Sylvamo Quarterly Results Meet Guidance
Slower Demand Recovery Drives Revised Annual Outlook, Company Remains Committed to
Financial Highlights – Second Quarter vs. First Quarter
-
Net income from continuing operations of
($49 million per diluted share) vs.$1.14 ($97 million per diluted share)$2.25 -
Adjusted operating earnings1 (non-GAAP) of
($49 million per diluted share) vs.$1.14 ($108 million per diluted share)$2.51 -
Adjusted EBITDA2 (non-GAAP) of
($124 million 13.5% margin) vs. ($208 million 22.1% margin) -
Cash provided by operating activities from continuing operations of
vs.$77 million $63 million -
Free cash flow3 (non-GAAP) of
vs.$33 million $2 million
Commercial and Operational Highlights – Second Quarter vs. First Quarter
-
Price and mix decreased by
due primarily to lower paper prices in$38 million Europe , less favorable mix inLatin America andNorth America and lower global pulp prices -
Volume decreased by
due to lower paper demand in$2 million North America and continued channel inventory corrections inEurope andNorth America , which more than offset seasonally stronger demand inLatin America -
Operations and other costs increased by
, primarily driven by$10 million in higher unabsorbed fixed costs from increased economic downtime$15 million -
Planned maintenance outage expenses increased by
, in line with guidance, during the heaviest outage quarter of the year$58 million -
Input costs improved by
, driven by favorable energy, chemical and transportation costs$24 million
Third Quarter Outlook
-
Adjusted EBITDA of
to$130 million $150 million -
Compared to the second quarter:
-
Price and mix are expected to decrease by
to$60 million $65 million -
Volume is projected to improve by
to$15 million , with seasonally stronger volume in$20 million Latin America andNorth America -
Operations and other costs are expected to increase by
to$5 million , mainly due to unabsorbed fixed costs while matching paper production with Sylvamo customer demand$10 million -
Input and transportation costs are projected to improve by
to$15 million , with favorable trends in fiber and chemicals$20 million -
Total planned maintenance outage expenses are expected to decrease by
$54 million
-
Price and mix are expected to decrease by
Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras
We achieved our second quarter earnings per share and adjusted EBITDA objectives. We delivered these results while facing challenging market conditions and during our heaviest planned maintenance outage quarter.
Our sales volumes were similar to the first quarter. The expected seasonal increase in volume did not materialize due to continued inventory corrections in
With respect to paper demand, we believe that our customers have completed the majority of their inventory corrections. We are now seeing very early indications that global advertising may be starting to rebound and we would expect demand in
In the second quarter, we returned
We now project adjusted EBITDA of
We will continue implementing our three-pronged strategy of commercial excellence, operational excellence and financial discipline. We expect to reduce costs and working capital to maximize earnings and free cash flow in the second half of the year. We will also continue to reinvest in our company to exit the downturn in an even stronger competitive position.
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 Condensed 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 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 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) |
Second
|
|
First
|
|
Second
|
||||
Net Sales |
$ |
919 |
|
$ |
941 |
* |
$ |
912 |
|
Net Income from Continuing Operations |
|
49 |
|
|
97 |
|
|
84 |
|
Net Income |
|
49 |
|
|
97 |
|
|
(59 |
) |
Business Segment Operating Profit |
|
82 |
|
|
166 |
|
|
142 |
|
Adjusted Operating Earnings |
|
49 |
|
|
108 |
|
|
90 |
|
Adjusted EBITDA |
|
124 |
|
|
208 |
|
|
189 |
|
Cash Provided By Operating Activities From Continuing Operations |
|
77 |
|
|
63 |
|
|
76 |
|
Free Cash Flow |
|
33 |
|
|
2 |
|
|
39 |
|
*Includes adjustment to eliminate intra-segment sales in |
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 8). Second quarter 2023 net sales by business segment and operating profit by business segment compared with the first quarter of 2023 and the second quarter of 2023 are as follows:
Business Segment Results |
|||||||||||
(In millions) |
Second
|
|
First
|
|
Second
|
||||||
Net Sales by Business Segment |
|
|
|
|
|
||||||
|
$ |
210 |
|
|
$ |
230 |
|
* |
$ |
135 |
|
|
|
250 |
|
|
|
222 |
|
|
|
249 |
|
|
|
474 |
|
|
|
505 |
|
|
|
549 |
|
Inter-segment Sales |
|
(15 |
) |
|
|
(16 |
) |
|
|
(21 |
) |
Net Sales |
$ |
919 |
|
|
$ |
941 |
|
|
$ |
912 |
|
Operating Profit by Business Segment |
|
|
|
|
|
||||||
|
$ |
(11 |
) |
|
$ |
23 |
|
|
$ |
17 |
|
|
|
48 |
|
|
|
46 |
|
|
|
59 |
|
|
|
45 |
|
|
|
97 |
|
|
|
66 |
|
Business Segment Operating Profit |
$ |
82 |
|
|
$ |
166 |
|
|
$ |
142 |
|
*Includes adjustment to eliminate intra-segment sales in |
Operating profits in the second quarter of 2023:
Effective Tax Rate
The reported effective tax rate for continuing operations for the second quarter of 2023 was
Excluding net special items, the effective tax rate for the second 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 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 second quarter of 2023 amounted to a net after-tax charge of
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 +1-877-336-4440 (
Replays are available at investors.sylvamo.com for one year and by phone for 90 days, beginning at approximately 2 p.m. EDT / 1 p.m. CDT 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 "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, 2022, filed with the
SYLVAMO CORPORATION Condensed Consolidated Statement of Operations Preliminary and Unaudited (In millions, except per share amounts) |
|||||||||||||||||
|
Three Months Ended June 30, |
|
Three Months
|
|
Six Months Ended June 30, |
|
|||||||||||
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
||||||||
Net Sales |
$ |
919 |
|
$ |
912 |
|
|
$ |
941 |
* |
$ |
1,860 |
|
$ |
1,733 |
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|||||||
Cost of products sold |
|
721 |
|
|
659 |
|
(g) |
|
670 |
*(d) |
|
1,390 |
(a) |
|
1,279 |
|
(g) |
Selling and administrative expenses |
|
76 |
|
|
81 |
|
(h) |
|
82 |
(e) |
|
159 |
(b) |
|
147 |
|
(h) |
Depreciation, amortization and cost of timber harvested |
|
34 |
|
|
32 |
|
|
|
35 |
|
|
69 |
|
|
63 |
|
|
Taxes other than payroll and income taxes |
|
6 |
|
|
6 |
|
|
|
6 |
|
|
12 |
|
|
12 |
|
|
Interest expense (income), net |
|
12 |
|
|
17 |
|
|
|
7 |
(f) |
|
19 |
(c) |
|
34 |
|
|
Income From Continuing Operations Before Income Taxes |
|
70 |
|
|
117 |
|
|
|
141 |
|
|
211 |
|
|
198 |
|
|
Income tax provision |
|
21 |
|
|
33 |
|
|
|
44 |
|
|
65 |
|
|
59 |
|
|
Net Income From Continuing Operations |
|
49 |
|
|
84 |
|
|
|
97 |
|
|
146 |
|
|
139 |
|
|
Discontinued operations, net of tax |
|
— |
|
|
(143 |
) |
(i) |
|
— |
|
|
— |
|
|
(172 |
) |
(j) |
Net Income (Loss) |
$ |
49 |
|
$ |
(59 |
) |
|
$ |
97 |
|
$ |
146 |
|
$ |
(33 |
) |
|
Basic Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|||||||
Income from continuing operations |
$ |
1.16 |
|
$ |
1.90 |
|
|
$ |
2.28 |
|
$ |
3.44 |
|
$ |
3.15 |
|
|
Discontinued operations, net of taxes |
|
— |
|
|
(3.24 |
) |
|
|
— |
|
|
— |
|
|
(3.90 |
) |
|
Net earnings (loss) |
$ |
1.16 |
|
$ |
(1.34 |
) |
|
$ |
2.28 |
|
$ |
3.44 |
|
$ |
(0.75 |
) |
|
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|||||||
Income from continuing operations |
$ |
1.14 |
|
$ |
1.89 |
|
|
$ |
2.25 |
|
$ |
3.40 |
|
$ |
3.13 |
|
|
Discontinued operations, net of taxes |
|
— |
|
|
(3.22 |
) |
|
|
— |
|
|
— |
|
|
(3.87 |
) |
|
Net earnings (loss) |
$ |
1.14 |
|
$ |
(1.33 |
) |
|
$ |
2.25 |
|
$ |
3.40 |
|
$ |
(0.74 |
) |
|
Average Shares of Common Stock Outstanding - Diluted |
|
43 |
|
|
44 |
|
|
|
43 |
|
|
43 |
|
|
44 |
|
|
The accompanying notes are an integral part of this condensed consolidated statement of operations. |
||
|
|
|
*Includes adjustment to eliminate intra-segment sales in |
||
|
|
|
Six Months Ended June 30, 2023 | ||
|
|
|
(a) |
Includes incremental expense of |
|
(b) |
Includes a pre-tax loss of |
|
(c) |
Includes |
|
|
|
|
Three Months Ended March 31, 2023 | ||
|
|
|
(d) |
Includes incremental expense of |
|
(e) |
Includes a pre-tax loss of |
|
(f) |
Includes |
|
|
|
|
Three Months and Six Months Ended June 30, 2022 | ||
|
|
|
(g) |
Includes pre-tax gain of |
|
(h) |
Includes pre-tax loss of |
|
(i) |
Includes a pre-tax charge of |
|
(j) |
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 June 30, |
|
Three Months Ended March 31, 2023 |
|
Six Months Ended June 30, |
|||||||||||
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
||||||||
Net Income (Loss) |
$ |
49 |
|
$ |
(59 |
) |
|
$ |
97 |
|
$ |
146 |
|
$ |
(33 |
) |
Less: Discontinued operations, net of tax |
|
— |
|
|
(143 |
) |
|
|
— |
|
|
— |
|
|
(172 |
) |
Net income From Continuing Operations |
|
49 |
|
|
84 |
|
|
|
97 |
|
|
146 |
|
|
139 |
|
Add back: Net special items expense (income) |
|
— |
|
|
6 |
|
|
|
11 |
|
|
11 |
|
|
10 |
|
Adjusted Operating Earnings |
$ |
49 |
|
$ |
90 |
|
|
$ |
108 |
|
$ |
157 |
|
$ |
149 |
|
|
Three Months Ended June 30, |
|
Three Months Ended March 31, 2023 |
|
Six Months Ended June 30, |
|||||||||||
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
||||
Diluted Earnings (Loss) Per Common Share as Reported |
$ |
1.14 |
|
$ |
(1.33 |
) |
|
$ |
2.25 |
|
$ |
3.40 |
|
$ |
(0.74 |
) |
Less: Discontinued operations, net of tax |
|
— |
|
|
(3.22 |
) |
|
|
— |
|
|
— |
|
|
(3.87 |
) |
Continuing Operations |
|
1.14 |
|
|
1.89 |
|
|
|
2.25 |
|
|
3.40 |
|
|
3.13 |
|
Add back: Net special items expense (income) |
|
— |
|
|
0.13 |
|
|
|
0.26 |
|
|
0.25 |
|
|
0.23 |
|
Adjusted Operating Earnings Per Share |
$ |
1.14 |
|
$ |
2.02 |
|
|
$ |
2.51 |
|
$ |
3.65 |
|
$ |
3.36 |
|
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, 2023 |
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
|
$ |
210 |
|
|
$ |
135 |
|
|
$ |
230 |
|
* |
$ |
440 |
|
|
$ |
252 |
|
|
|
250 |
|
|
|
249 |
|
|
|
222 |
|
|
|
472 |
|
|
|
464 |
|
|
|
474 |
|
|
|
549 |
|
|
|
505 |
|
|
|
979 |
|
|
|
1,057 |
|
Inter-segment Sales |
|
(15 |
) |
|
|
(21 |
) |
|
|
(16 |
) |
|
|
(31 |
) |
|
|
(40 |
) |
Net Sales |
$ |
919 |
|
|
$ |
912 |
|
|
$ |
941 |
|
|
$ |
1,860 |
|
|
$ |
1,733 |
|
*Includes adjustment to eliminate intra-segment sales in |
Operating Profit by Business Segment |
||||||||||||||||
|
Three Months Ended June 30, |
|
Three Months Ended March 31, 2023 |
|
Six Months Ended June 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
2022 |
|
|||||
|
$ |
(11 |
) |
|
$ |
17 |
|
$ |
23 |
|
$ |
12 |
|
$ |
19 |
|
|
|
48 |
|
|
|
59 |
|
|
46 |
|
|
94 |
|
|
98 |
|
|
|
45 |
|
|
|
66 |
|
|
97 |
|
|
142 |
|
|
128 |
|
Business Segment Operating Profit |
$ |
82 |
|
|
$ |
142 |
|
$ |
166 |
|
$ |
248 |
|
$ |
245 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income from Continuing Operations Before Income Taxes |
$ |
70 |
|
|
$ |
117 |
|
$ |
141 |
|
$ |
211 |
|
$ |
198 |
|
Interest expense (income), net |
|
12 |
|
|
|
17 |
|
|
7 |
(c) |
|
19 |
(a) |
|
34 |
|
Net special items expense (income) |
|
— |
|
|
|
8 |
(e) |
|
18 |
(d) |
|
18 |
(b) |
|
13 |
(e) |
Business Segment Operating Profit (f) |
$ |
82 |
|
|
$ |
142 |
|
$ |
166 |
|
$ |
248 |
|
$ |
245 |
|
Six Months Ended June 30, 2023 | ||
|
|
|
(a) |
Includes |
|
|
|
|
(b) |
Includes a pre-tax loss of |
|
|
|
|
Three Months Ended March 31, 2023 | ||
|
|
|
(c) |
Includes |
|
|
|
|
(d) |
Includes a pre-tax loss of |
|
|
|
|
Three Months Ended and Six Months Ended June 30, 2022 | ||
|
|
|
(e) |
Includes pre-tax loss 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 June 30, |
|
Three Months Ended March 31, 2023 |
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Net Income (Loss) |
$ |
49 |
|
|
$ |
(59 |
) |
|
$ |
97 |
|
|
$ |
146 |
|
|
$ |
(33 |
) |
Less: Discontinued operations, net of tax |
|
— |
|
|
|
(143 |
) |
|
|
— |
|
|
|
— |
|
|
|
(172 |
) |
Net Income From Continuing Operations |
|
49 |
|
|
|
84 |
|
|
|
97 |
|
|
|
146 |
|
|
|
139 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision |
|
21 |
|
|
|
33 |
|
|
|
44 |
|
|
|
65 |
|
|
|
59 |
|
Interest expense (income), net |
|
12 |
|
|
|
17 |
|
|
|
7 |
|
|
|
19 |
|
|
|
34 |
|
Depreciation, amortization and cost of timber harvested |
|
34 |
|
|
|
32 |
|
|
|
35 |
|
|
|
69 |
|
|
|
63 |
|
Stock-based compensation |
|
8 |
|
|
|
7 |
|
|
|
7 |
|
|
|
15 |
|
|
|
11 |
|
Transition service agreement expense |
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
Net special items expense (income) |
|
— |
|
|
|
8 |
|
|
|
18 |
|
|
|
18 |
|
|
|
13 |
|
Adjusted EBITDA |
$ |
124 |
|
|
$ |
189 |
|
|
$ |
208 |
|
|
$ |
332 |
|
|
$ |
335 |
|
Net Sales |
$ |
919 |
|
|
$ |
912 |
|
|
$ |
941 |
|
* |
$ |
1,860 |
|
|
$ |
1,733 |
|
Adjusted EBITDA Margin |
|
13.5 |
% |
|
|
20.7 |
% |
|
|
22.1 |
% |
|
|
17.8 |
% |
|
|
19.3 |
% |
*Includes adjustment to eliminate intra-segment sales in |
Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment |
|||||||||||||||||||
|
Three Months Ended June 30, |
|
Three Months Ended March 31, 2023 |
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
(3 |
) |
|
$ |
22 |
|
|
$ |
31 |
|
|
$ |
28 |
|
|
$ |
30 |
|
|
|
67 |
|
|
|
79 |
|
|
|
63 |
|
|
|
130 |
|
|
|
135 |
|
|
|
60 |
|
|
|
88 |
|
|
|
114 |
|
|
|
174 |
|
|
|
170 |
|
Total Business Segment Adjusted EBITDA |
$ |
124 |
|
|
$ |
189 |
|
|
$ |
208 |
|
|
$ |
332 |
|
|
$ |
335 |
|
Net Sales (excluding discontinued operations and inter-segment sales eliminations) |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
210 |
|
|
$ |
135 |
|
|
$ |
230 |
|
* |
$ |
440 |
|
|
$ |
252 |
|
|
|
250 |
|
|
|
249 |
|
|
|
222 |
|
|
|
472 |
|
|
|
464 |
|
|
|
474 |
|
|
|
549 |
|
|
|
505 |
|
|
|
979 |
|
|
|
1,057 |
|
Total Business Segment Net Sales |
$ |
934 |
|
|
$ |
933 |
|
|
$ |
957 |
|
|
$ |
1,891 |
|
|
$ |
1,773 |
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(1 |
)% |
|
|
16 |
% |
|
|
13 |
% |
|
|
6 |
% |
|
|
12 |
% |
|
|
27 |
% |
|
|
32 |
% |
|
|
28 |
% |
|
|
28 |
% |
|
|
29 |
% |
|
|
13 |
% |
|
|
16 |
% |
|
|
23 |
% |
|
|
18 |
% |
|
|
16 |
% |
*Includes adjustment to eliminate intra-segment sales in |
SYLVAMO CORPORATION Condensed Consolidated Balance Sheet Preliminary and Unaudited (In millions) |
|||||||
|
June 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and temporary investments |
$ |
164 |
|
|
$ |
360 |
|
Accounts and notes receivable, net |
|
440 |
|
|
|
450 |
|
Contract assets |
|
32 |
|
|
|
30 |
|
Inventories |
|
486 |
|
|
|
364 |
|
Other current assets |
|
39 |
|
|
|
39 |
|
Total Current Assets |
|
1,161 |
|
|
|
1,243 |
|
Plants, Properties and Equipment, Net |
|
960 |
|
|
|
817 |
|
Forestlands |
|
360 |
|
|
|
322 |
|
Goodwill |
|
140 |
|
|
|
128 |
|
Right of Use Assets |
|
43 |
|
|
|
35 |
|
Deferred Charges and Other Assets |
|
159 |
|
|
|
165 |
|
Total Assets |
$ |
2,823 |
|
|
$ |
2,710 |
|
Liabilities and Equity |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
391 |
|
|
$ |
453 |
|
Notes payable and current maturities of long-term debt |
|
79 |
|
|
|
29 |
|
Accrued payroll and benefits |
|
50 |
|
|
|
81 |
|
Other current liabilities |
|
147 |
|
|
|
165 |
|
Total Current Liabilities |
|
667 |
|
|
|
728 |
|
Long-Term Debt |
|
954 |
|
|
|
1,003 |
|
Deferred Income Taxes |
|
212 |
|
|
|
183 |
|
Other Liabilities |
|
128 |
|
|
|
118 |
|
Equity |
|
|
|
||||
Common stock, |
|
45 |
|
|
|
44 |
|
Paid-In Capital |
|
39 |
|
|
|
25 |
|
Retained Earnings |
|
2,153 |
|
|
|
2,029 |
|
Accumulated Other Comprehensive Loss |
|
(1,248 |
) |
|
|
(1,338 |
) |
|
|
989 |
|
|
|
760 |
|
Less: Common stock held in treasury, at cost, 2.6 shares and 1.6 shares at June 30, 2023 and December 31, 2022, respectively |
|
(127 |
) |
|
|
(82 |
) |
Total Equity |
|
862 |
|
|
|
678 |
|
Total Liabilities and Equity |
$ |
2,823 |
|
|
$ |
2,710 |
|
Condensed Consolidated Statement of Cash Flows Preliminary and Unaudited (In millions) |
|||||||
|
Six Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
Operating Activities |
|
|
|
||||
Net income from continuing operations |
$ |
146 |
|
|
$ |
139 |
|
Depreciation, amortization, and cost of timber harvested |
|
69 |
|
|
|
63 |
|
Deferred income tax provision (benefit), net |
|
4 |
|
|
|
2 |
|
Stock-based compensation |
|
15 |
|
|
|
11 |
|
Changes in operating assets and liabilities and other |
|
|
|
||||
Accounts and notes receivable |
|
91 |
|
|
|
(58 |
) |
Inventories |
|
(60 |
) |
|
|
(33 |
) |
Accounts payable and accrued liabilities |
|
(147 |
) |
|
|
(31 |
) |
Other |
|
22 |
|
|
|
37 |
|
Cash Provided By Operating Activities from Continuing Operations |
|
140 |
|
|
|
130 |
|
Cash Provided By Operating Activities from Discontinued Operations, net |
|
— |
|
|
|
45 |
|
Cash Provided By Operating Activities |
|
140 |
|
|
|
175 |
|
Investment Activities |
|
|
|
||||
Invested in capital projects |
|
(105 |
) |
|
|
(59 |
) |
Acquisition of business |
|
(167 |
) |
|
|
— |
|
Cash Provided By (Used for) Investment Activities from Continuing Operations |
|
(272 |
) |
|
|
(59 |
) |
Cash Provided By (Used for) Investment Activities from Discontinued Operations, net |
|
— |
|
|
|
(5 |
) |
Cash Provided By (Used for) Investment Activities |
|
(272 |
) |
|
|
(64 |
) |
Financing Activities |
|
|
|
||||
Dividends paid |
|
(21 |
) |
|
|
— |
|
Issuance of debt |
|
437 |
|
|
|
— |
|
Reduction of debt |
|
(443 |
) |
|
|
(86 |
) |
Repurchases of common stock |
|
(40 |
) |
|
|
— |
|
Other |
|
(6 |
) |
|
|
(6 |
) |
Cash Provided By (Used for) Financing Activities from Continuing Operations |
|
(73 |
) |
|
|
(92 |
) |
Cash Provided By (Used for) Financing Activities from Discontinued Operations, net |
|
— |
|
|
|
— |
|
Cash Provided By (Used for) Financing Activities |
|
(73 |
) |
|
|
(92 |
) |
Effect of Exchange Rate Changes on Cash |
|
9 |
|
|
|
42 |
|
Change in Cash Included in Assets Held for Sale |
|
— |
|
|
|
63 |
|
Change in Cash and Temporary Investments |
|
(196 |
) |
|
|
(2 |
) |
Cash and Temporary Investments |
|
|
|
||||
Beginning of the period |
|
360 |
|
|
|
159 |
|
End of the period |
$ |
164 |
|
|
$ |
157 |
|
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, 2023 |
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Cash Provided By Operating Activities From Continuing Operations |
$ |
77 |
|
|
$ |
76 |
|
|
$ |
63 |
|
|
$ |
140 |
|
|
$ |
130 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash invested in capital projects |
|
(44 |
) |
|
|
(37 |
) |
|
|
(61 |
) |
|
|
(105 |
) |
|
|
(59 |
) |
Free Cash Flow |
$ |
33 |
|
|
$ |
39 |
|
|
$ |
2 |
|
|
$ |
35 |
|
|
$ |
71 |
|
Reconciliation of Net Income From Continuing Operations to Adjusted EBITDA - 2023 Outlook Estimates (In millions) |
|||
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
||
Net Income From Continuing Operations |
|
|
|
Adjustments: |
|
|
|
Income tax provision |
19 - 25 |
|
94 - 105 |
Interest expense (income), net |
12 |
|
43 |
Depreciation, amortization and cost of timber harvested |
38 |
|
145 |
Stock-based compensation |
7 |
|
28 |
Net Special items expense |
7 |
|
24 - 29 |
Adjusted EBITDA |
|
|
|
Reconciliation of Cash Provided by Operations to Free Cash Flow - 2023 Outlook Estimates (In millions) |
|
|
Twelve Months Ended
|
|
|
Cash Provided By Operating Activities From Continuing Operations |
|
Adjustments: |
|
Cash invested in capital projects |
(215 - 230) |
Free Cash Flow |
|
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/20230809192612/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