Tredegar (TG)2025-03-12 12:20Financial Performance - Sales increased by 4.3% in 2024, reaching 573.3 million in 2023[79]. - Net income from continuing operations was 0.03 per diluted share) in 2024, a significant recovery from a net loss of (2.91) per diluted share) in 2023[79]. - EBITDA from ongoing operations for Aluminum Extrusions was 3.4 million from 2023, while PE Films saw EBITDA of 19.3 million year-over-year[81]. - Gross profit margin improved to 16.1% in 2024 from 12.4% in 2023, driven by favorable manufacturing costs and higher labor productivity[86]. - PE Films net sales increased by 37.0% in 2024, attributed to higher sales volume and restocking activities[84]. - The company reported a net loss of 105,905,000 in 2023[136]. - Net cash provided by operating activities increased to 24.0 million in 2023, driven by a 40.5 million in 2024, a significant increase from net cash used of 54.6 million from the sale of Terphane[140]. Expenses and Costs - Selling, general and administrative expenses increased by 11.6% year-over-year, while research and development expenses decreased by 75.4%[88]. - Pension and postretirement benefits expense dropped to 10.8 million in 2023, following the completion of a pension plan termination[89]. - Interest expense reduced to 6.3 million in 2023, attributed to lower total debt outstanding[126]. - Corporate expenses decreased by 117.7 million in 2024 from 60.6 million, with contractual payments due in June 2026[153]. Goodwill and Impairments - A non-cash goodwill impairment of 34.9 million impairment in 2023[90]. - The Company recognized a non-cash goodwill write-off of 10.4 million after deferred income tax benefits) related to the Clearfield operation due to lower-than-expected recovery in customer volumes[165]. - The Company performed a goodwill impairment analysis in Q4 2024, indicating that the fair value of Clearfield was below its carrying value by more than the amount of goodwill[165]. Sales and Volume Trends - Sales in 2023 decreased by 24.8% compared to 2022, with net sales in Aluminum Extrusions down 25.6% and PE Films down 21.3% due to lower sales volume and weak demand[99]. - PE Films sales volume decreased by 10.7% in 2023, resulting in net sales of 97,571,000 in 2022[131]. - Sales volume for surface protection films surged by 57% in 2024, driven by high demand and inventory restocking[121]. Future Projections and Plans - Projected capital expenditures for Bonnell Aluminum are 5 million for productivity projects[119]. - Capital expenditures for PE Films are projected to be 2 million allocated for productivity projects[124]. - The Company believes it has adequate supply agreements for aluminum and other product cost components in 2025[117]. Employee and Compliance - Approximately 20% of the Company's employees are represented by labor unions in the U.S., with a new collective bargaining agreement ratified in January 2025[26]. - The Company has on-site health clinics at its Carthage and Clearfield facilities, serving over 600 employees[28]. - Tredegar's compliance with environmental regulations may require significant future capital expenditures, although current compliance has not necessitated such costs[24].