Glatfelter (NYSE:GLT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 11:00 am ET


Glatfelter (NYSE:GLT) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to Glatfelter's Q2 2020 Earnings Conference Call. At this time all participants lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Ramesh Shettigar from Glatfelter. Thank you. Please go ahead, sir.

Ramesh Shettigar

Thank you, Kyle. Good morning and welcome to Glatfelter's 2020 second quarter earnings conference call. This is Ramesh Shettigar, Vice President of Investor Relations and Corporate Treasurer. On the call today to present our second quarter results are Dante Parrini, Glatfelter's Chairman and Chief Executive Officer and Sam Hillard, Senior Vice President and Chief Financial Officer.

Before we begin our presentation, I have a few standard reminders. During our call this morning, we will use the term adjusted earnings as well as other non-GAAP financial measures. A reconciliation of these financial measures to our GAAP based results is included in today's earnings release and in the investor slides. We will also make forward-looking statements today that are subject to risks and uncertainties. Our 2019 Form 10-K filed with the SEC and today's release both of which are available on our website disclose factors that could cause our actual results to differ materially from these forward-looking statements. These statements speak only as of today and we undertake no obligation to update them.

I will now turn the call over to Dante.

Dante C. Parrini

Thank you, Ramesh. Good morning and thank you for joining us. Glatfelter delivered another solid quarter continuing the positive momentum we have been building. We generated adjusted EBITDA of $29 million and earnings per share of $0.22, a 16% improvement in EPS over the same period last year. Airlaid Materials posted record EBITDA of $17.8 million and EBITDA margin of 19%, a 360 basis point increase over the same quarter last year.

Our Airlaid segment successfully delivered strong quarterly earnings on the back of robust demand for home care and health and hygiene products coupled with disciplined focus on spending. This performance paved the way for delivering record-breaking earnings and margins despite the negative impact of reduced tabletop volumes caused by pandemic-related restaurant closures around the world.

Composite Fibers delivered a better than expected quarter in terms of profitability. Demand for wallcover products was favorable relative to the initial weak outlook at the beginning of the quarter. And we experienced continued strong volume growth in the food and beverage category. Aggressive cost control actions across the segment helped to mitigate the anticipated negative earnings impact from lower overall shipments and market-related downtime. EBITDA margin for the quarter was approximately 15% and on par with Q2 2019.

At the enterprise level, our operations in human resources leadership teams and production employees continue to keep all facilities operating despite the ongoing threat of COVID-19. The hygiene and safety protocols we instituted are serving us well and have been pivotal in keeping our employees healthy and safe while maintaining the uninterrupted