Glatfelter Reports Third Quarter 2020 Results

Rhea-AI Summary

Glatfelter Corporation (GLT) reported its Q3 2020 results, revealing a net income of $6.5 million ($0.15 per share) compared to $12.2 million ($0.28 per share) in Q3 2019. Consolidated net sales rose to $233.5 million from $232.5 million. Despite a 0.5% decline in Composite Fibers and a 6.4% drop in Airlaid Materials sales, airlaid profitability improved due to a rebound in product demand. The company highlighted operational excellence amid challenges. However, adjusted earnings fell to $7 million from $9.7 million year-over-year, signaling concerns about future performance.

Positive

• Q3 2020 net income of $6.5 million, down 47.4% YoY but still solid under current conditions.
• Sequential growth in airlaid shipments due to increased demand for home care and hygiene products.
• Composite Fibers' shipments increased by 21% sequentially, indicating recovering wallcover demand.

Negative

• Adjusted earnings from continuing operations decreased to $7.0 million from $9.7 million YoY.
• Airlaid Materials net sales fell by 3.6% despite a sequential improvement, highlighting persistent demand challenges.
• Total expenses increased, leading to a lower operating margin in Composite Fibers.

~ Airlaid Materials delivers another quarter of record profitability ~

CHARLOTTE, N.C., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Glatfelter Corporation (NYSE: GLT), a leading global supplier of engineered materials, today reported its results for the third quarter of 2020 which are summarized in the following table:

		Three months ended September 30
		2020								2019
In thousands, except per share		Amount				EPS				Amount				EPS
Net income		$	6,527			$	0.15			$	12,224			$	0.28
Income from continuing operations			6,527				0.15				8,643				0.19
Adjusted earnings from continuing operations			7,041				0.16				9,731				0.22

On an adjusted basis, earnings from continuing operations for the three months ended September 30, 2020 and 2019, were $7.0 million, or $0.16 per share, compared with $9.7 million, or $0.22 per share, respectively. Adjusted earnings is a non-GAAP financial measure for which a reconciliation to the nearest GAAP-based measure is provided within this release. Consolidated net sales for the three months ended September 30, 2020 totaled $233.5 million compared with $232.5 million during the same period in 2019. On a constant currency basis, Composite Fibers’ and Airlaid Materials’ net sales decreased by 0.5% and 6.4%, respectively.

“Glatfelter delivered another quarter of solid results as both segments continued to safely produce and deliver essential engineered materials while maintaining a focus on operational excellence and cost discipline,” said Dante C. Parrini, Chairman and Chief Executive Officer. “Airlaid Materials continued to build on its strong results from the second quarter, achieving another quarter of record profit. Sequential quarter growth in Airlaid shipments was driven by a rebound in tabletop and steady demand in feminine hygiene and home care products. Composite Fibers’ shipments were also better than expected, increasing sequentially by 21%, as wallcover demand that had fallen at the beginning of the pandemic began to recover and remained steady through the quarter. Although volume growth in wallcover improved overall shipments for Composite Fibers, operating profit was impacted due to manufacturing downtime to manage inventory levels and optimize cash flow.”

Mr. Parrini continued, “Our steady performance during these uncertain times is a testament to the resilience of our employees and the agility of our business model, which is emblematic of the New Glatfelter. We continue to maintain our vigilant efforts to keep Glatfelter PEOPLE safe and ensure the uninterrupted availability of our products despite the challenging market conditions and volatility caused by the COVID-19 pandemic. Looking ahead, we remain focused on operational excellence and continuing our positive momentum to finish the year strong.”

Third 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 September 30
		2020								2019
In thousands, except per share		Amount				EPS				Amount				EPS
Net income		$	6,527			$	0.15			$	12,224			$	0.28
Exclude: Income from discontinued operations, net of tax			—				—				(3,581	)			(0.09	)
Income from continuing operations			6,527				0.15				8,643				0.19
Adjustments (pre-tax)
Restructuring charge - Metallized operations			57								—
Cost optimization actions			1,270								1,736
Corporate headquarters relocation			610								—
Pension settlement expenses, net			389								—
COVID-19 incremental costs			586								—
Strategic initiatives			843								—
Timberland sales and related costs			(412	)							(233	)
Total adjustments (pre-tax)			3,343								1,503
Income taxes (1)			(375	)							(415	)
CARES Act of 2020 tax benefit (2)			(2,454	)							—
Total after-tax adjustments			514				0.01				1,088				0.02
Adjusted earnings from continuing operations		$	7,041			$	0.16			$	9,731			$	0.22

(1) Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated.

(2) Tax benefit recorded in connection with passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) related to provisions that modified the “net operating loss” provisions of previous law to allow certain losses to be carried back five years.

The sum of individual per share amounts set forth above may not agree to adjusted earnings per share due to rounding.

A description of each of the adjustments presented above is included later in this release.

Composite Fibers

		Three months ended September 30
Dollars in thousands		2020				2019				Change
Tons shipped (metric)			35,009				33,394				1,615				4.8	%
Net sales		$	132,419			$	127,704			$	4,715				3.7	%
Operating income			10,464				11,129				(665	)			(6.0	)%
Operating margin			7.9	%			8.7	%

Composite Fibers’ net sales increased $4.7 million or 3.7%, compared to the year-ago quarter driven by higher shipments in the wallcover, technical specialty, and food and beverage product categories and favorable currency translation of $5.3 million. These increases were partially offset by lower selling prices of $3.0 million as well as lower metallized shipments following our exit of the more commoditized parts of this business at our Gernsbach, Germany facility earlier this year.

Composite Fibers’ operating income of $10.5 million was $0.7 million lower, or approximately 6% unfavorable, compared to the third quarter of 2019. Higher shipping volumes in most product categories improved operating profit by $0.3 million. A benefit of $2.0 million from lower input prices, primarily wood pulp, was offset by a $3.0 million impact from lower selling prices. Improved operations and strong cost control actions were offset by machine downtime previously planned to manage inventory and reduce labor costs.

Airlaid Materials

		Three months ended September 30
Dollars in thousands		2020				2019				Change
Tons shipped (metric)			34,752				35,907				(1,155	)			(3.2	)%
Net sales		$	101,054			$	104,811			$	(3,757	)			(3.6	)%
Operating income			12,917				11,595				1,322				11.4	%
Operating margin			12.8	%			11.1	%

Airlaid Materials’ net sales decreased $3.8 million in the year-over-year comparison. Despite the 98% sequential quarter improvement in tabletop volumes, shipments overall for the segment were lower by 3.2% on a year-over-year basis due to continued softer demand for tabletop products as restaurants remained operating at dramatically limited capacity. This shortfall in demand was mostly offset by strong orders for home care, feminine hygiene and wipes products. Selling prices were $3.5 million lower due to contractual cost pass-through arrangements but mostly offset by favorable currency translation of $2.9 million.

Airlaid Materials’ third quarter 2020 operating income of $12.9 million was $1.3 million favorable, or approximately 11% higher, when compared to the third quarter of 2019. Improved sales mix favorably impacted results by $0.4 million, while price declines due to contractual raw material pass-through provisions outpaced lower raw material and energy prices, reducing operating profit by a net $0.4 million. Disciplined cost control, complemented by efficient operations, positively impacted results by $0.1 million, and a more favorable foreign exchange environment benefited results by $1.2 million.

Other Financial Information

The amount of “Other and Unallocated” operating expense in the table of Segment Financial Information totaled $9.4 million in the third quarter of 2020 compared with $8.2 million in the same period a year ago. Excluding the items identified to present “adjusted earnings,” unallocated expenses for the third quarter of 2020 decreased $0.5 million compared to the third quarter of 2019.

In the third quarter of 2020, income from continuing operations totaled $10.1 million and income tax expense totaled $3.6 million. On adjusted pre-tax income of $13.5 million, income tax expense was $6.4 million in the third quarter of 2020. The comparable amounts in the same quarter of 2019 were $13.3 million and $3.6 million, respectively. The effective tax rate on adjusted earnings was 48% in the third quarter of 2020.

Year-to-Date Results

The following table sets forth a reconciliation of results on a GAAP basis to an adjusted earnings basis, a non-GAAP measure:

		Nine months ended September 30
		2020								2019
In thousands, except per share		Amount				EPS				Amount				EPS
Net income		$	11,517			$	0.26			$	23,341			$	0.53
Exclude: (Income) loss from discontinued operations, net of tax			135				—				(3,802	)			(0.09	)
Income from continuing operations			11,652				0.26				19,539				0.44
Adjustments (pre-tax)
Restructuring charge - Metallized operations			11,111								—
Cost optimization actions			4,367								7,643
Corporate headquarters relocation			610								—
Pension settlement expenses, net			6,792								—
COVID-19 incremental costs			1,766								—
Asset impairment charge			900								—
Airlaid capacity expansion costs			—								1,014
Debt refinancing			—								992
Strategic initiatives			843								249
Fox River environmental matter			—								(2,509	)
Timberland sales and related costs			(1,013	)							(1,114	)
Total adjustments (pre-tax)			25,376								6,275
Income taxes (1)			(4,257	)							(348	)
CARES Act of 2020 tax benefit (2)			(5,023	)							—
Total after-tax adjustments			16,096				0.36				5,927				0.13
Adjusted earnings from continuing operations		$	27,748			$	0.62			$	25,466			$	0.57

(1) Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated.

(2) Tax benefit recorded in connection with passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) related to provisions that modified the “net operating loss” provisions of previous law to allow certain losses to be carried back five years.

Balance Sheet and Other Information

Cash and cash equivalents totaled $59.2 million as of September 30, 2020, and net debt was $272.7 million compared with $233.7 million at the end of 2019. The increase in net debt primarily reflects the impact from foreign exchange and the funding of a 401(k) account to offset future company retirement contributions as part of the completion of the pension plan asset reversion. Net leverage on September 30, 2020 and December 31, 2019 was 2.4 times and 2.2 times, respectively. (Refer to the calculation of this measure provided in the tables at the end of this release.)

Capital expenditures during the first nine months of 2020 and 2019 totaled $20.2 million and $18.0 million, respectively. Adjusted free cash flow for the nine months of 2020 was $4.4 million compared with a use of $2.4 million in the prior year period. (Refer to the calculation of measure provided in the tables at the end of this release.)

Conference Call

As previously announced, the Company will hold a conference call today at 11:00 a.m. (Eastern) to discuss its third quarter results. The Company will make available on its Investor Relations website this quarter’s earnings release and an accompanying financial presentation which includes significant 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:	Glatfelter’s 3rd Quarter 2020 Earnings Release Conference Call
When:	Monday, November 9, 2020, 11:00 a.m. (ET)
Number:	US dial 888.335.5539
	International dial 973.582.2857
Conference ID:	5797672
Webcast:	https://www.glatfelter.com/investors/webcasts-and-presentations/
Rebroadcast Dates:	November 9, 2020, 2:00 p.m. through November 23, 2020, 12:00 p.m.
Rebroadcast Number:	Within US dial 855.859.2056
	International dial 404.537.3406
Conference ID:	5797672

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 subsidiaries
Consolidated Statements of Income
(unaudited)

		Three months ended September 30								Nine months ended September 30
In thousands, except per share		2020				2019				2020				2019
Net sales		$	233,473			$	232,515			$	681,216			$	696,701
Costs of products sold			195,222				194,494				574,100				585,563
Gross profit			38,251				38,021				107,116				111,138
Selling, general and administrative expenses			24,635				23,721				72,707				71,143
Gains on dispositions of plant, equipment and timberlands, net			(413	)			(235	)			(1,010	)			(1,327	)
Operating income			14,029				14,535				35,419				41,322
Non-operating income (expense)
Interest expense			(1,810	)			(1,902	)			(5,347	)			(8,513	)
Interest income			39				185				390				931
Pension settlement expenses, net			(389	)			—				(6,792	)			—
Other, net			(1,728	)			(1,034	)			(3,243	)			(3,547	)
Total non-operating expense			(3,888	)			(2,751	)			(14,992	)			(11,129	)
Income from continuing operations before income taxes			10,141				11,784				20,427				30,193
Income tax provision			3,614				3,141				8,775				10,654
Income from continuing operations			6,527				8,643				11,652				19,539
Discontinued operations:
Income (loss) before income taxes			—				1,062				(135	)			1,291
Income tax provision (benefit)			—				(2,519	)			—				(2,511	)
Income (loss) from discontinued operations			—				3,581				(135	)			3,802
Net income		$	6,527			$	12,224			$	11,517			$	23,341
Basic earnings per share
Income from continuing operations		$	0.15			$	0.19			$	0.26			$	0.44
Income from discontinued operations			—				0.09				—				0.09
Basic earnings per share		$	0.15			$	0.28			$	0.26			$	0.53
Diluted earnings per share
Income from continuing operations		$	0.15			$	0.19			$	0.26			$	0.44
Income from discontinued operations			—				0.09				—				0.09
Diluted earnings per share		$	0.15			$	0.28			$	0.26			$	0.53
Cash dividend declared per common share		$	0.135			$	0.13			$	0.40			$	0.39
Weighted average shares outstanding
Basic			44,368				44,171				44,329				44,113
Diluted			44,636				44,442				44,549				44,405

Segment Financial Information
(unaudited)

Three months ended September 30
Dollars in thousands		Composite Fibers								Airlaid Materials								Other and Unallocated								Total
		2020				2019				2020				2019				2020				2019				2020				2019
Net sales		$	132,419			$	127,704			$	101,054			$	104,811			$	-			$	-			$	233,473			$	232,515
Costs of products sold			112,031				106,024				83,699				88,442				(508	)			28				195,222				194,494
Gross profit (loss)			20,388				21,680				17,355				16,369				508				(28	)			38,251				38,021
SG&A			9,924				10,551				4,438				4,774				10,273				8,396				24,635				23,721
Gains on dispositions of plant, equipment
and timberlands, net			-				-				-				-				(413	)			(235	)			(413	)			(235	)
Total operating income (loss)			10,464				11,129				12,917				11,595				(9,352	)			(8,189	)			14,029				14,535
Non operating expense			-				-				-				-				(3,888	)			(2,751	)			(3,888	)			(2,751	)
Income (loss) before income taxes		$	10,464			$	11,129			$	12,917			$	11,595			$	(13,240	)		$	(10,940	)		$	10,141			$	11,784
Supplementary Data
Metric tons sold			35,009				33,394				34,752				35,907				-				-				69,761				69,301
Depreciation, depletion and amortization		$	6,755			$	6,445			$	5,674			$	5,285			$	1,273			$	864			$	13,702			$	12,594
Capital expenditures			3,060				3,995				2,791				2,869				2,303				520				8,154				7,384

Nine months ended September 30
Dollars in thousands		Composite Fibers								Airlaid Materials								Other and Unallocated								Total
		2020				2019				2020				2019				2020				2019				2020				2019
Net sales		$	387,267			$	389,002			$	293,949			$	307,699			$	-			$	-			$	681,216			$	696,701
Costs of products sold			319,403				322,152				243,526				262,256				11,171				1,155				574,100				585,563
Gross profit (loss)			67,864				66,850				50,423				45,443				(11,171	)			(1,155	)			107,116				111,138
SG&A			30,811				31,388				13,192				13,448				28,704				26,307				72,707				71,143
Gains on dispositions of plant, equipment
and timberlands, net			-				-				-				-				(1,010	)			(1,327	)			(1,010	)			(1,327	)
Total operating income (loss)			37,053				35,462				37,231				31,995				(38,865	)			(26,135	)			35,419				41,322
Non operating expense			-				-				-				-				(14,992	)			(11,129	)			(14,992	)			(11,129	)
Income (loss) before income taxes		$	37,053			$	35,462			$	37,231			$	31,995			$	(53,857	)		$	(37,264	)		$	20,427			$	30,193
Supplementary Data
Metric tons sold			100,024				99,446				103,068				103,125				-				-				203,092				202,571
Depreciation, depletion and amortization (1)		$	19,652			$	19,720			$	16,598			$	15,832			$	7,060			$	2,562			$	43,310			$	38,114
Capital expenditures			9,121				8,699				6,606				7,882				4,438				1,436				20,165				18,017

(1) The amount presented in 2020 in the Other and unallocated column includes accelerated depreciation incurred in connection with the restructuring of Composite Fibers’ Metallized operations.

Selected Financial Information
(unaudited)

		Nine months ended September 30
In thousands		2020				2019
Cash Flow Data
Cash from continuing operations provided (used) by:
Operating activities		$	24,539			$	15,594
Investing activities			(19,178	)			(18,791	)
Financing activities			(60,963	)			(62,678	)
Depreciation, depletion and amortization			43,310				38,114
Capital expenditures			20,165				18,017

		September 30				December 31
		2020				2019
Balance Sheet Data
Cash and cash equivalents		$	59,241			$	126,201
Total assets			1,233,942				1,283,794
Total debt			331,892				359,859
Shareholders’ equity			558,425				555,959

Reconciliation of GAAP Financial Information to Non-GAAP Financial Information

This press release includes a measure of earnings before the effects of certain specifically identified items, which is referred to as adjusted earnings, a non-GAAP measure. The Company uses non-GAAP adjusted earnings 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 composite fibers and airlaid nonwoven materials. Management and the Company’s Board of Directors use non-GAAP adjusted earnings 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, the following items are excluded:

• Restructuring charge – Metallized operations. This adjustment represents the charges incurred in connection with the decision to restructure a portion of the Composite Fibers segment, primarily consisting of the consolidation of our metallizing operation from Gernsbach, Germany to Caerphilly, UK. The charge includes a non-cash charge of $5.0 million associated with accelerated depreciation and the write-off of inventory and spare parts in addition to cash severance costs totaling $6.1 million.
• Cost optimization actions. These adjustments reflect charges incurred in connection with initiatives to optimize the cost structure of the Company, including costs related to the organizational change to a functional operating model. The costs are primarily related to executive separations, other headcount reductions, professional fees, asset write-offs and certain contract termination costs. These adjustments, which have occurred at various times in the past, are irregular in timing and relate to specific identified programs to reduce or optimize the cost structure of a particular operating segment or the corporate function.
• Corporate headquarters relocation. These adjustments reflect costs incurred in connection with the strategic relocation of the Company’s corporate headquarters to Charlotte, NC. The costs are primarily related to employee relocation costs and exit costs at the previous corporate headquarters.
• Pension settlement expenses, net. This adjustment reflects expenses incurred in connection with the termination of the Company’s qualified pension plan in 2019 and the reversion of excess pension plan assets to the Company in the second quarter of 2020. In the fourth quarter of 2019, the Company incurred a $75.3 million pension settlement charge in connection with the termination of the plan. Since the pension plan was fully funded, the settlement of the pension obligations did not require the use of the Company’s cash, but instead was accomplished with plan assets. In connection with the reversion of excess pension plan assets in the second quarter of 2020, the Company incurred pension settlement expenses related to excise taxes, net of post settlement adjustments and certain related professional fees.
• COVID-19 incremental costs. This adjustment represents incremental cash costs incurred directly related to the COVID-19 pandemic such as mill employee incentive payments, enhanced hygiene protocols, safety and supplies and professional fees primarily associated with the CARES Act benefit.
• Asset Impairment Charge. This adjustment represents a non-cash charge recorded to reduce the carrying amount of a tradename intangible asset of the Dresden wallcover business due to the impact of the COVID 19 pandemic on the underlying forecasted revenue stream.
• Airlaid capacity expansion. These adjustments reflect non-capitalized, one-time costs incurred related to the start-up of a new airlaid production facility in Fort Smith, Arkansas and implementation of a new business system.
• Debt refinancing costs. Represents a charge to write-off unamortized debt issuance costs in connection with the redemption of the Company’s $250 million, 5.375% Notes.
• Strategic initiatives. These adjustments primarily reflect professional and legal fees incurred directly related to evaluating and executing certain strategic initiatives including costs associated with acquisitions and the related integration.
• Fox River environmental matter. This adjustment excludes a gain and reflects a decrease in the Company’s overall reserve included in income for the Fox River matter primarily due to the resolution of the litigation in the first quarter of 2019.
• 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.
• Coronavirus Aid, Relief, and Economic Security (CARES) Act 2020. This adjustment reflects the tax benefit recognized as a result of the March 27, 2020 change in U.S. tax law which, among others, allows net operating losses to be carried back five years.

Unlike net income determined in accordance with GAAP, non-GAAP adjusted earnings does 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 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 should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP.

Calculation of Adjusted Free Cash Flow		Nine months ended September 30
In thousands		2020				2019
Cash from operations		$	24,539			$	15,594
Less: Capital expenditures			(20,165	)			(18,017	)
Adjusted free cash flow		$	4,374			$	(2,423	)

Net Debt		September 30				December 31
In thousands		2020				2019
Current portion of long-term debt		$	23,908			$	22,940
Long term debt			307,984				336,919
Total			331,892				359,859
Less: Cash			(59,241	)			(126,201	)
Net Debt		$	272,651			$	233,658

EBITDA		Trailing twelve months ended September 30				Year ended December 31
In thousands		2020				2019
Net loss		$	(33,366	)		$	(21,542	)
Exclude: (Income) loss from discontinued operations, net of tax			267				(3,670	)
Add back: Taxes on Continuing operations			(11,121	)			(9,242	)
Depreciation and amortization			56,016				50,820
Interest expense, net			6,660				9,285
EBITDA			18,456				25,651
Adjustments:
Restructuring charge - Metallized operations			7,211				—
Cost optimization actions			5,307				8,583
Corporate headquarter relocation			419				—
Pension settlement expenses, net			82,118				75,326
COVID-19 incremental costs			1,766				—
Asset impairment charge			900				—
Airlaid capacity expansion costs			—				1,014
Strategic initiatives			843				249
Fox River environmental matter			—				(2,509	)
Timberland sales and related costs			(1,471	)			(1,572	)
Adjusted EBITDA		$	115,549			$	106,742

Leverage		Trailing twelve months ended September 30				Year ended December 31
In thousands		2020				2019
Net Debt		$	272,651			$	233,658
Divided by Adjusted EBITDA			115,549				106,742
Net leverage			2.4		x		2.2		x

Caution Concerning Forward-Looking Statements

Any statements included in this press release which 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 including, but not limited to, the impacts of the COVID-19 pandemic, changes in industry, business, market, and economic conditions, demand for or pricing of its products, market growth rates and currency exchange rates. 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 Glatfelter 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. More information about these factors is contained in Glatfelter’s filings with the U.S. Securities and Exchange Commission, which are available at www.glatfelter.com.

About Glatfelter

Glatfelter is a leading global supplier of engineered materials. The Company’s high-quality, innovative and customizable solutions are found in tea and single-serve coffee filtration, personal hygiene and packaging products as well as home improvement and industrial applications. Headquartered in Charlotte, NC, the Company’s annualized net sales approximate $925 million with customers in over 100 countries and approximately 2,500 employees worldwide. Operations include eleven manufacturing facilities located in the United States, Canada, Germany, France, the United Kingdom and the Philippines. 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

FAQ

What were Glatfelter's Q3 2020 earnings results?

Glatfelter reported a net income of $6.5 million ($0.15 per share) for Q3 2020.

How did Glatfelter's revenue compare in Q3 2020 vs Q3 2019?

Consolidated net sales increased slightly to $233.5 million in Q3 2020 from $232.5 million in Q3 2019.

What factors affected Glatfelter's performance in Q3 2020?

Sales declines in Composite Fibers and Airlaid Materials, alongside reduced adjusted earnings, impacted performance.

What was Glatfelter's outlook after Q3 2020?

The company emphasized focus on operational excellence and maintaining product availability despite market challenges.