AT PLASTICS REPORTS THIRD QUARTER 1996 RESULTS.BRAMPTON Brampton, city (1991 pop. 234,445), S Ont., Canada, NW of Toronto. Incorporated as a village (1852), a town (1873), and then a city (1976), it is noted for its greenhouses and flowers. Automobiles, shoes, lumber, optical goods, and other products are made. , Ontario--(BUSINESS WIRE)--Oct. 29, 1996--AT Plastics today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: sales for the nine months ended September September: see month. 30, 1996 of $159.5 million, 3% greater than consolidated sales of $155.3 million for the same period the previous year. Net income for the nine months was $11.1 million, or $0.79 per share, compared with $21.2 million, or $1.68 per share, reported in 1995. On a fully taxed basis, comparable earnings per share in the first nine months of 1995 would have been $1.17 as the Company was not recording deferred taxes until the third quarter of last year. Consolidated sales for the quarter ended September 30, 1996 were $59.2 million, 10% higher than consolidated sales of $53.9 million for the same period in 1995. Net income for the quarter was $3.9 million, or $0.26 per share, compared with $6.7 million, or $0.53 per share, reported in 1995 when the Company did not record deferred taxes for the full quarter. On a fully taxed basis, comparable earnings per share in the third quarter 1995 would have been $0.41. These results mainly reflect lower selling prices and higher costs in the Polymers business compared with the third quarter of 1995, and lower unit margins in the Films and Packaging business, which more than offset the benefits of higher volume in both the Polymers and Films and Packaging businesses. Sales volume in the Polymers business was significantly greater than the third quarter of 1995 in both 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. and the offshore markets. However, the higher level of wide specification material reported last quarter continued in the third quarter and adversely affected average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. . Production costs for the Polymers business were higher than a year ago due to the previously reported incident in the vinyl acetate Vinyl acetate, also known as VAM for vinyl acetate monomer, has the chemical formula CH3COOCH=CH2 and is a colorless liquid with a sweet flavor. Systematic names include 1-acetoxyethylene and acetic acid ethenyl ester. storage facilities, product mix and external compounding costs. Unit margins in the Films and Packaging business were squeezed due to delays in passing through resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing price increases during the quarter. Sales of Aqua-Link(R) products continued their strong year over year growth during the third quarter. Sales of the new Flexet(TM) materials for radiant heating radiant heating: see heating. radiant heating Heating system in which heat is transmitted by radiation from a heated surface. Radiant heating systems usually employ either electric-resistance wiring or hot-water heating pipes, which may embedded in and household water pipes commenced this quarter. Site preparation for the Edmonton Edmonton (ĕd`məntən), city (1991 pop. 616,741), provincial capital, central Alta., Canada, on the North Saskatchewan River. The center of the largest metropolitan area in Alberta, Edmonton, known as the "Gateway to the North," is located polymer polymer (pŏl`əmər), chemical compound with high molecular weight consisting of a number of structural units linked together by covalent bonds (see chemical bond). plant expansion continues and engineering and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. are progressing on plan. On September 25, 1996, the Company announced that it will build a new specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. compounds facility in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The new compounds facility will be located in the South Central U.S. and will start up in phases commencing in mid- mid- pref. Middle: midbrain. 1998. The Company has committed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $25 million to the initial phases of the project which will produce medium voltage The force, or pressure, of electricity. Also known as "potential." "Voltage drop" is the difference in voltage from one end of an electrical circuit to the other. For instructional purposes, voltage is often compared to water pressure. See volt-amps and current. insulation insulation (ĭn'səlā`shən, ĭn'sy  –), use of materials or devices to inhibit or prevent the conduction of heat or of electricity. compounds for the Wire and Cable
industry and cross-linkable polymers for the household and radiant
heating pipe market. -0-
Change in Operating Profit
($ millions)
Q3 1996 Compared with
Q3 1995 Q2 1996
Higher (lower) Volume - Polymers 3.7 (0.9)
Higher (lower) Selling Prices -
Polymers (3.0) 2.1
Change in value of Cdn. dollar 0.2 -
Higher variable costs - Polymers (2.4) (2.2)
Lower Unit Margins -
Films & Packaging (1.5) (0.6)
Higher Volume - Films & Packaging 0.3 0.5
Other 0.2 0.6
-------- -------
(2.5) (0.5)
Selling prices in North America for medium and high EVA Eva to marry winner of singing contest. [Ger. Opera: Wagner, Meistersinger, Westerman, 225–228] See : Prize 1. Eva - A toy ALGOL-like language used in "Formal Specification of Programming Languages: A Panoramic Primer", F.G. Copolymers began to recover during the third quarter. Selling prices for these products also continued to firm in the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. during the quarter. Higher commodity resin costs for the Films and Packaging business were being passed on to customers for a portion of the product range by quarter end. The season for horticultural hor·ti·cul·ture n. 1. The science or art of cultivating fruits, vegetables, flowers, or ornamental plants. 2. The cultivation of a garden. and agricultural films is expected to continue longer this year than last. The foregoing is based on current information and the expectations outlined above. Actual results may differ materially. Arrangements were well advanced by quarter end for a private placement of 12 year senior debentures and a 5 year committed revolving term bank facility to complete the financing for the capital program announced over the last several months. The Board of Directors has approved a quarterly dividend on the Company's Common Shares of $0.045 per share, payable December December: see month. 4, 1996, to shareholders of record November November: see month. 13, 1996. AT Plastics develops and manufactures specialty plastics raw materials and fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: products. The Company operates in specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. markets where its product development and process engineering have allowed it to develop proprietary and patented technologies, and to establish international niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. positions. AT Plastics' shares trade on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol ATP ATP: see adenosine triphosphate. ATP in full adenosine triphosphate Organic compound, substrate in many enzyme-catalyzed reactions (see catalysis) in the cells of animals, plants, and microorganisms. and the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the symbol ATJ ATJ Association of Teachers of Japanese ATJ According to Jim (Jim Belushi TV show) ATJ Access Technology Japan (Japanese IT recruiting company) . -0-
AT Plastics Inc.
Consolidated Balance Sheets
As at September 30, 1996 & 1995. (Unaudited)
(Thousands of dollars)
Sept 3O, 1996 Sept 30, 1995
ASSETS
CURRENT
Cash $31,271 $5,437
Accounts receivable 38,442 32,873
Inventory 37,029 34,052
Other 1,542 2,264
----------------------------------------------------------
108,284 74,626
OTHER 12,323 9,245
FIXED 158,390 148,249
----------------------------------------------------------
$278,997 $232,12O
===========================================================
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT
Accounts payable $28,482 $25,202
Current portion of long term
debt 6,270 6,126
-----------------------------------------------------------
34,752 31,328
OTHER LIABILITIES 893 1,955
DEFERRED INCOME TAXES 8,721 1,259
LONG-TERM DEBT 87,073 92,432
-----------------------------------------------------------
131,439 126,974
PREFERRED SHARES 3,000 3,000
SHAREHOLDERS' EQUITY
Capital Stock 128,404 97,667
Retained Earnings 16,154 4,479
-----------------------------------------------------------
144,558 102,146
-----------------------------------------------------------
$278,997 $232,120
-----------------------------------------------------------
Certain comparative figures have been reclassified to conform
with the current year's presentation.
AT Plastics Inc.
Consolidated Statements Of Operations and Retained Earnings
For The Periods Ended September 30,1996 & 1995 (Unaudited)
(Thousands of dollars, except per share amounts)
3 Months Ended
Sept 1996 Sept 1995
SALES $59,192 $53,863
COST OF SALES AND OTHER EXPENSES 48,257 40,385
---------------------------------------------------------------
INCOME BEFORE THE UNDERNOTED ITEMS 10,935 13,478
LESS
Interest on long-term debt 2,327 2,430
Depreciation & amortization 2,378 2,853
Amortization of exchange on
long term debt 63 27
Other interest (income) expense (432) (72)
----------------------------------------------------------
4,336 5,238
----------------------------------------------------------
INCOME BEFORE INCOME TAXES 6,599 8,240
INCOME TAXES
Current 374 305
Deferred 2,279 1,259
----------------------------------------------------------
2,653 1,564
----------------------------------------------------------
NET INCOME FOR THE PERIOD 3,946 6,676
RETAINED EARNINGS/
(DEFICIT) AT BEGINNING OF PERIOD 12,896 (1,627)
DIVIDENDS PAID (688) (570)
----------------------------------------------------------
RETAINED EARNINGS AT END OF PERIOD $16,154 $4,479
AVERAGE NUMBER OF SHARES
OUTSTANDING 15,293 12,668
----------------------------------------------------------
NET INCOME PER SHARE $0.26 $0.53
----------------------------------------------------------
NET INCOME PER SHARE - FULLY TAXED $0.26 $0.41
----------------------------------------------------------
9 Months Ended
Sept 1996 Sept 1995
SALES $159,487 $155,296
COST OF SALES AND OTHER EXPENSES 127,878 115,710
---------------------------------------------------------------
INCOME BEFORE THE UNDERNOTED ITEMS 31,609 39,586
LESS
Interest on long-term debt 7,120 7,517
Depreciation & amortization 7,283 8,591
Amortization of exchange on
long term debt 247 312
Other interest (income) expense (965) (225)
----------------------------------------------------------
13,685 16,195
----------------------------------------------------------
INCOME BEFORE INCOME TAXES 17,924 23,391
INCOME TAXES
Current 833 907
Deferred 5,964 1,259
----------------------------------------------------------
6,797 2,166
----------------------------------------------------------
NET INCOME FOR THE PERIOD 11,127 21,225
RETAINED EARNINGS/
(DEFICIT) AT BEGINNING OF PERIOD 6,968 (15,036)
DIVIDENDS PAID (1,941) (1,710)
----------------------------------------------------------
RETAINED EARNINGS AT END OF PERIOD $16,154 $4,479
AVERAGE NUMBER OF SHARES
OUTSTANDING 14,132 12,668
----------------------------------------------------------
NET INCOME PER SHARE $0.79 $1.68
----------------------------------------------------------
NET INCOME PER SHARE - FULLY TAXED $0.79 $1.17
----------------------------------------------------------
AT Plastics Inc.
Consolidated Statements Of Changes In Financial Position
For The Periods Ended September 30, 1996 & 1995 (unaudited)
(Thousands of dollars, except per share amounts)
3 Months Ended
Sept1996 Sept1995
CASH FROM (USED IN)
OPERATIONS
Net income for the period $3,946 $6,676
Add items charged to income
not affecting cash
Depreciation and amortization 2,378 2,853
Amortization of exchange on
long term debt 63 27
Deferred income tax 2,279 1,259
---------------------------------------------------
Cash flow before change in
working capital & other
liabilities 8,666 10,815
Increase in operating working
capital & other liabilities (3,191) (4,529)
---------------------------------------------------------
5,475 6,286
---------------------------------------------------------
FINANCING ACTIVITIES
Long term debt repaid - (990)
Common shares issued - -
Repayment of capital lease (34) (57)
---------------------------------------------------------
(34) (1,047)
INVESTING ACTIVITIES
Purchase of fixed assets (6,209) (2,035)
Change in other assets (443) (1,042)
---------------------------------------------------------
(6,652) (3,077)
---------------------------------------------------------
DIVIDENDS PAID (688) (570)
---------------------------------------------------------
INCREASE/(DECREASE) IN CASH
DURING THE PERIOD (1,899) 1,592
CASH AT BEGINNING OF PERIOD 33,170 3,845
---------------------------------------------------------
CASH AT END OF PERIOD $31,271 $5,437
=========================================================
Cash flow per share from operations
before change in working capital
& other liabilities $0.57 $0.85
---------------------------------------------------------
9 Months Ended
Sept1996 Sept1995
CASH FROM (USED IN)
OPERATIONS
Net income for the period $11,127 $21,225
Add items charged to income
not affecting cash
Depreciation and amortization 7,283 8,591
Amortization Of exchange on
long term debt 247 312
Deferred income tax 5,964 1,259
---------------------------------------------------
Cash flow before change in
working capital & other
liabilities 24,621 31,387
Increase in operating working
capital & other liabilities (9,648) (14,872)
---------------------------------------------------------
14,973 16,515
---------------------------------------------------------
FINANCING ACTIVITIES
Long term debt repaid (3,798) (3,233)
Common shares issued 29,897 -
Repayment of capital lease (149) (140)
---------------------------------------------------------
25,950 (3,373)
INVESTING ACTIVITIES
Purchase of fixed assets (13,783) (5,585)
Change in other assets (1,789) (1,767)
---------------------------------------------------------
(15,572) (7,352)
---------------------------------------------------------
DIVIDENDS PAID (1,941) (1,710)
---------------------------------------------------------
INCREASE/(DECREASE) IN CASH
DURING THE PERIOD 23,410 4,080
CASH AT BEGINNING OF PERIOD 7,861 1,357
---------------------------------------------------------
CASH AT END OF PERIOD $31,271 $5,437
=========================================================
Cash flow per share from operations
before change in working capital
& other liabilities $1.74 $2.48
---------------------------------------------------------
CONTACT: Jim Donaghy Vice President, Finance and Chief Financial Officer Tel: (905) 452-6738 Web site: attp://www.atplas.com |
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