Clearwater Paper Corporation announced unaudited consolidated financial results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net sales of $426,504,000 against $435,320,000 a year ago. Income from operations was $5,451,000 against $9,280,000 a year ago. Loss before income taxes was $2,232,000 against earnings before income taxes of $1,760,000 a year ago. Net earnings were $863,000 or $0.05 per diluted share against $901,000 or $0.05 per diluted share a year ago. EBITDA was $31,307,000 against $32,027,000 a year ago. Adjusted EBITDA was $37,621,000 against $34,309,000 a year ago. Adjusted net earnings were $5,305,000 or $0.32 per diluted share against $2,369,000 or $0.14 per diluted share a year ago. The $3.3 million increase in Adjusted EBITDA in the third quarter of 2017 was primarily a result of lower general maintenance costs as well as lower wage and benefits expense resulting from warehouse automation projects at several of the company's facilities, the shutdown of two higher cost tissue machines at the company's Neenah, Wisconsin mill and the closure of the company's Oklahoma City facility. These were partially offset by higher input costs for pulp and transportation. Capital expenditures were $47 million in the third quarter, of which $35 million were spent on strategic and other ROI-positive projects. During the third quarter, the company generated $49 million of cash from operating activities or 11.4% of net sales, down from 13.5% in the second quarter. Cash flow from operations benefited from active working capital management.

For the nine months, the company reported net sales of $1,293,692,000 against $1,309,195,000 a year ago. Income from operations was $45,674,000 against $87,207,000 a year ago. Earnings before income taxes were $22,275,000 against $64,648,000 a year ago. Net earnings were $16,415,000 or $0.99 per diluted share against $40,211,000 or $2.33 per diluted share a year ago. Net cash flows from operating activities were $152,176,000 against $138,883,000 a year ago. Additions to plant and equipment were $136,650,000 against $136,650,000 a year ago. EBITDA was $125,142,000 against $153,128,000 a year ago. Adjusted EBITDA was $131,964,000 against $160,711,000 a year ago. Adjusted net earnings were $23,963,000 or $1.45 per diluted share against $45,101,000 or $2.61 per diluted share a year ago. Year-to-date, in 2017, the company have spent a total of $136 million.

The company expects its GAAP and adjusted tax rate for 2017 to be approximately 30%, down from the mid-point of the company's outlook of 34% at the end of the second quarter, primarily due to additional Federal tax credits. CapEx for the year is now expected to be $210 million, which is approximately $40 million lower than the $250 million outlook the company communicated at the beginning of the year.