"Our paperboard business continued to experience strong demand and pricing, while our tissue volumes increased due to stronger consumer demand for private branded products." – Arsen Kitch, President and CEO, Clearwater Paper.
Aug. 2, 2022 - Clearwater Paper Corporation today reported financial results for the second quarter and six months ended June 30, 2022.
"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."
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.
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.
Net sales in the Consumer Products segment were $232 million for the second quarter of 2022, up 29% compared to the second quarter 2021 net sales of $181 million. Segment operating income for the second quarter of 2022 was $3 million compared to operating loss of $10 million in the second quarter of 2021. Adjusted EBITDA for the segment was $19 million in the second quarter of 2022, compared to $7 million in the second quarter of 2021. The increase in operating income and Adjusted EBITDA was driven by higher sales prices partly offset by higher input costs, specifically related to pulp, transportation and energy.
Net sales in the Consumer Products segment were $455 million for the first six months of 2022, up 17% compared to net sales of $389 million in the first six months of 2021. Segment operating income for the first six months of 2022 was $4 million compared to operating income of $8 million in the first six months of 2021. Adjusted EBITDA for the segment was $35 million in the first six months of 2022, compared to $41 million in the first six months of 2021. The decrease in operating income and Adjusted EBITDA was driven by higher input costs, specifically related to pulp and transportation partly offset by higher sales prices.
Retail tissue volumes sold were 76,604 tons in the second quarter of 2022, an increase of 25% compared to 61,497 tons in the second quarter of 2021. Retail tissue volumes sold were 152,030 tons in the first six months of 2022, an increase of 25% compared to 132,259 tons in the first six months of 2021.
Retail tissue selling prices increased 8% to $2,984 per ton in the second quarter of 2022, compared to $2,755 per ton in the second quarter of 2021. Retail tissue selling prices increased 8% to 2,928 per ton in the first six months of 2022, compared to $2,757 per ton in the first six months of 2021.
"Inflation remains a key theme in both of our businesses and is expected to persist into the third quarter. We are continuing with our efforts to offset these cost pressures with operational improvements and pricing. In addition, our focus on cashflow generation has enabled us to achieve our leverage target and we expect to discuss our capital allocation priorities later in the year," concluded Kitch.
Clearwater Paper (NYSE:CLW) is a premier supplier of private brand tissue to major retailers, including grocery, club, 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. To learn more, visit: www.clearwaterpaper.com.
SOURCE: Clearwater Paper Corporation
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