Tredegar (US:TG)2025-03-12 12:22Financial Performance - Fourth quarter 2024 net income from continuing operations was $(7.3) million ($(0.21) per diluted share), an improvement from $(34.1) million ($(1.00) per diluted share) in Q4 2023[3]. - Full year 2024 net income from ongoing operations was $17.2 million ($0.50 per diluted share), compared to $(2.0) million ($(0.07) per diluted share) in 2023[4]. - The company reported a net loss of $72.70 million for Q4 2024, compared to a loss of $35.59 million in Q4 2023, highlighting ongoing challenges[44]. - Net income for the year ended December 31, 2024, was a loss of $64.565 million, an improvement from a loss of $105.905 million in 2023, representing a 39% reduction in losses[50]. - As of December 31, 2024, the company reported a net loss from continuing operations of $7.3 million, compared to a loss of $34.1 million in 2023[70]. Sales and Revenue - Tredegar Corporation reported 2024 sales of $598 million, an increase from $573.3 million in 2023, representing a growth of approximately 4.7%[44]. - For Q4 2024, net sales were $154.05 million, compared to $136.17 million in Q4 2023, reflecting a year-over-year increase of about 13.1%[44]. - The Aluminum Extrusions segment generated $471.82 million in sales for 2024, while the PE Films segment saw sales rise to $105.20 million, up from $76.76 million in 2023, indicating a significant growth in the latter segment[46]. - PE Films' net sales for Q4 2024 increased by 27.3% to $26.4 million compared to Q4 2023, driven by a 43% increase in surface protection sales volume[21][23]. - Full year 2024 net sales increased by 37.0% compared to 2023, with surface protection films sales volume up 57%[25]. EBITDA and Operational Performance - EBITDA from ongoing operations for Aluminum Extrusions increased to $9.7 million in Q4 2024, up 21.5% from $8.0 million in Q4 2023[7]. - EBITDA from ongoing operations increased by $3.4 million in 2024 versus 2023, driven by higher contribution margin and favorable variable manufacturing costs[17]. - EBITDA from ongoing operations for the Aluminum Extrusions segment was $41.36 million for 2024, an increase from $37.98 million in 2023, while the PE Films segment's EBITDA rose to $30.49 million from $11.22 million[46]. - Consolidated EBITDA from ongoing operations for the year ended December 31, 2024, was $50.5 million, up from $30.3 million in 2023, reflecting a 66% increase[70]. Debt and Financial Ratios - The company reported a net leverage ratio of 1.1x at the end of 2024, significantly improved from 3.7x at the end of 2023[6]. - Total debt decreased from $126.3 million at the end of 2023 to $61.9 million at the end of 2024, with net debt also decreasing significantly[33][34]. - The fixed charge coverage ratio was reported at 7.80, indicating strong coverage of fixed charges by Credit EBITDA[73]. - The company believes the likelihood of lenders exercising the subjective acceleration clause is remote, as it was in compliance with all debt covenants as of December 31, 2024[68]. Impairments and Goodwill - The Company recognized a non-cash goodwill impairment of $13.3 million related to the Clearfield operation, which fell below its carrying value due to lower sales and profitability projections[19]. - The company experienced a goodwill impairment of $13.27 million in Q4 2024, which contributed to the overall net loss[46]. - The company recognized a goodwill impairment of $34.9 million for the year ended December 31, 2023[63]. - The company reported a goodwill impairment of $13.271 million in 2024, down from $34.891 million in 2023, showing a 62% decrease in impairment charges[50]. Capital Expenditures - Projected capital expenditures for Bonnell Aluminum in 2025 are $17 million, including $5 million for productivity projects and $12 million for continuity of operations[20]. - Projected capital expenditures for PE Films in 2025 are $3 million, with no amortization expense expected[27]. - Capital expenditures decreased to $14.347 million in 2024 from $26.446 million in 2023, reflecting a 45.6% reduction[50]. Tax and Corporate Expenses - The effective tax rate for 2024 was (18.8)%, a decrease from 34.1% in 2023, primarily due to a pre-tax income in 2024 compared to a pre-tax loss in 2023[31]. - Corporate expenses decreased by $9.2 million in 2024 compared to 2023, mainly due to lower pension expenses following a plan termination[29]. Other Notable Events - The Company completed the sale of its flexible packaging films business for $9.8 million, which was $2.8 million higher than expected due to higher cash held at the sold entity[32]. - The company adopted a plan in August 2023 to close the PE Films technical center in Richmond, VA, and will shift future R&D activities to the Pottsville, PA facility[72].