Net earnings for the 2013 period included a $1.1 million benefit associated with the mark-to-market impact of directors’ equity-based compensation and $1 million of expense associated with the announced closing of the company’s Thomaston, Ga., converting and distribution facility. Excluding those items, 2Q 2013 net earnings were $11.6 million, or $0.51 per diluted share.
For 2Q 2012, excluding $1 million of expenses associated with the Metso litigation, a $1 million loss associated with the sale of legacy Cellu Tissue foam manufacturing assets and $0.3 million of expense associated with the mark-to-market impact of directors’ equity-based compensation, net earnings were $23.0 million, or $0.97 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $53 million for 2Q 2013. Adjusted EBITDA of $52.8 million was down 20.6% compared to 2Q 2012 Adjusted EBITDA of $66.5 million. The decrease in EBITDA and Adjusted EBITDA was due to higher transportation and purchased paper costs in the Consumer Products segment as a result of the through-air-dried (TAD) transition, as well as overall higher energy, wages and benefits, and maintenance costs.
“Our focus on internal execution in tissue and strong fundamentals in paperboard drove the quarter’s solid progress in EBITDA. Our new TAD tissue facility in Shelby, N.C., continues to ramp up consistent with our expectations,” said Linda Massman, president and CEO. “As a result, we continue to anticipate achieving our $300 million adjusted EBITDA target in 2014.”
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.