Glatfelter Reports Third Quarter 2024 Results
Glatfelter (NYSE: GLT) reported Q3 2024 financial results, marking its final earnings release before merging with Berry Global's Health, Hygiene and Specialties segment. The company generated net sales of $332 million and posted a GAAP net loss from continuing operations of $20.0 million. Adjusted EBITDA was $24.6 million, slightly down from $25.5 million in Q3 2023. Segment performance showed mixed results: Spunlace EBITDA increased to $4.8 million, Airlaid Materials achieved $18.0 million EBITDA, while Composite Fibers delivered $10.1 million EBITDA. The transaction with Berry Global is scheduled to close on November 4th, creating Magnera.
Glatfelter (NYSE: GLT) ha comunicato i risultati finanziari del terzo trimestre 2024, segnando il suo ultimo rilascio di utili prima della fusione con il segmento Salute, Igiene e Specialità di Berry Global. L'azienda ha generato vendite nette per 332 milioni di dollari e ha registrato una perdita netta GAAP dalle operazioni continuative di 20,0 milioni di dollari. L'EBITDA rettificato è stato di 24,6 milioni di dollari, leggermente in calo rispetto ai 25,5 milioni di dollari del terzo trimestre 2023. La performance dei segmenti ha mostrato risultati misti: l'EBITDA Spunlace è aumentato a 4,8 milioni di dollari, i Materiali Airlaid hanno raggiunto un EBITDA di 18,0 milioni di dollari, mentre le Fibra Compositi hanno consegnato 10,1 milioni di dollari di EBITDA. La transazione con Berry Global è prevista per la chiusura il 4 novembre, creando Magnera.
Glatfelter (NYSE: GLT) reportó los resultados financieros del tercer trimestre de 2024, marcando su último lanzamiento de ganancias antes de fusionarse con el segmento de Salud, Higiene y Especialidades de Berry Global. La compañía generó ventas netas de 332 millones de dólares y registró una pérdida neta GAAP de operaciones continuas de 20,0 millones de dólares. El EBITDA ajustado fue de 24,6 millones de dólares, ligeramente por debajo de los 25,5 millones de dólares en el tercer trimestre de 2023. El desempeño por segmentos mostró resultados mixtos: el EBITDA de Spunlace aumentó a 4,8 millones de dólares, los Materiales Airlaid lograron un EBITDA de 18,0 millones de dólares, mientras que las Fibras Compuestas entregaron un EBITDA de 10,1 millones de dólares. La transacción con Berry Global está programada para cerrarse el 4 de noviembre, creando Magnera.
글랫펠터 (NYSE: GLT)는 2024년 3분기 재무 결과를 발표하며, 베리 글로벌의 건강, 위생 및 특수 세그먼트와의 합병 이전 마지막 실적 발표를 기록했습니다. 회사는 3억 3200만 달러의 순매출을 기록했으며, 지속적인 운영에서 GAAP 기준 순손실은 2000만 달러에 달했습니다. 조정된 EBITDA는 2460만 달러로, 2023년 3분기 2550만 달러에서 소폭 감소했습니다. 부문 성과는 엇갈린 결과를 보였습니다: 스펀레이스 부문 EBITDA는 480만 달러로 증가했으며, 에어레이드 자재는 1800만 달러의 EBITDA를 달성했고, 복합 섬유는 1010만 달러의 EBITDA를 기록했습니다. 베리 글로벌과의 거래는 11월 4일에 마감될 예정이며, 마그네라를 창출할 것입니다.
Glatfelter (NYSE: GLT) a annoncé les résultats financiers du troisième trimestre 2024, marquant sa dernière publication de résultats avant la fusion avec le segment Santé, Hygiène et Spécialités de Berry Global. L'entreprise a généré des ventes nettes de 332 millions de dollars et a enregistré une perte nette GAAP provenant des opérations poursuivies de 20,0 millions de dollars. L'EBITDA ajusté s'élevait à 24,6 millions de dollars, légèrement en baisse par rapport à 25,5 millions de dollars au troisième trimestre 2023. La performance par segment a montré des résultats mitigés : l'EBITDA Spunlace a augmenté à 4,8 millions de dollars, les Matériaux Airlaid ont atteint un EBITDA de 18,0 millions de dollars, tandis que les Fibres Composites ont livré un EBITDA de 10,1 millions de dollars. La transaction avec Berry Global devrait être finalisée le 4 novembre, créant Magnera.
Glatfelter (NYSE: GLT) gab die Finanzergebnisse für das dritte Quartal 2024 bekannt und markiert damit die letzte Ergebnismitteilung vor der Fusion mit dem Segment Gesundheit, Hygiene und Spezialitäten von Berry Global. Das Unternehmen erzielte einen Nettoumsatz von 332 Millionen US-Dollar und verzeichnete einen GAAP-Nettoverlust aus fortgesetzten Betriebstätigkeiten von 20,0 Millionen US-Dollar. Das bereinigte EBITDA betrug 24,6 Millionen US-Dollar, leicht gesunken von 25,5 Millionen US-Dollar im dritten Quartal 2023. Die Segmentperformance zeigte gemischte Ergebnisse: Das Spunlace-EBITDA stieg auf 4,8 Millionen US-Dollar, die Airlaid-Materialien erzielten ein EBITDA von 18,0 Millionen US-Dollar, während die Verbundfasern ein EBITDA von 10,1 Millionen US-Dollar lieferten. Die Transaktion mit Berry Global soll am 4. November abgeschlossen werden und Magnera schaffen.
- Spunlace EBITDA improved by $2.5 million compared to Q3 2023
- Net sales increased to $332.1 million from $329.9 million year-over-year
- Improved cash flow with operating cash usage reduced to $8.4 million from $42.0 million year-over-year
- Posted GAAP net loss of $20.0 million from continuing operations
- Total debt increased to $887.6 million from $860.3 million at year-end 2023
- Adjusted EBITDA declined to $24.6 million from $25.5 million year-over-year
- Operating income decreased in both Airlaid Materials and Composite Fibers segments
Insights
The Q3 2024 results show mixed performance amid challenging conditions. Key concerns include:
- Net loss from continuing operations of
$20.0 million , slightly worse than Q3 2023's$19.7 million loss - Adjusted EBITDA declined to
$24.6 million from$25.5 million year-over-year - High leverage ratio of 3.8x and net debt of
$846 million
However, there are some positive indicators:
- Spunlace segment showed strong improvement with EBITDA up
113.4% to$4.8 million - Cash used by operations improved significantly to
$8.4 million from$42.0 million last year - The pending merger with Berry's HHNF business to form Magnera could provide strategic benefits
The results reflect ongoing challenges in the engineered materials sector. The Airlaid Materials segment, traditionally a strong performer, saw EBITDA decline
~ Transaction closing and transition to Magnera scheduled for November 4th ~
2024 Third Quarter Highlights:
- Generated net sales of ~
$332 million and a GAAP net loss from continuing operations of$20.0 million - Delivered Adjusted EBITDA of
$24.6 million , compared to$25.5 million in Q3 2023 - Spunlace generated
$4.8 million EBITDA despite hurricane downtime, a$2.5 million increase over Q3 '23 - Airlaid Materials achieved EBITDA of
$18.0 million , a$0.7 million decrease from Q3 '23 - Composite Fibers delivered EBITDA of
$10.1 million , a$1.1 million decrease from Q3 '23, due to new sanctions
CHARLOTTE, N.C., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Glatfelter Corporation (NYSE: GLT), a leading global supplier of engineered materials, today announced its financial results for the third quarter ended September 30, 2024. This disclosure marks the Company’s final earnings release prior to completing its merger with the majority of Berry Global's Health, Hygiene and Specialties segment to include its Global Nonwovens and Films business (“HHNF”) to create Magnera, a global leader in the specialty materials industry. As previously disclosed, the transaction has met all closing conditions, including the support of Glatfelter shareholders, and is expected to close on November 4, 2024.
Commenting on Glatfelter’s third quarter performance, Thomas Fahnemann, President and CEO of Glatfelter said, “Despite ongoing external pressures, Glatfelter’s solid third quarter results demonstrated continued resilience and progress in its core business segments. While we faced new headwinds in Composite Fibers during the third quarter from additional sanctions in wallcover, the underlying operational performance of the segment continued to improve. In Airlaid, we were able to leverage stronger order patterns in feminine hygiene and tabletop categories that supported the recovery of our European business from earlier in 2024, thereby driving sequential improvements in EBITDA of
Mr. Fahnemann added, “As we close the legacy Glatfelter chapter and prepare for a new future under Magnera, I want to recognize the efforts of our employees. Together we have overcome significant challenges and succeeded in turning around this business. We are now well positioned for continued growth and innovation with a platform to leverage Glatfelter’s heritage and expertise to contribute to the success of Magnera. It’s been a pleasure and a privilege to serve as CEO during this critical time and I want to thank all Glatfelter stakeholders for their trust and support.”
| Three months ended September 30, | ||||||||
| Dollars in thousands | 2024 | 2023 | ||||||
| Net sales | $ | 332,101 | $ | 329,921 | ||||
| Net loss from continuing operations | (20,002 | ) | (19,680 | ) | ||||
| Adjusted loss from continuing operations (1) | (11,805 | ) | (10,372 | ) | ||||
| EPS from continuing operations | (0.44 | ) | (0.43 | ) | ||||
| Adjusted EPS (1) | (0.26 | ) | (0.23 | ) | ||||
| Adjusted EBITDA (1) | 24,585 | 25,467 | ||||||
(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.
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, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| In thousands, except per share | Amount | EPS | Amount | EPS | ||||||||||||
| Net loss | $ | (15,247 | ) | $ | (0.33 | ) | $ | (19,863 | ) | $ | (0.43 | ) | ||||
| Exclude: (Income) loss from discontinued operations, net of tax (1) | (4,755 | ) | (0.11 | ) | 183 | — | ||||||||||
| Loss from continuing operations | (20,002 | ) | (0.44 | ) | (19,680 | ) | (0.43 | ) | ||||||||
| Adjustments (pre-tax): | ||||||||||||||||
| Strategic initiatives (2) | 8,020 | 488 | ||||||||||||||
| Turnaround strategy costs (3) | — | 372 | ||||||||||||||
| Ober-Schmitten divestiture (4) | — | 8,055 | ||||||||||||||
| CEO transition costs (5) | — | (54 | ) | |||||||||||||
| Timberland sales and related costs | — | (688 | ) | |||||||||||||
| Total adjustments (pre-tax) | 8,020 | 8,173 | ||||||||||||||
| Income taxes (6) | (77 | ) | 928 | |||||||||||||
| Other tax adjustments (7) | 254 | 207 | ||||||||||||||
| Total after-tax adjustments | 8,197 | 0.18 | 9,308 | 0.21 | ||||||||||||
| Adjusted loss from continuing operations | $ | (11,805 | ) | $ | (0.26 | ) | $ | (10,372 | ) | $ | (0.23 | ) | ||||
(1) In Q3 2024, we recognized a
(2) For 2024, primarily reflects consulting and legal fees associated with the pending Berry HHNF merger of
(3) Reflects employee separation costs of
(4) Reflects loss on sale of
(5) Reflects a reduction in expected benefit costs of
(6) 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.
(7) 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 September 30, | |||||||||||||||
| Dollars in thousands | 2024 | 2023 | Change | ||||||||||||
| Tons shipped (metric) | 39,069 | 40,076 | (1,007 | ) | (2.5 | )% | |||||||||
| Net sales | $ | 138,306 | $ | 147,014 | $ | (8,708 | ) | (5.9 | )% | ||||||
| Operating income | 10,343 | 11,196 | (853 | ) | (7.6 | )% | |||||||||
| EBITDA | 17,999 | 18,749 | (750 | ) | (4.0 | )% | |||||||||
| EBITDA % | 13.0 | % | 12.8 | % | |||||||||||
Airlaid Materials’ third quarter net sales decreased
Airlaid Materials’ third quarter EBITDA of
Composite Fibers
| Three months ended September 30, | |||||||||||||||
| Dollars in thousands | 2024 | 2023 | Change | ||||||||||||
| Tons shipped (metric) | 22,862 | 22,188 | 674 | 3.0 | % | ||||||||||
| Net sales | $ | 113,689 | $ | 109,715 | $ | 3,974 | 3.6 | % | |||||||
| Operating income | 6,292 | 7,268 | (976 | ) | (13.4 | )% | |||||||||
| EBITDA | 10,102 | 11,166 | (1,064 | ) | (9.5 | )% | |||||||||
| EBITDA % | 8.9 | % | 10.2 | % | |||||||||||
Composite Fibers’ net sales were
Composite Fibers had EBITDA for the third quarter of
Spunlace
| Three months ended September 30, | |||||||||||||||
| Dollars in thousands | 2024 | 2023 | Change | ||||||||||||
| Tons shipped (metric) | 14,699 | 14,436 | 263 | 1.8 | % | ||||||||||
| Net sales | $ | 80,443 | $ | 73,791 | $ | 6,652 | 9.0 | % | |||||||
| Operating income (loss) | 1,324 | (1,053 | ) | 2,377 | 225.7 | % | |||||||||
| EBITDA | 4,771 | 2,236 | 2,535 | 113.4 | % | ||||||||||
| EBITDA % | 5.9 | % | 3.0 | % | |||||||||||
Spunlace's net sales were
Spunlace EBITDA was higher by
In September 2024, our Asheville facility was impacted by Hurricane Helene. Fortunately, our facility avoided property damage, however, performance was impacted for four days in Q3. Due to lack of access to water, the facility remained idle through the month of October; however we anticipate operations and shipments will resume in early November.
Other Financial Information
The amount of operating expense not allocated to a reporting segment in the Segment Financial Information totaled
In the third quarter of 2024, our U.S. GAAP pre-tax loss from continuing operations totaled
Balance Sheet and Other Information
Cash and cash equivalents totaled
Capital expenditures during the nine months ended September 30, 2024 and 2023 totaled
| Glatfelter Corporation and subsidiaries Consolidated Statements of Operations (unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| In thousands, except per share | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 332,101 | $ | 329,921 | $ | 988,800 | $ | 1,065,134 | |||||||
| Costs of products sold | 296,620 | 285,434 | 882,022 | 966,300 | |||||||||||
| Gross profit | 35,481 | 44,487 | 106,778 | 98,834 | |||||||||||
| Selling, general and administrative expenses | 32,511 | 24,714 | 97,988 | 84,098 | |||||||||||
| Loss on sale of Ober-Schmitten and other non-strategic operation | — | 17,805 | — | 17,805 | |||||||||||
| Losses (gains) on dispositions of plant, equipment and timberlands, net | (1 | ) | (685 | ) | 70 | (1,350 | ) | ||||||||
| Operating income (loss) | 2,971 | 2,653 | 8,720 | (1,719 | ) | ||||||||||
| Non-operating income (expense) | |||||||||||||||
| Interest expense | (18,404 | ) | (17,386 | ) | (53,989 | ) | (47,241 | ) | |||||||
| Interest income | 237 | 329 | 771 | 1,159 | |||||||||||
| Other, net | (3,316 | ) | (1,948 | ) | (7,852 | ) | (8,271 | ) | |||||||
| Total non-operating expense | (21,483 | ) | (19,005 | ) | (61,070 | ) | (54,353 | ) | |||||||
| Loss from continuing operations before income taxes | (18,512 | ) | (16,352 | ) | (52,350 | ) | (56,072 | ) | |||||||
| Income tax provision | 1,490 | 3,328 | 9,597 | 13,421 | |||||||||||
| Loss from continuing operations | (20,002 | ) | (19,680 | ) | (61,947 | ) | (69,493 | ) | |||||||
| Discontinued operations: | |||||||||||||||
| Income (loss) before income taxes | 4,755 | (183 | ) | 4,074 | (894 | ) | |||||||||
| Income tax provision | — | — | — | — | |||||||||||
| Loss from discontinued operations | 4,755 | (183 | ) | 4,074 | (894 | ) | |||||||||
| Net loss | $ | (15,247 | ) | $ | (19,863 | ) | $ | (57,873 | ) | $ | (70,387 | ) | |||
| Basic earnings per share | |||||||||||||||
| Loss from continuing operations | $ | (0.44 | ) | $ | (0.43 | ) | $ | (1.37 | ) | $ | (1.54 | ) | |||
| Income (loss) from discontinued operations | 0.11 | — | 0.09 | (0.02 | ) | ||||||||||
| Basic loss per share | $ | (0.33 | ) | $ | (0.43 | ) | $ | (1.28 | ) | $ | (1.56 | ) | |||
| Diluted earnings per share | |||||||||||||||
| Loss from continuing operations | $ | (0.44 | ) | $ | (0.43 | ) | $ | (1.37 | ) | $ | (1.54 | ) | |||
| Income (loss) from discontinued operations | 0.11 | — | 0.09 | (0.02 | ) | ||||||||||
| Diluted loss per share | $ | (0.33 | ) | $ | (0.43 | ) | $ | (1.28 | ) | $ | (1.56 | ) | |||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 45,442 | 45,099 | 45,322 | 45,033 | |||||||||||
| Diluted | 45,442 | 45,099 | 45,322 | 45,033 | |||||||||||
| Segment Financial Information (unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| In thousands, except per share | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net Sales | |||||||||||||||
| Airlaid Material | $ | 138,306 | $ | 147,014 | $ | 400,419 | $ | 458,966 | |||||||
| Composite Fibers | 113,689 | 109,715 | 347,054 | 368,031 | |||||||||||
| Spunlace | 80,443 | 73,791 | 242,770 | 239,934 | |||||||||||
| Inter-segment sales elimination | (337 | ) | (599 | ) | (1,443 | ) | (1,797 | ) | |||||||
| Total | $ | 332,101 | $ | 329,921 | $ | 988,800 | $ | 1,065,134 | |||||||
| Operating income (loss) | |||||||||||||||
| Airlaid Material | $ | 10,343 | $ | 11,196 | $ | 22,806 | $ | 34,836 | |||||||
| Composite Fibers | 6,292 | 7,268 | 20,582 | 14,293 | |||||||||||
| Spunlace | 1,324 | (1,053 | ) | 6,348 | (4,390 | ) | |||||||||
| Other and unallocated | (14,988 | ) | (14,758 | ) | (41,016 | ) | (46,458 | ) | |||||||
| Total | $ | 2,971 | $ | 2,653 | $ | 8,720 | $ | (1,719 | ) | ||||||
| Depreciation and amortization | |||||||||||||||
| Airlaid Material | $ | 7,656 | $ | 7,553 | $ | 22,922 | $ | 22,876 | |||||||
| Composite Fibers | 3,810 | 3,898 | 11,238 | 11,760 | |||||||||||
| Spunlace | 3,447 | 3,289 | 10,147 | 9,857 | |||||||||||
| Other and unallocated | 916 | 953 | 2,818 | 2,901 | |||||||||||
| Total | $ | 15,829 | $ | 15,693 | $ | 47,125 | $ | 47,394 | |||||||
| Capital expenditures | |||||||||||||||
| Airlaid Material | $ | 3,286 | $ | 2,625 | $ | 6,948 | $ | 7,039 | |||||||
| Composite Fibers | 2,540 | 2,579 | 8,613 | 8,352 | |||||||||||
| Spunlace | 2,198 | 2,271 | 4,964 | 7,481 | |||||||||||
| Other and unallocated | 499 | 296 | 1,170 | 2,357 | |||||||||||
| Total | $ | 8,523 | $ | 7,771 | $ | 21,695 | $ | 25,229 | |||||||
| Tons shipped (metric) | |||||||||||||||
| Airlaid Material | 39,069 | 40,076 | 115,205 | 119,149 | |||||||||||
| Composite Fibers | 22,862 | 22,188 | 73,599 | 71,972 | |||||||||||
| Spunlace | 14,699 | 14,436 | 46,727 | 46,047 | |||||||||||
| Inter-segment sales elimination | (164 | ) | (328 | ) | (830 | ) | (925 | ) | |||||||
| Total | 76,466 | 76,372 | 234,701 | 236,243 | |||||||||||
| Selected Financial Information (unaudited) | ||||||||
| Nine months ended September 30, | ||||||||
| In thousands | 2024 | 2023 | ||||||
| Cash Flow Data | ||||||||
| Cash from continuing operations provided (used) by: | ||||||||
| Operating activities | $ | (8,397 | ) | $ | (41,955 | ) | ||
| Investing activities | (20,782 | ) | (28,694 | ) | ||||
| Financing activities | 17,770 | 10,987 | ||||||
| Depreciation, depletion and amortization | 47,125 | 47,394 | ||||||
| Capital expenditures | (21,695 | ) | (25,229 | ) | ||||
| September 30, 2024 | December 31, 2023 | ||||||
| Balance Sheet Data | |||||||
| Cash and cash equivalents | $ | 41,635 | $ | 50,265 | |||
| Total assets | 1,521,623 | 1,563,796 | |||||
| Total debt | 887,590 | 860,318 | |||||
| Shareholders’ equity | 206,700 | 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.
- Ober-Schmitten divestiture. This adjustment reflects employee separation costs and professional and other costs directly associated with the divestiture of the Ober-Schmitten, Germany facility.
- CEO transition costs. This adjustment reflects a reduction in expected benefit costs related to the former CEO's separation in 2023.
- COVID-19 ERC recovery. This adjustment reflects the benefit recognized from employee retention credits claimed under the Coronavirus Aid, Relief, and Economic Security Act (“CARES”) Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 and professional services fees directly associated with claiming this benefit.
- 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 In thousands | Nine months ended September 30, | |||||||
| 2024 | 2023 | |||||||
| Cash used by operations | $ | (8,397 | ) | $ | (41,955 | ) | ||
| Capital expenditures | (21,695 | ) | (25,229 | ) | ||||
| Free cash flow | (30,092 | ) | (67,184 | ) | ||||
| Adjustments: | ||||||||
| Turnaround strategy costs | 2,975 | 12,773 | ||||||
| Strategic initiatives | 9,032 | 1,420 | ||||||
| Ober-Schmitten divestiture | — | 570 | ||||||
| Cost optimization actions | — | 179 | ||||||
| Restructuring charge - metallized operations | — | 39 | ||||||
| CEO transition costs | 1,431 | 8,198 | ||||||
| Fox River environmental matter | 1,636 | 525 | ||||||
| COVID-19 ERC recovery | — | (6,586 | ) | |||||
| Tax payments (refunds) on adjustments to adjusted earnings | 7 | (861 | ) | |||||
| Adjusted free cash flow | $ | (15,011 | ) | $ | (50,927 | ) | ||
| Net Debt In thousands | September 30, 2024 | December 31, 2023 | ||||||
| Short-term debt | $ | 7,607 | $ | 6,150 | ||||
| Current portion of long-term debt | — | 1,005 | ||||||
| Long-term debt, net of current portion | 879,983 | 853,163 | ||||||
| Total | 887,590 | 860,318 | ||||||
| Less: Cash | (41,635 | ) | (50,265 | ) | ||||
| Net Debt | $ | 845,955 | $ | 810,053 | ||||
| Adjusted EBITDA | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| In thousands | 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net loss | $ | (15,247 | ) | $ | (19,863 | ) | $ | (57,873 | ) | $ | (70,387 | ) | |||||
| Exclude: (Income) loss from discontinued operations, net of tax | (4,755 | ) | 183 | (4,074 | ) | 894 | |||||||||||
| Add back: Taxes on continuing operations | 1,490 | 3,328 | 9,597 | 13,421 | |||||||||||||
| Depreciation and amortization | 15,829 | 15,693 | 47,125 | 47,394 | |||||||||||||
| Interest expense, net | 18,167 | 17,057 | 53,218 | 46,082 | |||||||||||||
| EBITDA | 15,484 | 16,398 | 47,993 | 37,404 | |||||||||||||
| Adjustments: | |||||||||||||||||
| Strategic initiatives | 8,020 | 488 | 23,024 | 2,158 | |||||||||||||
| Turnaround strategy costs | — | 370 | 449 | 7,566 | |||||||||||||
| Ober-Schmitten divestiture | — | 8,055 | — | 18,797 | |||||||||||||
| Debt refinancing | — | — | — | 59 | |||||||||||||
| CEO transition costs | — | (54 | ) | — | 579 | ||||||||||||
| Share-based compensation | 1,081 | 898 | 2,550 | 2,205 | |||||||||||||
| COVID-19 ERC recovery | — | — | — | 41 | |||||||||||||
| Timberland sales and related costs | — | (688 | ) | — | (1,305 | ) | |||||||||||
| Adjusted EBITDA | $ | 24,585 | $ | 25,467 | $ | 74,016 | $ | 67,504 | |||||||||
| Reconciliation of Operating Profit to EBITDA by Segment(1) | Three months ended September 30, | |||||||
| In thousands | 2024 | 2023 | ||||||
| Airlaid Materials | ||||||||
| Operating profit | $ | 10,343 | $ | 11,196 | ||||
| Add back: Depreciation & amortization | 7,656 | 7,553 | ||||||
| EBITDA | $ | 17,999 | $ | 18,749 | ||||
| Composite Fibers | ||||||||
| Operating profit | $ | 6,292 | $ | 7,268 | ||||
| Add back: Depreciation & amortization | 3,810 | 3,898 | ||||||
| EBITDA | $ | 10,102 | $ | 11,166 | ||||
| Spunlace | ||||||||
| Operating profit (loss) | $ | 1,324 | $ | (1,053 | ) | |||
| Add back: Depreciation & amortization | 3,447 | 3,289 | ||||||
| EBITDA | $ | 4,771 | $ | 2,236 | ||||
(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 September 30, | |||||||
| In thousands | 2024 | 2023 | ||||||
| Other and unallocated operating loss | $ | (14,988 | ) | $ | (14,758 | ) | ||
| Adjustments: | ||||||||
| Strategic initiatives | 8,020 | 488 | ||||||
| Turnaround strategy costs | — | 372 | ||||||
| Ober-Schmitten divestiture | — | 8,055 | ||||||
| CEO transition costs | — | (54 | ) | |||||
| Timberland sales and related costs | — | (688 | ) | |||||
| Adjusted corporate unallocated expenses | $ | (6,968 | ) | $ | (6,585 | ) | ||
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
| Contacts: | |
| Investors: | Media: |
| Ramesh Shettigar | Eileen L. Beck |
| (717) 225-2746 | (717) 225-2793 |
| ramesh.shettigar@glatfelter.com | eileen.beck@glatfelter.com |
FAQ
What was Glatfelter's (GLT) net loss in Q3 2024?
When will Glatfelter (GLT) complete its merger with Berry Global's HHNF segment?
What was Glatfelter's (GLT) Adjusted EBITDA for Q3 2024?
