Tredegar (US:TG)2024-05-09 12:23Financial Performance - First quarter 2024 net income was $3.3 million ($0.10 per diluted share), compared to a net loss of $(1.0) million ($(0.03) per diluted share) in Q1 2023[3] - Net income for Q1 2024 was $3,288 thousand, compared to a net loss of $1,009 thousand in Q1 2023[45] - For the three months ended March 31, 2024, net income from ongoing operations was $5.6 million, compared to $2.5 million for the same period in 2023, representing a 124% increase[67] - The effective tax rate for Q1 2024 was 16.7%, a significant change from (48.8)% in Q1 2023, due to a shift from a pre-tax loss to pre-tax income[29] - The effective tax rate for net income from ongoing operations was 19.0% for Q1 2024, compared to 34.2% for Q1 2023[64] Sales and Orders - Net new orders for aluminum extruded products increased by 61% in Q1 2024 compared to Q1 2023, marking the sixth consecutive quarterly increase[11] - Total net sales for the three months ended March 31, 2024, were $169.07 million, an increase of 18% compared to the same period in 2023[47] - Net sales decreased by 4.5% to $30,113 thousand in Q1 2024 from $31,527 thousand in Q1 2023, primarily due to lower selling prices and unfavorable product mix[24] - Sales volume for Flexible Packaging Films increased by 10.7% to 21,973 thousand lbs in Q1 2024 compared to 19,845 thousand lbs in Q1 2023[23] - Surface Protection sales volume increased by 43% in Q1 2024 compared to Q1 2023, indicating a recovery in the consumer electronics market[19] EBITDA and Operational Metrics - EBITDA from ongoing operations for Aluminum Extrusions was $12.5 million in Q1 2024, down from $14.6 million in Q1 2023, with sales volume decreasing by 9.9%[6] - PE Films achieved EBITDA of $6.9 million in Q1 2024, significantly up from $1.8 million in Q1 2023, driven by a 36.2% increase in sales volume[20] - EBITDA from ongoing operations rose by 45.4% to $1,963 thousand in Q1 2024, up from $1,350 thousand in Q1 2023[23] - Consolidated EBITDA from ongoing operations for Q1 2024 was $17.1 million, up from $13.1 million in Q1 2023, indicating a 30.6% growth[67] Debt and Liquidity - Total debt increased to $148.3 million as of March 31, 2024, up from $146.3 million at December 31, 2023[32] - The company reported a net debt of $143.5 million as of March 31, 2024, an increase from $132.8 million at the end of 2023[64] - The company remains in compliance with all covenants under its $180 million asset-based credit agreement maturing June 30, 2026[34] - The liquidity available under the new asset-based lending facility has met expectations, supporting the company through the downturn[5] Capital Expenditures and Future Projections - Projected capital expenditures for Bonnell Aluminum in 2024 are $9 million, including $4 million for productivity projects[16] - Capital expenditures for Flexible Packaging Films are projected to be $4 million in 2024, with depreciation expense projected at $3 million[26] - The company expects depreciation expense of $16 million and amortization expense of $2 million in 2024[16] Corporate Developments - The company is advancing the sale of Terphane, with the process including reviews by competition authorities in Brazil[5] - The company expects to realize after-tax net debt-free cash proceeds of $85 million from the potential sale of Terphane, pending regulatory approvals[31] - The company received $47.1 million from the sale of its investment interests in kaléo, with an additional $0.3 million received in January 2023[63] Cash Flow and Working Capital - Cash and cash equivalents decreased to $3.49 million from $9.66 million at the end of December 2023[49] - Accounts receivable increased to $73.03 million, up from $67.94 million at the end of 2023[49] - Inventories rose to $86.82 million, compared to $82.04 million at the end of December 2023[49] - Total current liabilities decreased to $239.43 million from $249.10 million at the end of 2023[49] - The company reported a net cash used in operating activities of $7.72 million for the quarter, an improvement from $9.11 million in the prior year[51] Operational Focus - The company plans to continue focusing on operational improvements and cost management strategies to enhance profitability moving forward[53] - The company has not included pension expense in calculating EBITDA since 2022, which may affect future financial metrics[66]