TREDEGAR REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS
RICHMOND, VA--(BUSINESS WIRE)--March 16, 2020--Tredegar Corporation (NYSE:TG, also the “Company” or “Tredegar”) today reported fourth quarter and full year financial results for the period ended December 31, 2019.
Fourth quarter 2019 net loss was $3.1 million ($0.09 per share) compared with net income of $26.2 million ($0.79 per share) in the fourth quarter of 2018. Net income from ongoing operations, which excludes special items, was $7.2 million ($0.22 per share) in the fourth quarter of 2019 and $14.2 million ($0.43 per share) in the fourth quarter of 2018. Full year 2019 net income was $48.3 million ($1.45 per share) compared with net income of $24.8 million ($0.75 per share) in 2018. Net income from ongoing operations, which excludes special items, was $37.6 million ($1.13 per share) in 2019 and $47.3 million ($1.43 per share) in 2018. A reconciliation of net income (loss), a financial measure calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), to net income from ongoing operations, a non-GAAP financial measure, for the three and twelve months ended December 31, 2019 and 2018, is provided in Note (a) of the Notes to the Financial Tables in this press release.
Fourth Quarter Financial Results Highlights
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from ongoing operations for Aluminum Extrusions of $14.5 million was $3.4 million lower than the fourth quarter of 2018
EBITDA from ongoing operations for PE Films of $9.5 million was $3.5 million lower than the fourth quarter of 2018
EBITDA from ongoing operations for Flexible Packaging Films of $4.3 million was $0.7 million higher than the fourth quarter of 2018
John Steitz, Tredegar’s president and chief executive officer, said, “Bonnell Aluminum’s full year operating results in 2019 beat 2018 despite softness in its markets. Delivering value to customers and managing operations and costs to levels consistent with sales continue to be priorities. Our Surface Protection component of PE Films achieved record profit in 2019 with the continued delay of a possible customer product transition, obtaining new business and cost improvements.”
Mr. Steitz continued, “Our Personal Care component of PE Films in 2019 mostly mitigated the adverse impact of missed sales and margin goals with cost reduction efforts. The Personal Care team continues to be focused on business development activities. In this regard, they recently completed a contract extension with a key customer for sales through at least 2022 that we previously thought might be lost in 2020. Terphane’s turnaround, which began in 2018, continued into 2019. We look forward to further improvements at Terphane.”
Mr. Steitz further stated, “Tredegar’s overall cash generation in 2019 was truly exceptional with debt net of cash declining by $57 million.”
Aluminum Extrusions, which is also referred to as Bonnell Aluminum, produces high-quality, soft-alloy and medium-strength aluminum extrusions primarily for the following markets: building and construction, automotive, and specialty (which consists of consumer durables, machinery and equipment, electrical and distribution end-use products).