Glatfelter Corporation (NYSE:GLT) Q4 2020 Results Conference Call February 4, 2021 11:00 AM ET Company Participants Ramesh Shettigar - VP, IR and Corporate Treasurer Dante Parrini - Chairman and CEO Sam Hillard - SVP and CFO Conference Call Participants Operator Thank you for standing by, and welcome to the Glatfelter's Quarterly Earnings Release Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conferen ...

Financial Performance - Q4 2020 - Adjusted EBITDA reached $30 million, surpassing expectations[4] - Adjusted EPS stood at $0.22, exceeding forecasts[4] - Adjusted free cash flow increased by $33 million compared to the previous year, driven by stronger earnings, reduced working capital usage, and lower cash taxes[4] - Net leverage was at 1.8x as of December 31, 2020, indicating a strong balance sheet[4] Segment Highlights - Q4 2020 - Composite Fibers net sales were $137.822 million with an EBITDA margin of 15.6%[6] - Airlaid Materials net sales reached $97.460 million with an EBITDA margin of 15.3%[9] - Composite Fibers' revenue decreased by 1.4% on constant currency, but volume increased by 2%[8] - Airlaid Materials' revenue decreased by 5.2% on constant currency, with volume down by 3%[11] Strategic Initiatives and Outlook - Glatfelter announced the acquisition of Georgia-Pacific's US nonwovens business for $175 million[4] - Post-acquisition, the Airlaid segment is projected to comprise approximately 48% of total sales and 53% of EBITDA[22] - Corporate costs are estimated to be approximately $27 million in 2021[15]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2020 was $29 million, with adjusted earnings per share at $0.16, aligning with expectations [7] - Year-to-date adjusted free cash flow improved by $7 million, with net leverage at 2.4 times at quarter end [10][26] - Adjusted earnings from continuing operations decreased to $7 million or $0.16 per share, down from $0.22 per share in the same period last year [12][13] Business Line Data and Key Metrics Changes - Airlaid Materials achieved adjusted EBITDA of $18.6 million, driven by a stronger euro and favorable product mix, with shipments growing 4% compared to the prior quarter [7] - Composite Fibers shipments increased by 21% sequentially, recovering from a severe contraction in Q2, although profitability was impacted by manufacturing downtime [8][15] - Airlaid segment revenues were down 6.4% year-over-year on a constant currency basis, primarily due to lower selling prices [19] Market Data and Key Metrics Changes - Demand for tabletop products in the Airlaid segment remained soft, with a 38% decline year-over-year, although there was a 98% sequential improvement from Q2 [21] - The Composite Fibers segment saw stable performance in food and beverage categories, with growth in single-serve coffee and tea shipments [45] - The Metalized business faced challenges due to the exit from commoditized parts of the business earlier in the year [47] Company Strategy and Development Direction - The company is focused on leveraging its operating model to drive performance and improve earnings and cash flow [30] - There is a commitment to growing the Airlaid segment through both organic and inorganic means, with a focus on supporting market growth [56] - The company has relocated its corporate headquarters to Charlotte, North Carolina, indicating a strategic shift [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic has created volatility, but the company has successfully navigated challenges, generating an 11% increase in adjusted EBITDA year-to-date compared to 2019 [29] - Future expectations include flat shipments in Q4 compared to Q3, with improved production levels anticipated to benefit operating profit [18] - The company remains cautious about the ongoing pandemic and its potential impact on operations and demand [70] Other Important Information - Corporate costs for 2020 are expected to be $27 million, below previous guidance [23] - The company has maintained a strong liquidity position with available liquidity of $195 million [26] Q&A Session Summary Question: Overview of performance across different business lines - Management highlighted that tabletop products in the Airlaid segment were most adversely impacted by COVID, while home care products saw strong demand [40] Question: Impact of wallcover demand recovery - Management indicated that if current demand continues, they expect to have turned the corner, but uncertainties remain due to COVID [67] Question: Plans for incremental capacity in Airlaid business - Management confirmed a commitment to growing the Airlaid segment and exploring various growth investment opportunities [56] Question: Ongoing costs related to Fox River - Management stated that while a large payment settled litigation, ongoing maintenance and monitoring costs will be spread out over time [60] Question: Use of excess capital going forward - Management emphasized a conservative approach to preserving balance sheet capacity while looking for profitable growth opportunities [80]

G L A T F E L T E R 2020 Third Quarter Earnings Conference Call Dante C. Parrini, Chairman & CEO Samuel L. Hillard, SVP & CFO November 9, 2020 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 "anticipat ...