XML 35 R19.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting
The Company’s business segments are Aluminum Extrusions, PE Films, and Flexible Packaging Films. Information by business segment is reported below. There are no accounting transactions between segments and no allocations to segments.
The Company’s reportable segments are based on its method of internal reporting, which is generally segregated by differences in products. Accounting standards for presentation of segments require an approach based on the way the Company organizes the segments for making operating decisions and how the chief operating decision maker (“CODM”) assesses performance. EBITDA from ongoing operations is the key profitability measure used by the CODM (Tredegar’s President and Chief Executive Officer) for purposes of assessing financial performance. The Company uses sales less freight (“net sales”) from continuing operations as its measure of revenues from external customers at the segment level. This measure is separately included in the financial information regularly provided to the CODM.
The following table presents net sales and EBITDA from ongoing operations by segment for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2022202120222021
Net Sales
Aluminum Extrusions$161,649 $137,086 $510,066 $394,492 
PE Films20,059 28,501 82,613 87,885 
Flexible Packaging Films47,278 36,666 128,117 102,560 
Total net sales228,986 202,253 720,796 584,937 
Add back freight9,500 7,264 28,619 20,531 
Sales as shown in the condensed consolidated statements of income$238,486 $209,517 $749,415 $605,468 
EBITDA from Ongoing Operations
Aluminum Extrusions:
Ongoing operations:
EBITDA$12,071 $12,038 $57,885 $45,062 
Depreciation & amortization(4,416)(3,900)(12,846)(12,062)
EBIT7,655 8,138 45,039 33,000 
Plant shutdowns, asset impairments, restructurings and other(32)(160)(120)(223)
PE Films:
Ongoing operations:
EBITDA431 4,821 14,543 21,035 
Depreciation & amortization(1,579)(1,591)(4,733)(4,681)
EBIT(1,148)3,230 9,810 16,354 
Plant shutdowns, asset impairments, restructurings and other(498)(182)(650)(457)
Flexible Packaging Films:
Ongoing operations:
EBITDA7,830 7,396 20,495 25,296 
Depreciation & amortization(590)(493)(1,723)(1,466)
EBIT7,240 6,903 18,772 23,830 
Plant shutdowns, asset impairments, restructurings and other(6)(7)(86)8,407 
Total13,211 17,922 72,765 80,911 
Interest income9 8 41 40 
Interest expense1,138 842 3,158 2,555 
Gain on investment in kaléo— 279 1,406 1,197 
Stock option-based compensation costs271 675 1,153 1,819 
Corporate expenses, net9,674 8,555 30,187 30,470 
Income (loss) from continuing operations before income taxes2,137 8,137 39,714 47,304 
Income tax expense (benefit)1,125 1,908 7,460 10,728 
Income (loss) from continuing operations1,012 6,229 32,254 36,576 
Income (loss) from discontinued operations, net of tax21 (26)68 (104)
Net income (loss)$1,033 $6,203 $32,322 $36,472 
The following table presents identifiable assets by segment at September 30, 2022 and December 31, 2021:
(In thousands)September 30, 2022December 31, 2021
Aluminum Extrusions$302,392 $280,521 
PE Films105,434 113,613 
Flexible Packaging Films96,676 75,269 
Subtotal504,502 469,403 
General corporate22,755 23,482 
Cash and cash equivalents19,250 30,521 
Discontinued operations151 178 
Total$546,658 $523,584 
The following tables disaggregate the Company’s revenue by geographic area and product group for the three and nine months ended September 30, 2022 and 2021:
Net Sales by Geographic Area (a)
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2022202120222021
United States$181,405 $157,969 $577,496 $447,585 
Exports from the United States to:
Asia7,437 12,609 34,582 43,129 
Latin America2,138 1,170 4,824 3,630 
Canada4,065 4,107 12,431 14,145 
Europe1,016 1,343 3,464 3,323 
Operations outside the United States:
Brazil32,925 25,055 87,999 73,125 
Total$228,986 $202,253 $720,796 $584,937 
(a) Export sales relate entirely to PE Films. Operations in Brazil relate entirely to Flexible Packaging Films.
The Company’s facilities in Pottsville, PA (“PV”) and Guangzhou, China (“GZ”) have a tolling arrangement whereby certain surface protection films are manufactured in GZ for a fee with raw materials supplied from PV that are then shipped by GZ directly to customers principally in the Asian market, but paid by customers directly to PV. Amounts associated with this intercompany tolling arrangement are reported in the table above as export sales from the U.S. to Asia, and include net sales of $4.4 million and $7.4 million in the third quarters of 2022 and 2021, respectively, and $16.1 million and $25.0 million in the first nine months of 2022 and 2021, respectively.
Net Sales by Product Group
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2022202120222021
Aluminum Extrusions:
Nonresidential building & construction$86,659 $68,590 $266,882 $195,941 
Consumer durables16,714 12,873 52,409 39,611 
Automotive11,543 10,150 39,857 32,750 
Residential building & construction15,136 13,154 52,549 39,755 
Electrical4,730 8,015 21,704 24,767 
Machinery & equipment20,028 11,611 48,902 31,190 
Distribution6,839 12,693 27,763 30,478 
Subtotal161,649 137,086 510,066 394,492 
PE Films:
Surface protection films13,018 20,905 58,839 65,997 
Overwrap packaging7,041 7,596 23,774 21,888 
Subtotal20,059 28,501 82,613 87,885 
Flexible Packaging Films47,278 36,666 128,117 102,560 
Total $228,986 $202,253 $720,796 $584,937