Glatfelter Corporation (NYSE:GLT) Q3 2022 Earnings Conference Call November 3, 2022 11:00 AM ET Company Participants Ramesh Shettigar - SVP, CFO and Corporate Treasurer Thomas Fahnemann - President and CEO Conference Call Participants Mitra Ramgopal - Sidoti and Company Operator Good day, and welcome to the Q3 2022 Glatfelter earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ramesh Shettigar from Glatfelter. Please go ahead, sir. Ramesh ...

Glatfelter Corporation (NYSE:GLT) Q2 2022 Earnings Conference Call August 2, 2022 11:00 AM ET Company Participants Ramesh Shettigar – Senior Vice President, Chief Financial Officer and Corporate Treasurer Dante Parrini – Chairman and Chief Executive Officer Conference Call Participants Operator Good day, and welcome to the Glatfelter’s Quarterly Earnings Release Conference Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Mr. Ramesh, your speaker for today. Please g ...

G L A T F E L T E R 2022 Second Quarter Earnings Conference Call Dante C. Parrini, Chairman & CEO Ramesh Shettigar, SVP, CFO & Treasurer August 2, 2022 NYSE: GLT Forward Looking Statements and Use of Non-GAAP Financial Measures Any statements included in this presentation which pertain to future financial and business matters are "forwardlooking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The Company uses words such as " ...

G L A T F E L T E R Sidoti Summer Small Cap Virtual Conference June 16, 2022 NYSE: GLT Dante C. Parrini, Chairman & CEO Ramesh Shettigar, SVP – CFO & Treasurer 1 Forward Looking Statements and Use of Non-GAAP Financial Measures Any statements included in this presentation which pertain to future financial and business matters are "forwardlooking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The Company uses words such as " ...

Company Strategy & Transformation - Glatfelter is evolving into a leading engineered materials company with multiple growth platforms and a commitment to ESG and an inclusive culture[5,6] - The company is focused on executing integration of recent acquisitions, addressing inflation, actively managing the Russia/Ukraine crisis, driving cash flow, and accelerating innovation[5] - Glatfelter is enhancing protection mechanisms to address raw material & energy inflation through dynamic pricing[39] Financial Performance & Priorities - Glatfelter's near-term financial priorities include maximizing financial flexibility and maintaining access to liquidity, with a \$400 million revolving credit facility largely undrawn[20] - The company amended its debt covenant to allow maximum leverage up to 675x through Q4 2023 for added financial flexibility[20] - Net leverage increased to 48x at March 31, 2022, versus 38x at December 31, 2021, driven by lower earnings and higher working capital usage[31] - TTM Q1 2022 Adjusted Free Cash Flow from continuing operations was approximately \$785 million lower versus the same period last year[27] Segment Performance - Airlaid Materials experienced volume growth in all product categories except tabletop in 2020, with 2021 growth primarily driven by the addition of the Mount Holly acquisition[21] Approximately 70% of revenues have raw material cost pass-through protection[8] - Composite Fibers' profitability was impacted by inflation and the Russia/Ukraine conflict, with an asset and goodwill impairment charge of approximately \$121 million recorded in Q1 2022[22,23] - Spunlace experienced peak revenue in 2020 driven by a global surge in demand for nonwoven materials arising from COVID, with 2021 volume softness due to supply chain inventory correction[26]

Financial Data and Key Metrics Changes - The company reported a first-quarter adjusted earnings loss of $6.2 million or $0.14 per share, a decrease of $0.33 compared to the same period last year [14][15] - Adjusted free cash flow was lower by approximately $66 million versus the same quarter last year, primarily due to working capital usage of $42 million and lower cash earnings of about $9 million [37] - The bank covenant leverage ratio increased to 4.8x as of March 31, compared to 3.8x at the end of 2021, driven by lower earnings and higher working capital usage [39] Business Line Data and Key Metrics Changes - Composite Fibers segment revenues were nominally up on a constant currency basis, driven by higher selling prices of $17.6 million, but shipments were down 19% or nearly 5,900 tons, significantly impacted by the Russia/Ukraine crisis [18][19] - Airlaid Materials revenues increased by 83% on a constant currency basis, supported by the addition of Mount Holly, with legacy volume up 22% driven by strong demand in tabletop, hygiene, and home care products [27] - Spunlace segment revenue was approximately $96 million, with shipments 10% higher than expectations, driven by stronger demand in the consumer wipes category [30][31] Market Data and Key Metrics Changes - The escalation of energy prices in Europe negatively impacted results by $29 million compared to the prior year period, with North Atlantic freight rates more than doubling since Q4 [21][22] - The company expects selling prices to fully offset raw material and energy cost inflation in the second quarter, with volumes expected to be between 5% to 10% lower sequentially, primarily in wallcover [26] Company Strategy and Development Direction - The company is focused on mitigating inflation through aggressive cost control, strategic sourcing, and moving more customers to a cost pass-through model, especially for Composite Fibers [41] - The company aims to return the Spunlace segment to profitability in Q2 and is progressing with the integration of this new segment [41] - The company is committed to building a leading sustainable engineered materials company, with 90% of products being essential consumer staples [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging start to the year due to the Russia/Ukraine conflict and its impact on energy prices and logistics [6][7] - The company plans for macroeconomic and geopolitical challenges to persist in the near to midterm, focusing on critical business imperatives [41] - Management expressed confidence in achieving or exceeding the 50% target for converting customers to a cost pass-through model [75] Other Important Information - The company recorded non-cash asset goodwill impairment and working capital charges of $121 million in the first quarter, including $61 million of Dresden asset impairment [25] - Corporate costs were $1 million favorable compared to the same period last year, mainly due to lower incentive accruals and cost control initiatives [35] Q&A Session Summary Question: Efforts to mitigate the drop-off in Russian and Ukrainian business - Management discussed the challenges related to sanctions and military conflict, noting that capacity utilization at Dresden was just below 50% and plans to recalibrate staffing levels and cost structures [50][52] Question: Cumulative Russian-Ukrainian exposure over Gernsbach - Management indicated that the first quarter impact from Russia-Ukraine translated to around $3 million of cost penalties, with similar expectations for Q2 [54][55] Question: Update on bank covenant comments - Management confirmed full compliance with bank covenants in Q1 and ongoing discussions with banks to amend the debt covenant framework [62][63] Question: Demand trends in Spunlace - Management highlighted a 10% higher volume in Q1 than guided, with significant improvements expected in Q2 driven by pricing actions and operational efficiencies [68][70]

Financial Performance - Adjusted EBITDA was $23 million and adjusted EPS was a loss of ($0.14)[4] - Q1 2022 net loss from continuing operations was $1083 million or ($242) per share, compared to Q1 2021 net income of $84 million or $019 per share[6] - Adjusted Free Cash Flow from continuing operations decreased by approximately $665 million compared to the previous year[21] - Net debt increased to $7288 million as of March 31, 2022[26] Segment Highlights - Composite Fibers' profitability was below expectations due to rising raw material, energy, and logistics costs, as well as the Russia/Ukraine crisis, resulting in non-cash asset and goodwill impairment charges of approximately $121 million[4] - Airlaid Materials experienced strong demand, with legacy volume up by 22% and Mount Holly contributing $27 million in revenue compared to the prior-year quarter[4] - Spunlace performance exceeded expectations due to stronger volume, partially offset by inflation[4] - Spunlace revenue was $96 million for the quarter[16] Composite Fibers - Composite Fibers revenue increased by 04% compared to Q1 2021 on a constant currency basis[8] - Composite Fibers volume decreased by 19% compared to Q1 2021[8] - Raw material and energy prices for Composite Fibers were unfavorable by $291 million due to inflationary pressures[8] Airlaid Materials - Airlaid Materials revenue increased by 83% compared to Q1 2021 on a constant currency basis, including a full quarter of Mount Holly acquisition[12] - Airlaid Materials volume increased by 49%, including favorable mix[12] Outlook - The company expects corporate costs to be approximately $25 million in 2022[20] - The company anticipates capital expenditures of approximately $45 to $50 million in 2022, including $7 to $8 million for Spunlace integration[22]

G L A T F E L T E R J.P. Morgan Global High Yield & Leveraged Finance Conference February 28, 2022 NYSE: GLT Sam Hillard, SVP & CFO Ramesh Shettigar, VP – ESG, IR & Treasury 1 Forward Looking Statements and Use of Non-GAAP Financial Measures Any statements included in this presentation which pertain to future financial and business matters are "forwardlooking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The Company uses w ...

Financial Performance - Q4 2021 - Adjusted EBITDA was $26 million[4] and adjusted EPS was $004[4] - Net loss from continuing operations for Q4 2021 was $112 million or ($025) per share, compared to net income from continuing operations of $91 million or $020 per share in Q4 2020[6] - Adjusted Free Cash Flow from continuing operations was approximately $10 million lower versus last year[22] - Q4 2021 Adjusted Free cash flow was $19 million lower than Q4 2020 due to lower earnings and higher capital expenditures[22] Segment Performance - Composite Fibers operating income decreased from $150 million in Q4 2020 to $45 million in Q4 2021[6], with volume down 11%[8] - Airlaid Materials revenue increased 48% versus Q4 2020 on constant currency[11], including a full quarter of Mount Holly acquisition[11] - Spunlace segment reported revenue of $58 million for the quarter under Glatfelter ownership[18], with a volume of 125k MT[18] and an EBITDA margin of 06%[17] Strategic Initiatives and Financial Position - Net Leverage increased to 46x at December 31, 2021, from 17x at December 31, 2020, driven by Spunlace and Mount Holly acquisitions in 2021[4] - Strategic initiatives costs were $310 million in 2021 related to acquisition activities including Mount Holly and Jacob Holm[21] - The company executed $500 million bond financing in October 2021[24]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2021 were $0.04, a decrease of $0.18 compared to the same period last year [8][9] - Adjusted EBITDA for the quarter was $26 million, reflecting the impact of rising energy costs and raw material inflation [5][8] - The leverage ratio increased to 4.6 times as of December 31, 2021, compared to 1.7 times at the end of 2020, primarily due to acquisitions [10][18] Business Line Data and Key Metrics Changes - Airlaid materials segment reported a 48% revenue increase year-over-year, driven by the addition of Mount Holly and strong recovery in the tabletop category [11][12] - Composite Fibers segment saw a 1.3% increase in total revenues on a constant currency basis, but shipments were down 11% due to price-sensitive customers altering buying patterns [9][10] - Spunlace segment generated approximately $58 million in revenue for the quarter, with shipments slightly below expectations due to demand management and production delays [13][14] Market Data and Key Metrics Changes - Energy prices in Europe significantly impacted earnings, with an estimated negative effect of $4 million in Q4 compared to prior guidance [6][10] - The company experienced a $16.6 million negative impact from rising energy, wood pulp, and freight costs compared to the same quarter last year [10] - The food and beverage business within Composite Fibers performed relatively well, remaining flat year-over-year but showing slight sequential growth from Q3 to Q4 [40][41] Company Strategy and Development Direction - The company is focused on integrating recent acquisitions and optimizing profitability amid challenging macroeconomic conditions [20][22] - A priority is to restore Spunlace profitability and implement raw material and energy cost pass-through mechanisms in the Composite Fibers segment [21][22] - The company aims to migrate approximately 50% of its revenue base to a dynamic pricing model in 2022 to reduce volatility [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented inflationary pressures and supply chain disruptions affecting all segments [3][4] - The company is taking aggressive steps to manage through volatility and is optimistic about the strategic rationale behind its acquisitions [4][20] - Future guidance is cautious, with expectations that energy prices will remain high in the near term, impacting overall financial performance [10][21] Other Important Information - Corporate costs for the full year 2021 were approximately $22.4 million, lower than the previous year, but expected to rise to about $27 million in 2022 [16] - The company anticipates capital expenditures for 2022 to be between $45 million and $50 million, including costs related to Spunlace systems integration [17] Q&A Session Summary Question: Will energy be included in the pass-through for Composite Fibers? - Yes, energy will be included in the pass-through arrangements [27] Question: What has been the customer reception regarding the pass-throughs? - Discussions are ongoing, and the speed and magnitude of input cost inflation are facilitating pragmatic conversations with customers [28] Question: Was the year-end inventory management by customers a surprise? - It was somewhat unexpected, as the company is still integrating new colleagues into its sales and operations planning [34] Question: How did geopolitical tensions affect pricing strategies? - Geopolitical uncertainty can impact consumer sentiment and pricing strategies, but the company has adapted its product offerings to meet market needs [36] Question: What was the contribution from Mount Holly in Q4? - The operating profit from Mount Holly was around $2 million for the fourth quarter [38]