TREDEGAR REPORTS SECOND QUARTER 2020 RESULTS
RICHMOND, VA--(BUSINESS WIRE)--8/6/2020--Tredegar Corporation (NYSE:TG, also the “Company” or “Tredegar”) today reported second quarter financial results for the period ended June 30, 2020.
Second quarter 2020 net income was $11.2 million ($0.33 per share) compared with net income of $14.5 million ($0.44 per share) in the second quarter of 2019. Net income from ongoing operations, which excludes special items, was $14.1 million ($0.42 per share) in the second quarter of 2020 and $11.7 million ($0.35 per share) in the second quarter of 2019. 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 six months ended June 30, 2020 and 2019, is provided in Note (a) of the Notes to the Financial Tables in this press release.
Second Quarter Financial Results Highlights
•Earnings before interest, taxes, depreciation and amortization ("EBITDA") from ongoing operations for Aluminum Extrusions of $13.3 million was $5.3 million lower than the second quarter of 2019
•EBITDA from ongoing operations for PE Films of $15.3 million was $4.2 million higher than the second quarter of 2019
•EBITDA from ongoing operations for Flexible Packaging Films of $6.5 million was $3.6 million higher than the second quarter of 2019
John Steitz, Tredegar’s president and chief executive officer said, “Overall financial results for the second quarter of 2020 were favorable despite COVID-19, which mainly had an adverse impact on our aluminum extrusions business. While our surface protection, flexible packaging and personal care businesses have performed well under COVID-19 to date, its future impact is uncertain.”
Mr. Steitz continued, “Our top priority continues to be the safety of our employees. Our balance sheet remains strong, with cash exceeding debt at the end of the second quarter by $5.9 million for the first time since the acquisition of Terphane in October of 2011.”
On a final note, Mr. Steitz commented, “I’d like to thank all of our employees for their hard work and dedication during these unprecedented times.”
THE IMPACT OF COVID-19
Essential Business and Employee Considerations
The Company’s priorities during the COVID-19 pandemic continue to be to protect the health and safety of employees while keeping its manufacturing sites open due to the essential nature of many of its products. The Company’s businesses have been deemed “essential services,” “critical manufacturers,” and “life sustaining industries” under applicable state or national stay-at-home orders and, therefore, remain operational as of the date of this communication. Within the limitations imposed by the health and safety procedures described below, the Company has continued to manufacture the full range of products at its facilities, including certain products that are components for end-uses that are essential, critical or life sustaining such as: (i) polyester-based materials for flexible food packaging, (ii) polyethylene-based film and laminate materials for personal hygiene and packaging products, (iii) aluminum extrusion parts for hospital beds, FEMA tents, temporary hospital structures and medical equipment, (iv) materials for face masks and face shields, and (v) polyethylene-based films used to protect components of flat panel displays during manufacturing and transportation processes, which are instrumental to allowing employees to work from home.
The Company’s efforts to protect the health and well-being of its employees from COVID-19 began at the Company’s Guangzhou, China facility. Protocols developed at Guangzhou guided the Company's COVID-19 related efforts at other facilities as the outbreak spread beyond China. Those efforts continue to improve as COVID-19 informed work practices evolve and the Company responds to recommended and mandated actions of government and health authorities.
The Company has educated employees about COVID-19 symptoms and hygiene best practices. It has adopted COVID-19 related pay and sick leave policies that incentivize employees to stay home if they feel ill or have been exposed to others with the illness. The Company’s policies include taking an employee’s temperature before entering production facilities; mandating handwashing; requiring social distancing and, where social distancing is difficult, requiring face coverings; streamlining onsite personnel to only those required for production and distribution; strongly encouraging and, where mandated, requiring remote work for all those who can work from home; and disinfecting facilities. In the U.S., the Company has educated employees on COVID-19-related government benefits.
On April 1, 2020, the Company began providing a weekly dashboard to its Board of Directors (the “Board”) highlighting the impacts of COVID-19 on its employees, businesses and financial condition.
The following information was filed by Tredegar Corp (TG) on Thursday, August 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.