Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q2 2013 Earnings Presentation
20 slides from Clearwater Paper's earnings presentation, Jul 24, 2013
Slide 1: Second Quarter 2013 Supplemental Information
Clearwater Paper Corporation Second Quarter 2013 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
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 Q3 2013, production, product volumes shi
Slide 3: Financial Summary (Unaudited)
Financial Summary(Unaudited)1 Non-GAAP measure – See definition and reconciliation to GAAP. 2Net sales $ 457,798 $ 473,572 $ 480,233 $ 462,701 $ 460,824 $ 471,002 $ 931,370 $ 931,826 Adjusted gross profit1 $ 54,722 $ 76,040 $ 70,411 $ 66,273 $ 46,798 $ 57,494 $ 130,762 $ 104,292 Adjusted gross profi
Slide 4: Q2-13 vs. Q1-13 Consolidated Adjusted EBITDA Bridge
Q2-13 vs. Q1-13 Consolidated Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Favorable TAD tissue mix along with lower promotional spending and higher pricing for non-retail tissue and paperboard products Volume Higher non-retail tissue and paperboar
Slide 5: Q2-13 vs. Q2-12 Consolidated Adjusted EBITDA Bridge
Q2-13 vs. Q2-12 Consolidated Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Favorable TAD tissue mix partially offset by lower pricing in non-retail tissue and paperboard products Volume Lower non-retail tissue and paperboard shipments partially off
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 machine-glazed tissue case products.3 Non-GAAP measure – See definition and reconciliation to GAAP.Shipments Non-R
Slide 7: Clearwater Tissue Shipments and U.S. Retail Tissue Market
Clearwater Tissue Shipments and U.S. Retail Tissue Market Retail 57% MG 16% AFH 6% Parent Rolls 18% Other 3%CLW Q2 2013 By Segment (% of Tons)Total Retail Tissue Share (Equivalent Cases) 26% 74% 100% % Change Q2-13 YTD vs. Q2-12 YTD 2.4% 2.2% 2.2% AFH 6% Parent Rolls 19% Other 3% CLW Q1 2013 By Segm
Slide 8: Q2-13 vs. Q1-13 Consumer Products Adjusted EBITDA Bridge
Q2-13 vs. Q1-13 Consumer Products Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Favorable mix shift to increased TAD bathroom tissue shipments and higher pricing for non-retail products Volume Decreased retail shipment tons partially offset by incr
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. Shipments Paperboard (short tons) 182,198 193,285 195,097 190,339 186,350 190,518 Sales Price Paperboard ($/short ton) $ 968 $ 975 $ 948 $ 936 $ 935 $ 946Adjusted EBITDA1 $ 17,669
Slide 10: Clearwater Paperboard Shipments and U.S. Paperboard Market
Clearwater Paperboard Shipments and U.S. Paperboard Market U.S. Paperboard Production Category Clearwater Other Total Domestic SBS1 Market Share 13% 87% Folding 18% 82% Food Service 2 14% 86% Liquid Packaging 6% 94%Data Source: American Forest and Paper Association. Based on domestic production only
Slide 11: Q2-13 vs. Q1-13 Pulp and Paperboard Adjusted EBITDA Bridge
Q2-13 vs. Q1-13 Pulp and Paperboard Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Higher pricing due to better product mix and price increases Volume Higher due to consignment build in Q1’13 Wood Fiber Lower Idaho fiber costs due to higher availabi
Slide 12: Third Quarter 2013 Outlook (Compared to Q2'13)
Third Quarter 2013 Outlook (Compared to Q2’13)1 Consumer Products Pulp and Paperboard Corporate Production volumes Paper and converting production up as transition progresses (1-3% higher) Down due to Idaho maintenance outage (1-2% lower) Shipment volumes Higher retail cases and non-retail tons (1-3
Slide 13: Bridge to Pro Forma $75 Million Quarterly Run Rate
Bridge to Pro Forma $75 Million Quarterly Run Rate1 1 Assumes no change in prices or input costs from Q2 2013. 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, incl
Slide 14: Adjusted Gross Profit & SGA Reconciliation from Non-GAAP Measures
Adjusted Gross Profit & SGA Reconciliation from Non-GAAP Measures (Unaudited) 1 Gross profit defined as net sales minus cost of sales. 2 Adjusted gross profit and adjusted selling, general and administrative expenses excludes the impact of the items listed that we do not believe are indicative of ou
Slide 15: Adjusted Operating Income (Loss) Reconciliation from Non-GAAP Measures
Adjusted Operating Income (Loss) Reconciliation from Non-GAAP 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. 14 (Dollars in thousands) Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 2012 20
Slide 16: Adjusted Net Earnings Reconciliation from Non-GAAP Measures
Adjusted Net Earnings Reconciliation from Non-GAAP Measures (Unaudited) 1 All non-tax items are tax effected at the expected annual rate for that period. 2 Adjusted net earnings and Adjusted diluted net earnings per common share exclude the impact of the items listed that we do not believe are indic
Slide 17: Adjusted Net Earnings Reconciliation from Non-GAAP Measures
Adjusted Net Earnings Reconciliation from Non-GAAP Measures (Unaudited) 1 All non-tax items are tax effected at the expected annual rate for that period. 2 Adjusted net earnings and Adjusted diluted net earnings per common share exclude the impact of the items listed that we do not believe are indic
Slide 18: Six Months Ended June 30, Reconciliation from Non-GAAP Measures
Six Months Ended June 30, Reconciliation from Non-GAAP Measures (Unaudited) 1 EBITDA is a non-GAAP measure that management uses to evaluate the cash generating capacity of the company. The most directly comparable GAAP measure is net earnings. EBITDA is net earnings adjusted for net interest expense
Slide 19: Six Months Ended June 30, Segment Reconciliation from Non-GAAP Measures
Six Months Ended June 30, Segment Reconciliation from Non-GAAP Measures (Unaudited) 1 Segment EBITDA is a non-GAAP measure that management uses to evaluate the cash generating capacity of the company. The most directly comparable GAAP measure is segment operating income. Segment EBITDA is segment op
Slide 20: For more information: www.clearwaterpaper.com
For more information: www.clearwaterpaper.com 19