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 ...

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, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to 96 South George Street, Suite 520 York, Pennsylvania 17401 (Address of principal executive offices) (717) 850-0170 Indicate by check mark whether the registrant (1) ha ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2020, including income, balance sheet, and cash flow statements, showing improved net income and a slight decrease in total assets Condensed Consolidated Statements of Income (Q1 2020 vs Q1 2019) | In thousands, except per share | Three months ended March 31, 2020 | Three months ended March 31, 2019 | | :--- | :--- | :--- | | **Net sales** | $231,560 | $229,133 | | **Gross profit** | $36,875 | $35,617 | | **Operating income** | $12,281 | $11,664 | | **Income from continuing operations** | $7,406 | $4,603 | | **Net income** | $7,406 | $5,286 | | **Diluted earnings per share** | $0.17 | $0.12 | Condensed Consolidated Balance Sheets | In thousands | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $461,394 | $477,332 | | **Total assets** | $1,244,192 | $1,283,794 | | **Total current liabilities** | $211,815 | $230,503 | | **Total liabilities** | $701,282 | $727,835 | | **Total shareholders' equity** | $542,910 | $555,959 | Condensed Consolidated Statements of Cash Flows (Q1 2020 vs Q1 2019) | In thousands | Three months ended March 31, 2020 | Three months ended March 31, 2019 | | :--- | :--- | :--- | | **Net cash used by operating activities** | ($5,603) | ($24,145) | | **Net cash used by investing activities** | ($7,014) | ($7,240) | | **Net cash used by financing activities** | ($6,847) | ($23,611) | | **Net decrease in cash** | ($20,401) | ($55,654) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed information supporting the financial statements, covering restructuring, revenue segmentation, tax impacts, retirement plans, and environmental liabilities - In Q1 2020, the company initiated restructuring actions in the Composite Fibers segment, consolidating its metallizing operation from Germany to the U.K. This resulted in a **$2.5 million** non-cash charge for accelerated depreciation and **$3.5 million** in cash severance costs. An additional **$4.0 to $5.0 million** in charges are expected in Q2 and Q3 2020[34](index=34&type=chunk)[35](index=35&type=chunk) Net Sales by Segment (Q1 2020 vs Q1 2019) | In thousands | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | **Composite Fibers** | $132,711 | $128,717 | | **Airlaid Materials** | $98,849 | $100,416 | | **Total** | **$231,560** | **$229,133** | - The passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 resulted in a **$2.6 million** benefit to the income tax provision for Q1 2020. The act allows for a five-year carryback of certain net operating losses[48](index=48&type=chunk) - The company's qualified pension plan was terminated in 2019. As of March 31, 2020, **$51.1 million** in assets remained in the pension trust, with approximately **$33 million** expected to revert to the company in Q2 2020 after satisfying obligations[62](index=62&type=chunk)[63](index=63&type=chunk) - The reserve for the Fox River environmental matter was **$21.8 million** as of March 31, 2020. The company does not believe that its costs will exceed the accrued amounts by a material amount[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2020 financial results, highlighting improved segment performance, strong liquidity, and minimal COVID-19 impact due to essential business operations - The company's business was determined to be 'essential or life-sustaining' during the COVID-19 pandemic, and financial performance was not meaningfully impacted through Q1 2020. Demand for personal hygiene and wipes products is expected to remain strong[109](index=109&type=chunk)[110](index=110&type=chunk) Q1 2020 vs Q1 2019 Performance Summary | In thousands, except per share | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | **Net sales** | $231,560 | $229,133 | | **Operating income** | $12,281 | $11,664 | | **Income from continuing operations** | $7,406 | $4,603 | | **Earnings per share (continuing ops)** | $0.17 | $0.10 | Reconciliation of Net Income to Adjusted Earnings (Non-GAAP) | In thousands, except per share | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | **Income from continuing operations** | $7,406 | $4,603 | | **Total after-tax adjustments** | $3,404 | $2,680 | | **Adjusted earnings** | **$10,810** | **$7,283** | | **Adjusted EPS** | **$0.24** | **$0.16** | - Composite Fibers' operating income increased **33.1%** to **$15.1 million**, driven by a **14.1%** increase in shipping volumes and a **$4.0 million** benefit from lower wood pulp and energy prices[114](index=114&type=chunk)[132](index=132&type=chunk) - Airlaid Materials' operating income increased **19.8%** to **$12.0 million**, driven by a **5.6%** increase in shipping volume and favorable operations, which offset lower selling prices from contractual pass-throughs[114](index=114&type=chunk)[135](index=135&type=chunk) - The company expects capital expenditures for the full year 2020 to be between **$30 million** and **$35 million**[146](index=146&type=chunk) - As of March 31, 2020, the company had ample liquidity, with **$104.2 million** in cash and **$108.0 million** of available capacity under its revolving credit facility. The leverage ratio was **2.2x**, well within the **4.0x** covenant limit[150](index=150&type=chunk)[153](index=153&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) This section details the company's market risk exposure, primarily from interest rate fluctuations and foreign currency exchange rates, with hedging strategies in place - As of March 31, 2020, **90.3%** of the company's long-term debt was at variable interest rates. However, after giving effect to a **€180 million** notional value interest rate swap, the exposure to variable rates is reduced to approximately **33.4%** of total debt[156](index=156&type=chunk)[157](index=157&type=chunk) - A hypothetical **100 basis point** increase in the interest rate on variable rate debt would increase annual interest expense by **$0.7 million**[156](index=156&type=chunk) - The company has significant foreign currency risk, particularly with the Euro, as its annual Euro-denominated revenue exceeds Euro expenses by an estimated **€140 million**[159](index=159&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2020, with no material changes in internal control over financial reporting - The chief executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2020[161](index=161&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2020 that have materially affected, or are reasonably likely to materially affect, internal controls[162](index=162&type=chunk) PART II – OTHER INFORMATION [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section introduces new risk factors related to the COVID-19 pandemic, detailing potential adverse impacts on operations, supply chain, and customer demand - A new risk factor has been added to address the potential impacts of the COVID-19 pandemic, which could adversely affect business operations, demand, and financial condition[163](index=163&type=chunk)[165](index=165&type=chunk) - Specific risks from the pandemic include forced curtailment of operations due to reduced demand or government mandates, disruption of the global supply chain, and financial instabilities or insolvencies of customers[166](index=166&type=chunk)[167](index=167&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Interactive Data Files (XBRL) for financial reporting - The filing includes CEO and CFO certifications pursuant to Sections 302(a) and 906 of the Sarbanes-Oxley Act of 2002[170](index=170&type=chunk) - Inline XBRL instance documents and related taxonomy files are included as exhibits[170](index=170&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2019 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to 96 South George Street, Suite 520 York, Pennsylvania 17401 (Address of principal executive offices) (717) 850 0170 (Registrant's telephone number, including area code) Com ...