Clearwater Paper Corp (CLW, Financial), a leading supplier of quality tissue and bleached paperboard products, announced its financial results for the third quarter and nine months ended September 30, 2023, on October 30, 2023. The company reported an outstanding performance driven by strong operational results and continued market strength in tissue.
Financial Highlights
Clearwater Paper Corp (CLW, Financial) reported net sales of $520 million for Q3 2023, a decrease of 3% from $539 million in Q3 2022. Despite the drop in sales, the company's net income rose to $37 million, or $2.17 per diluted share, from $21 million, or $1.21 per diluted share, in the same period last year. The company's adjusted net income was also $37 million, $6 million higher than Q3 2022. The adjusted EBITDA of $81 million was $3 million higher than the same quarter of the previous year, and the adjusted EBITDA margin increased to 15% from 14%.
For the first nine months of 2023, Clearwater Paper Corp (CLW, Financial) reported net sales of $1.6 billion, a slight increase compared to the same period in 2022. Net income for the first nine months of 2023 was $90 million, or $5.29 per diluted share, compared to $52 million, or $3.04 per diluted share, for the same period in 2022.
Segment Performance
The Pulp and Paperboard segment reported net sales of $261 million for Q3 2023, down 13% compared to Q3 2022. The segment's operating income for Q3 2023 was $43 million, compared to $64 million for Q3 2022. The decrease in operating income and Adjusted EBITDA were primarily driven by lower sales volumes and sales prices, planned production downtime to manage inventories, partially offset by lower input costs.
On the other hand, the Consumer Products segment reported net sales of $259 million for Q3 2023, up 8% compared to Q3 2022. The segment's operating income for Q3 2023 was $31 million compared to operating income of $5 million in Q3 2022. The increase in operating income and Adjusted EBITDA were driven by higher sales prices and lower input costs, primarily in pulp, freight, chemicals, and energy.
Company Outlook
Clearwater Paper Corp (CLW, Financial) remains optimistic about its strong performance in tissue continuing into the next year, driven by stable demand and improved cost structure. The company also expects a gradual recovery in paperboard volumes starting in 2024. The refinancing of the 2025 notes will improve the company's financial flexibility and position it to continue to invest in its business and take advantage of strategic opportunities as they arise.
Explore the complete 8-K earnings release (here) from Clearwater Paper Corp for further details.
