Displaying items by tag: Clearwater Paper

Clearwater Paper Corporation (NYSE:CLW) has announced a proposed offering of $250 million aggregate principal amount of senior notes due 2023.

Clearwater Paper intends to use approximately $163.9 million of the net proceeds to redeem all of its outstanding 10.625% Senior Notes due 2016. The remaining net proceeds are expected to be used to purchase shares of the Company's common stock pursuant to the Company's $100 millionstock repurchase program separately announced today.

As the offering is a private placement, the notes will be 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 to be 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

Clearwater Paper Corporation (NYSE:CLW) has announced that its board of directors has authorized the repurchase of up to $100 million of the company's common stock, reflecting the company's strong balance sheet and positive outlook on its business. This authorization follows the completion of the company's previous $30 million stock repurchase authorization implemented by the board in July 2011.Clearwater Paper expects to fund the repurchases through available cash resources, including a portion of the proceeds of a proposed senior notes offering announced separately today.

"This stock repurchase program, which we intend to fully execute in 2013, emphasizes the board's ongoing commitment to enhancing shareholder value," said Linda K. Massman, president and chief executive officer. "With the successful start-up of our Shelby TAD paper machine, Clearwater Paperis poised to generate significant discretionary free cash flow. We are now focused on operational execution in the near term and upon completion of the stock repurchase program, we plan to return approximately 50% of discretionary free cash flow to our shareholders over the 2014 and 2015 timeframe."

The repurchase program authorizes the company to purchase its common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. The company has no obligation to repurchase stock under this program and may suspend or terminate the program at any time.

Source: Clearwater Paper Corporation

Clearwater Paper Corporation has announced the completion of the next phase of the company's newest facility at Shelby, N.C., culminating in the start-up of the company's new through-air-dried (TAD) paper machine. The machine produced its first finished ton and converted product on December 13.

"Construction of all phases to date of the nearly one-million-square-foot facility came in on-time and on-budget," said Gordon Jones, chairman and CEO. "The dedication and support of Clearwater Paper's 200 Shelby employees have already made this facility a huge success."

Upgrades to a second Clearwater Paper TAD paper machine, located at the company's facility in North Las Vegas, have also been completed. The enhancements enable the facility to produce TAD ultra-bathroom tissue and household towels.

New production and distribution capability at Shelby is expected to increase the company's ultra and premium offerings to existing southern and East Coast customers. Collectively, the two TAD machines will create new opportunities to expand the company's private label consumer tissue business around a national manufacturing footprint, supplying these key products to customers across the United States.

"The completion of the flagship facility in Shelby fulfills one of Clearwater Paper's primary business strategies — to focus on growing the consumer products segment of the company," said Linda Massman, president and COO. "Combined with the recent upgrade at our North Las Vegas facility, these two important projects have helped Clearwater Paper achieve our goal of a coast-to-coast manufacturing footprint focused on best serving our private label customers."

The Shelby project, announced in June 2010, involved significant coordination with local and state agencies.

"The ongoing support from the people of Cleveland County and our new, exceptionally talented employee team has made this world-class facility possible," said Vince Reese, Shelby plant manager.

"We clearly owe a big thanks to the hundreds of contractors who have worked methodically night and day for two years to build one of the finest tissue manufacturing complexes in the world," said Brian Hoaglund, expansion project leader. "We worked seamlessly with government agencies fromShelby, Cleveland County and the state of North Carolina throughout the process."

Clearwater Paper's Las Vegas TAD machine was completed in 2004 to fill an important void in the private label tissue marketplace, which lacked a leading national brand equivalent (NBE) ultra-premium quality paper towel product. Since the machine became operational, Clearwater Paper has been a leading supplier of TAD paper towels to regional and national private label retailers throughout the United States.

"The Las Vegas upgrade was a success for many reasons including excellent project management," said Bill Copenspire, vice president consumer products manufacturing. "We completed significant pre-installation work before the scheduled outage and had very good communication betweenClearwater Paper and an army of vendors."

"Clearwater Paper can add NBE TAD bath tissue to our product lineup at a time when the ultra-quality tier is the highest growth segment in bath tissue," said Bruce Woodlief, director of marketing. "The addition of TAD bath provides retail customers with a significant quality improvement over their existing conventional ultra-bath product."

Source: Clearwater Paper Corporation

Clearwater Paper Corporation (NYSE:CLW) has announced that Linda K. Massman will become the company's next chief executive officer, succeeding Gordon L. Jones, who will be retiring from his roles as chief executive officer and chairman of the board of directors, on December 31, 2012.

Ms. Massman, currently president and chief operating officer, will begin as president and chief executive officer, effective January 1, 2013. Ms. Massman will also join Clearwater Paper's board of directors at that time. Additionally, vice chairman and lead director of the board, Boh A. Dickey, has been appointed chairman of the board, effective January 1, 2013.

"Linda has been an integral part of the company's ability to design and execute its strategy from the beginning," said Mr. Dickey. "She came toClearwater Paper as one of the company's original leaders after a rapid succession in finance and strategy development, and is now making the natural progression from chief operating officer to chief executive officer. She is the right person to lead Clearwater Paper as we enter our next phase of growth and development."

"I have had the pleasure of working closely with Linda since the company's spin-off in 2008 and she has been an integral part of Clearwater Paper's success," said Mr. Jones. "Since that time, we have executed on our growth strategy and successfully transformed our company into one of the largest and most successful premium private label tissue and bleached paperboard producers in North America. Under Linda's leadership, I am confidentClearwater Paper will continue to build on this track record of success."

Ms. Massman was appointed vice president and chief financial officer of Clearwater Paper in 2008, then named president and chief operating officer inNovember 2011. Before joining Clearwater Paper, Ms. Massman was group vice president, finance and corporate planning, for SUPERVALU Inc. Prior to this, Ms. Massman worked as a business strategy consultant for Accenture. Ms. Massman has more than 20 years of corporate finance and business strategy development experience and earned a Bachelor of Business Administration from the University of North Dakota and an MBA fromHarvard Business School.

Added Mr. Dickey, "Linda's customer-side experience, broad financial and strategic planning expertise with some of the country's biggest consumer brands and her knowledge of the company from day one give her the unique ability to lead Clearwater Paper and ensure the company's continued growth and success. We look forward to working with Linda as we build upon the strong foundation already in place and continue to execute our strategic priorities and create stockholder value."

"I am honored to take on the role of CEO of Clearwater Paper at this time of great opportunity," said Ms. Massman. "Given the market dynamics within private label, our track record of success and strategic plan for growth, I believe we are well positioned to continue to enhance stockholder value. We remain focused on expanding the geographic and channel reach of Clearwater Paper while executing on our cost efficiency and integration synergy goals. I look forward to working with the board, management team and our dedicated employees to continue Clearwater Paper's achievements for customers and investors."

"On behalf of the board and everyone at Clearwater Paper, I would like to thank Gordon for his leadership, commitment and countless contributions to our company," said Mr. Dickey. "We look forward to continuing to benefit from his experience as a director on the board, and we wish him all the best in his retirement."

Source: Clearwater Paper

Clearwater Paper Corporation has reported financial results for the second quarter of 2012.

The company reported net earnings of $21.5 million, or $0.91 per diluted share, for the second quarter of 2012, compared to net earnings of $13.9 million, or $0.59 per diluted share, for the second quarter of 2011.

Second quarter 2012 earnings before interest, taxes, depreciation and amortization, or EBITDA, was $64.2 million, compared to $52.4 million in the second quarter of 2011. Second quarter 2012 Adjusted EBITDA, which excludes approximately $1.0 million of legal expenses related to the attempt to enjoin delivery of the TAD tissue machine to the company's Shelby, North Carolina facility and a $1.0 million loss associated with the sale of legacy Cellu Tissue foam manufacturing assets, was $66.2 million.

"Strong Consumer Products and Pulp and Paperboard results produced record quarterly EBITDA," said Gordon Jones, chairman and chief executive officer. "In addition, cost savings synergies from our Cellu Tissue acquisition came in ahead of our estimates in the first two quarters of 2012, and our new paper machine facility in Shelby remains on budget and on time, with production expected to begin by year end."

The company repurchased 238,482 shares at a total cost of $7.5 million during the second quarter pursuant to its previously announced $30 millionshare buyback program. Since announcing the program in July 2011, the company has repurchased 571,782 shares at a total cost of $18.8 million for an average share price of $32.91.

SECOND QUARTER 2012 SEGMENT PERFORMANCE

Consumer Products

Net sales in the Consumer Products segment increased 5.2% to $283.1 million for the second quarter of 2012, as compared to second quarter 2011 net sales of $269.1 million, as a result of higher net selling prices and an increase in volumes. The $25.7 million of operating income for the second quarter of 2012 was approximately 275% higher as compared with the second quarter of 2011, primarily due to higher net sales and lower external pulp costs. Operating income for the second quarter of 2012 included a $1.0 million loss on the sale of legacy Cellu Tissue foam manufacturing assets.

• Tissue sales volume increased 3.3% to 132,978 tons in the second quarter of 2012 compared to the second quarter of 2011 due to consistent retail sales and increased parent roll sales.
• Net selling prices increased 2.0% to $2,129 per ton in the second quarter of 2012 compared to the second quarter of 2011 due to the segment's retail price increase that was implemented in the fourth quarter of 2011 and the first quarter of 2012, as well as sales mix improvements.
• The company has increased its expected 2012 cost savings from synergies related to the Cellu Tissue acquisition from $20 million to $28 million, with $6.7 million realized in the second quarter of 2012, and still expects that its annual run rate of cost savings from these synergies will be in the range of $35 to $40 million by the end of 2012.

Pulp and Paperboard

Net sales of $190.5 million for the second quarter of 2012 were down 15.5%, compared to second quarter 2011 net sales of $225.5 million. The decrease in net sales was primarily due to the sale of the company's Lewiston, Idaho sawmill in November 2011. In addition, there was a reduction in the sale of external pulp due to increased internal usage and lower paperboard volumes relative to the second quarter of 2011. Operating income for the quarter declined 7.1% to $32.0 million, compared to $34.5 million for the second quarter of 2011, primarily due to the decline in sales volumes partially offset by lower pulp, energy and transportation costs.

• Paperboard volumes declined 4.3% to 193,285 tons versus a record second quarter of 2011.
• Pulp net sales of $2.1 million were down $5.9 million versus the second quarter of 2011 due primarily to the increased internal usage of pulp produced by the company and a 30% decline in pulp sales prices.

Taxes

The actual income tax rate for the second quarter of 2012 was 39.2%, compared to 38.3% in the second quarter of 2011. Excluding discrete items, the effective tax rate in the second quarter of 2012 was approximately 35.3%. The estimated annual effective tax rate for 2012, excluding discrete items, is expected to be approximately 35.1%.

Note Regarding Use of Non-GAAP Financial Measures

In this press release, the company presents its results for the second quarter of 2012 and 2011, including EBITDA and Adjusted EBITDA. The EBITDA and Adjusted EBITDA amounts are not in accordance with generally accepted accounting principles (GAAP) and accordingly reconciliations of EBITDA and Adjusted EBITDA to net earnings determined in accordance with GAAP are included at the end of this press release.

For the full release and table follow here

Source: Clearwater Paper Corporation

CONFERENCE CALL INFORMATION

A live audio webcast and conference call will be held today, Wednesday, July 25, 2012, at 2 p.m. Pacific time (5 p.m. Eastern time). Investors may access the conference call by dialing 877-303-9241 (for U.S./Canada investors) or 760-666-3575 (for international investors). The audio webcast may be accessed on the company's website at http://ir.clearwaterpaper.com/events.cfm. An accompanying presentation including supplemental information will be available for downloading at the same site at 1 p.m. Pacific time (4 p.m. Eastern time). The webcast will be audio only. Investors are recommended to download the accompanying presentation prior to the call.

For those unable to participate in the call, an archived recording will be available through the Clearwater Paper Corporation website www.clearwaterpaper.com under "Investor Relations" following the conference call.

Clearwater Paper Corporation has announced the appointment of John D. Hertz as senior vice president, finance and chief financial officer. Hertz will assume the CFO responsibilities on August 6, 2012. He will replace Johnathan D. Hunterwho has been serving as interim CFO, and Mr. Hunter's role and title remains as vice president and controller.

Hertz, 45, will have responsibility for financial reporting and controls, investor relations, risk management, tax and treasury functions. He most recently served as vice president and chief financial officer for Novellus Systems, Inc. Novellus is a semiconductor manufacturing equipment supplier with annual sales of approximately $1.6 billion and a category leader. Prior to Novellus, he held senior positions at Intel Corporation including central finance controller of the digital enterprise group, finance controller of the enterprise platform services division and accounting policy controller. Prior to joining Intel, Mr. Hertz served as a senior manager with KPMG.

"John's 23-year track record as a successful senior leader in accounting, auditing and finance, combined with his strong investor relations management background, clearly make him a strong addition to our senior management team," said Gordon Jones, chairman and chief executive officer.

Hertz earned a Bachelor of Science in business with an accounting emphasis from Montana State University and was a practice fellow at the Financial Accounting Standards Board (FASB).

Source: Clearwater Paper Corporation

Ruling Allows Delivery of TAD Paper Machine to Clearwater Paper by July 2012, Facilitating Completion of Shelby Tissue Facility on Schedule

SPOKANE, Wash. --- Clearwater Paper Corporation (NYSE:CLW) has commented on the ruling in the United States District Court for the District of South Carolina in favor of Metso Paper USA and Clearwater Paper in connection with a lawsuit filed by First Quality Tissue SE, LLCthat sought to enjoin Metso Paper from delivering a Through-Air-Dried, or TAD, paper machine to Clearwater Paper.

"Clearwater Paper is very pleased with the court's decision to deny the request for injunctive relief and dismiss the amended complaint, and we look forward to completion of our Shelby TAD paper machine facility," said Gordon Jones, chairman and chief executive officer. "We expect that the final components of our TAD paper machine will be delivered by Metso Paper by July 2012, pursuant to our contract with them, and that our Shelby TAD paper machine facility will be completed and begin operations prior to the end of 2012."

In 2010, Clearwater Paper contracted with Metso Paper to construct a TAD paper machine for its tissue manufacturing and converting facility under construction at Shelby, North Carolina. Clearwater Paper's contract with Metso Paper calls for an expected delivery of the TAD paper machine by July 2012. In August 2011, First Quality filed a lawsuit against Metso Paper seeking to enjoin Metso Paper from delivering the TAD paper machine toClearwater Paper based on the terms of an agreement between Metso Paper and First Quality. Clearwater Paper intervened in the litigation inNovember 2011 to ensure representation of its interests.

Source: Clearwater Paper Corporation

Clearwater Paper Corporation has announced that Gordon Jones, chairman and CEO, andLloyd Fillis, vice president treasurer and tax, will present at the Oppenheimer 7^th Annual Industrials Conference on Tuesday, May 15, at 8:00 a.m. Eastern time. A live audio webcast of the presentation and accompanying slide materials will be accessible via Clearwater Paper's investor relations section of the company's website at http://ir.clearwaterpaper.com/events.cfm. An audio replay of the webcast will be available at the site for 90 days.

ABOUT CLEARWATER PAPER

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

For additional information on Clearwater Paper, please visit our website at www.clearwaterpaper.com.

Source: Clearwater Paper Corporation

Clearwater Paper Corporation  has announced that it will host its first quarter 2012 financial results conference call on Wednesday, April 25, 2012, at 2 p.m. Pacific Time (5 p.m. Eastern Time). The company will issue its financial results after market close the same day.

Investors may access the conference call by dialing 877-303-9241 (for US/Canada investors) or 760-666-3575 (for international investors). The audio webcast may be accessed on the company's website at http://ir.clearwaterpaper.com/events.cfm.

An accompanying presentation will be available for downloading from http://ir.clearwaterpaper.com/events.cfm after the market closes. The webcast will be audio only. Investors are recommended to download the accompanying presentation prior to the call.

For those unable to participate in the call, an archived recording will be available through Clearwater Paper's website at www.clearwaterpaper.comunder "Investor Relations" following the conference call.

Source: Clearwater Paper Corporation

Clearwater Paper Corporation has reported financial results for the fourth quarter and full year of 2011.

The company reported net earnings of $11.5 million, or $0.48 per diluted share, for the fourth quarter of 2011, compared to net earnings of $37.8 million, or $1.60 per diluted share, for the fourth quarter of 2010. Excluding $1.8 million in after-tax charges related to the sale of our Lewiston, Idahosawmill on November 28, 2011, fourth quarter 2011 net earnings were $13.3 million, or $0.55 per diluted common share. Fourth quarter 2010 results included $10.5 million in after-tax costs related to the Cellu Tissue acquisition and a $27.1 million benefit from a Cellulosic Biofuel Producer Credit. Excluding these items, fourth quarter 2010 net earnings would have been $21.2 million, or $0.90 per diluted common share.

Fourth quarter 2011 earnings before interest, taxes, depreciation and amortization, or EBITDA, was $52.2 million, compared to $34.6 million in the fourth quarter of 2010. Fourth quarter 2011 Adjusted EBITDA, which excludes $2.9 million in pre-tax adjustments associated with the sale of the sawmill, was $55.1 million. Fourth quarter 2010 Adjusted EBITDA, which excludes $17.2 million in pre-tax Cellu Tissue acquisition related expenses, was $51.9 million.

"We reported record net sales of nearly $2 billion in 2011 and remain excited about our growing tissue business," said Gordon Jones, chairman and chief executive officer. "Our new tissue machine and additional converting lines at Shelby, North Carolina are on budget and scheduled for start-up in December 2012."

As part of the company's previously announced share buyback program, during the fourth quarter the company repurchased 41,700 shares of outstanding common stock at an average price of $32.30 per share. Since announcing the $30 million share buyback authorization on July 28, 2011, the company has repurchased 333,300 shares at a total cost of $11.3 million.

FOURTH QUARTER 2011 SEGMENT PERFORMANCE

Consumer Products

Net sales in the Consumer Products segment were $268.5 million for the fourth quarter of 2011, as compared to fourth quarter 2010 net sales of$142.9 million. The increase in net sales was predominately attributable to the inclusion of Cellu Tissue's operating results for the full fourth quarter 2011 compared to inclusion of only four days of operating results in fourth quarter 2010. Operating income for the fourth quarter of 2011 was $15.0 million, compared with operating income of $11.3 million for the fourth quarter of 2010. Excluding $6.3 million in pre-tax Cellu Tissue acquisition related costs, fourth quarter 2010 operating income would have been $17.6 million.

• Tissue volume increased to 123,046 tons in the fourth quarter of 2011, as compared to 55,626 tons in the fourth quarter of 2010, with the increase predominantly attributable to the addition of Cellu Tissue volumes. Including Cellu Tissue in our fourth quarter 2010 results would have resulted in pro forma volume of 132,673 tons. The decrease in fourth quarter 2011 tons versus 2010 pro forma tons sold by the combined business was due to softness in our contract manufacturing and machine glazed tissue markets. We also converted more parent rolls into finished cases in 2011, which results in a yield loss associated with the process of manufacturing converted cases, and curtailed parent roll sales to build retail inventory to support customer service needs.
• Net selling prices decreased to $2,182 per ton in the fourth quarter of 2011 as compared to $2,567 per ton in the fourth quarter of 2010, due predominantly to the inclusion of Cellu Tissue products in the total product mix for the 2011 period. The former Cellu Tissue operations have a broader range of products and tissue grades than the legacy Clearwater Paper facilities. On a pro forma basis, net selling prices increased 6.3% versus fourth quarter 2010. This selling price improvement is the result of a previously discussed price increase, the vast majority of which was implemented in the fourth quarter of 2011, and a direct result of our efforts to improve product mix.
• Operating income in the fourth quarter of 2011 when compared to 2010 was negatively impacted by higher pulp, transportation, packaging and energy costs with the increase predominantly attributable to the addition of Cellu Tissue.
• The first two lines at our Shelby facilities contributed modest operating income in the fourth quarter of 2011. We expect these two lines to contribute approximately $8 million of operating income in 2012, which includes approximately $2 million of depreciation.
• We estimate that the net cost savings from synergies from the Cellu Tissue acquisition were approximately $2.4 million in the fourth quarter of 2011. We anticipate achieving between $15 and $20 million of cost savings from synergies in 2012 and expect the annual run rate cost savings from synergies to be in the range of $35 to $40 million by the end of 2012.

Pulp and Paperboard

Net sales of $197.9 million for the fourth quarter of 2011 were down 2.3%, compared to fourth quarter 2010 net sales of $202.6 million. Operating income for the quarter declined to $16.5 million, compared to $29.1 million for the fourth quarter of 2010. Excluding $15.4 million in sawmill sale and related costs, operating income would have been $31.9 million for the fourth quarter of 2011. The company also made offsetting adjustments to LIFO inventory reserves in connection with the sawmill sale, which were accounted for at the corporate rather than the segment level.

• Paperboard net sales were higher for the quarter, driven by a 2.4% increase in paperboard pricing to $970 per ton and a 4.8% increase in paperboard volumes to 185,487 tons, compared to the fourth quarter of 2010.
• Partially offsetting higher paperboard net sales were reduced pulp sales due to increased transfers of pulp to the Consumer Products segment for internal utilization. External pulp sales decreased from 17,387 tons in the fourth quarter of 2010 to 2,360 tons in the fourth quarter of 2011. Net sales were also lower due to the sale of the sawmill in the fourth quarter of 2011.
• The increase in operating income, excluding the sawmill sale, was driven by higher paperboard sales, partially offset by higher input costs for chemicals and wood fiber in the fourth quarter of 2011 as compared to the same period of 2010.

Taxes

The effective tax rate for the fourth quarter of 2011, excluding discrete items, was approximately 35.6%, compared to 35.8% in the fourth quarter of 2010. The actual income tax rate for the fourth quarter of 2011 was 47.8%, compared to a benefit of 213.1% in the fourth quarter of 2010. Our 2010 effective rate included the benefits from the Cellulosic Biofuel Producer Credit.