Workflow
Tredegar (TG) - 2024 Q2 - Quarterly Results
TGTredegar (TG)2024-08-07 12:10

Financial Performance - Second quarter 2024 net income was 8.8million(8.8 million (0.26 per diluted share), a significant improvement from a net loss of (18.9)million((18.9) million ((0.56) per diluted share) in the same quarter of 2023[1]. - Net income for the three months ended June 30, 2024, was 8.8million,comparedtoanetlossof8.8 million, compared to a net loss of 18.9 million in the same period of 2023[23]. - Net income for the six months ended June 30, 2024, was 12,080thousand,comparedtoanetlossof12,080 thousand, compared to a net loss of 19,934 thousand in the same period last year[29]. - The company reported a net income of 14.7millionforthesixmonthsendedJune30,2024,withaneffectivetaxrateof17.914.7 million for the six months ended June 30, 2024, with an effective tax rate of 17.9%[39]. - For the three months ended June 30, 2024, net income from ongoing operations was 10.3 million, with an effective tax rate of 18.9%[39]. Sales and Orders - Sales volume for Aluminum Extrusions decreased by 1.7% to 34.9 million pounds in Q2 2024 compared to 35.5 million pounds in Q2 2023[4]. - Net new orders increased by 17% in Q2 2024 compared to Q2 2023, although they remain low compared to pre-pandemic levels[4]. - Open orders at the end of Q2 2024 were approximately 14 million pounds, down from 20 million pounds at the end of Q2 2023[4]. - Net sales for PE Films in Q2 2024 increased by 83.4% to 29.2millioncomparedtoQ22023,drivenbya12329.2 million compared to Q2 2023, driven by a 123% increase in Surface Protection sales volume[9]. - For the first six months of 2024, net sales for PE Films rose by 49.4% to 53.9 million, with Surface Protection sales volume increasing by 77% compared to the same period in 2023[11]. - Flexible Packaging Films reported a 4.0% increase in net sales to 34.5millioninQ22024,attributedtohighersalesvolumeandfavorableproductmix[13].−Forthefirstsixmonthsof2024,netsalesforFlexiblePackagingFilmsremainedconsistentwiththesameperiodin2023,impactedbylowersellingpricesduetoexcessglobalcapacity[14].EBITDAandOperationalPerformance−EBITDAfromongoingoperationsforAluminumExtrusionswas34.5 million in Q2 2024, attributed to higher sales volume and favorable product mix[13]. - For the first six months of 2024, net sales for Flexible Packaging Films remained consistent with the same period in 2023, impacted by lower selling prices due to excess global capacity[14]. EBITDA and Operational Performance - EBITDA from ongoing operations for Aluminum Extrusions was 12.9 million in Q2 2024, up 26.3% from 10.2millioninQ22023[2].−EBITDAfromongoingoperationsforPEFilmswas10.2 million in Q2 2023[2]. - EBITDA from ongoing operations for PE Films was 10.1 million in Q2 2024, a substantial increase from 0.8millioninQ22023[2].−EBITDAfromongoingoperationsforPEFilmsinQ22024was0.8 million in Q2 2023[2]. - EBITDA from ongoing operations for PE Films in Q2 2024 was 10.1 million, a significant increase of 9.3millioncomparedtoQ22023,primarilyduetorestockingofcustomerinventories[9].−EBITDAfromongoingoperationsforFlexiblePackagingFilmsinQ22024increasedby9.3 million compared to Q2 2023, primarily due to restocking of customer inventories[9]. - EBITDA from ongoing operations for Flexible Packaging Films in Q2 2024 increased by 3.0 million compared to Q2 2023, mainly due to lower raw material costs and fixed costs[13]. - Consolidated EBITDA from ongoing operations for the three months ended June 30, 2024, was 22.6million,comparedto22.6 million, compared to 7.4 million for the same period in 2023[42]. Capital Expenditures and Liquidity - The company expects capital expenditures of 9millionin2024,including9 million in 2024, including 4 million for productivity projects[6]. - Capital expenditures for PE Films are projected to be 2millionin2024,including2 million in 2024, including 1 million for productivity projects[11]. - The liquidity available under the new asset-based lending facility has exceeded expectations, aiding in cost management and capital spending[2]. - The median daily liquidity under the asset-based lending facility was 27millioninQ22024,upfrom27 million in Q2 2024, up from 16 million in Q1 2024[19]. - Total current assets increased to 190,765thousandasofJune30,2024,from190,765 thousand as of June 30, 2024, from 176,677 thousand at the end of 2023[27]. Debt and Compliance - Total debt decreased to 142.0millionasofJune30,2024,from142.0 million as of June 30, 2024, from 146.3 million at December 31, 2023, while net debt increased slightly to 133.3million[19].−Thecompanywasincompliancewithallcovenantsunderits133.3 million[19]. - The company was in compliance with all covenants under its 180 million asset-based credit agreement as of June 30, 2024[19]. - The company was in compliance with all debt covenants as of June 30, 2024[41]. - The ABL revolving facility matures on June 30, 2026, with total debt reported at 142.0millionasofJune30,2024[40].StrategicInitiativesandFutureOutlook−Thecompanyexpectstorealizeafter−taxnetcashproceedsof142.0 million as of June 30, 2024[40]. Strategic Initiatives and Future Outlook - The company expects to realize after-tax net cash proceeds of 85 million from the potential sale of Terphane, pending regulatory approvals[18]. - The company is undergoing a review process for the sale of Terphane, with a maximum deadline set for November 18, 2024[2]. - The company expects to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[34]. - The Surface Protection business is facing a cautious outlook on new product development opportunities due to market uncertainties[44]. Other Financial Metrics - Corporate expenses decreased by 8.7millioninthefirstsixmonthsof2024,primarilyduetolowerpensionexpensesandforeigncurrencytransactiongains[15].−Theeffectivetaxrateforthefirstsixmonthsof2024was17.98.7 million in the first six months of 2024, primarily due to lower pension expenses and foreign currency transaction gains[15]. - The effective tax rate for the first six months of 2024 was 17.9%, up from 13.1% in the same period of 2023, due to pre-tax income compared to a pre-tax loss in 2023[15]. - Interest expense increased to 3.4 million for the three months ended June 30, 2024, compared to 2.4millioninthesameperiodof2023[23].−Thecompanyreportedabasicearningspershareof2.4 million in the same period of 2023[23]. - The company reported a basic earnings per share of 0.26 for the three months ended June 30, 2024, compared to a loss of 0.56pershareinthesameperiodof2023[23].−Thecompanyreportedagainof0.56 per share in the same period of 2023[23]. - The company reported a gain of 144 thousand on investment in kaléo, Inc. for the three months ended June 30, 2024[25].