NYSE$CLW

Clearwater Paper Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Achieved strong performance due to elevated demand for tissue products and solid operational execution.

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.

Headline financials

Total Revenue

$481M

Previous: $452M+6.3%
EPS (adj)

$1.67

Previous: -$0.02+8450.0%
Adjusted EBITDA

$79M

Previous: $44.3M+78.3%
Paperboard Avg Net Selling Price per ton

$984.00

Previous: $1K-2.0%
Capital Expenditures

-$7.3M

Previous: -$108M+93.3%
Free Cash Flow

$15.5M

Previous: -$109M+114.2%
Net Income

$22.8M

Previous: -$424K+5477.4%
Operating Income

$48.1M

Previous: $15.3M+213.5%
Gross Profit

$83.8M

Previous: $42.2M+98.7%
Cash & Equivalents

$48.2M

Previous: $41.8M+15.3%
Total Assets

$1.84B

Previous: $1.96B-5.8%
Stock-Based Comp

$3.3M

Previous: $1.27M+159.8%

Revenue & EPS history

Clearwater Paper · Revenue · Quarterly

$481M

Q2 2020+6.3%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

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

Tailwinds

  • 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

Headwinds

  • Closely monitoring economic conditions
  • Assessing the impact on our business for the balance of the year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-2.7%

Avg return

Earnings day

-4.4%

Avg return

5 days after

-4.0%

Avg return

30 days after

39%

26 / 66 earnings

Positive

+24.1%

Q1 2022

Best reaction

-33.5%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-13.5%-14.3%+9.8%
Q4 2025-8.6%-15.1%-26.6%
Q3 2025-8.5%-6.2%-5.8%
Q2 2025-18.4%-24.9%-26.7%
Q1 2025+7.4%+4.0%+15.1%
Q4 2024-8.4%-3.9%-17.6%
Q3 2024+8.3%+4.8%+5.0%
Q2 2024-23.3%-34.5%-39.1%
Q1 2024+12.0%+12.4%+30.3%
Q4 2023+3.4%+7.5%+21.7%
Q3 2023-2.1%+3.1%+1.2%
Q2 2023+14.8%+10.9%+18.8%
Q1 2023-15.9%-12.2%-18.7%
Q4 2022-0.2%-1.0%-10.8%
Q3 2022-15.1%-10.4%-10.4%
Q2 2022+15.3%+20.1%+18.4%
Q1 2022+24.1%+20.8%+28.6%
Q4 2021-12.7%-7.4%-6.0%
Q3 2021+0.4%-6.5%+0.5%
Q2 2021+2.1%+8.4%+18.5%
Q1 2021-10.0%-14.0%-16.4%
Q4 2020-18.7%-15.1%-11.4%
Q3 2020-12.2%-13.2%-8.0%
Q2 2020+2.5%-4.7%-14.1%
Q1 2020+21.2%+21.5%+36.5%
Q4 2019+10.2%+11.2%-18.5%
Q3 2019+2.2%-0.4%+6.1%
Q2 2019-13.9%-0.3%-18.5%
Q1 2019-10.7%-3.7%-20.1%
Q4 2018-16.0%-17.0%-25.4%
Q3 2018-6.6%-6.3%-0.9%
Q2 2018+11.9%+14.8%+28.5%
Q1 2018-33.5%-40.3%-35.8%
Q4 2017-25.1%-23.0%-13.8%
Q3 2017+3.2%+4.5%+4.0%
Q2 2017-9.2%-9.0%-6.6%
Q1 2017-13.4%-12.6%-18.8%
Q4 2016-6.7%-3.9%-17.3%
Q3 2016-14.7%-15.3%-3.7%
Q2 2016-7.1%-5.4%-11.0%
Q1 2016+10.1%
Q4 2015-5.9%
Q3 2015+1.2%
Q2 2015+10.2%
Q1 2015+1.8%
Q4 2014-17.4%
Q3 2014+0.4%
Q2 2014+12.0%
Q1 2014-1.4%
Q4 2013+9.6%
Q3 2013+8.3%
Q2 2013-0.7%
Q1 2013-8.6%
Q4 2012+4.3%
Q3 2012-6.6%
Q2 2012+4.9%
Q1 2011-0.9%
Q1 2012+7.2%
Q4 2009-0.4%
Q1 2010-0.4%
Q4 2011-0.4%
Q3 2011-1.8%
Q3 2010-1.8%
Q2 2010-5.2%
Q4 2010-5.2%
Q2 2011-5.2%

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