Attached files
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| 8-K - FORM 8-K - Clearwater Paper Corp | d408909d8k.htm |
 Clearwater Paper Corporation
September 2012
Exhibit 99.1 |
 1
Forward-Looking Statements
•
•
difficulties with the integration process or the realization of the benefits
expected from our acquisition of Cellu Tissue; •
changes in raw material and energy costs, including changes in the cost and
availability of wood fiber and wood pulp; •
changes in freight costs and disruptions in transportation services;
•
the loss of large customers;
•
customers' product preferences;
•
changes in the United States and international economies;
•
cyclical industry conditions and changes in manufacturing production;
•
competitive pricing pressure for the company's products;
•
unforeseen environmental liabilities or expenditures;
•
an inability to successfully implement our expansion strategies;
•
labor disruptions;
•
unanticipated manufacturing disruptions;
•
changes in general and industry-specific laws and regulations; and
•
reliance on a limited number of third-party suppliers of raw materials.
Forward-looking statements contained in this presentation present
management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward-
looking statements, whether as a result of new information, future events or
otherwise. This presentation contains, in addition to historical information, certain
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our strategies to grow our business, optimize profitability and
build a high performance culture, North American tissue and paperboard market demand, expected
tissue capacity increases, the expected delivery and budget relating to our new tissue machine and converting lines in Shelby,
North Carolina, expected future savings from cost synergies relating to our Cellu Tissue acquisition,
efficiency projects and reductions to our cost structure, future growth and market
opportunities, including in the Midwestern and Eastern U.S. regions and non-grocery channels, market segment dynamics, internal pulp production
and requirements, customer purchases of private label tissue, production capacity of operating
divisions and the expected benefit thereof, our capital allocation objectives, our EBITDA
margins, our planned expansion into other product types, our financial priorities, including plans to de-lever through EBITDA expansion and
revenue growth, our estimated Adjusted EBITDA run-rate, free cash flows, our implied enterprise
value, equity value and share price, sales volumes, input costs, and our financial condition
and results of operations. Words such as “anticipate,” “expect,” “intend,” “will,” “plan,” “goals,” “objectives,” “target,” “project,”
“believe,” “schedule,” “estimate,” “may,” and similar
expressions are intended to identify such forward-looking statements. These forward-looking statements are based on
management’s current expectations, estimates, assumptions and projections that are subject to
change. Our actual results of operations may differ materially from those expressed or implied
by the forward-looking statements contained in this presentation. Important factors that could cause or contribute to such differences
include the risk factors described in Item 1A of Part I of our Form 10-K for the year ended
December 31, 2011, as well as the following: difficulties with the completion of new tissue manufacturing and converting facilities, including the
completion of new through-air-dried paper machine; |
 Agenda
2
I.
Overview of Clearwater Paper II.
Clearwater Paper’s Value Proposition III.
Clearwater Paper’s Strategic Plan
|
 3
Overview of Clearwater Paper |
 4
•
We are a company formed in late 2008 with more than
60 years of operating history
•
Operate two business segments of similar size
–
Pulp and Paperboard: 43% of 2011 net sales
–
Consumer Products: 57% of 2011 net sales
•
Financial overview
–
LTM Net Sales: $1.9 billion
–
LTM
Adjusted
EBITDA
1
:
$213.8
million
–
2008
to
2011
Adjusted
EBITDA
1
CAGR:
38%
•
Approximately 3,900 employees
Introduction to Clearwater Paper
Note: LTM as of 30-Jun-2012
¹
See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to
the most comparable GAAP measure. |
 5
•
Lead private label quality
•
Expand geographically
•
Expand retail channel penetration
Our Strategy to Create Shareholder Value
•
Improve sales mix
•
Reduce costs
•
Continue to improve quality
•
Develop common culture
•
Drive for results
•
Attract and retain high performers
Optimize Profitability
of Paperboard
Business
Build a High
Performance
Culture
Grow our Tissue
Business |
 Overview of Consumer Tissue Division
6
Clearwater Paper is one of the largest North American manufacturers of private
label tissue, focused on high value
tissue
products
across
all
categories,
retail
channels
and
geographies
Key Products
Overview of Facilities
2011 U.S. Tissue Industry Retail Channel Mix²
2011 Clearwater Paper Retail Channel Mix²
Clearwater Paper Tissue
Converting
Clearwater Paper Tissue
Parent Roll
Tissue Production¹: 586,000 tons
Tissue Conversion¹: 489,000 tons
Source: Company estimates, IRI Infoscan
¹
Represents 2011 production and conversion volumes including
machine-glazed. ²
Retail channel share by dollar amount sold.
Grocery
71%
Mass +
Supercenter
16%
Drug
2%
Dollar
11%
Grocery
37%
Mass +
Supercenter
27%
Club
21%
Drug
7%
Dollar
4%
All Other
4% |
 7
Clearwater Paper is Well Positioned to Capitalize on Favorable
Tissue Market Dynamics
Stable Growth -
The tissue market has grown an average of 2% annually since 1996
Source:
U.S.
Tissue
demand
per
RISI,
U.S.
Population
per
U.S.
Census
Note: Projected U.S. Tissue Demand based on North American tissue demand estimates.
|
 8
Private Label Continues to Capture Market Share in Tissue
Source:
IRI
Infoscan
Clearwater Paper ranks as one of the largest North American private label tissue
manufacturers
2011 U.S. Retail Tissue
Industry Product Mix
13.6%
26.1%
18.0%
27.5%
22.0%
30.0%
29.9%
55.4%
Bath Tissue
Paper Towels
Facial Tissue
Napkins
Private Label Market Share of Total U.S.
Grocery, Drug, Mass (No Walmart) Channels
2003
2011
Bath Tissue
42%
Paper Towels
38%
Facial Tissue
10%
Napkins
10% |
 9
Significant Opportunity Still Exists for Clearwater Paper To Expand
Across the U.S. Private Label Market
Source: SymphonyIRI InfoScan, 52 Weeks Ending 22-Jul-2012. U.S.
Census •
Clearwater
Paper
led
the
development
of
private
label
tissue
in
the
Western
U.S.
•The
Company
is
focused
on
growing
the
private
label
category
and
market
share
in
the
Grocery
West
Midwest
East
Total
Equalized Case Volumes (mm)
37
53
88
178
% of U.S. Population
23%
34%
43%
100%
% Private Label (PL)
41%
26%
25%
28%
% Clearwater Paper of PL
96%
72%
36%
64%
Eastern
U.S.
•
If Clearwater could replicate its West model across the U.S.:
–39%
share
of
grocery
channel
in
Midwest
would
be
an
incremental
11
million
cases
–39%
share
of
grocery
channel
in
East
would
be
an
incremental
26
million
cases |
 10
Significant Opportunity Also Exists for Clearwater Paper to Expand
in Non-Grocery Channels
Source: SymphonyIRI InfoScan, 52 Weeks Ending 22-Jul-2012. U.S.
Census Note: Based on volume of equalized cases.
•
If Clearwater Paper could replicate its total U.S. grocery model
in the U.S.
Drug
and
Mass
channels,
an
18%
market
share
represents
an
incremental
8
million cases
U.S. Drug and Mass
(68mm cases, No Walmart)
Total U.S. Grocery
(178mm cases) |
 North American Market Demand Expected to Absorb Projected
Capacity Increases
11
Source: RISI and company estimates
Note: Projected capacity changes represents both virgin and recycled tissue capacity
changes. Please see Appendix for breakdown of specific projects reflected in the projected capacity changes.
(in thousands of short tons)
2011 Demand to Capacity
Ratio of 97%
2013E Demand to Capacity
Ratio of 97%
9,109
9,400
9,760
9,443
515
105
(260)
2011 Tissue
Demand
2011 Tissue
Capacity
Projected
New Capacity
Projected
Rebuild Capacity
Projected
Shutdown Capacity
Projected 2013
Tissue Capacity
Projected 2013
Tissue Demand
Healthy market dynamics remain intact |
 Overview of Pulp and Paperboard Division
12
Clearwater
Paper
ranks
as
one
of
the
top
five
largest
paperboard
manufacturers
in
North
America
Key Products
Overview of Facilities
2011E North American Bleached
Paperboard Production by Product Type²
2011E North American Bleached Paperboard
Production by Market Share
Pulp Production¹: 845,000 tons
Paperboard Production¹: 775,000 tons
Clearwater Paper Pulp
Clearwater Paper SBS
Source: Company estimates, RISI
¹
Represents 2011 production volumes.
²
Represents ~6.0 million tons.
International
Paper
26%
MeadWestvaco
22%
Georgia
Pacific
13%
Evergreen
Packaging
13%
Clearwater
Paper
11%
RockTenn
7%
Weyerhaeuser
5%
Tembec
Paperboard
3%
Folding
42%
Liquid
Packaging
20%
Cup
13%
Plate, Dish
and Tray
11%
Coated
Bristols
10%
All Other
4% |
 13
Paperboard Demand Remains Stable and Pricing Outlook is
Favorable in the U.S.
Source: RISI, Projected GDP growth estimates represent Bloomberg median
estimates as of 28-Aug-2012 ¹
Based on tons produced. Projections based on North American Packaging papers and
board demand estimates per RISI. ²
Average price per short ton of 16 pt. SBS folding carton C1S. Price estimates per
RISI. Bleached paperboard prices are expected to remain at attractive levels
through 2016 |
 14
Clearwater Paper’s
Value Proposition |
 Clearwater Paper Leads its Peer Groups in Value Creation…
15
Source: Bloomberg as of 28-Aug-2012
1
Small cap tissue peers include Cascades, Orchids, and Wausau.
²
Paperboard peers include International Paper, Graphic Packaging, Kapstone,
MeadWestvaco, RockTenn, Packaging Corp, and Sonoco. ³
Large cap consumer product peers include Kimberly-Clark and Procter &
Gamble. Note. Total Shareholder Return includes dividend reinvestment and
stock price performance. Spin Date
250%+ Total Return Since Spin-off
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
Dec-2008
Jul
-2009
Mar-2010
Oct-2010
May-2011
Jan
-2012
Aug
-2012
Clearwater Paper
Small Cap Tissue¹
Paperboard²
Large Cap Consumer³
S&P 500
258.3%
237.3%
84.7%
57.0%
75.9% |
 …Through a Proven Track Record of EBITDA Growth
16
($ in millions)
Source: RISI
1
See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to
the most comparable GAAP measure. LTM Adjusted EBITDA as of 30-Jun-2012.
²
Does not include amounts related to the Alternative Fuel Mixture Tax Credit, or
AFMTC. Adjusted EBITDA
1,2
•
We participate in the premier segments of the paper market: Bleached
Paperboard and Tissue
•
Strong integration across business groups creates synergistic value
2008
2009
2010
2011
LTM
$ 75
$ 174
$ 167
$ 196
$ 214 |
 …With Improving Margins
17
1
See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to
the most comparable GAAP measure. 2
Does not include amounts related to the AFMTC.
9.0%
10.6%
9.2%
11.8%
10.1%
14.0%
11.4%
9.8%
13.5%
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Adjusted EBITDA Margin
1, 2
Adjusted EBITDA Margin
Adj. EBITDA Margin Assuming No Planned Major Maintenance
$11.4mm
in
Planned Major
Maintenance
$3.1mm
in
Maintenance
$15.5mm
in
Maintenance
Planned Major
Planned Major |
 …And Successful Execution on Its Publicly Stated Goals
18
Stated Goal
Timeframe
Current Status
Complete New Paper Machine and
Corresponding Converting Lines at
Shelby, NC Facilities
2010 –
2013
Shelby TAD machine is on budget and on track to begin
operations in Q4 2012 with full capacity run rate by end of 2013
Operating
2
new
converting
lines
at
Shelby
with
3
and
4
lines
to
be
operational
in
Q4
2012
and
a
5
line
expected
in
2013
Successfully Integrate Cellu Tissue
Acquisition
2010 –
2013
Increased anticipated Cellu Tissue run-rate synergies from $15-
20 million per annum to $35-40 million per annum by end of 2012
On track to achieve $28 million in synergies in 2012, up from
initial estimates of $20 million
Expand the Geographic and Channel
Reach of Clearwater Paper
2010 –
Ongoing
Cellu Tissue acquisition and Shelby, NC Facilities give Clearwater
Paper a national footprint with expansion in the Eastern U.S.
Increased penetration in grocery, drug, club and mass retail
markets in the Eastern U.S.
Expansion into away-from-home, parent roll sales, and machine
glazed sales product types
Optimize the Paperboard Business
Ongoing
Enhanced access to fiber supply
Sold Lewiston sawmill
Installed chip screening at Lewiston pulp mill
Maintain a Prudent Capital Structure
Ongoing
Conservative capital structure with target leverage through the
cycle of 2.5x and ample liquidity
Clearwater Paper continues to de-lever through EBITDA
expansion
th
th
rd |
 …Which Has Led to Multiple Expansion Since the Spin
19
Source: Bloomberg, Capital IQ, market data as of 28-Aug-2012
1
Small cap tissue peers include Cascades, Orchids, and Wausau.
²
Paperboard peers include International Paper, Graphic Packaging, Kapstone,
MeadWestvaco, RockTenn, Packaging Corp and Sonoco. ³
Large cap consumer product peers include Kimberly-Clark and Procter &
Gamble. Spin Date
6.0x
6.9x
7.0x
10.4x
0x
2x
4x
6x
8x
10x
12x
Dec
-2008
May
-2009
Oct-2009
Mar
-2010
Aug-2010
Jan
-2011
Jun
-2011
Oct-2011
Mar
-2012
Aug-2012
Clearwater Paper
Small Cap Tissue¹
Paperboard²
Large Cap Consumer Products³
Strong
upward trend in multiple over time |
 …And Multiple Growth Rate Higher than Industry
20
Source: Bloomberg, Capital IQ, market data as of 28-Aug-2012
Note: Represents current 1-year forward EBITDA multiple divided by forward
1-year EBITDA at 15-Jan-2009 less 100% (first reported IBES EBITDA estimate per Capital IQ).
1
Small cap tissue peers include Cascades, Orchids, and Wausau.
²
Paperboard peers include International Paper, Graphic Packaging, Kapstone,
MeadWestvaco, RockTenn, Packaging Corp and Sonoco. ³
Large cap consumer product peers include Kimberly-Clark and Procter &
Gamble. 93.6%
16.9%
37.8%
16.5%
Clearwater Paper
Small Cap Tissue¹
Paperboard²
Large Cap Consumer Products³
Change in 1-Year Forward EBITDA Multiple Since Clearwater Spin
|
 •
One of the largest premium private label tissue and bleached paperboard
producers in North America
•
Attractive, growing and stable tissue market with increasing adoption of private
label products driving overall market growth
•
Strong competitive position in stable bleached paperboard market
•
Strategic capital investments, lean optimization initiatives and
ongoing
integration synergies driving revenue growth and margin expansion
•
Track record of robust adjusted EBITDA growth with a 38% CAGR
1
over 2008-
2011, supported by a conservative financial profile
21
¹
Based on 2008 -2011 adjusted EBITDA.
The Value Proposition for Clearwater Paper Shareholders
|
 22
Clearwater Paper’s
Strategic Plan |
 Clearwater Paper’s Strategic Plan
•
The Board and Management conducted an extensive evaluation and analysis of numerous
opportunities to enhance shareholder value, including S.A.C.’s proposal,
over the past three months, with the help of Goldman Sachs, legal, tax and
other outside advisors •
This analysis incorporated a number of important factors, including:
–
The benefits of key growth initiatives such as the Shelby ramp-up, Cellu Tissue
integration and cost-savings plan
–
Disruption and real economic cost of launching a public M&A process in an
uncertain market –
Economic leakage such as taxes and debt breakage costs for separating business
divisions –
Feasibility of separating our integrated Lewiston facilities into two distinct
entities •
The Board
and
Management
concluded
that
execution
of
the
current
Clearwater
Paper
strategic plan will deliver significant shareholder value in excess of other
potential alternatives •
Clearwater Paper’s Board and Management team remain focused on identifying,
analyzing and exploring all paths to deliver value to our shareholders and
will continue to do so 23 |
 24
•
Provides a 70,000 ton TAD paper machine and tissue converting
facility capable of producing ultra grades of private label bath
tissue and paper towels •
Upgrade Las Vegas TAD paper machine to produce bath and towels to support regional
needs
•
Expands the company's TAD geographic footprint
•
Expected to provide financial benefits to the company and our shareholders
–
Projected after tax IRR for this project are approximately twice
the company’s cost of capital
–
Estimated Adjusted EBITDA
run-rate contribution of $50 –
60 million expected to be achieved
in 2014
Significant Benefits Expected from the Shelby Project
Timeline of Key Shelby Milestones
¹
See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to
the most comparable GAAP measure. •Shelby project
announced
•Shelby warehouse
completed
•2 initial converting lines
completed
•Construction and
completion of new
paper machine
•Completion of additional
2 converting lines
•Ramp up of initial 2
converting lines
•New paper machine
expected to be at
capacity by year end
•Expected ramp up of 3
and 4 converting lines
•Start-up and ramping of
5 converting line
anticipated
•Entire facility expected
to be fully operational
by year end
2010
2011
2012
2013
2014
1
th
th
rd |
 Better than Expected Benefits from the Cellu Tissue Integration
•
Cellu Tissue integration is currently on track and we expect to fully integrate
Cellu Tissue operations by end of 2012
•
We anticipate that the company will recognize $28 million of synergies in 2012 with
annual run
rate
synergies
of
$35
-
$40
million
by
end
of
2012
•
Benefits of acquisition include:
–
Cellu Tissue acquisition has enabled us to compete in the Eastern U.S. paper
production market and pursue our national sales strategy
–
Ability to service all tissue tiers and away-from-home tissue market
–
As compared to 2010 (including Cellu tissue sales in 2010), we had retail customer
growth of 13% in case sales in 2011 along with 9% lower parent roll
sales 25
Originally
Forecast
Synergies
Revised 2012
Estimates
$3.0 M
$5.0 M
$4.0 M
$8.0 M
$5.3 M
$6.7 M
$7.4 M
$8.6 M
Q1’12
Q2’12
Q3’12
Q4’12 |
 Projected Pulp Price Decreases Should Contribute to Strong
EBITDA Growth
26 |
 Significant Value Associated with the Integrated Lewiston Site
•
Lewiston
facility
produces
534,000
tons
of
pulp,
443,000
tons
of
paperboard
and
189,000
tons
of
tissue
•
Represents 64%, 58% and 32% respectively of the company’s total production of
pulp, paperboard and tissue •
Lewiston operations share an 840 acre manufacturing site
27
•
Environmental permitting challenges
•
Direct pulp feeds for slush to tissue machines and
baled pulp dependent upon secure pulp agreement
•
Interconnections and utilization issues for utilities
such as electricity, natural gas, steam, return steam
condensate, water and water treatment/effluent
discharge
•
Site services such as road and rail access, security,
fire protection, medical services, environmental and
other administrative functions
•
Pulp risk mitigation with internal slush pulp
consumption and reduced costs due to no drying or
distribution costs
•
Site synergies for utilities:
–
No additional infrastructure needed for steam
production for tissue
–
On site electrical generation and single input
infrastructure for electrical needs
–
Single input infrastructure for natural gas needs
–
Single input infrastructure for water, water
treatment/effluent discharge
–
Other site services reducing exposure to outside
providers
•
Baled pulp production available for other internal
tissue sites
Integration Benefits
Separation Issues
•
Dividing the
Lewiston
site
would
destroy
a
significant
amount
of
integration
value
•
Based on a number of prior analyses, separation is not economically feasible
|
 Our
Efficiency Projects Are Poised to Deliver to the Bottom Line •
Sale of Wood Products operations with a secure fiber agreement expected to improve
annual operating income by $5-$8 million
•
Implementation of 18 month maintenance cycle at Lewiston pulp and paperboard
facility expected to improve annual costs beginning in 2013 by approximately
$5 million •
Ongoing energy utilization projects
•
Fiber management initiatives like the Lower Columbia reload facility which opened
up access to a new wood fiber supply for the Lewiston pulp and paperboard
facility •
Continue driving Lean initiatives company wide
28 |
 Key
Initiatives Expected to Significantly Improve Earnings Power 29
($ in millions)
Shelby
Ramp-up
•
Expected
benefit from
full ramp-up of
TAD paper
machine, 5
converting
lines and LV
PM Upgrades
Realization of Full
Cellu Tissue
Synergies
•
Incremental
savings
expected from
Cellu Tissue
acquisition
Cost
Savings
Programs
•
Expected benefit
from
lean
manufacturing
and cost optimization
initiatives
Note: Assumes no change in prices or input costs from 2011.
¹
See Appendix for the definition of Adjusted EBITDA as well as the reconciliation to
the most comparable GAAP measure. 2
Defined as Adjusted EBITDA less Capex of $138 million.
3
Defined as Adjusted EBITDA less expected Capex of $75 million.
|
 …And Drive Value Creation for Shareholders
30
¹
Note: See Appendix for the definition of Adjusted EBITDA as well as the
reconciliation to the most comparable GAAP measure 2
Net debt as of 30-Jun-2012. Excludes any debt paydown that would take
place between now and cross-cycle. ³
Diluted shares outstanding as of 30-Jun-2012. Assumes 23.3 million basic
shares, 0.2 million RSUs and 0.8 million PSUs. ($ in millions, except per
share data) EBITDA Multiple
6.0
x
7.0
x
8.0
x
$
300
$
300
$
300
Value
$
1,800
$
2,100
$
2,400
Implied Enterprise Value
$
1,800
$
2,100
$
2,400
Less: Net Debt
²
$(488)
$(488)
$(488)
Implied Equity Value
$
1,312
$
1,612
$
1,912
Shares Outstanding
³
24.2
24.2
24.2
Implied Share Price
$
54.28
$
66.70
$
79.11
Pro Forma Adjusted EBITDA Run Rate
1 |
 Core
Strategy to Drive Shareholder Value •
Continue to capitalize on our position as one of the largest premium private
label tissue and bleached paperboard producers in North America
•
Take advantage of the attractive tissue market and the recent trend of
increasing adoption of private label products
•
Benefit from our strong competitive position, and drive value from the bleached
paperboard market
•
Meet or exceed our targets for cost savings and integration synergies
•
Continually analyze all opportunities to create shareholder value
•
Build upon our positive track record of prudent investment and robust EBITDA
growth
31 |
 32
Appendix |
 33
Reconciliation of GAAP to Non-GAAP:
Clearwater Paper EBITDA and Adjusted EBITDA
1
See definitions of EBITDA and Adjusted EBITDA in this Appendix.
($ in millions)
2008
2009
2010
2011
LTM
Net Earnings
$9.7
$182.5
$73.8
$39.7
$45.4
Income Tax Provision
5.6
93.2
2.4
31.2
42.5
Interest Expense
13.1
15.5
22.6
44.8
41.4
Earnings Before Interest and
Income Taxes
28.5
$291.2
$98.8
$115.7
$129.2
Depreciation & Amortization
47.0
47.4
47.7
76.9
78.6
EBITDA
1
$75.4
$338.6
$146.5
$192.7
$208.0
Alternative Fuel Mixture Tax
Credit
-
(170.6)
-
-
-
Debt Retirement Costs
-
6.2
-
-
-
Cellu Tissue Acquisition Related
Expenses
-
-
20.3
-
-
Lewiston, Idaho Sawmill Sale
Related Adjutsments
-
-
-
2.9
2.9
Loss on sale of foam assets
-
-
-
-
1.0
Expenses associated with Metso
litigation
-
-
-
-
1.9
Adjusted EBITDA
$75.4
$174.3
$166.8
$195.5
$213.8
1 |
 34
Reconciliation of GAAP to Non-GAAP:
Clearwater Paper Pro Forma Adjusted EBITDA
($ in millions)
1
See definitions of EBITDA and Adjusted EBITDA in this Appendix.
Shelby
Cellu
Tissue
Synergies
Cost
Optimization
Pro Forma
Adjusted
EBITDA
Operating Income
$37.0
$35.0
$16.0
$210.0
Depreciation & Amortization
13.0
-
3.0
90.0
EBITDA
$50.0
$35.0
$19.0
$300.0
-
-
-
-
Adjusted EBITDA
$50.0
$35.0
$19.0
$300.0
1
1 |
 35
Definitions of Non-GAAP Measures
Clearwater Paper Definitions of Non-GAAP Measures
EBITDA
is a non-GAAP measure that Clearwater Paper management uses to evaluate the
cash generating capacity of Clearwater Paper. The most directly comparable
GAAP measure is net earnings. EBITDA, as defined by Clearwater Paper management, is net earnings adjusted for net
interest expense, income
taxes,
and
depreciation
and
amortization.
It
should
not
be
considered
as
an
alternative
to
net
earnings
computed
under
GAAP.
Adjusted EBITDA
is a non-GAAP measure that Clearwater Paper management defines as EBITDA
adjusted for items that we do not believe are indicative of our core
operating performance, including acquisition and disposition related expenses, alternative fuel mixture tax credits and
expenses associated with the Metso litigation. The most directly comparable
GAAP measure is net earnings. It should not be considered as an
alternative to net earnings computed under GAAP. |
 North American Tissue Projected Capacity Change
36
Source: RISI and Other Industry
COMPANY
LOCATION
CONV/TAD
TONS
STARTUP DATE
CHANNEL/BUSINESS/PRODUCTS
First Quality
Anderson, SC
TAD
70,000
3rd Q, 2012
Retail/P.L./BRT
Patriarch Partners
Gorham, NH
CONV
35,000
3rd Q, 2012
Retail/P.L.
ST Paper
Franklin, VA
CONV
70,000
3rd Q, 2012
Parent Roll Sales/Recycled
Clearwater Paper
Shelby, NC
TAD
70,000
4th Q, 2012
Retail/P.L./BRT & HHT
Kruger
Memphis, TN
TAD
70,000
1st Q, 2013
Retail/Brand/P.L.
Wausau Paper
Harrodsburg, KY
ATMOS
70,000
1st Q, 2013
AFH/Recycled
South Georgia Tissue
Snelling, SC
CONV
35,000
2nd Q, 2013
Parent Roll Sales/Virgin
Procter and Gamble
Box Elder, UT
TAD
80,000
3rd Q, 2013
Retail/Brand/Bounty
Florelle Tissue
Brownville, NY
CONV
15,000
2013
Retail/P.L./Virgin Fiber
TOTAL PROJECTED NEW TONS
515,000
COMPANY
LOCATION
CONV/TAD
TONS
DATE
CHANNEL/BUSINESS/PRODUCTS
Kimberly-Clark
Everett, WA
CONV/UCTAD/DRC
(All 5 PM)
193,000
1st Q, 2012
Retail/AFH/PL-Club/Parent Roll
Sales
Kimberly-Clark
Chester, PA
CONV (PM #16)
27,000
1st Q, 2012
Napkin/BRT
Kruger
New Westminster
PM#1 & #2
40,000
1st Q, 2012
Napkin/BRT
TOTAL PROJECTED TONS LOST
260,000
PROJECTED NET CHANGE
255,000
COMPANY
LOCATION
CONV/TAD
TONS
RESTART DATE
CHANNEL/BUSINESS/PRODUCTS
Georgia Pacific
Port Hudson, LA
ETAD
35,000
4th Q, 2012
Retail/Brand & P.L./HHT & BRT
SCA
Menasha, WI
ATMOS (PM#3)
70,000
2nd Q, 2013
AFH
REBUILDS
ANNOUNCED SHUTDOWNS
ANNOUNCED NEW PAPER MACHINES |