Tredegar (US:TG)2025-03-12 12:20Financial Performance - Sales increased by 4.3% in 2024, reaching $598.0 million compared to $573.3 million in 2023[79]. - Net income from continuing operations was $1.0 million ($0.03 per diluted share) in 2024, a significant recovery from a net loss of $(99.2) million ($(2.91) per diluted share) in 2023[79]. - EBITDA from ongoing operations for Aluminum Extrusions was $41.4 million, an increase of $3.4 million from 2023, while PE Films saw EBITDA of $30.5 million, up $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 $64,565,000 in 2024, an improvement from a net loss of $105,905,000 in 2023[136]. - Net cash provided by operating activities increased to $25.5 million in 2024 from $24.0 million in 2023, driven by a $22.7 million increase in EBITDA from ongoing operations[139]. - Net cash provided by investing activities was $40.5 million in 2024, a significant increase from net cash used of $26.2 million in 2023, primarily due to $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 $0.2 million in 2024 from $10.8 million in 2023, following the completion of a pension plan termination[89]. - Interest expense reduced to $4.7 million in 2024 from $6.3 million in 2023, attributed to lower total debt outstanding[126]. - Corporate expenses decreased by $9.2 million in 2024, primarily due to lower pension expenses following the pension plan termination[125]. Tax and Debt - The effective tax rate for 2024 was (18.8)%, a decrease from 34.1% in 2023, primarily due to a shift from a pre-tax loss to pre-tax income[91]. - Average total debt outstanding decreased to $117.7 million in 2024 from $148.9 million in 2023, with an increase in average interest rate from 7.1% to 8.9%[96]. - As of December 31, 2024, the Company had outstanding debt under the ABL Facility of $60.6 million, with contractual payments due in June 2026[153]. Goodwill and Impairments - A non-cash goodwill impairment of $13.3 million was recognized in 2024, compared to a $34.9 million impairment in 2023[90]. - The Company recognized a non-cash goodwill write-off of $13.3 million ($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 $76,763,000, down from $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 $17 million in 2025, including $5 million for productivity projects[119]. - Capital expenditures for PE Films are projected to be $3 million in 2025, with $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].