Sylvamo Releases First Quarter 2022 Results

Message from the Chairman and Chief Executive Officer
“We generated strong earnings and free cash flow,” said Jean-Michel Ribiéras. “We expect we will continue that trend and achieve pre-pandemic earnings levels, even excluding our Russian business. We have the right team to continue to service our customers and navigate input cost inflation and supply chain hurdles.”

First-Quarter Highlights
*Net income of $26 million ($0.59 per diluted share) compared with $62 million ($1.41 per diluted share) in the fourth quarter of 2021; first quarter 2022 net income includes the impact of a $68 million ($57 million, net of tax) impairment charge for our Russian operations as we evaluate options to exit the business
*Adjusted operating earnings1 (non-GAAP) of $87 million ($1.97 per diluted share) compared with $75 million ($1.71 per diluted share) in the fourth quarter of 2021
*Adjusted EBITDA2 (non-GAAP) of $187 million (19.1% margin) compared with $170 million (17.5% margin) in the fourth quarter of 2021
*Free cash flow3 (non-GAAP) of $73 million compared with $162 million in the fourth quarter of 2021
*All reported results for the first quarter of 2022 include our Russia operations

Management Summary
We continue to execute our three-prong strategy of commercial excellence, operational excellence and financial discipline. This approach generated a 19.1% adjusted EBITDA margin in the first quarter of 2022.

Global demand continues to strengthen in most regions as schools and offices reopen. As a result, our volumes remain strong, running at full capacity in all three regions. We also continue to realize the benefit of prior price increases, which allowed price and mix to outpace input cost increases.

Our facilities operated well in a challenging supply chain environment, navigating input cost inflation and supply chain hurdles. Most importantly, we continue taking care of each other and our customers.

This strategy generated $73 million in free cash flow, enabling us to pay down $33 million in debt and increase our cash position by $49 million.

We believe Sylvamo will continue creating value as we work to achieve our vision of being the employer, supplier and investment of choice. We are currently on a path to generate between $725 million and $775 million in adjusted EBITDA and $160 million and $180 million in free cash flow this year, excluding Russia for the full year.

Our path forward in Russia is driven by our primary value to always do the right things in the right ways for the right reasons. We have made the decision to exit Russia. We will do so in an orderly manner and are conducting a process to sell our Russian business. We are working to reach an agreement and plan to complete this process promptly, including obtaining approval from our board, as well as the required government approvals to execute a transaction.

We would not be in this position without our team members who continue overcoming challenges while remaining focused on serving customers and taking care of themselves and their teammates. We appreciate them for everything they do each day.
details at: https://investors.sylvamo.com/news/news-details/2022/Sylvamo-Releases-First-Quarter-2022-Results/default.aspx

Related Posts

Glatfelter Recognized for Service Excellence by Rockline Industries

Glatfelter announced that its Advanced Airlaid Materials Business Unit (AMBU) was recently recognized for exemplary core values and excellent service by Rockline Industries during their annual State of Rockline strategic supplier event in Sheboygan, Wisconsin on October 4, 2017. The Supply RRITE Award recognizes the supplier that best demonstrates the Rockline core values of Renew, Respect, Integrity, Teamwork and Excellence. Rockline is one of the world’s largest private-label manufacturers of coffee filters and consumer, medical and commercial wet wipes. Glatfelter supplies Rockline with airlaid materials manufactured at its facility in Gatineau, Quebec, Canada. Glatfelter also manufactures airlaid materials in its Falkenhagen, Germany facility, and is planning to be operational with its first U.S. airlaid facility in Fort Smith, Arkansas by early 2018. Click Read More below for additional information.

Clearwater Paper Reports Second Quarter 2021 Results

For the second quarter of 2021, Clearwater Paper reported net sales of $406 million, a 15% decrease compared to net sales of $481 million for the second quarter of 2020. Net loss for the second quarter of 2021 was $52 million, or $3.10 per diluted share, compared to net income for the second quarter of 2020 of $23 million, or $1.36 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net loss in the second quarter of 2021 of $18 million, or $1.07 per diluted share, compared to second quarter 2020 adjusted net income of $28 million, or $1.67 per diluted share. Adjusted EBITDA for the quarter was $15 million, compared to the second quarter of 2020 Adjusted EBITDA of $79 million. Additionally, Clearwater Paper incurred impairment and other closure costs associated with the recently announced closure of its Neenah, Wisconsin facility of $41.7 million. For the first six months of 2021, Clearwater Paper reported net sales of $832 million, a 13% decrease compared to net sales of $958 million for the first six months of 2020. Net loss for the first six months of 2021 was $40 million, or $2.37 per diluted share, compared to net income for the first six months of 2020 of $33 million, or $1.99 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net loss in the first six months of 2021 of $6 million, or $0.37 per diluted share, compared to first six months of 2020 adjusted net income of $37 million, or $2.24 per diluted share. Adjusted EBITDA for the first six months was $69 million, compared to the first six months of 2020 Adjusted EBITDA of $134 million.

Maintenance Project Concludes Successfully; Green Power Flowing Again

Twin Rivers Paper Company’s Edmundston pulp mill recently completed a biomass cogeneration unit maintenance shutdown; a project which began in the middle of April. In planning for more than a year, the project was designed to maintain and refurbish the co-generation unit to ensure green power continues to flow to the grid uninterrupted. “The last 14 months have been a challenge for everyone with the COVID-19 pandemic, and the last number of months have been a roller-coaster for the Edmundston region as case counts have risen and fallen back down again,” says Brian McAlary, Vice-President Development, Technical & Export Sales.
Back To Top
×Close search
Search