you us Thank joining for and good afternoon. today,
to highlights expect then will as our comments bulk fundamentals, our Given in I'm cover my discussing our can and with our our and run. long the results quarter us start then third third industry financial strategy few for well going what a outlook, spend initial my including expectations quarter the time you announcements, strategic from as of recent Sherri XXXX. the for
affected but no paperboard for facility as mill. our million roughly North The had down to million of been negative Augusta Georgia the our range with in $XX of significant well the was We This very without Let's X Carolina our delivering few from facility Shelby, good range impact the Helene, of $X days, million. We equipment. to of above was start the which EBITDA. tissue adjusted Hurricane $XX end damage there would a middle approximately highlights. a as was third million high quarter overall, $XX guidance the have of Augusta,
November business of X. the As Friday, last we on closed tissue you saw our in our on sale press release
As a Sofidel for reminder, this billion. business to $X.XX we sold
and We We expenses, down expect we cash outstanding a the in million taxes notes used retained other customer $XXX $XXX of facilities. sale after outstanding of rate pay X.XX%. XXXX balance our approximately to an and with credit to net principal million and all our from the proceeds
our $XXX share to buy shares program. value. Finally, discount We what at repurchase we Board they a our believe a be approved million trade to intend to back when sufficient inherent
Now to overview of turn let's our an strategy.
business, to America. supplier and servicing we're the paperboard With sharpen into able packaging paperboard on transforming a business. tissue focus We're focused now on our sale North in converters the premier our growing of Clearwater independent improving
We our expanding by to well and will this product to ways become as finding relevant cost our do more range. as improvements customers operational driving by
from view substrates. market, that fit in. compete get To ton the million put address perspective shareholders, paperboard approximately many of on which XX and our primarily questions industry to up We paperboard and in is North I'll structure we share the our American into strategy of made X how we an
and America. There's in quality approximately performance. the substrates and million It and of used bleached paperboard sulfate available consumer X of supply the is or SBS. print is The first superior This in solid quality tons the with applications. North largest primarily SBS paperboard, highest packaging is foodservice
its primarily used supply. there's known kraft, X.X for about strength The America, is and in This second beverage applications, carrier beer and CUK. North is unbleached tons substrate is substrate coated In soda CUK million think or packaging. of
used applications. recycled is product fiber CRB, cereal consumer and million or made approximately with generic example is end in coated X.X A America. is substrate of lower-cost that in recycled board, supply primarily box. tons is packaging the substrate North a is This third The only good of
fluctuations. Growth a tracked away tailwind consumers economic been historically to plastics relatively we close that has trends GDP, from and to Paperboard and demand has towards showing look customers believe and are packaging. sensitivity historically to as fiber-based stable, move limited sustainability only renewable
Supply large historically in changes increments. also but come capacity been has stable,
a more million. of supply tons have can than new XXX,XXX to north of SBS nearly new and capacity cost single paper machine CRB. A example, CUK to For XX% add could $XXX XX% and machine industry new or
industry America, and Imports role the and globe. Imports and played million a fluctuate demand supply imported pricing annually. balances million depending have tons North exported X long on exports tons shipping this in costs with X and market across approximately in
a have security an imports the supply. and preference paperboard the domestic While on quality impact American shown of for have converters North market,
suppliers. now to two are Let's structure. industry turn paperboard There kinds of
is The packaging. that paperboard converts and supplier integrated into manufactures first paperboard an that
manufactures The second is that an converters. converting. has latter, supplier an but on supplier servicing paperboard focused the that Clearwater independent is downstream independent no is independent
substrates estimate Integration rates integrated, integrated is is with approximately rate integration our but America is North while SBS on XX% vary paperboard by in XX% these the least substrate, we that an estimates. based of of nonintegrated. of XX%
suppliers play and continue integration, vital in have converters stated to role strategy that to a increase will long-term integrated their of While independent believe levels a market. we the
a foodservice offer within of this unwilling and Clearwater level the has integrated business of service critical higher and agility, integrated flexibility than are They're strong large small- XXX% at secondary their large medium-sized players. and to companies supplier effective suppliers. customers converters that CPG Independent to are to industry structure. a servicing for more a commit often position
covering geographic Georgia our These the footprint U.S., We western Arkansas Idaho of tons our around X.X of X.X pulp. of mill Lewiston, and a the central mills part our of capacity approximately excellent million tons million covering mill the with SBS East. of Bend, produce covering Arkansas can the part have Cypress Augusta, an mill have and
of to that some also We sheeting have and facilities services business Industries customers. as our part X distribution provide additional of smaller our Manchester
strategic converters We converters and channel that have independent for a well strive long-term to have for we conflict. and partnerships both service. strong believe that with We're the invested reputation growth industry assets drive no We are dedicated our sides. that to create and quality in
Let's industry changes below With resulting can supply of driven by industry In cyclical supply. cycle, view on in with our to demand additions high-cost falling largely demand the and being an margins. balance. growth, being lead continue XX% by discussing cycle and rates inherently a stable utilization growing, down part in the relatively our cyclicality of demand capacity by industry. is operate point in uncompetitive outpace driven the balance this This assets We and not reinvestable. of
the of are healthy the of and to allow XX% are At state this steady which the supply of industry, Margins is reinvestment at cycle with the for part business. utilization the midpoint balanced demand rates of typically and in cycle, our XX%.
to supply additional an utilization more XX%, In being up better can leading exceeding cycle, with demand imports. This and added margins. capacity rates exceeds to lead
in SBS down for currently is two cycle reasons. a
First, COVID spending. drove in unprecedented demand slowdown consumer growth destocking a followed by in and inventory SBS,
for there capacity in announced which to this addition, SBS is likely new and In continue demand until the better cycle balance XXXX, down is industry. a supply there's
this growth and experience we in North fundamentals downturn, long-term cyclical for we that customer remain consumer-driven we well our industry in confident America. positioned sustainability preferences of we're believe given trends. as Even And paperboard packaging
steps back to focus and for circle on to next like growth. potential strategy I'd our
year our paperboard sale products independent SBS As of supplier the delever the tissue our sale well current offering, network I to the North our been product our proceeds taken that our positioned have With the our to mentioned weather and organic a broaden we're existing significantly The believe that of balance through acquisitions. Augusta to to tissue American sheet. we're in continue acquisition investments to or with into premier transforming execute strong down packaging opportunistic used balance earlier, invest sheet, steps facility business. and whether from we SBS We've assets two converters. Clearwater in the cycle, strategy of this big
partnering requires to consumer for investment. innovative significant looking Given are we're new with In growth address trends. looking and that that develop deliver potential to X we our market products packaging, customers for. and see preferences innovation consumers particular, solutions converter We're fiber-based
strength. weight First, print without interested lighter and customers options are quality in paperboard sacrificing
inclusion foodservice. innovation alternative as recycled This barriers and requires Second, customers for biodegradable. and in solutions, the content. coatings particularly paperboard, And customers such compostable make to post-consumer in of are looking them interested third, are fibers in
builds. at Practically speaking, not we're greenfield looking
get examples the of internal that specific me more exploring. some a we're and bit provide projects Let
We're with our offerings just ReMagine paper of We're capabilities the business. diversify on barriers can investments amount product the competes are effectively This adding increase competes CRB machines. with some with we're to as higher-quality up to offering our are viable recycled also that the grow to diversify We're exploring post-consumer solution folding high-quality that in XX% pulp to carrier-grade looking our coatings to and to and of help pulping some deliver invest consume beverage alternative that developing and at we mechanical a continuing deliver carton These cup boxboard offerings. assessing options customers. imported a to us and brands, well and sheet can recycled that which compostable our our to biodegradable unbleached as and of content. NuVo a deliver We're folding CUK. weight lighter
that difficult to In for a We addition infrequent good to network. opportunities are and recognize our internal investments, fit predict. acquiring these opportunistically we will assets consider acquisition that are
Augusta XX% adjusted annual the targeting XX% flow Let and X% the conversion we're XX% from EBITDA an me more synergies, XX% flow million to XX% EBITDA At cycle. and to cycle, ratio. than can down what targeting XX% flow XX% In cash adjusted are XX% adjusted EBITDA through cycle. to free expect cash capture billion wrap $XXX assumes into expect free to rate, this free a utilization ratio. cash volume-driven. approximately includes up $X.X translate EBITDA cash up a margins summarizing of of of around a of a to industry by up In us primarily my assumptions XX% conversion the to XX% revenues the margins comments we're you Across cycle, to flows free ratio. we and These exceed which with a adjusted to cycle, XX% across conversion margins
in to free run, we returning long value create cross-cycle to our through capital the on generate cash business to investments shareholders. the us Based giving opportunity expectations, expect or our significant flows
that, allocation Sherri With forward. our capital priorities outlook is results, discuss third moving to and our quarter going
