Sylvamo Generates Strong Operating Cash Flow, Returns $127 Million in Cash to Shareowners in 2023
- None.
- None.
Insights
An examination of Sylvamo's financial performance reveals a company that has managed to maintain a robust financial profile despite challenging market conditions. The reported net income from continuing operations of $253 million, with an adjusted operating earnings of $278 million and an adjusted EBITDA of $607 million, indicates a solid performance, particularly considering the 16% EBITDA margin. This margin is slightly below the industry standard for paper companies, which often target an EBITDA margin closer to 20-25%. However, the company's ability to generate free cash flow of $294 million while paying dividends and repurchasing shares suggests a strong cash position and a commitment to returning value to shareholders.
From a financial perspective, the acquisition of the uncoated freesheet mill in Nymolla appears to be a strategic move, contributing positively to the company's cash flow. The investment in the Brazil forestlands is noteworthy, as it not only reduces input costs but also adds a significant asset to the company's balance sheet, as indicated by the substantial increase in their valuation. These strategic moves are likely to bolster investor confidence in the company's long-term growth prospects and operational efficiency.
The paper industry has been facing headwinds due to digitalization trends, which reduce demand for traditional paper products. Sylvamo's performance, however, demonstrates resilience in this challenging environment. Notably, the company's strategy of capital allocation, including the acquisition of the mill in Sweden and investments in forestlands, positions it well to capitalize on market segments that may still have growth potential, such as packaging and specialty papers.
The company's emphasis on cost reduction through Project Horizon could be a response to the industry's need for efficiency in the face of fluctuating demand and input costs. The projected run rate savings of at least $110 million by the end of 2024 suggests a significant reduction in overhead, which could improve profitability. Additionally, the company's forestland investments in Brazil offer a competitive advantage in terms of raw material costs, which is particularly valuable in an industry where cost leadership is crucial.
Looking at Sylvamo's financials from an economic perspective, the company's performance is a microcosm of broader economic trends. The reported increase in net sales in the fourth quarter compared to the third quarter, despite a challenging market, reflects an ability to leverage seasonally stronger sales and positive trends across various regions. However, the increase in operations and other costs, including those from an unexpected reliability issue with a third-party energy provider, highlights the vulnerability of global supply chains and the impact of external shocks on operational costs.
The company's forward-looking statements regarding expected decreases in price and mix, alongside projected volume decreases, suggest a cautious outlook on demand, which could be indicative of broader economic uncertainties. The planned reduction in maintenance outage expenses and improvements in operations and other costs signal efforts to optimize operations amidst these uncertainties. Sylvamo's strategic positioning, with significant investments in cost-advantageous forestlands and asset modernization, appears to be a hedge against potential economic downturns, allowing the company to maintain a competitive edge in a cyclical industry.
Financial Highlights – 2023 Full Year
-
Net income from continuing operations of
($253 million per diluted share)$5.93 -
Adjusted operating earnings1 of
($278 million per diluted share)$6.51 -
Adjusted EBITDA2 of
($607 million 16% margin) -
Cash provided by operating activities from continuing operations of
$504 million -
Free cash flow3 of
$294 million -
Paid regular and special dividends totaling
$57 million -
Repurchased 1,574,133 shares of our common stock for approximately
, resulting in 41.2 million shares outstanding as of Dec. 31$70 million -
Ended the year with net debt of
($730 million of gross debt and$950 million cash on hand)$220 million
Financial Highlights - Fourth Quarter vs. Third Quarter
-
Net sales of
vs.$964 million ($897 million 7.5% increase) -
Net income from continuing operations of
($49 million per diluted share) vs.$1.16 ($58 million per diluted share)$1.37 -
Adjusted operating earnings1 of
($49 million per diluted share) vs.$1.16 ($72 million per diluted share)$1.70 -
Adjusted EBITDA2 of
($117 million 12% margin) vs. ($158 million 18% margin) -
Cash provided by operating activities from continuing operations of
vs.$167 million $197 million -
Free cash flow3 of
vs.$104 million $155 million
Commercial and Operational Highlights – Fourth Quarter vs. Third Quarter
-
Price and mix decreased by
due primarily to prior paper price decreases as well as unfavorable mix in$25 million Latin America andNorth America -
Volume increased by
due to seasonally stronger sales volume in$20 million Latin America and positive trends inEurope andNorth America -
Operations and other costs increased by
due to seasonally higher costs in$12 million Europe andNorth America , including for an unexpected reliability issue with a third-party energy provider at our Saillat,$5 million France , mill and unfavorable foreign exchange variances. These costs were partially offset by lower economic downtime costs versus the prior quarter. -
Planned maintenance outage expenses increased by
due to planned outages in all regions$25 million -
Input costs improved by
, driven primarily by favorable chemical costs, more than offsetting seasonally high energy costs$1 million
First Quarter Outlook
-
Adjusted EBITDA of
to$105 million $125 million -
Compared to the fourth quarter:
-
Price and mix are expected to decrease slightly by
to$5 million , primarily reflecting a seasonal, geographic mix shift in$10 million Latin America -
Volume is projected to decrease by
to$10 million , with seasonally weaker industry demand in$15 million Latin America -
Operations and other costs are expected to improve by
to$20 million due primarily to lower economic downtime$25 million -
Input and transportation costs are projected to increase by
to$5 million due to increased transportation costs, mainly in$10 million North America and higher fiber costs inLatin America -
Total planned maintenance outage expenses are expected to decrease by
$3 million
-
Price and mix are expected to decrease slightly by
Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras
In 2023, we earned
We remain focused on allocating capital to drive long-term shareowner value. Last year, we invested
By the end of 2023, we exhausted our initial
In the second half of last year, we reduced overhead expenses by
Our
In addition, we are investing
Our forestlands have significantly increased in value. In December, a third party appraisal valued these assets at 4.8 billion reais (approximately
1 Adjusted Operating Earnings (non-GAAP) are net income (loss) (GAAP) excluding discontinued operations, 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 (loss), provides for a more complete analysis of the results of operations. Net income (loss) 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 (loss) (GAAP) excluding discontinued operations, net of tax, plus the sum of income taxes, net interest expense (income), depreciation, amortization and cost of timber harvested, transition service agreement expense, 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 (loss), provides for a more complete analysis of the results of its operations. Net income (loss) 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 from continuing operations. 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) |
Fourth Quarter 2023 |
|
Third Quarter 2023 |
|
Fourth Quarter 2022 |
|||
Net Sales |
$ |
964 |
|
$ |
897 |
|
$ |
927 |
Net Income from Continuing Operations |
|
49 |
|
|
58 |
|
|
88 |
Net Income |
|
49 |
|
|
58 |
|
|
94 |
Business Segment Operating Profit |
|
77 |
|
|
116 |
|
|
133 |
Adjusted Operating Earnings |
|
49 |
|
|
72 |
|
|
87 |
Adjusted EBITDA |
|
117 |
|
|
158 |
|
|
170 |
Cash Provided By Operating Activities From Continuing Operations |
|
167 |
|
|
197 |
|
|
142 |
Free Cash Flow |
|
104 |
|
|
155 |
|
|
84 |
Segment Information
Sylvamo uses business segment operating profit to measure the earnings performance of its businesses and is calculated as set forth in footnote (f) under the "Sales and Earnings by Business Segment" table (page 9). Fourth quarter 2023 net sales by business segment and operating profit by business segment compared with the third quarter of 2023 and the fourth quarter of 2022 are as follows:
Business Segment Results |
|||||||||||
(In millions) |
Fourth Quarter 2023 |
|
Third Quarter 2023 |
|
Fourth Quarter 2022 |
||||||
Net Sales by Business Segment |
|
|
|
|
|
||||||
|
$ |
197 |
|
|
$ |
184 |
|
|
$ |
119 |
|
|
|
288 |
|
|
|
246 |
|
|
|
289 |
|
|
|
496 |
|
|
|
476 |
|
|
|
527 |
|
Inter-segment Sales |
|
(17 |
) |
|
|
(9 |
) |
|
|
(8 |
) |
Net Sales |
$ |
964 |
|
|
$ |
897 |
|
|
$ |
927 |
|
Operating Profit by Business Segment |
|
|
|
|
|
||||||
|
$ |
(23 |
) |
|
$ |
(14 |
) |
|
$ |
12 |
|
|
|
48 |
|
|
|
55 |
|
|
|
56 |
|
|
|
52 |
|
|
|
75 |
|
|
|
65 |
|
Business Segment Operating Profit |
$ |
77 |
|
|
$ |
116 |
|
|
$ |
133 |
|
Operating profits in the fourth quarter of 2023:
Effective Tax Rate
The reported effective tax rate for continuing operations for the fourth quarter of 2023 was
Excluding net special items, the effective tax rate for the fourth quarter of 2023 was
The effective tax rate excluding net special items is a non-GAAP financial measure and is calculated by adjusting the income tax provision from continuing operations 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 related to continuing operations in the fourth quarter of 2023 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 +1-877-336-4440 (
Replays are available at investors.sylvamo.com for one year and by phone for 90 days, beginning at approximately 2 p.m. EST / 1 p.m. CST the day of the call. To listen to the replay by phone, call +1-866-207-1041 (
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, 2022, 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, 2023 |
|
Twelve Months Ended December 31, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
||
Net Sales |
$ |
964 |
|
$ |
927 |
|
$ |
897 |
|
$ |
3,721 |
|
$ |
3,628 |
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
||||||
Cost of products sold |
|
762 |
(a) |
|
654 |
(h) |
|
665 |
(e) |
|
2,809 |
(a) |
|
2,619 |
|
(h) |
Selling and administrative expenses |
|
87 |
(b) |
|
97 |
(i) |
|
89 |
(f) |
|
343 |
(b) |
|
325 |
|
(i) |
Depreciation, amortization and cost of timber harvested |
|
38 |
|
|
32 |
|
|
36 |
|
|
143 |
|
|
125 |
|
|
Taxes other than payroll and income taxes |
|
4 |
|
|
5 |
|
|
7 |
|
|
23 |
|
|
23 |
|
|
Interest expense (income), net |
|
6 |
(c) |
|
17 |
(j) |
|
9 |
|
|
34 |
(c) |
|
69 |
|
(j) |
Income From Continuing Operations Before Income Taxes |
|
67 |
|
|
122 |
|
|
91 |
|
|
369 |
|
|
467 |
|
|
Income tax provision |
|
18 |
|
|
34 |
|
|
33 |
(g) |
|
116 |
(d) |
|
131 |
|
(l) |
Net Income From Continuing Operations |
|
49 |
|
|
88 |
|
|
58 |
|
|
253 |
|
|
336 |
|
|
Discontinued operations, net of tax |
|
— |
|
|
6 |
(k) |
|
— |
|
|
— |
|
|
(218 |
) |
(m) |
Net Income (Loss) |
$ |
49 |
|
$ |
94 |
|
$ |
58 |
|
$ |
253 |
|
$ |
118 |
|
|
Basic Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
||||||
Income from continuing operations |
$ |
1.18 |
|
$ |
2.02 |
|
$ |
1.39 |
|
$ |
6.02 |
|
$ |
7.65 |
|
|
Discontinued operations, net of taxes |
|
— |
|
|
0.14 |
|
|
— |
|
|
— |
|
|
(4.97 |
) |
|
Net earnings (loss) |
$ |
1.18 |
|
$ |
2.16 |
|
$ |
1.39 |
|
$ |
6.02 |
|
$ |
2.68 |
|
|
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
||||||
Income from continuing operations |
$ |
1.16 |
|
$ |
1.99 |
|
$ |
1.37 |
|
$ |
5.93 |
|
$ |
7.57 |
|
|
Discontinued operations, net of taxes |
|
— |
|
|
0.14 |
|
|
— |
|
|
— |
|
|
(4.91 |
) |
|
Net earnings (loss) |
$ |
1.16 |
|
$ |
2.13 |
|
$ |
1.37 |
|
$ |
5.93 |
|
$ |
2.66 |
|
|
Average Shares of Common Stock Outstanding - Diluted |
|
42 |
|
|
44 |
|
|
42 |
|
|
42 |
|
|
44 |
|
|
The accompanying notes are an integral part of this consolidated statement of operations. |
|
Three Months and Twelve Months Ended December 31, 2023 | |
|
|
(a) |
Includes a pre-tax gain of |
|
|
(b) |
Includes a pre-tax loss of |
|
|
(c) |
Includes a pretax gain of |
|
|
(d) |
Includes a |
Three Months Ended September 30, 2023 |
|
|
|
(e) |
Includes pre-tax loss of |
|
|
(f) |
Includes a pre-tax loss of |
|
|
(g) |
Includes a |
|
|
Three Months and Twelve Months Ended December 31, 2022 |
|
|
|
(h) |
Includes a pre-tax gain of |
|
|
(i) |
Includes a pre-tax loss of |
|
|
(j) |
Includes a pre-tax loss of |
|
|
(k) |
Includes a pre-tax income of |
|
|
(l) |
Includes a |
|
|
(m) |
Includes a pre-tax charge of |
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, 2023 |
|
Twelve Months Ended December 31, |
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
||
Net Income (Loss) |
$ |
49 |
|
$ |
94 |
|
|
$ |
58 |
|
$ |
253 |
|
$ |
118 |
|
Less: Discontinued operations, net of tax |
|
— |
|
|
6 |
|
|
|
— |
|
|
— |
|
|
(218 |
) |
Net income From Continuing Operations |
|
49 |
|
|
88 |
|
|
|
58 |
|
|
253 |
|
|
336 |
|
Add back: Net special items expense (income) |
|
— |
|
|
(1 |
) |
|
|
14 |
|
|
25 |
|
|
12 |
|
Adjusted Operating Earnings |
$ |
49 |
|
$ |
87 |
|
|
$ |
72 |
|
$ |
278 |
|
$ |
348 |
|
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2023 |
|
Twelve Months Ended December 31, |
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
||
Diluted Earnings (Loss) Per Common Share as Reported |
$ |
1.16 |
|
$ |
2.13 |
|
|
$ |
1.37 |
|
$ |
5.93 |
|
$ |
2.66 |
|
Less: Discontinued operations, net of tax |
|
— |
|
|
0.14 |
|
|
|
— |
|
|
— |
|
|
(4.91 |
) |
Continuing Operations |
|
1.16 |
|
|
1.99 |
|
|
|
1.37 |
|
|
5.93 |
|
|
7.57 |
|
Add back: Net special items expense (income) |
|
— |
|
|
(0.02 |
) |
|
|
0.33 |
|
|
0.58 |
|
|
0.27 |
|
Adjusted Operating Earnings Per Share |
$ |
1.16 |
|
$ |
1.97 |
|
|
$ |
1.70 |
|
$ |
6.51 |
|
$ |
7.84 |
|
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, 2023 |
|
Twelve Months Ended December 31, |
|
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|||
|
$ |
197 |
|
|
$ |
119 |
|
|
$ |
184 |
|
|
$ |
821 |
|
|
$ |
501 |
|
|
|
|
288 |
|
|
|
289 |
|
|
|
246 |
|
|
|
1,006 |
|
|
|
1,023 |
|
|
|
|
496 |
|
|
|
527 |
|
|
|
476 |
|
|
|
1,951 |
|
|
|
2,173 |
|
|
Inter-segment Sales |
|
(17 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
(57 |
) |
|
|
(69 |
) |
|
Net Sales |
$ |
964 |
|
|
$ |
927 |
|
|
$ |
897 |
|
|
$ |
3,721 |
|
|
$ |
3,628 |
|
|
Operating Profit by Business Segment |
|||||||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2023 |
|
Twelve Months Ended December 31, |
|
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
|
$ |
(23 |
) |
|
$ |
12 |
|
|
$ |
(14 |
) |
|
$ |
(25 |
) |
|
$ |
50 |
|
|
|
48 |
|
|
|
56 |
|
|
|
55 |
|
|
|
197 |
|
|
|
212 |
|
|
|
52 |
|
|
|
65 |
|
|
|
75 |
|
|
|
269 |
|
|
|
291 |
|
Business Segment Operating Profit |
$ |
77 |
|
|
$ |
133 |
|
|
$ |
116 |
|
|
$ |
441 |
|
|
$ |
553 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from Continuing Operations Before Income Taxes |
$ |
67 |
|
|
$ |
122 |
|
|
$ |
91 |
|
|
$ |
369 |
|
|
$ |
467 |
|
Interest expense (income), net |
|
6 |
|
(a) |
|
17 |
|
(d) |
|
9 |
|
|
|
34 |
|
(a) |
|
69 |
(d) |
Net special items expense (income) |
|
4 |
|
(b) |
|
(6 |
) |
(e) |
|
16 |
|
(c) |
|
38 |
|
(b) |
|
17 |
(e) |
Business Segment Operating Profit (f) |
$ |
77 |
|
|
$ |
133 |
|
|
$ |
116 |
|
|
$ |
441 |
|
|
$ |
553 |
|
Three Months and Twelve Months Ended December 31, 2023 | |
|
|
(a) |
Includes a pretax gain of |
|
|
(b) |
Includes a pre-tax gain of |
|
|
Three Months Ended September 30, 2023 | |
|
|
(c) |
Includes pre-tax loss of |
Three Months and Twelve Months Ended December 31, 2022 | |
|
|
(d) |
Includes a pre-tax loss of |
|
|
(e) |
Includes a pre-tax gain of |
|
|
(f) |
As set forth in the chart above, business segment operating profit is defined as income from continuing operations 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, 2023 |
|
Twelve Months Ended December 31, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Net Income (Loss) |
$ |
49 |
|
|
$ |
94 |
|
|
$ |
58 |
|
|
$ |
253 |
|
|
$ |
118 |
|
Less: Discontinued operations, net of tax |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
(218 |
) |
Net Income From Continuing Operations |
|
49 |
|
|
|
88 |
|
|
|
58 |
|
|
|
253 |
|
|
|
336 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision |
|
18 |
|
|
|
34 |
|
|
|
33 |
|
|
|
116 |
|
|
|
131 |
|
Interest expense (income), net |
|
6 |
|
|
|
17 |
|
|
|
9 |
|
|
|
34 |
|
|
|
69 |
|
Depreciation, amortization and cost of timber harvested |
|
38 |
|
|
|
32 |
|
|
|
36 |
|
|
|
143 |
|
|
|
125 |
|
Stock-based compensation |
|
2 |
|
|
|
4 |
|
|
|
6 |
|
|
|
23 |
|
|
|
20 |
|
Transition service agreement expense |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
Net special items expense (income) |
|
4 |
|
|
|
(6 |
) |
|
|
16 |
|
|
|
38 |
|
|
|
17 |
|
Adjusted EBITDA |
$ |
117 |
|
|
$ |
170 |
|
|
$ |
158 |
|
|
$ |
607 |
|
|
$ |
721 |
|
Net Sales |
$ |
964 |
|
|
$ |
927 |
|
|
$ |
897 |
|
|
$ |
3,721 |
|
|
$ |
3,628 |
|
Adjusted EBITDA Margin |
|
12.1 |
% |
|
|
18.3 |
% |
|
|
17.6 |
% |
|
|
16.3 |
% |
|
|
19.9 |
% |
Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment |
|||||||||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended September 30, 2023 |
|
Twelve Months Ended December 31, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
(16 |
) |
|
$ |
16 |
|
|
$ |
(5 |
) |
|
$ |
7 |
|
|
$ |
70 |
|
|
|
67 |
|
|
|
72 |
|
|
|
74 |
|
|
|
271 |
|
|
|
281 |
|
|
|
66 |
|
|
|
82 |
|
|
|
89 |
|
|
|
329 |
|
|
|
370 |
|
Total Business Segment Adjusted EBITDA |
$ |
117 |
|
|
$ |
170 |
|
|
$ |
158 |
|
|
$ |
607 |
|
|
$ |
721 |
|
Net Sales (excluding discontinued operations and inter-segment sales eliminations) |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
197 |
|
|
$ |
119 |
|
|
$ |
184 |
|
|
$ |
821 |
|
|
$ |
501 |
|
|
|
288 |
|
|
|
289 |
|
|
|
246 |
|
|
|
1,006 |
|
|
|
1,023 |
|
|
|
496 |
|
|
|
527 |
|
|
|
476 |
|
|
|
1,951 |
|
|
|
2,173 |
|
Total Business Segment Net Sales |
$ |
981 |
|
|
$ |
935 |
|
|
$ |
906 |
|
|
$ |
3,778 |
|
|
$ |
3,697 |
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(8 |
)% |
|
|
13 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
14 |
% |
|
|
23 |
% |
|
|
25 |
% |
|
|
30 |
% |
|
|
27 |
% |
|
|
27 |
% |
|
|
13 |
% |
|
|
16 |
% |
|
|
19 |
% |
|
|
17 |
% |
|
|
17 |
% |
SYLVAMO CORPORATION Consolidated Balance Sheet Preliminary and Unaudited (In millions) |
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and temporary investments |
$ |
220 |
|
|
$ |
360 |
|
Restricted cash |
|
60 |
|
|
|
— |
|
Accounts and notes receivable, net |
|
428 |
|
|
|
450 |
|
Contract assets |
|
27 |
|
|
|
30 |
|
Inventories |
|
404 |
|
|
|
364 |
|
Other current assets |
|
54 |
|
|
|
39 |
|
Total Current Assets |
|
1,193 |
|
|
|
1,243 |
|
Plants, Properties and Equipment, Net |
|
1,002 |
|
|
|
817 |
|
Forestlands |
|
364 |
|
|
|
322 |
|
Goodwill |
|
139 |
|
|
|
128 |
|
Right of Use Assets |
|
58 |
|
|
|
35 |
|
Deferred Charges and Other Assets |
|
116 |
|
|
|
165 |
|
Total Assets |
$ |
2,872 |
|
|
$ |
2,710 |
|
Liabilities and Equity |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
421 |
|
|
$ |
453 |
|
Notes payable and current maturities of long-term debt |
|
28 |
|
|
|
29 |
|
Accrued payroll and benefits |
|
63 |
|
|
|
81 |
|
Other current liabilities |
|
183 |
|
|
|
165 |
|
Total Current Liabilities |
|
695 |
|
|
|
728 |
|
Long-Term Debt |
|
931 |
|
|
|
1,003 |
|
Deferred Income Taxes |
|
189 |
|
|
|
183 |
|
Other Liabilities |
|
156 |
|
|
|
118 |
|
Equity |
|
|
|
||||
Common stock, |
|
45 |
|
|
|
44 |
|
Paid-In Capital |
|
48 |
|
|
|
25 |
|
Retained Earnings |
|
2,222 |
|
|
|
2,029 |
|
Accumulated Other Comprehensive Loss |
|
(1,256 |
) |
|
|
(1,338 |
) |
|
|
1,059 |
|
|
|
760 |
|
Less: Common stock held in treasury, at cost, 3.3 shares and 1.6 shares at December 31, 2023 and December 31, 2022, respectively |
|
(158 |
) |
|
|
(82 |
) |
Total Equity |
|
901 |
|
|
|
678 |
|
Total Liabilities and Equity |
$ |
2,872 |
|
|
$ |
2,710 |
|
Consolidated Statement of Cash Flows Preliminary and Unaudited (In millions) |
|||||||
|
Twelve Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
Operating Activities |
|
|
|
||||
Net income from continuing operations |
$ |
253 |
|
|
$ |
336 |
|
Depreciation, amortization, and cost of timber harvested |
|
143 |
|
|
|
125 |
|
Deferred income tax provision (benefit), net |
|
— |
|
|
|
(7 |
) |
Stock-based compensation |
|
23 |
|
|
|
20 |
|
Changes in operating assets and liabilities and other |
|
|
|
||||
Accounts and notes receivable |
|
104 |
|
|
|
(45 |
) |
Inventories |
|
6 |
|
|
|
(99 |
) |
Accounts payable and accrued liabilities |
|
(73 |
) |
|
|
48 |
|
Other |
|
48 |
|
|
|
40 |
|
Cash Provided By Operating Activities from Continuing Operations |
|
504 |
|
|
|
418 |
|
Cash Provided By Operating Activities from Discontinued Operations, net |
|
— |
|
|
|
20 |
|
Cash Provided By Operating Activities |
|
504 |
|
|
|
438 |
|
Investment Activities |
|
|
|
||||
Invested in capital projects |
|
(210 |
) |
|
|
(149 |
) |
Cash proceeds on disposal of business, net of cash divested |
|
— |
|
|
|
324 |
|
Acquisition of business |
|
(167 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
10 |
|
Cash Provided By (Used for) Investment Activities from Continuing Operations |
|
(377 |
) |
|
|
185 |
|
Cash Provided By (Used for) Investment Activities from Discontinued Operations, net |
|
— |
|
|
|
(5 |
) |
Cash Provided By (Used for) Investment Activities |
|
(377 |
) |
|
|
180 |
|
Financing Activities |
|
|
|
||||
Dividends paid |
|
(57 |
) |
|
|
(10 |
) |
Issuance of debt |
|
446 |
|
|
|
75 |
|
Reduction of debt |
|
(526 |
) |
|
|
(450 |
) |
Repurchases of common stock |
|
(70 |
) |
|
|
(80 |
) |
Other |
|
(12 |
) |
|
|
(4 |
) |
Cash Provided By (Used for) Financing Activities from Continuing Operations |
|
(219 |
) |
|
|
(469 |
) |
Cash Provided By (Used for) Financing Activities from Discontinued Operations, net |
|
— |
|
|
|
(1 |
) |
Cash Provided By (Used for) Financing Activities |
|
(219 |
) |
|
|
(470 |
) |
Effect of Exchange Rate Changes on Cash |
|
12 |
|
|
|
32 |
|
Change in Cash Included in Assets Held for Sale |
|
— |
|
|
|
(21 |
) |
Change in Cash, Temporary Investments and Restricted Cash |
|
(80 |
) |
|
|
201 |
|
Cash, Temporary Investments and Restricted Cash |
|
|
|
||||
Beginning of the period |
|
360 |
|
|
|
159 |
|
End of the period |
$ |
280 |
|
|
$ |
360 |
|
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, 2023 |
|
Twelve Months Ended December 31, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Cash Provided By Operating Activities From Continuing Operations |
$ |
167 |
|
|
$ |
142 |
|
|
$ |
197 |
|
|
$ |
504 |
|
|
$ |
418 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash invested in capital projects |
|
(63 |
) |
|
|
(58 |
) |
|
|
(42 |
) |
|
|
(210 |
) |
|
|
(149 |
) |
Free Cash Flow |
$ |
104 |
|
|
$ |
84 |
|
|
$ |
155 |
|
|
$ |
294 |
|
|
$ |
269 |
|
SYLVAMO CORPORATION Reconciliation of Net Income From Continuing Operations to Adjusted EBITDA - First Quarter 2024 Outlook Estimates (In millions) |
|
|
Three Months Ended March 31, 2024 |
|
|
Net Income From Continuing Operations |
|
Adjustments: |
|
Income tax provision |
15 - 21 |
Interest expense (income), net |
10 |
Depreciation, amortization and cost of timber harvested |
38 |
Stock-based compensation |
6 |
Net special items expense |
3 |
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/20240215483551/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
FAQ
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