Tredegar Corp

NYSE:TGUnited States

Nov 8, 2024

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• Tredegar Q3 Loss Narrows, Sales Rise, from 4:51PM ET on Friday Nov 08, 2024 by MT Newswires

  4:51PM ET on Friday Nov 08, 2024 by MT Newswires
  Companies Mentioned: TG
  04:51 PM EST, 11/08/2024 (MT Newswires) -- Tredegar (TG) reported a Q3 loss late Friday of $0.11 per diluted share, narrower than a loss of $1.47 per share a year earlier. Analyst estimates weren't available. Sales for the quarter ended Sept. 30 wer...

• -- Earnings Flash (TG) TREDEGAR CORPORATION Posts Q3 Revenue $182.1M, from 4:16PM ET on Friday Nov 08, 2024 by MT Newswires

  4:16PM ET on Friday Nov 08, 2024 by MT Newswires
  Companies Mentioned: TG
  04:16 PM EST, 11/08/2024 (MT Newswires) -- ...

• *DJ Tredegar 3Q Loss $3.9M >TG, from 4:15PM ET on Friday Nov 08, 2024 by Dow Jones

  4:15PM ET on Friday Nov 08, 2024 by Dow Jones
  Companies Mentioned: TG
  statements of income $ 182,051 $ 548,202 --------------------------------- --- --------------- --- -------------- 1. Reflects the Company's current best estimate of pre-tax revenue and expenses of the Terphane business prepared in accordance with discontinued operations guidance set forth in Accounting Standards Codification ("ASC") 205 Presentation of Financial Statements. Three Months Ended Nine Months Ended September 30, September 30, ---------------------- --------------------- ($ in millions) 2024 2024 ----------------------------- --- ------------ --- --- ------------ Pro forma consolidated EBITDA from ongoing operations Net income (loss) as reported under GAAP(1) $ (3.9) $ 8.1 Income tax expense (benefit)(1) 0.9 3.6 ----------------------------- --- ------------ --- --- ------------ Income (loss) before income taxes as shown in the condensed consolidated statements of income (3.0) 11.7 Discontinued operations before taxes(2) EBIT from ongoing operations (3.0) (6.7) Interest expense 1.8 5.5 Plant shutdowns, asset impairments, restructurings and other 0.1 0.1 Corporate expenses, net 1.1 (0.4) ----------------------------- --- ------------ --- --- ------------ Pro forma income (loss) from continuing operations before income tax (3.0) 10.2 Pre-tax effects of: (Gains) losses associated with plant shutdowns, asset impairments and restructurings -- 0.6 Gain associated with the investment in kaléo -- (0.1) (Gains) losses from sale of assets and other 2.4 6.1 ----------------------------- --- ------------ --- --- ------------ Pro forma net income (loss) from ongoing operations before income tax (0.6) 16.8 Depreciation and amortization 5.8 17.6 Interest expense 1.6 4.8 ----------------------------- --- ------------ --- --- ------------ Pro forma consolidated EBITDA from ongoing operations $ 6.8 $ 39.2 ----------------------------- --- ------------ --- --- ------------ 1. Reconciliations of the pre-tax and post-tax balances attributed to net income (loss) are shown in Note (e). 2. Reflects the Company's current best estimate of pre-tax revenue and expenses of the Terphane business prepared in accordance with discontinued operations guidance set forth in ASC 205 Presentation of Financial Statements. As of or for Twelve Months Ended ($ in millions) September 30, 2024(5) -------------------------------------------------- -------------------------- Net leverage ratio Net debt(1) $ 136.8 Credit EBITDA(2) $ 59.1 -------------------------------------------------- --- ----------------- Net leverage ratio 2.3 Pro forma net debt Net debt(1) $ 136.8 Debt reduction associated with the sale of Terphane(3) (78.0) -------------------------------------------------- --- ----------------- Pro forma net debt $ 58.8 Pro forma Credit EBITDA Credit EBITDA(2) $ 59.1 Discontinued operations EBITDA from ongoing operations(4) (11.2) Discontinued operations corporate expenses, net(4) (0.8) -------------------------------------------------- --- ----------------- Pro forma Credit EBITDA $ 47.1 Pro forma net leverage ratio Pro forma net debt $ 58.8 Pro forma Credit EBITDA $ 47.1 -------------------------------------------------- --- ----------------- Pro forma net leverage ratio 1.2 -------------------------------------------------- --- ----------------- 1. For more information, see Note (f). 2. For more information, refer to the "Liquidity and Capital Resources" section in the Third Quarter From 10-Q. 3. On November 1, 2024, Tredegar received $60 million in cash, which is net of Terphane's debt assumed by Oben Group of $20 million and Terphane's cash retained by Oben Group of $2 million. Accordingly, on a cash-free and debt-free basis, the enterprise value of the Terphane transaction at closing for Tredegar was $78 million. 4. Reflects the Company's current best estimate of pre-tax revenue and expenses of the Terphane business prepared in accordance with discontinued operations guidance set forth in ASC 205 Presentation of Financial Statements. 5. Actual and pro forma Credit EBITDA amounts are for the twelve months ended September 30, 2024, and actual or pro forma net debt amounts are as of September 30, 2024. Upon the earlier of September 30, 2025 or the date the Company receives the proceeds from the sale of Terphane (the "ABL Adjustment Date"), the $180 million ABL Facility will be reduced to $125 million. On November 1, 2024, with the closing of the sale of Terphane, the ABL Adjustment Date has occurred. Following the ABL Adjustment Date, the minimum Credit EBITDA (as defined in the ABL Facility) and minimum liquidity financial covenants were replaced with a minimum fixed charge coverage ratio of 1.00:1.00 that will be triggered in the event that availability is less than 10% of $125 million commitment amount and continuing thereafter until availability is greater than 10% of the $125 million commitment amount for 30 consecutive days. On a pro forma basis after giving effect to the completion of the sale of Terphane and the use of the related proceeds, the Company determined it was in compliance with the post-ABL Adjustment Date financial covenant. For more information, refer to Note 10 to the Company's Condensed Consolidated Financial Statements in the Third Quarter Form 10-Q. (k) During 2023, uncertainty about the timing of a recovery in the consumer electronics market persisted, and manufacturers in the supply chain for consumer electronics continued to experience reduced capacity utilization and inventory corrections. In light of the limited visibility on the timing of a recovery and the expected adverse future impact to the Surface Protection business, coupled with a cautious outlook on new product development opportunities, the Company performed a Step 1 goodwill impairment analysis, as of June 30, 2023 and September 30, 2023, of the Surface Protection component of PE Films. The analyses concluded that the fair value of Surface Protection was less than its carrying value, thus a non-cash partial goodwill impairment of $34.9 million ($27.0 million after deferred income tax benefits) was recognized during 2023. As of December 1, 2023, the Company's reporting units with goodwill were Surface Protection in PE Films and Futura in Aluminum Extrusions. Both of these reporting units have separately identifiable operating net assets (operating assets including goodwill and identifiable intangible assets net of operating liabilities). The Company's Step 0 analysis of these reporting units concluded that it is more likely than not that the fair value of each reporting unit was greater than its carrying value. Therefore, the Step 1 quantitative goodwill impairment tests for these reporting units were not necessary. The Surface Protection and Futura reporting units had goodwill in the amounts of $22.4 million and $13.3 million, respectively, at December 31, 2023.
  

• Tredegar Reports Third Quarter 2024 Results, from 4:15PM ET on Friday Nov 08, 2024 by Dow Jones

  4:15PM ET on Friday Nov 08, 2024 by Dow Jones
  Companies Mentioned: TG
  statements of income $ 182,051 $ 548,202 --------------------------------- --- --------------- --- -------------- 1. Reflects the Company's current best estimate of pre-tax revenue and expenses of the Terphane business prepared in accordance with discontinued operations guidance set forth in Accounting Standards Codification ("ASC") 205 Presentation of Financial Statements. Three Months Ended Nine Months Ended September 30, September 30, ---------------------- --------------------- ($ in millions) 2024 2024 ----------------------------- --- ------------ --- --- ------------ Pro forma consolidated EBITDA from ongoing operations Net income (loss) as reported under GAAP(1) $ (3.9) $ 8.1 Income tax expense (benefit)(1) 0.9 3.6 ----------------------------- --- ------------ --- --- ------------ Income (loss) before income taxes as shown in the condensed consolidated statements of income (3.0) 11.7 Discontinued operations before taxes(2) EBIT from ongoing operations (3.0) (6.7) Interest expense 1.8 5.5 Plant shutdowns, asset impairments, restructurings and other 0.1 0.1 Corporate expenses, net 1.1 (0.4) ----------------------------- --- ------------ --- --- ------------ Pro forma income (loss) from continuing operations before income tax (3.0) 10.2 Pre-tax effects of: (Gains) losses associated with plant shutdowns, asset impairments and restructurings -- 0.6 Gain associated with the investment in kaléo -- (0.1) (Gains) losses from sale of assets and other 2.4 6.1 ----------------------------- --- ------------ --- --- ------------ Pro forma net income (loss) from ongoing operations before income tax (0.6) 16.8 Depreciation and amortization 5.8 17.6 Interest expense 1.6 4.8 ----------------------------- --- ------------ --- --- ------------ Pro forma consolidated EBITDA from ongoing operations $ 6.8 $ 39.2 ----------------------------- --- ------------ --- --- ------------ 1. Reconciliations of the pre-tax and post-tax balances attributed to net income (loss) are shown in Note (e). 2. Reflects the Company's current best estimate of pre-tax revenue and expenses of the Terphane business prepared in accordance with discontinued operations guidance set forth in ASC 205 Presentation of Financial Statements. As of or for Twelve Months Ended ($ in millions) September 30, 2024(5) -------------------------------------------------- -------------------------- Net leverage ratio Net debt(1) $ 136.8 Credit EBITDA(2) $ 59.1 -------------------------------------------------- --- ----------------- Net leverage ratio 2.3 Pro forma net debt Net debt(1) $ 136.8 Debt reduction associated with the sale of Terphane(3) (78.0) -------------------------------------------------- --- ----------------- Pro forma net debt $ 58.8 Pro forma Credit EBITDA Credit EBITDA(2) $ 59.1 Discontinued operations EBITDA from ongoing operations(4) (11.2) Discontinued operations corporate expenses, net(4) (0.8) -------------------------------------------------- --- ----------------- Pro forma Credit EBITDA $ 47.1 Pro forma net leverage ratio Pro forma net debt $ 58.8 Pro forma Credit EBITDA $ 47.1 -------------------------------------------------- --- ----------------- Pro forma net leverage ratio 1.2 -------------------------------------------------- --- ----------------- 1. For more information, see Note (f). 2. For more information, refer to the "Liquidity and Capital Resources" section in the Third Quarter From 10-Q. 3. On November 1, 2024, Tredegar received $60 million in cash, which is net of Terphane's debt assumed by Oben Group of $20 million and Terphane's cash retained by Oben Group of $2 million. Accordingly, on a cash-free and debt-free basis, the enterprise value of the Terphane transaction at closing for Tredegar was $78 million. 4. Reflects the Company's current best estimate of pre-tax revenue and expenses of the Terphane business prepared in accordance with discontinued operations guidance set forth in ASC 205 Presentation of Financial Statements. 5. Actual and pro forma Credit EBITDA amounts are for the twelve months ended September 30, 2024, and actual or pro forma net debt amounts are as of September 30, 2024. Upon the earlier of September 30, 2025 or the date the Company receives the proceeds from the sale of Terphane (the "ABL Adjustment Date"), the $180 million ABL Facility will be reduced to $125 million. On November 1, 2024, with the closing of the sale of Terphane, the ABL Adjustment Date has occurred. Following the ABL Adjustment Date, the minimum Credit EBITDA (as defined in the ABL Facility) and minimum liquidity financial covenants were replaced with a minimum fixed charge coverage ratio of 1.00:1.00 that will be triggered in the event that availability is less than 10% of $125 million commitment amount and continuing thereafter until availability is greater than 10% of the $125 million commitment amount for 30 consecutive days. On a pro forma basis after giving effect to the completion of the sale of Terphane and the use of the related proceeds, the Company determined it was in compliance with the post-ABL Adjustment Date financial covenant. For more information, refer to Note 10 to the Company's Condensed Consolidated Financial Statements in the Third Quarter Form 10-Q. (k) During 2023, uncertainty about the timing of a recovery in the consumer electronics market persisted, and manufacturers in the supply chain for consumer electronics continued to experience reduced capacity utilization and inventory corrections. In light of the limited visibility on the timing of a recovery and the expected adverse future impact to the Surface Protection business, coupled with a cautious outlook on new product development opportunities, the Company performed a Step 1 goodwill impairment analysis, as of June 30, 2023 and September 30, 2023, of the Surface Protection component of PE Films. The analyses concluded that the fair value of Surface Protection was less than its carrying value, thus a non-cash partial goodwill impairment of $34.9 million ($27.0 million after deferred income tax benefits) was recognized during 2023. As of December 1, 2023, the Company's reporting units with goodwill were Surface Protection in PE Films and Futura in Aluminum Extrusions. Both of these reporting units have separately identifiable operating net assets (operating assets including goodwill and identifiable intangible assets net of operating liabilities). The Company's Step 0 analysis of these reporting units concluded that it is more likely than not that the fair value of each reporting unit was greater than its carrying value. Therefore, the Step 1 quantitative goodwill impairment tests for these reporting units were not necessary. The Surface Protection and Futura reporting units had goodwill in the amounts of $22.4 million and $13.3 million, respectively, at December 31, 2023.