Clearwater Paper Reports First Quarter 2021 Results
Clearwater Paper Corporation (NYSE:CLW), a premier supplier of quality tissue and bleached paperboard products, today reported financial results for the first quarter of 2021.
FIRST QUARTER HIGHLIGHTS
-
Net income of
$12 million , or$0.71 per diluted share -
Adjusted EBITDA of
$54 million -
Reduced net debt by
$21 million - Strong demand for paperboard products
“Both of our businesses performed well in the first quarter, despite some headwinds. For paperboard, we experienced strong demand and robust backlogs. The tissue business saw a decrease in demand as consumers de-stocked their pantries and retailers reduced orders to manage their inventories,” said Arsen Kitch, president and chief executive officer. “While the decrease in tissue demand is a short-term phenomenon, we remain focused on generating cash, reducing debt, and driving long-term performance improvements.”
OVERALL RESULTS
For the first quarter of 2021, Clearwater Paper reported net sales of
Pulp and Paperboard Products Segment
Net sales in the Paperboard Products segment were
Paperboard Sales Volumes and Prices:
-
Paperboard sales volumes were 206,712 tons in the first quarter of 2021, a decrease of
1% compared to 207,916 tons in the first quarter of 2020. -
Paperboard average net selling price increased
1% to$1,028 per ton for the first quarter of 2021, compared to$1,013 per ton in the first quarter of 2020.
Consumer Products Segment
Net sales in the Consumer Products segment were
Retail Tissue Sales Volumes and Prices:
-
Retail tissue volumes sold were 70,762 tons in the first quarter of 2021, a decrease of
22% compared to 90,791 tons in the first quarter of 2020. Retail volumes represented88% of total volumes sold in the first quarter of 2021, a decrease from91% in the first quarter of 2020. -
Retail tissue selling prices increased
1% to$2,758 per ton in the first quarter of 2021, compared to$2,732 per ton in the first quarter of 2020.
COMPANY OUTLOOK
“We are continuing to position our businesses for long-term success, while taking actions that will help offset cost inflation and the short-term market driven adjustment in tissue demand. Our paperboard business continues to perform well with favorable market dynamics. We are confident that our focus on business improvements will deliver sustained performance in the long run,” Kitch concluded.
WEBCAST INFORMATION
Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Daylight 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 https://ir.clearwaterpaper.com/investors/events-and-presentations/default.aspx beginning at 5:00 p.m. Pacific Time today.
ABOUT CLEARWATER PAPER
Clearwater Paper is a premier supplier of private-branded 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 relationships through quality and service.
USE OF NON-GAAP MEASURES
In this press release, the company presents certain non-GAAP financial information for the first quarter of 2021 and 2020, including adjusted income (loss) and Adjusted EBITDA. Because these amounts are not in accordance with GAAP, reconciliations to net income (loss) 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. In addition, the company uses Adjusted EBITDA: (i) as factors in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to Adjusted EBITDA to measure the company's compliance with certain covenants.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding cash generation, debt reduction, performance improvements, and market conditions, product demand and dynamics. 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 impact of the COVID-19 pandemic on our business and operations, our suppliers' operations and our customer demand; competitive pricing pressures for our products, including as a result of increased capacity, as additional manufacturing facilities are operated by our competitors and the impact of foreign currency fluctuations on the pricing of products globally; the loss of, changes in prices in regard to, or reduction in, orders from a significant customer; changes in the cost and availability of wood fiber and wood pulp; changes in transportation costs and disruptions in transportation services; changes in customer product preferences and competitors' product offerings; larger competitors having operational, financial and other advantages; customer acceptance and timing and quantity of purchases of our tissue products, including the existence of sufficient demand for and the quality of tissue produced by the company’s expanded Shelby, North Carolina operations; consolidation and vertical integration of converting operations in the paperboard industry; our ability to successfully implement our operational efficiencies and cost savings strategies, along with related capital projects; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which the company operates; manufacturing or operating disruptions, including IT system and IT system implementation failures, equipment malfunctions and damage to the company’s manufacturing facilities; cyber-security risks; changes in costs for and availability of packaging supplies, chemicals, energy, and maintenance and repairs; labor disruptions; cyclical industry conditions; changes in expenses, required contributions, and potential withdrawal costs associated with our pension plans; environmental liabilities or expenditures; reliance on a limited number of third-party suppliers for raw materials; our ability to attract, motivate, train and retain qualified and key personnel; our substantial indebtedness and ability to service our debt obligations and restrictions on our business from debt covenants and terms; negative changes in our credit agency ratings; changes in laws, regulations or industry standards affecting the company’s business; and other risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020 and subsequently filed periodic reports on Form 10-Q. 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 after the date of this press release.
Clearwater Paper Corporation |
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Consolidated Statements of Operations |
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(Unaudited) |
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|
|
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Three Months Ended March 31, |
||||||
(In millions, except per-share data) |
2021 |
|
2020 |
||||
Net sales |
$ |
425.9 |
|
|
$ |
477.9 |
|
Costs and expenses: |
|
|
|
||||
Cost of sales |
370.6 |
|
|
423.0 |
|
||
Selling, general and administrative expenses |
27.8 |
|
|
27.5 |
|
||
Other operating charges, net |
0.4 |
|
|
8.6 |
|
||
Total operating costs and expenses |
398.8 |
|
|
459.1 |
|
||
Income from operations |
27.1 |
|
|
18.8 |
|
||
Interest expense, net |
(9.3) |
|
|
(12.8) |
|
||
Other non-operating expense |
(2.5) |
|
|
(1.9) |
|
||
Total non-operating expense |
(11.8) |
|
|
(14.7) |
|
||
Income before income taxes |
15.3 |
|
|
4.1 |
|
||
Income tax provision (benefit) |
3.2 |
|
|
(6.2) |
|
||
Net income |
$ |
12.1 |
|
|
$ |
10.3 |
|
|
|
|
|
||||
Net income per common share: |
|
|
|
||||
Basic |
$ |
0.73 |
|
|
$ |
0.62 |
|
Diluted |
0.71 |
|
|
0.62 |
Clearwater Paper Corporation
NYSE:CLWCLW RankingsCLW Latest NewsCLW Stock Data
754.20M
16.09M
2.47%
93.84%
3.19%
Paperboard Mills
Manufacturing
United States of America
SPOKANE
About CLWclearwater paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. we are a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. in addition, we produce bleached paperboard used by quality-conscious printers and packaging converters. our employees build shareholder value by developing strong customer partnerships through quality and service.
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