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Tredegar Reports Fourth Quarter and Full Year 2019 Results

March 16, 2020 at 8:41 AM EDT

RICHMOND, Va.--(BUSINESS WIRE)-- Tredegar Corporation (NYSE:TG, also the “Company” or “Tredegar”) today reported fourth quarter and full year financial results for the period ended December 31, 2019.

Fourth quarter 2019 net loss was $3.1 million ($0.09 per share) compared with net income of $26.2 million ($0.79 per share) in the fourth quarter of 2018. Net income from ongoing operations, which excludes special items, was $7.2 million ($0.22 per share) in the fourth quarter of 2019 and $14.2 million ($0.43 per share) in the fourth quarter of 2018. Full year 2019 net income was $48.3 million ($1.45 per share) compared with net income of $24.8 million ($0.75 per share) in 2018. Net income from ongoing operations, which excludes special items, was $37.6 million ($1.13 per share) in 2019 and $47.3 million ($1.43 per share) in 2018. A reconciliation of net income (loss), a financial measure calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), to net income from ongoing operations, a non-GAAP financial measure, for the three and twelve months ended December 31, 2019 and 2018, is provided in Note (a) of the Notes to the Financial Tables in this press release.

Fourth Quarter Financial Results Highlights

  • Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from ongoing operations for Aluminum Extrusions of $14.5 million was $3.4 million lower than the fourth quarter of 2018
  • EBITDA from ongoing operations for PE Films of $9.5 million was $3.5 million lower than the fourth quarter of 2018
  • EBITDA from ongoing operations for Flexible Packaging Films of $4.3 million was $0.7 million higher than the fourth quarter of 2018

John Steitz, Tredegar’s president and chief executive officer, said, “Bonnell Aluminum’s full year operating results in 2019 beat 2018 despite softness in its markets. Delivering value to customers and managing operations and costs to levels consistent with sales continue to be priorities. Our Surface Protection component of PE Films achieved record profit in 2019 with the continued delay of a possible customer product transition, obtaining new business and cost improvements.”

Mr. Steitz continued, “Our Personal Care component of PE Films in 2019 mostly mitigated the adverse impact of missed sales and margin goals with cost reduction efforts. The Personal Care team continues to be focused on business development activities. In this regard, they recently completed a contract extension with a key customer for sales through at least 2022 that we previously thought might be lost in 2020. Terphane’s turnaround, which began in 2018, continued into 2019. We look forward to further improvements at Terphane.”

Mr. Steitz further stated, “Tredegar’s overall cash generation in 2019 was truly exceptional with debt net of cash declining by $57 million.”

OPERATIONS REVIEW

Aluminum Extrusions

Aluminum Extrusions, which is also referred to as Bonnell Aluminum, produces high-quality, soft-alloy and medium-strength aluminum extrusions primarily for the following markets: building and construction, automotive, and specialty (which consists of consumer durables, machinery and equipment, electrical and distribution end-use products). A summary of fourth quarter and full year results for Aluminum Extrusions is provided below:

 

 

Three Months Ended

 

Favorable/

 

Year Ended

 

Favorable/

 

December 31,

 

(Unfavorable)

 

December 31,

 

(Unfavorable)

(In thousands, except percentages)

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Sales volume (lbs)

 

50,102

 

 

60,674

 

 

(17.4)%

 

208,249

 

 

223,866

 

 

(7.0)%

Net sales

 

$

124,292

 

 

$

152,672

 

 

(18.6)%

 

$

529,602

 

 

$

573,126

 

 

(7.6)%

Ongoing operations:

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

14,452

 

 

$

17,830

 

 

(18.9)%

 

$

65,683

 

 

$

65,479

 

 

0.3%

Depreciation & amortization*

 

(4,238

)

 

(4,303

)

 

1.5%

 

(16,719

)

 

(16,866

)

 

0.9%

EBIT**

 

$

10,214

 

 

$

13,527

 

 

(24.5)%

 

$

48,964

 

 

$

48,613

 

 

0.7%

Capital expenditures

 

$

6,010

 

 

$

4,069

 

 

 

 

$

17,855

 

 

$

12,966

 

 

 

*Excludes pre-tax accelerated amortization of trade names of $7.5 million and $10.0 million in the three months and year ended December 31, 2019, respectively. See Note (f) of the Notes to the Financial Tables.

**See the net sales and EBITDA from ongoing operations by segment statements for a reconciliation of this non-GAAP measure to GAAP.

Fourth Quarter 2019 Results vs. Fourth Quarter 2018 Results

Net sales (sales less freight) in the fourth quarter of 2019 decreased versus 2018 primarily due to lower sales volume and the passthrough of lower metal costs, partially offset by an increase in average selling prices to cover higher operating costs. Sales volume in the fourth quarter of 2019 decreased by 17.4% versus 2018. Sales volume in the fourth quarter of 2018 was unusually strong with an increase of 20% over the fourth quarter of 2017. Sales volume in the fourth quarter of 2019 was down 1% versus the fourth quarter of 2017. Lower bookings and backlog information for Bonnell Aluminum and industry data continues to indicate softness across all key end-use markets.

EBITDA from ongoing operations in the fourth quarter of 2019 decreased by $3.4 million in comparison to the fourth quarter of 2018 due to:

  • Lower volumes ($5.7 million) and higher labor and employee-related expenses ($0.9 million), partially offset by higher pricing ($3.5 million) and lower die and other operating expenses ($1.2 million); and
  • A charge for inventories accounted for under the last in, first out (“LIFO”) method ($0.5 million) in the fourth quarter of 2019 versus a benefit in the fourth quarter of 2018 ($1.0 million).

In October 2019, Bonnell Aluminum announced that it would implement a selling price increase of $0.035 per pound and an additional 5% on fabrication and finishing services effective on shipments beginning January 6, 2020, or as permissible by contract. The Company estimates that approximately 20% - 25% of Bonnell Aluminum’s net sales relate to applicable value-added fabrication and finishing services. The price increase is in addition to selling price changes that normally occur from the passthrough to customers of aluminum raw material cost-related volatility. The price increase is expected to offset continuous cost pressures in the current tight market for skilled labor and in other areas.

Full Year 2019 Results vs. Full Year 2018 Results

Net sales in 2019 decreased versus 2018 primarily due to lower sales volume and the passthrough of lower metal costs, partially offset by an increase in average selling prices to cover higher operating costs.

EBITDA from ongoing operations in 2019 increased slightly in comparison to 2018. Excluding the adverse impact of the accounting for inventories under the LIFO method in the fourth quarter of 2019 versus 2018 ($1.5 million as noted above), EBITDA from ongoing operations increased $1.7 million despite a 7% decline in sales volume. The increase was primarily due to higher pricing ($22.8 million) and fabrication profits ($1.0 million), partially offset by lower sales volume ($8.7 million), increased labor and employee-related expenses ($7.4 million), higher supplies, maintenance, utilities and other operating costs ($2.0 million), increased freight costs ($2.0 million) and increased general and administrative expenses ($1.9 million).

Projected Capital Expenditures and Depreciation & Amortization

Capital expenditures for Bonnell Aluminum are projected to be $23 million in 2020, including the expected initial investment for a multi-year project to migrate to a new division-wide enterprise resource planning and manufacturing excellence system ($6 million), infrastructure upgrades at the Carthage, Tennessee and Newnan, Georgia facilities ($4 million), and approximately $12 million required to support continuity of current operations. Depreciation expense is projected to be $14 million in 2020. Amortization expense is projected to be $3 million in 2020.

PE Films

PE Films is composed of surface protection films, personal care materials, polyethylene overwrap films and films for other markets. A summary of fourth quarter and full year operating results from ongoing operations for PE Films is provided below:

 

 

Three Months Ended

 

Favorable/

 

Year Ended

 

Favorable/

(In thousands, except percentages)

 

December 31,

 

(Unfavorable)

 

December 31,

 

(Unfavorable)

 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Sales volume (lbs)

 

26,765

 

 

29,064

 

 

(7.9

)%

 

104,497

 

 

123,583

 

 

(15.4

)%

Net sales

 

$

66,980

 

 

$

80,311

 

 

(16.6

)%

 

$

272,758

 

 

$

332,488

 

 

(18.0

)%

Ongoing operations:

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

9,456

 

 

$

12,976

 

 

(27.1

)%

 

$

37,803

 

 

$

51,058

 

 

(26.0

)%

Depreciation & amortization

 

(3,885

)

 

(3,652

)

 

(6.4

)%

 

(14,627

)

 

(14,877

)

 

1.7

%

EBIT*

 

$

5,571

 

 

$

9,324

 

 

(40.3

)%

 

$

23,176

 

 

$

36,181

 

 

(35.9

)%

Capital expenditures

 

$

4,424

 

 

$

8,457

 

 

 

 

$

23,920

 

 

$

21,998

 

 

 

* See the net sales and EBITDA from ongoing operations by segment statements for a reconciliation of this non-GAAP measure to GAAP.

Fourth Quarter 2019 Results vs. Fourth Quarter 2018 Results

Net sales in the fourth quarter of 2019 decreased by $13.3 million versus 2018 due to lower sales in Personal Care. Surface Protection sales increased $1.5 million while Personal Care sales decreased $14.3 million.

Net sales in Surface Protection increased in the fourth quarter of 2019 versus the fourth quarter of 2018 due to higher volume and favorable mix, partially offset by a one-time benefit in 2018 from replacement sales associated with prior quality claims. As discussed further below, a possible customer product transition in Surface Protection continues to be delayed. Net sales decreased in Personal Care as a result of lower volume in most product categories from competitive pressures ($8.0 million), including a large portion associated with the previously disclosed customer product transition discussed below. In addition, net sales were adversely impacted by unfavorable product mix and pricing and the decline in the value of currencies for operations outside of the U.S. relative to the U.S. Dollar.

EBITDA from ongoing operations in the fourth quarter of 2019 decreased by $3.5 million versus the fourth quarter of 2018 primarily due to:

  • A $0.3 million increase from Surface Protection, primarily due to higher volume and mix (net favorable impact of $3.3 million) and favorable resin prices ($0.9 million), partially offset by a one-time benefit in the fourth quarter of 2018 from replacement sales associated with prior quality claims ($2.5 million), higher manufacturing costs ($0.5 million) and higher selling, general and administrative costs ($0.5 million); and
  • A $3.5 million decrease from Personal Care, primarily due to lower volume ($2.9 million), and unfavorable mix and pricing ($1.8 million), partially offset by lower fixed manufacturing costs ($1.3 million).

Customer Product Transitions in Personal Care and Surface Protection

The Company previously disclosed a significant customer product transition for the Personal Care component of PE Films. Annual sales for this product declined from approximately $70 million in 2018 to $30 million in 2019. The Company recently extended an arrangement with this customer that is expected to generate sales of this product at approximately 2019 levels through at least 2022.

Personal Care had approximately break-even EBITDA from ongoing operations in 2019 as competitive pressures resulted in missed sales and margin goals. Personal Care continues to focus on new business development and cost reduction initiatives in an effort to improve profitability.

The Surface Protection component of PE Films supports manufacturers of optical and other specialty substrates used in flat panel display products. These films are primarily used by customers to protect components of displays in the manufacturing and transportation processes and then discarded.

The Company previously reported the risk that a portion of its film products used in surface protection applications will be made obsolete by possible future customer product transitions to less costly alternative processes or materials. These transitions principally relate to one customer. The full transition continues to encounter delays, resulting in higher than expected sales to this customer in 2019. The Company estimates that during 2020 the adverse impact on EBITDA from ongoing operations from this customer shift versus 2019 could possibly be $14 million. To offset the potential adverse impact, the Company is aggressively pursuing and making progress generating sales from new surface protection products, applications and customers.

Full Year 2019 Results vs. Full Year 2018 Results

Net sales in 2019 decreased by $59.7 million versus 2018 due to lower sales in Personal Care of $65 million. The decline in net sales in Personal Care was primarily due to lower volume in most product categories from competitive pressures ($48 million), including a large portion associated with the customer product transition discussed above. In addition, net sales in Personal Care were adversely impacted by pricing, mix and the decline in the value of currencies for operations outside of the U.S. relative to the U.S. Dollar.

EBITDA from ongoing operations in 2019 decreased by $13.3 million versus 2018 primarily due to:

  • A $6.8 million increase from Surface Protection, primarily due to higher selling prices ($6.0 million), quality claims in 2018 that did not recur in 2019 ($1.2 million), production efficiencies ($1.4 million), and favorable raw material costs ($1.9 million), partially offset by unfavorable mix (net impact of $2.0 million) and higher fixed manufacturing and general and administrative costs ($1.5 million); and
  • A $19.6 million decrease from Personal Care, primarily due to lower volume and unfavorable mix ($19.3 million), unfavorable pricing ($4.8 million), and production inefficiencies ($3.8 million), partially offset by the timing in the passthrough of changes in resin prices ($2.1 million), lower fixed manufacturing ($4.4 million) and selling, general and administrative costs ($1.8 million).

Projected Capital Expenditures and Depreciation & Amortization

Capital expenditures for PE Films are projected to be $16 million in 2020 including: $1.5 million to complete a scale-up line in Surface Protection to improve development and speed to market for new products; $6 million for other development projects; and $8 million for capital expenditures required to support continuity of current operations. Depreciation expense is projected to be $15 million in 2020. There is no amortization expense for PE Films.

Flexible Packaging Films

Flexible Packaging Films, which is also referred to as Terphane, produces polyester-based films for use in packaging applications that have specialized properties, such as heat resistance, strength, barrier protection and the ability to accept high-quality print graphics. A summary of fourth quarter and full year operating results from ongoing operations for Flexible Packaging Films is provided below:

 

 

Three Months Ended

 

Favorable/

(Unfavorable)

% Change

 

Year Ended

 

Favorable/

(Unfavorable)

% Change

(In thousands, except percentages)

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

 

Sales volume (lbs)

25,435

 

 

24,718

 

 

2.9

%

 

105,276

 

 

98,994

 

 

6.3

%

Net sales

$

31,985

 

 

$

33,364

 

 

(4.1

)%

 

$

133,935

 

 

$

123,830

 

 

8.2

%

Ongoing operations:

 

 

 

 

 

 

 

 

 

 

 

EBITDA

$

4,260

 

 

$

3,608

 

 

18.1

%

 

$

14,737

 

 

$

11,154

 

 

32.1

%

Depreciation & amortization

(416

)

 

(334

)

 

(24.6

)%

 

(1,517

)

 

(1,262

)

 

(20.2

)%

EBIT*

$

3,844

 

 

$

3,274

 

 

17.4

%

 

$

13,220

 

 

$

9,892

 

 

33.6

%

Capital expenditures

$

3,174

 

 

$

3,109

 

 

 

 

$

8,866

 

 

$

5,423

 

 

 

* See the net sales and EBITDA from ongoing operations by segment statements for a reconciliation of this non-GAAP measure to GAAP.

Fourth Quarter 2019 Results vs. Fourth Quarter 2018 Results

Net sales in the fourth quarter of 2019 decreased 4.1% versus the fourth quarter of 2018 primarily due to lower selling prices.

Terphane’s EBITDA from ongoing operations in the fourth quarter of 2019 increased by $0.7 million versus the fourth quarter of 2018 primarily due to:

  • Higher volume ($0.3 million) and lower fixed and variable costs ($0.2 million), offset by lower selling prices ($0.1 million);
  • Net favorable foreign currency translation of Real-denominated operating costs ($0.1 million); and
  • Foreign currency transaction gains of $0.2 million in 2019 versus losses of $0.4 million in 2018.

Full Year 2019 Results vs. Full Year 2018 Results

Net sales in 2019 increased versus 2018 primarily due to higher sales volume and increased selling prices.

Terphane’s EBITDA from ongoing operations in 2019 increased by $3.6 million versus 2018 due to:

  • Higher volume ($2.6 million) and higher selling prices ($1.6 million), partially offset by higher fixed and variable costs, including costs related to a restarted line ($2.0 million);
  • Net favorable foreign currency translation of Real-denominated operating costs of $0.4 million; and
  • Foreign currency transaction gains of $1.0 million in 2019 versus losses of $0.8 million in 2018.

Projected Capital Expenditures and Depreciation & Amortization

Capital expenditures for Terphane are projected to be $8 million in 2020, including $6 million for new capacity for value-added products and productivity projects and $1 million for capital expenditures required to support continuity of current operations. Depreciation expense is projected to be $2 million in 2020. Amortization expense is projected to be $0.4 million in 2020.

Corporate Expenses, Investments, Interest and Taxes

Pension expense was $9.6 million in 2019, a favorable change of $0.8 million from 2018. The impact on earnings from pension expense is reflected in “Corporate expenses, net” in the net sales and EBITDA from ongoing operations by segment statements. Pension expense is projected to be $14.2 million in 2020. Corporate expenses, net, increased in 2019 versus 2018 primarily due to higher stock-based employee compensation ($1.7 million), and consulting fees ($4.1 million) related to the identification and remediation of previously disclosed material weaknesses in the Company’s internal control over financial reporting, business development activities, and implementation of new accounting guidance.

Interest expense was $4.1 million in 2019 in comparison to $5.7 million in 2018, primarily due to lower average debt levels.

During 2019, the Company recognized consolidated income tax expense of $9.9 million based on pretax income of $58.2 million. During 2018, the Company recognized consolidated income tax expense of $11.5 million based on pretax income of $36.4 million. The effective tax rate from ongoing operations comparable to the earnings reconciliation table provided in Note (a) of the Notes to Financial Tables in this press release was 22.0% in 2019 and 22.8% in 2018 (see also Note (h) of the Notes to Financial Tables). An explanation of differences between the effective tax rate for income from continuing operations and the U.S. federal statutory rate for 2019 and 2018 will be provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K”).

Tredegar’s approximately 18% ownership in kaleo, Inc. (“kaléo”), which is accounted for under the fair value method, was estimated at a value of $95.5 million at December 31, 2019 (unchanged from September 30, 2019), versus a fair value estimate of $84.6 million at December 31, 2018. In addition, the Company received a cash dividend from kaléo of $17.6 million on April 30, 2019. Dividend income recognized on kaléo and changes in the estimated fair value of the Company’s investment in kaléo, which are included in net income (loss) under GAAP, have consistently been excluded from net income from ongoing operations as shown in the reconciliation table in Note (a) of the Notes to the Financial Tables in this press release. Kaléo’s stock is not publicly traded. The ultimate value of Tredegar’s ownership interest in kaléo could be materially different from the $95.5 million estimated fair value reflected in the Company’s financial statements at December 31, 2019.

CAPITAL STRUCTURE

Total debt was $42.0 million at December 31, 2019, compared to $101.5 million at December 31, 2018. Net debt (debt in excess of cash and cash equivalents) was $10.6 million at December 31, 2019, compared to $67.1 million at December 31, 2018. Net debt is a financial measure that is not calculated or presented in accordance with GAAP. See the Notes to the Financial Tables for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.

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,” “plan”, “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, the following:

  • loss or gain of sales to significant customers on which our business is highly dependent;
  • inability to achieve sales to new customers to replace lost business;
  • inability to develop, efficiently manufacture and deliver new products at competitive prices;
  • failure of our customers to achieve success or maintain market share;
  • failure to protect our intellectual property rights;
  • risks of doing business in countries outside the U.S. that affect our substantial international operations;
  • political, economic, and regulatory factors concerning our products;
  • uncertain economic conditions in countries in which we do business;
  • competition from other manufacturers, including manufacturers in lower-cost countries and manufacturers benefiting from government subsidies;
  • impact of fluctuations in foreign exchange rates;
  • a change in the amount of our underfunded defined benefit (pension) plan liability;
  • an increase in the operating costs incurred by our operating companies, including, for example, the cost of raw materials and energy;
  • inability to successfully identify, complete or integrate strategic acquisitions; failure to realize the expected benefits of such acquisitions and assumption of unanticipated risks in such acquisitions;
  • disruption to our manufacturing facilities;
  • the impact of public health epidemics on our employees, our production and the global economy, such as the coronavirus currently impacting a number of countries;
  • an information technology system failure or breach;
  • volatility and uncertainty of the valuation of our investment in kaléo;
  • the impact of the imposition of tariffs and sanctions on imported aluminum ingot used in our aluminum extrusions;
  • the impact of new tariffs or duties imposed as a result of rising trade tensions between the U.S. and other countries;
  • failure to establish and maintain effective internal control over financial reporting;
  • the termination of anti-dumping duties on products imported to Brazil that compete with products produced by Flexible Packaging Films;

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” Part I, Item 1A of the 2019 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, and expressly disclaims any duty, 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, except as required by applicable law.

To the extent that the financial information portion of this press 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. 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 uses its website as a channel of distribution of material company information. Financial information and other material information regarding Tredegar is posted on and assembled in the “Investors” section of its website.

Tredegar Corporation is a manufacturer of plastic films and aluminum extrusions. A global company headquartered in Richmond, Virginia, Tredegar had 2019 sales of $1.0 billion. With approximately 3,000 employees, the company operates manufacturing facilities in North America, South America, Europe, and Asia.

 

Tredegar Corporation

Condensed Consolidated Statements of Income

(In Thousands, Except Per-Share Data)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2019

 

2018

 

2019

 

2018

Sales

 

$

232,427

 

 

$

275,707

 

 

$

972,358

 

 

$

1,065,471

 

Other income (expense), net (c) (e)

 

(45

)

 

18,927

 

 

34,795

 

 

30,459

 

 

 

232,382

 

 

294,634

 

 

1,007,153

 

 

1,095,930

 

 

 

 

 

 

 

 

 

 

Cost of goods sold (c)

 

182,711

 

 

218,521

 

 

767,511

 

 

849,756

 

Freight

 

9,170

 

 

9,360

 

 

36,063

 

 

36,027

 

Selling, R&D and general expenses (c)

 

30,105

 

 

26,432

 

 

113,988

 

 

103,990

 

Amortization of identifiable intangibles (f)

 

8,419

 

 

900

 

 

13,601

 

 

3,976

 

Pension and postretirement benefits

 

2,396

 

 

2,597

 

 

9,642

 

 

10,406

 

Interest expense

 

697

 

 

1,163

 

 

4,051

 

 

5,702

 

Asset impairments and costs associated with exit and disposal activities (c)

 

530

 

 

1,113

 

 

4,125

 

 

2,913

 

Goodwill impairment charge (d)

 

 

 

 

 

 

 

46,792

 

 

 

234,028

 

 

260,086

 

 

948,981

 

 

1,059,562

 

Income (loss) before income taxes

 

(1,646

)

 

34,548

 

 

58,172

 

 

36,368

 

Income tax expense (benefit) (g)

 

1,489

 

 

8,391

 

 

9,913

 

 

11,526

 

Net income (loss)

 

$

(3,135

)

 

$

26,157

 

 

$

48,259

 

 

$

24,842

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.09

)

 

$

0.79

 

 

$

1.45

 

 

$

0.75

 

Diluted

 

$

(0.09

)

 

$

0.79

 

 

$

1.45

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

Shares used to compute earnings (loss) per share:

 

 

 

 

 

 

 

 

Basic

 

33,278

 

 

33,103

 

 

33,236

 

 

33,068

 

Diluted

 

33,278

 

 

33,112

 

 

33,258

 

 

33,092

 

 

Tredegar Corporation

Net Sales and EBITDA from Ongoing Operations by Segment

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2019

 

2018

 

2019

 

2018

Net Sales

 

 

 

 

 

 

 

 

Aluminum Extrusions

 

$

124,292

 

 

$

152,672

 

 

$

529,602

 

 

$

573,126

 

PE Films

 

66,980

 

 

80,311

 

 

272,758

 

 

332,488

 

Flexible Packaging Films

 

31,985

 

 

33,364

 

 

133,935

 

 

123,830

 

Total net sales

 

223,257

 

 

266,347

 

 

936,295

 

 

1,029,444

 

Add back freight

 

9,170

 

 

9,360

 

 

36,063

 

 

36,027

 

Sales as shown in the Condensed Consolidated Statements of Income

 

$

232,427

 

 

$

275,707

 

 

$

972,358

 

 

$

1,065,471

 

 

 

 

 

 

 

 

 

 

Aluminum Extrusions:

 

 

 

 

 

 

 

 

Ongoing operations:

 

 

 

 

 

 

 

 

EBITDA (b)

 

$

14,452

 

 

$

17,830

 

 

$

65,683

 

 

$

65,479

 

Depreciation & amortization

 

(4,238

)

 

(4,303

)

 

(16,719

)

 

(16,866

)

EBIT (b)

 

10,214

 

 

13,527

 

 

48,964

 

 

48,613

 

Plant shutdowns, asset impairments, restructurings and other (c)

 

106

 

 

(109

)

 

(561

)

 

(505

)

Trade name accelerated amortization (f)

 

(7,530

)

 

 

 

(10,040

)

 

 

PE Films:

 

 

 

 

 

 

 

 

Ongoing operations:

 

 

 

 

 

 

 

 

EBITDA (b)

 

9,456

 

 

12,976

 

 

37,803

 

 

51,058

 

Depreciation & amortization

 

(3,885

)

 

(3,652

)

 

(14,627

)

 

(14,877

)

EBIT (b)

 

5,571

 

 

9,324

 

 

23,176

 

 

36,181

 

Plant shutdowns, asset impairments, restructurings and other (c)

 

(1,408

)

 

(1,363

)

 

(475

)

 

(5,905

)

Goodwill impairment charge (d)

 

 

 

 

 

 

 

(46,792

)

Flexible Packaging Films:

 

 

 

 

 

 

 

 

Ongoing operations:

 

 

 

 

 

 

 

 

EBITDA (b)

 

4,260

 

 

3,608

 

 

14,737

 

 

11,154

 

Depreciation & amortization

 

(416

)

 

(334

)

 

(1,517

)

 

(1,262

)

EBIT (b)

 

3,844

 

 

3,274

 

 

13,220

 

 

9,892

 

Plant shutdowns, asset impairments, restructurings and other (c)

 

 

 

(45

)

 

 

 

(45

)

 

 

10,797

 

 

24,608

 

 

74,284

 

 

41,439

 

Interest income

 

133

 

 

79

 

 

296

 

 

369

 

Interest expense

 

697

 

 

1,163

 

 

4,051

 

 

5,702

 

Gain on investment in kaléo accounted for under fair value method (e)

 

 

 

18,700

 

 

28,482

 

 

30,600

 

Loss on sale of investment property

 

 

 

(38

)

 

 

 

(38

)

Unrealized loss on investment property

 

 

 

 

 

 

 

(186

)

Stock option-based compensation costs (c)

 

2,088

 

 

415

 

 

4,209

 

 

1,221

 

Corporate expenses, net (c)

 

9,791

 

 

7,223

 

 

36,630

 

 

28,893

 

Income (loss) before income taxes

 

(1,646

)

 

34,548

 

 

58,172

 

 

36,368

 

Income tax expense (benefit) (g)

 

1,489

 

 

8,391

 

 

9,913

 

 

11,526

 

Net income (loss)

 

$

(3,135

)

 

$

26,157

 

 

$

48,259

 

 

$

24,842

 

 

Tredegar Corporation

Condensed Consolidated Balance Sheets

(In Thousands)

(Unaudited)

 

 

 

 

 

 

 

December 31, 2019

 

December 31, 2018

Assets

 

 

 

 

Cash & cash equivalents

 

$

31,422

 

$

34,397

Accounts & other receivables, net

 

107,558

 

124,727

Income taxes recoverable

 

4,100

 

6,783

Inventories

 

81,380

 

93,810

Prepaid expenses & other

 

8,696

 

9,564

Total current assets

 

233,156

 

269,281

Property, plant & equipment, net

 

242,890

 

228,369

Right-of-use leased assets

 

19,220

 

Investment in kaléo (cost basis of $7,500)

 

95,500

 

84,600

Identifiable intangible assets, net

 

22,636

 

36,295

Goodwill

 

81,404

 

81,404

Deferred income taxes

 

13,129

 

3,412

Other assets

 

4,733

 

4,012

Total assets

 

$

712,668

 

$

707,373

Liabilities and Shareholders’ Equity

 

 

 

 

Accounts payable

 

$

103,657

 

$

112,758

Accrued expenses

 

45,809

 

42,495

Lease liability, short-term

 

3,002

 

Total current liabilities

 

152,468

 

155,253

Lease liability, long-term

 

17,689

 

Long-term debt

 

42,000

 

101,500

Pension and other postretirement benefit obligations, net

 

107,446

 

88,124

Deferred income taxes

 

11,019

 

Other noncurrent liabilities

 

5,297

 

7,639

Shareholders’ equity

 

376,749

 

354,857

Total liabilities and shareholders’ equity

 

$

712,668

 

$

707,373

 

Tredegar Corporation

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

 

 

 

 

 

Year Ended December 31,

 

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

Net income

 

$

48,259

 

 

$

24,842

 

Adjustments for noncash items:

 

 

 

 

Depreciation

 

30,683

 

 

29,828

 

Amortization of intangibles

 

13,601

 

 

3,976

 

Reduction of right-of-use assets

 

2,588

 

 

 

Goodwill impairment charge

 

 

 

46,792

 

Deferred income taxes

 

5,856

 

 

8,626

 

Accrued pension and postretirement benefits

 

9,642

 

 

10,406

 

(Gain) loss on investment in kaléo accounted for under the fair value method

 

(10,900

)

 

(30,600

)

Loss on asset impairments

 

519

 

 

223

 

(Gain) loss on sale of assets

 

(6,334

)

 

(46

)

Changes in assets and liabilities:

 

 

 

 

Accounts and other receivables

 

16,471

 

 

(11,883

)

Inventories

 

11,315

 

 

(9,577

)

Income taxes recoverable/payable

 

2,644

 

 

25,018

 

Prepaid expenses and other

 

795

 

 

(1,924

)

Accounts payable and accrued expenses

 

(2,937

)

 

5,571

 

Lease liability

 

(2,723

)

 

 

Pension and postretirement benefit plan contributions

 

(8,614

)

 

(8,907

)

Other, net

 

4,998

 

 

5,449

 

Net cash provided by operating activities

 

115,863

 

 

97,794

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

(50,864

)

 

(40,814

)

Return of escrowed funds relating to acquisition earn-out

 

 

 

4,250

 

Net proceeds from sale of investment property

 

 

 

1,384

 

Proceeds from the sale of assets and other

 

10,936

 

 

1,098

 

Net cash used in investing activities

 

(39,928

)

 

(34,082

)

Cash flows from financing activities:

 

 

 

 

Borrowings

 

65,500

 

 

76,750

 

Debt principal payments

 

(125,000

)

 

(127,250

)

Dividends paid

 

(15,325

)

 

(14,592

)

Debt financing costs

 

(1,817

)

 

 

Repurchase of employee common stock for tax withholdings

 

(854

)

 

(328

)

Proceeds from exercise of stock options and other

 

184

 

 

1,332

 

Net cash used in financing activities

 

(77,312

)

 

(64,088

)

Effect of exchange rate changes on cash

 

(1,598

)

 

(1,718

)

Increase (decrease) in cash and cash equivalents

 

(2,975

)

 

(2,094

)

Cash and cash equivalents at beginning of period

 

34,397

 

 

36,491

 

Cash and cash equivalents at end of period

 

$

31,422

 

 

$

34,397

 

 

 

Notes to the Financial Tables

 

(Unaudited)

 

 

(a)

Tredegar’s presentation of net income from ongoing operations and earnings per share from ongoing operations are non-GAAP financial measures that exclude the effects of gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from the sale of assets, goodwill impairment charges and other items (which includes unrealized gains and losses for an investment accounted for under the fair value method), which have been presented separately and removed from net income and diluted earnings per share as reported under GAAP. Net income from ongoing operations and earnings per share from ongoing operations are key financial and analytical measures 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 or earnings per share as defined by GAAP. They exclude items that management believes do not relate to Tredegar’s ongoing operations. A reconciliation to net income from ongoing operations and earnings per share from ongoing operations for the three months and the years ended December 31, 2019 and 2018 is shown below:

 

(In millions, except per share data)

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2019

 

2018

 

2019

 

2018

Net income (loss) as reported under GAAP

 

$

(3.1

)

 

$

26.2

 

 

$

48.3

 

 

$

24.8

 

After-tax effects of:

 

 

 

 

 

 

 

 

(Gains) losses associated with plant shutdowns, asset impairments and restructurings

 

0.9

 

 

1.2

 

 

(1.3

)

 

3.8

 

(Gains) losses from sale of assets and other:

 

 

 

 

 

 

 

 

(Gain) loss associated with the investment in kaléo

 

 

 

(14.7

)

 

(23.4

)

 

(23.9

)

Accelerated trade name amortization

 

5.8

 

 

 

 

7.8

 

 

 

Other

 

3.6

 

 

1.5

 

 

6.2

 

 

4.4

 

Goodwill impairment charge

 

 

 

 

 

 

 

38.2

 

Net income from ongoing operations

 

$

7.2

 

 

$

14.2

 

 

$

37.6

 

 

$

47.3

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share as reported under GAAP (diluted)

 

(0.09

)

 

0.79

 

 

1.45

 

 

0.75

 

After-tax effects per diluted share of:

 

 

 

 

 

 

 

 

(Gains) losses associated with plant shutdowns, asset impairments and restructurings

 

0.03

 

 

0.04

 

 

(0.04

)

 

0.12

 

(Gains) losses from sale of assets and other:

 

 

 

 

 

 

 

 

(Gain) loss associated with the investment in kaléo

 

 

 

(0.44

)

 

(0.70

)

 

(0.72

)

Accelerated trade name amortization

 

0.17

 

 

 

 

0.23

 

 

 

Other

 

0.11

 

 

0.04

 

 

0.19

 

 

0.13

 

Goodwill impairment charge

 

 

 

 

 

 

 

1.15

 

Earnings per share from ongoing operations (diluted)

 

0.22

 

 

0.43

 

 

1.13

 

 

1.43

 

Reconciliations of the pre-tax and post-tax balances attributed to net income (loss) are shown in Note (h).

 

(b)

In the fourth quarter of 2019, the Company changed its segment measure of profit and loss from operating profit from ongoing operations to EBITDA (earnings before interest, taxes, depreciation and amortization) from ongoing operations. EBITDA from ongoing operations is the key profitability metric used by the Company’s chief operating decision maker to assess segment financial performance. For more business segment information, see Note 5 in the Notes to Financial Statements in the 2019 Form 10-K.

 

 

EBIT (earnings before interest and taxes) from ongoing operations is a non-GAAP financial measure included in the accompanying tables and the reconciliation of segment financial information to consolidated results for the Company in the net sales and EBITDA from ongoing operations by segment statements. It is 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 as defined by GAAP. EBIT is a widely understood and utilized metric that is meaningful to certain investors. We believe that including this financial metric in the reconciliation of management’s performance metric, EBITDA from ongoing operations, provides useful information to those investors that primarily utilize EBIT to analyze the Company’s core operations.

 

 

(c)

Losses associated with plant shutdowns, asset impairments, restructurings and other items for continuing operations for the three months and the years ended December 31, 2019 and 2018 detailed below are shown in the statements of net sales and EBITDA from ongoing operations by segment and are included in “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the condensed consolidated statements of income, unless otherwise noted.

(in millions)

Three Months Ended

December 31, 2019

 

Year Ended

December 31, 2019

 

Pre-Tax

 

Net of Tax

 

Pre-Tax

 

Net of Tax

Aluminum Extrusions:

 

 

 

 

 

(Gains)/losses from sale of assets, investment writedowns and other items:

 

 

 

 

 

Wind damage to roof of Elkhart, Indiana plant2

$

(0.4

)

$

(0.3

)

 

$

(0.1

)

$

(0.1

)

Environmental charges at Carthage Tennessee plant1

0.2

 

0.2

 

 

0.6

 

0.5

 

Total for Aluminum Extrusions

$

(0.2

)

$

(0.1

)

 

$

0.5

 

$

0.4

 

 

 

 

 

 

 

PE Films:

 

 

 

 

 

(Gains)/losses associated with plant shutdowns, asset impairments and restructurings:

 

 

 

 

 

Shanghai plant shutdown:4

 

 

 

 

 

Asset-related expenses

$

0.1

 

$

0.1

 

 

$

0.7

 

$

0.7

 

Gain from sale of plant3

 

 

 

(6.3

)

(5.9

)

Employee-related expenses

 

 

 

0.1

 

0.1

 

Consolidation of Personal Care manufacturing facilities - U.S. and Europe:4

 

 

 

 

 

Severance

 

 

 

0.6

 

0.4

 

Asset impairment

 

 

 

0.1

 

0.1

 

Product qualifications1

 

 

 

0.1

 

0.1

 

Lake Zurich, Illinois plant shutdown and transfer of production to new elastics lines in Terre Haute, Indiana:4

 

 

 

 

 

Severance

0.2

 

0.1

 

 

0.9

 

0.7

 

Asset impairment

 

 

 

0.2

 

0.2

 

Safety/quality initiative1

0.1

 

0.1

 

 

0.1

 

0.1

 

Accelerated depreciation1

0.4

 

0.3

 

 

1.2

 

0.9

 

Product qualifications1

0.1

 

0.1

 

 

0.3

 

0.2

 

Reserve for inventory impairment - Personal Care's Hungary facility

 

 

 

0.2

 

0.1

 

Other restructuring costs - severance

0.2

 

0.2

 

 

0.8

 

0.7

 

Write-off Personal Care production line - Guangzhou, China facility

 

 

 

0.4

 

0.3

 

Subtotal for PE Films

1.2

 

0.9

 

 

(0.6

)

(1.3

)

Losses from sale of assets, investment writedowns and other items:

 

 

 

 

 

Estimated excess costs associated with ramp-up of new product offerings and additional expenses related to strategic capacity expansion projects1

0.3

 

0.2

 

 

1.0

 

0.8

 

Total for PE Films

$

1.4

 

$

1.1

 

 

$

0.4

 

$

(0.5

)

 

 

 

 

 

 

Corporate:

 

 

 

 

 

Professional fees associated with: internal control over financial reporting; business development activities; and implementation of new accounting guidance2

$

0.8

 

$

0.6

 

 

$

5.2

 

$

4.0

 

Accelerated recognition of stock option-based compensation5

1.3

 

1.2

 

 

1.3

 

1.2

 

Environmental costs not associated with a business unit2

0.6

 

0.5

 

 

0.6

 

0.5

 

Total for Corporate

$

2.7

 

$

2.3

 

 

$

7.1

 

$

5.7

 

1. Included in “Cost of goods sold” in the condensed consolidated statements of income.

2. Included in “Selling, R&D and general expenses” in the condensed consolidated statements of income.

3. Included in “Other income (expense), net” in the condensed consolidated statements of income.

4. Additional information on costs associated with exit and disposal activities and other details are available in Note 17 of the 2019 Form 10-K.

5. Included in “Stock option-based compensation costs” in the net sales and EBITDA from ongoing operations by segment statements.

 

Three Months Ended

December 31, 2018

 

 

Year Ended

December 31, 2018

(in millions)

Pre-Tax

 

Net of Tax

 

 

Pre-Tax

 

Net of Tax

Aluminum Extrusions:

 

 

 

 

 

Losses associated with plant shutdowns, asset impairments and restructurings:

 

 

 

 

 

Other restructuring costs - severance

$

 

$

 

 

$

0.1

 

$

0.1

 

 

 

 

 

 

 

Losses from sale of assets, investment writedowns and other items:

 

 

 

 

 

Wind damage to roof of Elkhart, Indiana plant2

 

 

 

0.1

 

0.1

 

Environmental charges at Carthage, Tennessee facility1

0.1

 

0.1

 

 

0.3

 

0.2

 

Subtotal for Aluminum Extrusions

0.1

 

0.1

 

 

0.4

 

0.3

 

Total for Aluminum Extrusions

$

0.1

 

$

0.1

 

 

$

0.5

 

$

0.4

 

 

 

 

 

 

 

PE Films:

 

 

 

 

 

Losses associated with plant shutdowns, asset impairments and restructurings:

 

 

 

 

 

Shanghai plant shutdown:

 

 

 

 

 

Asset-related expenses

$

0.3

 

$

0.3

 

 

$

0.3

 

$

0.3

 

Severance & employee-related expenses

0.4

 

0.4

 

 

1.8

 

1.8

 

Severance & employee-related expenses - administrative1

0.1

 

0.1

 

 

0.4

 

0.4

 

Accelerated depreciation1

0.1

 

0.1

 

 

0.6

 

0.6

 

Other restructuring costs - severance

0.3

 

0.3

 

 

0.7

 

0.5

 

Subtotal for PE Films

1.2

 

1.2

 

 

3.8

 

3.6

 

 

 

 

 

 

 

Losses from sale of assets, investment writedowns and other items:

 

 

 

 

 

Estimated excess costs associated with ramp-up of new product offerings and additional expenses related to strategic capacity expansion projects1

0.3

 

0.2

 

 

2.0

 

1.7

 

Costs related to a fire that occurred at a facility in Retsag, Hungary2

0.1

 

0.1

 

 

0.1

 

0.1

 

Costs to prepare a market study2

 

 

 

0.2

 

0.1

 

Gain on reversal of contingent liability3

(0.3

)

(0.2

)

 

(0.3

)

(0.2

)

Subtotal for PE Films

0.1

 

0.1

 

 

2.0

 

1.7

 

Total for PE Films

$

1.3

 

$

1.3

 

 

$

5.8

 

$

5.3

 

 

 

 

 

 

 

Corporate:

 

 

 

 

 

Professional fees associated with: internal control over financial reporting; business development activities; and implementation of new accounting guidance2

$

0.6

 

$

0.5

 

 

$

1.1

 

$

0.9

 

Loss on investment in Harbinger Capital Partners Special Situations Fund, L.P.3

0.1

 

0.1

 

 

0.5

 

0.4

 

Business development projects2

0.5

 

0.4

 

 

0.5

 

0.4

 

Total for Corporate

$

1.2

 

$

1.0

 

 

$

2.1

 

$

1.7

 

1. Included in “Cost of goods sold” in the condensed consolidated statements of income.

2. Included in “Selling, R&D and general expenses” in the condensed consolidated statements of income.

3. Included in “Other income (expense), net” in the condensed consolidated statements of income.

 

(d)

Goodwill impairment charge of $46.8 million ($38.2 million after deferred income tax benefits) was recognized in the Personal Care component of PE Films in the third quarter of 2018 upon the completion of an impairment analysis performed as of September 30, 2018. This non-operating, non-cash charge, as computed under GAAP, resulted from the expectation of a significant customer transition. The Company performed an asset recoverability test and goodwill impairment analysis and concluded that the fair value of the Personal Care reporting unit was less than its carrying value.

 

(e)

A pre-tax gain on the Company’s investment in kaleo, Inc. (“kaléo”) of $28.5 million was recognized in the full year of 2019 (none in the fourth quarter of 2019) (included in “Other income (expense), net” in the condensed consolidated statements of income), compared to unrealized pre-tax gains of $18.7 million and $30.6 million in the fourth quarter and full year of 2018, respectively.

 

(f)

On October 30, 2019, Bonnell Aluminum announced a rebranding initiative. Bonnell and its subsidiaries, AACOA and Futura, now all fall under the Bonnell Aluminum brand. The usage of the AACOA and Futura trade names was discontinued at the end of 2019. In September 2019, management committed to implement the rebranding initiative. Prior to this commitment, the AACOA trade name had an indefinite useful life and a remaining net book value of $4.8 million, and the Futura trade name had an estimated remaining useful life of approximately 10.5 years and a remaining net book value of $5.4 million. As a result of the rebranding initiative, there was a change in estimate in the useful lives for both trade names to 4 months, the point at which the rebranding initiative was complete. The non-cash amounts amortized in the third and fourth quarters of 2019, respectively, related to these trade names are as follows:

 

(in millions)

Three Months Ended

 

September 30, 2019

 

December 31, 2019

AACOA - accelerated

$

1.2

$

3.6

Futura - accelerated

1.3

3.9

Futura - ongoing1

0.1

0.1

Total amortization

$

2.6

$

7.6

1. Amortization based on original useful life.

(g)

Net debt is calculated as follows:

(in millions)

 

December 31, 2019

 

December 31, 2018

Debt

 

$

42.0

 

$

101.5

Less: Cash and cash equivalents

 

31.4

 

34.4

Net debt

 

$

10.6

 

$

67.1

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.

 

 

(h)

Tredegar’s presentation of net income (loss) from ongoing operations is a non-GAAP financial measure that excludes the effects of gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from the sale of assets, goodwill impairment charges and other items (which includes unrealized gains and losses for an investment accounted for under the fair value method), which have been presented separately and removed from net income (loss) and diluted earnings (loss) per share as reported under GAAP. Net income (loss) from ongoing operations is a key financial and analytical measure used by management to gauge the operating performance of Tredegar’s ongoing operations. It is 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 as defined by GAAP. It excludes items that management believes do not relate to Tredegar’s ongoing operations. A reconciliation of the pre-tax and post-tax balances attributed to net income (loss) from ongoing operations for the three and twelve months ended December 31, 2019 and 2018 is shown below in order to show the impact on the effective tax rate (due to rounding, numbers presented in this table may not add up precisely to the totals provided):

 

(In millions)

Pre-Tax

 

Taxes Expense

(Benefit)

 

After-Tax

 

Effective

Tax Rate

Three Months Ended December 31, 2019

(a)

 

(b)

 

 

 

(b)/(a)

Net income (loss) reported under GAAP

$

(1.6

)

 

$

1.5

 

 

$

(3.1

)

 

(90.5

)%

Losses associated with plant shutdowns, asset impairments and restructurings

1.2

 

 

0.3

 

 

0.9

 

 

 

(Gains) losses from sale of assets and other

10.6

 

 

1.2

 

 

9.4

 

 

 

Net income (loss) from ongoing operations

$

10.2

 

 

$

3.0

 

 

$

7.2

 

 

28.4

%

Three Months Ended December 31, 2018

 

 

 

 

 

 

 

Net income (loss) reported under GAAP

$

34.5

 

 

$

 

 

$

26.2

 

 

24.3

%

Losses associated with plant shutdowns, asset impairments and restructurings

1.3

 

 

0.1

 

 

1.2

 

 

 

(Gains) losses from sale of assets and other

(17.2

)

 

(4.0

)

 

(13.2

)

 

 

Net income (loss) from ongoing operations

$

18.6

 

 

$

(3.9

)

 

$

14.2

 

 

24.9

%

Twelve Months Ended December 31, 2019

 

 

 

 

 

 

 

Net income (loss) reported under GAAP

$

58.2

 

 

$

9.9

 

 

$

48.3

 

 

17.0

%

Losses associated with plant shutdowns, asset impairments and restructurings

(0.5

)

 

0.8

 

 

(1.3

)

 

 

(Gains) losses from sale of assets and other

(9.5

)

 

(0.1

)

 

(9.4

)

 

 

Net income (loss) from ongoing operations

$

48.2

 

 

$

10.6

 

 

$

37.6

 

 

22.0

%

Twelve Months Ended December 31, 2018

 

 

 

 

 

 

 

Net income reported under GAAP

$

36.4

 

 

$

11.5

 

 

$

24.8

 

 

31.7

%

Losses associated with plant shutdowns, asset impairments and restructurings

4.1

 

 

0.2

 

 

3.8

 

 

 

(Gains) losses from sale of assets and other

(25.9

)

 

(6.4

)

 

(19.5

)

 

 

Goodwill impairment charge

46.8

 

 

8.6

 

 

38.2

 

 

 

Net income (loss) from ongoing operations

$

61.4

 

 

$

13.9

 

 

$

47.3

 

 

22.8

%

 

 

Tredegar Corporation
Neill Bellamy, 804-330-1211
neill.bellamy@tredegar.com

Source: Tredegar Corporation

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