Clearwater Paper Reports Strong Third Quarter 2022 Results

"We had an excellent third quarter, which exceeded our expectations with strong volumes, pricing and operational performance." – Arsen Kitch, President and CEO, Clearwater Paper.

Oct. 31, 2022 - Clearwater Paper Corporation today reported financial results for the third quarter and nine months ended September 30, 2022.

THIRD QUARTER HIGHLIGHTS

• Delivered strong performance in the quarter, with price realization helping offset inflation
• Net sales of $539 million, up 20% compared to the third quarter of last year
• Net income of $21 million, or $1.21 per diluted share
• Adjusted EBITDA of $77 million
• Continued to reduce net debt, with nearly $106 million reduced year to date

"We had an excellent third quarter, which exceeded our expectations with strong volumes, pricing and operational performance," said Arsen Kitch, president and chief executive officer. "While paperboard demand and pricing remained strong, our tissue performance continued to improve with higher pricing helping to offset the impact of inflation."

OVERALL RESULTS

For the third quarter of 2022, Clearwater Paper reported net sales of $539 million, a 20% increase compared to net sales of $450 million for the third quarter of 2021. Net income for the third quarter of 2022 was $21 million, or $1.21 per diluted share, compared to net income for the third quarter of 2021 of $2 million, or $0.11 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the third quarter of 2022 of $31 million, or $1.83 per diluted share, compared to third quarter 2021 adjusted net income of $9 million, or $0.55 per diluted share.

Adjusted EBITDA for the quarter was $77 million, compared to the third quarter of 2021 Adjusted EBITDA of $50 million.

Pulp and Paperboard Products Segment

Net sales in the Pulp and Paperboard Products segment were $301 million for the third quarter of 2022, up 27% compared to third quarter 2021 net sales of $237 million. Segment operating income for the third quarter of 2022 was $64 million, compared to $35 million for the third quarter of 2021. Adjusted EBITDA for the segment was $73 million in the third quarter of 2022, compared to $43 million in the third 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.

Paperboard Sales Volumes and Prices

Paperboard sales volumes were 208,298 tons in the third quarter of 2022 compared to 203,439 tons in the third quarter of 2021.

Paperboard average net selling price increased 28% to $1,405 per ton for the third quarter of 2022, compared to $1,102 per ton in the third quarter of 2021.

Consumer Products Segment

Net sales in the Consumer Products segment were $241 million for the third quarter of 2022, up 13% compared to the third quarter 2021 net sales of $214 million. Segment operating income for the third quarter of 2022 was $5 million compared to operating income of $4 million in the third quarter of 2021. Adjusted EBITDA for the segment was $21 million in the third quarter of 2022, compared to $20 million in the third 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, freight and energy.

Retail Tissue Sales Volumes and Prices

Retail tissue volumes sold were 76,938 tons in the third quarter of 2022 compared to 76,237 tons in the third quarter of 2021.

Retail tissue selling prices increased 13% to $3,082 per ton in the third quarter of 2022, compared to $2,732 per ton in the third quarter of 2021.

COMPANY OUTLOOK

"During previous periods of economic uncertainty demand for our products was relatively resilient. In today's economic environment, our continued focus is on operational performance while offsetting the impact of inflation. We are continuing to improve our financial flexibility to take advantage of opportunities to create shareholder value," concluded Kitch.

Clearwater Paper's complete third quarter report can be found on the company's website.

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