tg-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022


¨			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-10258

Tredegar Corporation

(Exact Name of Registrant as Specified in Its Charter)


Virginia						54-1497771
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


1100 Boulders Parkway
Richmond,	Virginia	23225
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (804) 330-1000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	TG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Smaller reporting company

☐

Non-accelerated filer

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The number of shares of Common Stock, no par value, outstanding as of April 29, 2022: 33,853,082

Tredegar Corporation

Table of Contents


		Page

Part I	Financial Statements		2
Item 1.	Condensed Consolidated Balance Sheets (unaudited)		2
	Condensed Consolidated Statements of Income (Loss) (unaudited)		3
	Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)		4
	Condensed Consolidated Statements of Cash Flows (unaudited)		5
	Condensed Consolidated Statements of Shareholders' Equity (unaudited)		6
	Notes to the Condensed Consolidated Financial Statements (unaudited)		7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		28
Item 4.	Controls and Procedures		32

Part II	Other Information		34
Item 1A.	Risk Factors		34
Item 6.	Exhibits		35

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Tredegar Corporation

Condensed Consolidated Balance Sheets

(In Thousands, Except Share Data)

(Unaudited)


	March 31,		December 31,
	2022		2021
Assets
Current assets:
Cash and cash equivalents	$	25,648	$	30,521
Accounts and other receivables, net	129,559		103,312
Income taxes recoverable	2,512		2,558
Inventories	104,560		88,569
Prepaid expenses and other	17,183		11,275
Current assets of discontinued operations	151		178
Total current assets	279,613		236,413
Property, plant and equipment, at cost	506,511		498,311
Less: accumulated depreciation	(333,944)		(327,930)
Net property, plant and equipment	172,567		170,381
Right-of-use leased assets	13,385		13,847
Identifiable intangible assets, net	13,632		14,152
Goodwill	70,608		70,608
Deferred income taxes	11,409		15,723
Other assets	3,457		2,460
Total assets	$	564,671	$	523,584
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	144,585	$	123,760
Accrued expenses	27,012		33,104
Lease liability, short-term	2,119		2,158
Income taxes payable	643		9,333
Current liabilities of discontinued operations	178		193
Total current liabilities	174,537		168,548
Lease liability, long-term	12,361		12,831
Long-term debt	131,250		73,000
Pension and other postretirement benefit obligations, net	28,333		78,265

Other non-current liabilities	6,322		6,218
Total liabilities	352,803		338,862
Shareholders’ equity:
Common stock, no par value (issued and outstanding 33,837,815 shares at March 31, 2022 and 33,736,629 shares at December 31, 2021)	55,953		55,174
Common stock held in trust for savings restoration plan (109,494 shares at March 31, 2022 and 108,433 shares at December 31, 2021)	(2,148)		(2,135)
Accumulated other comprehensive income (loss):
Foreign currency translation adjustment	(80,256)		(85,792)
Gain (loss) on derivative financial instruments	6,831		901
Pension and other postretirement benefit adjustments	(62,075)		(64,613)
Retained earnings	293,563		281,187
Total shareholders’ equity	211,868		184,722
Total liabilities and shareholders’ equity	$	564,671	$	523,584

See accompanying notes to financial statements.

Tredegar Corporation

Condensed Consolidated Statements of Income (Loss)

(In Thousands, Except Per Share Data)

(Unaudited)


	Three Months Ended March 31,
		2022		2021
Revenues and other items:
Sales		$	236,566	$	184,822
Other income (expense), net		(267)		760
		236,299		185,582
Costs and expenses:
Cost of goods sold		183,260		141,285
Freight		8,081		6,223
Selling, general and administrative		21,282		18,384
Research and development		1,525		1,721
Amortization of identifiable intangibles		663		723
Pension and postretirement benefits		3,476		3,540
Interest expense		786		822
Asset impairments and costs associated with exit and disposal activities, net of adjustments		(9)		169
Total		219,064		172,867
Income (loss) from continuing operations before income taxes		17,235		12,715
Income tax expense (benefit)		778		3,097
Net income (loss) from continuing operations		16,457		9,618
Income (loss) from discontinued operations, net of tax		(35)		(587)
Net income (loss)		$	16,422	$	9,031

Earnings (loss) per share:
Basic:
Continuing operations		$	0.49	$	0.29
Discontinued operations		—		(0.02)
Basic earnings (loss) per share		$

SEC Form 10-Q filed by Tredegar Corporation