The following is a summary of the Clearwater Paper Corporation (CLW) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Clearwater Paper had net sales of $496 million and adjusted EBITDA reaching $62 million in Q1 2024.

• The company's tissue business saw an impressive increase in adjusted EBITDA from $19 million in Q1 of last year to $46 million this year.

• The Paperboard business reported $34 million of adjusted EBITDA for this quarter.

• The net income for the quarter totalled $17 million.

• A $41 million free cash flow was generated in the quarter which led to a substantial $33 million reduction in net debt.

Business Progress:

• Clearwater saw strong demand for tissue and recorded improved customer demand for paperboard.

• A decrease in paperboard pricing by 11% from the previous year was reported.

• Noteworthy progress has been made on the planned acquisition of the Augusta, Georgia Paperboard manufacturing facility from Graphic Packaging, with expectations to finalize this shortly.

• Anticipated improvements in paperboard volumes and stability in the tissue sector are on the horizon, along with lower input costs and higher maintenance costs expected.

• Clearwater removed 200,000 tons of net capacity from the tissue business between 2021 and 2023, leading to high industry utilization rates.

• Approximately 370,000 tons of capacity will be added between 2024 and 2026, with expectations that natural demand growth will accommodate the added tons.

• Weather disruptions at the Lewiston facility negatively impacted paperboard volumes in January.

• The company aims to retain the margin improvements realized in 2023 and other operational targets moving forward.

More details: Clearwater Paper IR

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