Arsen S. Kitch to Succeed Linda K. Massman
as Chief Executive Officer, Effective April 1, 2020
Clearwater Paper Corporation (NYSE: CLW) today announced
that its board of directors (the “board”) has unanimously elected
Arsen S. Kitch, the company’s senior vice president and general
manager of its consumer products division, as its next chief
executive officer, effective April 1, 2020. Upon becoming CEO, Mr.
Kitch will be appointed to the board.
Mr. Kitch will succeed Linda K. Massman, who has informed the
board of her decision to retire from Clearwater Paper after serving
in the CEO position since January 2013. She previously served as
the company’s president and chief operating officer from 2011 to
2013 and as chief financial officer from 2008 to 2011.
In addition, the company announced that Alexander Toeldte will
transition from chair to independent executive chair of the board,
effective March 1, 2020, to ensure an effective leadership
transition.
Alexander Toeldte, chair of the board, said, “Arsen has
contributed greatly to our company with his strategic acumen and
strong leadership skills. After careful consideration, the board is
proud to select a candidate who deeply understands our businesses.
Arsen is well-positioned to lead our company and enhance
shareholder value, given his knowledge of our industry as well as
his operations, finance and corporate development experience. The
board looks forward to working with Arsen and the leadership team
to ensure a seamless transition for our company and
stakeholders.”
Mr. Kitch stated, “I am honored to succeed Linda as the
company’s next CEO and am excited about the opportunity to lead our
company forward. Today, Clearwater Paper has a healthy business and
a strong team focused on driving results and building on our recent
momentum of solid operational results. I look forward to working
with the board and management, and all of our team members, to
advance our strategy, create a stronger company for our customers
and employees, and deliver value for our shareholders.”
“We are sincerely grateful to Linda for her leadership and many
contributions to Clearwater Paper over the last 11 years. She was
one of the founding leaders of the company. As CEO she has led it
to greater operational capabilities, as well as prepared it to
generate greater cash flow and to de-lever the balance sheet. On
behalf of the board, I thank Linda for her many years of service,
and wish her all the best in the future,” added Mr. Toeldte.
Ms. Massman said, “It has been a great privilege to lead
Clearwater Paper, and I am proud of what we have accomplished. With
the support of our hard-working and dedicated team, we have
positioned our operational infrastructure to meet changing market
demands. I am confident that Clearwater Paper will achieve
continued success under Arsen’s leadership.”
The company has initiated a comprehensive search process to
identify and evaluate potential candidates to be the company’s next
general manager of its consumer products division.
Revised Fourth Quarter of 2019 Outlook
Clearwater Paper is also updating its fourth quarter of 2019
outlook. Due to lower input costs, timing of certain expenses and
strong execution of the business, the company now expects adjusted
earnings before interest, taxes, depreciation and amortization, or
EBITDA to be in the range of $49 to $53 million compared to its
prior range of $38 million to $46 million given during its third
quarter of 2019 earnings call held on October 24, 2019. A
reconciliation of Adjusted EBITDA is attached. The Company will
provide greater details regarding its performance and results for
the fourth quarter and full year of 2019, as well as provide an
outlook for 2020, on its upcoming earnings call in late
February.
About Arsen S. Kitch
Mr. Kitch has served as senior vice president and general
manager of Clearwater Paper’s consumer products business since
2018. Prior to that, he served as vice president of finance and
vice president of financial planning and analysis since joining the
company in 2013. Before Clearwater Paper, Mr. Kitch was a finance
director at Nestlé USA and previously was at KKR Capstone and Frito
Lay. He received an MBA from Stanford Graduate School of Business
and a Bachelor of Business Administration from the University of
California, Berkeley.
About Alexander Toeldte
Mr. Toeldte has been a director of Clearwater Paper since April
2016. He has also served as a director of Xerium Technologies, and
as an operating director at Paine & Partners. Mr. Toeldte
served as president, CEO and a director of Boise Inc., a paper
manufacturer, from February 2008 to 2013 and at Boise Cascade and
as its executive vice president, paper, packaging and newsprint
segments from October 2005 to 2008. Prior to Boise, Mr. Toeldte’s
experience includes senior executive roles at Fonterra Co-operative
Group, and as chief executive of Fletcher Challenge Building as
well as Fletcher Challenge Paper. He has also served as a partner
at McKinsey & Company from 1986 to 1999 in Toronto, Brussels,
Montreal, and Stockholm, and as chairman of the American Forest
& Paper Association in 2012.
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 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 the leadership
transition, shareholder value, operational results, strategy,
shareholder value, cash flow, balance sheet and fourth quarter 2019
net earnings and Adjusted EBITDA. These forward-looking statements
are based on current expectations 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 those risks and uncertainties described from
time to time in the company's public filings with the Securities
and Exchange Commission. The company does not undertake to update
any forward-looking statements based on new developments or changes
to the company’s expectations.
For additional information on Clearwater Paper, please visit our
website at www.clearwaterpaper.com
Clearwater Paper Corporation Reconciliation of Non-GAAP Financial
Measures Adjusted EBITDA Unaudited (Dollars in thousands)
THREE MONTHS ENDED DECEMBER 31, 2019 RANGE OF ESTIMATES FROM TO
Reconciliation to Adjusted EBITDA1 GAAP, net earnings
$
2,300
$
4,900
Interest expense, net
12,400
12,400
Income tax (benefit) provision
500
1,900
Depreciation and amortization
29,300
29,300
Non-operating pension and OPEB costs
1,400
1,400
Other operating charges
3,100
3,100
Adjusted EBITDA
$
49,000
$
53,000
1 Adjusted EBITDA is a non-GAAP measure that management uses as a
supplemental performance measure. The most directly comparable GAAP
measure is net earnings. Adjusted EBITDA is net earnings (losses)
adjusted for net interest expense, income taxes, depreciation and
amortization and excludes the impact of items that we do not
believe are indicative of our core operating performance.
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version on businesswire.com: https://www.businesswire.com/news/home/20200128005774/en/
(News media) Shannon Myers 509.344.5967
(Investors) Sloan Bohlen Solebury Trout 509.344.5906
investorinfo@clearwaterpaper.com
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