Sylvamo Generates Strong Operating Cash Flow, Returns $127 Million in Cash to Shareowners in 2023

Financial Highlights – 2023 Full Year

• Net income from continuing operations of $253 million ($5.93 per diluted share)
• Adjusted operating earnings¹ of $278 million ($6.51 per diluted share)
• Adjusted EBITDA² of $607 million (16% margin)
• Cash provided by operating activities from continuing operations of $504 million
• Free cash flow³ of $294 million
• Paid regular and special dividends totaling $57 million
• Repurchased 1,574,133 shares of our common stock for approximately $70 million, resulting in 41.2 million shares outstanding as of Dec. 31
• Ended the year with net debt of $730 million ($950 million of gross debt and $220 million cash on hand)
  

Financial Highlights - Fourth Quarter vs. Third Quarter

• Net sales of $964 million vs. $897 million (7.5% increase)
• Net income from continuing operations of $49 million ($1.16 per diluted share) vs. $58 million ($1.37 per diluted share)
• Adjusted operating earnings¹ of $49 million ($1.16 per diluted share) vs. $72 million ($1.70 per diluted share)
• Adjusted EBITDA² of $117 million (12% margin) vs. $158 million (18% margin)
• Cash provided by operating activities from continuing operations of $167 million vs. $197 million
• Free cash flow³ of $104 million vs. $155 million
  

Commercial and Operational Highlights – Fourth Quarter vs. Third Quarter

• Price and mix decreased by $25 million due primarily to prior paper price decreases as well as unfavorable mix in Latin America and North America
• Volume increased by $20 million due to seasonally stronger sales volume in Latin America and positive trends in Europe and North America
• Operations and other costs increased by $12 million due to seasonally higher costs in Europe and North America, including $5 million for an unexpected reliability issue with a third-party energy provider at our Saillat, France, mill and unfavorable foreign exchange variances. These costs were partially offset by lower economic downtime costs versus the prior quarter.
• Planned maintenance outage expenses increased by $25 million due to planned outages in all regions
• Input costs improved by $1 million, driven primarily by favorable chemical costs, more than offsetting seasonally high energy costs
  

First Quarter Outlook

• Adjusted EBITDA of $105 million to $125 million
• Compared to the fourth quarter:
  • Price and mix are expected to decrease slightly by $5 million to $10 million, primarily reflecting a seasonal, geographic mix shift in Latin America
  • Volume is projected to decrease by $10 million to $15 million, with seasonally weaker industry demand in Latin America
  • Operations and other costs are expected to improve by $20 million to $25 million due primarily to lower economic downtime
  • Input and transportation costs are projected to increase by $5 million to $10 million due to increased transportation costs, mainly in North America and higher fiber costs in Latin America
  • Total planned maintenance outage expenses are expected to decrease by $3 million

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Source: Sylvamo

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