Clearwater Paper Corporation Announces Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Tax Rate and Capital Expenditures Guidance for the Year 2014; Reports Impairment of Assets for the Third Quarter Ended September 30, 2014
Oct 22 14
Clearwater Paper Corporation announced unaudited consolidated financial results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported net sales of $511,142,000 against $487,845,000 a year ago. Income from operations was $43,978,000 against $18,842,000 a year ago. Earnings before income taxes were $9,988,000 against $8,134,000 a year ago. Net earnings were $6,253,000 or $0.31 per diluted share against $13,317,000 or $0.60 per diluted share a year ago. Adjusted EBITDA was $71,961,000 against $43,100,000 a year ago. Adjusted net earnings were $25,695,000 or $1.28 per diluted share against $6,436,000 or $0.29 per diluted share a year ago. The increase in EBITDA and Adjusted EBITDA was due primarily to strong paperboard markets and pricing as well as increased contribution from the company's through-air-dried, or TAD, expansion. EBITDA was $66,271,000 against $41,022,000 a year ago. Capital expenditures were $26,000,000 in the third quarter. Adjusted operating income was $50,000,000. During the third quarter, the company generated $7,000,000 of cash from operating activities or 1% of net sales, down from 12% in second quarter of 2014 and well below its cash flow model of 11% to 13%. Operating cash flow in the third quarter was impacted by the $19,000,000 make whole payment, a seasonal inventory build in pull plugs and some opportunistic spot buys of hardwood pulp and then timing of receivable collections.
For the nine months, the company reported net sales of $1,494,821,000 against $1,419,671,000 a year ago. Income from operations was $97,579,000 against $61,039,000 a year ago. Earnings before income taxes were $42,167,000 against $11,197,000 a year ago. Net earnings were $24,932,000 or $1.21 per diluted share against $24,093,000 or $1.07 per diluted share a year ago. Net cash flows from operating activities were $101,931,000 against $91,540,000 a year ago. Additions to plant and equipment were $54,029,000 against $54,400,000 a year ago. Adjusted EBITDA was $183,988,000 against $134,228,000 a year ago. Adjusted net earnings were $54,850,000 or $2.66 per diluted share against $20,458,000 or $0.91 per diluted share a year ago. EBITDA was $164,118,000 against $128,623,000 a year ago.
For the third quarter ended September 30, 2014, the company reported impairment of assets of $890,000.
The company expects its annual GAAP and adjusted tax rate to be approximately 38% for 2014. Capital expenditures are now expected to total approximately $95 million in 2014. That is up from prior outlook of $78 million as it is accelerating action on warehousing, converting and distribution efficiencies and other optimization-related activities.