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Clearwater Paper reports net income of $15 million in the second quarter

Net sales in the Consumer Products segment were $232 million for the second quarter of 2022, an increase of 29%

Clearwater Paper has released its financial results for the second quarter and first half of 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.”

OVERALL RESULTS

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, compared to net loss for the second quarter of 2021 of $52 million. Adjusted EBITDA for the quarter was $63 million, compared to $15 million last year

In the first six months of 2022, the company reported net sales of $1 billion, a 22% increase compared to the same period in 2021. First-half net income was $31 million, or $1.83 per diluted share. Adjusted EBITDA was US$ 122 million, compared to US$ 69 million last year.

CONSUMER PRODUCTS SEGMENT

Net sales in the Consumer Products segment were $232 million for the second quarter of 2022, up 29% compared to the second quarter 2021.

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%. 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.

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 SALES VOLUMES AND PRICES

Retail tissue volumes sold were 76,604 tons in the second quarter of 2022, an increase of 25% compared to the same period last year. In the first half, sales volume was 152,030, an increase of 25%.

Cardboard sales volume was 215,903 tonnes in the second quarter of 2022, an increase of 8% over the same period last year. In the first half, sales volume was 417,259 tons, an increase of 2%.

The average net selling price of cardboard increased 26% to US$1,332 per ton in the second quarter of 2022. Considering the first six months of the year, the price increased 25% year-on-year.

The average selling prices increased 8% to $2,984 per ton in the second quarter of 2022. Considering the first six months of the year, retail tissue selling prices increased 8% to 2,928 per ton.

COMPANY OUTLOOK

“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.

Source
Clearwater Paper
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