Tredegar Corp (TG) 2014 Q4 法說會逐字稿

Call in progress.

通話正在進行中。

Thank you, Danielle, and welcome to the Tredegar 2014 annual financial results review. Our earnings for the fourth quarter and full-year 2014 were released after the market closed today, and you'll find our press release, 10-K and supplemental materials including non-GAAP reconciliations on our website under the Investors section at www.tredegar.com.

謝謝 Danielle，歡迎來到 Tredegar 2014 年度財務表現回顧。我們在今天收盤後發布了 2014 年第四季度和全年收益，您可以在我們網站 www.tredegar 的投資者部分找到我們的新聞稿、10-K 和補充資料，包括非 GAAP 對帳表.com 。

As a reminder, some of the statements made here about the future performance of the Company constitute forward-looking statements within the meaning of federal securities law. Please note the cautionary language about our forward-looking statements that is contained in our press release. That same language applies to this call.

謹此提醒，此處有關公司未來業績的一些陳述構成聯邦證券法含義內的前瞻性陳述。請注意我們的新聞稿中包含的有關我們前瞻性陳述的警告性語言。同樣的語言也適用於此通話。

Please note that our comments today regarding financial results exclude all non-operating or special items, and reconciliations related to any non-GAAP financial measures discussed today may be found in the slides accompanying this presentation and our supplemental materials on our website.

請注意，我們今天關於財務績效的評論不包括所有非營運或特殊項目，與今天討論的任何非公認會計準則財務措施相關的對帳可以在本簡報隨附的幻燈片和我們網站上的補充材料中找到。

With that, I'll turn it over to Nancy Taylor.

有了這個，我會把它交給南希泰勒。

Good afternoon. I'm Nancy Taylor, Tredegar's Chief Executive Officer. With me today is Kevin O'Leary, Tredegar's Chief Financial Officer.

午安.我是 Tredegar 執行長南希泰勒。今天與我在一起的是 Tredegar 財務長 Kevin O'Leary。

Thank you for joining us today for our annual financial results review. The agenda for today's call is to discuss our year-end performance for 2014 and update you on our outlook for 2015 and beyond.

感謝您今天加入我們的年度財務業績審查。今天電話會議的議程是討論我們 2014 年的年終業績並向您介紹我們對 2015 年及以後的展望。

We issued our earnings press release after the market closed today. So, as you have seen, 2014 was a year of mixed results, a tough year for our film products business and a breakout year for Bonnell, our aluminum extrusion business.

我們在今天收盤後發布了收益新聞稿。因此，正如您所看到的，2014 年是喜憂參半的一年，對於我們的薄膜產品業務來說是艱難的一年，對於我們的鋁擠壓業務 Bonnell 來說則是突破的一年。

I'll get to the performance highlights shortly. First, a minute or two on our strategy. We've been focused on long-term growth to diversify our markets and customers in both of our businesses. As part of that strategy, we've made significant investments in our businesses. Those investments, which have been thoughtful and deliberate, lay the foundation for Tredegar's long-term growth.

我很快就會介紹效能亮點。首先，用一兩分鐘介紹我們的策略。我們一直專注於長期成長，以實現我們兩項業務的市場和客戶多元化。作為該策略的一部分，我們對我們的業務進行了大量投資。這些深思熟慮的投資為 Tredegar 的長期成長奠定了基礎。

As we wind up recent investments to add capacity and capability, we are now in a position to take advantage of favorable growth trends in several of our markets, which in turn should drive earnings growth and strong cash flow generation.

隨著我們結束最近的投資以增加產能和能力，我們現在能夠利用幾個市場的有利成長趨勢，這反過來又會推動獲利成長和強勁的現金流產生。

Now moving to our 2014 performance. I'm going to discuss our performance highlights, and then Kevin will walk you through the numbers. As tempting as it is to start with Bonnell's terrific performance, I'll begin with film products and in particular the issues around our flexible packaging films, which were the biggest drivers in film products overall performance in 2014.

現在進入我們2014 年的表演。我將討論我們的業績亮點，然後凱文將帶您了解這些數字。儘管從 Bonnell 的出色表現開始是很誘人的，但我將從薄膜產品開始，特別是與我們的軟包裝薄膜相關的問題，這是 2014 年薄膜產品整體表現的最大推動力。

Throughout last year, we commented on the three major issues that negatively impacted the contribution of our flexible packaging films: operational inefficiencies in our Cabo, Brazil plant; the five-month delay in the startup of our new flexible packaging line; and very challenging market dynamics.

去年全年，我們對對我們的軟包裝薄膜貢獻產生負面影響的三個主要問題進行了評論：巴西卡波工廠的運作效率低下；我們新的軟包裝生產線的啟動延遲了五個月；以及非常具有挑戰性的市場動態。

Two of those areas were within our control, the third less so, but still necessitated decisive actions on our part. So I'd like to provide more color on those issues and our actions to address them.

其中兩個區域在我們的控制範圍內，第三個區域則不那麼明顯，但我們仍然需要採取果斷行動。因此，我想就這些問題以及我們解決這些問題的行動提供更多資訊。

Our operational inefficiencies in our Brazil flexible packaging plant created supply constraints and increased cost. As discussed on the midyear call, we were slow to recognize that we needed strong local leadership to drive the changes, processes and resources required to address the issues. On that call, we committed to resolve the issues by the end of the year and we did that.

我們巴西軟包裝工廠的營運效率低下，造成了供應限制並增加了成本。正如年中電話會議中所討論的那樣，我們很慢地認識到我們需要強有力的當地領導力來推動解決問題所需的變革、流程和資源。在那次電話會議上，我們承諾在年底前解決這些問題，我們也這麼做了。

Our local leadership has done a super job of delivering operational improvements while placing a high priority on the sustainability of those improvements. Now that the team has stabilized operations, they are focused on continuous improvement, which means optimizing production and reducing costs.

我們的當地領導層在實現營運改善方面做得非常出色，同時高度重視這些改進的可持續性。現在團隊已經穩定運營，他們專注於持續改進，這意味著優化生產和降低成本。

We also experienced a five-month delay in the startup of our new flexible packaging line in our Cabo, Brazil facility. I want to remind you that this was a very significant project for Tredegar: an $80 million investment over two years.

我們在巴西卡波工廠的新軟包裝生產線的啟動也延遲了五個月。我想提醒您，這對 Tredegar 來說是一個非常重要的項目：兩年內投資 8000 萬美元。

The delay of the project played a significant role in film products against our 2014 volume growth target, and had volume from the new line been available earlier in the year, it would have relieved the supply constraints created by the operational inefficiencies in the rest of the Cabo facility.

該專案的延遲對實現我們 2014 年產量增長目標的薄膜產品發揮了重要作用，如果新生產線的產量能在今年早些時候投入使用，將會緩解由於其他部門運營效率低下而造成的供應限制。波設施。

The good news is that the project came in on budget, and the pace at which we've been ramping up the production on the line has exceeded our expectations. As for the challenging market dynamics, we've previously described the global PET flexible packaging market as being in an oversupply situation.

好消息是該專案符合預算，而且我們提高生產線產量的速度超出了我們的預期。至於充滿挑戰的市場動態，我們先前曾將全球 PET 軟包裝市場描述為處於供應過剩的狀況。

In anticipation of continued double-digit growth in emerging markets, significant capacity expansion commitments were made by an array of PET producers in the 2011 and 2012 timeframe. While that capacity has been coming on stream in the last couple of years, the forecasted growth and associated demand in key markets like China and India has not materialized due to the economic slowdown in those regions.

由於預計新興市場將持續兩位數成長，許多 PET 生產商在 2011 年和 2012 年期間做出了重大產能擴張承諾。儘管這些產能在過去幾年中一直在投產，但由於中國和印度等主要市場的經濟放緩，預計的成長和相關需求尚未實現。

Unfortunately, due to the attractiveness of our market, PET film producers from Asia and the Middle East, along with a new PET film producer in Peru, have targeted Brazil for their excess capacity. This has made the global oversupply situation very real in Brazil.

不幸的是，由於我們市場的吸引力，亞洲和中東的 PET 薄膜生產商以及秘魯的一家新 PET 薄膜生產商將巴西的過剩產能瞄準了巴西。這使得全球供應過剩的情況在巴西變得非常現實。

As you can see from this graph, industry projections indicate that this new global capacity will get absorbed over time. The overall trend toward flexible packaging is positive, the market continues to grow, and we remain excited for the longer-term prospects for flexible packaging film.

正如您從該圖中看到的，行業預測表明，隨著時間的推移，這種新的全球產能將被吸收。軟包裝的整體趨勢是正面的，市場持續成長，我們對軟包裝薄膜的長期前景仍然感到興奮。

In the meantime, we're working hard to mitigate the impact of current market conditions by leveraging our value-added films and services, a competitive advantage that we have over most of the importers in Latin America, and driving continuous improvements in our flexible packaging films operation was a key focus on cost.

同時，我們正在努力減輕當前市場狀況的影響，利用我們的增值薄膜和服務，這是我們相對於拉丁美洲大多數進口商的競爭優勢，並推動我們軟包裝的持續改進電影運營的重點是成本。

It's important that film products 2014 successes in other markets don't get overlooked. In personal care, the previously announced loss of the baby care elastic laminate volume in North America impacted our volume growth. Through product mix and the introduction and expansion of other personal care materials and surface protection films, we were able to offset a very significant portion of the profit impact of that volume loss.

重要的是，2014 年電影產品在其他市場的成功也不容忽視。在個人護理領域，先前宣布的北美嬰兒護理彈性層壓板銷售的損失影響了我們的銷售成長。透過產品組合以及其他個人護理材料和表面保護膜的引入和擴展，我們能夠抵消銷售損失帶來的很大一部分利潤影響。

When you consider the estimated $7 million profit impact, I'd call that a success, and this is a demonstration of how our strategy to diversify our customer base with a focus on launching new products is paying off.

當您考慮到預計 700 萬美元的利潤影響時，我認為這是成功的，這證明了我們以推出新產品為重點的客戶群多元化策略如何獲得回報。

In particular, we are delighted with the strong customer response we've had to the rollout of our Forcefield Pearl product in service protection and our lines of FlexAire products in personal care. Product innovation was critical to our organic growth in 2014.

尤其令我們感到高興的是，客戶對服務保護領域的 Forcefield Pearl 產品和個人護理領域的 FlexAire 產品系列的推出做出了強烈反應。產品創新對於我們 2014 年的有機成長至關重要。

We also had strong operational performance across the vast majority of our film products facilities. Notwithstanding the issues in our Cabo facility, our film products operations around the world are delivering on our promise of operational excellence.

我們絕大多數的電影產品工廠也擁有強勁的營運表現。儘管我們的卡波工廠存在問題，但我們在世界各地的薄膜產品業務正在兌現我們卓越營運的承諾。

Bonnell Aluminum had a great year in 2014. In addition to the solid volume growth in the nonresidential construction market during the second half of the year, Bonnell took big steps forward in executing on its market diversification strategy. Our new automotive prep came online at the beginning of the year, and we continue to be excited by the opportunities for this new capability in Bonnell.

Bonnell 鋁業公司在 2014 年度過了輝煌的一年。我們的新車準備在今年年初上線，我們繼續對邦內爾的這項新能力的機會感到興奮。

We also experienced growth for value-added fabrication and anodizing, so much so that we are expanding our anodizing capacity as we speak. Bonnell demonstrates operational excellence throughout its organization from reducing working capital to new lows to record-setting performance in safety. We are convinced that our strategy has reshaped Bonnell into a much stronger company today than it was before the great recession.

我們也經歷了增值製造和陽極氧化的成長，以至於我們正在擴大我們的陽極氧化產能。邦內爾在整個組織中展現了卓越的營運能力，從將營運資本減少到新低，再到創紀錄的安全績效。我們相信，我們的策略已將邦內爾重塑為一家比大衰退前更強大的公司。

Translating strategy into action continues to be the overarching focus for Tredegar, and a little later on the call, I'll discuss what that looks like in 2015.

將策略轉化為行動仍然是 Tredegar 的首要關注點，稍後我將在電話會議上討論 2015 年的情況。

Now I'll turn it over to Kevin for more detail on the financial results of the quarter and the year. Kevin?

現在我將把它交給凱文，以了解有關本季度和年度財務業績的更多詳細資訊。凱文？

Thank you, Nancy. I'll start off with an overview of reported net income for the fourth quarter and full year for Tredegar Corporation. For the fourth quarter, diluted earnings per share from continuing operations were $0.40 per share. Excluding special items, earnings per share from ongoing operations were $0.23 per share, and for the full year, diluted earnings per share from continuing operations were $1.11 per share. Excluding special items, earnings per share from ongoing operations were $1.13 per share.

謝謝你，南希。我將首先概述 Tredegar Corporation 第四季和全年報告的淨利潤。第四季持續經營業務攤薄後每股收益為 0.40 美元。不包括特殊項目，持續經營業務每股收益為 0.23 美元，全年持續經營業務攤薄後每股收益為 1.11 美元。不包括特殊項目，持續經營業務的每股盈餘為每股 1.13 美元。

Details of special items, which include the impact of non-operating investments, asset impairments and restructuring charges, are available on our website, along with additional information on discontinued operations.

我們的網站上提供了特殊項目的詳細信息，包括非經營性投資、資產減損和重組費用的影響，以及有關已終止經營業務的其他資訊。

Now let's focus on earnings-per-share from ongoing operations. The key components of variance for the quarter and full year were similar. So I'll focus my comments on the full year.

現在讓我們專注於持續經營業務的每股盈餘。該季度和全年的關鍵方差組成部分相似。因此，我將集中評論全年情況。

In 2014, as I mentioned, earnings-per-share from ongoing operations was $1.13 per share compared to $1.15 in the prior year. Key drivers were as follows. Earnings before taxes from ongoing operations was up $2.4 million. A couple of key drivers here.

正如我所提到的，2014 年持續經營業務的每股收益為 1.13 美元，而前一年為 1.15 美元。主要驅動因素如下。持續經營業務的稅前利潤增加了 240 萬美元。這裡有幾個關鍵驅動因素。

The combined operating profit from our business segments -- film products and Bonnell -- was $5.5 million below 2013. I'll get into the detailed results for our business segments in a moment.

我們的業務部門（電影產品和 Bonnell）的綜合營運利潤比 2013 年低 550 萬美元。

Non-cash pension expense in 2014 was $6.7 million, a decrease of $7 million compared to 2013. As we've discussed on previous calls, the lower pension expense in 2014 was primarily a result of an increase in a discount rate of 78 basis points to 4.99%.

2014 年非現金退休金支出為 670 萬美元，比 2013 年減少 700 萬美元。 4.99%。

Other corporate expenses were down approximately $1 million for the year.

今年其他公司開支減少了約 100 萬美元。

And finally, the full-year effective tax rate on income from ongoing operations was 35% compared to 31% in 2013. The increase, which was driven primarily by geographical income mix, had an unfavorable impact on earnings per share of $0.07.

最後，持續經營收入的全年有效稅率為 35%，而 2013 年為 31%。

Looking forward into 2015, our projection for non-cash pension expense is approximately $12.3 million or an increase of $5.6 million over 2014. The increase is driven primarily by an 82 basis point reduction in the discount rate, dropping the rate to 4.17% for 2015. The discount rate for 2015 is actually below the 2013 rate.

展望 2015 年，我們對非現金退休金支出的預測約為 1,230 萬美元，比 2014 年增加 560 萬美元。的折現率其實低於2013年的折現率。

Also, the impact of our decision to freeze all future service benefits for certain pension plan participants is essentially offset by the impact of new mortality tables.

此外，我們決定凍結某些退休金計劃參與者的所有未來服務福利的影響基本上被新死亡率表的影響所抵消。

And finally in 2015, we expect an effective tax rate on income from operations to be approximately 35%, similar to the 2014 rates.

最後，我們預計 2015 年營運收入的有效稅率約為 35%，與 2014 年的稅率類似。

Now let's focus on the financial performance of our business segments. Before getting into the specifics of results for the quarter and full year for film products, I'd like to highlight a couple of points that Nancy made at the outset.

現在讓我們專注於我們業務部門的財務表現。在詳細了解電影產品季度和全年業績之前，我想先強調南希一開始提出的幾點。

The loss of the baby care elastic laminate business in North America was mitigated in large part by the favorable results of other personal care materials and surface protection films. And clearly the biggest drivers of unfavorable performance for film products in 2014 were competitive pricing pressures and operational inefficiencies for our flexible packaging operations in Brazil. As Nancy mentioned, we committed to resolve production outputs and operational inefficiencies in Brazil, and by year-end we did just that.

北美嬰兒護理彈性層壓板業務的損失在很大程度上因其他個人護理材料和表面保護膜的良好業績而得到緩解。顯然，2014 年薄膜產品業績不佳的最大驅動因素是我們在巴西的軟包裝業務的競爭性定價壓力和營運效率低。正如南希所提到的，我們致力於解決巴西的產量和營運效率低下問題，到年底我們做到了這一點。

Now for the numbers. For the fourth quarter, film products net sales of $140 million were 7% below prior year, and operating profit from ongoing operations of $13.2 million were 16% below prior year.

現在來看數字。第四季度，電影產品淨銷售額為 1.4 億美元，比去年同期下降 7%，持續經營業務的營業利潤為 1,320 萬美元，比去年同期下降 16%。

The key driver in lower net sales for the quarter was the loss of the baby care elastic laminate business in North America, which reduced sales by $10.6 million or 7%.

本季淨銷售額下降的主要驅動因素是北美嬰兒護理彈性層壓板業務的損失，導致銷售額減少 1,060 萬美元，即 7%。

While there were a number of offsetting impacts to operating profit, key elements of the $2.4 million variance in the prior year were as follows. The loss of the baby care plastic laminate business had an unfavorable impact of $1.1 million.

雖然營業利潤受到許多抵銷影響，但上一年 240 萬美元差異的主要因素如下。嬰兒護理塑膠層壓板業務的損失造成了 110 萬美元的不利影響。

Excluding this impact, higher volume and other products had a favorable impact of $4.4 million.

排除這一影響，銷量增加和其他產品帶來了 440 萬美元的有利影響。

Competitive pricing pressures and operational inefficiencies reduced operating profit by $1.2 million and $4.4 million, respectively, as unfavorable results in flexible packaging films were partially offset by improved pricing and operational performance and surface protection films and personal care materials.

競爭性定價壓力和營運效率低下分別導致營業利潤減少 120 萬美元和 440 萬美元，因為軟包裝薄膜的不利結果被定價和營運績效以及表面保護薄膜和個人護理材料的改善部分抵消。

Now looking at the full year, film products net sales of $579 million were 7% lower than prior year, and operating profit of $58 million was 18% below prior year. A key driver in lower net sales was the loss of the baby care business, which reduced sales by $34 million or 5.5%.

現在來看全年，電影產品淨銷售額為 5.79 億美元，比上年下降 7%，營業利潤為 5,800 萬美元，比上年下降 18%。淨銷售額下降的關鍵因素是嬰兒護理業務的虧損，銷售額減少了 3,400 萬美元，即 5.5%。

The year-over-year change and profit for the full year was driven primarily by the following. Again competitive pricing pressures and operational inefficiencies reduced operating profit by $3.4 million and $6 million, respectively, as unfavorable results in flexible packaging films were partially offset by improved pricing and operational performance and surface protection films and personal materials.

全年同比變動和利潤主要由以下因素驅動。競爭性定價壓力和營運效率低下再次導致營業利潤分別減少 340 萬美元和 600 萬美元，因為軟包裝薄膜的不利結果被定價和營運績效以及表面保護膜和個人材料的改善部分抵消。

The baby care volume loss had an unfavorable impact of $7 million. And for the full year, the change in the dollar value currency had a positive impact of approximately $4.5 million. EBITDA margin for the year was 15.3% below our 16% target, driven by the performance in flexible packaging films.

嬰兒護理品銷售損失造成了 700 萬美元的不利影響。全年而言，美元價值貨幣的變化產生了約 450 萬美元的正面影響。受軟包裝薄膜績效的推動，今年的 EBITDA 利潤率比我們 16% 的目標低 15.3%。

Now let's take a look at Bonnell. As Nancy mentioned, this business had another strong year with broad-based volume growth in its key markets. Bonnell's success is a testament to translating its strategy of profitable growth and diversification into action, and it's the result of years of hard work by Bonnell to drive costs out of the business and increase its presence in non-construction markets.

現在讓我們來看看邦內爾。正如南希所提到的，該業務又迎來了強勁的一年，其主要市場的銷量出現了廣泛的成長。邦內爾的成功證明了其將獲利成長和多元化策略轉化為行動，這是邦內爾多年來努力降低業務成本並增加其在非建築市場的影響力的結果。

For the fourth quarter, compared to prior year, net sales were up 24%, and operating profit was up 20%. Key factors improving profits were volume growth of 13% year over year, including 7% volume growth in nonresidential building and construction, and favorable product mix reflecting continued strength in anodized and painted finished products and fabricated components. Higher volume and favorable product mix in the quarter were partially offset by operational inefficiencies associated with meeting the growth in demand for anodized products.

第四季度，與去年同期相比，淨銷售額成長 24%，營業利潤成長 20%。利潤提高的關鍵因素是銷量同比增長 13%，其中非住宅建築銷量增長 7%，以及有利的產品組合，反映出陽極氧化和塗漆成品以及製造部件的持續強勁。本季較高的銷售量和有利的產品組合被滿足陽極氧化產品需求成長相關的營運效率低下部分抵銷。

Looking at the full year, net sales increased $35 million to $344 million in 2014. Volume grew in all key end-use markets with year-over-year growth of 7%, and after a difficult winter, we saw solid growth in the second half of the year in the nonresidential building and construction market with volume up 6% year over year. We believe that we successfully held our market share in this important market.

縱觀全年，2014 年淨銷售額增加了3,500 萬美元，達到3.44 億美元。二年看到了穩健的成長今年上半年非住宅建築市場成交量年增 6%。我們相信我們在這個重要市場成功地維持了我們的市場份額。

With the successful expansion in the automotive extrusions market, Bonnell increased its presence in this rapidly growing market.

隨著汽車擠壓材市場的成功擴張，邦內爾擴大了在這個快速成長的市場的影響力。

Operating profit improved to $26 million, up 40% over the prior year. Higher volumes and improved product mix in line with what I just discussed in the fourth quarter had a favorable impact of over $5 million.

營業利潤增至 2,600 萬美元，較上年增長 40%。與我剛才在第四季度討論的情況一致，更高的銷售量和改進的產品組合產生了超過 500 萬美元的有利影響。

EBITDA margin of 10.3% was at the high end of our target range for this business.

10.3% 的 EBITDA 利潤率處於我們該業務目標範圍的高端。

Now moving onto some other key financial measures, you can see that we finished up the year with cash flow from operations just above $50 million. Capital spending for 2014 was nearly $45 million, coming in just below 5% of net sales. We project capital spending for 2015 of just over $40 million, which includes the completion of our new surface protection line in Guangzhou, China and the upgrade and expansion of our anodizing capacity at Bonnell's Carthage, Tennessee plant.

現在轉向其他一些關鍵的財務指標，您可以看到我們全年的營運現金流略高於 5000 萬美元。 2014 年的資本支出接近 4,500 萬美元，略低於淨銷售額的 5%。我們預計 2015 年的資本支出將略高於 4000 萬美元，其中包括完成我們在中國廣州的新表面保護生產線以及升級和擴建田納西州邦內爾迦太基工廠的陽極氧化產能。

And in May of 2014, we raised our quarterly dividend to $0.09 per share. Our fourth quarterly dividend increase in less than four years. For 2014 the total annual dividends paid was $11 million or $0.34 per share. And our balance sheet remains strong with net debt of $87 million and total debt to adjusted EBITDA of 1.42 times.

2014 年 5 月，我們將季度股利提高至每股 0.09 美元。我們的第四個季度股息在不到四年的時間內增加。 2014 年支付的年度股利總額為 1,100 萬美元，即每股 0.34 美元。我們的資產負債表依然強勁，淨負債為 8,700 萬美元，總負債與調整後 EBITDA 比率為 1.42 倍。

So, as I've said before, 2014 was a building year for Tredegar, and our return on invested capital of 8.5% reflects that. We remain committed to our return on invested capital targets of 11% to 12% in 2015.

因此，正如我之前所說，2014 年對 Tredegar 來說是建設性的一年，我們 8.5% 的投資資本回報率反映了這一點。我們仍致力於 2015 年 11% 至 12% 的投資資本報酬率目標。

As we drive solid execution in 2015, we will continue our focus on cash performance and returning capital to shareholders while maintaining our financial strength and flexibility.

2015 年，隨著我們紮實執行，我們將繼續專注於現金績效和向股東返還資本，同時保持我們的財務實力和靈活性。

Now with that, I'll turn it back to Nancy.

現在，我會把它轉回給南希。

Thanks, Kevin. Now let's talk about 2015. As Kevin said, 2014 was a building year, and 2015 will be a year of execution for Tredegar. While we have a couple of key strategic projects that we'll complete during the year, for the most part, we've put the investments in place to drive top and bottom line improvement, and that's what we intend to do in 2015.

謝謝，凱文。現在我們來談談2015年。雖然我們有幾個關鍵策略項目將在今年完成，但在大多數情況下，我們已經將投資到位以推動營收和利潤的改善，這就是我們打算在 2015 年做的事情。

For film products, that means leveraging our value-added capabilities for our flexible packaging film and driving continuous improvements in our flexible packaging operations. It also means the continued successful ramp-up of our new flexible packaging line.

對於薄膜產品，這意味著利用我們的軟包裝薄膜的增值能力，推動我們軟包裝業務的持續改進。這也意味著我們新的軟包裝生產線的持續成功升級。

As I mentioned earlier, we expect market conditions for our flexible packaging films to be difficult, particularly in the first half of the year, but should see our commercial efforts translate into improved results as the year progresses.

正如我之前提到的，我們預計軟包裝薄膜的市場狀況會很困難，特別是在今年上半年，但隨著時間的推移，我們的商業努力應該會轉化為更好的業績。

In the first half of the year, mainly in the first quarter, we will be impacted by the remaining year-over-year profit impact of the loss of the baby care elastic laminate volume in America, which we estimated at about $2 million.

今年上半年，主要是第一季度，我們將受到美國嬰兒護理彈性層壓板銷售損失的剩餘同比利潤影響，我們估計該銷量約為 200 萬美元。

During the first quarter, we will be expanding our anodizing capacity at Bonnell to address our customers growing demands. While this temporarily requires us to take capacity out of the system and will impact first-quarter results, this expansion positions us well for the long-term.

在第一季度，我們將擴大邦內爾的陽極氧化產能，以滿足客戶不斷增長的需求。雖然這暫時需要我們從系統中釋放產能並將影響第一季的業績，但從長遠來看，這種擴張使我們處於有利地位。

As we look at the full year, we expect year-over-year volume growth for both film products and Bonnell in 2015 driven by solid market growth in our key market segments.

展望全年，我們預計 2015 年薄膜產品和 Bonnell 的銷量將在我們關鍵細分市場的穩健市場成長的推動下實現同比增長。

In film products, we're really pleased with the results from our new product and expect them to drive growth. As I mentioned earlier, our new surface protection film, Forcefield Pearl, has been a major success in the market. We expect to continue to grow Pearl in 2015.

在電影產品方面，我們對新產品的成果非常滿意，並期望它們能夠推動成長。正如我之前提到的，我們的新型表面保護膜 Forcefield Pearl 在市場上取得了巨大成功。我們預計 2015 年將繼續種植珍珠。

We also see opportunities to expand our customer base for our surface protection films.

我們也看到了擴大表面保護膜客戶群的機會。

We expect several new personal care product introductions to support topline growth. These include elastic films and laminates, as well as acquisition distribution layers for adult incontinence and babycare applications. As we said before, our product innovation is creating value and positioning us well for organic growth for 2015 and beyond.

我們預計推出幾款新的個人護理產品將支持營收成長。其中包括彈性薄膜和層壓材料，以及用於成人失禁和嬰兒護理應用的採集分佈層。正如我們之前所說，我們的產品創新正在創造價值，並為我們 2015 年及以後的有機成長做好準備。

For Bonnell, the rollout of the new automotive programs will coincide with the continued successful ramp-up of our automotive prep. We've expanded our medium strength capabilities and look to grow in those end markets. And, of course, we expect to realize growth for nonresidential construction consistent with the continued recovery of that market.

對邦內爾來說，新車計畫的推出將與我們汽車準備工作的持續成功提升同時進行。我們已經擴大了我們的中等強度能力，並希望在這些終端市場中成長。當然，我們預計非住宅建築的成長將與該市場的持續復甦保持一致。

As we look beyond 2015, we expect to continue to build on the momentum that should become evident during the second half of 2015. On our call last year, we shared our performance targets for 2016.

展望 2015 年以後，我們預計將繼續鞏固這一勢頭，這種勢頭在 2015 年下半年將變得明顯。

Our main reason for selecting 2016 was that we saw 2014 as a building year, and we wanted to give investors some sense of when they should expect Tredegar's return on the significant investments that we've made over the last few years.

我們選擇 2016 年的主要原因是我們將 2014 年視為建設年，我們希望讓投資者了解何時應該期望 Tredegar 從我們過去幾年進行的重大投資中獲得回報。

While outlook for 2016 hasn't changed in any meaningful way, we have restated the 2016 volume growth targets to reflect a two-year compounded annual growth rate now that we've closed the books on 2014.

雖然 2016 年的前景沒有任何有意義的變化，但既然我們已經結束了 2014 年的帳目，我們就重申了 2016 年的銷售成長目標，以反映兩年的複合年增長率。

Our key volume drivers in film products will be the incremental volumes on the new flexible packaging line, as well as continued growth for surface protection and personal care materials, resulting in an overall compounded annual growth rate of 8% to 9%.

我們薄膜產品銷售的主要推動力將是新軟包裝生產線的銷售增量，以及表面保護和個人護理材料的持續增長，從而實現 8% 至 9% 的整體複合年增長率。

We are targeting film products adjusted EBITDA margins to rise to the 17% to 18% range from just above 15% in 2014. This target reflects some downward pressure versus our original target of 18% from the impact of competitive pricing for our flexible packaging film and lower volumes.

我們的目標是將薄膜產品調整後的EBITDA 利潤率從2014 年的略高於15% 升至17% 至18%。定價的影響而產生的一些下行壓力和較低的體積。

While slightly down from 2014, Bonnell's volumes should grow at a healthy compounded annual growth rate of approximately 5% to 6%. We expect growth in the nonresidential market to be in line with this target, along with mid-single digit growth in some of our non-construction markets. We project the continued ramp-up of automotive with the press at full capacity in 2016.

雖然較 2014 年略有下降，但 Bonnell 的銷量應以約 5% 至 6% 的健康複合年增長率增長。我們預計非住宅市場的成長將與此目標保持一致，一些非建築市場的成長也將達到中個位數。我們預計 2016 年汽車產業將持續成長，印刷機將滿載生產。

The adjusted EBIT margin for Bonnell was 10.3% in 2014, exceeding our original target of 9% percent. As we move forward, we anticipate that Bonnell's EBITDA margin will be in the 10% to 11% range.

Bonnell 2014 年調整後的息稅前利潤率為 10.3%，超出了我們最初 9% 的目標。隨著我們的前進，我們預計 Bonnell 的 EBITDA 利潤率將在 10% 至 11% 範圍內。

As for Tredegar's return on invested capital performance, total Company returns came in at 5% and 8.5% for 2014, smack in the middle of our 2014 target range, largely as a result of the new capacity investments that came online during the year.

至於 Tredegar 的投資資本回報率表現，2014 年公司總回報率分別為 5% 和 8.5%，正好處於我們 2014 年目標範圍的中間位置，這主要是由於年內上線的新產能投資的結果。

With those capacity expansions projects finishing up, we expect return on invested capital to be in the 11% to 12% range in 2016.

隨著這些產能擴張項目的完成，我們預計 2016 年投資資本報酬率將在 11% 至 12% 之間。

We are committed to our strategy, one that focuses on our manufacturing capabilities and innovation. We believe that the actions we've taken in executing this strategy will drive sustainable long-term growth, and we continue to look for opportunities to return capital to our shareholders.

我們致力於我們的策略，這項策略專注於我們的製造能力和創新。我們相信，我們在執行這項策略時所採取的行動將推動可持續的長期成長，我們將繼續尋找機會向股東返還資本。

Our overarching objective is to create shareholder value, and Tredegar's management team is committed to doing just that. And with that, we'll take questions.

我們的首要目標是創造股東價值，Tredegar 的管理團隊致力於實現這一目標。接下來，我們將回答問題。

Danielle, may we have the first question?

丹妮爾，我們可以問第一個問題嗎？

(Operator Instructions). Drake Johnstone, Davenport.

（操作員說明）。德雷克·約翰斯通，達文波特。

My first question has to do with your film division. I get the impression from your release that you had a $4.4 million one-time cost in the fourth quarter associated with your flexible packaging line, and I received the impression from your release that you don't expect that cost to recur. So would that suggest that in the first quarter that your volume and price remain similar to the fourth quarter that you would probably be higher by that amount?

我的第一個問題與你們的電影部門有關。我從您的新聞稿中得到的印像是，您在第四季度與軟包裝生產線相關的一次性成本為440 萬美元，而且我從您的新聞稿中得到的印像是您預計該成本不會再次發生。那麼，這是否表明第一季你們的銷售和價格與第四季度相似，你們可能會高出這個數字？

Hi, Drake. This is Kevin. Thanks for your question. A couple of things. The $4.4 million number is the operational impact for film products. It's not a one-time non-recurring thing. There are some one-time adjustments for inventory that we will describe as roughly $2 million.

嗨，德雷克。這是凱文.謝謝你的提問。有幾件事。 440 萬美元是對電影產品營運的影響。這不是一次性的、非重複性的事情。庫存有一些一次性調整，我們將其描述為大約 200 萬美元。

We also expect that the spending that we had to improve the efficiencies in flexible packaging over the second half of the year were approximately $2 million that we don't expect to happen again in 2015.

我們也預計下半年用於提高軟包裝效率的支出約為 200 萬美元，我們預計 2015 年不會再發生這種情況。

Okay. And on the capital expenditures, it sounds like it's coming down a little bit in 2015. Do you expect a more significant step down in 2016?

好的。至於資本支出，聽起來 2015 年會略有下降。

Well, we expected -- certainly we have $40 million in 2015. I don't think we project anything much beyond that. I mean our feeling is we'll -- if we have opportunities that require investments, we are comfortable doing that. But right now, if you look at the target for 2016, we don't require significant incremental investments beyond the $40 million range you see in 2015, to be honest.

嗯，我們預計 2015 年我們的收入將達到 4,000 萬美元。我的意思是，我們的感覺是，如果我們有需要投資的機會，我們會很樂意這樣做。但現在，如果您看看 2016 年的目標，老實說，我們不需要超出您在 2015 年看到的 4,000 萬美元範圍之外的大量增量投資。

Okay. Thank you.

好的。謝謝。

Mario Cibelli, GAMCO Investors.

Mario Cibelli，GAMCO 投資者。

I missed part of the call because there are too many conference calls, but I always want to listen to yours.

由於電話會議太多，我錯過了部分電話，但我一直想聽聽你的電話。

Kevin, Nancy, can you talk a little bit about what I call IntelliJet. You had a negative swing. Do you have a value on your balance sheet? Where do I find that value of what -- you have the status of this asset called Taleo, if I pronounced it -- is that how you pronounce it?

Kevin、Nancy，你們可以談談我所說的 IntelliJet 嗎？你有一個負面的波動。您的資產負債表上有價值嗎？我可以在哪裡找到這個資產的價值——你擁有名為 Taleo 的資產的狀態，如果我發音的話——你是這麼發音的嗎？

Yes, Taleo, and that is -- they used to be called IntelliJet. So it is the one of the same. You want to it is -- Kevin, do you want to answer it?

是的，Taleo，它們曾經被稱為 IntelliJet。所以它是同一個。你想要的是──凱文，你想回答嗎？

Yes, the valuation we have on our balance sheet is, I believe, $39 million at year-end, and you can see the description of it on page 59 of our K.

是的，我相信我們資產負債表上的估值在年底是 3900 萬美元，你可以在我們的 K.59 頁上看到它的描述。

Ah, what I didn't have. So any -- is there a mark-to-market based on last money in, or is it basically just a valuation based on book earnings and EBITDA? How do you mark it?

啊，我沒有的東西。那麼，是否有基於最後一筆資金的按市值計價，或者基本上只是基於帳面收益和 EBITDA 的估值？你如何標記它？

We basically do a number of cash flow projections, and we discount those cash flow projections and come to an estimated value for the Company. (multiple speakers)

我們基本上做了一些現金流量預測，並對這些現金流量預測進行折現，得出公司的估計值。 （多個發言者）

What percentage of the Company do you own?

您持有公司的股份比例是多少？

Just under 20%.

略低於20%。

Just 20%, yes.

只有20%，是的。

All right. So you're not consolidating for any reason, are you?

好的。所以你沒有出於任何原因進行整合，對嗎？

No.

不。

No.

不。

And you are just thinking as a line item, there was a negative swing in Q4? Just all of a sudden, if I look at your stock, it gets reasonably good investment here, but I gather you carried it under the other assets line of your balance sheet?

您只是將其視為一個訂單項，第四季度出現了負波動？突然之間，如果我看看你的股票，它在這裡得到了相當不錯的投資，但我猜你把它放在資產負債表的其他資產項下？

This is not considered in our ongoing operations. It's just (multiple speakers)

我們正在進行的運營中沒有考慮這一點。只是（多個發言者）

No, no, I got it. I got it just there. Secondly, on the pension costs, you talked about the negative swing in 2015, like a lot of companies with the discount rate, etc. What was the cash into pensions in 2014, and what do you expect it to be in 2015?

不，不，我明白了。我就在那兒得到了它。其次，關於退休金成本，您談到了2015年的負波動，就像許多公司有折現率等。

Cash in was roughly $2 million in 2014 and (multiple speakers).

2014 年現金收入約 200 萬美元（多位發言者）。

About the same.

差不多。

Yes, about the same 2015.

是的，2015 年也差不多。

Okay. So it's a P&L hit. Does that hit incrementally and smooth it out by quarter as in the Q1?

好的。所以這是一個損益表。這是否會像第一季那樣逐步增加並按季度平滑？

No, it's across the year. (multiple speakers)

不，是全年的。 （多個發言者）

That's what I figured, all right. (multiple speakers)

我就是這麼想的，好吧。 （多個發言者）

And when you look at the receivables of $14 million, does that just reflect the increase in the balance sheet year to year and that just reflects the higher revenues of the Q4, or is there any other issues?

當你查看 1400 萬美元的應收帳款時，這是否僅僅反映了資產負債表逐年增加以及第四季度更高的收入，還是還有其他問題？

No, no.

不，不。

No, other issues there.

不，還有其他問題。

All right. So I'm looking at trying to develop a cash model for you. And, you know, there are a lot of other little dynamics, and I'm sure the other analysts will ask them and I'll come back. I've got the big picture. Thanks for the update, and I always like the amount of data you give. Take care.

好的。所以我正在考慮為您開發現金模式。而且，你知道，還有很多其他的小動態，我相信其他分析師會問他們，我會回來的。我已經了解大局了。感謝您的更新，我一直喜歡您提供的數據量。小心。

Well, thanks for listening in, Mario. Appreciate it.

嗯，謝謝您的收聽，馬裡奧。欣賞它。

Thanks, Mario.

謝謝，馬裡奧。

(Operator Instructions). There are no further questions at this time. I'd like to turn the floor back over to Nancy Taylor for closing comments.

（操作員說明）。目前沒有其他問題。我想把發言權交還給南希·泰勒以供結束評論。

Great. Thank you, Danielle. Well, thanks, everyone, for joining in today, and we appreciate your continued interest in Tredegar. Have a good evening.

偉大的。謝謝你，丹妮爾。好的，謝謝大家今天的加入，我們感謝您對 Tredegar 的持續關注。祝你晚上愉快。

Thank you, ladies and gentlemen. This concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.

謝謝你們，女士們、先生們。今天的會議到此結束。此時您可以斷開線路。感謝大家的參與。