Magnera (MAGN) 4 May 232023 Q1 Earnings call transcript

Good day, and welcome to the Glatfelter's Q1 2023 Earnings Release Conference Call. Today's conference is being recorded. At this time I'd like to turn the conference over to Mr. Ramesh Shettigar. Please go ahead.

Jennifer. you, Thank welcome call. and XXXX quarter first Good to conference earnings morning Glatfelter's This Chief Vice Treasurer. Senior is Shettigar Ramesh President Financial and Officer

On Executive our Fahnemann, present myself. the results call Thomas is first President of Officer quarter Chief Glatfelter and and to

presentation, begin a have our few Before reminders. I we standard

earnings term included to financial and our reconciliation measures. release During the of this in our well slides. as these we morning, earnings call measures GAAP-based A is results as today's use financial investor the will adjusted other in non-GAAP

We to will also are make forward-looking statements risks today that subject and uncertainties.

speak XX-K the differ as on to could we and Our filed XXXX obligation of are factors our release cause and materially available from Form update today website, that only disclose them. no with statements undertake SEC these results today's to forward-looking actual our These statements.

to I will Thomas. call turn the now over

and Ramesh. call to completed call a actions quarter XXXX. progress It's Hello, performance you, focus quarter today. throughout a of strategy financial several first our company. begin sole Thank to of you conference the everyone we improving with to the have for highlighting with that long-term I'll pleasure the welcome real meaningful Glatfelter's turnaround be by today's

strong million the we performance operating quarter, largely fourth of the first $X.X Airlaid the In million to by our income our and Composite of achieved adjusted $X.X improved compared by XXXX, segments. Fiber EBITDA quarter driven and of

continue of million adjusted in environment our quarter our first these in continued anticipate we our to Despite $XXX XXXX. and we create we ability our to that annual challenging EBITDA for of in for conditions confident will by on in encouraged markets the results remain are remainder we year. the inflationary million to deliver $XXX guidance headwinds, a operate While very macroeconomic volatility

financial contributed accomplishments I turnaround of Ramesh quarter's progressing a Before few to cover want that the to highlights, our addresses key strategy.

company to refinancing the long-term while capitalized strategy. be to successfully providing the strongly steps very flexibility for and the that the positions necessary First, short- securing financial well completed needed we our execute

no maturity of the of will upgrade the The result, viewed due was an of banking a facility system prior in XXXX. rating. material global come credit completion liquidity the As recent favorably debt given Moody's timely, pressures company's quite credit September in this resulting and of revolving to by was our refinancing the in

despite the Composite mix. segments of performance the environment. remained the and to by In economic less did not difficult increased the quarter, Materials a we segment, in demonstrated Spunlace to Second, sequential profitability, increase fourth profitability strong favorable but Airlaid a Fibers quarter-over-quarter see growth a compared product as continued and volumes due the

is we are to within address dynamic the evaluated direct that me result, I a nearly having As highlight segment. action a evaluating is profitability ongoing company one last of the demand now The result needs the the leading of ways since eight the months. carefully and business for

chain, supply Senior into actions early accountability Officer. global have As early and who President, senior performance several point functions communicated of took to will Vice functions. October, Boris the April, Chief as will team around leadership innovation Glatfelter These the the commercial of key to a Operating Illetschko, be report for in reorganize joining I single company's

and performance. functions across and this long-term the business structure core our the Boris' of and strengthen of this portfolio effective each for product and a change, we be will of as As Boris, under for fulsome near- to will categories. the forming reporting I'm address responsible confident part with management integrated which decision-making and pricing, integration accelerate financial new we into distribution along marketing, also a profitability the continue product are leadership function, product strategy company's

performance. Ramesh? additional will provide financial details our on Ramesh first quarter now

summary quarter profitability compared of our mainly to a Thank you, by results. $XX.X or presentation million EBITDA improved Fibers was Adjusted Thomas. XXXX, Slide our driven X of in million higher investor Materials first QX Airlaid provides of $X.X segments. Composite the and

year-over-year pressures. was due mainly to and year taken pass-through This X.X helping by along to million EBITDA Airlaid offset higher On prices actions a energy million, from respectively. Composite Materials' X.X and with and last raw higher basis, resulting pricing Fibers was selling surcharges, provisions multiple material inflationary

pricing significantly of Spunlace match EBITDA production was year-over-year customer slightly typical shipments and demand by and offset reduced reduction lower lower were Adjusted $XXX,XXX primarily by although fully negative free actions. driven for to capital. first working cash quarter, lower by XXXX, improved versus and QX cost not flow, as the

agreement in maximum of first a threshold the calculated as the of at times leverage accordance was covenants end with times. quarter, X.XX versus bank Our X the our new of

stemming as a well period last year mainly from first basis Materials and prices energy without $XX pass-throughs selling cost results Slide Airlaid quarter initiated X% surcharges, summary million, of X, currency higher same for shows price were of up constant on arrangements. Revenues as for segment. approximately contractual versus the a increases customers by the such driven

manage disruptions shipments potential due favorable XXXX. tabletop by hygiene beginning category at customers levels The certain was offset primarily to year-over-year precaution mix. slowing Volume X% built in categories, as in was but up due of chain energy by and supply lower to mostly for the the hygiene year-end, order a patterns weaker inventory primarily earnings and decline impact to was

decline serve assets was in larger Tabletop North XXXX our were America, customers. constrained some and of to primarily unable our in where

in to we this volume regain of expect However, tabletop some XXXX.

price was Our favorable energy allowed our pricing gap us input offset as cost to inflation. and actions cost

to demand, prior tabletop categories. year hygiene million $X.X by and in to lower production unfavorable customer match were the due primarily Operations versus

hedging, related of weakening earnings Canadian positively and primarily currency the from by dollar. exchange impacted $XXX,XXX Foreign

dynamic segment, successfully half more have of the and first results revenues pricing energy coupled last the actions lower to on as $XX surcharges taken quarter model, by despite increase Total XX% inflation. million basis, combat pricing shows we volume Composite with the The than up a revenue quarter multiple currency versus X, summary segment. constant a a due Slide selling Fibers converted of for mainly same X% higher in XXXX to to year. were base prices of was being revenue

the Overall, Volumes in favorable lower volume demand period additionally lower were noting, conditions. product net the actions million. from prices by were overall volumes softening taken helped of Russia worth unfavorably resulting and challenging Ukraine year, same Wallcover results all higher shipments in the to to were market by impacted compared It to $X.X impact pricing profitability. is due and impacted categories that conflict. XXXX, the improve segment's and loss last

the last year. raw overall some lowered quarter volume was On the freight key this and energy, and million pressures. sequential lower helping continue basis, earnings regain of expect a to of due price to Higher materials in versus us $X.X inflation XXXX, trend lost pricing million by by $X.X same we

consumption the Operations related well energy and favorable million other to as strategy, reduced were match by to lower turnaround by demand. customer headcount as production $X.X actions, from driven

exchange in cost was creating UK a footprint. the manufacturing pound, benefit Foreign favorable $X.X weaker million our from British

pricing shows partially a shipments down the higher actions X% but of segment. for approximately coming $XX address from summary X, lower basis results million XX%, constant of first quarter of on offset taken to currency by inflation. Slide by selling Spunlace prices a driven Revenues were

access in margin from China. imports as decline our and volume the decline, customers wipes. market have lower-cost Turkey product cheaper of well most to where of this Within hygiene European category, as lower was from XX% alternatives the was Approximately the and

these We improve asset competitiveness, cost as to profitability. options and all are segment's exploring to this our critical utilization are

category to from the health continue end see category. demand peak critical the On growing in drapes -- the the market return where to volume in seen mainly branded of we expect We offset levels our the goal to Sontara this side, during care pandemic, the and and to gowns. decline is not was erosion it the do cleaning

synthetic Raw other inflation fibers. energy pulp, significant were to material, levels. and base pressures $X.X driven unfavorable manage items lower to other paper was a unfavorable mainly Operations net million million FX inflationary in inventory production and $X.X due by continued and

to However, this headcount its lower the cost was since structure. actions, reflecting spending acquiring taken personnel on business manage

Slide X, costs other financial and shows corporate items.

services, higher $X.X versus driven higher were our by historical last same period costs with professional levels. corporate million accruals mostly line quarter, incentive first for but the the by spending and For year in

impacted interest QX. rates. flow was net $X a the million selling by higher loan driven quarter tax term three cash our Canadian higher flow of our a XXXX. was approximately higher income usage months will adjusted cash Cash receivables by was on increase capital XXXX, Slide as Slightly was capital lower and prices versus refund $X X, first further the million, expenditures, and higher as $XX withholding higher same from QX our were cash mainly year primarily about million. In Cash in UK This flow QX accounts the account shows working interest period positively by free by summary. elevated XXXX earnings last lower at XXXX. in elevated and reflecting of million initiated by tax in $X.X next received This of taxes end new increased.

recently some upcoming maturity. series of and We liquidity sheet address shows completed debt metrics. to a XX our Slide transactions balance

As our loan a six-year million part loan of to million existing €XXX that this refinancing, €XXX we senior executed maturing largely February term repay XXXX. in used was secured term

unused which additional our of total more company. the of In needs combination liquidity. covenants, through meet revolver a thereby, was addition, creating gaining also existing to capacity, ongoing amended This we downsizing achieved the the revolver and flexible largely but was

covenant million available bank and leverage had credit end. ratio agreement as three we was of as of approximately Our liquidity at quarter new the March under calculated XXst times $XXX

cash in reaffirming last expectations, guidance our to year our with flow was Slide XX Overall, EBITDA of line of for we million and is provided a million $XXX as and XXXX. EBITDA our QX full therefore, quarter. summary guidance $XXX are

our $XX cash be the to million. cash from following; and to first between approximately projection costs $XX the to quarter; flow taxes capital completed items, expect million $XX achieve are million be expense of cash refinancing turnaround $XX and and $XX strategy; expenditures we includes Regarding working and expect interest $XX $XX capital million; expected latest from million to million cash of which the between in of usage interest million, finally the we

I This turn will now call Thomas. my back prepared the concludes remarks. to

Ramesh. Throughout important spoken improving two shortly our I've performance. arriving about and at it's the commissioned in Glatfelter strategy last quarters, turnaround you after Thank the financial I

and has I'm quarter efforts the XXXX pleased As began seeing of this quite that the Ramesh XXXX. team noted, the fourth momentum carried early we into our of progress during

become achieve typical given work impacts its any that to As is line results. bottom our harder of turnaround, to significance remains the with will the exponentially

innovate to to actively make restoring fundamental I'm investor plan and results said, on are are continue of as that overall the for further Glatfelter's six with Also pleased a sustainable core unique generating proposition very solutions. That their report remain strategy progress, components to confidence. products track the to our product attributes assessing each clearly that the continues to we as value turnaround to strengthen we defined

I recently team my to of meet the and of firsthand had hear with number key year's leaders at and company This meaningful the along them. event it a was of to from our Glatfelter our is about cross-functional with one opportunity opportunity me leading to shows. industry's trade suppliers a provided vision what particularly important for the the stakeholders to as share key customers

weeks with my discussions, As two takeaways. four significant I nearly on left reflected I of

our First, our supply long-standing products unique value comes security attributes, Glatfelter the from and the which competition, differentiate the way to continue of our customer brand. high-quality customers service with themselves that product in given

and prevail. as us that we growing from expectations overall world the our improving gap Glatfelter for not of is same is commitment operations truly through customers' regions remain high to efficiencies. level particularly of This value managing very investments products important operational our sustainable that targeted headwinds as the the achieve may face cost capital while ongoing the challenging competition in economic Second, price making

commercial key leadership we chain my organizational step will the made provide of the into a overall the our financial April. evolution accountability performance. and Third, single Integrating discussions further in and natural point with recent reinforce of our next stakeholders in supply changes organization

valuable took reorganization, expand that of to areas insights, formation bring the first the of growth. our will who a we of perspectives Also part Glatfelter's of to to pricing, diverse as And product cross-functional and include a long-term for in our history function capabilities the broader expand essential in last, further product the time senior executive opportunity analytics. the market financial are rigorous base management team the existing leaders

strengthen and perspectives in and I as in senior continues. leveraging team key these gaining Glatfelter's key through discussions with turnaround will newly build our ongoing that stakeholders the the on leadership the performance expanded along strategy, steadfast as priorities insights results. further continue we confident with year various demonstrated first stakeholders, remain various of and our by I'm delivering quarter financial quarter-over-quarter included our to our actions, brand our My our from

the will call now open I questions. for

Instructions] with [Operator go you. Thank Capital. to Wool Josh We'll Carlson first

for taking question. Thomas, Ramesh, Thanks my good morning.

Good Josh. morning,

Josh. morning, Good

a in progressed at I you of least QX. few the the month tease destocking out can Hi. quarter, Specific trends experienced want demand? to how start around over directionally us into also underlying to April? with trends And impact maybe quarter you shipment the questions volume the describe help

customers I inventory in at our actually have energy Again I Europe Yes. that phenomenon trends look about Okay. very really chain Josh, think and we now you in XXXX. concerned supply were a are one on to threefold. right mean situation lot of seeing volume more the is put interruptions, therefore,

we eased actually from are destocking levels think that up we are situation seeing number that more a They see one. energy and also pricing from That's curtailment, don't has Europe seeing I Now we are that. normal standpoint, now. any the in

Number two, seeing look is, we're is as material overall the seeing softening have concerned an we overall as also at market. what you we far are -- pricing if really raw and expectation

there's down. coming are So expectation that prices certain a also

going not coming they're up down. So anymore. They're

of quarter when So at so hikes, the about kind concerned end people to of price were more. the compared they XXXX, ordered

happening Now new the say, very prices. hesitant, quarter until of just see let's in comes they what's and are wait expectation lower let's

And third, are overall weak. markets very

at see was I really beginning is And for We Josh, this coming difficult have materialized. to now But a mean the be us from little to and -- what what. quite see board market honest, bit -- it competitors is what to in has are the suppliers now. seeing if customers, or now challenging if their now you that right with extremely and look we numbers, you you out see this also, right coming the across see

which I are, are issues, our of say, would volume three kind these main development. So impacting the

hearing and the and customers Yes, tell largest in reflected what peers femcare no, in particular within us and Maybe and telling food for your from helpful. they some expense of price you brand are Fibers. the of bev That’s tilted longer of Airlaid's I have Composite Spunlace, their that. then at just you're take can taking expectations to about be customers XXXX? moment think and kind a the owners, How what wipes and growth to much volume your and their

where in to we time my couple in we mentioned to should where I customers progresses. remarks, the think in are And spend of pretty think in at year the now certain a our are weeks. I and even confident be we I our like areas we as right lot mean, had last Fibers, opportunity of are -- I we areas like Okay. volume Airlaid able are with and Composite -- INDEX expand I

we big So of working projects on big, are with customers. a our chip blue lot

but were because necessary. a absolutely big October, the the in after that pressure also now, I lot mean is the right significant September, actions Again, which now took right we issue managing there's pricing. price of

Now there's an expectation that we're releasing.

and months to more holding talked long pricing think to in surgical also less I we're ago. volumes. do on strategy can preserve about is three as So already this we some we as order having our But or adjustments

But a I is minus this, to we right And would look fem-hygiene, area, -- overall difficult difficult the market to a now determine compared say I is demand. it's you wipes QX, look -- again, seeing triggering still mean lower QX very if if the X% environment. compared you X.X% it now, that But the have market what are to is at we at of I issues able prices the actually are still -- coming the right before. we are would adjustments, price But volumes. we time, call mentioned do just relatively three at are maintaining which we surgical down. this just to overall, are raw with, make. to same because confident I But this material it's

areas, also New one Unfortunately, which And big extent down. raw wish. expecting. not And this the pick other fast in happened a coming as Chinese but trigger it that the was materials Chinese the down was as certain up high yet. areas, there are to everybody coming that picked is demand we would they I Year after In up. here not are expectation mean, hasn't

pulp So market weak. a if I look at relatively the

which other fluff reflected which fluff call price have in us the pulp material seen gap for the and would on between our fluff we regular but we yet. to pulp an hand are this is On raw is I pressure suppliers be not has it strategic pulp extremely pulp fluff pulp the widening the also because putting

queue. That's the monetize or analysis for or your just get me framework at to has that on non-core update changed I'll Maybe progressed and Okay. or helpful. provide in work if then you one Can any back assets more all?

there, Nothing has Josh. changed

diligently going there. are We through on working

As you we are progressing. are know, these a more little complicated. no But bit things sometimes

we're you announcements near We future. making some -- I are good would and progress say, should expect in the

you Josh are there? still

I queue. was going back Q&A. to I go don't want to the the dominate in

Okay. Yeah.

Thank Josh. you,

next Instructions] Spitz [Operator Roger of to with Bank We'll America.

and you, good morning. Thank

How Roger. are you? morning, Good Hey,

yes. with cash flow flow are Thank that should think laid out great. there Ramesh, ranges. midpoint free ones at are about? other cash you I'm what out But think laid we you're other cash you've we items the any you. cash the Starting simply out? should Just you there looking the laid million various flow about $XX at besides of items the XXXX any taking flow of

really No. last transition turnaround our well. out that's Roger I we also the whether restructuring severance called for strategy payments year have CEO implementation as we would year costs say this which

meaningfully would XXXX. here flow cash taxes between year. this So strategy on to working position nothing the that cash CapEx the those some of that capital affect turnaround interest out the is free costs But the going report in else

it. Got

working spoke was to correct I just outflow. a incorrectly then that capital And Okay. myself

basis. free million $XX would be flow So negative cash a on that

right. Correct. Yes. That's

right. it got You

that. And give Sorry full comment guidance don't EBITDA know to the I year but and of of to perhaps to EBITDA get guidance you the there? What drivers. are on get can about see pieces cadence your normally you quarterly the main qualitatively you improvement the

Yeah, absolutely.

the business assessing that of we for for provide first annual instituted change things with shaping one investors was coming more and visibility so a how in the business guidance out. the bit communication our the out Thomas as with went external the approach is Roger can here time This So investors. little we volatility around XXXX after to a forecasting

seeing the us What I we volatility some place to quarter, improvements gradual not see build I that arrived the expect the of Thomas when will quarter to in of the think improvement in that turnaround in to going $XXX to and number easily being number would increase strategy year full continue broken But seeing of first from would we and to the we $XXX quarter-over-quarter early one intentionally in and quarter here and that sufficient say that allow by because million out the we have quarter to business that get had the fourth momentum on sometimes this it's million. put demonstrate with that the next.

confident that. So we about feel very

the we're you freight as is price/cost think the SG&A about gap in you energy help gets the are price us in strategy is if guidance the it XXXX. reductions And blocks kind the this the raw pieces building It's on. materials the improvement down. get to improvement operations and there XXXX starting in Those to will will that EBITDA part reductions are for see so and us from come of the cost it's whether that of that turnaround

CapEx market guidance. to think may if there want at? about our about think in we model Got just something to if we and we will give something that's kind it. that? you want what XXXX look of same, probably is put a XXXX putting we for want in Should But CapEx or don't the saying versus to you Also take should

I anticipate XXXX very proxy in we XXXX. is guidance the for Yes. would say good a Roger what

down previously capital think our one disciplined and very number capital our that being we've about be debt. articulated going paying is spending. we allocation I priority are diligent And to

to is provided we next range continuing leave guidance the as a million continuing year very $XX to this the for and maintain we grow for flow years, to that continuing believe assets, down $XX level be enough to very, manageable about free our pay of to able debt. cash couple million think We to

opportunity But so to EBITDA, that grow for be expand there an decisions look for the allows that Now, pretty and of at to picture could view. being, down the may million that is portfolio million next change road a CapEx on, the assumption. good even time $XX year, $XX us

too queue. will Thank back in Excellent. you. get I

Thanks

Amitell Galgay next Capital. go with Peter We'll to

Ramesh. good me? morning. you Thomas, Hi, hear Can

evening Good Peter. to Yes, you.

envision One will year higher forward others. Slide the Excellent. question corporate by then mentioned the your corporate case and of were be million. Do a you expenses continue you going year-on-year? few where $X.X to higher being the X, that rest expenses

think it What the expenses, for expect say, It's provided million. basis, had as still for the million expect full $XX-ish about a year. on cost I corporate year full all guidance million beginning be of you part corporate around to to $XX would be that But to the around guidance we we $XXX We million. of call the Peter. that at our of EBITDA year, $XXX

So number. use that where in it but full year to would I down a that comes be rate QX, we as run slightly are could a relative

business, Okay. Sontara, represents? share guys can us with in Thank what super Sontara more what And that's How profitability to much Shifting simple of Sontara, gears and the you degree about of Spunlace terms you. is margins? just helpful.

is mean wipes. right look where I Spunlace businesses segment, and you about is now about XX% hygiene and and our around Spunlace Sure. around -- of Sontara, are XX% you if this at can is we our

This is cleaning, volumes branded in our are expanding mainly approach. right Sontara we are changing Now talk a and about critical the used really we now business, product our there.

as in in. areas, sensitivity products the fact other we margin at are that without participating mentioning the level you specific now, is the high due the customer can at to margin, look but you If as the product, it's branded price not Sontara that assume a

in margins portfolio. So overall our product are the Sontara highest

the have Europe. the well in in available US as capacity as We

forming on than marketing brand dealing we a reorganization, our group, is we our portfolio. products, or because which with commodity selling -- solely other We are have products a the Sontara and selling a focused with is in different

clear place, how now accelerating so a in are business. And plan right we growth our the have of we Sontara

that this end split wipes towards of Sontara and between is of more XX-XX hygiene side leaning it's hope year, the the I the Sontara anymore, not the but by So, business. somewhere

medical just One was the and to competitive we difficult a too did have and attributes in take of of because being make certain -- there issues a fitting other customer the This business these have at at is areas material a the material. price mainly cheaper. you is But look countries, compared too which But also simply if gowns not was challenges and we us you to out to said. it's the China, for is, which And areas be we really we finding needs. be too the which matter. have it mean, superior And good. expensive. product, now, which also in of are is and importing I just had problem pandemic, very solution, looking good to to have Turkey are honest during not here product

area. well. the So on main is working we're critical really focus But cleaning that as our

a have in would I position We market the good US. say, pretty,

our where is. totally focus and are Europe this underrepresented world the of in We is the and rest

that's helpful. or roughly That's And on you clear, just be volume? to XX-XX, say revenue very based it's Yes. when

Revenue.

Revenue.

much the world? the -- how versus the how your revenue of US roughly from of Okay. is Sontara And rest derived

If in generated would US. you of And world. majority look now, our the say, right totally the in I the we the our revenue are at of is underrepresented business Sontara rest

Europe. asset just was We last week. there I have good very a in

So it's I which asset, is And a where our really is. it's modern this focus is I can mean great. -- a line

market to improve need our we So European position.

our where that's storage And location.

have of that's kind now Spain, nothing know and this it in but where And to start US And in the we again, is world. can of Europe we do adjust the do yes. in and that this we mean from rest we it scratch, and the I

And its manufacturing that more rest just salespeople, doing [indiscernible] then, is the in of the on or the world challenge a hiring it side

Yes.

Okay.

product? -- sell the

good marketing April, a on reorganization No, the really a question, No, said, and part we side of side. focusing like Sontara. the on we our sales I special Peter. It's on which announced group it's operations just not have in

as far a actions are taking we've product got management market, now that's And sales we marketing it's special are group. is its do. we these concerned, what have will right sales As and to the mainly

and certain of overnight. come One need expectations at things, success the the But little like to here bit, not a will would manage one suppliers. products because you I give example. qualification our They

We with Boeing critical cleaning for are supplying the US.

six normally And in Airbus Airbus about get are it to We not already around takes qualification yet. months But there. we are doing that. all

share, market of I'm superior. as sensitivity Customers as that some but is the very, our than we these high areas in I the product areas that it increase it before really some in. in working confident because can not time, and our takes like But price are very we other mentioned is

get and the in win you longer probably the I you're to is difficult once And have guess these and customers in more Excellent. it and longer there.

are there Exactly, exactly. we good thing to that very, superior product. very because the And optimistic get is we a in have

Okay. one including across That's said You are just Composite entire and you the highest portfolio. said? the Airlaid Can confirm the thing margins that I Fibers?

general. Yes. In

this -- this I -- Just mean in at think look And, you I is as and branded statement a and is this if Peter, here there's a there. But know yes, general, you this right. there's second. is exceptions -- product. always always general in

through your I relatively this of guys. new still – learning gets kind Thank up helpful. is because mean, is This going Okay. through, just -- you, which Spunlace, materials, I'm within your and it like swallowed business going

Right.

surface business. the on struggling --

very business So kind viable of it's there. out. good to There's a flush

we a Peter, issue, and that's need of to it's are working you why which a just at is is are got business which we potential. then, with Spunlace Again, And issues have we hygiene if healthy business And extremely I in volume. lot have look you about question wipe but important, operational really Spunlace, at our on with more look the addressing. Spunlace, very And think a issue we to these this it. We market challenged. No are this. go Sontara,

you. Got

you, Thank Okay. gentlemen.

Thank you.

Peter. Thank you,

Bank to We'll with Roger go America. next of Spitz

Hi. just prepared the hear Thomas. didn't ask wanted follow-up. correctly even for Thank and I much it you I the very perhaps during to remarks

And I correctly. saying you if think you'll with if suggesting saying? heard I heard you I non-core that? products assessing products exit some expand can that mean for not creation. was I'm there If right markets are of it you're assets, actively what I that but some that's value key you're your on or you're just that I guess, paraphrasing

that well. No. Maybe we to I -- communicated communicate when our changed was sorry doing are plan. maybe is turnaround we What nothing has didn't that --

product are our portfolio. We looking at

the company. not. we're here mean you relatively review. these these transformation not this is can businesses looking it's right assets changing certain see are them to We be. It's and are total not our and talking are now strategic are really is at okay? assets to need -- what not the which with small. about the under would periphery don't on get have identified tell certain to also capabilities and we level we But Glatfelter, them not performing way we a of these are us to not are I I there we or perform. overall like And where assets to And the and These

Got you.

it. that. much very Thanks Okay. for Appreciate

Sure.

next with Carlson go Josh Wool Capital. to We'll

an maybe material currents follow-up on discussion been issues. demand and of Hey, guys. know including on raw some update Spunlace synergy operational number challenges know to of I the some But this one much profitability. the the I it's thinking And about is many I you you're then synergy the impacted that as probably what just could by cross not just relative of addressing had just provide capture. challenges. energy

number what's originally the -- of and XX so What I of $XX had is months. over million synergies today expected to left think And but you kind come?

situation one-third, one-third, announced so it operations then and one-third and synergy right? Josh, also on obviously from million. upside to number inflation from whole expected us and about we that. right the you recall announced acquisition with When And macroeconomic the we of was SG&A the And Yes. on. turned come down if $XX from procurement, you're energy

call a it's what seeing if wipe in uptime is side the are to whether the within that was will Thomas where to of of inefficiencies efficiency SG&A, $X operational the What on out got where terms and of on -- we been some were waste hygiene alluding has and team million that come operations we it specifically people I of you on half Spunlace the we're it business our it challenged we deliver is the out all to SG&A and of the and drop so a that those of least that so we've laser-focused is bottom-line. over on, cost trying to areas from help reduction to are throughput out from take the have all though from cost at to continuing work $XX even little million bit $XX get waste that the on that will and $X expecting system million we and say gotten million

to get to But also It's is better with that on. a a better inflationary our work also that walked and highly process. us. focused do having a is deliver. so just being procurement a energy something piece into double in piece in really is And So still is for pricing process. challenge strategic been organization that The still with whammy payment environment a to working with suppliers get has the ops on sourcing trying work terms

So there are that. I halfway think $XX work No we to but more on million? fully and than there on we're continue the

Okay. Thanks.

questions point? this any Jennifer at other

At I'll this turn speakers. call to back the time, the

very you Thank much. Okay.

the really you joining we're progress our continued for forward to on ahead. I and today us you. Ramesh looking updating and you in thank months So Thank

you. Thank

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