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Dec 31, 2021
Sylvamo Q4 2021 Earnings Report
Sylvamo released fourth-quarter results with strong earnings and cash flow.
Key Takeaways
Sylvamo reported strong fourth-quarter earnings with adjusted EBITDA of $170 million and free cash flow of $162 million. The company used the cash flow to reduce debt by $124 million and increase cash on hand by $48 million.
Net income was $62 million ($1.41 per diluted share).
Adjusted operating earnings (non-GAAP) were $75 million ($1.71 per diluted share).
Adjusted EBITDA (non-GAAP) was $170 million (17.5% margin).
Free cash flow (non-GAAP) was $162 million.
Sylvamo
Sylvamo
Sylvamo Revenue by Segment
Sylvamo Revenue by Geographic Location
Revenue by Segment
Europe Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.comRevenue by Geographic Location
Europe Revenue
CapyFin.comLatin America Revenue
CapyFin.comNorth America Revenue
CapyFin.com Forward Guidance
Sylvamo projects first-quarter adjusted EBITDA of $180 to $190 million and adjusted operating earnings per share of $1.70 to $1.90.
Positive Outlook
- Price and mix are expected to improve by $35 to $40 million compared to the fourth quarter, reflecting continued realization of prior price increases in all regions
- Maintenance outage expenses are projected to decrease by $31 million, reflecting fewer outages during the winter months in the northern hemisphere.
- Global industry demand continued to recover and we expect this to continue in 2022 as more white-collar workers return to their offices.
- In the first quarter, we expect price and mix to further improve, reflecting continued realization of prior price increases in all three regions and our focus on commercial excellence.
- Our mills ran well and we executed extensive maintenance outages in our Eastover and Saillat mills safely, efficiently and on budget.
Challenges Ahead
- Volume is expected to be down by $13 to $18 million, reflecting seasonally weaker demand in Latin America and Eastern Europe
- Operations and costs are expected to increase by $18 to $20 million, reflecting the non-repeat of $7 million favorable overhead benefits and environmental credits in Europe and a $10 million favorable North America LIFO adjustment, both in the fourth quarter
- Input and transportation costs are projected to increase by $18 to $23 million due to higher fiber, chemicals and transportation costs
- We also project $8 million in costs related to transition service agreements in the quarter
- We also project $15 million of one-time costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income