Clearwater Paper Announces $100M Stock Repurchase
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. This authorization follows the successful completion of the company's previous $100 million stock repurchase authorization last year, which was implemented by the board in January 2013. Clearwater Paper expects to fund the repurchases through available cash resources.
“Today's announcement of a new stock repurchase program reflects our positive outlook on our business, continued confidence in our future cash generation capabilities, and commitment to return capital to shareholders," said Linda K. Massman, president and chief executive officer. “At the same time, we remain committed to maintaining a strong balance sheet and financial position. Since beginning our stock repurchase programs in 2011, we have returned $130 million to our shareholders.”
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 14 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 outlook and long-term prospects for the company, the condition of the company's balance sheet and financial condition, uses and sufficiency of the company's cash, the company's future generation of cash flow, and the expected amount 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, limitations on stock repurchases pursuant to Rule 10b-18 under the Securities Exchange Act of 1934; customer acceptance and timing of purchases of the company's new TAD products and quantity; competitive pricing pressures for the company's products, including as a result of increased capacity as additional manufacturing facilities are operated by the company's competitors; difficulties with the optimization and realization of the benefits expected from the company's new TAD paper machine and converting lines at North Carolina; the loss of business from a significant customer; manufacturing or operating disruptions, including IT system failures, equipment malfunction and damage to the company's manufacturing facilities; 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 costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs; changes in customer product preferences and competitors' product offerings; changes in expenses and required contributions associated with the company's pension plans; environmental liabilities or expenditures; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which the company operates; increased supply and pricing pressures resulting from increasing Asian paper production capabilities; cyclical industry conditions; reliance on a limited number of third-party suppliers for raw materials; inability to successfully implement the company's expansion strategies; the company's qualification to retain, or ability to utilize, tax credits associated with alternative fuels or cellulosic biofuels and the tax treatment associated with receipt of such credits; 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.
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