NYSE$SLVM
Sylvamo Corp. · Q4 2021 earnings
Q4 2021 earnings · · Investor relations
Briefing
Sylvamo released fourth-quarter results with strong earnings and cash flow.
Sylvamo reported strong fourth-quarter earnings with adjusted EBITDA of $170 million and free cash flow of $162 million. The company used the cash flow to reduce debt by $124 million and increase cash on hand by $48 million.
- Net income was $62 million ($1.41 per diluted share).
- Adjusted operating earnings (non-GAAP) were $75 million ($1.71 per diluted share).
- Adjusted EBITDA (non-GAAP) was $170 million (17.5% margin).
- Free cash flow (non-GAAP) was $162 million.
Headline financials
Revenue & EPS history
Sylvamo · Revenue · Quarterly
$972M
Revenue by segment
Sylvamo · $989M total across 3 segments · Q4 2021
- North America$463M+23.1%46.8%
- Europe$297M+24.3%30.0%
- Latin America$229M+15.7%23.2%
Forward guidance
Sylvamo projects first-quarter adjusted EBITDA of $180 to $190 million and adjusted operating earnings per share of $1.70 to $1.90.
Tailwinds
- Price and mix are expected to improve by $35 to $40 million compared to the fourth quarter, reflecting continued realization of prior price increases in all regions
- Maintenance outage expenses are projected to decrease by $31 million, reflecting fewer outages during the winter months in the northern hemisphere.
- Global industry demand continued to recover and we expect this to continue in 2022 as more white-collar workers return to their offices.
- In the first quarter, we expect price and mix to further improve, reflecting continued realization of prior price increases in all three regions and our focus on commercial excellence.
- Our mills ran well and we executed extensive maintenance outages in our Eastover and Saillat mills safely, efficiently and on budget.
Headwinds
- Volume is expected to be down by $13 to $18 million, reflecting seasonally weaker demand in Latin America and Eastern Europe
- Operations and costs are expected to increase by $18 to $20 million, reflecting the non-repeat of $7 million favorable overhead benefits and environmental credits in Europe and a $10 million favorable North America LIFO adjustment, both in the fourth quarter
- Input and transportation costs are projected to increase by $18 to $23 million due to higher fiber, chemicals and transportation costs
- We also project $8 million in costs related to transition service agreements in the quarter
- We also project $15 million of one-time costs
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2021
+1.2%
Avg return
Earnings day
+2.5%
Avg return
5 days after
+2.1%
Avg return
30 days after
59%
13 / 22 earnings
Positive
+23.3%
Q4 2023
Best reaction
-17.0%
Q2 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -3.2% | -12.5% | -12.3% | |
| Q4 2025 | +5.1% | -9.5% | -20.3% | |
| Q3 2025 | +0.1% | +8.7% | +13.1% | |
| Q1 2025 | -12.6% | -6.1% | -10.6% | |
| Q4 2024 | -7.3% | -5.2% | -14.1% | |
| Q3 2024 | -14.7% | -11.4% | -6.5% | |
| Q2 2024 | +11.3% | +13.0% | +10.3% | |
| Q1 2024 | +2.7% | +6.1% | +6.0% | |
| Q4 2023 | +23.3% | +20.8% | +24.7% | |
| Q3 2023 | +7.4% | +10.5% | +18.4% | |
| Q2 2023 | -17.0% | -16.4% | -15.6% | |
| Q1 2023 | -7.9% | -7.3% | -5.2% | |
| Q4 2022 | -1.3% | -1.1% | +2.9% | |
| Q3 2022 | +8.4% | +13.7% | +32.3% | |
| Q2 2022 | +3.0% | +4.9% | -8.0% | |
| Q1 2021 | +6.7% | +8.7% | +4.1% | |
| Q1 2022 | +14.4% | +20.7% | +19.4% | |
| Q2 2021 | -5.0% | -8.8% | +1.5% | |
| Q4 2019 | -5.0% | -8.8% | +1.5% | |
| Q4 2021 | +7.1% | +13.6% | -2.9% | |
| Q4 2020 | +6.5% | +10.1% | +1.3% | |
| Q3 2021 | +4.2% | +11.0% | +5.6% | |
| Q3 2020 | — | — | — | |
| Q2 2020 | — | — | — | |
| Q1 2020 | — | — | — |
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