Fourth quarter 2021 net income from continuing operations was $21.4 million ($0.63 per diluted share) compared to $6.5 million ($0.19 per diluted share) in the fourth quarter of 2020. Net income from ongoing operations, which excludes special items, was $6.2 million ($0.18 per diluted share) in the fourth quarter of 2021 compared to $9.7 million ($0.29 per diluted share) in the fourth quarter of 2020.
Full year 2021 net income from continuing operations was $57.9 million ($1.72 per diluted share) compared to net loss from continuing operations of $16.8 million ($0.51 per diluted share) in 2020. Net income from ongoing operations was $39.6 million ($1.18 per diluted share) in 2021 compared to $50.8 million ($1.51 per diluted share) in 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 months and year ended December 31, 2021 and 2020, 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 $10.9 million was $2.8 million lower than the fourth quarter of 2020
*EBITDA from ongoing operations for PE Films of $6.7 million was $4.5 million lower than the fourth quarter of 2020
*EBITDA from ongoing operations for Flexible Packaging Films of $6.4 million was $1.7 million lower than the fourth quarter of 2020
John Steitz, Tredegar’s president and chief executive officer, said, “We continue to manage through supply chain and inflation issues at each of our businesses. At Bonnell Aluminum, production challenges and inefficiencies persist from labor shortages. On the bright side, orders and backlog remain robust. In addition, we recently approved the implementation of new enterprise resource planning and manufacturing execution systems that will replace existing systems that are over 30 years old. This highly strategic two-year project includes estimated capital expenditures of $28 million and expenses of $3 million, which we estimate will generate operational and commercial benefits, including higher yield, productivity and other improvements, of approximately $9 million annually once the systems are fully implemented and functioning.”
Mr. Steitz continued, “PE Films continues to focus on generating new business to offset profit declines from previously announced product transitions and margin pressures. Terphane had another stellar performance in 2021 despite a very competitive marketplace.”
Mr. Steitz further stated, “Debt, net of cash, declined by approximately $80 million during 2021. In addition to generating strong cash flow from operations after paying dividends, we received cash of $47.1 million at the end of December from the sale of our investment in kaléo. On February 10, 2022, we announced the use of $50 million of revolver borrowings for a contribution to our frozen pension plan in conjunction with the initiation of a process to terminate and settle the plan. This action should remove risk from our balance sheet while preserving retirement benefits that are due to participants.”
https://ir.tredegar.com/news-releases/news-release-details/tredegar-reports-fourth-quarter-and-full-year-2021-results