Clearwater Paper Corporation (NYSE:CLW), a premier supplier of quality consumer tissue and bleached paperboard today reported financial results for the fourth quarter and year ended December 31, 2021.
2021 FOURTH QUARTER HIGHLIGHTS
*Delivered solid performance due to continued strength in the paperboard business
*Managed through increased COVID related absences, supply chain disruptions and weather impacts
*Achieved net income of $10 million, or $0.56 per diluted share and Adjusted EBITDA of $56 million
*Net sales of $490 million, up 8% compared to the fourth quarter of 2020
*Net debt reduction of $37 million
2021 FULL YEAR HIGHLIGHTS
*Delivered strong performance due to robust demand for paperboard products and solid operational execution
*Net loss of $28 million, which includes an after-tax loss of $38 million associated with the closure of Neenah, Wisconsin tissue facility
*Adjusted EBITDA of $175 million
*Net sales of $1.8 billion
*Net debt reduction of $69 million
“Our performance was at the high end of our expectations with strong paperboard sales and greater stability in tissue demand,” said Arsen Kitch, president and chief executive officer. “Our paperboard business reported strong Adjusted EBITDA with increased pricing and sales volume. Tissue demand stabilized, and we are implementing previously announced price increases. Our continued focus on operating efficiencies, combined with higher pricing, is helping offset some of the significant cost inflation that we are experiencing in both of our businesses.”
OVERALL RESULTS
For the fourth quarter of 2021, Clearwater Paper reported net sales of $490 million, an 8% increase compared to net sales of $453 million reported in the fourth quarter of 2020. Net income for the fourth quarter of 2021 was $10 million, or $0.56 per diluted share, compared to net income in the fourth quarter of 2020 of $23 million, or $1.34 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the fourth quarter of 2021 of $14 million, or $0.82 per diluted share, compared to fourth quarter 2020 adjusted net income of $25 million, or $1.45 per diluted share. Adjusted EBITDA for the quarter was $56 million compared to the fourth quarter of 2020 Adjusted EBITDA of $72 million.
For the full year 2021, Clearwater Paper reported net sales of $1.8 billion, a 5% decrease compared to net sales of $1.9 billion for 2020. Net loss for the full year was $28 million in 2021, or $1.67 per diluted share, compared to a net income for 2020 of $77 million or $4.61 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income for 2021 of $17 million, or $1.03 per diluted share, compared to 2020 adjusted net income of $89 million, or $5.30 per diluted share. Adjusted EBITDA for 2021 was $175 million, compared to 2020 Adjusted EBITDA of $283 million.
Pulp and Paperboard Segment
Net sales in the Pulp and Paperboard segment were $261 million for the fourth quarter of 2021, up 19% compared to fourth quarter 2020 net sales of $220 million. Segment operating income for the fourth quarter of 2021 was $53 million compared to $34 million for the fourth quarter of 2020. Adjusted EBITDA for the segment was $62 million in the fourth quarter of 2021, compared to $43 million in the fourth quarter of 2020. The increase in operating income and Adjusted EBITDA was driven by higher sales prices which were partially offset by inflation.
Net sales in the Pulp and Paperboard segment were $946 million for 2021, an increase of 8% compared to 2020 net sales of $877 million. Segment operating income for 2021 was $126 million compared to $125 million for 2020. Adjusted EBITDA for the segment was $161 million for 2021, compared to $161 million for 2020. The operating income and Adjusted EBITDA for the year was essentially flat as the higher sales prices were offset by higher maintenance outage costs and inflation.
Net sales in the Consumer Products segment were $232 million for the fourth quarter of 2021, down 3% compared to the fourth quarter 2020 net sales of $239 million. In the fourth quarter of 2021, retail converted case shipments were 12.4 million cases, a decrease of 8% compared to the 13.5 million cases shipped in the fourth quarter of 2020. Segment operating loss for the fourth quarter of 2021 was $8 million compared to operating income of $28 million in the fourth quarter of 2020. Adjusted EBITDA for the segment was $8 million in the fourth quarter of 2021, down from $45 million in the fourth quarter of 2020. The decrease in operating income and Adjusted EBITDA was driven by lower sales volumes and higher input costs, primarily pulp and transportation.
Net sales in the Consumer Products segment were $835 million for the full year 2021, down 18% compared to 2020 net sales of $1,018 million. For 2021, retail converted case shipments were 46 million cases, a decrease of 21% compared to 58 million cases shipped for 2020. Segment operating income for 2021 was $4 million, compared to operating income of $111 million for 2020. Adjusted EBITDA for the segment was $69 million for 2021, down from $179 million for 2020. The decrease in operating income and Adjusted EBITDA was driven by lower sales volumes and higher input costs, primarily pulp and transportation.
https://ir.clearwaterpaper.com/investors/press-releases/news-details/2022/Clearwater-Paper-Reports-Fourth-Quarter-and-Year-End-2021-Results/default.aspx