8-K

UNITED STATESSECURITIES 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): July 30, 2015
_________________

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, WA 99201
(Address of principal executive offices) (Zip Code)

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

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:

⃞ 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))

Item 2.02.            Results of Operations and Financial Condition.

On July 30, 2015, Clearwater Paper Corporation announced its results of operations and financial condition for the second quarter results ending June 30, 2015.  A copy of the press release containing this announcement is furnished as Exhibit 99.1 hereto.  In addition, a copy of the Company’s Second Quarter 2015 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)  Exhibits.

99.1	Press release issued by Clearwater Paper Corporation, dated July 30, 2015: CLEARWATER PAPER REPORTS SECOND QUARTER 2015 RESULTS
99.2	Clearwater Paper Corporation Second Quarter 2015 Supplemental Information, dated July 30, 2015

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:	July 30, 2015
			CLEARWATER PAPER CORPORATION
		By:		/s/ Michael S. Gadd
				Michael S. Gadd, Corporate Secretary

EXHIBIT INDEX

Exhibit	Description
99.1	Press release issued by Clearwater Paper Corporation, dated July 30, 2015:  CLEARWATER PAPER REPORTS SECOND QUARTER 2015 RESULTS
99.2	Clearwater Paper Corporation Second Quarter 2015 Supplemental Information, dated July 30, 2015

EX-99.1

Exhibit 99.1

Clearwater Paper Reports Second Quarter 2015 Results

SPOKANE, Wash.--(BUSINESS WIRE)--July 30, 2015--Clearwater Paper Corporation (NYSE:CLW) today reported financial results for the second quarter of 2015.

The company reported net sales of $444.6 million for the second quarter of 2015, down 10.9% compared to net sales of $498.8 million for the second quarter of 2014 primarily due to the sale of the company’s specialty mills in December 2014. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the second quarter of 2015 were $15.6 million, or $0.81 per diluted share, compared to $12.5 million, or $0.61 per diluted share, for the second quarter of 2014. The 2015 second quarter GAAP net earnings included $1.0 million of after-tax benefit associated with the mark-to-market impact of directors’ equity-based compensation, $0.9 million of net after-tax gain associated with the settlement of a working capital escrow account established in connection with the sale of the company’s specialty mills, and $0.5 million of after-tax expense associated with the closure of the company’s Long Island, New York, converting and distribution facility. Excluding those items, second quarter 2015 adjusted net earnings were $14.2 million, or $0.74 per diluted share, compared to second quarter 2014 adjusted net earnings of $15.3 million, or $0.74 per diluted share.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $52.7 million for the second quarter of 2015. Adjusted EBITDA for the quarter was $50.7 million, down 11.6% compared to second quarter 2014 Adjusted EBITDA of $57.3 million. The decrease in EBITDA and Adjusted EBITDA was due primarily to costs associated with scheduled major maintenance at the company’s Arkansas pulp and paperboard mill and the sale of the company’s specialty tissue mills, partially offset by lower input costs for pulp, chemicals and natural gas.

"Clearwater Paper delivered strong results that exceeded the high end of our outlook for the second quarter of 2015," said Linda K. Massman, president and chief executive officer. "Our consumer products business has continued to demonstrate the ability to increase operating leverage, execute on its plan to improve efficiencies throughout the organization and expand its customer base. During the first half of the year, pulp and paperboard successfully completed major maintenance at both facilities within budget and brought these operations to a higher performance level, in addition to reaching record paperboard shipments in the second quarter."

Through July 29, 2015, the company has repurchased approximately 600,000 shares at an average price of $61.97 under the $100 million stock repurchase program authorized in December 2014.

SECOND QUARTER 2015 SEGMENT PERFORMANCE

Consumer Products

Net sales in the Consumer Products segment were $239.4 million for the second quarter of 2015, down 20% compared to second quarter 2014 net sales of $299.1 million. This decrease was due to the sale of the specialty tissue mills.

On a GAAP basis, the segment had operating income of $17.0 million, compared to operating income of $12.7 million in the second quarter of 2014. Adjusted operating income of $16.4 million for the second quarter of 2015 was up $1.5 million compared to the same period in 2014, after adjusting for $0.7 million and $2.2 million of costs in the second quarters of 2015 and 2014, respectively, related to previously announced facility closures. Also included in adjusted operating income for the second quarter of 2015 was the recognition of a $1.3 million net gain due to the settlement of the working capital escrow account associated with the sale of the specialty tissue mills. The improved results in the most recent period were driven primarily by a richer product mix, lower pricing for external pulp and increased usage of internally produced pulp, reduced energy costs, and lower planned maintenance expense, partially offset by the absence of operating income from the company’s former specialty mills.

• Total tissue sales volumes of 96,220 tons in the second quarter of 2015 declined by 28.6% and converted product cases shipped were 13.1 million, down 6.9%, each compared to the second quarter of 2014, largely due to the sale of the specialty mills.
• Average tissue net selling prices increased 12.0% to $2,482 per ton in the second quarter of 2015, compared to the second quarter of 2014, due to improved product mix after the sale of the specialty mills.

Pulp and Paperboard

Net sales in the Pulp and Paperboard segment were $205.2 million for the second quarter of 2015, up 2.8% compared to second quarter 2014 net sales of $199.6 million. The increase was primarily due to stronger seasonal shipments. Operating income for the quarter decreased $5.9 million to $27.8 million, compared to $33.6 million for the second quarter of 2014, primarily due to approximately $7 million of scheduled major maintenance costs at the Arkansas pulp and paperboard mill, weaker pricing, and higher volumes of purchased pulp due to the major maintenance outage in Arkansas. These factors were partially offset by lower polyethylene prices and reduced chemical usage due to capital improvements at the Arkansas recovery boiler, lower natural gas prices and slightly lower transportation costs.

• Paperboard sales volumes increased 4.6% to a record 204,983 tons in the second quarter of 2015, compared to 195,924 tons in the second quarter of 2014.
• Paperboard net selling prices decreased 2.0% to $997 per ton compared to the second quarter of 2014 as a result of a product mix shift toward non-extruded products and quality related rebates that were limited in volume and scope.

Taxes

The company’s GAAP tax rate for the second quarter of 2015 was a provision of 35.8% compared to 44.4% in the second quarter of 2014. The higher rate in 2014 was a result of the net impact of changes related to amendments to state tax returns and state tax rate changes. On an adjusted basis, the second quarter 2015 tax rate was 36.2%. The company expects its annual GAAP and adjusted tax rates to be approximately 36% for 2015.

Note Regarding Use of Non-GAAP Financial Measures

In this press release, the company presents certain non-GAAP financial information for the second quarters of 2015 and 2014, including EBITDA, Adjusted EBITDA, adjusted net earnings, adjusted net earnings per diluted share, and adjusted operating income. Because these amounts are not in accordance with GAAP, reconciliations to net earnings and net earnings per diluted share as determined in accordance with GAAP are included 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.

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. Clearwater Paper’s employees build shareholder value by developing strong customer partnerships 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 the company’s improving operational efficiencies, expanding customer base and expected tax rate for 2015. 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 the company’s products, including as a result of increased capacity as additional manufacturing facilities are operated by the company’s competitors; customer acceptance, timing and quantity of purchases of the company’s new through-air-dried, or TAD products, or other tissue products; the loss of or changes in prices in regards to a significant customer; changes in transportation costs and disruptions in transportation services; manufacturing or operating disruptions, including IT system failures, equipment malfunction and damage to the company’s manufacturing facilities; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which the company operates; changes in the cost and availability of wood fiber and wood pulp; 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; increased supply and pricing pressures resulting from increasing Asian paper production capabilities; cyclical industry conditions; changes in expenses and required contributions associated with the company’s pension plans; reliance on a limited number of third-party suppliers for raw materials; cyclical industry conditions; inability to successfully implement the company’s operational efficiencies and expansion strategies; 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, 2014. 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.

Clearwater Paper Corporation
Consolidated Statements of Operations
Unaudited (Dollars in thousands - except per-share amounts)
	Three Months Ended										Six Months Ended
	June 30,										June 30,
		2015					2014					2015					2014
Net sales	$	444,558		100	%	$	498,759		100	%	$	878,584		100	%	$	983,679		100	%
Costs and expenses:
Cost of sales		(384,347	)	86	%		(434,111	)	87	%		(774,179	)	88	%		(860,740	)	88	%
Selling, general and administrative expenses		(28,138	)	6	%		(31,565	)	6	%		(57,095	)	6	%		(65,079	)	7	%
Impairment of assets		-		-			-		-			-		-			(4,259	)	-
Total operating costs and expenses		(412,485	)	93	%		(465,676	)	93	%		(831,274	)	95	%		(930,078	)	95	%
Income from operations		32,073		7	%		33,083		7	%		47,310		5	%		53,601		5	%
Interest expense, net		(7,774	)	2	%		(10,688	)	2	%		(15,556	)	2	%		(21,422	)	2	%
Earnings before income taxes		24,299		5	%		22,395		4	%		31,754		4	%		32,179		3	%
Income tax provision		(8,702	)	2	%		(9,942	)	2	%		(10,400	)	1	%		(13,500	)	1	%
Net earnings	$	15,597		4	%	$	12,453		2	%	$	21,354		2	%	$	18,679		2	%
Net earnings per common share:
Basic	$	0.82				$	0.61				$	1.11				$	0.91
Diluted		0.81					0.61					1.10					0.90
Average shares outstanding (in thousands):
Basic		19,082					20,256					19,205					20,614
Diluted		19,294					20,517					19,384					20,870

Clearwater Paper Corporation
Condensed Consolidated Balance Sheets
Unaudited (Dollars in thousands)
	June 30,			December 31,
		2015			2014
ASSETS
Current assets:
Cash	$	11,465		$	27,331
Restricted cash		2,270			1,500
Short-term investments		60,000			50,000
Receivables, net		141,090			135,169
Inventories		248,280			286,626
Deferred tax assets		20,839			21,760
Prepaid expenses		7,869			4,191
Total current assets		491,813			526,577
Property, plant and equipment, net		823,672			810,987
Goodwill		209,087			209,087
Intangible assets, net		22,473			24,956
Pension assets		8,098			4,738
Other assets, net		7,394			9,583
TOTAL ASSETS	$	1,562,537		$	1,585,928
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	214,701		$	215,826
Current liability for pensions and other postretirement employee benefits		7,915			7,915
Total current liabilities		222,616			223,741
Long-term debt		575,000			575,000
Liability for pensions and other postretirement employee benefits		114,835			118,464
Other long-term obligations		50,779			56,856
Accrued taxes		1,717			2,696
Deferred tax liabilities		110,289			111,634
Stockholders' equity, excluding accumulated other comprehensive loss, net of tax		554,963			568,400
Accumulated other comprehensive loss, net of tax		(67,662	)		(70,863	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,562,537		$	1,585,928

Clearwater Paper Corporation
Consolidated Statements of Cash Flows
Unaudited (Dollars in thousands)
	Six Months Ended
	June 30,
		2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	21,354		$	18,679
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization		41,640			44,246
Equity-based compensation expense		2,019			6,910
Impairment of assets		-			4,259
Deferred tax (benefit) provision		(2,480	)		9,857
Employee benefit plans		1,438			979
Deferred issuance costs and discounts on long-term debt		446			949
Disposal of plant and equipment, net		272			422
Non-cash adjustments to unrecognized taxes		(979	)		-
Changes in working capital, net		29,309			14,818
Changes in taxes receivable, net		1,255			3,663
Excess tax benefits from equity-based payment arrangements		(1,459	)		-
Funding of qualified pension plans		(3,179	)		(8,889	)
Other, net		(1,726	)		(980	)
Net cash flows from operating activities		87,910			94,913
CASH FLOWS FROM INVESTING ACTIVITIES
Changes in short-term investments, net		(10,000	)		11,000
Additions to plant and equipment		(55,538	)		(32,612	)
Proceeds from sale of assets		507			619
Net cash flows from investing activities		(65,031	)		(20,993	)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock		(37,148	)		(74,322	)
Payment of tax withholdings on equity-based payment arrangements		(3,048	)		(792	)
Excess tax benefits from equity-based payment arrangements		1,459			-
Other, net		(8	)		-
Net cash flows from financing activities		(38,745	)		(75,114	)
Decrease in cash		(15,866	)		(1,194	)
Cash at beginning of period		27,331			23,675
Cash at end of period	$	11,465		$	22,481

Clearwater Paper Corporation
Segment Information
Unaudited (Dollars in thousands)
	Three Months Ended										Six Months Ended
	June 30,										June 30,
		2015					2014					2015					2014
Segment net sales:
Consumer Products	$	239,391		54	%	$	299,130		60	%	$	474,567		54	%	$	585,638		60	%
Pulp and Paperboard		205,167		46	%		199,629		40	%		404,017		46	%		398,041		40	%
Total segment net sales	$	444,558		100	%	$	498,759		100	%	$	878,584		100	%	$	983,679		100	%
Operating income (loss):
Consumer Products	$	17,032		53	%	$	12,705		38	%	$	29,427		62	%	$	12,182		23	%
Pulp and Paperboard		27,754		87	%		33,635		102	%		43,948		93	%		70,411		131	%
		44,786					46,340					73,375					82,593
Corporate		(12,713	)	40	%		(13,257	)	40	%		(26,065	)	55	%		(28,992	)	54	%
Income from operations	$	32,073		100	%	$	33,083		100	%	$	47,310		100	%	$	53,601		100	%

Clearwater Paper Corporation
Reconciliation of Consolidated Net Earnings to EBITDA and Adjusted EBITDA
Unaudited (Dollars in thousands)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2015			2014			2015			2014
Net earnings	$	15,597		$	12,453		$	21,354		$	18,679
Add back:
Interest expense, net		7,774			10,688			15,556			21,422
Income tax provision		8,702			9,942			10,400			13,500
Depreciation and amortization expense		20,632			22,015			41,640			44,246
EBITDA1	$	52,705		$	55,098		$	88,950		$	97,847
Directors' equity-based compensation (benefit) expense	$	(1,457	)	$	(36	)	$	(1,927	)	$	2,781
Costs associated with Long Island facility closure		735			1,843			1,289			10,275
Adjustments associated with sale of the specialty mills		(1,331	)		-			(1,462	)		-
Costs associated with labor agreement		-			-			1,730			-
Costs associated with Thomaston facility closure		-			374			-			1,124
Adjusted EBITDA2	$	50,652		$	57,279		$	88,580		$	112,027

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 earnings adjusted for net interest expense, 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 we do not believe are indicative of our core operating performance.

Clearwater Paper Corporation
Reconciliation of Non-GAAP Financial Measures
Unaudited (Dollars in thousands, except per-share amounts)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2015			2014			2015			2014
GAAP net earnings	$	15,597		$	12,453		$	21,354		$	18,679
Special items, after-tax1:
Directors' equity-based compensation (benefit) expense		(998	)		(23	)		(1,323	)		1,779
Costs associated with Long Island facility closure		504			1,193			887			6,587
Adjustments associated with sale of the specialty mills		(912	)		-			(1,003	)		-
Costs associated with labor agreement		-			-			1,197			-
Costs associated with Thomaston facility closure		-			242			-			722
Discrete tax items related to state tax rate changes		-			1,388			-			1,388
Adjusted net earnings2	$	14,191		$	15,253		$	21,112		$	29,155
GAAP net earnings per diluted share	$	0.81		$	0.61		$	1.10		$	0.90
Special items, after-tax1:
Directors' equity-based compensation (benefit) expense		(0.05	)		-			(0.07	)		0.09
Costs associated with Long Island facility closure		0.03			0.06			0.05			0.32
Adjustments associated with sale of the specialty mills		(0.05	)		-			(0.05	)		-
Costs associated with labor agreement		-			-			0.06			-
Costs associated with Thomaston facility closure		-			0.01			-			0.03
Discrete tax items related to state tax rate changes		-			0.07			-			0.07
Adjusted net earnings per diluted share2	$	0.74		$	0.74		$	1.09		$	1.40

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

CONTACT:
Clearwater Paper Corporation
News media:
Matt Van Vleet, 509-344-5912
or
Investors:
Robin Yim, 509-344-5906

EX-99.2

Exhibit 99.2

CLEARWATER PAPER CORPORATION SECOND QUARTER 2015 SUPPLEMENTAL INFORMATION LINDA MASSMAN PRESIDENT, CHIEF EXECUTIVE OFFICER AND DIRECTOR JOHN HERTZ SENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER

FORWARD-LOOKING STATEMENTS This 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, segment, corporate and consolidated outlook for Q3 2015 and fiscal year 2015; production; product volumes shipped; product pricing and sales mix; pulp and wood fiber costs and supply; chemical costs; operational and packaging supply costs; transportation costs; energy costs; cost and timing of major maintenance and repairs; cost of wages and benefits; selling, general, and administrative expenses; corporate expenses; consolidated sales and operating margins; EBITDA sensitivities; and estimated Q3 2015 adjusted EBITDA. 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; customer acceptance, timing and quantity of purchases of our new through-air-dried, or TAD products, or other tissue products; the loss of or changes in prices in regards to a significant customer; changes in transportation costs and disruptions in transportation services; manufacturing or operating disruptions, including equipment malfunction and damage to our manufacturing facilities caused by fire or weather-related events and IT system failures; changes in the cost and availability of wood fiber and wood pulp; labor disruptions; changes in costs for and availability of packaging supplies, chemicals, energy and maintenance and repairs; environmental liabilities or expenditures; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate; changes in customer product preferences and competitors' product offerings; changes in expenses and required contributions associated with our pension plans; reliance on a limited number of third-party suppliers for raw materials; cyclical industry conditions; inability to successfully implement our operational efficiencies and expansion strategies; inability to fund our debt obligations; restrictions on our business from debt covenants and terms; and changes 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, whether as a result of new information, future events or otherwise. 1 announced price increases for our products may not be accepted in whole or part;

SECOND QUARTER SUMMARY $445 MILLION NET SALES, UP 2.4% VS. Q1‘15 $51 MILLION ADJUSTED EBITDA1, UP 33.5% VS. Q1‘15 120 BASIS POINTS ADJUSTED EBITDA MARGIN1,2 IMPROVEMENT IN CONSUMER PRODUCTS VS. Q1‘15 COMPLETED MAJOR MAINTENANCE AT OUR ARKANSAS PAPERBOARD FACILITY, $7 MILLION COST CONTINUED FOCUS ON OPERATIONAL EFFICIENCY TO REDUCE COSTS, IMPROVE MARGIN 1 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. 2 Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net sales.2

FINANCIAL SUMMARY (UNAUDITED) 1 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. 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 Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net sales 5 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 1. 6 Results include specialty tissue business which was sold at the end of Q4’14. Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15Q3'15 Outlook5$ 484,920$ 498,759$ 511,142$ 472,318$ 434,026$ 444,5580%-2% higher$ 62,982$ 66,865$ 80,604$ 62,537$ 46,478$ 60,946Adjusted gross profit margin 1,213.0% 13.4% 15.8% 13.2% 10.7% 13.7% ($30,465) ($31,601) ($30,936) ($31,620) ($29,558) ($30,926) $ 32,517 $ 35,264 $ 49,668 $ 30,917 $ 16,920 $ 30,020 Consumer Products 8,65914,92217,92313,33913,63216,436 Pulp and Paperboard36,77633,63545,60231,23617,11027,754Corporate (12,918) (13,293) (13,857) (13,658) (13,822) (14,170) 6.7% 7.1% 9.7% 6.5% 3.9%6.8%9.0%-10.5%($10,734)($10,688)($9,570)($8,158)($7,782)($7,774)($7,881)($9,323)($14,403)($7,782)($2,217)($8,055)$ 13,902$ 15,253$ 25,695$ 14,977$ 6,921$ 14,191$ 22,231$ 22,015$ 22,293$ 23,606$ 21,008$ 20,632$ 54,748$ 57,279$ 71,961$ 54,523$ 37,928$ 50,652$62,000-$70,000Consumer Products24,14929,99333,40728,79826,60929,874Pulp and Paperboard 43,04639,65451,54138,46024,42134,491Corporate(12,447)(12,368)(12,987)(12,735)(13,102)(13,713)11.3%11.5%14.1%11.5%8.7%11.4%$ 0.66$ 0.74$ 1.28$ 0.77$ 0.36$ 0.743.0 2.9 2.5 2.4 2.6 2.7 $ 14,751$ 16,949$ 26,161$ 41,739$ 20,809$ 29,542(Dollars in thousands - except per-share amounts)Net salesAdjusted gross profit1Adjusted selling, general and administrative expenses1Adjusted operating income (loss)1Adjusted operating margin1,3Interest expense, netAdjusted income tax provision1Adjusted net earnings1Depreciation and amortization expenseAdjusted EBITDA1Adjusted EBITDA margin1,4Adjusted net earnings per diluted common share1Debt to rolling four quarter total Adjusted EBITDA1Capital ExpendituresRESULTS INCLUDE SPECIALTY MILLS6 RESULTS WITHOUT SPECIALTY MILLS

Q2’15 VS. Q1’15 CONSOLIDATED ADJUSTED EBITDA1 BRIDGE 1 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. $37.9 $3.6 $2.0 $1.4 $0.8 $1.3 $1.7 $7.2 $2.0 $0.6 $0.6 $50.7 $30 $35 $40 $45 $50 $55 $60 ADJ. EBITDA1 (MILLIONS) PRICE/MIX Higher mix of parent roll sales at slightly lower parent roll prices, paperboard quality related rebates VOLUME Higher seasonal paperboard shipments, higher non-retail tissue sales PPD WOOD FIBER Fiber prices down due to improved supply in Idaho and Arkansas wood baskets CPD PULP Lower external pulp usage due to no major maintenance outage at Idaho PPD in Q2 CHEMICALS Lower polyethylene prices and reduced usage due to capital improvements in Arkansas ENERGY Lower natural gas prices and lower usage due to warmer weather MAINTENANCE Idaho major maintenance outage completed in Q1 ($15M), Arkansas completed in Q2 ($7M), partly offset by additional routine maintenance OP. & PKG. SUPPLIES Lower operating labor costs and benefits due to operational efficiency improvements WAGES & BENEFITS Lower packaging costs due to sales mix shift from facial to bath and towel products, operational efficiency improvements

Q2’15 VS. Q2’14 CONSOLIDATED ADJUSTED EBITDA1 BRIDGE 1 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. SALE OF SPECIALTY MILLS Lower retail sales, higher parent roll shipments, lower conventional tissue pricing Divested 5 specialty mills in Q4’14 PRICE/MIX VOLUME Lower retail case sales, partly offset by increased parent roll sales and paperboard shipments PPD WOOD FIBER Higher purchased pulp due to major maintenance outage at Arkansas in Q2’15 CPD PULP Favorable external pulp pricing, increased usage of internal pulp CHEMICALS Lower polyethylene prices and reduced usage due to capital improvements in Arkansas ENERGY Lower natural gas prices MAINTENANCE Major maintenance outage at Arkansas PPD completed in Q2’15

KEY SEGMENT RESULTS – CONSUMER PRODUCTS (UNAUDITED) 1 Includes away-from-home (AFH), contract, machine-glazed (MG) and parent roll tissue products. 2 Includes retail, AFH, and contract tissue case products. 3 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. 4 Segment Adjusted EBITDA margin is defined as Segment Adjusted EBITDA divided by Segment net sales. Shipments Non-Retail (short tons) Retail (short tons) Total Tissue Tons Converted Products (cases in thousands)2 Sales Price Non-Retail ($/short ton)1 Retail ($/short ton) Total Tissue ($/short ton) Segment net sales ($ in thousands) Segment Adjusted EBITDA3 ($ in thousands) Segment Adjusted EBITDA margin3,4 56,839 75,009 70,919 127,758 13,437 $1,489 $2,841 $2,239 $286,508 $24,149 8.4% 59,832 134,841 14,101 $1,492 $2,795 $2,217 $299,130 $29,993 10.0% 10.9% $33,407 $306,104 $2,259 $2,836 $1,531 14,360 135,066 75,363 59,703 57,765 72,420 130,185 13,603 $1,506 $2,820 $2,237 $291,643 $28,798 9.9% 11.3% $26,609 $235,176 $2,546 $2,864 $1,475 13,025 92,209 71,102 21,107 24,744 71,476 96,220 13,125 $1,430 $2,846 $2,482 $239,391 $29,874 12.5% 17.0% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Results Include Specialty Mills Results Without Specialty Mills

CLEARWATER PAPER TISSUE SHIPMENTS AND U.S. RETAIL TISSUE MARKET Retail 74% AFH 8% Parent Rolls 16% Other 2% CLW Q2’15 by Market Segment (% of Tons) Retail 77% AFH 7% Parent Rolls 14% Other 2% CLW Q1’15 by Market Segment (% of Tons) U.S. Retail Tissue Market (MultiOutlet)1 CATEGORY Total Retail Tissue Share % Change Q2’15 vs. Q1’15 0.4% 28% PRIVATE LABEL BRANDS 72% (0.4)% % - 100% TOTAL

Q2’15 VS. Q1’15 CONSUMER PRODUCTS ADJUSTED EBITDA1 BRIDGE ICE/MIX SHIPMENT VOLUMES EXTERNAL PULP CHEMICAL COSTS OP. & PKG. SUPPLIES TRANSPORTATION COSTS ENERGY COSTS MAINTENANCE SG&A Q2’15 OUTLOOK VERSUS Q1’15 Stable 0-2% higher Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: stable Cost / shipped ton: higher Cost / shipped ton: stable higher stable Q2’15 ACTUAL VERSUS Q1’15 2% lower 4% higher Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: lower stable stable Q2’15 VS. Q1’15 CONSUMER PRODUCTS ADJUSTED EBITDA1 BRIDGE ICE/MIX SHIPMENT VOLUMES EXTERNAL PULP CHEMICAL COSTS OP. & PKG. SUPPLIES TRANSPORTATION COSTS ENERGY COSTS MAINTENANCE SG&A Q2’15 OUTLOOK VERSUS Q1’15 Stable 0-2% higher Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: stable Cost / shipped ton: higher Cost / shipped ton: stable higher stable Q2’15 ACTUAL VERSUS Q1’15 2% lower 4% higher Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: lower stable stable Q2’15 VS. Q1’15 CONSUMER PRODUCTS ADJUSTED EBITDA1 BRIDGE ICE/MIX SHIPMENT VOLUMES EXTERNAL PULP CHEMICAL COSTS OP. & PKG. SUPPLIES TRANSPORTATION COSTS ENERGY COSTS MAINTENANCE SG&A Q2’15 OUTLOOK VERSUS Q1’15 Stable 0-2% higher Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: stable Cost / shipped ton: higher Cost / shipped ton: stable higher stable Q2’15 ACTUAL VERSUS Q1’15 2% lower 4% higher Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: lower stable stable

KEY SEGMENT RESULTS – PULP AND PAPERBOARD (UNAUDITED) 1 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. Shipments Paperboard (short tons) Sales Price Paperboard ($/short ton) Segment net sales ($ in thousands) Segment Adjusted EBITDA1 ($ in thousands) Segment Adjusted EBITDA margin1,2 21.7% $43,046 $198,412 200,665 195,924 201,609 176,467 191,635 204,983 $199,629 $205,038 $180,675 $198,850 $205,167 $988 $1,017 $1,016 $1,017 $1,031 $997 $39,654 $51,541 $38,460 $24,421 $34,491 19.9% 25.1% 21.3% 12.3% 16.8% 19.0%

CLEARWATER PAPER PAPERBOARD SHIPMENTS AND U.S. PAPERBOARD MARKET U.S. Paperboard Production3 CATEGORY Total Domestic SBS1 Market Share Folding Food Service2 Liquid Packaging CLEARWATER PAPER 18% 13% 7% OTHER 14% 86% 82% 87% 93%

Q2’15 VS. Q1’15 PULP AND PAPERBOARD ADJUSTED EBITDA1 BRIDGE PRICE/MIX Q2’15 OUTLOOK VERSUS Q1’15 Q2’15 ACTUAL VERSUS Q1’15 3% lower 0% Stable SHIPMENT VOLUMES WOOD FIBER CHEMICAL COSTS OP. & PKG. SUPPLIES TRANSPORTATION COSTS ENERGY COSTS MAINTENANCE SG&A 0-2% Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: stable Cost / shipped ton: higher Cost / shipped ton: stable $7-$9M lower Stable 7% higher Cost / shipped ton: lower Cost / shipped ton: lower Cost / shipped ton: lower Cost / shipped ton: stable Cost / shipped ton: lower $7.2M lower Stable

CLEARWATER PAPER CROSS-CYCLE FINANCIAL MODEL 1 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. (Dollars in thousands)Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Net sales100%100%100%100%100%100%100%Adjusted gross profit margin113.0%13.4%15.8%13.2%10.7%13.7%17.0% Adjusted SG&A expenses1 as % of net sales(6.3%)(6.3%)(6.1%)(6.7%)(6.8%)(7.0%)(6.0%)Adjusted operating margin16.7%7.1%9.7%6.5%3.9%6.8%11.0% Adjusted net earnings1 as % of net sales2.9%3.1%5.0%3.2%1.6%3.2%5.0% Adjusted EBITDA margin111.3%11.5%14.1%11.5%8.7%11.4%15.0%CLEARWATER PAPER CROSS-CYCLE FINANCIAL MODEL12

RETURN ON INVESTED CAPITAL1,6 (UNAUDITED) 12.4% 12.7% 16.7% 4.7% 4.3% 11.1% 12.7% 12.2% 8.3% 7.7% 6.5% 4.5% 3.7% 0% 5% 10% 15% 20% 2011 2012 2013 2014 LTM Ending 6/30/15 ROIC Adjusted ROIC WACC 2 3,4,5 1 5 4 3 1 Return on Invested Capital (ROIC) is defined as [Net Earnings + Interest Expense] / [Tangible Stockholders’ Equity6 + Debt – Excess (Deficit) Cash6]. 2 Weighted Average Cost of Capital (WACC) is defined as [(Debt x Cost of Debt x {1-Marginal Tax Rate})/(Debt + Stockholders’ Equity)]+ [(Stockholders’ Equity x Cost of Equity)/(Debt + Stockholders’ Equity)]. 3 2013 Adjusted ROIC Net Earnings was adjusted to remove a benefit of $67.5 million from discrete tax items relating to release of uncertain tax positions. 2013 Adjusted ROIC Interest Expense includes debt retirement costs of $17.1 million. 4 2014 Adjusted ROIC Net Earnings was adjusted to remove costs/loss associated with optimization and sale of the specialty mills totaling $37.0 million after-tax. 2014 Adjusted ROIC Interest Expense includes debt retirement costs of $24.4 million. 5 LTM Ending 6/30/15 Adjusted ROIC Net Earnings was adjusted to remove costs/loss associated with optimization and sale of the specialty mills totaling $36.0 million after-tax. LTM Ending 6/30/15 Adjusted ROIC Interest Expense includes debt retirement costs of $24.4 million. 6 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below.13

THIRD QUARTER 2015 OUTLOOK (COMPARED TO Q2’15)1 CONSUMER PRODUCTS SHIPMENT VOLUMES PRICE/MIX PULP/WOOD FIBER COSTS CHEMICAL COSTS OP. & PKG. SUPPLIES TRANSPORTATION COSTS ENERGY COSTS MAINTENANCE & REPAIRS SG&A PULP AND PAPERBOARD CORPORATE Stable Stable Cost/shipped ton: stable Cost/shipped ton: lower Cost/shipped ton: stable Cost/shipped ton: Stable Cost/shipped ton: Lower Lower due to completion of Arkansas major maintenance outage ($7M) Stable Stable Stable Stable Slightly higher: 0–2% higher Slightly higher: 0–2% higher Cost/shipped ton: stable Cost/shipped ton: stable Cost/shipped ton: stable Cost/shipped ton: higher Cost/shipped ton: stable

BRIDGE TO Q3’15 ADJUSTED EBITDA OUTLOOK1,2 15 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 particularly input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements on page 1. 2 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure below. $51 $1-$3 $2-$4 $2-$3 $1-$3 $7 $1-$2 $62-$70 $15 $25 $35 $45 $55 $65 $75 Q2'15 Adj. EBITDA Shipment volumes Price/Mix Chemicals Energy Maintenance & Repairs Transportation costs Q3'15 Adj. EBITDA Outlook ADJ. EBITDA2 (MILLIONS) 1,2 2

EBITDA SENSITIVITIES COGS INPUTUNIT OF MEASUREPurchased PulpTon250,000$25$6.3Chips/SawdustTon2,300,000$3$6.9DieselGallon of Diesel10,000,000$0.50$5.0Linehaul RateMile65,000,000$0.10$6.5ChemicalsPaper Ton Produced1,200,000$5$6.0ElectricityMWh1,200,000$5$6.0Natural GasMBTU10,200,000$0.50$5.1*Excluding specialty mills2014 UNITS(APPROXIMATION)$ CHANGEPER UNIT +/-APPROXIMATE ANNUAL EBITDA IMPACT +/-(DOLLARS IN MILLIONS)16

ADJUSTED GROSS PROFIT & ADJUSTED SG&A RECONCILIATION OF NON-GAAP FINANCIAL 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)Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Gross profit1$ 58,291$ 64,648$ 76,685$ 58,675$ 44,194$ 60,211Costs associated with Thomaston facility closure750 374 42 91 - - Costs associated with Long Island facility closure3,941 1,843 3,877 3,771 554 735 Costs associated with labor agreement- - - - 1,730 - Adjusted gross profit2$ 62,982$ 66,865$ 80,604$ 62,537$ 46,478$ 60,946Selling, general and administrative expenses (SG&A)($33,514)($31,565)($31,817)($33,206)($28,957)($28,138)Costs associated with Long Island facility closure232 - - - - - Directors' equity-based compensation expense (benefit)2,817 (36) (185) 2,010 (470) (1,457) Costs/loss associated with optimization and sale of the specialty mills- - 1,066 (424) (131) (1,331) Adjusted selling, general and administrative expenses2($30,465)($31,601)($30,936)($31,620)($29,558)($30,926)17

SEGMENT ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 1 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)Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Consumer ProductsOperating (loss) income($523)$ 12,705$ 12,535($30,745)$ 12,395$ 17,032Costs associated with Thomaston facility closure750 374 42 91 - - Costs associated with Long Island facility closure8,432 1,843 4,767 3,771 554 735 Costs/loss associated with optimization and sale of the specialty mills- - 579 40,222 (131) (1,331) Costs associated with labor agreement- - - - 814 - Adjusted Consumer Products operating income1$ 8,659$ 14,922$ 17,923$ 13,339$ 13,632$ 16,436Pulp and PaperboardOperating Income$ 36,776$ 33,635$ 45,602$ 28,158$ 16,194$ 27,754Loss on impairment of Clearwater Fiber intangible asset- - - 3,078 - - Costs associated with labor agreement- - - - 916 - Adjusted Pulp and Paperboard operating income1$ 36,776$ 33,635$ 45,602$ 31,236$ 17,110$ 27,754CorporateOperating loss($15,735)($13,257)($14,159)($15,181)($13,352)($12,713)Directors' equity-based compensation expense (benefit)2,817 (36) (185) 2,010 (470) (1,457) Costs/loss associated with optimization and sale of the specialty mills- - 487 (487) - - Adjusted Corporate operating loss1($12,918)($13,293)($13,857)($13,658)($13,822)($14,170)18

ADJUSTED NET EARNINGS & ADJUSTED NET EARNINGS PER DILUTED COMMON SHARE RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 1 All non-tax items are tax effected at the expected annual rate for that period. 2 Adjusted net earnings and Adjusted net earnings 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)Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15GAAP net earnings (loss)$ 6,226$ 12,453$ 6,253($27,247)$ 5,757$ 15,597Special items, after tax:1Debt retirement costs- - 15,777 - - - Directors' equity-based compensation expense (benefit)1,802 (23) (120) 1,322 (325) (998) Costs associated with Thomaston facility closure480 242 27 60 - - Costs associated with Long Island facility closure5,394 1,193 3,069 2,480 383 504 Costs/loss associated with optimization and sale of the specialty mills- - 689 36,338 (91) (912) Discrete tax item related to state tax rate changes- 1,388 - - - - Loss on impairment of Clearwater Fiber intangible asset- - - 2,024 - - Costs associated with labor agreement- - - - 1,197 - Adjusted net earnings2$ 13,902$ 15,253$ 25,695$ 14,977$ 6,921$ 14,191Net earnings (loss) per diluted common share$ 0.29$ 0.61$ 0.31($1.39)$ 0.30$ 0.81Special items, after tax:1Debt retirement costs- - 0.78 - - - Directors' equity-based compensation expense (benefit)0.08 - (0.01) 0.07 (0.02) (0.05) Costs associated with Thomaston facility closure0.02 0.01 - - - - Costs associated with Long Island facility closure0.25 0.06 0.15 0.13 0.02 0.03 Costs/loss associated with optimization and sale of the specialty mills- - 0.03 1.86 - (0.05) Discrete tax item related to state tax rate changes- 0.07 - - - - Loss on impairment of Clearwater Fiber intangible asset- - - 0.10 - - Costs associated with labor agreement- - - - 0.06 - Adjusted net earnings per diluted common share2$ 0.66$ 0.74$ 1.28$ 0.77$ 0.36$ 0.7419

ADJUSTED INCOME TAX PROVISION RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (UNAUDITED) 1 Adjusted income tax provision excludes the impact of the items listed that we do not believe are indicative of our core operating performance. (Dollars in thousands)Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15GAAP income tax provision($3,558)($9,942)($3,735)($1,321)($1,698)($8,702)Special items, tax impact: Debt retirement costs- - (8,643) - - - Directors' equity-based compensation (expense) benefit (1,015) 13 65 (688) 145 459 Costs associated with Thomaston facility closure(270) (132) (15) (31) - - Costs associated with Long Island facility closure(3,038) (650) (1,698) (1,291) (171) (231) Costs/loss associated with optimization and sale of the specialty mills- - (377) (3,397) 40 419 Discrete tax item related to state tax rate changes- 1,388 - - - - Loss on impairment of Clearwater Fiber intangible asset- - - (1,054) - - Costs associated with labor agreement- - - - (533) - Adjusted income tax provision1($7,881)($9,323)($14,403)($7,782)($2,217)($8,055)20

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 of 2014 includes debt retirement costs of $24.4 million. 3 Adjusted EBITDA excludes the impact of the items listed that we do not believe are indicative of our core operating performance. (Dollars in thousands)Q1'14Q2'14Q3'14Q4'14Q1'15Q2'15Earnings before interest, income taxes, and depreciation & amortization (EBITDA)1 GAAP net earnings (loss)$ 6,226$ 12,453$ 6,253($27,247)$ 5,757$ 15,597Interest expense, net210,73410,68833,9908,1587,7827,774Income tax provision3,5589,9423,7351,3211,6988,702Depreciation and amortization expense22,23122,01522,29323,60621,00820,632EBITDA1$ 42,749$ 55,098$ 66,271$ 5,838$ 36,245$ 52,705Directors' equity-based compensation expense (benefit)2,817 (36) (185) 2,010 (470) (1,457) Costs associated with Thomaston facility closure750 374 42 91 - - Costs associated with Long Island facility closure8,432 1,843 4,767 3,771 554 735 Costs/loss associated with optimization and sale of the specialty mills- - 1,066 39,735 (131) (1,331) Loss on impairment of Clearwater Fiber intangible asset- - - 3,078 - - Costs associated with labor agreement- - - - 1,730 - Adjusted EBITDA3$ 54,748$ 57,279$ 71,961$ 54,523$ 37,928$ 50,65221

SEGMENT EBITDA & ADJUSTED EBITDA RECONCILIATION OF NON-GAAP FINANCIAL 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. 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. (Dollars in thousands) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15Q2'15Consumer ProductsOperating (loss) income($523)$ 12,705$ 12,535(30,745)$ $ 12,395$ 17,032Depreciation and amortization expense15,490 15,071 15,484 15,459 12,977 13,438 Segment EBITDA1$ 14,967$ 27,776$ 28,019($15,286)$ 25,372$ 30,470Costs associated with Thomaston facility closure750 374 42 91 - - Costs associated with Long Island facility closure8,432 1,843 4,767 3,771 554 735 Costs/loss associated with optimization and sale of the specialty mills- - 579 40,222 (131) (1,331) Costs associated with labor agreement- - - - 814 - Segment Adjusted EBITDA2$ 24,149$ 29,993$ 33,407$ 28,798$ 26,609$ 29,874Pulp and PaperboardOperating income$ 36,776$ 33,635$ 45,602$ 28,158$ 16,194$ 27,754 Depreciation and amortization expense6,270 6,019 5,939 7,224 7,311 6,737 Segment EBITDA1$ 43,046$ 39,654$ 51,541$ 35,382$ 23,505$ 34,491Loss on impairment of Clearwater Fiber intangible asset- - - 3,078 - - Costs associated with labor agreement- - - - 916 - Segment Adjusted EBITDA2$ 43,046$ 39,654$ 51,541$ 38,460$ 24,421$ 34,491CorporateOperating loss($15,735)($13,257)($14,159)($15,181)($13,352)($12,713)Depreciation and amortization expense471 925 870 923 720 457 Corporate EBITDA1 ($15,264) ($12,332) ($13,289) ($14,258) ($12,632) ($12,256)Directors' equity-based compensation expense (benefit)2,817 (36) (185) 2,010 (470) (1,457) Costs/loss associated with optimization and sale of the specialty mills- - 487 (487) - - Corporate Adjusted EBITDA2($12,447)($12,368)($12,987)($12,735)($13,102)($13,713)22

RETURN ON INVESTED CAPITAL, TANGIBLE STOCKHOLDERS’ EQUITY & EXCESS CASH RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 1 Non-GAAP measure. 2 Tangible stockholders' equity is defined as stockholders’ equity less Goodwill and Intangible assets, net. 3 Excess cash is defined as the sum of Cash and Short-term investments less Operating cash1. 4 Operating cash is defined as a minimum amount of available cash deemed by management to be sufficient to avoid operating disruptions due to a mismatch of cash inflows and outflows during an accounting period. Note: Balance sheet items are as of the end of each period presented. (Dollars in thousands) 2011201220132014Twelve Months Ending June 30, 2015Net earnings (loss)39,674$ 64,131$ 106,955$ ($2,315)360$ Interest expense, net44,809 33,796 44,036 39,150 33,284 Net earnings before interest184,483$ 97,927$ 150,991$ 36,835$ 33,644$ Tangible stockholders' equity2205,623$ 263,608$ 334,783$ 263,494$ 255,741$ Debt523,694 523,933 650,000 575,000 575,000 Less excess cash3(48,440) (17,579) (78,675) (62,331) (56,465) Invested capital680,877$ 769,962$ 906,108$ 776,163$ 774,276$ Return on Invested Capital (ROIC) 12.4% 12.7% 16.7%4.7%4.3%Stockholders' equity484,904$ 540,894$ 605,094$ 497,537$ 487,301$ Goodwill(229,533) (229,533) (229,533) (209,087) (209,087) Intangible assets, net(49,748) (47,753) (40,778) (24,956) (22,473) Tangible stockholders' equity2205,623$ 263,608$ 334,783$ 263,494$ 255,741$ Cash8,439$ 12,579$ 23,675$ 27,331$ 11,465$ Short-term investments 55,001 20,000 70,000 50,000 60,000 Operating cash4(15,000) (15,000) (15,000) (15,000) (15,000) Excess cash348,440$ 17,579$ 78,675$ 62,331$ 56,465$ 23

PRO FORMA IMPACT OF SALE OF SPECIALTY MILLS (UNAUDITED) CONSUMER PRODUCTS INCLUDING SPECIALTY MILLSSPECIALTY MILLSPRO FORMACONSUMER PRODUCTS EXCLUDING SPECIALTY MILLS(Dollars in millions)TWELVE MONTHS ENDEDDECEMBER 31, 2014TWELVE MONTHS ENDEDNOVEMBER 30, 2014 PRO FORMANet sales$1,183.4$217.7$965.7Adjusted operating income1$54.8$8.8$46.0Depreciation and amortization expense$61.5 $9.6 $51.9 Adjusted EBITDA1$116.3 $18.4 $97.9 1 Non-GAAP measure – See definition and reconciliation to most comparable GAAP measure24

Q3’15 OUTLOOK1 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 particularly input costs for commodity products, and actual results may differ materially from the information set forth above. See “Forward-Looking Statements” on page 1. 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 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. 3 Adjusted EBITDA excludes the impact of the items listed that we do not believe are indicative of our core operating performance. (Dollars in thousands)FROMTOEarnings before interest, income taxes, and depreciation & amortization (EBITDA)2GAAP net earnings$21,000$25,000Interest expense, net$8,000$8,000Income tax provision$11,000$14,000Depreciation and amortization expense $21,000$22,000EBITDA2$61,000$69,000Directors' equity-based compensation expense$700$700Costs associated with Long Island facility closure$300$300 Adjusted EBITDA3$62,000$70,000THREE MONTHS ENDINGSEPTEMBER 30, 2015RANGE OF ESTIMATEOUTLOOK 25

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