Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q4 2019 Earnings Presentation
22 slides from Clearwater Paper's earnings presentation, Feb 26, 2020
Slide 1: Fourth Quarter and Full Year 2019 Supplemental Information
CLEARWATER PAPER CORPORATION FOURTH QUARTER AND FULL YEAR 2019 SUPPLEMENTAL INFORMATION February 26, 2020 LINDA MASSMAN PRESIDENT, CHIEF EXECUTIVE OFFICER AND DIRECTOR ROBERT HRIVNAK SENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation of 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 the commercialization of the Shelby,
Slide 3: Fourth Quarter 2019 Business Highlights
FOURTH QUARTER 2019 BUSINESS HIGHLIGHTS $429 Million net sales, flat vs. Q4'18 $436 million net sales, down (2%) vs. Q3'19 and up 2% from Q4'18 $14 Million GAAP operating income and 3.3% margin FINANCIAL $18 million operating income and 4% margin PERFORMANCE Diluted GAAP EPS of $0.23 Diluted net ear
Slide 4: 2019 Full Year Business Highlights
2019 FULL YEAR BUSINESS HIGHLIGHTS $429 Million net sales, flat vs. Q4'18 $1.8 billion net sales, up 2% vs. 2018 $14 Million GAAP operating income and 3.3% margin FINANCIAL $45 million operating income and 3% margin PERFORMANCE Diluted Diluted GAAP EPS net loss perofshare $0.23of ($0.34) 1,2 Solid o
Slide 5: Clearwater Paper Annual Results
CLEARWATER PAPER ANNUAL RESULTS GAAP Measures (dollars in millions) 2019 Net $1,762 Operating $45.4 Net $(5.6) 2018 Sales $1,724 Income (Loss) ($97.9) (Loss) ($143.8) ADJ. EBITDA1 1 2019 vs. 2018 Adjusted EBITDA Bridge (MILLIONS) $7.9 PRICE/MIX Favorable pricing in paperboard and tissue $210 $20.4 H
Slide 6: Clearwater Paper Sequential Quarter Results
CLEARWATER PAPER SEQUENTIAL QUARTER RESULTS GAAP Measures (dollars in millions) Q4'19 Net $435.5 Operating $18.1 Net $2.0 Sales Income (Loss) Earnings Q3'19 $445.2 ($2.4) (Loss) ($11.0) ADJ. EBITDA1 (MILLIONS) Q4'19 vs. Q3'19 Adjusted EBITDA1 Bridge $55 $2.6 $51.7 $15.3 $50 PRICE/MIX Unfavorable mix
Slide 7: Clearwater Paper Year Over Year Same Quarter Results
CLEARWATER PAPER YEAR OVER YEAR SAME QUARTER RESULTS GAAP Measures (dollars in millions) Q4'19 Net $435.5 Operating $18.1 Net $2.0 Sales Income (Loss) $(174.7) Earnings Q4'18 $428.7 (Loss) $(187.7) ADJ. EBITDA1 1 Q4'19 vs. Q4’18 Adjusted EBITDA Bridge (MILLIONS) $60 Unfavorable tissue mix coupled wi
Slide 8: Consumer Products Sequential Quarter Results
CONSUMER PRODUCTS SEQUENTIAL QUARTER RESULTS GAAP Measures (dollars in millions) Q4'19 Segment $230.6 Segment $1.6 Segment Operating 0.7% Net Sales Operating Income Income (Loss) Q3'19 $228.5 (Loss) ($4.4) Percentage (1.9)% SEGMENT ADJ. EBITDA1 (MILLIONS) $22 Q4'19 vs. Q3'19 Segment Adjusted $1.5 $2
Slide 9: Pulp and Paperboard Sequential Quarter Results
PULP AND PAPERBOARD SEQUENTIAL QUARTER RESULTS GAAP Measures (dollars in millions) Q4'19 Segment $204.9 Segment $35.3 Segment Operating 17.2% Q3'19 Net Sales $216.7 Operating Income $17.1 Income Percentage 7.9% SEGMENT ADJ. EBITDA1 (MILLIONS) $2.7 $44.5 Q4'19 vs. Q3'19 Segment Adjusted $45 EBITDA1 B
Slide 10: Q1'20 Adjusted EBITDA Outlook, Adjusted Earnings Outlook and Reconciliation
Q1’20 ADJUSTED EBITDA OUTLOOK1 , ADJUSTED EARNINGS OUTLOOK1 AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) Adjusted EBITDA Outlook Adjusted Net Earnings Outlook OUTLOOK OUTLOOK THREE MONTHS ENDING THREE MONTHS ENDING MARCH 31, 2020 MARCH 31, 2020 RANGE OF ESTIMATE RANGE OF ESTIMATE (D
Slide 11: Q1'20 Outlook
Q1'20 OUTLOOK1 NET SALES 1% - 2% Higher ADJUSTED OPERATING MARGIN2,3 2.5% - 4.5% ADJUSTED EBITDA2 $41M - $47M ADJUSTED NET EARNINGS PER DILUTED COMMON SHARE2,4 $0.01 - $0.28 1 This information is based upon management’s current expectations and estimates, which are in part based on market and indust
Slide 12: 2020 Outlook
2020 OUTLOOK1 ADJUSTED OPERATING MARGIN2,3 ADJUSTED EBITDA2 1 ADJUSTED NET EARNINGS PER DILUTED COMMON SHARE2,4 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, inc
Slide 13: Five Quarter Segment Trends
FIVE QUARTER SEGMENT TRENDS (Dollars in millions) Consumer Products Pulp & Paperboard Total Net Sales $228.5 $230.6 $227.7 $223.4 $224.3 $216.0 $216.7 $212.7 $205.4 $204.9 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Adj. EBITDA & Margin 1,2 $43.0 $44.5 $41.5 $38.9 $28.3 21.7% 19.2% 1
Slide 14: Key Segment Results
KEY SEGMENT RESULTS (UNAUDITED) Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Consumer Products Shipments Retail (short tons) 69,480 73,356 76,175 79,526 79,748 Non-Retail (short tons)1 11,500 10,266 6,623 6,882 8,393 Total Tissue Tons 80,980 83,622 82,798 86,408 88,141 Converted Products (cases in thousands)2 11,6
Slide 15: Capital Allocation
CAPITAL ALLOCATION (Dollars and shares in millions) Cash Capital Expenditures Cumulative Shares Repurchased and Shares 1 Outstanding $296 22.77 22.99 21.08 19.56 17.81 $200 16.49 16.45 16.48 16.54 $155 $129 $140 $93 7.7 7.8 7.8 7.8 6.4 4.5 2.9 0.3 0.9 2014 2015 2016 2017 2018 2019 2011 2012 2013 201
Slide 16: Debt, Interest and Cash Flow
DEBT, INTEREST AND CASH FLOW (Dollars in millions) 1 2 Net Debt Total Leverage Ratio ST Debt LT Debt 5.67 $947 4.97 4.98 5.17 $887 $890 $891 4.40 $793 $897 $697 $697 $891 $715 $78 $50 $190 $193 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Net Interest Expense Cash Flow From Operations
Slide 17: Major Maintenance Schedule
MAJOR MAINTENANCE SCHEDULE (Dollars in millions) $30 $24 $23 - $27 $22 $18 $20 $7 $15 - $20 $7 Idaho $18 $17 Idaho $15 $10 None None Arkansas 1 1 1 2015 2016 2017 2018 2019 2020e 2021e 2022e Q1 Q2 Q3 Q4 1 This information is based upon management’s current expectations and estimates, as well as hist
Slide 18: Key Commodity Consumption Volumes
KEY COMMODITY CONSUMPTION VOLUMES Approximated Annual Approximated Annual expected Adjusted Volume1 $ Change Per EBITDA2 Impact +/- COGS Input Unit of Measure (in Millions) Unit1 +/- (in Millions) Purchased Pulp Ton 0.3 $20.00 $6.0 Fiber Bone Dry Ton 1.5 $4.00 $6.0 Diesel Gallon 10.0 $0.50 $5.0 Elec
Slide 19: Reconciliations
RECONCILIATIONS 19
Slide 20: Adjusted Net Earnings and Adjusted EBITDA Reconciliation
ADJUSTED NET EARNINGS AND ADJUSTED EBITDA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) Twelve Months Ended December 31, (Dollars in millions) Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 2018 2019 Net earnings (loss) $ (187.7) $ 3.8 $ (0.4) $ (11.0) $ 2.0 $ (143.8) $ (5.6) Add back: Income tax provisi
Slide 21: Segment Adjusted EBITDA Reconciliation
SEGMENT ADJUSTED EBITDA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) Twelve Months Ended December 31, (Dollars in millions) Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 2018 2019 Consumer Products segment income (loss) $ 0.8 $ 1.3 $ (5.1) $ (4.4) $ 1.6 $ 0.3 $ (6.6) Depreciation and amortization 14.9
Slide 22: For More Information: www.clearwaterpaper.com
FOR MORE INFORMATION: WWW.CLEARWATERPAPER.COM 22