CLW - Earnings call transcript Q4 2019 | Clearwater Paper Corporation

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Operator

Welcome to Clearwater Paper Corporation's Fourth Quarter and Full Year 2019 Earnings Conference Call.

As a reminder, this call is being recorded today, February 26, 2020. I would now like to turn the conference over to Mr. Sloan Bohlen, Investor Relations. Please go ahead.

Sloan Bohlen

Dalam. you, Thank thank and and joining Paper's Clearwater Good year you XXXX quarter full earnings fourth afternoon, for conference call.

the Officer; Chief shortly after Joining and and full for on call market were Linda quarter are me released XXXX Massman, the Chief fourth Executive Officer. close. and Financial Hrivnak, today's year Bob Financial results today President

for You slide, costs, current items company's to Investor certain first providing price website and our will mix, the outlook year find volume at which of is a presentation XXXX the of supplemental posted of the information, including on an shipment and and the outlook quarter full page clearwaterpaper.com. XXXX, as Relations other for of

information will information provided reference information certain rereading non-GAAP GAAP prepared Slide the slide, be press discussion. is it information. in included we going our our in A incorporate website. than or our providing X information the the by supplemental remarks. to of in into the supplemental to the comparable afternoon's Additionally, note, non-GAAP Please release on this reconciliation I’m of Rather

the environment answers. open with first we'll quarter the today's in update and with Linda an conclude year and on And Linda review begin of with for our the the remarks detailed fourth the then will then certain items and the call Bob Then an will and an follow a overview the overview for of for results quarter full business Massman our year. outlook XXXX. questions strategic projects quarter XXXX. call of full Hrivnak prepared will and

to over call the turn will I now And Linda.

Linda Massman

thank you Hello, everyone joining for you, and us Sloan. today. Thank

quarter net of provide quarter and tissue, of highlights which sequentially quarter quarter X Slide quarter. the the of fourth were another million, business for grew on some which with over $XXX We strong XXXX. the consecutive by for finished driven up begin the fifth supplementals were in fourth X% will to the sales We

are strong importantly, lower favorable by compared fourth offset conditions was relatively enjoying To compare margin a growth paperboard of fourth sequentially year-over-year Total the we sales this challenging to both for time will from the quarter. a operating of XXXX. with drive shipments paperboard this of X% clear, quarter remarks. basis a on partially Bob margins segments history his given Most expanded for to recent and backlogs in more across both be year. prepared on touch

In adjusted timing last despite had we've adjusted over as $XX input result our expense a quarters, EBITDA, Arkansas terms best outage of and The and well eight the lower EBITDA fiber maintenance drove as pulp maintenance costs of lighter million. mill. at

Slide Now turning to X.

Let's look at XXXX. back

closer X% that sales, operations we For Ladysmith up is we recorded sold Wisconsin growth in our from X% that growth Revenue August revenue in from XXXX from was was result the of $X.X for of our XXXX. This operation. year, year, Ladysmith, exclude to include both the if we XXXX. approximately our which Recall million $XX businesses. billion from about our of driven sales

and outages in million. a Clearwater Overall, optimization. XXXX move in was North paper we at Shelby, proud strategies. affected growth the Paper machine In at for as gives of The capacity which across the look our was we have distribution forward, maintenance facility, planned startup the EBITDA year $XXX us adjusted of number to are business future by new Carolina XXXX, executing

the ultra-quality Shelby both is provides produce completed view. conventional differentiator products, us strong to strategic expansion capability in our which Our the recently and

recognized that finalist Innovation RISI stock paperboard, a brand cup of as converters. NuVo Packaging was Fastmarkets cup our happy for key I'm a expand we service advantage stock introduced recently our providing with footprint to report award. our Additionally, us food to the NuVo

to see against gain growth a perspective, from branded market it labels. continue to continues market broader private share as we Lastly, in label

the to I Before review turn Bob, let's initiatives. capital over our call

full run mid up reach in to target on we rate XXXX. to We ramp our by First, EBITDA and facility. XXXX, rate Shelby by full benefit XXXX remain production full continue shipment run

At is project is which reactor now Idaho commissioned, our pulp facility. component final of that plant, the at Lewiston, our polysulfide optimization a

We are the not polysulfide the from incremental seeing working are financial benefits yet from benefits operational the to and project. process, achieve optimal expected and financial

in of these comments. the discuss will of We as call, expected our the impact projects outlook later part

review of the let our position. Bob to Bob? results including call turn me detail our Now operating to financial a

Bob Hrivnak

My be Linda. focused on you, quarterly comments will results. our Thank

discussion and operations First segments the I overall our with financial on some on position. individual the conclude on and then color will provide

million X divisions net the both and in fourth of to year-over-year was growth a on Slide as the grew quarter by basis, supplemental, than sequentially consumer X% strength products down lower offset more in $XXX Turning X% to sales paperboard was of our sales. due

diluted of $X.XX $X of are diluted net or per a or million We income reporting net and quarter million share share XXXX. $XX.XX loss XXXX, of third the the to net per million in in per of quarter $X.XX or share, of $XX loss fourth $XXX compared a diluted

share basis, of EBITDA XXXX. and reporting XXXX, million adjusted diluted $X.XX the quarter per income fourth of $X fourth in in or $X third share fourth loss of of the On a XXXX. the of for the the XXXX, are income diluted we quarter million quarter adjusted compared of a compared of XXXX, quarter million the XXXX, quarter and in per non-GAAP or quarter Adjusted $X.XX of $XX million of in $XX third per $X in to million to or was share million fourth diluted $X.XX $XX

their some prior and the prior and provide for to color quarter compared our as year segments the of quarter quarter. me results on Let each

with Paperboard. and then move Pulp start and Products Consumer me to Let

markets segment businesses are I operates through faces our business While each operations, through our will integrated opportunities. different walk Therefore, each pulp independently. in and different

for quarter Slide the between of bridge refer XXXX and Products EBITDA an to Consumer the Let's adjusted division. third for X fourth

quarter Products Consumer EBITDA of in $XX adjusted of earned of $XX the XXXX. to quarter compared fourth XXXX, the million, For third million

Products bridge, were in headwind on see by driven lighter the the Price compared and quarter, pulp can this as and to the slight transportation million, was maintenance energy up Shelby and pricing, XXXX quarter lower due the partially by pricing adjusted a the lower fourth costs to EBITDA $X for offset was and ramp you facility. of transportation lower costs. costs, As by higher pulp mix Consumer

third Paperboard Let's X EBITDA the and for Slide to move for an the bridge between adjusted of Pulp fourth XXXX quarter division. and

Paperboard the third $XX quarter of EBITDA and earned $XX of in XXXX. to million, XXXX, the fourth million For adjusted compared quarter Pulp of

and the at major this partially costs maintenance facility. our input by maintenance major you see the driven bridge, of at offset Arkansas absence was outage by As on can Idaho the facility our favorable

mix the and a modest as headwind Pricing compared well to quarter. as were volumes third

and in fees our higher of attributed higher compared to to $X IT quarter higher historically, paperboard of in of EBITDA cloud-based $X the compared fourth $X few items the to by XXXX input professional As was quarter expenses and the to fourth are as by higher to expense and to higher costs other third XXXX versus solutions of migration, that XXXX the fourth to fourth to quarter note, due lower million Arkansas million miscellaneous quarter due adjusted costs million pulp XXXX costs. offset costs XXXX. outage the other were capitalized due quarter maintenance of by corporate as A our compared

of higher levels. from Net million increased the XXXX quarter interest due to our debt fourth expense $X

quarter, cash to $X fourth sequentially. $XX debt, million million During use resolves the interest which reduction we in our of reduce expense a

Our quarter XXXX. third fourth quarter XX% of effective XX% compared rate to was tax in the

XX%. rate year, of we effective at an ended the For

discrete excluding we forward annual tax items, XX%. Going be rate effective estimate to our

the year working Now in turning capital. ended to with we $XXX sheet, the balance million

Our about the for cash XXXX quarter full million $XX quarter million in ABL in were fourth and and year. $XXX ended by capital the reduced a million the We our facility expenditures with $XX $XX fourth balance. million

adjusted the leverage by total basis EBITDA. points, XX our declined times Our X.X trailing ratio XX-month

turn That over remarks call back will concludes and my now I Linda. to the

Linda Massman

Thanks, Bob.

we Before the for markets RISI’s our of we in our which provide color for XXXX, each review includes the view environment businesses. operate market I that on some will outlook of

reflects estimated The private momentum in North dollar panel terms the with market. American Starting for tissue data positive IRI brands.

First, tissue total year-over-year. grew market X% the approximately

private Second, over for grew the brands same brands versus X.X% national XX.X% period.

Third, with strong for ago. private acceptance quality the fourth category. to brand to consumer preference The data the products especially continues private market point a XX.X% XX.X% to compared growing a year and share ultra quarter brands ended in

the new tons line and annum. growth RISI’s we in tissue long-term out bath for outpace in Private segment tissue capacity demand continues towels. year ultra approximately per total to growth believe brand the to $XXX,XXX category growth per and X.X% X% with paper to averages over tissue

expected capacity utilization Assuming to online all capacity scheduled imports that XX% remain plus per net as is between XX.X% and comes RISI.

is flat compared as XX.X% year XX.X%. end to fourth industry down RISI's operating from of to paperboard, American the quarter, XXXX XX% of remainder According is rate capacity the to which for to and of Turning the quarter ratio, XX.X% slightly ago, was rate North third operating AF&PA XXXX. the of the a outlook compared

box the year backlogs approximately by products end is trend sustainable look bleach lower more of longer food The weeks. of alternative. backlog board weeks At environmentally the industry Industry four a reported and RISI ago. RISI reported companies from the plastics. polystyrene backlog positive to second as away trend about We positioned are than the continue of single segment X% benefit the X.X service quarter believe of term consumer board used to remains from for industry for and packaging

outlook, to our On and Page items in outlook, notice from on full-year. added addition for have XX are some the usual to you quarterly as our also supplemental XX we

we your feedback. we investors and Following additional discussions be with welcome disclosure helpful certainly should believe the

our which So quarter the see you XX. with with on first that, will let's begin for XXXX outlook slide

outlook past. same have this is the we presented in notice will format the in You

is quarter on be relative adjusted of million EBITDA. for to quarter, our following EBITDA the XXXX million to the the to fourth For range $XX $XX based expectation first our key adjusted in assumptions

higher and a our to to First in million bars headwind expect volumes mix of first on that pricing be $X $X by we you we the two assume see offset bridge. can modest as million

to Arkansas a high voltage a without our utilities, winds $X million expect power. high which disruption facility damaged January our in we $X transmission headwind we were from lines power in weather-related Second, and million at

restored power run the place utility facility to a Our of period. in temporary the outage by mitigated this We after losses generators days. putting time during portion for eight

and credits to fourth one-time quarter costs lower million million will incremental repeat. maintenance $X expect we as not the Lastly, in costs of $X

weather costs higher Additionally, quarter incur to first the we due to in energy winter conditions.

detail XX slide to our to outlook XXXX. turning for Now

that walked Before our note our products. and many the major estimates market prices and on are for outside in including which industry through management's and based information and part we I data based control commodity on factors is assumptions, our prices expectations are market current

full our year said, items let results. for our that walk year through relative me With XXXX certain you to respect full to with XXXX outlook

growth we sales First in XXXX. to expect net X% of X%

our trends relative $XX expect the XXXX. we of tissue adjusted to and outlook, as serve drivers million Turning XXXX volume million here to of impact The a key price headwind EBITDA to currently to price continued and include index reduction. competition in SBS $XX mix

headwind currently million increases and other For $XX $XX a driven to expect by costs wage inflation. we million general benefit and

maintenance. to Turning

We XXXX million to driven expect maintenance Idaho $XX expectation by our facilities. in outages Arkansas to million $XX compared costs down or have a step at not either to

For pulp to EBITDA current pricing indices. million per our $XX by to favorably lower we adjusted outlook expect $XX price impact million

operation. of our million in XXXX optimization move end transportation combined impact Shelby continued adjusted for closer our Shelby as we $XX our Lewiston production our markets. for $XX expect we EBITDA realizing million and lastly major expansion to to benefits a pulp And we continue the the capital positive At projects, to

are benefit of the expected in be it EBITDA to competitive intend originally incremental making are sales. and and the In At if reaching XXXX, full full million Shelby production assured pleased focus levels utilization capacity, to for paper of There at $XX two achieved run will factors to benefit manufacturing on driving $XX be Lewiston, XXXX of million generating are rate when million we challenging that to to our cost $XX full project. we have realized.

pricing benefit you material pricing project we come cost realize under rest positive would see current in business good approximately pulp benefit of that assumption third outlook. across a XXXX our will the that is savings anticipated we our pulp or course news At First, from a will the not our benefit. pulp. The lower original of as has raw of

falling another come that the expected the facility original commissioning from impact fiber is third the well the to yields. second yields the expectations; reactor The of are from following of our enhanced anticipated project below polysulfide benefits we

outlook. benefit further yield. continue to our optimize will pulp incorporated We future to into Any working process will achieve the be incremental

know to closing, positioned In de-lever to we that are this or flow capabilities to generate balance our I sheet. year team improving ensure leadership main the cash well focus on with Arsen operational

end will I we my and questions. here So take prepared now remarks your

Operator

Markets. first from Our question with Adam Josephson Instructions] comes [Operator KeyBanc Capital

You line is open. now

Adam Josephson

good Linda and Bob, afternoon.

Linda Massman

Hi Adam.

Bob Hrivnak

Adam. Hi

Adam Josephson

I since be much guiding much pulp you on caps in start lower that a then, seem there topic late to, – Hi. were with Bob, call. really now pulp last expecting beat what you you the about this pulp and if pre-announced if know hasn't than these when off to you're positively we then about was of and related your on at talked But in seemingly pulp, into you moved of all questions ground to contracts several and kind than more why recall benefit the you October, cost. weren't in-part expected

from the changed confused reporting it. weren't prices why really to explain So just a late change pulp to since what's this asking a now of So I'm huge pulp we you you're before can what I'm and getting on. were you didn't hoping going little as pulp given benefit benefit? then that confused just October now more little and I'm

Bob Hrivnak

Yes.

up, pulp So pricing basically Adam but now the the way level volume in we index. contracts, – RISI have a the contracts contractual set tie the to our are also we our

the that about, we So we've from caps impacted XXXX analysis away the in like historic year-over-year in moves which XXXX. talked

get our in indexes, $XX $XX for the to based we're basically the we year on million million benefit. outlook, should So market forecast that projecting XXXX a

Adam Josephson

immediate the there there just that to positively better you I’m in gave trying then pulp much changed Is was guidance move? that, than what movement no pulp it to didn’t if that XQ, relative or me your from up really thought change initial got given how when and then you you would for saying was you this actually to understand just to preannounced. changed benefit dramatically set I’m caused what Right, are Correct prices prices from contracts something. if... you have you

Bob Hrivnak

Yes.

second year. to we half the of started Adam So, see in benefits the the

reporting you If pulp benefit Slide supplemental, basically bridge in we wood to look cost from X that at us fiber in have okay, the QX over QX million. the on a so $X

XXXX, of net benefit XXXX. half to began the latter see that's So we through will benefit the flow and

Adam Josephson

it, Bob, exactly to and this that me helped Okay. of if you what extent terms And that elaborate but in of in of what timing was and coming the is quarter, you the favorable expenses on forgive your that I guidance? missed out XQ XXXX

Bob Hrivnak

Okay.

want interested I to you sure make I question. So the Are in... understand

Adam Josephson

When you said expenses. was the of of timing quarter’s the thought it better than you because pre-announced, part you in

Bob Hrivnak

Yes.

of from Then that of outages year. So couple we we favorable our second pre-announced maintenance of major process have in toward would Pulp, basically half we and end fiber recognize closing impact in had January, cost the two as were books, the wood we dollars. the million a the of a we

call then would pushed had QX. maintenance couple another we into of And expected, was That favorable million than I spend So items. lower what dollars. there routine got some was that

example, We benefit. and costs, lower For credit. other had had $X which miscellaneous a generated tax some adjustments million another we

had So items, recognizing that was update guidance about $X range. thought of to we million we it our important favorable

Adam Josephson

of you SBS reductions? in thinking Right the the XX are exactly is that, have SBS market Linda, food from about those you're you I Carton Can Folding Folding that. overview, and RISI you of us February timing business lags what held how and impact XXXX but versus February What in food I gave expecting part now? by service? and are remind service. an much appreciate SBS your may Obviously missed just, I how think market the reduced But Carton

Linda Massman

Yes.

will Adam. I So,

regard mix to pieces in of service. the is XX% the little I portion that SBS, There's say big food Carton Folding is with primarily is about would our So and service. and but balance a there, balance other of food parts some

the flat so about – XX% at utilization year the backlogs, of so be forecasting We we at XXXX in industry at versus that year, in RISI strong looked XXXX utilization look capacity. was at for So roughly end the in ended great. looking with the to

SBS guess I out Yes, mean, it's a competitive definitely there out as all of come been lower it we're came price Carton changes. I as another and in taking I recently Folding together. saw has working places would There's market. those just we a RISI and some supply with summarize those one come competitor shifts and through just

Adam Josephson

to I you Bob of CapEx, And Thanks. it. guided $XX Got to on million think just $XX one this million CapEx year.

the It previously to a was me wrong that expecting maintenance? situation correct if are long-term. company maintenance why But seem sustainable million; think spend you there. I about like very $XX for I'm indicated doesn't below

trying going understand and year this your into even next to Just CapEx perhaps for year. plan

to If you're maintenance this underspend maintenance next year. you'd going have year presumably to outspend

Bob Hrivnak

Yes.

that basically at CapEx this to because think it's Because high projects and budget, level our this years, look strategic our in line we we CapEx think with business can last I back We're three was if of really our is you we also in on appropriate maintenance I five this for with spend. we've But the because line year you flow generating balance focused So the historically. particular deliver maintenance on. when it go historical – the CapEx primarily of done cash sheet. so is CapEx free positive were focused maintenance what is our

Adam Josephson

much, so Bob. Thanks

Operator

you. Thank

comes next with Steve D.A. from Our Chercover question Davidson.

Your ahead. go

Steve Chercover

is to Linda. be that congratulations, nice Must transition underway. Thanks progress and knowing

Linda Massman

Steve. Yes. you, Thank

Steve Chercover

fiber, expectations trying So benefits, pulp more million the million, were and to tailwind. QX obviously bit I'm I for the also the we guess a annualized into just because $XX drill $XX

And which your Pulp? in happened chips? what what wood, between difference assume is the parse I happened you can So in

Bob Hrivnak

management XX view a level based on million we million. going potentially our projections index But but detail, not to that's could that has outlook, the our tailwind during change year. the $XX Page XXXX certainly of a that an and market We're of assumption view. That's that $XX go to into current have

Steve Chercover

Okay.

So you us the what in RISI can versus grades that average? is XXXX tell projecting buy XXXX you the for

Bob Hrivnak

our I woodfiber. I don't have would what slide pulp but is that capture would think view be our expectation XX The kind detail, regarding and of fit. Page outlook on

Steve Chercover

Alright.

this was You before were coronavirus the one do you but probably RISI’s know answer established can't assumptions then, the of magnitude understood? if really either

Bob Hrivnak

insight. don't have I kind of that

Linda Massman

Yes, I don’t know.

Bob Hrivnak

Alright.

but... you, trying So to I'm trip not

Steve Chercover

this. most additions retail switch let's know capacity are or you Hopefully, the Well, significant with just that competing on three should you two gears. detail you tissue, On side? can the

Bob Hrivnak

Yes.

terms coming pressure there in So of is tissue, angles. a from of couple

the of First be retail pressure. landscape mass, competition dollar of to under stores. grocers, club a all, among continues There's lot and

board that headwind there space capacity a on to a we're of over is And new put that's Tissue short-term. it the can next is So two which facing. of going be then comes market that but board on growing, terms lumpy in in absorption the new as of lot pressure somewhat is capacity the coming years, capacity.

Linda Massman

just might private more business the side more the you I the been the and And to look clearly time conventional and history, I and that did pressure look would into this you label numbers if I at growing. and And these two, of say break-up Steve, private ultra threat add competitive that if faster. we into we report And if of has segments usually growing is competitive ultra label there. in two conventional at in

provide. an we'd that's guess detail And extra so I

Steve Chercover

articulate makes Okay. different cup stock? NuVo what and then it Can the Two more from quickly, stock legacy over. cup you your turn I'll

Linda Massman

Sure.

fiber, stock is XX% So includes which as new and about cup talked us branded different this we it us. what's post-consumer for up is to a for

want beautiful being does up obviously received brand they in is the pick would stock It cup post-consumer by I we're in great say, And for again. We new XX%. Packaging cup. market. the and flexibility It I very fiber proud award, And can very the surface, effective prepared into to to customers allow print far, for goes it a provide And which how finalist our composition. to did much so I a just which well And to remarks, to say Innovation say maintains congratulate in and the of is a my just our by were it and such team this we customers. but love great going I'm named a product. see RISI’s

Steve Chercover

is it And that pretty you that sanitary. office want It post-consumer paper call What's waste, that I don't to but or mixed. be there? use the must fiber paper. mixed grade

Linda Massman

that's Yes. the it for is what part. And most

Steve Chercover

in Why full lower the one. last is Considering got year a we've Okay, in depreciation Shelby XXXX? than XXXX mix? of

Bob Hrivnak

at depreciation have depreciating off. Well, is – have the of we starting asset some and total time roll are look you I them over to think assets we base, that if our

that I depreciation in about depreciation argue, So is outlook $XXX be for projecting $XXX the of would That would in we're amortization our million terms versus million. XXXX. XXXX, and

change. So, I mean, it's a small

Steve Chercover

it. Got

Thank you. Okay.

Linda Massman

Steve. Thanks,

Operator

you. Thank

Capital question from Paul ahead. from next Our comes Please Quinn Markets. go RBC

Paul Quinn

very Thanks afternoon. Good Yes. much.

Linda Massman

Paul. Hi,

Paul Quinn

million I'm question maintenance estimated savings extra called got come a savings, $XX of confused guessed you the the $X.X million out, but we've to you and or I'm on side. also million I sort from? the savings Adam pulp confused mean, on at that where asked $XX But answer. the partial guys

Bob Hrivnak

not I'm understand I the focused on Are question. or pulp you So sure maintenance?

Paul Quinn

No.

million on guide would the million. thought $XX quarter, you you for $XX be got $XX.X to Just and million your maintenance

$X just that $XX additional to savings. there's came $XX I'm take So, and the million million a just mid million, from? there if wondering difference where I point just

Bob Hrivnak

Okay.

it, in you to larger think event basically a than we QX QX, outage if in the Arkansas the Lewiston So, in was outage from QX. QX had much about that

the Slide shown that's the of delta piece big a really that's supplementals. in So X on

Paul Quinn

Yes. maintenance I higher being costs. facility, a it’s larger Lewiston understand that going to

Bob Hrivnak

Yes. For way. it you – about can this about the It’s think outage,

pie, If the at I total you XX%. let’s Arkansas Lewiston say would look XX%, argue

in we of outage. than larger did QX size the it's had expense in the more component. So given a QX We

Linda Massman

originally Paul, And lower question, on than we thought. maintenance of we in QX were another part your think I expense

QX were into is that where timing the perspective. versus was a from what and pure done blow given in projects of QX. Some We'll just QX scheduled work

Paul Quinn

And guess was question trying on the price, the to other had Okay. RISI Thanks, that I to get. of I Linda. I I answer hoping then kind dropped to that's – through. paperboard. That flow going just guess the was

your Just that. wondering effected by mixes percentage be will what of

Linda Massman

Yes.

have we into that's XXXX, for businesses those So carton, factored estimates. pricing folding we of so changes guidance mind, in keep for in about And outlook our XX% good to these number all rough whatnot our a in our use. and of

in So they're there. fully

Paul Quinn

understood Okay. folding you’re XX% that the carton. No, I

So apply doesn't it remaining in doesn't or it XX% the affect way? any

Linda Massman

no. No,

Paul Quinn

Okay. a on question market And then just paperboard. outlook

I XXXX? think RISI. some further drop you the anticipate in were price people with surprised drops with any price Do

Linda Massman

I'm going imagination. what built Yes. any RISI stretch we say predict to the to not the provided. try action that is all going is foresee to the of of would pricing publish just I by outlook that into But we

it’s there. So all in

Paul Quinn

Best That’s of I all right. All luck. had.

Linda Massman

Thanks Paul.

Operator

Thank you.

from question next from Adam ahead. go Please Capital Josephson Our comes KeyBanc Markets.

Adam Josephson

and more question. one taking thanks flow Linda follow-ups. just cash for so my much Bob, Bob,

you But you tax think will your through certain this year I moving cash and what I parts north you flow not time XX%. expect I’m of cash to have are you not and it had said, I positive, you’re talking be. all positive when don’t generate talking to XX%? go say the assume

that reasonable So zero XX%, something is assumption? and between a

Bob Hrivnak

what on be used the we’ve assumptions for to flow provided that XX, Adam, the assumptions range. outlook EBITDA on generate with done So slide free cash can Page other XXXX impact we’ve

provided So and that analysts. we’ve to investors

that generate, balance we to your with ranges to the is be. and is going can priority our cash own you But flow sheet. going we’re where take up the come forecast, think delever you our bottom free to be So line

Adam Josephson

laid the can us math case? for just me? do I mind you in you it’s give – there, just can a range that mean, out you Would all if

Bob Hrivnak

think you’ll be free flow We actually not look a provide assumption number. our you the to But page, able generate at we’re – to easily going cash if I estimates.

Adam Josephson

one tissue. just on Linda, Okay.

talked not Do the in business, case capacity the when a commodity out. driving of supply supply ongoing tunnel in You any And expected conditions this taken end being added, actually weak, competitive are market. the mean, typically here? of gets is to light I continue subtracted. about course additions see you at

conditions expect you industry do improve? stabilize point that what and for at to meaningfully So matter

Linda Massman

Yes, Adam.

on all can we that a think we would come I question we’re didn’t additions control. that that to of answer. capacity focused is difficult anticipate I Well, have that everything is the online. say here

obviously don’t we actions. So control competitor

And of store on we of focused we’re Shelby working closely so and on want can our target needs, that brands, mark we retailers, our product just every are out are is what bring they with Shelby. ensuring quality getting with the we this business. their in year ensuring expect what course offer is on in up demand meet their of which increasing really the and customer And service that benefit for

Adam Josephson

Sure.

understand. you Linda, chunk supply then taken you mentioned, last have on big as I Now of SBS, And toward year. one getting of end out the

ramp couple You been chunk that’s it and year. coming past gradually this on another have to over years continue the will up of

you this words So those perhaps, tell you’re thinking mouth, along mistaken line. pull to want offset that if I’m two me but may think roughly in your each other. I don’t

industry cetera, change So these in et now in low-XXXs to do meaningful of are et conditions where you low-XXs expect the any operating they in and rates compared cetera? backlogs terms

Linda Massman

would think and it. just with it sight about the agree to say regard definitely XXXX to see a is a can is what I way, I Yes. That characterize right. And a And characterize to of fair XX% feels RISI way utilization. being we at forecasting line close you it, to

Adam Josephson

Right.

Okay. Thanks so Linda. much,

Operator

turn closing or that I’ll At gentlemen, and to the this for remarks. our time, Massman call session. question-and-answer additional any over does Ladies conclude Ms.

Linda Massman

day. in thank interest Have for Clearwater continued thank great Great, everybody us a your Paper. for joining and And you today you.

Operator

Clearwater and gentlemen, conclude you. XXXX Thank earnings do fourth the does your year that participation. quarter and end Ladies Paper conference appreciate call. We

disconnect. You may now

Clearwater Paper (CLW) 26 Feb 202019 Q4 Earnings call transcript