In This Article:
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Adjusted EBITDA (Q4 2024): $21 million, down from $63 million in the previous year.
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Adjusted EBITDA (Full Year 2024): $182 million, down from $281 million in 2023.
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Net Income Gain from Tissue Business Sale: $307 million in Q4 2024.
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Net Debt Reduction (Full Year 2024): $199 million, with $275 million of notes outstanding due in 2028.
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Net Leverage Ratio (Year-End 2024): 1.1x.
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Revenue Outlook (2025): Expected to be approximately $1.5 billion to $1.6 billion.
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Cost Savings Target (2025): $30 million to $40 million across SG&A and operations.
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Capital Expenditures (2025): $80 million to $90 million, including $70 million to $80 million of annual maintenance CapEx.
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Share Repurchase Program: Authorized $100 million, with $9 million repurchased through February 7, 2025.
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Industry Utilization Rate (2024): Improved to 85% from 82% in 2023.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Clearwater Paper Corp (NYSE:CLW) successfully completed the acquisition of the Augusta paperboard facility, increasing its paperboard capacity by 70% and enhancing its geographic footprint.
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The company completed the sale of its tissue business for $1.06 billion, significantly deleveraging its balance sheet and positioning itself for future growth in paperboard.
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Clearwater Paper Corp (NYSE:CLW) announced a new $100 million share repurchase program, demonstrating confidence in its financial position and commitment to returning value to shareholders.
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The company signed a major long-term supply agreement expected to fill open capacity and capture synergies from the Augusta acquisition, supporting future revenue growth.
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Clearwater Paper Corp (NYSE:CLW) is targeting $30 million to $40 million in cost savings for 2025, including a 10% reduction in workforce, to improve its cost structure and operational efficiency.
Negative Points
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The fourth quarter adjusted EBITDA was $21 million, a significant decline from the previous year, impacted by the divestiture of the tissue business and operational disruptions at the Augusta facility.
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Hurricane Helene and subsequent planned maintenance at the Augusta mill led to higher costs and operational challenges, affecting the company's performance.
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The paperboard industry continues to face lower market pricing and margin pressure due to utilization rates below historical averages.
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Clearwater Paper Corp (NYSE:CLW) anticipates higher energy costs in the first quarter of 2025, which could impact profitability.
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The company faces potential risks from tariffs on imports and exports, which could increase costs and affect its supply chain dynamics.