The following discussion should be read in conjunction with the information in the unaudited condensed consolidated financial statements and notes thereto included herein and Glatfelter's Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations included in our 2021 Annual Report on Form 10-K ("2021 Form 10-K").
Introduction We manufacture a wide array of engineered materials and manage our company along three operating segments:
•Spunlace with sales of premium quality spunlace nonwovens for critical cleaning, high-performance materials, personal care, hygiene and medical applications.
The former Specialty Papers business' results of operations and financial condition are reported as discontinued operations. Following is a discussion and analysis primarily of the financial results of operations and financial condition of our continuing operations.
Six months ended June 30, 2022 versus the six months ended June 30, 2021
Adjusted earnings consists of net income determined in accordance with GAAP adjusted to exclude the impact of the following:
Strategic initiatives. These adjustments primarily reflect professional and legal fees incurred directly related to evaluating and executing certain strategic initiatives including costs associated with acquisitions, related integrations, and charges incurred to step-up acquired inventory to fair-value.
Russia/Ukraine conflict charges. This adjustment represents a non-cash charge recorded to reduce the carrying amount of accounts receivable and inventory directly related to the Russia/Ukraine military conflict.
The following table sets forth the reconciliation of net income to adjusted earnings for the period indicated:
Sales and Costs of Products Sold
Net sales totaled $745.6 million and $470.6 million in the first six months of 2022 and 2021, respectively. Net sales for Composite Fibers and Airlaid Materials (including Mount Holly) decreased by 2.0% and increased by 63.7%, respectively, on a constant currency basis. The Spunlace segment, formed in connection with the Jacob Holm acquisition, had net sales of approximately $193.3 million in the first six months of 2022.
The table below summarizes the translation impact on reported results that changes in currency exchange rates had on our non-U.S. based operations from the conversion of these operation's results for the first six months of 2022.
Three months ended June 30, 2022 versus the three months ended June 30, 2021
Overview For the second quarter of 2022, we reported loss from continuing operations of $2.5 million, or $0.05 per share compared with income of $1.5 million and $0.03 per diluted share in the year earlier period. The following table sets forth summarized consolidated results of operations:
The following table sets forth the reconciliation of net income to adjusted earnings for the period indicated:
Sales and Costs of Products Sold
Spunlace net sales for the second quarter were approximately $96.9 million. An operating loss of $1.8 million was mainly driven by higher raw material and energy costs only partially offset by higher selling prices and energy surcharges.
The table below summarizes the translation impact on reported results that changes in currency exchange rates had on our non-U.S. based operations from the conversion of these operation's results for the second quarter of 2022.
(1)Adjusted EBITDA for 2021 has been restated to add back share-based compensation consistent with our amended credit agreement. The share-based compensation adjustment represents the non-cash amount of share-based compensation expense included in results of operations.
from sales of timberlands. Adjusted EBITDA is a performance measure that excludes costs that we do not consider to be indicative of our ongoing operating performance.
Details of our outstanding long-term indebtedness are set forth under Item 1 - Financial Statements - Note 16 -" Long-Term Debt . "
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