Clearwater Paper Reports Second Quarter 2025 Results
SECOND QUARTER HIGHLIGHTS
-
Net sales of
$392 million , up 14% primarily due to incremental volume from our acquisition of theAugusta, Georgia mill onMay 1, 2024 -
Net income from continuing operations of
$4 million , or$0.22 per diluted share compared net loss of$42 million , or$2.50 per diluted share -
Net income of
$3 million , or$0.17 per diluted share compared to net loss of$26 million , or$1.55 per diluted share -
Adjusted EBITDA of
$40 million compared to negative$9 million of Adjusted EBITDA in the second quarter last year -
Repurchased
$4 million of outstanding shares in the quarter and$15 million of outstanding shares in the first six months of 2025 -
Successfully completed the planned major maintenance outage at our Cypress Bend,
Arkansas mill -
Continued to capture benefits from fixed cost reduction actions; on track to deliver targeted reductions of
$30 to$40 million in 2025
“We delivered a strong second quarter in line with our expectations, with higher shipments, higher production, and lower fixed costs,” said
OVERALL RESULTS
For the second quarter of 2025,
For the first six months of 2025,
Sales volumes and prices:
- Sales volumes were 304,713 tons in the second quarter of 2025, an increase of 12% compared to 272,585 tons in the second quarter of 2024. Sales volumes were 594,200 tons in the six months of 2025, an increase of 29% compared to 459,888 tons in the first six months of 2024.
-
Paperboard average net selling price decreased 3% to
$1,182 per ton for the second quarter of 2025, compared to$1,216 per ton in the second quarter of 2024. Paperboard average net selling price decreased 5% to 1,185 per ton for the first six months of 2025, compared to$1,244 per ton in the first six months of 2024.
COMPANY OUTLOOK
“As the industry continues to experience an oversupply position, we remain focused on what is within our control, namely strong operational execution, reducing our fixed costs, and maintaining share with our customers. These actions will continue to help us navigate this industry down cycle and position us well for a recovery,” concluded Kitch.
WEBCAST INFORMATION
ABOUT
USE OF NON-GAAP MEASURES
In this press release, the company presents certain non-GAAP financial information for the second quarter and first six months of 2025 and 2024, including Adjusted EBITDA. Because these amounts are not in accordance with GAAP, reconciliations to net income as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP metrics because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses Adjusted EBITDA: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to Adjusted EBITDA to measure the company's compliance with certain covenants.
FORWARD-LOOKING STATEMENTS
This press release contains certain “forward-looking” statements within the meaning of Section 27A of Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding: our outlook for the next quarter, our ability to continue realizing additional savings from our fixed cost reduction efforts during the remainder of 2026, our focus on operational execution amid challenging SBS industry conditions and our emphasis on maintaining strategic actions and customer relationships to navigate the industry down cycle. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. The company’s actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this press release. Factors that could cause or contribute to such material differences in actual results include, but are not limited to: there may be unexpected costs, charges or expenses resulting from the tissue business sale transaction, including purchase price adjustments; competitive responses to the tissue business sale transaction; achievement of anticipated financial results and other benefits of the tissue business sale transaction; potential risks associated with operating without the tissue business, including less diversification in products offered; changes in the company’s capital structure; risks relating to the achievement of anticipated financial results and other benefits of the
|
|
|||||||||||||
|
Consolidated Statements of Operations |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|||||||||
|
|
Quarter Ended |
|
Six Months Ended |
||||||||||
|
(In millions, except per-share data) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|
Net sales |
$ |
391.8 |
|
$ |
344.4 |
|
|
$ |
770.0 |
|
$ |
603.2 |
|
|
Costs and expenses: |
|
|
|
|
|
||||||||
|
Cost of sales |
|
348.8 |
|
|
346.4 |
|
|
|
690.3 |
|
|
571.9 |
|
|
Selling, general and administrative expenses |
|
26.1 |
|
|
30.3 |
|
|
|
55.0 |
|
|
58.4 |
|
|
Other operating charges, net 1 |
|
7.1 |
|
|
14.6 |
|
|
|
18.9 |
|
|
20.6 |
|
|
Total operating costs and expenses |
|
382.1 |
|
|
391.3 |
|
|
|
764.2 |
|
|
650.8 |
|
|
Income (loss) from continuing operations |
|
9.8 |
|
|
(46.9 |
) |
|
|
5.8 |
|
|
(47.6 |
) |
|
Interest expense, net |
|
(3.9 |
) |
|
(9.6 |
) |
|
|
(7.3 |
) |
|
(10.8 |
) |
|
Other non-operating income (expense) |
|
(0.3 |
) |
|
0.3 |
|
|
|
(0.6 |
) |
|
0.7 |
|
|
Total non-operating expense |
|
(4.2 |
) |
|
(9.3 |
) |
|
|
(7.9 |
) |
|
(10.1 |
) |
|
Income (loss) from continuing operations before income taxes |
|
5.5 |
|
|
(56.2 |
) |
|
|
(2.1 |
) |
|
(57.7 |
) |
|
Income tax provision (benefit) |
|
1.9 |
|
|
(14.6 |
) |
|
|
0.1 |
|
|
(14.1 |
) |
|
Income (loss) from continuing operations |
|
3.6 |
|
|
(41.6 |
) |
|
|
(2.3 |
) |
|
(43.7 |
) |
|
Income (loss) from discontinued operations, net of tax |
|
(0.9 |
) |
|
15.7 |
|
|
|
(1.3 |
) |
|
35.0 |
|
|
Net income (loss) |
$ |
2.7 |
|
$ |
(25.8 |
) |
|
$ |
(3.6 |
) |
$ |
(8.6 |
) |
|
|
|
|
|
|
|
||||||||
|
Net income (loss) per common share: |
|
|
|
|
|
||||||||
|
Income (loss) per share from continuing operations - basic |
$ |
0.22 |
|
$ |
(2.50 |
) |
|
$ |
(0.14 |
) |
$ |
(2.62 |
) |
|
Income (loss) per share from discontinued operations - basic |
|
(0.06 |
) |
|
0.95 |
|
|
|
(0.08 |
) |
|
2.10 |
|
|
Net income (loss) per share - basic |
|
0.17 |
|
$ |
(1.55 |
) |
|
|
(0.22 |
) |
$ |
(0.52 |
) |
|
|
|
|
|
|
|
||||||||
|
Income (loss) per share from continuing operations - diluted |
|
0.22 |
|
|
(2.50 |
) |
|
|
(0.14 |
) |
|
(2.62 |
) |
|
Income (loss) per share from discontinued operations - diluted |
|
(0.06 |
) |
|
0.95 |
|
|
|
(0.08 |
) |
|
2.10 |
|
|
Net income (loss) per share - diluted |
$ |
0.17 |
|
$ |
(1.55 |
) |
|
$ |
(0.22 |
) |
$ |
(0.52 |
) |
|
|
|
|
|
|
|
||||||||
|
Average shares outstanding (in thousands): |
|
|
|
||||||||||
|
Basic |
|
16,220 |
|
|
16,661 |
|
|
|
16,297 |
|
|
16,634 |
|
|
Diluted |
|
16,241 |
|
|
16,661 |
|
|
|
16,297 |
|
|
16,634 |
|
|
1 Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 12 within |
|
|
||||||
|
Condensed Consolidated Balance Sheets |
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|
(Unaudited) |
||||||
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||||
|
(In millions) |
|
|
||||
|
Assets |
|
|
||||
|
Current assets: |
|
|
||||
|
Cash and cash equivalents |
$ |
46.7 |
|
$ |
79.6 |
|
|
Receivables, net |
|
165.9 |
|
|
188.7 |
|
|
Inventories, net |
|
283.9 |
|
|
258.0 |
|
|
Other current assets |
|
13.7 |
|
|
19.1 |
|
|
Total current assets |
|
510.1 |
|
|
545.4 |
|
|
Property, plant and equipment |
|
2,369.8 |
|
|
2,328.4 |
|
|
Accumulated depreciation and amortization |
|
(1,342.7 |
) |
|
(1,305.4 |
) |
|
|
|
1,027.1 |
|
|
1,023.1 |
|
|
|
|
51.2 |
|
|
52.9 |
|
|
Other assets, net |
|
52.4 |
|
|
57.9 |
|
|
Total assets |
$ |
1,640.7 |
|
$ |
1,679.2 |
|
|
|
|
|
||||
|
Liabilities and stockholders' equity |
|
|
||||
|
Current liabilities: |
|
|
||||
|
Current portion of long-term debt |
$ |
0.6 |
|
$ |
0.6 |
|
|
Accounts payable and accrued liabilities |
|
258.5 |
|
|
319.7 |
|
|
Total current liabilities |
|
259.1 |
|
|
320.4 |
|
|
Long-term debt |
|
328.5 |
|
|
281.6 |
|
|
Liability for pension and other postretirement employee benefits |
|
51.9 |
|
|
52.5 |
|
|
Deferred tax liabilities and other long-term obligations |
|
164.6 |
|
|
170.2 |
|
|
Total liabilities |
|
804.0 |
|
|
824.7 |
|
|
|
|
|
||||
|
Stockholders' equity: |
|
|
||||
|
Common stock |
|
— |
|
|
— |
|
|
Additional paid-in capital |
|
6.5 |
|
|
11.5 |
|
|
|
|
(12.7 |
) |
|
(3.3 |
) |
|
Retained earnings |
|
877.3 |
|
|
880.8 |
|
|
Accumulated other comprehensive loss, net of tax |
|
(34.4 |
) |
|
(34.5 |
) |
|
Total stockholders' equity |
|
836.7 |
|
|
854.6 |
|
|
Total liabilities and stockholders' equity |
$ |
1,640.7 |
|
$ |
1,679.2 |
|
|
|
|||||||||||||
|
Consolidated Statements of Cash Flows |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
|
Quarter Ended |
|
Six Months Ended |
||||||||||
|
(In millions) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|
Operating activities |
|
|
|
|
|
||||||||
|
Net income (loss) |
$ |
2.7 |
|
$ |
(25.8 |
) |
|
$ |
(3.6 |
) |
$ |
(8.6 |
) |
|
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: |
|
|
|
|
|
||||||||
|
Depreciation and amortization |
|
23.0 |
|
|
30.9 |
|
|
|
45.0 |
|
|
54.1 |
|
|
Equity-based compensation expense |
|
2.5 |
|
|
4.7 |
|
|
|
3.5 |
|
|
8.1 |
|
|
Deferred taxes |
|
1.7 |
|
|
(3.5 |
) |
|
|
(0.6 |
) |
|
(5.1 |
) |
|
Defined benefit pension and other postretirement employee benefits |
|
(0.1 |
) |
|
(0.8 |
) |
|
|
(0.2 |
) |
|
(1.7 |
) |
|
Amortization of deferred debt costs |
|
0.6 |
|
|
0.7 |
|
|
|
1.1 |
|
|
1.1 |
|
|
Loss on sale or impairment associated with assets |
|
3.0 |
|
|
0.7 |
|
|
|
3.1 |
|
|
0.8 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
||||||||
|
(Increase) decrease in accounts receivable |
|
11.5 |
|
|
(65.6 |
) |
|
|
22.6 |
|
|
(57.8 |
) |
|
(Increase) decrease in inventories |
|
(26.2 |
) |
|
9.2 |
|
|
|
(25.3 |
) |
|
1.0 |
|
|
Decrease in other current assets |
|
4.0 |
|
|
2.3 |
|
|
|
4.2 |
|
|
— |
|
|
Increase (decrease) in accounts payable and accrued liabilities |
|
(52.4 |
) |
|
69.4 |
|
|
|
(76.4 |
) |
|
89.9 |
|
|
Other, net |
|
1.6 |
|
|
(1.2 |
) |
|
|
(0.1 |
) |
|
(1.5 |
) |
|
Net cash flows provided by (used in) operating activities |
|
(28.2 |
) |
|
21.1 |
|
|
|
(26.7 |
) |
|
80.3 |
|
|
Investing activities |
|
|
|
|
|
||||||||
|
Additions to property, plant and equipment, net |
|
(22.9 |
) |
|
(18.1 |
) |
|
|
(55.6 |
) |
|
(36.6 |
) |
|
Acquisition of business |
|
— |
|
|
(708.2 |
) |
|
|
— |
|
|
(708.2 |
) |
|
Net cash flows used in investing activities |
|
(22.9 |
) |
|
(726.3 |
) |
|
|
(55.6 |
) |
|
(744.8 |
) |
|
Financing activities |
|
|
|
|
|
||||||||
|
Borrowings on long-term debt |
|
65.0 |
|
|
726.7 |
|
|
|
65.0 |
|
|
723.5 |
|
|
Repayments of long-term debt |
|
(18.2 |
) |
|
(30.3 |
) |
|
|
(18.3 |
) |
|
(50.5 |
) |
|
Repurchases of common stock |
|
(4.2 |
) |
|
(3.0 |
) |
|
|
(15.1 |
) |
|
(3.5 |
) |
|
Payments of debt issuance costs |
|
— |
|
|
(4.1 |
) |
|
|
— |
|
|
(4.5 |
) |
|
Other, net |
|
11.2 |
|
|
0.2 |
|
|
|
17.8 |
|
|
(2.9 |
) |
|
Net cash flows provided by financing activities |
|
53.7 |
|
|
689.6 |
|
|
|
49.3 |
|
|
662.1 |
|
|
|
|
|
|
|
|
||||||||
|
Increase (decrease) in cash, cash equivalents |
|
2.6 |
|
|
(15.6 |
) |
|
|
(33.0 |
) |
|
(2.4 |
) |
|
Cash and cash equivalents at beginning of period |
|
44.0 |
|
|
55.2 |
|
|
|
79.6 |
|
|
42.0 |
|
|
Cash and cash equivalents at end of period |
$ |
46.7 |
|
$ |
39.6 |
|
|
$ |
46.7 |
|
$ |
39.6 |
|
|
|
|||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||
|
Adjusted EBITDA |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
|
|
|
|
||||||||||
|
|
Quarter Ended |
|
Six Months Ended |
||||||||||
|
(In millions) |
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|
Net income (loss) |
$ |
2.7 |
|
$ |
(25.8 |
) |
|
$ |
(3.6 |
) |
$ |
(8.6 |
) |
|
Add (deduct): |
|
|
|
|
|
||||||||
|
Less: income (loss) from discontinued operations, net of tax |
|
(0.9 |
) |
|
15.7 |
|
|
|
(1.3 |
) |
|
35.0 |
|
|
Income (loss) from continuing operations |
|
3.6 |
|
|
(41.6 |
) |
|
|
(2.3 |
) |
|
(43.7 |
) |
|
Income tax provision (benefit) |
|
1.9 |
|
|
(14.6 |
) |
|
|
0.1 |
|
|
(14.1 |
) |
|
Interest expense, net |
|
3.9 |
|
|
9.6 |
|
|
|
7.3 |
|
|
10.8 |
|
|
Depreciation and amortization |
|
23.0 |
|
|
17.0 |
|
|
|
45.0 |
|
|
25.9 |
|
|
Inventory revaluation on acquired business |
|
— |
|
|
6.8 |
|
|
|
— |
|
|
6.8 |
|
|
Other operating charges, net 1 |
|
7.1 |
|
|
14.6 |
|
|
|
18.9 |
|
|
20.6 |
|
|
Other non-operating expense (income) |
|
0.3 |
|
|
(0.3 |
) |
|
|
0.6 |
|
|
(0.7 |
) |
|
Adjusted EBITDA from continuing operations |
$ |
39.9 |
|
$ |
(8.6 |
) |
|
$ |
69.6 |
|
$ |
5.6 |
|
|
1 Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 12 within |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250729972663/en/
Investors contact:
509-344-5906
investorinfo@clearwaterpaper.com
News media:
509-344-5967
Virginia.aulin@clearwaterpaper.com
Source:
