SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE:CLW) today reported financial
results for the second quarter of 2017.
The company reported net sales of $429.7 million for the second quarter
of 2017, down 1.6% compared to net sales of $436.7 million for the
second quarter of 2016. Net earnings determined in accordance with
generally accepted accounting principles, or GAAP, for the second
quarter of 2017 were $8.0 million, or $0.48 per diluted share, compared
to net earnings of $20.9 million, or $1.21 per diluted share, for the
second quarter of 2016. The decrease in net earnings was due primarily
to a planned bi-annual major maintenance outage at the Company's
Arkansas mill in the second quarter of 2017 and higher input costs for
energy, pulp, chemicals, and packaging supplies. Excluding certain
non-core items identified in the attached Reconciliation of Non-GAAP
Financial Measures, second quarter 2017 adjusted net earnings were $7.9
million, or $0.48 per diluted share, compared to second quarter 2016
adjusted net earnings of $23.5 million, or $1.37 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, was $45.7 million for the second quarter of 2017 compared to
$62.2 million for the second quarter of 2016. Adjusted EBITDA for the
quarter was $45.0 million, down 32.1% compared to second quarter 2016
Adjusted EBITDA of $66.3 million. The $21.3 million decrease in adjusted
EBITDA was primarily a result of the same major maintenance and higher
input costs affecting GAAP net earnings in the second quarter of 2017.
"We achieved solid second quarter results that were in line with our
quarterly outlook," said Linda K. Massman, president and chief executive
officer. "The positive impacts to the quarter included higher prices and
a stronger sales mix for paperboard, which were offset by higher
external pulp pricing and lower consumer product shipment volumes, as
parent rolls were used to build needed inventory.
I am also pleased to share that our previously disclosed strategic
projects remain on time and within budget, and we continue to believe
this will position us to more efficiently partner with and meet the
needs of our customers in the future," said Massman.
SECOND QUARTER 2017 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $231.9 million for the
second quarter of 2017, down 6.5% compared to second quarter 2016 net
sales of $247.9 million. This decrease was due to lower parent roll
sales resulting from the shutdown of two higher cost paper machines at
the Neenah, Wisconsin mill at the end of 2016 and a 1.7% decrease in
retail tons sold.
Consumer Products had operating income of $10.5 million in the second
quarter of 2017, compared to operating income of $18.5 million in the
second quarter of 2016. After adjusting for certain non-core items
identified in the attached Reconciliation of Non-GAAP Financial
Measures, adjusted operating income of $11.8 million for the second
quarter of 2017 was down from $19.1 million in the same period in 2016.
Consumer Products operating margin decreased to 4.5% in the second
quarter of 2017 from 7.5% in the second quarter of 2016. The adjusted
operating margin decreased from 7.7% in the second quarter of 2016 to
5.1% in the second quarter of 2017 due to higher input costs for
transportation, pulp, natural gas, and packaging supplies, partially
offset by lower wage and benefit costs resulting from the implementation
of warehouse automation, and the previously mentioned shutdown at the
Neenah mill.
• Total tissue sales volumes of 91,450 tons in the second quarter of
2017 decreased by 7.7% and converted product cases shipped were 12.7
million, down 3.9%, each compared to the second quarter of 2016.
• Average tissue net selling prices increased 1.6% to $2,533 per ton in
the second quarter of 2017, compared to the second quarter of 2016.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $197.8 million for the
second quarter of 2017, up 4.8% compared to second quarter 2016 net
sales of $188.8 million. The increase was primarily due to higher
paperboard shipment volume, which includes sales from the operations of
the former Manchester Industries acquired in December 2016. Operating
income for the quarter decreased $18.4 million to $21.6 million,
compared to operating income of $40.0 million for the second quarter of
2016, primarily due to approximately $9 million in major maintenance at
the Arkansas mill and higher input costs for natural gas, electricity,
chemicals and pulp and higher wages and benefits due to annual
increases. In addition, second quarter 2016 operating income included
the receipt of a net $2.8 million in partial reimbursement of previously
incurred costs related to performance issues with the recovery boiler at
the Arkansas mill.
• Paperboard sales volumes increased 4.0% to 207,152 tons in the second
quarter of 2017, compared to 199,132 tons in the second quarter of 2016.
• Paperboard net selling prices increased 0.7% to $955 per ton compared
to the second quarter of 2016.
Taxes
The company's consolidated GAAP tax rate and adjusted tax rate for the
second quarter of 2017 was a provision of 33.0%, compared to 36.3% and
36.2%, respectively, in the second quarter of 2016. The company expects
its GAAP and adjusted tax rate for 2017 to be approximately 34% plus or
minus two percentage points.
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 2017 and 2016, including adjusted
net earnings, adjusted net earnings per diluted share, EBITDA, adjusted
EBITDA, adjusted operating income, adjusted operating margin, adjusted
income tax provision and adjusted tax rate. Because these amounts are
not in accordance with GAAP, reconciliations to net earnings, net
earnings per diluted share, operating income, income tax provision and
tax rate as determined in accordance with GAAP are included in the
tables 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, and offers services
that include custom sheeting, slitting and cutting. 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 statements regarding the timing, benefits and costs
of strategic and operational efficiency projects, customer
relationships, cost structure and the company's expected tax rate for
2017. 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, the company's ability
to execute on its growth and expansion strategies; unanticipated
construction delays involving the company's planned new tissue
manufacturing operations in Shelby, NC; 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; customer acceptance and timing and quantity of purchases of
the company's tissue products, including the existence of sufficient
demand for and the quality of tissue produced at the company's recently
announced Shelby facility expansion when it becomes operational; changes
in the U.S. and international economies and in general economic
conditions in the regions and industries in which the company operates;
the loss of or changes in prices in regards to a significant customer;
the company's ability to successfully implement its operational
efficiencies and cost savings strategies; changes in customer product
preferences and competitors' product offerings; manufacturing or
operating disruptions, including IT system and IT system implementation
failures, equipment malfunction and damage to the company's
manufacturing facilities; changes in transportation costs and
disruptions in transportation services; changes in the cost and
availability of wood fiber and wood pulp; labor disruptions; cyclical
industry conditions; changes in costs for and availability of packaging
supplies, chemicals, energy and maintenance and repairs; environmental
liabilities or expenditures; the company's ability to realize the
expected benefits of its Manchester Industries acquisition; changes in
expenses and required contributions associated with the company's
pension plans; cyber-security risks; reliance on a limited number of
third-party suppliers for raw materials; the company's inability to
service its debt obligations; restrictions on the company's business
from debt covenants and terms; changes in laws, regulations or industry
standards affecting the company's business; 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, 2016. 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.
|
|
|
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,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Net sales
|
|
|
$
|
429,663
|
|
100
|
%
|
|
$
|
436,671
|
|
100
|
%
|
|
$
|
867,188
|
|
100
|
%
|
|
$
|
873,875
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
(380,733
|
)
|
89
|
%
|
|
(361,851
|
)
|
83
|
%
|
|
(767,763
|
)
|
89
|
%
|
|
(730,498
|
)
|
84
|
%
|
|
Selling, general and administrative expenses
|
|
|
(29,265
|
)
|
7
|
%
|
|
(34,655
|
)
|
8
|
%
|
|
(59,202
|
)
|
7
|
%
|
|
(65,450
|
)
|
7
|
%
|
|
Total operating costs and expenses
|
|
|
(409,998
|
)
|
95
|
%
|
|
(396,506
|
)
|
91
|
%
|
|
(826,965
|
)
|
95
|
%
|
|
(795,948
|
)
|
91
|
%
|
|
Income from operations
|
|
|
19,665
|
|
5
|
%
|
|
40,165
|
|
9
|
%
|
|
40,223
|
|
5
|
%
|
|
77,927
|
|
9
|
%
|
|
Interest expense, net
|
|
|
(7,673
|
)
|
2
|
%
|
|
(7,396
|
)
|
2
|
%
|
|
(15,716
|
)
|
2
|
%
|
|
(15,039
|
)
|
2
|
%
|
|
Earnings before income taxes
|
|
|
11,992
|
|
3
|
%
|
|
32,769
|
|
8
|
%
|
|
24,507
|
|
3
|
%
|
|
62,888
|
|
7
|
%
|
|
Income tax provision
|
|
|
(3,955
|
)
|
1
|
%
|
|
(11,905
|
)
|
3
|
%
|
|
(8,955
|
)
|
1
|
%
|
|
(23,578
|
)
|
3
|
%
|
|
Net earnings
|
|
|
$
|
8,037
|
|
2
|
%
|
|
$
|
20,864
|
|
5
|
%
|
|
$
|
15,552
|
|
2
|
%
|
|
$
|
39,310
|
|
4
|
%
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.49
|
|
|
|
$
|
1.22
|
|
|
|
$
|
0.94
|
|
|
|
$
|
2.27
|
|
|
|
Diluted
|
|
|
0.48
|
|
|
|
1.21
|
|
|
|
0.94
|
|
|
|
2.26
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,457
|
|
|
|
17,066
|
|
|
|
16,471
|
|
|
|
17,293
|
|
|
|
Diluted
|
|
|
16,590
|
|
|
|
17,234
|
|
|
|
16,612
|
|
|
|
17,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Condensed Consolidated Balance Sheets
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2017
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
8,519
|
|
|
$
|
23,001
|
|
|
Receivables, net
|
|
|
130,805
|
|
|
147,074
|
|
|
Taxes receivable
|
|
|
5,479
|
|
|
9,709
|
|
|
Inventories
|
|
|
243,313
|
|
|
258,029
|
|
|
Other current assets
|
|
|
7,866
|
|
|
8,682
|
|
|
Total current assets
|
|
|
395,982
|
|
|
446,495
|
|
|
Property, plant and equipment, net
|
|
|
991,061
|
|
|
945,328
|
|
|
Goodwill |
|
|
244,283
|
|
|
244,283
|
|
|
Intangible assets, net
|
|
|
36,513
|
|
|
40,485
|
|
|
Other assets, net
|
|
|
10,750
|
|
|
7,751
|
|
|
TOTAL ASSETS
|
|
|
$
|
1,678,589
|
|
|
$
|
1,684,342
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Borrowings under revolving credit facilities
|
|
|
$
|
108,000
|
|
|
$
|
135,000
|
|
|
Accounts payable and accrued liabilities
|
|
|
224,177
|
|
|
223,699
|
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
|
7,821
|
|
|
7,821
|
|
|
Total current liabilities
|
|
|
339,998
|
|
|
366,520
|
|
|
Long-term debt
|
|
|
570,139
|
|
|
569,755
|
|
|
Liability for pensions and other postretirement employee benefits
|
|
|
79,442
|
|
|
81,812
|
|
|
Other long-term obligations
|
|
|
40,776
|
|
|
41,776
|
|
|
Accrued taxes
|
|
|
2,567
|
|
|
2,434
|
|
|
Deferred tax liabilities
|
|
|
162,081
|
|
|
152,172
|
|
|
TOTAL LIABILITIES
|
|
|
1,195,003
|
|
|
1,214,469
|
|
|
|
|
|
|
|
|
|
Stockholders' equity, excluding accumulated other comprehensive
loss, net of tax
|
|
|
534,812
|
|
|
521,626
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
(51,226
|
)
|
|
(51,753
|
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$
|
1,678,589
|
|
|
$
|
1,684,342
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Consolidated Statements of Cash Flows
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
15,552
|
|
|
$
|
39,310
|
|
|
Adjustments to reconcile net earnings to net cash flows from
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
53,612
|
|
|
43,174
|
|
|
Equity-based compensation expense
|
|
|
403
|
|
|
7,716
|
|
|
Deferred tax provision
|
|
|
7,891
|
|
|
8,674
|
|
|
Employee benefit plans
|
|
|
(2,183
|
)
|
|
(2,561
|
)
|
|
Other, net
|
|
|
1,267
|
|
|
259
|
|
|
Changes in working capital, net
|
|
|
23,742
|
|
|
(13,394
|
)
|
|
Changes in taxes receivable, net
|
|
|
4,229
|
|
|
14,107
|
|
|
Other, net
|
|
|
(914
|
)
|
|
(870
|
)
|
|
Net cash flows from operating activities
|
|
|
103,599
|
|
|
96,415
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
Additions to plant and equipment
|
|
|
(85,709
|
)
|
|
(57,394
|
)
|
|
Other, net
|
|
|
417
|
|
|
250
|
|
|
Net cash flows from investing activities
|
|
|
(85,292
|
)
|
|
(57,144
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
Purchase of treasury stock
|
|
|
(4,875
|
)
|
|
(35,168
|
)
|
|
Borrowings on revolving credit facilities
|
|
|
117,000
|
|
|
477,169
|
|
|
Repayments of borrowings on revolving credit facilities
|
|
|
(144,000
|
)
|
|
(477,169
|
)
|
|
Other, net
|
|
|
(914
|
)
|
|
(318
|
)
|
|
Net cash flows from financing activities
|
|
|
(32,789
|
)
|
|
(35,486
|
)
|
|
(Decrease) increase in cash and cash equivalents
|
|
|
(14,482
|
)
|
|
3,785
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
23,001
|
|
|
5,610
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
8,519
|
|
|
$
|
9,395
|
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Segment Information
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Segment net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
$
|
231,912
|
|
54
|
%
|
|
$
|
247,912
|
|
57
|
%
|
|
$
|
474,335
|
|
55
|
%
|
|
$
|
492,930
|
|
56
|
%
|
|
Pulp and Paperboard
|
|
|
197,751
|
|
46
|
%
|
|
188,759
|
|
43
|
%
|
|
392,853
|
|
45
|
%
|
|
380,945
|
|
44
|
%
|
|
Total segment net sales
|
|
|
$
|
429,663
|
|
100
|
%
|
|
$
|
436,671
|
|
100
|
%
|
|
$
|
867,188
|
|
100
|
%
|
|
$
|
873,875
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
$
|
10,534
|
|
54
|
%
|
|
$
|
18,544
|
|
46
|
%
|
|
$
|
16,723
|
|
42
|
%
|
|
$
|
36,934
|
|
47
|
%
|
|
Pulp and Paperboard
|
|
|
21,595
|
|
110
|
%
|
|
40,032
|
|
100
|
%
|
|
48,843
|
|
121
|
%
|
|
75,195
|
|
96
|
%
|
|
|
|
|
32,129
|
|
|
|
58,576
|
|
|
|
65,566
|
|
|
|
112,129
|
|
|
|
Corporate1 |
|
|
(12,464
|
)
|
63
|
%
|
|
(18,411
|
)
|
46
|
%
|
|
(25,343
|
)
|
63
|
%
|
|
(34,202
|
)
|
44
|
%
|
|
Income from operations
|
|
|
$
|
19,665
|
|
100
|
%
|
|
$
|
40,165
|
|
100
|
%
|
|
$
|
40,223
|
|
100
|
%
|
|
$
|
77,927
|
|
100
|
%
|
|
|
|
|
|
1 |
|
|
Corporate expenses for the three and six months ended June 30, 2017
include $0.1 million and $0.2 million of expenses associated with
the acquisition of Manchester Industries, respectively. Operating
results subsequent to the acquisition of Manchester Industries are
included in the Pulp and Paperboard segment.
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Non-GAAP Financial Measures
|
|
EBITDA and Adjusted EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Net earnings
|
|
|
$
|
8,037
|
|
|
$
|
20,864
|
|
|
$
|
15,552
|
|
|
$
|
39,310
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
7,673
|
|
|
7,396
|
|
|
15,716
|
|
|
15,039
|
|
Income tax provision
|
|
|
3,955
|
|
|
11,905
|
|
|
8,955
|
|
|
23,578
|
|
Depreciation and amortization expense3 |
|
|
26,055
|
|
|
22,024
|
|
|
53,612
|
|
|
43,174
|
|
EBITDA1 |
|
|
$
|
45,720
|
|
|
$
|
62,189
|
|
|
$
|
93,835
|
|
|
$
|
121,101
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
$
|
(1,483
|
)
|
|
$
|
3,610
|
|
|
$
|
(2,933
|
)
|
|
$
|
4,336
|
|
Manchester Industries acquisition related expenses
|
|
|
105
|
|
|
—
|
|
|
220
|
|
|
—
|
|
Costs associated with Oklahoma City facility closure
|
|
|
275
|
|
|
—
|
|
|
2,349
|
|
|
—
|
|
Costs associated with Long Island facility closure
|
|
|
365
|
|
|
533
|
|
|
831
|
|
|
965
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|
—
|
|
Adjusted EBITDA2 |
|
|
$
|
45,023
|
|
|
$
|
66,332
|
|
|
$
|
94,343
|
|
|
$
|
126,402
|
|
|
|
|
|
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 (including debt
retirement costs), 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.
|
|
3 |
|
|
Depreciation and amortization expense for the three months ended
June 30, 2017 includes accelerated depreciation of $0.3 million
associated with the Long Island facility and $0.2 million as a
result of the warehouse automation project. In addition to these
amounts, depreciation and amortization for the six months ended June
30, 2017 also includes $3.7 million of accelerated depreciation
associated with the Oklahoma City facility closure.
|
|
|
|
|
|
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
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
GAAP net earnings
|
|
|
$
|
8,037
|
|
|
$
|
20,864
|
|
|
$
|
15,552
|
|
|
$
|
39,310
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
(988
|
)
|
|
2,335
|
|
|
(1,945
|
)
|
|
2,800
|
|
Manchester Industries acquisition related expenses
|
|
|
70
|
|
|
—
|
|
|
146
|
|
|
—
|
|
Costs associated with Oklahoma City facility closure
|
|
|
183
|
|
|
—
|
|
|
3,969
|
|
|
—
|
|
Costs associated with Long Island facility closure
|
|
|
440
|
|
|
345
|
|
|
748
|
|
|
622
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
|
161
|
|
|
—
|
|
|
161
|
|
|
—
|
|
Adjusted net earnings2 |
|
|
$
|
7,930
|
|
|
$
|
23,544
|
|
|
$
|
18,658
|
|
|
$
|
42,732
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings per diluted share
|
|
|
$
|
0.48
|
|
|
$
|
1.21
|
|
|
$
|
0.94
|
|
|
$
|
2.26
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
(0.06
|
)
|
|
0.14
|
|
|
(0.12
|
)
|
|
0.16
|
|
Manchester Industries acquisition related expenses
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Costs associated with Oklahoma City facility closure
|
|
|
0.01
|
|
|
—
|
|
|
0.24
|
|
|
—
|
|
Costs associated with Long Island facility closure
|
|
|
0.03
|
|
|
0.02
|
|
|
0.04
|
|
|
0.04
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Adjusted net earnings per diluted share2 |
|
|
$
|
0.48
|
|
|
$
|
1.37
|
|
|
$
|
1.12
|
|
|
$
|
2.46
|
|
|
|
|
|
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
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Consumer Products:
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
231,912
|
|
|
$
|
247,912
|
|
|
$
|
474,335
|
|
|
$
|
492,930
|
|
|
Operating income
|
|
|
10,534
|
|
|
18,544
|
|
|
16,723
|
|
|
36,934
|
|
|
Depreciation and amortization expense5 |
|
|
16,292
|
|
|
14,203
|
|
|
34,534
|
|
|
27,962
|
|
|
Consumer Products EBITDA1 |
|
|
$
|
26,826
|
|
|
$
|
32,747
|
|
|
$
|
51,257
|
|
|
$
|
64,896
|
|
|
Costs associated with Long Island facility closure
|
|
|
365
|
|
|
533
|
|
|
831
|
|
|
965
|
|
|
Costs associated with Oklahoma City facility closure
|
|
|
275
|
|
|
—
|
|
|
2,349
|
|
|
—
|
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
Consumer Products Adjusted EBITDA2 |
|
|
$
|
27,507
|
|
|
$
|
33,280
|
|
|
$
|
54,478
|
|
|
$
|
65,861
|
|
|
Consumer Products EBITDA margin3 |
|
|
11.6
|
%
|
|
13.2
|
%
|
|
10.8
|
%
|
|
13.2
|
%
|
|
Consumer Products Adjusted EBITDA margin4 |
|
|
11.9
|
%
|
|
13.4
|
%
|
|
11.5
|
%
|
|
13.4
|
%
|
|
Pulp and Paperboard6:
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
197,751
|
|
|
$
|
188,759
|
|
|
$
|
392,853
|
|
|
$
|
380,945
|
|
|
Operating income
|
|
|
21,595
|
|
|
40,032
|
|
|
48,843
|
|
|
75,195
|
|
|
Depreciation and amortization expense
|
|
|
8,356
|
|
|
6,449
|
|
|
16,461
|
|
|
12,816
|
|
|
Pulp and Paperboard EBITDA1 |
|
|
$
|
29,951
|
|
|
$
|
46,481
|
|
|
$
|
65,304
|
|
|
$
|
88,011
|
|
|
Pulp and Paperboard Adjusted EBITDA2 |
|
|
$
|
29,951
|
|
|
$
|
46,481
|
|
|
$
|
65,304
|
|
|
$
|
88,011
|
|
|
Pulp and Paperboard EBITDA margin3 |
|
|
15.1
|
%
|
|
24.6
|
%
|
|
16.6
|
%
|
|
23.1
|
%
|
|
Pulp and Paperboard Adjusted EBITDA margin4 |
|
|
15.1
|
%
|
|
24.6
|
%
|
|
16.6
|
%
|
|
23.1
|
%
|
|
|
|
|
|
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.
|
|
5 |
|
|
Depreciation and amortization expense for the Consumer Products
segment for the three months ended June 30, 2017 includes
accelerated depreciation of $0.3 million associated with the Long
Island facility and $0.2 million as a result of the warehouse
automation project. In addition to these amounts, depreciation and
amortization expense for the six months ended June 30, 2017 also
includes $3.7 million of accelerated depreciation associated with
the Oklahoma City facility closure.
|
|
6 |
|
|
With the exception of $0.1 million and $0.2 million of acquisition
related expenses that are included in the Corporate segment for the
three and six months ended June 30, 2017, respectively, results for
Manchester Industries subsequent to the December 16, 2016
acquisition are included in the Pulp and Paperboard segment.
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Non-GAAP Financial Measures
|
|
Segment Adjusted Operating Income and Operating Margin
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Consumer Products:
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
231,912
|
|
|
$
|
247,912
|
|
|
$
|
474,335
|
|
|
$
|
492,930
|
|
|
Operating income
|
|
|
10,534
|
|
|
18,544
|
|
|
16,723
|
|
|
36,934
|
|
|
Costs associated with Long Island facility closure3 |
|
|
661
|
|
|
533
|
|
|
1,127
|
|
|
965
|
|
|
Costs associated with Oklahoma City facility closure4 |
|
|
275
|
|
|
—
|
|
|
6,012
|
|
|
—
|
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
|
241
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
Consumer Products Adjusted operating income1 |
|
|
$
|
11,752
|
|
|
$
|
19,077
|
|
|
$
|
24,144
|
|
|
$
|
37,899
|
|
|
Consumer Products operating margin
|
|
|
4.5
|
%
|
|
7.5
|
%
|
|
3.5
|
%
|
|
7.5
|
%
|
|
Consumer Products Adjusted operating margin2 |
|
|
5.1
|
%
|
|
7.7
|
%
|
|
5.1
|
%
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paperboard5:
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
197,751
|
|
|
$
|
188,759
|
|
|
$
|
392,853
|
|
|
$
|
380,945
|
|
|
Operating income
|
|
|
21,595
|
|
|
40,032
|
|
|
48,843
|
|
|
75,195
|
|
|
Pulp and Paperboard Adjusted operating income1 |
|
|
$
|
21,595
|
|
|
$
|
40,032
|
|
|
$
|
48,843
|
|
|
$
|
75,195
|
|
|
Pulp and Paperboard operating margin
|
|
|
10.9
|
%
|
|
21.2
|
%
|
|
12.4
|
%
|
|
19.7
|
%
|
|
Pulp and Paperboard Adjusted operating margin2 |
|
|
10.9
|
%
|
|
21.2
|
%
|
|
12.4
|
%
|
|
19.7
|
%
|
|
|
|
|
|
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.
|
|
3 |
|
|
Costs associated with the Long Island facility closure for the three
months ended June 30, 2017 includes accelerated depreciation of $0.3
million.
|
|
4
|
|
|
Costs associated with the Oklahoma City facility closure for the six
months ended June 30, 2017 include $3.7 million of accelerated
depreciation.
|
|
5
|
|
|
With the exception of $0.1 million and $0.2 million of acquisition
related expenses that are included in the Corporate segment for the
three and six months ended June 30, 2017, respectively, results for
Manchester Industries subsequent to the December 16, 2016
acquisition are included in the Pulp and Paperboard segment.
|
|
|
|
|
|
Clearwater Paper Corporation |
|
Reconciliation of Non-GAAP Financial Measures
|
|
Adjusted Income Tax Provision
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
GAAP income tax provision
|
|
|
$
|
(3,955
|
)
|
|
$
|
(11,905
|
)
|
|
$
|
(8,955
|
)
|
|
$
|
(23,578
|
)
|
|
Special items, tax impact:
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation benefit (expense)
|
|
|
495
|
|
|
(1,275
|
)
|
|
988
|
|
|
(1,536
|
)
|
|
Manchester Industries acquisition related expenses
|
|
|
(35
|
)
|
|
—
|
|
|
(74
|
)
|
|
—
|
|
|
Costs associated with Oklahoma City facility closure
|
|
|
(92
|
)
|
|
—
|
|
|
(2,043
|
)
|
|
—
|
|
|
Costs associated with Long Island facility closure
|
|
|
(221
|
)
|
|
(188
|
)
|
|
(379
|
)
|
|
(343
|
)
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
|
(80
|
)
|
|
—
|
|
|
(80
|
)
|
|
—
|
|
|
Adjusted income tax provision1 |
|
|
$
|
(3,902
|
)
|
|
$
|
(13,368
|
)
|
|
$
|
(10,557
|
)
|
|
$
|
(25,457
|
)
|
|
Adjusted income tax provision rate1,2 |
|
|
33.0
|
%
|
|
36.2
|
%
|
|
36.1
|
%
|
|
37.3
|
%
|
|
|
|
|
|
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/20170802006192/en/
Clearwater Paper Corporation
(News media)
Matt Van Vleet,
509.344.5912
or
(Investors)
Robin S. Yim, 509.344.5906
Source: Clearwater Paper Corporation
News Provided by Acquire Media