Clearwater Paper Corporation (NYSE:CLW) today announced that its board of directors has authorized the repurchase of up to $100 million of the company’s common stock, reflecting the company’s strong balance sheet and positive outlook on its business. This authorization follows the completion of the company’s previous $30 million stock repurchase authorization implemented by the board in July 2011. Clearwater Paper expects to fund the repurchases through available cash resources, including a portion of the proceeds of a proposed senior notes offering announced separately today.
“This stock repurchase program, which we intend to fully execute in 2013, emphasizes the board’s ongoing commitment to enhancing shareholder value,” said Linda K. Massman, president and chief executive officer. “With the successful start-up of our Shelby TAD paper machine, Clearwater Paper is poised to generate significant discretionary free cash flow. We are now focused on operational execution in the near term and upon completion of the stock repurchase program, we plan to return approximately 50% of discretionary free cash flow to our shareholders over the 2014 and 2015 timeframe.”
The repurchase program authorizes the company to purchase its common stock from time to time through open market purchases, negotiated transactions or other means, including accelerated stock repurchases and 10b5-1 trading plans in accordance with applicable securities laws and other restrictions. The company has no obligation to repurchase stock under this program and may suspend or terminate the program at any time.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, machine glazed tissue, bleached paperboard and pulp at 15 manufacturing locations in the U.S. and Canada. The company is a premier supplier of private label tissue to major retailers and wholesale distributors. This includes grocery, drug, mass merchants and discount stores. The company also produces bleached paperboard used by quality-conscious printers and packaging converters. Clearwater Paper’s employees build shareholder value by developing strong customer relationships through quality and service.
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 the aggregate dollar value of shares authorized to be repurchased pursuant to the stock repurchase program, the condition of the company’s balance sheet, the long-term prospects for the company, uses and sufficiency of the company’s cash, the company’s future generation of discretionary free cash flow, the execution period for the stock repurchase program, shareholder returns, and the expected amount and timing of the additional return of capital to shareholders. 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, the company’s ability to generate cash; fluctuations and volatility in the company’s stock price; the company’s execution of, and realization of the benefits from, its TAD tissue expansion strategy; market acceptance of and competitive pricing pressure for the company’s products; increased market supply of TAD tissue products; changes in transportation costs and disruptions in transportation services; changes in raw material, maintenance and energy costs; changes in the cost and availability of wood fiber and wood pulp; loss of a large customer; customers’ product preferences; changes in the United States and international economies; changes in expenses and required contributions associated with the company’s pension plans; cyclical industry conditions; changes in the Alternative Fuel Mixture Tax Credit or Cellulosic Biofuel Producer Credit regulations and the company’s eligibility for such tax credits; environmental liabilities or expenditures; unanticipated manufacturing disruptions; changes in general and industry-specific laws and regulations; labor disruptions; and other risks and uncertainties described from time to time in the company’s public filings with the Securities and Exchange Commission. 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.
Matt Van Vleet, 509-344-5912
John Hertz, CFO, 509-344-5905
Sean Butson, 509-344-5906
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