Q3 2024 Clearwater Paper Corp Earnings Call Transcript
Key Points
- Clearwater Paper Corp (CLW) delivered $64 million of adjusted EBITDA in Q3, within their guidance range despite a $5 million impact from Hurricane Helene.
- The company successfully closed the sale of its tissue business for $1.06 billion, netting approximately $850 million in cash after taxes and expenses.
- Clearwater Paper Corp (CLW) announced a $100 million share repurchase program, indicating confidence in their inherent value.
- The company is transforming into a premier paperboard packaging supplier, focusing on servicing independent converters in North America.
- Clearwater Paper Corp (CLW) has a strong geographic footprint with mills strategically located across the U.S., enhancing their service capabilities.
- The paperboard segment's adjusted EBITDA was down from $53 million last year to $42 million in Q3, largely due to market pricing pressures.
- The company is experiencing a cyclical downturn in the SBS market, driven by inventory destocking and new capacity expected in 2025.
- Clearwater Paper Corp (CLW) anticipates a negative price/cost impact of $40 to $50 million in 2025 due to continued downcycle in SBS.
- The company expects a major maintenance outage at the Augusta facility in Q4, estimated to cost $15 to $20 million.
- Hurricane Helene had a $5 million impact on Q3 results, with an additional $2 to $3 million impact expected in Q4.
Thank you for standing by and welcome to the Clearwater Paper third quarter, 2024 earnings conference call. (Event Instructions) Thank you. I'd now like to turn the call over to Mr. Sloan Bohlen Investor Relations. You may begin.
Thank you, Rob and good afternoon and thanks everyone for joining Clearwater Paper's third quarter, 2024 earnings conference call. Joining me on the call today are Arsen Kitch, President and Chief Executive Officer and Sherri Baker, Senior Vice President and Chief Financial Officer. National results for the third quarter, 2024 were released shortly after today's market. Close along with the filing of our 10-Q, you will find a presentation of supplemental information including a slide providing the company's current outlook posted on the investor relations page of our website at clearwater paper dotcom.
Additionally, we will be providing certain non-GAAP information in this afternoon's discussion, a reconciliation of the non-GAAP information to comparable
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