SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE: CLW) today reported financial
results for the third quarter of 2014.
The company reported net sales of $511.1 million for the third quarter
of 2014, up 4.8% compared to net sales of $487.8 million for the third
quarter of 2013. Net earnings determined in accordance with generally
accepted accounting principles, or GAAP, for the third quarter of 2014
were $6.3 million, or $0.31 per diluted share, compared to $13.3
million, or $0.60 per diluted share, for the third quarter of 2013. The
2014 third quarter GAAP net earnings include $15.8 million of after-tax
debt retirement costs, $3.1 million of after-tax expense associated with
the closure of the company's Thomaston, Georgia, and Long Island, New
York, converting and distribution facilities, $0.1 million of after-tax
benefit from directors' equity-based compensation and $0.7 million of
after-tax expense from costs associated with the optimization of the
specialty paper group within the Consumer Products segment. Excluding
those items, third quarter 2014 adjusted net earnings were $25.7
million, or $1.28 per diluted share, compared to third quarter 2013
adjusted net earnings of $6.4 million, or $0.29 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, was $66.3 million for the third quarter of 2014, compared to
third quarter 2013 EBITDA of $41.0 million. Adjusted EBITDA for the
quarter was $72.0 million, up 67.0% compared to third quarter 2013
Adjusted EBITDA of $43.1 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.
"During the third quarter, we delivered Clearwater Paper's highest
quarterly revenue and adjusted EBITDA in company history, which is
reflective of our sharp focus on operational efficiencies, meeting
customer commitments and producing high-quality products," said Linda K.
Massman, president and chief executive officer. "The recent completion
of our $100 million stock repurchase authorization is indicative of
Clearwater Paper's positive long-term outlook for the business and our
continuing commitment to return capital to shareholders."
During the third quarter, the company completed its most recent $100
million share buyback program. Under the program, the company
repurchased 1.6 million shares at an average cost of $63.50 per share.
THIRD QUARTER 2014 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $306.1 million for the
third quarter of 2014, up 4.5% compared to third quarter 2013 net sales
of $292.9 million. This improvement was primarily driven by increased
TAD sales resulting in average higher selling prices. On a GAAP basis,
the segment had operating income of $12.5 million, compared to operating
income of $13.4 million in the prior year period. Adjusted operating
income of $17.9 million for the third quarter of 2014 was up $2.8
million compared to the same period in 2013, after adjusting for costs
related to the Thomaston and Long Island facility closures totaling $4.8
million and $1.7 million in the third quarters of 2014 and 2013,
respectively, and $0.6 million of specialty paper group optimization
costs in 2014.
-
Total tissue sales volumes of 135,066 tons in the third quarter of
2014 were up 1.1% compared to the third quarter of 2013. Converted
product cases shipped were 14.4 million, up 2.6% compared to the third
quarter of 2013.
-
Average tissue net selling prices increased 3.1% to $2,259 per ton in
the third quarter of 2014, compared to the third quarter of 2013, due
to improved mix from increased TAD sales.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $205.0 million for the
third quarter of 2014, up 5.2% compared to third quarter 2013 net sales
of $194.9 million. The increase was primarily due to strong shipments
supported by strong market backlogs and higher pricing in the third
quarter of 2014 compared to the third quarter of 2013. Operating income
for the quarter increased $29.3 million to $45.6 million, compared to
$16.3 million for the third quarter of 2013, primarily due to improved
volume and pricing coupled with lower maintenance costs.
-
Paperboard sales volumes increased 1.1% to 201,609 tons in the third
quarter of 2014, compared to 199,408 tons in the third quarter of 2013.
-
Paperboard net selling prices increased 4.4% to $1,016 per ton
compared to the third quarter of 2013 as a result of price increases
implemented during 2014 and improved mix.
Taxes
The company's GAAP tax rate for the third quarter of 2014 was 37.4%
compared to a benefit of 63.7% in the third quarter of 2013. The rate in
2013 was a result of adjustments for the Cellulosic Biofuel Producer
Credit tax credit conversion and release of related reserves. On an
adjusted basis, the third quarter 2014 tax rate was 35.9% 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 third quarters of 2014 and 2013, including adjusted
net earnings, adjusted net earnings per diluted share, EBITDA, Adjusted
EBITDA 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 believes are not
indicative of its core operating performance.
WEBCAST INFORMATION
Clearwater Paper Corporation will discuss these results during an
earnings conference call that begins at 2 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 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 operational efficiencies, customer commitments,
production, business outlook, return of capital 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
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
Net sales
|
|
|
|
$
|
511,142
|
|
|
|
100
|
%
|
|
|
$
|
487,845
|
|
|
|
100
|
%
|
|
|
$
|
1,494,821
|
|
|
|
100
|
%
|
|
|
$
|
1,419,671
|
|
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
(434,457
|
)
|
|
|
85
|
%
|
|
|
|
(441,237
|
)
|
|
|
90
|
%
|
|
|
|
(1,295,197
|
)
|
|
|
87
|
%
|
|
|
|
(1,269,967
|
)
|
|
|
89
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
|
(31,817
|
)
|
|
|
6
|
%
|
|
|
|
(27,766
|
)
|
|
|
6
|
%
|
|
|
|
(96,896
|
)
|
|
|
6
|
%
|
|
|
|
(88,665
|
)
|
|
|
6
|
%
|
|
Impairment of assets
|
|
|
|
|
(890
|
)
|
|
|
0
|
%
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(5,149
|
)
|
|
|
0
|
%
|
|
|
|
-
|
|
|
|
-
|
|
|
Total operating costs and expenses
|
|
|
|
|
(467,164
|
)
|
|
|
91
|
%
|
|
|
|
(469,003
|
)
|
|
|
96
|
%
|
|
|
|
(1,397,242
|
)
|
|
|
93
|
%
|
|
|
|
(1,358,632
|
)
|
|
|
96
|
%
|
|
Income from operations
|
|
|
|
|
43,978
|
|
|
|
9
|
%
|
|
|
|
18,842
|
|
|
|
4
|
%
|
|
|
|
97,579
|
|
|
|
7
|
%
|
|
|
|
61,039
|
|
|
|
4
|
%
|
|
Interest expense, net
|
|
|
|
|
(9,570
|
)
|
|
|
2
|
%
|
|
|
|
(10,708
|
)
|
|
|
2
|
%
|
|
|
|
(30,992
|
)
|
|
|
2
|
%
|
|
|
|
(32,784
|
)
|
|
|
2
|
%
|
|
Debt retirement costs
|
|
|
|
|
(24,420
|
)
|
|
|
5
|
%
|
|
|
|
-
|
|
|
|
0
|
%
|
|
|
|
(24,420
|
)
|
|
|
2
|
%
|
|
|
|
(17,058
|
)
|
|
|
1
|
%
|
|
Earnings before income taxes
|
|
|
|
|
9,988
|
|
|
|
2
|
%
|
|
|
|
8,134
|
|
|
|
2
|
%
|
|
|
|
42,167
|
|
|
|
3
|
%
|
|
|
|
11,197
|
|
|
|
1
|
%
|
|
Income tax (provision) benefit
|
|
|
|
|
(3,735
|
)
|
|
|
1
|
%
|
|
|
|
5,183
|
|
|
|
1
|
%
|
|
|
|
(17,235
|
)
|
|
|
1
|
%
|
|
|
|
12,896
|
|
|
|
1
|
%
|
|
Net earnings
|
|
|
|
$
|
6,253
|
|
|
|
1
|
%
|
|
|
$
|
13,317
|
|
|
|
3
|
%
|
|
|
$
|
24,932
|
|
|
|
2
|
%
|
|
|
$
|
24,093
|
|
|
|
2
|
%
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.32
|
|
|
|
|
|
|
$
|
0.60
|
|
|
|
|
|
|
$
|
1.23
|
|
|
|
|
|
|
$
|
1.08
|
|
|
|
|
|
Diluted
|
|
|
|
|
0.31
|
|
|
|
|
|
|
|
0.60
|
|
|
|
|
|
|
|
1.21
|
|
|
|
|
|
|
|
1.07
|
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
19,755
|
|
|
|
|
|
|
|
22,027
|
|
|
|
|
|
|
|
20,322
|
|
|
|
|
|
|
|
22,389
|
|
|
|
|
|
Diluted
|
|
|
|
|
20,100
|
|
|
|
|
|
|
|
22,228
|
|
|
|
|
|
|
|
20,659
|
|
|
|
|
|
|
|
22,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Condensed Consolidated Balance Sheets
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
$
|
13,578
|
|
|
|
$
|
23,675
|
|
|
Restricted cash
|
|
|
|
|
-
|
|
|
|
|
1,500
|
|
|
Short-term investments
|
|
|
|
|
-
|
|
|
|
|
70,000
|
|
|
Receivables, net
|
|
|
|
|
178,175
|
|
|
|
|
158,874
|
|
|
Taxes receivable
|
|
|
|
|
2,609
|
|
|
|
|
10,503
|
|
|
Inventories
|
|
|
|
|
282,457
|
|
|
|
|
267,788
|
|
|
Deferred tax assets
|
|
|
|
|
24,864
|
|
|
|
|
37,538
|
|
|
Prepaid expenses
|
|
|
|
|
6,461
|
|
|
|
|
5,523
|
|
|
Total current assets
|
|
|
|
|
508,144
|
|
|
|
|
575,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
878,423
|
|
|
|
|
884,698
|
|
|
Goodwill
|
|
|
|
|
229,533
|
|
|
|
|
229,533
|
|
|
Intangible assets, net
|
|
|
|
|
34,589
|
|
|
|
|
40,778
|
|
|
Pension assets
|
|
|
|
|
18,656
|
|
|
|
|
4,488
|
|
|
Other assets, net
|
|
|
|
|
9,224
|
|
|
|
|
9,927
|
|
|
TOTAL ASSETS
|
|
|
|
$
|
1,678,569
|
|
|
|
$
|
1,744,825
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
$
|
223,236
|
|
|
|
$
|
190,648
|
|
|
Short-term borrowings
|
|
|
|
|
47,047
|
|
|
|
|
-
|
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
|
|
|
8,778
|
|
|
|
|
8,778
|
|
|
Total current liabilities
|
|
|
|
|
279,061
|
|
|
|
|
199,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
575,000
|
|
|
|
|
650,000
|
|
|
Liability for pensions and other postretirement employee benefits
|
|
|
|
|
103,909
|
|
|
|
|
109,807
|
|
|
Other long-term obligations
|
|
|
|
|
49,443
|
|
|
|
|
52,942
|
|
|
Accrued taxes
|
|
|
|
|
2,807
|
|
|
|
|
2,658
|
|
|
Deferred tax liabilities
|
|
|
|
|
127,393
|
|
|
|
|
124,898
|
|
|
Stockholders' equity, excluding accumulated other comprehensive
loss, net of tax
|
|
|
|
|
595,444
|
|
|
|
|
663,187
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
|
|
(54,488
|
)
|
|
|
|
(58,093
|
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
$
|
1,678,569
|
|
|
|
$
|
1,744,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Consolidated Statements of Cash Flows
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
$
|
24,932
|
|
|
|
$
|
24,093
|
|
|
Adjustments to reconcile net earnings to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
66,539
|
|
|
|
|
67,584
|
|
|
Equity-based compensation expense
|
|
|
|
|
9,201
|
|
|
|
|
7,758
|
|
|
Impairment of assets
|
|
|
|
|
5,149
|
|
|
|
|
-
|
|
|
Deferred tax provision (benefit)
|
|
|
|
|
12,895
|
|
|
|
|
(9,678
|
)
|
|
Employee benefit plans
|
|
|
|
|
1,603
|
|
|
|
|
7,801
|
|
|
Deferred issuance costs and discounts on long-term debt
|
|
|
|
|
5,864
|
|
|
|
|
4,490
|
|
|
Disposal of plant and equipment, net
|
|
|
|
|
747
|
|
|
|
|
35
|
|
|
Changes in working capital, net
|
|
|
|
|
(13,190
|
)
|
|
|
|
47
|
|
|
Changes in taxes receivable, net
|
|
|
|
|
7,894
|
|
|
|
|
12,448
|
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
|
(1,508
|
)
|
|
|
|
-
|
|
|
Changes in non-current accrued taxes, net
|
|
|
|
|
149
|
|
|
|
|
(10,535
|
)
|
|
Funding of qualified pension plans
|
|
|
|
|
(15,957
|
)
|
|
|
|
(12,611
|
)
|
|
Other, net
|
|
|
|
|
(2,387
|
)
|
|
|
|
108
|
|
|
Net cash flows from operating activities
|
|
|
|
|
101,931
|
|
|
|
|
91,540
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Changes in short-term investments, net
|
|
|
|
|
70,000
|
|
|
|
|
(69,000
|
)
|
|
Additions to plant and equipment
|
|
|
|
|
(54,029
|
)
|
|
|
|
(54,400
|
)
|
|
Proceeds from sale of assets
|
|
|
|
|
733
|
|
|
|
|
-
|
|
|
Net cash flows from investing activities
|
|
|
|
|
16,704
|
|
|
|
|
(123,400
|
)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
|
|
300,000
|
|
|
|
|
275,000
|
|
|
Repayment of long-term debt
|
|
|
|
|
(375,000
|
)
|
|
|
|
(150,000
|
)
|
|
Purchase of treasury stock
|
|
|
|
|
(100,000
|
)
|
|
|
|
(75,783
|
)
|
|
Changes in short-term borrowings, net
|
|
|
|
|
47,047
|
|
|
|
|
-
|
|
|
Payments for long-term debt issuance costs
|
|
|
|
|
(2,995
|
)
|
|
|
|
(4,834
|
)
|
|
Payment of tax withholdings on equity-based payment arrangements
|
|
|
|
|
(792
|
)
|
|
|
|
(4,173
|
)
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
|
1,508
|
|
|
|
|
-
|
|
|
Other, net
|
|
|
|
|
1,500
|
|
|
|
|
-
|
|
|
Net cash flows from financing activities
|
|
|
|
|
(128,732
|
)
|
|
|
|
40,210
|
|
|
(Decrease) increase in cash
|
|
|
|
|
(10,097
|
)
|
|
|
|
8,350
|
|
|
Cash at beginning of period
|
|
|
|
|
23,675
|
|
|
|
|
12,579
|
|
|
Cash at end of period
|
|
|
|
$
|
13,578
|
|
|
|
$
|
20,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Segment Information
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
|
2014
|
|
|
|
|
|
2013
|
|
|
|
|
Segment net sales1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
|
$
|
306,104
|
|
|
|
60
|
%
|
|
|
$
|
292,935
|
|
|
|
60
|
%
|
|
|
$
|
891,742
|
|
|
|
60
|
%
|
|
|
$
|
867,545
|
|
|
|
61
|
%
|
|
Pulp and Paperboard
|
|
|
|
|
205,038
|
|
|
|
40
|
%
|
|
|
|
194,910
|
|
|
|
40
|
%
|
|
|
|
603,079
|
|
|
|
40
|
%
|
|
|
|
552,126
|
|
|
|
39
|
%
|
|
Total segment net sales
|
|
|
|
$
|
511,142
|
|
|
|
100
|
%
|
|
|
$
|
487,845
|
|
|
|
100
|
%
|
|
|
$
|
1,494,821
|
|
|
|
100
|
%
|
|
|
$
|
1,419,671
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
|
$
|
12,535
|
|
|
|
29
|
%
|
|
|
$
|
13,445
|
|
|
|
71
|
%
|
|
|
$
|
24,717
|
|
|
|
25
|
%
|
|
|
$
|
38,384
|
|
|
|
63
|
%
|
|
Pulp and Paperboard
|
|
|
|
|
45,602
|
|
|
|
104
|
%
|
|
|
|
16,289
|
|
|
|
86
|
%
|
|
|
|
116,013
|
|
|
|
119
|
%
|
|
|
|
58,614
|
|
|
|
96
|
%
|
|
|
|
|
|
|
58,137
|
|
|
|
|
|
|
|
29,734
|
|
|
|
|
|
|
|
140,730
|
|
|
|
|
|
|
|
96,998
|
|
|
|
|
|
Corporate
|
|
|
|
|
(14,159
|
)
|
|
|
32
|
%
|
|
|
|
(10,892
|
)
|
|
|
58
|
%
|
|
|
|
(43,151
|
)
|
|
|
44
|
%
|
|
|
|
(35,959
|
)
|
|
|
59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
$
|
43,978
|
|
|
|
100
|
%
|
|
|
$
|
18,842
|
|
|
|
100
|
%
|
|
|
$
|
97,579
|
|
|
|
100
|
%
|
|
|
$
|
61,039
|
|
|
|
100
|
%
|
|
|
1 In 2013, pulp not utilized internally was sold by the Pulp
and Paperboard segment to external customers resulting in net sales of
$0.4 million and $2.5 million, respectively, during the three and nine
months ended September 30, 2013. Commencing in 2014, the majority of
excess pulp is sold by the Consumer Products segment and totaled $1.6
million, of which $0.9 million was sold during the third quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Consolidated Net Earnings to EBITDA and Adjusted
EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net earnings
|
|
|
|
$
|
6,253
|
|
|
|
$
|
13,317
|
|
|
|
$
|
24,932
|
|
|
$
|
24,093
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net1 |
|
|
|
|
33,990
|
|
|
|
|
10,708
|
|
|
|
|
55,412
|
|
|
|
49,842
|
|
|
Income tax provision (benefit)
|
|
|
|
|
3,735
|
|
|
|
|
(5,183
|
)
|
|
|
|
17,235
|
|
|
|
(12,896
|
)
|
|
Depreciation and amortization expense
|
|
|
|
|
22,293
|
|
|
|
|
22,180
|
|
|
|
|
66,539
|
|
|
|
67,584
|
|
|
EBITDA2 |
|
|
|
$
|
66,271
|
|
|
|
$
|
41,022
|
|
|
|
$
|
164,118
|
|
|
$
|
128,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
|
$
|
(185
|
)
|
|
|
$
|
361
|
|
|
|
$
|
2,596
|
|
|
$
|
2,692
|
|
|
Costs associated with Thomaston facility closure
|
|
|
|
|
42
|
|
|
|
|
1,717
|
|
|
|
|
1,166
|
|
|
|
2,913
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
|
4,767
|
|
|
|
|
-
|
|
|
|
|
15,042
|
|
|
|
-
|
|
|
Costs associated with the optimization of the specialty paper group
|
|
|
|
|
1,066
|
|
|
|
|
-
|
|
|
|
|
1,066
|
|
|
|
-
|
|
|
Adjusted EBITDA3 |
|
|
|
$
|
71,961
|
|
|
|
$
|
43,100
|
|
|
|
$
|
183,988
|
|
|
$
|
134,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Interest expense, net for the three and nine months ended
September 30, 2014 includes debt retirement costs of $24.4
million. Interest expense, net for the nine months ended September 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
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings
|
|
|
|
$
|
6,253
|
|
|
|
$
|
13,317
|
|
|
|
$
|
24,932
|
|
|
$
|
24,093
|
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt retirement costs
|
|
|
|
|
15,777
|
|
|
|
|
-
|
|
|
|
|
15,777
|
|
|
|
10,781
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
|
|
(120
|
)
|
|
|
|
221
|
|
|
|
|
1,659
|
|
|
|
1,709
|
|
|
Costs associated with Thomaston facility closure
|
|
|
|
|
27
|
|
|
|
|
1,052
|
|
|
|
|
749
|
|
|
|
1,795
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
|
3,069
|
|
|
|
|
-
|
|
|
|
|
9,656
|
|
|
|
-
|
|
|
Costs associated with the optimization of the specialty paper group
|
|
|
|
|
689
|
|
|
|
|
-
|
|
|
|
|
689
|
|
|
|
-
|
|
|
Discrete tax items related to state tax rate changes
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,388
|
|
|
|
-
|
|
|
Discrete tax items related to release of uncertain tax positions
|
|
|
|
|
-
|
|
|
|
|
(4,659
|
)
|
|
|
|
-
|
|
|
|
(4,659
|
)
|
|
Discrete tax items related to AFMTC/CBPC credit conversions
|
|
|
|
|
-
|
|
|
|
|
(3,495
|
)
|
|
|
|
-
|
|
|
|
(13,261
|
)
|
|
Adjusted net earnings2 |
|
|
|
$
|
25,695
|
|
|
|
$
|
6,436
|
|
|
|
$
|
54,850
|
|
|
$
|
20,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings per diluted share
|
|
|
|
$
|
0.31
|
|
|
|
$
|
0.60
|
|
|
|
$
|
1.21
|
|
|
$
|
1.07
|
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt retirement costs
|
|
|
|
|
0.78
|
|
|
|
|
-
|
|
|
|
|
0.76
|
|
|
|
0.48
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
|
|
(0.01
|
)
|
|
|
|
0.01
|
|
|
|
|
0.08
|
|
|
|
0.08
|
|
|
Costs associated with Thomaston facility closure
|
|
|
|
|
-
|
|
|
|
|
0.05
|
|
|
|
|
0.04
|
|
|
|
0.08
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
|
0.15
|
|
|
|
|
-
|
|
|
|
|
0.47
|
|
|
|
-
|
|
|
Costs associated with the optimization of the specialty paper group
|
|
|
|
|
0.03
|
|
|
|
|
-
|
|
|
|
|
0.03
|
|
|
|
-
|
|
|
Discrete tax items related to state tax rate changes
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.07
|
|
|
|
-
|
|
|
Discrete tax items related to release of uncertain tax positions
|
|
|
|
|
-
|
|
|
|
|
(0.21
|
)
|
|
|
|
-
|
|
|
|
(0.21
|
)
|
|
Discrete tax items related to AFMTC/CBPC credit conversions
|
|
|
|
|
-
|
|
|
|
|
(0.16
|
)
|
|
|
|
-
|
|
|
|
(0.59
|
)
|
|
Adjusted net earnings per diluted share2 |
|
|
|
$
|
1.28
|
|
|
|
$
|
0.29
|
|
|
|
$
|
2.66
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
News media:
Matt Van Vleet,
509-344-5912
or
Investors:
Robin Yim, 509-344-5906
Source: Clearwater Paper Corporation
News Provided by Acquire Media