Magnera Corp (MAGN) 2023 Q4 法說會逐字稿

Ladies and gentlemen, good day, and welcome to the Glatfelter's Q4 2023 earnings release conference call.

女士們、先生們，美好的一天，歡迎參加 Glatfelter 的 2023 年第四季收益發布電話會議。

Today's conference is being recorded.

今天的會議正在錄製中。

At this time, I would like to turn the conference over to Ramesh Shettigar.

這次，我想把會議交給拉梅什·謝蒂加爾。

Please go ahead, sir.

請繼續，先生。

Thank you, Lisa.

謝謝你，麗莎。

Good morning, and welcome to Glatfelter's 2023 fourth quarter earnings conference call.

早上好，歡迎參加 Glatfelter 的 2023 年第四季財報電話會議。

This is Ramesh Shettigar, Senior Vice President, Chief Financial Officer and Treasurer.

我是資深副總裁、財務長兼財務主管 Ramesh Shettigar。

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

我和 Glatfelter 總裁兼執行長 Thomas Fahnemann 在電話會議上介紹了我們第四季度的業績。

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

在我們開始演示之前，我有一些標準提醒。

During our call this morning, we will use the term adjusted earnings as well as other non-GAAP financial measures.

在今天早上的電話會議中，我們將使用「調整後收益」一詞以及其他非公認會計準則財務指標。

A reconciliation of these financial measures to our GAAP-based results is included in today's earnings release and in the investor slides.

這些財務指標與我們基於 GAAP 的業績的調節包含在今天的收益發布和投資者幻燈片中。

We will also make forward-looking statements today that are subject to risks and uncertainties, our 2022 Form 10-K and our 2023 Form 10-Q's, all of which have been filed with the SEC and today's release are available on our website, disclose factors that could cause our actual results to differ materially from these forward-looking statements.

我們今天也將做出受風險和不確定性影響的前瞻性聲明，我們的2022 年10-K 表格和2023 年10-Q 表格，所有這些都已向SEC 提交，今天的發佈內容可在我們的網站上獲取，披露可能導致我們的實際結果與這些前瞻性陳述有重大差異的因素。

These statements speak only as of today, and we are under no obligation to update them.

這些聲明僅代表今天，我們沒有義務更新它們。

I will now turn the call over to Thomas.

我現在將把電話轉給托馬斯。

Thank you, Ramesh.

謝謝你，拉梅什。

Hello, everyone, and welcome to Glatfelter's fourth quarter and full year 2023 investor call.

大家好，歡迎參加 Glatfelter 第四季和 2023 年全年投資者電話會議。

I'd begin by sharing that our fourth quarter results were solid and as expected, in light of continued industry-wide market challenges, we achieved adjusted EBITDA of $25.1 million for the quarter, consistent with the third quarter and $93 million for the full year in line with guidance.

首先我要分享的是，我們的第四季度業績穩健，正如預期的那樣，鑑於全行業市場持續面臨的挑戰，我們本季度調整後EBITDA 為2510 萬美元，與第三季度一致，全年為9300萬美元符合指引。

Also and most notably on February 7, we announced a significant strategic milestone for the company and our shareholders was proposed plans to merge Glatfelter with Berry Global's HHNF business, which I'll speak to in more details towards the end of the call.

此外，最值得注意的是2 月7 日，我們宣布了公司的一個重要戰略里程碑，我們的股東提出了將Glatfelter 與Berry Global 的HHNF 業務合併的計劃，我將在電話會議結束時詳細介紹這一點。

Turning now to the highlights of Glatfelter's fourth quarter performance.

現在轉向 Glatfelter 第四季業績的亮點。

The team achieved exceptional results during the fourth quarter in our family segment, generating improved volume and profitability compared to the prior quarter, which contributed to approximately $9 million improvement in adjusted EBITDA over a 12 months period.

該團隊在第四季度在我們的家庭細分市場中取得了出色的業績，與上一季度相比，銷量和盈利能力有所提高，這為12 個月內調整後EBITDA 帶來了約900 萬美元的改善。

This outcome is a direct reflection of the expanded commercial focus for our Sunterra branded products, operation improvements in each of our force bundling sites and careful cost discipline throughout the segments.

這一結果直接反映了我們 Sunterra 品牌產品商業重點的擴展、每個部隊捆綁站點的營運改進以及整個細分市場的嚴格成本控制。

In addition, we are pleased with the fourth quarter progress in our Composite Fibers segment as the underlying fundamentals are sustaining the gains made previously throughout the third quarter, with EBITDA margins approaching 10% in the second half of the year.

此外，我們對複合纖維業務第四季度的進展感到滿意，因為基本面正在維持之前整個第三季度取得的收益，下半年 EBITDA 利潤率接近 10%。

We are seeing the direct benefits from the turnaround actions we took throughout the year, largely attributed to addressing the price cost gap and improving our inclined wire production.

我們看到了全年採取的扭虧為盈行動帶來的直接效益，這主要歸功於解決價格成本差距和提高我們的斜線產量。

In addition, the segment benefited from having divested the Ober-Schmitten in Germany facility earlier in the year.

此外，該部門還受益於今年稍早剝離了德國 Ober-Schmitten 工廠。

As a result of this momentum, we have increased our commercial efforts on restoring key volumes as we carefully balance inventories with fixed cost absorption to match demand in our major markets.

由於這一勢頭，我們增加了恢復關鍵銷售的商業努力，同時仔細平衡庫存與固定成本吸收，以滿足主要市場的需求。

In our airlaid segment, we experienced pronounced competitive end market challenges with the segment's overall volumes down 5% compared to the fourth quarter of 2022, namely in our feminine hygiene and European tabletop categories.

在我們的氣流成網細分市場，我們經歷了明顯的終端市場競爭挑戰，該細分市場的整體銷量與 2022 年第四季相比下降了 5%，即女性衛生用品和歐洲桌面類別。

In addition, we conducted an extensive plant maintenance shutdown in our ethanol facility, which also negatively contributed to the segment's performance.

此外，我們對乙醇工廠進行了大規模的工廠維護停工，這也對該部門的業績產生了負面影響。

As we enter 2023, we quickly realized that the market required us to take significant actions to maintain our airlaid profitability and diversify our customer base.

進入 2023 年，我們很快意識到，市場要求我們採取重大行動，以維持我們的氣流成網盈利能力並使我們的客戶群多元化。

As a result, we consciously made the decision to protect margins through pricing actions at the potential expense of volume, which we are now seeing play out as consumers have been slow to respond in this inflationary environment.

因此，我們有意識地決定透過定價行動來保護利潤，但可能會犧牲銷量，我們現在看到這種情況正在發生，因為消費者在這種通膨環境下反應遲緩。

Also, we are working to diversify our customer base and product portfolio to reduce customer concentration while expanding our efforts in innovation and sustainability.

此外，我們正在努力使我們的客戶群和產品組合多樣化，以減少客戶集中度，同時擴大我們在創新和永續發展方面的努力。

We recognize this multifaceted approach will take time to deliver the intended results.

我們認識到這種多方面的方法需要時間才能實現預期結果。

I will now turn the call over to Ramesh.

我現在將把電話轉給拉梅什。

Thank you, Thomas.

謝謝你，托馬斯。

Slide 3 of the investor presentation provides a summary of our fourth quarter results.

投資者簡報的投影片 3 總結了我們第四季的業績。

Adjusted EBITDA was $25.1 million, which was in line with our third quarter results despite lower production typical in the fourth quarter to manage inventory levels. 2023 full year EBITDA was approximately $93 million and within the guidance range provided last quarter.

調整後的 EBITDA 為 2,510 萬美元，這與我們第三季的業績相符，儘管第四季度為管理庫存水準而生產量通常較低。 2023 年全年 EBITDA 約為 9,300 萬美元，在上個季度提供的指導範圍內。

Airlaid Materials EBITDA was lower by approximately $6 million versus a very strong quarter during the same period last year.

與去年同期非常強勁的季度相比，氣流成網材料 EBITDA 下降了約 600 萬美元。

Lower earnings were mainly driven by adverse price cost gap, lower shipments and planned maintenance downtime.

獲利下降的主要原因是不利的價格成本差距、出貨量減少以及計劃內的維修停機。

Composite Fibers EBITDA improved by approximately $2 million, driven by higher incline wire production and favorable price cost gap.

由於斜線產量增加和有利的價格成本差距，複合纖維 EBITDA 提高了約 200 萬美元。

Spunlace EBITDA was higher by approximately $4 million compared to the same quarter last year, driven by favorable price cost gap as well as turnaround actions related to headcount reductions and operational improvement.

受有利的價格成本差距以及與裁員和營運改善相關的扭虧為盈行動的推動，水刺 EBITDA 比去年同期增加了約 400 萬美元。

Slide 5 shows a summary of fourth quarter results for the Airlaid Materials segment revenues were down 19% on a constant currency basis versus the same period last year, mainly driven by lower shipments and lower selling prices of approximately $17 million.

幻燈片5 顯示了氣流成網材料部門第四季度業績摘要，以固定匯率計算，收入與去年同期相比下降了19%，這主要是由於出貨量下降和售價下降約1700 萬美元所致。

Selling prices were lower, mainly due to cost pass-throughs, reflecting declines in raw material and energy costs in Europe and selective price concessions to non floating customers to preserve volume.

銷售價格較低，主要是由於成本轉嫁，反映出歐洲原材料和能源成本下降以及為保持銷售而對非流動客戶進行選擇性價格優惠。

On a net basis, the price cost gap was unfavorable to earnings by $1.7 million.

以淨額計算，價格成本差距對收益不利 170 萬美元。

Volume was lower by 5% year-over-year, primarily due to weaker shipments in the tabletop category.

銷量較去年同期下降 5%，主要是由於桌面類別的出貨量疲軟。

This was largely driven by market softness in Europe, coupled with ongoing competition from alternate substrates due to the high cost of

這主要是由於歐洲市場疲軟，加上由於替代基材成本高昂而導致的持續競爭。

(inaudible).

（聽不清楚）。

Operations were unfavorable by $2 million versus the prior year primarily due to extended maintenance downtime in our Gatineau facility to improve operational efficiency.

與前一年相比，營運損失了 200 萬美元，這主要是由於我們的加蒂諾工廠為提高營運效率而延長了維護停機時間。

Also, wage and other general inflation were higher compared to the same period last year.

此外，薪資和其他總體通膨率也高於去年同期。

Foreign exchange and related currency hedging negatively impacted earnings by $900,000, primarily due to hedging gains from the prior year.

外匯和相關貨幣對沖對收益產生了 90 萬美元的負面影響，這主要是由於前一年的對沖收益。

Slide 6 shows a summary of fourth quarter results for the Composite Fibers segment, total revenues were down 18% on a constant currency basis due to lower shipments and selling prices of $8.2 million from floating contracts implemented with larger food and beverage customers.

幻燈片6 顯示了複合纖維部門第四季度的業績摘要，按固定匯率計算，總收入下降了18%，原因是與較大的食品和飲料客戶實施的浮動合約導致出貨量下降和售價820萬美元。

Excluding sales from the Ober-Schmitten operation that was divested in the third quarter, [Europe beer] volume was lower by approximately 7%.

不包括第三季剝離的 Ober-Schmitten 業務的銷售額，[歐洲啤酒]銷量下降了約 7%。

The decline was primarily due to wallcover and food and beverage categories, but was partially offset by improvement in composite laminates & technical specialties.

下降主要是由於壁紙和食品和飲料類別，但部分被複合層壓板和技術專業的改善所抵消。

Also, the fourth quarter was the first full quarter since the divestiture of our investment in site, eliminating any further ongoing losses and favorably impacted year-over-year results by $1.2 million.

此外，第四季度是我們剝離現場投資以來的第一個完整季度，消除了任何進一步的持續損失，並對同比業績產生了 120 萬美元的有利影響。

Lower prices for key raw materials, energy and freight improved earnings by $9.5 million versus the same quarter last year.

主要原材料、能源和貨運價格的下降使收益比去年同期增加了 950 萬美元。

Reversing the negative price cost gap trend, operations and other was favorable by $1.3 million, mainly driven by benefits from higher incline wire production and foreign exchange was unfavorable by $1.5 million, driven by hedging gains from last year.

扭轉了負價格成本差距的趨勢，營運和其他方面有利 130 萬美元，主要是由於斜線生產增加帶來的好處，而外匯則不利 150 萬美元，主要是受到去年對沖收益的推動。

Slide 7 shows a summary of Q4 results for the Spunlace segment revenues were down 7% on an constant currency basis, driven by lower selling prices of approximately $7 million coming from raw material constant supervision primarily in hygiene and wipes.

幻燈片7 顯示了水刺部門第四季度業績摘要，按固定匯率計算，水刺部門收入下降了7%，這是由於主要在衛生和擦拭巾領域的原材料持續監管導致售價降低約700 萬美元。

Materials volume was higher by 3%, driven by improved shipments in the consumer wipes and critical cleaning categories, partially offset by lower shipments in the health care and hygiene categories.

由於消費者擦拭巾和關鍵清潔類別的出貨量增加，材料銷量增加了 3%，但部分被醫療保健和衛生類別的出貨量下降所抵消。

Raw material, energy and other inflation were favorable by $9 million, resulting in positive price cost gap as we ended 2023.

原物料、能源和其他通膨有利 900 萬美元，導致 2023 年底出現正價格成本差距。

Operations FX and other items were $1.9 million favorable through intense focus on manufacturing efficiencies, headcount reductions and higher production.

透過高度專注於製造效率、裁員和提高產量，外匯業務和其他項目獲得了 190 萬美元的優惠。

In the fourth quarter Spunlace converting operation in Tennessee was impacted by a series of tornadoes that damaged a portion of the production and warehousing facilities.

第四季度，田納西州的水刺加工業務受到一系列龍捲風的影響，部分生產和倉儲設施受損。

Production was subsequently resumed and undamaged area within the facility.

隨後恢復生產，設施內區域未受損。

The cost of the repairs are expected to be fully covered by the company's insurance, except for a $5 million deductible, which is expense in the fourth quarter and has been excluded from adjusted earnings.

預計維修費用將由公司的保險全額承擔，但 500 萬美元的免賠額除外，該免賠額是第四季度的費用，已不包括在調整後的收益中。

Slide 8 shows corporate costs and other financial items.

幻燈片 8 顯示了公司成本和其他財務項目。

Corporate costs were approximately $1.9 million lower versus the fourth quarter of last year.

與去年第四季相比，企業成本減少了約 190 萬美元。

And on a full year basis, 2023 corporate costs were in line with 2022.

從全年來看，2023 年的企業成本與 2022 年持平。

Slide 9 shows our cash flow summary.

幻燈片 9 顯示了我們的現金流量摘要。

For full year of 2023.

2023 年全年。

Our adjusted free cash flow was approximately $30 million higher versus the same period in 2022.

與 2022 年同期相比，我們調整後的自由現金流增加了約 3,000 萬美元。

Working capital cash usage was lower by approximately $32 million, driven by raw material price declines and working capital initiatives under our turnaround strategy.

由於原物料價格下降和我們週轉策略下的營運資金舉措，營運資金現金使用量減少了約 3,200 萬美元。

Cash interest was elevated by approximately $26 million related to our refinancing and a higher interest rate environment.

由於我們的再融資和較高的利率環境，現金利息增加了約 2,600 萬美元。

Cash taxes paid in 2023 were lower by $15 million mainly driven by changes in jurisdictional income and timing of payments carried over into 2024.

2023 年繳納的現金稅減少了 1,500 萬美元，主要是由於轄區收入和結轉至 2024 年的繳款時間發生變化。

And CapEx was lower by $4 million.

資本支出減少了 400 萬美元。

Slide 10 shows some balance sheet and liquidity metrics.

投影片 10 顯示了一些資產負債表和流動性指標。

Our leverage ratio as calculated under the bank credit agreement was 3.4 times as of December 31, and we had available liquidity of approximately $135 million at year-end.

截至12月31日，根據銀行信貸協議計算，我們的槓桿率為3.4倍，年底我們的可用流動資金約為1.35億美元。

Slide 11 is a summary of our EBITDA and cash flow guidance for 2024.

投影片 11 總結了我們 2024 年 EBITDA 和現金流指引。

We're expecting 2024 EBITDA to be in the range of $110 million and $120 million.

我們預計 2024 年 EBITDA 將在 1.1 億美元至 1.2 億美元之間。

As it relates to cash flow items, we expect the following cash interest of approximately $70 million capital expenditures to be between $35 million and $40 million, cash taxes estimated to be between $15 million and $20 million.

由於與現金流量項目相關，我們預計後續約 7,000 萬美元的資本支出現金利息將在 3,500 萬至 4,000 萬美元之間，現金稅估計將在 1,500 萬至 2,000 萬美元之間。

Working capital cash usage is projected to be favorable by approximately $10 million and non-operating cash costs related to merger integration planning, tornado insurance deductible turnaround strategy and other one-time items are expected to be approximately $25 million.

營運資金現金使用預計將有利約 1,000 萬美元，與合併整合規劃、龍捲風保險免賠額週轉策略和其他一次性專案相關的非營運現金成本預計約為 2,500 萬美元。

This concludes my prepared remarks.

我準備好的發言到此結束。

I will now turn the call back to Thomas.

我現在將把電話轉回給托馬斯。

Thank you, Ramesh.

謝謝你，拉梅什。

As I mentioned at the start of the call, I'm really excited about the recently announced plans for merger with Berry Global's HHNF business, which is anticipated to close in the second half of 2024.

正如我在電話會議開始時提到的，我對最近宣布的與 Berry Global 的 HHNF 業務合併的計劃感到非常興奮，該計劃預計將於 2024 年下半年完成。

The proposed combination of Berry, merging a majority of its global nonwovens and films business with Glatfelter will create a leading publicly traded company in the specialty materials industry.

Berry 的提案合併將其全球大部分非織造布和薄膜業務與 Glatfelter 合併，將創建一家特殊材料行業領先的上市公司。

The proposed transaction values the combined company at pro forma revenue of approximately $3.6 billion and pro forma adjusted EBITDA of approximately $455 million, including expected synergies.

擬議交易對合併後公司的預期收入約為 36 億美元，預計調整後 EBITDA 約為 4.55 億美元，其中包括預期的綜效。

For our shareholders this transaction provides a strong foundation for growth by addressing Glatfelter's current subscale size within the capital markets and rating agencies and with customers and suppliers.

對於我們的股東來說，此交易透過解決 Glatfelter 目前在資本市場和評級機構以及客戶和供應商中的規模問題，為成長奠定了堅實的基礎。

Also, the combined company creates greater balance sheet capacity for future strategic acquisitions and this transaction also improves Glatfelter's leverage profile to a pro forma net leverage of four times.

此外，合併後的公司為未來的策略性收購創造了更大的資產負債表能力，此次交易也將 Glatfelter 的槓桿狀況提高至預期淨槓桿率的四倍。

We are excited about the prospect of joining forces to leverage our combined talent technologies scale and footprint to deliver a range of complementary products and solutions for our customers.

我們對聯手利用我們綜合人才技術規模和足跡為客戶提供一系列互補產品和解決方案的前景感到興奮。

We anticipate Glatfelter will benefit in areas where Berry stronger, such as the Asia Pacific and Latin American markets and the converting capacity of the two business will create opportunities for Glatfelter SunPower brand.

我們預期 Glatfelter 將受益於 Berry 強大的領域，例如亞太和拉丁美洲市場，而這兩項業務的轉換能力將為 Glatfelter SunPower 品牌創造機會。

We will work diligently to establish a successful start for the new business with meaningful innovation and a platform for long-term growth.

我們將努力工作，以有意義的創新和長期成長的平台為新業務建立成功的開端。

Finally, I'm confident the two organizations share similar culture and set of values that will serve stakeholders very well between now and the time we closed on the proposed transaction.

最後，我相信這兩個組織擁有相似的文化和價值觀，從現在到我們完成擬議交易，這將為利益相關者提供良好的服務。

The Glatfelter team will remain tenacious and focused on delivering strong performance in 2024.

Glatfelter 團隊將保持頑強的毅力，專注於在 2024 年取得強勁業績。

We will continue to further execute on our turnaround strategy as we prepare for a successful integration once the proposed transaction is completed.

我們將繼續進一步執行我們的扭虧為盈策略，為擬議交易完成後的成功整合做好準備。

Given the outstanding work, the Glatfelter team has completed in 2023, I believe, in our ability to deliver full-year EBITDA in the range of $110 million to $120 million for 2024.

鑑於 Glatfelter 團隊的出色工作，我相信我們有能力在 2023 年完成 2024 年全年 EBITDA 1.1 億至 1.2 億美元的任務。

This guidance reflects anticipated continued headwinds and limited market visibility along with macroeconomic volatility, particularly in Europe.

該指引反映了預期的持續阻力和有限的市場能見度以及宏觀經濟波動，特別是在歐洲。

Despite these ongoing challenges, our business fundamentals remain strong and we eagerly anticipate shaping the new organization along with our Berry colleagues.

儘管面臨這些持續的挑戰，我們的業務基礎仍然強勁，我們熱切地期望與 Berry 同事一起塑造新的組織。

And finally, we look forward to providing updates on our progress in the months ahead.

最後，我們期待在未來幾個月提供最新進展。

I will now open the call for questions.

我現在開始提問。

(Operator Instructions)

（操作員說明）

Roger Spitz, Bank of America.

羅傑‧斯皮茨，美國銀行。

Hey, good morning.

嗨，早安。

This is actually Olivia on for Roger.

這其實是奧莉薇亞為羅傑代言的。

Thanks for taking our questions.

感謝您回答我們的問題。

Hi Olivia.

嗨奧利維亞。

Hi, good morning.

早安.

And so what are the market shares of HHNF and Glatfelter and other main players in the key business were on Glatfelter and HHNF overlap?

那麼，HHNF 和 Glatfelter 以及 Glatfelter 和 HHNF 重疊的關鍵業務中的其他主要參與者的市佔率是多少？

Okay.

好的。

Even though we have product in the same and categories like health, hygiene, we are really very complementary.

儘管我們的產品屬於健康、衛生等相同類別，但我們確實非常互補。

So we don't really compete product on product, but it's we just compete in the same segments.

因此，我們並不是真正在產品上競爭，而是在相同的細分市場中競爭。

So this is really one of the really very positive things about this proposed merger that we will have some synergies, but we are really not competing product by product just in the same segments with different products.

因此，這確實是這次擬議合併的真正非常積極的事情之一，我們將產生一些協同效應，但我們實際上並不是在同一細分市場中用不同的產品進行逐個產品的競爭。

Got it.

知道了。

And what percentage of the global market to fiber-based nonwoven directly compete with poly coupling based on nonwoven?

纖維基非織造布的全球市佔率有多大，與基於非織造布的聚耦合直接競爭？

I mean, this is a very difficult question to come up really with a percentage.

我的意思是，這是一個很難給出百分比的問題。

But I can what I can say is that there's many different end uses where people can make a choice between the different products.

但我可以說的是，有許多不同的最終用途，人們可以在不同的產品之間做出選擇。

And it always varies based on the performance characteristics.

它總是根據性能特徵而變化。

I mean, auto building or construction are using different products and the health care section in certain applications, you can even go either way you can go more on the polymer side, we can go more on the fiber side.

我的意思是，汽車製造或建築在某些應用中使用不同的產品和醫療保健部分，你甚至可以選擇任何一種方式，你可以更多地使用聚合物方面，我們可以更多地使用纖維方面。

But again, as I mentioned before, the product portfolios of various business and ours are really complementary and there are not a lot of product, which are the same.

但同樣，正如我之前提到的，各個業務的產品組合和我們的產品組合確實是互補的，並且沒有很多產品是相同的。

So but again, there's some flexibility for customers to switch depending on the application.

但同樣，客戶可以根據應用程式靈活地進行切換。

Okay.

好的。

Got it.

知道了。

Thank you.

謝謝。

And then how much CapEx does HHNF spend?

那麼 HHNF 花了多少資本支出呢？

Olivia, historically, they've spent anywhere between 3% and 6% of sales.

Olivia，從歷史上看，他們的支出佔銷售額的 3% 到 6% 之間。

But looking forward, I would say probably for the next two to three years, I think it's fair to project probably 2% to 3% of sales and then longer term, probably more along the lines of 4% to 5%.

但展望未來，我認為在接下來的兩到三年內，預計銷售額可能會達到 2% 到 3%，然後從長遠來看，可能會達到 4% 到 5%，這是公平的。

Okay.

好的。

Thank you.

謝謝。

That's very helpful.

這非常有幫助。

And I guess what is the maintenance CapEx and normalized CapEx of the new Co.,?

我猜新公司的維護資本支出和標準化資本支出是多少？

Yes, Olivia, that's a it's a bit too early for us to comment on that.

是的，奧利維亞，我們對此發表評論還為時過早。

You know, as these two companies come together as we look at the asset portfolio, as we look at the scheduling of what is maintenance, what is growth that will probably take some time before we can provide a finer point of view on that.

你知道，當我們審視資產組合時，當我們審視什麼是維護、什麼是成長的計畫時，這兩家公司走到一起，這可能需要一些時間，我們才能對此提供更精細的觀點。

Okay, that's fair.

好吧，這很公平。

Thank you.

謝謝。

And then I guess one of the Glatfelter bonds benefit from guarantees of all the mature entities that will be providing guarantees to the new co-credit facility?

然後我猜 Glatfelter 債券之一受益於所有將為新的聯合信貸安排提供擔保的成熟實體的擔保？

Yes, the Glatfelter bonds are expected to be guaranteed by all of the domestic entities that will guarantee new Co's credit facilities and to the extent that those credit facilities include foreign borrowers or guarantors, those foreign entities will not be expected to guaranty or Glatfelter bonds.

是的，Glatfelter 債券預計將由所有為新公司信貸安排提供擔保的國內實體提供擔保，並且如果這些信貸安排包括外國借款人或擔保人，則預計這些外國實體將不會為 Glatfelter 債券提供擔保。

Okay, thank you.

好的謝謝。

And then how much debt will be transferred from HHNF and will be repaid with new co- credit facility?

那麼有多少債務將從 HHNF 轉移並透過新的共同信貸額度償還？

Yes, so I would say about $1.5 billion will be the debt that will be raised.

是的，所以我想說大約 15 億美元將是籌集的債務。

That will be coming from SpinCo into the merger, of which about $1 billion will be used to dividend up to Berry, about call it $400 million to retire all of the existing Glatfelter debt between the revolver and the Angelo Gordon term loan.

這筆資金將來自SpinCo 合併後的資金，其中約10 億美元將用於向Berry 分紅，大約相當於4 億美元，用於償還左輪手槍和安吉洛·戈登定期貸款之間所有現有的Glatfelter債務。

And then the rest will be for transaction costs.

然後剩下的就是交易費用。

But at closing, the new company, new Co will essentially start with an undrawn revolver.

但在交易結束時，新公司、新公司基本上將從一把未拔出的左輪手槍開始。

Okay.

好的。

Thank you.

謝謝。

That's very helpful.

這非常有幫助。

And then our last question on how does new co plants to report on HHNF in the segment?

然後我們的最後一個問題是新的合作工廠如何報告該細分市場中的 HHNF？

Olivia, this is really too early right now.

奧莉維亞，現在還太早。

I had two weeks the announcement and as I mentioned before, will also provide information along the line to closing, but this is too early right now to tell.

我有兩週的時間發佈公告，正如我之前提到的，我還將提供截止日期前的信息，但現在下結論還為時過早。

Thank you so much.

太感謝了。

That's all for us.

這就是我們的全部。

Thanks, Olivia.

謝謝，奧莉維亞。

Mike Ginnings, Angelo Gordon.

麥克金寧斯，安吉洛戈登。

Morning, Thomas, Ramesh.

早安，湯瑪斯，拉梅什。

Mike, good morning.

麥克，早安。

How are you?

你好嗎？

Good morning.

早安.

Excellent.

出色的。

So let's talk about Spunlace for a minute.

讓我們來談談水刺法。

Obviously kind of a standout performance and kind of nice trajectory over the course of the year.

顯然，這一年的表現非常出色，軌跡也不錯。

Can you give us a little more color about how much of this is sustainable, how much it's onetime in nature and generally kind of how you're thinking about that business for '24?

您能否向我們詳細介紹一下，其中有多少是可持續的，有多少是一次性的，以及您對 24 世紀這項業務的整體看法？

Sure.

當然。

Again we are very pleased with the and this is a real turnaround result and story, if you think about it where we started.

我們再次對此感到非常滿意，如果您考慮我們的起點，那麼這是一個真正的轉變結果和故事。

And so we worked very diligently to look at our two sites for the hygiene wide a segment on national and so we dramatically improved our operational performance, whether it's ways down time line availability and quality.

因此，我們非常努力地在全國範圍內檢查我們的兩個衛生場所，因此我們極大地提高了我們的營運績效，無論是在時間線可用性和品質方面。

So that's helped tremendously to improve the performance.

所以這對提高性能有很大幫助。

And on the other side, our Santera business where we are now and I think we reported a year ago, it takes a little time to get into new segments and all that and we are focusing on the critical cleaning area where we see a real unique opportunity for us.

另一方面，我們現在的 Santera 業務，我想我們一年前就曾報道過，進入新的細分市場需要一點時間，而我們正專注於關鍵的清潔領域，在那裡我們看到了真正獨特的領域我們的機會。

And this is coming now and that's paying off.

現在這一切即將到來，並且正在得到回報。

So to answer your question is if you look at Q4 performance.

因此，要回答你的問題，就看第四季的表現。

This is definitely I mean, we're very pleased with that.

這絕對是我的意思，我們對此感到非常滿意。

And we see that we were able to do the turnaround.

我們看到我們能夠扭轉局面。

Can you take Q4 times four.

你能用 Q4 乘以四嗎？

That's probably still a little bit too early, and we still need to see.

這可能還為時過早，我們仍然需要看看。

But we are very excited about the Spunlace business many about SunPower because we are seeing growth now and further growth will come from the SunPower side.

但我們對 SunPower 的水刺業務感到非常興奮，因為我們現在看到了成長，並且進一步的成長將來自 SunPower 方面。

And so I think here we made a huge step forward, and I would characterize it right now, Mike, this business is now and on a good foundation.

所以我認為我們在這裡向前邁出了一大步，我現在就描述一下，麥克，這項業務現在已經有了良好的基礎。

We stabilized that and they are not losing money.

我們穩定了這一點，他們沒有賠錢。

We're making money stabilizing it.

我們正在賺錢來穩定它。

We are roundabout at a 7% EBITDA margin.

我們的 EBITDA 利潤率為 7%。

And I think we know where to go and we are very optimistic.

我認為我們知道該往哪裡走，而且我們非常樂觀。

Congrats.

恭喜。

I know that's been a big focus in then on the airlaid side, can you help us understand a little bit more interesting some of the commentary, mostly around Europe being some of the softness.

我知道這是當時氣流成網的一大焦點，您能否幫助我們理解一些更有趣的評論，主要是圍繞歐洲的一些柔軟性。

Can you maybe give a little bit more visibility into sort of what you're seeing in the US versus what you're seeing in Europe, whether that be kind of volume or margin or sort of how do you think is best to lay that out for us?

您能否更詳細地了解您在美國看到的情況與您在歐洲看到的情況，無論是數量還是利潤率，還是您認為最好的佈局方式為了我們？

I mean, if you look at our Airlaid business, we have, again, still a lot of headwinds, and there was still also some destocking going on in 2023.

我的意思是，如果你看看我們的氣流成網業務，我們仍然面臨很多阻力，而且 2023 年仍然存在一些去庫存的情況。

The main critical areas as far as volume are concerned is feminine hygiene, which was under pressure and specifically the European tabletop segment where we were really, to be honest, disappointing the market, I mean the volumes are really down there and what because customers also look for cheaper alternatives.

就銷售而言，主要關鍵領域是女性衛生用品，該領域面臨壓力，特別是歐洲桌面細分市場，老實說，我們確實令市場失望，我的意思是銷量確實很低，因為客戶也尋找更便宜的替代品。

I mean, they like the product it's high quality, but based on inflation and the overall economic situation, mainly in Europe, I mean, a lot of customers kind of move to, let me say, cheaper solutions.

我的意思是，他們喜歡高品質的產品，但基於通貨膨脹和整體經濟狀況（主要是在歐洲），我的意思是，很多客戶會轉向更便宜的解決方案。

Okay.

好的。

Now the other one, which we are doing is we are looking at the LA product for also here finding different actually segments where our product could really add value to customers.

現在，我們正在做的另一件事是，我們正在研究洛杉磯的產品，在這裡也找到不同的實際細分市場，在這些細分市場中，我們的產品可以真正為客戶增加價值。

And that work is ongoing, takes a little bit time.

這項工作正在進行中，需要一點時間。

And that's also if I look into 2024 the second half of 2024 and Airlaid would be better than the first half.

如果我展望 2024 年，那麼 2024 年下半年，氣流成網會比上半年更好。

We already have projects and all that.

我們已經有了項目等等。

And that's coming, but it takes a little bit of time.

這即將到來，但需要一點時間。

And at the same time, we are also, as mentioned before, we had a very high concentration on big customers, which actually represented a big portion of our Airlaid business.

同時，正如先前提到的，我們也非常關注大客戶，這實際上代表了我們氣流成網業務的很大一部分。

And again, if the market is in a more or less balanced situation or even sold out, this is fine.

再說一次，如果市場處於或多或少平衡的情況，甚至售空，那也沒關係。

But we realized this and end of 2022, early 2023.

但我們在 2022 年底、2023 年初意識到了這一點。

And we said when the market is turning, we need to be more robust in our customer portfolio.

我們說過，當市場轉變時，我們需要更強大的客戶組合。

And we are doing that as well.

我們也在這樣做。

So we lost consciously some volume and we are replacing this volume with what I would call B and C customers.

因此，我們有意識地失去了一些銷量，我們正在用我所說的 B 和 C 客戶來取代這個銷售。

But also that takes a little bit of time.

但這也需要一點時間。

And last but not least in LA.

最後但並非最不重要的一點是在洛杉磯。

There's one, unfortunately, phenomena that if I look at the fluff pulp pricing, everything went down, but fluff pulp was much slower to come down and now as of even going up again.

不幸的是，有一個現象，如果我看看絨毛漿的價格，一切都下降了，但絨毛漿的下降速度要慢得多，現在甚至又開始上漲。

So that's another issue which we which we have to tackle.

這是我們必須解決的另一個問題。

And it's a challenge in our Airlaid business yeah, to all that combine made a little more complicated, but we have a clear strategy.

這對我們的氣流成網業務來說是一個挑戰，是的，所有這些結合起來都變得更加複雜，但我們有一個明確的策略。

So we are executing that strategy.

所以我們正在執行該策略。

And you will see that the second half, it would be better than the first half and we'll get back to where we used to have.

你會看到下半場會比上半場更好，我們會回到以前的水平。

Excellent.

出色的。

Thank you, guys, very much.

非常感謝你們，夥伴們。

Congrats again on the quarter.

再次恭喜本季。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

And ladies and gentlemen, there are no further question, and this does conclude today's Glatfelter's Q4 2023 earnings release conference call.

女士們先生們，沒有其他問題了，今天 Glatfelter 的 2023 年第四季財報發布電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。