AEP Industries Reports 1997 Third Quarter and Nine Months Results.SOUTH HACKENSACK Hackensack, city, United States Hackensack, city (1990 pop. 37,049), seat of Bergen co., NE N.J., on the Hackensack River, a residential and industrial suburb of New York City; settled 1647, inc. as a city 1921. , N.J.--(BUSINESS WIRE)--Sept. 9, 1997--AEP Industries Inc. (Nasdaq:AEPI) today announced results for its third quarter ended July July: see month. 31, 1997, which were slightly ahead of previously announced preliminary results and included the contribution from Borden Bor·den , Gail 1801-1874. American surveyor and inventor who developed condensed milk (1853) and other food products. Borden, Lizzie Andrew 1860-1927. Global Packaging (BGP (Border Gateway Protocol) The routing protocol that is used to span autonomous systems on the Internet. It is a robust, sophisticated and scalable protocol that was developed by the Internet Engineering Task Force (IETF). ) acquired in a purchase transaction in October October: see month. 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the 1997 third quarter were $198,031,000 compared to $63,907,000 in the third quarter of 1996. Income from operations increased to $10,677,000 from $5,673,000 during the third quarter of 1996. Net income was $2,214,000 compared with $2,305,000 in the prior year quarter. Earnings per share in the third quarter of 1997 were $0.30 versus $0.47 during the same period last year, on a 50.3% increase in the weighted average shares outstanding which reached 7,434,457 shares in the latest quarter. Net sales for the first nine months of 1997 were $570,019,000 versus $174,498,000 for the same period of 1996. Income from operations increased to $30,242,000 from $18,488,000 in the first nine months of 1996. Net income for the first nine months of 1997 was $8,261,000 compared with $7,974,000 in the year ago period. Earnings per share in the first nine months of 1997 were $1.11 versus $1.61 last year, on a 50.5% increase in the weighted average shares outstanding which were 7,439,781 shares in the latest quarter. The Company noted that 1997 third quarter sales and net income reflect continued adverse market conditions in the Company's domestic businesses. Domestic results were ahead of expectations, however, due to increased demand in the industrial film business, slightly higher prices for stretch film during the quarter and more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. raw material costs. Performance in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). was generally on track for the quarter.Gross profit as a percentage of net sales for the third quarter was 20.1% reflecting these factors as well as slightly improved capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. domestically offset by seasonally lower capacity utilization in Europe and Asia. Interest expense for the fiscal 1997 third quarter was $6,893,000 versus $2,048,000 for the third quarter of 1996 due to the acquisition of BGP. Brendan This article is about Saint Brendan of Clonfert. For other uses, see Brendan (disambiguation). Saint Brendan of Clonfert or Bréanainn of Clonfert (c. 484 – c. Barba barba [L.] beard. , Chairman and Chief Executive Officer of AEP AEP - Application Environment Profile , commented: "We are continuing to implement our worldwide strategy while fully focusing our attention on our domestic business in the face of a competitive industry environment. We are reallocating production capacity throughout our system where products and markets permit. In addition, our efforts include reformulating certain products to reduce manufacturing costs and starting up a new distribution center in Griffin, Georgia Griffin is a city in Spalding County, Georgia, United States. The population was 23,451 at the 2000 census. The city is the county seat of Spalding CountyGR6. that should reduce distribution costs distribution costs distribute npl → Vertriebskosten pl . At the same time, we are investing in Phase II of our integration program which is designed to further improve the efficiency of all of our businesses." AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company has operations in 12 countries throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Asia/Pacific and Africa. Except for historical information contained herein, the statements in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with pricing, volume, and conditions of markets. Those and other risks are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company. -0-
AEP INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
1997 1996 1997 1996
Net sales $198,031 $ 63,907 $570,019 $174,498
Cost of sales 158,323 48,288 451,771 127,547
Gross profit 39,708 15,619 118,248 46,951
Total operating expenses 29,031 9,946 88,006 28,363
Income from operations 10,677 5,673 30,242 18.588
Interest expense (6,893) (2,048) (19,923) (5,585)
Other, net 338 122 2,498 261
Income before income taxes 4,122 3,747 12,817 12,964
Income taxes 1,908 1,442 4,556 4,990
Net income $ 2,214 $ 2,305 $ 8,261 $ 7,974
Net income per share: $ 0.30 $ 0.47 $ 1.11 $ 1.61
Weighted average number of
shares outstanding 7,434,457 4,945,917 7,439,781 4,942,418
AEP INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
July 31, October 31,
1997 1996
ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 4,729 $ 12,067
Marketable securities -- 2,070
Accounts receivable, less allowance of
$5,036 in 1997 and $4,217 in 1996
for doubtful accounts 111,851 104,302
Inventories, net 90,720 94,336
Net assets held for sale 15,492 49,570
Other current assets 12,084 14,694
Deferred income tax benefit 7,363 1,633
Total current assets 242,239 278,672
PROPERTY, PLANT AND EQUIPMENT, at cost, less
accumulated depreciation and amortization of
$134,740 in 1997 and $120,725 in 1996 291,002 290,316
INTANGIBLE ASSETS 34,155 32,580
INVESTMENT IN JOINT VENTURE 15,249 15,028
OTHER ASSETS 11,060 9,313
TOTAL ASSETS $ 593,705 $ 625,909
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 95,297 $ 51,019
Accounts payable 66,736 75,252
Accrued expenses 34,639 56,451
Total current liabilities 196,672 182,722
LONG-TERM DEBT 286,196 325,438
OTHER LONG-TERM LIABILITIES 3,578 7,041
DEFERRED INCOME TAXES 15,645 15,575
Total liabilities 502,091 530,776
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock - $1.00 par value,
1,000,000 shares authorized;
none outstanding -- --
Common stock - $0.01 par value,
30,000,000 and 20,000,000 shares
authorized in 1997 and 1996, respectively;
9,984,680 and 9,931,303 shares issued and
outstanding in 1997 and 1996,
respectively 100 99
Additional paid-in capital 89,632 88,052
Treasury stock - common stock; at cost,
2,783,000 and 2,683,000 in 1997 and
1996, respectively (61,747) (62,142)
Retained earnings 78,369 70,108
Cumulative translation adjustment (14,740) (1,283)
Net unrealized investment gain, net of
taxes -- 299
Total shareholders' equity 91,614 95,133
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 593,705 $ 625,909
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CONTACT: Paul Feeney Executive Vice President and Chief Financial Officer (201) 807-2330 e-mail: paulf@aepind.com or Morgen-Walke Associates Investor Contact: June Filingeri, Jennifer Miller For the performer of the same name, see . Jennifer Miller (born 1961) is an American circus entertainer, writer and a university professor. Miller is a professor for the UCLA Department of World Arts and Cultures. She is a bearded woman, juggler, and fire eater. Media Contact: Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Froelich (212) 850-5600 |
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