The following is a summary of the Clearwater Paper Corporation (CLW) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Clearwater reported net sales of $513 million for Q4 2023 and adjusted EBITDA of $63 million.

• Their tissue business contributed to more than $1 billion in sales and $150 million in adjusted EBITDA for 2023.

• Net income for Q4 was $17.6 million, increasing to $107.7 million for the full year.

• Adjusted EBITDA margin expanded to 12.3% in Q4 compared to 5.3% in the same period last year.

• Clearwater generated $40 million in free cash flow for Q4, and $117 million for the full year, contributing to a reduction of the net debt by $32 million in Q4 and almost $450 million since 2020.

Business Progress:

• Clearwater announced the pending acquisition of the Augusta, Georgia paperboard manufacturing facility, which is expected to add significant scale to their paperboard business and contribute $140 million to $150 million of adjusted EBITDA by the end of 2026.

• The company is planning to evaluate strategic options for their tissue business in the future.

• Clearwater intends to complete the Augusta acquisition in the second quarter of the year, funded with new secured debt, additional draws on existing facilities, and cash on hand.

• A robust performance in the tissue business is projected for 2024, despite a severe weather event affecting the Lewiston mill. There is also an anticipated increased demand for paperboard.

More details: Clearwater Paper IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.