This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Wausau Paper Announces Fourth Quarter And Full-Year 2012 Results

Stocks in this article: WPP

Wausau Paper (NYSE:WPP) today reported fourth-quarter and full-year results for 2012.


  • Achieved the safest year in the Company’s history.
  • Full-year 2012 adjusted net earnings were $10.8 million versus $16.1 million a year ago.
  • Fourth-quarter 2012 adjusted net loss was $1.5 million compared to net earnings of $2.5 million for the prior year period.
  • On January 11, 2013, announced intent to strategically reposition the Company to focus on the Tissue business and explore alternatives for Paper segment.
  • Tissue Segment.
    • Grew Tissue case volume 3.3 percent, with 4.0 percent growth in the fourth quarter.
    • Invested $220 million in new tissue machine in Kentucky; started production in December; business poised to deliver significant returns in 2013.
  • Paper Segment.
    • Realized technical specialty full-year shipment growth of 4.5 percent in a deteriorating demand environment.
    • Experienced margin pressure in Paper segment due to operational challenges at Brainerd, Minnesota.
    • Exited the Print & Color business, including sale of premium brands and closure and sale of the Brokaw, Wisconsin, manufacturing site, delivering $52 million in cash versus the targeted $20 million.
  • Managed year-end debt to $196 million reflecting strong cash generation and balance sheet management.


On January 11 the Company publicly announced its intent to focus its efforts and future capital investment on the continued growth of the highly successful Tissue business. The Company intends to:

  • Accelerate growth in Tissue through organic investment and adjacency expansion.
    • Initial $220 million investment in Tissue business positions the segment to significantly accelerate year-over-year growth and increase target EBITDA margin to 23-25 percent within five years.
    • Further establishes Company’s “green leadership” in away-from-home tissue markets through improved product performance and the introduction of new-to-the-market premium recycled products.
  • Divest the technical specialty paper business in a way that delivers maximum value to all shareholders.
  • Reduce and realign selling and administrative costs by approximately $13 million.
  • Achieve near-term return on capital commitment of 15 percent by the end of 2014.

Henry C. Newell, president and CEO, stated, “Over the last 18 months we have focused on generating cash to fund our $220 million Tissue expansion, constructing a new tissue machine and upgrading our converting infrastructure while maintaining a conservative approach to working capital and the overall balance sheet. This investment is about to begin delivering significant value and our expectations are high as we build momentum and deliver new premium recycled tissue products later this year. We are also taking the appropriate actions in our Paper segment to explore alternatives for this business and to evaluate our near-term options for our Brainerd operations.”

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs