Glatfelter (GLT) investor relations material

Executive summary

• Q3 2024 net sales were $332.1 million, with adjusted EBITDA of $24.6 million, and a net loss from continuing operations of $20.0 million; segment results were mixed across the portfolio.

• For the nine months ended September 30, 2024, net sales were $988.8 million, net loss was $57.9 million, and adjusted EBITDA improved to $74.0 million.

• The merger with Berry Global's HHNF business is expected to close November 4, 2024, creating a leading specialty materials company.

Financial highlights

• Q3 2024 net sales were $332.1 million, up from $329.9 million in Q3 2023; adjusted operating income was $11.0 million.

• Adjusted EBITDA margin for Q3 2024 was 7.4%, compared to 7.7% in Q3 2023.

• Gross profit for the nine months was $106.8 million, with gross margin improving to 10.8%.

• Adjusted EPS from continuing operations was ($0.26) in Q3 2024, compared to ($0.23) in Q3 2023.

• Adjusted free cash flow improved to $9.0 million in Q3 2024, and net cash used by operating activities for the nine months improved to $8.4 million.

Outlook and guidance

• The merger with Berry Global's HHNF business is expected to close in early November 2024, with anticipated strategic and financial benefits.

• Capital expenditures for 2024 are expected to total between $30 million and $35 million.

• The company expects to meet near- and long-term cash needs from operating cash flow, cash on hand, and existing credit facilities.