Glatfelter Reports Third Quarter 2024 Results

Core Insights - Glatfelter Corporation reported net sales of approximately $332 million for Q3 2024, with a GAAP net loss from continuing operations of $20.0 million, compared to a loss of $19.7 million in Q3 2023 [1][3][19] - The company is set to complete its merger with Berry Global's Health, Hygiene and Specialties segment on November 4, 2024, creating a new entity named Magnera [1][2] Financial Performance - Adjusted EBITDA for Q3 2024 was $24.6 million, a slight decrease from $25.5 million in Q3 2023 [1][3] - The Spunlace segment generated $4.8 million in EBITDA, an increase of $2.5 million compared to Q3 2023, despite hurricane-related downtime [1][2] - Airlaid Materials achieved EBITDA of $18.0 million, down $0.7 million from the previous year, while Composite Fibers reported EBITDA of $10.1 million, a decrease of $1.1 million due to new sanctions [1][2] Segment Performance - Airlaid Materials saw a 5.9% decrease in net sales to $138.3 million, primarily due to lower selling prices and a 2.5% decline in tons shipped [7][8] - Composite Fibers reported net sales of $113.7 million, a 3.6% increase driven by higher shipments in certain categories, although impacted by sanctions affecting wallcover sales [9][10] - Spunlace's net sales increased by 9.0% to $80.4 million, attributed to higher sales of Sontara products [11][12] Operational Highlights - The company faced challenges in the Composite Fibers segment due to sanctions but noted improvements in operational performance [2] - The Spunlace segment's performance was positively impacted by higher production to meet customer demand, despite hurricane-related disruptions [12][13] Balance Sheet and Cash Flow - As of September 30, 2024, cash and cash equivalents totaled $41.6 million, down from $50.3 million at the end of 2023, while total debt increased to $887.6 million [16][23] - Adjusted free cash flow for the nine months ended September 30, 2024, was a use of $15.0 million, an improvement from a use of $50.9 million in the same period of 2023 [17][22]