SPOKANE, Wash.-- Clearwater Paper Corporation (NYSE:CLW), a premier supplier of quality tissue and bleached paperboard products, today reported financial results for the third quarter and nine months ended September 30, 2022.
THIRD QUARTER HIGHLIGHTS
- Delivered strong performance in the quarter, with price realization helping offset inflation
- Net sales of $539 million, up 20% compared to the third quarter of last year
- Net income of $21 million, or $1.21 per diluted share
- Adjusted EBITDA of $77 million
- Continued to reduce net debt, with nearly $106 million reduced year to date
"We had an excellent third quarter, which exceeded our expectations with strong volumes, pricing and operational performance,” said Arsen Kitch, president and chief executive officer. “While paperboard demand and pricing remained strong, our tissue performance continued to improve with higher pricing helping to offset the impact of inflation.”
OVERALL RESULTS
For the third quarter of 2022, Clearwater Paper reported net sales of $539 million, a 20% increase compared to net sales of $450 million for the third quarter of 2021. Net income for the third quarter of 2022 was $21 million, or $1.21 per diluted share, compared to net income for the third quarter of 2021 of $2 million, or $0.11 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the third quarter of 2022 of $31 million, or $1.83 per diluted share, compared to third quarter 2021 adjusted net income of $9 million, or $0.55 per diluted share. Adjusted EBITDA for the quarter was $77 million, compared to the third quarter of 2021 Adjusted EBITDA of $50 million.
For the first nine months of 2022, Clearwater Paper reported net sales of $1.6 billion, a 21% increase compared to net sales of $1.3 billion for the first nine months of 2021. Net income for the first nine months of 2022 was $52 million, or $3.04 per diluted share, compared to net loss for the first nine months of 2021 of $38 million, or $2.25 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the first nine months of 2022 of $68 million, or $3.96 per diluted share, compared to first nine months of 2021 adjusted net income of $3 million, or $0.19 per diluted share. Adjusted EBITDA for the first nine months was $199 million, compared to the first nine months of 2021 Adjusted EBITDA of $119 million.
Impacting the first nine months of 2021, Clearwater Paper incurred impairment and other closure costs associated with the closure of the company's Neenah, Wisconsin facility of $47.1 million and as well as planned major maintenance at its paperboard facilities.
Pulp and Paperboard Products Segment
Net sales in the Pulp and Paperboard Products segment were $301 million for the third quarter of 2022, up 27% compared to third quarter 2021 net sales of $237 million. Segment operating income for the third quarter of 2022 was $64 million, compared to $35 million for the third quarter of 2021. Adjusted EBITDA for the segment was $73 million in the third quarter of 2022, compared to $43 million in the third quarter of 2021.
Net sales in the Pulp and Paperboard Products segment were $863 million for the first nine months of 2022, up 26% compared to net sales of $685 million in the first nine months of 2021. Segment operating income for the first nine months of 2022 was $166 million, compared to $73 million for the first nine months of 2021. Adjusted EBITDA for the segment was $194 million in the first nine months of 2022, compared to $99 million in the first nine months of 2021.
For both periods in 2022, the increase in operating income and Adjusted EBITDA was driven by higher sales prices and the absence of planned major maintenance, partly offset by higher input costs specifically related to chemicals, freight and energy.
Paperboard Sales Volumes and Prices:
- Paperboard sales volumes were 208,298 tons in the third quarter of 2022 compared to 203,439 tons in the third quarter of 2021. Paperboard sales volumes were 625,557 tons in the first nine months of 2022 compared to 610,702 tons in the first nine months of 2021.
- Paperboard average net selling price increased 28% to $1,405 per ton for the third quarter of 2022, compared to $1,102 per ton in the third quarter of 2021. Paperboard average net selling price increased 26% to $1,334 per ton for the first nine months of 2022, compared to $1,062 per ton in the first nine months of 2021.
Source: Clearwater Paper
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