Sylvamo (SLVM)2024-08-09 11:18Financial Performance - Net income for Q2 2024 was $83 million ($1.98 per diluted share), compared to $43 million ($1.02 per diluted share) in Q1 2024[2]. - Adjusted EBITDA increased to $164 million (18% margin) in Q2 2024, up from $118 million (13% margin) in Q1 2024[2]. - Free cash flow improved to $62 million in Q2 2024, compared to a negative $33 million in Q1 2024[2]. - Net sales for Q2 2024 were $933 million, an increase from $905 million in Q1 2024[8]. - Net income for the three months ended June 30, 2024, was $83 million, compared to $49 million for the same period in 2023, representing a 69.4% increase[21]. - Adjusted EBITDA for the three months ended June 30, 2024, was $164 million, up from $124 million in the same period last year, reflecting a 32.3% increase[29]. - Net sales for the three months ended June 30, 2024, totaled $933 million, compared to $919 million for the same period in 2023, indicating a 1.5% growth[23]. - The adjusted EBITDA margin for the three months ended June 30, 2024, was 17.6%, compared to 13.5% in the same period last year, showing an improvement of 4.1 percentage points[29]. - Operating profit by business segment for Q2 2024 was $122 million, up from $72 million in Q1 2024[9]. - Operating profit for North America in the three months ended June 30, 2024, was $77 million, compared to $45 million in the same period last year, a 71.1% increase[24]. - Net income for the six months ended June 30, 2024, was $126 million, down from $146 million for the same period in 2023, reflecting a decrease of 13.7%[34]. - Free cash flow for the six months ended June 30, 2024, was $29 million, compared to $35 million in 2023, indicating a decrease of 17.1%[36]. Future Projections - The company expects adjusted EBITDA for Q3 2024 to be between $170 million and $185 million, with volume projected to increase by $10 million to $15 million[1]. - Adjusted EBITDA for the three months ending September 30, 2024, is estimated to be between $170 million and $185 million[37]. Shareholder Returns - A 50% dividend increase was declared for Q3 2024, raising the dividend from $0.30 to $0.45 per share[5]. - The company repurchased $30 million of its shares this year, with $120 million remaining on its $150 million share repurchase authorization[5]. Cost Management - Project Horizon aims for run rate savings of $110 million by the end of 2024 through structural cost reductions[6]. Tax and Expenses - The effective tax rate for Q2 2024 was 27%, unchanged from the previous quarter[11]. - Interest expense for the three months ended June 30, 2024, was $9 million, down from $12 million in the same period last year[29]. - The company incurred a pre-tax loss of $2 million for integration costs related to the Nymölla acquisition during the three months ended March 31, 2024[19]. - The company reported a pre-tax gain of $1 million for a foreign value-added tax refund in Brazil for the three months ended June 30, 2024[25]. Asset and Liability Management - Total assets decreased from $2,872 million on December 31, 2023, to $2,691 million on June 30, 2024, representing a decline of approximately 6.3%[32]. - Cash and temporary investments decreased from $220 million to $145 million, a reduction of 34.1%[32]. - Total current liabilities decreased from $695 million to $654 million, a decline of approximately 5.9%[32]. - Long-term debt decreased from $931 million to $894 million, a reduction of 4.0%[32]. - Total equity decreased from $901 million to $830 million, a decline of approximately 7.9%[32]. - Retained earnings increased from $2,222 million to $2,317 million, an increase of 4.3%[32].