glt-10q_20180630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2018

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from           to

 

 

96 South George Street, Suite 520

York, Pennsylvania 17401

(Address of principal executive offices)

(717) 225-4711

(Registrant's telephone number, including area code)

 

 

Commission file

number

 

Exact name of registrant as

specified in its charter

 

IRS Employer

Identification No.

 

State or other jurisdiction of

incorporation or organization

 

 

1-03560

 

P. H. Glatfelter Company

 

23-0628360

 

Pennsylvania

 

 

N/A

(Former name or former address, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at the past 90 days.    Yes      No  .

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  .

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company or emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

(Do not check if a smaller reporting company)

Smaller reporting company

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes      No  .

Common Stock outstanding on July 25, 2018 totaled 43,779,112 shares.

 

 

 


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

REPORT ON FORM 10-Q

For the QUARTERLY PERIOD ENDED

June 30, 2018

Table of Contents

 

 

Page

 

Page

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1

Financial Statements

 

 

 

Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2018 and 2017 (unaudited)

 

2

 

Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended June 30, 2018 and 2017 (unaudited)

 

3

 

Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 (unaudited)

 

4

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 (unaudited)

 

5

 

Notes to Condensed Consolidated Financial Statements (unaudited)

 

6

 

1.

Organization

 

6

 

2.

Accounting Policies

 

6

 

3.

Proposed Acquisition

 

7

 

4.

Revenue

 

8

 

5.

Gain on Disposition of Plant, Equipment and Timberlands

 

8

 

6.

Earnings Per Share

 

9

 

7.

Accumulated Other Comprehensive Income

 

10

 

8.

Income Taxes

 

12

 

9.

Stock-based Compensation

 

13

 

10.

Retirement Plans and Other Post- Retirement Benefits

 

14

 

11.

Inventories

 

14

 

12.

Capitalized Interest

 

14

 

13.

Long-term Debt

 

14

 

14.

Fair Value of Financial Instruments

 

16

 

15.

Financial Derivatives and Hedging Activities

 

16

 

16.

Commitments, Contingencies and Legal Proceedings

 

17

 

17.

Segment Information

 

21

 

18.

Condensed Consolidating Financial Statements

 

22

 

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

27

Item 3

Quantitative and Qualitative Disclosures About Market Risks

 

37

Item 4

Controls and Procedures

 

37

 

 

 

 

PART II – OTHER INFORMATION

 

38

 

 

 

 

Item 6

Exhibits

 

38

 

 

 

 

 

SIGNATURES

 

38

 

 

 

 

 


 

PART I

Item 1 – Financial Statements

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

 

 

 

Three months ended

June 30

 

 

Six months ended

June 30

 

In thousands, except per share

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net sales

 

$

405,773

 

 

$

387,342

 

 

$

816,420

 

 

$

778,055

 

Energy and related sales, net

 

 

944

 

 

 

981

 

 

 

2,372

 

 

 

2,110

 

Total revenues

 

 

406,717

 

 

 

388,323

 

 

 

818,792

 

 

 

780,165

 

Costs of products sold

 

 

385,114

 

 

 

358,588

 

 

 

748,283

 

 

 

694,801

 

Gross profit

 

 

21,603

 

 

 

29,735

 

 

 

70,509

 

 

 

85,364

 

Selling, general and administrative expenses

 

 

31,561

 

 

 

31,545

 

 

 

68,624

 

 

 

66,422

 

Gains on dispositions of plant, equipment and timberlands, net

 

 

(579

)

 

 

(58

)

 

 

(2,133

)

 

 

(26

)

Operating income (loss)

 

 

(9,379

)

 

 

(1,752

)

 

 

4,018

 

 

 

18,968

 

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(5,814

)

 

 

(4,476

)

 

 

(11,009

)

 

 

(8,484

)

Interest income

 

 

26

 

 

 

45

 

 

 

80

 

 

 

158

 

Other, net

 

 

(257

)

 

 

98

 

 

 

(28

)

 

 

910

 

Total non-operating expense

 

 

(6,045

)

 

 

(4,333

)

 

 

(10,957

)

 

 

(7,416

)

Income (loss) before income taxes

 

 

(15,424

)

 

 

(6,085

)

 

 

(6,939

)

 

 

11,552

 

Income tax provision (benefit)

 

 

(8,025

)

 

 

(371

)

 

 

(5,256

)

 

 

5,663

 

Net income (loss)

 

$

(7,399

)

 

$

(5,714

)

 

$

(1,683

)

 

$

5,889

 

Earnings (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.17

)

 

$

(0.13

)

 

$

(0.04

)

 

$

0.14

 

Diluted

 

 

(0.17

)

 

 

(0.13

)

 

 

(0.04

)

 

 

0.13

 

Cash dividends declared per common share

 

$

0.13

 

 

$

0.13

 

 

$

0.26

 

 

$

0.26

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

43,770

 

 

 

43,604

 

 

 

43,735

 

 

 

43,593

 

Diluted

 

 

43,770

 

 

 

43,604

 

 

 

43,735

 

 

 

44,449

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

- 2 -

GLATFELTER

06.30.18 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

 

 

 

Three months ended

June 30

 

 

Six months ended

June 30

 

In thousands

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income (loss)

 

$

(7,399

)

 

$

(5,714

)

 

$

(1,683

)

 

$

5,889

 

Foreign currency translation adjustments

 

 

(33,223

)

 

 

27,504

 

 

 

(20,476

)

 

 

33,569

 

Net change in:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred losses on cash flow hedges, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of $(1,719), $1,632, $(1,632) and $1,920, respectively

 

 

4,549

 

 

 

(3,651

)

 

 

2,747

 

 

 

(4,597

)

Unrecognized retirement obligations, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of $(965), $(1,430), $(1,942) and $(2,678), respectively

 

 

3,021

 

 

 

2,479

 

 

 

6,096

 

 

 

4,553

 

Other comprehensive income (loss)

 

 

(25,653

)

 

 

26,332

 

 

 

(11,633

)

 

 

33,525

 

Comprehensive income (loss)

 

$

(33,052

)

 

$

20,618

 

 

$

(13,316

)

 

$

39,414

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

- 3 -

GLATFELTER

06.30.18 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

June 30

 

 

December 31

 

In thousands

2018

 

 

2017

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

$

107,189

 

 

$

116,219

 

Accounts receivable, net

 

188,099

 

 

 

174,154

 

Inventories

 

270,995

 

 

 

252,064

 

Prepaid expenses and other current assets

 

38,042

 

 

 

42,534

 

Total current assets

 

604,325

 

 

 

584,971

 

Plant, equipment and timberlands, net

 

844,467

 

 

 

865,743

 

Goodwill

 

80,450

 

 

 

82,744

 

Intangible assets, net

 

54,752

 

 

 

58,859

 

Other assets

 

153,103

 

 

 

138,478

 

Total assets

$

1,737,097

 

 

$

1,730,795

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

Current portion of long-term debt

$

10,982

 

 

$

11,298

 

Accounts payable

 

193,138

 

 

 

190,478

 

Dividends payable

 

5,696

 

 

 

5,678

 

Environmental liabilities

 

26,000

 

 

 

28,500

 

Other current liabilities

 

101,059

 

 

 

111,222

 

Total current liabilities

 

336,875

 

 

 

347,176

 

Long-term debt

 

510,177

 

 

 

470,098

 

Deferred income taxes

 

76,064

 

 

 

83,571

 

Other long-term liabilities

 

127,029

 

 

 

121,022

 

Total liabilities

 

1,050,145

 

 

 

1,021,867

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

Common stock

 

544

 

 

 

544

 

Capital in excess of par value

 

62,827

 

 

 

62,594

 

Retained earnings

 

957,643

 

 

 

948,411

 

Accumulated other comprehensive loss

 

(174,606

)

 

 

(140,675

)

 

 

846,408

 

 

 

870,874

 

Less cost of common stock in treasury

 

(159,456

)

 

 

(161,946

)

Total shareholders’ equity

 

686,952

 

 

 

708,928

 

Total liabilities and shareholders’ equity

$

1,737,097

 

 

$

1,730,795

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

- 4 -

GLATFELTER

06.30.18 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

Six months ended

June 30

 

In thousands

2018

 

 

2017

 

Operating activities

 

 

 

 

 

 

 

Net income (loss)

$

(1,683

)

 

$

5,889

 

Adjustments to reconcile to net cash provided by operations:

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

39,511

 

 

 

34,967

 

Amortization of debt issue costs and original issue discount

 

580

 

 

 

578

 

Pension expense, net of unfunded benefits paid

 

2,788

 

 

 

2,512

 

Deferred income tax benefit (provision)

 

(12,268

)

 

 

1,824

 

Gains on dispositions of plant, equipment and timberlands, net

 

(2,133

)

 

 

(26

)

Share-based compensation

 

3,830

 

 

 

2,956

 

Change in operating assets and liabilities

 

 

 

 

 

 

 

Accounts receivable

 

(16,606

)

 

 

(12,511

)

Inventories

 

(23,352

)

 

 

(4,750

)

Prepaid and other current assets

 

(506

)

 

 

(1,711

)

Accounts payable

 

14,679

 

 

 

7,044

 

Accruals and other current liabilities

 

(3,799

)

 

 

(6,399

)

Other

 

(1,003

)

 

 

(1,609

)

Net cash provided by operating activities

 

38

 

 

 

28,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Expenditures for purchases of plant, equipment and timberlands

 

(36,944

)

 

 

(71,047

)

Proceeds from disposals of plant, equipment and timberlands, net

 

2,384

 

 

 

83

 

Other

 

(68

)

 

 

 

Net cash used by investing activities

 

(34,628

)

 

 

(70,964

)

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

Net borrowings under revolving credit facility

 

46,660

 

 

 

68,236

 

Repayment of term loans

 

(5,647

)

 

 

(4,528

)

Payments of dividends

 

(11,368

)

 

 

(11,130

)

Proceeds from government grants

 

125

 

 

 

 

Payments related to share-based compensation awards and other

 

(980

)

 

 

(112

)

Net cash provided by financing activities

 

28,790

 

 

 

52,466

 

Effect of exchange rate changes on cash

 

(3,230

)

 

 

3,732

 

Net increase (decrease) in cash and cash equivalents

 

(9,030

)

 

 

13,998

 

Cash and cash equivalents at the beginning of period

 

116,219

 

 

 

55,444

 

Cash and cash equivalents at the end of period

$

107,189

 

 

$

69,442

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

Interest, net of amounts capitalized

$

10,349

 

 

$

7,810

 

Income taxes, net

 

6,804

 

 

 

4,193

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

- 5 -

GLATFELTER

06.30.18 Form 10-Q


 

P. H. GLATFELTER COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

 

1.

ORGANIZATION

P. H. Glatfelter Company and subsidiaries (“Glatfelter”) is a manufacturer of specialty papers and fiber-based engineered materials. Headquartered in York, PA, U.S. operations include facilities in Fort Smith, AR, Spring Grove, PA and Chillicothe and Fremont, OH. International operations include facilities in Canada, Germany, France, the United Kingdom and the Philippines, and sales and distribution offices in the U.S., Russia and China. The terms “we,” “us,” “our,” “the Company,” or “Glatfelter,” refer to P. H. Glatfelter Company and subsidiaries unless the context indicates otherwise. Our products are marketed worldwide, either through wholesale paper merchants, brokers and agents, or directly to customers.

 

 

2.

ACCOUNTING POLICIES

Basis of Presentation The unaudited condensed consolidated financial statements (“financial statements”) include the accounts of Glatfelter and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

We prepared these financial statements in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. In our opinion, the financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. When preparing these financial statements, we have assumed that you have read the audited consolidated financial statements included in our 2017 Annual Report on Form 10-K.

Reclassification   As a result of adopting the provisions of Accounting Standards Update (“ASU”) No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost we reclassified certain amounts of periodic benefit expense for previously reported periods from Cost of products sold and Selling, general and administrative expense to Non Operating Expense.  As a result of applying the ASU, Costs of products sold for the second quarter of 2017 was increased by $0.7 million and Selling, general and administrative expenses were reduced by $0.4 million and the offsetting net reclassification reduced Non-operating expense by $0.3 million.  The comparable amounts for the first six months of 2017 were $2.0 million, $0.7 million and $1.3 million, respectively.

Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to

make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies as of the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Management believes the estimates and assumptions used in the preparation of these financial statements are reasonable, based upon currently available facts and known circumstances, but recognizes that actual results may differ from those estimates and assumptions.

Revenue Recognition  We adopted ASU No. 2014-09, Revenue from Contracts with Customers in the first quarter of 2018. This ASU clarifies the principles for recognizing revenue and establishes expanded disclosure requirements; however, the adoption of ASU No. 2014-09 had no impact on the timing or amount of revenue recognized for any period presented.  Refer to Note 4 for additional information about the disaggregation of our net sales.

Our revenue is earned primarily from the manufacture and sale of specialty papers and engineered materials (“product sales”).  Revenue is earned pursuant to contracts, supply agreements and other arrangements with a wide variety of customers. Our performance obligation is to produce a specified product according to technical specifications and, in substantially all instances, to deliver the product. Revenue from product sales is earned at a point in time. We recognize revenue on product sales when we have satisfied our performance obligation and control of the product has passed to the customer thereby entitling us to payment. With respect to substantially all arrangements for product sales, this is deemed to occur when title transfers in accordance with specified shipping terms.

The prices are fixed at the time the sales arrangement is entered into and payment terms are customary for similar arrangements in our industry. Many of our agreements include customary provisions for volume rebates, discounts and similar incentives. In addition, we are obligated for products that fail to meet agreed upon specification. Provisions for such items are estimated and recorded as sales deductions in the period in which the related revenue is recognized.

Revenue from power sales and renewable energy credits is recorded under the caption “Energy and related sales, net” in the condensed consolidated statements of income and is recognized upon fulfillment of our performance obligation which is generally upon meeting capacity commitments or delivery of REC certificates. Revenue from energy sales is recognized when electricity is delivered to the customer. Prices for power sales and renewable energy credits are fixed at the time of sale and payment is generally due within normal terms and conditions customary for the industry.

- 6 -

GLATFELTER

06.30.18 Form 10-Q


 

Certain costs associated with the production of electricity, such as fuel, labor, depreciation and maintenance are netted against energy sales for presentation on the condensed consolidated statements of income.

Recently Issued Accounting Pronouncements   In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income. (“ASU No. 2018-02”).”  In December 2017, Tax Cuts and Jobs Act (“TCJA”) was passed into law and, among other provisions, reduced the statutory federal tax rate from 35% to 21%.  The change in the tax rate impacted the carrying value of deferred tax assets and liabilities.  ASU No. 2018-02 allows a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the TCJA.  We elected to adopt ASU No. 2018-02 in the first quarter of 2018, and we reclassified $22.3 million of net deferred tax benefits from AOCI to retained earnings.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU will require organizations such as us that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will be effective for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are in the process of assessing the impact this standard will have on us and expect to follow a modified retrospective method provided for under the standard. The adoption of this standard is not expected to have an impact on our results of operations.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments that changes the impairment model for most financial instruments, including trade receivables from an incurred loss method to a new forward-looking approach, based on expected losses. Under the new guidance, an allowance is recognized based on an estimate of expected credit losses. This standard is effective for us in the first quarter of 2020 and must be adopted using a modified retrospective transition approach. We are currently assessing the impact this standard may have on our results of operations and financial position.

In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities" (“ASU No. 2017-12”), which simplifies the application of hedge accounting and more closely aligns hedge accounting with an entity’s risk management strategies. ASU No. 2017-12 also amends the manner in which hedge effectiveness may be performed and changes the presentation of hedge ineffectiveness in the financial statements. ASU No. 2017-12 is effective for us beginning January 1, 2019, with early adoption permitted. ASU No. 2017-12 requires a cumulative-effect adjustment for certain items upon adoption. We are currently evaluating the impact the adoption of ASU No. 2017-12 will have on our consolidated financial statements.

 

 

3.

PROPOSED ACQUISITION

On June 19, 2018, we signed a definitive agreement to purchase Georgia-Pacific’s European nonwovens business (the “GP Business”) for $185 million, subject to customary purchase price adjustments.  The proposed transaction is subject to customary closing conditions, including receipt of required regulatory approvals. 

The proposed transaction includes Georgia-Pacific’s operations located in Steinfurt, Germany, along with sales offices located in France and Italy.  The Steinfurt facility produces high-quality airlaid products for the table-top, wipes, hygiene, food pad, and other nonwoven materials markets, competing in the marketplace with nonwoven technologies and substrates, as well as other materials focused primarily on consumer based end-use applications.  The facility is a state-of-the-art, 32,000-metric-ton-capacity manufacturing facility that employs approximately 220 people.

In 2017, the GP Business had net sales of $99 million.  The acquisition is expected to close in the fourth quarter of 2018 and we plan to finance the transaction through a combination of cash on hand and borrowings under our revolving credit facility. 

 

 

- 7 -

GLATFELTER

06.30.18 Form 10-Q


 

4.

REVENUE

The following tables set forth disaggregated information pertaining to our net sales:

 

 

 

Three months ended

June 30

 

 

Six months ended

June 30

 

 

In thousands

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

Composite Fibers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food & beverage

 

$

70,186

 

 

$

65,434

 

 

$

140,583

 

 

$

128,036

 

 

Wallcovering

 

 

27,789

 

 

 

26,173

 

 

 

55,921

 

 

 

48,628

 

 

Technical specialties

 

 

21,609

 

 

 

17,676

 

 

 

42,567

 

 

 

35,383

 

 

Composite laminates

 

 

8,960

 

 

 

9,255

 

 

 

18,358

 

 

 

18,094

 

 

Metallized

 

 

14,390

 

 

 

14,599

 

 

 

27,102

 

 

 

28,100

 

 

 

 

 

142,934

 

 

 

133,137

 

 

 

284,531

 

 

 

258,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Airlaid Materials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Feminine hygiene

 

 

46,937

 

 

 

44,503

 

 

 

95,410

 

 

 

86,927

 

 

Specialty wipes

 

 

10,495

 

 

 

6,992

 

 

 

18,262

 

 

 

13,042

 

 

Adult incontinence

 

 

5,190

 

 

 

3,220

 

 

 

9,622

 

 

 

6,864

 

 

Home care

 

 

3,875

 

 

 

3,169

 

 

 

7,902

 

 

 

5,927

 

 

Other

 

 

6,311

 

 

 

4,952

 

 

 

11,224

 

 

 

9,914

 

 

 

 

 

72,808

 

 

 

62,836

 

 

 

142,420

 

 

 

122,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialty Papers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carbonless & forms

 

 

69,743

 

 

 

70,976

 

 

 

141,613

 

 

 

148,048

 

 

Engineered products

 

 

51,697

 

 

 

47,113

 

 

 

101,648

 

 

 

95,275

 

 

Envelope & converting

 

 

36,051

 

 

 

36,765

 

 

 

73,956

 

 

 

79,622

 

 

Book publishing

 

 

31,963

 

 

 

36,111

 

 

 

70,521

 

 

 

73,284

 

 

Other

 

 

577

 

 

 

403

 

 

 

1,731

 

 

 

911

 

 

 

 

 

190,031

 

 

 

191,368

 

 

 

389,469

 

 

 

397,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

$

405,773

 

 

$

387,342

 

 

$

816,420

 

 

$

778,055

 

 

 

 

 

Three months ended

June 30

 

 

Six months ended

June 30

 

 

In thousands

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

Composite Fibers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe, Middle East and Africa

 

$

91,790

 

 

$

84,041

 

 

$

186,572

 

 

$

167,588

 

 

Americas

 

 

28,992

 

 

 

27,477

 

 

 

53,040

 

 

 

50,536

 

 

Asia Pacific

 

 

22,152

 

 

 

21,619

 

 

 

44,919

 

 

 

40,117

 

 

 

 

 

142,934

 

 

 

133,137

 

 

 

284,531

 

 

 

258,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Airlaid Materials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe, Middle East and Africa

 

 

35,905

 

 

 

32,404

 

 

 

72,133

 

 

 

62,133

 

 

Americas

 

 

36,310

 

 

 

30,011

 

 

 

69,128

 

 

 

59,932

 

 

Asia Pacific

 

 

593

 

 

 

421

 

 

 

1,159

 

 

 

609

 

 

 

 

 

72,808

 

 

 

62,836

 

 

 

142,420

 

 

 

122,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialty Papers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 

188,505

 

 

 

190,546

 

 

 

386,333

 

 

 

395,321

 

 

Other

 

 

1,526

 

 

 

822

 

 

 

3,136

 

 

 

1,819

 

 

 

 

 

190,031

 

 

 

191,368

 

 

 

389,469

 

 

 

397,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

$

405,773

 

 

$

387,342

 

 

$

816,420

 

 

$

778,055

 

 

 

 

5.

GAINS ON DISPOSITION OF PLANT, EQUIPMENT AND TIMBERLANDS

 

During the first six months of 2018 and 2017 we completed the following sales of assets:

 

Dollars in thousands

 

Acres

 

 

Proceeds

 

 

Gain (loss)

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

 

1,029

 

 

$

1,785

 

 

$

1,680

 

 

Other

 

n/a

 

 

 

599

 

 

 

453

 

 

Total

 

 

 

 

 

$

2,384

 

 

$

2,133

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

 

46

 

 

$

75

 

 

$

74

 

 

Other

 

n/a

 

 

8

 

 

 

(48

)

 

Total

 

 

 

 

 

$

83

 

 

$

26

 

 

 

- 8 -

GLATFELTER

06.30.18 Form 10-Q


 

 

6.

EARNINGS PER SHARE

The following table sets forth the details of basic and diluted earnings per share (“EPS”):

 

 

Three months ended

June 30

 

In thousands, except per share

2018

 

 

 

2017

 

Net loss

$

(7,399

)

 

 

$

(5,714

)

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding used in basic EPS

 

43,770

 

 

 

 

43,604

 

Common shares issuable upon

 

 

 

 

 

 

 

 

exercise of dilutive stock options

 

 

 

 

 

 

 

 

and PSAs / RSUs

 

 

 

 

 

 

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding and common share

 

 

 

 

 

 

 

 

equivalents used in diluted EPS

 

43,770

 

 

 

 

43,604

 

Loss per share

 

 

 

 

 

 

 

 

Basic

$

(0.17

)

 

 

$

(0.13

)

Diluted

 

(0.17

)

 

 

 

(0.13

)

 

 

Six months ended

June 30

 

In thousands, except per share

2018

 

 

 

2017

 

Net income (loss)

$

(1,683

)

 

 

$

5,889

 

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding used in basic EPS

 

43,735

 

 

 

 

43,593

 

Common shares issuable upon

 

 

 

 

 

 

 

 

exercise of dilutive stock options

 

 

 

 

 

 

 

 

and PSAs / RSUs

 

 

 

 

 

856

 

Weighted average common shares

 

 

 

 

 

 

 

 

outstanding and common share

 

 

 

 

 

 

 

 

equivalents used in diluted EPS

 

43,735