement.

 

(g)

Includes $9 million ($6 million after taxes) of interest income related to tax settlements and a pre-tax loss of $5 million ($4 million after taxes) related to debt extinguishment costs.

SYLVAMO CORPORATION

Reconciliation of Net Income to Adjusted Operating Earnings

Preliminary and Unaudited

(In millions, except per share amounts)

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Net Income

$

83

 

$

49

 

$

43

 

$

126

 

$

146

 

Add back: Net special items expense (income)

 

—

 

 

—

 

 

2

 

 

2

 

 

11

 

Adjusted Operating Earnings

$

83

 

$

49

 

$

45

 

$

128

 

$

157

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

2024

 

 

2023

 

Diluted Earnings Per Common Share as Reported

$

1.98

 

$

1.14

 

$

1.02

 

$

3.00

 

$

3.40

 

Add back: Net special items expense (income)

 

—

 

 

—

 

 

0.05

 

 

0.05

 

 

0.25

 

Adjusted Operating Earnings Per Share

$

1.98

 

$

1.14

 

$

1.07

 

$

3.05

 

$

3.65

 

SYLVAMO CORPORATION

Sales and Earnings by Business Segment

Preliminary and Unaudited

(In millions)

 

Net Sales by Business Segment

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

 

Europe

$

206

 

 

$

210

 

 

$

207

 

 

$

413

 

 

$

440

 

 

Latin America

 

245

 

 

 

250

 

 

 

216

 

 

 

461

 

 

 

472

 

 

North America

 

493

 

 

 

474

 

 

 

490

 

 

 

983

 

 

 

979

 

 

Inter-segment Sales

 

(11

)

 

 

(15

)

 

 

(8

)

 

 

(19

)

 

 

(31

)

 

Net Sales

$

933

 

 

$

919

 

 

$

905

 

 

$

1,838

 

 

$

1,860

 

 

Operating Profit by Business Segment

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

 

2024

 

 

2023

 

Europe

$

8

 

$

(11

)

 

$

(4

)

 

$

4

 

$

12

 

Latin America

 

37

 

 

48

 

 

 

14

 

 

 

51

 

 

94

 

North America

 

77

 

 

45

 

 

 

62

 

 

 

139

 

 

142

 

Business Segment Operating Profit

$

122

 

$

82

 

 

$

72

 

 

$

194

 

$

248

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

$

113

 

$

70

 

 

$

60

 

 

$

173

 

$

211

 

Interest expense (income), net

 

9

 

 

12

 

 

 

9

 

 

 

18

 

 

19

(c)

Net special items expense (income)

 

—

(a)

 

—

 

 

 

3

 

(b)

 

3

(a)

 

18

(d)

Business Segment Operating Profit (e)

$

122

 

$

82

 

 

$

72

 

 

$

194

 

$

248

 

Three and Six Months Ended June 30, 2024

 

(a)

Includes pre-tax loss of $1 million ($1 million after taxes) for the three and six months ended June 30, 2024, for certain severance costs related to our salaried workforce and a pre-tax loss of $2 million ($1 million after taxes) for the six months ended June 30, 2024, for integration costs related to the Nym�lla acquisition. Also includes pre-tax gain of $1 million ($1 million after taxes) for the three months ended June 30, 2024, to adjust the recognition of a foreign value-added tax refund in Brazil.

 

Three Months Ended March 31, 2024

 

(b)

Includes pre-tax loss of $2 million ($1 million after taxes) for integration costs related to the Nym�lla acquisition and pre-tax loss of $1 million ($1 million after taxes) for other charges.

 

Six Months Ended June 30, 2023

 

(c)

Includes $9 million ($6 million after taxes) of interest income related to tax settlements and a pre-tax loss of $5 million ($4 million after taxes) related to debt extinguishment costs.

 

(d)

Includes pre-tax loss of $4 million ($3 million after taxes) for integration costs related to the Nym�lla acquisition, a pre-tax loss of $4 million ($3 million after taxes) for professional and legal fees related to negotiations resulting in a shareholder cooperation agreement and incremental expense of $9 million ($7 million after taxes) related to the impact of the step-up of acquired Nym�lla inventory sold during the first quarter.

 

(e)

As set forth in the chart above, business segment operating profit is defined as income before income taxes, but excluding net interest expense (income) and net special items. Business segment operating profit is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments.

Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin

Preliminary and Unaudited

(In millions)

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended

 

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

 

Net Income

$

83

 

 

$

49

 

 

$

43

 

 

$

126

 

 

$

146

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

30

 

 

 

21

 

 

 

17

 

 

 

47

 

 

 

65

 

 

Interest expense (income), net

 

9

 

 

 

12

 

 

 

9

 

 

 

18

 

 

 

19

 

 

Depreciation, amortization and cost of timber harvested

 

37

 

 

 

34

 

 

 

39

 

 

 

76

 

 

 

69

 

 

Stock-based compensation

 

5

 

 

 

8

 

 

 

7

 

 

 

12

 

 

 

15

 

 

Net special items expense (income)

 

—

 

 

 

—

 

 

 

3

 

 

 

3

 

 

 

18

 

 

Adjusted EBITDA

$

164

 

 

$

124

 

 

$

118

 

 

$

282

 

 

$

332

 

 

Net Sales

$

933

 

 

$

919

 

 

$

905

 

 

$

1,838

 

 

$

1,860

 

 

Adjusted EBITDA Margin

 

17.6

%

 

 

13.5

%

 

 

13.0

%

 

 

15.3

%

 

 

17.8

%

 

Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Europe

$

17

 

 

$

(3

)

 

$

5

 

 

$

22

 

 

$

28

 

 

Latin America

 

55

 

 

 

67

 

 

 

34

 

 

 

89

 

 

 

130

 

 

North America

 

92

 

 

 

60

 

 

 

79

 

 

 

171

 

 

 

174

 

 

Total Business Segment Adjusted EBITDA

$

164

 

 

$

124

 

 

$

118

 

 

$

282

 

 

$

332

 

 

Net Sales (excluding inter-segment sales eliminations)

 

 

 

 

 

 

 

 

 

 

Europe

$

206

 

 

$

210

 

 

$

207

 

 

$

413

 

 

$

440

 

 

Latin America

 

245

 

 

 

250

 

 

 

216

 

 

 

461

 

 

 

472

 

 

North America

 

493

 

 

 

474

 

 

 

490

 

 

 

983

 

 

 

979

 

 

Total Business Segment Net Sales

$

944

 

 

$

934

 

 

$

913

 

 

$

1,857

 

 

$

1,891

 

 

Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 

Europe

 

8

%

 

 

(1

)%

 

 

2

%

 

 

5

%

 

 

6

%

 

Latin America

 

22

%

 

 

27

%

 

 

16

%

 

 

19

%

 

 

28

%

 

North America

 

19

%

 

 

13

%

 

 

16

%

 

 

17

%

 

 

18

%

 

SYLVAMO CORPORATION

Condensed Consolidated Balance Sheet

Preliminary and Unaudited

(In millions)

 

 

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Current Assets

 

 

 

Cash and temporary investments

$

145

 

 

$

220

 

Restricted cash

 

60

 

 

 

60

 

Accounts and notes receivable, net

 

411

 

 

 

428

 

Contract assets

 

32

 

 

 

27

 

Inventories

 

412

 

 

 

404

 

Other current assets

 

40

 

 

 

54

 

Total Current Assets

 

1,100

 

 

 

1,193

 

Plants, Properties and Equipment, Net

 

955

 

 

 

1,002

 

Forestlands

 

346

 

 

 

364

 

Goodwill

 

121

 

 

 

139

 

Right of Use Assets

 

59

 

 

 

58

 

Deferred Charges and Other Assets

 

110

 

 

 

116

 

Total Assets

$

2,691

 

 

$

2,872

 

Liabilities and Equity

 

 

 

Current Liabilities

 

 

 

Accounts payable

$

389

 

 

$

421

 

Notes payable and current maturities of long-term debt

 

28

 

 

 

28

 

Accrued payroll and benefits

 

65

 

 

 

63

 

Other current liabilities

 

172

 

 

 

183

 

Total Current Liabilities

 

654

 

 

 

695

 

Long-Term Debt

 

894

 

 

 

931

 

Deferred Income Taxes

 

162

 

 

 

189

 

Other Liabilities

 

151

 

 

 

156

 

Equity

 

 

 

Common stock, $1 par value, 200.0 shares authorized, 44.9 shares and 44.5 shares issued and 41.0 shares and 41.2 shares outstanding at June 30, 2024 and December 31, 2023, respectively

 

45

 

 

 

45

 

Paid-In Capital

 

60

 

 

 

48

 

Retained Earnings

 

2,317

 

 

 

2,222

 

Accumulated Other Comprehensive Loss

 

(1,397

)

 

 

(1,256

)

 

 

1,025

 

 

 

1,059

 

Less: Common stock held in treasury, at cost, 3.9 shares and 3.3 shares at June 30, 2024 and December 31, 2023, respectively

 

(195

)

 

 

(158

)

Total Equity

 

830

 

 

 

901

 

Total Liabilities and Equity

$

2,691

 

 

$

2,872

 

Condensed Consolidated Statement of Cash Flows

Preliminary and Unaudited

(In millions)

 

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

Operating Activities

 

 

 

Net income

$

126

 

 

$

146

 

Depreciation, amortization, and cost of timber harvested

 

76

 

 

 

69

 

Deferred income tax provision (benefit), net

 

—

 

 

 

4

 

Stock-based compensation

 

12

 

 

 

15

 

Changes in operating assets and liabilities and other

 

 

 

Accounts and notes receivable

 

(7

)

 

 

91

 

Inventories

 

(20

)

 

 

(60

)

Accounts payable and accrued liabilities

 

(26

)

 

 

(147

)

Other

 

(19

)

 

 

22

 

Cash Provided By Operating Activities

 

142

 

 

 

140

 

Investment Activities

 

 

 

Invested in capital projects

 

(113

)

 

 

(105

)

Acquisition of business, net of cash acquired

 

—

 

 

 

(167

)

Cash Provided By (Used for) Investment Activities

 

(113

)

 

 

(272

)

Financing Activities

 

 

 

Dividends paid

 

(25

)

 

 

(21

)

Issuance of debt

 

16

 

 

 

437

 

Reduction of debt

 

(54

)

 

 

(443

)

Repurchases of common stock

 

(30

)

 

 

(40

)

Other

 

(2

)

 

 

(6

)

Cash Provided By (Used for) Financing Activities

 

(95

)

 

 

(73

)

Effect of Exchange Rate Changes on Cash

 

(9

)

 

 

9

 

Change in Cash, Temporary Investments and Restricted Cash

 

(75

)

 

 

(196

)

Cash, Temporary Investments and Restricted Cash

 

 

 

Beginning of the period

 

280

 

 

 

360

 

End of the period

$

205

 

 

$

164

 

SYLVAMO CORPORATION

Reconciliation of Cash Provided by Operations to Free Cash Flow

Preliminary and Unaudited

(In millions)

 

 

Three Months Ended June 30,

 

Three Months Ended March 31, 2024

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

 

2024

 

 

 

2023

 

 

Cash Provided By Operating Activities

$

115

 

 

$

77

 

 

$

27

 

 

$

142

 

 

$

140

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Cash invested in capital projects

 

(53

)

 

 

(44

)

 

 

(60

)

 

 

(113

)

 

 

(105

)

 

Free Cash Flow

$

62

 

 

$

33

 

 

$

(33

)

 

$

29

 

 

$

35

 

 

SYLVAMO CORPORATION

Reconciliation of Net Income to Adjusted EBITDA - Third Quarter 2024 Outlook

Estimates

(In millions)

 

 

Three Months Ended September 30, 2024

 

Net Income

$84 - $94

Adjustments:

 

Income tax provision

33 - 38

Interest expense (income), net

10

Depreciation, amortization and cost of timber harvested

37

Stock-based compensation

6

Adjusted EBITDA

$170 - $185

 

The non-GAAP financial measures presented in this release have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this release may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as Sylvamo.

 

Management believes certain non-U.S. GAAP financial measures, when used in conjunction with information presented in accordance with U.S. GAAP, can facilitate a better understanding of the impact of various factors and trends on the Company’s financial condition and results of operations. Management also uses these non-U.S. GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240809181404/en/

Investor Contact: Hans Bjorkman, 901-519-8030, hans.bjorkman@sylvamo.com Media Contact: Adam Ghassemi, 901-519-8115, adam.ghassemi@sylvamo.com