Clearwater Paper Corporation · NYSE:CLW
Clearwater Paper — Q3 2013 Earnings Presentation
20 slides from Clearwater Paper's earnings presentation, Oct 23, 2013
Slide 1: Third Quarter 2013 Supplemental Information
Clearwater Paper Corporation Third 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 Q4 2013, production, product volumes shi
Slide 3: Financial Summary (Unaudited)
Financial Summary (Unaudited) 1 Non-GAAP measure – See definition and reconciliation to GAAP. 2 Q1'12Q2'12Q3'12Q4'12Q1'13Q2'13Q3'1320122013Net sales$ 457,798$ 473,572$ 480,233$ 462,701$ 460,824$ 471,002$ 487,845$ 1,411,603$ 1,419,671Adjusted gross profit1$ 54,722$ 76,040$ 70,411$ 66,273$ 46,798$ 57,
Slide 4: Q3'13 vs. Q2'13 Consolidated Adjusted EBITDA Bridge
$30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000Adj. EBITDA1(000's)Q3’13 vs. Q2’13 Consolidated Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Higher paperboard and tissue pricing, partially offset by higher no
Slide 5: Q3'13 vs. Q3'12 Consolidated Adjusted EBITDA Bridge
$30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000Adj. EBITDA1(000's)Q3’13 vs. Q3’12 Consolidated Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Increased pricing on retail and non-retail tissue and paperboard Vo
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. Q1'12Q2'12Q3'12Q4'12Q1'1
Slide 7: Clearwater Tissue Shipments and U.S. Retail Tissue Market
Retail 57% MG 16% AFH 6% Parent Rolls 18% Other 3% CLW Q2’13 By Segment (% of Tons) Clearwater Tissue Shipments and U.S. Retail Tissue Market Retail 54% MG 14% AFH 6% Parent Rolls 22% Other 4% CLW Q3’13 By Segment (% of Tons) U.S. Retail Tissue Market Category Private Label Brands Total Total Retail
Slide 8: Consumer Products Adjusted EBITDA Bridge: Current vs Prior Quarter
Current Quarter vs Prior Quarter $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000Adj. EBITDA1(000's)Q3’13 vs. Q2’13 Consumer Products Adjusted EBITDA1 Bridge 1 Non-GAAP measure – See definition and reconciliation to GAAP. Price/Mix Favorable pricing on both retail and non-retail tissue, more
Slide 9: Key Segment Results – Pulp and Paperboard (Unaudited)
Key Segment Results – Pulp and Paperboard (Unaudited) 1 Non-GAAP measure – See definition and reconciliation to GAAP. Q1'12Q2'12Q3'12Q4'12Q1'13Q2'13Q3'13 Shipments Paperboard (short tons) 182,198 193,285 195,097 190,339 186,350 190,518 199,408 Sales Price Paperboard ($/short ton)$ 968$ 975$ 948$ 936
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 onl
Slide 11: Pulp and Paperboard Adjusted EBITDA Bridge: Current vs Prior Quarter
Current Quarter vs Prior Quarter $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000Adj. EBITDA1(000's)Q3’13 vs. Q2’13 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 increase
Slide 12: Fourth Quarter 2013 Outlook (Compared to Q3'13)
Fourth Quarter 2013 Outlook (Compared to Q3’13)1 Consumer Products Pulp and Paperboard Corporate Production volumes Paper and converting production up (1-3% higher) No maintenance outage (1-2% higher) Shipment volumes Slightly lower retail cases and non-retail tons (1-3% lower) Lower due to seasonal
Slide 13: Bridge to Pro Forma $75 Million Quarterly Run Rate
$43 $8-$10$2$18$3-$7$74-$80 $20 $30 $40 $50 $60 $70 $80Q3'13 Adj.EBITDATAD ExpansionShipments(incremental toQ3'13 baselineTAD TissueEBITDA of $4M)TAD TransitionCostsIdaho OutageCostsCost SavingsProgramsPro FormaQuarterlyRun Rate(Expected inQ3'14)Adj. EBITDA 2(Millions)21Bridge to Pro Forma $75 Milli
Slide 14: Adjusted Gross Profit & Adjusted SG&A Reconciliation
Adjusted Gross Profit & Adjusted SG&A Reconciliation of Non-GAAP Financial 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 ar
Slide 15: 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. (Dollars in thousands)Q1'12Q2'12Q3'12Q4'12Q1'13Q2'13Q
Slide 16: 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 17: 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. (Dollars in thousands)Q1'12Q2'12Q3'12Q4'12Q1'13Q2'13Q3'1320122013 GA
Slide 18: EBITDA & Adjusted EBITDA Reconciliation
EBITDA & Adjusted EBITDA Reconciliation of Non-GAAP Financial 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
Slide 19: 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 to evaluate the cash generating capacity of the company. The most directly comparable GAAP measure is segment operating income. Segment EBITDA is seg
Slide 20: For more information: www.clearwaterpaper.com
For more information: www.clearwaterpaper.com 19