SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE:CLW) today reported financial
results for the second quarter of 2014.
The company reported net sales of $498.8 million for the second quarter
of 2014, up 5.9% compared to net sales of $471.0 million for the second
quarter of 2013. Net earnings determined in accordance with generally
accepted accounting principles, or GAAP, for the second quarter of 2014
were $12.5 million, or $0.61 per diluted share, compared to $11.7
million, or $0.52 per diluted share, for the second quarter of 2013. The
2014 second quarter GAAP net earnings include $1.4 million of after-tax
expense associated with the closure of the company's Thomaston, Georgia,
and Long Island, New York, converting and distribution facilities and
$1.4 million of expense from the net impact of changes related to
amendments to state tax returns and state tax rate changes. Excluding
those items, second quarter 2014 adjusted net earnings were $15.3
million, or $0.74 per diluted share, compared to second quarter 2013
adjusted net earnings of $11.6 million, or $0.51 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, was $55.1 million for the second quarter of 2014. Adjusted
EBITDA for the quarter was $57.3 million, up 8.4% compared to second
quarter 2013 Adjusted EBITDA of $52.8 million. The increase in EBITDA
and Adjusted EBITDA was due primarily to strong paperboard markets and
pricing as well as increased contribution from the company's
through-air-dried, or TAD, expansion.
"The Pulp and Paperboard and Consumer Products divisions both delivered
solid results in the second quarter," said Linda K. Massman, president
and chief executive officer. "In Consumer Products, we hit record TAD
product sales with strong customer momentum going forward. Continued
demand for our paperboard products also remains strong giving us a
positive outlook for the remainder of the year."
On February 5, 2014, the company announced that the Board of Directors
had approved a new stock repurchase program authorizing the repurchase
of up to $100.0 million of the company's common stock. During the second
quarter, the company repurchased 0.7 million shares of common stock at a
total cost of $45.0 million. Through July 22, the company repurchased
1.3 million shares of common stock at an average price of $62.21 per
share under this repurchase program.
SECOND QUARTER 2014 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $299.1 million for the
second quarter of 2014, up 3.2% compared to second quarter 2013 net
sales of $289.7 million. This increase was primarily driven by increased
TAD sales and slightly higher non-retail sales. On a GAAP basis, the
segment had operating income of $12.7 million, compared to operating
income of $14.8 million in the prior year period. Adjusted operating
income of $14.9 million for the second quarter of 2014 was down $0.9
million compared to the same period in 2013, after adjusting for costs
related to the Thomaston and Long Island facility closures totaling $2.2
million and $1.0 million in the second quarters of 2014 and 2013,
respectively. The lower results in the most recent period were driven
primarily by approximately $2 million in higher energy costs partially
offset by lower depreciation costs due to the facility closures.
-
Total tissue sales volumes of 134,841 tons in the second quarter of
2014 were up 2.1% compared to the second quarter of 2013. Converted
product cases shipped were 14.1 million, up slightly compared to the
second quarter of 2013.
-
Average tissue net selling prices increased 1.0% to $2,217 per ton in
the second quarter of 2014, compared to the second quarter of 2013,
due to improved mix from increased TAD sales.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $199.6 million for the
second quarter of 2014, up 10.1% compared to second quarter 2013 net
sales of $181.3 million. The increase was primarily due to strong
shipments supported by strong market backlogs and higher pricing in the
second quarter of 2014 compared to the second quarter of 2013. Operating
income for the quarter increased $8.8 million to $33.6 million, compared
to $24.8 million for the second quarter of 2013, primarily due to
improved volume and pricing coupled with lower raw materials costs
partially offset by higher maintenance costs.
-
Paperboard sales volumes increased 2.8% to 195,924 tons in the second
quarter of 2014, compared to 190,518 tons in the second quarter of
2013.
-
Paperboard net selling prices increased 7.5% to $1,017 per ton
compared to the second quarter of 2013 as a result of price increases
implemented during the year and improved mix.
Taxes
The company's GAAP tax rate for the second quarter of 2014 was 44.4%
compared to 37.4% in the second quarter of 2013. The higher rate in 2014
was a result of the net impact of changes related to amendments to state
tax returns and state tax rate changes. On an adjusted basis, the second
quarter 2014 tax rate was 38% and the company expects its annual GAAP
and adjusted tax rate to be approximately 38% for 2014.
Note Regarding Use of Non-GAAP Financial Measures
In this press release, the company presents certain non-GAAP financial
information for the second quarters of 2014 and 2013, including EBITDA,
Adjusted EBITDA, adjusted net earnings, adjusted net earnings per
diluted share and adjusted operating income. Because these amounts are
not in accordance with GAAP, 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
non-GAAP 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.
WEBCAST INFORMATION
Clearwater Paper Corporation will discuss these results during an
earnings conference call that begins at 2:00 p.m. Pacific Time today. A
live webcast and accompanying supplemental information, which provide
certain outlook information, will be available on the company's website
at http://ir.clearwaterpaper.com.
A replay of today's conference call will be available on the website at http://ir.clearwaterpaper.com/results.cfm
beginning at 5:00 p.m. Pacific Time today.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, parent roll tissue, machine-glazed tissue, bleached paperboard
and pulp at 13 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 the company's operational and financial outlook,
demand for TAD tissue products and paperboard and the company's expected
tax rate 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 quantity and timing of purchases of the company's new TAD products;
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 in North Carolina; the loss
of or changes in prices in regards to 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 other risks and uncertainties described from time to time
in the company's public filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 2013. 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 based on new developments or changes in
the company's expectations.
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
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
Net sales
|
|
$
|
498,759
|
|
|
100
|
%
|
|
$
|
471,002
|
|
|
100
|
%
|
|
$
|
983,679
|
|
|
100
|
%
|
|
$
|
931,826
|
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
(434,111
|
)
|
|
87
|
%
|
|
|
(414,521
|
)
|
|
88
|
%
|
|
|
(860,740
|
)
|
|
88
|
%
|
|
|
(828,730
|
)
|
|
89
|
%
|
|
Selling, general and administrative expenses
|
|
|
(31,565
|
)
|
|
6
|
%
|
|
|
(26,767
|
)
|
|
6
|
%
|
|
|
(65,079
|
)
|
|
7
|
%
|
|
|
(60,899
|
)
|
|
7
|
%
|
|
Impairment of assets
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(4,259
|
)
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
Total operating costs and expenses
|
|
|
(465,676
|
)
|
|
93
|
%
|
|
|
(441,288
|
)
|
|
94
|
%
|
|
|
(930,078
|
)
|
|
95
|
%
|
|
|
(889,629
|
)
|
|
95
|
%
|
|
Income from operations
|
|
|
33,083
|
|
|
7
|
%
|
|
|
29,714
|
|
|
6
|
%
|
|
|
53,601
|
|
|
5
|
%
|
|
|
42,197
|
|
|
5
|
%
|
|
Interest expense, net
|
|
|
(10,688
|
)
|
|
2
|
%
|
|
|
(11,094
|
)
|
|
2
|
%
|
|
|
(21,422
|
)
|
|
2
|
%
|
|
|
(22,076
|
)
|
|
2
|
%
|
|
Debt retirement costs
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(17,058
|
)
|
|
2
|
%
|
|
Earnings before income taxes
|
|
|
22,395
|
|
|
4
|
%
|
|
|
18,620
|
|
|
4
|
%
|
|
|
32,179
|
|
|
3
|
%
|
|
|
3,063
|
|
|
-
|
|
|
Income tax (provision) benefit
|
|
|
(9,942
|
)
|
|
2
|
%
|
|
|
(6,962
|
)
|
|
1
|
%
|
|
|
(13,500
|
)
|
|
1
|
%
|
|
|
7,713
|
|
|
1
|
%
|
|
Net earnings
|
|
$
|
12,453
|
|
|
2
|
%
|
|
$
|
11,658
|
|
|
2
|
%
|
|
$
|
18,679
|
|
|
2
|
%
|
|
$
|
10,776
|
|
|
1
|
%
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.61
|
|
|
|
|
$
|
0.52
|
|
|
|
|
$
|
0.91
|
|
|
|
|
$
|
0.48
|
|
|
|
|
Diluted
|
|
|
0.61
|
|
|
|
|
|
0.52
|
|
|
|
|
|
0.90
|
|
|
|
|
|
0.47
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
20,256
|
|
|
|
|
|
22,279
|
|
|
|
|
|
20,614
|
|
|
|
|
|
22,574
|
|
|
|
|
Diluted
|
|
|
20,517
|
|
|
|
|
|
22,558
|
|
|
|
|
|
20,870
|
|
|
|
|
|
22,833
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Condensed Consolidated Balance Sheets
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash
|
|
$
|
22,481
|
|
|
$
|
23,675
|
|
|
Restricted cash
|
|
|
1,501
|
|
|
|
1,500
|
|
|
Short-term investments
|
|
|
59,000
|
|
|
|
70,000
|
|
|
Receivables, net
|
|
|
168,555
|
|
|
|
158,874
|
|
|
Taxes receivable
|
|
|
6,840
|
|
|
|
10,503
|
|
|
Inventories
|
|
|
264,874
|
|
|
|
267,788
|
|
|
Deferred tax assets
|
|
|
29,536
|
|
|
|
37,538
|
|
|
Prepaid expenses
|
|
|
8,085
|
|
|
|
5,523
|
|
|
Total current assets
|
|
|
560,872
|
|
|
|
575,401
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
873,284
|
|
|
|
884,698
|
|
|
Goodwill
|
|
|
229,533
|
|
|
|
229,533
|
|
|
Intangible assets, net
|
|
|
36,208
|
|
|
|
40,778
|
|
|
Pension assets
|
|
|
11,284
|
|
|
|
4,488
|
|
|
Other assets, net
|
|
|
9,374
|
|
|
|
9,927
|
|
|
TOTAL ASSETS
|
|
$
|
1,720,555
|
|
|
$
|
1,744,825
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
220,393
|
|
|
$
|
190,648
|
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
|
8,778
|
|
|
|
8,778
|
|
|
Total current liabilities
|
|
|
229,171
|
|
|
|
199,426
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
650,000
|
|
|
|
650,000
|
|
|
Liability for pensions and other postretirement employee benefits
|
|
|
105,015
|
|
|
|
109,807
|
|
|
Other long-term obligations
|
|
|
50,212
|
|
|
|
52,942
|
|
|
Accrued taxes
|
|
|
2,694
|
|
|
|
2,658
|
|
|
Deferred tax liabilities
|
|
|
128,270
|
|
|
|
124,898
|
|
|
Stockholders' equity, excluding accumulated other comprehensive
loss, net of tax
|
|
|
610,882
|
|
|
|
663,187
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
(55,689
|
)
|
|
|
(58,093
|
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
1,720,555
|
|
|
$
|
1,744,825
|
|
|
|
|
Clearwater Paper Corporation |
|
Consolidated Statements of Cash Flows
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
Net earnings
|
|
$
|
18,679
|
|
|
$
|
10,776
|
|
|
Adjustments to reconcile net earnings to net cash flows from
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
44,246
|
|
|
|
45,404
|
|
|
Equity-based compensation expense
|
|
|
6,910
|
|
|
|
5,581
|
|
|
Impairment of assets
|
|
|
4,259
|
|
|
|
-
|
|
|
Deferred tax provision (benefit)
|
|
|
9,857
|
|
|
|
(9,384
|
)
|
|
Employee benefit plans
|
|
|
979
|
|
|
|
5,098
|
|
|
Deferred issuance costs and discounts on long-term debt
|
|
|
949
|
|
|
|
4,017
|
|
|
Disposal of plant and equipment, net
|
|
|
422
|
|
|
|
-
|
|
|
Changes in working capital, net
|
|
|
14,818
|
|
|
|
(43,805
|
)
|
|
Changes in taxes receivable, net
|
|
|
3,663
|
|
|
|
11,918
|
|
|
Changes in non-current accrued taxes, net
|
|
|
36
|
|
|
|
(2,763
|
)
|
|
Funding of qualified pension plans
|
|
|
(8,889
|
)
|
|
|
(4,633
|
)
|
|
Other, net
|
|
|
(1,016
|
)
|
|
|
(237
|
)
|
|
Net cash flows from operating activities
|
|
|
94,913
|
|
|
|
21,972
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
Changes in short-term investments, net
|
|
|
11,000
|
|
|
|
(60,000
|
)
|
|
Additions to plant and equipment
|
|
|
(32,612
|
)
|
|
|
(31,413
|
)
|
|
Proceeds from sale of assets
|
|
|
619
|
|
|
|
-
|
|
|
Net cash flows from investing activities
|
|
|
(20,993
|
)
|
|
|
(91,413
|
)
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
-
|
|
|
|
275,000
|
|
|
Repayment of long-term debt
|
|
|
-
|
|
|
|
(150,000
|
)
|
|
Purchase of treasury stock
|
|
|
(74,322
|
)
|
|
|
(59,984
|
)
|
|
Payments for long-term debt issuance costs
|
|
|
-
|
|
|
|
(4,779
|
)
|
|
Payment of tax withholdings on equity-based payment arrangements
|
|
|
(792
|
)
|
|
|
(2,195
|
)
|
|
Net cash flows from financing activities
|
|
|
(75,114
|
)
|
|
|
58,042
|
|
|
Decrease in cash
|
|
|
(1,194
|
)
|
|
|
(11,399
|
)
|
|
Cash at beginning of period
|
|
|
23,675
|
|
|
|
12,579
|
|
|
Cash at end of period
|
|
$
|
22,481
|
|
|
$
|
1,180
|
|
|
|
|
Clearwater Paper Corporation |
|
Segment Information
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
Segment net sales1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
$
|
299,130
|
|
|
60
|
%
|
|
$
|
289,708
|
|
|
62
|
%
|
|
$
|
585,638
|
|
|
60
|
%
|
|
$
|
574,610
|
|
|
62
|
%
|
|
Pulp and Paperboard
|
|
|
199,629
|
|
|
40
|
%
|
|
|
181,294
|
|
|
38
|
%
|
|
|
398,041
|
|
|
40
|
%
|
|
|
357,216
|
|
|
38
|
%
|
|
Total segment net sales
|
|
$
|
498,759
|
|
|
100
|
%
|
|
$
|
471,002
|
|
|
100
|
%
|
|
$
|
983,679
|
|
|
100
|
%
|
|
$
|
931,826
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
$
|
12,705
|
|
|
38
|
%
|
|
$
|
14,815
|
|
|
50
|
%
|
|
$
|
12,182
|
|
|
23
|
%
|
|
$
|
24,939
|
|
|
59
|
%
|
|
Pulp and Paperboard
|
|
|
33,635
|
|
|
102
|
%
|
|
|
24,772
|
|
|
83
|
%
|
|
|
70,411
|
|
|
131
|
%
|
|
|
42,325
|
|
|
100
|
%
|
|
|
|
|
46,340
|
|
|
|
|
|
39,587
|
|
|
|
|
|
82,593
|
|
|
|
|
|
67,264
|
|
|
|
|
Corporate
|
|
|
(13,257
|
)
|
|
40
|
%
|
|
|
(9,873
|
)
|
|
33
|
%
|
|
|
(28,992
|
)
|
|
54
|
%
|
|
|
(25,067
|
)
|
|
59
|
%
|
|
Income from operations
|
|
$
|
33,083
|
|
|
100
|
%
|
|
$
|
29,714
|
|
|
100
|
%
|
|
$
|
53,601
|
|
|
100
|
%
|
|
$
|
42,197
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 In 2013, pulp not utilized internally was sold by the
Pulp and Paperboard segment to external customers resulting in net
sales of $0.9 million and $2.1 million, respectively, during the
three and six months ended June 30, 2013. Commencing in 2014, the
majority of excess pulp is sold by the Consumer Products segment
and totaled $0.7 million, of which $0.3 million was sold during
the second quarter.
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Consolidated Net Earnings to EBITDA and Adjusted
EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Net earnings
|
|
$
|
12,453
|
|
|
$
|
11,658
|
|
|
$
|
18,679
|
|
$
|
10,776
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Interest expense, net 1 |
|
|
10,688
|
|
|
|
11,094
|
|
|
|
21,422
|
|
|
39,134
|
|
|
Income tax provision (benefit)
|
|
|
9,942
|
|
|
|
6,962
|
|
|
|
13,500
|
|
|
(7,713
|
)
|
|
Depreciation and amortization expense
|
|
|
22,015
|
|
|
|
23,253
|
|
|
|
44,246
|
|
|
45,404
|
|
|
EBITDA 2 |
|
$
|
55,098
|
|
|
$
|
52,967
|
|
|
$
|
97,847
|
|
$
|
87,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
$
|
(36
|
)
|
|
$
|
(1,141
|
)
|
|
$
|
2,781
|
|
$
|
2,331
|
|
|
Costs associated with Thomaston facility closure
|
|
|
374
|
|
|
|
1,013
|
|
|
|
1,124
|
|
|
1,196
|
|
|
Costs associated with Long Island facility closure
|
|
|
1,843
|
|
|
|
-
|
|
|
|
10,275
|
|
|
-
|
|
|
Adjusted EBITDA 3 |
|
$
|
57,279
|
|
|
$
|
52,839
|
|
|
$
|
112,027
|
|
$
|
91,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Interest expense, net for the six months ended June
30, 2013 includes debt retirement costs of $17.1 million.
|
|
2EBITDA is a non-GAAP measure that management
uses to evaluate the cash generating capacity of the company. 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.
|
|
3Adjusted 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
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings
|
|
$
|
12,453
|
|
|
$
|
11,658
|
|
|
$
|
18,679
|
|
$
|
10,776
|
|
|
Special items, after-tax1 :
|
|
|
|
|
|
|
|
|
|
Debt retirement costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
10,781
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
(23
|
)
|
|
|
(706
|
)
|
|
|
1,779
|
|
|
1,488
|
|
|
Costs associated with Thomaston facility closure
|
|
|
242
|
|
|
|
627
|
|
|
|
722
|
|
|
743
|
|
|
Costs associated with Long Island facility closure
|
|
|
1,193
|
|
|
|
-
|
|
|
|
6,587
|
|
|
-
|
|
|
Discrete tax items related to state tax rate changes
|
|
|
1,388
|
|
|
|
-
|
|
|
|
1,388
|
|
|
-
|
|
|
Discrete tax items related to AFMTC/CBPC credit conversions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
(9,766
|
)
|
|
Adjusted net earnings 2 |
|
$
|
15,253
|
|
|
$
|
11,579
|
|
|
$
|
29,155
|
|
$
|
14,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings per diluted share
|
|
$
|
0.61
|
|
|
$
|
0.52
|
|
|
$
|
0.90
|
|
$
|
0.47
|
|
|
Special items, after-tax1 :
|
|
|
|
|
|
|
|
|
|
Debt retirement costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
0.47
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
-
|
|
|
|
(0.03
|
)
|
|
|
0.09
|
|
|
0.07
|
|
|
Costs associated with Thomaston facility closure
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.03
|
|
|
0.03
|
|
|
Costs associated with Long Island facility closure
|
|
|
0.06
|
|
|
|
-
|
|
|
|
0.32
|
|
|
-
|
|
|
Discrete tax items related to state tax rate changes
|
|
|
0.07
|
|
|
|
-
|
|
|
|
0.07
|
|
|
-
|
|
|
Discrete tax items related to AFMTC/CBPC credit conversions
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
(0.43
|
)
|
|
Adjusted net earnings per diluted share 2 |
|
$
|
0.74
|
|
|
$
|
0.51
|
|
|
$
|
1.40
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Tax effect was calculated using the estimated annual
effective tax rate for the period presented.
|
|
2Adjusted 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
Matt Van Vleet, 509-344-5912 (News
media)
or
Robin Yim, 509-344-5906 (Investors)
Source: Clearwater Paper Corporation
News Provided by Acquire Media