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Neenah, Inc. (NP) Q1 2021 Earnings Call Transcript

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NP earnings call for the period ending March 31, 2021.

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Neenah, Inc. (NP)
Q1 2021 Earnings Call
May 7, 2021, 8:00 p.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Ladies and gentlemen, thank you for standing by and welcome to the Neenah First Quarter of 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] And please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today. Mr. Bill McCarthy, Vice President of Investor Relations. Thank you. Please go ahead.

Bill McCarthy -- Vice President, Investor Relations

Thank you for joining us for Neenah's first quarter 2021 earnings call. We issued a press release covering financial results yesterday afternoon, and hopefully many of you who've had a chance to review that information. On the call with me today are Julie Schertell, our Chief Executive Officer and Paul DeSantis, our Chief Financial Officer. Julie and Paul will discuss recent activities and results as well as share some thoughts as we look ahead in the year.

As always, actual results could differ from these forward looking statements due to risks noted on our website, and in our SEC filings. Following our prepared remarks, we'll open the call for questions. We started the year strongly with adjusted earnings of $1 for per share. This excluded $0.55 for costs primarily related to our acquisition of ITASA in 2020, adjusted earnings of $1.12 per share excluded $0.15 of unusual costs.

Complete details on adjusting items along with the reconciliation to GAAP figures can be found in our press release. As a reminder results in both years also reflect the reclassification of our publishing grades from technical products to find paper and packaging annual sales for this business were around 25 million last year.

On a personal note, this will be my last earnings call after 17 years with Neenah I can happily retire now that I hold the company record for the most consecutive earnings calls. Sorry, Bonnie. I've seen our company changed dramatically from its origins and pulp and paper becoming faster growing and more capital efficient, while also significantly increasing cash returns to shareholders. I'm excited by the opportunities ahead both for me and for Neenah. And it's been my pleasure to work with such a talented group of people through the years.

With that, I'd like to turn things over to Julie.

Julie Schertell -- Chief Executive Officer

Thanks. Good morning everyone to financial results for the first quarter outpaced our plan, demonstrating strong momentum and continued demand increases in both of our business segments. Technical product sales increased 10% over the prior year, and our filtration business delivered a quarterly record in both sales and profit. Sign paper and packaging revenues grew 8% versus the fourth quarter and have grown sequentially in each of the last three quarters, putting us right on track to achieve or exceed 2021 revenue target consolidated net sales of $227 million worth 10% from the fourth quarter, they'll still down slightly versus last year, due to the expected slower recovery of fine paper and packaging. adjusted operating income of $26 million was up significantly for $21 million in the fourth quarter, and we just short of last year, while adjusted earnings per share a top dollar for only the second time in the past 11 quarters with improving volumes and discipline cost management.

Operating margins expanded in both segments to mid-teen levels. In addition, cash generated from operations of $21 million was one of our strongest first quarters and up from $14 million last year. Our strong cash generation and solid balance sheet provide the financial foundation for us to successfully execute our strategies to grow and targeted platform. This includes the recent acquisition of ITASA, which further expanded our presence, especially coding. I'm very excited about the opportunities this new platform brings to Neenah and we'll talk more about the acquisition later in the call. As results in the quarter reflect we're making progress in a number of areas.

However, the year has not been without a few challenges, with temporary supply chain disruptions and rising input costs, which will impact us more significantly, starting in the second quarter. Our teams have responded swiftly to these challenges, working diligently with key suppliers to procure necessary materials and implementing selling price increases. Paul we'll talk more about this later. But we fully expect to offset the impact of rising input costs over time, just as we have historically demonstrated.

Let me wrap up for now with a few additional accomplishments in the quarter. First and foremost is employee safety with Have a meaningful milestone in our safety performance in March as our entire global organization for the first time ever successfully completed a month of zero recordable incidents. This demonstrates the commitment of our employees to safe work practices. Our target is zero incidents and our team has demonstrated this is achievable.

Next, we've continued to expand our presence in key targeted markets. Our filtration business is growing at an accelerated rate, both in core markets and in newer markets, like air and industrial filtration. Examples include our highest performance transportation grade space, mass media, water filtration products, and evaporative cooling materials. Also in technical products, our backings, businesses growing with new tape products and geographic share games. We're seeing nice traction and performance labels, was recently launched this versa, a dissolvable food label product that provides users added convenience, and a more environmentally friendly footprint with a zero landfill waste, and fine paper and packaging.

We were recently awarded significant new business with incremental placement at large retailers for our consumer products, and new premium packaging business within our target verticals as spirits, beauty and technology. As customers increasingly value the environmental sustainability of our offering both the new packaging and consumer products business will begin shipping later this year.

We took significant steps toward during the quarter on important environmental, social and governance initiatives. We published our 2021 corporate sustainability report highlighting Neenah's sustainable sourcing practices, reductions we've achieved and our carbon footprint, water and energy usage and the increased diversity of our board and workforce. Also, I recently joined the CEO action for diversity and inclusion organization. And we've introduced employee resource groups so that employees can connect in new ways. I strongly believe a diverse and inclusive workforce leads to greater performance, growth and opportunities.

In-all, I was very pleased with our strong financial performance, the results of our employee safety effort, early benefits from the new operating system, and the successful execution of our strategy to grow and expand and targeted new markets, including the addition of ITASA. I'll talk more about this and some of our other strategic initiatives later in the call.

But now Paul will cover first quarter financial results in more detail and share few thoughts on our outlook for this year.

Paul DeSantis -- Chief Financial Officer

Thank you, Julie, and good morning. Both business segments delivered another sequential quarter of improved sales, earnings and margins versus the fourth quarter of 2020, sales were up 10% adjusted operating income grew 25% and margins reached the mid teen mark. Our cash generation remains strong, and we ended the quarter with liquidity of just under $200 million. We also closed on ITASA in early April, and finance this acquisition with a more favorable term loan fee.

As you will see later today in our 10-Q we've modified the way we group our technical products category to better reflect our alignment with the pasta filtration, which remains our largest business will represent over 40% of segments sales are released lighter and digital transfer business.

Now including the ITASA will form the core of a new specialty coding sub segment. Our third grouping is industrial solution comprised of tape and abrasive backings, along with a number of other categories. Specialty coatings and industrial solutions are each expected to represent about 30% of technical product sales. Turning to financial results in the first quarter technical product sales of $145 million increased 10% from the first quarter of last year. The volume driven growth was led by filtration, which delivered record top and bottom line performance. Filtration sales grew more than 20% with strength across all markets. Revenues in the quarter also benefited from a stronger euro. So this was largely offset by lower selling prices in the quarter.

Adjusted operating income of $20 million was up more than 20% from 16 million in 2020. Driven by higher volume, continued spending discipline, good manufacturing performance and favorable foreign currency translation turning to find paper and packaged quarterly sales were at 2 million and have continued to increase sequentially, with sales up 8% from the fourth quarter of 2020.

As demand recovers, revenues were still short of last year, primarily due to lower volumes, especially in commercial print used for advertising and marketing, which has been hardest hit. Adjusted operating income of $13 million in the first quarter of 2021 was down from the exceptionally strong $17 million in the first quarter of 20, primarily due to lower sales and production volume, and a less favorable mix, partly offsetting this were benefits from lower costs, including SG&A.

We also regrouped our product categories and find paper and packaging are faster growing premium packaging and consumer products now make up almost half of segment revenues, and will help improve the growth trajectory. Commercial print, which includes publishing makes up the other half of revenues.

I'll turn to a few corporate items SG&A expense was $24 million in the first quarter of 2021, down from $27 million in the prior year as a result of actions we've taken to manage spending and reduce costs. Unallocated corporate costs after adjusting for one time items related mostly to the ITASA acquisition, or $6.2 million, and in line with the prior year in 2021 excluding ITASA. We expect quarterly SG&A to average approximately $25 million with unallocated corporate costs of about $5.5 million.

We're in the process of completing purchase accounting and mapping ITASA P&L line items to us gap will provide further details on this later in the year. With the upsizing of our term loan be from 200 million to 450 million, we negotiated more favorable terms, including a reduction in the variable interest rate from 5% to 3.5%. Quarterly interest expense is now expected to be approximately $4.7 million, which includes 1.2 million of non cash amortization expense

Our effective income tax rate was 21%, in both the first quarter of 2021, and the first quarter of 2020. ITASA carries a blended tax rate in the mid 20s. So our tax rate may rise over time, but a rate of 22% should still be in the ballpark for this year. Cash taxes continue to be about two thirds of our book rate, primarily as a result of utilizing prior period R&D credits.

Cash provided from operations of $20.7 million in the first quarter of 2021, increased from $14.2 million in the first quarter of 2020 as a result of lower working capital requirements. Capital spending of $4.8 million in the first quarter of 21 was consistent with the prior year, and we expect full year spending to be around $35 million.

Our balance sheet remains in great shape. Following the acquisition projected debt to EBIT does around three times. And with cash of $41 million and nothing drawn on our revolver, we continue to have plenty of liquidity.

I'll wrap up with a few additional comments in our outlook. Clearly an encouraging sign has been the strengthening demand we're seeing in both segments. We just had a very strong quarter evidencing the attraction of our strategy that's beginning to show. As we look ahead, we expect technical products to resume a more typical seasonality with sales softening as the year progresses.

Both segments will also have our usual costs for annual maintenance down in the third and fourth quarters. Like many companies, we are facing a rapid escalation in input costs, affecting prices for fibers, chemicals, and transportation, because our manufacturing formulations in technical products utilize the significant amount of polymers and other chemicals as well as fiber. The impact of rising input costs on this segment will be larger and about twice that fine paper and packaging.

To be clear, Neenah has historically been able to recoup raw material price increases, and I expect this time to be no different. In our February call, I indicated that input costs this year could be more than $20 million higher than in 2020 and that we would more than offset that through our pricing actions, volume growth and cost reduction efforts. Since that time, fiber and chemical price forecasts have increased. And now we project the impact to be north of $30 million this year, and unprecedented amount in this short period of time.

As such, we are and have been quickly taking additional actions to offset this incremental impact. Consequently, I still believe that with our strong Q1 performance, and these additional actions will offset the impact of higher input costs this year. While I feel good about our prospects for the full year with contractual timing delays, in many of our fiber contracts, and annual pricing for some customer contracts, we'll see a significant cost impact beginning in the second quarter, compared to the first quarter, the impact of higher input costs in the second quarter of 2021 net of our actions is likely to be around $7 million. The impact should begin to moderate from there as contractual selling price adjusters and additional actions take effect. Ultimately, we expect to recover input cost increases with pricing. As we have historically, as additional contracts or reset. Price adjusters fully take effect and our direct pricing actions are completed.

Let me turn to a few financial highlights of the tasks that he talks to his annual sales of about $140 million, or approximately 35 million per quarter with the mid team EBITDA margin. Since we're still in the process of finalizing purchase accounting, I won't comment on US GAAP numbers, but would note that well organic businesses carry a depreciation and amortization rate of about three to 4% of sales. This percentage for acquisitions can be double due to reflecting the fair value of intangibles and other assets. We expect the transaction to be immediately accretive to earnings and to deliver attractive returns on our investment.

Having been at Neenah for a year, I've been pleased with our clear strategic direction to drive profitable growth and with the talent and can do attitude in place to execute these strategies, and all enabled by our strong financial position. Neenah remains committed to disciplined financial principles, including an attractive return to shareholders.

And on that note, I'll turn it back to Julie.

Julie Schertell -- Chief Executive Officer

Thanks, Paul. I'll wrap-up with some comments on our strategy and the actions we're taking to execute it. I've mentioned that we're focused on extending our presence and growing markets, both organically and through M&A. We've identified four target growth, platform filtration, specialty coating, engineered materials and premium packaging. These platforms are made up of a large growing profitable and defensible market that align with our manufacturing technology, leverage our material science expertise, and shared common customers and pass to market.

The recent acquisition of ITASA is just one example of how we're building out these growth platforms. ITASA is a leading manufacturer in the multi billion dollar global release liner market, providing us a new large addressable market opportunity. We leased lines are used in a diverse set of end use categories, such as labels, hiving tape, industrial, medical, and composite, making a task that well-positioned to capture growth in multiple avenues ITASA is also well-positioned geographically with a strong market presence and state of the art technology. Historically, the release letter market has been resilient throughout economic cycles.

Going forward the markets anticipated growth is supported by several key macro trends, such as the growing demand for medical and hygiene supplies, increased labeling and shipping and lightweighting of products through the use of composite. ITASA has demonstrated a strong track record of growth and margin expansion, with historical growth of around 8% annually. Strategically, this acquisition provides a meaningful foundation and release liner from which we can build upon both organically and through future acquisitions with overlapping customers and end markets, as well as complimentary technologies and supply chain.

We're excited about how this new platform integrates with our core business. One of the most compelling aspects of this transition action is the talent and leadership team of the pasta. I'm very encouraged by our early integration effort and the potential value we'll create together as one team. Integration is well under way, and we anticipate about $4 million and of current synergies, coming both from commercial and cost opportunities.

For Neenah as a whole, we're targeting to deliver average top line growth of around 5% annually, with a faster bottom line growth rate as our margins continue to expand. M&A will continue to be a key component of our strategy, combined with a number of catalysts in place to drive organic growth.

Let me talk about some of these next. From a top line perspective, with investments and resources by Ford our four growth platform, we expect to accelerate our organic growth rate with an improving portfolio mix. In filtration, we've seen strong results across all and markets. While transportation filtration remains very strong. Our air, water and industrial filtration business is growing in double digits and represents a large market opportunity. We'll continue to invest to extend our technologies and expand our presence and these complimentary filtration markets. I've talked about the opportunities we have in specialty coatings with ITASA and with our digital transfer business.

Our third platform engineered materials utilizes some of our most specialized material technologies in a growing market. This business is growing double digits top line and bottom line with future growth supported by recent investments that will increase our capacity, while our growth will come disproportionately from technical product, which is now 70% of Neenah. We're also successfully growing and premium packaging and consumer products. I mentioned earlier a few of these recent successes that are driving growth in these areas.

Finally, I know that all four of our targeted growth platforms benefit from favorable macro trends, like the need for improved air and water quality, an aging population and a growing preference for sustainable products. And nation is also like key catalysts that will add to our growth rate. Well, always a part of our focus. I'm encouraged by the direction we're heading under our new Global Head of innovation. We've aligned our R&D teams to leverage their knowledge and skills across Neenah, and are tapping into employees and customers for input insights and ideas. This will allow us to identify and act more quickly on opportunities to unlock even greater value with existing and new customers and market. And I expect our pace of development to continue to increase over time.

Turning next to margins, we expect both segments. Ultimately, to achieve sustainable mid team EBIT margins. Margins will benefit from an improving and diversified mix. As our faster growing and more advanced products tend to be the most profitable as our performance this quarter demonstrates. And our innovation efforts will also be pointed to these higher margin products and markets. The Neenah operating system is another way we'll continue to drive meaningful and sustainable margin improvement.

As a reminder, this global manufacturing initiative is based on lean principles. And we've recently begun implementation at two of our largest facilities. That's far results have exceeded our expectations. And ultimately, we expect to unlock $20 million of value annually and support our employees and customers with improved safety, quality, delivery and cost.

As I said in our last call, none of this would be possible without the right people. I'm pleased with our talent and with a culture that makes safety the top priority if result oriented with a strong bias to speed, and it's collaborative and inclusive. We started off the year strong with our growth and margin engines delivering ahead of expectations. In the near-term, we are facing inflationary headwinds, and we're taking actions to overcome these just as we have historically, we have a strategy with clear catalysts and initiatives under way that will create long term value and continued Neenah's transformation into a faster growing more profitable specialty materials company.

Before we open the line for questions, I'd like to thank Bill McCarthy, who has been our Investor Relations leader from the start, and with over 66 quarters of earnings cloud experience with Neenah in addition to IR, Bill has been involved in multiple areas in Neenah and we have valued and benefited from his expertise guidance Like, internally and externally. On our next call, we'll introduce Kyle Anderson, who will be taking over the IR function, and his contact information is on our website. Kyle has deep and broad experience with Neenah. And I'm confident he will also be highly effective in this role.

I'd now like to open the call for questions.

Questions and Answers:

Julie Schertell -- Chief Executive Officer

Hi, this is Julie and Paul. I don't know if we have a bad connection. But if you can hear us ask questions, we're here and available to answer

Pete Lukas -- CJS Securities -- Analyst

Yeah, can you hear me?

Paul DeSantis -- Chief Financial Officer


Pete Lukas -- CJS Securities -- Analyst

Hey, sorry, I don't know what happened here. It's Pete Lukas of CJS for Jon.

Julie Schertell -- Chief Executive Officer


Paul DeSantis -- Chief Financial Officer

Hi, Pete.

Pete Lukas -- CJS Securities -- Analyst

How are you? Congrats on the quarter. You answered a lot of the questions and appreciate that. Just wondering if you could talk a little bit how demand is trending in April and May. And if you've seen any surprises, either positive or negative on the demand side.

Julie Schertell -- Chief Executive Officer

I would say we're continuing it's a little bit different by segments. We don't get formal guidance, obviously. But we're continuously recovery and fine paper and packaging just as expected more so in the consumer product side and packaging, and still a little bit lagging on commercial print. And then tech products has really recovered from any impacts on COVID and is continuing strong demand just as we saw in the first quarter.

Pete Lukas -- CJS Securities -- Analyst

Great. And in terms of filtration, usually you negotiate those prices at year end, do you think you'll be able to pull that forward given the current environment?

Julie Schertell -- Chief Executive Officer

That is the question of the day, you know, the team in both segments have announced and implemented pricing. And you're exactly right, the ones that have a little bit more of a lag for us typically, our infiltration because we have annual agreements, we're in a pretty unprecedented environment. And so we're working closely with customers during this time to see what different approaches we may use.

But the pricing we've announced we've pulled through, it's been a fact it's delivering value, just as we expected. And you know, over time, there might be some timing differences. Here we have a history of recovering input costs, we're expecting the same thing with these input costs, escalation.

The other thing I would tell you because it's so condensed and so fast, and this year, we're really focused on how we close that gap, not just with pricing, but with incremental volume with an improved mix in the growth platforms we've talked about with cost reduction efforts with our Neenah operating system efforts as well as pricing.

Pete Lukas -- CJS Securities -- Analyst

Great. And then I guess, last one, for me sticking with filtration, given that you're having a record quarter, are you starting to fill up the Appleton capacity now?

Julie Schertell -- Chief Executive Officer

Our filtration business is strong across all of the categories in which we compete, transportation filtration, water, air filtration, evaporative, cooling, industrial air, so really strong demand signals that we're getting, that we've talked about in the past, we don't manage, you know, by asset as much as we do the system. So we do make trade off really excited to thrill with the margins and demand in that business.

But I would tell you, as far as our North American filtration, transportation filtration business, it is not yet delivering and where we expect and it is still a drag on our financials. So record performance, but it's not really being driven out of our North American transportation filtration.

Pete Lukas -- CJS Securities -- Analyst

Very helpful. Thank you very much.

Julie Schertell -- Chief Executive Officer

Sure. Hi, Chris [Phonetic]. We can see your name on the screen, but I don't know if you can hear us.

Christopher McGinnis -- Sidoti -- Analyst

Hi. Can you hear me?

Julie Schertell -- Chief Executive Officer

I can.

Paul DeSantis -- Chief Financial Officer

Now we can.

Christopher McGinnis -- Sidoti -- Analyst

Sorry, this is a long day. But, I didn't get prompted. So I apologize.

Julie Schertell -- Chief Executive Officer

No problem.

Christopher McGinnis -- Sidoti -- Analyst

Congratulations, congratulations on a strong start to the year. Bill. thanks for all the help and good luck in retirement, I'm going to miss you. I guess just to start with the domain, and I get around filtration securities talking about, you know, how much of that is maybe pent up demand? Or, or versus maybe, you know, change in the market and can use has COVID change the market to a higher growth rate in some of those end markets that you're working with titration, right in water? Thanks.

Julie Schertell -- Chief Executive Officer

Well, I think there's, you know, there's some great macro trends, particularly in areas like water filtration, and air filtration, indoor air pollution control, indoor air quality. So those macrotrends are, I think, maybe escalated coming up COVID just because there's a heightened awareness in all the populations, as far as transportation filtration, we're not seeing a significant amount of pent up inventory or pent up demand.

At this point, it continues to recover and has recovered nicely. There's also a small amount of facemask in there that we didn't have last year, we're doing about $4 million, a quarter, a facemask and so it's small in total. What it does, though, is really provide another avenue and entry into indoor air quality air pollution control industrial air, and cemented Neenah as a strong provider technically in that market.

Christopher McGinnis -- Sidoti -- Analyst

To follow up, you talked about the expansion of market, or you already started into that, or I guess can you just I know that you just brought those online last year. So can you explain the higher power higher? Thanks.

Julie Schertell -- Chief Executive Officer

Thanks. Sure. So the easiest, you know, penetrating the market is never easy, but the easiest place to do it is where you have customer overlap. So that's where we started where we have customer overlap and pasta market overlap. And so where we provide transportation filtration, historically, many of those same customers are also buying indoor air quality filtration media or air pollution control or industrial air type of media. So that's where we started, we've continued to see nice demand, and we're continuing our resources and investment into more of those focal areas.

Christopher McGinnis -- Sidoti -- Analyst

Right. And I probably should have started with I missed some of the calls. I have a number of earnings today. So I apologize if there's any overlap with my but I guess just to thinking about maybe last quarter what you said about sequential improvement, you still expect that for the for the businesses that remainder of the year, or is the issues around raw materials, possibly impact that any demand trends, already worried about that with the escalating raw material prices?

Julie Schertell -- Chief Executive Officer

So you're asking about demand, sequential improvements or thought of

Christopher McGinnis -- Sidoti -- Analyst

Yeah, yeah, no top line, but just because of the rising prices, have you seen any changes with your environment, because of those price increases?

Julie Schertell -- Chief Executive Officer

The short answer is there's no, we're not saying that impact demand, what I would tell you is tech product has pretty much recovered, you could see that in Q4 and Q1 from a demand standpoint, we expected to return to come some of our normal seasonality, which typically start more front end loaded and get a little bit softer, particularly in Europe in the summertime, I would expect that in tech products demand and fine paper and packaging, which is where we had intended to message continued sequential improvement, we're continuing to see that business comes back.

It's just that a more lag timeline because it's really driven by some things like advertising that comes back a little bit slower. But we're really seeing that comeback continue throughout the year and a nice improvement and 50% of that segment, which is now consumer products and packaging, and not solely dependent on commercial print, which is more lagging in that recovery.

Christopher McGinnis -- Sidoti -- Analyst

Is that was just the pack inside. Is that are you benefiting from the e commerce posts? And and I guess how are you growing with new customers and actually this expand, you know, just talk a little bit about that growth?

Julie Schertell -- Chief Executive Officer

Sure. Both in the packaging and in consumer products, which are really where we have stronger market dynamics, we've had some really nice recent wins. Some of it is related to e-commerce, a lot of that is related to sustainability, environmental sustainability and our customers bias toward that and that's continued to work accelerate. So both in consumer products, we've been awarded new business that will start shipping significant new business, or I wouldn't mention it, that'll start shipping in the latter half of this year. And then we've been awarded nice new business in our packaging area as well, primarily in the technology, beauty and spirit vertical. And that is driven by some of that is driven by dotcom, particularly everybody on Amazon.

Christopher McGinnis -- Sidoti -- Analyst

And then just around passive. Can you just talk a little bit about I know, you've just closed behind, but you know, the integration there. And I guess, how does it strengthen your go to market strategy? You just spoke a little bit more of the benefits from the acquisition? Thanks.

Julie Schertell -- Chief Executive Officer

Sure. So ITASA, we are in the process of early integration, it's going really well, as we talk about our growth platforms. But one of those growth platforms a specialty coding, we do a lot of coding and saturation at Neenah. So the technology overlap chemistry overlap, how we go to market is similar our supply chain, we have customer overlap. The some of the benefits as we work through integration, we're expecting about $4 million of synergies that will ramp in starting the latter part of this year and be at that run rate by the back half of next year. It's really split between cost benefits in areas like transportation and warehousing and procurement, as well as revenue overlap where we have a significant amount of opportunities in North America in particular, that Neenah does a lot of business if you think about our industrial segment, taste and abrasive. That's where we see a lot of common customers between tape and abrasive and release liners.

Christopher McGinnis -- Sidoti -- Analyst

Great and I appreciate that. I wouldn't get you on Appleton, because somebody already asked that question. But thank you for taking the question.

Julie Schertell -- Chief Executive Officer

Yeah, sooner, yeah. Fair enough.

Christopher McGinnis -- Sidoti -- Analyst

Thank you.

Julie Schertell -- Chief Executive Officer

Thank you.


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

Bill McCarthy -- Vice President, Investor Relations

Okay, thank you for your time today. It's been my pleasure to get to know many of you through the years. And I know I leave you in good hands with Kyle and Paul.


[Operator Closing Remarks]

Duration: 37 minutes

Call participants:

Bill McCarthy -- Vice President, Investor Relations

Julie Schertell -- Chief Executive Officer

Paul DeSantis -- Chief Financial Officer

Pete Lukas -- CJS Securities -- Analyst

Christopher McGinnis -- Sidoti -- Analyst

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