Clearwater Paper Corporation Vertical Partners Global Paper & Packaging Conference March 8, 2012 |
1 Forward-Looking Statements • difficulties with the completion of our new tissue manufacturing and converting facilities, including the completion of our new through-air-dried paper machine; • difficulties with the integration process or the realization of the benefits expected from our acquisition of Cellu Tissue; • changes in raw material and energy costs, including changes in the cost and availability of wood fiber and wood pulp; • changes in freight costs and disruptions in transportation services; • the loss of large customers; • customers' product preferences; • changes in the United States and international economies; • cyclical industry conditions; • competitive pricing pressure for the company's products; • reliance on a limited number of third-party suppliers of raw materials; • an inability to successfully implement our expansion strategies; • labor disruptions; • unanticipated manufacturing disruptions; • changes in general and industry-specific laws and regulations; and • unforeseen environmental liabilities or expenditures. Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward- looking statements, whether as a result of new information, future events or otherwise. This presentation contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies to grow our business, optimize profitability and build a high performance culture, the expected delivery and budget relating to our new tissue machine and converting lines in Shelby, North Carolina, expected future cost savings from cost synergies relating to our Cellu Tissue acquisition, efficiency projects and reductions to our cost structure, including our Lean manufacturing program, future growth and market opportunities, including in the eastern U.S., internal and external pulp purchases and transfers, internal pulp production and requirements, customer purchases of Private Label tissue, production capacity of operating divisions, our share repurchase program and the expected benefit thereof, our capital allocation objectives, our financial priorities such as growing free cash flow and maintaining modest leverage, estimated annual EBITDA sensitivities, sales volumes, input costs, and our financial condition and results of operations. Words such as “anticipate,” “expect,” “intend,” “will,” “plan,” “goals,” “target,” “project,” “believe,” “schedule,” “estimate,” “may,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those expressed or implied by the forward- looking statements contained in this presentation. Important factors that could cause or contribute to such differences include the risk factors described in Item 1A of Part I of our Form 10-K for the year ended December 31, 2011, as well as the following: |
2 • We are a company formed in late 2008 with more than 60 years of operating history • A leader in Private Label consumer tissue and bleached paperboard • Focused on producing high quality products that help our customers build their brands • Operate in two segments of similar size ¹ – Pulp and Paperboard: 43% – Consumer Products: 57% • Financial overview – 2011 Net Sales: $1.9 billion – 2011 Adjusted EBITDA: $195.5 million ² – 5 year average annual Free Cash Flow (FCF) generation (2007-2011): $48.0 million ² 1 Based on net sales for 2011 Introduction to Clearwater Paper 2 See “Appendix: Detailed Financials” for the definition of Adjusted EBITDA and Free Cash Flow as well as the reconciliation to the most comparable GAAP measures |
3 • Lead Private Label quality • Expand geographically • Expand retail channel penetration Our Strategy • Improve sales mix • Reduce costs • Continue to improve quality • Develop common culture • Drive for results • Attract and retain high performers Build a High Performance Culture Optimize Profitability of Paperboard Business Grow our Tissue Business |
4 • Expansion of the Consumer Products Segment: – acquisition of Cellu Tissue, and – start up of two new converting lines and initiation of construction of our new TAD paper machine in Shelby, NC • Continuing to optimize the pulp and paperboard mills to improve cost structure • First U.S. Private Label manufacturer to offer FSC products • 2-for-1 stock split and $30 million repurchase program in third quarter 2011 • Sold our sawmill for $30 million in late 2011 to allow the Pulp and Paperboard Segment to focus on core operations Accomplishments Since the 2008 Spin-off |
5 • Complete new paper machine and corresponding converting lines in Shelby, NC on time and on budget • Expand customer base to align with the expected start up of the paper machine in fourth quarter 2012 • Launch Lean Manufacturing program company-wide to reduce costs and improve efficiencies • Achieve $35-$40 million annual run rate cost synergies associated with the acquisition of Cellu Tissue 2012 Objectives |
6 New Paper Machine |
Shelby Paper Machine – Our Accomplishments and Goals • Remain ON BUDGET with original estimate of $260-$280 million • Remain ON TIME with paper machine estimated to start up in fourth quarter 2012 • Manufacture and deliver QUALITY products • Remain ON TASK with dedicated project team to ensure results 7 • First two converting lines operational • Consolidate third-party warehouse to Shelby • Paper machine and remaining converting lines operational • Commence product trials |
Shelby 8 |
Shelby 9 |
Shelby 10 |
11 Cellu Tissue Acquisition |
12 The acquisition of Cellu Tissue has provided us with: Strategic Benefits of Acquisition • A national manufacturing footprint that allows greater operational efficiencies • New retail channel opportunities • An estimated $15-$20 million in cost synergies in 2012 and an estimated cost synergies annual run rate of $35- $40 million by the end of 2012 |
Breakdown of Estimated Annual Acquisition Cost Synergies 1 13 Manufacturing – Moving parent rolls to converted cases Transportation – Product spec changes and lower miles Warehousing – Closing duplicate facilities Procurement – Purchasing power and economies of scale Fiber – Increased use of internal pulp Wages – Streamlining processes and overhead 1 Estimated annual run rate cost synergies of $35-$40 million by the end of 2012 |
14 Consumer Tissue |
15 Attractive Industry Characteristics Within the tissue market, Private Label penetration has also grown substantially since 2002 ² The tissue market has grown an average of 2% annually since 1996 ¹ Source: RISI and IRI 1 Based on converted short tons 2 Represents market share as a % of sales in U.S. grocery channel |
16 Therefore they require: • National brand-like quality to support high quality store brands • High quality packaging and branding support • Complete mix of product offerings to support retailer assortment objectives • Category management support and expertise • Experience and execution to deliver a comprehensive Private Label tissue program Private Label is a Strategic Focus for Retailers |
Tissue is an Important Category for U.S. Retailers Segment % Category (cases) Annual Sales Bath Tissue 53% $4.2B Paper Towels 32% $2.5B Facial Tissue 10% $795MM Paper Napkins 5% $360MM Est. Total Category $7.86B SOURCE: 52 Week Sales Food, Drug, Mass without Wal-Mart, May 29, 2011, Symphony IRI 17 |
Private Label Quality is More Important Than Ever Before 18 Mid 60’s to 70’s 2011 • Private Label has become more brand-like in quality since the early days of generic store brand tissue • Clearwater Paper manages over 1,300 retail package SKU’s for its customers |
19 Complex Segmentation Requires Expertise • Clearwater Paper is well represented in all segments of the tissue category, including a leading presence in the value/economy product tier • Clearwater Paper is the category leader in providing a full-range of product tier Private Label offerings nationwide |
20 Clearwater Paper Adds Unique Value Through FSC and Rainforest Alliance Certification |
21 Paperboard |
22 Attractive Industry Characteristics Source: RISI 1 Top 5 manufacturers in 1998 were International Paper, Westvaco, Temple-Inland, Georgia-Pacific and Potlatch. Top 5 manufacturers in 2011 were International Paper, MeadWestvaco, Georgia-Pacific, Evergreen Packaging and Clearwater Paper 2 Based on tons produced 3 Average price per short ton of 16 pt. SBS folding carton C1S 2011 North American Bleached Paperboard (SBS) Production Pulp and Paperboard Capacity Top 5 Manufacturers Stable demand for U.S. paperboard products Demand Price 1 |
Estimated Industry Mix 23 SOURCE: RISI / Company Websites / Internal Estimates Cup Liquid Packaging Folding/CIS |
24 Efficiency and Optimization • Lean manufacturing initiatives focusing on non-capital solutions for driving out waste and improving quality • Sold our sawmill in late 2011 for approximately $30 million and signed a long-term residual supply agreement • Cost reduction projects such as: • Lower Columbia reload facility for sawdust to increase fiber supply • Chip screening at Lewiston to improve quality • Strong pulp integration – we internally produced approximately 64% of our pulp requirements in 2011 |
Chip Screening 25 |
26 Financial Overview |
Financial Goals and Priorities • Create strong shareholder return • Grow free cash flow through strong operating performance • Maintain modest leverage in the range of Net Debt/EBITDA of 1x – 4x • Deploy capital effectively • Focus on appropriate liquidity levels for growth and business cycles 27 |
28 Our objective is to allocate capital using a dynamic framework to create strong returns to shareholders while providing appropriate liquidity to meet growth objectives and compete effectively. Capital Allocation Return Timeframe Greenfield M&A Stock Repurchase Debt Pay Down Pension Payments Dividend Capital allocation CLW has deployed Shorter Longer Illustrative of Projects Meeting Return Hurdle Rates Capital |
Share Repurchase • Authorization to repurchase up to $30 million of common stock • Purchases help offset share dilution from equity incentive plans • During the fourth quarter of 2011 we repurchased 41,700 shares of outstanding common stock at an average price of $32.30 per share • Through year-end 2011 we had repurchased 333,300 shares at a total cost of $11.3 million 29 |
$196 Financial Track Record $34 $53 $128 $104 $93 $80 $35 $51 $94 $134 8.8% 6.0% 13.9% 12.2% 10.1% 2007 2008 2009 2010 2011 Adjusted EBITDA and Segment Adjusted EBITDA 2 5 Yr. Average: $143 $452 $504 $554 $570 $1,092 $731 $751 $696 $803 $836 2007 2008 2009 2010 2011 30 ($ in millions) Net Sales and Segment Net Sales 1 $1,183 $1,255 $1,250 $104 $75 5 Yr. Average: $1,398 $174 $1,373 $167 $1,928 1 Excludes intersegment net sales and transfers. Net sales for 2010 for CPD includes four days of Cellu Tissue results. Prior periods have no Cellu Tissue amounts 2 See Appendix: “Detailed Financials” for the definition of Adjusted EBITDA and Segment Adjusted EBITDA as well as the reconciliation to the most comparable GAAP measures 3 Adjusted EBITDA margin percentage calculated by dividing Adjusted EBITDA by Net Sales CPD Adj. EBITDA Margin % 3 PPD |
Historical Cost Drivers – Wood Fiber 31 Total Cost 1 : % of Total Cost of Sales 2009 2010 2008 $325.4 M 28% $259.6 M 25% $304.5 M 26% 1 Excludes intersegment amounts and Cellu Tissue amounts prior to acquisition • Wood fiber includes pulp, wood chips, sawdust and saw logs (until the November 28, 2011 sale of our sawmill) • Generally we use a mix of pulp including northern softwood, southern softwood, northern hardwood, eucalyptus and recycled • In 2011, we utilized 95% of our internally generated pulp which represented approximately 64% of our total pulp needs 2011 $487.6 M 29% Wood Fiber |
Historical Cost Drivers – All Other 32 Total Cost: % of Total Cost of Sales 2009 2010 Energy 2008 Total Cost: % of Total Cost of Sales Total Cost 1 : % of Total Cost of Sales $143.0 M 12% $114.7 M 10% $97.3 M 9% $92.0 M 8% $123.2 M 10% $100.3 M 9% $117.3 M 10% $ 61.9 M 5% $70.0 M 7% $82.4 M 7% $123.2 M 12% $132.3 M 11% Maintenance & Repairs Total Cost: % of Total Cost of Sales Chemicals 1 Excludes related labor costs Transportation 2011 $130.2 M 8% $148.1 M 9% $99.8 M 6% $174.7 M 10% |
33 Estimated Annual Cost Sensitivities Change 2011 EBITDA Variable Units $/Unit Units Purchased Pulp $/Tonne $50.00 450,000 +/- $23 Chips/Sawdust $/Ton $5.00 1,750,000 +/- $9 Transportation $/Gallon $1.00 8,820,000 +/- $9 Chemicals $/Prod Ton $5.00 1,300,000 +/- $7 Natural Gas $/mmbtu $0.50 10,400,000 +/- $5 $0 $5 $10 $15 $20 $25 $30 ($ Millions) |
34 ($ in millions) 1 See Appendix “Detailed Financials” for the definition of EBITDA, Adjusted EBITDA and Free Cash Flow as well as a reconciliation to the most comparable GAAP measures. 2009, 2010 and 2011 amounts are Adjusted EBITDA and all other periods represent EBITDA 2 See Appendix “Detailed Financials” for supporting schedules 3 We converted gallons previously claimed under the Alternative Fuel Mixture Tax Credit, or AFMTC, to the Cellulosic Biofuel Producer Credit, or CBPC Free Cash Flow 2011 free cash flow was impacted by Shelby capital, taxes paid in connection with our transition to CBPC ³ and pension funding 2007 2008 2009 2010 2011 EBITDA/Adjusted EBITDA ¹ $103.7 $75.4 $174.3 $166.8 $195.5 Capital Expenditures (20.5) (21.3) (19.3) (46.1) (134.1) Cash Taxes Paid ² (14.1) (5.6) (41.3) (28.6) (43.1) Cash Net Interest Expense (13.0) (13.1) (15.1) (15.9) (43.6) Working Capital Dec (Inc) ² 37.6 (21.2) (99.6) 88.5 (85.6) Other Cash Flow Items ² (5.7) 6.6 88.2 (44.7) 34.6 Free Cash Flow ¹ $88.0 $20.8 $87.2 $120.0 $(76.3) |
35 ($ in millions) Balance Sheet 1 December 31, December 31, December 31, 2009 2010 2011 Assets Current Assets Cash, Restricted Cash & Short-Term Investments $190.8 $148.7 $64.2 Receivables, net 94.5 153.3 176.2 Taxes Receivable 101.3 10.4 10.0 Inventories 169.8 228.3 244.1 Prepaid Expenses and Other 15.9 48.8 50.8 Non-Current Assets Property, Plant & Equipment 364.0 654.5 735.6 Goodwill & Intangibles - 285.9 279.2 Other 11.2 15.4 11.2 Total Assets $947.5 $1,545.3 $1,571.3 Liabilities Current Liabilities Accounts Payable & Accrued Liabilities 109.8 184.6 144.6 Other 9.9 10.5 9.9 Non-Current Liabilities Long-Term Debt 148.3 538.3 523.7 Deferred Taxes - 61.1 69.4 Other Long-Term Liabilities 242.3 210.5 264.3 Accrued Taxes 73.5 72.0 74.5 Total Liabilities $583.8 $1,077.0 $1,086.4 Total Stockholders' Equity $363.7 $468.3 $484.9 Total Liabilities & Stockholders' Equity $947.5 $1,545.3 $1,571.3 Adjusted EBITDA to Interest Expense, net 1 11.2X 7.4X 4.4X 0.9 3.2 2.7 Total Debt/Adjusted EBITDA 1 See Appendix “Detailed Financials” for the definition of Adjusted EBITDA as well as a reconciliation to the most comparable GAAP measure |
36 Appendix: Detailed Financials |
37 Income Statement ($ in millions) 1 See Appendix for definition of EBITDA and a reconciliation to most comparable GAAP measure 2007 2008 2009 2010 2011 Net Sales $1,183.0 $1,255.3 $1,250.1 $1,373.0 $1,928.0 Costs & Expenses Cost of Sales 1,083.8 1,179.4 1,052.2 1,173.8 1,702.5 Selling, General, & Administrative 46.8 47.4 71.1 100.4 110.0 Income from Canadian Lumber Settlement - - - - - Alternative Fuel Mixture Tax Credit - - 170.6 - - Income from Operations $52.4 $28.5 $297.4 $98.8 $115.4 Margin (%) 4.4 % 2.3 % 23.8 % 7.2 % 6.0 % Depreciation and Amortization 51.3 47.0 47.4 47.7 76.9 EBITDA 1 $103.7 $75.4 $338.6 $146.5 $192.7 Margin (%) 8.8 % 6.0 % 27.1 % 10.7 % 10.0 % Interest Expense 13.0 13.1 15.5 22.6 44.8 Debt Retirement Costs - - 6.2 - - Other Expense (Income) - - - - (0.3) Earnings Before Income Taxes $39.4 $15.3 $275.7 $76.2 $70.9 Income Tax Provision 14.1 5.6 93.2 2.4 31.2 Net Earnings $25.3 $9.7 $182.5 $73.8 $39.7 |
38 Reconciliation of GAAP to Non-GAAP: Net Cash from Operating Activities to Free Cash Flow ($ in millions) 1 2009 amount excludes $170.6 million of alternative fuel mixture tax credits for the period late January through December 31, 2009 2007 2008 2009 1 2010 2011 Net Cash Provided by Operating Activities $108.5 $42.1 $54.2 $185.6 $68.4 Capital Expenditures (20.5) (21.3) (19.3) (46.1) (134.1) Non-cash Net Interest - - 0.4 6.7 1.3 Non-cash Net Taxes - - 51.9 (26.2) (11.9) Free Cash Flow $88.0 $20.8 $87.2 $120.0 $(76.3) |
39 Free Cash Flow – Working Capital ($ in millions) 2007 2008 2009 2010 2011 Dec (Inc) in Receivables $18.8 $(8.8) $9.5 $(9.9) $(25.6) Dec (Inc) in Tax Receivables - - (101.3) 93.8 0.4 Dec (Inc) in Inventories (8.5) (14.0) (16.8) (3.9) (18.7) Dec (Inc) in Prepaid Expenses 0.4 (0.5) 0.1 (5.0) (0.2) Inc (Dec) in Taxes Payable 18.1 0.8 (0.8) - 2.2 Inc (Dec) in Accounts Payable and Accrued Liabilities 8.9 1.3 9.7 13.5 (43.7) Working Capital Dec (Inc) $37.6 $(21.2) $(99.6) $88.5 $(85.6) |
40 Free Cash Flow – Other ($ in millions) 2007 2008 2009 2010 2011 Equity-Based Compensation Expense $3.3 $2.3 $5.6 $8.5 $8.1 Employee Benefit Plans (1.0) 1.1 14.1 15.0 16.9 Funding of Qualified Pension Plans - - - (25.1) (12.5) Excess Tax Benefit from Share- based Payment Arrangements - - (0.1) (0.9) (0.9) Change in Non-current Accrued Taxes - - 73.5 (4.3) 2.5 Change in Deferred Taxes (8.1) 4.9 (4.6) (15.0) 14.8 Other 0.2 (1.7) (0.3) (22.9) 5.7 Other Cash Flow Items $(5.7) $6.6 $88.2 $(44.7) $34.6 |
41 Reconciliation of GAAP to Non-GAAP: Clearwater Paper EBITDA and Adjusted EBITDA 1 See last page of this Appendix for definitions of EBITDA and Adjusted EBITDA ($ in millions) 2007 2008 2009 2010 2011 Net Earnings $25.3 $9.7 $182.5 $73.8 $39.7 Income Tax Provision 14.1 5.6 93.2 2.4 31.2 Interest Expense 13.0 13.1 15.5 22.6 44.8 Earnings Before Interest and Income Taxes 52.4 28.5 291.2 98.8 115.7 Depreciation & Amortization 51.3 47.0 47.4 47.7 76.9 EBITDA 1 $103.7 $75.4 $338.6 $146.5 $192.7 Alternative Fuel Mixture Tax Credit - - (170.6) - - Debt Retirement Costs - - 6.2 - - Cellu Tissue Acquisition Related Expenses - - - 20.3 - Lewiston, Idaho sawmill sale related adjustments - - - - 2.9 Adjusted EBITDA¹ $103.7 $75.4 $174.3 $166.8 $195.5 |
42 Reconciliation of GAAP to Non-GAAP: Clearwater Paper Segment EBITDA and Segment Adjusted EBITDA ($ in millions) 1 See last page of this Appendix for definitions of Segment EBITDA and Segment Adjusted EBITDA 2007 2008 2009 2010 2011 Consumer Products Operating Income $17.6 $37.3 $112.2 $80.8 $42.8 Depreciation and Amortization 16.3 15.7 16.0 17.0 50.4 Other, net - - - - 0.1 Segment EBITDA 1 $33.9 $53.0 $128.2 $97.8 $93.3 Cellu Tissue Acquisition Related Expenses - - - 6.4 - Segment Adjusted EBITDA 1 $33.9 $53.0 $128.2 $104.2 $93.3 Pulp & Paperboard Operating Income $45.0 $4.4 $201.8 $64.9 $92.8 Depreciation 34.6 30.9 29.9 28.7 26.1 Segment EBITDA 1 $79.6 $35.3 $231.7 $93.6 $118.9 Alternative Fuel Mixture Tax Credits - - (170.6) - - Lewiston, Idaho sawmill sale related adjustments - - - - 15.4 Segment Adjusted EBITDA 1 $79.6 $35.3 $51.1 $93.6 $134.3 |
43 Definitions of Non-GAAP Measures Clearwater Paper Definitions of Non-GAAP Measures EBITDA is a non-GAAP measure that Clearwater Paper management uses to evaluate the cash generating capacity of Clearwater Paper. The most directly comparable GAAP measure is net earnings. EBITDA, as defined by Clearwater Paper management, is net earnings adjusted for net interest expense, income taxes, and depreciation and amortization. It should not be considered as an alternative to net earnings computed under GAAP. Adjusted EBITDA is a non-GAAP measure that Clearwater Paper management defines as EBITDA adjusted for items that we do not believe are indicative of our core operating performance, including acquisition related expenses and alternative fuel mixture tax credits. The most directly comparable GAAP measure is net earnings. It should not be considered as an alternative to net earnings computed under GAAP. Segment EBITDA is a non-GAAP measure used by Clearwater Paper management. The most directly comparable GAAP measure is segment operating income. Segment EBITDA, as defined by Clearwater Paper management, is segment operating income adjusted for segment depreciation and amortization. It should not be considered as an alternative to segment operating income computed under GAAP. Segment Adjusted EBITDA is a non-GAAP measure that Clearwater Paper management defines as Segment EBITDA adjusted for items that we do not believe are indicative of the segment’s core operating performance, including alternative fuel mixture tax credits. The most directly comparable GAAP measure is segment operating income. It should not be considered as an alternative to segment operating income computed under GAAP. Free Cash Flow is a non-GAAP measure that Clearwater Paper management uses to evaluate the financial performance of Clearwater Paper. The most directly comparable GAAP measure is net cash from operating activities. Free Cash Flow, as defined by Clearwater Paper management, is net cash from operating cash flows adjusted for capital expenditures, non-cash net interest and non-cash taxes. It should not be considered as an alternative to net cash from operating activities computed under GAAP. |
44 Appendix: Estimated Pulp Flow and Synergy Example |
45 Pulp Flows 2011 (MT) 36% 64% Pulp Sources Internal 90% 10% By Division 26% 74% Recycled/Virgin Recycled DIP, Other 38% 62% Virgin Hardwood • BEK Softwood Consumer Products Idaho Pulp and Paperboard External 450,000 MT • NBHK • SBHK • NBSK • NBHK • NBSK • SBSK • SOP, |
Synergy Opportunity Example Underutilized large converting winder in Neenah, WI (formerly Cellu Tissue) can more efficiently produce Away-from-Home products and 1000 count bathroom tissue Actions: 1. Relocate a wrapper machine from Elwood, IL (formerly CLW) to Neenah, WI 2. Reposition an underutilized case packer in Neenah, WI 3. Redirect the existing 1000 count product from Lewiston, ID (formerly CLW) and Thomaston, GA (formerly CLU) to Neenah, WI 4. Increase the production schedule of the existing underutilized large converting winder in Neenah, WI from 5 to 7 days Expected Results: 1. Creates new case capacity in the systems at Neenah, Lewiston and Thomaston 2. Reduces freight 3. Improves paper machine trim 46 |
47 Appendix: Other Information |
48 2010 North American Tissue Market by Producer Remaining Manufacturing Base Highly Fragmented Large Brand Manufacturers Source: Equity research. 1 Represents Clearwater Paper tissue parent roll capacity combined on a pro forma basis with Cellu Tissue tissue parent roll production The Combined Company was the Sixth-Largest Manufacturer in the North American Tissue Market in 2010 |
1 Clearwater Paper capacities exclude expected tissue parent roll manufacturing in Shelby, NC of 70,000 tons annual capacity expected to be operational in 2012 49 National Manufacturing Footprint Bleached Paperboard 775,000 tons Tissue Parent Roll 586,000 tons Tissue Converting 489,000 tons Pulp 845,000 tons Clearwater Paper Capacities 1 Clearwater Paper Pulp Clearwater Paper SBS Clearwater Paper Tissue Converting Clearwater Paper Tissue Parent Roll Corporate and administrative Spokane, WA Corporate Headquarters Lewiston, ID Converting Capacity: 102,000 tons Lewiston, ID (Pulp) Capacity: 540,000 tons Lewiston, ID (SBS) Capacity: 445,000 tons Lewiston, ID (Tissue) Capacity: 189,000 tons Las Vegas, NV (TAD) Capacity: 39,000 tons Las Vegas, NV Converting Capacity: 51,000 tons Cypress Bend, AR (Pulp) Capacity: 305,000 tons Cypress Bend, AR (SBS) Capacity: 330,000 tons Elwood, IL Converting Capacity: 68,000 tons Wiggins, MS Capacity: 59,000 tons Neenah, WI Capacity: 85,000 tons Ladysmith, WI Capacity: 56,000 tons Oklahoma City, OK Converting Capacity: 19,000 tons East Hartford, CT Capacity: 36,000 tons Gouverneur, NY Capacity: 39,000 tons Alpharetta, GA Thomaston, GA Converting Capacity: 58,000 tons Long Island, NY Converting Capacity: 38,000 tons Shelby, NC (TAD) Announced Capacity: 70,000 tons Neenah, WI Converting Capacity: 99,000 tons Menominee, MI Capacity: 36,000 tons St. Catharines, ON (TAD) Capacity: 47,000 tons Menominee, MI Converting Capacity: 27,000 tons Shelby, NC (TAD) Converting Capacity: 27,000 tons |
50 Expansion Opportunities Clearwater Paper has been a strong influence in the development of Private Label tissue in the Western U.S. An opportunity exists to grow Private Label category development and company share in the Eastern U.S. Source: SymphonyIRI InfoScan. 52 Weeks Ending May 29, 2011. Data excludes Cellu Tissue |
North American Tissue Capacity Change 51 * Estimated Source: RISI and Other Industry COMPANY LOCATION CONV/TAD TONS STARTUP DATE CHANNEL/BUSINESS/PRODUCTS Procter and Gamble Box Elder, UT TAD 80,000 4th Q, 2012 Retail/Brand/Bounty First Quality Anderson, SC TAD 70,000 3rd Q, 2012 Retail/P.L./BRT Florelle Tissue Brownville, NY CONV 35,000 2nd Q, 2012 * Retail/P.L./Virgin Fiber Patriarch Partners Gorham, NH CONV (Overmechanica) 35,000 3rd Q, 2012 * Retail/P.L. Kruger Memphis, TN TAD 70,000 4th Q, 2012 Retail/Brand/P.L. Clearwater Paper Shelby, NC TAD 70,000 4th Q, 2012 Retail/P.L./BRT & HHT ST Paper Franklin, VA CONV 70,000 1st Q, 2013 Parent Roll Sales/Recycled South Georgia Tissue Snelling, SC CONV 70,000 1st Q, 2013 * Parent Roll Sales/Recycled Wausau Paper Harrodsburg, KY ATMOS 75,000 1st Q, 2013 AFH/Recycled COMPANY LOCATION CONV/TAD TONS STARTUP DATE CHANNEL/BUSINESS/PRODUCTS Georgia Pacific Port Hudson, LA ETAD 100,000 4th Q, 2012 * Retail/Brand & P.L./HHT & BRT SCA Menasha, WI ATMOS (PM#3) 70,000 1st Q, 2013 AFH COMPANY LOCATION CONV/TAD TONS STARTUP DATE CHANNEL/BUSINESS/PRODUCTS Kimberly-Clark Everett, WA CONV/UCTAD/DRC (All 5 PM) 193,000 1st Q, 2012 Retail/AFH/PL-Club/Parent Roll Sales Kimberly-Clark Chester, PA CONV (PM #16) 27,000 1st Q, 2012 Napkin/BRT REBUILDS ANNOUNCED SHUTDOWNS ANNOUNCED NEW PAPER MACHINES |