Clearwater Paper Reports Second Quarter 2022 Results

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Clearwater Paper Corporation (NYSE:CLW), a premier supplier of quality tissue and bleached paperboard products, today reported financial results for the second quarter and six months ended June 30, 2022.

SECOND QUARTER HIGHLIGHTS

  • Delivered strong performance due to continued strength in paperboard and improvements in tissue
  • Higher pricing in both businesses helping offset inflation
  • Net sales of $526 million, up 30% compared to the second quarter of last year
  • Net income of $15 million, or $0.86 per diluted share
  • Adjusted EBITDA of $63 million
  • Reduced net debt by $68 million in the quarter and nearly $100 million year to date, achieved leverage target
  • Repurchased nearly $4 million of shares, with $26 million remaining under program

"We continued our trend of strong performance in the second quarter due to solid operational execution and improved pricing in both businesses,” said Arsen Kitch, president and chief executive officer. “Our paperboard business continued to experience strong demand and pricing, while our tissue volumes increased due to stronger consumer demand for private branded products.”

OVERALL RESULTS

For the second quarter of 2022, Clearwater Paper reported net sales of $526 million, a 30% increase compared to net sales of $406 million for the second quarter of 2021. Net income for the second quarter of 2022 was $15 million, or $0.86 per diluted share, compared to net loss for the second quarter of 2021 of $52 million, or $3.10 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the second quarter of 2022 of $19 million, or $1.11 per diluted share, compared to second quarter 2021 adjusted net loss of $18 million, or $1.07 per diluted share. Adjusted EBITDA for the quarter was $63 million, compared to the second quarter of 2021 Adjusted EBITDA of $15 million.

For the first six months of 2022, Clearwater Paper reported net sales of $1 billion, a 22% increase compared to net sales of $832 million for the first six months of 2021. Net income for the first six months of 2022 was $31 million, or $1.83 per diluted share, compared to net loss for the first six months of 2021 of $40 million, or $2.37 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the first six months of 2022 of $36 million, or $2.13 per diluted share, compared to first six months of 2021 adjusted net loss of $6 million, or $0.37 per diluted share. Adjusted EBITDA for the first six months was $122 million, compared to the first six months of 2021 Adjusted EBITDA of $69 million.

Impacting the second quarter and first half of 2021, Clearwater Paper incurred impairment and other closure costs associated with the closure of its Neenah, Wisconsin facility of $41.7 million and completed planned major maintenance at its Lewiston, Idaho paperboard facility.

Pulp and Paperboard Products Segment

Net sales in the Pulp and Paperboard Products segment were $296 million for the second quarter of 2022, up 30% compared to second quarter 2021 net sales of $227 million. Segment operating income for the second quarter of 2022 was $52 million, compared to $13 million for the second quarter of 2021. Adjusted EBITDA for the segment was $61 million in the second quarter of 2022, compared to $22 million in the second quarter of 2021. The increase in operating income and Adjusted EBITDA was driven by higher sales prices and the absence of planned major maintenance, partly offset by higher input costs specifically related to chemicals, freight and energy.

Net sales in the Pulp and Paperboard Products segment were $562 million for the first six months of 2022, up 26% compared to net sales of $447 million in the first six months of 2021. Segment operating income for the first six months of 2022 was $102 million, compared to $38 million for the first six months of 2021. Adjusted EBITDA for the segment was $121 million in the first six months of 2022, compared to $56 million in the first six months of 2021. The increase in operating income and Adjusted EBITDA was driven by higher sales prices and the absence of planned major maintenance, partly offset by higher input costs, specifically related to chemicals, freight and energy.

Paperboard Sales Volumes and Prices:

• Paperboard sales volumes were 215,903 tons in the second quarter of 2022, an increase of 8% compared to 200,551 tons in the second quarter of 2021. Paperboard sales volumes were 417,259 tons in the first six months of 2022, an increase of 2% compared to 407,263 tons in the first six months of 2021.

• Paperboard average net selling price increased 26% to $1,332 per ton for the second quarter of 2022, compared to $1,058 per ton in the second quarter of 2021. Paperboard average net selling price increased 25% to $1,299 per ton for the first six months of 2022, compared to $1,043 per ton in the first six months of 2021.

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Source: Clearwater Paper

 

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