Clearwater Paper Files Q3 2024 10-Q

TL;DR

**CLW Q3 10-Q filed. Financials and ops update.**

AI Summary

Clearwater Paper Corp. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial figures and business segment information are presented, reflecting the company's ongoing activities in the paper and pulp industry.

Why It Matters

This filing provides investors with the latest financial results and operational insights for Clearwater Paper, crucial for understanding the company's performance and future outlook in the paper products market.

Risk Assessment

Risk Level: medium — The company operates in a cyclical industry subject to commodity price fluctuations and demand shifts, which can impact financial performance.

Key Players & Entities

• Clearwater Paper Corp. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241104 (date) — Filing date

FAQ

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share CLW New York Stock Exchange
• $18.3 million — ication was an increase to net sales of $18.3 million and $58.8 million and an increase to co
• $58.8 million — rease to net sales of $18.3 million and $58.8 million and an increase to cost of sales of $18
• $18.4 million — ion and an increase to cost of sales of $18.4 million and $58.9 million. See Note 4, Disconti
• $58.9 million — e to cost of sales of $18.4 million and $58.9 million. See Note 4, Discontinued Operation for

Filing Documents

• clw-20240930.htm (10-Q) — 997KB
• ex31q3-24.htm (EX-31) — 23KB
• ex32q3-24.htm (EX-32) — 9KB
• clw-20240930_g1.jpg (GRAPHIC) — 10KB
• 0001504337-24-000053.txt ( ) — 6185KB
• clw-20240930.xsd (EX-101.SCH) — 34KB
• clw-20240930_cal.xml (EX-101.CAL) — 56KB
• clw-20240930_def.xml (EX-101.DEF) — 172KB
• clw-20240930_lab.xml (EX-101.LAB) — 563KB
• clw-20240930_pre.xml (EX-101.PRE) — 382KB
• clw-20240930_htm.xml (XML) — 907KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Our disclosure and analysis in this report contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the recent sale of our consumer products division (our tissue business), our acquisition of a paperboard manufacturing facility and associated business; accounting standards; our operations and expectations; current and anticipated borrowing and credit facilities; cash flows; capital expenditures; disclosure controls; compliance with our loan and financing agreements; tax rates; debt repayments; operating costs; selling, general and administrative expenses; liquidity; benefit plan funding levels; stockholder equity; interest expenses; and legal proceedings. Words such as "anticipate," "expect," "intend," "plan," "target," "project," "believe," "schedule," "estimate," "may," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on management's current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this report. Important factors that could cause or contribute to such differences in operating results include those risks discussed in Item 1A "Risk Factors" in our 2023 Form 10-K, as well as the following: there may be unexpected costs, charges or expenses resulting from the recent consumer products division (tissue business) sale transaction; there may be stockholder litigation in connection with the recent consumer products division sale transaction or the acquisition of the Augusta, Georgia paperboard manufacturing facility or other settlements or investigations may affect the timing or occurrence of the recent consumer products sale transaction or result in significant costs

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

ITEM 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income (Loss) 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Stockholders' Equity 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 27

Controls and Procedures

ITEM 4. Controls and Procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 29

Risk Factors

ITEM 1A. Risk Factors 29

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Other Information

ITEM 5. Other Information 30

Exhibits

ITEM 6. Exhibits 31

: Financial Information

Part I: Financial Information

Consolidated Financial Statements

ITEM 1. Consolidated Financial Statements CLEARWATER PAPER CORPORATION Consolidated Balance Sheets (Unaudited) (In millions, except share data) September 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 35.5 $ 42.0 Receivables, net of allowance for current expected credit losses 172.7 96.1 Inventories, net 264.6 161.2 Other current assets 12.9 17.4 Current assets of discontinued operations 246.1 247.5 Total current assets 731.9 564.1 Property, plant and equipment 2,294.2 1,608.6 Accumulated depreciation and amortization ( 1,282.2 ) ( 1,247.9 ) Property, plant and equipment, net 1,012.0 360.7 Goodwill and intangible assets, net 52.2 41.5 Other assets, net 59.1 47.6 Long-term assets of discontinued operations 633.6 657.9 Total assets $ 2,488.7 $ 1,671.8 Liabilities and stockholders' equity Current liabilities: Current portion of long-term debt $ 7.4 $ — Accounts payable and accrued liabilities 301.7 195.5 Current liabilities of discontinued operations 103.0 90.5 Total current liabilities 412.1 286.0 Long-term debt 1,143.3 439.9 Liability for pension and other postretirement employee benefits 52.4 54.5 Deferred tax liabilities and other long-term obligations 85.8 84.6 Long-term liabilities of discontinued operations 130.5 138.1 Total liabilities 1,824.1 1,003.0 Stockholders' equity: 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, 16,590,722 and 16,484,550 shares issued — — Additional paid-in capital 13.7 14.9 Retained earnings 681.7 684.5 Accumulated other comprehensive loss, net of tax ( 30.8 ) ( 30.7 ) Total stockholders' equity 664.6 668.8 Total liabilities and stockholders' equity $ 2,488.7 $ 1,671.8 The accompanying notes are an integral part of these consolidated financial statements. 2 CLEARWATER PAPER CORPORATION Consolidated Statements of Operations (Unaudited

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1 Description of Business and Basis of Presentation Description of Business Clearwater Paper Corporation (the "Company," "our" or "we") is a premier manufacturer and supplier of bleached paperboard focused on servicing independent converters in North America. We also offer services that include customer sheeting, slitting, and cutting. Prior to the completion of the sale of our consumer products division, we manufactured and sold consumer and parent roll tissues to major retailers, including grocery, club and discount stores. On May 1, 2024, we completed the acquisition of a paperboard manufacturing facility and associated business in Augusta Georgia. See Note 3 Business Acquisition for more information about the acquisition. On July 21, 2024, we signed a binding agreement with Sofidel America to sell our consumer products division. This anticipated sale represents a strategic shift in our operations and financial results resulting in discontinued operations accounting treatment associated with this division. For all periods presented, the operating results associated with the consumer products division have been reclassified to discontinued operations and have been shown as net income from discontinued operations, net of taxes. The assets and liabilities associated with these businesses have been reflected as current and long-term assets and liabilities of discontinued operations in the Consolidated Balance Sheets. Additionally, certain reclassifications have been made to our continuing business to reflect certain intercompany transactions between the consumer products division and our remaining entity such as treatment of intercompany sales and cost inputs. For the three and nine months ended September 30, 2023, the impact of this reclassification was an increase to net sales of $18.3 million and $58.8 million and an increase to cost of sales of $18.4 million and $58.9 million. See Note 4, Disconti

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