CLEARWATER PAPER CP (CLW, Financial) filed Quarterly Report for the period ended 2012-09-30.
Clearwater Paper Corp has a market cap of $925.3 million; its shares were traded at around $39.99 with a P/E ratio of 14.7 and P/S ratio of 0.5.
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 will be partially offset by our continued capitalization of interest for our TAD project, which we estimate will be $13.8 million in 2012 and approximately $18 million in total over the construction phase of the project. Interest expense before reductions for capitalized interest in 2012 is expected to continue decreasing slightly compared to 2011 as a result of the 2011 third quarter redemption of our industrial revenue bonds.
Net sales—Third quarter 2012 net sales decreased by $20.9 million, or 4.2%, compared to the third quarter of 2011, due to the sale of our Lewiston, Idaho sawmill in November 2011. Excluding net sales of $22.0 million from the sawmill in the third quarter of 2011, net sales for the third quarter of 2012 were slightly higher as a result of record quarterly shipments of approximately 139,000 tons from our Consumer Products segment as well as higher paperboard shipments. The increase in net sales was partially offset by lower external pulp sales due to increased internal usage of the pulp we produce, a 2.4% decline in paperboard net selling prices, and slightly lower overall tissue net selling prices due to increased non-retail tissue sales, which had lower net sales prices. These items are discussed further below under “Business Segment Discussion.”
Net sales for the Pulp and Paperboard segment decreased by $28.6 million, or 13.3%, in the three months ended September 30, 2012, compared to the three months ended September 30, 2011. The decrease was primarily due to the sale of our Lewiston, Idaho sawmill in November 2011, which accounted for $22.0 million of the segment's net sales in the third quarter of 2011. Paperboard net sales increased 3.0% to $184.9 million for the three months ended September 30, 2012, due to a 5.5% increase in shipments, partially offset by a 2.4% decrease in net selling prices. Net sales of our externally sold pulp were $2.4 million, down $11.9 million compared to the third quarter of 2011, due primarily to our increased internal usage of the pulp we produce.
Net sales for the Pulp and Paperboard segment were $80.3 million lower, or 12.6%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The decrease was primarily attributable to the sale of our Lewiston, Idaho sawmill in November 2011, which accounted for $64.1 million of the segment's net sales for the first nine months of 2011. Paperboard net sales increased slightly to $549.5 million for the first nine months of 2012 due to a 2.2% increase in shipments, which were partially offset by a 1.5% decrease in net selling prices resulting primarily from the sale of a lower proportion of higher priced extruded product in the 2012 period. The higher overall paperboard net sales were more than offset by a $22.7 million decrease in net sales of external pulp, which were largely attributable to increased internal usage of pulp we produce.
Read the The complete Report
Clearwater Paper Corp has a market cap of $925.3 million; its shares were traded at around $39.99 with a P/E ratio of 14.7 and P/S ratio of 0.5.
Highlight of Business Operations:
Major equipment maintenance and repairs in our Pulp and Paperboard segment also require maintenance shutdowns annually at our Idaho facility and approximately every 18 months at our Arkansas facility, which increases costs and may reduce net sales in the quarters in which the major maintenance shutdowns occur. In the first quarter of 2012, we had 17 combined days of scheduled machine downtime for the two paperboard machines at our Idaho pulp and paperboard mill and incurred approximately $15.5 million in major maintenance costs, excluding labor, compared to major maintenance costs of $11.4 million and $3.1 million, respectively, at the same mill in the first and third quarters of 2011. There was no major maintenance in the second and third quarters of 2012. A portion of our major maintenance originally planned for the fourth quarter of 2012 at our Arkansas facility has been deferred to the first quarter of 2013. Of the $4.3 million of costs we expect to incur for this major maintenance, $2.0 million is expected to be incurred in the fourth quarter of 2012, and the remainder is expected to be spent in the first quarter of 2013.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 will be partially offset by our continued capitalization of interest for our TAD project, which we estimate will be $13.8 million in 2012 and approximately $18 million in total over the construction phase of the project. Interest expense before reductions for capitalized interest in 2012 is expected to continue decreasing slightly compared to 2011 as a result of the 2011 third quarter redemption of our industrial revenue bonds.
Net sales—Third quarter 2012 net sales decreased by $20.9 million, or 4.2%, compared to the third quarter of 2011, due to the sale of our Lewiston, Idaho sawmill in November 2011. Excluding net sales of $22.0 million from the sawmill in the third quarter of 2011, net sales for the third quarter of 2012 were slightly higher as a result of record quarterly shipments of approximately 139,000 tons from our Consumer Products segment as well as higher paperboard shipments. The increase in net sales was partially offset by lower external pulp sales due to increased internal usage of the pulp we produce, a 2.4% decline in paperboard net selling prices, and slightly lower overall tissue net selling prices due to increased non-retail tissue sales, which had lower net sales prices. These items are discussed further below under “Business Segment Discussion.”
Net sales for the Pulp and Paperboard segment decreased by $28.6 million, or 13.3%, in the three months ended September 30, 2012, compared to the three months ended September 30, 2011. The decrease was primarily due to the sale of our Lewiston, Idaho sawmill in November 2011, which accounted for $22.0 million of the segment's net sales in the third quarter of 2011. Paperboard net sales increased 3.0% to $184.9 million for the three months ended September 30, 2012, due to a 5.5% increase in shipments, partially offset by a 2.4% decrease in net selling prices. Net sales of our externally sold pulp were $2.4 million, down $11.9 million compared to the third quarter of 2011, due primarily to our increased internal usage of the pulp we produce.
Net sales for the Pulp and Paperboard segment were $80.3 million lower, or 12.6%, for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The decrease was primarily attributable to the sale of our Lewiston, Idaho sawmill in November 2011, which accounted for $64.1 million of the segment's net sales for the first nine months of 2011. Paperboard net sales increased slightly to $549.5 million for the first nine months of 2012 due to a 2.2% increase in shipments, which were partially offset by a 1.5% decrease in net selling prices resulting primarily from the sale of a lower proportion of higher priced extruded product in the 2012 period. The higher overall paperboard net sales were more than offset by a $22.7 million decrease in net sales of external pulp, which were largely attributable to increased internal usage of pulp we produce.
Read the The complete Report
