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Tredegar Reports First-Quarter Results

May 6, 2009 at 5:02 PM EDT

RICHMOND, Va., May 6 /PRNewswire-FirstCall/ -- Tredegar Corporation (NYSE: TG) reported a first-quarter net loss from continuing operations of $28.8 million (85 cents per share) compared with net income from continuing operations of $3.8 million (11 cents per share) in the first quarter of 2008. Results in the first quarter of 2009 include a non-cash, goodwill impairment charge of $30.6 million (90 cents per share) related to its aluminum extrusions business. Earnings from continuing manufacturing operations in the first quarter were $4.6 million (14 cents per share) versus $6.0 million (17 cents per share) last year. First-quarter sales from continuing operations decreased to $153.1 million from $228.5 million in 2008.

A summary of results for continuing operations for the three months ended March 31, 2009 and 2008 is shown below:




                                                                Three Months
     (In Millions, Except Per-Share Data)                          Ended
                                                                  March 31
                                                                  --------
                                                                2009    2008
                                                                ----    ----
     Sales                                                    $153.1  $228.5

     Income (loss) from continuing operations as reported
      under generally accepted accounting principles (GAAP)   $(28.8)   $3.8
     After-tax effects of:
         Goodwill impairment relating to aluminum
          extrusions business                                   30.6       -
         Loss associated with plant shutdowns, asset
          impairments and restructurings                         1.1     2.7
         (Gains) losses from sale of assets and other items      1.7     (.5)
                                                                 ---     ---
     Income from continuing manufacturing operations*           $4.6    $6.0
                                                                ----    ----


     Diluted earnings (loss) per share from continuing
      operations as reported under GAAP                        $(.85)   $.11
     After-tax effects per diluted share of:
         Goodwill impairment relating to aluminum
          extrusions business                                    .90       -
         Loss associated with plant shutdowns, asset
          impairments and restructurings                         .03     .08
         (Gains) losses from sale of assets and other items      .06    (.02)
                                                                 ---    ----
     Diluted earnings per share from continuing
      manufacturing operations*                                 $.14    $.17
                                                                ----    ----

* The after-tax effects of unusual items, plant shutdowns, asset impairments and restructurings, and gains or losses from sale of assets and other items have been presented separately and removed from net income and earnings per share from continuing operations as reported under GAAP to determine Tredegar's presentation of income and earnings per share from continuing manufacturing operations. Income and earnings per share from continuing manufacturing operations are key financial and analytical measures used by Tredegar to gauge the operating performance of its continuing manufacturing businesses. They are not intended to represent the stand-alone results for Tredegar's continuing manufacturing businesses under GAAP and should not be considered as an alternative to net income or earnings per share as defined by GAAP. They exclude items that we believe do not relate to Tredegar's ongoing manufacturing operations.

John D. Gottwald, Tredegar's president and chief executive officer, said: "Obviously, the global economy is the dominant force affecting Tredegar's first quarter performance. The aluminum extrusion industry is in its third year of recession. Order rates deteriorated this winter with shipments down 37% versus the first quarter of 2008. We continue to look for signs of a bottom as we actively reduce costs. Unfortunately, we generated our first quarterly operating loss in the aluminum business since 1991."

"Similarly, our films business experienced a volume decline of 15% in the first quarter. This weakness was broad as demand weakened and inventories were adjusted in all segments. Operating profits before restructuring charges in films increased by $2.2 million in the first quarter of 2009 compared with the first quarter of 2008 primarily due to the benefit of the lag in the pass-through of lower average resin costs. Excluding resin lag, ongoing operating profit declined in films by $1.9 million due to lower sales volume and the unfavorable impact of currency rate changes, partially offset by cost reduction efforts. We continue to be very focused on reducing costs."

Mr. Gottwald concluded: "Despite the challenging business environment, our financial condition remains strong with cash in excess of debt of $43.7 million at March 31, 2009, an improvement from $23.3 million at December 31, 2008."

MANUFACTURING OPERATIONS

Film Products

First quarter net sales (sales less freight) in Film Products were $104.8 million, down 20.8% from $132.3 million in the first quarter of 2008, while operating profit from ongoing operations increased to $13.0 million in the first quarter of 2009 from $10.8 million in the prior year. Volume for the quarter was 49.3 million pounds, down 14.9% from 57.9 million pounds in the first quarter of 2008.

Net sales in the first quarter of 2009 declined due to lower volume across all market segments, most notably surface protection and personal care materials, and the unfavorable impact of changes in the U.S. dollar value of currencies for operations outside of the U.S. Volume declines are believed to be primarily driven by the economic downturn and customer inventory adjustments.

Operating profit from ongoing operations increased in the first quarter of 2009 compared with the first quarter of 2008 due primarily to the benefit of the lag in the pass-through of lower resin costs. Excluding resin lag, ongoing operating profit declined by $1.9 million due to lower sales volume and the unfavorable impact of currency rate changes, partially offset by cost reduction efforts. The company estimates that the impact of the lag in pass-through of average resin costs on operating profits from ongoing operations was a positive $2.9 million in the first quarter of 2009 and a negative $1.2 million in the first quarter of 2008. The company estimates that changes in the U.S. dollar value of currencies for operations outside of the U.S. had an unfavorable impact on operating profit of $650,000 in the first quarter of 2009 compared with the first quarter of 2008.

Capital expenditures in Film Products were $4.1 million in the first quarter of 2009 compared with $3.2 million in the first quarter of last year, and are projected to be approximately $20 million in 2009. Depreciation expense was $7.9 million in the first quarter of 2009 compared with $8.8 million in the first quarter of last year, and is projected to be approximately $32 million in 2009.

Aluminum Extrusions

First-quarter net sales from ongoing U.S. operations in Aluminum Extrusions were $45.1 million, down 50.5% from $91.1 million in the first quarter of 2008. Operating losses from ongoing U.S. operations for the quarter were $1.8 million, a $3.3 million decline from operating profit of $1.5 million reported in the first quarter of 2008. Volume decreased to 23.5 million pounds in the first quarter of 2009, down 36.8% from 37.1 million pounds in the first quarter of 2008.

The decrease in net sales and the reported operating loss from ongoing U.S. operations were primarily driven by lower volume in the first quarter of 2009 compared with the first quarter of last year. Net sales also declined from lower average selling prices driven by lower average aluminum costs. Extremely challenging market conditions led to shipment declines in all markets. Shipments for non-residential construction, which comprised approximately 72% of total volume in 2008, declined by approximately 32.6% during the first quarter of 2009 compared with the first quarter of 2008. Costs have been reduced as volume has declined. Total full-time employees in Aluminum Extrusions were 1,128 at December 31, 2007, 972 at December 31, 2008 and 861 at March 31, 2009.

The Company also recognized a charge in the first quarter of 2009 of $30.6 million ($30.6 million after tax) for the write-off of goodwill associated with Aluminum Extrusions. This non-cash charge, as computed under U.S. generally accepted accounting principles, resulted from the estimated adverse impact on the business unit's fair value of possible future losses and the uncertainty of the amount and timing of an economic recovery.

Capital expenditures for continuing operations in Aluminum Extrusions were $5.2 million in the first quarter of 2009 compared with $810,000 in the first quarter of last year. Capital expenditures are projected to be approximately $21 million in 2009, of which $16 million relates to the 18-month project to expand capacity in the plant in Carthage, Tennessee announced in January 2008. This new capacity will be dedicated to serving customers in the non-residential construction sector. Depreciation expense was $1.9 million in the first quarter of 2009 compared with $2.0 million in the first quarter of 2008, and is projected to be approximately $8.1 million in 2009.

OTHER ITEMS

Net pension income from continuing operations was $757,000 in the first quarter of 2009, an unfavorable change of $802,000 (one cent per share after taxes) from amounts recognized in the first quarter of 2008. The company contributed approximately $122,000 to its pension plans for continuing operations in 2008 and expects to contribute $4.4 million in 2009. During 2008, the fair value of the assets of our pension plans declined by approximately $89.6 million to $194.5 million at December 31, 2008, due mainly to the drop in global stock prices and benefit payments to retirees of $10.2 million.

Interest expense was $204,000 in the first quarter of 2009, a decrease from $881,000 in the first quarter of last year due to lower average debt levels and lower average interest rates.

The effective tax rate used to compute income taxes from continuing manufacturing operations was 39.7% in the first quarter of 2009 compared with 38.8% in the first quarter of 2008.

Overall results for continuing operations for the quarter include special items. After-tax charges for continuing operations for plant shutdowns, asset impairments and restructurings and gains and losses from the sale of assets and other items were 9 cents and 6 cents per share in the first quarters of 2009 and 2008, respectively. In addition, a non-cash goodwill impairment charge of $30.6 million (after-tax), or 90 cents per share, was recorded for Aluminum Extrusions in the first quarter of 2009. Further details regarding these items are provided in the financial tables included with this press release.

Tredegar's investment in Harbinger Capital Partners Special Situations Fund, L.P. had a reported capital account value of $10.0 million at March 31, 2009, compared with $10.1 million at December 31, 2008. This investment has a carrying value in Tredegar's balance sheet of $10.0 million, which represents the amount invested on April 2, 2007.

CAPITAL STRUCTURE AND ADJUSTED EBITDA

Net cash (cash and cash equivalents in excess of debt) was $43.7 million at March 31, 2009, compared with net cash of $23.3 million at December 31, 2008. Adjusted EBITDA from continuing manufacturing operations, a key valuation and borrowing capacity measure, was $93.8 million in the twelve months ended March 31, 2009, down from $100.3 million for the preceding twelve month period. See notes to financial statements and tables for reconciliations to comparable GAAP measures.

FORWARD-LOOKING AND CAUTIONARY STATEMENTS

Some of the information contained in this press release may constitute "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. When we use the words "believe," "estimate," "anticipate," "expect," "project," "likely," "may" and similar expressions, we do so to identify forward-looking statements. Such statements are based on our then current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. It is possible that our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause actual results to differ from expectations include, without limitation: Film Products is highly dependent on sales to one customer -- The Procter & Gamble Company; growth of Film Products depends on its ability to develop and deliver new products at competitive prices; sales volume and profitability of continuing operations in Aluminum Extrusions is cyclical and highly dependent on economic conditions of end-use markets in the U.S., particularly in the construction, distribution and transportation industries and are also subject to seasonal slowdowns; our substantial international operations subject us to risks of doing business in foreign countries, which could adversely affect our business, financial condition and results of operations; our future performance is influenced by costs incurred by our operating companies including, for example, the cost of energy and raw materials; and the other factors discussed in the reports Tredegar files with or furnishes to the Securities and Exchange Commission (the "SEC") from time-to-time, including the risks and important factors set forth in additional detail in "Risk Factors" in Part I, Item 1A of Tredegar's 2008 Annual Report on Form 10-K filed with the SEC. Readers are urged to review and consider carefully the disclosures Tredegar makes in its filings with the SEC.

Tredegar does not undertake to update any forward-looking statement made in this press release to reflect any change in management's expectations or any change in conditions, assumptions or circumstances on which such statements are based.

To the extent that the financial information portion of this release contains non-GAAP financial measures, it also presents both the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the difference between any such non-GAAP measures and such comparable GAAP financial measures. Accompanying the reconciliation is management's statement concerning the reasons why management believes that presentation of non-GAAP measures provides useful information to investors concerning Tredegar's financial condition and results of operations.

Based in Richmond, Va., Tredegar Corporation is a global manufacturer of plastic films and aluminum extrusions.






                         Tredegar Corporation
              Condensed Consolidated Statements of Income
                 (In Thousands, Except Per-Share Data)
                              (Unaudited)

                                               Three Months Ended
                                                    March 31
                                                    --------
                                                  2009      2008
                                                  ----      ----

    Sales                                      $153,066  $228,480
    Other income (expense), net  (a) (d)            869       557
                                                    ---       ---
                                                153,935   229,037
                                                -------   -------

    Cost of goods sold (a)                      125,258   194,239
    Freight                                       3,229     5,101
    Selling, R&D and general expenses            17,284    18,969
    Amortization of intangibles                      30        32
    Interest expense                                204       881
    Asset impairments and costs associated
     with exit and disposal activities (a)        1,631     3,940
    Goodwill impairment charge (b)               30,559         -
                                                 ------       ---
                                                178,195   223,162
                                                -------   -------

    Income (loss) from continuing operations
     before income taxes                        (24,260)    5,875
    Income taxes (e)                              4,557     2,090
                                                  -----     -----
    Income (loss) from continuing operations    (28,817)    3,785
    Loss from discontinued operations (f)             -      (723)
                                                    ---      ----

    Net income (loss) (a) (c)                  $(28,817)   $3,062
                                               --------    ------


    Earnings (loss) per share:
      Basic:
        Continuing operations                     $(.85)     $.11
        Discontinued operations                       -      (.02)
                                                    ---      ----
        Net income (loss)                         $(.85)     $.09
                                                  -----      ----
      Diluted:
        Continuing operations                     $(.85)     $.11
        Discontinued operations                       -      (.02)
                                                    ---      ----
        Net income (loss)                         $(.85)     $.09
                                                  -----      ----

    Shares used to compute earnings (loss)
     per share:
      Basic                                      33,866    34,467
      Diluted                                    33,866    34,682



                          Tredegar Corporation
                Net Sales and Operating Profit by Segment
                             (In Thousands)
                               (Unaudited)

                                                 Three Months Ended
                                                      March 31
                                                      --------
                                                    2009      2008
                                                    ----      ----
    Net Sales
    Film Products                                $104,783  $132,314
    Aluminum Extrusions                            45,054    91,065
                                                   ------    ------
    Total net sales                               149,837   223,379
    Add back freight                                3,229     5,101
                                                    -----     -----
    Sales as shown in the Consolidated
     Statements of Income                        $153,066  $228,480
                                                 --------  --------

    Operating Profit (Loss)
    Film Products:
      Ongoing operations                          $13,014   $10,786
      Plant shutdowns, asset impairments,
       restructurings and other (a)                  (809)   (3,705)

    Aluminum Extrusions (f):
      Ongoing operations                           (1,797)    1,542
      Goodwill impairment charge (b)              (30,559)        -
      Plant shutdowns, asset impairments,
       restructurings and other (a)                  (978)     (235)

    AFBS:
      Gain on sale investments in Theken Spine and
       Therics, LLC (d)                               150         -
                                                      ---       ---

    Total                                         (20,979)    8,388
    Interest income                                   259       258
    Interest expense                                  204       881
    Gain on the sale of corporate assets (e)          404         -
    Stock option-based compensation costs             262        60
    Corporate expenses, net (a)                     3,478     1,830
                                                    -----     -----
    Income (loss) before income taxes             (24,260)    5,875
    Income taxes (e)                                4,557     2,090
                                                    -----     -----
    Income (loss) from continuing operations      (28,817)    3,785
    Loss from discontinued operations (f)               -      (723)
                                                      ---      ----
    Net income (loss) (a) (c)                    $(28,817)   $3,062
                                                 --------    ------



                       Tredegar Corporation
               Condensed Consolidated Balance Sheets
                          (In Thousands)
                            (Unaudited)

                                         March 31, December 31,
                                             2009         2008
                                             ----         ----
    Assets

    Cash & cash equivalents               $53,281      $45,975
    Accounts & notes receivable, net       79,914       91,400
    Income taxes recoverable               10,943       12,549
    Inventories                            27,170       36,809
    Deferred income taxes                   5,681        7,654
    Prepaid expenses & other                3,236        5,374
                                            -----        -----
    Total current assets                  180,225      199,761

    Property, plant & equipment, net      231,788      236,870
    Other assets                           38,277       38,926
    Goodwill & other intangibles          103,945      135,075
                                          -------      -------
    Total assets                         $554,235     $610,632
                                         --------     --------

    Liabilities and Shareholders' Equity

    Accounts payable                      $44,084      $54,990
    Accrued expenses                       40,696       38,349
    Current portion of long-term debt         604          529
                                              ---          ---
    Total current liabilities              85,384       93,868

    Long-term debt                          8,963       22,173
    Deferred income taxes                  44,602       45,152
    Other noncurrent liabilities           27,675       29,023
    Shareholders' equity                  387,611      420,416

                                         --------     --------
    Total liabilities and
     shareholders' equity                $554,235     $610,632
                                         --------     --------



                             Tredegar Corporation
                Condensed Consolidated Statement of Cash Flows
                                (In Thousands)
                                 (Unaudited)

                                                       Three Months Ended
                                                            March 31
                                                            --------
                                                          2009     2008
                                                          ----     ----
    Cash flows from operating activities:
      Net income (loss)                                $(28,817)  $3,062
      Adjustments for noncash items:
        Depreciation                                      9,830   11,336
        Amortization of intangibles                          30       32
        Goodwill impairment charge                       30,559        -
        Deferred income taxes                             2,866    8,289
        Accrued pension income and postretirement
         benefits                                          (633)  (1,413)
        Loss on asset impairments and divestitures            -    2,327
        Gain on sale of assets                             (829)       -
      Changes in assets and liabilities, net of
       effects of acquisitions and divestitures:
        Accounts and notes receivables                    9,573  (22,066)
        Inventories                                       9,105   10,013
        Income taxes recoverable                          1,607  (13,841)
        Prepaid expenses and other                        2,046      421
        Accounts payable and accrued expenses            (3,640)   5,357
      Other, net                                          1,651    2,661
                                                          -----    -----
        Net cash provided by operating activities        33,348    6,178
                                                         ------    -----
    Cash flows from investing activities:
      Capital expenditures (including settlement of
       related accounts payable of $1,709 in 2009)      (11,014)  (4,052)
      Proceeds from the sale of the aluminum
       extrusions business in Canada (net of cash
       included in sale and transaction costs)                -   23,616
      Proceeds from the sale of assets and property
       disposals                                            918      248
      Investments in real estate                           (509)       -
                                                           ----      ---
        Net cash provided by (used in) investing
         activities                                     (10,605)  19,812
                                                        -------   ------
    Cash flows from financing activities:
      Dividends paid                                     (1,358)  (1,378)
      Debt principal payments                           (13,135) (38,158)
      Borrowings                                              -   13,000
      Repurchases of Tredegar common stock                    -   (7,283)
      Proceeds from exercise of stock options               112        -
                                                            ---      ---
        Net cash used in financing activities           (14,381) (33,819)
                                                        -------  -------
    Effect of exchange rate changes on cash              (1,056)   1,055
                                                         ------    -----
    Increase (decrease) in cash and cash equivalents      7,306   (6,774)
    Cash and cash equivalents at beginning of period     45,975   48,217
                                                         ------   ------
    Cash and cash equivalents at end of period          $53,281  $41,443
                                                        -------  -------



                            Selected Financial Measures
                                   (In Millions)
                                    (Unaudited)

                                                  For the Twelve Months
                                                  Ended  March 31, 2009
                                                  ----------------------
                                               Film       Aluminum
                                             Products    Extrusions    Total
                                            ----------  ------------  -------
    Operating profit from continuing
     ongoing operations                        $56.1          $6.8    $62.9
    Allocation of corporate overhead            (9.0)         (1.7)   (10.7)
    Add back depreciation and amortization
     from continuing operations                 33.7           7.9     41.6
                                                ----           ---     ----
    Adjusted EBITDA from continuing
     operations (g)                            $80.8         $13.0    $93.8
                                               -----         -----    -----

    Selected balance sheet and other data
     as of March 31, 2009:
      Net debt (cash) (h)                       $(43.7)
      Shares outstanding                          33.9


    Notes to the Financial Tables

    (a) Plant shutdowns, asset impairments, restructurings and other in the
        first quarter of 2009 include:

        - Pretax charges of $1.6 million for severance and other
          employee-related costs in connection with restructurings in Film
          Products ($1.1 million), Aluminum Extrusions ($369,000) and
          corporate headquarters ($178,000, included in "Corporate expenses,
          net" in the net sales and operating profit by segment table);

        - Pretax losses of $609,000 associated with Aluminum Extrusions for
          timing differences between the recognition of realized losses on
          aluminum futures contracts and related revenues from the delayed
          fulfillment by customers of fixed-price forward purchase
          commitments (included in "Cost of goods sold" in the condensed
          consolidated statements of income); and

        - Pretax gain of $275,000 on the sale of equipment (included in
          "Other income (expense) net in the condensed consolidated
          statements of income) from a previously shutdown films
          manufacturing facility in LaGrange, Georgia.

    Plant shutdowns, asset impairments, restructurings and other in the
    first quarter of 2008 include:

        - Pretax charges of $2.3 million for severance and other
          employee-related costs in connection with restructurings in
          Film Products ($2.1 million) and Aluminum Extrusions ($235,000);
          and

        - Pretax charges of $1.6 million for asset impairments in Film
          Products.

    (b) Goodwill impairment charge of $30.6 million ($30.6 million after
        taxes) was recognized in Aluminum Extrusions in the first quarter of
        2009 upon completion of an impairment analysis performed as of March
        31, 2009.  This non-cash charge, as computed under U.S. generally
        accepted accounting principles, resulted from the estimated adverse
        impact on the business unit's fair value of possible future losses
        and the uncertainty of the amount and timing of an economic recovery.

    (c) Comprehensive income (loss), defined as net income and other
        comprehensive income (loss), was a loss of $31.8 million in the first
        quarter of 2009 and income of $1.1 million for the first quarter
        2008.  Other comprehensive income (loss) includes changes in foreign
        currency translation adjustments, unrealized gains and losses on
        derivative financial instruments and prior service cost and net gains
        or losses from pension and other postretirement benefit plans arising
        during the period and the related amortization of these prior service
        cost and net gains or losses recorded net of deferred taxes directly
        in shareholders' equity.

    (d) Gain on the sale of investments in Theken Spine and Therics, LLC
        includes a post-closing contractual adjustment of $150,000 (included
        in "Other income (expense), net" in the condensed consolidated
        statements of income).  Closing on sale of these investments occurred
        in 2008.  AFBS (formerly Therics, Inc.) received these investments in
        2005, when substantially all of the assets of AFBS, Inc., a wholly-
        owned subsidiary of Tredegar, were sold or assigned to a newly-created
        limited liability company, Therics, LLC, controlled and managed by an
        individual not affiliated with Tredegar.

    (e) Gain on sale of corporate assets in the first quarter of 2009 includes
        a realized gain on the sale of corporate real estate ($404,000).  This
        gain is included in "Other income (expense), net" in the condensed
        consolidated statement of income.

        Income taxes for the first quarter of 2009 include the recognition of
        a valuation allowance of $1.9 million related to expected limitations
        on the utilization of assumed capital losses on certain investments.

    (f) On February 12, 2008, Tredegar sold its aluminum extrusions business
        in Canada for a purchase price of approximately $25 million to an
        affiliate of H.I.G. Capital.  The purchase price was subject to
        adjustment based upon the actual working capital of the business at
        the time of sale.  All historical results for this business have been
        reflected as discontinued operations in the accompanying financial
        tables. The components of income (loss) from discontinued operations
        are presented below:


                                                     Three Months Ended
    (In thousands)                                        March 31
                                                     ------------------
                                                        2009     2008
                                                     -------   --------
    Income (loss) from operations before income taxes    $-     $(391)
    Income tax cost (benefit) on operations               -       (98)
                                                     -------   --------
                                                          -      (293)
                                                     -------   --------
    Loss associated with asset impairments and
     disposal activities                                  -    (1,130)
    Income tax cost (benefit) on asset impairments
     and costs associated disposal activities             -      (700)
                                                     -------   --------
                                                          -      (430)
                                                     -------   --------
    Income (loss) from discontinued operations           $-     $(723)
                                                     -------   --------


    (g) Adjusted EBITDA for the twelve months ended March 31, 2009,
        represents income from continuing operations before interest, taxes,
        depreciation, amortization, unusual items and losses associated with
        plant shutdowns, asset impairments and restructurings, gains from the
        sale of assets, investment write-downs and write-ups, charges related
        to stock option awards accounted for under the fair value-based method
        and other items.  Adjusted EBITDA is not intended to represent cash
        flow from operations as defined by GAAP and should not be considered
        as either an alternative to net income (as an indicator of operating
        performance) or to cash flow (as a measure of liquidity). Tredegar
        uses Adjusted EBITDA as a measure of unlevered (debt-free) operating
        cash flow.  We also use it when comparing relative enterprise values
        of manufacturing companies and when measuring debt capacity.  When
        comparing the valuations of a peer group of manufacturing companies,
        we express enterprise value as a multiple of Adjusted EBITDA.  We
        believe Adjusted EBITDA is preferable to operating profit and other
        GAAP measures when applying a comparable multiple approach to
        enterprise valuation because it excludes the items noted above,
        measures of which may vary among peer companies.

    (h) Net debt is calculated as follows (in millions):
          Debt                                  $9.6
          Less:  Cash and cash equivalents     (53.3)
          Net debt (cash)                     $(43.7)

        Net debt or cash is not intended to represent debt or cash as defined
        by GAAP.  Net debt or cash is utilized by management in evaluating the
        company's financial leverage and equity valuation, and the company
        believes that investors also may find net debt or cash to be helpful
        for the same purposes.

 

SOURCE  Tredegar Corporation

CONTACT:  D. Andrew Edwards,
 +1-804-330-1041, 
Fax: +1-804-330-1777,

daedward@tredegar.com/


 

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