The company reported net sales of $428.7 million for the fourth quarter of 2018, which was $8.0 million or 1.8% lower than net sales of $436.7 million for the fourth quarter of 2017. The decrease was primarily due to the sale of the company's mill in Ladysmith, Wisconsin in August 2018 and lower tissue shipments, partially offset by higher paperboard shipments and pricing. Net loss determined in accordance with generally accepted accounting principles, or GAAP, for the fourth quarter of 2018 was $187.8 million, or $11.39 loss per diluted share, compared to net earnings for the fourth quarter of 2017 of $80.9 million, or $4.88 per diluted share, which included a $70 million tax benefit related to the 2017 tax law changes. The net loss included a $195.1 million non-cash goodwill impairment charge related to the consumer products business taken in the fourth quarter of 2018. The impairment charge relates to the goodwill arising out of the company's acquisition of Cellu Tissue Holdings, Inc. in 2010 and will not result in any cash expenditures or affect the company's cash position, cash flow from operating activities, liquidity position or availability under its credit facilities. Click Read More below for additional detail.
Nekoosa, comprised of Nekoosa Coated Products, RTape Corp, and CET Films, announced today the acquisition of Catalina Graphic Films, effective as of March 1, 2018.
Catalina Graphic Films, headquartered in Calabasas, CA with manufacturing facilities in Chicago, IL and Las Vegas, NV, is a leading manufacturer of pressure sensitive products used primarily for printed retail point of purchase advertising and promotion. Nekoosa is making the acquisition to support expanded manufacturing capability, product portfolio expansion, and a national manufacturing footprint.
“Nekoosa is proud to combine its 50 year legacy with the equal 50 year family legacy of Catalina Graphic Films, and create a truly special business that can service our customers with an incredibly broad portfolio of products, services, and capabilities,” said Paul Charapata, CEO of Nekoosa. “I am thankful for the strong support from Sentinel Capital Partners, as we are completing our first acquisition together just four short months into our partnership. This is a win for our employees and customers as we continue to live by our mission of consistently making new and exciting things happen for our business.”
Jeff and Alan Dworman, second generation owners of Catalina Graphic Films, will continue to work with the business to support the integration efforts and help drive growth for the combined organization. “We are thrilled to be partnered with Nekoosa, and are excited to help unlock the growth potential in the combined businesses,” said Jeff Dworman, CEO of Catalina Graphic Films.
“This acquisition is an exciting first step in our partnership with Nekoosa,” said Scott Perry, a partner at Sentinel. “Nekoosa is a leader in the markets they serve, and acquiring Catalina Graphic Films is a natural step towards expanding its leadership position.”