Glatfelter (US:GLT)2024-02-22 14:29Financial Performance - Generated net sales of $320 million in Q4 2023 and $1.4 billion for the full year, with a loss from continuing operations of $8.6 million in Q4 and $78.1 million for the year[5] - Achieved Q4 Adjusted EBITDA of $25 million and full-year EBITDA of $93 million, consistent with full year guidance[5] - Total net sales for Q4 2023 were $320.4 million, down from $373.9 million in Q4 2022, representing a decrease of approximately 14.3%[30] - Operating income for Q4 2023 was $4.4 million, a significant improvement from an operating loss of $22.9 million in the same quarter of 2022[30] - The company reported a pre-tax loss from continuing operations of $15.0 million in Q4 2023, compared to a pre-tax loss of $35.8 million in Q4 2022, reflecting a reduction of 58%[24] - The net loss for Q4 2023 was $8.7 million, an improvement from a net loss of $34.3 million in Q4 2022[42] - The basic loss per share for Q4 2023 was $0.19, compared to a loss of $0.76 per share in Q4 2022[30] Segment Performance - Spunlace segment delivered $5.7 million Adjusted EBITDA in Q4 and $11.2 million for the full year, with a $9 million improvement in Adjusted EBITDA over twelve months[4] - Composite Fibers segment reported EBITDA of $11 million in Q4, up 19.1% year-over-year, driven by favorable input prices[19] - Airlaid Materials segment experienced a 17.2% decline in net sales year-over-year, primarily due to lower selling prices and a 4.8% decrease in tons shipped[16] - Spunlace EBITDA increased by $3.9 million year-over-year, despite lower selling prices and energy surcharges negatively impacting earnings by $7.1 million, which was offset by a $9.0 million reduction in raw material and energy costs[21] Cash Flow and Debt - Cash and cash equivalents decreased to $50.3 million as of December 31, 2023, from $110.7 million at the end of 2022, indicating a decline of 54.5%[25] - Total debt increased to $860.3 million as of December 31, 2023, compared to $845.1 million at the end of 2022, marking a rise of 1.8%[25] - Adjusted free cash flow for the year ended December 31, 2023, was a use of $40.3 million, an improvement from a use of $70.0 million in 2022[26] - Cash used by operations for the year ended December 31, 2023, was $(25.6) million, a reduction from $(40.8) million in 2022[41] - Total net debt as of December 31, 2023, was $810.1 million, up from $734.4 million at the end of 2022[41] Future Outlook - The company expects 2024 EBITDA to be between $110 million and $120 million, amid limited market visibility and macroeconomic volatility[5] - Plans for a merger with Berry Global's HHNF business are anticipated in the second half of 2024, aiming to create a leading specialty materials company[2] - Overall, the company is cautiously optimistic about its full-year guidance despite the challenging business environment[6] - The company anticipates continued operational improvements and strategic growth initiatives in the upcoming periods, although specific net income guidance is not provided due to unpredictability[39] Strategic Initiatives - The company incurred $12.9 million in turnaround strategy costs in 2023, reflecting ongoing efforts to drive operational and financial improvement[41] - Strategic initiatives costs amounted to $2.1 million in 2023, highlighting the company's focus on evaluating and executing growth strategies[41] - The company incurred a $5 million insurance expense related to tornado damage at the Spunlace facility, which was excluded from adjusted earnings[5] - The company reported $5.0 million in tornado insurance deductible costs related to a facility in Tennessee[40]