CLEARWATER PAPER CP (CLW, Financial) filed Quarterly Report for the period ended 2012-06-30.
Clearwater Paper Corp has a market cap of $820 million; its shares were traded at around $34.89 with a P/E ratio of 15.4 and P/S ratio of 0.4.
Interest expense is mostly comprised of interest on our $375.0 million aggregate principal amount 7.125% senior notes due 2018 issued in October 2010, which we refer to as the 2010 Notes, and our $150.0 million aggregate principal amount of 10.625% senior notes due 2016 issued in June 2009, which we refer to as the 2009 Notes. Interest expense also includes amortization of deferred finance costs associated with the 2009 Notes, 2010 Notes, and our revolving credit facility. Interest expense before reductions for capitalized interest in 2012 is expected to decrease slightly compared to 2011 as a result of the 2011 third quarter redemption of our industrial revenue bonds. Interest expense will also be partially offset by our continued capitalization of interest for our TAD project, which we estimate will be $13.9 million in 2012 and $19.0 million over the construction phase of the project.
Our Consumer Products segment reported a $14.0 million, or 5.2%, increase in net sales for the three months ended June 30, 2012, compared to the three months ended June 30, 2011. The higher sales were due to a 3.3% increase in shipments resulting from a full quarter of production capacity at our converting facility in North Carolina, compared to a minimal amount of production included in the second quarter of 2011. Furthermore, net sales were also up as a result of a price increase implemented over the fourth quarter of 2011 and the first quarter of 2012.
Net sales for the Pulp and Paperboard segment were $35.1 million, or 15.5% lower in the three months ended June 30, 2012, compared to the three months ended June 30, 2011. The decrease was primarily due to the sale of our Lewiston, Idaho sawmill in November 2011. In addition, sales of external pulp were down $5.9 million compared to the second quarter of 2011 due to the increased internal usage of pulp we produce and a 30% decline in external pulp sales prices. A 4.3% decline in paperboard volumes, compared to record shipments in the second quarter of 2011, also contributed to the lower overall net sales.
Our Consumer Products segment reported a $22.6 million, or 4.2%, increase in net sales and a $31.3 million increase in operating income for the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The increase in net sales was due to higher net selling prices and increased shipments. In addition to the increased net sales, operating income was also favorably affected by lower purchased pulp, energy and transportation costs, which were partially offset by higher incentive compensation and commission expense, as well as the $1.0 million loss on the sale of the legacy Cellu Tissue foam manufacturing assets.
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Clearwater Paper Corp has a market cap of $820 million; its shares were traded at around $34.89 with a P/E ratio of 15.4 and P/S ratio of 0.4.
Highlight of Business Operations:
Selling, general and administrative expenses primarily consist of compensation and associated expenses for sales and administrative personnel, as well as commission expenses related to sales of our products. Our second quarter selling, general and administrative expenses were $30.5 million in 2012 compared to $27.5 million in 2011. The increase was primarily a result of higher incentive compensation expense, legal expense of approximately $1.0 million related to the First Quality/Metso Paper litigation and additional expense associated with the integration of Cellu Tissue information systems.Interest expense is mostly comprised of interest on our $375.0 million aggregate principal amount 7.125% senior notes due 2018 issued in October 2010, which we refer to as the 2010 Notes, and our $150.0 million aggregate principal amount of 10.625% senior notes due 2016 issued in June 2009, which we refer to as the 2009 Notes. Interest expense also includes amortization of deferred finance costs associated with the 2009 Notes, 2010 Notes, and our revolving credit facility. Interest expense before reductions for capitalized interest in 2012 is expected to decrease slightly compared to 2011 as a result of the 2011 third quarter redemption of our industrial revenue bonds. Interest expense will also be partially offset by our continued capitalization of interest for our TAD project, which we estimate will be $13.9 million in 2012 and $19.0 million over the construction phase of the project.
Our Consumer Products segment reported a $14.0 million, or 5.2%, increase in net sales for the three months ended June 30, 2012, compared to the three months ended June 30, 2011. The higher sales were due to a 3.3% increase in shipments resulting from a full quarter of production capacity at our converting facility in North Carolina, compared to a minimal amount of production included in the second quarter of 2011. Furthermore, net sales were also up as a result of a price increase implemented over the fourth quarter of 2011 and the first quarter of 2012.
Net sales for the Pulp and Paperboard segment were $35.1 million, or 15.5% lower in the three months ended June 30, 2012, compared to the three months ended June 30, 2011. The decrease was primarily due to the sale of our Lewiston, Idaho sawmill in November 2011. In addition, sales of external pulp were down $5.9 million compared to the second quarter of 2011 due to the increased internal usage of pulp we produce and a 30% decline in external pulp sales prices. A 4.3% decline in paperboard volumes, compared to record shipments in the second quarter of 2011, also contributed to the lower overall net sales.
Our Consumer Products segment reported a $22.6 million, or 4.2%, increase in net sales and a $31.3 million increase in operating income for the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The increase in net sales was due to higher net selling prices and increased shipments. In addition to the increased net sales, operating income was also favorably affected by lower purchased pulp, energy and transportation costs, which were partially offset by higher incentive compensation and commission expense, as well as the $1.0 million loss on the sale of the legacy Cellu Tissue foam manufacturing assets.
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