Good day ladies and gentlemen, and welcome to Clearwater Paper's Fourth Quarter and Full Year 2013 Earnings Conference Call and web cast. At this time, all participants are in listen only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. (Operator Instructions). As a reminder, this conference call is being recorded. Today's speakers are, Ms. Linda Massman, President and Chief Executive Officer; Mr. John Hertz, Senior Vice President and Chief Financial Officer. And at this time, I would like to hand the conference over to Mr. John Hertz. Sir, you may begin.

Thank you, Saeed. Good afternoon, and welcome to Clearwater Paper's fourth quarter 2013 conference call. Our press release this afternoon includes details regarding our fourth quarter results, and you'll find a presentation of supplemental information posted on the Investor Relations area of our website at clearwaterpaper.com. I'd like to remind you that this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. 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, those expressed or implied by risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2012, and our quarterly filings on Form 10-Q. Any forward-looking statements are made only as of this date and we undertake no obligation to update any forward-looking statement. With that, I will now report on our fourth quarter and full year 2013 results. 2013 certainly had its challenges, but much was accomplished, that we believe, positions the company well for 2014 and beyond. From a capital structure and capital allocation perspective, we significantly improved our weighted average cost to capital by refinancing 10.625% Senior Notes for 4.5% senior notes. We returned $100 million to shareholders via share buyback at an average price of $48.31 per share; and today, we are announcing that the Board has approved a new $100 million share buyback authorization. We expect to return at least 50% of our 2014 discretionary free cash flow via share repurchases under that authorization. Also, as of the year end 2013, we have seen the underfunded status of our company-sponsored pension…

Thanks John. Hello everyone and thanks for joining us today. Before I discuss our outlook, there were some key operational accomplishments in 2013, that we believe position us well for 2014 and beyond, that includes successfully ramping production at our new 70,000 ton TAD tissue machine in Shelby, North Carolina, and upgrading our Las Vegas TAD tissue machine, and make TAD bath tissue for the first time. Launching our new TAD bathroom tissue product line, and shipping it to over 30 customers as of the end of 2013. Consumer acceptance of our TAD products is trending positively, as seen by increasing retail sales rate, and has resulted in an expansion of our tissue customer base. We have realized $17 million in cost reduction in 2013, and we have identified, and in some cases, implemented initiatives worth an additional $20 million to $32 million that we expect to realize in 2014 and beyond, which includes shutting down the Thomaston facility and redeploying the converting lines to more strategic locations; ramping up the Clearwater fiber chipping facility and extending the time between major maintenance shutdowns at our Lewiston, Idaho Pulp and Paperboard facility. Our Pulp and Paperboard operations delivered its strongest quarterly EBITDA margin in company history; and we accomplished all of this with a safety performance that is the best in the company's history. Specifically, we bettered 2012's record safety levels by nearly 25%, with an incident rate significantly below comparable industry performance. It is important to note that our success is not possible without the hard work and dedication of our employees, that is why, we started 2013 with a launch of a company-wide strategic plan, called Drive, to energize employees to improve safety, customer relationships, sustainability, efficiency and profitability. (Inaudible) outcomes have been positive, as employees have embraced the…

(Operator Instructions). And your first question comes from Steve Chercover from Davidson. Your line is open. Please go ahead.

Good afternoon, thanks. John ran through a bunch of numbers in terms of the impact on Q1, and I missed few of them. So prior to SG&A, which I think was $13 million and interest expense $11 million, can you run through the previous numbers please, John?

Are you talking about the adjustments that we are making, or the --?

I think with the amortization and a few other, just kind of guidance related things prior to the tax rate interest expense and SG&A. So if you go back to your script, the first couple of numbers that you indicated for Q1?

Give me a second here. As we said, we expect SG&A to be $30 million to $32 million. We expected corporate spending to be $11 million to $13 million. Did that catch you up now or?

Yeah. Those were I guess the ones I missed.

Okay.

All right. Thanks. I will hop back in the queue.

Thank you. (Operator Instructions). Our next question comes from Paul Quinn from RBC. Your line is open Please go ahead.

Yeah. Thanks very much and congratulations on the good results. Your paperboard division has been running at very high levels of profitability and yet, you have got another price hike in (inaudible). Is this a new level of sustainability for this business, or do you sleep well at night worrying about this ivory board coming in North America?

Paul, I think the recent price increase that we announced is more indicative of the strong demand we are seeing in the marketplace right now, and the strong backlog. SBS board has remained robust, despite the new capacity in China. We haven't seen much of an impact of that board here in the U.S., but like we said, we are just going to keep our eye on it, and watch the trends, as we progress in 2014.

Can you give us a little bit more detail on how bigger the backlog is going to be normally at, and do you see that, I guess, a transition away from film to paper cup as being one of these trends that are favorable on demand?

Yeah, I'd say our backlogs are running anywhere from four to five weeks right now, and I think some of that transition to cup is probably having an impact in the market. Yes.

Okay. And just switching over to the tissue side. Just wondering what -- in terms of orders or I guess, winning additional private label business, is that a -- are those contracts coming up on a regular basis, is there one specific quarter that has more of those, that would be reset than others, if you could give any flavor for just how those contract negotiations are done?

Yeah Paul, I'd say on the retail side, those contracts are not necessarily time bound with regard to specific data, price has to be negotiated in terms and conditions. It tends to be a little bit more free form than that. So there is not any particular quarter, where you are going to see, bunch of contracts renewing all at once. It takes time to work through negotiations, and that's also hard to predict, depending on the extent of what they want to do from a category perspective. So I think it's just something you ought to listen to our calls, and we will probably give some insight into where we are on those processes.

Okay. And then last question I had on capital allocation. I think a number of your followers, investors, are looking for some kind of dividend. Could you may be just walk through the decision on reaffirming $100 million of share buyback, versus initiating a dividend?

Yeah Paul, this is John and welcome. So yeah, the discussion we obviously had with the Board, and with the way we and the Board looked at where the business is, and not completely through the full ramp of the TAD product line, that for this year, is at a more prudent way to return cash to shareholders, is the stock buyback, but that doesn't preclude, we might end up, when we think about 2015, where we still have that commitment to return 50% of discretionary free cash flow we may -- we could end up using as dividend or a sum of both in 2015.

Great. Thanks very much. That's all I had. Best luck.

Thank you.

Thank you. And our next question comes from James Armstrong from Vertical Research. Your line is open. Please go ahead.

Good afternoon. The first question is, looking at the retail tissue, the sub-segment. Could you update us on how TAD pricing versus conventional is doing, and is your benefit in that segment more of a mix shift, or are you actually seeing pricing in that segment?

So with regard to TAD, it is definitely at a higher price per ton, than conventional. We have not actually stated specifically how much higher, but we are seeing that expectation come to fruition, as replacing TAD out in the marketplace, with regard to the bath tissue. I think what you are seeing really sequentially from Q3 to Q4 on the retail pricing per ton was really of course, the benefit of increasing mix to new TAD products, offset by some of the competitive activity I have made mention of, as well as the mix in conventional tissue products.

Okay. That helps. Switching gears to the bleachboard segment, or the paperboard, that did amazingly well. However, there is a price increase announced in the market. Have you announced a similar price increase of $50 a ton? And if you were to get this price increased, how would that plow through your quarters?

So we have announced a $50 price increase across all of our paperboard grades, effective early March, and I don't think we have given any insight into how we (inaudible), but I could say -- we will obviously see the impacting in Q1, and definitely not a full impact, or potentially not a full impact even as early as Q2. But by the back half of the year, we should get close to a pretty (inaudible).

Thank you. And then lastly, the tax rate year-over-year, I know there were a lot of moving parts, especially in the third and fourth quarter. But the tax rate seems a lot higher. Is there anything special going on there, that is increasing the rate -- the 38%?

You mean, as we look into 2014?

As we look into 2014, yes.

I think we have always kind of been around 36% to 38%, I can't preclude anything necessarily specific that I would call out.

Okay. That's fair. Thank you.

Thank you. I am showing no further questions at this time. I'd like to hand the conference over to Ms. Linda Massman for any closing remarks.

Great. Thank you. In summary, we believe, our strong fourth quarter performance reflects the strength of the company's team to succeed in 2013, despite the high level of competition in the marketplace, and the team here at Clearwater Paper is looking forward to continued success in 2014. I really appreciate you all joining us for the quarter. Thanks.

Ladies and gentlemen, thank you for participating in today's conference. This concludes our program, you may all disconnect and have a wonderful day.