SPOKANE, Wash. (News release) -- Clearwater Paper Corporation, a premier independent supplier of bleached paperboard to North American converters, today reported financial results for the fourth quarter and year ended December 31, 2024.

With the completion of the sale of our tissue business on November 1, 2024, all periods presented include our former tissue segment as discontinued operations and the paperboard segment plus corporate expenses as continuing operations. Total operations includes both continuing and discontinued operations.

2024 FULL YEAR HIGHLIGHTS

• Acquired Augusta, Georgia paperboard facility on May 1, 2024; sold tissue business on November 1, 2024
• Net sales from continuing operations of $1.4 billion, up 22% compared to 2023, primarily due to incremental volume from our Augusta acquisition
• Net sales from total operations of $2.2 billion, up 6% compared to 2023
• Net loss from continuing operations of $74 million, or 4.41 per diluted share compared to net income from continuing operations of $49 million, or $2.85 per diluted share in the last year
• Net income from total operations of $196 million or $11.70 per diluted share, which includes the gain on sale of our tissue operations of $307 million ($219 million after tax or $13.11 per diluted share) compared to $108 million, or $6.30 per diluted share in last year
• Adjusted EBITDA from total operations of $182 million compared to $281 million last year, down primarily due to lower paperboard pricing
• Reduced net debt by $199 million, repurchased $10 million of outstanding shares

"2024 was a transformational year for Clearwater Paper. We took significant steps to focus our strategy on becoming a paperboard packaging company. We acquired a high-quality manufacturing facility in Augusta, Georgia, increasing our paperboard capacity by nearly 75% and improving our geographic footprint in North America," said Arsen Kitch, president and chief executive officer. "We also divested our tissue business for $1.06 billion at closing and used the proceeds to de-lever our balance sheet and position the company for future growth in paperboard."

OVERALL FOURTH QUARTER AND FULL YEAR RESULTS

Net sales from total operations were $483 million for the fourth quarter of 2024, down 6% compared to fourth quarter 2023 net sales of $513 million. Net income from total operations for the fourth quarter of 2024 was $199 million, or $11.91 per diluted share which includes $307 million of gain on sale of the tissue division ($219 million after tax) compared to $18 million for the fourth quarter of 2023, or $1.06 per diluted per share. Adjusted EBITDA from total operations was $21 million in the fourth quarter of 2024, compared to $63 million in the fourth quarter of 2023. The increase in net income was driven by the gain on the sale of our tissue operation, offset by lower sales prices and the planned major maintenance at our Augusta, Georgia facility. The decrease in our total company Adjusted EBITDA was driven by the planned major maintenance at our Augusta, Georgia facility, lower sales prices and the divestiture of our tissue operations on November 1, 2024.

Net sales from total operations were $2.2 billion for 2024, an increase of 6% compared to 2023 net sales of $2.1 billion. Net income for 2024 was $196 million, or $11.70 per diluted share, compared to $108 million for 2023, or $6.30 per diluted share. Adjusted EBITDA from total operations was $182 million for 2024, compared to $281 million for 2023. The increase in net income was driven by the gain on the sale of our tissue operation, offset by lower sales prices. The decrease in our total company Adjusted EBITDA was driven by lower sales prices and higher maintenance costs partially offset by higher sales and production volume due to our acquisition of the Augusta facility.

Sales Volumes and Prices:

• Sales volumes were 306,692 tons in the fourth quarter of 2024, an increase of 63% compared to 188,018 tons in the fourth quarter of 2023. Sales volumes were 1,080,898 tons for the year ended 2024 compared to 751,520 tons for the year ended 2023.
• Paperboard average net selling price decreased 9% to $1,177 per ton for the fourth quarter of 2024, compared to $1,297 per ton in the fourth quarter of 2023. Paperboard average net selling price decreased 12% to $1,210 per ton for the year ended 2024, compared to $1,375 per ton for the year ended 2023.

COMPANY OUTLOOK

"We continue to experience challenging SBS industry conditions, with supply exceeding demand, but we remain optimistic about the future growth prospects of paperboard packaging. We are taking actions to address the resulting near term margin pressure by reducing fixed costs, including eliminating more than 10% of all positions across the company. These combined actions should deliver $30 to $40 million in cost savings in 2025. While our industry is currently in a down cycle, we continue to invest in our assets to ensure that they remain competitive in the long-run," concluded Kitch.