ý | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 20-3594554 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
601 West Riverside, | Suite 1100 | 99201 | |||||||||
Spokane, | WA | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.0001 per share | CLW | New York Stock Exchange |
Large accelerated filer | ¨ | Accelerated filer | ý | |||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | |||||||||||
Emerging growth company | ¨ |
Table of Contents | Page Number | |||||||
PART I. | FINANCIAL INFORMATION | |||||||
ITEM 1. | Consolidated Financial Statements (Unaudited) | |||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II. | OTHER INFORMATION | |||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | Unregistered Sales of Equity Securities and | |||||||
ITEM 5. | Other Information | |||||||
ITEM 6. | ||||||||
ITEM 1. | Consolidated Financial Statements |
(In millions, except share data) | (In millions, except share data) | March 31, 2023 | December 31, 2022 | (In millions, except share data) | June 30, 2023 | December 31, 2022 | ||||||||||
Assets | Assets | Assets | ||||||||||||||
Current assets: | Current assets: | Current assets: | ||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 16.7 | $ | 53.7 | Cash and cash equivalents | $ | 41.7 | $ | 53.7 | ||||||
Receivables, net of allowance for current expected credit losses | Receivables, net of allowance for current expected credit losses | 186.3 | 188.8 | Receivables, net of allowance for current expected credit losses | 196.6 | 188.8 | ||||||||||
Inventories, net | Inventories, net | 345.5 | 324.0 | Inventories, net | 340.4 | 324.0 | ||||||||||
Other current assets | Other current assets | 19.5 | 19.9 | Other current assets | 13.4 | 19.9 | ||||||||||
Total current assets | Total current assets | 567.9 | 586.3 | Total current assets | 592.1 | 586.3 | ||||||||||
Property, plant and equipment, net | Property, plant and equipment, net | 1,004.6 | 1,017.1 | Property, plant and equipment, net | 1,000.2 | 1,017.1 | ||||||||||
Other assets, net | Other assets, net | 117.9 | 100.1 | Other assets, net | 112.7 | 100.1 | ||||||||||
Total assets | Total assets | $ | 1,690.5 | $ | 1,703.5 | Total assets | $ | 1,705.0 | $ | 1,703.5 | ||||||
Liabilities and stockholders' equity | Liabilities and stockholders' equity | Liabilities and stockholders' equity | ||||||||||||||
Current liabilities: | Current liabilities: | Current liabilities: | ||||||||||||||
Current portion of long-term debt | Current portion of long-term debt | $ | 0.9 | $ | 0.9 | Current portion of long-term debt | $ | 0.9 | $ | 0.9 | ||||||
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | 264.6 | 311.1 | Accounts payable and accrued liabilities | 262.6 | 311.1 | ||||||||||
Total current liabilities | Total current liabilities | 265.5 | 312.0 | Total current liabilities | 263.5 | 312.0 | ||||||||||
Long-term debt | Long-term debt | 564.9 | 564.9 | Long-term debt | 564.8 | 564.9 | ||||||||||
Liability for pension and other postretirement employee benefits | Liability for pension and other postretirement employee benefits | 57.8 | 58.2 | Liability for pension and other postretirement employee benefits | 57.2 | 58.2 | ||||||||||
Deferred tax liabilities and other long-term obligations | Deferred tax liabilities and other long-term obligations | 210.4 | 196.4 | Deferred tax liabilities and other long-term obligations | 205.0 | 196.4 | ||||||||||
Total liabilities | Total liabilities | 1,098.5 | 1,131.5 | Total liabilities | 1,090.5 | 1,131.5 | ||||||||||
Stockholders' equity: | Stockholders' equity: | Stockholders' equity: | ||||||||||||||
Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no shares issued | Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no shares issued | — | — | Preferred stock, par value $0.0001 per share, 5,000,000 authorized shares, no shares issued | — | — | ||||||||||
Common stock, par value $0.0001 per share, 100,000,000 authorized shares, 16,953,399 and 16,761,869 shares issued | — | — | ||||||||||||||
Common stock, par value $0.0001 per share, 100,000,000 authorized shares, 16,707,995 and 16,761,869 shares issued | Common stock, par value $0.0001 per share, 100,000,000 authorized shares, 16,707,995 and 16,761,869 shares issued | — | — | |||||||||||||
Additional paid-in capital | Additional paid-in capital | 24.7 | 28.5 | Additional paid-in capital | 17.7 | 28.5 | ||||||||||
Retained earnings | Retained earnings | 600.6 | 576.8 | Retained earnings | 630.3 | 576.8 | ||||||||||
Accumulated other comprehensive loss, net of tax | Accumulated other comprehensive loss, net of tax | (33.4) | (33.3) | Accumulated other comprehensive loss, net of tax | (33.4) | (33.3) | ||||||||||
Total stockholders' equity | Total stockholders' equity | 592.0 | 572.1 | Total stockholders' equity | 614.5 | 572.1 | ||||||||||
Total liabilities and stockholders' equity | Total liabilities and stockholders' equity | $ | 1,690.5 | $ | 1,703.5 | Total liabilities and stockholders' equity | $ | 1,705.0 | $ | 1,703.5 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
(In millions, except per-share data) | (In millions, except per-share data) | 2023 | 2022 | (In millions, except per-share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Net sales | Net sales | $ | 525.4 | $ | 488.2 | Net sales | $ | 524.6 | $ | 526.4 | $ | 1,050.0 | $ | 1,014.6 | |||||||||||
Costs and expenses: | Costs and expenses: | Costs and expenses: | |||||||||||||||||||||||
Cost of sales | Cost of sales | 448.5 | 422.0 | Cost of sales | 438.7 | 455.2 | 887.2 | 877.2 | |||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses | 36.0 | 32.8 | Selling, general and administrative expenses | 39.1 | 33.9 | 75.1 | 66.7 | |||||||||||||||||
Other operating charges, net | 1.1 | 0.5 | |||||||||||||||||||||||
Other operating (income) charges, net | Other operating (income) charges, net | (0.4) | 5.7 | 0.6 | 6.3 | ||||||||||||||||||||
Total operating costs and expenses | Total operating costs and expenses | 485.6 | 455.3 | Total operating costs and expenses | 477.3 | 494.9 | 962.9 | 950.2 | |||||||||||||||||
Income from operations | Income from operations | 39.8 | 32.9 | Income from operations | 47.3 | 31.5 | 87.1 | 64.4 | |||||||||||||||||
Interest expense, net | Interest expense, net | (7.6) | (8.6) | Interest expense, net | (7.5) | (10.7) | (15.1) | (19.3) | |||||||||||||||||
Debt retirement costs | Debt retirement costs | — | (0.2) | Debt retirement costs | — | (0.3) | — | (0.5) | |||||||||||||||||
Other non-operating (expense) income | Other non-operating (expense) income | 0.1 | (1.4) | Other non-operating (expense) income | 0.1 | (1.4) | 0.2 | (2.8) | |||||||||||||||||
Total non-operating expense | Total non-operating expense | (7.5) | (10.3) | Total non-operating expense | (7.4) | (12.4) | (14.9) | (22.7) | |||||||||||||||||
Income before income taxes | Income before income taxes | 32.3 | 22.6 | Income before income taxes | 39.9 | 19.1 | 72.2 | 41.7 | |||||||||||||||||
Income tax provision | Income tax provision | 8.4 | 6.0 | Income tax provision | 10.2 | 4.4 | 18.6 | 10.4 | |||||||||||||||||
Net income | Net income | $ | 23.8 | $ | 16.6 | Net income | $ | 29.7 | $ | 14.7 | $ | 53.5 | $ | 31.3 | |||||||||||
Net income per common share: | Net income per common share: | Net income per common share: | |||||||||||||||||||||||
Basic | Basic | $ | 1.42 | $ | 0.99 | Basic | $ | 1.76 | $ | 0.87 | $ | 3.18 | $ | 1.86 | |||||||||||
Diluted | Diluted | 1.40 | 0.97 | Diluted | 1.75 | 0.86 | 3.15 | 1.83 | |||||||||||||||||
Average shares of common stock used to compute net income per share: (in thousands) | Average shares of common stock used to compute net income per share: (in thousands) | Average shares of common stock used to compute net income per share: (in thousands) | |||||||||||||||||||||||
Basic | Basic | 16,834 | 16,728 | Basic | 16,865 | 16,849 | 16,849 | 16,788 | |||||||||||||||||
Diluted | Diluted | 17,036 | 17,073 | Diluted | 16,958 | 17,078 | 17,003 | 17,080 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Net income | Net income | $ | 23.8 | $ | 16.6 | Net income | $ | 29.7 | $ | 14.7 | $ | 53.5 | $ | 31.3 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||
Other comprehensive income: | Other comprehensive income: | ||||||||||||||||||||||||
Defined benefit pension and other postretirement employee benefits: | Defined benefit pension and other postretirement employee benefits: | Defined benefit pension and other postretirement employee benefits: | |||||||||||||||||||||||
Amortization of actuarial (gain) loss included in net periodic cost, net of immaterial tax and $0.4 | (0.1) | 1.1 | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (0.1) | 1.1 | |||||||||||||||||||||||
Amortization of actuarial (gain) loss included in net periodic cost, net of tax of $0.0, $0.4, $0.1 and $0.8 | Amortization of actuarial (gain) loss included in net periodic cost, net of tax of $0.0, $0.4, $0.1 and $0.8 | (0.1) | 1.1 | (0.1) | 2.3 | ||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | (0.1) | 1.1 | (0.1) | 2.3 | ||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 23.8 | $ | 17.7 | Comprehensive income | $ | 29.6 | $ | 15.8 | $ | 53.4 | $ | 33.6 |
Quarter Ended March 31, | |||||||||||||||||||||||||
(unaudited) | (unaudited) | Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Operating activities | Operating activities | Operating activities | |||||||||||||||||||||||
Net income | Net income | $ | 23.8 | $ | 16.6 | Net income | $ | 29.7 | $ | 14.7 | $ | 53.5 | $ | 31.3 | |||||||||||
Adjustments to reconcile net income to net cash flows (used in) provided by operating activities: | |||||||||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 24.8 | 25.4 | Depreciation and amortization | 24.6 | 25.7 | 49.4 | 51.2 | |||||||||||||||||
Equity-based compensation expense | Equity-based compensation expense | 1.9 | 0.7 | Equity-based compensation expense | 1.5 | 4.9 | 3.4 | 5.5 | |||||||||||||||||
Deferred taxes | Deferred taxes | (1.3) | (2.2) | Deferred taxes | (1.6) | (1.9) | (2.9) | (4.1) | |||||||||||||||||
Defined benefit pension and other postretirement employee benefits | Defined benefit pension and other postretirement employee benefits | (0.5) | 0.7 | Defined benefit pension and other postretirement employee benefits | (0.6) | 0.8 | (1.1) | 1.5 | |||||||||||||||||
Amortization of deferred debt costs and debt retirement | Amortization of deferred debt costs and debt retirement | 0.3 | 0.7 | 0.6 | 1.3 | ||||||||||||||||||||
Loss on sale or impairment associated with assets | Loss on sale or impairment associated with assets | 1.1 | — | Loss on sale or impairment associated with assets | — | 4.6 | 1.1 | 4.6 | |||||||||||||||||
Increase (decrease) in cash from changes in operating assets and liabilities: | Increase (decrease) in cash from changes in operating assets and liabilities: | Increase (decrease) in cash from changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | Accounts receivable | (6.4) | (10.6) | Accounts receivable | (7.7) | (11.3) | (14.1) | (21.8) | |||||||||||||||||
Inventories | Inventories | (22.3) | (4.2) | Inventories | 5.3 | (5.8) | (17.0) | (10.0) | |||||||||||||||||
Other current assets | Other current assets | 5.4 | 4.2 | 5.8 | 4.2 | ||||||||||||||||||||
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | (31.7) | 13.9 | Accounts payable and accrued liabilities | (10.7) | 40.6 | (42.5) | 54.5 | |||||||||||||||||
Other, net | Other, net | 1.4 | 0.7 | Other, net | (0.1) | 1.3 | 0.6 | 1.4 | |||||||||||||||||
Net cash flows provided by (used in) operating activities | (9.1) | 41.1 | |||||||||||||||||||||||
Net cash flows provided by operating activities | Net cash flows provided by operating activities | 46.0 | 78.5 | 36.9 | 119.5 | ||||||||||||||||||||
Investing activities | Investing activities | Investing activities | |||||||||||||||||||||||
Additions to property, plant and equipment, net 1 | Additions to property, plant and equipment, net 1 | (21.5) | (7.9) | Additions to property, plant and equipment, net 1 | (12.8) | (5.4) | (34.3) | (13.2) | |||||||||||||||||
Net cash flows used in investing activities | Net cash flows used in investing activities | (21.5) | (7.9) | Net cash flows used in investing activities | (12.8) | (5.4) | (34.3) | (13.2) | |||||||||||||||||
Financing activities | Financing activities | Financing activities | |||||||||||||||||||||||
Borrowings on short-term debt | Borrowings on short-term debt | 12.0 | — | Borrowings on short-term debt | — | — | 12.0 | — | |||||||||||||||||
Repayments of borrowings on short-term debt | Repayments of borrowings on short-term debt | (12.0) | — | Repayments of borrowings on short-term debt | — | — | (12.0) | — | |||||||||||||||||
Repayments of long-term debt | Repayments of long-term debt | (0.2) | (20.4) | Repayments of long-term debt | (0.2) | (35.1) | (0.5) | (55.5) | |||||||||||||||||
Taxes paid related to net share settlement of equity awards | Taxes paid related to net share settlement of equity awards | (4.2) | (1.5) | Taxes paid related to net share settlement of equity awards | (0.4) | (1.0) | (4.6) | (2.5) | |||||||||||||||||
Repurchases of common stock | Repurchases of common stock | (1.7) | — | Repurchases of common stock | (8.4) | (3.9) | (10.1) | (3.9) | |||||||||||||||||
Other, net | Other, net | (0.1) | — | Other, net | — | — | (0.1) | — | |||||||||||||||||
Net cash flows used in financing activities | Net cash flows used in financing activities | (6.3) | (21.9) | Net cash flows used in financing activities | (8.9) | (40.0) | (15.3) | (61.9) | |||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | Increase (decrease) in cash, cash equivalents and restricted cash | (37.0) | 11.2 | Increase (decrease) in cash, cash equivalents and restricted cash | 24.3 | 33.1 | (12.7) | 44.4 | |||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 54.4 | 26.2 | Cash, cash equivalents and restricted cash at beginning of period | 17.4 | 37.5 | 54.4 | 26.2 | |||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 17.4 | $ | 37.5 | Cash, cash equivalents and restricted cash at end of period | $ | 41.7 | $ | 70.6 | $ | 41.7 | $ | 70.6 | |||||||||||
Supplemental disclosures of cash flow information | Supplemental disclosures of cash flow information | Supplemental disclosures of cash flow information | |||||||||||||||||||||||
Cash paid for interest, net of amounts capitalized | Cash paid for interest, net of amounts capitalized | $ | 14.6 | $ | 15.6 | Cash paid for interest, net of amounts capitalized | $ | 0.8 | $ | 1.2 | $ | 15.4 | $ | 16.9 | |||||||||||
Cash paid for income taxes | Cash paid for income taxes | $ | 15.1 | $ | 12.5 | $ | 15.1 | $ | 12.5 | ||||||||||||||||
Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | |||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 16.7 | $ | 36.4 | Cash and cash equivalents | $ | 41.7 | $ | 69.5 | $ | 41.7 | $ | 69.5 | |||||||||||
Restricted cash included in other current assets and other assets, net | 0.7 | 1.1 | |||||||||||||||||||||||
Restricted cash included in other assets, net | Restricted cash included in other assets, net | — | 1.1 | — | 1.1 | ||||||||||||||||||||
Total cash, cash equivalents and restricted cash | Total cash, cash equivalents and restricted cash | $ | 17.4 | $ | 37.5 | Total cash, cash equivalents and restricted cash | $ | 41.7 | $ | 70.6 | $ | 41.7 | $ | 70.6 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||||||||||
(In millions, except share amounts which are in thousands) | (In millions, except share amounts which are in thousands) | Shares | Amount | (In millions, except share amounts which are in thousands) | Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | 16,692 | $ | — | $ | 23.6 | $ | 530.7 | $ | (42.6) | $ | 511.7 | Balance at December 31, 2021 | 16,692 | $ | — | $ | 23.6 | $ | 530.7 | $ | (42.6) | $ | 511.7 | ||||||||||||||||
Net income | Net income | — | — | — | 16.6 | — | 16.6 | Net income | — | — | — | 16.6 | — | 16.6 | ||||||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | — | — | 2.0 | — | — | 2.0 | Stock-based compensation expense | — | — | 2.0 | — | — | 2.0 | ||||||||||||||||||||||||||
Issuance of shares under stock plans, net | Issuance of shares under stock plans, net | 119 | — | (1.5) | — | — | (1.5) | Issuance of shares under stock plans, net | 119 | — | (1.5) | — | — | (1.5) | ||||||||||||||||||||||||||
Pension and other postretirement employee benefits, net of tax of $0.4 | Pension and other postretirement employee benefits, net of tax of $0.4 | — | — | — | — | 1.1 | 1.1 | Pension and other postretirement employee benefits, net of tax of $0.4 | — | — | — | — | 1.1 | 1.1 | ||||||||||||||||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | 16,811 | $ | — | $ | 24.1 | $ | 547.3 | $ | (41.4) | $ | 530.0 | Balance at March 31, 2022 | 16,811 | $ | — | $ | 24.1 | $ | 547.3 | $ | (41.4) | $ | 530.0 | ||||||||||||||||
Net income | Net income | — | — | — | 14.7 | — | 14.7 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | Stock-based compensation expense | — | — | 3.8 | — | — | 3.8 | |||||||||||||||||||||||||||||||||
Issuance of shares under stock plans, net | Issuance of shares under stock plans, net | 78 | — | (1.0) | — | — | (1.0) | |||||||||||||||||||||||||||||||||
Pension and other postretirement employee benefits, net of tax of $0.4 | Pension and other postretirement employee benefits, net of tax of $0.4 | — | — | — | — | 1.1 | 1.1 | |||||||||||||||||||||||||||||||||
Repurchases of common stock | Repurchases of common stock | (119) | — | (3.9) | — | — | (3.9) | |||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | 16,770 | $ | — | $ | 23.0 | $ | 562.0 | $ | (40.3) | $ | 544.7 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||
(In millions, except share amounts which are in thousands) | Shares | Amount | ||||||||||||||||||
Balance at December 31, 2022 | 16,762 | $ | — | $ | 28.5 | $ | 576.8 | $ | (33.3) | $ | 572.1 | |||||||||
Net income | — | — | — | 23.8 | — | 23.8 | ||||||||||||||
Stock-based compensation expense | — | — | 2.2 | — | — | 2.2 | ||||||||||||||
Issuance of shares under stock plans, net | 242 | — | (4.2) | — | — | (4.2) | ||||||||||||||
Pension and other postretirement employee benefits, net of immaterial tax | — | — | — | — | (0.1) | (0.1) | ||||||||||||||
Repurchases of common stock | (51) | — | (1.7) | — | — | (1.7) | ||||||||||||||
Balance at March 31, 2023 | 16,953 | $ | — | $ | 24.7 | $ | 600.6 | $ | (33.4) | $ | 592.0 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||
(In millions, except share amounts which are in thousands) | Shares | Amount | ||||||||||||||||||
Balance at December 31, 2022 | 16,762 | $ | — | $ | 28.5 | $ | 576.8 | $ | (33.3) | $ | 572.1 | |||||||||
Net income | — | — | — | 23.8 | — | 23.8 | ||||||||||||||
Stock-based compensation expense | — | — | 2.2 | — | — | 2.2 | ||||||||||||||
Issuance of shares under stock plans, net | 242 | — | (4.2) | — | — | (4.2) | ||||||||||||||
Pension and other postretirement employee benefits, net of immaterial tax | — | — | — | — | (0.1) | (0.1) | ||||||||||||||
Repurchases of common stock | (51) | — | (1.7) | — | — | (1.7) | ||||||||||||||
Balance at March 31, 2023 | 16,953 | $ | — | $ | 24.7 | $ | 600.6 | $ | (33.4) | $ | 592.0 | |||||||||
Net income | — | — | — | 29.7 | — | 29.7 | ||||||||||||||
Stock-based compensation expense | — | — | 1.7 | — | — | 1.7 | ||||||||||||||
Issuance of shares under stock plans, net | 18 | — | (0.4) | — | — | (0.4) | ||||||||||||||
Pension and other postretirement employee benefits, net of immaterial tax | — | — | — | — | (0.1) | (0.1) | ||||||||||||||
Repurchases of common stock | (263) | — | (8.4) | — | — | (8.4) | ||||||||||||||
Balance at June 30, 2023 | 16,708 | $ | — | $ | 17.7 | $ | 630.3 | $ | (33.4) | $ | 614.5 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||
2014 Notes, maturing 2025, fixed interest rate | 2014 Notes, maturing 2025, fixed interest rate | $ | 262.3 | $ | 263.1 | 2014 Notes, maturing 2025, fixed interest rate | $ | 261.4 | $ | 263.1 | ||||||
2020 Notes, maturing 2028, fixed interest rate | 2020 Notes, maturing 2028, fixed interest rate | 247.1 | 241.2 | 2020 Notes, maturing 2028, fixed interest rate | 242.2 | 241.2 | ||||||||||
$ | 509.4 | $ | 504.3 | $ | 503.6 | $ | 504.3 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||
Trade accounts receivable | Trade accounts receivable | $ | 175.7 | $ | 167.6 | Trade accounts receivable | $ | 187.7 | $ | 167.6 | ||||||
Allowance for current expected credit losses | Allowance for current expected credit losses | (1.3) | (1.4) | Allowance for current expected credit losses | (1.5) | (1.4) | ||||||||||
Unbilled receivables | Unbilled receivables | 7.9 | 9.1 | Unbilled receivables | 3.7 | 9.1 | ||||||||||
Taxes receivable | Taxes receivable | 1.7 | 10.6 | Taxes receivable | 4.2 | 10.6 | ||||||||||
Other | Other | 2.4 | 2.9 | Other | 2.5 | 2.9 | ||||||||||
$ | 186.3 | $ | 188.8 | $ | 196.6 | $ | 188.8 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||
Logs, chips and sawdust | Logs, chips and sawdust | $ | 21.7 | $ | 23.6 | Logs, chips and sawdust | $ | 18.7 | $ | 23.6 | ||||||
Pulp | Pulp | 22.4 | 16.8 | Pulp | 16.8 | 16.8 | ||||||||||
Paperboard and tissue products | Paperboard and tissue products | 187.3 | 171.9 | Paperboard and tissue products | 186.3 | 171.9 | ||||||||||
Materials and supplies | Materials and supplies | 114.1 | 111.7 | Materials and supplies | 118.6 | 111.7 | ||||||||||
$ | 345.5 | $ | 324.0 | $ | 340.4 | $ | 324.0 |
March 31, 2023 | December 31, 2022 | |||||||
Land and land improvements | $ | 106.1 | $ | 106.1 | ||||
Buildings and improvements | 457.4 | 456.8 | ||||||
Machinery and equipment | 2,348.8 | 2,346.5 | ||||||
Construction in progress | 26.1 | 23.9 | ||||||
2,938.4 | 2,933.4 | |||||||
Less accumulated depreciation and amortization | (1,933.7) | (1,916.3) | ||||||
Property, plant and equipment, net | $ | 1,004.6 | $ | 1,017.1 |
June 30, 2023 | December 31, 2022 | |||||||
Land and land improvements | $ | 106.1 | $ | 106.1 | ||||
Buildings and improvements | 457.6 | 456.8 | ||||||
Machinery and equipment | 2,356.3 | 2,346.5 | ||||||
Construction in progress | 37.1 | 23.9 | ||||||
2,957.1 | 2,933.4 | |||||||
Less accumulated depreciation and amortization | (1,956.9) | (1,916.3) | ||||||
Property, plant and equipment, net | $ | 1,000.2 | $ | 1,017.1 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||
Trade payables | Trade payables | $ | 179.1 | $ | 213.0 | Trade payables | $ | 169.7 | $ | 213.0 | ||||||
Accrued compensation | Accrued compensation | 31.6 | 41.9 | Accrued compensation | 32.8 | 41.9 | ||||||||||
Operating lease liabilities | Operating lease liabilities | 14.8 | 12.0 | Operating lease liabilities | 13.9 | 12.0 | ||||||||||
Other accrued liabilities | Other accrued liabilities | 39.1 | 44.2 | Other accrued liabilities | 46.2 | 44.2 | ||||||||||
$ | 264.6 | $ | 311.1 | $ | 262.6 | $ | 311.1 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Reorganization and other expenses | Reorganization and other expenses | $ | — | $ | 1.5 | Reorganization and other expenses | $ | — | $ | 0.1 | $ | — | $ | 1.6 | |||||||||||
Costs associated with mill closure | Costs associated with mill closure | — | 0.4 | Costs associated with mill closure | — | — | — | 0.4 | |||||||||||||||||
Loss on sale or impairment associated with assets | Loss on sale or impairment associated with assets | 1.1 | — | Loss on sale or impairment associated with assets | — | 4.6 | 1.1 | 4.6 | |||||||||||||||||
Directors' equity-based compensation expense | Directors' equity-based compensation expense | (0.2) | (1.4) | Directors' equity-based compensation expense | (0.2) | 1.1 | (0.4) | (0.3) | |||||||||||||||||
Other | Other | 0.2 | — | Other | (0.3) | — | (0.1) | — | |||||||||||||||||
$ | 1.1 | $ | 0.5 | $ | (0.4) | $ | 5.7 | $ | 0.6 | $ | 6.3 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Interest expense | Interest expense | $ | (7.6) | $ | (8.2) | Interest expense | $ | (7.6) | $ | (10.4) | $ | (15.2) | $ | (18.6) | ||||||||||||||||||||
Amortization of deferred debt costs | Amortization of deferred debt costs | (0.3) | (0.4) | Amortization of deferred debt costs | (0.3) | (0.4) | (0.6) | (0.8) | ||||||||||||||||||||||||||
Interest income | Interest income | 0.3 | — | Interest income | 0.3 | 0.1 | 0.6 | 0.1 | ||||||||||||||||||||||||||
Interest expense, net | Interest expense, net | (7.6) | (8.6) | Interest expense, net | (7.5) | (10.7) | (15.1) | (19.3) | ||||||||||||||||||||||||||
Debt retirement costs | Debt retirement costs | — | (0.2) | Debt retirement costs | — | (0.3) | — | (0.5) | ||||||||||||||||||||||||||
Non-operating pension and other postretirement employee benefits (expense) benefit | 0.1 | (1.4) | ||||||||||||||||||||||||||||||||
Non-operating pension and other postretirement employee benefits (expense) | Non-operating pension and other postretirement employee benefits (expense) | 0.1 | (1.4) | 0.2 | (2.8) | |||||||||||||||||||||||||||||
Total non-operating expense | Total non-operating expense | $ | (7.5) | $ | (10.3) | Total non-operating expense | $ | (7.4) | $ | (12.4) | $ | (14.9) | $ | (22.7) |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
Pension Benefit Plans | Pension Benefit Plans | 2023 | 2022 | Pension Benefit Plans | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | 0.9 | $ | 0.5 | Service cost | $ | 0.9 | $ | 0.5 | $ | 1.7 | $ | 1.1 | |||||||||||||||||||||||||||||
Interest cost | Interest cost | 3.1 | 2.2 | Interest cost | 3.1 | 2.2 | 6.2 | 4.4 | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | Expected return on plan assets | (3.8) | (2.8) | Expected return on plan assets | (3.8) | (2.8) | (7.6) | (5.7) | |||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | Amortization of actuarial loss | — | 1.5 | Amortization of actuarial loss | — | 1.5 | — | 3.1 | |||||||||||||||||||||||||||||||||||
Net periodic cost | Net periodic cost | $ | 0.2 | $ | 1.5 | Net periodic cost | $ | 0.2 | $ | 1.5 | $ | 0.4 | $ | 2.9 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Postretirement Employee Benefit Plans | Other Postretirement Employee Benefit Plans | 2023 | 2022 | Other Postretirement Employee Benefit Plans | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | Service cost | $ | — | $ | 0.1 | Service cost | $ | — | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | Interest cost | 0.7 | 0.5 | Interest cost | 0.7 | 0.5 | 1.4 | 1.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial gain | Amortization of actuarial gain | (0.1) | — | Amortization of actuarial gain | (0.1) | — | (0.3) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost | Net periodic cost | $ | 0.6 | $ | 0.6 | Net periodic cost | $ | 0.6 | $ | 0.6 | $ | 1.2 | $ | 1.2 |
Pension Plan Adjustments | Other Post Retirement Employee Benefit Plan Adjustments | Total | Pension Plan Adjustments | Other Post Retirement Employee Benefit Plan Adjustments | Total | |||||||||||||||||
Balance at December 31, 2021 | Balance at December 31, 2021 | $ | (42.8) | $ | 0.3 | $ | (42.6) | Balance at December 31, 2021 | $ | (42.8) | $ | 0.3 | $ | (42.6) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | Amounts reclassified from accumulated other comprehensive loss | 1.1 | — | 1.1 | Amounts reclassified from accumulated other comprehensive loss | 2.3 | — | 2.3 | ||||||||||||||
Balance at March 31, 2022 | $ | (41.7) | $ | 0.3 | $ | (41.4) | ||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | $ | (40.5) | $ | 0.3 | $ | (40.3) | |||||||||||||||
Balance at December 31, 2022 | Balance at December 31, 2022 | $ | (46.5) | $ | 13.3 | $ | (33.3) | Balance at December 31, 2022 | $ | (46.5) | $ | 13.3 | $ | (33.3) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | Amounts reclassified from accumulated other comprehensive loss | — | (0.1) | (0.1) | Amounts reclassified from accumulated other comprehensive loss | — | (0.1) | (0.1) | ||||||||||||||
Balance at March 31, 2023 | $ | (46.5) | $ | 13.2 | $ | (33.4) | ||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | $ | (46.5) | $ | 13.1 | $ | (33.4) |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Total stock-based compensation expense | Total stock-based compensation expense | $ | 1.9 | $ | 0.7 | Total stock-based compensation expense | $ | 1.5 | $ | 4.9 | $ | 3.4 | $ | 5.5 | ||||||||||||||||||||
Income tax benefit related to stock-based compensation | Income tax benefit related to stock-based compensation | $ | 0.5 | $ | 0.2 | Income tax benefit related to stock-based compensation | $ | 0.4 | $ | 1.2 | $ | 0.9 | $ | 1.4 | ||||||||||||||||||||
Impact on cash flow due to taxes paid related to net share settlement of equity awards | Impact on cash flow due to taxes paid related to net share settlement of equity awards | $ | 4.2 | $ | 1.5 | Impact on cash flow due to taxes paid related to net share settlement of equity awards | $ | 0.4 | $ | 1.0 | $ | 4.6 | $ | 2.5 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
(In thousands) | (In thousands) | 2023 | 2022 | (In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Basic weighted-average common shares outstanding | Basic weighted-average common shares outstanding | 16,834 | 16,728 | Basic weighted-average common shares outstanding | 16,865 | 16,849 | 16,849 | 16,788 | |||||||||||||||||
Incremental shares due to: | Incremental shares due to: | Incremental shares due to: | |||||||||||||||||||||||
Stock-based awards | Stock-based awards | 202 | 229 | Stock-based awards | 91 | 105 | 152 | 171 | |||||||||||||||||
Performance shares | Performance shares | — | 116 | Performance shares | 2 | 125 | 2 | 120 | |||||||||||||||||
Diluted weighted-average common shares outstanding | Diluted weighted-average common shares outstanding | 17,036 | 17,073 | Diluted weighted-average common shares outstanding | 16,958 | 17,078 | 17,003 | 17,080 |
Quarter Ended March 31, | ||||||||
2023 | 2022 | |||||||
Segment net sales: | ||||||||
Pulp and Paperboard | $ | 278.8 | $ | 266.2 | ||||
Consumer Products | 248.3 | 223.0 | ||||||
Eliminations | (1.7) | (1.1) | ||||||
Net sales | $ | 525.4 | $ | 488.2 | ||||
Operating income (loss): | ||||||||
Pulp and Paperboard | $ | 57.1 | $ | 50.3 | ||||
Consumer Products | 4.2 | 0.9 | ||||||
Corporate and eliminations | (20.4) | (17.8) | ||||||
Other operating charges, net | (1.1) | (0.5) | ||||||
Income from operations | $ | 39.8 | $ | 32.9 |
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Segment net sales: | |||||||||||||||||
Pulp and Paperboard | $ | 272.3 | $ | 295.8 | $ | 551.0 | $ | 562.0 | |||||||||
Consumer Products | 253.6 | 232.1 | 502.0 | 455.2 | |||||||||||||
Eliminations | (1.3) | (1.5) | (3.0) | (2.6) | |||||||||||||
Net sales | $ | 524.6 | $ | 526.4 | $ | 1,050.0 | $ | 1,014.6 | |||||||||
Operating income (loss): | |||||||||||||||||
Pulp and Paperboard | $ | 42.0 | $ | 52.0 | $ | 99.1 | $ | 102.3 | |||||||||
Consumer Products | 25.0 | 3.5 | 29.2 | 4.4 | |||||||||||||
Corporate and eliminations | (20.1) | (18.2) | (40.6) | (36.0) | |||||||||||||
Other operating income (charges), net | 0.4 | (5.7) | (0.6) | (6.3) | |||||||||||||
Income from operations | $ | 47.3 | $ | 31.5 | $ | 87.1 | $ | 64.4 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Major products: | Major products: | Major products: | ||||||||||||||||||||||||||||||||
Paperboard | Paperboard | $ | 272.9 | $ | 254.3 | Paperboard | $ | 263.0 | $ | 287.6 | $ | 536.4 | $ | 541.9 | ||||||||||||||||||||
Retail tissue | Retail tissue | 246.0 | 216.6 | Retail tissue | 252.8 | 228.6 | 498.8 | 445.2 | ||||||||||||||||||||||||||
Pulp | Pulp | 3.2 | 8.3 | Pulp | 7.0 | 5.6 | 10.3 | 14.0 | ||||||||||||||||||||||||||
Other | Other | 5.0 | 10.1 | Other | 3.1 | 6.1 | 7.5 | 16.2 | ||||||||||||||||||||||||||
Eliminations | Eliminations | (1.7) | (1.1) | Eliminations | (1.3) | (1.5) | (3.0) | (2.6) | ||||||||||||||||||||||||||
Total net sales | Total net sales | $ | 525.4 | $ | 488.2 | Total net sales | $ | 524.6 | $ | 526.4 | $ | 1,050.0 | $ | 1,014.6 |
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
(In millions) | (In millions) | 2023 | 2022 | (In millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Net income | Net income | $ | 23.8 | $ | 16.6 | Net income | $ | 29.7 | $ | 14.7 | $ | 53.5 | $ | 31.3 | |||||||||||
Income tax provision | Income tax provision | 8.4 | 6.0 | Income tax provision | 10.2 | 4.4 | 18.6 | 10.4 | |||||||||||||||||
Interest expense, net | Interest expense, net | 7.6 | 8.6 | Interest expense, net | 7.5 | 10.7 | 15.1 | 19.3 | |||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 24.8 | 25.4 | Depreciation and amortization | 24.6 | 25.7 | 49.4 | 51.2 | |||||||||||||||||
Other operating charges, net | 1.1 | 0.5 | |||||||||||||||||||||||
Other operating (income) charges, net | Other operating (income) charges, net | (0.4) | 5.7 | 0.6 | 6.3 | ||||||||||||||||||||
Debt retirement costs | Debt retirement costs | — | 0.2 | Debt retirement costs | — | 0.3 | — | 0.5 | |||||||||||||||||
Other non-operating expense (income) | (0.1) | 1.4 | |||||||||||||||||||||||
Other non-operating (income) expense | Other non-operating (income) expense | (0.1) | 1.4 | (0.2) | 2.8 | ||||||||||||||||||||
Adjusted EBITDA | Adjusted EBITDA | $ | 65.7 | $ | 58.9 | Adjusted EBITDA | $ | 71.5 | $ | 63.0 | $ | 137.2 | $ | 121.9 | |||||||||||
Pulp and Paperboard segment income | Pulp and Paperboard segment income | $ | 57.1 | $ | 50.3 | Pulp and Paperboard segment income | $ | 42.0 | $ | 52.0 | $ | 99.1 | $ | 102.3 | |||||||||||
Depreciation and amortization | Depreciation and amortization | 9.1 | 9.3 | Depreciation and amortization | 9.3 | 9.2 | 18.5 | 18.5 | |||||||||||||||||
Adjusted EBITDA Pulp and Paperboard segment | Adjusted EBITDA Pulp and Paperboard segment | $ | 66.2 | $ | 59.5 | Adjusted EBITDA Pulp and Paperboard segment | $ | 51.3 | $ | 61.2 | $ | 117.6 | $ | 120.8 | |||||||||||
Consumer Products segment income | Consumer Products segment income | $ | 4.2 | $ | 0.9 | Consumer Products segment income | $ | 25.0 | $ | 3.5 | $ | 29.2 | $ | 4.4 | |||||||||||
Depreciation and amortization | Depreciation and amortization | 15.0 | 15.3 | Depreciation and amortization | 14.7 | 15.6 | 29.7 | 30.9 | |||||||||||||||||
Adjusted EBITDA Consumer Products segment | Adjusted EBITDA Consumer Products segment | $ | 19.2 | $ | 16.2 | Adjusted EBITDA Consumer Products segment | $ | 39.7 | $ | 19.1 | $ | 58.9 | $ | 35.3 | |||||||||||
Corporate and other expense | Corporate and other expense | $ | (20.4) | $ | (17.8) | Corporate and other expense | $ | (20.1) | $ | (18.2) | $ | (40.6) | $ | (36.0) | |||||||||||
Depreciation and amortization | Depreciation and amortization | 0.6 | 0.9 | Depreciation and amortization | 0.6 | 0.9 | 1.2 | 1.8 | |||||||||||||||||
Adjusted EBITDA Corporate and other | Adjusted EBITDA Corporate and other | $ | (19.8) | $ | (16.9) | Adjusted EBITDA Corporate and other | $ | (19.5) | $ | (17.3) | $ | (39.3) | $ | (34.2) | |||||||||||
Pulp and Paperboard segment | Pulp and Paperboard segment | $ | 66.2 | $ | 59.5 | Pulp and Paperboard segment | $ | 51.3 | $ | 61.2 | $ | 117.6 | $ | 120.8 | |||||||||||
Consumer Products segment | Consumer Products segment | 19.2 | 16.2 | Consumer Products segment | 39.7 | 19.1 | 58.9 | 35.3 | |||||||||||||||||
Corporate and other | Corporate and other | (19.8) | (16.9) | Corporate and other | (19.5) | (17.3) | (39.3) | (34.2) | |||||||||||||||||
Adjusted EBITDA | Adjusted EBITDA | $ | 65.7 | $ | 58.9 | Adjusted EBITDA | $ | 71.5 | $ | 63.0 | $ | 137.2 | $ | 121.9 |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per unit and paperboard shipments) | (Dollars in millions, except per unit and paperboard shipments) | 2023 | 2022 | Increase (decrease) | (Dollars in millions, except per unit and paperboard shipments) | 2023 | 2022 | Increase (decrease) | 2023 | 2022 | Increase (decrease) | ||||||||||||||||||||||||||||||||
Sales: | Sales: | Sales: | |||||||||||||||||||||||||||||||||||||||||
Paperboard | Paperboard | $ | 272.9 | $ | 254.3 | 7.3 | % | Paperboard | $ | 263.0 | $ | 287.6 | (8.6) | % | $ | 536.4 | $ | 541.9 | (1.0) | % | |||||||||||||||||||||||
Pulp | Pulp | 3.2 | 8.3 | (61.0) | % | Pulp | 7.0 | 5.6 | 24.5 | % | 10.3 | 14.0 | (26.4) | % | |||||||||||||||||||||||||||||
Other | Other | 2.6 | 3.6 | (27.8) | % | Other | 2.3 | 2.6 | (10.7) | % | 4.3 | 6.2 | (30.6) | % | |||||||||||||||||||||||||||||
$ | 278.8 | $ | 266.2 | 4.7 | % | $ | 272.3 | $ | 295.8 | (7.9) | % | $ | 551.0 | $ | 562.0 | (2.0) | % | ||||||||||||||||||||||||||
Operating income | Operating income | $ | 57.1 | $ | 50.3 | 13.6 | % | Operating income | $ | 42.0 | $ | 52.0 | (19.3) | % | $ | 99.1 | $ | 102.3 | (3.1) | % | |||||||||||||||||||||||
Operating margin | Operating margin | 20.5 | % | 18.9 | % | Operating margin | 15.4 | % | 17.6 | % | 18.0 | % | 18.2 | % | |||||||||||||||||||||||||||||
Adjusted EBITDA | Adjusted EBITDA | $ | 66.2 | $ | 59.5 | 11.3 | % | Adjusted EBITDA | $ | 51.3 | $ | 61.2 | (16.2) | % | $ | 117.6 | $ | 120.8 | (2.6) | % | |||||||||||||||||||||||
Adjusted EBITDA margin | Adjusted EBITDA margin | 23.8 | % | 22.4 | % | Adjusted EBITDA margin | 18.8 | % | 20.7 | % | 21.3 | % | 21.5 | % | |||||||||||||||||||||||||||||
Paperboard shipments (short tons) | Paperboard shipments (short tons) | 189,398 | 201,356 | (5.9) | % | Paperboard shipments (short tons) | 186,160 | 215,903 | (13.8) | % | 375,558 | 417,259 | (10.0) | % | |||||||||||||||||||||||||||||
Paperboard sales price (per short ton) | Paperboard sales price (per short ton) | $ | 1,441 | $ | 1,263 | 14.1 | % | Paperboard sales price (per short ton) | $ | 1,413 | $ | 1,332 | 6.1 | % | $ | 1,428 | $ | 1,299 | 9.9 | % |
Quarter Ended March 31, | Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per unit and shipments) | (Dollars in millions, except per unit and shipments) | 2023 | 2022 | Increase (decrease) | (Dollars in millions, except per unit and shipments) | 2023 | 2022 | Increase (decrease) | 2023 | 2022 | Increase (decrease) | ||||||||||||||||||||||||||||||||
Sales: | Sales: | Sales: | |||||||||||||||||||||||||||||||||||||||||
Retail tissue | Retail tissue | $ | 246.0 | $ | 216.6 | 13.6 | % | Retail tissue | $ | 252.8 | $ | 228.6 | 10.6 | % | $ | 498.8 | $ | 445.2 | 12.0 | % | |||||||||||||||||||||||
Other | Other | 2.4 | 6.4 | (62.9) | % | Other | 0.8 | 3.6 | (77.8) | % | 3.2 | 10.0 | (68.0) | % | |||||||||||||||||||||||||||||
$ | 248.3 | $ | 223.0 | 11.4 | % | $ | 253.6 | $ | 232.1 | 9.3 | % | $ | 502.0 | $ | 455.2 | 10.3 | % | ||||||||||||||||||||||||||
Operating income | Operating income | $ | 4.2 | $ | 0.9 | 353.3 | % | Operating income | $ | 25.0 | $ | 3.5 | 620.3 | % | $ | 29.2 | $ | 4.4 | 564.0 | % | |||||||||||||||||||||||
Operating margin | Operating margin | 1.7 | % | 0.4 | % | Operating margin | 9.9 | % | 1.5 | % | 5.8 | % | 1.0 | % | |||||||||||||||||||||||||||||
Adjusted EBITDA | Adjusted EBITDA | $ | 19.2 | $ | 16.2 | 18.5 | % | Adjusted EBITDA | $ | 39.7 | $ | 19.1 | 107.8 | % | $ | 58.9 | $ | 35.3 | 66.9 | % | |||||||||||||||||||||||
Adjusted EBITDA margin | Adjusted EBITDA margin | 7.7 | % | 7.3 | % | Adjusted EBITDA margin | 15.7 | % | 8.2 | % | 11.7 | % | 7.8 | % | |||||||||||||||||||||||||||||
Shipments (short tons) | Shipments (short tons) | Shipments (short tons) | |||||||||||||||||||||||||||||||||||||||||
Retail | Retail | 76,848 | 75,426 | 1.9 | % | Retail | 78,672 | 76,604 | 2.7 | % | 155,520 | 152,030 | 2.3 | % | |||||||||||||||||||||||||||||
Other | Other | 1,017 | 5,073 | (80.0) | % | Other | 103 | 2,614 | (96.1) | % | 1,120 | 7,687 | (85.4) | % | |||||||||||||||||||||||||||||
77,865 | 80,499 | (3.3) | % | 78,775 | 79,218 | (0.6) | % | 156,640 | 159,717 | (1.9) | % | ||||||||||||||||||||||||||||||||
Sales price (per short ton) | Sales price (per short ton) | Sales price (per short ton) | |||||||||||||||||||||||||||||||||||||||||
Retail | Retail | $ | 3,201 | $ | 2,872 | 11.5 | % | Retail | $ | 3,214 | $ | 2,984 | 7.7 | % | $ | 3,207 | $ | 2,928 | 9.5 | % |
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
ITEM 4. | Controls and Procedures |
ITEM 1. | Legal Proceedings |
ITEM 1A. | Risk Factors |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | ||||||||||
January 1, 2023 to January 31, 2023 | — | $ | — | — | $ | 24.9 | ||||||||
February 1, 2023 to February 28, 2023 | 6,000 | $ | 37.00 | 6,000 | $ | 24.6 | ||||||||
March 1, 2023 to March 31, 2023 | 44,557 | $ | 34.22 | 44,557 | $ | 23.1 | ||||||||
Total | 50,557 | $ | — | 50,557 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | ||||||||||
April 1, 2023 to April 30, 2023 | 53,690 | $ | 32.81 | 53,690 | $ | 21.3 | ||||||||
May 1, 2023 to May 31, 2023 | 88,117 | $ | 32.20 | 88,117 | $ | 18.5 | ||||||||
June 1, 2023 to June 30, 2023 | 121,574 | $ | 30.85 | 121,574 | $ | 14.7 | ||||||||
Total | 263,381 | $ | 31.70 | 263,381 |
ITEM 5. | Other Information. |
Incorporated by Reference | |||||||||||||||||
EXHIBIT | EXHIBIT DESCRIPTION | Filed herewith? | Form | Exhibit No. | Date Filed | ||||||||||||
31** | X | ||||||||||||||||
32** | X | ||||||||||||||||
10.1 | 8-K | 10.1 | May 15, 2023 | ||||||||||||||
101.INS | XBRL Instance Document | ||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema. | ||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | ||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | ||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase. | ||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | ||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
** | In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibit 32 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act. | ||||
CLEARWATER PAPER CORPORATION | ||||||||||||||
(Registrant) | ||||||||||||||
By: | /s/ ARSEN S. KITCH | |||||||||||||
Arsen S. Kitch | ||||||||||||||
President, Chief Executive Officer and Director (Principal Executive Officer) | ||||||||||||||
By: | /s/ | |||||||||||||