Tredegar Corporation (NYSE:TG, also the “Company” or “Tredegar”) today reported fourth quarter and full year financial results for the period ended December 31, 2020.
Fourth quarter 2020 net income from continuing operations was $6.5 million ($0.19 per diluted share) compared to net income from continuing operations of $1.0 million ($0.03 per diluted share) in the fourth quarter of 2019. Net income from ongoing operations, which excludes special items and discontinued operations, was $9.7 million ($0.29 per diluted share) in the fourth quarter of 2020 and $9.9 million ($0.30 per diluted share) in the fourth quarter of 2019.
Full year 2020 net loss from continuing operations was $16.8 million ($0.51 per diluted share) compared to net income from continuing operations of $58.5 million ($1.76 per diluted share) in 2019. Net income from ongoing operations was $50.8 million ($1.51 per diluted share) in 2020 and $47.6 million ($1.42 per diluted share) in 2019. A reconciliation of net income (loss) from continuing operations, 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, 2020 and 2019, 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 $13.6 million was $0.8 million lower than the fourth quarter of 2019
*EBITDA from ongoing operations for PE Films of $11.2 million was $0.5 million higher than the fourth quarter of 2019
*EBITDA from ongoing operations for Flexible Packaging Films of $8.1 million was $3.8 million higher than the fourth quarter of 2019
John Steitz, Tredegar’s president and chief executive officer, said, “Although 2020 was an extremely challenging year with COVID-19, we believe that it was one of our best. Bonnell Aluminum’s volume and EBITDA from ongoing operations suffered under COVID-19 conditions, yet data indicates that we outperformed the aluminum extrusions industry. Current bookings and backlog are at high levels. Surface Protection’s EBITDA from ongoing operations achieved a record high while facing the headwinds of a significant customer product transition. Surface Protection continues to make progress in generating contribution from sales of new products, applications and customers and implementing cost savings measures. Terphane had record EBITDA since being acquired in October of 2011, and its stellar performance has demonstrated the excellence of the Terphane leadership team.”
Mr. Steitz continued, “At the end of October, we sold the Personal Care business, which was at about the break-even level of EBITDA from ongoing operations, for cash proceeds of approximately $46 million. In December, we supplemented the cash from this sale and the cash that had built up on our balance sheet with borrowings under our revolving credit facility to pay a $200 million, or $5.97 per share, special dividend. In light of our history of strong cash generation, we believe that the related borrowings prudently use financial leverage in a low interest rate environment while also preserving available capital to meet the needs of our business units.”
Mr. Steitz concluded, “We are proud of our performance in 2020 despite COVID-19. But most of all, we are proud of our employees, who have demonstrated their dedication and strong work ethic during these unprecedented times to deliver exceptional performance.”
details at: https://ir.tredegar.com/news-releases/news-release-details/tredegar-reports-fourth-quarter-and-full-year-2020-results