Tredegar Reports Second Quarter 2021 Results

Second quarter 2021 net income from continuing operations was $20.7 million ($0.61 per diluted share) compared to net income from continuing operations of $14.3 million ($0.43 per diluted share) in the second quarter of 2020. Net income from ongoing operations, which excludes special items and discontinued operations, was $16.1 million ($0.48 per diluted share) in the second quarter of 2021 compared with $16.0 million ($0.48 per diluted share) in the second quarter of 2020. 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 six months ended June 30, 2021 and 2020, is provided in Note (a) of the Notes to the Financial Tables in this press release.

Second Quarter Financial Results Highlight
*Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from ongoing operations for Aluminum Extrusions of $19.7 million was $6.4 million higher than the second quarter of 2020
*EBITDA from ongoing operations for PE Films of $9.0 million was $6.5 million lower than the second quarter of 2020
*EBITDA from ongoing operations for Flexible Packaging Films of $8.3 million was $1.8 million higher than the second quarter of 2020

John Steitz, Tredegar’s president and chief executive officer, said, “Bonnell’s performance in the second quarter improved considerably over last year with current bookings and backlog at record levels. Labor shortages at manufacturing facilities continue to be an issue. As anticipated and previously disclosed, operating results in PE Films suffered from a significant customer product transition. Terphane’s profitability increased due to improvement in costs and product mix despite volume declines from temporary resin supply issues and customer inventory corrections.”

Mr. Steitz further stated, “Debt net of cash, which fell below $100 million as of June 30, declined by $22 million during the second quarter as a result of strong cash generation.”

Bonnell Aluminum continues to experience higher than normal absenteeism and hiring difficulties, which it attributes to COVID-19-related factors. Bonnell Aluminum attempts to match its direct labor with demand and is facing difficulty maintaining sufficient labor to meet desired shipment levels.

All three of the Company’s business units are managing through supply chain disruptions, including raw material cost increases, shortages in aluminum and plastic resin and transportation delays. To offset growing cost pressures, Bonnell Aluminum implemented its second selling price increase in 2021, which became effective on April 26, 2021. In response to unprecedented cost increases and supply issues for polyethylene and polypropylene resin, Tredegar Surface Protection implemented a quarterly resin cost pass-through mechanism, effective July 1, 2021, for all products and customers not previously covered by such arrangements.
details at: https://ir.tredegar.com/news-releases/news-release-details/tredegar-reports-second-quarter-2021-results

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