Clearwater Paper Corporation (NYSE:CLW) Q2 2022 Earnings Conference Call August 2, 2022 5:00 PM ET

Company Participants

Sloan Bohlen - Investor Relations

Arsen Kitch - President and Chief Executive Officer

Mike Murphy - Chief Financial Officer

Conference Call Participants

Adam Josephson - KeyBanc Capital Markets

Mark Wilde - BMO Capital Markets

Paul Quinn - RBC Capital Markets

Operator

Good day, and thank you for standing by. Welcome to the Clearwater Paper 2Q '22 Earnings Call. [Operator Instructions]

I will now turn the conference over to Sloan Bohlen, Investor Relations. Please go ahead.

Sloan Bohlen

Thank you, Sarah. Good afternoon, and thank you for joining Clearwater Paper's second quarter 2022 earnings conference call. Joining me on the call today are Arsen Kitch, President and Chief Executive Officer; and Mike Murphy, Chief Financial Officer.

Financial results for the second quarter of 2022 were released shortly after today's market close, along with the filing of our 10-Q. You will find a presentation of supplemental information, including a slide providing the company's current outlook posted on the Investor Relations page of our website at clearwaterpaper.com.

Additionally, we will be providing certain non-GAAP information in this afternoon's discussion. A reconciliation of the non-GAAP information to comparable GAAP information is included in the press release and in the supplemental information provided on our website.

Please note Slide 2 of our supplemental information covering forward-looking statements. Rather than rereading this slide, we are going to incorporate it by referencing to our prepared remarks.

And with that, let me turn the call over to Arsen.

Arsen Kitch

Good afternoon, and thank you for joining us. Please turn to Slide 3. We had an outstanding second quarter that came in at the top end of our outlook range.

On a consolidated basis, we reported net sales of $526 million, which were 30% higher than prior year. Adjusted net income was $19 million, and adjusted EBITDA was $63 million. Let me share a few highlights.

Strong paperboard demand continued, and prices increased. Tissue demand was also strong as consumers turn to private brands to help offset the impact of inflation. We successfully renewed key tissue customer agreements that were expiring this year and captured price increases.

Inflation remains a headwind across most of our input costs, particularly in pulp, fiber, chemicals, energy and freight. In addition to price increases, we continue to improve our operating performance, which mitigated the impact of rising costs.