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Segment Reporting | 3 Months Ended
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Mar. 31, 2024
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 CODM assesses performance. Earnings before interest, taxes, depreciation and amortization ("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”) 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 months ended March 31, 2024 and 2023:
| Three Months Ended March 31, |  |
(In thousands) | 2024 |  | 2023 |  |  |  |
Net Sales |  |  |  |  |  |  |
Aluminum Extrusions | $ | 114,222 |  |  | $ | 133,370 |  |  |  |  |
PE Films | 24,735 |  |  | 20,182 |  |  |  |  |
Flexible Packaging Films | 30,113 |  |  | 31,527 |  |  |  |  |
Total net sales | 169,070 |  |  | 185,079 |  |  |  |  |
Add back freight | 6,666 |  |  | 6,043 |  |  |  |  |
Sales as shown in the condensed consolidated statements of income (loss) | $ | 175,736 |  |  | $ | 191,122 |  |  |  |  |
EBITDA from Ongoing Operations |  |  |  |  |  |  |
Aluminum Extrusions: |  |  |  |  |  |  |
Ongoing operations: |  |  |  |  |  |  |
EBITDA | $ | 12,540 |  |  | $ | 14,638 |  |  |  |  |
Depreciation & amortization | (4,542) |  |  | (4,411) |  |  |  |  |
EBIT | 7,998 |  |  | 10,227 |  |  |  |  |
Plant shutdowns, asset impairments, restructurings and other | (1,167) |  |  | (493) |  |  |  |  |
PE Films: |  |  |  |  |  |  |
Ongoing operations: |  |  |  |  |  |  |
EBITDA | 6,904 |  |  | 1,849 |  |  |  |  |
Depreciation & amortization | (1,329) |  |  | (1,643) |  |  |  |  |
EBIT | 5,575 |  |  | 206 |  |  |  |  |
Plant shutdowns, asset impairments, restructurings and other | (504) |  |  | 2 |  |  |  |  |
Flexible Packaging Films: |  |  |  |  |  |  |
Ongoing operations: |  |  |  |  |  |  |
EBITDA | 1,963 |  |  | 1,350 |  |  |  |  |
Depreciation & amortization | (751) |  |  | (700) |  |  |  |  |
EBIT | 1,212 |  |  | 650 |  |  |  |  |
Plant shutdowns, asset impairments, restructurings and other | — |  |  | (78) |  |  |  |  |
Total | 13,114 |  |  | 10,514 |  |  |  |  |
Interest income | 22 |  |  | 44 |  |  |  |  |
Interest expense | 3,455 |  |  | 2,311 |  |  |  |  |
Gain on investment in kaleo, Inc. | — |  |  | 262 |  |  |  |  |
Stock option-based compensation costs | — |  |  | 231 |  |  |  |  |
Corporate expenses, net | 5,736 |  |  | 8,956 |  |  |  |  |
Income (loss) before income taxes | 3,945 |  |  | (678) |  |  |  |  |
Income tax expense (benefit) | 657 |  |  | 331 |  |  |  |  |
Net income (loss) | $ | 3,288 |  |  | $ | (1,009) |  |  |  |  |
The following table presents identifiable assets by segment at March 31, 2024 and December 31, 2023:
(In thousands) | March 31, 2024 |  | December 31, 2023
Aluminum Extrusions | $ | 264,300 |  |  | $ | 255,756 |
PE Films | 57,925 |  |  | 56,536 |
Flexible Packaging Films | 81,290 |  |  | 84,062 |
Subtotal | 403,515 |  |  | 396,354 |
General corporate | 34,224 |  |  | 36,652 |
Cash, cash equivalents and restricted cash | 4,792 |  |  | 13,455 |
Total | $ | 442,531 |  |  | $ | 446,461 |
The following tables disaggregate the Company’s revenue by geographic area and product group for the three months ended March 31, 2024 and 2023:
Net Sales by Geographic Area (a)
| Three Months Ended March 31, |  |
(In thousands) | 2024 |  | 2023 |  |  |  |
United States | $ | 132,627 |  |  | $ | 150,611 |  |  |  |  |
Exports from the United States to: |  |  |  |  |  |  |
Asia | 8,825 |  |  | 5,732 |  |  |  |  |
Latin America | 1,331 |  |  | 1,859 |  |  |  |  |
Canada | 4,539 |  |  | 4,284 |  |  |  |  |
Europe | 255 |  |  | 860 |  |  |  |  |
Operations outside the United States: |  |  |  |  |  |  |
Brazil | 21,331 |  |  | 21,628 |  |  |  |  |
Asia | 162 |  |  | 105 |  |  |  |  |
Total | $ | 169,070 |  |  | $ | 185,079 |  |  |  |  |
(a) Export sales relate mostly to PE Films. Operations in Brazil relate 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 $6.1 million and $3.4 million in the first quarter of 2024 and 2023, respectively.
Net Sales by Product Group
| Three Months Ended March 31, |  |
(In thousands) | 2024 |  | 2023 |  |  |  |
Aluminum Extrusions: |  |  |  |  |  |  |
Nonresidential building & construction | $ | 66,347 |  |  | $ | 78,629 |  |  |  |  |
Consumer durables | 7,984 |  |  | 10,347 |  |  |  |  |
Automotive | 10,606 |  |  | 12,122 |  |  |  |  |
Residential building & construction | 7,902 |  |  | 11,603 |  |  |  |  |
Electrical | 5,836 |  |  | 8,129 |  |  |  |  |
Machinery & equipment | 12,195 |  |  | 10,724 |  |  |  |  |
Distribution | 3,352 |  |  | 1,816 |  |  |  |  |
Subtotal | 114,222 |  |  | 133,370 |  |  |  |  |
PE Films: |  |  |  |  |  |  |
Surface protection films | 17,011 |  |  | 12,855 |  |  |  |  |
Overwrap packaging | 7,724 |  |  | 7,327 |  |  |  |  |
Subtotal | 24,735 |  |  | 20,182 |  |  |  |  |
Flexible Packaging Films | 30,113 |  |  | 31,527 |  |  |  |  |
Total | $ | 169,070 |  |  | $ | 185,079 |  |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. 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