Glatfelter Corporation (NYSE: GLT), a leading global supplier of
engineered materials, today reported financial results for the
first quarter of 2024 and provided an update on progress of its
proposed merger with the majority of Berry’s Global Health, Hygiene
and Specialties segment to include its Global Nonwovens and Films
(“HHNF”) business.
“We continued to execute against our strategy to optimize our
portfolio and position the business for long-term profitable growth
as we prepare to complete the proposed merger with Berry’s HHNF
business to create a new, global specialty materials leader,” said
Thomas Fahnemann, President and CEO of Glatfelter. "The team
remains focused on delivering meaningful financial performance
while ensuring our business segments are well positioned to become
part of a larger enterprise that is expected to deliver
substantial shareholder value."
Mr. Fahnemann added, “Our progress was most evident in Spunlace
which delivered $6.1 million in EBITDA, recording gains in margin
and volume following a strong fourth quarter. In Composite Fibers,
we continued to improve EBITDA, reaching the highest level for this
segment since the third quarter of 2021, along with EBITDA margins
averaging 10% in the last 3 quarters. As we previously shared in
2023, we took pricing actions in our Airlaid Materials segment as
we strove to protect margins and improve the price-cost dynamic.
However, these actions combined with ongoing European market
challenges, continued to put downward pressure on volumes, which
led to weaker than anticipated financial performance for the
segment."
Mr. Fahnemann concluded, “While overall results for the quarter
were mixed, I am encouraged by how far we have come in the past
twelve months to enhance the performance of our business, further
offsetting many of the prevailing macroeconomic headwinds. The team
continues to make excellent progress with preparing for the closing
of the proposed merger with Berry's HHNF business, with the goal of
value creation and long-term growth for our shareholders. The work
that is underway will provide a strong foundation from which to
build scale, capitalize on an expanded product portfolio and
complementary technology, and ultimately lower Glatfelter’s current
leverage. I look forward to providing additional updates on our
progress as integration preparations continue and additional
regulatory milestones are met."
Update on Merger with Berry's HHNF Business
As previously announced on February 7, 2024, we entered into
certain definitive agreements with Berry Global Group, Inc.
(“Berry”) for Berry to spin-off and merge the HHNF business with
Glatfelter to create a global leader in specialty materials. Upon
the completion of the transaction, Glatfelter shareholders are
expected to own approximately ten percent of the newly combined
company. In April, the Company achieved a regulatory milestone with
the expiration of the required waiting period under the
Hart-Scott-Rodino ("HSR") Antitrust Improvements Act. The
transaction is subject to further certain customary closing
conditions and regulatory approvals that are currently underway
including, but not limited to, approval by Glatfelter shareholders.
The merger transaction is expected to close in the second half of
2024.
| |
|
|
| |
|
Three months ended March 31, |
| Dollars
in thousands |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
Net sales |
|
$ |
327,256 |
|
|
$ |
378,208 |
|
| Net loss from continuing
operations |
|
|
(26,150 |
) |
|
|
(13,182 |
) |
| Adjusted loss from continuing
operations(1) |
|
|
(14,939 |
) |
|
|
(5,866 |
) |
| EPS from continuing
operations |
|
|
(0.58 |
) |
|
|
(0.29 |
) |
| Adjusted EPS(1) |
|
|
(0.33 |
) |
|
|
(0.13 |
) |
|
Adjusted EBITDA(1) |
|
|
23,820 |
|
|
|
24,785 |
|
|
(1) |
|
Adjusted EBITDA, adjusted loss from continuing operations and
adjusted EPS are non-GAAP financial measures. See “Reconciliation
of GAAP Financial information to Non-GAAP Financial information”
later in this earnings release for further information. |
|
|
|
|
First Quarter Results
The following table sets forth a reconciliation of results on a
GAAP basis to an adjusted earnings basis, a non-GAAP measure:
| |
|
Three months ended March 31, |
| |
|
2024 |
|
2023 |
| In
thousands, except per share |
|
Amount |
|
EPS |
|
Amount |
|
EPS |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(26,347 |
) |
|
$ |
(0.58 |
) |
|
$ |
(13,584 |
) |
|
$ |
(0.30 |
) |
| Exclude: Loss from
discontinued operations, net of tax |
|
|
197 |
|
|
|
— |
|
|
|
402 |
|
|
|
0.01 |
|
|
Loss from continuing operations |
|
|
(26,150 |
) |
|
|
(0.58 |
) |
|
|
(13,182 |
) |
|
|
(0.29 |
) |
| Adjustments(pre-tax): |
|
|
|
|
|
|
|
|
|
Strategic initiatives(1) |
|
|
10,910 |
|
|
|
|
|
730 |
|
|
|
|
Turnaround strategy costs(2) |
|
|
57 |
|
|
|
|
|
4,483 |
|
|
|
|
Debt refinancing(3) |
|
|
— |
|
|
|
|
|
1,883 |
|
|
|
|
CEO transition costs(4) |
|
|
— |
|
|
|
|
|
633 |
|
|
|
|
Timberland sales and related costs |
|
|
— |
|
|
|
|
|
(617 |
) |
|
|
|
Total adjustments(pre-tax) |
|
|
10,967 |
|
|
|
|
|
7,112 |
|
|
|
|
Income taxes(5) |
|
|
(11 |
) |
|
|
|
|
(3 |
) |
|
|
|
Other tax adjustments(6) |
|
|
255 |
|
|
|
|
|
207 |
|
|
|
|
Total after-tax adjustments |
|
|
11,211 |
|
|
|
0.25 |
|
|
|
7,316 |
|
|
|
0.16 |
|
|
Adjusted loss from continuing operations |
|
$ |
(14,939 |
) |
|
$ |
(0.33 |
) |
|
$ |
(5,866 |
) |
|
$ |
(0.13 |
) |
|
(1) |
|
For 2024, reflects primarily professional services fees related to
the Berry HHNF merger (including transaction advisory, legal and
other consultant costs) of $10.5 million and personnel retention,
to offset the risk of potential employee departures due to the
pending transaction, and other costs of $0.4 million. For 2023,
reflects consulting and legal fees of $0.5 million, employee
separation costs of $0.1 million, and other costs of $0.1
million. |
|
(2) |
|
For 2024, primarily reflects employee separation costs. For 2023,
reflects employee separation costs of $3.3 million and $1.2 million
in professional fees. |
|
(3) |
|
In 2023, reflects $1.8 million write-off of deferred debt issuance
costs in connection with the Company’s debt refinancing and $0.1
million in early repayment penalties and write-off of unamortized
financing fees on the IKB Deutsche Industriebank AG, Düsseldorf
("IKB") loans. |
|
(4) |
|
In 2023, reflects pension settlement charge related to former CEO
separation. |
|
(5) |
|
Tax effect on adjustments calculated based on the incremental
effective tax rate of the jurisdiction in which each adjustment
originated. For items originating in the U.S., no tax effect is
recognized due to the previously established valuation allowance on
the net deferred tax assets. |
|
(6) |
|
Tax effect of applying certain provisions of the CARES Act of
2020. |
|
|
|
|
A description of each of the adjustments presented above is
included later in this release.
Airlaid Materials
| |
|
Three months ended March 31, |
|
| Dollars
in thousands |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Tons shipped (metric) |
|
|
38,341 |
|
|
|
39,827 |
|
|
|
(1,486 |
) |
|
(3.7 |
)% |
| Net sales |
|
$ |
131,529 |
|
|
$ |
159,441 |
|
|
$ |
(27,912 |
) |
|
(17.5 |
)% |
| Operating income |
|
|
4,958 |
|
|
|
13,914 |
|
|
|
(8,956 |
) |
|
(64.4 |
)% |
| EBITDA |
|
|
12,622 |
|
|
|
21,600 |
|
|
|
(8,978 |
) |
|
(41.6 |
)% |
| EBITDA % |
|
|
9.6 |
% |
|
|
13.5 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Airlaid Materials’ first quarter net sales decreased $27.9
million in the year-over-year comparison mainly driven by lower
selling prices from cost pass-through arrangements and lower energy
surcharges in Europe as both raw materials and energy input costs
declined compared to last year. Shipments were 3.7% lower driven by
declines in the hygiene categories mainly due to pricing actions
taken in 2023 to retain margins. Currency translation was favorable
by $0.7 million.
Airlaid Materials’ first quarter EBITDA of $12.6 million was
$9.0 million lower when compared to the first quarter of 2023.
Selling price decreases for pass-through contracts, lower energy
surcharges, and select spot price reductions were a combined $20.3
million, and were mostly offset by lower raw material and energy
costs of $17.9 million. Lower shipments primarily in the hygiene
categories combined with unfavorable mix from lower color tabletop
shipments negatively impacted results by approximately $1.8
million. Operations were unfavorable by $3.8 million mainly due to
lower production of approximately 2,800 MT to manage inventory
levels, and higher wage inflation. Currency and related hedging
negatively impacted earnings by $1.0 million.
Composite Fibers
| |
|
Three months ended March 31, |
| Dollars
in thousands |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Tons shipped (metric) |
|
|
25,002 |
|
|
|
24,818 |
|
|
|
184 |
|
|
0.7 |
% |
| Net sales |
|
$ |
116,150 |
|
|
$ |
132,591 |
|
|
$ |
(16,441 |
) |
|
(12.4 |
)% |
| Operating income |
|
|
8,259 |
|
|
|
6,127 |
|
|
|
2,132 |
|
|
34.8 |
% |
| EBITDA |
|
|
12,023 |
|
|
|
10,092 |
|
|
|
1,931 |
|
|
19.1 |
% |
| EBITDA % |
|
|
10.4 |
% |
|
|
7.6 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Composite Fibers’ net sales were $16.4 million lower in the
first quarter of 2024, compared to the year-ago quarter due to
lower selling prices of $11.1 million. Even though shipments were
higher 0.7%, it was largely driven by the composite laminates
category that have lower average selling prices compared to other
inclined wire products and thereby lowering the revenue for the
quarter. Currency translation was favorable by $0.9 million.
Composite Fibers had EBITDA for the first quarter of $12.0
million compared with $10.1 million EBITDA in the first quarter of
2023. Price-cost gap continued to trend positive this quarter as
the decrease in input prices paid for raw materials, energy,
freight, and packaging were more favorable than selling price
declines, resulting in earnings improvement of $2.5 million.
Shipments were higher primarily in the composite laminate and
metallized categories and overall improved income by $0.4 million.
Operations were unfavorable by $0.8 million, mainly driven by lower
production. The impact of currency and related hedging negatively
impacted earnings by $0.2 million.
Spunlace
| |
|
Three months ended March 31, |
| Dollars
in thousands |
|
2024 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
Tons shipped(metric) |
|
|
16,091 |
|
|
|
16,420 |
|
|
|
(329 |
) |
|
(2.0 |
)% |
| Net sales |
|
$ |
80,130 |
|
|
$ |
86,723 |
|
|
$ |
(6,593 |
) |
|
(7.6 |
)% |
| Operating income (loss) |
|
|
2,764 |
|
|
|
(2,023 |
) |
|
|
4,787 |
|
|
236.6 |
% |
| EBITDA |
|
|
6,137 |
|
|
|
1,069 |
|
|
|
5,068 |
|
|
474.1 |
% |
| EBITDA % |
|
|
7.7 |
% |
|
|
1.2 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Spunlace's net sales were $6.6 million lower in the first
quarter of 2024 compared to the year-ago quarter, mainly driven by
lower selling prices of $4.2 million due to cost pass-through
arrangements and lower year over year shipments of 2.0%. Currency
translation was slightly favorable by $0.2 million.
Spunlace EBITDA was higher by $5.1 million compared to the same
period last year. Lower selling prices and energy surcharges were
unfavorable by $4.2 million but were more than fully offset by
lower raw material and energy costs of $7.4 million. Lower
shipments and unfavorable product mix lowered income by
approximately $0.8 million. Operations were favorable by $2.4
million million as actions taken to improve operations, reduce
overall spending, and manage headcount provided positive
results. Currency positively impacted earnings by $0.2 million.
Other Financial Information
The amount of operating expense not allocated to a reporting
segment in the Segment Financial Information totaled $17.5 million
in the first quarter of 2024 compared with $11.9 million in the
same period a year ago. Excluding the items identified to present
“adjusted earnings,” unallocated expenses for the first quarter of
2024 decreased $0.7 million compared to the first quarter of 2023
mainly driven by lower professional services costs.
In the first quarter of 2024, our U.S. GAAP pre-tax loss from
continuing operations totaled $21.0 million and we recorded an
income tax provision of $5.2 million, which primarily related to
the tax provision for foreign jurisdictions, reserves for uncertain
tax positions, and valuation allowances for domestic and foreign
jurisdiction losses for which no tax benefit could be recognized.
The comparable amounts in the same quarter of 2023 were a pre-tax
loss of $9.5 million and an income tax provision of $3.7
million.
Balance Sheet and Other Information
Cash and cash equivalents totaled $30.2 million and $50.3
million as of March 31, 2024 and December 31, 2023,
respectively. Total debt was $875.7 million and $860.3 million as
of March 31, 2024 and December 31, 2023, respectively. Net
debt was $845.5 million as of March 31, 2024 compared with
$810.1 million at the end of 2023. Leverage as calculated in
accordance with the financial covenants of our bank credit
agreement was in compliance at 3.7 times at March 31,
2024.
Capital expenditures during the quarters ended March 31,
2024 and 2023 totaled $7.5 million and $9.5 million, respectively.
Cash used by operating activities for the quarters ended
March 31, 2024 and 2023 was $33.5 million and $30.6 million,
respectively. Adjusted free cash flow for the quarter ended
March 31, 2024 was a use of $36.9 million compared with a use
of $28.2 million for the same period in 2023. (Net debt and
Adjusted free cash flow are non-GAAP financial measures. See
"Reconciliations of GAAP Financial Information to Non-GAAP
Financial Information" later in this earnings release for further
information.)
Conference Call
As previously announced, the Company will hold a conference call
today at 11:00 a.m. (Eastern) to discuss its first quarter results.
The Company will make available on its Investor Relations website
this quarter’s earnings release and an accompanying financial
presentation that includes additional financial information to be
discussed on the conference call including the Company’s outlook
pertaining to financial performance. Information related to the
conference call is as follows:
|
What: |
Q1 2024 Glatfelter Earnings Conference Call |
|
When: |
Thursday, May 9, 2024, 11:00
a.m. (ET) |
|
Participant Dial-in Number: |
(323) 794-2423 |
|
|
(800) 289-0438 |
|
Conference ID: |
7358307 |
|
Webcast registry: |
Q1 2024 Glatfelter Earnings
Webcast |
|
OR access via our website: |
Glatfelter Webcasts and
Presentations |
|
|
|
|
Replay will be available, via the webcast link, approximately 2
hours after the conclusion of our earnings call. |
|
|
Interested persons who wish to hear the live webcast should go
to the website prior to the starting time to register and ensure
any necessary audio software is installed.
| |
|
Glatfelter Corporation and
subsidiariesConsolidated Statements of
Operations(unaudited) |
| |
|
| |
Three months ended March 31, |
| In thousands, except per
share |
2024 |
|
2023 |
| |
|
|
|
|
Net sales |
$ |
327,256 |
|
|
$ |
378,208 |
|
| Costs of products sold |
|
292,746 |
|
|
|
341,994 |
|
|
Gross profit |
|
34,510 |
|
|
|
36,214 |
|
| Selling, general and
administrative expenses |
|
36,057 |
|
|
|
30,745 |
|
| Gains on dispositions of
plant, equipment and timberlands, net |
|
(2 |
) |
|
|
(644 |
) |
|
Operating income (loss) |
|
(1,545 |
) |
|
|
6,113 |
|
| Non-operating income
(expense) |
|
|
|
|
Interest expense |
|
(17,685 |
) |
|
|
(12,594 |
) |
|
Interest income |
|
261 |
|
|
|
271 |
|
|
Other, net |
|
(2,027 |
) |
|
|
(3,278 |
) |
|
Total non-operating expense |
|
(19,451 |
) |
|
|
(15,601 |
) |
|
Loss from continuing operations before income taxes |
|
(20,996 |
) |
|
|
(9,488 |
) |
|
Income tax provision |
|
5,154 |
|
|
|
3,694 |
|
|
Loss from continuing operations |
|
(26,150 |
) |
|
|
(13,182 |
) |
| |
|
|
|
| Discontinued operations: |
|
|
|
|
Loss before income taxes |
|
(197 |
) |
|
|
(402 |
) |
|
Income tax provision |
|
— |
|
|
|
— |
|
|
Loss from discontinued operations |
|
(197 |
) |
|
|
(402 |
) |
|
Net loss |
$ |
(26,347 |
) |
|
$ |
(13,584 |
) |
| |
|
|
|
| Basic earnings per
share |
|
|
|
|
Loss from continuing operations |
$ |
(0.58 |
) |
|
$ |
(0.29 |
) |
|
Loss from discontinued operations |
|
— |
|
|
|
(0.01 |
) |
|
Basic loss per share |
$ |
(0.58 |
) |
|
$ |
(0.30 |
) |
| |
|
|
|
| Diluted earnings per
share |
|
|
|
|
Loss from continuing operations |
$ |
(0.58 |
) |
|
$ |
(0.29 |
) |
|
Loss from discontinued operations |
|
— |
|
|
|
(0.01 |
) |
|
Diluted loss per share |
$ |
(0.58 |
) |
|
$ |
(0.30 |
) |
| |
|
|
|
| Weighted average
shares outstanding |
|
|
|
|
Basic |
|
45,184 |
|
|
|
44,957 |
|
|
Diluted |
|
45,184 |
|
|
|
44,957 |
|
|
|
|
|
|
|
|
|
|
| |
|
Segment Financial
Information(unaudited) |
| |
|
| |
Three months ended March 31, |
| In thousands, except per
share |
2024 |
|
2023 |
| |
|
|
|
| Net
Sales |
|
|
|
|
Airlaid Material |
$ |
131,529 |
|
|
$ |
159,441 |
|
| Composite Fibers |
|
116,150 |
|
|
|
132,591 |
|
| Spunlace |
|
80,130 |
|
|
|
86,723 |
|
| Inter-segment sales
elimination |
|
(553 |
) |
|
|
(547 |
) |
|
Total |
$ |
327,256 |
|
|
$ |
378,208 |
|
| |
|
|
|
| Operating income
(loss) |
|
|
|
| Airlaid Material |
$ |
4,958 |
|
|
$ |
13,914 |
|
| Composite Fibers |
|
8,259 |
|
|
|
6,127 |
|
| Spunlace |
|
2,764 |
|
|
|
(2,023 |
) |
| Other and unallocated |
|
(17,526 |
) |
|
|
(11,905 |
) |
|
Total |
$ |
(1,545 |
) |
|
$ |
6,113 |
|
| |
|
|
|
| Depreciation and
amortization |
|
|
|
| Airlaid Material |
$ |
7,664 |
|
|
$ |
7,686 |
|
| Composite Fibers |
|
3,764 |
|
|
|
3,965 |
|
| Spunlace |
|
3,373 |
|
|
|
3,092 |
|
| Other and unallocated |
|
953 |
|
|
|
988 |
|
|
Total |
$ |
15,754 |
|
|
$ |
15,731 |
|
| |
|
|
|
| Capital
expenditures |
|
|
|
| Airlaid Material |
$ |
2,091 |
|
|
$ |
2,082 |
|
| Composite Fibers |
|
3,664 |
|
|
|
3,663 |
|
| Spunlace |
|
1,378 |
|
|
|
2,701 |
|
| Other and unallocated |
|
349 |
|
|
|
1,054 |
|
|
Total |
$ |
7,482 |
|
|
$ |
9,500 |
|
| |
|
|
|
| Tons shipped
(metric) |
|
|
|
| Airlaid Material |
|
38,341 |
|
|
|
39,827 |
|
| Composite Fibers |
|
25,002 |
|
|
|
24,818 |
|
| Spunlace |
|
16,091 |
|
|
|
16,420 |
|
| Inter-segment sales
elimination |
|
(337 |
) |
|
|
— |
|
|
Total |
|
79,097 |
|
|
|
81,065 |
|
|
|
|
|
|
|
|
|
|
| |
|
Selected Financial
Information(unaudited) |
| |
|
|
| |
|
Three months ended March 31, |
| In
thousands |
|
2024 |
|
2023 |
|
|
|
|
|
|
| Cash Flow
Data |
|
|
|
|
| Cash from continuing
operations provided (used) by: |
|
|
|
|
|
Operating activities |
|
$ |
(33,485 |
) |
|
$ |
(30,632 |
) |
|
Investing activities |
|
|
(7,480 |
) |
|
|
(8,787 |
) |
|
Financing activities |
|
|
20,839 |
|
|
|
15,179 |
|
| |
|
|
|
|
| Depreciation, depletion and
amortization |
|
|
15,754 |
|
|
|
15,731 |
|
| Capital expenditures |
|
|
(7,482 |
) |
|
|
(9,500 |
) |
|
|
March 31, 2024 |
|
December 31, 2023 |
| Balance Sheet
Data |
|
|
|
|
Cash and cash equivalents |
$ |
30,181 |
|
|
$ |
50,265 |
|
| Total assets |
|
1,517,231 |
|
|
|
1,563,796 |
|
| Total debt |
|
875,654 |
|
|
|
860,318 |
|
| Shareholders’ equity |
|
223,322 |
|
|
|
256,854 |
|
| |
|
|
|
|
|
|
|
Reconciliation of GAAP Financial
Information to Non-GAAP Financial Information
This press release includes measures of earnings before the
effects of certain specifically identified items, which are
referred to as adjusted earnings and Adjusted EBITDA, both non-GAAP
measures. The Company uses non-GAAP adjusted earnings and Adjusted
EBITDA to supplement the understanding of its consolidated
financial statements presented in accordance with GAAP. Non-GAAP
adjusted earnings is meant to present the financial performance of
the Company’s core operations, which consist of the production and
sale of engineered materials. EBITDA is a measure used by
management to assess our operating performance and is calculated
using income (loss) from continuing operations and excludes
interest expense, interest income, income taxes, and depreciation
and amortization. Adjusted EBITDA is calculated using EBITDA and
further excludes certain items management considers to be unrelated
to the Company’s core operations. Management and the Company’s
Board of Directors use non-GAAP adjusted earnings and Adjusted
EBITDA to evaluate the performance of the Company’s fundamental
business in relation to prior periods and established business
plans. For purposes of determining adjusted earnings and Adjusted
EBITDA, the following items are excluded:
- Strategic initiatives. These
adjustments primarily reflect professional and legal fees and other
costs incurred which are directly related to evaluating and
executing certain strategic initiatives including costs associated
with the Berry HHNF merger.
- Turnaround Strategy costs. This
adjustment reflects costs incurred in connection with the Company's
Turnaround Strategy initiated in 2022 under its new chief executive
officer to drive operational and financial improvement. These costs
are primarily related to professional services fees and employee
separation costs.
- Debt refinancing costs. Represents
charges to write-off unamortized debt issuance costs in connection
with the extinguishment of the Company’s €220.0 million Term Loan
and IKB loans, as well as the amendment to the Company's credit
facility. These costs also include an early repayment penalty
related to the extinguishment of the IKB loans.
- CEO transition costs. This adjustment
reflects a non-cash pension settlement charge associated with the
separation of our former CEO related to a lump-sum distribution
made in Q1 2023 under the terms of his non-qualified pension plan
agreement.
- Timberland sales and related costs.
These adjustments exclude gains from the sales of timberlands as
these items are not considered to be part of our core business,
ongoing results of operations or cash flows. These adjustments are
irregular in timing and amount and may benefit our operating
results.
Unlike net income determined in accordance with GAAP, non-GAAP
adjusted earnings and Adjusted EBITDA do not reflect all charges
and gains recorded by the Company for the applicable period and,
therefore, does not present a complete picture of the Company’s
results of operations for the respective period. However, non-GAAP
adjusted earnings and Adjusted EBITDA provide a measure of how the
Company’s core operations are performing, which management believes
is useful to investors because it allows comparison of such
operations from period to period. Non-GAAP adjusted earnings and
Adjusted EBITDA should not be considered in isolation from, or as a
substitute for, measures of financial performance prepared in
accordance with GAAP.
Adjusted EBITDA % is the calculation of Adjusted EBITDA divided
by net sales.
Although the Company provides guidance for Adjusted EBITDA, it
is not able to provide guidance for net income, the most directly
comparable GAAP measure. Certain elements of the composition of net
income, including income tax expense, are not predictable, making
it impractical for us to provide guidance on net income or to
reconcile our Adjusted EBITDA guidance to net income without
unreasonable efforts. For the same reasons, the Company is unable
to address the probable significance of the unavailable information
regarding net income, which could be material to future
results.
| |
|
|
| Calculation of
Adjusted Free Cash Flow |
|
Three months ended March 31, |
| In thousands |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
Cash used by operations |
|
$ |
(33,485 |
) |
|
$ |
(30,632 |
) |
| Capital expenditures |
|
|
(7,482 |
) |
|
|
(9,500 |
) |
|
Free cash flow |
|
|
(40,967 |
) |
|
|
(40,132 |
) |
|
Adjustments: |
|
|
|
|
|
Turnaround strategy costs |
|
|
1,305 |
|
|
|
5,271 |
|
|
Strategic initiatives |
|
|
620 |
|
|
|
152 |
|
|
Cost optimization actions |
|
|
— |
|
|
|
36 |
|
|
CEO transition costs |
|
|
543 |
|
|
|
7,101 |
|
|
Fox River environmental matter |
|
|
1,636 |
|
|
|
160 |
|
|
Tax payments (refunds) on adjustments to adjusted earnings |
|
|
7 |
|
|
|
(805 |
) |
|
Adjusted free cash flow |
|
$ |
(36,856 |
) |
|
$ |
(28,217 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net DebtIn thousands |
|
March 31, 2024 |
|
December 31, 2023 |
|
|
|
|
|
|
|
Short-term debt |
|
$ |
7,452 |
|
|
$ |
6,150 |
|
| Current portion of long-term
debt |
|
|
— |
|
|
|
1,005 |
|
| Long-term debt, net of current
portion |
|
|
868,202 |
|
|
|
853,163 |
|
| Total |
|
|
875,654 |
|
|
|
860,318 |
|
|
Less: Cash |
|
|
(30,181 |
) |
|
|
(50,265 |
) |
|
Net Debt |
|
$ |
845,473 |
|
|
$ |
810,053 |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
|
Three months ended March 31, |
| In
thousands |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
Net loss |
|
$ |
(26,347 |
) |
|
$ |
(13,584 |
) |
| Exclude: Loss from
discontinued operations, net of tax |
|
|
197 |
|
|
|
402 |
|
| Add back: Taxes on continuing
operations |
|
|
5,154 |
|
|
|
3,694 |
|
|
Depreciation and amortization |
|
|
15,754 |
|
|
|
15,731 |
|
|
Interest expense, net |
|
|
17,424 |
|
|
|
12,323 |
|
| EBITDA |
|
|
12,182 |
|
|
|
18,566 |
|
| Adjustments: |
|
|
|
|
|
Strategic initiatives |
|
|
10,910 |
|
|
|
730 |
|
|
Turnaround strategy costs |
|
|
57 |
|
|
|
4,483 |
|
|
Debt refinancing |
|
|
— |
|
|
|
59 |
|
|
CEO transition costs |
|
|
— |
|
|
|
633 |
|
|
Share-based compensation |
|
|
671 |
|
|
|
931 |
|
|
Timberland sales and related costs |
|
|
— |
|
|
|
(617 |
) |
|
Adjusted EBITDA |
|
$ |
23,820 |
|
|
$ |
24,785 |
|
| |
|
|
|
|
| Reconciliation of
Operating Profit to EBITDA by
Segment(1) |
|
Three months ended March 31, |
| In
thousands |
|
2024 |
|
2023 |
|
|
|
|
|
|
| Airlaid
Materials |
|
|
|
|
|
Operating profit |
|
$ |
4,958 |
|
|
$ |
13,914 |
|
|
Add back: Depreciation & amortization |
|
|
7,664 |
|
|
|
7,686 |
|
| EBITDA |
|
$ |
12,622 |
|
|
$ |
21,600 |
|
| |
|
|
|
|
| Composite
Fibers |
|
|
|
|
| Operating profit |
|
$ |
8,259 |
|
|
$ |
6,127 |
|
|
Add back: Depreciation & amortization |
|
|
3,764 |
|
|
|
3,965 |
|
| EBITDA |
|
$ |
12,023 |
|
|
$ |
10,092 |
|
| |
|
|
|
|
| Spunlace |
|
|
|
|
| Operating profit (loss) |
|
$ |
2,764 |
|
|
$ |
(2,023 |
) |
|
Add back: Depreciation & amortization |
|
|
3,373 |
|
|
|
3,092 |
|
| EBITDA |
|
$ |
6,137 |
|
|
$ |
1,069 |
|
|
(1) |
|
For our segment results, segment EBITDA is reconciled to segment
operating profit, which is the most comprehensive financial measure
for our segments. |
|
|
|
|
| |
|
|
| Adjusted Corporate
Unallocated Expenses |
|
Three months ended March 31, |
| In
thousands |
|
2024 |
|
2023 |
|
|
|
|
|
|
| Other and unallocated
operating loss |
|
$ |
(17,526 |
) |
|
$ |
(11,905 |
) |
| Adjustments: |
|
|
|
|
|
Strategic initiatives |
|
|
10,910 |
|
|
|
730 |
|
|
Turnaround strategy costs |
|
|
57 |
|
|
|
4,483 |
|
|
Timberland sales and related costs |
|
|
— |
|
|
|
(617 |
) |
|
Adjusted corporate unallocated expenses |
|
$ |
(6,559 |
) |
|
$ |
(7,309 |
) |
|
|
|
|
|
|
|
|
|
|
Caution Concerning Forward-Looking
Statements
Any statements included in this press release that pertain to
future financial and business matters are “forward-looking
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 “anticipates”, “believes”, “expects”,
“future”, “intends”, “plans”, “targets”, and similar expressions to
identify forward-looking statements. Any such statements are based
on the Company’s current expectations and are subject to numerous
risks, uncertainties and other unpredictable or uncontrollable
factors that could cause future results to differ materially from
those expressed in the forward-looking statements. The risks,
uncertainties and other unpredictable or uncontrollable factors are
described in the Company’s filings with the U.S. Securities and
Exchange Commission (“SEC”) in the Risk Factors section and under
the heading “Forward-Looking Statements” in the Company’s most
recently filed Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q, which are available on the SEC’s website at www.sec.gov.
In light of these risks, uncertainties and other factors, the
forward-looking matters discussed in this press release may not
occur and readers are cautioned not to place undue reliance on
these forward-looking statements. The forward-looking statements
speak only as of the date of this press release and the Company
undertakes no obligation, and does not intend, to update these
forward-looking statements to reflect events or circumstances
occurring after the date of this press release.
About Glatfelter
Glatfelter is a leading global supplier of engineered materials
with a strong focus on innovation and sustainability. The Company’s
high quality, technology-driven, innovative, and customizable
nonwovens solutions can be found in products that are Enhancing
Everyday Life®. These include personal care and hygiene products,
food and beverage filtration, critical cleaning products, medical
and personal protection, packaging products, as well as home
improvement and industrial applications. Headquartered in
Charlotte, NC, the Company’s 2023 net sales were $1.4 billion. As
of March 31, 2024, we employed approximately 2,916 employees
worldwide. Glatfelter’s operations utilize a variety of
manufacturing technologies including airlaid, wetlaid and spunlace
with fifteen manufacturing sites located in the United States,
Canada, Germany, the United Kingdom, France, Spain, and the
Philippines. The Company has sales offices in all major geographies
serving customers under the Glatfelter and Sontara® brands.
Additional information about Glatfelter may be found at
www.glatfelter.com.
| |
|
|
Contacts: |
|
|
Investors: |
Media: |
|
Ramesh Shettigar |
Eileen L. Beck |
|
(717) 225-2746 |
(717) 225-2793 |
|
ramesh.shettigar@glatfelter.com |
eileen.beck@glatfelter.com |
|
|
|
Glatfelter (NYSE:GLT)
過去 株価チャート
から 4 2024 まで 5 2024
Glatfelter (NYSE:GLT)
過去 株価チャート
から 5 2023 まで 5 2024
