GlobeNewswire Inc | Nov 2, 2021 06:50AM EDT

November 02, 2021

~ Completed Jacob Holm acquisition adding significant scale and diversifying engineered materials portfolio ~~W0:~ Record quarterly operating profit in Airlaid Materials segment reflects Mount Holly acquisition ~~W0:~ Composite Fibers' performance impacted by continued inflationary headwinds ~~W0:

CHARLOTTE, North Carolina, Nov. 02, 2021 (GLOBE NEWSWIRE) -- Glatfelter Corporation (NYSE: GLT), a leading global supplier of engineered materials, today reported income from continuing operations for the third quarter of 2021 of $8.1 million, or $0.18 per diluted share, compared with $6.5 million, or $0.15 per share, in the same period a year ago. The 2021 results include the acquisition of Georgia-Pacifics U.S. nonwovens business (Mount Holly) prospectively from the May 13, 2021 acquisition date. Adjusted earnings from continuing operations for the third quarters of 2021 and 2020, were $9.5 million, or $0.21 per share, compared with $7.0 million, or $0.16 per share, respectively. Adjusted earnings is a non-GAAP financial measure for which a reconciliation to the nearest GAAP-based measure is provided within this release. Consolidated net sales for the three months ended September 30, 2021 totaled $279.7 million, compared with $233.5 million for the same period in 2020. On a constant currency basis, net sales for Composite Fibers and Airlaid Materials (including Mount Holly) increased by 3.4% and 39.5%, respectively.

Airlaid Materials delivered strong performance during the quarter due to improving demand for wipes and tabletop products, which exceeded expectations. Our contractual cost pass-through arrangements with customers offset most of the inflationary pressures while higher shipments, coupled with improved product mix, supported growth in operating profit and favorable margins, said Dante C. Parrini, Chairman and Chief Executive Officer. As inflationary headwinds dominated the global economic backdrop, our Composite Fibers segment continued to increase prices. While we successfully achieved price improvements of nearly $6 million to offset rising input costs, the third quarter brought about incremental inflation and significant increases in energy prices which negatively impacted profitability.

Mr. Parrini added, Heading into the third quarter, we were experiencing improved demand trends across most product categories and expected that the price increases we implemented in the Composite Fibers segment earlier in the year would be sufficient to offset the higher input costs. However, energy, raw materials, and freight prices continued to significantly escalate throughout the quarter, well beyond our expectations. In response, our commercial team took additional pricing actions in mid-September announcing an incremental 12% price increase across the Composite Fibers product portfolio. Additionally, for our Airlaid Materials' customers with no cost pass-through arrangements, we initiated a 10% price increase effective October 1. We intend to continue leveraging our global scale and integrated supply chain to manage costs and enhance manufacturing efficiencies while taking the necessary pricing actions during this dynamic and unprecedented macro-economic environment.

Mr. Parrini concluded, We recently executed a successful $500 million bond offering to finance the closing of the largest acquisition in Glatfelters history Jacob Holm, a leading global manufacturer of premium quality spunlace nonwovens. This transaction marks another significant step forward in our transformation to further diversify our nonwovens portfolio and technology offerings, enhance overall innovation capabilities with a focus on sustainability and add meaningful scale to the Company. Our key near-term priorities for this acquisition are focused on successfully integrating Jacob Holm into the Glatfelter enterprise, achieving the announced $20 million synergies and actively de-levering the balance sheet.

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, 2021 2020In thousands, except per share Amount EPS Amount EPS Net income $ 7,527 $ 0.17 $ 6,527 $ 0.15 Exclude: Loss from discontinued 532 0.01 ? ? operations, net of taxIncome from continuing operations 8,059 0.18 6,527 0.15 Adjustments (pre-tax): Strategic initiatives 2,773 843 Corporate headquarters relocation 68 610 Restructuring charge - Metallized ? 57 operationsCost optimization actions 687 1,270 Pension settlement expenses, net ? 389 COVID-19 incremental costs ? 586 Timberland sales and related costs (2,235 ) (412 ) Total adjustments (pre-tax) 1,293 3,343 Income taxes (1) 18 (375 ) CARES Act of 2020 tax provision (2) 112 (2,454 ) Total after-tax adjustments 1,423 0.03 514 0.01 Adjusted earnings from continuing $ 9,482 $ 0.21 $ 7,041 $ 0.16 operations

-- Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated. -- Tax impact recorded in connection with passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES) related to provisions that modified the net operating loss provisions of previous law to allow certain losses to be carried back five years.

A description of each of the adjustments presented above is included later in this release.

Composite Fibers

Three months ended September 30,Dollars in thousands 2021 2020 Change Tons shipped 32,737 35,009 (2,272 ) (6.5 ) %(metric)Net sales $ 138,118 $ 132,419 $ 5,699 4.3 %Operating income 5,812 10,464 (4,652 ) (44.5 ) %Operating margin 4.2 % 7.9 %

Composite Fibers net sales increased $5.7 million or 4.3% in the third quarter of 2021, compared to the year-ago quarter, mainly driven by higher selling prices of $5.8 million and favorable currency translation of $1.2 million. Overall, shipments were 6.5% lower primarily due to wallcover products. In Q3 2020, wallcover had a strong rebound in demand after volume dropped sharply in Q2 2020 due to the pandemic, making for a challenging year-over-year comparison. In addition, a few wallcover customers took unexpected downtime in late August, 2021.

Composite Fibers operating income for the third quarter of 2021 totaled $5.8 million compared with $10.5 million in the third quarter of 2020. Higher raw material and energy inflation of $12.4 million was partially offset by $5.8 million in higher selling prices, reducing earnings by net $6.6 million. Favorable mix driven by higher demand in composite laminates and food and beverage categories, coupled with strong production to meet customer demand, positively impacted results by $3.1 million. The impact of currency and related hedging activity negatively impacted earnings by $1.2 million mainly due to favorable hedging gains on our underlying positions last year.

Airlaid Materials

Three months ended September 30,Dollars in thousands 2021 2020 Change Tons shipped 43,526 34,752 8,774 25.2 % (metric)Net sales $ 141,533 $ 101,054 $ 40,479 40.1 % Operating income 14,742 12,917 1,825 14.1 % Operating margin 10.4 % 12.8 %

Airlaid Materials net sales increased $40.5 million in the year-over-year comparison, driven by the first full quarter of sales from Mount Holly as well as higher selling prices from cost pass-through arrangements with customers. Shipments were 25.2% higher driven by Mount Holly as well as improvements in demand for tabletop and wipes products, slightly offset by lower shipments of hygiene products. Currency translation was $0.5 million favorable.

Airlaid Materials third quarter of 2021 operating income of $14.7 million was $1.8 million higher when compared to the third quarter of 2020. Higher shipments positively impacted results by $7.3 million. Selling price increases of $11.6 million, primarily due to raw material cost pass-through provisions, were more than offset by higher raw material and energy prices of $13.4 million, reducing earnings by net $1.8 million. Most pass-through contracts do not include energy inflation which was $1.3 million during the quarter. Operations were unfavorable $2.5 million mainly due to lower production compared to a strong quarter last year and higher inflationary pressures experienced in the quarter. The impact of currency and related hedging activity negatively impacted earnings by $1.2 million.

Other Financial Information

The amount of operating expense not allocated to a segment in the table of Segment Financial Information totaled $6.0 million in the third quarter of 2021 compared with $9.4 million in the same period a year ago. Excluding the items identified to present adjusted earnings, unallocated expenses for the third quarter of 2021 decreased $1.7 million compared to the third quarter of 2020.

In the third quarter of 2021, income from continuing operations totaled $11.6 million and income tax expense totaled $3.6 million. On adjusted pre-tax income of $12.9 million, income tax expense was $3.4 million in the third quarter of 2021. The comparable amounts in the same quarter of 2020 were $13.5 million and $6.4 million, respectively. The effective tax rate on adjusted earnings was 26.5% in the third quarter of 2021.

Year-to-Date Results

The following table sets forth a reconciliation of results on a GAAP basis to an adjusted earnings basis, a non-GAAP measure:

Nine Months Ended September 30, 2021 2020In thousands, except per share Amount EPS Amount EPS Net income $ 17,331 $ 0.39 $ 11,517 $ 0.26 Exclude: Loss from discontinued 614 0.01 135 ? operations, net of taxIncome from continuing operations 17,945 0.40 11,652 0.26 Adjustments (pre-tax): Strategic initiatives 11,207 843 Corporate headquarters relocation 429 610 Restructuring charge - Metallized ? 11,111 operationsCost optimization actions 687 4,367 Pension settlement expenses, net ? 6,792 COVID-19 incremental costs ? 1,766 Asset impairment charge ? 900 Timberland sales and related costs (4,638 ) (1,013 ) Total adjustments (pre-tax) 7,685 25,376 Income taxes (1) 49 (4,257 ) CARES Act of 2020 tax provision (2) 295 (5,023 ) Total after-tax adjustments 8,029 0.18 16,096 0.36 Adjusted earnings from continuing $ 25,974 $ 0.58 $ 27,748 $ 0.62 operations

-- Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated. -- Tax impact recorded in connection with passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES) related to provisions that modified the net operating loss provisions of previous law to allow certain losses to be carried back five years.

A description of each of the adjustments presented above is included later in this release.

Balance Sheet and Other Information

Cash and cash equivalents totaled $100.0 million as of September30, 2021, and net debt was $362.1 million compared with $213.9 million at the end of 2020. Net leverage increased to 2.8 times at September30, 2021 versus 1.7 times at December31, 2020. (Refer to the calculation of this measure provided in the tables at the end of this release).

Capital expenditures during the first nine months of 2021 and 2020 totaled $18.5 million and $20.2 million, respectively. Adjusted free cash flow for the first nine months of 2021 was $30.4 million compared with $21.9 million in the same period of 2020. (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 quarters earnings release and an accompanying financial presentation that includes significant financial information to be discussed on the conference call including the Companys outlook pertaining to financial performance. Information related to the conference call is as follows:

What: Glatfelter?s 3rd Quarter 2021 Earnings Release Conference Call When: Tuesday, November2, 2021, 11:00 a.m. (ET) Number: US dial 888.335.5539 International dial 973.582.2857 Conference ID: 4090853 Webcast: https://www.glatfelter.com/investors/ webcasts-and-presentations/ Rebroadcast Nov. 2, 2021, 2:00 p.m. through Nov. 16, 2021 12:00 p.m. Dates: Rebroadcast Within US dial 855.859.2056 Number: International dial 404.537.3406 Conference ID: 4090853

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 subsidiariesConsolidated Statements of Income(unaudited)

Three Months Ended Nine Months Ended September 30, September 30,In thousands, 2021 2020 2021 2020except per share Net sales $ 279,651 $ 233,473 $ 750,236 $ 681,216 Costs of products 241,294 195,222 637,029 574,100 soldGross profit 38,357 38,251 113,207 107,116 Selling, generaland 26,066 24,635 77,877 72,707 administrativeexpensesGains ondispositions ofplant, equipment (2,235 ) (413 ) (4,638 ) (1,010 ) and timberlands,netOperating income 14,526 14,029 39,968 35,419 Non-operating income (expense)Interest expense (2,061 ) (1,810 ) (5,364 ) (5,347 ) Interest income 21 39 52 390 Pensionsettlement ? (389 ) ? (6,792 ) expenses, netOther, net (876 ) (1,728 ) (1,949 ) (3,243 ) Totalnon-operating (2,916 ) (3,888 ) (7,261 ) (14,992 ) expenseIncome fromcontinuing 11,610 10,141 32,707 20,427 operations beforeincome taxesIncome tax 3,551 3,614 14,762 8,775 provisionIncome fromcontinuing 8,059 6,527 17,945 11,652 operations Discontinued operations:Loss before (532 ) ? (614 ) (135 ) income taxesIncome tax ? ? ? ? provisionLoss fromdiscontinued (532 ) ? (614 ) (135 ) operationsNet income $ 7,527 $ 6,527 $ 17,331 $ 11,517 Basic earnings per shareIncome fromcontinuing $ 0.18 $ 0.15 $ 0.40 $ 0.26 operationsLoss fromdiscontinued (0.01 ) ? (0.01 ) ? operationsBasic earnings $ 0.17 $ 0.15 $ 0.39 $ 0.26 per share Diluted earnings per shareIncome fromcontinuing $ 0.18 $ 0.15 $ 0.40 $ 0.26 operationsLoss fromdiscontinued (0.01 ) ? (0.01 ) ? operationsDiluted earnings $ 0.17 $ 0.15 $ 0.39 $ 0.26 per share Weighted averageshares outstandingBasic 44,593 44,368 44,536 44,329Diluted 44,939 44,636 44,889 44,549

Segment Financial Information(unaudited)

Three monthsendedSeptember 30, CompositeFibers Airlaid Materials OtherandUnallocated TotalDollars inthousands 2021 2020 2021 2020 2021 2020 2021 2020Net sales $ 138,118 $ 132,419 $ 141,533 $ 101,054 $ ? $ ? $ 279,651 $ 233,473 Costs of 121,028 112,031 121,102 83,699 (836 ) (508 ) 241,294 195,222 products soldGross profit 17,090 20,388 20,431 17,355 836 508 38,357 38,251 SG&A 11,278 9,924 5,689 4,438 9,099 10,273 26,066 24,635 Gains ondispositionsof plant, ? ? ? ? (2,235 ) (413 ) (2,235 ) (413 ) equipment andtimberlands,netTotaloperating 5,812 10,464 14,742 12,917 (6,028 ) (9,352 ) 14,526 14,029 income (loss)Non operating ? ? ? ? (2,916 ) (3,888 ) (2,916 ) (3,888 ) expenseIncome (loss)before income $ 5,812 $ 10,464 $ 14,742 $ 12,917 $ (8,944 ) $ (13,240 ) $ 11,610 $ 10,141 taxesSupplementary DataMetric tons 32,737 35,009 43,526 34,752 ? ? 76,263 69,761 soldDepreciation,depletion andamortization $ 6,904 $ 6,755 $ 7,763 $ 5,674 $ 1,043 $ 1,273 $ 15,710 $ 13,702 ($ inthousands)(1)Capital 2,585 3,060 2,926 2,791 1,797 2,303 7,308 8,154 expenditures

Nine monthsendedSeptember 30, CompositeFibers Airlaid Materials OtherandUnallocated TotalDollars inthousands 2021 2020 2021 2020 2021 2020 2021 2020Net sales $ 420,965 $ 387,267 $ 329,271 $ 293,949 $ ? $ ? $ 750,236 $ 681,216 Costs of 354,629 319,403 283,825 243,526 (1,425 ) 11,171 637,029 574,100 products soldGross profit 66,336 67,864 45,446 50,423 1,425 (11,171 ) 113,207 107,116 (loss)SG&A 33,396 30,811 15,076 13,192 29,405 28,704 77,877 72,707 Gains ondispositionsof plant, ? ? ? ? (4,638 ) (1,010 ) (4,638 ) (1,010 ) equipment andtimberlands,netTotaloperating 32,940 37,053 30,370 37,231 (23,342 ) (38,865 ) 39,968 35,419 income (loss)Non operating ? ? ? ? (7,261 ) (14,992 ) (7,261 ) (14,992 ) expenseIncome (loss)before income $ 32,940 $ 37,053 $ 30,370 $ 37,231 $ (30,603 ) $ (53,857 ) $ 32,707 $ 20,427 taxesSupplementary DataMetric tons 101,348 100,024 106,705 103,068 ? ? 208,053 203,092 soldDepreciation,depletion andamortization $ 20,885 $ 19,652 $ 20,378 $ 16,598 $ 2,913 $ 7,060 $ 44,176 $ 43,310 ($ inthousands)(1)Capital 8,240 9,121 5,962 6,606 4,317 4,438 18,519 20,165 expenditures

-- The amount presented in 2020 in the Other and unallocated column includes accelerated depreciation incurred in connection with the restructuring of Composite Fibers Metallized operations.

Selected Financial Information(unaudited)

Nine months ended September 30,In thousands 2021 2020 Cash Flow Data Cash from continuing operations provided (used) by:Operating activities $ 38,497 $ 24,539 Investing activities (186,003 ) (19,178 ) Financing activities 151,264 (60,963 ) Depreciation, depletion and amortization 44,176 43,310 Capital expenditures 18,519 20,165

September 30, 2021 December 31, 2020Balance Sheet Data Cash and cash equivalents $ 100,032 $ 99,581 Total assets 1,456,552 1,286,881 Total debt 462,110 313,521 Shareholders? equity 563,304 577,932

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, a non-GAAP measure. The Company uses non-GAAP adjusted earnings 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 Companys core operations, which consist of the production and sale of composite fibers and airlaid materials. Management and the Companys Board of Directors use non-GAAP adjusted earnings to evaluate the performance of the Companys fundamental business in relation to prior periods and established business plans. For purposes of determining adjusted earnings, the following items are excluded:

-- 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. -- Corporate headquarters relocation. These adjustments reflect costs incurred in connection with the strategic relocation of the Companys corporate headquarters to Charlotte, NC. The costs are primarily related to employee relocation costs and exit costs at the former corporate headquarters. -- Restructuring charge Metallized operations. This adjustment represents charges incurred in 2020 in connection with the decision to restructure a portion of the Composite Fibers segment, primarily consisting of the consolidation of our metallizing operation from Gernsbach, Germany to Caerphilly, UK. -- Cost optimization actions. These adjustments reflect charges incurred in connection with initiatives to optimize the cost structure of the Company, including costs related to the organizational change to a functional operating model. The costs are primarily related to executive separations, other headcount reductions, professional fees, asset write-offs and certain contract termination costs. These adjustments, which have occurred at various times in the past, are irregular in timing and relate to specific identified programs to reduce or optimize the cost structure of a particular operating segment or the corporate function. -- COVID-19 incremental costs. This adjustment represents incremental cash costs incurred directly related to the COVID-19 pandemic such as mill employee incentive payments, enhanced hygiene protocols, safety and supplies, and professional fees primarily associated with the CARES Act benefit. -- Asset Impairment Charge. This adjustment represents a non-cash charge recorded to reduce the carrying amount of a tradename intangible asset of the Dresden wallcover business due to the impact of the COVID-19 pandemic on the underlying forecasted revenue stream. -- Pension settlement expenses, net. This adjustment reflects professional fees recorded in connection with the Companys termination of its qualified pension plan and the related actions to settle all obligations to the plans participants. Since the pension plan was fully funded, the settlement of pension obligations did not require the use of the Companys cash, but instead was accomplished with plan assets. -- 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. -- Coronavirus Aid, Relief, and Economic Security (CARES) Act 2020. This adjustment reflects taxes recorded as a result of the March 27, 2020 change in U.S. tax law which, among others, allows net operating losses to be carried back five years.

Unlike net income determined in accordance with GAAP, non-GAAP adjusted earnings does not reflect all charges and gains recorded by the Company for the applicable period and, therefore, does not present a complete picture of the Companys results of operations for the respective period. However, non-GAAP adjusted earnings provide a measure of how the Companys 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 should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with GAAP.

Calculation of Adjusted Free Cash Flow Nine months ended September 30,In thousands 2021 2020

Cash from operations $ 38,497 $ 24,539 Capital expenditures (18,519 ) (20,165 ) Free cash flow 19,978 4,374 Adjustments: Cost optimization actions 2,755 2,934 Strategic initiatives 5,177 843 Restructuring charge - Metallized operations 1,013 5,240 Corporate headquarters relocation 885 473 Fox River environmental matter 1,584 3,156 Pension settlement ? 6,718 COVID-19 incremental costs ? 1,766 Tax refunds on adjustments to adjusted (956 ) (3,644 ) earningsAdjusted free cash flow $ 30,436 $ 21,860

Net Debt September 30, December 31, 2020In thousands 2021 Current portion of long-term debt $ 27,441 $ 25,057 Short-term debt 11,579 ? Long term debt 423,090 288,464 Total 462,110 313,521 Less: Cash (100,032 ) (99,581 ) Net Debt $ 362,078 $ 213,940

Adjusted EBITDA Pro forma Trailing twelve Year ended months ended September 30, December 31,In thousands 2021 2020 Net income $ 27,112 $ 21,298 Exclude: Loss fromdiscontinued operations, net (36 ) (515 ) of taxAdd back: Taxes on Continuing 17,563 11,576 operationsDepreciation and amortization 57,466 56,600 Interest expense, net 6,978 6,623 EBITDA 109,083 95,582 Adjustments: Mount Holly ^(1) 5,359 ? Strategic initiatives 11,931 1,567 Share-based compensation ^(2) 5,677 5,655 Cost optimization actions 2,299 5,979 COVID-19 incremental costs 949 2,715 Corporate headquarters 881 871 relocationRestructuring charge - ? 7,211 Metallized operationsAsset impairment charge ? 900 Pension settlement expenses, (638 ) 6,154 netTimberland sales and related (5,007 ) (1,382 ) costsAdjusted EBITDA $ 130,534 $ 125,252

-- Represents pro forma Mount Holly EBITDA for the period October 1, 2020 through the May 13, 2021 acquisition date, adjusted to eliminated certain corporate cost overhead allocated to Mount Holly during its period of ownership by its previous parent. -- Adjusted EBITDA for all periods presented has been restated to add back share-based compensation consistent with our amended credit agreement. The share-based compensation adjustment represents the non-cash amount of share-based compensation expense included in results of operations.

Leverage September 30, December 31, In thousands 2021 2020 Net Debt $ 362,078 $ 213,940 Divided by Adjusted EBITDA 130,534 125,252 Net leverage 2.8 x 1.7 x

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 Companys 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 Companys filings with the U.S. Securities and Exchange Commission (SEC) in the Risk Factors section and under the heading Forward-Looking Statements in the Companys most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are available on the SECs 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 Companys 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 Companys annualized net sales approximate $1.4 billion with over 3,300 employees worldwide. Glatfelters operations utilize a variety of manufacturing technologies including airlaid, wetlaid and spunlace with sixteen 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) 225-2793ramesh.shettigar@glatfelter.com eileen.beck@glatfelter.com