Mon, Feb 24, 2:35 PM (62 days ago)
In its 2024 10-K filing, Clearwater Paper Corporation (CLW) reported significant financial changes following its strategic acquisition and divestiture. The company acquired a paperboard manufacturing facility in Augusta, Georgia for approximately $710.6 million and sold its tissue business for $1.06 billion, resulting in a gain of $307.2 million. For the fiscal year ended December 31, 2024, Clearwater reported net sales of $1,383.6 million, a 21.8% increase from 2023, driven by the Augusta acquisition. However, net income from continuing operations was a loss of $74 million, impacted by lower sales prices and increased operating expenses, including $24 million in other operating charges related to acquisition costs. Despite these challenges, Clearwater aims for a positive outlook, targeting $30-$40 million in cost savings for 2025. The company’s financial condition remains stable, with total assets of $1,679.2 million and a debt level of $284.1 million as of December 31, 2024. Risk factors include reliance on a concentrated customer base, fluctuating raw material costs, and potential labor disruptions. The company’s market position is bolstered by its focus on sustainable paperboard products, aligning with industry trends towards recyclable materials.