Glatfelter Corporation (NYSE:GLT) Q4 2022 Earnings Conference Call February 21, 2023 11:00 AM ET Company Participants Ramesh Shettigar - SVP, CFO & Treasurer Thomas Fahnemann - President & CEO Conference Call Participants Roger Spitz - Bank of America Josh Wool - Carlson Capital Shaun Nicholson - Segall Bryant & Hamill Operator Good day everyone, and welcome to the Q4 2022 Glatfelter Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ram ...

Business Overview - Glatfelter is diversified by end-customer, product application, and technologies, creating an attractive stand-alone platform[7] - The company enhances protection mechanisms to address raw material & energy inflation through dynamic pricing[7] - Glatfelter is committed to a conservative financial policy with leverage reduction as a key priority[7] Airlaid Materials - Feminine Hygiene accounts for 40% of Airlaid Materials sales mix[10] - Wipes represent 26% of the Airlaid Materials sales mix[10] - Table Top accounts for 19% of the Airlaid Materials sales mix[10] Composite Fibers - Food & Beverage constitutes 57% of Composite Fibers sales mix[14] - Technical Specialties represent 16% of the Composite Fibers sales mix[14] - Wallcover accounts for 11% of the Composite Fibers sales mix[14] Spunlace - Consumer Wipes account for 33% of Spunlace sales mix[17] - Critical Cleaning represents 31% of the Spunlace sales mix[17] - Health Care accounts for 19% of the Spunlace sales mix[17] Financial Performance & Outlook - Glatfelter expects Q4 2022 EBITDA to be in the range of $23 million to $26 million[27] - The company anticipates depreciation and amortization expense to be approximately $66 million[27] - Glatfelter expects capital expenditures to be approximately $35 million to $40 million, including $4 million to $5 million for Spunlace integration[27]

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 or | (Registrant's telephone number, including area code) | | | | | --- | --- | --- | --- | | Commission file | Exact name of registrant as | IRS Employer | State or other jurisdiction of | | number | specified in its charter | Identification No. | incorporation or organization | | 1-03560 ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to 4350 Congress Street, Suite 600 Charlotte, North Carolina 28209 (Address of principal executive offices) (704) 885-2555 | (Registrant's telephone number, including are ...

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]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited statements show increased sales from acquisitions but a net loss due to a significant asset impairment charge [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2022 saw a 69.1% sales increase from acquisitions, but a $117.3 million impairment charge led to a net loss of $108.3 million Q1 2022 vs Q1 2021 Income Statement Highlights | Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $381,680 | $225,674 | +69.1% | | **Gross Profit** | $31,665 | $39,296 | -19.4% | | **Goodwill & Asset Impairment** | $117,349 | $0 | N/A | | **Operating Income (Loss)** | ($115,889) | $17,319 | N/A | | **Net Income (Loss)** | ($108,327) | $8,394 | N/A | | **Diluted EPS** | ($2.42) | $0.19 | N/A | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.75 billion due to impairment charges, while total liabilities remained stable at $1.33 billion Balance Sheet Summary | Account | March 31, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $648,845 | $636,566 | | **Goodwill** | $177,063 | $236,165 | | **Intangible Assets, net** | $116,722 | $156,304 | | **Total Assets** | $1,749,038 | $1,880,607 | | **Total Liabilities** | $1,332,305 | $1,337,845 | | **Total Shareholders' Equity** | $416,733 | $542,762 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operations significantly increased to $66.2 million, driven by changes in working capital Cash Flow Summary (Three Months Ended March 31) | Activity | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | **Net Cash Used by Operating Activities** | ($66,240) | ($6,046) | | **Net Cash Used by Investing Activities** | ($7,801) | ($4,603) | | **Net Cash Provided by Financing Activities** | $16,281 | $179 | | **Net Decrease in Cash** | ($58,508) | ($12,683) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the impact of acquisitions, a $117.3 million asset impairment charge, and segment performance - Completed the acquisition of Georgia-Pacific's Mount Holly business on May 13, 2021, and Jacob Holm on October 29, 2021[28](index=28&type=chunk)[29](index=29&type=chunk). For Q1 2022, Mount Holly and Jacob Holm contributed **$27.3 million and $96.4 million in net sales**, respectively[31](index=31&type=chunk) - Recorded a **$117.3 million non-cash asset impairment charge** in Q1 2022 related to the Composite Fibers' Dresden facility and segment goodwill, triggered by the Russia/Ukraine military conflict[35](index=35&type=chunk). The charge included **$56.1 million for goodwill**[35](index=35&type=chunk) - Total long-term debt was **$795.1 million** as of March 31, 2022[65](index=65&type=chunk). On May 9, 2022, the company amended its Credit Agreement to increase the maximum permitted leverage ratio to **6.75 to 1.0** through the end of 2023[93](index=93&type=chunk) Net Sales by Segment (Q1, in thousands) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Composite Fibers | $135,829 | $141,249 | | Airlaid Material | $149,464 | $84,425 | | Spunlace | $96,387 | $0 | | **Total** | **$381,680** | **$225,674** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q1 results to the Russia/Ukraine conflict, acquisitions, and significant inflationary pressures - The company reported a **GAAP loss from continuing operations of $108.3 million** ($2.42 per share), primarily due to a **$117.3 million asset impairment charge** related to the Russia/Ukraine conflict[101](index=101&type=chunk)[102](index=102&type=chunk) - On a non-GAAP adjusted basis, the company had a **loss from continuing operations of $6.2 million** ($0.14 per share), compared to income of $8.5 million ($0.19 per share) in Q1 2021[101](index=101&type=chunk)[111](index=111&type=chunk) - Key operational factors in Q1 2022 included: significant inflationary pressures on energy and raw material costs, and an additional **$123.7 million in net sales** from the Mount Holly and Jacob Holm acquisitions[102](index=102&type=chunk) - Cash used by operating activities increased to **$66.2 million** in Q1 2022 from $6.0 million in Q1 2021, mainly due to higher working capital usage[135](index=135&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Acquisitions drove a $156.0 million sales increase, but cost inflation and a $117.3 million impairment charge led to an operating loss Reconciliation of Net Loss to Adjusted Earnings (Q1 2022, in thousands) | Description | Amount | | :--- | :--- | | **Net Loss** | **($108,327)** | | Goodwill and other asset impairment charges | $117,349 | | Russia/Ukraine conflict charges | $3,948 | | Strategic initiatives | $1,835 | | Cost optimization actions | $941 | | Timberland sales and related costs | ($2,962) | | Income taxes & other | ($19,068) | | **Adjusted Earnings (Loss)** | **($6,159)** | [Segment Financial Performance](index=30&type=section&id=Segment%20Financial%20Performance) Composite Fibers' income fell due to the Russia/Ukraine conflict, while Airlaid Materials grew through acquisition Operating Income (Loss) by Segment (Q1, in thousands) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | Composite Fibers | ($335) | $16,065 | | Airlaid Material | $12,221 | $7,197 | | Spunlace | ($1,572) | $0 | | Other and unallocated | ($126,203) | ($5,943) | | **Total** | **($115,889)** | **$17,319** | - Composite Fibers' performance was negatively impacted by a **34% decline in wallcover shipments**, primarily due to the conflict in Russia and Ukraine[119](index=119&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained liquidity with $80.5 million in cash and amended its credit agreement to increase its leverage covenant - The company had **$80.5 million in cash and cash equivalents** at quarter-end[134](index=134&type=chunk) - The leverage ratio per the Credit Agreement was **4.8x** as of March 31, 2022[140](index=140&type=chunk). A subsequent amendment on May 9, 2022, increased the maximum allowable ratio to **6.75 to 1.0** until the end of 2023[140](index=140&type=chunk) - Projected capital expenditures for the full year 2022 are expected to be between **$45 million and $50 million**[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company is primarily exposed to market risks from interest rate fluctuations and foreign currency exchange, particularly the Euro - As of March 31, 2022, the company had **$795.1 million of long-term debt**, with **6.4% at variable interest rates**[147](index=147&type=chunk) - A hypothetical **100 basis point increase** in interest rates on variable-rate debt would increase annual interest expense by **$0.4 million**[147](index=147&type=chunk) - The company has significant foreign currency risk, particularly with the Euro, as annual Euro-denominated net sales exceed Euro expenses by approximately **€150 million**[150](index=150&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The Chief Executive Officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2022[151](index=151&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[152](index=152&type=chunk) PART II – OTHER INFORMATION [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The Russia/Ukraine conflict poses significant risks, including reduced demand, supply chain disruptions, and cybersecurity threats - In 2021, approximately **$95 million (7.3%)** of the company's net sales were from customers in Russia and Ukraine[154](index=154&type=chunk) - The conflict led to a significant reduction in expected wallcover revenues, resulting in a **$117.3 million non-cash asset impairment charge** in Q1 2022[154](index=154&type=chunk) - European manufacturing sites face risks of shortages and increased costs for **natural gas**, a substantial portion of which originates from Russia[155](index=155&type=chunk) - The conflict has increased the risk of **cybersecurity incidents and attacks**, which could adversely affect operations and the supply chain[156](index=156&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) Key exhibits filed include CEO/CFO certifications under the Sarbanes-Oxley Act and Interactive Data Files - The filing includes **CEO and CFO certifications** pursuant to Sections 302(a) and 906 of the Sarbanes-Oxley Act of 2002[160](index=160&type=chunk)[161](index=161&type=chunk) - **Interactive Data Files**, including Inline XBRL documents, are furnished as part of the filing[161](index=161&type=chunk)