Sylvamo (US:SLVM)2024-05-10 16:47Financial Performance - Q1 2024 net income was $43 million ($1.02 per diluted share), down from $97 million ($2.25 per diluted share) in Q1 2023[92]. - Net sales for Q1 2024 were $905 million, a decrease from $941 million in Q1 2023[92]. - Adjusted EBITDA for Q1 2024 was $118 million with a margin of 13%, compared to $208 million and a margin of 22% in Q1 2023[92][108]. - Cash provided by operating activities decreased to $27 million in Q1 2024 from $63 million in Q1 2023[114]. - Free cash flow was $(33) million in Q1 2024, compared to $2 million in Q1 2023[92][110]. - Business segment operating profit for North America was $62 million in Q1 2024, down from $97 million in Q1 2023[99][106]. - Latin America segment operating profit decreased to $14 million in Q1 2024 from $46 million in Q1 2023[99][104]. - Europe segment net sales fell to $207 million in Q1 2024 from $230 million in Q1 2023, with an operating loss of $4 million[101][102]. Capital Expenditures - Total capital expenditures for the three months ended March 31, 2024, were approximately $60 million, representing 6.6% of net sales[120]. - Maintenance, regulatory, and reforestation capital expenditures accounted for approximately $56 million, or 6.2% of net sales, during the same period[120]. - High-return capital projects received approximately $4 million, or 0.4% of net sales, in capital expenditures[120]. - The company expects annual maintenance, regulatory, and reforestation capital expenditures to be in the range of $175 million to $190 million for the next several years[120]. - The company anticipates spending approximately $30 million to $35 million on high-return projects in 2024[120]. Financing Activities - Cash used for financing activities included $6 million for AR Securitization, $7 million for Term Loan F, and $4 million for Term Loan A during the three months ended March 31, 2024[118]. - The company paid $12 million in dividends and repurchased $5 million of shares during the three months ended March 31, 2024[118]. - In the same period of 2023, cash used for financing activities included $30 million for AR Securitization and $10 million in dividends[118]. Future Outlook - Looking ahead, the company expects improved volume and favorable pricing in Q2 2024, driven by seasonal demand and prior price increases[95]. Accounting and Risk - The company has not made any changes to its critical accounting policies during the first three months of 2024[123]. - There have been no material changes in the company's exposure to market risk since December 31, 2023[128]. Acquisition - The acquisition of the Nymölla mill in Sweden was completed on January 2, 2023, and its results are included in the financial statements from that date[96].