Clearwater Paper Corporation has reported financial results for the third quarter of 2017.
The company reported net sales of $426.5 million for the third quarter of 2017, down 2.0% compared to net sales of $435.3 million for the third quarter of 2016. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the third quarter of 2017 were $0.9 million, or $0.05 per diluted share, comparable to net earnings for the third quarter of 2016 of $0.9 million, or $0.05 per diluted share, as a $2.4 million tax benefit from Federal tax credits in the third quarter of 2017 more than offset a pre-tax loss of $2.2 million for the quarter. Excluding certain non-core items identified in the attached Reconciliation of Non-GAAP Financial Measures, third quarter 2017 adjusted net earnings were $5.3 million, or $0.32 per diluted share, compared to third quarter 2016 adjusted net earnings of $2.4 million, or $0.14 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, were $31.3 million for the third quarter of 2017 compared to $32.0 million for the third quarter of 2016. Adjusted EBITDA for the quarter was $37.6 million, up 9.7% compared to third quarter 2016 Adjusted EBITDA of $34.3 million. The $3.3 million increase in Adjusted EBITDA in the third quarter of 2017 was primarily a result of lower general maintenance costs as well as lower wage and benefits expense resulting from warehouse automation projects at several of the company's facilities, the shutdown of two higher cost tissue machines at the company's Neenah, Wisconsin mill and the closure of the company's Oklahoma City facility. These were partially offset by higher input costs for pulp and transportation.
"During the quarter, we continued to focus on our long-term strategic plan to improve operating efficiencies and reduce expenses, resulting in the completion of two major strategic initiatives as part of a three-year strategic plan," said Linda K. Massman, president and chief executive officer. "As previously announced, our third quarter results were impacted by higher than expected pulp prices, major maintenance repair costs, and transportation rates due to inclement weather caused by hurricanes in the Southeast. To further enhance our competitive positioning, we have retained a strategic consultant, A.T. Kearney. We believe this is an important step toward optimizing our cost structure and we look forward to providing you with future updates," said Massman.
