SPOKANE, Wash., Oct 12, 2010 (BUSINESS WIRE) -- Clearwater Paper Corporation (NYSE: CLW) today announced certain
preliminary financial results as of and for the three months ended
September 30, 2010, in connection with the company's previously
announced proposed offering of $350 million aggregate principal amount
of senior notes due 2018. Clearwater Paper currently estimates that for
such period, its net sales were between $345 million and $360 million
and its Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization, or Adjusted EBITDA, was comparable to that achieved during
the same quarter in fiscal 2009. Clearwater Paper's net sales were
$331.5 million for the three months ended September 30, 2009. Clearwater
Paper also estimates that its cash and short-term investments as of
September 30, 2010 were approximately $357 million.
The estimates for net sales and Adjusted EBITDA were derived from
preliminary results of operations that are unaudited and subject to the
completion of Clearwater Paper's financial closing process for this
period. Actual results for the quarter may differ from the estimated
results. During the course of the financial statement closing process,
Clearwater Paper may identify items that would require it to make
adjustments, which may be material, to the estimated range of net sales
set forth above or the amount of Adjusted EBITDA.
There can be no assurance that these preliminary results will not differ
from the financial information reflected in Clearwater Paper's financial
statements for such period when they have been finalized or that these
preliminary results are indicative of future performance.
This announcement of Clearwater Paper's preliminary financial results is
being made in connection with its previously announced offering of $350
million of debt securities.
Use of Non-GAAP Financial Measures
This press release includes a statement regarding the non-GAAP financial
measure entitled "Adjusted EBITDA." Clearwater Paper defines Adjusted
EBITDA as EBITDA adjusted for non-recurring expenses or income,
including debt retirement costs and alternative fuel tax credits.
EBITDA, as defined by Clearwater Paper, is net earnings adjusted for net
interest expense, income taxes, and depreciation and amortization.
Adjusted EBITDA is a non-GAAP measure that Clearwater Paper's management
uses to evaluate the cash generating capacity of Clearwater Paper. The
most directly comparable GAAP measure for Adjusted EBITDA is net
earnings.
Clearwater Paper believes that the presentation of non-GAAP financial
measures enhances an investor's understanding of its financial
performance. Clearwater Paper believes that Adjusted EBITDA is a useful
financial metric to assess its operating performance from period to
period by excluding certain items that it believes is not representative
of its business. Clearwater Paper believes that Adjusted EBITDA will
provide investors with a useful tool for assessing the comparability
between periods of its ability to generate cash from operations
sufficient to pay taxes, to service debt and to undertake capital
expenditures. Clearwater Paper uses these financial measures for
business planning purposes and in measuring performance relative to that
of our respective competitors.
In addition, Clearwater Paper believes Adjusted EBITDA is a measure
commonly used by investors to evaluate its performance and that of its
competitors. They are not presentations made in accordance with GAAP and
the use of the term Adjusted EBITDA varies from others in Clearwater
Paper's industry. This financial measure should not be considered an
alternative to other performance measures derived in accordance with
GAAP as measures of operating performance or operating cash flows or as
measures of liquidity.
Adjusted EBITDA has important limitations as an analytical tool and you
should not consider it in isolation or as a substitute for analysis of
Clearwater Paper's results as reported under GAAP. For example, Adjusted
EBITDA:
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excludes certain tax payments that may represent a reduction in cash
available to us;
-
does not reflect any cash capital expenditure requirements for the
assets being depreciated and amortized that may have to be replaced in
the future;
-
does not reflect changes in, or cash requirements for, our working
capital needs;
-
does not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments, on
our debt; and
-
other companies in our industry may calculate EBITDA and Adjusted
EBITDA differently than we do, limiting their usefulness as
comparative measures.
Because of these limitations, EBITDA and Adjusted EBITDA should not be
considered as measures of discretionary cash available to us to invest
in the growth of our business. We compensate for these limitations by
relying primarily on our U.S. GAAP results and we use EBITDA and
Adjusted EBITDA only supplementally.
CONFERENCE CALL INFORMATION
Clearwater Paper will host its scheduled third quarter 2010 financial
results conference call on Thursday, October 28, 2010, at 8 a.m. Pacific
Time (11 a.m. Eastern Time) to discuss its third quarter financial
results in more detail. Clearwater Paper will issue its complete
financial results press release before the market opens the same day.
Investors may access the conference call by dialing 877-303-9241 (for
US/Canada investors) or 760-666-3575 (for international investors). The
audio Web cast may be accessed on Clearwater Paper's Web site at http://ir.clearwaterpaper.com/events.cfm.
An accompanying presentation will be available for downloading from http://ir.clearwaterpaper.com/events.cfm
before the market opens. The Web cast will be audio only. Investors are
recommended to download the accompanying presentation prior to the call.
For those unable to participate in the call, an archived recording will
be available through Clearwater Paper's Web site at www.clearwaterpaper.com
under "Investor Relations" following the conference call.
FORWARD-LOOKING STATEMENTS SAFE HARBOR
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including statements regarding Clearwater Paper's results of
operations and financial condition at and for the three months ended
September 30, 2010. These forward-looking statements are based on
current expectations, estimates, assumptions and projections that are
subject to change, and actual results may differ materially from the
forward-looking statements. Factors that could cause actual results to
differ materially include, but are not limited to, adjustments to
Clearwater Paper's preliminary results in the course of the financial
closing process, Clearwater Paper's ability to execute on its expansion
plans; customers' product preferences, changes in the United States and
international economies; changes in raw material and energy costs;
cyclical industry conditions; loss of a large customer; changes in the
alternative fuel mixture tax credit regulations and Clearwater Paper's
eligibility for such tax credits; competitive pricing pressure for
Clearwater Paper's products; changes in freight costs and disruptions in
transportation services; unanticipated manufacturing disruptions;
changes in general and industry-specific laws and regulations;
unforeseen environmental liabilities or expenditures; labor disruptions;
and other risks and uncertainties described from time to time in
Clearwater Paper's public filings with the Securities and Exchange
Commission. The forward-looking statements are made as of the date of
this press release and Clearwater Paper does not undertake to update any
forward-looking statements.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, bleached
paperboard and wood products at six facilities across the country.
Clearwater Paper is a premier supplier of private label tissue to major
retail grocery chains, and also produces bleached paperboard used by
quality-conscious printers and packaging converters. Clearwater Paper's
2,500 employees build shareholder value by developing strong customer
partnerships through quality and service.
For additional information on Clearwater Paper, please visit our
website at www.clearwaterpaper.com.
SOURCE: Clearwater Paper Corporation
Clearwater Paper Corporation
News media:
Matt Van Vleet, 509-344-5912
or
CFO:
Linda Massman, 509-344-5905
or
Investors:
IR Sense
Sean Butson, 509-344-5906
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