Magnera Corp (MAGN) 2024 Q2 法說會逐字稿

Good day, and welcome to the Glatfelter second-quarter 2024 earnings release conference call.

美好的一天，歡迎參加 Glatfelter 2024 年第二季財報發布電話會議。

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 Mr. Ramesh Shettigar.

現在，我想把會議交給拉梅什·謝蒂加爾先生主持。

Please go ahead, sir.

請繼續，先生。

Thank you, Anna.

謝謝你，安娜。

Good morning and welcome to Glatfelter's 2024 second quarter earnings conference call.

早安，歡迎參加 Glatfelter 2024 年第二季財報電話會議。

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 second quarter results is Thomas Fahnemann, President and Chief Executive Officer of Glatfelter and myself.

Glatfelter 總裁兼執行長 Thomas Fahnemann 和我自己在電話中公佈了我們第二季的業績。

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, both of which are available on our website.

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，兩者均可在我們的網站上找到。

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

今天我們也將做出前瞻性聲明，這些聲明有風險和不確定性。

Our 2023 Form 10-K, which has been filed with the SEC and today's release disclose factors that could cause our actual results to differ materially from these forward-looking statements.

我們已向 SEC 提交的 2023 年 10-K 表格和今天發布的文件披露了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 undertake no obligation to update them.

這些聲明僅代表今天，我們不承擔更新這些聲明的義務。

And I will now turn the call over to Thomas.

我現在將把電話轉給托馬斯。

Thanks Ramesh.

謝謝拉梅什。

Hello, everyone, and welcome to Glatfelter's second-quarter 2024 investor call.

大家好，歡迎參加 Glatfelter 的 2024 年第二季投資人電話會議。

I'm pleased with the continued progress of the proposed merger with Berry's HHNF business during the second quarter as we planned for the closing of the transaction later this year.

我對第二季與 Berry 的 HHNF 業務合併的持續進展感到高興，因為我們計劃在今年稍後完成交易。

The team continues to diligently progress the various legal and regulatory activities in preparation for when the business will operate under the name of [Magnera] with Curt Bagley as CEO currently President of Berry's HHNS. division.

團隊繼續努力推進各種法律和監管活動，為公司將以 [Magnera] 名義營運、Curt Bagley 擔任執行長（現任 Berry 的 HHNS 總裁）做好準備。分配。

For today's earnings call, I will focus on [club holders] steadfast second quarter performance as we positioned the business to successfully launch Magnera.

在今天的財報電話會議上，我將重點放在[俱樂部持有者]第二季度的穩定表現，因為我們將業務定位為成功推出 Magnera。

Now the highlights of our performance included several meaningful outcomes.

現在，我們表現的亮點包括幾個有意義的成果。

We achieved $25.6 million of adjusted EBITDA for an $8.3 million improvement compared to the same quarter last year.

我們實現了 2,560 萬美元的調整後 EBITDA，與去年同期相比增加了 830 萬美元。

The composite fibers and spunlace businesses achieved higher EBITDA of approximately $5 million and $3 million, respectively, compared to the same quarter last year.

與去年同期相比，複合纖維和水刺業務的 EBITDA 分別提高了約 500 萬美元和 300 萬美元。

The results were driven by higher shipments, increased production and rigorous management of price cost gaps.

這一業績的推動因素包括出貨量增加、產量增加以及對價格成本差距的嚴格管理。

The airlaid materials segment continued to experience softer demand and therefore, we adjusted production downward, resulting in a $2 million decline in EBITDA compared to the same period in 2023.

氣流成網材料領域的需求持續疲軟，因此我們下調了產量，導致 EBITDA 與 2023 年同期相比下降了 200 萬美元。

When combined the segment's performance contributed to improved adjusted free cash flow, which was approximately $43 million higher compared to the second quarter of last year.

合併後，該部門的業績有助於改善調整後的自由現金流，與去年第二季相比增加了約 4,300 萬美元。

While our markets remain mixed, especially in Europe, I am pleased with the ongoing contributions and disciplined way of managing our business that resulted from our multiyear turnaround efforts.

雖然我們的市場仍然好壞參半，尤其是在歐洲，但我對我們多年來的扭虧為盈努力所帶來的持續貢獻和嚴格的業務管理方式感到滿意。

The improvements we are seeing in the performance of both composite fibers and spunlace are trending in the right direction.

我們看到複合纖維和水刺不織布性能的改進正朝著正確的方向發展。

And particularly pleased that spunlace has delivered $20 million of adjusted EBITDA on a trailing 12-month basis.

尤其令人高興的是，水刺在過去 12 個月的基礎上實現了 2000 萬美元的調整後 EBITDA。

Also, we are actively working to expand our airlaid product portfolio through new product innovation to address continued demand challenges, which I will speak to towards the end of today's call.

此外，我們正在積極努力透過新產品創新來擴大我們的氣流成網產品組合，以應對持續的需求挑戰，我將在今天的電話會議結束時談到這一點。

For these reasons, I remain confident in our ability to contribute for the long-term success of Magnera.

基於這些原因，我對我們為 Magnera 的長期成功做出貢獻的能力充滿信心。

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。

Following up on the financial highlights, Thomas, just provided.

托馬斯剛剛提供了有關財務要點的後續資訊。

Slide 5 shows a summary of second quarter results for the airlaid materials segment.

投影片 5 顯示了氣流成網材料領域第二季業績摘要。

Revenues were down 14% on a constant currency basis versus the same period last year, driven primarily by lower selling prices of approximately $13 million and 4% lower shipments.

以固定匯率計算，營收與去年同期相比下降了 14%，這主要是由於售價下降約 1,300 萬美元以及出貨量下降 4%。

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 regain 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恢復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 favorable to earnings by $1.2 million.

以淨額計算，價格成本差距有利於獲利 120 萬美元。

Volume was lower year over year, primarily due to weaker shipments in hygiene and wipes categories.

銷量較去年同期下降，主要是由於衛生用品和濕紙巾類別的出貨量疲軟。

The decline in hygiene was largely driven by pricing actions taken in 2023 to protect margins and improve our price cost dynamic.

衛生用品的下降主要是由於 2023 年為保護利潤和改善價格成本動態而採取的定價行動造成的。

Conversely, the decline in wipes category was related to timing of customer orders, and we expect higher wipes volume in the third quarter.

相反，濕紙巾類別的下降與客戶訂單的時間安排有關，我們預計第三季濕紙巾銷售量將會增加。

Operations were unfavorable by $2.2 million versus the prior year, primarily due to lower production of approximately 3,800 tons to manage inventory levels.

營運狀況比前一年減少了 220 萬美元，主要是由於為了管理庫存水準而產量減少了約 3,800 噸。

Foreign exchange and related currency hedging negatively impacted earnings by $500,000, mainly due to the weaker euro.

外匯和相關貨幣對沖對收益產生了 50 萬美元的負面影響，主要是由於歐元疲軟。

And EBITDA margin for the segment improved by 20 basis points versus the prior year quarter.

該部門的 EBITDA 利潤率比去年同期提高了 20 個基點。

Slide 6 shows a summary of second quarter results.

投影片 6 顯示了第二季業績摘要。

For the composite fibers segment.

用於複合纖維部分。

Total revenues were down 6% on a constant currency basis, mainly due to lower selling prices of $7.5 million from floating contracts implemented with larger food and beverage customers and targeted pricing actions to preserve volume.

以固定匯率計算，總收入下降了 6%，主要是由於與較大的食品和飲料客戶實施的浮動合約的售價降低了 750 萬美元，以及為保持銷量而採取的有針對性的定價行動。

Shipments were higher in all categories except wallcover, when compared to the same period last year.

與去年同期相比，除壁紙外，所有類別的出貨量均有所增加。

Overall, the price-cost gap for composite fibers remained favorable, with prices declining by $7.5 million versus lower prices for key raw materials, energy and freight, which improved earnings by $8.4 million versus the same quarter last year.

總體而言，複合纖維的價格成本差距仍然有利，與主要原材料、能源和貨運價格下降相比，價格下降了 750 萬美元，使收益比去年同期增加了 840 萬美元。

Operations and other was favorable by $1.7 million, mainly due to higher incline wire production.

營運及其他方面有利 170 萬美元，主要是由於斜線產量增加。

Foreign exchange was slightly favorable by $100,000, and EBITDA margins for the segment improved by 450 basis points versus the prior year quarter.

外匯匯率略微有利 10 萬美元，該部門的 EBITDA 利潤率比去年同期提高了 450 個基點。

Slide 7 shows a summary of second quarter results for the spunlace segment.

投影片 7 顯示了水刺部門第二季業績摘要。

Revenues were up 4% on a constant currency basis, driven by higher shipments of 5%, mainly in the critical cleaning and hygiene categories.

以固定匯率計算，營收成長 4%，主要得益於關鍵清潔和衛生類別的出貨量成長 5%。

This was partially offset by lower selling prices of approximately $2 million coming from raw material cost pass-through provisions, primarily in the hygiene and wipes category.

這被原料成本轉嫁條款（主要是衛生用品和擦拭巾類別）的售價降低約 200 萬美元所部分抵銷。

Raw material, energy and other inflation were favorable by $4.1 million, resulting in positive price cost gap.

原物料、能源和其他通貨膨脹有利於 410 萬美元，導致價格成本差距呈正值。

Operations were $1.1 million favorable, mainly driven by higher production.

主要由於產量增加，營運利潤達 110 萬美元。

Foreign exchange negatively impacted earnings by $400,000 coming from the weaker euro.

由於歐元疲軟，外匯對收益產生了 40 萬美元的負面影響。

And EBITDA margins for the segment improved by 410 basis points versus the prior year quarter.

該部門的 EBITDA 利潤率比去年同期提高了 410 個基點。

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 same versus the second quarter of last year.

與去年第二季相比，企業成本減少了約 190 萬美元。

This was primarily driven by loss recovery related to a fiber vendor for faulty materials supplied to Glatfelter in 2022.

這主要是由於與一家光纖供應商在 2022 年向 Glatfelter 供應的有缺陷材料相關的損失恢復所致。

Strategic Initiatives costs were again higher this quarter, driven by our proposed transaction with Berry's HHNF business, which we are expecting to close in the second half of this year.

由於我們與 Berry 的 HHNF 業務擬議的交易（我們預計該交易將於今年下半年完成），本季戰略計劃成本再次上升。

Slide 9 shows our cash flow summary for the second quarter of 2024 our adju0sted free cash flow was approximately [$42 million] higher versus the same period in 2023.

投影片 9 顯示了我們 2024 年第二季的現金流摘要，我們調整後的自由現金流比 2023 年同期高出約 [4,200 萬美元]。

This was largely driven by higher earnings of approximately $8 million and lower working capital usage of approximately $40 million, primarily from accounts payable.

這主要是由於收益增加約 800 萬美元，以及營運資金使用量減少約 4,000 萬美元（主要來自應付帳款）。

Capital expenditures were lower by $2 million, while other operating items lowered cash flow by approximately $7 million, largely driven by fewer vendor rebates this quarter compared to the same quarter last year.

資本支出減少了 200 萬美元，而其他營運項目的現金流量減少了約 700 萬美元，這主要是由於本季供應商回扣比去年同期減少。

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 3.5 times as of June 30, and we had available liquidity of approximately $112 million at the end of Q2.

截至 6 月 30 日，根據銀行信貸協議計算的槓桿率為 3.5 倍，第二季末我們可用的流動資金約為 1.12 億美元。

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 demonstrated by our first half results, I'm pleased with the underlying performance of our business despite a challenging market backdrop, especially in Europe.

正如我們上半年的業績所證明的那樣，儘管市場背景充滿挑戰，尤其是在歐洲，但我對我們業務的基本表現感到滿意。

Now turning to our efforts in innovation, we have made very good progress on a few key initiatives during the second quarter.

現在轉向我們在創新方面的努力，第二季我們在一些關鍵舉措上取得了很好的進展。

One initiative, in particular, targets assumed that media specialty materials to be manufacturers within our elite segment in Europe, which should generate a favorable mix relative to our hygiene portfolio.

特別是一項舉措，目標假設媒體特種材料是我們歐洲精英細分市場的製造商，這應該會產生相對於我們的衛生產品組合有利的組合。

We have entered into a supply agreement with a new customer for this product, and we will continue to enhance the product to its full potential in the months ahead.

我們已與該產品的新客戶簽訂了供應協議，我們將在未來幾個月繼續增強該產品的全部潛力。

Equally exciting for our customer and the team this product is biodegradable and meets the standards established by the EU single-use plastics, directives.

對於我們的客戶和團隊來說，同樣令人興奮的是，該產品可生物降解，並且符合歐盟一次性塑膠指令制定的標準。

In closing today's call, I want to take this opportunity to again thank our Glatfelter employees, for their commitment and dedication to the company.

在今天的電話會議結束時，我想藉此機會再次感謝 Glatfelter 員工對公司的承諾和奉獻。

As we are now well underway with the third quarter, I commend the entire team for their hard work these past several years and especially this year, having to successfully run the day-to-day business while also preparing for the transition to make narrow.

由於第三季的工作進展順利，我對整個團隊在過去幾年，尤其是今年的辛勤工作表示讚揚，他們必須成功經營日常業務，同時也為縮小規模的過渡做好準備。

I'm proud to lead this team and I feel very good about the capabilities of our people and look forward to their continued success for many years to come.

我很自豪能夠領導這個團隊，我對我們員工的能力感到非常滿意，並期待他們在未來的許多年裡繼續取得成功。

I will now open the call for questions.

我現在開始提問。

(Operator Instructions) Mike Ginnings, TPG Angelo Gordon.

（操作員說明）Mike Ginnings，TPG Angelo Gordon。

Morning, guys.

早安，夥計們。

Congrats on the quarter.

恭喜本季。

Nice progress out of Q1.

第一季取得了不錯的進展。

I guess maybe starting with some questions on the airlaid segment.

我想可能會從有關氣流成網部分的一些問題開始。

There's typically been a stronger performance in the back half of the year.

通常在下半年會有更強勁的表現。

What are you seeing out of seasonality in the business in the first instance?

您首先從業務的季節性中看到了什麼？

And then I guess kind of secondarily, we've been talking about these volume-related issues now for a couple of quarters, primarily in Europe, any sort of thoughts or visibility on those matters, whether it's either the market itself or the initiatives that you guys have undertaken to find other sales channels?

然後我想其次，我們已經討論了這些與數量相關的問題幾個季度了，主要是在歐洲，對這些問題的任何想法或可見性，無論是市場本身還是倡議你們已經開始尋找其他銷售渠道了嗎？

Okay.

好的。

Mike, maybe taking the second part of your question first, if we look at the volumes, yeah, we have seen some weakness in the market.

麥克，也許先考慮你問題的第二部分，如果我們看一下交易量，是的，我們已經看到了市場的一些疲軟。

But what we are seeing right now is that North America is clearly healthier than Europe.

但我們現在看到的是，北美顯然比歐洲更健康。

We are still faced with some issues in Europe, but we're also seeing a little bit of an improvement in Europe.

我們在歐洲仍然面臨一些問題，但我們也看到歐洲有所改善。

But definitely North America is much healthier than Europe.

但北美肯定比歐洲健康得多。

What we have done and we mentioned this before, we are really looking in diversifying our product portfolio.

我們所做的以及我們之前提到的，我們確實在尋求產品組合的多樣化。

And I'm really, very happy that we were able to get a new product into the market.

我真的非常非常高興我們能夠將新產品推向市場。

So it's a product we signed a contract, so that really helps us and from if you look at seasonality, I would also expect that the airlaid volume, despite all the market challenges, will be stronger in the second half of this year than in the first half, and we're already kind of seeing some signs in July.

因此，這是我們簽署合約的產品，因此這確實對我們有幫助，如果您考慮季節性，我還預計，儘管面臨所有市場挑戰，今年下半年的氣流成網量將比去年同期更強上半年，我們已經在七月份看到了一些跡象。

Yes, excellent.

是的，非常好。

And I guess, Thomas, as we think about how to contextualize that maybe in terms of utilization rates.

我想，托馬斯，當我們考慮如何將其置於利用率方面時。

I know there's some commentary around that last quarter.

我知道上個季度有一些評論。

Any color you can provide on airlaid in terms of sort of where we are from a utilization perspective in North America and sort of where we are in Europe?

從我們在北美和歐洲的利用角度來看，您可以提供有關氣流成網的任何顏色嗎？

(multiple speakers) So, in terms of utilization, Mike, on the airlaid side, we were roughly around 80% utilization in the first half of 2024 and for the second half, maybe slightly higher than that going into the second half of this year.

（多名發言者）麥克，就氣流成網方面的利用率而言，2024 年上半年我們的利用率約為 80% 左右，下半年可能略高於今年下半年的利用率。

We're seeing some demand pick up, as Thomas was mentioning.

正如托馬斯所提到的，我們看到需求有所回升。

Historically, when we compare that to the last couple of years, we've been probably in the 85% to 90% range.

從歷史上看，當我們將其與過去幾年進行比較時，我們可能處於 85% 到 90% 的範圍內。

So you can clearly see that with the softness in airlaid, we've also had to adjust our production and utilization so that's naturally come down.

所以你可以清楚地看到，由於氣流成網的柔軟性，我們還必須調整我們的生產和利用率，以便自然地下降。

In composite fibers utilization for the first half was around 90%, especially in the incline wire assets.

上半年複合纖維利用率約 90%，尤其是斜線資產。

Second half, we're expecting that to be maybe around 80%, 85%.

下半年，我們預計這一比例可能在 80%、85% 左右。

And historically also, we've been in the 80% to 85%.

從歷史上看，我們也一直處於 80% 到 85% 的水平。

And then in spunlace, first half was around 70% utilization.

然後是水刺，上半年利用率約 70%。

And we expect roughly the same going into the second half and historically, we've been kind of between 60% and 70%, if that helps.

我們預計下半年的情況大致相同，從歷史上看，我們一直在 60% 到 70% 之間，如果這有幫助的話。

(multiple speakers) that's super helpful.

（多個發言者）這非常有幫助。

But coming to the -- maybe one comment to this spunlace.

但是，也許對這種水刺布有一個評論。

I think we always mentioned that there's a lot of upside as far as capacity is concerned.

我想我們總是提到就容量而言有很多好處。

And you see now that we are kind of filling this capacity positioning in the market.

現在您會看到，我們正在填補市場上的這個產能定位。

And again, also, I mean, we deliver 20 little north of $20 million in EBITDA on spunlace, if I look at the last 12 months.

而且，我的意思是，如果我看看過去 12 個月，我們在水刺布上的 EBITDA 超過 2000 萬美元。

So that's really and again, there's still room for improvement there because we have capacity available.

所以這確實是一次又一次，那裡仍然有改進的空間，因為我們有可用的能力。

Correct.

正確的。

Excellent.

出色的。

And maybe two last questions, if you'll indulge me, I guess, Ramesh, in terms of working capital evolution over the balance of the year.

也許還有最後兩個問題，我想，拉梅什，如果您願意的話，請就今年餘下的營運資本演變而言。

How are you thinking about that?

你覺得怎麼樣？

I would say, Mike, expecting favorable working capital, if you look at the entire second half up third quarter will most likely be a use of cash as we kind of continue to ramp up some production here going into the second half.

我想說，麥克，如果你看看整個下半年到第三季度，預計營運資金將很可能會使用現金，因為我們在下半年繼續增加一些產量。

Fourth quarter, usually production is a bit lower, you know, we're focused on inventory, working capital and so on.

第四季度，通常產量會有點低，你知道，我們關注的是庫存、營運資金等。

So our fourth quarter is typically our strongest quarter from a cash flow perspective coming out of working capital but net-net, you've seen we have been a user of cash in the first half of this year, and then we expect that to get unwound here in the second half of 2024.

因此，從來自營運資本的現金流角度來看，我們的第四季度通常是我們最強勁的季度，但淨淨額，你已經看到我們在今年上半年一直是現金的使用者，然後我們預計會得到2024 年下半年在此放鬆。

So positive favorable working capital as we get into the second half of this year.

當我們進入今年下半年時，營運資金非常有利。

Great.

偉大的。

And then I guess just lastly on the closing of the transaction, could you just remind us sort of what items are still left in order to complete the transaction?

然後我想最後在交易結束時，您能否提醒我們還剩下哪些物品才能完成交易？

Any updates and timing on that?

有任何更新和時間安排嗎？

And then lastly, just a refresh on the kind of the pro forma capital structure, including the guarantees and liens that both kind of the new debt and the amount of new debt and then the existing debt that's not being refinanced will have?

最後，刷新預計資本結構的類型，包括新債務類型和新債務金額以及未再融資的現有債務將擁有的擔保和留置權？

Sure, maybe let me just talk about the regulatory issues and then Ramesh can talk about the funding structure of (multiple speakers) we we're able to get all the antitrust regulatory approvals done.

當然，也許讓我談談監管問題，然後拉梅什可以談談（多位發言者）的融資結構，我們能夠完成所有反壟斷監管審批。

So we are done with that one.

這樣我們就完成這個任務了。

We also receive the private letter ruling from the IRS, we're still working on all the filings which we have to do this is ongoing.

我們也收到了美國國稅局 (IRS) 的私訊裁決，我們仍在處理所有必須提交的文件，目前正在進行中。

And actually the thing which we still need to do is our shareholder meeting in order to get approval from our shareholders for this transaction.

實際上我們還需要做的就是召開股東大會，以獲得股東對這項交易的批准。

So as far as timing is concerned, we are still very optimistic that in the second half of this year, we'll be able to really close the transaction.

因此，就時間安排而言，我們仍然非常樂觀地認為，在今年下半年，我們將能夠真正完成交易。

So everything is kind of on time, if you will, there's no big issue right now.

所以一切都按時進行，如果你願意的話，現在沒有什麼大問題。

Yeah, those are the two key steps, the S4 filing and in the proxy vote.

是的，這是兩個關鍵步驟，S4 提交和代理投票。

On the cap structure, Mike and financing, I think what has been previously communicated it still holds true new capital raise of about $1.6 billion, this will take into account the paydown of our Angelo Gordon term loan.

關於上限結構、麥克和融資，我認為之前所傳達的內容仍然是真正的新融資約 16 億美元，這將考慮到我們安吉洛·戈登定期貸款的償還。

It will also take into account the paydown of our existing revolver borrowings.

它還將考慮我們現有循環借款的還款。

So kind of between those two existing pieces of debt, we're looking at about

因此，在這兩項現有債務之間，我們正在考慮

[$300 million to $400 million].

[3億至4億美元]。

And if you look at the $1.6 billion capital raise, so we'll have call it $1 billion of dividend roughly going up to Barry.

如果你看一下 16 億美元的融資，那麼我們稱之為 10 億美元的股息，大致分配給巴里。

And then the remaining proceeds will be used to pay off any closing transaction costs.

然後剩餘的收益將用於支付任何成交交易費用。

So the instruments as of right now, still in the form of a term loan B for the $1.6 billion capital raise.

因此，截至目前，這些工具仍採用定期貸款 B 的形式，用於籌集 16 億美元的資金。

Magnera will also have a $350 million asset-based revolving credit facility and then coming to our bond, the $500 million Glatfelter bonds, those will still continue to remain outstanding, but they will become secured at the closing of the deal.

Magnera 還將擁有 3.5 億美元的基於資產的循環信貸額度，然後是我們的債券，即 5 億美元的 Glatfelter 債券，這些債券仍將繼續保持未償狀態，但它們將在交易結束時獲得擔保。

And those will also be equally and ratably guaranteed by the same guarantors as the term loan B, which is the new financing.

這些貸款也將由與定期貸款 B（即新融資）相同的擔保人提供同等且按比例的擔保。

So our bonds, while they will remain outstanding, they will become secured status,

因此，我們的債券雖然仍將維持未償狀態，但將成為擔保狀態，

(multiple speakers)

（多個發言者）

Yes.

是的。

No, that's perfect.

不，那是完美的。

I appreciate all the time.

我一直很感激。

And again, congratulations on the quarter.

再次恭喜本季的業績。

Thank you.

謝謝。

Thank you Mike.

謝謝你，麥克。

Roger Spitz, Bank of America.

羅傑‧斯皮茨，美國銀行。

Thanks very much glad, you confirm the bonds will be come ratably secured on the currently at the [$0.6 billion] term loan.

非常感謝，很高興您確認這些債券將在目前的[6億美元]定期貸款上得到相當程度的擔保。

So thank you for that.

所以謝謝你。

I the price plus spread was positive in Q2 in all three segments.

第二季所有三個細分市場的價格加價差均為正值。

I'm just curious how you -- how are you able to do that during this period of rising pulp price market environment.

我只是好奇在這個紙漿價格上漲的市場環境下，你們是如何做到這一點的。

Okay.

好的。

Yes, Roger, I mean, again, in general, we have two different types of arrangements, if you will we have our pass through customers.

是的，羅傑，我的意思是，總的來說，我們有兩種不同類型的安排，如果您願意的話，我們有我們的直通客戶。

So that more or less an automatic pass-through of raw material or energy price increases or if the price goes down, the adjusted downwards, you have to think about this.

因此，或多或少會自動傳遞原材料或能源價格上漲，或者如果價格下跌，則向下調整，你必須考慮這一點。

We have a time lag there.

我們在那裡有一個時間差。

So normally, I would say three months, sometimes even six months will for one customer.

所以通常情況下，我會說一位客戶需要三個月，有時甚至六個月。

But normally there's a quarter time lag and sometimes it hurts you and sometimes you gain a little bit.

但通常會有四分之一的時間滯後，有時它會傷害你，有時你會有所收穫。

But this is one part of the customers and the other one and again, this was one of the really focus areas which we said because we were kind of caught a little bit in 2022, when we had a huge gap there.

但這是客戶的一部分，也是客戶的一部分，這也是我們所說的真正關注的領域之一，因為我們在 2022 年遇到了一些困難，當時我們在那裡存在著巨大的差距。

We are raising prices.

我們正在提高價格。

We are with customers and kind of raise prices and this is actually the result that if I look at actually for customers who are not on a path to right now, we recaptured this and this was actually then the result is that we are still positive and you should also see more coming in the third quarter based on the raw material increases we are seeing in the second quarter.

我們與客戶在一起，並提高了價格，這實際上是結果，如果我實際上看看現在還沒有走上這條路的客戶，我們重新抓住了這一點，這實際上是當時的結果，我們仍然是積極的，根據我們在第二季度看到的原材料成長，您還應該在第三季度看到更多的產品。

And this was all part of the turnaround strategy

這都是扭虧為盈策略的一部分

--

--

That's a part of the strategy where we kind of made it very clear also.

這是戰略的一部分，我們也說得很清楚。

And our salespeople did a good job.

我們的銷售人員做得很好。

And there was a lot of discussion.

而且有很多討論。

But yeah, so that's kind of these two areas.

但是，是的，這就是這兩個領域。

And again, people who are not on a formula, we can do it relatively fast.

再說一次，對於那些沒有公式的人，我們可以相對快速地做到這一點。

That's always a little delay, but we can do it relatively fast, a stable on past two or three months, four months delay.

這總是有點延遲，但我們可以相對快速地做到這一點，在過去的兩三個月、四個月的延遲中保持穩定。

Got it, thank you for that.

明白了，謝謝你。

And you just spoke a little bit about guidance on working capital.

您剛才談到了營運資金的指導。

I guess the last two quarters, you haven't sort of updated your original guidance like they due to the ending merger.

我想在過去的兩個季度中，由於合併的結束，您還沒有像以前那樣更新您的原始指導。

But are you able to give any 2024 guidance overall, like, the updated guidance for the EBITDA, FX, et cetera.

但您能否提供 2024 年的整體指導，例如 EBITDA、外匯等的更新指導。

Okay.

好的。

I may let me just talk about the EBITDA Roger.

我可以讓我談談 EBITDA 羅傑。

I mean we have given some guidance and there's really no change to the guidance.

我的意思是我們已經給了一些指導，並且指導實際上沒有改變。

That's why we didn't mention it.

這就是為什麼我們沒有提到它。

And so from that standpoint, we do feel quite good (multiple speakers) 110 to 120.

所以從這個角度來看，我們確實感覺很好（多個發言者）110 到 120。

If I look at right now, maybe a little bit of a lower end than the higher end of the 110 to 120, but we feel pretty confident that we there's no change to our guidance.

如果我現在看，可能比 110 到 120 的高端稍微低一點，但我們非常有信心我們的指導不會改變。

And Roger, if you I can hit the other elements like cash interest still around $70 million CapEx between $30 million and $35 million still holds true cash taxes between $15 million and $20 million.

羅傑，如果你能解決其他因素，例如現金利息仍然在 7000 萬美元左右，3000 萬美元到 3500 萬美元之間的資本支出仍然包含 1500 萬美元到 2000 萬美元之間的真正現金稅。

Working capital, it's still roughly around breakeven, I would say to maybe slightly positive.

營運資金，仍然大致在盈虧平衡點附近，我想說可能有點積極。

And then we've got the other cash costs as part of the turnaround strategy as part of the strategic initiatives and so on of between $20 million to $25 million.

然後我們還有其他現金成本，作為扭虧為盈策略的一部分，作為策略舉措的一部分，等等，金額在 2000 萬美元到 2500 萬美元之間。

So I would say net cash flow still walking down to about a negative $30 million for full year.

因此，我想說全年淨現金流量仍將下降至負 3,000 萬美元左右。

Perfect.

完美的。

Thank you very much and that's it for me.

非常感謝，我就這樣了。

(multiple speakers) Thanks.

（多個發言者）謝謝。

And that's concludes today's question-and-answer session.

今天的問答環節到此結束。

I'd like to turn the conference back over to Mr. Fahnemann for any additional or closing comments.

我想將會議轉回法尼曼先生徵求任何補充意見或結束意見。

Okay.

好的。

Yeah.

是的。

Thank you.

謝謝。

Yeah, thank you so much for taking the time for our quarter update and the call.

是的，非常感謝您抽出時間了解我們的季度更新和電話。

Wish everybody a great day and we'll talk to you later.

祝大家有美好的一天，我們稍後再與您交談。

Thank you.

謝謝。

Thank you.

謝謝。

And once again, that does conclude today's conference.

今天的會議再次結束。

We thank you all for your participation.

我們感謝大家的參與。

You may now disconnect.

您現在可以斷開連線。