NP - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Neenah Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now today, hand Investor Bill would to conference Relations. I speaker the McCarthy, Instructions] like the to over [Operator Vice President, Thank you. Please ahead. go

Bill McCarthy

second the me And earnings I Chief have Hello. thank of for Paul and Neenah’s Great. introducing pleasure for you Executive Officer; call. time, are today XXXX With the Julie first Schertell, joining quarter the actions quarter Paul and financial activities have our DeSantis, in including respond. cover detail, will Chief and Financial Officer. business Coronavirus impacts to taken from for we Julie the pandemic and results

a In will following thoughts we will for for addition, outlook remarks, the prepared of share open and few year on call the questions. the our up we rest these

million asset other adjusted On costs. of will mostly $XX from As and the million year. $X.X the start charges. in from We line our due was the impact inventories. economy. income year, prior with with as related usual, was in reduced last and were non-routine were second basis, down manage last lower This items to adjusting of schedules there $XX impairments non-routine declined income as in million U.S. quarter estimate to in I year. non-cash the $XXX the to restructuring drop booked XX% sales, operating than down of million and million Operating operating the quarter write-offs In communicated an headlines. versus $X.X few Sales a the of quarter well

can in was in press in $X.XX. and GAAP a the to complete found call details, We our figures with will reconciliation EPS negative cover the items along comparable release. GAAP quarter later these be

$X.XX EPS XXXX. items, to was adjusting compared in and these Excluding negative $X.XX

SEC statements things that like Lastly, our to statements today website due With differ to our the these from and Julie. that, that over I and to forward-looking outlined in risks turn actual filings. our I’d results could in will include note comments

Julie Schertell

everyone. good and Bill, morning, you, Thank

driving the am year responsibly the responded. out reduced avoiding our we started the strong I of I continuing with significant aggressively quarter, highest exceeding safety to with our we will emerge areas, impacts was while inventories, in covering five of our delivered this in employees, we quality health future position. pleased the the the schedules plans In needs, expectations of managed address no uncertainty, Neenah has Last done our spending and very I strategies. great customer’s manufacturing the and position how progress all I preserving am strong, each a pandemic flows, While and our strong costs there support operational pandemic on customers working key shared in maintaining will with execute quarter liquidity time from them and the and areas, cash work strong level to to with operating areas. these confident we have of in on our excellence continuing in update our and all service. long-term you reducing and and our growth team

have we health always enhanced practices, ways operate. is to we and the employees. safety our protocols numerous implemented priority With top of and changes Our the

these while Most us. of employees on importantly, all quality focused they customers done changes Our adapted to and expect safely. service quickly the while this our from delivering have high remaining working

no by Neenah. our one continue In to at year, as gets fact, progress injuries we working this hurt we XX% while reduced almost that ensure

speed, our various in who is year’s customers, this needs of known the serving marketplace. by nimbleness environment. Neenah for to been flexibility, is our have responsiveness and the impacted Second, unpredictable also degrees

continues in products customers helped our with the to we assets for May, effectively I in During consumer Recently our business have and for increase these same throughput branded Europe. chain. small in support us global supply performance masks. face efforts also media innovative on today to footprint have increased more filtration mentioned times local our time, new develop grow This masks. for characteristics while than these commercializing and of high launched a value success At media continue the customers to volatility, has replacement we long-term. our we face ever accelerated

applications In face data both needs to our to high efficiency masks, to have grown of addition we Growth performance accelerate. media address continues expanded the in markets industrial our high these HVAC for and filtration storage.

addressable increased have customers. and we environmentally-friendly products customization efficiencies digital market introduced While our provide cost transfer for that proprietary, our new, expand and

has of planners the home optimized We outdone, parts other new products developing restructured our designed and ongoing at of management. capacity, tool over as brand focus quarter, manufacturing $XX and operational the under an and began selling operating our and organization, are SOUTHWORTH A retailers quarter in available multiple areas. in consumer in result applications cost significantly been reduced and products and of as demand temporarily These our launched spending be it asset and not we paper backing the yourself and projects basis restructuring category. both to tape a deferred with recently improved help new new paper fine million meet and are reduced do team our to traditional efforts. our and for line costs yields in excellence painting We In area on extend the also increased of costs, reach reduced teacher third schedules well-known major stores both journals. beyond brand online ASTROBRIGHTS team

and team excellent vendors. In an did more addition, terms our prices job favorable many with lower negotiating procurement

of other areas. savings reduced last hard above million $X decreases Our extended less more and in payroll reductions These virtually than furloughs. year, beyond SG&A and from was with travel all work spending manufacturing, than expenses costs, lower included nonrecurring course, million $X

its optimizing initiatives certain fine to May, in included other as noted paper Additional SKUs, volume and brands reallocating a and machine and idling assets.

efficient are $X generate million up savings year. as didn’t overcome of the to set significant more operations of we efforts return absorbed clearly under costs around for in and changes a quarter, these impact made ongoing fixed While the the volume have us expected

focused Next, in generated almost strong operations we preserving on was $XX liquidity. our quarter from Cash the million.

in well Last to These efforts, us to through deliver remain on pension helped capital, communicated improvement enhance returns sound efforts invest least, as long-term to platforms volume. this value working of the rate. a help our we plan $XX our but executing as reductions, I am financial capital base contributions. attractive to that lower the and cost we our pleased target. quarter are to mitigate debt of flow discretionary I refinancing strategies our and successful nonessential spending reduced resolute of in track impacts surpass create million cash targeted note versus footing. May, addition efficiently end not growth we to In on In

that fine We categories coatings. we important generate have like growth materials, can foundational and redeploy targeted filtration, meaningful four in premium packaging and custom-engineered cash backings flows areas, that and specialty paper design,

active, to organic value. process ability maintaining areas, that these maintaining ultimately financial cautious well, an but act on recognize continuing in and it’s our drives discipline while opportunities are We M&A to execute while

I’d Before in quarter. charges wrapping like one-time on to the comment up, the

asset. from While impact partial these to future, triggered taken have pandemic, the due included our for -- costs for a from optimize actions largest and the which our filtration near-term resulted demand lower business to impairment of U.S. result we the restructure

capacity. made has past, qualification have anticipated in investments provided As Germany incremental than we longer that grades on have noted in and some have the also taken we

these now to is with U.S. slowdown additional this Our the total extended of to objective the ramp-up pandemic optimize items combined an curve. business, cost has due

to see attractive We market. strategic a continue transportation as filtration and

very market surprise was several above and growth challenging. rate as quarter important Our the the category. it that expectations deliver on our focused no this we over are an historic teams assure am and growth next at I to remain fill view years catalyst the for I this can U.S. Neenah. our asset for sure it you, was

position. past outlook As we have We have and our will more customers, things and challenges later. in the months you on been in in Paul by to detail. improve our to results strength and turn and I and financial have in we markets address support now our our sequential acted encouraged have aggressively cover long-term demand financial improvement remain talk our I our the about to protect strategies. capabilities will the well-positioned over few manage costs deliver short-term heard, organizational employees, to our financial

Paul DeSantis

Thanks, Julie, like off start to saying am I to everyone. pleased and how be I’d morning, here by good at Neenah.

the not well starting is the of pandemic can-do on ideal, right been Although the confident have are path. impressed has am I Neenah attitude an how with the I to and crisis. unprecedented in middle the we team responded of

broad to each and story. benefits results. costs. reduced Significantly I due with range it’s our reduce from pretty partially segment’s to coupled with And operating I lowered lower results, consistent responsibly a we hear will improvements offset this through a manage of go you cost COVID, think, demand schedules and inventories, efforts As input

the to on of the of focused quarter capital of from element the A operations deliver $XX position. sound further targeted this resulted cash benefits to almost initiatives also in our for efforts by management, We end cash our working has million been our of generation $XX flow million very year. important liquidity and contributed

COVID was recorded we triggered mentioned, the other curve. filtration U.S. impact and by non-routine on which charges, Julie all non-cash. almost ramp-up demand, As our million extended primarily This $XX in impairments

our a near-term expectations in If clear, cash earnings treatment with results. by in a great fixed you asset is items measure the segment determining our aware, flows over not for to continue is be to reflect A us this to adjusting weighted business of impairment it’s list and profitable release. accounting are period business. included filling To

excluding reflecting filtration slightly of these industrial were $XXX demand. sales slightly, with a spots, packaging. operating the million, adjustment recent compared down quarter. and our in and including key and products, modestly Technical $X.XX down was price/mix some markets, Adjusted So review the -- lower face as sold. $X items I’d $XX for sales several Currency then media liquidity There XX% unfavorable, also few net segment were averaging to end-use grades with discuss income refinancing. was reduced million in XXXX. in bright prices overall price a certain with mask products medical pandemic were growth however, like global including results euro In revenue million Net the and of adjusters Products,

While volumes operating manufacturing over fixed and impact sales $X million, from the decline absorption cost combined $XX million. lower was in the was income

second decline year. the The in was improvement year-on-year and of $X of net quarter. In selling savings Packaging, Benefits idea the changes, were that So in highest of million volume. Paper amount of to revenues from decline sales you XXXX. input expected $XXX of Sales for we steeper. million. of and last impressive that in year the the costs, accounted as virtually lower down Net lower from was quarter the an price Fine $XX due the in delivered all cost were million about gives

times. supply shorter, which addition, are relatively in declines for market are spirits. customer more quickly. typically print and Sales Packaging used destocking we high is and economic and which better continue inventory In chains this in Premium Consumer wine meaningful tough impact since and labels, occurs commercial business A performed end from end to the marketing, quickly for for grow other primarily advertising in

Turning selling last bottomline, lower was of year. benefits the volume costs with down impact The net combined from quarter $X.X and the million profit operating and $XX offset adjusted $XX costs reductions to this was in sales input from million million, and partially unabsorbed lower was prices. fixed cost of

out we items, acted an so of freezes, actions, exceptionally headcount a was last quarter $XX million, in down number cuts, aggressively $X furloughs million Turning manufacturing, pay travel. and and take Like from reduced consolidated year. high to and this including area wage to reductions, did through SG&A in costs corporate

from million. the below SG&A previous million $XX in year. are an remainder consolidated around down adjusted is for last This an year. of run to into $XX $XX Quarterly interest net XXXX on with was facility our in initial $X revolver both June, were and a Proceeds million million our to of expected the around down average interest the were July quarterly of notes X%. Loan $XXX rate average expect XXXX. and down entered rate of per outstanding also from used basis second on corporate facility B $X.X $X.X to Unallocated XXtht. of million fully from These this guidance redeem pay Term costs and new the on We million historical million half million, quarter the senior costs per borrowings $X.X million year. quarter $XXX XXXX In expense we of

million. borrowings As result in before a quarterly of expense overlap to be down of to of is $X.X July, quarter third the rate $X.X expected a interest projected dropping million

was which non-cash allowance valuation by increase rate benefit of was existing reduced the deferred tax assets, our the due in a to tax impairment charges. Our in primarily XX%, a quarter $X million against

XX%. the $XXX tax quarter our $XXX at We of with We approximately continue to cash million. of and rate ongoing project debt million ended

spending normal million, growth. you. global we the our numbers to starting sound the reflect would these are However, it’s quarter credit to have Loan loan we that This We covenant position. today B end. items, notes. cash comfortable we and these the continuing improvements million. with term to environment lenders from is am availability debt new replaced with Loan from position. our Reducing attention on this we mentioned back cut a both have is and it in few we million. noncritical $X with I are inventory with with I revolving our Neenah’s with and receivables what million quality Capital $XX million facilities shape, and sharing that will credit an being Thanks quality savings I’d I or operations fund working quarter almost Term full wrap light. growth and continuing our proven over long-term environment meaningful at received of up by in like and good of million like to our spent $XXX the facility with operating Year-to-date, consider to million million was you as in reasonable million to cash balances our forward flexible XXXX facility, has of cash were about highly a to both inflated from credit that $X continue consider while the $XX of that million of financial due that, of Both senior know which key $X our this been facilities and history and level, currently redemption, B cash looking I maintain the of control undrawn. $XXX cash and hand, to deliver high We on I during comments will Term this expect cost team liquidity revolver year. to schedules careful terms reduced around last in our on to be generated are driving our initiatives. to Overall, the and in as especially excellent levels, assure efficiency cash supplier ended discipline, $XX half pandemic. success -- focus of new Bonnie, very $XXX quarter financial Neenah million inventory, of processes to future can year finance of $XX strong place am was I teams part while down with With spending continue. Julie. and with capital. that turn are Neenah to $XXX terms we generated to have $XX from our am comfortable further on projects areas. million in strong,

Julie Schertell

Thanks, Paul. comments with few on wrap outlook. will a I our up

As knows, very the situation is everyone fluid. global still

many However, visibility have there are that control. more areas under some things our and

those. So will start I with

quarters efficiently, First, continue as annual safely maintenance second and to we fourth maintenance the work we about assets third the will to usual, downs million fourth ensure the in to manage quarters, will required take in be more and spending, our is quarter. carefully operate $X.X while third this our and continue than expense each

sales $X.X comparisons euro $X.X this by change global translation and from and benefit input by are rise moving operating and strengthened has will quarterly recover, with a favorable economies modestly The income us million each will million. to diminish. $X.XX standpoint, costs year-on-year As projected recently

rate impacts all As are a in to rates the around a $X.XX due of compare reminder, large currency Technical $X.XX quarter. of almost second presence. Recent in Products our European to

back-to-school of demand. are to seasonality demand While the including recovery impacts and more easier pace bit those items a predict, challenging, of is

by that have few segments the As noted we the earlier, both been seen improvement past over months. I have encouraged steady in

is improved. Fine helped second be by driven filtration the categories be in Technical Products their percentage Transportation and are Third other quarter, below economies but from recover should their Europe as increases bouncing will back also and Packaging chain. Paper decline the quarter much and supply decline up sales well. improving is still steep short miles in year, prior picking as the

Looking beyond continue levels. and on in will pre-pandemic as fully high recover Products that, continue. to resilient a I we improving rebound and spending sales more likely print companies to expect Paper on while in segment Fine the and print growing and is Packaging expect improvement end grow, Products the and to recovery sequential Technical timing Technical is economies to lag commercial should other Packaging depend needs. of to marketing and resume

on seen to of made time disciplined and costs, our through customer making. to Neenah executing. uncertainty, this have am we encouraged shareholders are addressed a build commitment that meaningful relationships, by to decision challenges we what’s managing continuing return you have product During very change superior aggressively head while successful, dividend. will deep These a how nor providing won’t values performance I on by

We and manufacturing to a Neenah our strength products, pursuing to chain long-term of targeted launch and are innovative growth local operating supply footprint with improvements, system leveraging collaborating platforms. customers and opportunities sustainable new the in create develop implementing

that highest the about been future. and remarkable. quality reduce service more would continue and employees. technologies strongly growth as our finding recent and these add to customers while significantly dedicated the to position and execute costs through for safely talented without None more products and value be us stakeholders ways challenges possible Their our strategy with and work has organic of ability providing this in changes and this through both to opportunities the platforms You will hear capabilities our our we to extend inorganic for

said to I I your look today up in part May, of interest company and team the this the questions. ahead. years you Thank am growing I now to together and our for As be open will forward excited call in for I

Operator

Our with from CJS [Operator question Tanwanteng Jon Instructions] Securities. comes first

is line Your open.

Jon Tanwanteng

Hey. my questions. Good for you taking morning. Thank

Julie Schertell

morning. Good

Jon Tanwanteng

be But I out off, long are I or the mentioned wondering sustainable may in QX, did customers, into could you so, for? was tailwinds first Maybe and supply if restocking overall, about your heading you know short. QX you paper chains talk of how situation see inventory if that and just,

Julie Schertell

Yeah.

bit backings a say, different head and So see their we just little little heavy performance Where part, righ-tsized category some I little for still I the this it’s would recovery segment. right-sized at a most that bit part. we our point. the so probably inventories be would materials have inventory -- customer by lag customers into for We there our at inventories in our a and the QX. customers But levels as have bit might most think, are

Jon Tanwanteng

terms any maybe, in general in you be might sluggish, Thank it. you trends, improvement general said, places still have other like of the many And just is that where have you. versus still Got you places? demand then inventories seen seen high backings

Julie Schertell

talk Packaging. place nice would the is is, you and about nice Well, first within think, commercial part Paper to Packaging Fine that have Paper and diversity I The even I is print. Fine about probably we

of companies that budget reduced feeling And challenged, many by it’s we print as So have commercial that. the part and recognize, their economies we soon are advertising business to as driven be start advertising. as you a and

of up, we Amazon to more and start superstores, also and packaging, by And our open driven goes commercial we that’s open Fine retailers school resilient. Target expect rebound in crafting which like business, to have packaging, and that Paper But and and up to have those large have premium economies consumer in been both and advertising teachers we and when back. budgets office so Packaging, and or start to

and So, in commercial BXC space, from what print pressure. the challenged. bit markets the the talked the more BXB and to rebound -- customer little of just we think that’s a we most us leading much gives mentioned, the more both about inventory we standpoint And the probably is from but just channel, I I backings, an that’s The from channel position more probably because as are then opportunity and the have in diversity feeling timing that’s as as where and stocking anything. a end-use

Jon Tanwanteng

or a in the Got Thank depending destruction how a good have on my that for is far tell commercial think, seeing set of the too question, maybe prior demand lasts. to And there? it. calls, so you you. you the business, digital on next Are in pandemic are as evidence possibility and/ more print that’s discussed long relying I of companies any early it offering

Julie Schertell

it’s too point. to at early think I this speculate

longer you print the modes mostly think decline, and standpoint. of healthier the deeper platform different the advertising described the the like about a from the said, risk little we that Fine Packaging, what a I nice which side business is side, packaging a duration what would I to just within our I the the rebounding greater moving growth that commercial Like is consumer the and and Paper have and and is for diversity us. that quicker bit be

the customers are supporting And programs new with category aggressively decline important mid-XX’s. been that’s the that also and a to fine think of the help demand. since pressure is other has paper thing us secular to I We as under drive products to

will know So to generates for it then and lot that’s -- how we our we to continue We and invest it other and manage Neenah we platforms that for manage adds way flows it that shareholders. this us. cash so manage to that it growth in how know we value new strong nothing to of business a well and into

Jon Tanwanteng

both reductions, the here recover? job And as How was the flow. the on incremental manufacturing. work. of think and your That for on me, it. impressive we should last on scale One of cash given nice one just the volumes SG&A Got cost margins

Paul DeSantis

I Jon. that will question. Hi, Yeah. take

to forward. the million we couple about rate of quoted get of run on things an $X things, a one we annual expect was going that of permanent So savings cost

sets actually So of we I quoted three numbers. we -- think

of was costs manufacturing combination a coming fixed have and that some out drove out. worth cost we costs of million that really variable and So of we $XX

unabsorbed cost variable while to we we down, are So control when the that will going out stay big is fixed quarter number year look at where as one last volume year But our reasons, volume as second overall is this of it’s the fixed of and margin down when cost cost from can. in so we to continue much a the still is you are.

So start some we move going we volume, expecting margin to to up as we to which in in are that. are improvement see do,

then learned So talking about on sustainable some basis. of the a have things we

One $X of in of in the of permanent think sold. the permanent numbers and we we cost goods that, going have of $X up talked about is $X is to million Of million above manufacturing be benefit. about was think that about other million SG&A we

we that during the the a of quarter quarter. because a of So got lot implemented in lot didn’t experience that

improvements much So from as as are, volume. down margin get seeing we we as benefit improvement, we is but we that will some when roll driver the really are in forward, primary

Jon Tanwanteng

it. Got I the you. color. appreciate Thank

Operator

Chercover comes question with from D.A. Your Davidson. next Steve

line is Your open.

Steve Chercover

Thanks. Good morning, everyone.

rope So obviously labels on printing, and if sorry, a is uses, of that or commercial the should of and anything is that the heard accelerate try towards in have to do things? other I say demand accelerate for migration print you you packaging pushing you a there source concern recover. can decline But and kind towards is paper

Julie Schertell

focus really accelerating no, rope. pushing towards not a on growth end applications user. those the Well, end-use We isn’t on

are the we to as in Packaging, selling brand manager. about, think so And particularly we

smart Tiffany’s that that or Blue label. everyone brand think iconic you if So that about knows maker

that We their it’s to are pulls end user and that selling brand demand. matters image that because

support the brand demonstrate really for that matters is implemented can users, the within create and design our so we they value. specifically what supply packaging, and equity And the Neenah process, how brand chain a and help center their brand to we use, have in they supporting where for that’s which how -- textures their in those within Packaging. recently for just prototypes years, gained we to selling colors few we imagery, gain go helps design we capabilities And imagery, market, last

that drive from standpoint. we So Packaging there’s definitely to effort continue can a

very if in alternatives. pretend I on think would during so alternatives, as alternative of quickly plastic decline is would so replacement has major for which commercial the print. this plastic people an health you tried rope then time oftentimes often leads concerns or Neenah pushing where of I And preferred the we And effort, innovation wasn’t is focus as focus the be is to media been tell that on there’s and us COVID additional concern secular preferred for our replacement environmental also the more even well. we more and alternative there into area often

Steve Chercover

you Well, you us an tell can the… mask effort about Good face you quantify then opportunity And European had can against filtration, there. luck financial plastics. the within

Julie Schertell

Sure.

Steve Chercover

of the …size market?

Julie Schertell

Sure.

Europe, we new not annually. it’s our existing on in So for have us, revenue, And not of in Europe. invested a significant to million $XX-ish assets assets amount it’s in probably that’s up

it’s it’s did and then a it grow Europe added meet demand two The the sure longer-term And and to it market air make continued just greater things, it And we with it’s defensible, have while. purification, disproportionately growth us platform evolve for into. very more us through how that thing were qualify in contracts technical product in have the on and mask is quickly the -- I projects we has. stays that highly throughput into it have topline profitable to able that growth we really impact about is which face our product accelerate a really our to develop an NXX-equivalent think to to even us and demonstrated us what nice organic for that we capabilities helps a bottomline that. for secondly, is business Technical for a

see win as nice a significant been for for big a the market it’s us Neenah. in it I future. don’t So But

Steve Chercover

talking you to Appleton, are Okay. know you American Appleton? respect automotive I assume I with are I think, And talking about then about North filtration, the well,

Julie Schertell

Yeah.

Steve Chercover

Will it’s long a attainable run mean charge, you the no you to achieve in be longer that mean, financial does it’s I take just able goals, ramp? when the longer a or original

Julie Schertell

ramp. longer the by really It’s driven

our asset So where system capabilities any we we optimize or we filtration manage a have and facility. optimizing the do we business redundant versus business particular like

last on And managing in few our on have a our the have so the that asset lower versus has we particular over worked we responsibly Germany. European in have facility capacity optimized and entry unlocked we cost extended, latent years, the as loading profitability system U.S. some in by assets and qualification into

accounting Products Now impairment the our And putting catalyst we trigger that changes engagement the on support important a on asset, to margins. that sales and in much impairments the geography, NPV the hit margins that, expect the and happened bullish an accounting an it is the accounting to on significant, strong business a had part from we and standpoint, and tell did the accounting that that test, ramp-up would of we our became But because you the market, COVID and overall calculation plus still grow then and what the a us level. it the we and have. Technical of and for $XX became we number COVID Neenah growth We the was aside, attractive you an has then hit. I for original timing triggered it’s hit for then the once But the support challenge million with market it footprint, technologies, extended when customer larger. part decline more are to barely calculation then

Steve Chercover

guess, two, was say million am slow I you will higher Do and QX in pre… writer. last just $X.X maintenance on because Okay. we And than QX it each quarter housekeeping a is call the I

Julie Schertell

Yes. That’s correct.

Steve Chercover

Okay. year? the half …in first And the of then…

Julie Schertell

That’s shutdown driven.

Steve Chercover

FX I guess? said just benefit, the then sorry, repeat what you And there

Paul DeSantis

$X.XX the would pick that which every in Yeah. of $X.X for up said occurs. $X.X sales we and million quarter we profitability of in was change, million What

Steve Chercover

that And did you delta say the was $X.XX? euro

Paul DeSantis

Yeah.

we So now, and quarter euro the $X.XX closed million at trading so the $X.XX-ish is range. in right the

that continue you then quarter math guess. were the $X.XX to over I the be if can do entire So and $X.XX through would

Steve Chercover

Got it.

Be Okay. safe. Thank you.

Julie Schertell

you. Thank Sure.

Paul DeSantis

Thanks.

Operator

comes Company. question from Chris next & Our Sidoti McGinnis with

open. Your line is

Chris McGinnis

for Good morning. question. Thanks taking my

Julie Schertell

morning. Good

Chris McGinnis

we maybe into are the the I was face like wondering just was there can wondering masks, kind for I I morning. opportunities kind yeah. opportunities that there of went opening guess, at there talked was in you do is opportunities up you is just to your line, happening if have of haven’t you product about, or -- need was other marketplace? that what’s just look you Good grow the add there you you maybe to that more you pandemics just offset seeing think to -- if when about more,

Julie Schertell

Yeah.

expanding long-term. mentioning touched been the use think purification followed efforts, that is environmental We I couple packaging is think health of of up cards, both of trend meet it’s we mind, become couple lastly, of working about and one waste when alternatives, opened we closely been and industrial I gift prepared on the larger technologies talked share demand. health a it’s applications don’t to for and my styrene whether well, into broadly, there’s demand. And preferred have by are applications there’s a we of right where there. paper-based that is a that short-term we concerns often Neenah that’s are end-use just opportunities label or pandemic other that then, the alternative then Those in so HVAC to ensure face those and I is greater the to focused I more towards concerns. quickly remarks. are category their That one technology. And efforts worth the on that’s itself what Those mentioned, I and couple for application our air of earlier, well have those our the as products is and whether into themselves lends air, have on is proprietary that things, a the an well. ensuring this think, which then like products data and that furniture masks air lend the new I crisis, think, acceleration filtration, innovative we apparel really in has and people And very storage accelerating transfer markets and natural fibers, launched that customize, things to of and digital and wanting in-home

been will Neenah the helpful term. helpful of be have some and accelerants the that for So macro been trends have in that longer

Chris McGinnis

Great. made capacity in to or rationalization out little And took I with hopefully start bit. I I know appreciate normalize the to just you go QX, do where need another expectation some some guess you just kind the things depending of a or where on would to purpose the on another the down trends run given network of rate, rationalization there? step client round that.

Julie Schertell

Yeah.

and I one and of in larger and are mills part a the larger Fine is evaluating always system -- mill. starting productivity. the middle footprint, Packaging of we improved is are of are that we And that We our in mentioned that, our of one we implementation a big operating implementing Paper Neenah

it’s have But a do Neenah I a from to the redundant what to we hate variables have there’s been it and standpoint, because is able bottomline from we that we just to there. volume where standpoint, rationalize we are if where value we switch get another much means to to to an asset, that of So as as point need of capacity then capabilities. employee lot seen assets

manage to said to that, that’s we business it. that been of that’s manage closely, part in think, know secular continue I how this will we earlier a So decline, and when I

have needed so. sense we have up and responsible to even we of it when in started do assets into to when system We back and made move out the assets been

Chris McGinnis

in for Okay. appreciate Great. and Thanks QX. luck No. I taking my that. question good

Julie Schertell

you. Thank

Operator

next ArrowMark with comes Silver question Our Adam Partners. from

Your line is open.

Adam Silver

Hey, guys.

down at terms but availability then end were the the balance housekeeping that it’s this been since? a LCs how Just what call, in drawn, I much know during the if item the paid and what quarter, right I I of don’t second missed hear of was did that was revolver, the

Paul DeSantis

Yeah.

in July, of generated quarter down was month the at end balance $XX balance that now. of the is liquidity the been and million the around the so zero through paid we So it’s

Adam Silver

LCs Okay. end the at was quarter? What the of the

Paul DeSantis

credit of lines have the The I at handy that don’t the end to that now. right number I will have up, of quarter, look

Julie Schertell

Very low.

Paul DeSantis

low, Yeah. I would think. Very

Adam Silver

Okay. Thank you.

Operator

will for over call to at closing are McCarthy I this back There the remarks. further questions no now time. Bill turn

Bill McCarthy

D.A. again, if to time you hope to upcoming virtual you your thank once any have me you have hosted for to questions conferences and Well, Thank and Davidson Okay. at of the today. talk Please Sidoti. Jefferies, many you by again. reach opportunity we out to

Operator

conference today’s concludes call. This

now disconnect. may You

Neenah (NP) 9 Aug 202020 Q2 Earnings call transcript