Slower Demand Recovery Drives Revised Annual
Outlook, Company Remains Committed to $125 Million in Cash
Returns
Sylvamo (NYSE: SLVM), the world’s paper company, is releasing
second quarter 2023 earnings.
Financial Highlights – Second Quarter vs. First
Quarter
- Net income from continuing operations of $49 million ($1.14 per
diluted share) vs. $97 million ($2.25 per diluted share)
- Adjusted operating earnings1 (non-GAAP) of $49 million ($1.14
per diluted share) vs. $108 million ($2.51 per diluted share)
- 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 $77 million vs. $63 million
- Free cash flow3 (non-GAAP) of $33 million vs. $2 million
Commercial and Operational Highlights – Second Quarter vs.
First Quarter
- Price and mix decreased by $38 million due primarily to lower
paper prices in Europe, less favorable mix in Latin America and
North America and lower global pulp prices
- Volume decreased by $2 million due to lower paper demand in
North America and continued channel inventory corrections in Europe
and North America, which more than offset seasonally stronger
demand in Latin America
- Operations and other costs increased by $10 million, primarily
driven by $15 million in higher unabsorbed fixed costs from
increased economic downtime
- Planned maintenance outage expenses increased by $58 million,
in line with guidance, during the heaviest outage quarter of the
year
- Input costs improved by $24 million, driven by favorable
energy, chemical and transportation costs
Third Quarter Outlook
- Adjusted EBITDA of $130 million to $150 million
- Compared to the second quarter:
- Price and mix are expected to decrease by $60 million to $65
million
- Volume is projected to improve by $15 million to $20 million,
with seasonally stronger volume in Latin America and North
America
- Operations and other costs are expected to increase by $5
million to $10 million, mainly due to unabsorbed fixed costs while
matching paper production with Sylvamo customer demand
- Input and transportation costs are projected to improve by $15
million to $20 million, with favorable trends in fiber and
chemicals
- Total planned maintenance outage expenses are expected to
decrease by $54 million
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 Europe and North America,
decreased demand due to Europe’s slowing economies and economic
uncertainty in North America. Consequently, during the second
quarter in Europe and North America, we took approximately 120,000
tons of economic downtime, roughly double the first quarter level.
We also conducted extensive annual maintenance outages, which we
executed safely and efficiently.
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 Europe and North
America to begin to improve.
In the second quarter, we returned $41 million of cash to
shareowners through dividends and share repurchases for a total of
$61 million in cash returns in the first half of 2023. Our board of
directors declared a quarterly dividend of $0.25 per share for the
third quarter, which we paid July 6. We remain committed to
returning a total of $125 million in cash to shareowners this
year.
We now project adjusted EBITDA of $560 million to $600 million
(formerly $720 million to $770 million) for 2023, reflecting lower
paper demand and inventory channel corrections in Europe and North
America, updated views on pulp and paper price and mix as well as
higher unabsorbed fixed costs. These more than offset favorable
input, transportation and operation cost trends. We continue to
focus on free cash flow generation and now project free cash flow
of $220 million to $250 million (formerly $250 million to $280
million.)
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 Quarter 2023
First Quarter 2023
Second Quarter 2022
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 Europe
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 Quarter 2023
First Quarter 2023
Second Quarter 2022
Net Sales by Business Segment
Europe
$
210
$
230
*
$
135
Latin America
250
222
249
North America
474
505
549
Inter-segment Sales
(15
)
(16
)
(21
)
Net Sales
$
919
$
941
$
912
Operating Profit by Business
Segment
Europe
$
(11
)
$
23
$
17
Latin America
48
46
59
North America
45
97
66
Business Segment Operating
Profit
$
82
$
166
$
142
*Includes adjustment to eliminate
intra-segment sales in Europe
Operating profits in the second quarter of 2023:
Europe - $(11) million compared with $23 million
in the first quarter of 2023. Earnings were lower as lower
operating and input costs were more than offset by lower price and
mix, higher planned maintenance outages, higher unabsorbed costs
due to economic downtime and lower operating profit contributed by
Nymolla.
Latin America - $48 million compared with $46 million in
the first quarter of 2023. Earnings were slightly higher as higher
volumes and lower operating and input costs more than offset lower
price and mix and higher planned maintenance outages.
North America - $45 million compared with $97
million in the first quarter of 2023. Earnings were lower as lower
input costs were more than offset by lower price and mix, lower
volumes, higher planned maintenance outages and higher unabsorbed
costs due to economic downtime.
Effective Tax Rate
The reported effective tax rate for continuing operations for
the second quarter of 2023 was 30%, compared to 31% for the first
quarter of 2023. The lower rate for the second quarter was due to
the mix of earnings in our regions.
Excluding net special items, the effective tax rate for the
second quarter of 2023 was 30%, compared with 30% for the first
quarter of 2023.
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 $0 million
($0.00 per diluted share) compared with net after-tax income of $11
million ($0.26 per diluted share) in the first quarter of 2023.
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
(U.S.) or +1-409-207-6984 (international) and use access code
763504. 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 3453720.
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 2022 were $3.6 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, 2022, 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.
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, 2023
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 Europe
Six Months Ended June 30, 2023
(a)
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.
(b)
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.
(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.
Three Months Ended March 31, 2023
(d)
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 quarter.
(e)
Includes a pre-tax loss of $4 million ($3
million after taxes) for transaction costs related to the Nym�lla
acquisition and pre-tax loss of $4 million ($3 million after taxes)
for professional and legal fees related to negotiations resulting
in a shareholder cooperation agreement.
(f)
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.
Three Months and Six Months Ended June 30, 2022
(g)
Includes pre-tax gain of $1 million ($1
million after taxes) for the three months ended June 30, 2022, and
a pre-tax loss of $1 million ($1 million after taxes) for the six
months ended June 30, 2022, for one-time costs associated with the
spin-off.
(h)
Includes pre-tax loss of $9 million ($7
million after taxes) for the three months ended June 30, 2022, and
a pre-tax loss of $12 million ($9 million after taxes) for the six
months ended June 30, 2022, for one-time costs associated with the
spin-off.
(i)
Includes a pre-tax charge of $156 million
($156 million after taxes) to reserve for the elimination of the
cumulative foreign currency translation loss related to our Russian
operations.
(j)
Includes a pre-tax charge of $156 million
($156 million after taxes) to reserve for the elimination of the
cumulative foreign currency translation loss related to our Russian
operations and a pre-tax charge of $68 million ($57 million after
taxes) related to the impairment of our Russian fixed assets.
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
Europe
$
210
$
135
$
230
*
$
440
$
252
Latin America
250
249
222
472
464
North America
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 Europe
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
Europe
$
(11
)
$
17
$
23
$
12
$
19
Latin America
48
59
46
94
98
North America
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 $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.
(b)
Includes a pre-tax loss of $4 million ($3
million after taxes) for transaction 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.
Three Months Ended March 31, 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 a pre-tax loss of $4 million ($3
million after taxes) for transaction 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 quarter.
Three Months Ended and Six Months Ended June 30, 2022
(e)
Includes pre-tax loss of $8 million ($6
million after taxes) for the three months ended June 30, 2022, and
a pre-tax loss of $13 million ($10 million after taxes) for the six
months ended June 30, 2022, for one-time costs associated with the
spin-off.
(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 Europe
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
Europe
$
(3
)
$
22
$
31
$
28
$
30
Latin America
67
79
63
130
135
North America
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)
Europe
$
210
$
135
$
230
*
$
440
$
252
Latin America
250
249
222
472
464
North America
474
549
505
979
1,057
Total Business Segment Net
Sales
$
934
$
933
$
957
$
1,891
$
1,773
Adjusted EBITDA Margin
Europe
(1
)%
16
%
13
%
6
%
12
%
Latin America
27
%
32
%
28
%
28
%
29
%
North America
13
%
16
%
23
%
18
%
16
%
*Includes adjustment to eliminate
intra-segment sales in Europe
SYLVAMO CORPORATION
Condensed Consolidated Balance
Sheet
Preliminary and Unaudited
(In millions)
June 30, 2023
December 31, 2022
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, $1 par value, 200.0 shares
authorized, 44.5 shares and 44.2 shares issued and 41.9 shares and
42.6 shares outstanding at June 30, 2023 and December 31, 2022,
respectively
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 June
30,
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
September 30, 2023
Twelve Months Ended
December 31, 2023
Net Income From Continuing
Operations
$47 - $61
$226 - $250
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
$130 - $150
$560 - $600
Reconciliation of Cash
Provided by Operations to Free Cash Flow - 2023 Outlook
Estimates
(In millions)
Twelve Months Ended
December 31, 2023
Cash Provided By Operating Activities
From Continuing Operations
$435 - $480
Adjustments:
Cash invested in capital projects
(215 - 230)
Free Cash Flow
$220 - $250
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/20230809192612/en/
Investor Contact: Hans Bjorkman, 901-519-8030,
hans.bjorkman@sylvamo.com Media Contact: Adam Ghassemi,
901-519-8115, adam.ghassemi@sylvamo.com
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