Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $30 million for Q1 2025, at the high end of guidance, driven by strong operational performance and increased production and sales volumes, primarily due to the Augusta acquisition [6][24] - Net sales increased by 46% to $378 million compared to Q1 2024, largely attributed to the Augusta acquisition [6][24] - The company incurred a consolidated net loss of approximately $6 million from continuing operations, equating to $0.36 per diluted share [23] Business Line Data and Key Metrics Changes - The Augusta mill integration is progressing well, with targeted volume and cost synergies expected by the end of 2026 [7] - Fixed cost structure was reduced by eliminating over 200 positions, representing around 10% of total roles, aiming for $30 to $40 million in savings for 2025 [7][18] Market Data and Key Metrics Changes - Industry shipments increased by 2% in Q1 2025 compared to Q1 2024, with demand projected to grow by 3% to 5% in 2025 [8][9] - Industry utilization rates improved to 88% in Q1 2025 from 84% in Q1 2024, but remain below the cross-cycle average of 90% to 95% [10] Company Strategy and Development Direction - The company aims to strengthen its position as a premier independent supplier of paperboard packaging products, focusing on product development in compostable food service products, lightweight folding cartons, and alternative poly-free barrier technologies [13][14][15] - The company is exploring expansion into additional paperboard substrates, which make up approximately 50% of the paperboard market outside of SBS [15][17] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about medium to long-term industry prospects, expecting strong margins and cash flows through the cycle [34] - The company anticipates continued demand recovery, with internal utilization projected at around 85% and revenue expectations of approximately $1.5 to $1.6 billion for 2025 [29] Other Important Information - The company repurchased approximately $11 million of its shares in Q1 2025, totaling about $15 million since the new $100 million share buyback authorization [7][26] - The company is targeting a reduction in SG&A as a percentage of sales to 6% to 7% by year-end 2025 [25] Q&A Session Summary Question: What is the current status of FPB imports and exposure to tariffs? - Management noted that imports were up in 2024, with forecasts indicating a 5% decrease in imports and a 1% increase in exports for 2025 [38] Question: What are the criteria for evaluating M&A opportunities for expanding product offerings? - The company emphasized the need for strategic fit, quality assets, and a belief in the ability to win in the market [46] Question: What is the expected impact of cost savings in Q2 and the status of synergies from Augusta? - Management expects to see roughly double the amount of savings in Q2 compared to Q1, with a significant portion of the $40 million to $50 million in synergies from Augusta being volume synergies [50][51]

PART I. FINANCIAL INFORMATION This section provides the company's unaudited consolidated financial statements and management's discussion and analysis for the first quarter of 2025 [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements for Q1 2025, reflecting the Augusta facility acquisition and the reclassification of tissue operations as discontinued [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $1,633.9 million, a decrease from $1,679.2 million at year-end 2024, primarily due to a reduction in cash and cash equivalents Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $44.0 | $79.6 | | Total current assets | $499.6 | $545.4 | | Property, plant and equipment, net | $1,029.9 | $1,023.1 | | **Total assets** | **$1,633.9** | **$1,679.2** | | Total current liabilities | $300.2 | $320.4 | | Long-term debt | $281.6 | $281.6 | | **Total liabilities** | **$797.3** | **$824.7** | | **Total stockholders' equity** | **$836.6** | **$854.6** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the first quarter of 2025, the company reported a net loss of $6.3 million, compared to a net income of $17.2 million in the same period of 2024, with the prior year boosted by discontinued operations Quarterly Statement of Operations (in millions, except per-share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $378.2 | $258.8 | | Total operating costs and expenses | $382.2 | $259.6 | | Loss from continuing operations | $(5.9) | $(2.1) | | Income (loss) from discontinued operations, net of tax | $(0.4) | $19.3 | | **Net income (loss)** | **$(6.3)** | **$17.2** | | Loss per share from continuing operations - basic and diluted | $(0.36) | $(0.12) | | **Net income (loss) per share - basic and diluted** | **$(0.38)** | **$1.03** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $1.5 million for Q1 2025, a significant decrease from $59.2 million in Q1 2024, primarily due to the divestiture of tissue operations Quarterly Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash flows provided by operating activities | $1.5 | $59.2 | | Net cash flows used in investing activities | $(32.7) | $(18.5) | | Net cash flows used in financing activities | $(4.4) | $(27.6) | | **Increase (decrease) in cash and cash equivalents** | **$(35.6)** | **$13.2** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide crucial context, detailing the sale of the tissue business, the acquisition of the Augusta paperboard facility, a new cost reduction plan, and the company's determination of having a single operating segment - The company completed the acquisition of a paperboard manufacturing facility in Augusta, Georgia on May 1, 2024, with a total purchase price of **$708.2 million**[22](index=22&type=chunk)[23](index=23&type=chunk) - The company sold its tissue operations in November 2024. These results are now presented as discontinued operations. For Q1 2024, these operations generated **$19.3 million** in net income, compared to a loss of **$0.4 million** in Q1 2025 related to settlement costs[19](index=19&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - In early 2025, a cost reduction plan was initiated to right-size operations after the tissue business sale, with expected employee severance costs of **$5 to $7 million** by the end of 2025. The company incurred **$4.4 million** in severance expense in Q1 2025[49](index=49&type=chunk) - The company has determined it has a single operating segment. Net sales are disaggregated by product line, with Food Service (**$151.4 million**) and Folding Carton (**$148.4 million**) being the largest contributors in Q1 2025[50](index=50&type=chunk)[53](index=53&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting a **46% increase** in net sales driven by the Augusta acquisition, which offset market-driven price decreases. Adjusted EBITDA more than doubled to **$29.8 million** Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net sales | $378.2 | $258.8 | 46% | | Loss from continuing operations | $(4.0) | $(0.8) | 410% | | Adjusted EBITDA from continuing operations | $29.8 | $14.2 | 110% | - The **46% increase** in net sales was driven by higher sales volume from the acquired Augusta operations. This was partially offset by a **7.5% decrease** in the average paperboard sales price per short ton[63](index=63&type=chunk)[64](index=64&type=chunk) - Looking to Q2 2025, the company expects higher sales volumes, seasonally lower energy costs, and benefits from cost reduction efforts. These will be partially offset by increased planned maintenance expenses[73](index=73&type=chunk) - Cash flow from operations decreased significantly to **$1.5 million** in Q1 2025 from **$59.2 million** in Q1 2024, primarily due to the divestiture of the high cash-flow tissue business[77](index=77&type=chunk) - The company expects to spend approximately **$80 million to $90 million** on capital expenditures in 2025[78](index=78&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no significant developments regarding its exposure to market risk during the first quarter of 2025 - There have been no significant changes to the company's market risk exposure for the quarter ended March 31, 2025[82](index=82&type=chunk) [Controls and Procedures](index=23&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures are effective - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[83](index=83&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[84](index=84&type=chunk) PART II. OTHER INFORMATION This section provides additional information including legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=24&type=section&id=ITEM%201.%20Legal%20Proceedings) The company was named as a defendant in an environmental lawsuit filed on February 5, 2025, in Georgia, alleging PFAS presence related to its Augusta mill - On February 5, 2025, the company was named as a defendant in an environmental lawsuit related to its Augusta, Georgia mill[86](index=86&type=chunk) - The lawsuit seeks monetary damages and injunctive relief for the alleged presence of PFAS in the plaintiff's source water supply[87](index=87&type=chunk)[88](index=88&type=chunk) [Risk Factors](index=24&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported for the quarter[89](index=89&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **379,900 shares** for approximately **$10.9 million** during Q1 2025 under its **$100 million** stock repurchase program - A **$100 million** stock repurchase program was authorized on October 31, 2024[89](index=89&type=chunk) Q1 2025 Stock Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 155,000 | $29.99 | | Feb 2025 | 154,900 | $28.87 | | Mar 2025 | 70,000 | $25.19 | | **Total** | **379,900** | **$28.65** | [Other Information](index=24&type=section&id=ITEM%205.%20Other%20Information) During the first quarter of 2025, none of the company's officers or directors adopted or terminated a Rule 10b5-1 trading arrangement - No officers or directors adopted or terminated a Rule 10b5-1 arrangement during the quarter[94](index=94&type=chunk) [Exhibits](index=26&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q report, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO/CFO certifications (Exhibits 31 & 32) and an employment agreement with CEO Arsen S. Kitch[95](index=95&type=chunk)

Company Overview - Clearwater Paper Corporation is one of the five largest producers of paperboard in North America, holding approximately 14% of the U.S. production capacity in 2024[16]. - In 2024, Clearwater Paper acquired a paperboard manufacturing facility in Augusta, Georgia for approximately $710.6 million[18]. - The company divested its tissue business for $1.06 billion in cash, marking a strategic shift in operations[18]. - Following the Tissue Divestiture, the company is now solely focused on the pulp and paperboard segment, increasing its exposure to industry-specific risks[55]. Product and Market Dynamics - The SBS paperboard segment is primarily used for folding cartons, food service applications, and commercial printing, with a focus on high-end products that yield attractive margins[20]. - Customer buying patterns typically result in lower sales volumes during the first and fourth quarters compared to the second and third quarters[31]. - Demand for paperboard products surged during the COVID-19 pandemic but has since declined, potentially leading to further production downtimes[57]. - The paperboard industry experienced significant weakness in 2023 and 2024 due to customer destocking after a period of high demand[168]. - For 2025, the company expects continued improvement in demand for SBS paperboard products, with industry publications suggesting a return to pre-COVID levels by the end of 2025[202]. Financial Performance - Net sales increased by 21.8% for the year ended December 31, 2024, reaching $1,383.6 million, primarily due to the inclusion of Augusta operations[184]. - Adjusted EBITDA from continuing operations decreased by 70.5% to $36.0 million for the year ended December 31, 2024[181]. - Gross profit declined by 62.1% for the year ended December 31, 2024, totaling $76.1 million, due to price decreases and higher costs from maintenance outages[191]. - The company reported a loss from continuing operations of $64.5 million for the year ended December 31, 2024, compared to a profit of $78.1 million in 2023[183]. - Cash generated from operations decreased to $61.4 million in 2024 from $190.7 million in 2023, driven by lower operating performance and changes in working capital[205]. Cost and Operational Challenges - Clearwater Paper's operations are significantly impacted by freight costs, energy consumption, and raw material prices[28][29]. - The company faces significant costs related to maintaining manufacturing equipment, which can disrupt operations and affect financial performance[68]. - The cost and availability of chemicals and energy are critical to the company's operations, with potential volatility affecting results[73]. - Transportation disruptions and increased freight costs could materially impact the company's ability to deliver products and manage costs[76]. - The company’s operating costs include raw materials, labor, and selling, general, and administrative expenses, managed through cost-saving initiatives[169]. Environmental and Regulatory Factors - Clearwater Paper aims to reduce Scope 1 and Scope 2 GHG emissions by 30% and Scope 3 emissions by 25% by 2030[41]. - The company is committed to expanding recyclable, compostable, or marine-degradable paperboard offerings to represent over 10% of total SBS cupstock manufacturing by 2030[41]. - Environmental regulations may lead to increased compliance costs and potential liabilities, impacting financial condition and cash flows[87]. - Climate change risks, including extreme weather events, could disrupt operations and supply chains, adversely affecting financial results[92]. Labor and Supply Chain Risks - Approximately 1,400 full-time employees are represented by unions under collective bargaining agreements, with potential labor disruptions impacting operations and financial results[80]. - A collective bargaining agreement for approximately 500 hourly employees at the Lewiston, Idaho facility will expire in August 2025, posing risks of strikes or other labor actions[81]. - The company relies on a limited number of third-party suppliers for raw materials, which could lead to increased costs and supply interruptions affecting financial results[83]. - The company relies on external sources of wood fiber, exposing it to price fluctuations and supply risks[70]. Debt and Financial Obligations - As of December 31, 2024, the company had approximately $275 million of outstanding indebtedness and availability of approximately $218 million under its Credit Agreement[117]. - The fixed charge coverage ratio was approximately 2.0x as of December 31, 2024, but could be affected by events beyond the company's control[124]. - Credit rating downgrades could increase borrowing costs and adversely affect the company's financial condition and results of operations[127]. - An increase in interest rates could negatively impact the company's cash flow and increase debt service obligations[128]. Strategic Initiatives and Future Outlook - The company is targeting $30 to $40 million in cost savings in 2025 across selling, general and administrative expenses and operations[202]. - The company expects cash paid for capital expenditures in 2025 to be approximately $80 million to $90 million[208]. - The company has a stock repurchase program authorized for up to $100 million, with $96.7 million remaining as of December 31, 2024[153]. - The company completed the acquisition of a paperboard manufacturing facility and associated business in Augusta, Georgia in 2024[166].

Company Overview - Clearwater Paper Corporation, based in Spokane, Washington, has been operating since the early 1900s and specializes in manufacturing and supplying paperboard packaging to converters across North America [1] Industry Focus - The mission of Grassroots Trading emphasizes providing objective, unbiased, and balanced research focused on small- to mid-cap companies, while also identifying potential opportunities in large- and mega-cap companies [1]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported $21 million of adjusted EBITDA, a decline from $63 million in the previous year, primarily due to two fewer months of contributions from the divested tissue business and increased maintenance expenses at the Augusta mill [25][26] - For the full year 2024, adjusted EBITDA was $182 million, down from $281 million in 2023, largely driven by a $90 million impact from lower paperboard pricing [26][27] - The company recognized a gain of $307 million from the sale of the tissue business, significantly contributing to full-year net income and allowing for a $199 million reduction in net debt [28] Business Line Data and Key Metrics Changes - The Augusta acquisition increased paperboard capacity by approximately 70%, expected to contribute $140 million to $150 million of annual adjusted EBITDA once synergies are realized [9][10] - The divestiture of the tissue business was completed on November 1, 2024, allowing the company to focus solely on paperboard operations [10][25] Market Data and Key Metrics Changes - Industry shipments increased by 4% in 2024 compared to 2023, with projected growth of 3% to 5% in 2025, indicating a recovery towards pre-COVID levels [15] - Industry utilization rates improved to 85% in 2024 from 82% in 2023, although net exports decreased by approximately 250,000 tons due to increased global supply [16] Company Strategy and Development Direction - The company aims to strengthen its position as an independent supplier of paperboard packaging products and is exploring opportunities to expand its product offerings, including new applications and substrates [38] - Actions are being taken to reduce costs by targeting $30 million to $40 million in savings across SG&A and operations, including a 10% reduction in workforce [19][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for paperboard packaging, despite current market challenges, and expects improved operational performance to offset pricing and inflation headwinds [23][32] - The company anticipates a continued demand recovery in 2025, with internal utilization rates projected at around 85% [31] Other Important Information - A new $100 million share repurchase program was authorized, with approximately $9 million repurchased as of February 7, 2025 [14] - Capital expenditures for 2025 are expected to be between $80 million and $90 million, including maintenance CapEx and carryover from large projects [34] Q&A Session Summary Question: Can you provide more details on the new agreements and their expected volume ramp-up? - Management indicated that the new agreements are incorporated into 2025 volume assumptions and will take several years to ramp up, potentially filling 150,000 to 200,000 tons of open capacity [46] Question: How do you expect operational performance to offset pricing and inflation headwinds? - Management outlined three areas of improvement: operational performance, fewer disruptions from weather events, and targeted cost reductions of $30 million to $40 million [52] Question: What benefits do you expect from headcount reductions in Q1? - Management expects modest benefits in Q1, with more significant savings ramping up in Q2 and the bulk occurring in the second half of the year [54] Question: How would potential tariffs impact the SBS market? - Management noted that while there would be higher costs from suppliers, the impact is hard to predict, and the goal would be to pass those costs onto customers [59] Question: What is the company's stance on share repurchases given the current stock price? - Management stated that they would be opportunistic in share repurchases but prioritize investing in assets and maintaining a strong balance sheet [61] Question: How is demand trending at the start of the year compared to Q4? - Management reported positive customer conversations and noted that food service demand is more robust than folding carton demand, indicating hopeful signs of recovery [65]

Fourth Quarter and Full Year Earnings Release Materials February 13, 2025 ARSEN KITCH President, Chief Executive Officer and Director SHERRI BAKER Senior Vice President and Chief Financial Officer Forward Looking Statements Cautionary Statement Regarding Forward Looking Statements This presentation of supplemental information contains, in addition to historical information, certain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of th ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $64 million for Q3 2024, which was within the guidance range of $58 million to $68 million, impacted negatively by approximately $5 million due to Hurricane Helene [7][32] - The sale of the tissue business for $1.06 billion is expected to net approximately $850 million in cash after taxes and expenses, which will be used to pay down outstanding credit facilities [8][9] - The board approved a $100 million share repurchase program to buy back shares when they trade at a sufficient discount to inherent value [9] Business Line Data and Key Metrics Changes - Paperboard delivered $42 million of adjusted EBITDA in Q3 2024, up from $11 million in Q2 but down from $53 million year-over-year [32] - Tissue delivered $41 million of adjusted EBITDA in Q3, flat compared to Q2 and slightly up from last year, with private brands gaining market share [34] Market Data and Key Metrics Changes - Industry SBS shipments increased by 2.4% in Q3 2024 compared to the previous quarter and 2.5% year-to-date versus 2023 [33] - Despite the recovery, industry shipments remain below pre-COVID levels, with expectations for continued recovery into 2025 and 2026 [33] Company Strategy and Development Direction - The company is transforming into a premier paperboard packaging supplier focused on servicing independent converters in North America following the sale of its tissue business [9][23] - The strategy includes driving operational improvements, expanding product range, and addressing market trends such as lighter weight paperboard and compostable solutions [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term industry fundamentals despite the current down cycle in SBS, driven by supply-demand imbalances and new capacity coming online in 2025 [22][38] - The company targets adjusted EBITDA margins of 8% to 10% in 2025, with a focus on cost reductions and maintaining a strong balance sheet [36][40] Other Important Information - The company plans to incur $40 million to $50 million in direct major maintenance expenses next year, with a shift to an annual maintenance outage cadence expected to improve operating performance [37] - The company aims to maintain a net leverage ratio of 1x to 2x through the cycle, lower than the previous target of 2.5x [40] Q&A Session Summary Question: Can you provide details on investments for lighter weight products? - Management indicated that investments would be small-to-medium sized, measured in millions, aimed at improving pulpers to incorporate additional pulp streams [46][47] Question: What are the expectations for cost reductions? - Management targets a 10% reduction in fixed costs and a 6% SG&A spend as a percentage of sales, estimating annualized savings of over $50 million [50][51] Question: Will there be an impact from Hurricane Helene in Q4? - Management confirmed an additional $2 million to $3 million impact from the hurricane in Q4, which is included in the guidance [54]

| --- | --- | --- | |---------------------------------------------------|-------|-------| | | | | | Third Quarter Earnings Release Materials | | | | November 4, 2024 | | | | ARSEN KITCH | | | | President, Chief Executive Officer and Director | | | | SHERRI BAKER | | | | Senior Vice President and Chief Financial Officer | | | Forward Looking Statements 2 Cautionary Statement Regarding Forward Looking Statements This presentation of supplemental information contains, in addition to historical information, cer ...

Financial Performance - Net sales for Q3 2024 reached $393.3 million, a 41% increase from $278.9 million in Q3 2023[66] - The company reported a net loss from continuing operations of $10.7 million, or $0.64 per diluted share, compared to a profit of $14.9 million, or $0.88 per diluted share, in Q3 2023[66] - Adjusted EBITDA from continuing operations for Q3 2024 was $20.2 million, down 38% from $32.6 million in Q3 2023[70] - For the nine months ended September 30, 2024, net sales increased by 15% to $1.0 billion compared to $867.4 million in the same period of 2023[66] - The cost of sales for Q3 2024 was $363.2 million, a 59% increase from $228.3 million in Q3 2023[73] - Gross margin declined by 41% in Q3 2024, with a gross margin of $30.1 million compared to $50.7 million in Q3 2023[76] - Selling, general and administrative expenses increased by 12% in Q3 2024, totaling $31.6 million compared to $28.3 million in Q3 2023[77] - The company experienced a 63% decline in gross margin for the nine months ended September 30, 2024, compared to the same period in 2023[76] Operational Metrics - Paperboard shipments increased by 67.2% in Q3 2024, totaling 314,320 short tons compared to 187,944 short tons in Q3 2023[74] - The increase in retail sales volumes in the consumer products division was attributed to higher demand for private label products[80] Cash Flow and Investments - Net cash flows from operating activities for the nine months ended September 30, 2024, were $96.5 million, a decrease from $125.0 million for the same period in 2023, attributed to lower operating performance and higher interest payments related to the Augusta acquisition[84] - Net cash flows used in investing activities for the nine months ended September 30, 2024, were $791.8 million, significantly higher than $48.5 million in the prior year, primarily due to a $708.2 million acquisition of a paperboard manufacturing facility in Augusta, Georgia[85] - Net cash provided by financing activities during the nine months ended September 30, 2024, was $688.9 million, compared to a net cash outflow of $20.7 million in the same period of 2023[86] Debt and Credit Agreements - The Company has a Term Credit Agreement with a total commitment of $760 million, which includes a $270 million Term Revolver Facility and a $400 million Farm Credit Term Loan Facility, both fully drawn as of May 1, 2024[87] - The Company expects capital expenditures for 2024 to be approximately $100 million to $120 million[85] - As of September 30, 2024, the Company was in compliance with the covenants associated with its Term Credit Agreement and ABL Credit Agreement[89] - The Company has the option to prepay and reborrow under the Term Revolver Facility without premium or penalty, subject to certain conditions[88] - The Company’s ABL Credit Agreement includes a $375 million revolving loan commitment, maturing on November 7, 2027, with interest rates varying based on availability[88] - The Company recorded a decrease in net cash flows from operating activities due to increased interest payments related to debt incurred from acquisitions[84] - The Company may face challenges in maintaining compliance with its credit agreements if financial conditions deteriorate[89]

| --- | --- | --- | --- | --- | --- | |--------|-------|-------------------|----------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | CLEARWATER PAPER | | | | | | | | | | | | | | CORPORATION | | | | | SECOND | | QUARTER EARNINGS | | | | | | | RELEASE MATERIALS | | | | | | | | AUGUST 6, 2024 | | | ARSEN KITCH President, Chief Executive Officer and Director SHERRI BAKER Senior Vice President and Chief Financial Officer FORWARD LOOKING STATEMENTS Cautionary Statement Regarding Forward L ...