Mativ (MATV) 23 Feb 232022 Q4 Earnings call transcript

Welcome to Mativ's Fourth Quarter Earnings Conference Call. Hosting the call today for Mativ is Julie Schertell, Chief Executive Officer. She is joined by Andrew Wamser, Chief Financial Officer; and Mark Chekanow, Director of Investor Relations.

Today's call is being recorded and will be available for replay later this afternoon. At this time, all participants have been placed in a listen-only mode and the floor will be opened for your questions following the presentation. instructions] [Operator

my you the may now Mr. over to Sir, Chekanow. begin. pleasure is floor turn to It

Thank you joining and of our Investor good quarter morning. I'm at fourth Thank Mark Mativ. you earnings for XXXX us discuss Relations to results. Chekanow, Director

I'd from begin, you remind more by a Commission on comments the today's results to included Actual results number that forward-looking for which in call suggested XX-K detail include annual like Securities statements. comments are and of may in and we reports including Before filings, quarterly the conference report our differ discussed reasons, Form Form materially on in our XX-Q. these Exchange our

closest measures are stated, are in this release call included for are is available discussed presentation Reconciliations the ir.mativ.com, period. non-GAAP appendix financial our prior slides of of at operational earnings the and during to otherwise measures presentation. to as Unless today's GAAP the earnings the release. year website this are measures. Some comparisons the metric and financial financial these on measures The

results, will the SWM first slides were on reported the be the the combined discussing closed remind we the clarify and/or them, webcast company aspects To through Mativ we the at your these download Neenah how reflect own call pace interface. can period. and thus full You quarter some would fourth merger how everyone of using that reported slides and July during XXXX, results for the X, click

XXXX only SWM reported while the for legacy only and the of results merger, period full results. the after year the for half XXXX the the results all of results reflect reported However, reflect first combined

in reflect the year-over-year and sales result, profits. large and a Neenah operations the typically of increases year-over-year in reported resulted comparisons As addition

These results tables as shown earnings periods earnings basis. our full reconciliations. in in a on release and and illustrate figures our like-for-like how of are referring in this performance some though comments we'll well release, to call as today's prior the appendix compared to comparable provide to On year a presentation

in of Technical and segments, comprised SWM sure Neenah financial while the any legacy clarifications FBS. Advanced Papers As follow up Packaging results, Papers us Please legacy want disclosed, segment legacy or Products you to processes. comprised Materials the Neenah business our Advanced and ATM make for Mativ Engineered and segment understand reports results trends, Technical legacy Solutions, previously the FBS is and ATM, and two segment. Fine or SWM as further is Structures essentially with & of Fiber-Based reporting the Materials, essentially segment, needed we reporting

With the to that, turn Julie. I'll over call

Thanks morning, for and Mark. joining you today's everyone thank Good call.

have to cover today. We lot a

highlights, addition going what commentary and merger. some work we also to of see close our assessments of share and strategic This the view will stream In we results culmination a framework. environment the on our months rigorous normal the some of since color operating additional of on is current the aligned quarterly forward, newly

employees. We've team our direction this our shared and leadership with recently worked messaging and with board and our

now strong to it build help and investment establish Mativ to community bring a excited are the We identity. to

is with third start with $XX quarter fourth consistent results call, would EBITDA Let's be and million our indicated results. last QX quarter we that of we On where landed.

combined million This on of a represents EBITDA basis. the to year. in last XXXX that at also compared For Mativ puts quarter, growth XX% $XXX

I'd for a on highlights. our confident and of catalyst we the opportunities a in few profit like fourth term value ahead as cost Mativ. creation resilience portfolio, key touch to Additionally, synergies quarter remain longer near-term controllable

the solutions actions. by release delivered platforms organic growth our and in gains with liners line growth portfolio. of X% strong of this disciplined pricing another was growth strategy, with First, quarter Consistent protective currency driven top our the of highest constant

Second, has XXXX. a been throughout price cost versus theme

As manufacturers material past raw inflation and downstream. prices battle

the cost I'm During a new input pricing $XX increases pricing approaches million for basis throughout comparable quarter, on we agility XXXX. exceeded to pleased over company. pricing discipline with implemented and combined by as the the team's

we exiting the million over synergies, be expected execution, year will as XXXX. of in realized hit $XX on third, with And synergy little and P&L delivered the which most executed a of

We are capture. highly focused on synergy

control largely our As plan profit is factors. million improvement, regardless built-in synergy $XX our within and external of offers

high commend value navigating I very environment. and our opportunities leaders while passing parallel transformation operating global teams want a set dynamic our to macro office for of this

IT, We accounting our delivery, tremendous has of and discipline organizational at synergy integration our together. we've all when can a operations. HR disruption design thoughtful planning in six create with months made and to and I paid say off in risk executed can relatively Beyond scale to know smooth integration from confidently and first finance strides and of process facets a

softening customer fairly from supply near-term walls our excess inventory least economy. a manufacturers demands, uncertainties There are near-term and recession impacting signals built Beyond inflation the of direction is clouding destocking. from of of a coupled of in with during choppy amount inventories on chain drawdowns mixed at who indications visibility. the Concerns customers are and

inflation inputs confidence [Audio Gap] and we is some and the seems seeing to moderation resin prices and in pulp, the definitely influencing like energy. drivers have both a economic key In global of with climate. several we are be forecast some dynamic While time in respects, cooling

However, continued interest continued array increases, sentiment. indications of rate of

coming of uncertainty seeing are of customers down chain period levels, out supply demand reduced a availability. We also as and inventory take

capital. higher excess much in an of to Many built stock customers effort safety and supply normal levels assure carry to willingness than working are

concerns about chain supply reduce and to constraints availability excess working aggressively inventories. are As lessons, customers ease

Gap] the [Audio also customers Additionally, cautious economy. about are

we working this environment in capital internal this focusing reductions, Dip]. costs, For can us, means operating [Audio uncertain including control elements on

mixed consumers in of delaying indications customers, as some bag. pressures. areas filtration other at filter a response Looking be There demand in and inflation is to driven from spending softness replacements filtration transportation may was aftermarket trends

Release as water and demand sales sales these on seeing more driven filtration liners masks home process comps tough strong categories. are COVID up we with over air face ease, some delivered like performed would better products addition, a expect typically remained as very concerns COVID resilience quarter healthy industrial as XX%. we In filters in and

penetration and relies we adoption we over offering expected serving it and Our confident intact of XX% liners in the remain markets protective believe consumer global resilience portfolio challenged that will and this in resilient in volatility. as remain industrial to solution up we leader to are more of in the face consumer potential also a and release Similarly, far sales product continue environment. on be were diversified economic the of largely business a

some relatively but at destocking minimal impacts topic, from We various broad the customer summarize inventory as quarter saw softness a first before know see to categories in product level. respect and engineered are for in with remained and several impact in markets and the expect predictable across papers mostly again, demand to some by the others. quarter, resilience areas we destocking mid-year. demand, correlated And enterprise, to very end with fourth will product likely the normalizing the Also, which there peak we economically

segues favorite our XX% topics, that recession synergies. believe portfolio That resilience. over exhibit to one my into should of of continue We

create insurance Andy and will want policy executing In in a I with addition which to place merger, $XX profit shortly, XXXX. are the on of to solid highlights. plans represents for growth value million can synergies, elaborate I in long-term we an we but have hit cost the believe few

First, commitment XXXX million at $XX executed end we with to living up synergies. are our least to of

the first from or remain a potential executing perhaps XXXX. As create year for half of hit well We are further our the P&L as this you year close, full appealing of synergies they meaning profit actions run impact one in the track mid million will of on is as of is economic the as our half rate turbulence destocking recall, Realized within this that in a plan our well. control. over most $XX goals aspect buffer growth that these XXXX against and by

We synergy are on focused laser realization.

synergy me our successfully is execution gives our confidence far entire delivery thus Our incented company on in and achieving objectives. heavily

and that, to quarter's comment turn it over on review Andy to With XXXX. financials I'll the

Julie. Thanks,

reported thus results less year-over-year growth merge quarter, very referenced for fourth for meaningful. comparisons, SWM in the large Mark company legacy reflect Mativ making As but only reported and year, prior consolidated earlier, a the the

comments focus my trends, business a the business on like-for-like a current as basis or try comparable margin on trends and a for comparisons So will input cost to whole. versus price

on have addition, on a results basis first provided X% close their impact quarter the only million focus sales both we I fourth my year July reconciliations currency. extensive full X% with with only and Also, with to the after like-for-life In reported for quarter full reflect merged help the a the and total. and the comments for constant but quarter year, $XXX release were the comparisons earnings Fourth growth will and organic comparability, two currency limiting basis here at quarters. mostly SWM on business of the the legacy

The X% best metrics. and Julie as all was growth Price with from versus in performance between growth last growth year the X% protective split sales solutions, X% liners FBS drove in discussed. release and ATM coming increases growth

release. Those than detailing segment see forward the we and on to operating adjusted We EBITDA, by in and will reconcile operating center Going consolidated comments on our a profit GAAP rather to operating profit then basis. you'll EBITDA. adjusted profit EBITDA and

XXX the gains fourth were $XX and softer up Growth cost this on points. by pressures These basis offset and we have and inflationary EBITDA Overall, in was and margin favorable with by pressures. was distribution. inflationary a performance the $XX adjusted over of basis, For partially comparable fourth over we on recouping million were a impact strides a cost. expansion of versus quarter price great from XX% made like of encouraging margin some to price standpoint year driven other volumes perspective freight quarter million

quarter, Resins and some costs more again, actions. approximately cost increases up give but pricing of perspective the up nearly were plastics offset pulp million with the nearly on increased energy we these $XX were some input of fourth and $XX we than $XX the million. inflation total saw another and million, magnitude To in that fiber

like-for-like adjusted was margin by with ATM cost. the price up Looking at the the with in was expansion margin points. versus view, of EBITDA improvement fourth The favorable XXX segments XX% driven quarter basis same primarily

was basis was XXX EBITDA Price margin favorable with For expansion X% of FDS, up well. points. adjusted here as cost

across expansion that margin contributed both highlight stage synergies segments. to want also to We SG&A early

$XX XX% fixed Moving approximately to expense approximately was set is non-operating of interest million quarter debt in our the total items, rates. at and

this adjusted million sheet was on normally we expenses that $X in the in line Euro through balance we of non-cash mark-to-market for forward note expense and like the wouldn't material This XXXX, during item on our most Based EPS Repeat quarter. quarter. had These the exposures $X.XX in curve, fourth quarter while in was the expenses XXXX, euro quarter. the comment expect line been entries. item, are bottom favorable impacted moderately but we Other reversed don't rise this the the

basis. year Highlighting just a the million comparable sales for and XX%. XX% few even also across was full was on metrics for both organic EBITDA growth and up Constant currency was segments adjusted the XXX fairly year a

December net lower in X.Xx agreement our the expectations of Recall initiated leverage leverage benefited top terms EBITDA. of we trailing that synergies on borrowing from month we to net program Net with call. the planned line year our for for credit our credit last includes Lastly, costs. combined the on in our XX facility, adjustment securitization leverage the receivables at ended discussed the

$XX through from our XXXX. The past the XXXX, the executed of an figures $XX in just taken of December. incremental XXXX. a expected outline reference, As take from end we taken $X let’s of these hit reductions. we leaves is P&L To run in from where million second of flow XXXX for the moment these This half from another synergy of XXXX incremental reconcile SG&A recap rate To synergies $XX delivery. majority realization on actions million already we comprised the it look XXXX $XX synergy actions were and continued exit stand this million help in those through the of million to by XXXX, million million synergies execution synergy $XX into

that result bringing $XX-plus in realization XXXX gives Taking year, this of of the synergies $XX the a well coupled in expect million actions that as million and closing, of Hopefully we synergy in with account is synergy with we’d execution originally we of continued and chain execute said million supply to be optimization It timing Next, year mix flow to of SG&A color another $XX synergies. within a first consistent on through our as timing. the level procurement half in incremental projects, the we second half expectations some XXXX. outlined. will half

give some have executed. of To examples early savings we

executive We public duplicative costs. have the of elimination and other positions company

third-party well some insurance services procurement IT elimination of tax, consolidation, optimization. as and professional savings, redundant and support that freight We legal, benefits HR, have as

on are Our opportunities originally teams diligently new keep pipeline and implementation. the commercial synergies to ideas for and identify only execute savings targeted building working not of but bedding and a cost also

costs, At input throughout multi-year current to should XXXX favorable versus these throughout and respect XXXX. costs commodity XXXX. resins polypropylene of most With be be like are prior are expected expected trend off lower. industry based to appear prices retreated in forecasts stable coming resin year fairly to to levels, their Pulp and be highs on

they second XXXX. meaningfully half of the be year However, until to lower aren’t projected prior versus

caused Energy volatility. especially costs have also Russia-Ukraine conflict moderated, substantial Europe where the in

off that pleased levels all spent including in other expect backed of locked increases. $XXX we and not We for but our in of we as energy we much and at they XXXX to peak did lock are XXXX. needs in freight since have inflation, of million in chemicals, cost materials, significantly, compared Factoring still have higher prices energy approximately see aspects XXXX

expect we with to pricing more cover However, those actions. than increases

generated clear be deliver optimistic we the we of growth that solid million to in profit are in EBITDA that combined $XXX can top on want XXXX. we We that

broader the destocking We have level First, at baseline synergies near-term outlook. to a around demand $XX noted, as the a baseline million and around nearly XXXX a put we it of would consider $XXX those challenge EBITDA. macro million incremental the this provide assumption, range reasonable of is given this uncertainty however,

we And just than be to factors we don’t limited price inflation increases. as offset Considering aggressive cost with all also we or and I would more expect input these referenced, visibility, want too at or Rather, quarter an sight. conservative this be once moment. first of line better EBITDA have full might year the potentially better clarify mid-year for after outlook opportunity a too to

perspective, and the some lowest in of the expect peak of inefficiencies factoring first negative the will inventories as quarterly first year isolated would is experience EBITDA fourth impact higher a EBITDA destocking, in a few which rate From the quarter at of we quarter, impact indicative the the run flow business to be following quarters. likely P&L. Furthermore, a on did we through quarter cost the during results plants have not

which business, the the inefficiencies thus Lastly, which in contribute related there been some age benefits strikes resulted EP sales efforts our in increase have retirement France lost will within to government’s quarter the soft and to also requirements, first quarter. in to far a

year it’s While we ordinarily would to the not comment on analyst estimates, in estimate these million say circumstances fair full we $XXX of consensus reasonable. EBITDA think XXXX nearly that appears

adjusted model and offer we estimate high help few translate EBITDA a flow. adjusted help To with estimates level an also into earnings building, to cash

amortization This metrics. of expected be was depreciation accounting of on to is purchase latest which exclude as we normally up stepped PP&E, approximately adjusted pure million valuations merger $XXX part the accounting. First, financial based our excludes our from of figure

expected item excluded another which is In million. $XX from addition, to non-cash adjusted approximately compensation expense, be stock-based EBITDA is

would profit, totalling items these adjusted two $XXX So million. go operating from EBITDA deduct you to to non-cash

forward debt structure, based $XXX million. current of and our on should interest rates expense be just Second, of north

accounting In securitization addition, due expense. million to interest actually of be approximately treatment new recorded additional program, our the $X in will of other receivable

euro. Additional of on are to components are expected based and forward rates to not material the difficult income currently expense be but from project other

to $X working shares. to tax range, share low and costs. flow, input range normalized with respect sales deflating XXXX, rate a expect in expect muted be XX more potentially a capital XX% would of we JV million cash in we Lastly, in income approximately growth With the the would count and especially million

can $XX-plus approximately million. CapEx, For assume you

wrap to up. back Now Julie to

Andy. Thanks,

up, felt attributes articulating we our the some our employees, was be. wrap minutes around legacy to like The for highlighting that resources direction stakeholders, are providing customers, a identity of SWM of dedicated for and work significant we inspiration suppliers, shared Before Since to all and many businesses our strategy Neenah our strategy we what we the for and spend course, especially refining identity. aspire and done have we few the we’ve closed, and the I’d paramount who enterprise of to Mativ merger investors.

we Our growth our are and but statements, we’ll cultural the best core North as it, pillars, platforms. through generally talk going you call self-explanatory, includes how values can ambition forward. themes We believe understand Star, strategic them these advantages, briefly we manage will so business

both complex our bold, innovative This specialty customers’ companies solutions First, engineering the that is this for ambitious growth heart I premium customers’ by our aim driving solve consistently statement long our be in model legacy believe business our design to challenges. the we in for been engineering global that providing leader of has materials, inspiration captures and what challenges. the and solutions complex underlying solve

Mativ capabilities an design variety premium of of has using solutions across to materials a a and set and technologies set expanded diverse of industries applications.

competitive The core ambitions. we collaboration, win. at achieve supply second or global everything our our customers and approach Ultimately, material technologies, the science these will chain customer advantages consider capabilities. do leveraging our our center putting robust our how across element to is we advantages ability know-how underscore extensive these our diverse We to manufacturing tandem in and of

meaning which pillars, which The drive Simply put, focus are all value tie These our our a strategic into decisions. imperatives lean our creation, guide together. efforts prioritization third have we elements will is and diverse are business, key. growth, strategic

streamline in Mativ’s initiatives best opportunities and focus all where invest identify efforts increase stakeholders. We our the projects for execute see will strategies in and to growth, and we to value

in arrived inspiration speaks be. aspire things prioritized most safety, strong important for be when These was at to straightforward task, to how values who we happen. we bias incredible our is and would people action speak down values achieve overarching will them simple, the that our We to to of and work to culture down our to curious, make are and Narrowing to together all no center our that have get the and boiled values work a customers of goals. find up our but are we a voice sleeves five together and who or done. rolling at embody we Fourth it our and easy customers

the to drive motivation of bring we Our people every business and the are cultural our these emblematic success and passion the business values the day. of

this internally, important bias review for meaningful for North and and for for believe these investments our our our investment will are platforms. most This extremely believe the I one to growth elements alignment part Star I of portfolio While growth. important to our and you of time is us with community on where our our how insights we strategy provides approach

So the let’s part shift to of that strategy. enterprise

As two release protective and divided complimentary segments packaging liners, comments these materials filtration, align attractive know, They’re technical focuses the by profitable. unequivocally are industrials, on we ways. begin specialty I’ll categories all And healthcare many papers papers. Advanced operations our and and of fiber-based in with and categories. seven solutions these solutions, while you is engineering saying into and that

instance, science material and capabilities. technologies they common For assets, share

profiles, at through they to market all dynamics financial expected imagine segments categories tailored as and However, growth different both That trajectories you different actions. might and and management profitably have and grow, said, philosophies. various competitive landscapes required are

trends flow all efficient to generate growth to for more continue each and and the leverage areas sustainable demand cash eco-friendly has product mature returns, as such increasing highlight FBS the applications catalysts our and each within area, I’d strong Without simply emerging solutions. that rehashing potential

margin and industrials prospects at differentiate growth the we focus these win and areas to and high opportunities left real where optimizing in solid expansion some platforms, is strength we products of relationships. the lastly, which And outlooks, opportunities and side will accelerated our mix balance operate are pyramid are from in focusing believe most our pyramid There the customer healthcare, pockets the efforts. of marketplace. the growth are the we of and the revenue areas On value growth on of and our top that see significant and

the for filtration, and of areas, strong consistently as performance films adhesive paint three global liners water operate specialty global and usage such with These protection solutions markets growing high and materials. increasing liners demand industrial release auto cleaner of release and trends process, like across air, and protective variety a mega premium

towards expansions, forward, acquisitions opportunities be product as be new these profitable we on while Mativ value Going platforms like will opportunities all our the growth bolt-on investments rigorously, initiatives most capacity growth creation evaluated catalyst. sharpen will growth potential and focus across attractive likely weighted and

on investing as past pleased which the compete. in both combined the potential markets of Mativ, in we we in focused currently While with companies are growth strategies adjacencies the were

categories. our to organic M&A strategies that will that strategies to focused current into unit-led we so were on accelerate diversify can our And new shift in growth markets, using business

approach end Bottom and investing line, our full toward a portfolios our forward. in priorities to as I first helped alignment, and we strategic three aggressively see XXXX, our successful can and clarify strategic these our of going results how platforms. by enter combined amplify expect sales you manage company GDP plus execution. total in complete markets, us with long-term can our growth long-term growth a hope cornerstone year We we given growing Mativ waiting messages together

just key taking to recap So points takeaways. I’ll reiterate a few questions, the before

XXXX would. the on as hit and said QX we we exiting would the we synergy we we plan EBITDA, we executed said, in First,

half adding in XXXX. impacts gives demand combined see to reasonable a $XXX first range our the although de-stocking baseline XXXX a to believe EBITDA how depending total million synergy macro profit we reiterate, factors challenging $XX with in Second, realizations see growth for and million year. incremental for outcomes And quarter, the first of of a on XXXX we of we

catalyst in focus those are and to substantial further we excited opportunities the ahead rich In we And has confident world road to holds. what head company achievable bottom plan sharpen lean our future growth while profitability. such and uncertainties, macro fourth, a with our New the are full we values clarifying our delivering Year. savings. as of encouraged aligned into The In ambition, about into to to unified our our value may within drive Third, is the factors platforms have influence results, growth, synergy top control is are we and creation. and from strategic drive and pillars, a

our concludes open line Please remarks. the That prepared questions. for

you. Thank

start first comes Tanwanteng We Our will from Instructions] Securities. from question session. today’s now Jon [Operator today CJS Q&A

line is Your now open.

give for and on one if But Hi. for my any color thank sounds more given a all a us your gave. questions. magnitude and is going first both all and pricing there. is perspective taking you efforts in guys first could the could you you’re little margin you very My the information how underlying one quarter. each Good detail revenue on the expecting – be, like you on sequential to it the a more especially first Thank detailed which were expected just you decline synergy morning. if impacted helpful. provide is, These I was segment just wondering

the probably Yes. understand recognize, Jon if And little so I a anything I there’s glitch to would extra we’re there’s – add and I questions, I’ll bit should miss. take happy those. I also of in might start that call, Andy then audio any

strike are from and construction in impact, the of industrials QX. revenue our in sequential assets mentioned maybe As will areas. impact particularly some on we’re mean, slight far those the that standpoint, improvement, are we a France sequential and feeling destocking and as improvement out. I be are we paper sold There versus of expecting

the Europe, would we long-term a range. some it’s QX of expecting in year and normalization. that our for in that combination some So normalization think QX, And I probably France, expect would in are we about destocking QX, softening from and standpoint, versus soft strike softer the that last bottom maybe XX% if of than line through a

I would Yes, agree.

On EBITDA.

very improving questions recover helpful. in mentioned recovery versus inflation there pricing and year. QX Thank forecasted is that great. much net target Two you this you. How in has you did a XXXX? for the there. That’s Okay, Andy, around

do target over $XX well. and We recover this the for recovered over and for about year a Yes. $XX have recovered over we QX In needed full we recovered we as year million to million.

We’re expecting to in we’re some over recover input costs, in XXXX. moderation but again expecting

I costs would the expect front look comments think input some you half, year-over-year, my the an when of going of million. about of that $XXX at of the of in about of pulp, we order in And we order Yes. it’s that buckets the mentioned magnitude different some magnitude energy, to particularly be of when sort

that go we have to terms know the price. get of to do in So we magnitude of the order

Okay. an all? And at is recovery target there over

I into what when modest we we for profile expect would is, a go about Well, marginal would think say as we margin XXXX. XXXX, the improvement

So that then you if be actions combination of synergies sort of pricing additional both and will a will.

the color best So that’s of probably give sort can I you.

over they thing recovery deliver Yes. I very onto got but moderate about synergies, minimal margin as to and same pricing this over from on and would moderate, continue then think a recovery, expecting start the on we hold with pricing and mean some I of minimal the Jon. recovery disciplines or place year of we over minimal – put we’re lot a standpoint. the a in to

really we just Jon around saw margin say, sort closed we were the And we margins recovery would think were was that FBS XX%. about sort of of one as I thing out ATM QX, XX%, of that

representative and of needed we we of and year-over-year sort that was knew of quarter that actions that some So it. happy were best pricing would delivered the the sort be fourth we’re the of

depreciations.com. change we as amortization accounting That’s color helpful. Any around all forward? and Thanks. the I to the go appreciate Great. the at purchase also

about to It’s million. million $XX $XX

integration just Julie, identified – Yes. beyond And on about ones ask the longer-term relief. synergies talked but going you vertical update give the the within great. potential I’m finally, then them. revenue cost you’ve Okay, this us an to can every quarter,

Yes.

of topics. my One favorite

million. $XX at design. run the of rate So as of synergies – Most a org most expectation. of ended we mentioned, and SG&A we are XXXX was That our early that

through $XX least flow procurement, another P&L this $XX execute at $XX early the to year. That’ll through by Some mid-year. million we’ll million million

So those chain. synergies, They heavy supply procurement our begin and now to are are which year. heavy short-term primarily procurement this they’re in heavy with, SG&A were

synergies. that materials potentially our that buy assets centered and a lot are particularly longer outside to from that technologies capabilities maximize past those say one we former we And of technical we’re internalize footprint the where customers the existing now, a didn’t the operate to well I’d the reduce customers. opportunities that with serve as but or likely then Longer-term, had technologies, optimization, companies there’s some and our are to to where materialize, today shared may those one around right key revenue customers, take consolidation, in would relationship extended profitability with we those – we process that as our capabilities, they be of the of in synergies working now innovation there’s other There’s insourcing have synergies the have on have costs. but how revenue the

of tracking, are opportunities What about a from particularly we this environment efforts. synergies, love of transformation sight lot standpoint. is really and have clear a in that and uncertain that line I our really they short-term a So leading rigorous long-term those to delivery, within control office is

as during economic to deliver policy we of kind this even continue consider environment. I can synergies an insurance tough So that

question Thank Sidoti. from Mitra from now you. next We’ll Ramgopal take our

Your line is now open.

detail and provided. for the Yes. appreciate again, taking Hi. Good questions I morning. the Thanks really

I lot great that and First pricing recoup facing? to environment, to additional and are face recovering slowing more the potential just you’re you considering on demand softness, how mentioned still confident of able actions the terms the be of inflationary had surcharges. a additional or than you’ll past costs in continue year one, price you’ve or costs, of the In you’ve higher success increases this know you’re

I about we’re demand, And now. have things. is and consumer our portfolio. feeling is engineered very primarily elements couple some still right a and liners demand but as And When solutions within process think I stable we’re tell would release protective and very feeling I softness, there products paper and think we strong air and water Yes, you demand. destocking stable filtration

where about less in a business, So feeling third America. North Europe, in in more we’re softness, so of it’s our heavily

and job great transparency team So that synergies, tracking to pricing contract and we our of in continue pricing. important reduce the our it’s that increasing from discipline items of mix opportunities building we is the agility, do has terms, this with customers a standpoint. which and than I we our understand how flex flex have one think done topic modifiers, a with pricing we and increasing other number continued And

we as and particularly solutions. there’s very pricing. sticky catalysts some a have papers, sticky while in great have a feel specialty technical very softness, So also packaging we provides protective where tend some to we pricing Anywhere we well, barrier, that will know solution

environment would so And demonstrate our be in to to overtime we’ve onto I pricing. expect different well. hold this ability as nothing

new year. million very that’s Okay. just the I cetera? just if on the side. traction just you're et you from Thanks. highlighted really synergy assume get And synergies, to or on on any revenue And here a geographies, That’s cross-selling this cost helpful. $XX expect seeing side, curious

$XX million Yes, the the is on side. cost

at of kinds where a can they're a opportunities qualification. little little opportunities and solutions they're previously provide we us cross-selling portfolio customer of On the because longer say take a term different really process a our in they'll bit bit longer standalone now, and to I'd but little technology, complimentary side, recognize. more companies, those revenue little primarily much more, And longer – bit we from take but requires than could technology that's

little us opportunity products and of us team those is on. designing but a really for extremely and a one bit customers qualifying then it's with focused time, take will So the exciting our

part would one revenue about to point is that when $XX the just we thing I other that. maybe add talked of synergies, synergies were in million And not

would So, above something this would that. that offer beyond be and

$XX focused get that we getting just really beyond commenting synergies and on on first additional million that we're after once threshold. to So that then

the of you in that mentioned up. Julie, about you environment, at seeing higher Would is not clearing of there move being Okay. the be potential sure strategy higher? you part this touch interest economically think if opportunities again, to and there number terms in rate a XX% of obviously for M&A resilient. looking you'll portfolio be even on consideration, you're especially sort that's and out then could something I the And maybe of evaluations, M&A, environment mentioned on Thanks that in there

clearly in mean, one in as number over that we demonstrated now priority continue that use XXXX cash be to Yes, focus is I to QX. de-levering. right for to well. on We'll continue our And time, going of

was dependent our would As I heavily and strategy, both strategy we talked categories. on on tell you companies past in about the new into M&A diversifying

strong. compete we are which really today in categories The

underlying XX% strong growth. has a have Over plus portfolio. of our portfolio We GDP market

So in. be that's to spot a great

those be platforms aligned M&A, about growth that think in we As mentioned. it future, will those in today and I more really the we compete categories where biased three towards

liners, solutions, that's protective and release So filtration.

resilient those those are areas. in our most economic Over we some growth time, as of areas, accelerate

continue resiliency well. to Our as grow will

the bolt-on investments high we'll biasing well both by our So that's organic how those accelerators acquisitions accelerators. in high growth as in as future, of growth there type get growth those towards

very improve thanks. Okay, forward. the and expect challenging be to obviously you is quarter And you the finally, going first going mentioned to then cadence

second the the you're be half, gives the first what on better heightened half? sort much going see confidence than of in that you it'll what Just to

take to if you I'll the add Yes, first Julie, that. I'll take on. want one,

everyone's I we that when to strong. saying think to talk So, is be business leaders, going the universally, demand unit pretty the

of think we when sort about some is inventory in talked it destocking, of destocking. a the I softness QX, really

as really France, So continue. some that. that ran I that we when the I don't to in isolate there we are one-off then And had, of of I sort year say about sort inefficiencies would into strikes expect of just, we it do to that having then also start also QX, these of and the which some think we're

spoke, destocking as into November about thought coming seen when probably from I we bit the we we've talk QX and it's comments well. heard something little are about think we But into, something even coming and saw that I you've others in a think

of businesses. growth solutions, feel But we in outlook we really the that in feel protective We those terms liners, end filtration, really at confident what release look when of terms all confident markets is.

year, I say front more environment half input to we half. second on where think about environment, favorable the second should the is when think, than input the we were when of I much the be thing look get the the would you

of So in be the but at should we look then front going half, look so energy will the be NBSK, into up when the you as year-over-year, more materials that should be half year. favorable back like year-over-year, up the pulp,

second we input a of of see we good setting good have about environment. half, with when favorable sort could complex, up where think the sort So a you entire demand

key I is ramp in. Andy elements. Yes, I the add the would on addition The of only continue like think hit one potential to to percentages

you over contracts, year. the ramp when in think over ramp chain efficiencies in So year, will supply procurement and the capabilities about they'll

higher continue have well run year the at than as the we'll year of the the to build rate end throughout and out start So with. a that year we

great. again It XX you're merger the done. of No, Okay. rest throughout over next and that's set Again growth year to look taking like Thanks up nicely months, the questions. the looks the so getting forward itself. I'm congratulations. for the

Thanks Mitra.

a have now up Jon from from Securities. follow We question Tanwanteng CJS

line is open. Your

use up. you right, spending? second follow flow assuming your recovery in the of how was for obviously do for through in there Just restructuring particular expectations through our potential All cash or year? capital half, the just the costs working in any capital and what see pocket thanks cash I the cash the year lumpiness through also and integration and is wondering QX

Sure.

I would flow and talk terms flow, to the elements I about, tax free a some et free just of, the think JVs, the million. blend talked I the we assumptions say, itself the of around that of about about interest, when when $XXX would cash cetera, cash when really about around in walk So depreciation, really

when going year. time nothing it's so of was one charges, like coming in it the to about sort you I the be think going it's back to half through, continued of And not restructuring

So it's not going be to meaningful.

as we working a let's between place, that in I magnitude of would think because big million don't the here order or say, we of that $XX be, drag see, today. put sit this year. On would receivables $XX actually million of I a capital, receivable facility

be would certainly potentially of then for think I headwind then dynamics talked down, of year. cost half comments going but thinking about being the years because as I the front in And close in back the in about half of about terms tailwind the we year, then of inventories the would my a the to mentioned think input least I $XX of CapEx, million that about year-over-year. the And

Understood. debt your point? expecting are just the capital And flow from sentiment that it the then pay using it using to higher given people versus rates, is cash elsewhere and important at interest is longer much excess more how fed for down this

year. after an so, net five, a focus, on to for focused as confident we in would three ended very be what that's expect to debt XXXX abnormal to between We year flow we're out the down cash three close would that is expect three and Well, XXXX. in that. continue at so we're year pay in this and leverage seven we And

Okay. Got it. Thank you.

Thanks Jon.

questions. to further no remarks. some hand time, closing for At are over There I this will now Julie back

We Yes. look time appreciate to soon. Thank you today. you for your questions interest forward Good and and afternoon. your talking to

That concludes earnings Mativ’s release. XQ today's XXXX

disconnect now may lines. your You