Sylvamo (US:SLVM)2024-11-12 12:10Financial Performance - Net income for Q3 2024 was $95 million ($2.27 per diluted share), an increase from $83 million ($1.98 per diluted share) in Q2 2024[1] - Net income for the three months ended September 30, 2024, was $95 million, compared to $58 million for the same period in 2023, representing a 63.8% increase[31] - Adjusted operating earnings for the nine months ended September 30, 2024, were $230 million, slightly up from $229 million in the same period of 2023[31] - The company reported a net income of $221 million for the nine months ended September 30, 2024, compared to $204 million in the same period last year, marking an increase of 8.34%[46] Sales and Revenue - Net sales for Q3 2024 reached $965 million, an increase from $933 million in Q2 2024 and $897 million in Q3 2023[9] - Net sales for the three months ended September 30, 2024, reached $965 million, an increase from $897 million in the same period of 2023, reflecting a 7.6% growth[33] - Total Net Sales for the three months ended September 30, 2024, reached $973 million, an increase of 7.39% from $906 million in the same period last year[42] - The company’s Latin America segment reported net sales of $247 million for the three months ended September 30, 2024, slightly up from $246 million in the same period of 2023[33] Cash Flow and Assets - Free cash flow for Q3 2024 was $119 million, up from $62 million in Q2 2024[1] - Free Cash Flow for the nine months ended September 30, 2024, was $148 million, compared to $190 million in the same period last year, reflecting a decrease of 22.11%[48] - Cash Provided by Operating Activities for the nine months ended September 30, 2024, was $305 million, down from $337 million in the same period last year[46] - Cash and temporary investments increased to $248 million as of September 30, 2024, compared to $220 million at the end of 2023[44] Profitability Metrics - Adjusted EBITDA for Q3 2024 was $193 million with a 20% margin, compared to $164 million with an 18% margin in Q2 2024[1] - The adjusted EBITDA margin for the three months ended September 30, 2024, was 20.0%, compared to 17.6% in the same period of 2023, indicating improved operational efficiency[41] - Total Business Segment Adjusted EBITDA for the three months ended September 30, 2024, was $193 million, up from $158 million in the same period last year, representing a 22.15% increase[42] - North America Adjusted EBITDA Margin improved to 21% for the three months ended September 30, 2024, compared to 19% in the previous quarter[42] Future Projections - Adjusted EBITDA for Q4 2024 is projected to be between $150 million and $165 million, with expected unfavorable price and mix impacts of $20 million to $25 million[2] - The company expects Adjusted EBITDA for the fourth quarter of 2024 to be between $150 million and $165 million, reflecting a positive outlook[49] Tax and Legal Matters - The effective tax rate for Q3 2024 was 28%, up from 27% in Q2 2024[14] - The company incurred a pre-tax loss of $5 million related to debt extinguishment costs for the three and nine months ended September 30, 2024[35] - The company reported a pre-tax loss of $2 million for legal fees related to the Brazil Tax Dispute for the three and nine months ended September 30, 2024[36] - For the nine months ended September 30, 2024, the company recognized a pre-tax gain of $1 million related to a foreign value-added tax refund in Brazil[25] Strategic Initiatives - Project Horizon aims to exceed $110 million in run rate savings by up to $10 million by the end of 2024[6] - The company announced a mutual termination of a supply agreement with International Paper, effective December 31, 2024, to optimize its North America region[3] Debt and Interest - The company’s total interest expense for the nine months ended September 30, 2024, was $32 million, compared to $28 million in the same period of 2023[41] Retained Earnings and Assets - Total Assets as of September 30, 2024, were $2,861 million, slightly down from $2,872 million as of December 31, 2023[44] - Retained Earnings increased to $2,393 million as of September 30, 2024, up from $2,222 million at the end of 2023, indicating a growth of 7.69%[44]