North American Tissue News

Clearwater Paper Reports First Quarter 2021 Results

“We are confident that our focus on business improvements will deliver sustained performance in the long run” – Arsen Kitch

Clearwater Paper Corporation, a premier supplier of quality tissue and bleached paperboard products, [on May 5th] reported financial results for the first quarter of 2021.

“Both of our businesses performed well in the first quarter, despite some headwinds. For paperboard, we experienced strong demand and robust backlogs. The tissue business saw a decrease in demand as consumers de-stocked their pantries and retailers reduced orders to manage their inventories,” said Arsen Kitch, president and chief executive officer. “While the decrease in tissue demand is a short-term phenomenon, we remain focused on generating cash, reducing debt, and driving long-term performance improvements.”

OVERALL RESULTS

For the first quarter of 2021, Clearwater Paper reported net sales of $426 million, an 11% decrease compared to net sales of $478 million for the first quarter of 2020. Net income for the first quarter of 2021 was $12 million, or $0.71 per diluted share, compared to net income for the first quarter of 2020 of $10 million, or $0.62 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the first quarter of 2021 of $12 million, or $0.69 per diluted share, compared to first quarter 2020 adjusted net income of $10 million, or $0.57 per diluted share. Adjusted EBITDA for the quarter was $54 million, compared to the first quarter of 2020 Adjusted EBITDA of $55 million.

Pulp and Paperboard Products Segment

Net sales in the Paperboard Products segment were $220 million for the first quarter of 2021, down 2% compared to first quarter 2020 net sales of $223 million. Segment operating income for the first quarter of 2021 was $25 million compared to $26 million for the first quarter of 2020. Adjusted EBITDA for the segment was $34 million in the first quarter of 2021, compared to $35 million in the first quarter of 2020. The decrease in operating income and Adjusted EBITDA was driven by lower production, higher natural gas and other input costs related to the weather event at our Cypress Bend location which were partially offset by higher sales prices.

Paperboard Sales Volumes and Prices:

  • Paperboard sales volumes were 206,712 tons in the first quarter of 2021, a decrease of 1% compared to 207,916 tons in the first quarter of 2020.
  • Paperboard average net selling price increased 1% to $1,028 per ton for the first quarter of 2021, compared to $1,013 per ton in the first quarter of 2020.

Consumer Products Segment

Net sales in the Consumer Products segment were $208 million for the first quarter of 2021, down 21% compared to the first quarter 2020 net sales of $263 million. In the first quarter of 2021, converted case shipments totaled 11.7 million cases, a decrease of 23% compared to 15.2 million cases shipped in the first quarter of 2020. Segment operating income for the first quarter of 2021 was $18 million compared to operating income of $15 million in the first quarter of 2020. Adjusted EBITDA for the segment was $35 million in the first quarter of 2021, up from $32 million in the first quarter of 2020. The increase in operating income and Adjusted EBITDA was driven by lower input costs, primarily in packaging and chemicals and higher throughput creating improved operating efficiencies in our operations, partially offset by lower sales volume.

Retail Tissue Sales Volumes and Prices:

  • Retail tissue volumes sold were 70,762 tons in the first quarter of 2021, a decrease of 22% compared to 90,791 tons in the first quarter of 2020. Retail volumes represented 88% of total volumes sold in the first quarter of 2021, a decrease from 91% in the first quarter of 2020.
  • Retail tissue selling prices increased 1% to $2,758 per ton in the first quarter of 2021, compared to $2,732 per ton in the first quarter of 2020.

COMPANY OUTLOOK

“We are continuing to position our businesses for long-term success, while taking actions that will help offset cost inflation and the short-term market driven adjustment in tissue demand. Our paperboard business continues to perform well with favorable market dynamics. We are confident that our focus on business improvements will deliver sustained performance in the long run,” Kitch concluded.

ABOUT CLEARWATER PAPER

Clearwater Paper is a premier supplier of private-branded tissue to major retailers and wholesale distributors, including grocery, drug, 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. Clearwater Paper’s employees build shareholder value by developing strong relationships through quality and service. To learn more, visit Clearwater Paper’s website: clearwaterpaper.com/

Source
Clearwater Paper Corporation
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