GlobeNewswire Inc | Feb 4, 2021 06:50AM EST

February 04, 2021

~ Strong financial performance in the midst of the pandemic ~~W0:

~ Progressing transformation with recent announcement to acquire Georgia-Pacifics U.S. nonwovens business ~~W0:

CHARLOTTE, N.C., Feb. 04, 2021 (GLOBE NEWSWIRE) -- Glatfelter Corporation (NYSE: GLT), a leading global supplier of engineered materials, today reported its results for the fourth quarter of 2020, which are summarized in the following table:

Three months ended December 31 2020 2019 In thousands, except per share Amount EPS Amount EPS Net income (loss) $ 9,781 $ 0.21 $ (44,882 ) $ (1.01 )Income (loss) from discontinued 650 0.01 (132 ) ? operations, net of taxIncome (loss) from continuing 9,131 0.20 (44,750 ) (1.01 )operationsAdjusted earnings from continuing 9,645 0.22 7,684 0.17 operations

On an adjusted basis, earnings from continuing operations for the three months ended December31, 2020 and 2019, were $9.6 million, or $0.22 per share, compared with $7.7 million, or $0.17 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 December 31, 2020 totaled $235.3 million compared with $231.0 million during the same period in 2019. On a constant currency basis, Composite Fibers and Airlaid Materials net sales decreased by 1.4% and 5.2%, respectively.

Glatfelter delivered robust earnings in the fourth quarter, further contributing to a strong year amid unforeseen global economic challenges resulting from the pandemic, said Dante C. Parrini, Chairman and Chief Executive Officer. As businesses across the globe faced unprecedented volatility, Glatfelter continued to make progress by focusing on employee health and safety and overall operational excellence while ensuring uninterrupted supply of critical products to our customers, thereby achieving full-year adjusted EBITDA growth of 12%. We continued to realize operational and strategic benefits of our transformation that included an optimized portfolio comprised of over 85% essential consumer staples, and an improved cost structure from a flatter and more agile operating model. Also, we generated significant cash flow that translated into meaningful debt reduction, resulting in a very healthy balance sheet.

Mr. Parrini continued, In Composite Fibers, strong demand across nearly all product categories drove an increase in total shipments during the quarter compared to prior year. This volume increase and improved mix, combined with elevated production, enabled the segment to deliver an operating profit margin of nearly 11% for the fourth quarter. In Airlaid Materials, shipments during the quarter were above the prior year in all product categories except tabletop, which was negatively affected by the pandemic. As a result, we took more downtime in our Airlaid facilities to manage tabletop inventory, which impacted profitability. For the year, the Airlaid segment delivered an operating profit margin of approximately 12%, exceeding our guidance range.

As we start the new year, we remain focused on managing through the ongoing pandemic by keeping our employees safe and facilities operational. Equally important will be accelerating growth through diligent commercial execution and strategic investments such as our recently announced acquisition of Georgia-Pacifics U.S. nonwovens operations. We believe this business is an excellent fit for Glatfelter and, given our strong balance sheet and stable cash flows, we are financially well positioned to invest in a variety of opportunities that further enhance the enterprise and align with our long-term growth strategy, concluded Mr. Parrini.

Environmental, Social and Governance (ESG) Update

Over its 157-year history, Glatfelter has been committed to sustainability and being a responsible corporate citizen. In 2020, the Company made important strides in its ESG initiatives by formalizing sustainability priorities and publishing an ESG report. In addition, Glatfelter received special recognition for several of its high-performing sustainable engineered materials solutions. As part of Unilevers Partner with Purpose program, Glatfelter was named a Top 3 finalist in the Climate and Nature Impact category for its DYNAGREEN plant-based, heat-sealable tea bag product. The Company was also awarded the Fine to Flush certificate from Water UK (a trade association representing major water companies in the United Kingdom) for its improved nonwoven substrate used in dispersible wipes and moist toilet tissues.

Fourth 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 December 31 2020 2019 In thousands, except per share Amount EPS Amount EPS Net income (loss) $ 9,781 $ 0.21 $ (44,882 ) $ (1.01 )Exclude: (Income) loss fromdiscontinued operations, net of (650 ) (0.01 ) 132 - taxIncome (loss) from continuing 9,131 0.20 (44,750 ) (1.01 )operationsAdjustments (pre-tax) Cost optimization actions 1,612 940 Corporate headquarters relocation 443 ? Pension settlement expenses, net (638 ) 75,326 COVID-19 incremental costs 949 ? Strategic initiatives 724 ? Timberland sales and related costs (369 ) (458 ) Total adjustments (pre-tax) 2,721 75,808 Income taxes ^(1) (1,148 ) (23,374 ) CARES Act of 2020 tax benefit ^(2) (1,059 ) ? Total after-tax adjustments 514 0.01 52,434 1.19 Adjusted earnings from continuing $ 9,645 0.22 $ 7,684 $ 0.17 operations

(1) Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated. Tax benefit recorded in connection with passage of the Coronavirus Aid,(2) 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.

The sum of individual per share amounts set forth above may not agree to adjusted earnings per share due to rounding.

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

Composite Fibers

Three months ended December 31 Dollars in thousands 2020 2019 Change Tons shipped (metric) 34,734 34,027 707 2.1 %Net sales $ 137,822 $ 132,664 $ 5,158 3.9 %Operating income 15,041 12,422 2,619 21.1 %Operating margin 10.9 % 9.4 %

Composite Fibers net sales increased $5.2 million or 3.9%, compared to the year-ago quarter driven by higher shipments in all product categories except metallized, which was restructured earlier in the year. These increases and favorable currency translation of $7.0 million were partially offset by lower selling prices of $3.7 million.

Composite Fibers operating income of $15.0 million was $2.6 million higher, or approximately 21% favorable, compared to the fourth quarter of 2019. Stronger shipping volumes in nearly all product categories and improved mix favorably impacted operating profit by $2.5 million. Lower selling prices of $3.7 million were partially offset by lower input prices of $1.3 million, primarily wood pulp. Higher production in most of our facilities to meet the elevated demand, coupled with strong operations, favorably impacted results by $3.4 million. Currency unfavorably impacted results by $0.9 million, reflecting hedging instruments that matured this quarter being lower versus a year ago and more than offsetting the stronger Euro translation rate.

Airlaid Materials

Three months ended December 31 Dollars in thousands 2020 2019 Change Tons shipped (metric) 33,593 34,470 (877 ) (2.5 )%Net sales $ 97,460 $ 98,308 $ (848 ) (0.9 )%Operating income 9,073 9,123 (50 ) (0.5 )%Operating margin 9.3 % 9.3 %

Airlaid Materials quarterly net sales decreased $0.9 million in the year-over-year comparison. Shipping volumes decreased 2.5% compared to the prior year quarter and selling prices were $0.8 million lower, reflecting the contractual pass-through of lower raw material prices. Currency translation was $4.2 million favorable.

Airlaid Materials fourth quarter 2020 operating income of $9.1 million was consistent with the fourth quarter of 2019. Lower shipping volumes unfavorably impacted results by $0.6 million, while lower raw material and energy prices of $1.2 million more than offset selling price declines of $0.8 million, adding net $0.4 million. Operations were $0.7 million unfavorable, mainly driven by lower production in response to the pandemic-driven decline in demand for tabletop products compared to the prior year. Currency translation was $0.9 million favorable.

Other Financial Information

The amount of Other and Unallocated operating expense in the table of Segment Financial Information totaled $10.4 million in the fourth quarter of 2020 compared with $8.2 million in the same period a year ago. Excluding the items identified to present adjusted earnings, unallocated expenses for the fourth quarter of 2020 decreased $0.7 million compared to the fourth quarter of 2019.

In the fourth quarter of 2020, income from continuing operations totaled $11.9 million and income tax expense totaled $2.8 million. On adjusted pre-tax income of $14.7 million, income tax expense was $5.0 million in the fourth quarter of 2020. The comparable amounts in the same quarter of 2019 were $11.2 million and $3.5 million, respectively. The effective tax rate on adjusted earnings was 34% in the fourth quarter of 2020.

Full Year Results

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

Year ended December 31 2020 2019 In thousands, except per share Amount EPS Amount EPS Net income (loss) $ 21,298 $ 0.48 $ (21,541 ) $ (0.49 )Exclude: Income from discontinued (515 ) (0.01 ) (3,670 ) (0.08 )operations, net of taxIncome (loss) from continuing 20,783 0.47 (25,211 ) (0.57 )operationsAdjustments (pre-tax) Restructuring charge - Metallized 11,111 ? operationsCost optimization actions 5,979 8,583 Corporate headquarters relocation 1,053 ? Pension settlement expenses, net 6,154 75,326 COVID-19 incremental costs 2,715 ? Asset impairment charge 900 ? Airlaid capacity expansion costs ? 1,014 Debt refinancing ? 992 Strategic initiatives 1,567 249 Fox River environmental matter ? (2,509 ) Timberland sales and related (1,382 ) (1,572 ) costsTotal adjustments (pre-tax) 28,097 82,083 Income taxes ^(1) (5,405 ) (23,722 ) CARES Act of 2020 tax benefit ^ (6,082 ) ? (2)Total after-tax adjustments 16,610 0.37 58,361 1.32 Adjusted earnings from continuing $ 37,393 $ 0.84 $ 33,150 $ 0.75 operations

(1) Tax effect on adjustments calculated based on the incremental effective tax rate of the jurisdiction in which each adjustment originated. Tax benefit recorded in connection with passage of the Coronavirus Aid,(2) 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.

Balance Sheet and Other Information

Cash and cash equivalents totaled $99.6 million as of December31, 2020, and net debt was $213.9 million compared with $233.7 million at the end of 2019. Net leverage on December31, 2020 and December31, 2019 was 1.8 times and 2.2 times, respectively. (Refer to the calculation of this measure provided in the tables at the end of this release.)

Capital expenditures during 2020 and 2019 totaled $28.1 million and $27.8 million, respectively. Adjusted free cash flow for the twelve months ended December 31, 2020 was $80.3 million compared with $51.2 million in the prior year period. (Refer to the calculation of 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 fourth quarter results. The Company will make available on its Investor Relations website this quarters earnings release and an accompanying financial presentation which 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 4^th Quarter 2020 Earnings Release Conference Call When: Thursday, February 4, 2021, 11:00 a.m. (ET) Number: US dial 888.335.5539 International dial 973.582.2857 Conference ID: 7096056 Webcast: https://www.glatfelter.com/investors/ webcasts-and-presentations/ Rebroadcast Dates: February 4, 2021, 2:00 p.m. through February 18, 12:00 p.m. Rebroadcast Within US dial 855.859.2056Number: International dial 404.537.3406 Conference ID: 7096056

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 Year ended December 31 December 31In thousands, except 2020 2019 2020 2019 per share Net sales $ 235,282 $ 230,972 $ 916,498 $ 927,673 Costs of products sold 194,529 194,568 768,629 780,131 Gross profit 40,753 36,404 147,869 147,542 Selling, general and 27,338 23,824 100,045 94,967 administrative expensesGains on dispositionsof plant, equipment and (322 ) (733 ) (1,332 ) (2,060 )timberlands, netOperating income 13,737 13,313 49,156 54,635 Non-operating income (expense)Interest expense (1,675 ) (1,895 ) (7,022 ) (10,408 )Interest income 9 192 399 1,123 Pension settlement 638 (75,326 ) (6,154 ) (75,326 )expenses, netOther, net (777 ) (930 ) (4,020 ) (4,477 )Total non-operating (1,805 ) (77,959 ) (16,797 ) (89,088 )expenseIncome (loss) fromcontinuing operations 11,932 (64,646 ) 32,359 (34,453 )before income taxesIncome tax provision 2,801 (19,896 ) 11,576 (9,242 )(benefit)Income (loss) from 9,131 (44,750 ) 20,783 (25,211 )continuing operations Discontinued operations:Income (loss) before 679 (7 ) 544 1,284 income taxesIncome tax provision 29 125 29 (2,386 )(benefit)Income (loss) from 650 (132 ) 515 3,670 discontinued operationsNet income (loss) $ 9,781 $ (44,882 ) $ 21,298 $ (21,541 ) Basic earnings (loss) per shareIncome (loss) from $ 0.21 $ (1.01 ) $ 0.47 $ (0.57 )continuing operationsIncome from 0.01 ? 0.01 0.08 discontinued operationsBasic earnings (loss) $ 0.22 $ (1.01 ) $ 0.48 $ (0.49 )per share Diluted earnings (loss) per shareIncome (loss) from $ 0.20 $ (1.01 ) $ 0.47 $ (0.57 )continuing operationsIncome from 0.01 - 0.01 0.08 discontinued operationsDiluted earnings (loss) $ 0.21 $ (1.01 ) $ 0.48 $ (0.49 )per share Cash dividend declared $ 0.135 $ 0.13 $ 0.535 $ 0.52 per common share Weighted average shares outstandingBasic 44,368 44,189 44,339 44,132 Diluted 44,714 44,189 44,614 44,132

Segment Financial Information(unaudited)

Three monthsended December 31Dollars in CompositeFibers Airlaid Materials OtherandUnallocated Total thousands 2020 2019 2020 2019 2020 2019 2020 2019 Net sales $ 137,822 $ 132,664 $ 97,460 $ 98,308 $ ? $ ? $ 235,282 $ 230,972 Costs of 111,017 110,002 83,283 84,312 229 254 194,529 194,568 products soldGross profit 26,805 22,662 14,177 13,996 (229 ) (254 ) 40,753 36,404 (loss)SG&A 11,764 10,241 5,104 4,873 10,470 8,710 27,338 23,824 Gains ondispositions of plant,equipmentandtimberlands, ? ? ? ? (322 ) (733 ) (322 ) (733 )netTotaloperating 15,041 12,421 9,073 9,123 (10,377 ) (8,231 ) 13,737 13,313 income (loss)Non operating ? ? ? ? (1,805 ) (77,959 ) (1,805 ) (77,959 )expenseIncome (loss)before income $ 15,041 $ 12,421 $ 9,073 $ 9,123 $ (12,182 ) $ (86,190 ) $ 11,932 $ (64,646 )taxes Supplementary DataMetric tons 34,734 34,027 33,593 34,470 ? ? 68,327 68,497 soldDepreciation,depletion and $ 6,523 $ 6,433 $ 5,818 $ 5,304 $ 949 $ 969 $ 13,290 $ 12,706 amortizationCapital 4,141 3,273 2,705 5,785 1,125 690 7,971 9,748 expenditures

Year ended December 31Dollars in CompositeFibers Airlaid Materials OtherandUnallocated Total thousands 2020 2019 2020 2019 2020 2019 2020 2019 Net sales $ 525,089 $ 521,666 $ 391,409 $ 406,007 $ ? $ ? $ 916,498 $ 927,673 Costs of 430,420 432,154 326,809 346,568 11,400 1,409 768,629 780,131 products soldGross profit 94,669 89,512 64,600 59,439 (11,400 ) (1,409 ) 147,869 147,542 (loss)SG&A 42,575 41,629 18,296 18,321 39,174 35,017 100,045 94,967 Gains ondispositions of plant,equipmentandtimberlands, ? ? ? ? (1,332 ) (2,060 ) (1,332 ) (2,060 )netTotaloperating 52,094 47,883 46,304 41,118 (49,242 ) (34,366 ) 49,156 54,635 income (loss)Non operating ? ? ? ? (16,797 ) (89,088 ) (16,797 ) (89,088 )expenseIncome (loss)before income $ 52,094 $ 47,883 $ 46,304 $ 41,118 $ (66,039 ) $ (123,454 ) $ 32,359 $ (34,453 )taxes Supplementary DataMetric tons 134,758 133,473 136,661 137,595 ? ? 271,419 271,068 soldDepreciation,depletion and $ 26,175 $ 26,153 $ 22,416 $ 21,136 $ 8,009 $ 3,531 $ 56,600 $ 50,820 amortization^(1)Capital 13,262 11,972 9,311 13,667 5,563 2,126 28,136 27,765 expenditures

The amount presented in 2020 in the Other and unallocated column includes(1) accelerated depreciation incurred in connection with the restructuring of Composite Fibers? Metallized operations.

Selected Financial Information(unaudited)

Year ended December 31In thousands 2020 2019 Cash Flow Data Cash from continuing operations provided (used) by:Operating activities $ 108,993 $ 102,835 Investing activities (26,773 ) (27,113 )Financing activities (100,306 ) (72,774 ) Depreciation, depletion and amortization 56,600 50,820 Capital expenditures 28,136 27,765

December 31 December 31 2020 2019 Balance Sheet Data Cash and cash equivalents $ 99,581 $ 126,201 Total assets 1,287,083 1,283,794 Total debt 313,521 359,859 Shareholders? equity 577,932 555,959

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 nonwoven 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:

-- Restructuring charge Metallized operations. This adjustment represents the charges incurred 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. The charge includes a non-cash charge of $5.0 million associated with accelerated depreciation and the write-off of inventory and spare parts in addition to cash severance costs totaling $6.1 million. -- 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. -- 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 previous corporate headquarters. -- Pension settlement expenses, net. This adjustment reflects expenses incurred in connection with the termination of the Companys qualified pension plan in 2019 and the reversion of excess pension plan assets to the Company in the second quarter of 2020. In the fourth quarter of 2019, the Company incurred a $75.3 million pension settlement charge in connection with the termination of the plan. Since the pension plan was fully funded, the settlement of the pension obligations did not require the use of the Companys cash, but instead was accomplished with plan assets. In connection with the reversion of excess pension plan assets in the second quarter of 2020, the Company incurred pension settlement expenses related to excise taxes, net of post settlement adjustments and certain related professional fees. -- 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. -- Airlaid capacity expansion. These adjustments reflect non-capitalized, one-time costs incurred related to the start-up of a new airlaid production facility in Fort Smith, Arkansas and implementation of a new business system. -- Debt refinancing costs. Represents a charge to write-off unamortized debt issuance costs in connection with the redemption of the Companys $250 million, 5.375% Notes. -- 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 the related integration. -- Fox River environmental matter. This adjustment excludes a gain and reflects a decrease in the Companys overall reserve included in income for the Fox River matter primarily due to the resolution of the litigation in the first quarter of 2019. -- 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 the tax benefit recognized 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 Year ended December 31In thousands 2020 2019 Cash from operations $ 108,993 $ 102,835 Capital expenditures (28,136 ) (27,765 )Free cash flow 80,857 75,070 Adjustments: Restructuring charge - Metallized operations 5,268 ? Cost optimization actions 3,799 6,657 Corporate headquarters relocation 1,070 ? Pension settlement 6,176 (53,401 )COVID-19 incremental costs 2,516 ? Airlaid capacity expansion costs ? 941 Strategic initiatives 1,210 249 Fox River environmental matter 3,526 21,470 Tax (refunds) payments on adjustments to adjusted (3,981 ) 224 earningsCARES tax refund (20,108 ) ? Adjusted free cash flow $ 80,333 $ 51,210

Net Debt December 31 December 31 In thousands 2020 2019 Current portion of long-term debt $ 25,057 $ 22,940 Long term debt 288,464 336,919 Total 313,521 359,859 Less: Cash (99,581 ) (126,201 )Net Debt $ 213,940 $ 233,658

Year YearEBITDA ended ended December December 31 31In thousands 2020 2019 Net income (loss) $ 21,298 $ (21,541 )Exclude: (Income) loss from discontinued (515 ) (3,670 )operations, net of taxAdd back: Taxes on Continuing operations 11,576 (9,242 ) Depreciation and amortization 56,600 50,820 Interest expense, net 6,623 9,285 EBITDA 95,582 25,652 Adjustments: Restructuring charge - Metallized operations 7,211 ? Cost optimization actions 5,979 8,583 Corporate headquarter relocation 871 ? Pension settlement expenses, net 6,154 75,326 COVID-19 incremental costs 2,715 ? Asset impairment charge 900 ? Airlaid capacity expansion costs ? 1,014 Strategic initiatives 1,567 249 Fox River environmental matter ? (2,509 )Timberland sales and related costs (1,382 ) (1,572 )Adjusted EBITDA $ 119,597 $ 106,743

Leverage Year ended Year ended December 31 December 31In thousands 2020 2019 Net Debt $ 213,940 $ 233,658 Divided by Adjusted EBITDA 119,597 106,743 Net leverage 1.8 x 2.2 x

Caution Concerning Forward-Looking Statements

Any statements included in this press release which 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 including, but not limited to, the impacts of the COVID-19 pandemic, changes in industry, business, market, and economic conditions, demand for or pricing of its products, market growth rates and currency exchange rates. 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 Glatfelter 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. More information about these factors is contained in Glatfelters filings with the U.S. Securities and Exchange Commission, which are available at www.glatfelter.com.

About Glatfelter

Glatfelter is a leading global supplier of engineered materials. The Companys high-quality, innovative and customizable solutions are found in tea and single-serve coffee filtration, personal hygiene and packaging products as well as home improvement and industrial applications. Headquartered in Charlotte, NC, the Companys annualized net sales approximate $916 million with customers in over 100 countries and approximately 2,415 employees worldwide. Operations include eleven manufacturing facilities located in the United States, Canada, Germany, France, the United Kingdom, and the Philippines. 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