Clearwater Paper Corporation reported financial results for the 1Q 2017.The company reported net sales of $437.5 million for the 1Q 2017, essentially flat with net sales of $437.2 million for the 1Q 2016.
Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the 1Q 2017 were $7.5 million, or $0.45 per diluted share, compared to net earnings of $18.4 million, or $1.05 per diluted share, for the 1Q 2016.
The decrease in net earnings was due primarily to higher input costs for natural gas, transportation and maintenance, and costs related to the closure of the company's Oklahoma City converting facility, partially offset by lower wage and benefit costs due to the implementation of warehouse automation and the shutdown of two paper machines in the Neenah, Wisconsin mill.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $48.1 million for the 1Q 2017 compared to $58.9 million for the 1Q 2016.
Adjusted EBITDA for the quarter was $49.3 million, down 17.9% compared to 1Q 2016 Adjusted EBITDA of $60.1 million. The $10.8 million decrease in Adjusted EBITDA was primarily a result of the same higher input costs affecting GAAP net earnings in the 1Q 2017.
"We achieved solid results in the 1Q 2017 due to strong demand for both consumer products and paperboard, positive contributions from the Manchester Industries acquisition, and our team's continued smart work and focus," said Linda K. Massman, president and CEO. "This is a significant year for Clearwater Paper as we look forward to completing the final year of our current strategic plan, which includes warehouse automation, the continuous pulp digester in Lewiston, Idaho, and the operational efficiencies that are vital to improving our cost structure. The exciting work on the Shelby, North Carolina plant and warehousing expansion is also underway."
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp.
