Tredegar Corporation · NYSE:TG
Tredegar — Q3 2024 Earnings Presentation
31 slides from Tredegar's earnings presentation, Dec 4, 2024
Slide 1: 2024 Third Quarter Financial Results
2024 Third Quarter Financial Results December 4, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements. Pursuant to federal securities regulations, we have set forth cautionary statements relating to those forward-looking statements in our Annual Report on Form 10-K for the year ended December
Slide 3: Tredegar Completes Sale of Terphane to Oben Group
Tredegar Completes Sale of Terphane to Oben Group On September 1, 2023, Tredegar entered into an agreement to sell Terphane, its flexible packaging films business headquartered in Brazil, to Oben Group (“Oben”) for net cash-free and debt-free base consideration of $116 million. On November 1, 2024,
Slide 4: 2024 Third Quarter and First Nine Months Results
Tredegar Corporation 2024 Third Quarter and First Nine Months Results (in millions) 3Q 2024 YTD 2024 Pro forma Net Sales1 $140.6 $428.2 Pro forma Consolidated EBITDA from Ongoing Operations1 $6.8 $39.2 John Steitz, Tredegar’s president and chief executive officer, said, "Our ongoing operations for t
Slide 5: Aluminum Extrusions (Bonnell Aluminum)
Aluminum Extrusions (Bonnell Aluminum) 2024 Third Quarter and First Nine Months Year Results Third Quarter Performance First Nine Months Performance (in millions) 3Q 24 3Q 23 (in millions) 2024 2023 Volume (lbs.) 34.6 32.5 7% Volume (lbs.) 103.3 105.5 (2)% Net Sales1 $115.7 $109.4 6% Net Sales1 $349
Slide 6: Aluminum Extrusions: Sales Volume by End-Use Market and Open Orders
Aluminum Extrusions (Bonnell Aluminum) Sales Volume by End-Use Market and Open Orders Three Months Three Months Nine Months Ended Favorable/ Ended Favorable/ Ended Favorable/ September 30, (Unfavorable) June 30, (Unfavorable) September 30, (Unfavorable) (In millions of lbs) 2024 2023 % Change 2024 %
Slide 7: Aluminum Extrusions: Open Orders, Net Bookings and ABI Index
Aluminum Extrusions (Bonnell Aluminum) Open Orders, Net Bookings and ABI Index • Open orders at the end of the third quarter of 2024 were 15.5 million pounds (versus 14 million pounds at the end of the second quarter of 2024 and 17 million pounds at the end of the third quarter 2023). This level is
Slide 8: PE Films 2024 Third Quarter and First Nine Months Results
PE Films (Surface Protection, Polyethylene Overwrap Films & Films for Other Markets) 2024 Third Quarter and First Nine Months Results Third Quarter Performance First Nine Months Performance (in millions) 3Q 24 3Q 23 (in millions) 2024 2023 Volume (lbs.) 9.6 7.2 33% Volume (lbs.) 30.2 20.8 45% Net Sa
Slide 9: Total Debt, Financial Leverage and Debt Covenants
Total Debt, Financial Leverage and Debt Covenants Total debt was $143.4 million at September 30, 2024 and $146.3 million at December 31, 2023. Cash, cash equivalents and restricted cash was $6.6 million at September 30, 2024 and $13.5 million at December 31, 2023. Net debt was $136.81 million at Sep
Slide 10: 2024 Year-to-Date Financial Highlights
Tredegar Corporation 2024 Year-to-Date Financial Highlights ($ in millions) Cash Flows provided by operations $6.1 Capital Expenditures (pro forma)1 $5.6 Dividends Paid2 $0.0 Net Debt (pro forma)3 $58.8 ABL Facility availability (pro forma) $38.0 1 Pro forma capital expenditures through September 30
Slide 11: Appendix
‘Tredegar an < ) Appendix
Slide 12: Major Product Groups, End Markets, Customers, Competitors
Major Product Groups Primary End Markets Customers Competitors Aluminum Extrusions Custom designed, fabricated Building and Construction: commercial windows Glazing contractors and Hydro Extrusions North & doors, curtain walls, storefronts & entrances, fabricators America, Kaiser and finished alumin
Slide 13: Tredegar Locations
Tredegar Locations 12
Slide 14: Tredegar at a Glance
Tredegar at a Glance Business Strengths Aluminum Extrusions Industry-leading position in non-residential building and construction and value-added OEM components in North American extrusions market Market-focused manufacturing operations (including aluminum log casting capabilities) and world-cl
Slide 15: Aluminum Extrusions Business Profile
Aluminum Extrusions Business Profile Key Market Drivers • Strong demand for finished products, including anodized, $460 million LTM Net Sales1 painted products and fabricated components 9% • Growing aluminum content in vehicles, driven by CAFE Electrical & (corporate average fuel economy) standards
Slide 16: Index of North American Industry Volume for Bonnell's Key Markets
Aluminum Extrusions Index of North American Industry Volume for Bonnell’s Key Markets Note: Index computations based on Aluminum Association data (1982=1.0). Specialty includes aluminum extrusions sold to consumer durables, electrical and machinery markets. 15
Slide 17: Aluminum Extrusions: Key Markets
Aluminum Extrusions Key Markets - B&C/Automotive/Specialty 16
Slide 18: Automotive Aluminum Extrusion Applications
Aluminum Extrusions Automotive Aluminum Extrusion Applications Crash management systems – beams and mounting plates, crush cans Roof rails Electrical battery trays Air conditioner tube connectors 17 Aluminum Overview Film Products Financials Extrusions
Slide 19: Aluminum Extrusions Annual Historical Financials
Aluminum Extrusions Annual Historical Financials Net Sales1 ($ in millions) 2 EBITDA from Ongoing Ops ($ in millions) 638 $80 67 $600 539 55 56 456 475 460 38 40 $40 $300 $0 $0 2020 2021 2022 2023 LTM 2020 2021 2022 2023 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 300 $30 24 2
Slide 20: PE Films Business Profile
PE Films Business Profile Key Growth Drivers $100 million LTM Net Sales1 • “Internet of Things” leading to greater connectivity and more displays and semiconductors 30% Overwrap • Thinner devices with increasing resolution and larger Packaging screen size • Demographic and workplace trends shifting
Slide 21: End-Use Markets for Surface Protection Products
PE Films End-Use Markets for Surface Protection Products 20
Slide 22: Surface Protection Overview
PE Films Surface Protection Overview Typical LCD Optical Stack (examples: TVs, Smartphones) 21
Slide 23: PE Films Annual Historical Financials
PE Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 45 139 $40 $150 119 28 27 98 100 $100 77 $20 12 11 $50 $0 $0 2020 2021 2022 2023 LTM 2020 2021 2022 2023 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 45 $10 39 39 40 33
Slide 24: Capital Expenditures – History & Projections
Tredegar Corporation Capital Expenditures – History & Projections ($ in millions) 2024 2024 2020 2021 2022 2023 YTD Projection2 Aluminum Extrusions $10.3 $18.9 $23.7 $20.3 $4.5 $8 PE Films1 6.0 3.0 3.3 1.8 1.1 2 Corporate 0.2 (0.1) 1.7 0.0 0.0 0 Total pro forma capital $16.5 $21.9 $28.7 $22.1 $5.6 $
Slide 25: Quarterly Cash Dividend
Tredegar Corporation Quarterly Cash Dividend ($) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Tredegar suspended its quarterly dividend on 8/3/2023. A special dividend of $5.97 per share was paid in 2020 and $0.75 per share was paid in 2012. 24
Slide 26: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 26
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 27
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 28
Slide 30: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 29
Slide 31: GAAP to Non-GAAP Reconciliations: Notes (continued)
GAAP to Non-GAAP Reconciliations Notes (continued): 3. Earnings before interest and taxes ("EBIT") from ongoing operations is a non-GAAP financial measure included in the reconciliation of segment financial information to consolidated results for the Company. It is not intended to represent the stan