Amendment No.1 to Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K/A

(Amendment No. 1)

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 12, 2014 (November 11, 2014)

 

 

TREDEGAR CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

 

 

Virginia   001-10258   54-1497771

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

1100 Boulders Parkway, Richmond, Virginia 23225

(Address of Principal Executive Offices) (Zip Code)

(804) 330-1000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


EXPLANATORY NOTE

This Form 8-K/A is furnished as Amendment No. 1 (“Amendment No. 1”) to the Current Report on Form 8-K dated November 12, 2014 (the “Form 8-K”) by Tredegar Corporation (the “Company”). This Amendment No. 1 is being furnished solely to correct the Company’s name on the signature page of the Form 8-K. For convenience, the information previously disclosed in the Form 8-K is repeated below.

 

Item 7.01. Regulation FD

As previously disclosed, on November 11, 2014, Tredegar Corporation (“Tredegar” or the “Company”) presented at Baird’s Industrial Conference and the slides utilized in the Company’s presentation were posted to the Company’s website at www.tredegar.com under the “Investors” tab. The presentation is attached as Exhibit 99.1 to this Current Report and is incorporated by reference into this Item 7.01.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 7.01 of this Current Report on Form 8-K, including the exhibits hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 7.01 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

A cautionary note about forward-looking statements: Some of the information contained in this Current Report 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 Terphane Holdings LLC (“Terphane”) and AACOA, Inc. (“AACOA”), may not achieve the levels of revenue, profit, productivity, or otherwise perform as we expect; acquisitions, including our acquisitions of Terphane and AACOA, involve special risks, including without limitation, diversion of management’s time and attention from our existing businesses, the potential assumption of unanticipated liabilities and contingencies and potential difficulties in integrating acquired businesses and achieving anticipated operational improvements; 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 Aluminum Extrusions are cyclical and highly dependent on economic conditions of end-use markets in the U.S., particularly in the construction sector, 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 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 2013 Annual Report on Form 10-K (the “2013 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, which include the 2013 Form 10-K.

Tredegar does not undertake, and expressly disclaims any duty, to update any forward-looking statement made in this Current Report 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 the investor presentation attached as Exhibit 99.1 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 GAAP Reconciliations section included with the investor presentation attached as Exhibit 99.1 and can also be found within Presentations in the Investors section of its 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.

 

2


Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits.

 

Exhibit

No.

  

Description

99.1    Tredegar Corporation Investor Presentation, November 2014 (furnished pursuant to Item 7.01)

 

3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 12, 2014

 

TREDEGAR CORPORATION
By:  

/s/ A. Brent King

  A. Brent King
  Vice President, General Counsel and Secretary

 

4


EXHIBIT INDEX

 

EXHIBIT

  

DESCRIPTION

99.1    Tredegar Corporation Investor Presentation, November 2014 (furnished pursuant to Item 7.01)

 

5

Exhibit 99.1
Investor Presentation
November 2014
Exhibit 99.1


Forward-Looking Statements
Certain statements contained in this presentation are forward-looking statements.  Pursuant
to federal securities regulations, we have set forth cautionary statements relating to those
forward-looking statements in our Annual Report on Form 10-K for the year ended
December 31, 2013, in our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2014 and other filings with the Securities and Exchange Commission.  We
urge readers to review and carefully consider these cautionary statements and the other
disclosures we make in our filings with the SEC.
This presentation contains non-GAAP financial measures that are not determined in
accordance with United States GAAP.  These non-GAAP financial measures should not be
considered in isolation, as an alternative to, or more meaningful than measures of financial
performance determined in accordance with United States GAAP.  A
reconciliation of those
financial measures to United States GAAP financial measures is included under
“Supplemental Information”
in this presentation and is available on the company’s website at
www.tredegar.com
under “Investors.”
The presentation speaks as of the date thereof.  Tredegar is not, and should not be deemed
to be, updating or reaffirming any information contained therein.  We do not undertake, and
expressly disclaim any duty, to update any forward-looking statements made in this
presentation to reflect any change in management’s expectations or any change in
conditions, assumptions or circumstances on which such statements are based.
1


Net
Sales
1
by
Segment                                                     Net
Sales
1
by
Geography
Global footprint
Kerkrade, The Netherlands
Rétság, Hungary
São Paulo, Brazil
Cabo de Santo Agostinho, Brazil
South America -
Films
Guangzhou, China
Shanghai, China
Pune, India
Asia -
Films
Europe -
Films
Bonnell
Newnan, GA
Carthage, TN
Elkhart, IN
Niles, MI
1
Net sales represent sales less freight. See Note 1 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
* Leased facilities
Tredegar Corporation
Business Profile
2
$916
million
Net
Sales
1
in
LTM
September
2014
Film
Products
64%
Aluminum
Extrusions
36%
Latin
America
11%
North
America
63%
Europe
14%
Asia
12%
North America
Films
Bloomfield, NY
Lake Zurich, IL
Morrisville,
NC
*
Pottsville, PA
Richmond, VA
*
Terre Haute, IN


Tredegar Film Products
Business Profile
3
($ in millions)
LTM
Net
Sales
LTM
Adjusted
EBITDA
Adjusted
EBITDA
Margin
Global and regional consumer care producers
Major manufacturers of flat panel display
components
Major food packaging producers and converters
Personal care products –
feminine hygiene, baby
diapers and adult incontinence products
Flexible packaging –
food
High-value components of flat panel displays,
including LCD televisions, monitors, notebooks,
smartphones, tablets and digital signage
Films for other markets, such as lighting
1
Net sales represent sales less freight.  See Note 1 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
2
See Note 2 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
Personal
Care
56%
Flexible
Packaging
19%
Surface
Protection
15%
Other
10%
($590
million
Net
Sales
1
in
LTM
2014)
Customers
Primary End Use Markets
1
2
$590
$92
15.6%
2


Bonnell Aluminum
Business Profile
4
($ in millions)
LTM
Net
Sales
LTM
Adjusted
EBITDA
Adjusted
EBITDA
Margin
1
Net sales represent sales less freight.  See Note 1 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
2
See Note 2 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
$327
$34
10.5%
2
2
1
Non
-
residential
B&C 60%
Residential
B&C
6%
Automotive
7%
Consumer
Durables
12%
Machinery     
& Equip 7%
Other  8%
(149 million pounds in LTM 2014)
Glazing contractors and fabricators
Consumer durables, machinery and equipment,
and electrical OEMs
Tier I and II suppliers to automotive OEMs
Curtain wall, store fronts and entrances, doors,
windows, wall panels and other building
components
Consumer durables such as major appliances,
pleasure boats and recreational watercraft,
office and institutional furniture
Material handling equipment, linear motion and
conveying systems, modular framing
Automobile and light truck structural
components
Customers
Primary End Use Markets


2011
Acquired
Bright View
Technologies
(specialty films)
2010
2014 LTM
Net
Sales¹
$720
$916
Adj
EBITDA²
$90
$103
($ in millions)
Opened Pune,
India Plant
(personal care
films)
Acquired
Terphane (flexible
packaging films)
Closed
Kentland
Plant
(extrusions)
Acquired
AACOA
Divested
Falling
Springs
Significant
Capacity
Expansion
Projects
Launched New
Product Platforms
(surface protection
and elastics)
New
Automotive
Press
New Flexible
Packaging Line
Translating Strategy into Action
Laying the Foundation for Long-term Growth
Increased
quarterly dividend
Increased
quarterly dividend
Increased quarterly
dividend and paid
special dividend
Increased
quarterly dividend
Repurchased
shares
6
2012
2010
2013
2014
1
2
Reflects inclusion of acquisitions subsequent to their acquisition dates: Bright View (2/3/10), Terphane (10/24/11) and AACOA (10/1/12).
  Net sales represent sales less freight.  See Note 1 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
  See Note 2 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.


7
Tredegar Corporation
Translating Strategy into Action
Net sales represent sales less freight. See Note 1 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
1
$931
(lbs. millions)
($ in millions)
38%
62%
2010
P&G
All Other
$720
28%
72%
2013
70%
30%
2010
Building &
All Other
95 lbs.
60%
40%
2013
144 lbs.
Customer Concentration –
Tredegar Net Sales
Nonresidential
Construction
1
End-Market Concentration – Aluminum Extrusions Volume


Tredegar Corporation
Translating Strategy into Action
Well-positioned for future growth in attractive markets
Leadership positions in diverse markets
Investments in added capacity and capabilities are in
place
Strength of product innovation is driving additional
value
Opportunity for strong earnings growth and cash flow
generation
Actively returning capital to shareholders
Overview
Film Products
Financials
7


Tredegar Corporation
Key
Market
Drivers
Creating
Growth
Opportunities
Film
Products
Key Market Drivers for Surface Protection Films:
New technologies for high-end TVs, tablets,
phablets and smartphones are driving growth
Expanded use of touch screen technology
Screens getting larger; flat panel display area
projected to grow 6% in 2015
Unit growth in TVs expected as consumers
upgrade  (ex. ultra-high definition, 4k
technology)
Increasing quality demands to meet high-
performance
specifications
throughput
and
yield
critical to long-term competitiveness
8
Overview
Film Products
Aluminum
Extrusions
Financials
NPD DisplaySearch, September 12, 2014
1
1


Tredegar Corporation
Key
Market
Drivers
Creating
Growth
Opportunities
Film
Products
Key Market Drivers for Personal Care Films:
Global growth for personal care products –
incremental
volume
2014
through
2020
:
83 billion pads (3.9% CAGR)
50 billion diapers (4.5% CAGR)
Over 700 million women aged 12-49 in India
and
China
9
Overview
Film Products
Aluminum
Extrusions
Financials
Price
Hanna
Consultants,
June
2014
International
Data
Base,
U.S.
Census
1
1
2
1
2
Global incremental volume of 17 billion units
2014
through
2019
(7.9%
CAGR)
Developed markets represent approximately
two-thirds of global growth
Aging baby-boomers consuming retail adult
incontinence products:


Tredegar Corporation
Key Market Drivers for Flexible Packaging:
Middle class consumption in emerging markets,
including Brazil
Growing end-user demand for convenience
foods, lighter packaging and branded consumer
products
PET film offers technical advantages such as
temperature resistance, high dimensional
stability and barrier properties
Global growth of PET films projected at over
7%
per
year
through
2018
1
PCI, “World BOPET Market 2013-2018 Statistical Summary”, May 2014
10
Film Products
Aluminum
Extrusions
Financials
1
Key Market Drivers Creating Growth Opportunities – Film Products


Tredegar Corporation
5-6% annual industry growth projected
through 2018
Growth of industrial and specialty markets,
such as consumer durables and machinery &
equipment
3%
annual industry growth through 2018
Strong demand for finished products, including
anodized and painted product and fabricated
components
11
Overview
Aluminum
Extrusions
Financials
FMI Construction Outlook, 3Q2014
Lawrence Capital Management, Quarterly Downstream Outlook”, September 2014 
Key Market Drivers for Nonresidential
Construction, Industrial & Specialty Markets:
Improving nonresidential building and
construction market
1
2
1
2
Key Market Drivers Creating Growth Opportunities - Bonnell Aluminum


Tredegar Corporation
Key Market Drivers Creating Growth Opportunities
Key Market Drivers for Automotive Extrusions:
Cars being re-engineered to decrease weight
and
improve
fuel
efficiency
growing
aluminum
content in vehicles
Limited qualified supply in place to meet demand
Bonnell extrusions are supporting significant
platforms such as Chrysler Jeep Cherokee
7 out of 10 pick-up trucks projected to be
aluminum-intensive
vehicles
by
2025
12
Overview
Film Products
Aluminum
Extrusions
Financials
1
1
Ducker International, “NorthCoast Quarterly Aluminum Update, July 2014


Tredegar Corporation
Committed to Increasing Shareholder Value
13
Return on invested capital expected to be in the range
of 11-12% by year-end 2016 from current rate of ~ 9%
Dividend increases convey confidence in long-term
financial outlook and cash flow generation
With a balanced view towards capital allocation, we
have the flexibility to invest in our businesses, pay
dividends, and repurchase shares


Well-positioned for future growth in attractive markets
Leadership positions in diverse markets
Investments in added capacity and capabilities are in
place
Strength of product innovation is driving additional
value
Opportunity for strong earnings growth and cash flow
generation
Actively returning capital to shareholders
Tredegar Corporation
Translating Strategy into Action
Overview
Film Products
Financials
14


Appendix


NYSE: TG
Market Cap: $616MM
HQ: Richmond, VA
Global footprint:
2,700 employees
17+ locations in
North and South
America, Europe 
and Asia
Created in 1989: Ethyl Corp. (now NewMarket Corp.) spin-off
Evolved from holding company to premier manufacturing
operating company
Superior manufacturing capabilities in plastic films and
aluminum extrusions industries
Leadership positions in core markets with attractive growth
opportunities and strong long-term relationships with market-
leading customers
Attractive financial profile with financial flexibility and history of
strong cash generation
2010
2014:
Refocused
company
to
drive
profitable
growth
in
core manufacturing businesses and diversified through growth to
reduce customer and market concentration
Overview
Film Products
Financials
Key Facts  
Tredegar Corporation
Company Overview
16
(as of Oct 31, 2014)
Quarterly dividend:
$0.09 / share


Major Products
Primary End-Markets
Customers
Key Competitors
Film Products
Personal
Care
Materials:
Apertured,
breathable, elastic and embossed films and
laminate materials for personal care markets
Feminine hygiene products, baby diapers and adult incontinence products
Global and regional consumer
care producers
Clopay, Nordenia, Aplix, Pantex
Surface
Protection:
Single
and
multi-layer
surface protection films for high technology
applications during the manufacturing and
transportation process
High-value components of flat panel displays, including liquid crystal display
(“LCD”) televisions, monitors, notebooks, smartphones, tablets, e-readers
and digital signage
Major manufacturers of flat panel
display components
Toray, Sekesui, Hitachi
Flexible
Packaging
Films:
Specialized
polyester (“PET”) films for use in packaging
applications
Perishable and non-perishable food packaging; non-food packaging and
industrial applications
Major food packaging converters
and producers
DuPont Teijin,Toray Plastics America,
Mitsubishi
Polyethylene Overwrap and Polypropylene
Films:
Films
for
use
in
thin-gauge
packaging
and other applications
Overwrap for bathroom tissue and paper towels, medical devices,
automotive and industrial applications
Global and regional consumer
care producers
Bemis, Berry Plastics
Films
for
Other
Markets:
Films
combining
multiple technology platforms for application-
specific functionality, including optical
management
Lighting, signage, durable goods, automotive and construction applications
Global and regional leaders in
LED lighting
Luminit, Fusion Optix, DuPont
Aluminum Extrusions
Custom aluminum extrusion profiles supplied in
various finishing and value-added service
options including mill (unfinished), anodized,
painted, fabricated, machined, cut-to-length,
assembled, custom packed and labeled for:
Nonresidential Construction:
Doors, windows, pre-engineered structures,
wall panels, partitions and interior enclosures, ducts, louvers and vents,
curtain
wall
(commercial/architectural/monumental),
store
fronts
and
entrances, walkway covers
Residential
Construction:
Shower
and
tub
enclosures,
storm
shutters
Automotive
and
Transportation:
Automobile/light
truck
structural
components, recreational vehicles, trim parts, after-market accessories
Consumer Durables:
Commercial refrigerators and freezers, office and
institutional furniture, major appliances, swimming pools, pleasure boats,
recreational motorized watercraft
Machinery and Equipment:
Material handling equipment, linear motion
and conveyor systems, modular framing (commercial and industrial),
hospital and patient care equipment
Electrical:
Commercial
and
industrial
LED
lighting
housings
and
heatsinks,
solar panels, rigid and flexible conduit
Distribution:
Metal
service
centers
Glazing contractors and
fabricators
Tier suppliers to Automotive
OEMs
Consumer durables, machinery
and equipment, electrical OEMs
Metal service centers
Sapa North America, Kaiser
Aluminum, Western Extrusions Corp.,
Keymark Aluminum Corp.
Tredegar At A Glance
17
Nonresidential and residential construction
Automotive
Consumer durables
Machinery and equipment
Electrical
Distribution


Tredegar Film Products
Annual Historical Financials
Volume (lbs. in millions)
Adjusted EBITDA
1
($ in millions)
1
See Note 2 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
18
Lower North American baby care
elastic laminate volume in 2014 (as
previously announced)
Lower volume, pricing pressure and
manufacturing inefficiencies in flexible
packaging
Capacity from new flexible packaging
line delayed (previously expected in
2Q); line ramping up in 4Q
Customer inventory corrections and
minor share loss in surface protection
films
219
270
270
206
185
0
50
100
150
200
250
300
2011
2012
2013
3Q13
YTD
3Q14
YTD
$96
$109
$106
$82
$68
$0
$40
$80
$120
2011
2012
2013
3Q13
YTD
3Q14
YTD
Reflects inclusion of Terphane subsequent to acquisition date of 10/24/11 and Bright View subsequent to acquisition date of 2/3/10.
2014 Performance Drivers:


Bonnell Aluminum
Annual Historical Financials
Volume (lbs. in millions)
Adjusted
EBITDA
1
($
in
millions)
Reflects inclusion of AACOA subsequent to acquisition date of 10/1/12.
See Note 2 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
19
2
2
108
115
144
109
114
-40
10
60
110
160
2011
2012
2013
3Q13
YTD
3Q14
YTD
$12
$17
$28
$19
$26
$0
$10
$20
$30
$40
2011
2012
2013
3Q13
YTD
3Q14
YTD
1
2014 Performance Drivers:
Operating efficiencies and cost
containment helping margins
Nonresidential B&C volume up 4%
year-to-date, consistent with
industry growth
Volume up with growth in
nonresidential B&C, automotive
and machinery & equipment
finished and fabricated products
Favorable mix – strength in


Tredegar Corporation
Annual Historical Financials
Net
Sales
1
($
in
millions)
Earnings
Per
Share
from
Ongoing
Ops
3
1
Net sales represent sales less freight.  See Note 1 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
2
See Note 3 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
3
Diluted
earnings
per
share
from
ongoing
operations.
See
Note
3
in
GAAP
to
Non-GAAP
Reconciliations
for
more
information
on
this
non-GAAP
financial
measure.
20
Reflects inclusion of acquisitions subsequent to their acquisition dates: Bright View  (2/3/10); Terphane (10/24/11) and AACOA (10/1/12).
2014 Performance Drivers:
$776
$857
$931
$706
$692
0
300
600
900
1200
2011
2012
2013
3Q 13
YTD
3Q 14
YTD
$.87
$1.20
$1.15
$0.88
$0.90
$0.00
$0.50
$1.00
$1.50
2011
2012
2013
3Q 13
YTD
3Q 14
YTD
Volume growth and favorable
product mix in Bonnell Aluminum
Near-term challenges in Film
Products
Non-cash pension expense
$5.1MM favorable to prior year
Effective tax rate for net income
from
ongoing
operations
2
at
34%
vs. 31% for the first nine months of
2013; increase primarily resulting
from geographic income mix and
R&D credit


Tredegar Corporation
Other 2014 Year-to-Date Financial Highlights
Cash Flows from Operations
Capital Expenditures
Dividends Paid
Net Debt
Net Debt to Total Capitalization
Total Debt to Adjusted EBITDA
(LTM as of 9/30/2014)
ROIC
(LTM as of 9/30/2014)
$37.2
$32.6
$8.1
$86.9
17.3%
1.43x
8.9%
$ in millions, except percentages
21
1
2
3
4
1
As of 9/30/2014.  See Note 4 in GAAP to Non-GAAP Reconciliations for more information and a reconciliation of this non-GAAP financial measure.
2 As of 9/30/2014 . See Note 5 in GAAP to Non-GAAP Reconciliations for more information and a reconciliation of this non-GAAP financial measure.
3 As defined under Tredegar’s credit agreement.  See Tredegar’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014       
(pages 32-33) for more information on this non-GAAP financial measure.
4 See Note 7 in GAAP to Non-GAAP Reconciliations for more information and a reconciliation of this non-GAAP financial measure.


Tredegar Corporation
Strong Cash Generation Profile
22
Free cash flow represents cash flows from operations less capital expenditures. 
($ millions)
2010
2011
2012
2013
Cash Flows from Operations
$46
$72
$83
$77
Capital Expenditures
20
16
33
80
Free Cash Flow
1
26
56
50
(3)
Dividends
5
6
31
9
Acquisitions
6
181
58
0
Share Repurchases
35
0
0
0
1


Tredegar Corporation
Cash Dividend History
23
Includes special dividend of $.75 per share.
Estimate based upon current dividend payouts, reflecting annualized increase of $.02 per share approved in May 2014.
1
2
Quarterly dividends have more than doubled since 2010.
A special dividend of $.75 per share was paid in 2012.
$.16
$.18
$.21
$.28
$.34
$.75
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
1996
-2010
2011
2012
2013
2014E
$.96
1
2


Tredegar Corporation
Capital Expenditures History
2014
capital
expenditures
are
projected
to
include
approximately
$20
million
for routine capital expenditures ($15MM for Film Products and $5MM for
Bonnell Aluminum)
24
1
Net sales represent sales less freight.  See Note 1 in GAAP to Non-GAAP Reconciliations for more information on this non-GAAP financial measure.
2
Represents management’s current expectation, which is subject to change.
($ millions)
Capital Expenditures
2010
2011
2012
2013
2014
Projection
2
Film Products
15.8
13.1
30.5
64.9
40.0
Bonnell Aluminum
4.3
2.7
2.3
14.7
8.0
Corporate
0.3
0.1
0.5
0.1
-
Total
20.4
15.9
33.3
79.7
48.0
% Net Sales
1
2.8%
2.0%
3.9%
8.6%


GAAP to Non-GAAP Reconciliations


GAAP to Non-GAAP Reconciliations
26
Tredegar acquired Bright View Technologies Corporation on February 3, 2010, and its operations were incorporated into Film Products effective January 1, 2012.
Prior year balances have been revised to conform with the current year presentation. 
Film Products results include the acquisition of Terphane Holdings LLC on October 24, 2011.  Bonnell Aluminum results include the acquisition of AACOA, Inc. on
October 1, 2012.
Notes:
1.
Net sales represent sales less freight.  Net sales is a financial measure that is not calculated in accordance with U.S. generally accepted accounting principles
(U.S. GAAP), and it is not intended to represent sales as defined by U.S. GAAP.  Net sales is a key measure used by the chief operating decision maker of
each segment for purposes of assessing performance.  A reconciliation of net sales to sales is shown below:
YTD
YTD
(In millions)
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q3 2013
Q3 2014
Film Products
$157.2
$151.4
$149.2
$146.0
$143.1
$469.8
438.3
Aluminum Extrusions
78.5
73.2
79.3
84.6
89.6
236.3
253.4
Total net sales
235.7
224.6
228.5
230.6
232.7
706.1
691.7
Add back freight
7.5
6.5
6.7
6.4
7.7
22.1
20.9
Sales as shown in consolidated statements of income
$243.2
$231.1
$235.2
$237.0
$240.4
$728.2
$712.6
LTM
(In millions)
2010
2011
2012
2013
Sept 2014
Film Products
$520.8
$535.5
$611.9
$621.2
$589.7
Aluminum Extrusions
199.6
240.4
245.5
309.5
326.6
Total net sales
720.4
775.9
857.4
930.7
916.3
Add back freight
17.8
18.5
24.8
28.6
27.4
Sales as shown in consolidated statements of income
$738.2
$794.4
$882.2
$959.3
$943.7
2.
Adjusted EBITDA represents net income (loss) from continuing operations before interest, taxes, depreciation, amortization, unusual items, goodwill impairments,
gains or losses associated with plant shutdowns, asset impairments and restructurings, gains or losses from the sale of assets, investment write-downs or
write-ups, charges related to stock option awards accounted for under the fair value-based method and other items. Adjusted EBITDA is a non-GAAP financial
measure that is not intended to represent net income (loss) or cash flow from operations as defined by U.S. GAAP and should not be considered as either an
alternative to net income (loss) (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.
A reconciliation of ongoing operating profit (loss) from continuing operations to Adjusted EBITDA is shown on the next page.  Amounts relating to corporate
overhead for the prior years have been reclassified to conform with the current year’s presentation. Adjusted EBITDA for Aluminum Extrusions in 2012 includes
an adjustment of $2.4 million for accelerated depreciation associated with the shutdown of its manufacturing facility in Kentland, IN.  Accelerated depreciation
associated with the shutdown of the Kentland manufacturing facility was excluded from operating profit from ongoing operations.  This amount has therefore
been subtracted from the amount of depreciation expense added back in calculating Adjusted EBITDA.


GAAP to Non-GAAP Reconciliations
27
Notes (continued):
Film
Aluminum
2013
Products
Extrusions
Total
Operating profit (loss) from ongoing operations
$              71.0
$              18.3
89.3
Add back depreciation & amortization
35.3
9.2
44.5
Adjusted EBITDA before corporate overhead  (a)
106.3
27.5
133.8
Corporate overhead
-
-
(31.3)
Adjusted EBITDA  (c)
$            106.3
$              27.5
102.5
Net sales  (b)
$            621.2
$            309.5
930.7
Adjusted EBITDA margin  [(a) / (b )]
17.1%
8.9%
14.4%
Capital expenditures  (d)
$              64.9
$              14.7
79.7
Adjusted
EBITDA
less
capital
expenditures
[(c)
-
(d)]
41.4
12.8
22.9
2012
Operating profit (loss) from ongoing operations
$              70.0
$                9.0
79.0
Add back depreciation & amortization
39.2
10.0
49.2
Less accelerated depreciation associated with plant shutdown
(2.4)
(2.4)
Adjusted EBITDA before corporate overhead  (a)
109.2
16.6
125.8
Corporate overhead
-
-
(22.3)
Adjusted EBITDA  (c)
$            109.2
$              16.6
103.5
Net sales  (b)
$
611.9
$            245.5
857.4
Adjusted EBITDA margin  [(a) / (b )]
17.8%
6.8%
14.7%
Capital expenditures  (d)
$              30.5
$                2.3
33.3
Adjusted
EBITDA
less
capital
expenditures
[(c)
-
(d)]
78.7
14.3
70.2
2011
Operating profit (loss) from ongoing operations
$              59.5
$                3.5
63.0
Add back depreciation & amortization
36.3
8.3
44.6
Adjusted EBITDA before corporate overhead  (a)
95.8
11.8
107.6
Corporate overhead
-
-
(15.5)
Adjusted EBITDA  (c)
$              95.8
$               11.8
92.1
Net sales  (b)
$            535.5
$            240.4
775.9
Adjusted EBITDA margin  [(a) / (b )]
17.9%
4.9%
13.9%
Capital expenditures  (d)
$               13.1
$                2.7
15.9
Adjusted
EBITDA
less
capital
expenditures
[(c)
-
(d)]
82.7
9.1
76.2
$
$
$
$
$
$
$
$
$
$
$
$


GAAP to Non-GAAP Reconciliations
28
Notes (continued):
Film
Aluminum
Products
Extrusions
Total
2010
Operating profit (loss) from ongoing operations
$              66.7
$              (4.2)
$              62.5
Add back depreciation & amortization
34.4
9.1
43.5
Adjusted EBITDA before corporate overhead  (a)
101.1
4.9
106.0
Corporate overhead
-
-
(16.2)
Adjusted EBITDA  (c)
$             101.1
$                4.9
$              89.8
Net sales  (b)
$            520.8
$            199.6
$            720.4
Adjusted EBITDA margin  [(a) / (b
)]
19.4%
2.5%
14.7%
Capital expenditures  (d)
$             15.8
$                4.3
$              20.4
Adjusted
EBITDA
less
capital
expenditures
[(c)
-
(d)]
85.3
0.6
69.4
Nine Months Ended September 30, 2014
Operating profit (loss) from ongoing operations
$              44.9
$              18.6
$              63.5
Add back depreciation & amortization
23.2
7.5
30.7
Adjusted EBITDA before corporate overhead  (a)
68.1
26.1
94.2
Corporate overhead
-
-
(16.5)
Adjusted EBITDA  (c)
$             68.1
$              26.1
$              77.7
Net sales  (b)
$            438.3
$            253.4
$           691.7
Adjusted EBITDA margin  [(a) / (b
)]
15.5%
10.3%
13.6%
Capital expenditures  (d)
$              27.4
$                5.2
$              32.6
Adjusted
EBITDA
less
capital
expenditures
[(c)
-
(d)]
40.7
20.9
45.1
Nine Months Ended September 30, 2013
Operating profit (loss) from ongoing operations
$              55.4
$              12.3
$              67.7
Add back depreciation & amortization
26.8
6.9
33.7
Adjusted EBITDA before corporate overhead  (a)
82.2
19.2
101.4
Corporate overhead
-
-
(23.7)
Adjusted EBITDA  (c)
$              82.2
$              19.2
$              77.7
Net sales  (b)
$            469.8
$            236.3
$            706.1
Adjusted EBITDA margin  [(a) / (b
)]
17.5%
8.1%
14.4%
Capital expenditures  (d)
$              47.2
$                7.5
$              54.7
Adjusted
EBITDA
less
capital
expenditures
[(c)
-
(d)]
35.0
11.7
23.0
Trailing Twelve Months Ended September 30, 2014
Operating profit (loss) from ongoing operations
$              60.5
$              24.5
$              85.0
Add back depreciation & amortization
31.6
9.9
41.5
Adjusted EBITDA before corporate overhead  (a)
92.1
34.4
126.5
Corporate overhead
-
-
(24.0)
Adjusted EBITDA  (c)
$              92.1
$              34.4
$            102.5
Net sales  (b)
$            589.7
$            326.6
$            916.3
Adjusted EBITDA margin  [(a) / (b
)]
15.6%
10.5%
13.8%
Capital expenditures  (d)
$              45.1
$              12.4
$              57.5
Adjusted
EBITDA
less
capital
expenditures
[(c)
-
(d)]
47.0
22.0
45.0


GAAP to Non-GAAP Reconciliations
29
Notes (continued):
(in millions, except per share data)
YTD
YTD
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q3 2013
Q3 2014
Net income (loss) from continuing operations as reported under U.S. GAAP
$           7.4
$           9.4
$           8.5
$           3.8
$         10.7
26.5
$         23.0
After tax effects of:
(Gains) losses associated with plant shutdowns, asset impairments and restructurings
0.1
0.4
0.8
0.6
0.3
0.5
1.7
(Gains) losses from sale of assets and other
2.3
(1.0)
0.2
6.7
(2.2)
1.5
4.8
Net income from ongoing operations
9.8
$          
8.8
$          
9.5
$          
11.1
$        
8.8
$          
28.5
29.5
$        
Earnings (loss) from continuing operations per share under GAAP (diluted)
$         0.23
$         0.29
$         0.26
$        0.11
$         0.33
0.81
$         0.70
After tax effects of:
(Gains) losses associated with plant shutdowns, asset impairments and restructurings
-
0.01
0.02
0.02
0.01
0.02
0.05
(Gains) losses from sale of assets and other
0.07
(0.03)
0.01
0.21
(0.07)
0.05
0.15
Earnings per share from ongoing operations (diluted)
$         0.30
$         0.27
$         0.29
$        0.34
$         0.27
0.88
$         0.90
(in millions, except per share data)
LTM
2010
2011
2012
2013
Sept 2014
Net income (loss) from continuing operations as reported under U.S. GAAP
$         26.8
$         28.5
$         43.2
$         35.9
$         32.4
After tax effects of:
(Gains) losses associated with plant shutdowns, asset impairments and restructurings
0.9
1.2
3.2
0.9
2.1
(Gains) losses from sale of assets and other
1.0
(1.8)
(7.9)
0.5
3.8
Goodwill impairment relating to aluminum extrusions business
-
-
-
-
-
Net income from ongoing operations
28.7
$        
27.9
$        
38.5
$        
37.3
$        
38.3
$        
Earnings (loss) from continuing operations per share under GAAP (diluted)
$         0.82
$         0.89
$         1.34
$        1.10
$         0.99
After tax effects of:
(Gains) losses associated with plant shutdowns, asset impairments and restructurings
0.03
0.04
0.10
0.03
0.06
(Gains) losses from sale of assets and other
0.03
(0.06)
(0.24)
0.02
0.12
Goodwill impairment relating to aluminum extrusions business
-
-
-
-
-
Earnings per share from ongoing operations (diluted)
$         0.88
$         0.87
$         1.20
$         1.15
$         1.17
3.
The after-tax effects of losses associated with plant shutdowns, asset impairments and restructurings and gains or losses from the sale of assets and other items (which includes
unrealized gains and losses for an investment accounted for under the fair value method) have been presented separately and removed from income (loss) and earnings (loss) per share
from continuing operations as reported under U.S. GAAP to determine Tredegar’s presentation of net income and earnings per share from ongoing operations.  Net income and earnings
per share from ongoing operations are key financial and analytical measures used by Tredegar to gauge the operating performance of its 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 from continuing
operations as defined by U.S. GAAP.  They exclude items that we believe do not relate to Tredegar’s ongoing operations.  A reconciliation is shown below:


GAAP to Non-GAAP Reconciliations
30
Notes (continued):
4.
Net
debt
is
a
non-GAAP
financial
measure
that
is
not
intended
to
represent
debt
as
defined
by
GAAP,
but is utilized by management in evaluating financial leverage and equity valuation.  A calculation of
net debt is showm below:
(In millions)
September 30,
2014
Debt
$
138.8
Less: Cash and cash equivalents
(51.9)
Net debt
$
86.8
5.
Net debt-to-capitalization is a non-GAAP financial measure that is used by management in evaluating
financial
leverage
and
equity
valuation.
The
calculation
is
Net
Debt
divided
by
Total
Capitalization. 
A reconciliation of net debt-to-capitalization is shown below:
(In millions except percentages)
September 30,
2014
Net debt (see note 4) (a)
$
86.8
Shareholders' equity (b)
415.0
Net debt-to-capitalization [(a) / (a+b)]
17.3%


GAAP to Non-GAAP Reconciliations
31
Notes (continued):
6.
Operating profit from ongoing operations is used by management to assess profitability.  A reconciliation of operating profit from ongoing operations to net income is shown below:
Operating profit (loss):
YTD
YTD
LTM
(in thousands)
2010
2011
2012
2013
Q3 2013
Q3 2014
Sept 2014
Film Products:
Ongoing operations
66,718
$    
59,493
$    
69,950
$    
70,966
$    
55,351
$    
44,891
$    
60,506
$    
Plant shutdowns, asset impairments and restructurings, gain
from sale of assets and other items
(758)
(6,807)
(109)
(671)
(364)
(12,578)
(12,885)
Aluminum Extrusions:
Ongoing operations
(4,154)
3,457
9,037
18,291
12,351
18,563
24,503
Plant shutdowns, asset impairments and restructurings, gain
from sale of assets and other items
493
58
(5,427)
(2,748)
(958)
(300)
(2,090)
Total
62,299
56,201
73,451
85,838
66,380
50,576
70,034
Interest income
709
1,023
418
594
307
419
706
Interest expense
1,136
1,926
3,590
2,870
2,132
1,751
2,489
Gain on sale of investment property
-
-
-
-
-
1,208
1,208
Unrealized loss on investment property
-
-
-
(1,018)
(1,018)
-
-
Gain (loss) from an investment accounted for under the fair value method
(2,200)
1,600
16,100
3,400
100
2,900
6,200
Stock option-based compensation costs
2,064
1,940
1,432
1,155
859
944
1,240
Corporate expenses,net
17,118
16,169
23,443
31,857
24,058
17,291
25,090
Income (loss) from continuing operations before income taxes
40,490
38,789
61,504
52,932
38,720
35,117
49,329
Income taxes
13,649
10,244
18,319
16,995
12,185
12,141
16,951
Income (loss) from continuing operations
26,841
28,545
43,185
35,937
26,535
22,976
32,378
Income (loss) from discontinued operations, net of tax
186
(3,690)
(14,934)
(13,990)
(13,990)
850
850
Net income (loss)
27,027
$    
24,855
$    
28,251
$    
21,947
$    
12,545
$    
23,826
$    
33,228
$    


GAAP to Non-GAAP Reconciliations
32
Notes (continued):
7.
Return on invested capital (ROIC) is defined by Tredegar as Adjusted Net Income from Ongoing Operations divided by average Invested Capital
where the individual components are defined as follows:
Adjusted Net Income from Ongoing Operations equals:
Income from Ongoing Operations (as previously defined and reconciled in Note 2)
Plus
Pension expense excluding service costs, net of taxes
Plus
Interest expense, net of tax
Average  Invested Capital is the average of the beginning and ending Invested Capital balance where Invested Capital is defined as follows:
Shareholders equity
Plus
Long-term debt
Plus
Short-term portion of long-term debt
Plus
Accrued pension liability
Minus
Cash
Minus
Non-operating investments (investment in kaleo, Inc.; Harbinger Capital Special Situations Fund, L.P. and investment real estate property)
ROIC for the LTM ended September 30, 2014 is calculated as follows:
($ millions, except percentages)
Income from Ongoing Operations
$         38.3 *
Pension expense
8.6
Less: Service Costs
(1.8)
           
Taxes (34%)
(2.3)
           
Pension expense excluding service costs, net of taxes
             4.5
Interest expense
2.5
Taxes (34%)
(0.9)
           
Interest Expense, net of tax
             1.6
Adjusted Net Income from Ongoing Operations (a)
$         44.4
2014
2013
Average
Shareholders equity
$       415.0
$       376.7
$       395.9
Long-term debt
          138.8
          134.0
          136.4
Short-term portion of long-term debt
                - 
                - 
                - 
Accrued pension liability
            36.9
            77.1
            57.0
Less:  Cash
           (51.9)
           (42.6)
           (47.3)
Less:  Non-operating investments
Investment in kaleo, Inc.
           (40.0)
           (33.8)
           (36.9)
Investment in Harbinger Capital Special Situations Fund, L.P.
            (1.8)
            (3.2)
            (2.5)
Investment in real estate property
            (2.6)
            (5.9)
            (4.3)
Invested Capital (b)
$       498.3
ROIC
(a) / (b)
8.9%
*
See Note 2 for additional detail and a reconciliation of this non-GAAP financial measure.
LTM
September 30, 2014
September 30,


GAAP to Non-GAAP Reconciliations
33
Notes (continued):
8.
The pre-tax and after-tax effects of losses associated with plant shutdowns, asset impairments and restructurings and gains or losses from the sale of
assets and other items (which includes unrealized gains and losses for an investment accounted for under the fair value method) have been presented
separately and removed from income (loss) from continuing operations as reported under U.S. GAAP to determine Tredegar’s presentation of net income
from ongoing operations.  Net income from ongoing operations is a key financial and analytical measure used by Tredegar to gauge the operating
performance of its ongoing operations.  It is not intended to represent the stand-alone results for Tredegar’s ongoing operations under U.S. GAAP and
should not be considered as an alternative to net income from continuing operations as defined by U.S. GAAP.   It excludes items that we believe do not
relate to Tredegar’s ongoing operations.  A reconciliation of the pre-tax and post-tax balances attributed to net income from ongoing operations for the
nine months ended June 30, 2014 and 2013 are shown below in order to show its impact upon the effective tax rate:
(in millions)
Pre-Tax
Taxes
After-Tax
Effective Tax Rate
Nine Months Ended September 30, 2014
(a)
    (b)
(b)/(a)
Net income (loss) from continuing operations as reported under U.S. GAAP
$         35.1
$         12.1
$         23.0
35%
(Gains) losses associated with plant shutdowns, asset impairments and restructurings
             2.7
             1.0
             1.7
(Gains) losses from sale of assets and other
             6.9
             2.1
             4.8
Net income from ongoing operations
$         44.7
$         15.2
$         29.5
34%
Nine Months Ended September 30, 2013
Net income (loss) from continuing operations as reported under U.S. GAAP
$         38.7
$         12.2
$         26.5
32%
(Gains) losses associated with plant shutdowns, asset impairments and restructurings
             0.8
             0.3
             0.5
(Gains) losses from sale of assets and other
             1.6
             0.1
             1.5
Net income from ongoing operations
$         41.1
$         12.6
$         28.5
31%


Investor Presentation
November 2014