News Release
Management to Host Webcast Today at
-
Net income from continuing operations was
$35.9 million , or$1.10 per share in 2013; net income from ongoing operations (which excludes special items) was$37.3 million , or$1.15 per share -
Total sales for 2013 increased to
$959 million versus$882 million in the prior year -
Operating profit from ongoing operations in 2013 versus 2012
increased by
$1.0 million and$9.3 million for Film Products and Bonnell Aluminum, respectively
Fourth Quarter Financial Results Highlights
-
Net income from continuing operations was
$9.4 million , or29 cents per share. -
Net income from ongoing operations, which excludes special items, was
$8.8 million , or27 cents per share. -
Bonnell Aluminum’s operating profit from ongoing operations increased
to
$5.9 million in the quarter, up$4.3 million from the same period of 2012. -
Film Products’ operating profit from ongoing operations was
$15.6 million in the quarter, compared to$20.0 million in the same period of 2012.
Full Year 2013 Financial Results Highlights
-
Net income from continuing operations was
$35.9 million , or$1.10 per share. -
Net income from ongoing operations, which excludes special items, was
$37.3 million , or$1.15 per share. -
Cash flows from operating activities of
$77 million funded investments for long-term growth. -
Bonnell Aluminum’s operating profit from ongoing operations increased
to
$18.3 million in 2013, up$9.3 million versus 2012. -
Film Products’ operating profit from ongoing operations was
$71.0 million in 2013, compared to$70.0 million in 2012.
Further details regarding the special items that reconcile operating profit from ongoing operations and income from ongoing operations to net income from continuing operations are provided in the financial tables to this press release.
“While we expect market dynamics to remain challenging in the first half of 2014,” Taylor said, “we have market-leading products and innovative solutions that continue to attract customers. We believe we can achieve sales and volume improvements for the year even after a soft start.”
Ms. Taylor continued, “With respect to Bonnell Aluminum, we had a strong
finish to the year, with significant growth in profitability, as we
successfully executed on several strategic initiatives, including the
acquisition of
Ms. Taylor added, “Our Film Products division grew full year 2013
operating profit from ongoing operations by 1.5% compared to 2012,
partially driven by the volume rebound we saw in surface protection
films and personal care materials. That rebound was muted by challenges
in flexible packaging films, which continued to face difficult market
dynamics and production shortfalls in
OPERATIONS REVIEW
Film Products
A summary of fourth quarter and full year operating results from ongoing operations for Film Products is provided below:
Quarter Ended | Favorable/ | Year Ended | Favorable/ | ||||||||||||||||
(In Thousands, | December 31 | (Unfavorable) | December 31 | (Unfavorable) | |||||||||||||||
Except Percentages) | 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||
Sales volume (pounds) | 64,165 | 67,187 | (4.5 | ) | % | 270,463 | 270,265 | 0.1 | % | ||||||||||
Net sales | $ | 151,401 | $ | 152,656 | (0.8 | ) | % | $ | 621,239 | $ | 611,877 | 1.5 | % | ||||||
Operating profit from ongoing operations |
$ | 15,615 | $ | 19,951 | (21.7 | ) | % | $ | 70,966 | $ | 69,950 | 1.5 | % | ||||||
Fourth Quarter Results Versus Prior Year Fourth Quarter
Net sales (sales less freight) in the fourth quarter of 2013 decreased
in comparison to the same period in the prior year, primarily due to
lower volumes in flexible packaging films, partially offset by improved
volume in personal care materials and the favorable impact on average
selling prices of the contractual pass-through of average resin costs.
Lower sales volumes in flexible packaging films had an unfavorable
impact of approximately
Operating profit from ongoing operations in the fourth quarter of 2013
decreased in comparison to the fourth quarter of 2012. Lower sales
volumes in flexible packaging films due to production shortfalls at our
manufacturing facility in
The change in the dollar value of currencies for operations outside the
U.S. had a favorable impact of approximately
2013 Versus 2012
Net sales in 2013 increased in comparison to 2012, primarily due to
higher volumes, improved product mix and a favorable change in the U.S.
dollar value of currencies for operations outside the U.S., partially
offset by the negative impact of lower average selling prices. Higher
sales volumes and improved product mix in Film Products had a favorable
impact of approximately
Operating profit from ongoing operations in 2013 increased compared to
2012. Higher sales volumes and a more favorable product mix in surface
protection films and personal care materials, partially offset by the
negative impact from lower volumes in flexible packaging films, had a
favorable impact of approximately
The change in the dollar value of currencies for operations outside the
U.S. had a favorable impact of approximately
Capital expenditures in Film Products were
Aluminum Extrusions
A summary of fourth quarter and full year results from ongoing operations for Aluminum Extrusions, which is also referred to as Bonnell Aluminum, is provided below:
Quarter Ended | Favorable/ | Year Ended | Favorable/ | |||||||||||||||
(In Thousands, | December 31 | (Unfavorable) | December 31 | (Unfavorable) | ||||||||||||||
Except Percentages) | 2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||
Sales volume (pounds) | 34,834 | 33,701 | 3.4 | % | 143,684 | 114,845 | 25.1 | % | ||||||||||
Net sales | $ | 73,189 | $ | 72,940 | 0.3 | % | $ | 309,482 | $ | 245,465 | 26.1 | % | ||||||
Operating profit from ongoing operations |
$ | 5,940 | $ | 1,688 | 251.9 | % | $ | 18,291 | $ | 9,037 | 102.4 | % | ||||||
Fourth Quarter Results Versus Prior Year Fourth Quarter
Net sales in the fourth quarter of 2013 increased slightly in comparison to the fourth quarter of 2012 due to improved volume, partially offset by lower average prices driven by a reduction in aluminum prices.
Operating profit from ongoing operations increased by
2013 Versus 2012
Net sales in 2013 increased in comparison to the prior year, primarily
due to the addition of AACOA in the fourth quarter of 2012. Net sales
associated with AACOA were
Operating profit from ongoing operations increased in 2013, primarily as
a result of the addition of AACOA and cost savings associated with the
2012 shutdown of our
Capital expenditures for Bonnell Aluminum were
Corporate Expenses, Interest and Taxes
Pension expense was
Interest expense, which includes the amortization of debt issue costs,
was
The effective tax rate used to compute income taxes from continuing
operations was 32.1% in 2013 compared to 29.8% in 2012. The effective
rate used to compute income taxes from continuing operations increased
in 2013 compared to 2012 primarily due to a reduction in the benefit
from foreign tax incentives. A reconciliation of significant differences
between the estimated effective tax rate for continuing operations and
the U.S. federal statutory rate for 2013 and 2012 will be provided in
our Annual Report on Form 10-K for the year ended
CAPITAL STRUCTURE
Net debt (debt in excess of cash and cash equivalents) was
INVESTOR WEBCAST
In connection with today’s earnings announcement, the Company will host
a webcast on
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 or implied by these forward-looking statements.
Accordingly, you should not place undue reliance on these
forward-looking statements. Factors that could cause actual results to
differ from expectations include, without limitation: acquired
businesses, including
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.
Reconciliations of non-GAAP financial measures are provided in the Notes
to the Financial Tables included with this press release and can also be
found within Presentations in the Investors section of our website, www.tredegar.com.
Tredegar Corporation | |||||||||||||||
Condensed Consolidated Statements of Income | |||||||||||||||
(In Thousands, Except Per-Share Data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||
December 31 | December 31 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales | $ | 231,096 | $ | 233,038 | $ | 959,346 | $ | 882,188 | |||||||
Other income (expense), net (b) (e) (f) (g) | 3,335 | 10,049 | 1,776 | 18,119 | |||||||||||
234,431 | 243,087 | 961,122 | 900,307 | ||||||||||||
Cost of goods sold (b) (j) | 190,173 | 187,886 | 784,675 | 712,660 | |||||||||||
Freight | 6,506 | 7,442 | 28,625 | 24,846 | |||||||||||
Selling, R&D and general expenses (b) | 20,718 | 22,420 | 83,864 | 86,879 | |||||||||||
Amortization of intangibles | 1,511 | 1,759 | 6,744 | 5,806 | |||||||||||
Interest expense | 738 | 858 | 2,870 | 3,590 | |||||||||||
Asset impairments and costs associated with exit and disposal activities (b) |
573 | 1,871 | 1,412 | 5,022 | |||||||||||
220,219 | 222,236 | 908,190 | 838,803 | ||||||||||||
Income from continuing operations before income taxes |
14,212 | 20,851 | 52,932 | 61,504 | |||||||||||
Income taxes from continuing operations (h) | 4,810 | 7,001 | 16,995 | 18,319 | |||||||||||
Income from continuing operations | 9,402 | 13,850 | 35,937 | 43,185 | |||||||||||
Loss from discontinued operations (c) | - | (3,377 | ) | (13,990 | ) | (14,934 | ) | ||||||||
Net income (b) (d) | $ | 9,402 | $ | 10,473 | $ | 21,947 | $ | 28,251 | |||||||
Earnings (loss) per share: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | .29 | $ | .43 | $ | 1.12 | $ | 1.35 | |||||||
Discontinued operations (c) | - | (.10 | ) | (.44 | ) | (.47 | ) | ||||||||
Net income | $ | .29 | $ | .33 | $ | .68 | $ | .88 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | .29 | $ | .43 | $ | 1.10 | $ | 1.34 | |||||||
Discontinued operations (c) | - | (.10 | ) | (.43 | ) | (.46 | ) | ||||||||
Net income | $ | .29 | $ | .33 | $ | .67 | $ | .88 | |||||||
Shares used to compute earnings (loss) per share: | |||||||||||||||
Basic | 32,222 | 32,016 | 32,172 | 32,032 | |||||||||||
Diluted | 32,622 | 32,176 | 32,599 | 32,193 | |||||||||||
Tredegar Corporation | ||||||||||||||||
Net Sales and Operating Profit by Segment | ||||||||||||||||
(In Thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31 | December 31 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Sales | ||||||||||||||||
Film Products | $ | 151,401 | $ | 152,656 | $ | 621,239 | $ | 611,877 | ||||||||
Aluminum Extrusions | 73,189 | 72,940 | 309,482 | 245,465 | ||||||||||||
Total net sales | 224,590 | 225,596 | 930,721 | 857,342 | ||||||||||||
Add back freight | 6,506 | 7,442 | 28,625 | 24,846 | ||||||||||||
Sales as shown in the Consolidated | ||||||||||||||||
Statements of Income | $ | 231,096 | $ | 233,038 | $ | 959,346 | $ | 882,188 | ||||||||
Operating Profit | ||||||||||||||||
Film Products: | ||||||||||||||||
Ongoing operations | $ | 15,615 | $ | 19,951 | $ | 70,966 | $ | 69,950 | ||||||||
Plant shutdowns, asset impairments, restructurings and other (b) |
(307 | ) | 1,770 | (671 | ) | (109 | ) | |||||||||
Aluminum Extrusions: | ||||||||||||||||
Ongoing operations | 5,940 | 1,688 | 18,291 | 9,037 | ||||||||||||
Plant shutdowns, asset impairments, restructurings and other (b) |
(1,790 | ) | (2,213 | ) | (2,748 | ) | (5,427 | ) | ||||||||
Total | 19,458 | 21,196 | 85,838 | 73,451 | ||||||||||||
Interest income | 287 | 81 | 594 | 418 | ||||||||||||
Interest expense | 738 | 858 | 2,870 | 3,590 | ||||||||||||
Gain (loss) on investment accounted for under fair value method (e) |
3,300 | 7,100 | 3,400 | 16,100 | ||||||||||||
Unrealized loss on investment property (f) | - | - | 1,018 | - | ||||||||||||
Stock option-based compensation costs | 296 | 285 | 1,155 | 1,432 | ||||||||||||
Corporate expenses, net (g) | 7,799 | 6,383 | 31,857 | 23,443 | ||||||||||||
Income from continuing operations before income taxes | 14,212 | 20,851 | 52,932 | 61,504 | ||||||||||||
Income taxes from continuing operations (h) | 4,810 | 7,001 | 16,995 | 18,319 | ||||||||||||
Income from continuing operations | 9,402 | 13,850 | 35,937 | 43,185 | ||||||||||||
Loss from discontinued operations (c) | - | (3,377 | ) | (13,990 | ) | (14,934 | ) | |||||||||
Net income (b) (d) | $ | 9,402 | $ | 10,473 | $ | 21,947 | $ | 28,251 | ||||||||
Tredegar Corporation | ||||||
Condensed Consolidated Balance Sheets | ||||||
(In Thousands) | ||||||
(Unaudited) | ||||||
December 31 |
December 31 |
|||||
2013 | 2012 | |||||
Assets | ||||||
Cash & cash equivalents | $ | 52,617 | $ | 48,822 | ||
Accounts & other receivables, net | 99,246 | 100,798 | ||||
Income taxes recoverable | - | 2,886 | ||||
Inventories | 70,663 | 74,670 | ||||
Deferred income taxes | 5,628 | 5,614 | ||||
Prepaid expenses & other | 6,353 | 6,780 | ||||
Total current assets | 234,507 | 239,570 | ||||
Property, plant & equipment, net | 282,560 | 253,417 | ||||
Goodwill & other intangibles, net | 226,300 | 240,619 | ||||
Other assets | 49,641 | 49,559 | ||||
Total assets | $ | 793,008 | $ | 783,165 | ||
Liabilities and Shareholders' Equity | ||||||
Accounts payable | $ | 82,795 | $ | 82,067 | ||
Accrued expenses | 42,158 | 42,514 | ||||
Income taxes payable | 114 | - | ||||
Total current liabilities | 125,067 | 124,581 | ||||
Long-term debt | 139,000 | 128,000 | ||||
Deferred income taxes | 70,795 | 60,773 | ||||
Other noncurrent liabilities | 55,482 | 97,559 | ||||
Shareholders' equity | 402,664 | 372,252 | ||||
Total liabilities and shareholders' equity | $ | 793,008 | $ | 783,165 | ||
Tredegar Corporation | ||||||||
Condensed Consolidated Statement of Cash Flows | ||||||||
(In Thousands) | ||||||||
(Unaudited) | ||||||||
Year Ended | ||||||||
December 31 | ||||||||
2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 21,947 | $ | 28,251 | ||||
Adjustments for noncash items: | ||||||||
Depreciation | 37,911 | 43,463 | ||||||
Amortization of intangibles | 6,744 | 5,806 | ||||||
Deferred income taxes | (5,268 | ) | (762 | ) | ||||
Accrued pension income and postretirement benefits | 13,911 | 8,311 | ||||||
Gain on investment accounted for under the fair value method | (3,400 | ) | (16,100 | ) | ||||
Loss on asset impairments and divestitures | 1,639 | 2,185 | ||||||
Gain on sale of assets | - | 1,219 | ||||||
Changes in assets and liabilities, net of effects of acquisitions and divestitures: |
||||||||
Accounts and other receivables | (1,763 | ) | 9,454 | |||||
Inventories | 1,727 | (9,913 | ) | |||||
Income taxes recoverable/payable | 3,063 | 3,193 | ||||||
Prepaid expenses and other | (651 | ) | 1,883 | |||||
Accounts payable and accrued expenses | 3,043 | 9,105 | ||||||
Other, net | (2,188 | ) | (3,509 | ) | ||||
Net cash provided by operating activities | 76,715 | 82,586 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (79,661 | ) | (33,252 | ) | ||||
Acquisition | 561 | (57,936 | ) | |||||
Sale of business | 306 | 12,071 | ||||||
Proceeds from the sale of assets and other | 1,190 | 3,557 | ||||||
Net cash used in investing activities | (77,604 | ) | (75,560 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings | 87,000 | 93,250 | ||||||
Debt principal payments and financing costs | (76,000 | ) | (91,604 | ) | ||||
Dividends paid | (9,040 | ) | (30,782 | ) | ||||
Proceeds from exercise of stock options and other | 3,317 | 2,400 | ||||||
Net cash provided by (used in) financing activities | 5,277 | (26,736 | ) | |||||
Effect of exchange rate changes on cash | (593 | ) | (407 | ) | ||||
Increase (decrease) in cash and cash equivalents | 3,795 | (20,117 | ) | |||||
Cash and cash equivalents at beginning of period | 48,822 | 68,939 | ||||||
Cash and cash equivalents at end of period | $ | 52,617 | $ | 48,822 | ||||
Notes to Financial Tables |
(In Millions, except per share data) |
(Unaudited) |
(a) Tredegar's presentation of net income and earnings per share from ongoing operations are non-GAAP financial measures that exclude the after-tax effects of gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from sale of assets and other items, goodwill impairment charges and operating results and gains or losses on sale for businesses divested that are included in discontinued operations, which have been presented separately and removed from net income (loss) and diluted earnings (loss) per share as reported under GAAP. Net income and earnings per share from ongoing operations are used by management to gauge the operating performance of Tredegar's ongoing operations. They are not intended to represent the stand-alone results for Tredegar’s ongoing operations under GAAP and should not be considered as an alternative to net income (loss) or earnings (loss) per share from continuing operations as defined by GAAP. They exclude items that we believe do not relate to Tredegar's ongoing operations. A reconciliation is shown below: |
Three Months Ended | Year Ended | ||||||||||||||
December 31 | December 31 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income from continuing operations as reported under generally accepted accounting principles (GAAP) |
$ | 9.4 | $ | 13.9 | $ | 35.9 | $ | 43.2 | |||||||
After-tax effects of: | |||||||||||||||
(Gains) losses associated with plant shutdowns, asset impairments and restructurings |
.4 | .9 | .9 | 3.2 | |||||||||||
(Gains) losses from sale of assets and other | (1.0 | ) | (5.1 | ) | .5 | (7.9 | ) | ||||||||
Net income from ongoing operations | $ | 8.8 | $ | 9.7 | $ | 37.3 | $ | 38.5 | |||||||
Earnings per share from continuing operations as reported under GAAP (diluted) |
$ | .29 | $ | .43 | $ | 1.10 | $ | 1.34 | |||||||
After-tax effects per diluted share of: | |||||||||||||||
(Gains) losses associated with plant shutdowns, asset impairments and restructurings |
.01 | .03 | .03 | .10 | |||||||||||
(Gains) losses from sale of assets and other | (.03 | ) | (.16 | ) | .02 | (.24 | ) | ||||||||
Earnings per share from ongoing operations (diluted) |
$ | .27 | $ | .30 | $ | 1.15 | $ | 1.20 | |||||||
(b) Plant shutdowns, asset impairments, restructurings and other in the fourth quarter of 2013 include:
-
Pretax charge of
$1.5 million related to expected future environmental costs at our aluminum extrusions manufacturing facility inNewnan, Georgia (included in “Cost of goods sold” in the consolidated statements of income); -
Pretax charge of
$0.3 million associated with the shutdown of the film products manufacturing facility inRed Springs, North Carolina , which includes asset impairment charges of$0.2 million and severance and other employee-related costs of$0.1 million ; and -
Pretax charges of
$0.3 million for severance and other employee-related costs in connection with restructurings in Aluminum Extrusions.
Plant shutdowns, asset impairments, restructurings and other in 2013 include:
-
Pretax charges of
$1.7 million related to expected future environmental costs at our aluminum extrusions manufacturing facility inNewnan, Georgia (included in “Cost of goods sold” in the consolidated statements of income); -
Net pretax charges of
$0.6 million associated with the shutdown of the aluminum extrusions manufacturing facility inKentland, Indiana ; -
Pretax charge of
$0.5 million associated with the shutdown of the film products manufacturing facility inRed Springs, North Carolina , which includes severance and other employee-related costs of$0.3 million and asset impairment charges of$0.2 million ; -
Pretax charges of
$0.4 million for severance and other employee-related costs in connection with restructurings in Aluminum Extrusions ($0.3 million ) and Film Products ($0.1 million ); -
Pretax charges of
$0.2 million for integration-related expenses and other non-recurring transactions (included in "Selling, R&D and general expenses" in the condensed consolidated statements of income) associated with the acquisition of AACOA by Aluminum Extrusions; and -
Pretax loss of
$0.1 million related to the sale of previously impaired machinery and equipment at our film products manufacturing facility inShanghai, China (included in “Other income (expense), net” in the consolidated statements of income).
Plant shutdowns, asset impairments, restructurings and other in the fourth quarter of 2012 include:
-
A net pretax gain of
$1.3 million in Film Products (included in "Other income (expenses), net" in the condensed consolidated statements of income) associated with an insurance recovery on idle equipment that was destroyed in a fire at an outside warehouse; -
Pretax gain of
$1.1 million (included in "Other income (expenses), net" in the condensed consolidated statements of net income) on the sale of a previously shutdown film products manufacturing facility inLaGrange, Georgia ; -
Net pretax charge of
$0.9 million associated with the shutdown of the aluminum extrusions manufacturing facility inKentland, Indiana , which includes shutdown-related charges of$1.4 million , partially offset by gains on the sale of equipment of$0.5 million (included in "Other income (expense), net" in the condensed consolidated statement of income); -
Pretax charges of
$0.9 million for acquisition-related expenses (included in "Selling, R&D and general expenses" in the condensed consolidated statements of income) associated with the acquisition of AACOA by Aluminum Extrusions; -
Pretax charges of
$0.2 million for asset impairments in Film Products; -
Pretax charges of
$0.2 million for severance and other employee-related costs in connection with restructurings in Film Products; -
Pretax charges of
$0.2 million for integration-related expenses and other non-recurring transactions (included in "Selling, R&D and general expenses" in the condensed consolidated statements of income) associated with the acquisition of AACOA by Aluminum Extrusions; -
Pretax charges of
$0.1 million associated with purchase accounting adjustments made to the value of inventory sold by Aluminum Extrusions after its acquisition of AACOA (included in "Cost of goods sold" in the condensed consolidated statements of income, see note (j) below for further detail); -
Pretax charges of
$0.1 million for integration-related expenses and other non-recurring transactions (included in "Selling, R&D and general expenses" in the condensed consolidated statements of income) associated with the acquisition of Terphane by Film Products; and -
A pretax charge of
$0.1 million related to expected future environmental costs at our aluminum extrusions manufacturing facility inNewnan, Georgia (included in "Cost of goods sold" in the condensed consolidated statement of income).
Plant shutdowns, asset impairments, restructurings and other in 2012 include:
-
Net pretax charge of
$3.6 million associated with the shutdown of the aluminum extrusions manufacturing facility inKentland, Indiana , which includes accelerated depreciation for property and equipment of$2.4 million (included in "Cost of goods sold" in the condensed consolidated statements of income), severance and other employee-related costs of$1.2 million and other shutdown-related charges of$2.3 million , partially offset by adjustments to inventories accounted for under the last-in, first-out method of$1.5 million (included in "Cost of goods sold" in the condensed consolidated statements of income) and gains on the sale of equipment of$0.8 million (included in "Other income (expense), net" in the condensed consolidated statement of income); -
A net pretax gain of
$1.3 million in Film Products (included in "Other income (expenses), net" in the condensed consolidated statements of income) associated with an insurance recovery on idle equipment that was destroyed in a fire at an outside warehouse; -
Pretax charges of
$1.3 million for acquisition-related expenses (included in "Selling, R&D and general expenses" in the condensed consolidated statements of income) associated with the acquisition of AACOA by Aluminum Extrusions; -
Pretax charges of
$1.1 million for integration-related expenses and other non-recurring transactions (included in "Selling, R&D and general expenses" in the condensed consolidated statements of income) associated with the acquisition of Terphane by Film Products; -
Pretax gain of
$1.1 million (included in "Other income (expenses), net" in the condensed consolidated statements of income) on the sale of a previously shutdown film products manufacturing facility inLaGrange, Georgia ; -
Pretax loss of
$0.8 million for asset impairments associated with a previously shutdown film products manufacturing facility inLaGrange, Georgia ; -
Pretax charges of
$0.5 million for severance and other employee-related costs in connection with restructurings in Film Products ($0.3 million ) and Aluminum Extrusions ($0.2 million ); -
Pretax charges of
$0.2 million for asset impairments in Film Products; -
Pretax charges of
$0.2 million for integration-related expenses and other non-recurring transactions (included in "Selling, R&D and general expenses" in the condensed consolidated statements of income) associated with the acquisition of AACOA by Aluminum Extrusions; -
Pretax charges of
$0.1 million associated with purchase accounting adjustments made to the value of inventory sold by Aluminum Extrusions after its acquisition of AACOA (included in "Cost of goods sold" in the condensed consolidated statements of income, see note (j) below for further detail); and -
A pretax charge of
$0.1 million related to expected future environmental costs at our aluminum extrusions manufacturing facility inNewnan, Georgia (included in "Cost of goods sold" in the condensed consolidated statement of income).
(c) On November 20, 2012, Tredegar sold its mitigation banking business,
On
(d) Comprehensive income (loss), defined as net income (loss) and other
comprehensive income (loss), was income of
(e) The unrealized gain on our investment in kaleo, Inc. (“kaléo”),
formerly known as
(f) An unrealized loss on our investment property in
(g) A pretax charge of
(h) Income taxes include the recognition of an additional valuation
allowance of
(i) Net debt is calculated as follows: |
||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Debt | $ | 139.0 | $ | 128.0 | ||||
Less: Cash and cash equivalents | (52.6 | ) | (48.8 | ) | ||||
Net debt | $ | 86.4 | $ | 79.2 | ||||
Net debt is not intended to represent total debt as defined by GAAP. Net debt is utilized by management in evaluating the company's financial leverage and equity valuation, and management believes that investors also may find net debt to be helpful for the same purposes.
(j) Business combination accounting principles under U.S. GAAP require that we adjust the inventory acquired in the acquisitions of AACOA to fair value at the date of acquisition. In particular, finished goods inventory acquired was adjusted to reflect the cost of manufacturing plus a portion of the expected profit margin. The acquired inventory was sold in the fourth quarters of 2012. We believe that the adjustment included in “Cost of goods sold” in the fourth quarters of 2012 should be removed by investors as a means to determine profit and margins from ongoing operations, which reflect the operating trends of the acquired business.
Source:
Tredegar Corporation
Neill Bellamy, 804-330-1211
Fax:
804-330-1777
neill.bellamy@tredegar.com