Good morning, my name is Leah and I will be your conference operator today. At this time, I would like to welcome everyone to the Neenah Paper Third Quarter 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' prepared remarks, there will be a question-and-answer period. (Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded today November 5, 2014. Thank you. I will now turn the call over to Mr. Bill McCarthy, Vice President, Financial Analysis and Investor Relations. Please go ahead, Mr. McCarthy.

Okay. Thank you. Good morning everyone and welcome to Neenah’s 2014 third quarter earnings call. We released earnings yesterday afternoon and also posted backup data in an updated presentation in the Investor Relations section of our website. Today after I recap a few headlines, John O’Donnell our Chief Executive Officer and Bonnie Lynd our Chief Financial Officer will discuss activities and financial results for the quarter in detail. As usual following these prepared remarks, we’ll open up the call for questions. Consolidated net sales were a record $231 million, up 8% from a year ago. While this included sales from the Crane filtration business, which we acquired on July 1, it also reflected continued strong performance in each of our heritage businesses. Operating income was up an even more impressive 35%, reflecting benefits of both topline growth and cost improvements. GAAP earnings per share increased 18% from $0.68 to $0.80 per share, while adjusted earnings grew 36% from $0.61 to $0.83. In 2014, adjusted earnings excluded $900,000 or $0.03 a share for integration and restructuring costs, mostly related to the recent acquisition. In 2013, adjusted earnings of $0.61 per share excluded net benefits of $0.07, primarily for a one-time state tax credit. Adjusted earnings are provided to aid in comparability between periods, but our non-GAAP measure and are reconciled to corresponding GAAP figures in our press release. Finally I’ll note that our call today contains forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from these statements are outlined both in our SEC filings and in the Safe Harbor disclaimer on our website. With that, I'll turn things over to John. John O’Donnell: Thanks Bill. Our teams again delivered very good results for the quarter. Revenues were up 8%, including the Crane acquisition and a solid…

Thank you, John. I'll begin with technical products Sales of $122 million were up 16% compared with $104 million last year. This includes the Crane acquisition, which is delivering top and bottom line results in line with our expectations. Excluding the acquisition, sales increased 5% and were our highest ever third quarter. Volume growth accounted for about half of the increase with remainder due to a higher value product mix and increased selling prices. Excluding the acquisition, filtration sales were 9% in the quarter, while specialties increased 7% and backings were flat. Revenue growth this year has resulted from improved global economic conditions in the first half of the year especially as well as share gains as we expand our geographic presence and capture new business. Excluding restructuring and integration cost, operating income of $11.1 million was up by more than $4 million versus last year. As we had indicated, about a $1 million was a result of the delayed filtration maintenance down. The remainder of the improvement reflected a more profitable sales mix with strong growth in the high value filter products and labels, as well as higher volumes and selling prices. Third quarter results included cost of $1.1 million for restructuring and integration and we expect an additional 100,000 in the fourth quarter, combined with capital spending of million related to IT systems and infrastructure to support Crane, this brings second half cost to just over $2 million. This is below our original estimate of $2 million to $3 million as our teams have found ways to more quickly and efficiently integrate this business. Turning to fine papers, sales in the quarter were $101 million, down 1% compared with last year. This reflected 2% lower volumes partly offset by a higher value mix and increased selling prices. While…

(Operator Instructions) Your first question comes from the line of Steve Chercover of D.A. Davidson & Co. John O’Donnell: Hi Steve.

Thank you, good morning. Just a couple quick questions actually. Highlight of the automotive market and is that rolling over? And could you remind us if your automotive filtration is more focused on OEMs or replacement parts? John O’Donnell: Yeah, great. We'll we're seeing some fairly decent growth in the automotive business, more for us and I think as you see if you look at our historical results is that 30% of our business is actually going to OEMs and 70% is going to the aftermarket. And I think it is that mix that has enabled consistency as we've rolled through virtually every recession if you will in Europe with the exception of the grade 1 without any major impacts and continue to still see 8% compound annual growth rate. So that's the one business as a reminder too, 70% of our business is in Europe and it still continues to perform. And with the pressure that we've seen on the Euro that I mentioned in the prepared remarks continue to see our growth outside of Europe even more attractive.

So I think we'd be delighted to see Europe strengthen but to the extent that the economy remains weak is it fair to say that people who weren’t buying new cars have got to keep servicing their existing vehicles? John O’Donnell: Yeah, absolutely. I think the best way to think about this business is by miles not by new car and after, but as long as people are driving they have to take - caring for their vehicles whether they are buying new cars or the aftermarket and that's what drives our business. Now I don’t want to over generalize, we have other businesses also in Europe. Our wall cover business and some of our packing businesses and they are right more with the global GDP from that standpoint, but our transportation filtration business the best way to think about it is in miles and that's why it is so steady.

Got you. Okay and it seems like the early results from Crane are quite encouraging. Is it fair to say that your acquisition team still remains active and looking for opportunities? John O’Donnell: Yeah, absolutely, yes. Again M&A is one of the uses of cash that we look at. Organic capital is our first use from that piece. Finding the right fit for our business is key and that takes a lot of work. We've made three acquisitions in the last three years. They've all been very value-adding and very fitting into our system in the back group and those resources are clearly focused on what opportunity might be next. And we're in good shape from the balance sheet standpoint to act on it.

Yeah I have the impression that you could do a $200 million $300 million acquisition without much difficulty. But if you were to look at something that was significantly better than that would you consider using your stock as a currency for acquisitions? John O’Donnell: You know I think we look at all options from that standpoint that's not our preference from that piece, so we'll look at all options. And if in fact we do consider that it will be selective for the marketplace as to why that was a very good thing for us to do.

Great, and final question from me, you know Neenah Paper is definitely not the company it was 10 years ago when you're hatched. If you could look out five years can you see any other significant transformations even new businesses? John O’Donnell: Well, I'll tell you that's, I don’t know what I'm going to eat next week, so I mean that's a hard question from that standpoint. But what I do know what won't change is the commitment of Neenah Paper to continue to evolve in areas where we can drive meaningful value and the principle. It is not as really as much about getting big as it is providing value that customers will pay for. So I imagine we if all today because you're asking me I'm limited with my current information, I'm clearly biased towards filtration. We've demonstrated it has a lot of value for us and then on the Fine Paper side, I'm giddy on their performance around luxury packing. So I would love to see us as a much more significant player in both of those in the in the future.

Very good, thank you very much.

Your next question comes from the line of Dan Ducome of Sidoti & Company John O’Donnell: Hi Dan.

Hi Dan.

Good morning everybody. How are you? John O’Donnell: Good.

Great.

Good, nice job by the way, I guess first on the Technical Products segment I think you said filtration sales were up 9%, is that correct? John O’Donnell: Yes.

Okay, did you comment on the volumes? I'm just trying to get a sense of sort of like what level of pricing are you able to get there? John O’Donnell: On the volumes…

Just filtration volumes. John O’Donnell: Okay. Yeah would you?

Separately, but yeah we had our filtration has been in combination of volume, price and improvement, and everything is working. John O’Donnell: Yeah I would think from that piece of it it's predominantly volume growth but we did have pricing activity as we do across all of our businesses. The lion's share of that though will be actual consumption and volume growth. Sorry I didn’t understand.

So most of it was volume you said. John O’Donnell: Yes.

Okay. John O’Donnell: I try to characterize it as 2/3rds volume and 1/3 price.

Yeah and Dan when you look in the Q you're going to find the entire improvement hat we get from Crane volumes as filtration volumes. John O’Donnell: Yeah it's characterized that way.

Great, now I mean even backing off the Crane it was still pretty good number I think you know this the seasonally softer part of the year. And then I also was going you ask you also how would the seasonality of the Crane versus your legacy filtration business can you talk to that? John O’Donnell: Sure, I'm sure happy to. First off let me lead back up a little bit more. Our Fine Paper business is typically first half to second half it is pretty even although our third quarter is usually better than fourth quarter. In our technical businesses it is the easy one to remember. The first quarters are the best quarter and the fourth quarter is typically the worst quarter from that standpoint, because most of our technical businesses are in processes in to some other value adding product. So customers have a tendency to manage their inventories based on how they see the opportunity for future demand. So the Crane business is no different really than our filtration business or other Technical Products business in that sense. Customers continue to look at their inventories and manage them to year end in a similar fashion. So expect fourth quarter to be their weakest quarter. We've said I think, I characterized in the previous call Technical Products being 52% first half 48% in the second half. So…

Great. Okay and then I guess, I appreciate that, I guess similar question the other segment on Fine paper I guess, revenue flat to down 1%. You said volumes were down 2% and I know it was another tough quarter for uncoated, but just wondering can you talk to that, I think you mentioned it was kind of dragged down by the lower grade papers? John O’Donnell: Yeah, I would like to talk about that because I don’t want to hook you to the uncoated market, although it's been back the paper market has been pressured. If the year ended today, this business will have demonstrated growth seven years in a row. So, while the quarter, while we tend to see, we have private label products or other products that tend to move in special make and tend to move in lumpier for the lack of an eloquent word. But our core products that truly drives the real profitability did very well. So when we look under the hood, we’re also very pleased with the quality of the quarter and I think you see that on the bottom line as well from that standpoint. So I am not at all concerned in that businesses ability to continue to deliver great returns and thrown off strong cash flows.

Okay, great and then a last one and I’ll jump back in line. I was just thinking about the premium, you know the luxury label, premium packaging market, I guess who are you really competing with there? I don’t know if you could disclose that, just curios I know obviously Mohawk's a big player on Fine Paper, but I am just trying to you know trying to chew down on that who would you be competing with? John O’Donnell: Yeah, and that is a very, very fragmented business and I think many people are doing it as a hobby. We’ve tried to focus our luxury packaging efforts to be around retail, alcohol, cosmetics and electronics from that standpoint. So it's not very meaningful to a lot of players. We want to make it very meaningful to us from that standpoint. So we are likely not going to go out and make an acquisition that puts you immediately into that business. We’re going to do as we have done over these past few years is continue to look for capabilities externally that that compliment ours and then change our Fine Paper organization towards more packaging oriented and continue to support their growth organically.

Okay, so it sounds like it’s not any big publicly traded company, it is smaller independents? John O’Donnell: Absolutely

With less scale. John O’Donnell: Yeah, there are public companies that have a little piece, but there’s no clarity there in this marketplace.

Okay, I’ll jump back in line, thank you.

The next question comes from the line of Jon Tanwanteng of CJS Securities.

Good morning, this is actually Jack O'Brien Jon. John O’Donnell: Okay, but that this will still be eloquent Jack.

Alright, first of all congratulations on the nice quarter. You briefly addressed trends going into Q4 in your prepared remarks, but I was wondering if the more profitable product mix in those segments is going to sustainable going forward? John O’Donnell: Yeah, I think we talked about the Fine Paper side of it and in reality while their volumes are typically a little more compressed in the fourth quarter, because it’s such a branded business that branded business stays fairly stable so decent mix. Well around the technical side from that piece of it, oh again we should still expect to see strong mix. The mix doesn’t come from a one quarter order pattern it comes from our emphasis of the organization of continuing to drive it. On the tech side where I talked about transportation filtration and combination products, those are developed over a significant amount of time, so those will still be there, those mix will still be there. But I would expect a lot of the other volumes to potentially dip.

Okay, great and then as a response as a follow up to the previous questions asked, you addressed on premium Fine Paper brands and luxury packaging are highly fragmented and you guys have experienced really good growth there. Do you find yourselves taking share given you’ve been so concentrated on it? John O’Donnell: Well knowing that we are growing over 20% year-to-date I don’t believe the luxury packaging business is growing at that, so I would mathematically I am going to say we are taking share in that regards.

Okay, great thank you very much.

There are no further questions at this time. I will now turn the conference over to John O’Donnell for final remarks. John O’Donnell: Very good, once again thank you for your interest in Neenah and we look forward to updating you again on our next call in February. Thank you.

This concludes today's conference call. You may now disconnect.