Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q1 2025 Earnings Presentation
16 slides from Clearwater Paper's earnings presentation, Apr 29, 2025
Slide 1: First Quarter Earnings Release Materials
First Quarter Earnings Release Materials April 29, 2025 ARSEN KITCH President, Chief Executive Officer and Director SHERRI BAKER Senior Vice President and Chief Financial Officer
Slide 2: Forward Looking Statements
2 Forward Looking Statements Cautionary Statement Regarding Forward Looking Statements This presentation of supplemental information contains, in addition to historical information, certain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Slide 3: 2024 Was a Transformational Year For Clearwater Paper
3 Utilized ~$850 million of net proceeds from sale to pay down debt Completed sale of tissue business for $1.06 billion on November 1 Completed acquisition of Augusta paperboard mill for $700M on May 1 LIGHTWEIGHT PRODUCTS Increased total SBS capacity to ~1.4M tons Balanced network to deliver lower
Slide 4: Clearwater is Well Positioned to Deliver Strong Returns Across the Cycle
4 Clearwater is Well Positioned to Deliver Strong Returns Across the Cycle >16% Cycle peak (>95% utilization, 50-60% FCF conversion) Average across cycle (90-95% utilization, 40-50% FCF conversion) ~13 to 14% Downcycle (<85% utilization, 0-20% FCF conversion) <10% TARGETING STRONG CASH FLOW GENERATI
Slide 5: Exploring Options to Expand Our Product Offering
5 Exploring Options to Expand Our Product Offering Post consumer recycled content Developed and in market Provide options for converter customers to service sustainability driven Consumer Packaged Goods (CPG) and Quick Service Restaurants (QSR) customers Compostable plate Developed and expected in m
Slide 6: Industry Trends
6 INDUSTRY TRENDS 1. Based on data from AF&PA. 2. Based on data reported by RISI Fastmarkets and other industry sources. SBS PAPERBOARD SHIPMENTS IMPROVED IN Q1'25, PROJECTED TO GROW IN 2025 Industry shipments1 up ~1% Q1’25 vs Q4’24 Shipments projected to grow by 3 to 5%2 in 2025 Domestic demand exp
Slide 7: Q1 2025 Financial Summary
7 +46% increase in Q1’25 vs. Q1’24 Primarily due to Augusta acquisition -4% decrease in Q1’25 average pricing vs. Q1’24 Consistent with industry trends Q1 2025 Financial Summary NET SALES FROM CONTINUING OPERATIONS $378M NET LOSS FROM CONTINUING OPERATIONS $6M PARTIALLY OFFSET BY MARKET DRIVEN PRICE
Slide 8: Q1'25 vs Q1'24 Adjusted EBITDA Results from Continuing Operations
8 Q1’25 VS Q1’24 Adjusted EBITDA Results from Continuing Operations ($ in millions) $14.2 $14.1 -$0.9 $29.8 -$4.4 $6.8 Q1'24 Adj. EBITDA Price/Mix Volume Costs/Other SG&A Q1'25 Adj. EBITDA Lower paperboard market pricing as reported by RISI, partially offset by higher pricing on external pulp sales
Slide 9: Outlook and Assumptions for Q2 and Full Year 2025
9 Outlook and Assumptions for Q2 and Full Year 2025 Q2 2025: $35 to $45M of Adjusted EBITDA1 ~5% growth in sales and production volumes vs Q1’25 Additional benefits from fixed cost reduction efforts $6 million lower energy expenses due to seasonality vs Q1’25 Other input costs stable, no tariff impa
Slide 10: Optimized Capital Allocation Approach Supports Value Creation
10 Optimized Capital Allocation Approach Supports Value Creation $70-80M EXPECTED ANNUAL MAINTENANCE CAPEX, EXCLUDING LARGE REPLACEMENT PROJECTS 1-2x TARGET LEVERAGE RATIO Investing to maintain the long-term performance of our assets Evaluating capital investments to diversify product portfolio Oppo
Slide 11: Optimistic About Long-Term Value Creation
11 Optimistic About Long-Term Value Creation Sharp focus on improving and growing our paperboard business • Meaningfully de-levered balance sheet with proceeds from tissue sale • Focus on growing our position as a premier independent paperboard packaging supplier to North American converters Well in
Slide 12: Appendix
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Slide 13: Financial Performance
13 Financial Performance ($ IN MILLIONS, UNAUDITED) March 31, 2025 December 31, 2024 March 31, 2024 Net sales $ 378.2 $ 387.1 $ 258.8 Costs and expenses: Cost of sales 341.5 372.4 225.5 Selling, general and administrative expenses 28.9 26.7 28.1 Other operating charges, net 11.8 3.7 6.0 Total operat
Slide 14: Reconciliation of Adjusted EBITDA
14 Reconciliation of Adjusted EBITDA ($ IN MILLIONS, UNAUDITED) March 31, 2025 December 31, 2024 March 31, 2024 Net income (loss) $ (6.3) $ 199.1 $ 17.2 Add (deduct): Less: Income from discontinued operations, net of tax (0.4) 218.8 19.3 Income from continuing operations (5.9) (19.6) (2.1) Income ta
Slide 15: Q4'24 vs Q1'25 Adjusted EBITDA Results from Continuing Operations
15 Q4’24 VS Q1’25 Adjusted EBITDA Results from Continuing Operations ($ in millions) $9.5 $27.5 -$2.2 $29.8 -$1.5 -$3.5 Q4'24 Adj. EBITDA Price/Mix Volume Costs/Other SGA Q1'25 Adj. EBITDA Lower paperboard production and sales volumes Cost reduction initiatives and no planned major maintenance
Slide 16: Key Metrics
16 Key Metrics March 31, 2025 December 31, 2024 March 31, 2024 Food service $ 151.4 $ 174.0 $ 89.6 Folding carton 148.4 143.5 107.0 Sheeting & distribution 38.8 36.9 40.4 Pulp and other 39.6 32.7 21.8 Net sales 378.2 $ 387.1 $ 258.8 Input cost (raw materials & energy) $ 168.4 $ 165.9 $ 115.5 Labor a