Slide 1: Clearwater Paper Corporation First Quarter Supplemental Information
CLEARWATER PAPER CORPORATION FIRST QUARTER SUPPLEMENTAL INFORMATION 05/01/19 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; financial models; estimated Q2 2019
Slide 3: First Quarter Business Highlights
FIRST QUARTER BUSINESS HIGHLIGHTS $429 MILLION NET SALES, FLAT VS. Q4'18 $14 MILLION GAAP OPERATING INCOME DILUTED GAAP EPS OF $0.23 SOLID OPERATING RESULTS; $40 MILLION ADJUSTED EBITDA,1,2 WITHIN OUR OUTLOOK RANGE OF $37 TO $43 MILLION QUARTER IMPACTED BY $4 MILLION DUE TO A NATURAL GAS SUPPLY PIPE
Slide 4: Financial Summary (GAAP Basis)
FINANCIAL SUMMARY (GAAP BASIS) (UNAUDITED) (Dollars in thousands - except per-share amounts) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Net sales $436,952 $432,099 $426,460 $428,707 $428,779 Gross Profit $44,519 $44,945 $50,239 $46,503 $44,533 Selling, general and administrative expenses ($32,980) ($26,564) ($26
Slide 5: Financial Summary (Adjusted Basis)
FINANCIAL SUMMARY (ADJUSTED BASIS) (UNAUDITED) (Dollars in thousands - except per-share amounts) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Outlook7 Net sales $436,952 $432,099 $426,460 $428,707 $428,779 3.5% - 4.5% Higher Adjusted gross profit1 $44,712 $45,768 $50,399 $46,601 $44,533 Adjusted gross profit
Slide 6: Q1'19 vs. Q4'18 Consolidated Adjusted EBITDA Bridge
Q1’19 VS. Q4’18 CONSOLIDATED ADJUSTED EBITDA1 BRIDGE ADJ. EBITDA1 (MILLIONS) Higher paperboard and tissue pricing from $52 PRICE/MIX previously announced price increases and $4.2 improved mix $50 $1.5 -$0.7 Seasonally lower paperboard shipments, lower paperboard shipments due to customer $48 VOLUME
Slide 7: Q1'19 vs. Q1'18 Consolidated Adjusted EBITDA Bridge
Q1’19 VS. Q1’18 CONSOLIDATED ADJUSTED EBITDA1 BRIDGE ADJ. EBITDA1 (MILLIONS) Implementation of announced price increases in PRICE/MIX both divisions $52 $10.0 Lower retail tissue shipments due to volume loss from significant customer in 2018 partially offset by new customer shipments; lower tissue V
Slide 8: Key Segment Results - Consumer Products
KEY SEGMENT RESULTS - CONSUMER PRODUCTS (UNAUDITED) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Shipments Retail (short tons) 80,971 73,070 70,335 69,480 73,356 Non-Retail (short tons)1 11,236 17,316 18,525 11,500 10,266 Total Tissue Tons 92,207 90,386 88,860 80,980 83,622 Converted Products (cases in thousands)2
Slide 9: Clearwater Paper Tissue Shipments and U.S. Retail Tissue Market
CLEARWATER PAPER TISSUE SHIPMENTS AND U.S. RETAIL TISSUE MARKET CLW Q1'19 by CLW Q4'18 by Market Segment Market Segment (% of Tons) (% of Tons) U.S. Retail1 Tissue Market Q1'19 ($) Other (MultiOutlet) Parent Parent Other Rolls Rolls AFH AFH 5% 4% 1% 6% 5% 1% PRIVATE CATEGORY LABEL BRANDS TOTAL Total
Slide 10: Q1'19 vs. Q4'18 Consumer Products Adjusted EBITDA Bridge
Q1'19 VS. Q4'18 CONSUMER PRODUCTS ADJUSTED EBITDA1 BRIDGE SEGMENT ADJ. EBITDA1 (MILLIONS) $22 Higher pricing due to previously announced price PRICE/MIX increase and higher mix of cases $2.5 $20 Higher tissue shipments at existing and new VOLUME accounts $18 $1.9 $1.5 Higher external prices and high
Slide 11: Key Segment Results – Pulp and Paperboard
KEY SEGMENT RESULTS – PULP AND PAPERBOARD (UNAUDITED) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Shipments1 Paperboard (short tons) 206,309 216,582 218,135 218,322 202,834 Sales Price1 Paperboard ($/short ton) $960 $972 $985 $982 $1,001 Segment net sales ($ in thousands) $198,110 $210,514 $214,818 $215,964 $205,
Slide 12: Clearwater Paper Paperboard Shipments and U.S. Paperboard Market
CLEARWATER PAPER PAPERBOARD SHIPMENTS AND U.S. PAPERBOARD MARKET CLW Q1'19 by CLW Q4'18 by Market Segment Market Segment U.S. Paperboard Production Q1'193 (% of Tons) (% of Tons) CLEARWATER CATEGORY PAPER OTHER Folding Folding Total Domestic 13% 87% 56% 56% SBS1 Market Share Folding 17% 83% Food Ser
Slide 13: Q1'19 vs. Q4'18 Pulp and Paperboard Adjusted EBITDA Bridge
Q1’19 vs. Q4'18 PULP AND PAPERBOARD ADJUSTED EBITDA1 BRIDGE SEGMENT ADJ. EBITDA1 (MILLIONS) $46 Higher prices due to previously announced price PRICE/MIX increase and improved mix $2.3 $44 Seasonally lower paperboard shipments and $1.7 VOLUME lower shipments due to customer purchases ahead of price
Slide 14: Q2'19 Adjusted EBITDA Outlook and Reconciliation
Q2’19 ADJUSTED EBITDA OUTLOOK1 AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) OUTLOOK THREE MONTHS ENDING JUNE 30, 2019 RANGE OF ESTIMATE (Dollars in thousands) FROM TO Earnings before interest, income taxes, and depreciation & amortization (EBITDA)2: GAAP net (loss) earnings ($1,600)
Slide 15: Q2'19 Adjusted Net Earnings Outlook and Reconciliation
Q2’19 ADJUSTED NET EARNINGS OUTLOOK1 AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) OUTLOOK THREE MONTHS ENDING JUNE 30, 2019 RANGE OF ESTIMATE (Dollars in thousands) FROM TO GAAP Operating Income $7,000 $15,000 Directors' equity-based compensation expense 400 400 Non-operating pensio
Slide 16: Q2'19 Outlook
Q2'19 OUTLOOK1 NET SALES 3.5% - 4.5% Higher ADJUSTED OPERATING MARGIN2,3 2.0% - 4.0% ADJUSTED EBITDA2,5 $36M - $44M ADJUSTED NET EARNINGS PER DILUTED COMMON SHARE2,4 $0.00 - $0.34 1 This information is based upon management’s current expectations and estimates, which are in part based on market and
Slide 17: Appendix
AG sisegoorss APPENDIX
Slide 18: Adjusted Gross Profit & Adjusted SG&A Reconciliation
ADJUSTED GROSS PROFIT & ADJUSTED SG&A RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Gross profit1 $44,519 $44,945 $50,239 $46,503 $44,533 Reorganization expenses associated with SG&A cost control measures 193 31 2 — — Consumer Products
Slide 19: Segment Adjusted Operating Income (Loss) Reconciliation
SEGMENT ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Consumer Products Operating income (loss)1 $1,629 ($3,604) $21,675 ($193,558) $1,271 Reorganization expenses associated with SG&A cost control measu
Slide 20: Adjusted Net Earnings & Adjusted EPS Reconciliation
ADJUSTED NET EARNINGS & ADJUSTED NET EARNINGS PER DILUTED COMMON SHARE RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands - except per-share amounts) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 GAAP net earnings (loss) $2,600 $6,961 $34,444 ($187,772) $3,837 Adjustments, after tax1: D
Slide 21: Adjusted Income Tax Provision Reconciliation
ADJUSTED INCOME TAX PROVISION RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (UNAUDITED) (Dollars in thousands) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 GAAP income tax benefit (provision) $360 ($2,510) ($3,675) ($4,480) ($725) Adjustments, tax impact: Directors' equity-based compensation benefit (expense) 177 5
Slide 22: EBITDA & Adjusted EBITDA Reconciliation
EBITDA & ADJUSTED EBITDA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Earnings before interest, income taxes, and depreciation & amortization (EBITDA)1 GAAP net earnings (loss) $2,600 $6,961 $34,444 ($187,772) $3,837 Interest expense,
Slide 23: Segment EBITDA & Adjusted EBITDA Reconciliation
SEGMENT EBITDA & ADJUSTED EBITDA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (Dollars in thousands) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Consumer Products Operating income (loss)3 $1,629 ($3,604) $21,675 ($193,558) $1,271 Depreciation and amortization expense 14,297 14,220 14,447 14,820 14,77
Slide 24: For More Information: www.clearwaterpaper.com
FOR MORE INFORMATION: WWW.CLEARWATERPAPER.COM 24