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Jun 30, 2020
Clearwater Paper Q2 2020 Earnings Report
Achieved strong performance due to elevated demand for tissue products and solid operational execution.
Key Takeaways
Clearwater Paper reported a strong second quarter with a record Adjusted EBITDA driven by elevated tissue demand, stable paperboard performance, and lower input costs. Net income was $23 million, and the company reduced net debt by over $100 million.
Delivered strong performance due to continued elevated demand for tissue products and solid operational execution
Net income of $23 million, or $1.36 per diluted share and Adjusted EBITDA of $79 million
Net debt reduction of over $100 million and liquidity improved to $264 million
Achieved a quarterly record Adjusted EBITDA due to elevated demand and production in tissue, stable paperboard performance and lower input costs, which resulted in strong free cash flow used to reduce our net debt.
Forward Guidance
For the upcoming quarter, our primary focus will remain the health and safety of our employees while we continue to operate our facilities and service customers. Demand for tissue products is expected to remain at elevated levels due to COVID-19 but slowly normalize as retail in-stock conditions and inventories continue to improve. We are also closely monitoring economic conditions and assessing the impact on our business for the balance of the year
Positive Outlook
- Focus will remain the health and safety of our employees
- Continue to operate our facilities and service customers
- Demand for tissue products is expected to remain at elevated levels due to COVID-19
- Slowly normalize as retail in-stock conditions and inventories continue to improve
Challenges Ahead
- Closely monitoring economic conditions
- Assessing the impact on our business for the balance of the year
Historical Earnings Impact
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Avg. Return Before/After Earnings
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