Clearwater Paper Corporation (NYSE:CLW) today reported financial
results for the third quarter of 2015.
The company reported net sales of $442.2 million for the third quarter
of 2015, down 13.5% compared to net sales of $511.1 million for the
third quarter of 2014 primarily due to the sale of the company’s
specialty mills in December 2014. Net earnings determined in accordance
with generally accepted accounting principles, or GAAP, for the third
quarter of 2015 were $23.1 million, or $1.21 per diluted share, compared
to $6.3 million, or $0.31 per diluted share, for the third quarter of
2014. The 2015 third quarter GAAP net earnings included after-tax
expenses of $1.3 million for non-routine legal expenses and settlement
costs, a significant portion of which arose from a dispute involving one
of the company’s closed facilities, and $1.3 million after-tax
reorganization and facility closure costs, which were offset by an
after-tax benefit of $1.3 million associated with the mark-to-market
impact of directors’ equity-based compensation. Excluding those items,
third quarter 2015 adjusted net earnings were $24.4 million, or $1.28
per diluted share, compared to third quarter 2014 adjusted net earnings
of $25.7 million, or $1.28 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, was $61.3 million for the third quarter of 2015. Adjusted EBITDA
for the quarter was $63.2 million, down 12.1% compared to third quarter
2014 Adjusted EBITDA of $72.0 million. The decrease in EBITDA and
Adjusted EBITDA was due primarily to the sale of the company’s specialty
mills, lower volume and pricing of commodity grade paperboard, higher
planned maintenance costs at the company’s Idaho and Arkansas mills and
contractual wage and benefit increases. These items were partially
offset by lower input costs for chemicals, wood fiber and natural gas.
"Clearwater Paper delivered solid third quarter results with market
share gains in retail tissue, while our pulp and paperboard business
remained very profitable despite some headwinds from commodity grade
paperboard,” said Linda K. Massman, president and chief executive
officer. “We generated an Adjusted EBITDA margin of 14.3%, our highest
since the fourth quarter of 2010 and $1.28 of adjusted earnings per
share equaled our record high set in the third quarter of 2014."
The $100 million stock repurchase program, authorized in December 2014,
was completed in October 2015. Under the program, a total of 1,881,921
shares of common stock were repurchased at an average price of $53.13
per share. In the third quarter, 1,151,313 shares were purchased at an
average price of $49.23 per share.
THIRD QUARTER 2015 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $247.0 million for the
third quarter of 2015, down 19.3% compared to third quarter 2014 net
sales of $306.1 million. This decrease was due primarily to the sale of
the specialty mills.
On a GAAP basis, the segment had operating income of $15.5 million,
compared to operating income of $12.5 million in the third quarter of
2014. Adjusted operating income of $16.7 million for the third quarter
of 2015 was down from $17.9 million compared to the same period in 2014,
after adjusting for $1.2 million of costs in the third quarter of 2015
of which $0.7 million was related to previously announced facility
closures and $0.5 million of reorganization related expenses, and $5.4
million of costs in the third quarter of 2014, of which $4.8 million
related to previously announced facility closures and $0.6 million
related to costs associated with the optimization of the former
specialty mills. The adjusted operating margin improvement from 5.9% in
the third quarter of 2014 to 6.8% in the most recent period was driven
primarily by a richer product mix, improved pricing, and lower input
costs for natural gas and packaging, which were partially offset by
higher pulp costs and higher transportation expense due to customer and
product mix.
-
Total tissue sales volumes of 98,106 tons in the third quarter of 2015
declined by 27.4% and converted product cases shipped were $13.4
million, down 6.9%, each compared to the third quarter of 2014,
largely due to the sale of the specialty mills.
-
Average tissue net selling prices increased 11.3% to $2,515 per ton in
the third quarter of 2015, compared to the third quarter of 2014,
primarily due to improved product mix after the sale of the specialty
mills.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $195.2 million for the
third quarter of 2015, down 4.8% compared to third quarter 2014 net
sales of $205.0 million. The decrease was due to lower demand and
pricing pressure for commodity grade paperboard. Operating income for
the quarter decreased $8.2 million to $37.4 million, compared to $45.6
million for the third quarter of 2014, primarily due to higher planned
maintenance and contractual wage and benefit increases. These factors
were partially offset by lower polyethylene prices and improved wood
fiber yields.
-
Paperboard sales volumes decreased 1.5% to 198,535 tons in the third
quarter of 2015, compared to 201,609 tons in the third quarter of 2014.
-
Paperboard net selling prices decreased 3.6% to $979 per ton compared
to the third quarter of 2014 as a result of lower demand and pricing
pressure for commodity grades of paperboard.
Taxes
The company's GAAP tax rate for the third quarter of 2015 was a
provision of 28.3% compared to 37.4% in the third quarter of 2014 due to
non-cash adjustments resulting from a change in estimated realizable
value for state level net operating loss carryforwards. On an adjusted
basis, the third quarter 2015 tax rate was 28.5%. The company expects
its annual GAAP and adjusted tax rate to be approximately 33% for 2015.
Note Regarding Use of Non-GAAP Financial Measures
In this press release, the company presents certain non-GAAP financial
information for the third quarters of 2015 and 2014, including EBITDA,
Adjusted EBITDA, adjusted net earnings, adjusted net earnings per
diluted share, adjusted operating income, and adjusted tax rate. Because
these amounts are not in accordance with GAAP, reconciliations to net
earnings, net earnings per diluted share and adjusted tax rate as
determined in accordance with GAAP are included at the end of this press
release. The company presents these non-GAAP amounts because management
believes they assist investors and analysts in comparing the company's
performance across reporting periods on a consistent basis by excluding
items that the company does not believe are indicative of its core
operating performance.
WEBCAST INFORMATION
Clearwater Paper Corporation will discuss these results during an
earnings conference call that begins at 2:00 p.m. Pacific Time today. A
live webcast and accompanying supplemental information will be available
on the company's website at http://ir.clearwaterpaper.com.
A replay of today's conference call will be available on the website at http://ir.clearwaterpaper.com/results.cfm
beginning at 5:00 p.m. Pacific Time today.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, parent roll tissue, bleached paperboard and pulp at
manufacturing facilities across the nation. The company is a premier
supplier of private label tissue to major retailers and wholesale
distributors, including grocery, drug, mass merchants and discount
stores. In addition, the company produces bleached paperboard used by
quality-conscious printers and packaging converters. Clearwater Paper's
employees build shareholder value by developing strong customer
partnerships through quality and service.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including the company’s expected tax rate for 2015. 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 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, 2014. The forward-looking statements are made as of the
date of this press release and the company does not undertake to update
any forward-looking statements based on new developments or changes in
the company's expectations.
|
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Clearwater Paper Corporation
|
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Consolidated Statements of Operations
|
|
Unaudited (Dollars in thousands - except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
2014
|
|
|
|
|
Net sales
|
|
|
$
|
442,222
|
|
|
100
|
%
|
|
|
$
|
511,142
|
|
|
100
|
%
|
|
|
$
|
1,320,806
|
|
|
100
|
%
|
|
|
$
|
1,494,821
|
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
(373,892
|
)
|
|
85
|
%
|
|
|
|
(434,457
|
)
|
|
85
|
%
|
|
|
|
(1,148,071
|
)
|
|
87
|
%
|
|
|
|
(1,295,197
|
)
|
|
87
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
(28,284
|
)
|
|
6
|
%
|
|
|
|
(31,817
|
)
|
|
6
|
%
|
|
|
|
(85,379
|
)
|
|
6
|
%
|
|
|
|
(96,896
|
)
|
|
6
|
%
|
|
Impairment of assets
|
|
|
|
—
|
|
|
—
|
%
|
|
|
|
(890
|
)
|
|
0
|
%
|
|
|
|
—
|
|
|
—
|
%
|
|
|
|
(5,149
|
)
|
|
0
|
%
|
|
Total operating costs and expenses
|
|
|
|
(402,176
|
)
|
|
91
|
%
|
|
|
|
(467,164
|
)
|
|
91
|
%
|
|
|
|
(1,233,450
|
)
|
|
93
|
%
|
|
|
|
(1,397,242
|
)
|
|
93
|
%
|
|
Income from operations
|
|
|
|
40,046
|
|
|
9
|
%
|
|
|
|
43,978
|
|
|
9
|
%
|
|
|
|
87,356
|
|
|
7
|
%
|
|
|
|
97,579
|
|
|
7
|
%
|
|
Interest expense, net
|
|
|
|
(7,882
|
)
|
|
2
|
%
|
|
|
|
(9,570
|
)
|
|
2
|
%
|
|
|
|
(23,438
|
)
|
|
2
|
%
|
|
|
|
(30,992
|
)
|
|
2
|
%
|
|
Debt retirement costs
|
|
|
|
—
|
|
|
—
|
%
|
|
|
|
(24,420
|
)
|
|
5
|
%
|
|
|
|
—
|
|
|
—
|
%
|
|
|
|
(24,420
|
)
|
|
2
|
%
|
|
Earnings before income taxes
|
|
|
|
32,164
|
|
|
7
|
%
|
|
|
|
9,988
|
|
|
2
|
%
|
|
|
|
63,918
|
|
|
5
|
%
|
|
|
|
42,167
|
|
|
3
|
%
|
|
Income tax provision
|
|
|
|
(9,100
|
)
|
|
2
|
%
|
|
|
|
(3,735
|
)
|
|
1
|
%
|
|
|
|
(19,500
|
)
|
|
1
|
%
|
|
|
|
(17,235
|
)
|
|
1
|
%
|
|
Net earnings
|
|
|
$
|
23,064
|
|
|
5
|
%
|
|
|
$
|
6,253
|
|
|
1
|
%
|
|
|
$
|
44,418
|
|
|
3
|
%
|
|
|
$
|
24,932
|
|
|
2
|
%
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.22
|
|
|
|
|
|
$
|
0.32
|
|
|
|
|
|
|
2.33
|
|
|
|
|
|
|
1.23
|
|
|
|
|
Diluted
|
|
|
|
1.21
|
|
|
|
|
|
|
0.31
|
|
|
|
|
|
|
2.30
|
|
|
|
|
|
|
1.21
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
18,860
|
|
|
|
|
|
|
19,755
|
|
|
|
|
|
|
19,088
|
|
|
|
|
|
|
20,322
|
|
|
|
|
Diluted
|
|
|
|
19,091
|
|
|
|
|
|
|
20,100
|
|
|
|
|
|
|
19,284
|
|
|
|
|
|
|
20,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Condensed Consolidated Balance Sheets
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
$
|
13,417
|
|
|
|
$
|
27,331
|
|
|
Restricted cash
|
|
|
|
|
|
2,270
|
|
|
|
|
1,500
|
|
|
Short-term investments
|
|
|
|
|
|
10,000
|
|
|
|
|
50,000
|
|
|
Receivables, net
|
|
|
|
|
|
153,857
|
|
|
|
|
133,914
|
|
|
Taxes receivable
|
|
|
|
|
|
—
|
|
|
|
|
1,255
|
|
|
Inventories
|
|
|
|
|
|
261,683
|
|
|
|
|
286,626
|
|
|
Deferred tax assets
|
|
|
|
|
|
20,330
|
|
|
|
|
21,760
|
|
|
Prepaid expenses
|
|
|
|
|
|
6,763
|
|
|
|
|
4,191
|
|
|
Total current assets
|
|
|
|
|
|
468,320
|
|
|
|
|
526,577
|
|
|
Property, plant and equipment, net
|
|
|
|
|
|
836,758
|
|
|
|
|
810,987
|
|
|
Goodwill
|
|
|
|
|
|
209,087
|
|
|
|
|
209,087
|
|
|
Intangible assets, net
|
|
|
|
|
|
21,231
|
|
|
|
|
24,956
|
|
|
Pension assets
|
|
|
|
|
|
8,743
|
|
|
|
|
4,738
|
|
|
Other assets, net
|
|
|
|
|
|
7,394
|
|
|
|
|
9,583
|
|
|
TOTAL ASSETS
|
|
|
|
|
$
|
1,551,533
|
|
|
|
$
|
1,585,928
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
$
|
244,953
|
|
|
|
$
|
215,826
|
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
|
|
|
|
7,915
|
|
|
|
|
7,915
|
|
|
Total current liabilities
|
|
|
|
|
|
252,868
|
|
|
|
|
223,741
|
|
|
Long-term debt
|
|
|
|
|
|
575,000
|
|
|
|
|
575,000
|
|
|
Liability for pensions and other postretirement employee benefits
|
|
|
|
|
|
113,531
|
|
|
|
|
118,464
|
|
|
Other long-term obligations
|
|
|
|
|
|
47,696
|
|
|
|
|
56,856
|
|
|
Accrued taxes
|
|
|
|
|
|
1,573
|
|
|
|
|
2,696
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
100,884
|
|
|
|
|
111,634
|
|
|
Stockholders' equity, excluding accumulated other comprehensive
loss, net of tax
|
|
|
|
|
|
526,042
|
|
|
|
|
568,400
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
|
|
|
(66,061
|
)
|
|
|
|
(70,863
|
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
$
|
1,551,533
|
|
|
|
$
|
1,585,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Consolidated Statements of Cash Flows
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
44,418
|
|
|
$
|
24,932
|
|
|
Adjustments to reconcile net earnings to net cash flows from
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
62,844
|
|
|
|
66,539
|
|
|
Equity-based compensation expense
|
|
|
|
2,495
|
|
|
|
9,201
|
|
|
Impairment of assets
|
|
|
|
—
|
|
|
|
5,149
|
|
|
Deferred tax (benefit) provision
|
|
|
|
(12,403
|
)
|
|
|
12,895
|
|
|
Employee benefit plans
|
|
|
|
2,122
|
|
|
|
1,603
|
|
|
Deferred issuance costs and discounts on long-term debt
|
|
|
|
714
|
|
|
|
5,864
|
|
|
Disposal of plant and equipment, net
|
|
|
|
1,109
|
|
|
|
747
|
|
|
Non-cash adjustments to unrecognized taxes
|
|
|
|
(1,123
|
)
|
|
|
149
|
|
|
Changes in working capital, net
|
|
|
|
15,471
|
|
|
|
(13,190
|
)
|
|
Changes in taxes receivable, net
|
|
|
|
1,255
|
|
|
|
7,894
|
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
(3,848
|
)
|
|
|
(1,508
|
)
|
|
Funding of qualified pension plans
|
|
|
|
(3,179
|
)
|
|
|
(15,957
|
)
|
|
Other, net
|
|
|
|
(2,320
|
)
|
|
|
(2,387
|
)
|
|
Net cash flows from operating activities
|
|
|
|
107,555
|
|
|
|
101,931
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
Changes in short-term investments, net
|
|
|
|
40,000
|
|
|
|
70,000
|
|
|
Additions to plant and equipment
|
|
|
|
(78,461
|
)
|
|
|
(54,029
|
)
|
|
Proceeds from sale of assets
|
|
|
|
587
|
|
|
|
733
|
|
|
Net cash flows from investing activities
|
|
|
|
(37,874
|
)
|
|
|
16,704
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
|
—
|
|
|
|
300,000
|
|
|
Repayment of long-term debt
|
|
|
|
—
|
|
|
|
(375,000
|
)
|
|
Purchase of treasury stock
|
|
|
|
(84,305
|
)
|
|
|
(100,000
|
)
|
|
Changes in short-term borrowings, net
|
|
|
|
—
|
|
|
|
47,047
|
|
|
Payments for long-term debt issuance costs
|
|
|
|
—
|
|
|
|
(2,995
|
)
|
|
Payment of tax withholdings on equity-based payment arrangements
|
|
|
|
(3,129
|
)
|
|
|
(792
|
)
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
|
3,848
|
|
|
|
1,508
|
|
|
Other, net
|
|
|
|
(9
|
)
|
|
|
1,500
|
|
|
Net cash flows from financing activities
|
|
|
|
(83,595
|
)
|
|
|
(128,732
|
)
|
|
Decrease in cash
|
|
|
|
(13,914
|
)
|
|
|
(10,097
|
)
|
|
Cash at beginning of period
|
|
|
|
27,331
|
|
|
|
23,675
|
|
|
Cash at end of period
|
|
|
$
|
13,417
|
|
|
$
|
13,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Segment Information
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
Segment net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
$
|
247,039
|
|
|
56
|
%
|
|
$
|
306,104
|
|
|
60
|
%
|
|
$
|
721,606
|
|
|
55
|
%
|
|
$
|
891,742
|
|
|
60
|
%
|
|
Pulp and Paperboard
|
|
|
195,183
|
|
|
44
|
%
|
|
|
205,038
|
|
|
40
|
%
|
|
|
599,200
|
|
|
45
|
%
|
|
|
603,079
|
|
|
40
|
%
|
|
Total segment net sales
|
|
$
|
442,222
|
|
|
100
|
%
|
|
$
|
511,142
|
|
|
100
|
%
|
|
$
|
1,320,806
|
|
|
100
|
%
|
|
$
|
1,494,821
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
$
|
15,521
|
|
|
39
|
%
|
|
$
|
12,535
|
|
|
29
|
%
|
|
$
|
44,948
|
|
|
51
|
%
|
|
$
|
24,717
|
|
|
25
|
%
|
|
Pulp and Paperboard
|
|
|
37,446
|
|
|
94
|
%
|
|
|
45,602
|
|
|
104
|
%
|
|
|
81,394
|
|
|
93
|
%
|
|
|
116,013
|
|
|
119
|
%
|
|
|
|
|
52,967
|
|
|
|
|
|
58,137
|
|
|
|
|
|
126,342
|
|
|
|
|
|
140,730
|
|
|
|
|
Corporate
|
|
|
(12,921
|
)
|
|
32
|
%
|
|
|
(14,159
|
)
|
|
32
|
%
|
|
|
(38,986
|
)
|
|
45
|
%
|
|
|
(43,151
|
)
|
|
44
|
%
|
|
Income from operations
|
|
$
|
40,046
|
|
|
100
|
%
|
|
$
|
43,978
|
|
|
100
|
%
|
|
$
|
87,356
|
|
|
100
|
%
|
|
$
|
97,579
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Reconciliation of Consolidated Net Earnings to EBITDA and Adjusted
EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net earnings
|
|
$
|
23,064
|
|
|
$
|
6,253
|
|
|
$
|
44,418
|
|
|
$
|
24,932
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Interest expense, net1
|
|
|
7,882
|
|
|
|
33,990
|
|
|
|
23,438
|
|
|
|
55,412
|
|
Income tax provision
|
|
|
9,100
|
|
|
|
3,735
|
|
|
|
19,500
|
|
|
|
17,235
|
|
Depreciation and amortization expense
|
|
|
21,204
|
|
|
|
22,293
|
|
|
|
62,844
|
|
|
|
66,539
|
|
EBITDA2
|
|
$
|
61,250
|
|
|
$
|
66,271
|
|
|
$
|
150,200
|
|
|
$
|
164,118
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
$
|
(1,914
|
)
|
|
$
|
(185
|
)
|
|
$
|
(3,841
|
)
|
|
$
|
2,596
|
|
Legal expenses and settlement costs
|
|
|
1,972
|
|
|
|
—
|
|
|
|
1,972
|
|
|
|
—
|
|
Reorganization related expenses
|
|
|
1,185
|
|
|
|
—
|
|
|
|
1,185
|
|
|
|
—
|
|
Costs associated with Long Island facility closure
|
|
|
728
|
|
|
|
4,767
|
|
|
|
2,017
|
|
|
|
15,042
|
|
Adjustments associated with optimization and sale of the specialty
mills
|
|
|
—
|
|
|
|
1,066
|
|
|
|
(1,462
|
)
|
|
|
1,066
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
—
|
|
|
|
1,730
|
|
|
|
—
|
|
Costs associated with Thomaston facility closure
|
|
|
—
|
|
|
|
42
|
|
|
|
—
|
|
|
|
1,166
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA3
|
|
$
|
63,221
|
|
|
$
|
71,961
|
|
|
$
|
151,801
|
|
|
$
|
183,988
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Interest expense, net for the three and nine months ended
September 30, 2014 includes debt retirement costs of $24.4 million.
|
|
|
|
|
|
|
|
2
|
|
EBITDA is a non-GAAP measure that management uses to
evaluate the cash generating capacity of the company. The most
directly comparable GAAP measure is net earnings. EBITDA is net
earnings adjusted for net interest expense, income taxes, and
depreciation and amortization. It should not be considered as an
alternative to net earnings computed under GAAP.
|
|
|
|
|
|
|
|
3
|
|
Adjusted EBITDA excludes the impact of the items listed
that we do not believe are indicative of our core operating
performance.
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
Unaudited (Dollars in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings
|
|
$
|
23,064
|
|
|
$
|
6,253
|
|
|
$
|
44,418
|
|
|
$
|
24,932
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
(1,307
|
)
|
|
|
(120
|
)
|
|
|
(2,630
|
)
|
|
|
1,659
|
|
Legal expenses and settlement costs
|
|
|
1,346
|
|
|
|
—
|
|
|
|
1,346
|
|
|
|
—
|
|
Reorganization related expenses
|
|
|
809
|
|
|
|
—
|
|
|
|
809
|
|
|
|
—
|
|
Costs associated with Long Island facility closure
|
|
|
497
|
|
|
|
3,069
|
|
|
|
1,384
|
|
|
|
9,656
|
|
Debt retirement costs
|
|
|
—
|
|
|
|
15,777
|
|
|
|
—
|
|
|
|
15,777
|
|
Adjustments associated with optimization and sale of the specialty
mills
|
|
|
—
|
|
|
|
689
|
|
|
|
(1,003
|
)
|
|
|
689
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
—
|
|
|
|
1,197
|
|
|
|
—
|
|
Costs associated with Thomaston facility closure
|
|
|
—
|
|
|
|
27
|
|
|
|
—
|
|
|
|
749
|
|
Discrete tax items related to New York
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,388
|
|
Adjusted net earnings2
|
|
$
|
24,409
|
|
|
$
|
25,695
|
|
|
$
|
45,521
|
|
|
$
|
54,850
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings per diluted share
|
|
$
|
1.21
|
|
|
$
|
0.31
|
|
|
$
|
2.30
|
|
|
$
|
1.21
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
(0.07
|
)
|
|
|
(0.01
|
)
|
|
|
(0.14
|
)
|
|
|
0.08
|
|
Legal fees and settlement expenses
|
|
|
0.07
|
|
|
|
—
|
|
|
|
0.07
|
|
|
|
—
|
|
Reorganization related expenses
|
|
|
0.04
|
|
|
|
—
|
|
|
|
0.04
|
|
|
|
—
|
|
Costs associated with Long Island facility closure
|
|
|
0.03
|
|
|
|
0.15
|
|
|
|
0.07
|
|
|
|
0.47
|
|
Debt retirement costs
|
|
|
—
|
|
|
|
0.78
|
|
|
|
—
|
|
|
|
0.76
|
|
Adjustments associated with optimization and sale of the specialty
mills
|
|
|
—
|
|
|
|
0.03
|
|
|
|
(0.05
|
)
|
|
|
0.03
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
—
|
|
|
|
0.06
|
|
|
|
—
|
|
Costs associated with Thomaston facility closure
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.04
|
|
Discrete tax items related to New York
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.07
|
|
Adjusted net earnings per diluted share2
|
|
$
|
1.28
|
|
|
$
|
1.28
|
|
|
$
|
2.36
|
|
|
$
|
2.66
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Unaudited (Dollars in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax provision
|
|
$
|
(9,100
|
)
|
|
$
|
(3,735
|
)
|
|
$
|
(19,500
|
)
|
|
$
|
(17,235
|
)
|
|
Special items, after-tax:
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (benefit) expense
|
|
|
607
|
|
|
|
65
|
|
|
|
1,211
|
|
|
|
(937
|
)
|
|
Legal expenses and settlement costs
|
|
|
(626
|
)
|
|
|
—
|
|
|
|
(626
|
)
|
|
|
—
|
|
|
Reorganization related expenses
|
|
|
(376
|
)
|
|
|
—
|
|
|
|
(376
|
)
|
|
|
—
|
|
|
Costs associated with Long Island facility closure
|
|
|
(231
|
)
|
|
|
(1,698
|
)
|
|
|
(633
|
)
|
|
|
(5,386
|
)
|
|
Debt retirement costs
|
|
|
—
|
|
|
|
(8,643
|
)
|
|
|
—
|
|
|
|
(8,643
|
)
|
|
Adjustments associated with optimization and sale of the specialty
mills
|
|
|
—
|
|
|
|
(377
|
)
|
|
|
459
|
|
|
|
(377
|
)
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
—
|
|
|
|
(533
|
)
|
|
|
—
|
|
|
Costs associated with Thomaston facility closure
|
|
|
—
|
|
|
|
(15
|
)
|
|
|
—
|
|
|
|
(417
|
)
|
|
Discrete tax items related to New York
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,388
|
|
|
Adjusted income tax provision1
|
|
$
|
(9,726
|
)
|
|
$
|
(14,403
|
)
|
|
$
|
(19,998
|
)
|
|
$
|
(31,607
|
)
|
|
Adjusted income tax provision rate2
|
|
|
28.5
|
%
|
|
|
35.9
|
%
|
|
|
30.5
|
%
|
|
|
36.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
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)].
|
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