Sylvamo Announces Dividend, Share Repurchase Program

Rhea-AI Summary

Sylvamo's board declared a quarterly dividend of $0.1125 per share for July 1 to September 30, 2022, payable on July 15, 2022. The company also announced a $150 million share repurchase program aimed at enhancing shareholder value. CEO Jean-Michel Ribiéras noted that strong free cash flow will support these initiatives while also facilitating ongoing debt reduction. The repurchase program is flexible and subject to market conditions.

Positive

• Quarterly dividend of $0.1125 per share enhances shareholder value.
• Authorized share buyback program of $150 million reflects strong free cash flow.

Negative

• None.

Board of Directors Initiates Quarterly Dividend,

Authorization to Acquire up to $150 Million of Common Stock

MEMPHIS, Tenn.--(BUSINESS WIRE)-- Sylvamo's (NYSE: SLVM) board of directors declared a quarterly dividend of $0.1125 per share for the period of July 1, 2022, to Sept. 30, 2022. The dividend is payable July 15, 2022, to holders of record at the close of business June 17, 2022.

The board also authorized a share repurchase program to acquire up to $150 million of the company's common stock.

"Our strong free cash flow enables us to begin returning cash to shareowners," said Jean-Michel Ribiéras, chairman and chief executive officer. "We also expect to continue paying down debt and will repurchase shares opportunistically to further increase our equity value.”

The repurchase program will follow applicable legal requirements, is subject to market conditions and other considerations, has no termination date and does not require the company to purchase shares.

About Sylvamo

Sylvamo (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 7,500 colleagues. Net sales for 2021 were $3.5 billion. For more information, please visit Sylvamo.com.

Forward Looking Statement

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 statement concerning paying down debt. 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 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 as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220519005247/en/

Investor Contact: Hans Bjorkman, 901-419-3525, hans.bjorkman@sylvamo.com

Media Contact: Adam Ghassemi, 901-419-4436, adam.ghassemi@sylvamo.com

Source: Sylvamo

FAQ

What is the quarterly dividend declared by Sylvamo for July 2022?

Sylvamo declared a quarterly dividend of $0.1125 per share for the period of July 1 to September 30, 2022.

When will the dividend be paid to shareholders?

The dividend will be payable on July 15, 2022, to shareholders on record as of June 17, 2022.

What is the purpose of the $150 million share repurchase program by Sylvamo?

The share repurchase program is designed to enhance shareholder value and is supported by the company's strong free cash flow.

How does Sylvamo plan to use its free cash flow?

Sylvamo plans to use its free cash flow to return cash to shareholders and continue paying down debt.

Is there a termination date for Sylvamo's share repurchase program?

No, the share repurchase program does not have a termination date and is subject to market conditions.