Sylvamo 2024 Earnings Per Share Increases 21%, Adjusted Operating Earnings Per Share Up 14% as Company Generates Strong Cash Flow
Financial Highlights – 2024 Full Year vs. 2023 Full Year
-
Net income of
($302 million per diluted share) vs.$7.18 ($253 million per diluted share)$5.93 -
Adjusted operating earnings1 of
($312 million per diluted share) vs.$7.42 ($278 million per diluted share)$6.51 -
Adjusted EBITDA2 of
($632 million 17% margin) vs. ($607 million 16% margin) -
Cash provided by operating activities of
vs.$469 million $504 million -
Free cash flow3 of
vs.$248 million $294 million
Additional Highlights – 2024 Full Year
-
Achieved
23% return on invested capital4 -
Reinvested
in capital expenditures$221 million -
Paid
in debt, ending the year with$154 million in net debt$591 million -
Paid dividends totaling
$62 million -
Repurchased approximately
of our common stock, resulting in 40.6 million shares outstanding as of Dec. 31$68 million
Financial Highlights – Fourth Quarter vs. Third Quarter
-
Net income of
($81 million per diluted share) vs.$1.94 ($95 million per diluted share)$2.27 -
Adjusted operating earnings of
($82 million per diluted share) vs.$1.96 ($102 million per diluted share)$2.44 -
Adjusted EBITDA of
($157 million 16% margin) vs. ($193 million 20% margin) -
Cash provided by operating activities of
vs.$164 million $163 million -
Free cash flow of
vs.$100 million $119 million
Commercial and Operational Highlights – Fourth Quarter vs. Third Quarter
-
Price and mix was unfavorable by
driven by pulp and paper price decreases in$18 million Europe (40% of the variance) and mix inNorth America (30% of the variance) -
Volume improved by
due to seasonality in$6 million Latin America -
Operations and other costs improved by
$2 million -
Planned maintenance outage expenses increased by
$17 million -
Input and transportation costs increased by
, primarily driven by higher transportation and seasonally higher energy prices$9 million
First Quarter Outlook
-
Adjusted EBITDA of
to$85 million $105 million -
Compared to the fourth quarter:
-
Price and mix are expected to decrease by
to$10 million due to paper price decreases in$15 million Europe and in our Brazilian export regions, as well as seasonally unfavorable mix inLatin America . These decreases are projected to be partially offset by the realization of paper price increases communicated to customers inNorth America andBrazil in the fourth quarter. -
Volume is projected to decrease by
to$20 million , driven by the seasonally weakest demand quarter in$25 million Latin America and lower volume inNorth America from theGeorgetown mill exit -
Operations and other costs are expected to be stable to increasing up to
$5 million -
Input and transportation costs are projected to increase by
to$5 million primarily due to seasonally higher energy prices in$10 million North America -
Total planned maintenance outage expenses are expected to increase by
$15 million
-
Price and mix are expected to decrease by
-
We expect quarterly earnings to improve throughout the year as we benefit from seasonally stronger volume and realize the price increases we are currently implementing. We also have less maintenance outage expenses in the second half of the year, with about
80% of our planned maintenance outages in the first half of the year.
Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras
In 2024, we earned
We have
Our strong cash flow and
Our structural cost reduction program, Project Horizon, made significant progress streamlining manufacturing, supply chain and overhead costs throughout 2024. Before inflation, we exceeded our
On Dec. 31, we mutually terminated a supply agreement for uncoated freesheet, bristols and specialty papers from International Paper’s
In 2024, we invested
We plan to invest approximately
Once completed, the combined projects should have an internal rate of return greater than
-
We plan to invest approximately
to speed up one of our paper machines by the end of 2026, modernizing it to the same world class level as the mill’s other machine. The investment will allow us to produce approximately 60,000 additional short tons of uncoated freesheet annually.$100 million
-
We also plan to invest roughly
for a new replacement sheeter. The state-of-the-art cutsize sheeter will be online by late 2026, lowering costs and adding flexibility to service customers.$45 million
We are also entering a 20-year partnership to outsource our
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 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 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 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. |
|
4 Return on Invested Capital (“ROIC”) is a non-GAAP measure presented as a supplemental measure of our performance. Management believes that ROIC is useful because it measures how effectively and efficiently we use the capital invested in our business. ROIC = Adjusted Operating Earnings Before Interest / Average Invested Capital. Invested Capital = Equity plus total debt minus cash and temporary investments. The Average Invested Capital is calculated as a simple average for the two most recent fiscal years. |
Select Financial Measures |
||||||||
(In millions) |
Fourth
|
|
Third
|
|
Fourth
|
|||
Net Sales |
$ |
970 |
|
$ |
965 |
|
$ |
964 |
Net Income |
|
81 |
|
|
95 |
|
|
49 |
Business Segment Operating Profit |
|
109 |
|
|
150 |
|
|
77 |
Adjusted Operating Earnings |
|
82 |
|
|
102 |
|
|
49 |
Adjusted EBITDA |
|
157 |
|
|
193 |
|
|
117 |
Cash Provided By Operating Activities |
|
164 |
|
|
163 |
|
|
167 |
Free Cash Flow |
|
100 |
|
|
119 |
|
|
104 |
Segment Information
Sylvamo uses business segment operating profit to measure the earnings performance of its businesses and is calculated as set forth in footnote (g) under the "Sales and Earnings by Business Segment" table (page 8). Fourth quarter 2024 net sales by business segment and operating profit by business segment compared with the third quarter of 2024 and the fourth quarter of 2023 are as follows:
Business Segment Results |
|||||||||||
(In millions) |
Fourth
|
|
Third
|
|
Fourth
|
||||||
Net Sales by Business Segment |
|
|
|
|
|
||||||
|
$ |
194 |
|
|
$ |
194 |
|
|
$ |
197 |
|
|
|
266 |
|
|
|
247 |
|
|
|
288 |
|
|
|
514 |
|
|
|
532 |
|
|
|
496 |
|
Inter-segment Sales |
|
(4 |
) |
|
|
(8 |
) |
|
|
(17 |
) |
Net Sales |
$ |
970 |
|
|
$ |
965 |
|
|
$ |
964 |
|
Operating Profit by Business Segment |
|
|
|
|
|
||||||
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
(23 |
) |
|
|
50 |
|
|
|
49 |
|
|
|
48 |
|
|
|
56 |
|
|
|
98 |
|
|
|
52 |
|
Business Segment Operating Profit |
$ |
109 |
|
|
$ |
150 |
|
|
$ |
77 |
|
Operating profits in the fourth quarter of 2024:
Effective Tax Rate
The reported effective tax rate for the fourth quarter of 2024 was
Excluding net special items, the effective tax rate for the fourth quarter of 2024 was
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 fourth quarter of 2024 amounted to a net after-tax charge of
Earnings Webcast
The company will host an audio webcast at 10 a.m. EST / 9 a.m. CST. All interested parties are invited to listen at investors.sylvamo.com.
Parties who wish to participate should call 800-715-9871 (
Replays are available at investors.sylvamo.com for one year and by phone for one week. To listen by phone, call 800-770-2030 (
About Sylvamo
Sylvamo Corporation (NYSE: SLVM) is the world's paper company with mills in
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 "First 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
SYLVAMO CORPORATION Consolidated Statement of Operations Preliminary and Unaudited (In millions, except per share amounts) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2024 |
|
Twelve Months Ended December 31, |
|
|||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
||||||
Net Sales |
$ |
970 |
|
$ |
964 |
|
$ |
965 |
|
$ |
3,773 |
|
$ |
3,721 |
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|||||
Cost of products sold |
|
733 |
|
|
762 |
(h) |
|
700 |
|
|
2,833 |
(c) |
|
2,809 |
(h) |
Selling and administrative expenses |
|
81 |
(a) |
|
87 |
(i) |
|
74 |
(e) |
|
311 |
(a) |
|
343 |
(i) |
Depreciation, amortization and cost of timber harvested |
|
44 |
(b) |
|
38 |
|
|
39 |
(f) |
|
159 |
(b) |
|
143 |
|
Taxes other than payroll and income taxes |
|
5 |
|
|
4 |
|
|
6 |
|
|
26 |
|
|
23 |
|
Interest expense (income), net |
|
7 |
|
|
6 |
(j) |
|
14 |
(g) |
|
39 |
(d) |
|
34 |
(j) |
Income Before Income Taxes |
|
100 |
|
|
67 |
|
|
132 |
|
|
405 |
|
|
369 |
|
Income tax provision |
|
19 |
|
|
18 |
|
|
37 |
|
|
103 |
|
|
116 |
(k) |
Net Income |
$ |
81 |
|
$ |
49 |
|
$ |
95 |
|
$ |
302 |
|
$ |
253 |
|
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
$ |
1.98 |
|
$ |
1.18 |
|
$ |
2.32 |
|
$ |
7.35 |
|
$ |
6.02 |
|
Diluted |
$ |
1.94 |
|
$ |
1.16 |
|
$ |
2.27 |
|
$ |
7.18 |
|
$ |
5.93 |
|
Average Shares of Common Stock Outstanding - Diluted |
|
42 |
|
|
42 |
|
|
42 |
|
|
42 |
|
|
42 |
|
The accompanying notes are an integral part of this consolidated statement of operations. |
Three Months and Twelve Months Ended December 31, 2024 |
|
|
|
(a) |
Includes a pre-tax loss of |
|
|
(b) |
Includes pre-tax loss of |
|
|
(c) |
Includes pre-tax gain of |
|
|
(d) |
Includes pre-tax loss of |
|
|
Three Months Ended September 30, 2024 |
|
|
|
(e) |
Includes pre-tax loss of |
|
|
(f) |
Includes pre-tax loss of |
|
|
(g) |
Includes pre-tax loss of |
|
|
Three Months and Twelve Months Ended December 31, 2023 |
|
|
|
(h) |
Includes a pre-tax gain of |
|
|
(i) |
Includes a pre-tax loss of |
|
|
(j) |
Includes a pretax gain of |
|
|
(k) |
Includes a |
SYLVAMO CORPORATION Reconciliation of Net Income to Adjusted Operating Earnings Preliminary and Unaudited (In millions, except per share amounts) |
||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2024 |
|
Twelve Months Ended December 31, |
|||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
||||||
Net Income |
$ |
81 |
|
$ |
49 |
|
$ |
95 |
|
$ |
302 |
|
$ |
253 |
Add back: Net special items expense (income) |
|
1 |
|
|
— |
|
|
7 |
|
|
10 |
|
|
25 |
Adjusted Operating Earnings |
$ |
82 |
|
$ |
49 |
|
$ |
102 |
|
$ |
312 |
|
$ |
278 |
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2024 |
|
Twelve Months Ended December 31, |
|||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
||||||
Diluted Earnings Per Common Share as Reported |
$ |
1.94 |
|
$ |
1.16 |
|
$ |
2.27 |
|
$ |
7.18 |
|
$ |
5.93 |
Add back: Net special items expense (income) |
|
0.02 |
|
|
— |
|
|
0.17 |
|
|
0.24 |
|
|
0.58 |
Adjusted Operating Earnings Per Share |
$ |
1.96 |
|
$ |
1.16 |
|
$ |
2.44 |
|
$ |
7.42 |
|
$ |
6.51 |
SYLVAMO CORPORATION Sales and Earnings by Business Segment Preliminary and Unaudited (In millions) |
||||||||||||||||||||
Net Sales by Business Segment |
||||||||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2024 |
|
Twelve Months Ended December 31, |
|||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
||||
|
$ |
194 |
|
|
$ |
197 |
|
|
$ |
194 |
|
|
$ |
801 |
|
|
$ |
821 |
|
|
|
|
266 |
|
|
|
288 |
|
|
|
247 |
|
|
|
974 |
|
|
|
1,006 |
|
|
|
|
514 |
|
|
|
496 |
|
|
|
532 |
|
|
|
2,029 |
|
|
|
1,951 |
|
|
Inter-segment Sales |
|
(4 |
) |
|
|
(17 |
) |
|
|
(8 |
) |
|
|
(31 |
) |
|
|
(57 |
) |
|
Net Sales |
$ |
970 |
|
|
$ |
964 |
|
|
$ |
965 |
|
|
$ |
3,773 |
|
|
$ |
3,721 |
|
Operating Profit by Business Segment |
||||||||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended
|
|
Twelve Months Ended December 31, |
|
||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
|
2023 |
|
|
||||||||
|
$ |
3 |
|
$ |
(23 |
) |
|
$ |
3 |
|
$ |
10 |
|
$ |
(25 |
) |
|
|||
|
|
50 |
|
|
48 |
|
|
|
49 |
|
|
150 |
|
|
197 |
|
|
|||
|
|
56 |
|
|
52 |
|
|
|
98 |
|
|
293 |
|
|
269 |
|
|
|||
Business Segment Operating Profit |
$ |
109 |
|
$ |
77 |
|
|
$ |
150 |
|
$ |
453 |
|
$ |
441 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income Before Income Taxes |
$ |
100 |
|
$ |
67 |
|
|
$ |
132 |
|
$ |
405 |
|
$ |
369 |
|
|
|||
Interest expense (income), net |
|
7 |
|
|
6 |
|
(e) |
|
14 |
(c) |
|
39 |
(b) |
|
34 |
|
(e) |
|||
Net special items expense (income) |
|
2 |
(a) |
|
4 |
|
(f) |
|
4 |
(d) |
|
9 |
(a) |
|
38 |
|
(f) |
|||
Business Segment Operating Profit (g) |
$ |
109 |
|
$ |
77 |
|
|
$ |
150 |
|
$ |
453 |
|
$ |
441 |
|
|
Three and Twelve Months Ended December 31, 2024 |
|
|
|
(a) |
Includes pre-tax loss of |
|
|
(b) |
Includes pre-tax loss of |
|
|
Three Months Ended September 30, 2024 |
|
|
|
(c) |
Includes pre-tax loss of |
|
|
(d) |
Includes pre-tax loss of |
|
|
Three Months and Twelve Months Ended December 31, 2023 |
|
|
|
(e) |
Includes a pretax gain of |
|
|
(f) |
Includes a pre-tax gain of |
|
|
(g) |
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 December 31, |
|
Three Months Ended September 30, 2024 |
|
Twelve Months Ended December 31, |
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|||
Net Income |
$ |
81 |
|
|
$ |
49 |
|
|
$ |
95 |
|
|
$ |
302 |
|
|
$ |
253 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision |
|
19 |
|
|
|
18 |
|
|
|
37 |
|
|
|
103 |
|
|
|
116 |
|
Interest expense (income), net |
|
7 |
|
|
|
6 |
|
|
|
14 |
|
|
|
39 |
|
|
|
34 |
|
Depreciation, amortization and cost of timber harvested |
|
44 |
|
|
|
38 |
|
|
|
39 |
|
|
|
159 |
|
|
|
143 |
|
Stock-based compensation |
|
6 |
|
|
|
2 |
|
|
|
5 |
|
|
|
23 |
|
|
|
23 |
|
Net special items expense (income) |
|
— |
|
|
|
4 |
|
|
|
3 |
|
|
|
6 |
|
|
|
38 |
|
Adjusted EBITDA |
$ |
157 |
|
|
$ |
117 |
|
|
$ |
193 |
|
|
$ |
632 |
|
|
$ |
607 |
|
Net Sales |
$ |
970 |
|
|
$ |
964 |
|
|
$ |
965 |
|
|
$ |
3,773 |
|
|
$ |
3,721 |
|
Adjusted EBITDA Margin |
|
16.2 |
% |
|
|
12.1 |
% |
|
|
20.0 |
% |
|
|
16.8 |
% |
|
|
16.3 |
% |
Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment |
|||||||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2024 |
|
Twelve Months Ended December 31, |
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
14 |
|
|
$ |
(16 |
) |
|
$ |
11 |
|
|
$ |
47 |
|
|
$ |
7 |
|
|
|
70 |
|
|
|
67 |
|
|
|
69 |
|
|
|
228 |
|
|
|
271 |
|
|
|
73 |
|
|
|
66 |
|
|
|
113 |
|
|
|
357 |
|
|
|
329 |
|
Total Business Segment Adjusted EBITDA |
$ |
157 |
|
|
$ |
117 |
|
|
$ |
193 |
|
|
$ |
632 |
|
|
$ |
607 |
|
Net Sales (excluding inter-segment sales eliminations) |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
194 |
|
|
$ |
197 |
|
|
$ |
194 |
|
|
$ |
801 |
|
|
$ |
821 |
|
|
|
266 |
|
|
|
288 |
|
|
|
247 |
|
|
|
974 |
|
|
|
1,006 |
|
|
|
514 |
|
|
|
496 |
|
|
|
532 |
|
|
|
2,029 |
|
|
|
1,951 |
|
Total Business Segment Net Sales |
$ |
974 |
|
|
$ |
981 |
|
|
$ |
973 |
|
|
$ |
3,804 |
|
|
$ |
3,778 |
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
7 |
% |
|
|
(8 |
)% |
|
|
6 |
% |
|
|
6 |
% |
|
|
1 |
% |
|
|
26 |
% |
|
|
23 |
% |
|
|
28 |
% |
|
|
23 |
% |
|
|
27 |
% |
|
|
14 |
% |
|
|
13 |
% |
|
|
21 |
% |
|
|
18 |
% |
|
|
17 |
% |
SYLVAMO CORPORATION Consolidated Balance Sheet Preliminary and Unaudited (In millions) |
|||||||
|
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and temporary investments |
$ |
205 |
|
|
$ |
220 |
|
Restricted cash |
|
— |
|
|
|
60 |
|
Accounts and notes receivable, net |
|
429 |
|
|
|
428 |
|
Contract assets |
|
26 |
|
|
|
27 |
|
Inventories |
|
361 |
|
|
|
404 |
|
Other current assets |
|
42 |
|
|
|
54 |
|
Total Current Assets |
|
1,063 |
|
|
|
1,193 |
|
Plants, Properties and Equipment, Net |
|
944 |
|
|
|
1,002 |
|
Forestlands |
|
319 |
|
|
|
364 |
|
Goodwill |
|
111 |
|
|
|
139 |
|
Right of Use Assets |
|
58 |
|
|
|
58 |
|
Deferred Charges and Other Assets |
|
109 |
|
|
|
116 |
|
Total Assets |
$ |
2,604 |
|
|
$ |
2,872 |
|
Liabilities and Equity |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
375 |
|
|
$ |
421 |
|
Notes payable and current maturities of long-term debt |
|
22 |
|
|
|
28 |
|
Accrued payroll and benefits |
|
79 |
|
|
|
63 |
|
Other current liabilities |
|
206 |
|
|
|
183 |
|
Total Current Liabilities |
|
682 |
|
|
|
695 |
|
Long-Term Debt |
|
782 |
|
|
|
931 |
|
Deferred Income Taxes |
|
152 |
|
|
|
189 |
|
Other Liabilities |
|
141 |
|
|
|
156 |
|
Equity |
|
|
|
||||
Common stock, |
|
45 |
|
|
|
45 |
|
Paid-In Capital |
|
71 |
|
|
|
48 |
|
Retained Earnings |
|
2,455 |
|
|
|
2,222 |
|
Accumulated Other Comprehensive Loss |
|
(1,490 |
) |
|
|
(1,256 |
) |
|
|
1,081 |
|
|
|
1,059 |
|
Less: Common stock held in treasury, at cost, 4.3 shares and 3.3 shares at December 31, 2024 and December 31, 2023, respectively |
|
(234 |
) |
|
|
(158 |
) |
Total Equity |
|
847 |
|
|
|
901 |
|
Total Liabilities and Equity |
$ |
2,604 |
|
|
$ |
2,872 |
|
SYLVAMO CORPORATION Consolidated Statement of Cash Flows Preliminary and Unaudited (In millions) |
|||||||
|
Twelve Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating Activities |
|
|
|
||||
Net income |
$ |
302 |
|
|
$ |
253 |
|
Depreciation, amortization, and cost of timber harvested |
|
159 |
|
|
|
143 |
|
Deferred income tax provision (benefit), net |
|
(7 |
) |
|
|
— |
|
Stock-based compensation |
|
23 |
|
|
|
23 |
|
Changes in operating assets and liabilities and other |
|
|
|
||||
Accounts and notes receivable |
|
(47 |
) |
|
|
104 |
|
Inventories |
|
25 |
|
|
|
6 |
|
Accounts payable and accrued liabilities |
|
42 |
|
|
|
(73 |
) |
Other |
|
(28 |
) |
|
|
48 |
|
Cash Provided By Operating Activities |
|
469 |
|
|
|
504 |
|
Investing Activities |
|
|
|
||||
Invested in capital projects |
|
(221 |
) |
|
|
(210 |
) |
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(167 |
) |
Cash Provided By (Used for) Investing Activities |
|
(221 |
) |
|
|
(377 |
) |
Financing Activities |
|
|
|
||||
Dividends paid |
|
(62 |
) |
|
|
(57 |
) |
Issuance of debt |
|
250 |
|
|
|
446 |
|
Reduction of debt |
|
(407 |
) |
|
|
(526 |
) |
Repurchases of common stock |
|
(69 |
) |
|
|
(70 |
) |
Other |
|
(22 |
) |
|
|
(12 |
) |
Cash Provided By (Used for) Financing Activities |
|
(310 |
) |
|
|
(219 |
) |
Effect of Exchange Rate Changes on Cash |
|
(13 |
) |
|
|
12 |
|
Change in Cash, Temporary Investments and Restricted Cash |
|
(75 |
) |
|
|
(80 |
) |
Cash, Temporary Investments and Restricted Cash |
|
|
|
||||
Beginning of the period |
|
280 |
|
|
|
360 |
|
End of the period |
$ |
205 |
|
|
$ |
280 |
|
SYLVAMO CORPORATION Reconciliation of Cash Provided by Operations to Free Cash Flow Preliminary and Unaudited (In millions) |
|||||||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2024 |
|
Twelve Months Ended December 31, |
||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|||
Cash Provided By Operating Activities |
$ |
164 |
|
|
$ |
167 |
|
|
$ |
163 |
|
|
$ |
469 |
|
|
$ |
504 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash invested in capital projects |
|
(64 |
) |
|
|
(63 |
) |
|
|
(44 |
) |
|
|
(221 |
) |
|
|
(210 |
) |
Free Cash Flow |
$ |
100 |
|
|
$ |
104 |
|
|
$ |
119 |
|
|
$ |
248 |
|
|
$ |
294 |
|
SYLVAMO CORPORATION Reconciliation of Return on Invested Capital Preliminary and Unaudited (In millions) |
|||||||
|
|
2024 |
|
|
|
2023 |
|
Net Income |
$ |
302 |
|
|
|
||
Net special items expense (income) |
|
10 |
|
|
|
||
Interest expense (income), net |
|
39 |
|
|
|
||
Adjusted Operating Earnings Before Interest |
$ |
351 |
|
|
|
||
Total equity |
$ |
847 |
|
|
$ |
901 |
|
Add: Long-term debt |
|
782 |
|
|
|
931 |
|
Add: Notes payable and current maturities of long-term debt |
|
22 |
|
|
|
28 |
|
Less: Cash, temporary investments and restricted cash |
|
(205 |
) |
|
|
(280 |
) |
Total Invested Capital |
$ |
1,446 |
|
|
$ |
1,580 |
|
Average Invested Capital |
|
||||||
Return on Invested Capital for the Twelve Months Ended December 31, 2024 |
|
SYLVAMO CORPORATION Reconciliation of Net Income to Adjusted EBITDA - First Quarter 2025 Outlook Estimates (In millions) |
|
|
Three Months Ended March 31, 2025 |
|
|
Net Income |
|
Adjustments: |
|
Income tax provision |
8 - 14 |
Interest expense (income), net |
8 |
Depreciation, amortization and cost of timber harvested |
43 |
Stock-based compensation |
6 |
Adjusted EBITDA |
|
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-
View source version on businesswire.com: https://www.businesswire.com/news/home/20250212793495/en/
Investor Contact: Hans Bjorkman, 901-519-8030, hans.bjorkman@sylvamo.com
Media Contact: Adam Ghassemi, 901-519-8115, adam.ghassemi@sylvamo.com
Source: Sylvamo