Glatfelter CEO: Company generating stronger, steadier cash flow

By Jennifer Lanning Drey

Savannah, Ga., Feb. 11 - Glatfelter posted strong free cash flow in 2010, representing the company's shift toward more significant and steadier cash generation, Dante Parrini, Glatfelter's chief executive officer, reported Friday during its fourth-quarter and year-end earnings conference call.

Glatfelter generated free cash flow of $31 million for the fourth quarter and $132 million for 2010.

"We've moved from a company with very low and inconsistent cash flow to a company with substantial and much steadier cash flow, and we have a great balance sheet with plenty of capacity to make smart investments," Parrini said.

Glatfelter had $95.8 million in cash and cash equivalents and more than $200 million available under its revolving credit facility at Dec. 31.

Net debt, excluding cash collateralized borrowings, was $200.5 million at Dec. 31, an increase of $118.1 million compared with Dec. 31, 2009, which the company said was primarily due to its $228.3 million acquisition of Concert Industries Corp.

"Despite the Concert acquisition, our balance sheet remains quite strong," John Jacunski, Glatfelter's chief financial officer, said during the call.

The CFO also noted that the company received a $17.8 million cash tax refund in the first quarter. The refund was originally expected in the fourth quarter.

Net sales increase 25%

Glatfelter posted fourth-quarter net sales of $376.2 million, up from net sales of $301.1 million for the fourth quarter of 2009. The company said the increase reflected the top-line contributions of the new Advanced Airlaid Materials business unit, share gains in core markets and stronger market conditions for its composite fibers and specialty papers products.

Net income for the fourth quarter was $15.3 million, compared with net income of $46.0 million for the same period of 2009, which was favorably impacted by alternative fuel mixture credits, Glatfelter reported.

Adjusted earnings were $14.6 million, compared with $15.3 million in the 2009 period.

Glatfelter is a York, Pa.-based manufacturer and seller of specialty papers and fiber-based engineered products.

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