Clearwater Paper(CLW) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales for Q2 2024 were $586.4 million, a 11.8$524.6 million in Q2 2023[58] - The company reported a net loss of $25.8 million, or$1.55 per diluted share, compared to a net income of $29.7 million, or$1.75 per diluted share in the same quarter last year[58] - Adjusted EBITDA for Q2 2024 was $35.3 million, down 50.7$71.5 million in Q2 2023[58] - For the first half of 2024, net sales increased by 3% to $1.1 billion compared to$1 billion in the first half of 2023[58] - The company recorded a net loss of $8.6 million for the first half of 2024, compared to a net income of$53.5 million in the same period last year[58] - Adjusted EBITDA for the first half of 2024 was $96.8 million, a decrease of 29.4$137.2 million in the first half of 2023[58] Segment Performance - Paperboard segment net sales increased by 26.1% to $331.5 million in Q2 2024 compared to$263.0 million in Q2 2023[66] - Paperboard shipments increased by 46.4% to 272,585 short tons in Q2 2024 compared to 186,160 short tons in Q2 2023[66] - Operating income for the paperboard segment was a loss of $12.2 million in Q2 2024, a decrease of 129.1$42.0 million in Q2 2023[66] - The company experienced a significant decrease in sales prices in the Pulp and Paperboard segment due to previously announced price decreases and changes in product mix[66] - Retail tissue net sales for the quarter ended June 30, 2024, were $252.0 million, a decrease of 0.3$252.8 million in the prior year[68] - Operating income for the quarter increased by 9.7% to $27.4 million from$25.0 million in the same period last year[68] - Adjusted EBITDA for the quarter was $41.4 million, reflecting a 4.3$39.7 million year-over-year[68] Cash Flow and Investments - Net cash flows provided by operating activities for the six months ended June 30, 2024, were $80.3 million, compared to a cash outflow of$36.9 million in the same period of 2023[74] - Net cash flows used in investing activities for the six months ended June 30, 2024, were $744.8 million, including$708.2 million for the acquisition of a paperboard manufacturing facility[75] - Net cash provided by financing activities for the six months ended June 30, 2024, was $662.1 million, primarily from the issuance of long-term debt[76] Corporate Expenses and Outlook - Corporate expenses for the quarter were$17.7 million, down from $20.1 million in the same period last year[70] - Retail sales volumes in the Consumer Products segment increased due to higher demand for private label products[69] - The company expects capital expenditures to be approximately$120 million to $140 million during 2024[75] Debt and Financing - The Term Credit Agreement includes a term revolver loan commitment of$270 million, with $150 million borrowed as of October 27, 2023[77] - The Company has a$150 million borrowing under the Term Revolver Facility with an all-in interest rate of 9.13%[78] - The Term Loan Facilities require mandatory prepayments of 50% of quarterly excess cash flows, less any voluntary prepayments[78] - The Company must maintain a maximum consolidated leverage ratio of 4.50 to 1.00 until the first fiscal quarter ending at least 15 months after May 1, 2024[78] - Under the ABL Credit Agreement, the Company has a $375 million revolving loan commitment, maturing on November 7, 2027[79] - The ABL Credit Agreement requires a consolidated fixed charge coverage ratio of not less than 1.10x to 1.00x during an event of default[79] - The Company is currently in compliance with the covenants associated with both the Term Credit Agreement and the ABL Credit Agreement as of June 30, 2024[79] - Interest rates for loans under the Term Loan Facilities may vary between 1.75$100 million, subject to conditions[78] - The Company is required to maintain a minimum current ratio of not less than 1.25 to 1.00 under the Term Credit Agreement[78] Market Risk - There have been no significant developments regarding the Company's exposure to market risk for the quarter ended June 30, 2024[81]