Clearwater Paper 2Q 2020 Results: Sales up 6.3 percent to $480.5 Million

Clearwater Paper has reported financial results for the second quarter and first six months of 2020. "We continue to remain focused on two priorities – the health and safety of our employees and continuing to safely operate our facilities to meet the needs of our customers,” said Arsen Kitch, president and CEO. “In the second quarter, we achieved a quarterly record Adjusted EBITDA due to elevated demand and production in tissue, stable paperboard performance and lower input costs, which resulted in strong free cash flow used to reduce our net debt.”

For the second quarter of 2020, Clearwater Paper reported net sales of $480 million, a 6 percent increase compared with net sales of $452 million for the second quarter of 2019. Net income for the second quarter of 2020 was $23 million compared with net loss for the second quarter of 2019 of $0.4 million.

For the first six months of 2020, Clearwater Paper reported net sales of $958 million, a 9 percent increase compared to net sales of $881 million for the first six months of 2019. Net income for the first six months of 2020 was $33 million compared with net income for the first six months of 2019 of $3 million.

Net sales in the Consumer Products segment were $275 million for the second quarter of 2020, up 23 percent compared with the second quarter 2019 net sales of $224 million. In the second quarter of 2020, converted case shipments reached 16.0 million cases, an increase of 28 percent compared to 12.5 million cases shipped in the second quarter of 2019. Segment operating income for the second quarter of 2020 was $37 million compared to operating loss of $5 million in the second quarter of 2019.

Net sales in the Consumer Products segment were $541 million for the first six months of 2020, up 21 percent compared with the first six months 2019 net sales of $448 million. In the first six months of 2020, converted case shipments reached 31.2 million cases, an increase of 26 percent compared to 24.8 million cases shipped in the first six months of 2019. Segment operating income for the first six months of 2020 was $51 million, compared to operating loss of $4 million in the first six months of 2019.

Total tissue volumes sold were 101,244 tons in the second quarter of 2020, an increase of 22 percent compared with 82,798 tons in the second quarter of 2019. Retail volumes represented 94 percent of total volumes sold in the second quarter of 2020, an increase from 92% in the second quarter of 2019. Total tissue volumes sold were 201,037 tons in the first six months of 2020, an increase of 21 percent compared with 166,420 tons in the first six months of 2019. Retail volumes represented 93 percent of total volumes sold in the first six months of 2020, an increase from 90 percent in the first six months of 2019.

"For the upcoming quarter, our primary focus will remain the health and safety of our employees while we continue to operate our facilities and service customers. Demand for tissue products is expected to remain at elevated levels due to COVID-19 but slowly normalize as retail in-stock conditions and inventories continue to improve. We are also closely monitoring economic conditions and assessing the impact on our business for the balance of the year,” Kitch concluded.

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