Sylvamo (US:SLVM)2024-05-10 11:15Financial Performance - Net income for Q1 2024 was $43 million ($1.02 per diluted share), down from $49 million ($1.16 per diluted share) in Q4 2023[4] - Adjusted EBITDA for Q1 2024 was $118 million with a 13% margin, compared to $117 million with a 12% margin in Q4 2023[4] - Free cash flow for Q1 2024 was $(33) million, a decrease from $104 million in Q4 2023[4] - Net income for the three months ended March 31, 2024, was $43 million, a decrease of 55.7% compared to $97 million for the same period in 2023[34] - Adjusted Operating Earnings per share for Q1 2024 was $1.07, down 57.4% from $2.51 in Q1 2023[34] - Total net sales for Q1 2024 were $905 million, a decline of 3.8% from $941 million in Q4 2023 and a decrease of 6.1% from $964 million in Q1 2023[34] Sales and Market Performance - Net sales for Q1 2024 were $905 million, down from $964 million in Q4 2023[11] - Volume decreased by $12 million due to expected seasonally weaker industry demand in Latin America[4] - North America segment reported net sales of $490 million in Q1 2024, down 3.0% from $505 million in Q4 2023[34] Profitability and Margins - Operating profit in North America for Q1 2024 was $62 million, up from $52 million in Q4 2023[14] - Adjusted EBITDA for Q1 2024 was $118 million, representing an adjusted EBITDA margin of 13.0%, compared to 22.1% in Q4 2023[40] - Operating profit for the North America segment was $62 million in Q1 2024, down 36.1% from $97 million in Q4 2023[35] Cash Flow and Capital Management - Cash provided by operating activities for Q1 2024 was $27 million, a decrease of 57.1% from $63 million in Q1 2023[46] - Free cash flow for Q1 2024 was negative $33 million, compared to positive $2 million in Q1 2023[48] - The company repurchased $20 million of shares in 2024, with $130 million remaining on its $150 million share repurchase authorization[7] Future Guidance and Projections - Adjusted EBITDA guidance for Q2 2024 is projected between $145 million and $160 million[4] - The company expects net income for the three months ending June 30, 2024, to be between $62 million and $72 million[51] Integration Costs - The company incurred integration costs of $2 million related to the Nymölla acquisition in Q1 2024[36] Tax Rate - The effective tax rate for Q1 2024 was 28%, compared to 27% in Q4 2023[15] Capital Projects - The company identified a pipeline of over $200 million in high-return capital projects to grow earnings and cash flows[8]