Clearwater Paper Corporation (NYSE:CLW) today reported financial
results for the first quarter of 2016.
The company reported net sales of $437.2 million for the first quarter
of 2016, up 0.7% compared to net sales of $434.0 million for the first
quarter of 2015. Net earnings determined in accordance with generally
accepted accounting principles, or GAAP, for the first quarter of 2016
were $18.4 million, or $1.05 per diluted share, compared to $5.8
million, or $0.30 per diluted share, for the first quarter of 2015.
Excluding certain items identified in the attached reconciliations to
GAAP, first quarter 2016 adjusted net earnings were $19.2 million, or
$1.09 per diluted share, compared to first quarter 2015 adjusted net
earnings of $6.9 million, or $0.36 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, was $58.9 million for the first quarter of 2016. Adjusted EBITDA
for the quarter was $60.1 million, up 58.4% compared to first quarter
2015 Adjusted EBITDA of $37.9 million. The increase in EBITDA and
Adjusted EBITDA was due primarily to higher shipment volumes in both
paperboard and tissue, the absence of scheduled major maintenance at the
company’s Lewiston, Idaho, pulp and paperboard facility, lower input
costs for energy, chemicals, transportation, packaging supplies, and
external pulp costs along with increased use of internally generated
pulp, and improved absorption of fixed costs. These improvements were
partially offset by lower paperboard pricing and a higher mix of both
commodity grade paperboard and tissue parent roll sales in the quarter.
“Clearwater Paper got off to a strong start in 2016. We delivered first
quarter results that met or exceeded the high end of our outlook ranges
for net sales, operating margin, and EBITDA,” said Linda Massman,
president and chief executive officer. “Our consumer products business
produced an adjusted EBITDA margin of 13.3%, the highest in over three
years and pulp and paperboard continues to perform well. I am especially
pleased with approximately $8.0 million in savings from strategic
capital and operational efficiency initiatives we achieved in the
quarter.”
Under the $100 million stock repurchase program, authorized in December
2015, the company repurchased 709,366 shares of common stock at an
average price of $38.99 per share during the first quarter of 2016.
FIRST QUARTER 2016 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $245.0 million for the
first quarter of 2016, up 4.2% from first quarter 2015 net sales of
$235.2 million. This increase was due to a 7.8% growth in total tissue
volume, including 15.4% for non-retail tons, which includes parent rolls
and 5.5% for retail tissue products.
On a GAAP basis, the segment had operating income of $18.4 million,
compared to $12.4 million in the first quarter of 2015. Excluding
certain items identified in the attached reconciliations to GAAP,
adjusted operating income of $18.8 million for the first quarter of
2016, was up $5.2 million from $13.6 million for the same period in
2015. The higher results for the first quarter of 2016 were driven
primarily by increased shipment volume, reduced energy costs, lower
prices for external pulp along with higher usage of internally produced
pulp, improved absorption of fixed costs resulting from higher
production volumes and lower costs for packaging supplies.
-
Total tissue sales volumes of 99,385 tons in the first quarter of 2016
were up 7.8% and converted product cases shipped were flat at 13.0
million, compared to the first quarter of 2015, largely due to changes
in product mix, new business awarded and expanded business with
existing customers in 2015.
-
Average tissue net selling prices decreased 3.2% to $2,464 per ton in
the first quarter of 2016, compared to the first quarter of 2015, due
to a higher product mix of parent rolls.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $192.2 million for the
first quarter of 2016, down 3.4% compared to first quarter 2015 net
sales of $198.9 million. The decline was due to a 7.7% decrease in
average sales price per ton and a higher mix of commodity grade
paperboard, which more than offset a 5.1% increase in shipment volumes.
Adjusted operating income for the quarter increased 106% to $35.2
million compared to $17.1 million for the first quarter of 2015. This
was mainly due to the absence of $15.0 million of planned major
maintenance at the Lewiston, Idaho pulp and paperboard facility in the
first quarter of 2016, and lower input costs for wood fiber, natural
gas, fuel, energy and polyethylene.
-
Paperboard sales volumes increased to 201,340 tons in the first
quarter of 2016, compared to 191,635 tons in the first quarter of
2015, which was impacted by labor slowdowns at West Coast shipping
ports.
-
Paperboard average net selling prices decreased 7.7% to $952 per ton
compared to the first quarter of 2015 as a result of a price decrease
announced by RISI early in 2015, and a stronger U.S. dollar causing
increased European imports and a decrease in U.S. exports, which put
pricing pressure on the commodity paperboard grades.
Taxes
The company's GAAP tax rate for the first quarter of 2016 was a
provision of 38.8%. This compares to 22.8% in the first quarter of 2015,
which was impacted by the release of uncertain tax positions of
approximately $1 million relating to statute of limitation expirations
on certain federal tax credits. On an adjusted basis, the first quarter
2016 tax rate was 38.7%. The company expects its annual GAAP and
adjusted tax rates to be approximately 37% for 2016.
Note Regarding Use of Non-GAAP Financial Measures
In this press release, the company presents certain non-GAAP financial
information for the first quarters of 2016 and 2015, including adjusted
net earnings, adjusted net earnings per diluted share, EBITDA, Adjusted
EBITDA, Adjusted EBITDA margin, 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,
operating income and income tax provisions, 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 operational and financial performance
and expected tax rate for 2016. These forward-looking statements are
based on current expectations, estimates, assumptions and projections
that are subject to change, and actual results may differ materially
from the forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to,
competitive pricing pressures for the company’s products, including as a
result of increased capacity as additional manufacturing facilities are
operated by the company’s competitors; changes in the U.S. and
international economies and in general economic conditions in the
regions and industries in which the company operates; changes in
customer product preferences and competitors’ product offerings; the
loss of or changes in prices in regards to a significant customer;
cyclical industry conditions; changes in the cost and availability of
wood fiber and wood pulp; inability to successfully implement the
company’s operational efficiencies and expansion strategies; changes in
transportation costs and disruptions in transportation services;
customer acceptance, timing and quantity of purchases of the company’s
tissue products; changes in costs for and availability of packaging
supplies, chemicals, energy and maintenance and repairs; environmental
liabilities or expenditures; labor disruptions; manufacturing or
operating disruptions, including IT system and IT system implementation
failures, equipment malfunction and damage to the company’s
manufacturing facilities; changes in expenses and required contributions
associated with the company’s pension plans; reliance on a limited
number of third-party suppliers for raw materials; and other risks and
uncertainties described from time to time in the company's public
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2015. The
forward-looking statements are made as of the date of this press release
and the company does not undertake to update any forward-looking
statements based on new developments or changes in the company's
expectations.
|
|
|
Clearwater Paper Corporation
Consolidated Statements of
Operations
Unaudited (Dollars in thousands - except per-share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
Net sales
|
|
|
$
|
437,204
|
|
100
|
%
|
|
$
|
434,026
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
(368,647
|
)
|
84
|
%
|
|
|
(389,832
|
)
|
90
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
(30,795
|
)
|
7
|
%
|
|
|
(28,957
|
)
|
7
|
%
|
|
Total operating costs and expenses
|
|
|
|
(399,442
|
)
|
91
|
%
|
|
|
(418,789
|
)
|
96
|
%
|
|
Income from operations
|
|
|
|
37,762
|
|
9
|
%
|
|
|
15,237
|
|
4
|
%
|
|
Interest expense, net
|
|
|
|
(7,643
|
)
|
2
|
%
|
|
|
(7,782
|
)
|
2
|
%
|
|
Earnings before income taxes
|
|
|
|
30,119
|
|
7
|
%
|
|
|
7,455
|
|
2
|
%
|
|
Income tax provision
|
|
|
|
(11,673
|
)
|
3
|
%
|
|
|
(1,698
|
)
|
—
|
%
|
|
Net earnings
|
|
|
$
|
18,446
|
|
4
|
%
|
|
$
|
5,757
|
|
1
|
%
|
|
Net earnings per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.05
|
|
|
|
$
|
0.30
|
|
|
|
Diluted
|
|
|
|
1.05
|
|
|
|
|
0.30
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
17,532
|
|
|
|
|
19,335
|
|
|
|
Diluted
|
|
|
|
17,603
|
|
|
|
|
19,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
Condensed Consolidated Balance
Sheets
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
2,228
|
|
|
$
|
5,610
|
|
|
Restricted cash
|
|
|
|
|
|
2,270
|
|
|
|
2,270
|
|
|
Short-term investments
|
|
|
|
|
|
—
|
|
|
|
250
|
|
|
Receivables, net
|
|
|
|
|
|
134,875
|
|
|
|
139,052
|
|
|
Taxes receivable
|
|
|
|
|
|
679
|
|
|
|
14,851
|
|
|
Inventories
|
|
|
|
|
|
243,419
|
|
|
|
255,573
|
|
|
Other current assets
|
|
|
|
|
|
9,376
|
|
|
|
9,331
|
|
|
Total current assets
|
|
|
|
|
|
392,847
|
|
|
|
426,937
|
|
|
Property, plant and equipment, net
|
|
|
|
|
|
873,112
|
|
|
|
866,538
|
|
|
Goodwill
|
|
|
|
|
|
209,087
|
|
|
|
209,087
|
|
|
Intangible assets, net
|
|
|
|
|
|
18,753
|
|
|
|
19,990
|
|
|
Pension assets
|
|
|
|
|
|
1,086
|
|
|
|
596
|
|
|
Other assets, net
|
|
|
|
|
|
4,329
|
|
|
|
4,221
|
|
|
TOTAL ASSETS
|
|
|
|
|
$
|
1,499,214
|
|
|
$
|
1,527,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Revolving credit facility borrowings
|
|
|
|
|
$
|
6,005
|
|
|
$
|
—
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
192,820
|
|
|
|
220,368
|
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
|
7,559
|
|
|
|
7,559
|
|
|
Total current liabilities
|
|
|
|
|
|
206,384
|
|
|
|
227,927
|
|
|
Long-term debt
|
|
|
|
|
|
569,179
|
|
|
|
568,987
|
|
|
Liability for pensions and other postretirement employee benefits
|
|
|
|
|
87,609
|
|
|
|
89,057
|
|
|
Other long-term obligations
|
|
|
|
|
|
43,779
|
|
|
|
46,738
|
|
|
Accrued taxes
|
|
|
|
|
|
1,525
|
|
|
|
1,676
|
|
|
Deferred tax liabilities
|
|
|
|
|
|
123,032
|
|
|
|
118,118
|
|
|
Stockholders' equity, excluding accumulated other comprehensive
loss, net of tax
|
|
|
522,599
|
|
|
|
530,414
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
|
|
|
(54,893
|
)
|
|
|
(55,548
|
)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
$
|
1,499,214
|
|
|
$
|
1,527,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
Consolidated Statements of Cash
Flows
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
18,446
|
|
|
$
|
5,757
|
|
|
Adjustments to reconcile net earnings to net cash flows from
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
21,150
|
|
|
|
21,008
|
|
|
Equity-based compensation expense
|
|
|
|
2,172
|
|
|
|
1,169
|
|
|
Deferred tax provision (benefit)
|
|
|
|
4,365
|
|
|
|
(1,330
|
)
|
|
Employee benefit plans
|
|
|
|
(1,389
|
)
|
|
|
809
|
|
|
Deferred issuance costs on long-term debt
|
|
|
|
213
|
|
|
|
178
|
|
|
Disposal of plant and equipment, net
|
|
|
|
—
|
|
|
|
(30
|
)
|
|
Non-cash adjustments to unrecognized taxes
|
|
|
|
(151
|
)
|
|
|
(990
|
)
|
|
Changes in working capital, net
|
|
|
|
(9,548
|
)
|
|
|
3,457
|
|
|
Changes in taxes receivable, net
|
|
|
|
14,172
|
|
|
|
1,255
|
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
—
|
|
|
|
(343
|
)
|
|
Funding of qualified pension plans
|
|
|
|
—
|
|
|
|
(1,561
|
)
|
|
Other, net
|
|
|
|
(408
|
)
|
|
|
(1,327
|
)
|
|
Net cash flows from operating activities
|
|
|
|
49,022
|
|
|
|
28,052
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
Changes in short-term investments, net
|
|
|
|
250
|
|
|
|
39,000
|
|
|
Additions to plant and equipment
|
|
|
|
(30,955
|
)
|
|
|
(25,240
|
)
|
|
Proceeds from sale of assets
|
|
|
|
—
|
|
|
|
506
|
|
|
Net cash flows from investing activities
|
|
|
|
(30,705
|
)
|
|
|
14,266
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
Purchase of treasury stock
|
|
|
|
(27,661
|
)
|
|
|
(37,148
|
)
|
|
Borrowings on revolving credit facility
|
|
|
|
123,287
|
|
|
|
—
|
|
|
Repayments of revolving credit facility borrowings
|
|
|
|
(117,282
|
)
|
|
|
—
|
|
|
Payment of tax withholdings on equity-based payment arrangements
|
|
|
(43
|
)
|
|
|
(3,048
|
)
|
|
Excess tax benefits from equity-based payment arrangements
|
|
|
—
|
|
|
|
343
|
|
|
Net cash flows from financing activities
|
|
|
|
(21,699
|
)
|
|
|
(39,853
|
)
|
|
(Decrease) increase in cash and cash equivalents
|
|
|
|
(3,382
|
)
|
|
|
2,465
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
5,610
|
|
|
|
27,331
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
2,228
|
|
|
$
|
29,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
Segment Information
Unaudited
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
Segment net sales:
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
|
|
$
|
245,018
|
|
56
|
%
|
|
$
|
235,176
|
|
54
|
%
|
|
Pulp and Paperboard
|
|
|
|
|
|
192,186
|
|
44
|
%
|
|
|
198,850
|
|
46
|
%
|
|
Total segment net sales
|
|
|
|
|
$
|
437,204
|
|
100
|
%
|
|
$
|
434,026
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
|
|
|
$
|
18,390
|
|
49
|
%
|
|
$
|
12,395
|
|
81
|
%
|
|
Pulp and Paperboard
|
|
|
|
|
|
35,163
|
|
93
|
%
|
|
|
16,194
|
|
106
|
%
|
|
|
|
|
|
|
|
|
|
53,553
|
|
142
|
%
|
|
|
28,589
|
|
188
|
%
|
|
Corporate
|
|
|
|
|
|
(15,791
|
)
|
42
|
%
|
|
|
(13,352
|
)
|
88
|
%
|
|
Income from operations
|
|
|
|
|
$
|
37,762
|
|
100
|
%
|
|
$
|
15,237
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
Reconciliation of Non-GAAP
Financial Measures
EBITDA and Adjusted EBITDA
Unaudited
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
Net earnings
|
|
$
|
18,446
|
|
$
|
5,757
|
|
|
|
Add back:
|
|
|
|
|
|
|
Interest expense, net
|
|
|
7,643
|
|
|
7,782
|
|
|
|
Income tax provision
|
|
|
11,673
|
|
|
1,698
|
|
|
|
Depreciation and amortization expense
|
|
|
21,150
|
|
|
21,008
|
|
|
|
EBITDA1
|
|
$
|
58,912
|
|
$
|
36,245
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation expense (benefit)
|
|
$
|
726
|
|
$
|
(470
|
)
|
|
|
Costs associated with Long Island facility closure
|
|
|
432
|
|
|
554
|
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
1,730
|
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
—
|
|
|
(131
|
)
|
|
|
Adjusted EBITDA2
|
|
$
|
60,070
|
|
$
|
37,928
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
EBITDA is a non-GAAP measure that management uses to evaluate the
cash generating capacity of the company. The most directly
comparable GAAP measure is net earnings. EBITDA is net earnings
adjusted for net interest expense, income taxes, and depreciation
and amortization. It should not be considered as an alternative
to net earnings computed under GAAP.
|
|
2
|
Adjusted EBITDA excludes the impact of the items listed that we do
not believe are indicative of our core operating performance.
|
|
|
|
|
|
Clearwater Paper Corporation
Reconciliation of Non-GAAP
Financial Measures
Adjusted Net Earnings and Adjusted Net
Earnings Per Diluted Common Share
Unaudited (Dollars in
thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings
|
|
$
|
18,446
|
|
$
|
5,757
|
|
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
Directors' equity-based compensation expense (benefit)
|
|
|
465
|
|
|
(325
|
)
|
|
|
Costs associated with Long Island facility closure
|
|
|
277
|
|
|
383
|
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
1,197
|
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
—
|
|
|
(91
|
)
|
|
|
Adjusted net earnings2
|
|
$
|
19,188
|
|
$
|
6,921
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net earnings per diluted share
|
|
$
|
1.05
|
|
$
|
0.30
|
|
|
|
Special items, after-tax1:
|
|
|
|
|
|
|
Directors' equity-based compensation expense (benefit)
|
|
|
0.03
|
|
|
(0.02
|
)
|
|
|
Costs associated with Long Island facility closure
|
|
|
0.02
|
|
|
0.02
|
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
0.06
|
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
—
|
|
|
—
|
|
|
|
Adjusted net earnings per diluted share2
|
|
$
|
1.09
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Tax effect was calculated using the estimated annual effective tax
rate for the period presented.
|
|
2
|
Adjusted net earnings and Adjusted net earnings per
diluted share exclude the impact of the items listed that we
do not believe are indicative of our core operating performance.
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
Reconciliation of Non-GAAP
Financial Measures
Segment EBITDA, Adjusted EBITDA, EBITDA
Margin and Adjusted EBITDA Margin
Unaudited (Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Consumer Products:
|
|
|
|
|
|
|
Net sales
|
|
$
|
245,018
|
|
|
$
|
235,176
|
|
|
|
GAAP operating income
|
|
|
18,390
|
|
|
|
12,395
|
|
|
|
Depreciation and amortization expense
|
|
|
13,759
|
|
|
|
12,977
|
|
|
|
Consumer Products EBITDA1
|
|
$
|
32,149
|
|
|
$
|
25,372
|
|
|
|
Costs associated with Long Island facility closure
|
|
|
432
|
|
|
|
554
|
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
814
|
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
—
|
|
|
|
(131
|
)
|
|
|
Consumer Products Adjusted EBITDA2
|
|
$
|
32,581
|
|
|
$
|
26,609
|
|
|
|
Consumer Products EBITDA margin3
|
|
|
13.1
|
%
|
|
|
10.8
|
%
|
|
|
Consumer Products Adjusted EBITDA margin4
|
|
|
13.3
|
%
|
|
|
11.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paperboard:
|
|
|
|
|
|
|
Net sales
|
|
$
|
192,186
|
|
|
$
|
198,850
|
|
|
|
GAAP operating income
|
|
|
35,163
|
|
|
|
16,194
|
|
|
|
Depreciation and amortization expense
|
|
|
6,367
|
|
|
|
7,311
|
|
|
|
Pulp and Paperboard EBITDA1
|
|
$
|
41,530
|
|
|
$
|
23,505
|
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
916
|
|
|
|
Pulp and Paperboard Adjusted EBITDA2
|
|
$
|
41,530
|
|
|
$
|
24,421
|
|
|
|
Pulp and Paperboard EBITDA margin3
|
|
|
21.6
|
%
|
|
|
11.8
|
%
|
|
|
Pulp and Paperboard Adjusted EBITDA margin4
|
|
|
21.6
|
%
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Segment EBITDA is segment operating income adjusted for
depreciation and amortization.
|
|
2
|
Segment Adjusted EBITDA excludes the impact of the items
listed that we do not believe are indicative of our core operating
performance.
|
|
3
|
Segment EBITDA margin is defined as Segment EBITDA divided
by Segment Net sales.
|
|
4
|
Segment Adjusted EBITDA margin is defined as Segment
Adjusted EBITDA divided by Segment Net sales.
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
Reconciliation of Non-GAAP
Financial Measures
Segment Adjusted Operating Income and
Operating Margin
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Consumer Products:
|
|
|
|
|
|
|
Net sales
|
|
$
|
245,018
|
|
|
$
|
235,176
|
|
|
|
GAAP operating income
|
|
|
18,390
|
|
|
|
12,395
|
|
|
|
Costs associated with Long Island facility closure
|
|
|
432
|
|
|
|
554
|
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
814
|
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
—
|
|
|
|
(131
|
)
|
|
|
Consumer Products Adjusted operating income1
|
|
$
|
18,822
|
|
|
$
|
13,632
|
|
|
|
Consumer Products operating margin
|
|
|
7.5
|
%
|
|
|
5.3
|
%
|
|
|
Consumer Products Adjusted operating margin2
|
|
|
7.7
|
%
|
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paperboard:
|
|
|
|
|
|
|
Net sales
|
|
$
|
192,186
|
|
|
$
|
198,850
|
|
|
|
GAAP operating income
|
|
|
35,163
|
|
|
|
16,194
|
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
916
|
|
|
|
Pulp and Paperboard Adjusted operating income1
|
|
$
|
35,163
|
|
|
$
|
17,110
|
|
|
|
Pulp and Paperboard operating margin
|
|
|
18.3
|
%
|
|
|
8.1
|
%
|
|
|
Pulp and Paperboard Adjusted operating margin2
|
|
|
18.3
|
%
|
|
|
8.6
|
%
|
|
|
|
|
1
|
Segment Adjusted operating income excludes the impact of
the items listed that we do not believe are indicative of our core
operating performance.
|
|
2
|
Segment Adjusted operating margin is defined as Segment
Adjusted operating income divided by Segment Net sales.
|
|
|
|
|
|
Clearwater Paper Corporation
Reconciliation of Non-GAAP
Financial Measures
Adjusted Income Tax Provision
Unaudited
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax provision
|
|
$
|
(11,673
|
)
|
|
$
|
(1,698
|
)
|
|
|
Special items, after-tax:
|
|
|
|
|
|
|
Directors' equity-based compensation (expense) benefit
|
|
|
(261
|
)
|
|
|
145
|
|
|
|
Costs associated with Long Island facility closure
|
|
|
(155
|
)
|
|
|
(171
|
)
|
|
|
Costs associated with labor agreement
|
|
|
—
|
|
|
|
(533
|
)
|
|
|
Gain associated with the sale of the specialty mills
|
|
|
—
|
|
|
|
40
|
|
|
|
Adjusted income tax provision1
|
|
$
|
(12,089
|
)
|
|
$
|
(2,217
|
)
|
|
|
Adjusted income tax provision rate1,2
|
|
|
38.7
|
%
|
|
|
24.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Adjusted income tax provision and Adjusted income tax
provision rate exclude the impact of the items listed that we
do not believe are indicative of our core operating performance.
|
|
2
|
The Adjusted income tax provision rate is defined as
[Adjusted income tax provision / (Adjusted income tax provision +
Adjusted net earnings)].
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005558/en/
Copyright Business Wire 2016