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Clearwater Paper Reports Fourth Quarter and Year End 2022 Results
Clearwater Paper Corporation has reported financial results for the fourth quarter and year ended December 31, 2022. 2022 FOURTH QUARTER HIGHLIGHTS Operational and weather-related issues impacted paperboard operations
2022 FULL YEAR HIGHLIGHTS
“We had a very good year, with strong results in paperboard and improvements in tissue. We continued to reduce net debt and improved our overall financial flexibility,” said Arsen Kitch, president and chief executive officer. “During the fourth quarter, we were impacted by operational and weather-related issues, which have subsequently been resolved.” OVERALL RESULTS For the fourth quarter of 2022, Clearwater Paper reported net sales of $527 million, an 8 percent increase compared to net sales of $490 million reported in the fourth quarter of 2021. Net loss for the fourth quarter of 2022 was $6 million, or $0.34 per diluted share, compared to net income in the fourth quarter of 2021 of $10 million, or $0.56 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net loss in the fourth quarter of 2022 of $5 million, or $0.30 per diluted share, compared to fourth quarter 2021 adjusted net income of $14 million, or $0.82 per diluted share. Adjusted EBITDA for the quarter was $28 million compared to the fourth quarter of 2021 Adjusted EBITDA of $56 million. For the full year 2022, Clearwater Paper reported net sales of $2.1 billion, a 17 percent increase compared to net sales of $1.8 billion for 2021. Net income for the full year was $46 million or $2.68 per diluted share, compared to a net loss for 2021 of $28 million or $1.67 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income for 2022 of $62 million, or $3.63 per diluted share, compared to 2021 adjusted net income of $17 million, or $1.03 per diluted share. Adjusted EBITDA for 2022 was $227 million, compared to 2021 Adjusted EBITDA of $175 million. Pulp and Paperboard Segment Net sales in the Pulp and Paperboard segment were $274 million for the fourth quarter of 2022, up 5 percent compared to fourth quarter 2021 net sales of $261 million. Segment operating income for the fourth quarter of 2022 was $18 million compared to $53 million for the fourth quarter of 2021. Adjusted EBITDA for the segment was $27 million in the fourth quarter of 2022, compared to $62 million in the fourth quarter of 2021. The decrease in operating income and Adjusted EBITDA was driven by planned major maintenance at our Lewiston, Idaho facility, operational issues at both mills and a weather event at our Cypress Bend, Arkansas facility, and higher input costs specifically related to chemicals and energy, partially offset by higher sales prices. Net sales in the Pulp and Paperboard segment were $1.1 billion for 2022, an increase of 20 percent compared to 2021 net sales of $946 million. Segment operating income for 2022 was $183 million compared to $126 million for 2021. Adjusted EBITDA for the segment was $220 million for 2022, compared to $161 million for 2021. The increase in operating income and Adjusted EBITDA was driven by higher sales prices, partly offset by higher input costs specifically related to fiber, chemicals, freight and energy and higher outage costs as well as operational issues. Pulp and Paperboard Sales Volumes and Prices: Paperboard sales volumes were 188,999 tons in the fourth quarter of 2022, a decrease of 11 percent compared to 211,503 tons in the fourth quarter of 2021. Paperboard sales volumes were 814,556 tons for the year ended 2022 compared to 822,206 tons for the year ended 2021. Paperboard average net selling price increased 23 percent to $1,429 per ton for the fourth quarter of 2022, compared to $1,164 per ton in the fourth quarter of 2021. Paperboard average net selling price increased 25 percent to $1,356 per ton for the year ended 2022, compared to $1,088 per ton for the year ended 2021. Consumer Products Segment: Net sales in the Consumer Products segment were $254 million for the fourth quarter of 2022, up 10 percent compared to the fourth quarter 2021 net sales of $232 million. In the fourth quarter of 2022, retail converted case shipments were 13.0 million cases, an increase of 5 percent compared to the 12.4 million cases shipped in the fourth quarter of 2021. Segment operating income for the fourth quarter of 2022 was $2 million compared to operating loss of $8 million in the fourth quarter of 2021. Adjusted EBITDA for the segment was $18 million in the fourth quarter of 2022, up from $8 million in the fourth quarter of 2021. The increase in operating income and Adjusted EBITDA was driven by higher sales prices and volumes partially offset by higher input costs, primarily pulp and energy, along with general inflation for other input costs. Net sales in the Consumer Products segment were $950 million for the full year 2022, up 14 percent compared to 2021 net sales of $835 million. For 2022, retail converted case shipments were 50 million cases, an increase of 10 percent compared to 46 million cases shipped for 2021. Segment operating income for 2022 was $11 million, compared to operating income of $4 million for 2021. Adjusted EBITDA for the segment was $74 million for 2022, an increase from $69 million for 2021. The increase in operating income and Adjusted EBITDA was driven by higher sales prices and increased volume partially offset by higher input costs, primarily related to pulp, energy and freight. Retail Tissue Sales Volumes and Prices: Retail tissue volumes sold were 80,766 tons in the fourth quarter of 2022, a increase of 2 percent compared to 79,491 tons in the fourth quarter of 2021. Retail tissue volumes sold were 309,735 tons for the year ended of 2022, an increase of 8 percent compared to 287,987 tons for 2021. Retail tissue average net selling prices increased 9 percent to $3,095 per ton in the fourth quarter of 2022, compared to $2,831 per ton in the fourth quarter of 2021. Retail tissue average net selling prices increased 9 percent to $3,010 per ton for 2022, compared to $2,771 per ton for 2021. COMPANY OUTLOOK “Our focus in 2023 is on improving our operational performance while continuing to generate strong free cash flows,” said Arsen Kitch, president and chief executive officer. “Our businesses have proven to be economically resilient, and we are well positioned to deliver strong results this year.” |
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