Tredegar Corporation (TG)

United States Securities and Exchange Commission, Washington, DC 20135 form 8-
K current report submitted under section 13th or 15 (d)
Date of report of the Securities Trading Act of 1934 (
Date of reporting the earliest event)
August 2, 2017 (August 1, 2017)
Zhuo Dejia company
The exact name of the registrant specified in the articles of association)Virginia 1-10258 54-1497771 (
Registered State or other jurisdiction)(
Commission file number)(
IRS employer identification number)
1100 Boulder Avenue, Richmond, 23225 Virginia (
Main executive office address)(Zip Code)
The registrant\'s telephone number, including the area code :(804)330-1000 (
If there has been a change since the last report, previous name or previous address)
If form 8-, please check the appropriate box below
K is intended to simultaneously fulfill the registrant\'s filing obligations under any of the following terms (
Please see general instructions. 2. below)
: O written communications under Rule 425 of the Securities Act (17 CFR 230. 425)
O request materials under Section 14a
12 according to the Transaction Act (17 CFR 240. 14a-12)o Pre-
According to Rule 14-2(b)
Under the transaction act (17 CFR 240. 14d-2(b))o Pre-
According to Rule 13e-4(c)
Under the transaction act (17 CFR 240. 13e-4(c))
Indicate whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.
This Chapter 405)or Rule 12b-
Article 2 of the securities trading Law of 1934 (§240. 12b-
2 of this chapter).
If an emerging growth company, indicate by check mark whether the registrant chooses not to use the extended transition period to comply with any new or revised financial accounting standards provided under section 13 (a)
The Trading Act. ¨ Item 2.
On August 1, 2017, Tredegar Corporation released its results and financial position for the second quarter ended June 30, 2017.
The press release issued by Tredegar Corporation is provided as Exhibit 99 and incorporated as a reference, which contains the announcement.
According to general instruction B. 2 of Form 8-
K, information in item 2.
Current Report on Form 8 02-
K, including Exhibit 99, shall not be deemed to be \"submitted\" for the purposes of the amended section of the Securities Trading Act of 1934, or otherwise bound by the liability of that section, nor shall it be incorporated into any filing or other document in accordance with the Securities Act of 1933, as amended, unless specified in the document or document. Item 9.
01 financial statements and exhibits. (d)Exhibits. Exhibit No.
Note 99 press release dated August 1, 2017 (
Provided according to item 2. 02).
As required by the revised Securities Trading Act of 1934, the registrant has officially authorized the signatory to sign this report on its behalf.
Zhuo Dejia companyRegistrant)
Date: August 2, 2017:/s/D.
Andrew Edwards
Vice President and Chief Financial Officer Andrew Edwards
Note 99 press release dated August 1, 2017 (
Provided according to item 2. 02).
Zhuo Dejia Report second
Richmond, quarterly results for VA-2017-(BUSINESS WIRE)--August1, 2017 --
Zhuo Dejia company
New York Stock Exchange: TG, also \"Company\" or \"Tredegar \")
Second report today
Financial results for the quarter ended June 30, 2017.
Net income for the second quarter was $2017. 2 million ($1. 34 per share)
Compared with net income of $3. 4 million ($0. 10 per share)
The second quarter of 2016.
Net continuing Operating income for special items not included in the table below is $8. 3 million ($0. 25 per share)
Compared to $4, 2017. 4 million ($0. 13 per share)
The second quarter of 2016.
Reconciliation of net income, which is a financial measure calculated based on the situation in the United StatesS.
Principles of recognized accounting (“GAAP”)
From the net income of the ongoing business
The GAAP financial indicators for the three and six months ended June 30, 2017 and 2016 are as follows :(
Millions, except for data per share)
On June 30, three months and six months ended, on June 30, 2017, 2016 2017 2016 net reported accounting principles $44. 2 $ 3. 4 $ 47. 9 $ 10. 7 After-
Tax impact of: losses related to factory shutdown, asset impairment and restructuring0. 9 0. 6 1. 6 (Gains)
Losses caused by the sale of assets and other assets: Unrealized gains related to kalo investments (15. 7 )(0. 3 )(18. 2 )(1. 1 )
Proceeds related to the settlement custody agreement (11. 9 )—(11. 9 )—
Income tax benefits related to writing
Based on the stock of an American companyS. subsidiary (8. 1 )—(8. 1 )—Other (0. 2 )0. 4 4. 0 0.
Net income from continuing operations * $8. 3 $ 4. 4 $ 14. 3 $ 11.
Earnings per share reported by GAAP (diluted)$ 1. 34 $ 0. 10 $ 1. 45 $ 0. 33 After-
Tax impact of diluted share: losses related to factory shutdown, asset impairment and restructuring0. 03 0. 02 0. 05 (Gains)
Losses caused by the sale of assets and other assets: Unrealized gains related to kalo investments (0. 47 )(0. 01 )(0. 55 )(0. 03 )
Proceeds related to the settlement custody agreement (0. 36 )—(0. 36 )—
Income tax benefits related to writing
Based on the stock of an American companyS. subsidiary (0. 25 )—(0. 25 )—Other (0. 01 )0. 01 0. 12 0.
Earnings per share for continued operations (diluted)* $ 0. 25 $ 0. 13 $ 0. 43 $ 0.
37 * Please see the notes of the financial form in this press release for more details on special items that align net income and net income for continuing operations and earnings per share with earnings per share for continuing operations.
Highlights of 2017 in the second quarter include: Bonnell aluminum\'s operating profit of $11. 8 million (including $2.
8 million related to the acquisition of future industrial companies (“Futura”)in mid-February 2017), was $0.
It was 9 million higher than in second quarter of 2016, as PE films made a continuing operating profit of $10.
7 million is $6.
The ongoing loss of flexible packaging film operations increased by $4 million compared to 2016.
3 million, at a price of $0.
Compared with the operating losses incurred in second quarter of 2016, it was 6 million.
John Gottwald, president and chief executive of Tredegar, said, \"the earnings per share for continued operations in the second quarter were 12 cents higher than 2016, mainly due to the strong performance of surface protection components in our polyethylene film division, improvements in the tablet display market have driven this trend.
Given the risk that previously disclosed customer products may transition to lower-cost alternative processes or materials, we remain cautious about the future prospects of surface protection. ” Mr.
Gottwald further said, \"As a result of the acquisition of Futura earlier this year, our aluminum profile business showed an increase in profit, which was offset by a decline in profit from the legacy Bonnell business.
Due to overcapacity in the industry, Terphane continues to struggle with profitability, especially in Latin America.
Drew Edwards, chief financial officer at Tredegar, further commented on the results of 2017 in the second quarter, \"We have several important special income programs that have affected the results of our report in the United States. S. GAAP.
Based on recent favourable results and projections, approximately 20% of our ownership interest in kale o was calculated at $21 this quarter, based on the fair value approach.
After tax, 5 million or 47 cents per share.
Shares in Caleo are not publicly traded.
In this case, valuation estimates are more of an art than science, which, while carried out in good faith, is based on projection assumptions with a broad range of possible outcomes.
In the end, the true value of our ownership interest in kalo will be determined at the time of the liquidity event. ” Mr.
\"Our America,\" Edwards continued. S.
GAAP revenue for the quarter also includes two other important non-
Operating income program.
We confirmed the $11 gain.
After settlement of outstanding hosting arrangements, 9 million or 36 cents per share.
In addition, according to the established tax law, we received a tax discount of $8.
1 million or 25 cents per share related to ordinary tax losses
The tax basis for one of our US stocksS. subsidiaries.
\"The operation review PE film consists of personal care materials, surface protective film, polyethylene plastic wrap and film from other markets.
The second summary
Quarterly and Annualto-
Date operation results of PE film continuous operation are as follows: end of three monthsUnfavorable)
End of 6 months offer /(Unfavorable)% Change (
In thousands, except for the percentage)
June 30 in June 30, 2017 2016 2017 2016 sales (lbs)
34,166 34,5741. 2 )
% 69,222 72,460 (4. 5 )
Net sales were $89,639 and $80,813.
9% $176,050 $169,295 4.
0% continuous operation of business profit 10,682 dollar 4,318 147 dollars.
4% $19,713 $14,553 35. 5 % Second-
Quarterly results and
Net sales for the second quarter (
Sales less freight)
In the second quarter of 2017, $8 was added.
The main reasons for 8 million and 2016 are: the increase in the income of surface protective film ($5. 7 million)
Mainly due to the strength of the LCD market and the improvement of the sales mix;
The elasticity and acquisition of distribution layer materials are larger in volume, and the sales mix of personal care materials is also better ($5. 2 million)
, Partially offset by a reduction in known lost business in personal care ($1. 2 million)
By the end of 2016, the number of outer packaging products will be reduced ($0. 8 million).
Operating profit from continued operations increased by $6 in the second quarter of 2017.
4 million compared with 2016, the main reason is that the contribution of the surface protective film to profit has increased by 2 times ($5. 5 million)
Mainly due to the increase in sales volume, sales mix and production efficiency;
The profit contribution of personal care materials is high ($2. 5 million)
Mainly due to a favourable combination, partially offset by the loss Business known in personal care ($0. 7 million);
High sales and general expenses ($1. 2 million)
Mainly related to recruitment and employee incentive costs;
Achieve cost savings of $0.
6 million related to the previously announced project to integrate domestic PE film manufacturing facilities (
Integration of facilities in North America \").
The merger of headquarters in North America is expected to take place in the fourth quarter of 2017.
After completion, the estimated cost of pre-tax cash saved per year is about 5-6 million.
Total pre-tax cash expenditure for these multiple projects
The annual project is expected to be approximately $17 million (
Including capital expenditure of $11 million), of which $14.
As at June 30, 2017, expenditure had reached 4 million euros.
The surface protection operation section of the report section PE film supports manufacturers of optical and other special substrates used in flat panel display products.
These films are mainly used by customers to protect Display parts during manufacturing and transportation and then discard them.
As mentioned earlier, the company believes that in the next few years, due to the potential transition of future customer products to alternative processes or materials with lower costs, part of the film used for surface protection applications will be eliminated with increased risk.
The company initially estimates that the annual adverse impact of alternative processes or materials transferred from customers to surface protection on continued operating profits is as high as $5 to $10 million.
Given the technical and commercial complexities involved in bringing these alternative processes or materials to the market, the company is very uncertain about the time and final number of possible transitions.
In response, the company is actively seeking new surface protection products, applications and customers.
The company continues to anticipate a significant additional product transformation in its personal care business after 2018, which may adversely affect ongoing operating profits, but the impact is still uncertain.
The competitive dynamics of the personal care business require customers to continuously develop new materials, including leading global and regional individual care producers.
From the beginning of creativity to the commercial of products, the product development process of personal care materials is usually 24 to 48 months.
R & D spending on PE films has increased significantly over the past few years, with approximately $12 million in 2014, $16 million in 2015 and $19 million in 2016.
R & D spending in 2017 is expected to be comparable to 2016.
The amount expected to have an impact on the lost business and future profits of the product transition is provided on a stand
Any potential compensation such as sales growth, cost reduction or new product development is not included. Year-To-Date Results
Last year-To-
Net sales for the first six months of 2017 increased by $6.
8 million to 2016, the main reason is: the increase in sales of Surface protective film ($7. 1 million)
Mainly due to the increase in sales volume and good sales mix;
The number of materials purchased in the distribution layer has increased, and the sales combination of personal care materials is good ($5. 4 million)
, Partially offset by a reduction in the known personal care business that was basically completed at the end of 2016 ($5. 1 million);
The net volume mainly related to other personal care materials is low ($0. 7 million).
3 Operating profit for the first six months of 2017 increased by $5.
2 million compared with the first six months of 2016, the main reason is that the surface protective film has a higher contribution to profit ($6. 0 million)
Mainly in the second quarter, mainly due to increased sales, favorable sales mix and improved production efficiency;
Personal care materials and other PE film products contribute more to profits ($1. 7 million)
Mainly due to the improvement in volume and inflation
Driving up prices, exceeding the known loss of personal care business ($2. 0 million);
Unfavorable lag in passing-
The average resin cost is $0.
The first six months of 2017 were $7 million, compared with the unfavorable lag of $0.
2016 2 million;
Cost savings of $1.
0 million is related to the previously announced project to integrate PE membrane domestic manufacturing facilities, exceeding the increase in net general, sales and factory expenses ($1. 3 million)
Mainly related to the increase in strategic recruitment and employee incentive costs.
Capital expenditure, depreciation and amortization capital expenditure for PE films is $7.
The first six months of 2017 were $8 million, compared to $13.
The first six months of 2016 were 9 million.
PE Films currently estimates that total capital expenditures for 2017 will be $26 million, including approximately $10 million in day-to-day capital expenditures required to support operations.
Capital expenditures for strategic projects in 2017 include, in addition to other growth and strategic projects, flexibility and capacity expansion to acquire distribution layer materials.
The depreciation cost is $6.
The first six months of 2017 were $9 million, $6.
The first six months of 2016 were 6 million.
The depreciation expense for 2017 is expected to be $15 million.
The flexible packaging film, also known as Terphane, produces polyester fibers-
For special properties (such as heat resistance, strength, barrier protection and acceptance of high-
Print graphic quality.
Summary of the second quarter and the second yearto-
The results of the operation of Terphane\'s continuous operation are as follows: Three Months EndUnfavorable)
End of 6 months offer /(Unfavorable)% Change (
In thousands, except for the percentage)
June 30 in June 30, 2017 2016 2017 2016 sales (lbs)
21,966 22,3551. 7 )
% 44,028 43,017 2.
4% network for $26,588, $27,207 (2. 3 )
$53,297 $53,585 (0. 5 )
% Of operating profit (loss)
From the ongoing business319 )$ (942 )66. 1 % $ (2,317 )
$1,090 nanoseconds-
Quarterly results and
Sales fell 1 in the second quarter of last year.
Due to the decline in export sales, 2017 increased by 7% compared with 2016.
Net sales fell 2 in the second quarter of 2017.
3% compared to 2016, this is due to a decline in sales and a decline in prices in a highly competitive market, partially offset by a favourable sales mix.
In the second quarter of 2017, Terphane\'s ongoing operating results showed that operating costs increased by $0.
6 million compared with 2016, the main reason is that foreign currency trading income is $0.
The second quarter of 2017 was $2 million.
6 million of losses in the second quarter of 2016, related to the United StatesS.
Brazilian export sales in dollar terms;
4 unfavorable lag in Guanzhong-
The cost of raw materials is $1.
The second quarter of 2017 was $0, while the favorable lag was $0.
2016 2 million.
The company expects Terphane\'s future operating results to continue to fluctuate until industry capacity utilization and Latin American competition improve.
Additional capacity from Latin American competitors is expected to increase --
Line up in the third quarter of 2017. A non-
Cash Impairment expenses related to intangible assets of Terphane\'s trade name (balance of $6.
3 million in June 30, 2017)
Based on expectations for the future prospects of the business, depreciable and amortized assets may be triggered. Year-To-Date Results
Last year-To-
The sales volume increased by 2 as a result of the date.
4% the first six months of 2017, compared with the first six months of 2016, were mainly due to increased trading volume in markets outside Brazil in 2017.
Net sales fell by 0 in the first six months of 2017.
5% compared with the first six months of 2016, this is due to the lower prices in the competitive market, the less favorable sales mix, and partly offset by higher sales.
Terphane lost $2 in the first six months of 2017 due to ongoing business.
3 million, while operating profit for the first six months of 2016 was $1. 1 million .
Unfavorable change of $3.
4 million the main reasons for this period are: competitive pricing pressures, mainly related to the industry\'s continued excess global capacity, resulting in lower profit margins (
Especially in Latin America)
The unfavorable economic situation in Brazil and the lowthan-
Planned production in the first quarter of 2017 was partially offset by an increase in production (
Net adverse effects of $0. 6 million);
Foreign currency trading lost $0.
The first six months of 2017 were $1 million, compared to $3.
3 million of losses in the first six months of 2016 are related to the United StatesS.
Brazilian export sales in dollar terms;
Unfavorable lag in passing-
The cost of raw materials is $2.
The $1 million in the first six months of 2017 compared with the favorable lag of $1.
2016 2 million;
Costs and fees increased by $2.
8 million is mainly related to the adverse effects of high inflation in Brazil and the appreciation of the Brazilian real\'s average exchange rate against the United States by about 17%. S. Dollar.
Terphane\'s capital expenditure, depreciation and amortization capital expenditure is $1.
Compared with $1, the first six months of 2017 were $2 million.
The first six months of 2016 were 2 million.
Terphane currently estimates that the total capital expenditure for 2017 will be $3 million, all for the regular capital expenditure required to support the business.
The depreciation cost is $3.
The first six months of 2017 were $7 million and $3.
The first six months of 2016 were 1 million.
The depreciation expense for 2017 is expected to be $7 million.
Amortization costs $1.
The first six months of 2017 were $5 million and $1.
In the first six months of 2016, it was $4 million and is expected to be $3 million in 2017.
5 aluminum extrusion, including AACOA, Inc. , Bonnell aluminum and its operations.
And the future, high productionquality, soft-
Alloy and medium
Mainly used for strength aluminum profiles in construction and construction, automobile, consumer durables, machinery and equipment, electrical and distribution markets.
On February 15, 2017, Bonnell Aluminum acquired Futura with net debt-
A free base of about $92 million.
The amount actually contributed in cash on the trading day is about $87.
0 million, deducting the initial closing adjustment of working capital and seller\'s transactions
Bonnell Aluminum assumes and subsequently pays the relevant obligations.
If the company does not meet certain performance requirements for the 5 million fiscal year, the company may be refunded up to $2017.
The acquisition was funded using Tredegar\'s secured revolving credit agreement and is considered an asset purchase in the United StatesS.
Purpose of federal income tax.
The second summary
Quarterly and Annualto-
The following provides the date results of the ongoing aluminum extrusion operation, including the results of future from the date of acquisition: benefits after three months /(Unfavorable)
End of 6 months offer /(Unfavorable)% Change (
In thousands, except for the percentage)
June 30 in June 30, 2017 2016 2017 2016 sales (lbs)
* 44,962 44,855 0.
2% 87,357 86,323 1.
2% Net sale $123,208 $93,447 months.
8% $222,807 $178,920 24.
5% operating profit of $11,772, $10,859.
4% 21,601 dollars 18,359 dollars
7% * excluding sales related to future acquired in February 15, 2017. Second-
Quarterly results and
Net sales increased in the second quarter of last year in 2017, mainly due to the addition of Futura, net sales increased by 2016.
Net sales for Futura are $22.
The second quarter of 2017 was 5 million.
Excluding the impact of the future, the net sales are higher, mainly due to pass-
Through customers in higher markets
Cost-driven raw materials.
Organic volume (
Excluding the impact of future acquisitions)
The second quarter of 2017 was relatively flat at 2016 per cent.
The increase in the number of professional markets is mainly offset by the decrease in the construction and automobile markets.
The Company believes that the decline in sales in these markets is largely related to the timing of customer orders.
Mainly due to rising prices in the aluminum market, the average net sales price rose, which had a favorable impact on the net sales of $7. 9 million.
Operating profit for continued operations increased by $0 in the second quarter of 2017.
Compared with 2016, it was 9 million.
Excluding the beneficial profit impact of the future ($2. 8 million)
Operating profit for continued operations decreased by $1.
9 million, mainly due to higher operating costs including supplies and maintenance, utilities and employees --
Related expenses were partially offset by higher inflation-
Related Sales price after deducting the increased material cost ($0. 8 million).
In addition, the operating profit is low due to normal production interruption ($1. 0 million)
Related to the transition of the new extrusion line in Niles, Michigan, which starts the ramp-
Rose at the end of the second quarter. 6 Year-To-Date Results
Last year-To-
Net sales increased by $43 in the first half of 2017.
9 million to 2016 is mainly due to the addition of Futura.
Net sales for Futura are $30.
The company\'s share price has risen 8 million since its acquisition in 2017.
Excluding the impact of the future, the net sales are higher, mainly due to pass-
Through customers in higher markets
The cost and output of raw materials increased slightly.
Mainly due to rising prices in the aluminum market, the average net sales price rose, which had a favorable impact on the net sales of $12. 4 million.
Organic volume (
Excluding the impact of future acquisitions)
The first half of 2017 increased slightly compared with 2016.
Sales growth in the professional and automotive markets was offset by declines in the construction and construction markets.
The Company believes that,to-
The date sales volume of this market is mainly due to downtime related to the upgrade of the paint production line serving this market in the first quarter and the time of customer orders in the second quarter.
Operating profit for the first half of 2017 continued to operate increased by $3.
Compared to the first half of 2016, 2 million per cent.
Excluding the beneficial profit impact of the future ($3. 8 million)
Operating profit for continued operations decreased by $0.
6 million, mainly due to the disruption of normal production due to the transition of the new extrusion line in Niles, Michigan, which starts the ramp
Rose at the end of the second quarter.
On June 29, 2016, an explosion occurred in the foundry of Bonnell aluminum plant in Newnan, Georgia, injuring five employees.
The explosion caused significant damage to the foundry and related equipment.
The company is replacing damaged casting equipment and is expected to resume production in 2017.
The Newnan plant is currently sourcing raw materials for the extrusion process from other Bonnell factories and third-party suppliers.
Bonnell Aluminum has various forms of insurance to cover losses associated with such events.
In the first six months of 2017, Bonnell spent $4.
Additional costs of 2 million related to the explosion and $4.
1 million of this amount has been fully offset by the expected insurance recovery.
Also, $0.
6 million of the additional costs incurred in 2016 are not reasonably guaranteed to be covered by insurance recovery and are now expected to be recovered and included in the costs of \"factory shutdown, impairment of assets\" as offset, restructuring and others in net sales and operating profits by market segment, and \"cost of goods sold\" in condensed consolidated income statements \".
With the progress of the insurance recovery process, more insurance recovery is expected.
In the second half of 2017, Bonnell is expected to record gains related to the involuntary conversion of old actor homes.
The capital expenditure, depreciation and amortization capital expenditure of Bonnell aluminum is $17.
7 million six months before 2017 (including $0.
9 million related to it since the acquisition of Futura)
By contrast, $3.
The first six months of 2016 were 6 million.
Estimated total capital expenditure for 2017 was $25 million, including $9 million to complete the extrusion capacity expansion project at the Niles plant in Michigan, and to repair the expenses for damage caused by the explosion of Foundry houses, deduct the relevant insurance recovery rate (
Insurance reimbursement will not include a facility upgrade of approximately $2 million)
$9 million is spent on regular projects needed to support legacy businesses and $2 million is used to support future\'s businesses.
The depreciation cost is $5.
3 million for the first six months of 2017, including $1.
Compared to $4, Futura increased by 1 million.
In the first six months of 2016, it was $1 million and is expected to be $11 million in 2017.
Amortization costs $1.
The first six months of 2017 were $4 million, including $0.
8 million new from Futura, $0.
In the first six months of 2016, it was $5 million and is expected to be $3 million in 2017.
Company expenses, interest, taxes and other pension expenses are $5.
2 million in the first six months of 2017, a favourable change of $0.
4 million of the first six months of 2016.
The impact of pension expenditures on income is reflected in \"corporate expenses, net\" in net sales and operating profits by market segment.
Pension spending is expected to be $10.
2017 4 million.
Net corporate expenses decreased by 2016 per cent in the first six months of 2017, mainly due to reduced pension costs and stocks
Based on the cost of employee benefits, it is partially offset by higher incentive accrued items.
Interest expense is $2.
Compared with $2, the first six months of 2017 were $8 million.
The first six months of 2016 were 0 million.
Interest payments for 2016 included write-off of $0.
Unamortized loan fees in the Company\'s revolving credit agreement refinance in the first quarter of 2016 were 2 million.
The effective tax rate used to calculate the cost of continuing Operating income tax is 9.
The first six months of 2017 were 9%, compared to 29.
The first six months of 2016 were 8%.
Compared to the income reconciliation form on the first page, the effective tax rate for the ongoing business is 39.
The first six months of 2017 were 1%, compared with 32. 1% in 2016.
Interpretation of the significant difference between the estimated effective tax rate for continuing operating income and the United StatesS.
Form 10 will provide federal statutory rates of 2017 and 2016Q.
Total debt was $187.
In June 30, 2017, it was $3 million, compared to $95.
December 31, 2016 was 0 million. Net debt (
Debts exceeding cash and cash equivalents)was $163.
In June 30, 2017, it was $3 million, compared to $65.
December 31, 2016 for 5 million.
The increase in the debt was largely due to the acquisition of the future, which was funded by the use of the loan under the company\'s guaranteed revolving credit agreement.
Net debt is a financial measure that is not calculated or presented in accordance with accepted accounting principles. See Note (d)
In the notes to the financial form, for this non-
GAAP financial measures are the most direct and comparable GAAP financial measures. FORWARD-
Some of the information contained in this press release may constitute \"forward-looking\"
The meaning of the \"safe harbor\" clause in the Private Securities Litigation Reform Act of 1995.
When we use \"believe\", \"estimate\", \"expectation\", \"project\", \"possible\" and similar expressions, we do this to determine
Look at the report.
These statements are based on our expectations at the time and are influenced by some risks and uncertainties that may lead to significant differences in actual results from the results mentioned in the forward Report
Look at the report.
Our actual results and financial position may differ materially from these forward instructions or implied expected results and financial position --
Look at the report.
Therefore, you should not rely too much on these advances.
Look at the report.
Factors that may lead to different actual results from expectations include, but are not limited to, the following: losses or gains from sales to important customers highly dependent on our business;
Achieve sales to new customers or fail to achieve sales to replace lost business;
Ability to develop and deliver new products at competitive prices;
Our customers fail to achieve success or maintain market share;
Do not protect our intellectual property;
The risk of doing business outside the United StatesS.
This has affected a large number of our international operations;
Political, economic and regulatory factors involving our products;
The uncertain economic situation of the country in which we do business;
Competition from other manufacturers, including
Cost countries and manufacturers benefiting from government subsidies;
The impact of exchange rate fluctuations;
A change in the amount of fixed benefits we have insufficient funds (pension)plan liability;
Increased operating costs incurred by our operating company, including raw materials and energy costs for example;
Failure to successfully identify, complete or integrate strategic acquisitions;
Failure to achieve the expected benefits of such acquisitions and taking unexpected risks in such acquisitions;
Damage to our production facilities;
The occurrence or threat of special events, including natural disasters and terrorist attacks;
Failure or default of information technology system;
Volatility and uncertainty in our cost valuation
Basic investment in Caleo;
The possibility of imposing tariffs on imported aluminum blanks used in our aluminum profiles;
Other factors discussed in Tredegar\'s report filed with or provided to the Securities and Exchange Commission (“the SEC”)
From time to time, including the risks and important factors detailed in the second part of item 5 \"risk factors\" in table 10
Part I, Item 1A of Tredegar\'s 2016 annual report on table 10K (
\"2016 Form 10-K”)
Submitted to SEC.
Readers are urged to review and carefully consider the information disclosed by Tredegar in the document submitted to SEC, including form 2016 10-K.
Tredegar does not assume the obligation to update any forwarding and expressly disclaims any obligation
Forward-looking statements in this press release reflect any changes expected by management, or any changes in the conditions, assumptions or circumstances on which these statements are based, unless required by applicable law.
The Financial Information section of this press release contains
GAAP financial measures, it also proposes the most directly comparable financial measures calculated and proposed based on GAAP, and any such non-
GAAP measures and comparable accounting financial measures.
Non-reconciliation
GAAP Financial indicators are provided in the notes to the financial statements contained in this press release and can also be found in the \"demos\" in the \"investors\" section of our website, www. tredegar. com .
Tredegar uses its website as a channel for the distribution of information from materials companies.
Tredegar\'s financial information and other important information are published in the \"Investors\" section of its website and assembled on its website.
Tredegar Corporation is a manufacturer of plastic film and aluminum profiles.
Tredegar is a global company based in Richmond, Virginia, with sales of $2016 and $0. 828 billion.
With approximately 3,200 employees, the company operates manufacturing facilities in North America, South America, Europe and Asia.
Consolidated income report of Tredegar Corporation (
Except Per-Share Data)(Unaudited)
June 30 in the three a month six a month June 30, 2017 2016 2017 sales 2016 $247,347 $208,533 $468,372 $415,867 Other income (expense), net (a)(b)
34,735 cm 322 cm 38,022 cm 1,092 cm 282,082 cm 208,855 cm 506,394 cm 416,959 cm Cost of sales (a)
197,372 cm 169,830 cm 379,220 cm 332,882 cm 7,912 freight 7,066 16,218 14,067 best selling, R & D and total cost (a)
26,744 24,744 51,796 49,583 Amortization of intangible assets 1,652 990 2,893 1,946 interest expenditure 1,642 947 2,822 2,032 Impairment of assets and costs related to withdrawal and disposal activities, excluding adjustments (a)(271 )
553 cm 293 cm 1,226 cm 235,051 cm 204,130 cm 453,242 cm 401,736 cm Income tax income tax before 47,031 cm 4,725 cm 53,152 cm 15,223 cm (c)(e)
2,827 cm 1,317 cm 5,246 cm 4,533 cm Net income $44,204 $3,408 $47,906 $10,690 earnings per share: Basic $ month. 34 $ 0. 10 $ 1. 45 $ 0. Diluted $33. 34 $ 0. 10 $ 1. 45 $ 0.
33 Shares used to calculate earnings per share: basic 32,961 32,716 32,941 32,685 33,051 Diluted 32,716 32,999 32,685 10 Tredegar Corporation net sales and operating profit by market segment (In Thousands)(Unaudited)
For the six months ended June 30 and June 30, 2017 cm 2016 cm promotional pe film $89,639 $80,813 $176,050 $169,295 soft packaging film 26,588 27,207 53,297 53,585 aluminum alloy profiles 123,208 93,447 222,807 178,920 239,435 201,467 452,154 401,800 7,912 7,066 16,218 14,067 increase freight sales, such as income with report shown in 247,347 dollars 208,533 dollar 468,372 dollar 415,867 dollar business profit (Loss)
PE film: current business $10,682 $4,318 $19,713 $14,553 factory closure, asset impairment, restructuring, etc (a)(904 )(1,356 )(2,972 )(2,491 )
Flexible Packaging Film: Ongoing operation (319 )(942 )(2,317 )
1,090 factory shutdown, impairment of assets, restructuring and others (a)11,856 —11,856 —
11,772 10,859 21,601 18,359 factory shutdown, impairment of assets, restructuring and others (a)1,571 (558 )(2,769 )(565 )
A total of 34,658 12,321 45,112 30,946 Interest income 55 51 129 88 investment expenses 1,642 947 2,822 2,032 Income accounting for 8% fair value law (b)
21,500 300 24,800 1,100 stock options
Basic compensation costs 38 31 41 (7 )
Net company fees (a)
7,502 cm 6,969 cm 14,026 cm 14,886 cm Income tax income tax before 47,031 cm 4,725 cm 53,152 cm 15,223 cm (c)(e)
2,827 cm 1,317 cm 5,246 cm 4,533 cm Net income $44,204 $3,408 $47,906 $10,690 Tredegar the company of the implementation of the condensed consolidated assets sheet (In Thousands)(Unaudited)
June 30, 2017 December 31, 2016 Assets Cash and cash equivalents $24,026 $29,511 of account and other receivables, net 129,164 97,388 recovery of income tax 13,691 7,518 inventory 84,359 66,069 pre-pay cost and other 7,176 7,738 total assets 258,416 208,224, net 304,530 260,725 Goodwill and other intangible assets, factories and equipment, net 189,442 151,423 Other assets 55,573 30,790 Total assets 807,961 dollar liabilities and shareholders rights and interests deal with accounts 651,162 dollar 95,706 dollar should be billing with 81,342 38,323 38,647 flow liabilities total 134,029 119,989 long-
Short-term debt 187,250 95,000 Deferred income tax liabilities 25,717 21,110 Other non-flow liabilities 101,537 104,280 shareholders rights and interests 359,428 310,783 liabilities and shareholders rights and interests total $807,961 $651,162 month Tredegar the company thin with cash flow report (In Thousands)(Unaudited)
Six months end cash flow from 2016 operating activities in June 30, 2017: non-cash items adjusted with income of $47,906 $10,690: Depreciation of 15,993 13,847 Amortization of intangible assets 2,893 1,946 Deferred income tax liabilities 2,000 (3,563 )
Income from Accrued pensions and
Retirement benefits 5,264 5,759Gain)
/Investment losses calculated by fair value method (24,800 )(1,100 )(Gain)
Net impairment of assets and loss of divestiture of assets 50 339 (gain)
/Loss of assets sold 307-
Changes in assets and liabilities, excluding the effects of acquisition and divestiture: Accounts and other receivables (20,197 )(4,278 )Inventories (7,261 )
1,490 Income tax recoverable/payable (6,120 )(1,099 )
Pre-payment and other 735 (737 )
Accounts payable and accrued 6,178 (5,554 )
Contributions to the pension and post-retirement benefits plan (2,106 )(1,077 )
In addition, net 1,126 1,600 business activities of cash flow net 21,968 18,263 investment activities of cash flow: Capital expenditure (26,692 )(19,018 )Acquisition (87,110 )—
Net cash from the sale of assets and other investment activities 95 1,104 (113,707 )(17,914 )
Cash flow of financing activities: loan 148,750 28,500 debt principal payment (56,500 )(38,500 )
Dividends paid (7,268 )(7,213 )
Cost of debt financing(2,508 )
Exercise of stock options and other 695 (118 )
Net cash use for financing activities 85,677 (19,839 )
Effect of exchange rate changes on cash 577 decrease of cash and cash equivalents by 2,831 (5,485 )(16,659 )
Opening Cash and cash equivalents 29,511 44,156 Ending cash and cash equivalents $24,026 $27,497 13 notes to the financial statement (Unaudited)(a)
Losses related to factory shutdowns, impairment of assets, restructuring and other projects that continued to operate in second quarter of 2017 and the first six months, and 2016 items detailed below, shown in the statement of net sales and operating profit by market segment and damages and costs associated with withdrawal and disposal activities, unless otherwise stated, otherwise, \"net adjustment\" in the consolidated income statement \".
Factory shutdowns, asset impairment, restructuring and other projects in the second quarter of 2017 included: $11 in pre-tax income.
9 million in connection with the resolution of the hosting arrangements identified in the acquisition of Terphane in 2011 (
Other income (expense)
\"Net\" in consolidated report \").
In resolving the hosting arrangement, the company bears the risk of the claim (
And related legal fees)
The trust previously secured the company.
While the final amount of such claims is unknown, the company believes that it has the potential to be responsible for a portion of these claims and currently estimates that the amount of such claims in the future is approximately $3. 5 million;
A $1 pre-tax fee.
0 million estimated excess cost related to ramp
The new products offered by PE film and the additional costs associated with the strategic capacity expansion project are $0.
Bonnell, $9 million and $0. 1 million (
Included in the \"cost of selling goods\" in the revenue consolidated report);
$0 before tax.
9 million related to an explosion at an aluminum profile manufacturing plant in Newnan, Georgia, on 2016, which is expected to recover production costs of more than $0.
There were 6 million cases in 2016, $0.
In the first quarter of 2017, 3 million euros occurred, which was previously considered not reasonably guaranteed for the recovery of insurance companies (
Included in the \"cost of selling goods\" in the revenue consolidated report);
$0 before tax.
7 million related to the fair valuation of the proceeds Reserve after the acquisition of Futura (
Other income (expense)
\"Net\" in consolidated report \");
The pre-tax fee is $0.
6 million related to business development projects (
Included in the revenue Consolidated statement \"sales, R & D and general expenses\" and in the division net sales and operating profit statement \"company expenses, net);
The pre-tax fee is $0.
3 million related to the integration of domestic PE film manufacturing facilities, including facilities integration-
Related Fees $0.
2 million, accelerated depreciation of $0. 1 million (
Included in the \"cost of selling goods\" in the revenue consolidated report)
Net income of $0 before tax.
3 million related to the reduction in severance pay and other employees
Related accrued costs.
Factory shutdowns, asset impairment, restructuring and other projects for the first six months of 2017 included: $11 in pre-tax income.
9 million in connection with the resolution of the hosting arrangements identified in the acquisition of Terphane in 2011 (
Other income (expense)
\"Net\" in consolidated report \").
In resolving the hosting arrangement, the company bears the risk of the claim (
And related legal fees)
The trust previously secured the company.
While the final amount of such claims is unknown, the company believes that it has the potential to be responsible for a portion of these claims and currently estimates that the amount of such claims in the future is approximately $3. 5 million;
A pre-tax fee of $3.
3 million related to the acquisition of Futura, I)
Related to an accounting adjustment of $1.
7 million inventory value of aluminum extrusion sales after the acquisition of Futura (
Included in the \"cost of selling goods\" in the revenue consolidated report), ii)
$1 acquisition cost.
5 million and iii)
The consolidation cost is $0. 1 million (
Ii and iii included in sales, R & D and general expenses in revenue Consolidated statements)
Net income of $0 before tax.
7 million in connection with the fair valuation of the terms specified (
Other income (expense)
\"Net\" in consolidated report \");
$2 before tax.
8 million estimated excess costs associated with ramp
The new products offered by PE film and the additional costs associated with the strategic capacity expansion project are up to $2.
4 million and $0 squeezed by aluminum. 4 million (
Included in the \"cost of selling goods\" in the revenue consolidated report);
14 Income before tax $0.
5 million related to an explosion at an aluminum extrusion manufacturing plant in Newnan, Georgia, on 2016, which included the expected recovery of production costs of more than $0.
6 million the amount previously incurred in 2016 that was not deemed reasonably guaranteed to be recovered from the insurance company (
Included in the \"cost of selling goods\" in the revenue consolidated report)
, Partially offset by legal and advisory fees of $0. 1 million (
Included in \"sales, R & D and general expenses\" in revenue Consolidated statements);
The pre-tax fee is $0.
7 million related to the integration of the domestic PE film manufacturing facility, which includes a $0 Impairment of assets.
1 million, accelerated depreciation of $0. 2 million (
Included in the \"cost of selling goods\" in the revenue consolidated report)
Integration of other facilities-
Related Fees $0. 4 million ($0.
3 million included in the \"cost of goods sold\" of the consolidated income statement)
Net income of $0 before tax.
1 million related to the reduction in severance pay and other employees
Related billing;
The pre-tax fee is $0.
3 million related to the expected environmental costs of the Carthage aluminum extrusion manufacturing plant in Tennessee (
Included in the \"cost of selling goods\" in the revenue consolidated report);
The pre-tax fee is $0.
9 million related to business development projects (
Included in the revenue Consolidated statement \"sales, R & D and general expenses\" and in the division net sales and operating profit statement \"company expenses, net);
The pre-tax fee is $0.
3 million of departing and other employees
Related costs related to the restructuring of the company (
Included in \"company fees, net\", net sales and operating profit statements by market segment).
Factory shutdown, asset impairment, restructuring and other expenses for the second quarter of 2016 included: $1 pre-tax fee.
4 million related to the integration of domestic PE film manufacturing facilities, including severance pay and other staff-
The related fee is $0.
4 million, impairment of assets of $0.
1 million, accelerated depreciation of $0. 1 million (
Included in the \"cost of selling goods\" in the revenue consolidated report)
Integration of other facilities-
Related Fees $0. 8 million ($0.
7 million included in the \"cost of goods sold\" of the consolidated income statement);
The pre-tax fee is $0.
6 million related to the explosion at the Newnan cast house of aluminum extrusion company on 2016 (
Included in \"sales, R & D and general expenses\" in revenue Consolidated statements).
Factory shutdowns, asset impairment, restructuring and other expenses for the first six months of 2016 include: $2 pre-tax charges.
5 million related to the integration of domestic PE film manufacturing facilities, including severance pay and other staff-
The related fee is $0.
7 million, impairment of assets of $0.
3 million, accelerated depreciation of $0. 2 million (
Included in the \"cost of selling goods\" in the revenue consolidated report)
Integration of other facilities-
A related fee of $1. 3 million ($1.
1 million included in the \"cost of goods sold\" of the consolidated income statement);
The pre-tax fee is $0.
6 million related to the explosion at the Newnan cast house of aluminum extrusion company on 2016 (
Included in \"sales, R & D and general expenses\" in revenue Consolidated statements);
The pre-tax fee is $0.
4 million related to business development projects (
Included in the revenue Consolidated statement \"sales, R & D and general expenses\" and in the division net sales and operating profit statement \"company expenses, net). (b)
The company\'s investment in kaleo, Inc. is not profitable(“kaléo”)of $21.
$5 million and $24.
In the second quarter of 2017 and the first six months, $8 million was confirmed, respectively, compared with $0.
$3 million and $1.
The second quarter of 2016 and the first six months were 1 million.
Changes in the estimated fair value held by the company in kalo are mainly based on changes in the projected future cash flows, which are discounted to 45% due to their high risk. (c)
In the second quarter of 2017, the company launched a clearing plan for tax purposes, one of its subsidiaries in the country, which will allow it to apply for income tax benefits in the following cases
The stock base of an American company of the companyS. subsidiaries (
(No-value stock deduction)
2017 of federal income tax returns
The company recorded a $8 Income tax offer in 2017. 1 million ($0. 25 per share)
Related to the accrual of worthless stock deductions, net valuation allowances and uncertain tax positions.
Also in 2017, 15 companies confirmed net tax revenue of $0.
4 million with additional USS.
Taxes related to the repatriation of cash from Brazil in 2016 were offset by a reversal of the relevant tax accident.
Income taxes for the first six months of 2017 and 2016 included partial revocation of valuation allowances of less than $0.
$1 million and $0.
1 million is related, respectively, to the expected restrictions on certain investment use assumed capital losses recognized in previous years. (d)
The net liabilities are calculated as follows :(in millions)
June 30 in December 31, 2017 2016 debt of $187. 3 $ 95.
Minus 0: Cash and cash equivalents 24. 0 29.
Net debt was $163. 3 $ 65.
5 Net debt is not intended to represent the total debt as defined by GAAP.
Management uses net debt in assessing the Company\'s financial leverage and equity valuation, and management believes that investors may also find that net debt helps achieve the same purpose. 16 (e)
Tredegar\'s statement of net income and earnings per share for ongoing operations
GAAP financial measures, excluding profit and loss related to factory shutdown, asset impairment and restructuring, profit and loss of assets sold, goodwill impairment charges and other items (
Including the unrealized profit and loss of investment calculated by fair value method)
, In accordance with GAAP, the report has been reported separately and removed from net income and diluted earnings per share.
Net income and earnings per share of continuing operations are key financial and analytical measures used by management to measure Tredegar\'s continued operating performance.
They don\'t intend to represent the position-
Only the results of Tredegar\'s ongoing operations under GAAP should not be considered as an alternative to the continuing operating net income or earnings per share as defined by GAAP.
They ruled out projects that we thought were not related to Tredegar\'s ongoing operations.
Before a settlement. tax and post-
For the three and six months ended June 30, 2017 and 2016, the tax balance generated as a result of net operating income on a continuing basis is shown below to show the impact on the effective tax rate :(In Millions)Pre-
Taxes and fees (Benefit)After-
Effective tax rates for the three months ended June 30, 2017 (a)(b)(b)/(a)
Net income reported according to the $47 GAAP. 0 $ 2. 8 $ 44. 2 6.
0% losses related to plant shutdown, asset impairment and restructuring——(Gains)
Sale of Assets and others (33. 4 )2. 5 (35. 9 )
Net operating income in progress is $13. 6 $ 5. 3 $ 8. 3 38.
9% for the three months ended June 30, 2016, net income reported on the basis of $4 for GAAP. 7 $ 1. 3 $ 3. 4 27.
9% losses related to plant shutdown, asset impairment and restructuring 1. 4 0. 5 0. 9 (Gains)
Losses caused by the sale of assets, etc. 0. 3 0. 1 0.
1 Net income of $6 for ongoing operations. 3 $ 1. 9 $ 4. 4 30.
For the six months ended June 30, 2017, net income reported under GAAP $53 was 6% per cent. 2 $ 5. 3 $ 47. 9 9.
9% losses related to factory shutdown, asset impairment and restructuring 0. 9 0. 3 0. 6 (Gains)
Sale of Assets and others (30. 6 )3. 6 (34. 2 )
Net income from ongoing business is $23. 5 $ 9. 2 $ 14. 3 39.
For the six months ended June 30, 2016, net income reported under GAAP $15 was 1% per cent. 2 $ 4. 5 $ 10. 7 29.
8% losses related to factory shutdown, asset impairment and restructuring 2. 5 0. 9 1. 6 (Gains)
Sale of Assets and others (0. 2 )0. 2 (0. 4 )
Net income from continuing operations was $17. 6 $ 5. 6 $ 11. 9 32.
1% Contact: Neil Bellamy, tredega, 804-330-1211 neill.
Bellamy\'s @ Zhuo Dejia.