Pulp-Paperworld.com / N.American News
Monday, 04 December 2017 18:45

Clearwater Paper Announces New Board Chair

Clearwater Paper Corporation (NYSE:CLW) has just announced that Beth Ford has been appointed as chair to the company's board of directors effective January 1, 2018.

ClearwaterPaper logo01Ms. Ford, the chief operating officer for Land O'Lakes Businesses, has served on the Clearwater Paper board of directors since 2013. As chief operating officer, Ms. Ford oversees Land O'Lakes' multi-billion dollar U.S. businesses, which include Purina Animal Nutrition, Land O'Lakes Dairy, and Winfield United, which provides crop inputs and agriculture technology solutions. In her 30 years in business, Ms. Ford has held senior and line leadership positions in seven companies across six industries, including roles at International Flavors and Fragrances, Mobil Corporation, PepsiCo and Pepsi Bottling Company, and Hachette Book Group and Scholastic, Inc.

"We greatly value the retail, supply chain, and operations insight Beth brings to us, which will help us improve our competitive position and succeed in the marketplace," said Linda Massman, president and CEO. "On behalf of the Clearwater Paper team, we extend our congratulations to Beth as our new board chair."

Ms. Ford will succeed Boh Dickey as chair. Mr. Dickey has been a Clearwater Paper board member since 2008 and chair since 2013. He is expected to retire from the company's board at the end of his current board term in May 2018 pursuant to the company's corporate governance guidelines.

"Boh has been a driving force in developing and guiding our strategy, positioning Clearwater Paper as one of the largest private label tissue manufacturers and an efficient paperboard manufacturer, serving our customers well over the years," added Massman. "I thank him for his numerous contributions and critical decisions that have helped make our company more successful."

With today's announcement, Clearwater Paper will be one of the few publicly-traded companies in the U.S. with women serving as the CEO and non-executive board chair.

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.

Source: Clearwater Paper Corporation - http://www.clearwaterpaper.com/

Published in North American News

Clearwater Paper Corporation (NYSE:CLW) has just released the company's latest corporate social responsibility (CSR) report, building on a history of sustainable commitment to our customers, employees, communities and the environment. The report shares data from the past two years, providing a comprehensive update on the company's performance on environmental, social and governance topics that matter most to Clearwater Paper stakeholders involved with or impacted by our company.

ClearwaterPaper logo01"At Clearwater Paper, we look at sustainability as a continuous improvement journey that reflects our strong commitment to being part of the solution in a changing and challenging world," said Linda Massman, president and CEO. "As such, we are pleased to present this CSR report, which was developed using current Global Reporting Initiative (GRI) G4 guidelines."

Highlights from the report include:

  • 68 percent reduction in waste to landfill since 2012
  • 10 percent reduction in water usage since 2012
  • 23 percent reduction in volatile organic compounds (VOCs) since 2012
  • 9 percent reduction in recordable safety incidents since 2012

This latest report is the company's first using GRI principles and policies. GRI helps businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as climate change, human rights, governance and social well-being. This enables real action to create social, environmental and economic benefits for everyone. The GRI Sustainability Reporting Standards are developed with true multi-stakeholder contributions and rooted in the public interest. https://www.globalreporting.org.

The report can be found at http://www.clearwaterpaper.com/environmental-performance/csr.

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.

Source: Clearwater Paper Corporation

Published in European News

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.

ClearwaterPaper logo01Earnings 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.

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.

Published in financial News

Clearwater Paper Corporation (NYSE:CLW) has just announced plans to build a new tissue machine and related converting equipment for producing premium and ultra-premium grades of private label tissue products at a site adjacent to the company's existing facility in Shelby, North Carolina.

ClearwaterPaper logo01"Clearwater Paper's customers are requiring more premium and ultra-premium products, which we are addressing with the new capacity. These high growth segments have increased 3.5 times faster than the overall tissue market, and we are committed to growing with our strategic customers and positioning ourselves to add new customers," said Linda K. Massman, president and CEO. "We believe this new capacity will reinforce our leadership in the private label tissue business and will be a significant driver of operating earnings growth while strengthening the quality of our manufacturing assets."

After an extensive analysis of the anticipated market growth, costs and financial returns of a new paper machine, the company will install a 200-inch Valmet NTT tissue machine and related converting equipment. The new tissue machine will produce a variety of high-quality private label premium and ultra-premium bath, paper towel and napkin products. At full production capacity, the new tissue machine is expected to produce approximately 70,000 tons of tissue products annually.

The estimated cost for the project includes approximately $283 million for the tissue machine, converting equipment and buildings, and approximately $57 million for the purchase and expansion of an existing warehouse that will consolidate all southeastern warehousing in Shelby. Clearwater Paper projects that the construction of the new facility will be completed in early 2019 and fully operational in 2020. Assuming the paper machine is fully sold out, it is expected to contribute an incremental $55 to $65 million of EBITDA based on $38 to $48 million of estimated operating income and approximately $17 million of estimated depreciation. The expected internal rate of return (IRR) for this project is 11 percent.

"Companies like Clearwater Paper know that North Carolina is a wonderful place to do business thanks to our skilled workforce, strong infrastructure and prime location," said North Carolina Governor Roy Cooper. "We want companies looking to expand to come to North Carolina because there's no better place to invest and grow."

"We expect the new tissue facility will be built on time and within budget, consistent with our first Shelby facility that was announced in June 2010 and commenced operations in late 2012. Our experience in Shelby, North Carolina, has been exceptional and we continue to enjoy the region's outstanding transportation infrastructure, business-friendly community, and overall quality of life," said Pat Burke, group president. "For those same reasons and a competitive incentive program from the City of Shelby, Cleveland County and the State of North Carolina, we are pleased to announce the company's newest state-of-the-art tissue machine will be built in Shelby."

The company expects to fund the project with cash flow from operations and its revolving line of credit. It is expected that capital will be deployed over the next 30 months with approximately one-third deployed in 2017, approximately two thirds in 2018 and any remaining amount in 2019.

Clearwater Paper intends to start construction during the second quarter of this year. Converting and warehouse operations are expected to be completed during the second half of 2018, and the tissue machine is expected to be completed during the first quarter of 2019.

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.

Source: Clearwater Paper Corporation

Published in North American News

Clearwater Paper Corporation (NYSE:CLW) have just announced it has acquired Manchester Industries of Richmond, Virginia, a leading, independently-owned paperboard sales, sheeting and distribution supplier to the packaging and commercial print industries.

ClearwaterPaper logo01Clearwater Paper has acquired Manchester Industries in a cash transaction from PaperWorks Industries, an integrated full-service packaging provider for a purchase price of $68.25 million. With approximately 170 full-time employees, Manchester Industries operates five facilities located in Richmond, Virginia; Wilkes-Barre, Pennsylvania; Hagerstown, Indiana; Dallas, Texas and Mendon, Michigan. Clearwater Paper believes the acquisition will be immediately accretive.

"Manchester Industries offers an excellent range of converting services that include custom sheeting, slitting, and cutting," said Linda Massman, president and CEO of Clearwater Paper. "These five plants are expected to be a valuable asset for Clearwater Paper as we look to extend our reach and service platform to the small and mid-sized folding carton plants. On behalf of Clearwater Paper, we welcome Manchester Industries employees to our team."

FBR Capital Markets & Co., led by Matthew Spain, advised Clearwater Paper on the acquisition. Pillsbury Winthrop Shaw Pittman LLP acted as legal advisor to Clearwater Paper.

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.

ABOUT PAPERWORKS INDUSTRIES, INC.

Founded in 2008, PaperWorks Industries, Inc. (PWI) is a leading, integrated North American full-service packaging provider of recycled paperboard and specialized folding cartons. The company is committed to the highest sustainable forestry and procurement standards. Product certifications include the Forest Stewardship Council, Sustainable Forestry Initiative and the Programme for the Endorsement of Forestry Certification. For more information: www.paperwrks.com.

Published in North American News

Clearwater Paper Corporation (NYSE:CLW) has just announced the permanent closure of its Oklahoma City converting facility and permanent shutdown of two tissue machines at the company's Neenah, Wisconsin, tissue facility.

ClearwaterPaper logo01"As an integral step in our overall strategy to optimize our operations through better asset utilization, we will be taking these difficult but necessary actions while delivering on our growth objectives," said Pat Burke, group president for Clearwater Paper.

Clearwater Paper intends to run its Oklahoma City facility until its permanent closure on March 31, 2017. All of the facility's 131 employees will be impacted. The facility converts large parent rolls of tissue into packaged products.

"Because of significant productivity gains from our cost and optimization programs across the company, we expect Oklahoma City's production to be effectively absorbed and more efficiently supplied by other Clearwater Paper facilities," said Glenn Taylor, vice president of manufacturing for Clearwater Paper's consumer products division.

Also, as part of an overall facility optimization and restructuring plan, Clearwater Paper's Neenah location will permanently shut down two of the company's highest-cost tissue machines, affecting approximately 85 of the facility's approximate 400 employees and removing a total production capacity of 32,000 tons beginning December 31, 2016. Three remaining tissue machines will continue to manufacture an array of private label and away-from-home tissue products.

"Although a difficult decision when considering the impacted employees at Neenah, we expect the plant's restructuring to lower our overall costs and significantly strengthen the facility," said Taylor.

The company will work closely with state employment agencies to assist employees in receiving training, educational benefits and other benefits that enable them to find new employment as quickly as possible. The company will also provide private career assistance services to help employees through this difficult time.

The company expects the total impact of non-recurring exit related costs to be approximately $13 to $16 million, $4 to $6 million of which is expected to be incurred this year with the remainder in 2017. The cost savings benefits resulting from the facility consolidation and optimization are expected to be $10 million on an annual basis, with $7 to $9 million in 2017, which will contribute to the company meeting its previously announced operational improvement target.

"Clearwater Paper's employees remain our primary consideration and we are working to do as much as we can for those affected by utilizing all resources to help them through this difficult time," said Pat Burke. "We are working with local and state agencies to supply multiple job options to the employees."

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.

Published in North American News

Clearwater Paper Corporation (NYSE:CLW) have just announced that John P. O’Donnell and Alexander Toeldte have been appointed to the company’s board of directors, effective immediately.

“Their proven leadership abilities and experience as well as their knowledge of the paper industry will be invaluable as we continue to build on Clearwater Paper’s successful track record.”

ClearwaterPaper logo01“We are excited to welcome John and Alex to our board and look forward to their perspectives and contributions,” said Boh A. Dickey, chairman of the board. “Their proven leadership abilities and experience as well as their knowledge of the paper industry will be invaluable as we continue to build on Clearwater Paper’s successful track record.”

Mr. O’Donnell currently serves as the president and chief executive officer and a director of Neenah Paper, Inc. (NYSE:NP), a global specialty materials company. Prior to this, he served as Neenah Paper’s senior vice president, chief operating officer, and as president of the fine paper business. Mr. O’Donnell was employed by Georgia-Pacific Corporation for more than 20 years, serving in various capacities, including president of the North American commercial tissue business.

Mr. Toeldte is currently an operating director at Paine & Partners, LLC, a private equity firm. Prior to this, he served as the president, chief executive officer and a director of Boise Inc., and as an executive vice president at Boise Cascade LLC. Mr. Toeldte also served as an executive vice president of Fonterra Co-operative Group, chief executive of Fonterra Enterprises, and chief executive officer of Fletcher Challenge Building and Fletcher Challenge Paper. In addition, Mr. Toeldte served as chairman of the board of directors of the American Forest & Paper Association in 2012, and was a partner at McKinsey & Company, and served as head of its pulp and paper practice. Currently he serves as a director of Xerium Technologies, Inc. (NYSE:XRM), a global provider of industrial consumable products and services.

Mr. O’Donnell has been appointed to the class of directors whose term of office will expire at the 2017 annual meeting, when it is expected he will be nominated for election to a three-year term. Mr. Toeldte has been appointed to the class of directors whose term of office will expire at the 2018 annual meeting, when it is expected he will be nominated for election to a three-year term. With these additions, Clearwater Paper’s board now consists of nine directors, eight of whom meet New York Stock Exchange standards for independence.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing locations 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 relationships through quality and service.

Published in North American News

Clearwater Paper Corporation today announced that it will begin construction of its continuous pulp digester project at the company’s Lewiston, Idaho, mill.

“We are pleased to be able to utilize a tool in Nez Perce County that can help strengthen and grow their business and assist the Lewiston facility in remaining competitive for years to come”

clearwater border logoConstruction of the project is slated to begin in October 2015 and expected to be completed in September 2017. Benefits from the project include significant reduction in air emissions, improved pulp quality and production, and more efficient utilization of wood chips (i.e. more pulp from the wood fiber Clearwater Paper uses).

“After many months of detailed review and reaching a multitude of milestones, the project is now a reality,” said Jay Backus, Clearwater Paper’s vice president of mill operations in Lewiston. “Getting to this launch point was no simple task, and there is a long list of individuals and agencies that deserve credit.”

Three key goals enabled construction to begin. First, was the authorization by the Nez Perce County commissioners of a partial tax exemption that paved the way for successful authorization and siting of the project in Lewiston. Second, was moving forward with a thorough engineering plan that validated the project’s operational goals and the return on investment. Lastly, was obtaining a permit from the Idaho Department of Environmental Quality.

The Nez Perce County Commissioners believe Clearwater Paper is a very important part of our local and regional economy. “We are pleased to be able to utilize a tool in Nez Perce County that can help strengthen and grow their business and assist the Lewiston facility in remaining competitive for years to come,” said Chairman Doug Havens.

“The leaders and citizens of Nez Perce County and our exceptional employees made it clear that this is the right place for our next major project,” said Linda Massman, president and CEO. “On behalf of everyone at Clearwater Paper, we thank you for the support and for making the Lewis-Clark Valley such a great place to do business.”

“Clearwater Paper thanks the Nez Perce County Commissioners, Doug Havens, Bob Tippett and Doug Zenner, for approving the partial tax exemption that cemented the decision to build the project in the County,” said Matt Van Vleet, vice president of public affairs. “We also thank the business leaders of Valley Vision, who were instrumental in helping support the company’s final decision to build the project in Lewiston.”

“This project is a win-win for Lewis-Clark Valley residents by helping Clearwater Paper, the area’s largest employer, to remain competitive and committed to the region,” said Doug Mattoon, executive director of Valley Vision.

During construction and start-up, the project will require hundreds of contract workers from around the globe, lodging and dining in the region for more than two years. Due to increased wood purchasing, the project is also expected to require additional need for loggers and other related contractors.

“A special thanks goes out to Idaho Director of Commerce Jeff Sayer for his assistance in the process and for recognizing the value the project would bring to Nez Perce County and the State of Idaho as a whole,” added Van Vleet.

“We also want to thank the people and business community of Lewiston, Clarkston and Nez Perce County for all the support they have given us in making this important mill upgrade a reality,” said Backus. “The Lewiston and Clarkston community has been supportive and instrumental in our being able bring this major mill improvement project to Lewiston allowing Clearwater Paper to increase our competitiveness in the global marketplace and renew our commitment to the Valley.”

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.

For additional information on Clearwater Paper, please visit the company’s website at www.clearwaterpaper.com.

Contacts

Clearwater Paper Corporation
Matt Van Vleet, 509-344-5912

Published in North American News

clearwater border logoClearwater Paper Corporation (NYSE:CLW) has announced that it priced $300 million aggregate principal amount of senior notes due 2025 (the "Notes"). The Notes will have an interest rate of 5.375% per annum and are being issued at a price equal to 100% of their face value.

The company estimates that the net proceeds from the offering will be approximately $296 million after deducting discounts and estimated offering expenses. Clearwater Paper intends to use the net proceeds along with Company funds and funds drawn from its revolving credit facility to redeem all of its outstanding 7.125% Senior Notes due 2018.

As the offering was a private placement, the notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933 (the "Securities Act") and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The notes that were offered have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the notes nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

This press release contains information about pending transactions, and there can be no assurance that these transactions will be completed.

Source: Clearwater Paper Corporation

Additional Info

  • About

    ABOUT CLEARWATER PAPER

    Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, hard 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 partnerships through quality and service.

  • Contacts

    Investors:
    Robin Yim, 509-344-5906
    robin.yim@clearwaterpaper.com
    Vice President, Investor Relations

Published in financial News

The company reported net sales of $460.8 million for the first quarter of 2013, up 0.7% compared to $457.8 million for the first quarter of 2012. The GAAP net loss for the first quarter of 2013 was $(0.9) million, or $(0.04) per diluted share, compared to net earnings of $3.7 million, or $0.16 per diluted share, for the first quarter of 2012. The net loss included $17.1 million in debt retirement costs, $3.5 million in mark-to-market impact of directors’ equity-based compensation expense, $0.2 million associated with the closing of the company’s Thomaston, Georgia facility and a tax benefit of $9.8 million associated with converting gallons from Alternative Fuel Mixture Tax Credits (AFMTC) to Cellulosic Biofuel Producer Credits (CBPC). Excluding those items, first quarter 2013 net earnings were $2.4 million, or $0.11 per diluted share, on an after-tax basis. For first quarter 2012, excluding $1.0 million of expenses associated with the Metso litigation, $0.4 million benefit in mark-to-market impact of directors’ equity-based compensation and a $5.7 million tax charge associated with converting gallons from CBPC to AFMTC, net earnings were $9.8 million, or $0.42 per diluted share, on an after-tax basis.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $34.6 million for the first quarter of 2013. Adjusted EBITDA of $38.3 million was down 16% as compared to first quarter 2012 Adjusted EBITDA of $45.8 million mainly due to lower consumer products margins, as discussed further below.

“Net sales, volumes and pricing were strong in both the Consumer Products and Pulp & Paperboard divisions in the quarter,” said Linda Massman, chief executive officer. “However, we faced some cost challenges that we expect to abate in the second quarter. Most of these were a result of limited inventory in retail tissue, caused by more demand in the quarter than we anticipated for conventional bathroom tissue. This had a negative impact on many of our cost categories, which was approximately $9 million in the first quarter. Despite these cost pressures, we still expect to achieve our $300 million adjusted EBITDA target for 2014.”

During the first quarter, the company repurchased approximately 830,000 shares of common stock at a total cost of $50.2 million. This amount includes $50 million associated with the company’s accelerated stock buyback program. The number of shares actually repurchased under the accelerated program through March 31, 2013 includes approximately 80% of the total number of shares expected to be acquired under that program. The company expects to repurchase the balance of its overall $100 million repurchase program by the end of 2013.

FIRST QUARTER 2013 SEGMENT PERFORMANCE

Consumer Products

Net sales in the Consumer Products segment were $284.9 million for the first quarter of 2013, compared to first quarter 2012 net sales of $277.8 million. The 2.5% increase in net sales was primarily attributable to higher volumes, which more than offset a slight decline in net selling prices per ton. Operating income decreased to $10.1 million from $26.3 million in the prior year period, driven primarily by increased transportation and purchased paper costs. These increased costs were caused by lower inventories as a result of increased conventional tissue sales and shipments in connection with the anticipated ramp up in through-air-dried (TAD) production and sales in 2013. Operating income was also impacted by higher external pulp costs and higher labor costs in first quarter 2013.

  • Tissue sales volumes increased 3% to 132,596 tons in the first quarter of 2013 compared to the first quarter of 2012 due to higher retail and non-retail shipments.

  • Average net selling prices decreased 0.4% to $2,149 per ton in the first quarter of 2013 as compared to the first quarter of 2012 due to a 2.6% decline in non-retail pricing caused by lower machine-glazed and contract manufacturing pricing.

  • The company’s new TAD paper machine in Shelby, North Carolina produced 13,000 tons of tissue in the quarter, slightly above expectations.

Pulp and Paperboard

Net sales of $175.9 million for the first quarter of 2013 were down 2.2% compared to first quarter 2012 net sales of $180.0 million. The decrease was primarily due to lower paperboard pricing, partially offset by increased volumes. Operating income for the quarter increased 50.6% to $17.6 million, compared to $11.7 million for the first quarter of 2012, primarily due to lower major maintenance expense.

  • Paperboard sales volumes increased 2.3% to 186,350 tons in the first quarter of 2013, compared to the first quarter of 2012.

  • Paperboard net selling prices decreased 3.4% to $935 per ton caused by softness in the markets for plate, folding, and cup products.

  • Scheduled major maintenance expense in Arkansas was $5.0 million for the quarter compared to major maintenance expense in Idaho of $15.5 million for the same period in 2012.

Taxes

The company’s effective tax rate for the quarter was a benefit of 94.3%, compared to an expense of 76.6% in the first quarter of 2012. This was mostly associated with converting gallons from AFMTC to CBPC. The company expects its annual effective tax rate to be approximately 23% for 2013. Excluding adjusting items, consisting of debt retirement costs, the mark-to-market impact of directors’ equity-based compensation, costs associated with the closing of the company’s Thomaston, Georgia facility and tax benefits associated with converting gallons from AFMTC to CBPC, the estimated annual effective tax rate is approximately 37%.

Note Regarding Use of Non-GAAP Financial Measures

In this press release, the company presents its results for the first quarter of 2013 and 2012, including EBITDA, Adjusted EBITDA, adjusted net earnings and adjusted net earnings per diluted share excluding special items. These amounts are not in accordance with generally accepted accounting principles (GAAP), and accordingly reconciliations to net earnings and net earnings per diluted share as determined in accordance with GAAP are included at the end of this press release. The company presents these amounts because management believes they assist investors and analysts in comparing the company’s performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance.

Additional Info

  • About

    ABOUT CLEARWATER PAPER

    Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine-glazed tissue, bleached paperboard and pulp at 15 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.

  • Contacts

    Investors:
    Sean Butson, +1-509-344-5906 (IR Sense)

Published in financial News
Page 1 of 4