Clearwater Paper Reports Fourth Quarter and Full Year 2018 Results
Business Wire 12-Mar-2019 4:05 PM
Clearwater Paper Corporation (NYSE:CLW) today reported financial
results for the fourth quarter and full year of 2018.
The company reported net sales of $428.7 million for the fourth quarter
of 2018, which was $8.0 million or 1.8% lower than net sales of $436.7
million for the fourth quarter of 2017. The decrease was primarily due
to the sale of the company's mill in Ladysmith, Wisconsin in August 2018
and lower tissue shipments, partially offset by higher paperboard
shipments and pricing. Net loss determined in accordance with generally
accepted accounting principles, or GAAP, for the fourth quarter of 2018
was $187.8 million, or $11.39 loss per diluted share, compared to net
earnings for the fourth quarter of 2017 of $80.9 million, or $4.88 per
diluted share, which included a $70 million tax benefit related to the
2017 tax law changes.
The net loss included a $195.1 million non-cash goodwill impairment
charge related to the consumer products business taken in the fourth
quarter of 2018. The impairment charge relates to the goodwill arising
out of the company's acquisition of Cellu Tissue Holdings, Inc. in 2010
and will not result in any cash expenditures or affect the company's
cash position, cash flow from operating activities, liquidity position
or availability under its credit facilities.
Excluding certain non-core items identified in the attached
Reconciliation of Non-GAAP Financial Measures, fourth quarter 2018
adjusted net earnings were $7.4 million, or $0.45 per diluted share,
compared to fourth quarter 2017 adjusted net earnings of $14.4 million,
or $0.87 per diluted share.
Earnings before interest, taxes, depreciation and amortization, or
EBITDA, were $(149.7) million for the fourth quarter of 2018, compared
to $52.2 million for the fourth quarter of 2017. Adjusted EBITDA for the
quarter was $45.5 million, down 21.0% compared to fourth quarter 2017
Adjusted EBITDA of $57.5 million.
For the full year 2018, the company reported net sales of $1.7 billion,
which was flat with 2017 net sales. Price increases in tissue and
paperboard helped offset reduced tissue shipment volumes resulting
primarily from the sale of the Ladysmith, Wisconsin mill and changes in
customer orders. Net loss determined in accordance with GAAP for 2018
was $143.8 million, or $8.72 loss per diluted share, compared to net
earnings of $97.3 million, or $5.88 per diluted share in 2017. The net
loss in 2018 included the goodwill impairment charge described above,
and net earnings in 2017 included the significant tax benefit described
above. Excluding certain non-core items identified in the attached
Reconciliation of Non-GAAP Financial Measures, 2018 adjusted net
earnings were $42.0 million, or $2.55 per diluted share, compared to
2017 adjusted net earnings of $38.4 million, or $2.32 per diluted share.
EBITDA was $(0.9) million for full year 2018, compared to $177.3 million
for 2017. Adjusted EBITDA for the year was $176.7 million compared to
2017 Adjusted EBITDA of $189.5 million.
"We are pleased to deliver solid fourth quarter results driven largely
by the strong execution of our pulp and paperboard business," said Linda
K. Massman, president and chief executive officer. "Also, by executing
against our strategic priorities, in 2018 we were able to successfully
implement a regional consumer products operating model; accelerate the
start-up of converting lines in Shelby, North Carolina; and complete the
sale of a recycled tissue mill in Ladysmith, Wisconsin."
"While the performance of our consumer products business continues to be
impacted by an increasingly competitive market, we have made great
progress across this business, and are encouraged by the improvements in
our operating results. The strength of our longer-term fundamentals and
the positive consumer trends for private label brands give us confidence
that the company is well-positioned in a rapidly-evolving market."
"Throughout 2019 we will be focused on two key areas - installing and
operating the new paper machine at our Shelby plant; and optimizing our
facilities and equipment to generate greater cash flow, increase our
financial flexibility and pay down bank debt - all of which we expect
will deliver significant value for our shareholders."
FOURTH QUARTER 2018 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $212.7 million for the
fourth quarter of 2018, down 9.3% compared to fourth quarter 2017 net
sales of $234.7 million. This decrease was due to lower retail volumes
and prices and the divestiture of the Ladysmith, Wisconsin mill in
August 2018.
Operating loss for the fourth quarter of 2018 was $193.6 million,
compared to operating income and margin of $7.5 million and 3.2%,
respectively, in the fourth quarter of 2017. The operating loss included
the non-cash impairment charge described above that was recognized in
the quarter. After adjusting for certain non-core items identified in
the attached Reconciliation of Non-GAAP Financial Measures, adjusted
operating income and margin were $0.9 million and 0.4% for the fourth
quarter of 2018 compared to $11.5 million and 4.9% of adjusted operating
income and margin, respectively, for the same period in 2017. Adjusted
EBITDA for the segment was $15.7 million in the fourth quarter of 2018,
down from $25.9 million in the fourth quarter of 2017. Those decreases
were primarily due to lower average selling prices, unfavorable
absorption of fixed costs over lower volumes of retail shipments, higher
pulp costs and the divestiture of the company's Ladysmith, Wisconsin
mill.
Tissue Sales Volumes and Prices:
-
Total tissue volumes sold were 80,980 tons in the fourth quarter of
2018, a decrease of 7.3% compared to 87,313 tons in the fourth quarter
of 2017. Converted product cases shipped were 11.6 million in the
fourth quarter of 2018, 8.2% lower than the 12.7 million cases shipped
in the fourth quarter of 2017.
-
Average tissue net selling prices decreased 1.4% to $2,627 per ton in
the fourth quarter of 2018, compared to $2,663 per ton in the fourth
quarter of 2017.
Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $216.0 million for the
fourth quarter of 2018, up 6.9% compared to fourth quarter 2017 net
sales of $202.1 million. The increase was due to record shipment volumes
and higher paperboard prices.
Operating income and margin for the fourth quarter of 2018 were $31.8
million and 14.7%, compared to $34.4 million and 17.0%, respectively,
for the fourth quarter of 2017. Adjusted EBITDA for the segment was
$41.5 million in the fourth quarter of 2018, compared to $44.2 million
in the fourth quarter of 2017. The decrease was primarily due to higher
wood fiber costs due to weather conditions, boiler maintenance, higher
natural gas prices caused by a pipeline disruption which impacted the
company's Lewiston, Idaho mill and a pulp disruption at the Idaho mill
which necessitated a higher volume of purchased pulp.
Paperboard Sales Volumes and Prices:
-
Paperboard sales volumes were 218,322 tons in the fourth quarter of
2018, an increase of 3.9% compared to 210,098 tons in the fourth
quarter of 2017.
-
Paperboard net selling prices increased 2.1% to $982 per ton for the
fourth quarter of 2018, compared to $962 per ton in the fourth quarter
of 2017.
Taxes
The company's consolidated GAAP tax rate and adjusted tax rate for the
fourth quarter of 2018 were provisions of 2.4% and 37.9%, respectively,
compared to a benefit of 333.2% and a provision of 39.9%, respectively,
in the fourth quarter of 2017. On a GAAP basis, the net change to our
effective tax rate in the fourth quarter of 2018 was primarily the
result of recognizing benefits related to tax reform in 2017 and the
goodwill impairment expense which did not have a corresponding tax
impact. The company expects its GAAP and adjusted tax rate for 2019 to
be approximately 25%.
Note Regarding Use of Non-GAAP Financial Measures
In this press release, the company presents certain non-GAAP financial
information for the fourth quarters and full years of 2018 and 2017,
including adjusted net earnings, adjusted net earnings per diluted
share, EBITDA, adjusted EBITDA, adjusted operating income, adjusted
operating margin and adjusted income tax rate provision and benefit.
Because these amounts are not in accordance with GAAP, reconciliations
to net (loss) earnings, net (loss) earnings per diluted share, operating
(loss) income and income tax rate provision and benefit as determined in
accordance with GAAP are included in the tables at the end of this press
release. The company presents these non-GAAP amounts because management
believes they assist investors and analysts in comparing the company's
performance across reporting periods on a consistent basis by excluding
items that the company does not believe are indicative of its core
operating performance. In addition, the company uses EBITDA and Adjusted
EBITDA: (i) as factors in evaluating management's performance when
determining incentive compensation, (ii) to evaluate the effectiveness
of our business strategies, and (iii) because our credit agreement and
the indentures governing our outstanding notes use metrics similar to
EBITDA to measure our compliance with certain covenants.
WEBCAST INFORMATION
Clearwater Paper Corporation will discuss these results during an
earnings conference call that begins at 2:00 p.m. Pacific Time today. A
live webcast and accompanying supplemental information will be available
on the company's website at http://ir.clearwaterpaper.com.
A replay of today's conference call will be available on the website at http://ir.clearwaterpaper.com/results.cfm
beginning at 5:00 p.m. Pacific Time today.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, parent roll tissue, bleached paperboard and pulp at
manufacturing facilities across the nation. The company is a premier
supplier of private label tissue to major retailers and wholesale
distributors, including grocery, drug, mass merchants and discount
stores. In addition, the company produces bleached paperboard used by
quality-conscious printers and packaging converters, and offers services
that include custom sheeting, slitting and cutting. Clearwater Paper's
employees build shareholder value by developing strong customer
partnerships through quality and service.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including statements regarding market conditions and evolution,
operating results, business fundamentals, consumer trends, the
completion of the company's Shelby, North Carolina facility expansion,
including installation and start-up of a new paper machine, priorities
for 2019, performance of the company's Consumer Products business,
optimization of facilities and equipment, ability of assets to generate
future positive cash flows, debt reduction, shareholder value and
expected tax rate for 2019. These forward-looking statements are based
on current expectations, estimates, assumptions and projections that are
subject to change, and actual results may differ materially from the
forward-looking statements. Factors that could cause actual results to
differ materially include, but are not limited to: competitive pricing
pressures for products, including as a result of increased capacity as
additional manufacturing facilities are operated by the company's
competitors; the loss of, changes in prices in regard to, or reduction
in, orders from a significant customer; changes in customer product
preferences and competitors' product offerings; the company's ability to
complete construction of its new tissue manufacturing operations in
Shelby, North Carolina on time and within current cost expectations;
customer acceptance and timing and quantity of purchases of the
company's tissue products, including the existence of sufficient demand
for and the quality of tissue produced by its expanded Shelby, North
Carolina operations when they are completed; consolidation and vertical
integration of converting operations in the paperboard industry; the
company's ability to successfully implement its operational efficiencies
and cost savings strategies, along with related capital projects, and
achieve the expected operational or financial results of those projects,
including from the continuous digester at its Lewiston, Idaho facility;
changes in the cost and availability of wood fiber and wood pulp;
changes in transportation costs and disruptions in transportation
services; labor disruptions; changes in the U.S. and international
economies and in general economic conditions in the regions and
industries in which the company operates; manufacturing or operating
disruptions, including IT system and IT system implementation failures,
equipment malfunctions and damage to the company's manufacturing
facilities; changes in costs for and availability of packaging supplies,
chemicals, energy and maintenance and repairs; larger competitors having
operational and other advantages; cyclical industry conditions; changes
in expenses, required contributions and potential withdrawal costs
associated with the company's pension plans; environmental liabilities
or expenditures; cyber-security risks; reliance on a limited number of
third-party suppliers for raw materials; the company's ability to
attract, motivate, train and retain qualified and key personnel;
material weaknesses in the company internal controls over financial
reporting; the company's substantial indebtedness and ability to service
its debt obligations; restrictions on the company's business from debt
covenants and terms; and changes in laws, regulations or industry
standards affecting the company's business; and other risks and
uncertainties described from time to time in the company's public
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2017. The
forward-looking statements are made as of the date of this press release
and the company does not undertake to update any forward-looking
statements based on new developments or changes in the company's
expectations after the date of this press release.
|
|
|
Clearwater Paper Corporation
|
|
Consolidated Statements of Operations
|
|
Unaudited (Dollars in thousands - except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net sales
|
|
$
|
428,707
|
|
|
100
|
%
|
|
$
|
436,716
|
|
|
100
|
%
|
|
$
|
1,724,218
|
|
|
100
|
%
|
|
$
|
1,730,408
|
|
|
100
|
%
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales1
|
|
(382,204
|
)
|
|
89
|
%
|
|
(375,458
|
)
|
|
86
|
%
|
|
(1,538,012
|
)
|
|
89
|
%
|
|
(1,530,341
|
)
|
|
88
|
%
|
|
Selling, general and administrative expenses1
|
|
(27,161
|
)
|
|
6
|
%
|
|
(34,891
|
)
|
|
8
|
%
|
|
(112,988
|
)
|
|
7
|
%
|
|
(128,882
|
)
|
|
7
|
%
|
|
Goodwill impairment
|
|
(195,079
|
)
|
|
46
|
%
|
|
—
|
|
|
—
|
%
|
|
(195,079
|
)
|
|
11
|
%
|
|
—
|
|
|
—
|
%
|
|
Gain on divested assets, net
|
|
1,008
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
23,952
|
|
|
1
|
%
|
|
—
|
|
|
—
|
%
|
|
Total operating costs and expenses
|
|
(603,436
|
)
|
|
141
|
%
|
|
(410,349
|
)
|
|
94
|
%
|
|
(1,822,127
|
)
|
|
106
|
%
|
|
(1,659,223
|
)
|
|
96
|
%
|
|
(Loss) income from operations
|
|
(174,729
|
)
|
|
41
|
%
|
|
26,367
|
|
|
6
|
%
|
|
(97,909
|
)
|
|
6
|
%
|
|
71,185
|
|
|
4
|
%
|
|
Interest expense, net
|
|
(7,330
|
)
|
|
2
|
%
|
|
(7,975
|
)
|
|
2
|
%
|
|
(30,620
|
)
|
|
2
|
%
|
|
(31,374
|
)
|
|
2
|
%
|
|
Non-operating pension and other postretirement benefit (costs) income1
|
|
(1,233
|
)
|
|
—
|
%
|
|
287
|
|
|
—
|
%
|
|
(4,933
|
)
|
|
—
|
%
|
|
1,143
|
|
|
—
|
%
|
|
(Loss) earnings before income taxes
|
|
(183,292
|
)
|
|
43
|
%
|
|
18,679
|
|
|
4
|
%
|
|
(133,462
|
)
|
|
8
|
%
|
|
40,954
|
|
|
2
|
%
|
|
Income tax (provision) benefit
|
|
(4,480
|
)
|
|
1
|
%
|
|
62,245
|
|
|
14
|
%
|
|
(10,305
|
)
|
|
1
|
%
|
|
56,385
|
|
|
3
|
%
|
|
Net (loss) earnings
|
|
$
|
(187,772
|
)
|
|
44
|
%
|
|
$
|
80,924
|
|
|
19
|
%
|
|
$
|
(143,767
|
)
|
|
8
|
%
|
|
$
|
97,339
|
|
|
6
|
%
|
|
Net (loss) earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(11.39
|
)
|
|
|
|
$
|
4.92
|
|
|
|
|
$
|
(8.72
|
)
|
|
|
|
$
|
5.91
|
|
|
|
|
Diluted
|
|
(11.39
|
)
|
|
|
|
4.88
|
|
|
|
|
(8.72
|
)
|
|
|
|
5.88
|
|
|
|
|
Average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
16,491
|
|
|
|
|
16,458
|
|
|
|
|
16,487
|
|
|
|
|
16,464
|
|
|
|
|
Diluted
|
|
16,491
|
|
|
|
|
16,568
|
|
|
|
|
16,487
|
|
|
|
|
16,556
|
|
|
|
|
|
|
|
1
|
In 2018, the company adopted a new accounting standard that resulted
in a change in the presentation of pension and postretirement
benefit (costs) income other than service costs on a line outside of
"(Loss) income from operations." The corresponding prior period
amounts have been reclassified to conform with the current period
presentation.
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Condensed Consolidated Balance Sheets
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
22,484
|
|
|
$
|
15,738
|
|
Receivables, net
|
|
145,519
|
|
|
142,065
|
|
Taxes receivable
|
|
6,301
|
|
|
20,282
|
|
Inventories
|
|
266,244
|
|
|
266,043
|
|
Other current assets
|
|
3,399
|
|
|
8,661
|
|
Total current assets
|
|
443,947
|
|
|
452,789
|
|
Property, plant and equipment, net
|
|
1,269,271
|
|
|
1,050,982
|
|
Goodwill
|
|
35,074
|
|
|
244,161
|
|
Intangible assets, net
|
|
24,080
|
|
|
32,542
|
|
Other assets, net
|
|
15,746
|
|
|
21,778
|
|
TOTAL ASSETS
|
|
$
|
1,788,118
|
|
|
$
|
1,802,252
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term debt
|
|
$
|
120,833
|
|
|
$
|
155,000
|
|
Accounts payable and accrued liabilities
|
|
321,032
|
|
|
256,621
|
|
Current liability for pensions and other postretirement employee
benefits
|
|
7,430
|
|
|
7,631
|
|
Total current liabilities
|
|
449,295
|
|
|
419,252
|
|
Long-term debt
|
|
671,292
|
|
|
570,524
|
|
Liability for pensions and other postretirement employee benefits
|
|
78,191
|
|
|
72,469
|
|
Other long-term obligations
|
|
38,977
|
|
|
43,275
|
|
Accrued taxes
|
|
2,785
|
|
|
2,770
|
|
Deferred tax liabilities
|
|
121,182
|
|
|
118,528
|
|
TOTAL LIABILITIES
|
|
1,361,722
|
|
|
1,226,818
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
426,396
|
|
|
575,434
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
1,788,118
|
|
|
$
|
1,802,252
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Consolidated Statements of Cash Flows
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
Net (loss) earnings
|
|
$
|
(143,767
|
)
|
|
$
|
97,339
|
|
|
Adjustments to reconcile net (loss) earnings to net cash flows from
operating activities:
|
|
|
|
|
|
Goodwill impairment
|
|
195,079
|
|
|
—
|
|
|
Depreciation and amortization
|
|
101,953
|
|
|
104,990
|
|
|
Equity-based compensation expense
|
|
3,314
|
|
|
3,620
|
|
|
Deferred taxes
|
|
7,084
|
|
|
(40,589
|
)
|
|
Employee benefit plans
|
|
(116
|
)
|
|
(4,371
|
)
|
|
Deferred issuance costs on debt
|
|
1,356
|
|
|
1,199
|
|
|
Gain on divested assets
|
|
(25,510
|
)
|
|
—
|
|
|
Disposal of plant and equipment, net
|
|
726
|
|
|
4,053
|
|
|
Other non-cash adjustments, net
|
|
146
|
|
|
1,750
|
|
|
Changes in working capital, net of acquisition
|
|
16,200
|
|
|
21,761
|
|
|
Changes in taxes receivable, net
|
|
13,980
|
|
|
(10,573
|
)
|
|
Other, net
|
|
(1,546
|
)
|
|
(509
|
)
|
|
Net cash flows from operating activities
|
|
168,899
|
|
|
178,670
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
(295,708
|
)
|
|
(199,748
|
)
|
|
Proceeds from divested assets
|
|
70,930
|
|
|
—
|
|
|
Other, net
|
|
807
|
|
|
951
|
|
|
Net cash flows from investing activities
|
|
(223,971
|
)
|
|
(198,797
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
Purchase of treasury stock
|
|
—
|
|
|
(4,875
|
)
|
|
Borrowings on short-term debt
|
|
569,650
|
|
|
298,308
|
|
|
Repayments of borrowings on short-term debt
|
|
(503,817
|
)
|
|
(278,308
|
)
|
|
Payments for debt issuance costs
|
|
(2,139
|
)
|
|
(134
|
)
|
|
Payment of tax withholdings on equity-based payment arrangements
|
|
(413
|
)
|
|
(1,127
|
)
|
|
Net cash flows from financing activities
|
|
63,281
|
|
|
13,864
|
|
|
Increase (decrease) in cash, cash equivalents, and restricted cash
|
|
8,209
|
|
|
(6,263
|
)
|
|
Cash, cash equivalents, and restricted cash at beginning of period
|
|
16,738
|
|
|
23,001
|
|
|
Cash, cash equivalents, and restricted cash at end of period
|
|
$
|
24,947
|
|
|
$
|
16,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Segment Information
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Segment net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products
|
|
$
|
212,743
|
|
|
50
|
%
|
|
$
|
234,656
|
|
|
54
|
%
|
|
$
|
884,812
|
|
|
51
|
%
|
|
$
|
941,907
|
|
|
54
|
%
|
|
Pulp and Paperboard
|
|
215,964
|
|
|
50
|
%
|
|
202,060
|
|
|
46
|
%
|
|
839,406
|
|
|
49
|
%
|
|
788,501
|
|
|
46
|
%
|
|
Total segment net sales
|
|
$
|
428,707
|
|
|
100
|
%
|
|
$
|
436,716
|
|
|
100
|
%
|
|
$
|
1,724,218
|
|
|
100
|
%
|
|
$
|
1,730,408
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Products1
|
|
$
|
513
|
|
|
—
|
%
|
|
$
|
7,546
|
|
|
29
|
%
|
|
$
|
(2,731
|
)
|
|
3
|
%
|
|
$
|
28,973
|
|
|
41
|
%
|
|
Goodwill impairment
|
|
(195,079
|
)
|
|
112
|
%
|
|
—
|
|
|
—
|
%
|
|
(195,079
|
)
|
|
199
|
%
|
|
—
|
|
|
—
|
%
|
|
Gain on divested assets
|
|
1,008
|
|
|
1
|
%
|
|
—
|
|
|
—
|
%
|
|
23,952
|
|
|
24
|
%
|
|
—
|
|
|
—
|
%
|
|
|
|
(193,558
|
)
|
|
111
|
%
|
|
7,546
|
|
|
29
|
%
|
|
(173,858
|
)
|
|
178
|
%
|
|
28,973
|
|
|
41
|
%
|
|
Pulp and Paperboard1
|
|
31,800
|
|
|
18
|
%
|
|
34,354
|
|
|
130
|
%
|
|
130,426
|
|
|
133
|
%
|
|
97,360
|
|
|
137
|
%
|
|
|
|
(161,758
|
)
|
|
|
|
41,900
|
|
|
|
|
(43,432
|
)
|
|
|
|
126,333
|
|
|
|
|
Corporate1
|
|
(12,971
|
)
|
|
7
|
%
|
|
(15,533
|
)
|
|
59
|
%
|
|
(54,477
|
)
|
|
56
|
%
|
|
(55,148
|
)
|
|
77
|
%
|
|
(Loss) income from operations
|
|
$
|
(174,729
|
)
|
|
100
|
%
|
|
$
|
26,367
|
|
|
100
|
%
|
|
$
|
(97,909
|
)
|
|
100
|
%
|
|
$
|
71,185
|
|
|
100
|
%
|
|
|
|
|
1
|
In 2018, the company adopted a new accounting standard that resulted
in a change in the presentation of pension and postretirement
benefit (costs) income other than service costs on a line outside of
"(Loss) income from operations." The corresponding prior period
amounts have been reclassified to conform with the current period
presentation.
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
EBITDA and Adjusted EBITDA
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net (loss) earnings
|
|
$
|
(187,772
|
)
|
|
$
|
80,924
|
|
|
$
|
(143,767
|
)
|
|
$
|
97,339
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
7,330
|
|
|
7,975
|
|
|
30,620
|
|
|
31,374
|
|
|
Income tax provision (benefit)
|
|
4,480
|
|
|
(62,245
|
)
|
|
10,305
|
|
|
(56,385
|
)
|
|
Depreciation and amortization expense3
|
|
26,267
|
|
|
25,522
|
|
|
101,953
|
|
|
104,990
|
|
|
EBITDA1
|
|
(149,695
|
)
|
|
52,176
|
|
|
(889
|
)
|
|
177,318
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation benefit
|
|
(410
|
)
|
|
(363
|
)
|
|
(2,340
|
)
|
|
(2,833
|
)
|
|
Goodwill impairment
|
|
195,079
|
|
|
—
|
|
|
195,079
|
|
|
—
|
|
|
Gain on divested assets, net5
|
|
(1,008
|
)
|
|
—
|
|
|
(23,952
|
)
|
|
—
|
|
|
Reorganization related expenses associated with SG&A cost control
measures
|
|
545
|
|
|
1,783
|
|
|
6,935
|
|
|
2,263
|
|
|
Consumer products reorganization related expenses
|
|
98
|
|
|
—
|
|
|
1,048
|
|
|
—
|
|
|
Other
|
|
844
|
|
|
—
|
|
|
844
|
|
|
—
|
|
|
Costs associated with Oklahoma City facility closure4
|
|
—
|
|
|
3,649
|
|
|
—
|
|
|
11,055
|
|
|
Costs associated with Long Island facility closure
|
|
—
|
|
|
298
|
|
|
—
|
|
|
1,443
|
|
|
Manchester Industries acquisition related expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
220
|
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
Adjusted EBITDA2
|
|
$
|
45,453
|
|
|
$
|
57,543
|
|
|
$
|
176,725
|
|
|
$
|
189,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
EBITDA is a non-GAAP measure that management uses to
evaluate the cash generating capacity of the company. The most
directly comparable GAAP measure is net earnings. EBITDA 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.
|
|
2
|
Adjusted EBITDA excludes the impact of the items listed
that the company does not believe are indicative of its core
operating performance.
|
|
3
|
Depreciation and amortization expense for the twelve months ended
December 31, 2017 includes $3.7 million of accelerated depreciation
associated with the Oklahoma City facility closure, $0.6 million
associated with the closed Long Island facility and $0.4 million as
a result of the warehouse automation project.
|
|
4
|
Costs associated with the Oklahoma City facility closure for both
the three and twelve months ended December 30, 2017 include $3.2
million of expenses associated with the execution of a sublease for
the facility. Costs associated with the Oklahoma City facility
closure for the twelve months ended December 31, 2017 also include
$4.3 million of loss on the write-down of assets to their held for
sale value.
|
|
5
|
The "Gain on divested assets, net" amounts for the three and twelve
months ended December 31, 2018, are associated with the sale of the
company's Ladysmith, Wisconsin facility in the third quarter of
2018. The gain in the fourth quarter of 2018 is the result of the
settlement of a working capital contingency associated with the sale.
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
Adjusted Net Earnings and Adjusted Net Earnings Per Diluted Common
Share
|
|
Unaudited (Dollars in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
GAAP net (loss) earnings
|
|
$
|
(187,772
|
)
|
|
$
|
80,924
|
|
|
$
|
(143,767
|
)
|
|
$
|
97,339
|
|
|
Adjustments, after-tax1:
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation benefit
|
|
(337
|
)
|
|
(242
|
)
|
|
(1,817
|
)
|
|
(1,881
|
)
|
|
Goodwill impairment
|
|
195,079
|
|
|
—
|
|
|
195,079
|
|
|
—
|
|
|
Gain on divested assets, net3
|
|
(828
|
)
|
|
—
|
|
|
(13,508
|
)
|
|
—
|
|
|
Reorganization expenses associated with SG&A cost control measures
|
|
447
|
|
|
1,189
|
|
|
5,214
|
|
|
1,506
|
|
|
Consumer products reorganization related expenses
|
|
80
|
|
|
—
|
|
|
774
|
|
|
—
|
|
|
Other
|
|
693
|
|
|
—
|
|
|
693
|
|
|
—
|
|
|
Impact of state tax rate changes
|
|
—
|
|
|
—
|
|
|
(676
|
)
|
|
—
|
|
|
Federal tax rate change4
|
|
—
|
|
|
(70,055
|
)
|
|
—
|
|
|
(70,055
|
)
|
|
Costs associated with Oklahoma City facility closure
|
|
—
|
|
|
2,434
|
|
|
—
|
|
|
9,741
|
|
|
Costs associated with Long Island facility closure
|
|
—
|
|
|
199
|
|
|
—
|
|
|
1,349
|
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
Manchester Industries acquisition related expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
146
|
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
Adjusted net earnings2
|
|
$
|
7,362
|
|
|
$
|
14,449
|
|
|
$
|
41,992
|
|
|
$
|
38,412
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss) earnings per diluted share
|
|
$
|
(11.39
|
)
|
|
$
|
4.88
|
|
|
$
|
(8.72
|
)
|
|
$
|
5.88
|
|
|
Adjustments, after-tax1:
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation benefit
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.11
|
)
|
|
(0.11
|
)
|
|
Goodwill impairment
|
|
11.83
|
|
|
—
|
|
|
11.83
|
|
|
—
|
|
|
Gain on divested assets, net3
|
|
(0.05
|
)
|
|
—
|
|
|
(0.82
|
)
|
|
—
|
|
|
Reorganization expenses associated with SG&A cost control measures
|
|
0.03
|
|
|
0.07
|
|
|
0.32
|
|
|
0.09
|
|
|
Consumer products reorganization related expenses
|
|
0.01
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
|
Other
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
Impact of state tax rate changes
|
|
—
|
|
|
—
|
|
|
(0.04
|
)
|
|
—
|
|
|
Federal tax rate change4
|
|
—
|
|
|
(4.23
|
)
|
|
—
|
|
|
(4.23
|
)
|
|
Costs associated with Oklahoma City facility closure
|
|
—
|
|
|
0.15
|
|
|
—
|
|
|
0.59
|
|
|
Costs associated with Long Island facility closure
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.08
|
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
Manchester Industries acquisition related expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted net earnings per diluted share2
|
|
$
|
0.45
|
|
|
$
|
0.87
|
|
|
$
|
2.55
|
|
|
$
|
2.32
|
|
|
|
|
|
1
|
Tax effect was calculated using the estimated annual effective tax
rate for the period presented.
|
|
2
|
Adjusted net earnings and Adjusted net earnings per
diluted share exclude the impact of the items listed that the
company does not believe are indicative of its core operating
performance.
|
|
3
|
The "Gain on divested assets, net" amounts for the three and twelve
months ended December 31, 2018, are associated with the sale of the
company's Ladysmith, Wisconsin facility in the third quarter of
2018. The gain in the fourth quarter of 2018 is the result of the
settlement of a working capital contingency associated with the sale.
|
|
4
|
The federal tax rate change in 2017 is primarily due to the
remeasurement of deferred tax liabilities following passage of the
Tax Cuts and Jobs Act in December 2017.
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
Segment EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA
Margin
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Consumer Products:
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
212,743
|
|
|
$
|
234,656
|
|
|
$
|
884,812
|
|
|
$
|
941,907
|
|
|
Operating (loss) income5
|
|
(193,558
|
)
|
|
7,546
|
|
|
(173,858
|
)
|
|
28,973
|
|
|
Depreciation and amortization expense6
|
|
14,820
|
|
|
14,400
|
|
|
57,784
|
|
|
65,007
|
|
|
Consumer Products EBITDA1,5
|
|
$
|
(178,738
|
)
|
|
$
|
21,946
|
|
|
$
|
(116,074
|
)
|
|
$
|
93,980
|
|
|
Gain on divested assets, net7
|
|
(1,008
|
)
|
|
—
|
|
|
(23,952
|
)
|
|
—
|
|
|
Goodwill impairment
|
|
195,079
|
|
|
—
|
|
|
195,079
|
|
|
—
|
|
|
Reorganization related expenses associated with SG&A cost control
measures
|
|
241
|
|
|
20
|
|
|
1,987
|
|
|
20
|
|
|
Consumer products reorganization related expenses
|
|
98
|
|
|
—
|
|
|
1,048
|
|
|
—
|
|
|
Costs associated with Oklahoma City facility closure8
|
|
—
|
|
|
3,649
|
|
|
—
|
|
|
11,055
|
|
|
Costs associated with Long Island facility closure
|
|
—
|
|
|
298
|
|
|
—
|
|
|
1,443
|
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
Consumer Products Adjusted EBITDA2,5
|
|
$
|
15,672
|
|
|
$
|
25,913
|
|
|
$
|
58,088
|
|
|
$
|
106,539
|
|
|
Consumer Products EBITDA margin3
|
|
(84.0
|
)%
|
|
9.4
|
%
|
|
(13.1
|
)%
|
|
10.0
|
%
|
|
Consumer Products Adjusted EBITDA margin4
|
|
7.4
|
%
|
|
11.0
|
%
|
|
6.6
|
%
|
|
11.3
|
%
|
|
Pulp and Paperboard
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
215,964
|
|
|
$
|
202,060
|
|
|
$
|
839,406
|
|
|
$
|
788,501
|
|
|
Operating income5
|
|
31,800
|
|
|
34,354
|
|
|
130,426
|
|
|
97,360
|
|
|
Depreciation and amortization expense
|
|
9,692
|
|
|
9,685
|
|
|
37,798
|
|
|
34,474
|
|
|
Pulp and Paperboard EBITDA1,5
|
|
$
|
41,492
|
|
|
$
|
44,039
|
|
|
$
|
168,224
|
|
|
$
|
131,834
|
|
|
Reorganization related expenses associated with SG&A cost control
measures
|
|
6
|
|
|
132
|
|
|
460
|
|
|
132
|
|
|
Pulp and Paperboard Adjusted EBITDA2,5
|
|
$
|
41,498
|
|
|
$
|
44,171
|
|
|
$
|
168,684
|
|
|
$
|
131,966
|
|
|
Pulp and Paperboard EBITDA margin3
|
|
19.2
|
%
|
|
21.8
|
%
|
|
20.0
|
%
|
|
16.7
|
%
|
|
Pulp and Paperboard Adjusted EBITDA margin4
|
|
19.2
|
%
|
|
21.9
|
%
|
|
20.1
|
%
|
|
16.7
|
%
|
|
|
|
|
1
|
Segment EBITDA is segment operating income adjusted for
depreciation and amortization.
|
|
2
|
Segment Adjusted EBITDA excludes the impact of the items
listed that the company does not believe are indicative of its
core operating performance.
|
|
3
|
Segment EBITDA margin is defined as Segment EBITDA divided
by Segment Net sales.
|
|
4
|
Segment Adjusted EBITDA margin is defined as Segment
Adjusted EBITDA divided by Segment Net sales.
|
|
5
|
In 2018, the company adopted a new accounting standard that resulted
in a change in the presentation of pension and postretirement
benefit (costs) income other than service costs on a line outside of
"(Loss) income from operations." The corresponding prior period
amounts have been reclassified to conform with the current period
presentation.
|
|
6
|
Consumer Products depreciation and amortization expense for the
twelve months ended December 31, 2017 includes accelerated
depreciation of $3.7 million associated with the Oklahoma City
facility closure, $0.6 million associated with the Long Island
facility and $0.4 million as a result of the warehouse automation
project.
|
|
7
|
The "Gain on divested assets, net" amounts for the three and twelve
months ended December 31, 2018, are associated with the sale of the
company's Ladysmith, Wisconsin facility in the third quarter of
2018. The gain in the fourth quarter of 2018 is the result of the
settlement of a working capital contingency associated with the sale.
|
|
8
|
Costs associated with the Oklahoma City facility closure for both
the three and twelve months ended December 31, 2017 include $3.2
million of expenses associated with the execution of a sublease for
the facility. Costs associated with the Oklahoma City facility
closure for the twelve months ended December 31, 2017 also include
$4.3 million of loss on the write-down of assets to their held for
sale value.
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
Segment Adjusted Operating Income and Operating Margin
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Consumer Products:
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
212,743
|
|
|
$
|
234,656
|
|
|
$
|
884,812
|
|
|
$
|
941,907
|
|
|
Operating (loss) income3
|
|
(193,558
|
)
|
|
7,546
|
|
|
(173,858
|
)
|
|
28,973
|
|
|
Goodwill impairment
|
|
195,079
|
|
|
—
|
|
|
195,079
|
|
|
—
|
|
|
Gain on Divested Assets, net4
|
|
(1,008
|
)
|
|
—
|
|
|
(23,952
|
)
|
|
—
|
|
|
Reorganization related expenses associated with SG&A cost control
measures
|
|
241
|
|
|
20
|
|
|
1,987
|
|
|
20
|
|
|
Consumer products reorganization related expenses
|
|
98
|
|
|
—
|
|
|
1,048
|
|
|
—
|
|
|
Costs associated with Oklahoma City facility closure5
|
|
—
|
|
|
3,649
|
|
|
—
|
|
|
14,718
|
|
|
Costs associated with Long Island facility closure6
|
|
—
|
|
|
298
|
|
|
—
|
|
|
2,034
|
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
361
|
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
Consumer Products Adjusted operating income1,3
|
|
$
|
852
|
|
|
$
|
11,513
|
|
|
$
|
304
|
|
|
$
|
46,147
|
|
|
Consumer Products operating margin
|
|
(91.0
|
)%
|
|
3.2
|
%
|
|
(19.6
|
)%
|
|
3.1
|
%
|
|
Consumer Products Adjusted operating margin2
|
|
0.4
|
%
|
|
4.9
|
%
|
|
—
|
%
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Pulp and Paperboard:
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
215,964
|
|
|
$
|
202,060
|
|
|
$
|
839,406
|
|
|
$
|
788,501
|
|
|
Operating income3
|
|
31,800
|
|
|
34,354
|
|
|
130,426
|
|
|
97,360
|
|
|
Reorganization related expenses associated with SG&A cost control
measures
|
|
6
|
|
|
132
|
|
|
460
|
|
|
132
|
|
|
Pulp and Paperboard Adjusted operating income1,3
|
|
$
|
31,806
|
|
|
$
|
34,486
|
|
|
$
|
130,886
|
|
|
$
|
97,492
|
|
|
Pulp and Paperboard operating margin
|
|
14.7
|
%
|
|
17.0
|
%
|
|
15.5
|
%
|
|
12.3
|
%
|
|
Pulp and Paperboard Adjusted operating margin2
|
|
14.7
|
%
|
|
17.1
|
%
|
|
15.6
|
%
|
|
12.4
|
%
|
|
|
|
|
1
|
Segment Adjusted operating income excludes the impact of
the items listed that the company does not believe are indicative
of its core operating performance.
|
|
2
|
Segment Adjusted operating margin is defined as Segment
Adjusted operating income divided by Segment Net sales.
|
|
3
|
In 2018, the company adopted a new accounting standard that
resulted in a change in the presentation of pension and
postretirement benefit (costs) income other than service costs on
a line outside of "(Loss) income from operations." The
corresponding prior period amounts have been reclassified to
conform with the current period presentation.
|
|
4
|
The "Gain on divested assets, net" amounts for the three and twelve
months ended December 31, 2018, are associated with the sale of the
company's Ladysmith, Wisconsin facility in the third quarter of
2018. The gain in the fourth quarter of 2018 is the result of the
settlement of a working capital contingency associated with the sale.
|
|
5
|
Costs associated with the Oklahoma City facility closure for both
the three and twelve months ended December 31, 2017 include $3.2
million of expenses associated with the execution of a sublease for
the facility. Costs associated with the Oklahoma City facility
closure for the twelve months ended December 31, 2017 also include
$4.3 million of loss on the write-down of assets to their held for
sale value, as well as $3.7 million of accelerated depreciation.
|
|
6
|
Costs associated with the Long Island Facility closure include $0.6
million of accelerated depreciation for the twelve months ended
December 31, 2017.
|
|
|
|
|
|
|
Clearwater Paper Corporation
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
Adjusted Income Tax Provision
|
|
Unaudited (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
GAAP income tax (provision) benefit
|
|
$
|
(4,480
|
)
|
|
$
|
62,245
|
|
|
$
|
(10,305
|
)
|
|
$
|
56,385
|
|
|
Adjustments, tax impact:
|
|
|
|
|
|
|
|
|
|
Directors' equity-based compensation (expense) benefit
|
|
73
|
|
|
121
|
|
|
523
|
|
|
952
|
|
|
Gain on divested assets, net
|
|
180
|
|
|
—
|
|
|
10,444
|
|
|
—
|
|
|
Reorganization related expenses associated with SG&A cost control
measures
|
|
(98
|
)
|
|
(594
|
)
|
|
(1,721
|
)
|
|
(757
|
)
|
|
Federal tax rate change3
|
|
—
|
|
|
(70,055
|
)
|
|
—
|
|
|
(70,055
|
)
|
|
Consumer products reorganization related expenses
|
|
(18
|
)
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|
Other
|
|
(151
|
)
|
|
—
|
|
|
(151
|
)
|
|
—
|
|
|
Impact of state tax reform
|
|
—
|
|
|
—
|
|
|
(676
|
)
|
|
—
|
|
|
Costs associated with Oklahoma City facility closure
|
|
—
|
|
|
(1,215
|
)
|
|
—
|
|
|
(4,977
|
)
|
|
Manchester Industries acquisition related expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|
Costs associated with Long Island facility closure
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
(686
|
)
|
|
Write-off of assets as a result of Warehouse Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
Accelerated depreciation of assets as a result of Warehouse
Automation project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(121
|
)
|
|
Adjusted income tax benefit (provision)1
|
|
$
|
(4,494
|
)
|
|
$
|
(9,597
|
)
|
|
$
|
(2,160
|
)
|
|
$
|
(19,347
|
)
|
|
Adjusted income tax rate1,2
|
|
37.9
|
%
|
|
39.9
|
%
|
|
4.9
|
%
|
|
33.5
|
%
|
|
|
|
|
1
|
Adjusted income tax benefit (provision) and Adjusted
income tax rate exclude the impact of the items listed that
the company does not believe are indicative of its core operating
performance.
|
|
2
|
The Adjusted income tax rate is defined as [Adjusted income
tax benefit (provision)/(Adjusted income tax benefit (provision) +
Adjusted net earnings)].
|
|
3
|
The federal tax rate change in 2017 is primarily due to the
remeasurement of deferred tax liabilities following passage of the
Tax Cuts and Jobs Act in December 2017.
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190312005812/en/
