8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 24, 2019

 CLEARWATER PAPER CORPORATION
(Exact name of registrant as specified in its charter)

Delaware	001-34146	20-3594554
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

601 West Riverside Ave., Suite 1100 Spokane, W	99201
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (509) 344-5900

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchanged on which registered
Common Stock, par value $0.0001 per share	CLW	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1

Item 2.02.         Results of Operations and Financial Condition.

On October 24, 2019, Clearwater Paper Corporation announced its results of operations and financial condition for the third quarter ending September 30, 2019.  A copy of the press release containing this announcement is furnished as Exhibit 99.1 hereto.  In addition, a copy of the Company’s Third Quarter 2019 Supplemental Information is furnished as Exhibit 99.2 hereto.

The information in this Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.  

Item 9.01.         Financial Statements and Exhibits.

(d) Exhibit Index

Exhibit	Description
99.1	Press release issued by Clearwater Paper Corporation, dated October 24, 2019: CLEARWATER PAPER REPORTS THIRD QUARTER 2019 RESULTS
99.2	Clearwater Paper Corporation Third Quarter 2019 Supplemental Information

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 24, 2019

CLEARWATER PAPER CORPORATION
	By:	/s/ Michael S. Gadd
		Michael S. Gadd, Corporate Secretary

3

EX-99.1

Exhibit 99.1

Clearwater Paper Reports Third Quarter 2019 Results

SPOKANE, Wash.--(BUSINESS WIRE)--October 24, 2019--Clearwater Paper Corporation (NYSE:CLW) today reported financial results for the third quarter of 2019.

The company reported net sales of $445.2 million for the third quarter of 2019, which were $18.7 million or 4.4% higher than net sales of $426.5 million for the third quarter of 2018. The increase was due to higher net paperboard and tissue pricing from previously announced price changes and higher retail tissue shipments. These items were partially offset by lower non-retail tissue shipments primarily resulting from the sale of the company's mill in Ladysmith, Wisconsin in August 2018.

Net loss determined in accordance with generally accepted accounting principles, or GAAP, for the third quarter of 2019 was $11.0 million, or $0.66 per diluted share, compared to net earnings for the third quarter of 2018 of $34.4 million, or $2.08 per diluted share. The decrease in net earnings was due to planned major maintenance at the company's Lewiston, Idaho mill, higher input costs for pulp and wood fiber and increased depreciation and interest expense. Excluding certain non-core items identified in the attached Reconciliation of Non-GAAP Financial Measures, third quarter 2019 adjusted net loss was $8.3 million, or $0.50 per diluted share, compared to third quarter 2018 adjusted net earnings of $22.3 million, or $1.35 per diluted share.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, were $28.1 million for the third quarter of 2019, compared to $71.0 million for the third quarter of 2018. Adjusted EBITDA for the quarter was $30.9 million, compared to third quarter 2018 Adjusted EBITDA of $50.1 million. The decrease was due to the planned major maintenance at the Idaho mill in the third quarter of 2019.

“Compared to our outlook, we performed well during the third quarter, with continued strong pulp and paperboard production and higher retail tissue shipments, which enabled us to achieve solid results,” said Linda Massman, president and chief executive officer. “We successfully completed the major maintenance outage at our Lewiston, Idaho mill and determined we will move into 2020 with no planned major maintenance outages. Our new Shelby, North Carolina facility is meeting all customer quality expectations on ultra and premium grades and we are currently meeting our targeted production volume. We are also happy to report that tissue sales have increased 8% year over year. Our long-term focus remains on improving our operational capabilities to ensure we are well-positioned to generate cash flow to de-lever our balance sheet.”

THIRD QUARTER 2019 SEGMENT PERFORMANCE

Consumer Products

Net sales in the Consumer Products segment were $228.5 million for the third quarter of 2019, up 8.0% compared to third quarter 2018 net sales of $211.6 million. This increase was due to higher retail tissue volumes sold, higher average prices for both retail and non-retail tissue products and a favorable mix shift to a higher percentage of retail shipments, partially offset by the impact from the divestiture of the Ladysmith, Wisconsin mill in August 2018. In the third quarter of 2019, converted case shipments reached 13.2 million cases, an increase of 11.6% compared to 11.8 million cases shipped in the third quarter of 2018, due to growth in business with both new and existing customers.

Segment operating loss for the third quarter of 2019 was $4.4 million, compared to operating income of $21.7 million in the third quarter of 2018. After adjusting for certain non-core items identified in the attached Reconciliation of Non-GAAP Financial Measures, adjusted operating loss was $4.4 million for the third quarter of 2019, compared to an adjusted operating loss of $1.0 million for the same period in 2018. The increased operating loss was primarily due to higher internal pulp costs due to planned major maintenance at the Idaho mill and higher depreciation expense resulting from the completion of the Shelby mill expansion. Adjusted EBITDA for the segment was $14.6 million in the third quarter of 2019, up from $13.4 million in the third quarter of 2018. The increase was primarily due to improved retail shipment volumes, pricing and mix, partially offset by higher maintenance costs and lower non-retail tissue shipments resulting from the divestiture of the Ladysmith mill.

Tissue Sales Volumes and Prices:

• Total tissue volumes sold were 86,408 tons in the third quarter of 2019, a decrease of 2,452 tons or 2.8% compared to 88,860 tons in the third quarter of 2018. Retail volumes represented 92% of total volumes sold in the third quarter of 2019, up from 79% in the third quarter of 2018. Converted product cases shipped increased 11.6% to 13.2 million in the third quarter of 2019, compared to the 11.8 million cases shipped in the third quarter of 2018.
• Average tissue net selling prices increased 10.7% to $2,635 per ton in the third quarter of 2019, compared to $2,381 per ton in the third quarter of 2018. The increase was due to a significant reduction in parent roll sales resulting from the divestiture of the Ladysmith mill, previously announced price increases and a higher mix of ultra-quality tissue products.

Pulp and Paperboard

Net sales in the Pulp and Paperboard segment were $216.6 million for the third quarter of 2019, up 0.9% compared to third quarter 2018 net sales of $214.8 million. The increase was due to higher paperboard prices from previously announced increases, partially offset by lower sales volume.

Segment operating income and margin for the third quarter of 2019 were $17.1 million and 7.9%, compared to $38.3 million and 17.8%, respectively, for the third quarter of 2018. Adjusted EBITDA for the segment was $28.3 million in the third quarter of 2019, compared to $47.7 million in the third quarter of 2018. The decrease in operating income and adjusted EBITDA was primarily due to planned major maintenance at the company's Idaho mill, partially offset by higher paperboard prices.

Paperboard Sales Volumes and Prices:

• Paperboard sales volumes were 214,537 tons in the third quarter of 2019, a decrease of 1.6% compared to 218,135 tons in the third quarter of 2018.
• Paperboard average net selling price increased 1.9% to $1,004 per ton for the third quarter of 2019, compared to $985 per ton in the third quarter of 2018.

Taxes

The company's consolidated GAAP tax rate for the third quarter of 2019 was a benefit of 44.3%, compared to a provision of 9.6% in the third quarter of 2018. The tax benefit in the current quarter resulted from the pre-tax loss for the quarter.

Note Regarding Use of Non-GAAP Financial Measures

In this press release, the company presents certain non-GAAP financial information for the third quarters of 2019 and 2018, including adjusted net earnings (loss), adjusted net earnings (loss) per diluted share, EBITDA, adjusted EBITDA, adjusted operating income (loss) and adjusted operating margin. Because these amounts are not in accordance with GAAP, reconciliations to net earnings (loss), net earnings (loss) per diluted share and operating income (loss) as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP amounts because management believes they assist investors and analysts in comparing the company's performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses EBITDA and Adjusted EBITDA: (i) as factors in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company's business strategies, and (iii) because the company's credit agreement and the indentures governing the company's outstanding notes use metrics similar to EBITDA to measure the company's compliance with certain covenants.

WEBCAST INFORMATION

Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Time today. A live webcast and accompanying supplemental information will be available on the company's website at http://ir.clearwaterpaper.com. A replay of today's conference call will be available on the website at http://ir.clearwaterpaper.com/results.cfm beginning at 5:00 p.m. Pacific Time today.

ABOUT CLEARWATER PAPER

Clearwater Paper manufactures quality consumer tissue, away-from-home tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The company is a premier supplier of private label tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. Clearwater Paper's employees build shareholder value by developing strong customer relationships through quality and service.

FORWARD-LOOKING STATEMENTS

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 managing and completing the company's Shelby, North Carolina facility expansion, planned major maintenance outages, customer quality expectations, production volume, operational and financial execution, cash flow and debt reduction. 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: competitive pricing pressures for products, including as a result of increased capacity as additional manufacturing facilities are operated by the company’s competitors; the loss of, changes in prices in regard to, or reduction in, orders from a significant customer; changes in customer product preferences and competitors' product offerings; the company’s ability to achieve full production at its new tissue manufacturing operations in Shelby, North Carolina on time and within current cost expectations; customer acceptance and timing and quantity of purchases of the company’s tissue products, including the existence of sufficient demand for and the quality of tissue manufactured at its expanded Shelby, North Carolina operations upon full production; consolidation and vertical integration of converting operations in the paperboard industry; the company’s ability to successfully implement its operational efficiencies and cost savings strategies, along with related capital projects, and achieve the expected operational or financial results of those projects, including from the continuous pulp digester at its Lewiston, Idaho facility; 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 the U.S. and international economies and in general economic conditions in the regions and industries in which the company operates; manufacturing or operating disruptions, including IT system and IT system implementation failures, equipment malfunctions and damage to the company’s manufacturing facilities; changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs; larger competitors having operational and other advantages; cyclical industry conditions; changes in expenses, required contributions and potential withdrawal costs associated with the company’s pension plans; environmental liabilities or expenditures; cyber-security risks; reliance on a limited number of third-party suppliers for raw materials; the company’s ability to attract, motivate, train and retain qualified and key personnel; material weaknesses in the company's internal controls over financial reporting; the company’s substantial indebtedness and ability to service its debt obligations; restrictions on the company’s business from debt covenants and terms; and changes in laws, regulations or industry standards affecting the company’s business; and other risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2018. 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 based on new developments or changes in the company's expectations after the date of this press release.

Clearwater Paper Corporation
Consolidated Statements of Operations
Unaudited (Dollars in thousands - except per-share amounts)
	Three Months Ended										Nine Months Ended
	September 30,										September 30,
	2019					2018					2019					2018
Net sales	$	445,188		100	%	$	426,460		100	%	$	1,325,960		100	%	$	1,295,511		100	%
Costs and expenses:
Cost of sales		(418,704	)	94	%		(376,221	)	88	%		(1,212,775	)	91	%		(1,155,808	)	89	%
Selling, general and administrative expenses		(28,944	)	7	%		(26,283	)	6	%		(85,942	)	6	%		(85,827	)	7	%
Gain on divested assets, net	—			—	%		22,944		5	%	—			—	%		22,944		2	%
Total operating costs and expenses		(447,648	)	101	%		(379,560	)	89	%		(1,298,717	)	98	%		(1,218,691	)	94	%
(Loss) income from operations		(2,460	)	1	%		46,900		11	%		27,243		2	%		76,820		6	%
Interest expense, net		(13,077	)	3	%		(7,547	)	2	%		(32,477	)	2	%		(23,290	)	2	%
Debt retirement costs		(2,725	)	1	%	—			—	%		(2,725	)	—	%	—			—	%
Non-operating pension and other postretirement benefit costs		(1,421	)	—	%		(1,234	)	—	%		(4,266	)	—	%		(3,700	)	—	%
(Loss) earnings before income taxes		(19,683	)	4	%		38,119		9	%		(12,225	)	1	%		49,830		4	%
Income tax benefit (provision)		8,710		2	%		(3,675	)	1	%		4,665		—	%		(5,825	)	—	%
Net (loss) earnings	$	(10,973	)	2	%	$	34,444		8	%	$	(7,560	)	1	%	$	44,005		3	%
Net (loss) earnings per common share:
Basic	$	(0.66	)			$	2.09				$	(0.46	)			$	2.67
Diluted		(0.66	)				2.08					(0.46	)				2.66
Average shares outstanding (in thousands):
Basic		16,539					16,487					16,531					16,493
Diluted		16,539					16,564					16,531					16,573

Clearwater Paper Corporation
Condensed Consolidated Balance Sheets
Unaudited (Dollars in thousands)
	September 30,		December 31,
	2019		2018
ASSETS
Current assets:
Cash and cash equivalents	$	7,815	$	22,484
Restricted cash		1,440	—
Receivables, net		157,929		145,519
Taxes receivable		6,721		6,301
Inventories		282,395		266,244
Other current assets		7,960		3,399
Total current assets		464,260		443,947
Property, plant and equipment, net		1,273,474		1,269,271
Operating lease right-of-use assets		74,503	—
Goodwill		35,074		35,074
Intangible assets, net		18,725		24,080
Other assets, net		15,041		15,746
TOTAL ASSETS	$	1,881,077	$	1,788,118
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	58,000	$	120,833
Accounts payable and accrued liabilities		229,563		321,032
Current liability for pension and other postretirement employee benefits		7,430		7,430
Total current liabilities		294,993		449,295
Long-term debt		866,702		671,292
Operating lease liabilities		66,571	—
Liability for pension and other postretirement employee benefits		73,738		78,191
Other long-term obligations		33,990		38,977
Accrued taxes		3,070		2,785
Deferred tax liabilities		116,868		121,182
TOTAL LIABILITIES		1,455,932		1,361,722
Stockholders' equity		425,145		426,396
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,881,077	$	1,788,118

Clearwater Paper Corporation
Consolidated Statements of Cash Flows
Unaudited (Dollars in thousands)
	Nine Months Ended
	September 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) earnings	$	(7,560	)	$	44,005
Adjustments to reconcile net (loss) earnings to net cash flows from operating activities:
Depreciation and amortization		86,343			75,686
Equity-based compensation expense		2,959			2,845
Deferred taxes		(6,023	)		3,930
Employee benefit plans		1,006			102
Amortization of deferred issuance costs on debt		1,452			943
Loss on retirement of debt		2,725		—
Gain on divested assets	—				(25,510	)
Other non-cash activity, net		724			84
Changes in working capital, net		(98,266	)		7,402
Changes in taxes receivable		(420	)		13,534
Other, net		825			(1,922	)
Net cash flows from operating activities		(16,235	)		121,099
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment		(125,794	)		(174,034	)
Net proceeds from divested assets	—				70,930
Other, net		14			807
Net cash flows from investing activities		(125,780	)		(102,297	)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from long-term debt		296,146		—
Repayment of borrowings on long-term debt		(101,671	)	—
Borrowings on short-term debt		534,877			322,454
Repayments of borrowings on short-term debt		(598,715	)		(277,454	)
Payments for debt issuance costs		(1,844	)	—
Other, net		(1,430	)		(853	)
Net cash flows from financing activities		127,363			44,147
(Decrease) increase in cash, cash equivalents and restricted cash		(14,652	)		62,949
Cash, cash equivalents and restricted cash at beginning of period		24,947			16,738
Cash, cash equivalents and restricted cash at end of period	$	10,295		$	79,687

Clearwater Paper Corporation
Segment Information
Unaudited (Dollars in thousands)
	Three Months Ended										Nine Months Ended
	September 30,										September 30,
	2019					2018					2019					2018
Segment net sales:
Consumer Products	$	228,544		51	%	$	211,642		50	%	$	676,220		51	%	$	672,069		52	%
Pulp and Paperboard		216,644		49	%		214,818		50	%		649,740		49	%		623,442		48	%
Total segment net sales	$	445,188		100	%	$	426,460		100	%	$	1,325,960		100	%	$	1,295,511		100	%
Operating (loss) income:
Consumer Products	$	(4,438	)	180	%	$	(1,269	)	3	%	$	(8,300	)	30	%	$	(3,244	)	4	%
Gain on divested assets	—			—	%		22,944		49	%	—			—	%		22,944		30	%
Pulp and Paperboard		17,098		695	%		38,280		82	%		80,073		294	%		98,626		128	%
		12,660					59,955					71,773					118,326
Corporate		(15,120	)	615	%		(13,055	)	28	%		(44,530	)	163	%		(41,506	)	54	%
(Loss) income from operations	$	(2,460	)	100	%	$	46,900		100	%	$	27,243		100	%	$	76,820		100	%

Clearwater Paper Corporation
Reconciliation of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
Unaudited (Dollars in thousands)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Net (loss) earnings	$	(10,973	)	$	34,444		$	(7,560	)	$	44,005
Add back:
Interest expense, net3		15,802			7,547			35,202			23,290
Income tax (benefit) provision		(8,710	)		3,675			(4,665	)		5,825
Depreciation and amortization expense		31,990			25,342			86,343			75,686
EBITDA1		28,109			71,008			109,320			148,806
Directors' equity-based compensation expense (benefit)		420			769			101			(1,930	)
Non-operating pension and other postretirement benefit costs4		1,421			1,234			4,266			3,700
Reorganization related expenses		934			158			986			950
Gain on divested assets, net	—				(22,944	)	—				(22,944	)
Reorganization related expenses associated with SG&A cost control measures	—				210		—				6,390
Other	—				(338	)	—			—
Adjusted EBITDA2	$	30,884		$	50,097		$	114,673		$	134,972

1	EBITDA is a non-GAAP measure that management uses to evaluate the cash generating capacity of the company. The most directly comparable GAAP measure is net earnings. EBITDA is net (loss) earnings adjusted for net interest expense (including debt retirement costs), income taxes and depreciation and amortization. It should not be considered as an alternative to net earnings computed under GAAP.
2	Adjusted EBITDA excludes the impact of the items listed that the company does not believe are indicative of its core operating performance.
3	Interest expense, net for the three and nine months ended September 30, 2019 includes debt retirement costs of $2.7 million.
4	In 2018, the Company adopted Accounting Standards Update 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires all net periodic pension and postretirement costs other than service cost to be presented on a line outside of operating income. Beginning in the first quarter of 2019, the Company is excluding these non-operating costs from the calculation of Adjusted EBITDA. The corresponding prior period amounts have been reclassified to conform with the current period presentation.

Clearwater Paper Corporation
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Earnings and Adjusted Net Earnings Per Diluted Common Share
Unaudited (Dollars in thousands, except per-share amounts)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
GAAP net (loss) earnings	$	(10,973	)	$	34,444		$	(7,560	)	$	44,005
Adjustments, after-tax1:
Debt retirement costs		1,791		—				1,791		—
Directors' equity-based compensation expense (benefit)		276			524			(40	)		(1,480	)
Reorganization related expenses		614			108			635			694
Gain on divested assets, net	—				(12,680	)	—				(12,680	)
Reorganization related expenses associated with SG&A cost control measures	—				143		—				4,767
Other	—				(250	)	—			—
Impact of state tax rate changes	—			—			—				(676	)
Adjusted net (loss) earnings2	$	(8,292	)	$	22,289		$	(5,174	)	$	34,630
GAAP net (loss) earnings per diluted share	$	(0.66	)	$	2.08		$	(0.46	)	$	2.66
Adjustments, after-tax1:
Debt retirement costs		0.11		—				0.11		—
Directors' equity-based compensation expense (benefit)		0.01			0.03		—				(0.09	)
Reorganization related expenses		0.04			0.01			0.04			0.04
Gain on divested assets, net	—				(0.76	)	—				(0.78	)
Reorganization related expenses associated with SG&A cost control measures	—				0.01		—				0.29
Other	—				(0.02	)	—			—
Impact of state tax rate changes	—			—			—				(0.04	)
Adjusted net (loss) earnings per diluted share2	$	(0.50	)	$	1.35		$	(0.31	)	$	2.09

1	Tax effect was calculated using the estimated annual effective tax rate for the period presented.
2	Adjusted net (loss) earnings and Adjusted net (loss) earnings per diluted share exclude the impact of the items listed that the company does not believe are indicative of its core operating performance.

Clearwater Paper Corporation
Reconciliation of Non-GAAP Financial Measures
Segment EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin
Unaudited (Dollars in thousands)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Consumer Products:
Net sales	$	228,544		$	211,642		$	676,220		$	672,069
Operating (loss) income		(4,438	)		21,675			(8,300	)		19,700
Depreciation and amortization expense		19,025			14,447			51,227			42,964
Consumer Products EBITDA1	$	14,587		$	36,122		$	42,927		$	62,664
Gain on divested assets, net	—				(22,944	)	—				(22,944	)
Reorganization related expenses associated with SG&A cost control measures	—				87		—				1,746
Reorganization related expenses	—				158		—				950
Consumer Products Adjusted EBITDA2	$	14,587		$	13,423		$	42,927		$	42,416
Consumer Products EBITDA margin3		6.4	%		17.1	%		6.3	%		9.3	%
Consumer Products Adjusted EBITDA margin4		6.4	%		6.3	%		6.3	%		6.3	%
Pulp and Paperboard
Net sales	$	216,644		$	214,818		$	649,740		$	623,442
Operating income		17,098			38,280			80,073			98,626
Depreciation and amortization expense		11,168			9,316			30,144			28,106
Pulp and Paperboard EBITDA1	$	28,266		$	47,596		$	110,217		$	126,732
Reorganization related expenses associated with SG&A cost control measures	—				71		—				454
Pulp and Paperboard Adjusted EBITDA2	$	28,266		$	47,667		$	110,217		$	127,186
Pulp and Paperboard EBITDA margin3		13.0	%		22.2	%		17.0	%		20.3	%
Pulp and Paperboard Adjusted EBITDA margin4		13.0	%		22.2	%		17.0	%		20.4	%

1	Segment EBITDA is segment operating (loss) income adjusted for depreciation and amortization.
2	Segment Adjusted EBITDA excludes the impact of the items listed that the company does not believe are indicative of its core operating performance.
3	Segment EBITDA margin is defined as Segment EBITDA divided by Segment Net sales.
4	Segment Adjusted EBITDA margin is defined as Segment Adjusted EBITDA divided by Segment Net sales.

Clearwater Paper Corporation
Reconciliation of Non-GAAP Financial Measures
Segment Adjusted Operating Income and Operating Margin
Unaudited (Dollars in thousands)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Consumer Products:
Net sales	$	228,544		$	211,642		$	676,220		$	672,069
Operating (loss) income	$	(4,438	)	$	21,675		$	(8,300	)	$	19,700
Gain on divested assets, net	—				(22,944	)	—				(22,944	)
Reorganization related expenses associated with SG&A cost control measures	—				87		—				1,746
Reorganization related expenses	—				158		—				950
Consumer Products Adjusted operating loss1	$	(4,438	)	$	(1,024	)	$	(8,300	)	$	(548	)
Consumer Products operating margin		(1.9	)%		10.2	%		(1.2	)%		2.9	%
Consumer Products Adjusted operating margin2		(1.9	)%		(0.5	)%		(1.2	)%		(0.1	)%
Pulp and Paperboard:
Net sales	$	216,644		$	214,818		$	649,740		$	623,442
Operating income	$	17,098		$	38,280		$	80,073		$	98,626
Reorganization related expenses associated with SG&A cost control measures	—				71		—				454
Pulp and Paperboard Adjusted operating income1	$	17,098		$	38,351		$	80,073		$	99,080
Pulp and Paperboard operating margin		7.9	%		17.8	%		12.3	%		15.8	%
Pulp and Paperboard Adjusted operating margin2		7.9	%		17.9	%		12.3	%		15.9	%

1	Segment Adjusted operating (loss) income excludes the impact of the items listed that the company does not believe are indicative of its core operating performance.
2	Segment Adjusted operating margin is defined as Segment Adjusted operating (loss) income divided by Segment Net sales.

Contacts

Clearwater Paper Corporation
(News media)
Shannon Myers
509.344.5967
or
(Investors)
Robin S. Yim
Vice President, Investor Relations
509.344.5906

EX-99.2

Exhibit 99.2

 CLEARWATER PAPER CORPORATIONTHIRD QUARTER 2019SUPPLEMENTAL INFORMATION  10/24/19 LINDA MASSMANPRESIDENT, CHIEF EXECUTIVE OFFICER AND DIRECTORROBERT HRIVNAKSENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER 

   FORWARD-LOOKING STATEMENTS  This presentation of supplemental information contains, in addition to historical information, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding major maintenance; debt leverage; liquidity; cash flows; balance sheet; scope, cost, production capacity, shipment volume and expected adjusted EBITDA impact of the Shelby, NC expansion and Lewiston, ID continuous digester; estimated Q4 2019 net earnings (loss), EBITDA, adjusted EBITDA, operating income (loss), adjusted operating income (loss), adjusted net earnings (loss), net earnings (loss) per diluted common share, adjusted net earnings (loss) per diluted common share, net sales and adjusted operating margin; Q4 2019 product pricing and sales mix, product volumes shipped, maintenance and repairs, costs and SG&A; and input costs and annual expected EBITDA impact. These forward-looking statements are based on management’s current expectations, estimates, assumptions and projections that are subject to change. Our actual results of operations may differ materially from those expressed or implied by the forward-looking statements contained in this presentation. Important factors that could cause or contribute to such differences include the risks and uncertainties described from time to time in the company's public filings with the Securities and Exchange Commission, as well as the following: competitive pricing pressures for our products, including as a result of increased capacity as additional manufacturing facilities are operated by our competitors;the loss of, changes in prices in regard to, or reduction in, orders from a significant customer;changes in customer product preferences and competitors' product offerings;our ability to achieve full production at our new tissue manufacturing operations in Shelby, North Carolina on time and within current cost expectations;customer acceptance and timing and quantity of purchases of our tissue products, including the existence of sufficient demand for and the quality of tissue manufactured at our expanded Shelby, North Carolina operations upon full production;consolidation and vertical integration of converting operations in the paperboard industry;our ability to successfully implement our operational efficiencies and cost savings strategies, along with related capital projects, and achieve the expected operational or financial results of those projects, including from the continuous pulp digester at our Lewiston, Idaho facility;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 the U.S. and international economies and in general economic conditions in the regions and industries in which we operate;manufacturing or operating disruptions, including IT system and IT system implementation failures, equipment malfunctions and damage to our manufacturing facilities;changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs;larger competitors having operational and other advantages;cyclical industry conditions;changes in expenses, required contributions and potential withdrawal costs associated with our pension plans;environmental liabilities or expenditures;cyber-security risks;reliance on a limited number of third-party suppliers for raw materials;our ability to attract, motivate, train and retain qualified and key personnel;material weaknesses in our internal control over financial reporting;our substantial indebtedness and ability to service our debt obligations;restrictions on our business from debt covenants and terms; andchanges in laws, regulations or industry standards affecting our business.Forward-looking statements contained in this presentation present management’s views only as of the date of this presentation. We undertake no obligation to publicly update forward-looking statements, to retract future revisions of management's views based on events or circumstances occurring after the date of this presentation.   2 

   THIRD QUARTER 2019BUSINESS HIGHLIGHTS  1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.2 Total leverage ratio is calculated as the total net debt to rolling four quarter total adjusted EBITDA plus franchise taxes and other reoccurring non-cash items.  3  FINANCIAL PERFORMANCE    $429 Million net sales, flat vs. Q4'18 $14 Million GAAP operating income and 3.3% marginDiluted GAAP EPS of $0.23Solid operating results; $40 Million adjusted EBITDA,1,2 within our outlook range of $37 to $43 Million    MARKETS & OPERATIONS        CAPITAL ALLOCATION        $445 million net sales, down (2%) vs. Q2'19 and up 4% from Q3'18($2) million GAAP operating loss and (0.6%) marginDiluted GAAP Loss Per Share of ($0.66) $30.9 million adjusted EBITDA,1 at high end of our outlook range of $24 to $32 million  Completed major maintenance at our Idaho mill and no major maintenance is expected in 2020CPD net sales increased 8% from Q3'18, due to commercial wins at existing and new accountsNew paper machine in North Carolina producing to customer quality specifications for both ultra and premium tissue segments   $17 million of capital invested in Q3'19 and $126 million total through Q3'19Total net leverage ratio2 peaked in Q3'19; liquidity continues to be strong; our ongoing focus is to generate free cash flow to de-lever our balance sheet 

 CLEARWATER PAPER SEQUENTIAL QUARTER RESULTS  1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.  PRICE/MIX    Slightly lower paperboard pricing related to impact of Pricewatch's reported index price reduction in February 2019 on existing contracts  VOLUME    Growth of existing and new tissue customers, partially offset by paperboard shipments returning to more normal run rates from second quarter record shipments  PULP    Lower external pulp prices  ENERGY    Lower natural gas prices and electricity costs at our Idaho mill, partially offset by higher summer electrical rates in Nevada  MAINTENANCE    Major maintenance at Idaho mill, partially offset by the absence of maintenance at our Arkansas mill in the second quarter  1  1  4  GAAP Measures (dollars in millions)              Q3'19  Net Sales  $445.2  Operating (Loss) Income  $(2.5)  Net Loss  $(11.0)  Q2'19    $452.0    $15.3    ($0.4)  Q3'19 vs. Q2'19 Adjusted EBITDA1 Bridge  ADJ. EBITDA1 (MILLIONS) 

 CLEARWATER PAPER YEAR OVER YEAR SAME QUARTER RESULTS  1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.   PRICE/MIX    Higher net paperboard and tissue pricing from previously announced price increases  VOLUME /DIVESTITURE    Higher retail tissue shipments partially offset by lower parent roll shipments due to divestiture of Ladysmith, Wisconsin mill in August 2018  PULP/WOOD FIBER    Higher internal pulp costs due to major maintenance and higher wood fiber pricing at Arkansas due to wet weather  MAINTENANCE    Major maintenance at Idaho mill  1  1,  5  Q3'19 vs. Q3’18 Adjusted EBITDA1 Bridge  ADJ. EBITDA1 (MILLIONS)  GAAP Measures (dollars in millions)              Q3'19  Net Sales  $445.2  Operating (Loss) Income  $(2.5)  Net (Loss) Earnings  $(11.0)  Q3'18    $426.5    $46.9    $34.4  2 In the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. Beginning in the first quarter of 2019, the Company is excluding these non-operating costs from the calculation of Adjusted EBITDA. The corresponding prior period amounts have been reclassified to conform with the current period presentation.  

 CONSUMER PRODUCTS SEQUENTIAL QUARTER RESULTS   1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.  PRICE/MIX    Stable price mix  VOLUME    Growth at existing and new customer accounts  PULP    Favorable external pulp pricing  MAINTENANCE    Maintenance at our Idaho mill  ENERGY    Higher summer electric rates for Nevada mill  SEGMENT ADJ. EBITDA1 (MILLIONS)  1  1  6  Q3'19 vs. Q2'19 Segment Adjusted EBITDA1 Bridge  GAAP Measures (dollars in millions)              Q3'19  Segment Net Sales  $228.5  Segment Operating Loss  $(4.4)  Segment Operating Loss Percentage  (1.9)%  Q2'19    $224.3    ($5.1)    (2.3%)  3  3 

 PRICE/MIX    Lower paperboard pricing related to impact of Pricewatch's reported index price reduction in February 2019 on existing contracts  VOLUME    Shipments returning to more normal run rates from second quarter record shipments  PULP    Lower external pulp prices at our Idaho mill  ENERGY    Lower natural gas prices and electricity costs at our Idaho mill  MAINTENANCE    Major maintenance at our Idaho mill, partially offset by the absence of maintenance at our Arkansas mill in the second quarter  PULP AND PAPERBOARD SEQUENTIAL QUARTER RESULTS  1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.  SEGMENT ADJ. EBITDA1 (MILLIONS)  1  1  7  Q3'19 vs. Q2'19 Segment Adjusted EBITDA1 Bridge  GAAP Measures (dollars in millions)              Q3'19  Segment Net Sales  $216.6  Segment Operating Income  $17.1  Segment Operating Income Percentage  7.9%  Q2'19    $227.7    $33.6    14.8% 

 STRATEGIC CAPITAL INVESTMENTS    SCOPE    Installed NTT tissue machine, converting equipment and warehousing  LOCATION    Shelby, NC  CAPACITY    70,000 - 75,000 tons per year  COST    $420 million  PRODUCTION    Start-up: April 2019 Full run-rate: 2020  FULL SHIPMENT RUN-RATE    Expected 2021  EXPECTED BENEFIT    $55 - $65 million EBITDA1 by end of 2021  8  SCOPE    Replaced a batch digester system with a continuous digester  LOCATION    Lewiston, ID  CAPACITY    Increase pulp productivity by 45,000 - 55,000 tons/year and improve yields  COST    $155 million  PRODUCTION    Digester: October 2017 Polysulfide: Expected January 2020  EXPECTED BENEFIT    $25 - $35 million EBITDA1 per year in 2020  Shelby Expansion  Lewiston Pulp Optimization  1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.  

 9  BALANCED CAPITAL ALLOCATION   Expected Future Capital Allocation Capex approximately $60 million per yearPay down debt with cash flow from operations  (Dollars in millions and shares in thousands)  1 As of year-end.  1  1 

 DEBT, INTEREST AND CASH FLOW  Long term debt includes: $300 million 2025 Senior Bond Note, $275 million 2023 Senior Bond Note, long term portion of line of credit and long term leases. Short term debt includes: short term portion of line of credit less cash1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.   2  10  (Dollars in millions)  ($14.2)  1 Long-term debt includes: long-term Senior Bond Notes, long-term portion of line-of-credit, term loan B, and long-term financing leases. Short-term debt includes: short-term portion of line of credit less cash and cash equivalents. 2 This is not a covenant. Total leverage ratio is calculated as the total net debt to rolling four quarter total adjusted EBITDA plus franchise taxes and other reoccurring non-cash items.  $24  $78  Lower due to Shelby, NC expansion and working capital needs  1    ($16.2)  $50 

 Q4’19 ADJUSTED EBITDA OUTLOOK1 , ADJUSTED EARNINGS OUTLOOK1 AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)  1 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 2.2 EBITDA is a non-GAAP measure that management uses as a supplemental performance measure. The most directly comparable GAAP measure is net earnings (loss). EBITDA is net earnings (loss) adjusted for net interest expense, income taxes, and depreciation and amortization. It should not be considered as an alternative to net earnings (loss) computed under GAAP.3 Adjusted EBITDA excludes the impact of the items listed that we do not believe are indicative of our core operating performance. 4 Adjusted operating income, Adjusted net earnings (loss) and Adjusted net earnings (loss) per diluted common share exclude the impact of the items listed that we do not believe are indicative of our core operating performance. 5 Tax effect was calculated using a quarterly tax rate ranging from 3% to 30%.6 GAAP net earnings (loss) per diluted common share and Adjusted net earnings (loss) per diluted common share are calculated utilizing third quarter 2019 diluted average common shares outstanding of 16,539 (in thousands).     OUTLOOK          THREE MONTHS ENDINGDECEMBER 31, 2019          RANGE OF ESTIMATE        (Dollars in thousands)  FROM    TO              Earnings before interest, income taxes, and depreciation & amortization (EBITDA)2:          GAAP net (loss) earnings  ($4,900  )  $1,050    Interest expense, net  12,600    12,700    Income tax (benefit) provision  (2,000  )  (50  )  Depreciation and amortization expense  28,800    28,800    EBITDA2  $34,500    $42,500    Directors' equity-based compensation expense  350    350    Non-operating pension and OPEB costs  1,400    1,400    Reorganization related expenses  1,750    1,750    Adjusted EBITDA3  $38,000    $46,000    11  (Dollars in thousands)  FROM    TO              GAAP net loss  ($4,900  )  $1,050    Adjustments, after tax5:          Directors' equity-based compensation expense  250    300    Non-operating pension and OPEB costs  950    1,350    Reorganization related expenses  1,200    1,700    Adjusted net (loss) earnings4  ($2,500  )  $4,400                FROM    TO              GAAP net loss per diluted common share6  ($0.30  )  $0.06    Adjusted net (loss) earnings per diluted common share4,6  ($0.15  )  $0.27      OUTLOOK          THREE MONTHS ENDINGDECEMBER 31, 2019          RANGE OF ESTIMATE        (Dollars in thousands)  FROM    TO              GAAP Operating Income  $7,500    $15,500    Directors' equity-based compensation expense  350    350    Non-operating pension and OPEB costs  1,400    1,400    Reorganization related expenses  1,750    1,750    Adjusted operating income4  $11,000    $19,000    Adjusted EBITDA Outlook  Adjusted Net Earnings (Loss) Outlook 

   Q4'19 OUTLOOK1    1% - 2% Lower    2.5% - 4.5%    $38M - $46M    ($0.15) - $0.27  NET SALES  ADJUSTED OPERATING MARGIN2,3  ADJUSTED EBITDA2  ADJUSTED NET (LOSS) EARNINGS PER DILUTED COMMON SHARE2,4    1 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 2.2 Non-GAAP measure – See prior slides for the reconciliation to the most comparable GAAP measure.3 Adjusted operating margin is defined as net sales divided by adjusted operating income.4 Adjusted net earnings (loss) per diluted common share is calculated utilizing third quarter 2019 diluted average common shares outstanding of 16,539 (in thousands).  12 

 FIVE QUARTER TRENDS  1 Non-GAAP measure – See Appendix for the definition and reconciliation to the most comparable GAAP measure.2 Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net sales.3 Adjusted operating margin is defined as Adjusted operating income (loss) divided by Net sales. 4 Includes $12.7 million for the gain on divested asset from the sale of the Ladysmith Mill which had a total pre-tax gain of $22.9 million.  (Dollars in millions)  1  1,2  1  1,3  13  4  $452.0    ($0.4)  $445.2    ($1.1)  ($8.3) 

 FIVE QUARTER SEGMENT TRENDS  1 Non-GAAP measure - See Appendix for the definition and reconciliation to the most comparable GAAP measure.2 Non-GAAP measure - Segment Adjusted EBITDA margin is defined as Segment Adjusted EBITDA divided by Segment net sales.   Consumer Products  Pulp & Paperboard  Total Net Sales  Adj. EBITDA & Margin  14  (Dollars in millions)  1,2 

 Major Maintenance Schedule  15  None  Arkansas  $25 - $26  $22  $18  $30  (Dollars in millions)  1 This information is based upon management’s current expectations and estimates, as well as historical averages. Many factors are outside the control of management, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 2.  2019: Idaho mill in Q3 and Arkansas mill in Q4  Idaho  Idaho  $19  1  1  1  1  $6 - $7  $23 - $27  $15 - $20  None 

             COGS Input  Unit of Measure  Approximated Annual Volume1 (in Millions)  $ Change Per Unit1 +/-  Approximated Annual expected EBITDA2 Impact +/- (in Millions)                Purchased Pulp  Ton  0.27  $20.00  $5.4    Fiber  Bone Dry Ton  1.5  $4.00  $6.0    Diesel  Gallon  10.0  $0.50  $5.0    Electric  MWh  1.0  $5.00  $5.0    Natural Gas  MMBTU  10.25  $0.50  $5.1    Polyethylene  Pound  30.0  $0.20  $6.0    Caustic  Pound  90.0  $0.06  $5.4    Chlorate  Pound  30.0  $0.20  $6.0    KEY COMMODITY CONSUMPTION VOLUMES  16  1 Approximated annual volume and expense amounts are based on historical average consumption and management's current expectations and estimates with respect to future volumes and expense, and these amounts may be significantly influenced by general market conditions and other factors outside of our control. Actual results may differ materially from the information set forth above. See "Forward-Looking Statements" on page 2. 2 Non-GAAP measure. 

 APPENDIX &RECONCILIATIONS    17 

 FINANCIAL SUMMARY (GAAP BASIS)(UNAUDITED)                        (Dollars in thousands - except per-share amounts)  Q3'18    Q4'18    Q1'19    Q2'19    Q3'19                          Net sales  $426,460    $428,707    $428,779    $451,993    $445,188    Gross Profit  $50,239    $46,503    $44,533    $42,168    $26,484    Selling, general and administrative expenses  ($26,283  )  ($27,161  )  ($30,171  )  ($26,827  )  ($28,944  )  Operating income (loss)  $46,900    ($174,729  )  $14,362    $15,341    ($2,460  )  Consumer Products  ($1,269  )  $513    $1,271    ($5,133  )  ($4,438  )  Gain on divested assets  $22,944    $1,008    $—    $—    $—    Goodwill impairment  $—    ($195,079  )  $—    $—    $—    Pulp and Paperboard  $38,280    $31,800    $29,388    $33,587    $17,098    Corporate  ($13,055  )  ($12,971  )  ($16,297  )  ($13,113  )  ($15,120  )  Operating margin  11.0  %  (40.8  )%  3.3  %  3.4  %  (0.6  )%  Interest expense, net  ($7,547  )  ($7,330  )  ($8,486  )  ($10,914  )  ($13,077  )  Debt retirement costs  $—    $—    $—    $—    ($2,725  )  Non-operating pension and other postretirement benefit costs  ($1,234  )  ($1,233  )  ($1,314  )  ($1,531  )  ($1,421  )  Income tax (provision) benefit  ($3,675  )  ($4,480  )  ($725  )  ($3,320  )  $8,710    Net earnings (loss)  $34,444    ($187,772  )  $3,837    ($424  )  ($10,973  )  Net earnings (loss) per diluted common share  $2.08    ($11.39  )  $0.23    ($0.03  )  ($0.66  )  Cash flow from operations  $10,211    $47,800    ($29,399  )  $44,121    ($30,957  )  Cash capital expenditures  $95,434    $121,674    $71,588    $36,831    $17,375    18  1 In the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. Beginning in the first quarter of 2019, the Company is excluding these non-operating costs from the calculation of Adjusted EBITDA. The corresponding prior period amounts have been reclassified to conform with the current period presentation.  

 FINANCIAL SUMMARY (ADJUSTED BASIS)(UNAUDITED)  1 Non-GAAP measure - See Appendix for the definition and reconciliation to the most comparable GAAP measure. 2 Adjusted gross profit margin is defined as Adjusted gross profit divided by Net sales. 3 Adjusted operating margin is defined as Adjusted operating income divided by Net sales.4 In the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. Beginning in the first quarter of 2019, the Company is excluding these non-operating costs from the calculation of Adjusted EBITDA. The corresponding prior period amounts have been reclassified to conform with the current period presentation. 5 Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net sales.6 Total leverage ratio is calculated as the total net debt to rolling four quarter total adjusted EBITDA plus franchise taxes and other reoccurring non-cash items.7 Net Debt includes long-term Senior Bond Notes, term loan B, long-term financing leases, line of credit, less cash and cash equivalents.8 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including particularly input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 2.   (Dollars in thousands - except per-share amounts)  Q3'18    Q4'18    Q1'19    Q2'19    Q3'19    Q4'19 Outlook8                          Net sales  $426,460    $428,707    $428,779    $451,993    $445,188    1% - 2% Lower  Adjusted gross profit1  $50,399    $46,601    $44,533    $42,168    $26,484      Adjusted gross profit margin1,2  11.8  %  10.9  %  10.4  %  9.3  %  5.9  %    Adjusted selling, general and administrative expenses1  ($25,644  )  ($26,182  )  ($30,521  )  ($26,744  )  ($27,590  )    Adjusted operating income (loss)1  $24,755    $20,419    $14,012    $15,424    ($1,106  )    Consumer Products  ($1,024  )  $852    $1,271    ($5,133  )  ($4,438  )    Pulp and Paperboard  $38,351    $31,806    $29,388    $33,587    $17,098      Corporate  ($12,572  )  ($12,239  )  ($16,647  )  ($13,030  )  ($13,766  )    Adjusted operating margin1,3  5.8  %  4.8  %  3.3  %  3.4  %  (0.2  )%  2.5% - 4.5%  Interest expense, net  ($7,547  )  ($7,330  )  ($8,486  )  ($10,914  )  ($13,077  )    Non-operating pension and other postretirement benefit costs4  ($1,234  )  ($1,233  )  ($1,314  )  ($1,531  )  ($1,421  )    Debt retirement costs  $—    $—    $—    $—    ($2,725  )    Adjusted net earnings (loss)1  $22,289    $7,362    $3,508    ($390  )  ($8,292  )    Depreciation and amortization expense  $25,342    $26,267    $25,836    $28,517    $31,990      Adjusted EBITDA1,4  $50,097    $46,686    $39,848    $43,941    $30,884    $38,000 - $46,000  Consumer Products  $13,423    $15,672    $16,042    $12,298    $14,587      Pulp and Paperboard  $47,667    $41,498    $38,873    $43,078    $28,266      Corporate4  ($10,993  )  ($10,484  )  ($15,067  )  ($11,435  )  ($11,969  )    Adjusted EBITDA margin1,4,5  11.7  %  10.9  %  9.3  %  9.7  %  6.9  %    Adjusted net earnings (loss) per diluted common share1  $1.35    $0.45    $0.21    ($0.02  )  ($0.50  )    Total Leverage Ratio6  3.75    4.29    4.97    4.99    5.70      Net Debt7  $719,364    $772,818    $886,532    $889,576    $946,114      19 

 1 Includes away-from-home (AFH), contract and parent roll tissue products. 2 Includes retail, AFH, and contract tissue case products.3 Shipments and Sales Price exclude Scrap Sales beginning in the fourth quarter of 2018.  KEY SEGMENT RESULTS(UNAUDITED)    Q3'18    Q4'18    Q1'19    Q2'19    Q3'19                          Consumer Products                      Shipments                      Retail (short tons)  70,335    69,480    73,356    76,175    79,526    Non-Retail (short tons)1  18,525    11,500    10,266    6,623    6,882    Total Tissue Tons  88,860    80,980    83,622    82,798    86,408    Converted Products (cases in thousands)2  11,789    11,621    12,320    12,488    13,162    Sales Price                      Retail ($/short ton)1  $2,615    $2,776    $2,789    $2,764    $2,707    Non-Retail ($/short ton)1  $1,491    $1,727    $1,799    $1,851    $1,805    Total Tissue ($/short ton)  $2,381    $2,627    $2,667    $2,691    $2,635    Segment net sales ($ in thousands)  $211,642    $212,743    $223,336    $224,340    $228,544    20                        Pulp and Paperboard                      Shipments                      Paperboard (short tons)3  218,135    218,322    202,834    225,188    214,537    Sales Price                      Paperboard ($/short ton)3  $985    $982    $1,001    $1,004    $1,004    Segment net sales ($ in thousands)  $214,818    $215,964    $205,443    $227,653    $216,644   

 CLEARWATER PAPER SEGMENT SHIPMENTS AND U.S. MARKET  U.S. Retail Tissue Market Q3'19 ($)                   (Total U.S, - All Outlets)1                  CATEGORY  PRIVATELABEL      BRANDS      TOTAL                      Total Retail Tissue Share ($)  31  %    69  %    100  %  % Change Q3'19 vs. Q3’18  1.7  %    (1.7  )%    —  %   1 Data Source: IRI Worldwide Consumer Panel data through September 8, 2019.  CLW Q3'19 by Retail Tissue Market Segment (% of Tons)  21  Other  1%   Folding  Liquid Pkg  Food Service  CLW Q3'19 by U.S. Paperboard Market Segment (% of Tons)  U.S. Paperboard Production Q3'193                             CATEGORY  CLEARWATER PAPER      OTHER                    Total Domestic SBS1 Market Share  14  %    86  %    Folding  19  %    81  %    Food Service2  14  %    86  %    Liquid Packaging  4  %    96  %    1 Solid Bleached Sulfate.2 Food Service includes cup, plate, dish and tray products.3 Data Source: American Forest and Paper Association Solid Bleached Domestic Production – September 30, 2019.  Retail  AFH  Parent Rolls   

 ADJUSTED GROSS PROFIT& ADJUSTED SG&ARECONCILIATION OF NON-GAAPFINANCIAL MEASURES (UNAUDITED)  1 Gross profit is defined as net sales minus cost of sales.2 Adjusted gross profit and Adjusted selling, general and administrative expenses exclude the impact of the items listed that we do not believe are indicative of our core operating performance.                        (Dollars in thousands)  Q3'18    Q4'18    Q1'19    Q2'19    Q3'19                          Gross profit1  $50,239    $46,503    $44,533    $42,168    $26,484    Reorganization expenses associated with SG&A cost control measures  2    —    —    —    —    Reorganization related expenses  158    98    —    —    —    Adjusted gross profit2  $50,399    $46,601    $44,533    $42,168    $26,484    Selling, general and administrative expenses (SG&A)  ($26,283  )  ($27,161  )  ($30,171  )  ($26,827  )  ($28,944  )  Directors' equity-based compensation expense (benefit)  769    (410  )  (350  )  31    420    Reorganization expenses associated with SG&A cost control measures  208    545    —    —    —    Other   (338  )  844    —    —    —    Reorganization related expenses  —    —    —    52    934    Adjusted selling, general and administrative expenses2  ($25,644  )  ($26,182  )  ($30,521  )  ($26,744  )  ($27,590  )  22 

 SEGMENT ADJUSTED OPERATING INCOME (LOSS)RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)  1 Operating income (loss) for Q3'18 and Q4'18 includes $22.9 million and $1.0 million, respectively, for the gain on divested assets, net.2 Adjusted operating income (loss) excludes the impact of the items listed that we do not believe are indicative of our core operating performance.                         (Dollars in thousands)  Q3'18    Q4'18    Q1'19    Q2'19    Q3'19                          Consumer Products                      Operating income (loss)1  $21,675    ($193,558  )  $1,271    ($5,133  )  ($4,438  )  Reorganization expenses associated with SG&A cost control measures  87    241    —    —    —    Reorganization related expenses  158    98    —    —    —    Gain on divested assets, net  (22,944  )  (1,008  )  —        —    Goodwill impairment  —    195,079    —    —    —    Adjusted Consumer Products operating (loss) income2  ($1,024  )  $852    $1,271    ($5,133  )  ($4,438  )  Pulp and Paperboard                      Operating income  $38,280    $31,800    $29,388    $33,587    $17,098    Reorganization expenses associated with SG&A cost control measures  71    6    —    —    —    Adjusted Pulp and Paperboard operating income2  $38,351    $31,806    $29,388    $33,587    $17,098    Corporate                      Operating loss  ($13,055  )  ($12,971  )  ($16,297  )  ($13,113  )  ($15,120  )  Directors' equity-based compensation expense (benefit)  769    (410  )  (350  )  31    420    Reorganization expenses associated with SG&A cost control measures  52    298    —    —    —    Other   (338  )  844    —    —    —    Reorganization related expenses  —    —    —    52    934    Adjusted Corporate operating loss2  ($12,572  )  ($12,239  )  ($16,647  )  ($13,030  )  ($13,766  )  23 

 ADJUSTED NET EARNINGS & ADJUSTED NET EARNINGS PER DILUTED COMMON SHARE RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)    1 Tax effect was calculated using the estimated annual effective tax rate for the period presented.2 Adjusted net earnings (loss) and Adjusted net earnings (loss) per diluted common share exclude the impact of the items listed that we do not believe are indicative of our core operating performance.                         (Dollars in thousands - except per-share amounts)  Q3'18    Q4'18    Q1'19    Q2'19    Q3'19                          GAAP net earnings (loss)  $34,444    ($187,772  )  $3,837    ($424  )  ($10,973  )  Adjustments, after tax1:                      Directors' equity-based compensation expense (benefit)  524    (337  )  (329  )  13    276    Reorganization expenses associated with SG&A cost control measures  143    447    —    —    —    Reorganization related expenses  108    80    —    21    614    Other   (250  )  693    —    —    —    Gain on divested assets, net  (12,680  )  (828  )  —    —    —    Goodwill impairment  —    195,079    —    —    —    Debt retirement costs  —    —    —    —    1,791    Adjusted net earnings (loss)2  $22,289    $7,362    $3,508    ($390)    ($8,292)    Net earnings (loss) per diluted common share  $2.08    ($11.39  )  $0.23    ($0.03  )  ($0.66  )  Adjustments, after tax1:                      Directors' equity-based compensation expense (benefit)  0.03    (0.02  )  (0.02  )  —    0.01    Reorganization expenses associated with SG&A cost control measures  0.01    0.03    —    —    —    Reorganization related expenses  0.01    0.01    —    —    0.04    Other   (0.02  )  0.04    —    —    —    Gain on divested assets, net  (0.76  )  (0.05  )  —    —    —    Goodwill impairment  —    11.83    —    —    —    Debt retirement costs  —    —    —    —    0.11    Adjusted net earnings (loss) per diluted common share2  $1.35    $0.45    $0.21    ($0.02)    ($0.50)    24 

 EBITDA & ADJUSTED EBITDA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)  1 EBITDA is a non-GAAP measure that management uses as a supplemental performance measure. The most directly comparable GAAP measure is net earnings (loss). EBITDA is net earnings (loss) adjusted for net interest expense (including debt retirement costs), income taxes, and depreciation and amortization. It should not be considered as an alternative to net earnings (loss) computed under GAAP.2 Interest expense, net for the third quarter 2019 includes debt retirement costs of $2.7 million.3 Adjusted EBITDA excludes the impact of the items listed that we do not believe are indicative of our core operating performance. 4 In the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. Beginning in the first quarter of 2019, the Company is excluding these non-operating costs from the calculation of Adjusted EBITDA. The corresponding prior period amounts have been reclassified to conform with the current period presentation.                         (Dollars in thousands)  Q3'18    Q4'18    Q1'19    Q2'19    Q3'19                          Earnings before interest, income taxes, depreciation & amortization (EBITDA)1                      GAAP net earnings (loss)  $34,444    ($187,772  )  $3,837    ($424  )  ($10,973  )  Interest expense, net2  7,547    7,330    8,486    10,914    15,802    Income tax provision (benefit)  3,675    4,480    725    3,320    (8,710  )  Depreciation and amortization expense  25,342    26,267    25,836    28,517    31,990    EBITDA1  $71,008    ($149,695  )  $38,884    $42,327    $28,109    Directors' equity-based compensation expense (benefit)  769    (410  )  (350  )  31    420    Reorganization expenses associated with SG&A cost control measures  210    545    —    —    —    Reorganization related expenses  158    98    —    52    934    Other   (338  )  844    —    —    —    Gain on divested assets, net  (22,944  )  (1,008  )  —    —    —    Goodwill impairment  —    195,079    —    —    —    Non-operating pension and other postretirement benefit costs4  1,234    1,233    1,314    1,531    1,421     Adjusted EBITDA3,4  $50,097    $46,686    $39,848    $43,941    $30,884    25 

 SEGMENT EBITDA & ADJUSTED EBITDA RECONCILIATION OF NON-GAAPFINANCIAL MEASURES (UNAUDITED)  1 Segment EBITDA is a non-GAAP measure that management uses as a supplemental performance measure. The most directly comparable GAAP measure is segment operating income (loss). Segment EBITDA is segment operating income (loss) adjusted for depreciation and amortization and non-operating pension and other postretirement benefit costs. It should not be considered as an alternative to segment operating income (loss) computed under GAAP. 2 Segment Adjusted EBITDA excludes the impact of the items listed that we do not believe are indicative of our core operating performance. 3Operating income for Q3'18 and Q4'18 includes $22.9 million and $1.0 million, respectively, for the gain on divested assets, net.4 In the first quarter of 2018, we adopted a new accounting standard that resulted in a change in the presentation of pension and postretirement benefit costs other than service costs on a line outside of operating income. Beginning in the first quarter of 2019, the Company is excluding these non-operating costs from the calculation of Adjusted EBITDA. The corresponding prior period amounts have been reclassified to conform with the current period presentation. 5 Segment Adjusted EBITDA Margin is defined as Segment EBITDA divided by Segment net sales.                        (Dollars in thousands)  Q3'18    Q4'18    Q1'19    Q2'19    Q3'19                          Consumer Products                      Consumer Products segment net sales  $211,642    $212,743    $223,336    $224,340    $228,544    Operating income (loss)3  $21,675    ($193,558  )  $1,271    ($5,133  )  ($4,438  )  Depreciation and amortization expense  14,447    14,820    14,771    17,431    19,025    Segment EBITDA1  $36,122    ($178,738  )  $16,042    $12,298    $14,587    Reorganization expenses associated with SG&A cost control measures  87    241    —    —    —    Reorganization related expenses  158    98    —    —    —    Gain on divested assets, net  (22,944  )  (1,008  )  —    —    —    Goodwill impairment  —    195,079    —    —    —    Consumer Products Segment Adjusted EBITDA2,4  $13,423    $15,672    $16,042    $12,298    $14,587    Consumer Products Segment Adjusted EBITDA Margin5  6.3  %  7.4  %  7.2  %  5.5  %  6.4  %  Pulp and Paperboard                      Pulp and Paperboard segment net sales  $214,818    $215,964    $205,443    $227,653    $216,644    Operating income  $38,280    $31,800    $29,388    $33,587    $17,098    Depreciation and amortization expense  9,316    9,692    9,485    9,491    11,168    Segment EBITDA1  $47,596    $41,492    $38,873    $43,078    $28,266    Reorganization expenses associated with SG&A cost control measures  71    6    —    —    —    Pulp and Paperboard Segment Adjusted EBITDA2,4  $47,667    $41,498    $38,873    $43,078    $28,266    Pulp and Paperboard Segment Adjusted EBITDA Margin5  22.2  %  19.2  %  18.9  %  18.9  %  13.0  %  Corporate                      Operating loss  ($13,055  )  ($12,971  )  ($16,297  )  ($13,113  )  ($15,120  )  Depreciation and amortization expense  1,579    1,755    1,580    1,595    1,797    Non-operating pension and other postretirement benefit costs4  (1,234  )  (1,233  )  (1,314  )  (1,531  )  (1,421  )  Corporate EBITDA1  ($12,710  )  ($12,449  )  ($16,031  )  ($13,049  )  ($14,744  )  Directors' equity-based compensation expense (benefit)  769    (410  )  (350  )  31    420    Reorganization expenses associated with SG&A cost control measures  52    298    —    —    —    Other   (338  )  844    —    —    —    Non-operating pension and other postretirement benefit costs4  1,234    1,233    1,314    1,531    1,421    Reorganization related expenses  —    —    —    52    934    Corporate Adjusted EBITDA2,4  ($10,993  )  ($10,484  )  ($15,067  )  ($11,435  )  ($11,969  )  26 

 RECONCILIATION OF GAAP TO NON-GAAP: STRATEGIC CAPITAL INVESTMENTS (UNAUDITED)  1 This information is based upon management’s current expectations and estimates, which are in part based on market and industry data. Many factors are outside the control of management, including input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 2.2Non-GAAP measure – See Appendix for the definition.   FULL RUN-RATE EXPECTED ADJUSTED EBITDA2 IMPACT          (Dollars in millions)    Shelby Expansion1    Lewiston Pulp Optimization 1            Expected operating income    $38.0 - $48.0    $17.5 - $27.5  Expected depreciation    $17.0    $7.5  Expected EBITDA2    $55 - $65    $25 - $35  Expected Adjusted EBITDA2    $55 - $65    $25 - $35  27 

 FOR MORE INFORMATION:WWW.CLEARWATERPAPER.COM    28