Workflow
Tredegar's Q3 Loss Narrows Y/Y, PE Films Drives Revenue Growth
TGTredegar (TG) ZACKS·2024-11-11 19:10

Core Viewpoint - Tredegar Corporation reported a narrower net loss in Q3 2024 compared to the same quarter in 2023, with increased revenues driven by its Aluminum Extrusions and PE Films segments [1][2] Financial Performance - The company incurred a net loss of 0.11pershare,animprovementfromalossof0.11 per share, an improvement from a loss of 1.47 per share in Q3 2023 [1] - Revenues increased to 182.1million,a9.5182.1 million, a 9.5% rise from 166.2 million in Q3 2023 [1] - Net income from ongoing operations was slightly positive at 0.2million,comparedtoanetlossof0.2 million, compared to a net loss of 5.1 million in the prior-year quarter [1] Business Segment Performance - Aluminum Extrusions: Revenues reached 115.7million,a5.8115.7 million, a 5.8% increase year over year, with a 6.5% rise in sales volume. EBITDA rose to 6.2 million from 5.1millioninQ32023[4]−∗∗PEFilms∗∗:Salesvolumesurged33.45.1 million in Q3 2023 [4] - **PE Films**: Sales volume surged 33.4% year over year, with revenues rising to 24.9 million, a 24.8% improvement. EBITDA jumped 45.6% to 5.9million[6]ChallengesandCostManagement−TheAluminumExtrusionssegmentfacedincreasedoperationalcostsandcompetitivepressures,impactingmarginsdespitehighersalesvolumes[2][8]−HighermetalcostsaffectedAluminumExtrusions,butefficientcostmanagementhelpedmitigatesomeimpacts[8]BalanceSheetPosition−AsofSeptember30,2024,cashandcashequivalentswere5.9 million [6] Challenges and Cost Management - The Aluminum Extrusions segment faced increased operational costs and competitive pressures, impacting margins despite higher sales volumes [2][8] - Higher metal costs affected Aluminum Extrusions, but efficient cost management helped mitigate some impacts [8] Balance Sheet Position - As of September 30, 2024, cash and cash equivalents were 2.7 million, down from 9.7millionattheendof2023[8]−Totalassetswere9.7 million at the end of 2023 [8] - Total assets were 442.5 million, slightly lower than 446.5millionatyear−end2023,withlong−termdebtsteadyat446.5 million at year-end 2023, with long-term debt steady at 20 million [9] Cash Flows - Net cash from operations in the first nine months of 2024 was 6.1million,significantlylowerthan6.1 million, significantly lower than 44.2 million in the same period of 2023 [10] Management Guidance - Management expects ongoing cost pressures and competitive challenges in the Aluminum Extrusions segment, with capital expenditure controls projected at 8millionforAluminumExtrusionsand8 million for Aluminum Extrusions and 2 million for PE Films in 2024 [11] Other Developments - The divestiture of Terphane, completed on November 1, 2024, yielded an immediate cash inflow of $60 million, streamlining the company's focus on core segments [12] - An adverse ruling by the U.S. International Trade Commission on tariffs for imported aluminum extrusions poses ongoing competitive pressure [13]