2023 Fourth Quarter Highlights
*Strong performance driven by solid operational results and continued strength in tissue
*Natural gas disruption impacted Lewiston mill operations in November
*Net income of $18 million, or $1.04 per diluted share and Adjusted EBITDA of $63 million
*Net sales of $513 million, down 3% compared to the fourth quarter of 2022
*Reduced net debt by $32 million, repurchased $3 million of outstanding shares, with $7 million remaining under program
2023 Full Year Highlights
*Outstanding year driven by performance improvement in tissue
*Net income of $108 million, or $6.30 per diluted share and Adjusted EBITDA of $281 million, up $54 million versus 2022
*Net sales of $2.1 billion, flat compared with 2022, strong tissue demand offset softness in paperboard
*Net debt reduction of $89 million, more than $450 million since 2020; completed refinancing of 2014 Notes
*Repurchased $18 million of outstanding shares
Clearwater Paper announced today that it has signed a definitive agreement to acquire from Graphic Packaging its Augusta, Georgia bleached paperboard manufacturing facility for $700 million, subject to customary adjustments. The facility is a well-invested site with approximately 600 thousand tons of bleached paperboard annual capacity. Clearwater Paper expects this acquisition to contribute $140-150 million1 in Adjusted EBITDA annually by the end of 2026, including through volume and cost synergies. The transaction is subject to regulatory approvals and other customary conditions and is currently expected to close in the second quarter of 2024.
“We had a great year, driven by a significant improvement in our tissue margins and strong operational execution across both businesses. Tissue demand remained strong, and we benefited from favorable input costs. Paperboard demand was soft, but our team did a great job of balancing supply with demand to manage inventories,” said Arsen Kitch, president and chief executive officer. “We maintained our focus on cash flow generation, and have reduced our net debt by more than $450 million since 2020.”
For the fourth quarter of 2023, Clearwater Paper reported net sales of $513 million, a 3% decrease compared to net sales of $527 million reported in the fourth quarter of 2022. Net income for the fourth quarter of 2023 was $18 million, or $1.04 per diluted share, compared to a net loss in the fourth quarter of 2022 of $6 million, or $0.34 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the fourth quarter of 2023 of $23 million, or $1.35 per diluted share, compared to fourth quarter 2022 adjusted net loss of $5 million, or $0.30 per diluted share. Adjusted EBITDA for the quarter was $63 million compared to the fourth quarter of 2022 Adjusted EBITDA of $28 million.
more at: https://ir.clearwaterpaper.com/investors/press-releases/news-details/2024/Clearwater-Paper-Reports-Fourth-Quarter-and-Year-End-2023-Results-Strategic-Update/default.aspx