Glatfelter (US:GLT)2022-06-10 20:23Company 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]