SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE:CLW) today reported financial
results for the third quarter of 2016.
The company reported net sales of $435.3 million for the third quarter
of 2016, down 1.6% compared to net sales of $442.2 million for the third
quarter of 2015. Net earnings determined in accordance with generally
accepted accounting principles, or GAAP, for the third quarter of 2016
were $0.9 million, or $0.05 per diluted share, compared to $23.1
million, or $1.21 per diluted share, for the third quarter of 2015.
Excluding certain items identified in the attached reconciliations to
GAAP, third quarter 2016 adjusted net earnings were $2.4 million, or
$0.14 per diluted share, compared to third quarter 2015 adjusted net
earnings of $24.4 million, or $1.28 per diluted share. The decrease in
net earnings was due primarily to $18.0 million of pre-tax planned major
maintenance at the company's Lewiston, Idaho pulp and paperboard
facility, lower paperboard pricing and shipments, $3.5 million of
pre-tax net costs incurred from an unplanned power outage at the
Lewiston facility, a $3.5 million pre-tax settlement charge associated
with a pension lump sum buyout, and contractual wage increases. These
items were partially offset by higher productivity and lower input costs
for transportation, chemicals and natural gas.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, was $32.0 million for the third quarter of 2016 compared to
$61.3 million for the third quarter of 2015. Adjusted EBITDA for the
quarter was $34.3 million, down 45.7% compared to third quarter 2015
Adjusted EBITDA of $63.2 million.
"Clearwater Paper achieved third quarter financial results at the high
end of our outlook with increased retail sales volumes in consumer
products that helped to mitigate continued challenging paperboard market
conditions," said Linda K. Massman, president and chief executive
officer. "The team's outstanding focus on implementing our strategic
capital projects and operational efficiencies also contributed to our
results."
"Through the third quarter, we have purchased approximately 1.1 million
shares at an average price of $46.91 as part of our $100 million stock
repurchase program we announced last December. Our stock repurchase
program reflects our confidence in future cash generation capabilities
and a commitment to return capital to shareholders," said Massman.
THIRD QUARTER 2016 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $253.3 million for the
third quarter of 2016, up 2.5% compared to third quarter 2015 net sales
of $247.0 million. This increase was due to market share gains, which
resulted in growth of total tissue volume and a richer product mix that
included a 7.0% increase in retail tons sold.
On a GAAP basis, the segment had operating income of $17.2 million in
the third quarter of 2016, compared to operating income of $15.5 million
in the third quarter of 2015. Adjusted operating income of $15.9 million
for the third quarter of 2016 was down from $16.7 million compared to
the same period in 2015, after adjusting for a $1.8 million net gain in
the third quarter of 2016 resulting from the release of an indemnity
escrow related to the sale of the company's former specialty tissue
mills, $0.5 million and $0.7 million of costs in the third quarters of
2016 and 2015, respectively, related to the previously announced Long
Island, New York facility closure, and $0.5 million of reorganization
related expenses in the third quarter of 2015. The adjusted operating
margin declined from 6.8% in the third quarter of 2015 to 6.3% in the
most recent period due to higher maintenance and wage costs which were
partially offset by higher shipment volumes, a richer product mix and
lower transportation costs.
-
Total tissue sales volumes of 100,600 tons in the third quarter of
2016 increased by 2.5% and converted product cases shipped were 13.8
million, up 3.0%, each compared to the third quarter of 2015.
-
Average tissue net selling prices increased by a modest 0.04% to
$2,516 per ton in the third quarter of 2016, compared to the third
quarter of 2015.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $182.0 million for the
third quarter of 2016, down 6.8% compared to third quarter 2015 net
sales of $195.2 million. The decrease was primarily due to lower
paperboard shipments and pricing. Operating income for the quarter
decreased $27.4 million to $10.0 million, compared to $37.4 million for
the third quarter of 2015, primarily due to $18.0 million of planned
major maintenance at the Lewiston, Idaho mill, $3.5 million of net costs
incurred from an unplanned power outage at the Lewiston facility, and
contractual wage increases. These factors were partially offset by lower
input costs for polyethylene, natural gas, and transportation.
-
Paperboard sales volumes decreased 1.1% to 196,271 tons in the third
quarter of 2016, compared to 198,535 tons in the third quarter of 2015.
-
Paperboard net selling prices decreased 5.3% to $927 per ton compared
to the third quarter of 2015.
Taxes
The company's GAAP tax rate for the third quarter of 2016 was a
provision of 48.8% compared to 28.3% in the third quarter of 2015 due to
a low level of pre-tax income in the period. On an adjusted basis, the
third quarter 2016 tax rate was 41.4%. The company expects its annual
GAAP and adjusted tax rate to be approximately 36% plus or minus two
percentage points for 2016.
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 2016 and 2015, including EBITDA,
Adjusted EBITDA, adjusted net earnings, adjusted net earnings per
diluted share, adjusted operating income, adjusted operating margin and
adjusted tax rate. Because these amounts are not in accordance with
GAAP, reconciliations to net earnings, net earnings per diluted share,
operating income and adjusted tax rate 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 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, bleached paperboard and pulp at
manufacturing facilities across the nation. The company is a premier
supplier of private label tissue to major retailers and wholesale
distributors, including grocery, drug, mass merchants and discount
stores. In addition, the company produces bleached paperboard used by
quality-conscious printers and packaging converters. Clearwater Paper's
employees build shareholder value by developing strong customer
partnerships 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 stock repurchase program, cash flow
generation, return of capital to shareholders and expected tax rate for
2016. 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, 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; changes in the U.S. and international economies
and in general economic conditions in the regions and industries in
which the company operates; changes in customer product preferences and
competitors' product offerings; the loss of or changes in prices in
regards to a significant customer; cyclical industry conditions; changes
in the cost and availability of wood fiber and wood pulp; inability to
successfully implement the company's operational efficiencies and
expansion strategies; changes in transportation costs and disruptions in
transportation services; customer acceptance, timing and quantity of
purchases of the company's tissue products; changes in costs for and
availability of packaging supplies, chemicals, energy and maintenance
and repairs; environmental liabilities or expenditures; labor
disruptions; manufacturing or operating disruptions, including IT system
and IT system implementation failures, equipment malfunction and damage
to the company's manufacturing facilities; changes in expenses and
required contributions associated with the company's pension plans;
reliance on a limited number of third-party suppliers for raw materials;
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,
2015. 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.
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|
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|
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|
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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,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Net sales
|
|
|
$
|
435,320
|
|
|
100
|
%
|
|
$
|
442,222
|
|
|
100
|
%
|
|
|
$
|
1,309,195
|
|
|
100
|
%
|
|
$
|
1,320,806
|
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
(396,605
|
)
|
|
91
|
%
|
|
|
(373,892
|
)
|
|
85
|
%
|
|
|
|
(1,127,103
|
)
|
|
86
|
%
|
|
|
(1,148,071
|
)
|
|
87
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
(29,435
|
)
|
|
7
|
%
|
|
|
(28,284
|
)
|
|
6
|
%
|
|
|
|
(94,885
|
)
|
|
7
|
%
|
|
|
(85,379
|
)
|
|
6
|
%
|
|
Total operating costs and expenses
|
|
|
|
(426,040
|
)
|
|
98
|
%
|
|
|
(402,176
|
)
|
|
91
|
%
|
|
|
|
(1,221,988
|
)
|
|
93
|
%
|
|
|
(1,233,450
|
)
|
|
93
|
%
|
|
Income from operations
|
|
|
|
9,280
|
|
|
2
|
%
|
|
|
40,046
|
|
|
9
|
%
|
|
|
|
87,207
|
|
|
7
|
%
|
|
|
87,356
|
|
|
7
|
%
|
|
Interest expense, net
|
|
|
|
(7,520
|
)
|
|
2
|
%
|
|
|
(7,882
|
)
|
|
2
|
%
|
|
|
|
(22,559
|
)
|
|
2
|
%
|
|
|
(23,438
|
)
|
|
2
|
%
|
|
Earnings before income taxes
|
|
|
|
1,760
|
|
|
0
|
%
|
|
|
32,164
|
|
|
7
|
%
|
|
|
|
64,648
|
|
|
5
|
%
|
|
|
63,918
|
|
|
5
|
%
|
|
Income tax provision
|
|
|
|
(859
|
)
|
|
0
|
%
|
|
|
(9,100
|
)
|
|
2
|
%
|
|
|
|
(24,437
|
)
|
|
2
|
%
|
|
|
(19,500
|
)
|
|
1
|
%
|
|
Net earnings
|
|
|
$
|
901
|
|
|
0
|
%
|
|
$
|
23,064
|
|
|
5
|
%
|
|
|
$
|
40,211
|
|
|
3
|
%
|
|
$
|
44,418
|
|
|
3
|
%
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.05
|
|
|
|
|
$
|
1.22
|
|
|
|
|
|
$
|
2.35
|
|
|
|
|
$
|
2.33
|
|
|
|
|
Diluted
|
|
|
|
0.05
|
|
|
|
|
|
1.21
|
|
|
|
|
|
|
2.33
|
|
|
|
|
|
2.30
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
16,845
|
|
|
|
|
|
18,860
|
|
|
|
|
|
|
17,141
|
|
|
|
|
|
19,088
|
|
|
|
|
Diluted
|
|
|
|
17,060
|
|
|
|
|
|
19,091
|
|
|
|
|
|
|
17,253
|
|
|
|
|
|
19,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Condensed Consolidated Balance Sheets
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
331
|
|
|
|
$
|
5,610
|
|
|
Restricted cash
|
|
|
|
—
|
|
|
|
|
2,270
|
|
|
Short-term investments
|
|
|
|
—
|
|
|
|
|
250
|
|
|
Receivables, net
|
|
|
|
134,384
|
|
|
|
|
139,052
|
|
|
Taxes receivable
|
|
|
|
7,634
|
|
|
|
|
14,851
|
|
|
Inventories
|
|
|
|
252,126
|
|
|
|
|
255,573
|
|
|
Other current assets
|
|
|
|
5,414
|
|
|
|
|
9,331
|
|
|
Total current assets
|
|
|
|
399,889
|
|
|
|
|
426,937
|
|
|
Property, plant and equipment, net
|
|
|
|
914,945
|
|
|
|
|
866,538
|
|
|
Goodwill |
|
|
|
209,087
|
|
|
|
|
209,087
|
|
|
Intangible assets, net
|
|
|
|
16,280
|
|
|
|
|
19,990
|
|
|
Pension Assets
|
|
|
|
2,035
|
|
|
|
|
596
|
|
|
Other assets, net
|
|
|
|
5,578
|
|
|
|
|
4,221
|
|
|
TOTAL ASSETS
|
|
|
$
|
1,547,814
|
|
|
|
$
|
1,527,369
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
223,803
|
|
|
|
$
|
220,368
|
|
|
Revolving credit facility borrowings
|
|
|
|
13,012
|
|
|
|
|
—
|
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
|
|
7,559
|
|
|
|
|
7,559
|
|
|
Total current liabilities
|
|
|
|
244,374
|
|
|
|
|
227,927
|
|
|
Long-term debt
|
|
|
|
569,563
|
|
|
|
|
568,987
|
|
|
Liability for pensions and other postretirement employee benefits
|
|
|
|
85,991
|
|
|
|
|
89,057
|
|
|
Other long-term obligations
|
|
|
|
42,310
|
|
|
|
|
46,738
|
|
|
Accrued taxes
|
|
|
|
1,523
|
|
|
|
|
1,676
|
|
|
Deferred tax liabilities
|
|
|
|
132,850
|
|
|
|
|
118,118
|
|
|
Stockholders' equity, excluding accumulated other comprehensive
loss, net of tax
|
|
|
|
524,166
|
|
|
|
|
530,414
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
|
(52,963
|
)
|
|
|
|
(55,548
|
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$
|
1,547,814
|
|
|
|
$
|
1,527,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Consolidated Statements of Cash Flows
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
40,211
|
|
|
|
$
|
44,418
|
|
|
Adjustments to reconcile net earnings to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
65,921
|
|
|
|
|
62,844
|
|
|
Equity-based compensation expense
|
|
|
|
9,826
|
|
|
|
|
2,495
|
|
|
Deferred tax provision (benefit)
|
|
|
|
12,329
|
|
|
|
|
(12,403
|
)
|
|
Employee benefit plans
|
|
|
|
(500
|
)
|
|
|
|
2,122
|
|
|
Deferred issuance costs on long-term debt
|
|
|
|
637
|
|
|
|
|
714
|
|
|
Disposal of plant and equipment, net
|
|
|
|
30
|
|
|
|
|
1,109
|
|
|
Non-cash adjustments to unrecognized taxes
|
|
|
|
(153
|
)
|
|
|
|
(1,123
|
)
|
|
Changes in working capital, net
|
|
|
|
4,045
|
|
|
|
|
15,471
|
|
|
Changes in taxes receivable, net
|
|
|
|
7,217
|
|
|
|
|
1,255
|
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
(157
|
)
|
|
|
|
(3,848
|
)
|
|
Funding of qualified pension plans
|
|
|
|
—
|
|
|
|
|
(3,179
|
)
|
|
Other, net
|
|
|
|
(523
|
)
|
|
|
|
(2,320
|
)
|
|
Net cash flows from operating activities
|
|
|
|
138,883
|
|
|
|
|
107,555
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Changes in short-term investments, net
|
|
|
|
250
|
|
|
|
|
40,000
|
|
|
Additions to plant and equipment
|
|
|
|
(105,514
|
)
|
|
|
|
(78,461
|
)
|
|
Proceeds from sale of assets
|
|
|
|
—
|
|
|
|
|
587
|
|
|
Net cash flows from investing activities
|
|
|
|
(105,264
|
)
|
|
|
|
(37,874
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Purchase of treasury stock
|
|
|
|
(51,528
|
)
|
|
|
|
(84,305
|
)
|
|
Borrowings on revolving credit facility
|
|
|
|
944,844
|
|
|
|
|
—
|
|
|
Repayments of revolving credit facility borrowings
|
|
|
|
(931,832
|
)
|
|
|
|
—
|
|
|
Payment of tax withholdings on equity-based payment arrangements
|
|
|
|
(488
|
)
|
|
|
|
(3,129
|
)
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
157
|
|
|
|
|
3,848
|
|
|
Other, net
|
|
|
|
(51
|
)
|
|
|
|
(9
|
)
|
|
Net cash flows from financing activities
|
|
|
|
(38,898
|
)
|
|
|
|
(83,595
|
)
|
|
Decrease in cash and cash equivalents
|
|
|
|
(5,279
|
)
|
|
|
|
(13,914
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
5,610
|
|
|
|
|
27,331
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
331
|
|
|
|
$
|
13,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Segment Information
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Segment net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
$
|
253,319
|
|
|
58
|
%
|
|
$
|
247,039
|
|
|
56
|
%
|
|
|
$
|
746,249
|
|
|
57
|
%
|
|
$
|
721,606
|
|
|
55
|
%
|
|
Pulp and Paperboard
|
|
|
|
182,001
|
|
|
42
|
%
|
|
|
195,183
|
|
|
44
|
%
|
|
|
|
562,946
|
|
|
43
|
%
|
|
|
599,200
|
|
|
45
|
%
|
|
Total segment net sales
|
|
|
$
|
435,320
|
|
|
100
|
%
|
|
$
|
442,222
|
|
|
100
|
%
|
|
|
$
|
1,309,195
|
|
|
100
|
%
|
|
$
|
1,320,806
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
$
|
17,201
|
|
|
185
|
%
|
|
$
|
15,521
|
|
|
39
|
%
|
|
|
$
|
54,135
|
|
|
62
|
%
|
|
$
|
44,948
|
|
|
51
|
%
|
|
Pulp and Paperboard
|
|
|
|
9,956
|
|
|
107
|
%
|
|
|
37,446
|
|
|
94
|
%
|
|
|
|
85,151
|
|
|
98
|
%
|
|
|
81,394
|
|
|
93
|
%
|
|
|
|
|
|
27,157
|
|
|
|
|
|
52,967
|
|
|
|
|
|
|
139,286
|
|
|
|
|
|
126,342
|
|
|
|
|
Corporate1 |
|
|
|
(17,877
|
)
|
|
193
|
%
|
|
|
(12,921
|
)
|
|
32
|
%
|
|
|
|
(52,079
|
)
|
|
60
|
%
|
|
|
(38,986
|
)
|
|
45
|
%
|
|
Income from operations
|
|
|
$
|
9,280
|
|
|
100
|
%
|
|
$
|
40,046
|
|
|
100
|
%
|
|
|
$
|
87,207
|
|
|
100
|
%
|
|
$
|
87,356
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Corporate expenses for the three and nine months ended September 30,
2016 include a $3.5 million settlement accounting charge associated
with a pension lump sum buyout for term-vested participants.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Non-GAAP Financial Measures
|
|
EBITDA and Adjusted EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
Net earnings
|
|
|
$
|
901
|
|
|
$
|
23,064
|
|
|
|
$
|
40,211
|
|
|
$
|
44,418
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
7,520
|
|
|
|
7,882
|
|
|
|
|
22,559
|
|
|
|
23,438
|
|
|
Income tax provision
|
|
|
|
859
|
|
|
|
9,100
|
|
|
|
|
24,437
|
|
|
|
19,500
|
|
|
Depreciation and amortization expense
|
|
|
|
22,747
|
|
|
|
21,204
|
|
|
|
|
65,921
|
|
|
|
62,844
|
|
|
EBITDA1 |
|
|
$
|
32,027
|
|
|
$
|
61,250
|
|
|
|
$
|
153,128
|
|
|
$
|
150,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation expense (benefit)
|
|
|
$
|
89
|
|
|
$
|
(1,914
|
)
|
|
|
$
|
4,425
|
|
|
$
|
(3,841
|
)
|
|
Pension settlement expense
|
|
|
|
3,482
|
|
|
|
—
|
|
|
|
|
3,482
|
|
|
|
—
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
466
|
|
|
|
728
|
|
|
|
|
1,431
|
|
|
|
2,017
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
|
(1,755
|
)
|
|
|
—
|
|
|
|
|
(1,755
|
)
|
|
|
(1,462
|
)
|
|
Legal expenses and settlement costs
|
|
|
|
—
|
|
|
|
1,972
|
|
|
|
|
—
|
|
|
|
1,972
|
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
1,185
|
|
|
|
|
—
|
|
|
|
1,185
|
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
1,730
|
|
|
Adjusted EBITDA2 |
|
|
$
|
34,309
|
|
|
$
|
63,221
|
|
|
|
$
|
160,711
|
|
|
$
|
151,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
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 net earnings. EBITDA is net
earnings adjusted for net interest expense, income taxes, and
depreciation and amortization. It should not be considered as an
alternative to net earnings computed under GAAP.
|
|
2
|
|
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
|
|
Adjusted Net Earnings and Adjusted Net Earnings Per Diluted Common
Share
|
|
Unaudited (Dollars in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings
|
|
|
$
|
901
|
|
|
$
|
23,064
|
|
|
|
$
|
40,211
|
|
|
$
|
44,418
|
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation expense (benefit)
|
|
|
|
57
|
|
|
|
(1,307
|
)
|
|
|
|
2,857
|
|
|
|
(2,630
|
)
|
|
Pension settlement expense
|
|
|
|
2,240
|
|
|
|
—
|
|
|
|
|
2,240
|
|
|
|
—
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
300
|
|
|
|
497
|
|
|
|
|
922
|
|
|
|
1,384
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
|
(1,129
|
)
|
|
|
—
|
|
|
|
|
(1,129
|
)
|
|
|
(1,003
|
)
|
|
Legal expenses and settlement costs
|
|
|
|
—
|
|
|
|
1,346
|
|
|
|
|
—
|
|
|
|
1,346
|
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
809
|
|
|
|
|
—
|
|
|
|
809
|
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
1,197
|
|
|
Adjusted net earnings2 |
|
|
$
|
2,369
|
|
|
$
|
24,409
|
|
|
|
$
|
45,101
|
|
|
$
|
45,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings per diluted share
|
|
|
$
|
0.05
|
|
|
$
|
1.21
|
|
|
|
$
|
2.33
|
|
|
$
|
2.30
|
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation expense (benefit)
|
|
|
|
—
|
|
|
|
(0.07
|
)
|
|
|
|
0.17
|
|
|
|
(0.14
|
)
|
|
Pension settlement expense
|
|
|
|
0.13
|
|
|
|
—
|
|
|
|
|
0.13
|
|
|
|
—
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
0.02
|
|
|
|
0.03
|
|
|
|
|
0.05
|
|
|
|
0.07
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
|
(0.07
|
)
|
|
|
—
|
|
|
|
|
(0.07
|
)
|
|
|
(0.05
|
)
|
|
Legal expenses and settlement costs
|
|
|
|
—
|
|
|
|
0.07
|
|
|
|
|
-
|
|
|
|
0.07
|
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
0.04
|
|
|
|
|
-
|
|
|
|
0.04
|
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
-
|
|
|
|
0.06
|
|
|
Adjusted net earnings per diluted share2 |
|
|
$
|
0.14
|
|
|
$
|
1.28
|
|
|
|
$
|
2.61
|
|
|
$
|
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Reconciliation of Non-GAAP Financial Measures
|
|
Segment EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA
Margin
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
Consumer Products:
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
253,319
|
|
|
$
|
247,039
|
|
|
|
$
|
746,249
|
|
|
$
|
721,606
|
|
|
GAAP operating income
|
|
|
|
17,201
|
|
|
|
15,521
|
|
|
|
|
54,135
|
|
|
|
44,948
|
|
|
Depreciation and amortization expense
|
|
|
|
15,022
|
|
|
|
14,048
|
|
|
|
|
42,984
|
|
|
|
40,463
|
|
|
Consumer Products EBITDA1 |
|
|
$
|
32,223
|
|
|
$
|
29,569
|
|
|
|
$
|
97,119
|
|
|
$
|
85,411
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
466
|
|
|
|
728
|
|
|
|
|
1,431
|
|
|
|
2,017
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
|
(1,755
|
)
|
|
|
—
|
|
|
|
|
(1,755
|
)
|
|
|
(1,462
|
)
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
814
|
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
494
|
|
|
|
|
—
|
|
|
|
494
|
|
|
Consumer Products Adjusted EBITDA2 |
|
|
$
|
30,934
|
|
|
$
|
30,791
|
|
|
|
$
|
96,795
|
|
|
$
|
87,274
|
|
|
Consumer Products EBITDA margin3 |
|
|
|
12.7
|
%
|
|
|
12.0
|
%
|
|
|
|
13.0
|
%
|
|
|
11.8
|
%
|
|
Consumer Products Adjusted EBITDA margin4 |
|
|
|
12.2
|
%
|
|
|
12.5
|
%
|
|
|
|
13.0
|
%
|
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paperboard:
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
182,001
|
|
|
$
|
195,183
|
|
|
|
$
|
562,946
|
|
|
$
|
599,200
|
|
|
GAAP operating income
|
|
|
|
9,956
|
|
|
|
37,446
|
|
|
|
|
85,151
|
|
|
|
81,394
|
|
|
Depreciation and amortization expense
|
|
|
|
6,530
|
|
|
|
6,535
|
|
|
|
|
19,346
|
|
|
|
20,583
|
|
|
Pulp and Paperboard EBITDA1 |
|
|
$
|
16,486
|
|
|
$
|
43,981
|
|
|
|
$
|
104,497
|
|
|
$
|
101,977
|
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
916
|
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
239
|
|
|
|
|
—
|
|
|
|
239
|
|
|
Pulp and Paperboard Adjusted EBITDA2 |
|
|
$
|
16,486
|
|
|
$
|
44,220
|
|
|
|
$
|
104,497
|
|
|
$
|
103,132
|
|
|
Pulp and Paperboard EBITDA margin3 |
|
|
|
9.1
|
%
|
|
|
22.5
|
%
|
|
|
|
18.6
|
%
|
|
|
17.0
|
%
|
|
Pulp and Paperboard Adjusted EBITDA margin4 |
|
|
|
9.1
|
%
|
|
|
22.7
|
%
|
|
|
|
18.6
|
%
|
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Segment EBITDA is segment operating income adjusted for
depreciation and amortization.
|
|
2
|
|
Segment Adjusted EBITDA excludes the impact of the items
listed that we do not believe are indicative of our core operating
performance.
|
|
3
|
|
Segment EBITDA margin is defined as Segment EBITDA divided by
Segment Net sales.
|
|
4
|
|
Segment Adjusted EBITDA margin is defined as Segment Adjusted
EBITDA divided by Segment Net sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Non-GAAP Financial Measures
|
|
Segment Adjusted Operating Income and Operating Margin
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
Consumer Products:
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
253,319
|
|
|
$
|
247,039
|
|
|
|
$
|
746,249
|
|
|
$
|
721,606
|
|
|
GAAP operating income
|
|
|
|
17,201
|
|
|
|
15,521
|
|
|
|
|
54,135
|
|
|
|
44,948
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
466
|
|
|
|
728
|
|
|
|
|
1,431
|
|
|
|
2,017
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
|
(1,755
|
)
|
|
|
—
|
|
|
|
|
(1,755
|
)
|
|
|
(1,462
|
)
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
814
|
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
494
|
|
|
|
|
—
|
|
|
|
494
|
|
|
Consumer Products Adjusted operating income1 |
|
|
$
|
15,912
|
|
|
$
|
16,743
|
|
|
|
$
|
53,811
|
|
|
$
|
46,811
|
|
|
Consumer Products operating margin
|
|
|
|
6.8
|
%
|
|
|
6.3
|
%
|
|
|
|
7.3
|
%
|
|
|
6.2
|
%
|
|
Consumer Products Adjusted operating margin2 |
|
|
|
6.3
|
%
|
|
|
6.8
|
%
|
|
|
|
7.2
|
%
|
|
|
6.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paperboard:
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
182,001
|
|
|
$
|
195,183
|
|
|
|
$
|
562,946
|
|
|
$
|
599,200
|
|
|
GAAP operating income
|
|
|
|
9,956
|
|
|
|
37,446
|
|
|
|
|
85,151
|
|
|
|
81,394
|
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
916
|
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
239
|
|
|
|
|
—
|
|
|
|
239
|
|
|
Pulp and Paperboard Adjusted operating income1 |
|
|
$
|
9,956
|
|
|
$
|
37,685
|
|
|
|
$
|
85,151
|
|
|
$
|
82,549
|
|
|
Pulp and Paperboard operating margin
|
|
|
|
5.5
|
%
|
|
|
19.2
|
%
|
|
|
|
15.1
|
%
|
|
|
13.6
|
%
|
|
Pulp and Paperboard Adjusted operating margin2 |
|
|
|
5.5
|
%
|
|
|
19.3
|
%
|
|
|
|
15.1
|
%
|
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Segment Adjusted operating income excludes the impact of the
items listed that we do not believe are indicative of our core
operating performance.
|
|
2
|
|
Segment Adjusted operating margin is defined as Segment
Adjusted operating income divided by Segment Net sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Non-GAAP Financial Measures
|
|
Adjusted Income Tax Provision
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax provision
|
|
|
$
|
(859
|
)
|
|
$
|
(9,100
|
)
|
|
$
|
(24,437
|
)
|
|
$
|
(19,500
|
)
|
|
Special items, after-tax:
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (expense) benefit
|
|
|
|
(32
|
)
|
|
|
607
|
|
|
|
(1,568
|
)
|
|
|
1,211
|
|
|
Pension settlement expense
|
|
|
|
(1,242
|
)
|
|
|
—
|
|
|
|
(1,242
|
)
|
|
|
—
|
|
|
Costs associated with Long Island facility closure
|
|
|
|
(166
|
)
|
|
|
(231
|
)
|
|
|
(509
|
)
|
|
|
(633
|
)
|
|
Gain associated with the sale of the specialty mills
|
|
|
|
626
|
|
|
|
—
|
|
|
|
626
|
|
|
|
459
|
|
|
Legal expenses and settlement costs
|
|
|
|
—
|
|
|
|
(626
|
)
|
|
|
—
|
|
|
|
(626
|
)
|
|
Reorganization related expenses
|
|
|
|
—
|
|
|
|
(376
|
)
|
|
|
—
|
|
|
|
(376
|
)
|
|
Costs associated with labor agreement
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(533
|
)
|
|
Adjusted income tax provision1 |
|
|
$
|
(1,673
|
)
|
|
$
|
(9,726
|
)
|
|
$
|
(27,130
|
)
|
|
$
|
(19,998
|
)
|
|
Adjusted income tax provision rate1,2 |
|
|
|
41.4
|
%
|
|
|
28.5
|
%
|
|
|
37.5
|
%
|
|
|
30.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Adjusted income tax provision and Adjusted income tax
provision rate exclude the impact of the items listed that we do
not believe are indicative of our core operating performance.
|
|
2
|
|
The Adjusted income tax provision rate is defined as
[Adjusted income tax provision / (Adjusted income tax provision +
Adjusted net earnings)].
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161020006221/en/
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