Clearwater Paper Corporation (NYSE:CLW) Q4 2015 Earnings Conference Call - Final Transcript

Feb 10, 2016 • 05:00 pm ET

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Clearwater Paper Corporation (NYSE:CLW) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Clearwater Paper Corporation Fourth Quarter 2015 Earnings Conference Call. As a reminder, this call is being recorded today, February 10, 2016.

I would now like to turn the conference over to Ms. Robin Yim, Vice President, Investor Relations of Clearwater Paper. Please go ahead.

Executive
Robin Yim

Thank you, Cindy. Good afternoon and thank you for joining Clearwater Paper's Fourth Quarter and Fiscal Year 2015 Earnings Conference Call. Joining me on the call today in Spokane is John Hertz, Chief Financial Officer. Linda Massman, President and Chief Executive Officer, is traveling this week and she is joining us remotely.

Financial results for the fourth quarter were released shortly after today's market close. Posted on the Investor Relations page of our website at clearwaterpaper.com, you will find both the earnings press release and the presentation of supplemental information, including outlook slides providing the Company's current expectations and estimates as to net sales, operating margins, and adjusted EBITDA range for the first quarter of 2016 and certain costs, pricing, shipment, production, maintenance and repair, and other factors for the first quarter and full year of 2016.

Additionally, we will be providing certain non-GAAP information in this afternoon's discussion. A reconciliation of the non-GAAP information to comparable GAAP information is included in the press release or in the supplemental materials provided on our website.

I would like to remind you that this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. 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 those risks and uncertainties described from time-to-time in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2014, and our quarterly filings on Form 10-Q. Any forward-looking statements are made only as of this date, and the Company assumes no obligation to update any forward-looking statements.

John Hertz will begin today's call with a review of the financial results for the fourth quarter and fiscal year 2015, and Linda Massman will provide an overview of the business environment and our outlook for the year and the first quarter of 2016. And then we'll open up the call for the question-and-answer session.

Now. I'll turn the call over to John.

Executive
John Hertz

Thank you, Robin. Here at Clearwater Paper, our 2015 focus was on our cost structure and realizing operating efficiencies, particularly in the Consumer Products division as well as the company overall. We started with the sale of our specialty mills at the end of 2014 with a plan to reinvest the proceeds of that sale into strategic capital investments that we believe will generate a 400 basis point to 600 basis point improvement in CPD's adjusted EBITDA margins as we leave 2017.

We also addressed complexity in our operation through better logistics planning and we're able to reduce miles