CLU Maintains 2011 Earnings Guidance

Analysts at William Blair & Co reiterate their "outperform" rating on Cellu Tissue Holdings Inc

. According to William Blair & Co, “Cellu Tissue reported fiscal first-quarter (May) adjusted EBITDA of $12.9 million, in line with our estimate of $12.7 million but below consensus of $14.7 million.” “Looking forward, the company maintained its earnings guidance for fiscal 2011, calling for adjusted EBITDA to be in the range of $77 million to $85 million, which compares to our current estimate of $79 million and consensus of $80 million,” the analysts mention. William Blair adds, “This outlook assumes the company continues to successfully execute its strategy of increasing converted tissue sales and that pulp prices begin to moderate (from recent historical highs) during the second half of the fiscal year. We believe Cellu’s plans to add new converting capacity this year and the prospect for a more-balanced supply-demand picture in the pulp market supports this outlook.”