SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE:CLW) today reported financial
results for the fourth quarter and full year of 2013.
The company reported net sales of $470.2 million for the fourth quarter
of 2013, compared to net sales of $462.7 million for the fourth quarter
of 2012. Net earnings determined in accordance with generally accepted
accounting principles, or GAAP, for the fourth quarter of 2013 were
$82.9 million, or $3.87 per diluted share, compared to net earnings of
$19.9 million, or $0.84 per diluted share, for the fourth quarter of
2012. The 2013 fourth quarter GAAP net earnings included a $59.7 million
net benefit, comprised of a $62.8 million benefit from the release of
reserves for uncertain tax positions, $1.0 million of after-tax expense
associated with the mark-to-market impact of directors' equity-based
compensation and $2.1 million of after-tax expense associated with the
closing of the company's Thomaston, Georgia, converting and distribution
facility. Excluding those items, fourth quarter 2013 adjusted net
earnings were $23.1 million, or $1.09 per diluted share, compared to
fourth quarter 2012 adjusted net earnings of $19.4 million, or $0.82 per
diluted share.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, was $61.0 million for the fourth quarter of 2013. Adjusted
EBITDA of $65.4 million was up 16.7% compared to fourth quarter 2012
Adjusted EBITDA of $56.1 million. The increase in EBITDA and Adjusted
EBITDA was due primarily to approximately $7.0 million of contribution
from our through-air-dried, or TAD, expansion.
"Strong fourth-quarter performance reflects the strength of the
company's team to succeed despite the high level of competition in the
marketplace," said president and chief executive officer Linda Massman.
"The Pulp and Paperboard division also generated a record $43.2 million
in Adjusted EBITDA."
During the fourth quarter, the company completed its $100 million share
buyback program. Under the program, the company repurchased 2.1 million
shares at an average cost of $48.31 per share.
FOURTH QUARTER 2013 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $282.1 million for the
fourth quarter of 2013, slightly higher than fourth quarter 2012 net
sales of $280.6 million. This increase was primarily driven by increased
TAD sales, partially offset by lower non-retail sales. Operating income
decreased to $14.4 million from $22.9 million in the prior year period,
driven by lower shipments, $3.1 million of costs related to the closure
of the company's Thomaston facility, higher pulp, energy, packaging and
labor costs as well as increased depreciation year over year. Adjusted
operating income of $17.5 million for the fourth quarter of 2013, after
adjusting out $3.1 million of costs related to the Thomaston facility
closure, was down $5.4 million from the same period in 2012.
-
Total tissue sales volumes of 128,470 tons in the fourth quarter of
2013 were down 1.7% compared to the fourth quarter of 2012. Converted
product cases shipped were 13.342 million, flat compared to the fourth
quarter of 2012.
-
Average net selling prices increased 2.3% to $2,196 per ton in the
fourth quarter of 2013, compared to the fourth quarter of 2012 due to
improved mix from increased TAD sales.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $188.0 million for the
fourth quarter of 2013, up 3.3% compared to fourth quarter 2012 net
sales of $182.1 million. The increase was primarily due to stable
volumes reflecting strong market backlogs and higher pricing in the
fourth quarter of 2013 compared to the fourth quarter of 2012. Operating
income for the quarter increased $11.4 million to $37.2 million,
compared to $25.8 million for the fourth quarter of 2012, primarily due
to improved sales mix and lower maintenance and fiber costs, partially
offset by higher energy costs.
-
Paperboard sales volumes decreased 0.8% to 188,776 tons in the fourth
quarter of 2013, compared to 190,339 tons in the fourth quarter of
2012.
-
Paperboard net selling prices increased 4.5% to $978 per ton compared
to the fourth quarter of 2012 as a result of price increases
implemented during the year.
Taxes
The company's GAAP tax rate for the fourth quarter of 2013 was a benefit
of 206.5% compared to an expense of 30.2% in the fourth quarter of 2012.
The benefit in 2013 is predominantly a result of the release of
uncertain tax position reserves related to alternative fuel mixture tax
credits. On an adjusted basis, the fourth quarter 2013 tax rate was
approximately 26.6%. The company expects its annual GAAP and adjusted
tax rates to be approximately 38% for 2014.
Note Regarding Use of Non-GAAP Financial Measures
In this press release, the company presents its results for the fourth
quarters of 2013 and 2012, including EBITDA, Adjusted EBITDA, adjusted
net earnings and adjusted net earnings per diluted share. These amounts
are not in accordance with GAAP, and accordingly reconciliations to net
earnings and net earnings per diluted share as determined in accordance
with GAAP are included at the end of this press release. The company
presents these amounts because management believes they assist investors
and analysts in comparing the company's performance across reporting
periods on a consistent basis by excluding items that the company does
not believe are indicative of its core operating performance.
CONFERENCE CALL INFORMATION
A live audio webcast and conference call will be held today, Wednesday,
February 5, 2014, at 2 p.m. Pacific time (5 p.m. Eastern time).
Investors may access the conference call by dialing 877-303-9241 (for
U.S./Canada investors) or 760-666-3575 (for international investors).
The audio webcast may be accessed on the company's website at http://ir.clearwaterpaper.com/events.cfm.
An accompanying presentation including supplemental information will be
available for downloading at the same site at 1:05 p.m. Pacific time
(4:05 p.m. Eastern time). The webcast will be audio only. The company
recommends that investors download the accompanying presentation prior
to the call.
For those unable to participate in the call, an archived recording will
be available through the Clearwater Paper Corporation website at www.clearwaterpaper.com
under "Investor Relations" following the conference call.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, parent roll tissue, machine-glazed tissue, bleached paperboard
and pulp at 14 manufacturing locations in the U.S. and Canada. The
company is a premier supplier of private label tissue to major retailers
and wholesale distributors. This includes grocery, drug, mass merchants
and discount stores. The company also produces bleached paperboard used
by quality-conscious printers and packaging converters. Clearwater
Paper's employees build shareholder value by developing strong customer
relationships through quality and service.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including market competition and adjusted tax rates for 2014.
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, customer acceptance and timing of
purchases of the company's new TAD products and quantity; competitive
pricing pressures for the company's products, including as a result of
increased capacity as additional manufacturing facilities are operated
by the company's competitors; difficulties with the optimization and
realization of the benefits expected from the company's new TAD paper
machine and converting lines at North Carolina; the loss of business
from a significant customer; manufacturing or operating disruptions,
including IT system failures, equipment malfunction and damage to the
company's manufacturing facilities; changes in the cost and availability
of wood fiber and wood pulp; changes in transportation costs and
disruptions in transportation services; labor disruptions; changes in
costs for and availability of packaging supplies, chemicals, energy and
maintenance and repairs; changes in customer product preferences and
competitors' product offerings; changes in expenses and required
contributions associated with the company's pension plans; environmental
liabilities or expenditures; changes in the U.S. and international
economies and in general economic conditions in the regions and
industries in which the company operates; increased supply and pricing
pressures resulting from increasing Asian paper production capabilities;
cyclical industry conditions; reliance on a limited number of
third-party suppliers for raw materials; inability to successfully
implement the company's expansion strategies; the company's
qualification to retain, or ability to utilize, tax credits associated
with alternative fuels or cellulosic biofuels and the tax treatment
associated with receipt of such credits; and other risks and
uncertainties described from time to time in the company's public
filings with the Securities and Exchange Commission. The forward-looking
statements are made as of the date of this press release and the company
does not undertake to update any forward-looking statements.
For additional information on Clearwater Paper, please visit the
company's website at www.clearwaterpaper.com.
|
|
|
Clearwater Paper Corporation |
|
Consolidated Statements of Operations
|
|
Unaudited (Dollars in thousands - except per-share amounts)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
Net sales
|
|
|
$
|
470,159
|
|
|
|
100
|
%
|
|
|
$
|
462,701
|
|
|
|
100
|
%
|
|
|
|
|
$
|
1,889,830
|
|
|
|
100
|
%
|
|
|
$
|
1,874,304
|
|
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
(401,404
|
)
|
|
|
85
|
%
|
|
|
|
(396,428
|
)
|
|
|
86
|
%
|
|
|
|
|
|
(1,671,371
|
)
|
|
|
88
|
%
|
|
|
|
(1,607,872
|
)
|
|
|
86
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
(30,466
|
)
|
|
|
6
|
%
|
|
|
|
(30,793
|
)
|
|
|
7
|
%
|
|
|
|
|
|
(119,131
|
)
|
|
|
6
|
%
|
|
|
|
(121,045
|
)
|
|
|
6
|
%
|
|
Total operating costs and expenses
|
|
|
|
(431,870
|
)
|
|
|
92
|
%
|
|
|
|
(427,221
|
)
|
|
|
92
|
%
|
|
|
|
|
|
(1,790,502
|
)
|
|
|
95
|
%
|
|
|
|
(1,728,917
|
)
|
|
|
92
|
%
|
|
Income from operations
|
|
|
|
38,289
|
|
|
|
8
|
%
|
|
|
|
35,480
|
|
|
|
8
|
%
|
|
|
|
|
|
99,328
|
|
|
|
5
|
%
|
|
|
|
145,387
|
|
|
|
8
|
%
|
|
Interest expense, net
|
|
|
|
(11,252
|
)
|
|
|
2
|
%
|
|
|
|
(7,021
|
)
|
|
|
2
|
%
|
|
|
|
|
|
(44,036
|
)
|
|
|
2
|
%
|
|
|
|
(33,796
|
)
|
|
|
2
|
%
|
|
Debt retirement costs
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
(17,058
|
)
|
|
|
1
|
%
|
|
|
|
-
|
|
|
|
-
|
|
|
Earnings before income taxes
|
|
|
|
27,037
|
|
|
|
6
|
%
|
|
|
|
28,459
|
|
|
|
6
|
%
|
|
|
|
|
|
38,234
|
|
|
|
2
|
%
|
|
|
|
111,591
|
|
|
|
6
|
%
|
|
Income tax benefit (provision)
|
|
|
|
55,825
|
|
|
|
12
|
%
|
|
|
|
(8,607
|
)
|
|
|
2
|
%
|
|
|
|
|
|
68,721
|
|
|
|
4
|
%
|
|
|
|
(47,460
|
)
|
|
|
3
|
%
|
|
Net earnings
|
|
|
$
|
82,862
|
|
|
|
18
|
%
|
|
|
$
|
19,852
|
|
|
|
4
|
%
|
|
|
|
|
$
|
106,955
|
|
|
|
6
|
%
|
|
|
$
|
64,131
|
|
|
|
3
|
%
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
3.91
|
|
|
|
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
$
|
4.84
|
|
|
|
|
|
|
$
|
2.75
|
|
|
|
|
|
Diluted
|
|
|
|
3.87
|
|
|
|
|
|
|
|
0.84
|
|
|
|
|
|
|
|
|
|
4.80
|
|
|
|
|
|
|
|
2.72
|
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
21,188
|
|
|
|
|
|
|
|
23,181
|
|
|
|
|
|
|
|
|
|
22,081
|
|
|
|
|
|
|
|
23,299
|
|
|
|
|
|
Diluted
|
|
|
|
21,401
|
|
|
|
|
|
|
|
23,532
|
|
|
|
|
|
|
|
|
|
22,264
|
|
|
|
|
|
|
|
23,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Condensed Consolidated Balance Sheets
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
$
|
23,675
|
|
|
|
|
|
$
|
12,579
|
|
|
Restricted cash
|
|
|
|
|
|
1,500
|
|
|
|
|
|
|
-
|
|
|
Short-term investments
|
|
|
|
|
|
70,000
|
|
|
|
|
|
|
20,000
|
|
|
Receivables, net
|
|
|
|
|
|
158,874
|
|
|
|
|
|
|
154,143
|
|
|
Taxes receivable
|
|
|
|
|
|
10,503
|
|
|
|
|
|
|
20,828
|
|
|
Inventories
|
|
|
|
|
|
267,788
|
|
|
|
|
|
|
231,466
|
|
|
Deferred tax assets
|
|
|
|
|
|
37,538
|
|
|
|
|
|
|
17,136
|
|
|
Prepaid expenses
|
|
|
|
|
|
5,523
|
|
|
|
|
|
|
12,314
|
|
|
Total current assets
|
|
|
|
|
|
575,401
|
|
|
|
|
|
|
468,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
|
884,698
|
|
|
|
|
|
|
877,377
|
|
|
Goodwill
|
|
|
|
|
|
229,533
|
|
|
|
|
|
|
229,533
|
|
|
Intangible assets, net
|
|
|
|
|
|
40,778
|
|
|
|
|
|
|
47,753
|
|
|
Pension assets
|
|
|
|
|
|
4,488
|
|
|
|
|
|
|
-
|
|
|
Other assets, net
|
|
|
|
|
|
9,927
|
|
|
|
|
|
|
10,327
|
|
|
TOTAL ASSETS
|
|
|
|
|
$
|
1,744,825
|
|
|
|
|
|
$
|
1,633,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
$
|
190,648
|
|
|
|
|
|
$
|
165,596
|
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
|
|
|
|
8,778
|
|
|
|
|
|
|
9,137
|
|
|
Total current liabilities
|
|
|
|
|
|
199,426
|
|
|
|
|
|
|
174,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
|
650,000
|
|
|
|
|
|
|
523,933
|
|
|
Liability for pensions and other postretirement employee benefits
|
|
|
|
|
|
109,807
|
|
|
|
|
|
|
204,163
|
|
|
Other long-term obligations
|
|
|
|
|
|
52,942
|
|
|
|
|
|
|
50,910
|
|
|
Accrued taxes
|
|
|
|
|
|
2,658
|
|
|
|
|
|
|
78,699
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
124,898
|
|
|
|
|
|
|
60,124
|
|
|
Stockholders' equity, excluding accumulated other comprehensive
loss, net of tax
|
|
|
|
|
|
663,187
|
|
|
|
|
|
|
656,587
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
|
|
|
(58,093
|
)
|
|
|
|
|
|
(115,693
|
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
$
|
1,744,825
|
|
|
|
|
|
$
|
1,633,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Consolidated Statements of Cash Flows
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
For the Years Ended
December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
$
|
106,955
|
|
|
|
|
|
$
|
64,131
|
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
90,272
|
|
|
|
|
|
|
79,333
|
|
|
Non-cash adjustments to unrecognized taxes
|
|
|
|
|
|
(75,308
|
)
|
|
|
|
|
|
3,275
|
|
|
Deferred tax provision
|
|
|
|
|
|
5,629
|
|
|
|
|
|
|
12,870
|
|
|
Equity-based compensation expense
|
|
|
|
|
|
10,960
|
|
|
|
|
|
|
9,703
|
|
|
Employee benefit plans
|
|
|
|
|
|
10,131
|
|
|
|
|
|
|
9,366
|
|
|
Deferred issuance costs and discounts on long-term debt
|
|
|
|
|
|
4,964
|
|
|
|
|
|
|
2,010
|
|
|
Disposal of plant and equipment, net
|
|
|
|
|
|
1,493
|
|
|
|
|
|
|
2,003
|
|
|
Changes in working capital, net
|
|
|
|
|
|
(15,022
|
)
|
|
|
|
|
|
61,281
|
|
|
Changes in taxes receivable, net
|
|
|
|
|
|
10,325
|
|
|
|
|
|
|
(10,828
|
)
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
|
|
-
|
|
|
|
|
|
|
(15,837
|
)
|
|
Changes in non-current accrued taxes, net
|
|
|
|
|
|
569
|
|
|
|
|
|
|
960
|
|
|
Funding of qualified pension plans
|
|
|
|
|
|
(15,050
|
)
|
|
|
|
|
|
(20,627
|
)
|
|
Changes in restricted cash
|
|
|
|
|
|
(32
|
)
|
|
|
|
|
|
769
|
|
|
Other, net
|
|
|
|
|
|
471
|
|
|
|
|
|
|
284
|
|
|
Net cash flows from operating activities
|
|
|
|
|
|
136,357
|
|
|
|
|
|
|
198,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Changes in short-term investments, net
|
|
|
|
|
|
(50,000
|
)
|
|
|
|
|
|
35,001
|
|
|
Additions to plant and equipment
|
|
|
|
|
|
(90,593
|
)
|
|
|
|
|
|
(203,776
|
)
|
|
Cash paid for acquisitions, net of cash acquired
|
|
|
|
|
|
-
|
|
|
|
|
|
|
(9,264
|
)
|
|
Proceeds from sale of assets
|
|
|
|
|
|
-
|
|
|
|
|
|
|
1,035
|
|
|
Net cash flows from investing activities
|
|
|
|
|
|
(140,593
|
)
|
|
|
|
|
|
(177,004
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
|
|
|
275,000
|
|
|
|
|
|
|
-
|
|
|
Repayment of long-term debt
|
|
|
|
|
|
(150,000
|
)
|
|
|
|
|
|
-
|
|
|
Purchase of treasury stock
|
|
|
|
|
|
(100,000
|
)
|
|
|
|
|
|
(18,650
|
)
|
|
Payments for long-term debt issuance costs
|
|
|
|
|
|
(4,837
|
)
|
|
|
|
|
|
(2
|
)
|
|
Payment of tax withholdings on equity-based payment arrangements
|
|
|
|
|
|
(4,831
|
)
|
|
|
|
|
|
(13,234
|
)
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
|
|
-
|
|
|
|
|
|
|
15,837
|
|
|
Other, net
|
|
|
|
|
|
-
|
|
|
|
|
|
|
(1,500
|
)
|
|
Net cash flows from financing activities
|
|
|
|
|
|
15,332
|
|
|
|
|
|
|
(17,549
|
)
|
|
Increase in cash
|
|
|
|
|
|
11,096
|
|
|
|
|
|
|
4,140
|
|
|
Cash at beginning of period
|
|
|
|
|
|
12,579
|
|
|
|
|
|
|
8,439
|
|
|
Cash at end of period
|
|
|
|
|
$
|
23,675
|
|
|
|
|
|
$
|
12,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Segment Information
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
Segment net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
$
|
282,147
|
|
|
|
60
|
%
|
|
|
$
|
280,645
|
|
|
|
61
|
%
|
|
|
$
|
1,149,692
|
|
|
|
61
|
%
|
|
|
$
|
1,134,556
|
|
|
|
61
|
%
|
|
Pulp and Paperboard
|
|
|
|
188,012
|
|
|
|
40
|
%
|
|
|
|
182,056
|
|
|
|
39
|
%
|
|
|
|
740,138
|
|
|
|
39
|
%
|
|
|
|
739,748
|
|
|
|
39
|
%
|
|
Total segment net sales
|
|
|
$
|
470,159
|
|
|
|
100
|
%
|
|
|
$
|
462,701
|
|
|
|
100
|
%
|
|
|
$
|
1,889,830
|
|
|
|
100
|
%
|
|
|
$
|
1,874,304
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
$
|
14,415
|
|
|
|
38
|
%
|
|
|
$
|
22,927
|
|
|
|
65
|
%
|
|
|
$
|
52,799
|
|
|
|
53
|
%
|
|
|
$
|
93,347
|
|
|
|
64
|
%
|
|
Pulp and Paperboard
|
|
|
|
37,167
|
|
|
|
97
|
%
|
|
|
|
25,802
|
|
|
|
73
|
%
|
|
|
|
95,781
|
|
|
|
96
|
%
|
|
|
|
103,910
|
|
|
|
71
|
%
|
|
|
|
|
|
51,582
|
|
|
|
|
|
|
|
48,729
|
|
|
|
|
|
|
|
148,580
|
|
|
|
|
|
|
|
197,257
|
|
|
|
|
|
Corporate
|
|
|
|
(13,293
|
)
|
|
|
35
|
%
|
|
|
|
(13,249
|
)
|
|
|
37
|
%
|
|
|
|
(49,252
|
)
|
|
|
50
|
%
|
|
|
|
(51,870
|
)
|
|
|
36
|
%
|
|
Income from operations
|
|
|
$
|
38,289
|
|
|
|
100
|
%
|
|
|
$
|
35,480
|
|
|
|
100
|
%
|
|
|
$
|
99,328
|
|
|
|
100
|
%
|
|
|
$
|
145,387
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Consolidated Net Earnings to EBITDA and Adjusted
EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
2013
|
|
|
2012
|
|
Net earnings
|
|
|
$
|
82,862
|
|
|
|
$
|
19,852
|
|
|
|
|
|
$
|
106,955
|
|
|
|
$
|
64,131
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net1 |
|
|
|
11,252
|
|
|
|
|
7,021
|
|
|
|
|
|
|
61,094
|
|
|
|
|
33,796
|
|
Income tax (benefit) provision
|
|
|
|
(55,825
|
)
|
|
|
|
8,607
|
|
|
|
|
|
|
(68,721
|
)
|
|
|
|
47,460
|
|
Depreciation and amortization expense
|
|
|
|
22,688
|
|
|
|
|
20,856
|
|
|
|
|
|
|
90,272
|
|
|
|
|
79,333
|
|
EBITDA2 |
|
|
$
|
60,977
|
|
|
|
$
|
56,336
|
|
|
|
|
|
$
|
189,600
|
|
|
|
$
|
224,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation expense
|
|
|
|
1,392
|
|
|
|
|
(337
|
)
|
|
|
|
|
|
4,084
|
|
|
|
|
1,369
|
|
Costs associated with Thomaston facility closure
|
|
|
|
3,064
|
|
|
|
|
-
|
|
|
|
|
|
|
5,977
|
|
|
|
|
-
|
|
Expenses associated with Metso litigation
|
|
|
|
-
|
|
|
|
|
71
|
|
|
|
|
|
|
-
|
|
|
|
|
2,019
|
|
Loss on sale of foam assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
1,014
|
|
Adjusted EBITDA3 |
|
|
$
|
65,433
|
|
|
|
$
|
56,070
|
|
|
|
|
|
$
|
199,661
|
|
|
|
$
|
229,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Interest expense, net, for the year ended December 31, 2013 includes
debt retirement costs of $17.1 million.
|
|
|
|
|
|
|
|
2 |
|
EBITDA is a non-GAAP measure that management uses as supplemental
performance measures. The most directly comparable GAAP measure is
net earnings. EBITDA is net earnings adjusted for net interest
expense (including debt retirement costs), income taxes, and
depreciation and amortization. It should not be considered as an
alternative to net earnings computed under GAAP.
|
|
|
|
|
|
|
|
3 |
|
Adjusted EBITDA excludes the impact of the items listed that we do
not believe are indicative of our core operating performance.
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Operating Income (Loss) to Segment EBITDA and
Segment Adjusted EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
Consumer Products
|
|
|
2013
|
|
|
2012
|
|
|
|
|
2013
|
|
|
2012
|
|
Operating income
|
|
|
$
|
14,415
|
|
|
|
$
|
22,927
|
|
|
|
|
|
$
|
52,799
|
|
|
|
$
|
93,347
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
|
|
16,073
|
|
|
|
|
14,855
|
|
|
|
|
|
|
65,197
|
|
|
|
|
54,547
|
|
|
Segment EBITDA1 |
|
|
$
|
30,488
|
|
|
|
$
|
37,782
|
|
|
|
|
|
$
|
117,996
|
|
|
|
$
|
147,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of foam assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
1,014
|
|
|
Costs associated with Thomaston facility closure
|
|
|
|
3,064
|
|
|
|
|
-
|
|
|
|
|
|
|
5,977
|
|
|
|
|
-
|
|
|
Segment Adjusted EBITDA2 |
|
|
$
|
33,552
|
|
|
|
$
|
37,782
|
|
|
|
|
|
$
|
123,973
|
|
|
|
$
|
148,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
Pulp and Paperboard
|
|
|
2013
|
|
|
2012
|
|
|
|
|
2013
|
|
|
2012
|
|
Operating income
|
|
|
$
|
37,167
|
|
|
|
$
|
25,802
|
|
|
|
|
|
$
|
95,781
|
|
|
|
$
|
103,910
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
|
|
6,071
|
|
|
|
|
5,566
|
|
|
|
|
|
|
23,266
|
|
|
|
|
23,113
|
|
|
Segment EBITDA1 |
|
|
$
|
43,238
|
|
|
|
$
|
31,368
|
|
|
|
|
|
$
|
119,047
|
|
|
|
$
|
127,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA2 |
|
|
$
|
43,238
|
|
|
|
$
|
31,368
|
|
|
|
|
|
$
|
119,047
|
|
|
|
$
|
127,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
Corporate
|
|
|
2013
|
|
|
2012
|
|
|
|
|
2013
|
|
|
2012
|
|
Operating loss
|
|
|
$
|
(13,293
|
)
|
|
|
$
|
(13,249
|
)
|
|
|
|
|
$
|
(49,252
|
)
|
|
|
$
|
(51,870
|
)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
|
|
544
|
|
|
|
|
435
|
|
|
|
|
|
|
1,809
|
|
|
|
|
1,673
|
|
|
Segment EBITDA1 |
|
|
$
|
(12,749
|
)
|
|
|
$
|
(12,814
|
)
|
|
|
|
|
$
|
(47,443
|
)
|
|
|
$
|
(50,197
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses associated with Metso litigation
|
|
|
|
-
|
|
|
|
|
71
|
|
|
|
|
|
|
-
|
|
|
|
|
2,019
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
|
1,392
|
|
|
|
|
(337
|
)
|
|
|
|
|
|
4,084
|
|
|
|
|
1,369
|
|
|
Segment Adjusted EBITDA2 |
|
|
$
|
(11,357
|
)
|
|
|
$
|
(13,080
|
)
|
|
|
|
|
$
|
(43,359
|
)
|
|
|
$
|
(46,809
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Segment EBITDA is a non-GAAP measure that management uses to
evaluate the cash generating capacity of the company. The most
directly comparable GAAP measure is segment operating income.
Segment EBITDA is segment operating income adjusted for depreciation
and amortization. It should not be considered as an alternative to
segment operating income computed under GAAP.
|
|
|
|
|
|
|
|
2 |
|
Segment Adjusted EBITDA excludes the impact of the items listed that
we do not believe are indicative of our core operating performance.
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Non-GAAP Financial Measures
|
|
Unaudited (Dollars in thousands, except per-share amounts)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings
|
|
|
$
|
82,862
|
|
|
|
$
|
19,852
|
|
|
|
|
|
$
|
106,955
|
|
|
|
$
|
64,131
|
|
Special items, after-tax1 :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of foam assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
658
|
|
Expenses associated with Metso litigation
|
|
|
|
-
|
|
|
|
|
41
|
|
|
|
|
|
|
-
|
|
|
|
|
1,310
|
|
Debt retirement costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
10,781
|
|
|
|
|
-
|
|
Directors' equity-based compensation expense
|
|
|
|
976
|
|
|
|
|
(194
|
)
|
|
|
|
|
|
2,685
|
|
|
|
|
760
|
|
Costs associated with Thomaston facility closure
|
|
|
|
2,149
|
|
|
|
|
-
|
|
|
|
|
|
|
3,944
|
|
|
|
|
-
|
|
Discrete tax items related to release of uncertain tax positions
|
|
|
|
(62,798
|
)
|
|
|
|
-
|
|
|
|
|
|
|
(67,457
|
)
|
|
|
|
-
|
|
Discrete tax items related to AFMTC/CBPC credit conversions
|
|
|
|
(66
|
)
|
|
|
|
(306
|
)
|
|
|
|
|
|
(9,832
|
)
|
|
|
|
6,398
|
|
Discrete tax items related to additional CBPC
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
(3,495
|
)
|
|
|
|
-
|
|
Adjusted net earnings2 |
|
|
$
|
23,123
|
|
|
|
$
|
19,393
|
|
|
|
|
|
$
|
43,581
|
|
|
|
$
|
73,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings per diluted share
|
|
|
$
|
3.87
|
|
|
|
$
|
0.84
|
|
|
|
|
|
$
|
4.80
|
|
|
|
$
|
2.72
|
|
Special items, after-tax1 :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of foam assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
0.03
|
|
Expenses associated with Metso litigation
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
0.05
|
|
Debt retirement costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
0.48
|
|
|
|
|
-
|
|
Directors' equity-based compensation expense
|
|
|
|
0.05
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
0.12
|
|
|
|
|
0.03
|
|
Costs associated with Thomaston facility closure
|
|
|
|
0.10
|
|
|
|
|
-
|
|
|
|
|
|
|
0.18
|
|
|
|
|
-
|
|
Discrete tax items related to release of uncertain tax positions
|
|
|
|
(2.93
|
)
|
|
|
|
-
|
|
|
|
|
|
|
(3.03
|
)
|
|
|
|
-
|
|
Discrete tax items related to AFMTC/CBPC credit conversions
|
|
|
|
-
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
|
(0.44
|
)
|
|
|
|
0.27
|
|
Discrete tax items related to additional CBPC
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
(0.16
|
)
|
|
|
|
-
|
|
Adjusted net earnings per diluted share2 |
|
|
$
|
1.09
|
|
|
|
$
|
0.82
|
|
|
|
|
|
$
|
1.96
|
|
|
|
$
|
3.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
Tax effect was calculated using the estimated annual effective tax
rate for the period presented.
|
|
|
|
|
|
|
|
2 |
|
Adjusted net earnings and Adjusted net earnings per diluted share
exclude the impact of the items listed that we do not believe are
indicative of our core operating performance.
|
Clearwater Paper Corporation
News media:
Matt Van Vleet,
509-344-5912
or
CFO:
John Hertz, 509-344-5905
or
Investors:
IR
Sense
Sean Butson, 509-344-5906
Source: Clearwater Paper Corporation
News Provided by Acquire Media