Clearwater Paper Reports Second Quarter 2021 Results

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SPOKANE, Wash.-- Clearwater Paper Corporation (NYSE:CLW), a premier supplier of quality tissue and bleached paperboard products, today reported financial results for the second quarter of 2021.

SECOND QUARTER HIGHLIGHTS

  • Net loss of $52 million, or $3.10 per diluted share
  • Adjusted EBITDA of $15 million
  • Successfully completed planned major maintenance at the Lewiston, Idaho facility ($22 million Adjusted EBITDA impact)
  • Announced closure of Neenah, Wisconsin tissue facility
  • Continued to reduce net debt

“We performed better than our initial expectations for the quarter. In paperboard, we continue to experience strong demand and robust backlogs. Tissue demand bottomed out in April as consumers de-stocked pantries and retailers adjusted inventories. Our tissue orders have started to build back to more normal levels since then,” said Arsen Kitch, president and chief executive officer. “Our team executed well in the quarter, performed our largest maintenance outage at Lewiston, serviced strong SBS demand, closed our high-cost Neenah tissue facility and took tissue production downtime to reduce inventory levels and mitigate pulp price inflation.”

OVERALL RESULTS

For the second quarter of 2021, Clearwater Paper reported net sales of $406 million, a 15% decrease compared to net sales of $481 million for the second quarter of 2020. Net loss for the second quarter of 2021 was $52 million, or $3.10 per diluted share, compared to net income for the second quarter of 2020 of $23 million, or $1.36 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net loss in the second quarter of 2021 of $18 million, or $1.07 per diluted share, compared to second quarter 2020 adjusted net income of $28 million, or $1.67 per diluted share. Adjusted EBITDA for the quarter was $15 million, compared to the second quarter of 2020 Adjusted EBITDA of $79 million. Additionally, Clearwater Paper incurred impairment and other closure costs associated with the recently announced closure of its Neenah, Wisconsin facility of $41.7 million.

For the first six months of 2021, Clearwater Paper reported net sales of $832 million, a 13% decrease compared to net sales of $958 million for the first six months of 2020. Net loss for the first six months of 2021 was $40 million, or $2.37 per diluted share, compared to net income for the first six months of 2020 of $33 million, or $1.99 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net loss in the first six months of 2021 of $6 million, or $0.37 per diluted share, compared to first six months of 2020 adjusted net income of $37 million, or $2.24 per diluted share. Adjusted EBITDA for the first six months was $69 million, compared to the first six months of 2020 Adjusted EBITDA of $134 million.

Pulp and Paperboard Products Segment

Net sales in the Pulp and Paperboard Products segment were $227 million for the second quarter of 2021, up 5% compared to second quarter 2020 net sales of $216 million. Segment operating income for the second quarter of 2021 was $13 million compared to $32 million for the second quarter of 2020. Adjusted EBITDA for the segment was $22 million in the second quarter of 2021, compared to $41 million in the second quarter of 2020. The decrease in operating income and Adjusted EBITDA was driven by higher maintenance costs due to the major planned maintenance outage at the Lewiston, Idaho location and higher input costs due to inflation which were partially offset by higher sales prices.

Net sales in the Pulp and Paperboard Products segment were $447 million for the first six months of 2021, up 2% compared to first six months of 2020 net sales of $440 million. Segment operating income for the first six months of 2021 was $38 million compared to $58 million for the first six months of 2020. Adjusted EBITDA for the segment was $56 million in the first six months of 2021, compared to $77 million in the first six months of 2020. The decrease in operating income and Adjusted EBITDA was driven by higher maintenance outage costs due to the at the Lewiston location which were partially offset with higher sales prices.

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Source: Clearwater Paper

 

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