Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q1 2014 Earnings Presentation
21 slides from Clearwater Paper's earnings presentation, Apr 23, 2014
Slide 1: First Quarter 2014 Supplemental Information
Clearwater Paper Corporation First Quarter 2014 Supplemental Information Linda Massman President, Chief Executive Officer and Director John Hertz Senior Vice President, Finance and Chief Financial Officer
Slide 2: Forward-Looking Statements
This supplemental information contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding outlook for Q2 2014, production, product volumes shipped, product pricing and s
Slide 3: Financial Summary (Unaudited)
Financial Summary (Unaudited) 1 Non-GAAP measure – See definition and reconciliation to GAAP. 2 Adjusted gross profit margin is defined as Adjusted gross profit divided by Net sales. 3 Adjusted operating margin is defined as Adjusted operating income divided by Net sales. 4 Adjusted EBITDA margin is
Slide 4: Q1'14 vs. Q4'13 Consolidated Adjusted EBITDA Bridge
$30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 Adj. EBITDA1 (000's) 3 Q1’14 vs. Q4’13 Consolidated Adjusted EBITDA1 Bridge Price/Mix Primarily due to favorable paperboard mix Volume Higher paperboard shipments Wood Fiber Slightly higher wood pricing External
Slide 5: Q1'14 vs. Q1'13 Consolidated Adjusted EBITDA Bridge
$30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 Adj. EBITDA1 (000's) Q1’14 vs. Q1’13 Consolidated Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Primarily due to increased paperboard pricing and favorable mix,
Slide 6: Key Segment Results – Consumer Products (Unaudited)
Key Segment Results – Consumer Products (Unaudited) 5 1 Includes away-from-home (AFH), contract, machine-glazed (MG) and parent roll tissue products. 2 Includes retail, AFH, contract and MG tissue case products. 3 Non-GAAP measure – See definition and reconciliation to GAAP. 4 Segment Adjusted EBITD
Slide 7: Clearwater Paper Tissue Shipments and U.S. Retail Tissue Market
Retail 55% MG 15% AFH 6% Parent Rolls 23% Other 1% CLW Q4’13 By Segment (% of Tons) Clearwater Paper Tissue Shipments and U.S. Retail Tissue Market Retail 55% MG 14% AFH 8% Parent Rolls 22% Other 1% CLW Q1’14 By Segment (% of Tons) U.S. Retail Tissue Market (MultiOutlet) Category Private Label Brand
Slide 8: Q1'14 vs. Q4'13 Consumer Products Adjusted EBITDA Bridge
$15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Adj. EBITDA1 (000's) 7 Q1’14 vs. Q4’13 Consumer Products Adjusted EBITDA1 Bridge Price/Mix Primarily higher non-retail pricing mix Volume Lower non-retail tons, largely offset by increased retail shipments of converted cases External Pu
Slide 9: Key Segment Results – Pulp and Paperboard (Unaudited)
Key Segment Results – Pulp and Paperboard (Unaudited) 8 1 Non-GAAP measure – See definition and reconciliation to GAAP. 2 Segment Adjusted EBITDA margin is defined as Segment Adjusted EBITDA divided by Segment net sales. Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Shipments Paperboard (short tons) 186,350 190,518
Slide 10: Clearwater Paper Paperboard Shipments and U.S. Paperboard Market
Clearwater Paper Paperboard Shipments and U.S. Paperboard Market U.S. Paperboard Production Category Clearwater Paper Other Total Domestic SBS1 Market Share 13% 87% Folding 18% 82% Food Service2 14% 86% Liquid Packaging 5% 95% Data Source: American Forest and Paper Association Solid Bleached Domesti
Slide 11: Q1'14 vs. Q4'13 Pulp and Paperboard Adjusted EBITDA Bridge
$15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Adj. EBITDA1 (000's) Q1’14 vs. Q4’13 Pulp and Paperboard Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Primarily due to favorable paperboard mix Volume Higher shipment tons due to stro
Slide 12: Clearwater Paper Cross-Cycle Financial Model
Clearwater Paper Cross-Cycle Financial Model 11 1 Non-GAAP measure – See definition and reconciliation to GAAP. Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Net sales 100% 100% 100% 100% 100% 100% Adjusted gross profit margin1 10.2% 12.2% 9.9% 15.3% 13.0% 17.0% Adjusted SG&A expenses1 % of net sales (6.7%) (5.9%)
Slide 13: Second Quarter 2014 Outlook (Compared to Q1'14)
Second Quarter 2014 Outlook (Compared to Q1’14)1 Consumer Products Paperboard Corporate Shipment volumes Higher retail cases, retail tons, and non-retail tons (3-5% higher tons) Seasonally higher (2-3% higher) Price/Mix Higher TAD mix offset by lower conventional pricing Stable Higher pricing and im
Slide 14: Bridge to Pro Forma $75 Million Quarterly Run Rate
$55 $3-$5 $9 $6+ $73+ $40 $45 $50 $55 $60 $65 $70 $75 $80Q1'14 Adj. EBITDA TAD Expansion Shipments (incremental to Q1'14 baseline TAD Tissue EBITDA of $7M) Non-recurrence of Q1 Cold Weather Impact Cost Savings Programs Pro Forma Quarterly Run Rate (Expected in Q3'14) Adj. EBITDA2 (Millions) 1 2 Brid
Slide 15: Adjusted Gross Profit & Adjusted SG&A Reconciliation
Adjusted Gross Profit & Adjusted SG&A Reconciliation of Non-GAAP Financial Measures (Unaudited) 1 Gross profit is defined as net sales minus cost of sales. 2 Adjusted gross profit and Adjusted selling, general and administrative expenses exclude the impact of the items listed that we do not believe
Slide 16: Segment Adjusted Operating Income (Loss) Reconciliation
Segment Adjusted Operating Income (Loss) Reconciliation of Non-GAAP Financial Measures (Unaudited) 1 Adjusted operating income (loss) excludes the impact of the items listed that we do not believe are indicative of our core operating performance. 15 (Dollars in thousands) Q1'13 Q2'13 Q3'13 Q4'13 Q1'
Slide 17: Adjusted Net Earnings & Diluted Adjusted Earnings per Share
Adjusted Net Earnings & Diluted Adjusted Earnings per common share Reconciliation of Non-GAAP Financial Measures (Unaudited) 1 All non-tax items are tax effected at the expected annual rate for that period. 2 Adjusted net earnings and Diluted adjusted net earnings per common share exclude the impact
Slide 18: Adjusted Income Tax Provision Reconciliation
Adjusted Income Tax Provision Reconciliation of Non-GAAP Financial Measure (Unaudited) 1 Adjusted income tax provision excludes the impact of the items listed that we do not believe are indicative of our core operating performance. 17 (Dollars in thousands) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 GAAP income
Slide 19: EBITDA & Adjusted EBITDA Reconciliation
EBITDA & Adjusted EBITDA Reconciliation of Non-GAAP Financial Measures (Unaudited) 1 EBITDA is a non-GAAP measure that management uses as a supplemental performance measure. The most directly comparable GAAP measure is net earnings. EBITDA is net earnings adjusted for net interest expense (including
Slide 20: Segment EBITDA & Adjusted EBITDA Reconciliation
Segment EBITDA & Adjusted EBITDA Reconciliation of Non-GAAP Financial Measures (Unaudited) 1 Segment EBITDA is a non-GAAP measure that management uses as a supplemental performance measure. The most directly comparable GAAP measure is segment operating income (loss). Segment EBITDA is segment operat
Slide 21: For more information: www.clearwaterpaper.com
For more information: www.clearwaterpaper.com 20