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     105  0 Kommentare Sylvamo Quarterly Results Higher Than Guidance, Cost Reduction Program Announced

    Sylvamo (NYSE: SLVM), the world’s paper company, is releasing third quarter 2023 earnings.

    Financial Highlights – Third Quarter vs. Second Quarter

    • Net income from continuing operations of $58 million ($1.37 per diluted share) vs. $49 million ($1.14 per diluted share)
    • Adjusted operating earnings1 (non-GAAP) of $72 million ($1.70 per diluted share) vs. $49 million ($1.14 per diluted share)
    • Adjusted EBITDA2 (non-GAAP) of $158 million (18% margin) vs. $124 million (14% margin)
    • Cash provided by operating activities from continuing operations of $197 million vs. $77 million
    • Free cash flow3 (non-GAAP) of $155 million vs. $33 million

    Commercial and Operational Highlights – Third Quarter vs. Second Quarter

    • Price and mix decreased by $55 million due primarily to lower paper prices in Europe and on exports from Latin America, as well as lower global pulp prices
    • Volume increased by $6 million due to increases in Latin America and North America
    • Operations and other costs improved by $1 million due to better operating and supply chain results offset by $13 million in higher unabsorbed fixed costs from increased economic downtime
    • Planned maintenance outage expenses decreased by $55 million
    • Input costs improved by $27 million driven by favorable fiber, chemical and transportation costs

    Fourth Quarter Outlook

    • Adjusted EBITDA of $90 million to $110 million
    • Compared to the third quarter:
      • Price and mix are expected to decrease by $20 million to $25 million, primarily reflecting prior paper price decreases in Europe and unfavorable geographic mix in Latin America and North America
      • Volume is projected to improve by $20 million to $25 million, with seasonally stronger volume in Latin America and positive trends in North America
      • Operations and other costs are expected to increase by $25 million to $30 million due primarily to seasonally higher costs in Europe and North America
      • Input and transportation costs are projected to increase by $5 million to $10 million, mainly due to seasonally higher energy
      • Total planned maintenance outage expenses are expected to increase by $25 million

    Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras

    Third quarter earnings were higher than our outlook. We took measures to maximize free cash flow, including selling and administrative cost reductions, shrinking working capital and adjusting the timing of capital spending. We now expect free cash flow for the year to be more than $270 million.

    By the end of the third quarter, we returned $85 million to shareowners this year. In the third quarter, we also deposited $60 million in escrow to remove cash return limits in our credit agreement. As of Nov. 9, we have returned $110 million this year and plan to return a total of $125 million in 2023.

    Lesen Sie auch

    Our board of directors increased our regular dividend by 20%, declaring a fourth quarter $0.30 per share dividend and a special $0.30 per share dividend. We paid both, totaling $25 million, Oct. 17. The board also authorized an incremental $150 million share repurchase program. At the end of the third quarter, the May 2022 and September 2023 authorizations collectively had $167 million remaining. We will continue to look for opportunities to repurchase shares at attractive prices.

    Sylvamo competes as a low-cost producer of commodity products sold in mature-demand, cyclical markets. In the spirit of continuous improvement, we initiated a cost reduction program called Project Horizon. The project will streamline our organization and cost structures and make us a leaner, stronger company.

    Before inflation, we are targeting run rate savings of at least $110 million by the end of 2024. Approximately two-thirds of the target will come from operational improvements in our mills and supply chains. The balance will consist of selling and administrative cost reductions, including the elimination of approximately 150 positions, or nearly 7% of our global salaried workforce.

    Since becoming an independent company just over two years ago, we note a few key milestones:

    • Improved our financial position by reducing debt 35%
    • Generated more than $1.3 billion in adjusted EBITDA (19% margin) and $568 million in free cash flow
    • Returned $200 million in cash to our shareowners

    We remain focused on uncoated freesheet and will create long-term value through our talented teams, iconic brands and low-cost mills in favorable locations. Sylvamo is a cash flow story. We will continue to leverage our strengths to drive high returns on invested capital, generate free cash flow and use that cash to increase shareowner value by maintaining a strong financial position, returning cash to shareowners and reinvesting in our business.

    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)

    Third
    Quarter
    2023

     

    Second
    Quarter
    2023

     

    Third
    Quarter
    2022

    Net Sales

    $

    897

     

    $

    919

     

    $

    968

    Net Income from Continuing Operations

     

    58

     

     

    49

     

     

    109

    Net Income

     

    58

     

     

    49

     

     

    57

    Business Segment Operating Profit

     

    116

     

     

    82

     

     

    175

    Adjusted Operating Earnings

     

    72

     

     

    49

     

     

    112

    Adjusted EBITDA

     

    158

     

     

    124

     

     

    216

    Cash Provided By Operating Activities From Continuing Operations

     

    197

     

     

    77

     

     

    146

    Free Cash Flow

     

    155

     

     

    33

     

     

    114

    Segment Information

    Sylvamo uses business segment operating profit to measure the earnings performance of its businesses and is calculated as set forth in footnote (d) under the "Sales and Earnings by Business Segment" table (page 8). Third quarter 2023 net sales by business segment and operating profit by business segment compared with the second quarter of 2023 and the third quarter of 2022 are as follows:

    Business Segment Results

     

    (In millions)

    Third
    Quarter
    2023

     

    Second
    Quarter
    2023

     

    Third
    Quarter
    2022

    Net Sales by Business Segment

     

     

     

     

     

    Europe

    $

    184

     

     

    $

    210

     

     

    $

    130

     

    Latin America

     

    246

     

     

     

    250

     

     

     

    270

     

    North America

     

    476

     

     

     

    474

     

     

     

    589

     

    Inter-segment Sales

     

    (9

    )

     

     

    (15

    )

     

     

    (21

    )

    Net Sales

    $

    897

     

     

    $

    919

     

     

    $

    968

     

    Operating Profit by Business Segment

     

     

     

     

     

    Europe

    $

    (14

    )

     

    $

    (11

    )

     

    $

    19

     

    Latin America

     

    55

     

     

     

    48

     

     

     

    58

     

    North America

     

    75

     

     

     

    45

     

     

     

    98

     

    Business Segment Operating Profit

    $

    116

     

     

    $

    82

     

     

    $

    175

     

    Operating profits in the third quarter of 2023:

    Europe - $(14) million compared with $(11) million in the second quarter of 2023. Earnings were slightly lower as lower planned maintenance outages and lower input costs were more than offset by lower price and mix and higher unabsorbed costs due to economic downtime.

    Latin America - $55 million compared with $48 million in the second quarter of 2023. Earnings were higher as lower operating and input costs and lower planned maintenance outages more than offset lower export price and mix.

    North America - $75 million compared with $45 million in the second quarter of 2023. Earnings were higher as lower operating and input costs, higher volumes and lower planned maintenance outages more than offset lower price and mix and higher unabsorbed costs due to economic downtime.

    Effective Tax Rate

    The reported effective tax rate for continuing operations for the third quarter of 2023 was 36%, compared to 30% for the second quarter of 2023. The higher rate for the third quarter was due to a change in estimated Annual Effective Tax Rate (AETR) to reduce the expected benefit of foreign tax attributes and also a mix of earnings in our regions.

    Excluding net special items, the effective tax rate for the third quarter of 2023 was 33%, compared with 30% for the second 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 third quarter of 2023 amounted to a net after-tax charge of $14 million ($0.33 per diluted share) compared with net after-tax income of $0 million ($0.00 per diluted share) in the second quarter of 2023.

    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 (U.S.) or +1-409-207-6984 (international) and use access code 763504. Participants should call in no later than 9:45 a.m. EST / 8:45 a.m. CST.

    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 (U.S.) or +1-402-970-0847 (international) and use access code 7814753.

    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 "Fourth 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

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

     

    2023

     

    2022

     

     

    2023

     

    2022

     

    Net Sales

    $

    897

     

     

    $

    968

     

     

    $

    919

     

    $

    2,757

     

     

    $

    2,701

     

     

    Costs and Expenses

     

     

     

     

     

     

     

     

     

     

    Cost of products sold

     

    665

    (a)

     

    687

     

    (e)

     

    721

     

     

    2,055

    (a)

     

    1,965

     

    (e)

    Selling and administrative expenses

     

    89

     

    (b)

     

    80

     

    (f)

     

    76

     

     

    248

     

    (b)

     

    227

     

    (f)

    Depreciation, amortization and cost of timber harvested

     

    36

     

     

     

    30

     

     

     

    34

     

     

    105

     

     

     

    94

     

     

    Taxes other than payroll and income taxes

     

    7

     

     

     

    6

     

     

     

    6

     

     

    19

     

     

     

    18

     

     

    Interest expense (income), net

     

    9

     

     

     

    18

     

     

     

    12

     

     

    28

     

    (d)

     

    52

     

     

    Income From Continuing Operations Before Income Taxes

     

    91

     

     

     

    147

     

     

     

    70

     

     

    302

     

     

     

    345

     

     

    Income tax provision

     

    33

     

    (c)

     

    38

     

    (g)

     

    21

     

     

    98

     

    (c)

     

    97

     

    (g)

    Net Income From Continuing Operations

     

    58

     

     

     

    109

     

     

     

    49

     

     

    204

     

     

     

    248

     

     

    Discontinued operations, net of tax

     

     

     

     

    (52

    )

    (h)

     

     

     

     

     

     

    (224

    )

    (i)

    Net Income (Loss)

    $

    58

     

     

    $

    57

     

     

    $

    49

     

    $

    204

     

     

    $

    24

     

     

    Basic Earnings Per Share

     

     

     

     

     

     

     

     

     

     

    Income from continuing operations

    $

    1.39

     

     

    $

    2.47

     

     

    $

    1.16

     

    $

    4.83

     

     

    $

    5.62

     

     

    Discontinued operations, net of taxes

     

     

     

     

    (1.18

    )

     

     

     

     

     

     

     

    (5.08

    )

     

    Net earnings (loss)

    $

    1.39

     

     

    $

    1.29

     

     

    $

    1.16

     

    $

    4.83

     

     

    $

    0.54

     

     

    Diluted Earnings Per Share

     

     

     

     

     

     

     

     

     

     

    Income from continuing operations

    $

    1.37

     

     

    $

    2.44

     

     

    $

    1.14

     

    $

    4.77

     

     

    $

    5.58

     

     

    Discontinued operations, net of taxes

     

     

     

     

    (1.16

    )

     

     

     

     

     

     

     

    (5.04

    )

     

    Net earnings (loss)

    $

    1.37

     

     

    $

    1.28

     

     

    $

    1.14

     

    $

    4.77

     

     

    $

    0.54

     

     

    Average Shares of Common Stock Outstanding - Diluted

     

    42

     

     

     

    45

     

     

     

    43

     

     

    43

     

     

     

    44

     

     

    The accompanying notes are an integral part of this condensed consolidated statement of operations.

    Three Months and Nine Months Ended September 30, 2023

    (a)

    Includes pre-tax loss of $3 million ($2 million after taxes) for the three and nine months ended September 30, 2023, for certain severance costs related to our salaried workforce and incremental expense of $9 million ($7 million after taxes) for the nine months ended September 30, 2023, related to the impact of the step-up of acquired Nymölla inventory sold during the first quarter.

     

     

    (b)

    Includes a pre-tax loss of $10 million ($8 million after taxes) for the three months and nine months ended September 30, 2023, for certain severance costs related to our salaried workforce. Also includes pre-tax loss of $3 million ($2 million after taxes) for the three months ended September 30, 2023, and a pre-tax loss of $8 million ($6 million after taxes) for the nine months ended September 30, 2023, for transaction costs related to the Nymölla acquisition. Finally, includes a pre-tax loss of $4 million ($3 million after taxes) for the nine months ended September 30, 2023 for professional and legal fees related to negotiations resulting in a shareholder cooperation agreement.

     

     

    (c)

    Includes a $2 million tax expense for the three and nine months ended September 30, 2023 related to the write-off of certain deferred tax assets.

     

     

    (d)

    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 for the nine months ended September 30, 2023.

     

     

    Three Months and Nine Months Ended September 30, 2022

     

     

    (e)

    Includes pre-tax loss of $3 million ($2 million after taxes) for the three months ended September 30, 2022, and a pre-tax loss of $4 million ($3 million after taxes) for the nine months ended September 30, 2022, for one-time costs associated with the spin-off.

     

     

    (f)

    Includes pre-tax loss of $7 million ($5 million after taxes) for the three months ended September 30, 2022, and a pre-tax loss of $19 million ($14 million after taxes) for the nine months ended September 30, 2022, for one-time costs associated with the spin-off.

     

     

    (g)

    Includes a $4 million tax benefit related to the reversal of a valuation allowance on foreign deferred tax assets.

     

     

    (h)

    Includes a pre-tax charge of $78 million ($78 million after taxes) to reserve for the elimination of the cumulative foreign currency translation loss related to our Russian operations.

     

     

    (i)

    Includes a pre-tax charge of $234 million ($234 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

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

    2023

     

    2022

     

     

    2023

     

    2022

    Net Income (Loss)

    $

    58

     

    $

    57

     

     

    $

    49

     

    $

    204

     

    $

    24

     

    Less: Discontinued operations, net of tax

     

     

     

    (52

    )

     

     

     

     

     

     

    (224

    )

    Net income From Continuing Operations

     

    58

     

     

    109

     

     

     

    49

     

     

    204

     

     

    248

     

    Add back: Net special items expense (income)

     

    14

     

     

    3

     

     

     

     

     

    25

     

     

    13

     

    Adjusted Operating Earnings

    $

    72

     

    $

    112

     

     

    $

    49

     

    $

    229

     

    $

    261

     

     

    Three Months Ended

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

    2023

     

    2022

     

     

    2023

     

    2022

    Diluted Earnings (Loss) Per Common Share as Reported

    $

    1.37

     

    $

    1.28

     

     

    $

    1.14

     

    $

    4.77

     

    $

    0.54

     

    Less: Discontinued operations, net of tax

     

     

     

    (1.16

    )

     

     

     

     

     

     

    (5.04

    )

    Continuing Operations

     

    1.37

     

     

    2.44

     

     

     

    1.14

     

     

    4.77

     

     

    5.58

     

    Add back: Net special items expense (income)

     

    0.33

     

     

    0.07

     

     

     

     

     

    0.58

     

     

    0.29

     

    Adjusted Operating Earnings Per Share

    $

    1.70

     

    $

    2.51

     

     

    $

    1.14

     

    $

    5.35

     

    $

    5.87

     

    SYLVAMO CORPORATION

    Sales and Earnings by Business Segment

    Preliminary and Unaudited

    (In millions)

    Net Sales by Business Segment

     

     

    Three Months Ended

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

    2023

     

    2022

     

     

    2023

     

    2022

    Europe

    $

    184

     

     

    $

    130

     

     

    $

    210

     

     

    $

    624

     

     

    $

    382

     

    Latin America

     

    246

     

     

     

    270

     

     

     

    250

     

     

     

    718

     

     

     

    734

     

    North America

     

    476

     

     

     

    589

     

     

     

    474

     

     

     

    1,455

     

     

     

    1,646

     

    Inter-segment Sales

     

    (9

    )

     

     

    (21

    )

     

     

    (15

    )

     

     

    (40

    )

     

     

    (61

    )

    Net Sales

    $

    897

     

     

    $

    968

     

     

    $

    919

     

     

    $

    2,757

     

     

    $

    2,701

     

    Operating Profit by Business Segment

     

     

    Three Months Ended

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

     

    2023

     

    2022

     

     

    2023

     

    2022

     

    Europe

    $

    (14

    )

     

    $

    19

     

    $

    (11

    )

     

    $

    (2

    )

     

    $

    38

     

    Latin America

     

    55

     

     

     

    58

     

     

     

    48

     

     

     

    149

     

     

     

    156

     

     

    North America

     

    75

     

     

     

    98

     

     

     

    45

     

     

     

    217

     

     

     

    226

     

     

    Business Segment Operating Profit

    $

    116

     

     

    $

    175

     

     

    $

    82

     

     

    $

    364

     

     

    $

    420

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income from Continuing Operations Before Income Taxes

    $

    91

     

     

    $

    147

     

     

    $

    70

     

     

    $

    302

     

     

    $

    345

     

     

    Interest expense (income), net

     

    9

     

     

     

    18

     

     

     

    12

     

     

     

    28

     

    (b)

     

    52

     

     

    Net special items expense (income)

     

    16

     

    (a)

     

    10

     

    (c)

     

     

     

     

    34

     

    (a)

     

    23

     

    (c)

    Business Segment Operating Profit (d)

    $

    116

     

     

    $

    175

     

     

    $

    82

     

     

    $

    364

     

     

    $

    420

     

     

    Three Months and Nine Months Ended September 30, 2023

     

    (a)

    Includes pre-tax loss of $13 million ($10 million after taxes) for the three months and nine months ended September 30, 2023 for certain severance costs related to our salaried workforce. Also includes a pre-tax loss of $3 million ($2 million after taxes) for the three months ended September 30, 2023, and a pre-tax loss of $8 million ($6 million after taxes) for the nine months ended September 30, 2023, for transaction costs related to the Nymölla acquisition. Finally, includes 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 Nymölla inventory sold during the first quarter for the nine months ended September 30, 2023.

     

     

    (b)

    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 for the nine months ended September 30, 2023.

     

    Three Months and Nine Months Ended September 30, 2022

     

     

    (c)

    Includes pre-tax loss of $10 million ($7 million after taxes) for the three months ended September 30, 2022, and a pre-tax loss of $23 million ($17 million after taxes) for the nine months ended September 30, 2022, for one-time costs associated with the spin-off.

     

     

    (d)

    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

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

    2023

     

    2022

     

     

    2023

     

    2022

    Net Income (Loss)

    $

    58

     

     

    $

    57

     

     

    $

    49

     

     

    $

    204

     

     

    $

    24

     

    Less: Discontinued operations, net of tax

     

     

     

     

    (52

    )

     

     

     

     

     

     

     

     

    (224

    )

    Net Income From Continuing Operations

     

    58

     

     

     

    109

     

     

     

    49

     

     

     

    204

     

     

     

    248

     

    Adjustments:

     

     

     

     

     

     

     

     

     

    Income tax provision

     

    33

     

     

     

    38

     

     

     

    21

     

     

     

    98

     

     

     

    97

     

    Interest expense (income), net

     

    9

     

     

     

    18

     

     

     

    12

     

     

     

    28

     

     

     

    52

     

    Depreciation, amortization and cost of timber harvested

     

    36

     

     

     

    30

     

     

     

    34

     

     

     

    105

     

     

     

    94

     

    Stock-based compensation

     

    6

     

     

     

    5

     

     

     

    8

     

     

     

    21

     

     

     

    16

     

    Transition service agreement expense

     

     

     

     

    6

     

     

     

     

     

     

     

     

     

    21

     

    Net special items expense (income)

     

    16

     

     

     

    10

     

     

     

     

     

     

    34

     

     

     

    23

     

    Adjusted EBITDA

    $

    158

     

     

    $

    216

     

     

    $

    124

     

     

    $

    490

     

     

    $

    551

     

    Net Sales

    $

    897

     

     

    $

    968

     

     

    $

    919

     

     

    $

    2,757

     

     

    $

    2,701

     

    Adjusted EBITDA Margin

     

    17.6

    %

     

     

    22.3

    %

     

     

    13.5

    %

     

     

    17.8

    %

     

     

    20.4

    %

    Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment

     

     

    Three Months Ended

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

    2023

     

    2022

     

     

    2023

     

    2022

    Adjusted EBITDA

     

     

     

     

     

     

     

     

     

    Europe

    $

    (5

    )

     

    $

    24

     

     

    $

    (3

    )

     

    $

    23

     

     

    $

    54

     

    Latin America

     

    74

     

     

     

    74

     

     

     

    67

     

     

     

    204

     

     

     

    209

     

    North America

     

    89

     

     

     

    118

     

     

     

    60

     

     

     

    263

     

     

     

    288

     

    Total Business Segment Adjusted EBITDA

    $

    158

     

     

    $

    216

     

     

    $

    124

     

     

    $

    490

     

     

    $

    551

     

    Net Sales (excluding discontinued operations and inter-segment sales eliminations)

     

     

     

     

     

     

     

     

     

    Europe

    $

    184

     

     

    $

    130

     

     

    $

    210

     

     

    $

    624

     

     

    $

    382

     

    Latin America

     

    246

     

     

     

    270

     

     

     

    250

     

     

     

    718

     

     

     

    734

     

    North America

     

    476

     

     

     

    589

     

     

     

    474

     

     

     

    1,455

     

     

     

    1,646

     

    Total Business Segment Net Sales

    $

    906

     

     

    $

    989

     

     

    $

    934

     

     

    $

    2,797

     

     

    $

    2,762

     

    Adjusted EBITDA Margin

     

     

     

     

     

     

     

     

     

    Europe

     

    (3

    )%

     

     

    18

    %

     

     

    (1

    )%

     

     

    4

    %

     

     

    14

    %

    Latin America

     

    30

    %

     

     

    27

    %

     

     

    27

    %

     

     

    28

    %

     

     

    28

    %

    North America

     

    19

    %

     

     

    20

    %

     

     

    13

    %

     

     

    18

    %

     

     

    17

    %

    SYLVAMO CORPORATION

    Condensed Consolidated Balance Sheet

    Preliminary and Unaudited

    (In millions)

     

     

    September 30, 2023

     

    December 31, 2022

    Assets

     

     

     

    Current Assets

     

     

     

    Cash and temporary investments

    $

    194

     

     

    $

    360

     

    Restricted cash

     

    60

     

     

     

     

    Accounts and notes receivable, net

     

    423

     

     

     

    450

     

    Contract assets

     

    25

     

     

     

    30

     

    Inventories

     

    456

     

     

     

    364

     

    Other current assets

     

    28

     

     

     

    39

     

    Total Current Assets

     

    1,186

     

     

     

    1,243

     

    Plants, Properties and Equipment, Net

     

    949

     

     

     

    817

     

    Forestlands

     

    346

     

     

     

    322

     

    Goodwill

     

    134

     

     

     

    128

     

    Right of Use Assets

     

    39

     

     

     

    35

     

    Deferred Charges and Other Assets

     

    131

     

     

     

    165

     

    Total Assets

    $

    2,785

     

     

    $

    2,710

     

    Liabilities and Equity

     

     

     

    Current Liabilities

     

     

     

    Accounts payable

    $

    382

     

     

    $

    453

     

    Notes payable and current maturities of long-term debt

     

    53

     

     

     

    29

     

    Accrued payroll and benefits

     

    66

     

     

     

    81

     

    Other current liabilities

     

    173

     

     

     

    165

     

    Total Current Liabilities

     

    674

     

     

     

    728

     

    Long-Term Debt

     

    946

     

     

     

    1,003

     

    Deferred Income Taxes

     

    202

     

     

     

    183

     

    Other Liabilities

     

    127

     

     

     

    118

     

    Equity

     

     

     

    Common stock, $1 par value, 200.0 shares authorized, 44.5 shares and 44.2 shares issued and 41.5 shares and 42.6 shares outstanding at September 30, 2023 and December 31, 2022, respectively

     

    45

     

     

     

    44

     

    Paid-In Capital

     

    45

     

     

     

    25

     

    Retained Earnings

     

    2,185

     

     

     

    2,029

     

    Accumulated Other Comprehensive Loss

     

    (1,298

    )

     

     

    (1,338

    )

     

     

    977

     

     

     

    760

     

    Less: Common stock held in treasury, at cost, 2.9 shares and 1.6 shares at September 30, 2023 and December 31, 2022, respectively

     

    (141

    )

     

     

    (82

    )

    Total Equity

     

    836

     

     

     

    678

     

    Total Liabilities and Equity

    $

    2,785

     

     

    $

    2,710

     

    Condensed Consolidated Statement of Cash Flows

    Preliminary and Unaudited

    (In millions)

     

     

    Nine Months Ended
    September 30,

     

    2023

     

    2022

    Operating Activities

     

     

     

    Net income from continuing operations

    $

    204

     

     

    $

    248

     

    Depreciation, amortization, and cost of timber harvested

     

    105

     

     

     

    94

     

    Deferred income tax provision (benefit), net

     

    4

     

     

     

    4

     

    Stock-based compensation

     

    21

     

     

     

    16

     

    Changes in operating assets and liabilities and other

     

     

     

    Accounts and notes receivable

     

    99

     

     

     

    (81

    )

    Inventories

     

    (46

    )

     

     

    (76

    )

    Accounts payable and accrued liabilities

     

    (122

    )

     

     

    18

     

    Other

     

    72

     

     

     

    53

     

    Cash Provided By Operating Activities from Continuing Operations

     

    337

     

     

     

    276

     

    Cash Provided By Operating Activities from Discontinued Operations, net

     

     

     

     

    20

     

    Cash Provided By Operating Activities

     

    337

     

     

     

    296

     

    Investment Activities

     

     

     

    Invested in capital projects

     

    (147

    )

     

     

    (91

    )

    Acquisition of business

     

    (167

    )

     

     

     

    Cash Provided By (Used for) Investment Activities from Continuing Operations

     

    (314

    )

     

     

    (91

    )

    Cash Provided By (Used for) Investment Activities from Discontinued Operations, net

     

     

     

     

    (5

    )

    Cash Provided By (Used for) Investment Activities

     

    (314

    )

     

     

    (96

    )

    Financing Activities

     

     

     

    Dividends paid

     

    (32

    )

     

     

    (5

    )

    Issuance of debt

     

    443

     

     

     

     

    Reduction of debt

     

    (482

    )

     

     

    (174

    )

    Repurchases of common stock

     

    (53

    )

     

     

     

    Other

     

    (7

    )

     

     

    (2

    )

    Cash Provided By (Used for) Financing Activities from Continuing Operations

     

    (131

    )

     

     

    (181

    )

    Cash Provided By (Used for) Financing Activities from Discontinued Operations, net

     

     

     

     

    (1

    )

    Cash Provided By (Used for) Financing Activities

     

    (131

    )

     

     

    (182

    )

    Effect of Exchange Rate Changes on Cash

     

    2

     

     

     

    27

     

    Change in Cash Included in Assets Held for Sale

     

     

     

     

    41

     

    Change in Cash, Temporary Investments and Restricted Cash

     

    (106

    )

     

     

    4

     

    Cash, Temporary Investments and Restricted Cash

     

     

     

    Beginning of the period

     

    360

     

     

     

    159

     

    End of the period

    $

    254

     

     

    $

    163

     

    SYLVAMO CORPORATION

    Reconciliation of Cash Provided by Operations to Free Cash Flow

    Preliminary and Unaudited

    (In millions)

     

     

    Three Months Ended

    September 30,

     

    Three Months Ended

    June 30,

    2023

     

    Nine Months Ended

    September 30,

     

    2023

     

    2022

     

     

    2023

     

    2022

    Cash Provided By Operating Activities From Continuing Operations

    $

    197

     

     

    $

    146

     

     

    $

    77

     

     

    $

    337

     

     

    $

    276

     

    Adjustments:

     

     

     

     

     

     

     

     

     

    Cash invested in capital projects

     

    (42

    )

     

     

    (32

    )

     

     

    (44

    )

     

     

    (147

    )

     

     

    (91

    )

    Free Cash Flow

    $

    155

     

     

    $

    114

     

     

    $

    33

     

     

    $

    190

     

     

    $

    185

     

    Reconciliation of Net Income From Continuing Operations to Adjusted EBITDA - Since Spin-off

    Preliminary and Unaudited

    (In millions)

     

     

    Three Months Ended

    December 31,

    2021

     

    Twelve Months Ended

    December 31,

    2022

     

    Nine Months Ended

    September 30,

    2023

     

    October 1, 2021

    Through

    September 30, 2023

     

     

     

     

    Net Income From Continuing Operations

    $

    29

     

     

    $

    336

     

     

    $

    204

     

     

    $

    569

     

    Adjustments:

     

     

     

     

     

     

     

    Income tax provision

     

    28

     

     

     

    131

     

     

     

    98

     

     

     

    257

     

    Interest expense (income), net

     

    18

     

     

     

    69

     

     

     

    28

     

     

     

    115

     

    Depreciation, amortization and cost of timber harvested

     

    31

     

     

     

    125

     

     

     

    105

     

     

     

    261

     

    Stock-based compensation

     

    4

     

     

     

    20

     

     

     

    21

     

     

     

    45

     

    Transition services agreement expense

     

    7

     

     

     

    23

     

     

     

     

     

     

    30

     

    Net Special items expense

     

    6

     

     

     

    17

     

     

     

    34

     

     

     

    57

     

    Adjusted EBITDA

    $

    123

     

     

    $

    721

     

     

    $

    490

     

     

    $

    1,334

     

    Net Sales

    $

    778

     

     

    $

    3,628

     

     

    $

    2,757

     

     

    $

    7,163

     

    Adjusted EBITDA Margin

     

    15.8

    %

     

     

    19.9

    %

     

     

    17.8

    %

     

     

    18.6

    %

    Reconciliation of Cash Provided by Operations to Free Cash Flow - Since Spin-off

    Preliminary and Unaudited

    (In millions)

     

     

    Three Months Ended

    December 31,

    2021

     

    Twelve Months Ended

    December 31,

    2022

     

    Nine Months Ended

    September 30,

    2023

     

    October 1, 2021

    Through

    September 30, 2023

     

     

     

     

    Cash Provided By Operating Activities From Continuing Operations

    $

    131

     

     

    $

    418

     

     

    $

    337

     

     

    $

    886

     

    Adjustments:

     

     

     

     

     

     

     

    Cash invested in capital projects

     

    (22

    )

     

     

    (149

    )

     

     

    (147

    )

     

    $

    (318

    )

    Free Cash Flow

    $

    109

     

     

    $

    269

     

     

    $

    190

     

     

    $

    568

     

    SYLVAMO CORPORATION

    Reconciliation of Net Income From Continuing Operations to Adjusted EBITDA - 2023 Outlook

    Estimates

    (In millions)

     

     

    Three Months Ended

    December 31,

    2023

     

    Net Income From Continuing Operations

    $18 - $32

    Adjustments:

     

    Income tax provision

    8 - 14

    Interest expense (income), net

    13

    Depreciation, amortization and cost of timber harvested

    37

    Stock-based compensation

    6

    Net special items expense

    8

    Adjusted EBITDA

    $90 - $110

    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

    > $485

    Adjustments:

     

    Cash invested in capital projects

    (< $215)

    Free Cash Flow

    > $270

    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.


    The Sylvamo Corporation Stock at the time of publication of the news with a fall of -0,63 % to 40,84EUR on Tradegate stock exchange (09. November 2023, 09:32 Uhr).

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    Sylvamo Quarterly Results Higher Than Guidance, Cost Reduction Program Announced Sylvamo (NYSE: SLVM), the world’s paper company, is releasing third quarter 2023 earnings. Financial Highlights – Third Quarter vs. Second Quarter Net income from continuing operations of $58 million ($1.37 per diluted share) vs. $49 million ($1.14 …