SPOKANE, Wash. - Clearwater Paper Corporation (NYSE:CLW),a premier supplier of quality tissue and bleached paperboard products, today reported financial results for the third quarter and nine months ended September 30, 2023.
THIRD QUARTER HIGHLIGHTS
- Outstanding performance driven by strong operational results and continued market strength in tissue
- Net sales of $520 million, down 3% from the third quarter of last year
- Net income of $37 million, or $2.17 per diluted share
- Adjusted net income of $37 million, $6 million higher than the third quarter of last year
- Adjusted EBITDA of $81 million, $3 million higher than third quarter of last year
- Adjusted EBITDA margin at 15%, up from 14% during the third quarter of last year
- Redeeming 2025 notes in Q4 2023 with a combination of a new term loan, cash on hand, and drawing on existing ABL facility
- Repurchased $5 million of outstanding shares, with $10 million remaining under program
- Reduced net debt by $69 million from second quarter of this year, $416 million since 2020
“We had an outstanding third quarter which came in at the higher end of our expectations, driven by good operational performance in both businesses and continued strength in tissue. Demand remained strong in tissue, while we balanced paperboard supply and demand to manage inventory levels,” said Arsen Kitch, president and chief executive officer. “We continued to focus on our financial flexibility by reducing net debt by $69 million in the quarter, for a total reduction of $416 million since 2020.”
OVERALL RESULTS
For the third quarter of 2023, Clearwater Paper reported net sales of $520 million compared to net sales of $539 million for the third quarter of 2022. Net income for the third quarter of 2023 was $37 million, or $2.17 per diluted share, compared to net income for the third quarter of 2022 of $21 million, or $1.21 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the third quarter of 2023 of $37 million, or $2.19 per diluted share, compared to third quarter 2022 adjusted net income of $31 million, or $1.83 per diluted share. Adjusted EBITDA for the third quarter of 2023 was $81 million, compared to the third quarter of 2022 Adjusted EBITDA of $77 million.
For the first nine months of 2023, Clearwater Paper reported net sales of $1.6 billion, a slight increase compared to the first nine months of 2022. Net income for the first nine months of 2023 was $90 million, or $5.29 per diluted share, compared to net income for the first nine months of 2022 of $52 million, or $3.04 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the first nine months of 2023 of $92 million, or $5.37 per diluted share, compared to the first nine months of 2022 adjusted net income of $68 million, or $3.96 per diluted share. Adjusted EBITDA for the first nine months of 2023 was $218 million, compared to the first nine months of 2022 Adjusted EBITDA of $199 million.
Source: Clearwater Paper
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