Glatfelter Reports Third Quarter 2023 Results

2023 Third Quarter Overview:

• Generated net sales of ~$330 million and a GAAP net loss from continuing operations of $19.7 million
• Delivered strong sequential recovery of Adjusted EBITDA of $25.5 million following one-time Q2 adverse events
• Improved earnings from Turnaround Strategy, delivering highest EBITDA margin of last eight quarters
• Divested Ober-Schmitten site, eliminating future losses
• Lowered full-year EBITDA guidance by $10 million due to ongoing industry-wide market weakness, lower volumes and continued customer destocking
  
  

CHARLOTTE, N.C., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Glatfelter Corporation (NYSE:GLT), a leading global supplier of engineered materials, today reported financial results for the third quarter of 2023 and provided an update on the Company's Turnaround Strategy to improve operational and financial performance despite challenging market conditions.

"Our performance improved in the third quarter as we moved past last quarter's one-time operational issues, further reflecting the team's continued commitment to driving efficiencies across the business as part of our Turnaround Strategy," said Thomas Fahnemann, President and CEO of Glatfelter. "We generated sequential EBITDA gains in our Composite Fibers segment through improved operations and the divestiture of the Ober-Schmitten business. Performance in the Airlaid segment also increased as we delivered sequential volume growth, stronger production and benefits from cost-out actions. In Spunlace, earnings were stable sequentially as volume weakness was fully offset by operational improvements and prudent cost control. These outcomes meaningfully contributed to us generating Adjusted EBITDA of $25.5 million during the quarter, with our enterprise EBITDA margin reaching the highest level of the past eight quarters."

Mr. Fahnemann continued, "While I am pleased with the progress of the Turnaround Strategy and the resulting earnings improvement, we cannot ignore the intense pressure from current market conditions that is weighing on the overall industry and our business, especially in Europe. As a result, we are lowering our guidance for 2023 Adjusted EBITDA by $10 million."

"Despite the ongoing market headwinds, I am confident we are implementing the appropriate strategic actions focused on the overall cost to serve our customers without compromising the value and quality of our products. We remain focused on further improving our productivity, investing in critical initiatives, including innovation, and effectively positioning the Company to capture volume growth when the markets begin to improve," concluded Mr. Fahnemann.

		Three months ended September 30,
Dollars in thousands			2023				2022
Net sales		$	329,921			$	371,780
Net loss from continuing operations			(19,680	)			(49,254	)
Adjusted loss from continuing operations (1)			(10,372	)			(4,306	)
EPS from continuing operations			(0.43	)			(1.10	)
Adjusted EPS (1)			(0.23	)			(0.10	)
Adjusted EBITDA (1)			25,467				26,329

^{(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.}

Portfolio Optimization – Sale of Ober-Schmitten, German Facility and Costa Rica fiber supply operation

As part of the Turnaround Strategy's detailed portfolio review and as previously announced, the Company completed the sale of Ober-Schmitten operations within the Composite Fibers segment to IS Holdings (a Turkish family-owned and operated investment holding company) and recorded a loss on the sale of $17.8 million. An operating loss of $2 million in the quarter, and $8 million for the year, from the Ober-Schmitten operations is recorded in the Composite Fibers results.

In addition, on October 2, 2023, the Company completed the sale of its fiber supply operation in Costa Rica to Southeastern Fibers Corporation for a loss on sale of $0.5 million. This operation incurred losses during the year of $0.2 million, also included in the Composite Fibers results. As previously stated, we will continuously review our operations to identify non-core facilities and distribution for rationalization to better position our portfolio for growth.

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,
			2023								2022
In thousands, except per share		Amount				EPS				Amount				EPS
Net loss		$	(19,863	)		$	(0.43	)		$	(49,496	)		$	(1.11	)
Exclude: Loss from discontinued operations, net of tax			183				—				242				0.01
Loss from continuing operations			(19,680	)			(0.43	)			(49,254	)			(1.10	)
Adjustments (pre-tax):
Goodwill and other asset impairment charges			—								42,541
Turnaround strategy costs (1)			372								—
Strategic initiatives (2)			488								2,199
Ober-Schmitten divestiture (3)			8,055								—
CEO transition costs (4)			(54	)							1,489
Corporate headquarters relocation			—								120
Timberland sales and related costs			(688	)							—
Total adjustments (pre-tax)			8,173								46,349
Income taxes (5)			928								(1,527	)
Other tax adjustments (6)			207								126
Total after-tax adjustments			9,308				0.21				44,948				1.00
Adjusted loss from continuing operations		$	(10,372	)		$	(0.23	)		$	(4,306	)		$	(0.10	)

<sup>(1) Reflects employee separation costs of $0.4 million.

(2) For 2023, primarily reflects professional fees (tax and IT) of $0.4 million and other costs of $0.1 million. For 2022, primarily reflects professional services fees (including legal, audit, valuation specialists and consulting) of $1.6 million, employee separation and other costs of $0.6 million, all of which are directly related to acquisitions.

(3) Reflects loss on sale of $17.8 million partially offset by a benefit of $10.3 million related to the reversal of employee separation expenses recorded in Q2 2023 in anticipation of the closure of the facility, and legal fees of $0.5 million.

(4) For 2023, reflects a reduction in expected benefit costs of $0.1 million related to the former CEO's separation. For 2022, reflects cash severance and transition related costs of $4.6 million partially offset by a $3.1 million non-cash benefit related to the forfeiture of stock-based compensation awards.

(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.</sup>

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			2023				2022			Change
Tons shipped (metric)			40,076				41,925				(1,849	)		(4.4)	%
Net sales		$	147,014			$	154,351			$	(7,337	)		(4.8)	%
Operating income			11,196				16,553				(5,357	)		(32.4)	%
EBITDA			18,749				23,953				(5,204	)		(21.7)	%
EBITDA %			12.8	%			15.5	%

Airlaid Materials' third quarter net sales decreased $7.3 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 4.4% lower mainly in feminine hygiene and table top categories driven by residual inventory destocking, European market weakness and potential competition from alternate substrates to manage input costs. Currency translation was favorable by $4.8 million.

Airlaid Materials' third quarter EBITDA of $18.7 million was $5.2 million lower when compared to the third quarter of 2022. Selling price decreases for pass-through contracts, lower energy surcharges, and select spot price reductions of $4.9 million were only partially offset by lower raw material and energy costs of $2.7 million. Shipments were lower primarily in the feminine hygiene and table top categories lowering results by $2.0 million. Operations were unfavorable by $1.8 million mainly due to lower production and higher operational spending. Currency and related hedging positively impacted earnings by $0.7 million.

Composite Fibers

		Three months ended September 30,
Dollars in thousands			2023				2022			Change
Tons shipped (metric)			22,188				24,958				(2,770	)		(11.1	)%
Net sales		$	109,715			$	128,269			$	(18,554	)		(14.5	)%
Operating income			7,268				6,636				632			9.5	%
EBITDA			11,166				10,597				569			5.4	%
EBITDA %			10.2	%			8.3	%

Composite Fibers' revenue was $18.6 million lower in the third quarter of 2023, compared to the year-ago quarter due to lower selling prices of $2.1 million, the sale of Ober-Schmitten mid-quarter this year, and overall shipments down 11.1%. Currency translation was favorable by $6.3 million.

Composite Fibers had EBITDA for the third quarter of $11.2 million compared with $10.6 million EBITDA in the third quarter of 2022. The significant negative price-cost gap experienced last year turned positive in 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 $4.7 million. Lower shipments combined with unfavorable mix from declines in food and beverage and composite laminates negatively impacted income by $2.6 million. Operations were favorable by $0.5 million mainly driven by benefits from the Turnaround Strategy, partially offset by lower production. Ober-Schmitten site negatively impacted year-over-year results by $1.7 million. The impact of currency and related hedging negatively impacted earnings by $0.3 million.

Spunlace

		Three months ended September 30,
Dollars in thousands			2023				2022			Change
Tons shipped (metric)			14,436				17,674				(3,238	)		(18.3	)%
Net sales		$	73,791			$	89,160			$	(15,369	)		(17.2	)%
Operating loss			(1,053	)			(4,671	)			3,618			77.5	%
EBITDA			2,236				(1,717	)			3,953			230.2	%
EBITDA %			3.0	%		(1.9		)%

Spunlace revenue was $15.4 million lower in the third quarter of 2023, compared to the year-ago quarter mainly driven by lower shipments of 18.3% and lower selling prices of $0.6 million, which were partially offset by favorable currency translation of $1.3 million.

Spunlace EBITDA was higher by $4.0 million compared to the same period last year. Lower selling prices and energy surcharges were unfavorable by $0.6 million but were more than fully offset by lower raw material and energy costs of $4.7 million, reversing the earnings impact from the negative price-cost gap experienced throughout 2022. Volume was unfavorable by $1.6 million driven by lower shipments in most categories. Operations were favorable by $1.0 million from headcount actions taken in 2022, which resulted in lower overall spending and other cost improvements as a result of the turnaround strategy. Currency positively impacted earnings by $0.4 million.

Other Financial Information

The amount of operating expense not allocated to a reporting segment in the Segment Financial Information totaled $14.8 million in the third quarter of 2023 compared with $52.6 million in the same period a year ago. Excluding the items identified to present "adjusted earnings," unallocated expenses for the third quarter of 2023 increased $0.4 million compared to the third quarter of 2022.

In the third quarter of 2023, our U.S. GAAP pre-tax loss from continuing operations totaled $16.4 million and we recorded an income tax expense of $3.3 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 2022 were a pre-tax loss of $44.3 million and an income tax provision of $4.9 million.

Balance Sheet and Other Information

Cash and cash equivalents totaled $52.7 million and $110.7 million as of September 30, 2023 and December 31, 2022, respectively. Total debt was $855.3 million and $845.1 million as of September 30, 2023 and December 31, 2022, respectively. Net debt was $802.6 million as of September 30, 2023 compared with $734.4 million at the end of 2022. Leverage as calculated in accordance with the financial covenants of our bank credit agreement was in compliance at 3.1 times at September 30, 2023.

Capital expenditures during the nine months ended September 30, 2023 and 2022 totaled $25.2 million and $30.1 million, respectively. Operating cash flow for the nine months ended September 30, 2023 and 2022 was a use of $42.0 million and $64.4 million, respectively. Adjusted free cash flow for the nine months ended September 30, 2023 was a use of $50.9 million compared with a use of $88.1 million for the same period in 2022. The negative adjusted free cash flow is primarily driven by negative working capital use, which improved during the first nine months of 2023 as compared to the same period in 2022. (Refer to the calculation of this 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 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:	Q3 2023 Glatfelter Earnings Conference Call
	When:	Thursday, November 2, 2023, 11:00 a.m. (ET)
	Participant Dial-in Number:	(323) 794-2551
		(800) 239-9838
	Conference ID:	8249255
	Webcast registry:	Q3 2023 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 subsidiaries Consolidated Statements of Income (unaudited)
	Three months ended September 30,								Nine months ended September 30,
In thousands, except per share		2023				2022				2023				2022
Net sales	$	329,921			$	371,780			$	1,065,134			$	1,117,423
Costs of products sold		285,434				334,396				966,300				1,010,977
Gross profit		44,487				37,384				98,834				106,446
Selling, general and administrative expenses		24,714				28,890				84,098				90,456
Goodwill and other asset impairment charges		—				42,541				—				159,890
Loss on sale of Ober-Schmitten		17,805				—				17,805				—
Loss (gains) on dispositions of plant, equipment and timberlands, net		(685	)			20				(1,350	)			(2,868	)
Operating income (loss)		2,653				(34,067	)			(1,719	)			(141,032	)
Non-operating income (expense)
Interest expense		(17,386	)			(8,139	)			(47,241	)			(23,673	)
Interest income		329				92				1,159				147
Other, net		(1,948	)			(2,220	)			(8,271	)			(4,015	)
Total non-operating expense		(19,005	)			(10,267	)			(54,353	)			(27,541	)
Loss from continuing operations before income taxes		(16,352	)			(44,334	)			(56,072	)			(168,573	)
Income tax provision (benefit)		3,328				4,920				13,421				(8,569	)
Loss from continuing operations		(19,680	)			(49,254	)			(69,493	)			(160,004	)
Discontinued operations:
Income (loss) before income taxes		(183	)			(242	)			(894	)			129
Income tax provision		—				—				—				—
Income (loss) from discontinued operations		(183	)			(242	)			(894	)			129
Net loss	$	(19,863	)		$	(49,496	)		$	(70,387	)		$	(159,875	)
Basic earnings per share
Loss from continuing operations	$	(0.43	)		$	(1.10	)		$	(1.54	)		$	(3.57	)
Loss from discontinued operations		—				(0.01	)			(0.02	)			—
Basic loss per share	$	(0.43	)		$	(1.11	)		$	(1.56	)		$	(3.57	)
Diluted earnings per share
Loss from continuing operations	$	(0.43	)		$	(1.10	)		$	(1.54	)		$	(3.57	)
Loss from discontinued operations		—				(0.01	)			(0.02	)			—
Diluted loss per share	$	(0.43	)		$	(1.11	)		$	(1.56	)		$	(3.57	)
Weighted average shares outstanding
Basic		45,099				44,877				45,033				44,809
Diluted		45,099				44,877				45,033				44,809

Segment Financial Information (unaudited)
	Three months ended September 30,								Nine months ended September 30,
In thousands, except per share		2023				2022				2023				2022
Net Sales
Airlaid Material	$	147,014			$	154,351			$	458,966			$	447,523
Composite Fibers		109,715				128,269				368,031				387,436
Spunlace		73,791				89,160				239,934				282,464
Inter-segment sales elimination		(599	)			—				(1,797	)			—
Total	$	329,921			$	371,780			$	1,065,134			$	1,117,423
Operating income (loss)
Airlaid Material	$	11,196			$	16,553			$	34,836			$	40,718
Composite Fibers		7,268				6,636				14,293				12,080
Spunlace		(1,053	)			(4,671	)			(4,390	)			(8,051	)
Other and unallocated		(14,758	)			(52,585	)			(46,458	)			(185,779	)
Total	$	2,653			$	(34,067	)		$	(1,719	)		$	(141,032	)
Depreciation and amortization
Airlaid Material	$	7,553			$	7,400			$	22,876			$	22,571
Composite Fibers		3,898				3,961				11,760				15,276
Spunlace		3,289				2,954				9,857				8,813
Other and unallocated		953				1,231				2,901				3,822
Total	$	15,693			$	15,546			$	47,394			$	50,482
Capital expenditures
Airlaid Material	$	2,625			$	1,925			$	7,039			$	7,457
Composite Fibers		2,579				2,462				8,352				12,720
Spunlace		2,271				1,341				7,481				5,227
Other and unallocated		296				1,659				2,357				4,680
Total	$	7,771			$	7,387			$	25,229			$	30,084
Tons shipped (metric)
Airlaid Material		40,076				41,925				119,149				125,658
Composite Fibers		22,188				24,958				71,972				77,415
Spunlace		14,436				17,674				46,047				57,768
Inter-segment sales elimination		(328	)			—				(925	)			—
Total		76,372				84,557				236,243				260,841

Selected Financial Information (unaudited)
		Nine months ended September 30,
In thousands			2023				2022
Cash Flow Data
Cash from continuing operations provided (used) by:
Operating activities		$	(41,955	)		$	(64,353	)
Investing activities			(28,694	)			(25,502	)
Financing activities			10,987				52,084
Depreciation, depletion and amortization			47,394				50,482
Capital expenditures			(25,229	)			(30,084	)

	September 30, 2023				December 31, 2022
Balance Sheet Data
Cash and cash equivalents	$	52,741			$	110,660
Total assets		1,532,912				1,647,353
Total debt		855,345				845,109
Shareholders' equity		253,698				318,004

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 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:

• Goodwill and other asset impairment charges. This adjustment represents non-cash charges recorded to reduce the carrying amount of certain long-lived assets of our Dresden, Germany facility and goodwill of our Composite Fibers and Spunlace reporting segments.
• 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.
• 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 related integrations.
• Ober-Schmitten divestiture costs. This adjustment reflects the loss on sale of the Ober-Schmitten, Germany operations and professional and other costs directly associated with the sale, and previously anticipated closure, of the facility.
• CEO transition costs. This adjustment reflects a costs associated with the separation of our former CEO, including a non-cash pension settlement charge related to a lump-sum distribution made in Q1 2023 under the terms of his non-qualified pension plan agreement.
• Corporate headquarters relocation. This adjustment reflects 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 former corporate headquarters.
• 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,
			2023				2022
Cash from operations		$	(41,955	)		$	(64,353	)
Capital expenditures			(25,229	)			(30,084	)
Free cash flow			(67,184	)			(94,437	)
Adjustments:
Turnaround strategy costs			12,773				—
Strategic initiatives			1,420				1,204
Ober-Schmitten divestiture			570				—
Cost optimization actions			179				1,134
Restructuring charge - metallized operations			39				—
CEO transition costs			8,198				317
Corporate headquarters relocation			—				(311	)
Fox River environmental matter			525				1,440
COVID-19 ERC recovery			(6,586	)			—
Tax payments (refunds) on adjustments to adjusted earnings			(861	)			2,599
Adjusted free cash flow		$	(50,927	)		$	(88,054	)

Net Debt In thousands		September 30, 2023				December 31, 2022
Short-term debt		$	5,555			$	11,422
Current portion of long-term debt			1,926				40,435
Long-term debt, net of current portion			847,864				793,252
Total			855,345				845,109
Less: Cash			(52,741	)			(110,660	)
Net Debt		$	802,604			$	734,449

Adjusted EBITDA		Three months ended September 30,								Nine months ended September 30,
In thousands			2023				2022				2023				2022
Net loss		$	(19,863	)		$	(49,496	)		$	(70,387	)		$	(159,875	)
Exclude:
Loss from discontinued operations, net of tax			183				242				894				(129	)
Add back:
Taxes on continuing operations			3,328				4,920				13,421				(8,569	)
Depreciation and amortization			15,693				15,546				47,394				50,482
Interest expense, net			17,057				8,047				46,082				23,526
EBITDA			16,398				(20,741	)			37,404				(94,565	)
Adjustments:
Goodwill and other asset			—				42,541				—				159,890
Turnaround strategy costs			370				—				7,566				—
Russia/Ukraine conflict charges			—				—				—				3,948
Strategic initiatives			488				2,199				2,158				4,687
Ober-Schmitten divestiture			8,055				—				18,797				—
Debt refinancing			—				—				59				—
CEO transition costs			(54	)			4,592				579				4,592
Corporate headquarters relocation			—				120				—				343
Share-based compensation			898				(2,382	)			2,205				37
Cost optimization actions			—				—				—				589
COVID-19 ERC recovery			—				—				41				—
Timberland sales and related costs			(688	)			—				(1,305	)			(2,962	)
Adjusted EBITDA		$	25,467			$	26,329			$	67,504			$	76,559

Reconciliation of Operating Profit to EBITDA by Segment(1)		Three months ended September 30,
In thousands			2023				2022
Airlaid Materials
Operating profit		$	11,196			$	16,553
Add back: Depreciation & amortization			7,553				7,400
EBITDA		$	18,749			$	23,953
Composite Fibers
Operating profit		$	7,268			$	6,636
Add back: Depreciation & amortization			3,898				3,961
EBITDA		$	11,166			$	10,597
Spunlace
Operating profit		$	(1,053	)		$	(4,671	)
Add back: Depreciation & amortization			3,289				2,954
EBITDA		$	2,236			$	(1,717	)

^{(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			2023				2022
Other and unallocated operating loss		$	(14,758	)		$	(52,585	)
Adjustments:
Goodwill and other asset impairment charges			—				42,541
Turnaround strategy costs			372				—
Strategic initiatives			488				2,199
Ober-Schmitten divestiture			8,055				—
CEO transition costs			(54	)			1,489
Corporate headquarters relocation			—				120
Timberland sales and related costs			(688	)			—
Adjusted corporate unallocated expenses		$	(6,585	)		$	(6,236	)

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 2022 net sales were $1.5 billion. As of September 30, 2023, we employed approximately 2,980 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
[email protected]	[email protected]