Apr 25, 2013. /Lesprom Network/. Clearwater Paper Corporation reported financial results for the 1Q 2013. The company reported net sales of $460.8 million for the 1Q 2013, up 0.7% compared to $457.8 million for the 1Q 2012. The GAAP net loss for the 1Q 2013 was $(0.9) million, or $(0.04) per diluted share, compared to net earnings of $3.7 million, or $0.16 per diluted share, for the 1Q 2012, as the company said in a press release received by Lesprom Network. 

The net loss included $17.1 million in debt retirement costs, $3.5 million in mark-to-market impact of directors’ equity-based compensation expense, $0.2 million associated with the closing of the company’s Thomaston, Georgia facility and a tax benefit of $9.8 million associated with converting gallons from Alternative Fuel Mixture Tax Credits (AFMTC) to Cellulosic Biofuel Producer Credits (CBPC). Excluding those items, 1Q 2013 net earnings were $2.4 million, or $0.11 per diluted share, on an after-tax basis.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $34.6 million for the 1Q 2013. Adjusted EBITDA of $38.3 million was down 16% as compared to 1Q 2012 Adjusted EBITDA of $45.8 million mainly due to lower consumer products margins, as discussed further below.

“Net sales, volumes and pricing were strong in both the Consumer Products and Pulp & Paperboard divisions in the quarter,” said Linda Massman, CEO. “However, we faced some cost challenges that we expect to abate in the 2Q. Most of these were a result of limited inventory in retail tissue, caused by more demand in the quarter than we anticipated for conventional bathroom tissue. This had a negative impact on many of our cost categories, which was approximately $9 million in the 1Q. Despite these cost pressures, we still expect to achieve our $300 million adjusted EBITDA target for 2014.”

During the 1Q, the company repurchased approximately 830,000 shares of common stock at a total cost of $50.2 million. This amount includes $50 million associated with the company’s accelerated stock buyback program. The number of shares actually repurchased under the accelerated program through March 31, 2013 includes approximately 80% of the total number of shares expected to be acquired under that program. The company expects to repurchase the balance of its overall $100 million repurchase program by the end of 2013.

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine-glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the U.S. and Canada.