AT Plastics Announces First Quarter 2000 Results.Business Editors 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)--April 20, 2000 AT Plastics Inc.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :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. .) (AMEX AMEX See: American Stock Exchange :ATJ ATJ Association of Teachers of Japanese ATJ According to Jim (Jim Belushi TV show) ATJ Access Technology Japan (Japanese IT recruiting company) ) today announced financial results for the first quarter ended March 31, 2000. All figures are in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . FINANCIAL RESULTS 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 increased $20.8 million or 37%, from $55.8 million in the first quarter of 1999 to $76.6 million in the first quarter of 2000. The increase in sales was principally due to higher sales volume from the expanded 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. Polymers plant in 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 . Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the Performance Compounds business. Mr. J.G. Clarke Clarke , Arthur Charles Born 1917. British writer, scientist, and underwater explorer noted for his stories of space exploration. His works include 2001: A Space Odyssey (1968). , Executive Vice Chairman (Chief Executive Officer prior to January January: see month. 1, 2000) resigned from employment effective March 31, 2000. As a result, the Company recorded a special charge of $1.1 million to reflect amounts payable to Mr. Clarke under the terms of his employment contract. Net loss for the first quarter of 2000 was $0.08 per share as compared to a net profit of $0.01 per share for the first quarter of 1999. Net results for 2000 were adversely affected by higher interest expense ($0.08 per share after tax), higher depreciation expense ($0.06 per share after tax) and the severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charge discussed above, ($0.03 per share after tax). Interest expenses in the first quarter of 2000 were higher than the previous year as a result of interest costs on debt related to the expansion of the Edmonton 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 that were capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. in the first two months of 1999. Depreciation expense increased principally as a result of a full quarter of commercial operations of the expanded Edmonton plant, which commenced commercial production on March 1, 1999 and the Performance Compounding plant in Peachtree Peachtree can be several things:
Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. which commenced commercial production in the fourth quarter of 1999. SPECIALTY POLYMERS BUSINESS Sales of the Company's Specialty Polymers business increased $20.3 million or 71% from $28.6 million for the first quarter of 1999 to $48.9 million for the first quarter of 2000, reflecting higher production and sales from the expansion of the Edmonton plant. Sales volumes of the Company's Specialty Polymers business increased 27 million lbs. or 60% during the first quarter of 2000 as compared to the same period in 1999. Gross margins increased as a result of higher average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. and lower manufacturing costs per pound, partially offset by higher raw material prices. Manufacturing costs per pound decreased due to higher production volumes and lower scrap rates. EBITDA from the Specialty Polymers business increased $6.5 million or 127% from $5.1 million in the first quarter of 1999 to $11.6 million in the first quarter of 2000, principally as a result of higher production and sales volumes. FILMS AND PACKAGING BUSINESS Sales of the Company's Films and Packaging business increased $2.4 million or 13% from $18.9 million for the first quarter of 1999 to $21.3 million for the first quarter of 2000, reflecting a 4% increase in sales volume and a 9% increase in selling prices. Gross margins remained relatively stable as increases in raw material prices were offset by higher selling prices. EBITDA from the Films and Packaging business increased $400,000 or 24% from $1.7 million in the first quarter of 1999 to $2.1 million in the first quarter of 2000, principally as a result of higher sales volumes. PERFORMANCE COMPOUNDS BUSINESS Sales of the Company's Performance Compounds business decreased $1.9 million or 23% from $8.4 million for the first quarter of 1999 to $6.5 million for the first quarter of 2000, reflecting lower sales volumes of the Flexet(r) and Aqua-Link(r) compounds partially offset by higher sales volume from the Company's facility in Peachtree, Georgia which commenced commercial production in the fourth quarter of 1999, producing the PowerGuard(r) compound. EBITDA for the first quarter of 2000 was adversely affected by operating losses of the Peachtree facility and lower profits from Flexet(r) and Aqua-Link(r) due to lower sales volumes. As a result, EBITDA from the Performance Compounds business was a loss of $1.2 million in the first quarter of 2000 as compared to positive EBITDA of $1.4 million in the first quarter of 1999. NEW ACCOUNTING STANDARDS The Company adopted two new accounting standards effective January 1, 2000. The first standard relates to the accounting for future employee benefits including pension and non-pension post retirement benefits and the second standard relates to the accounting for income taxes. The financial effect of the standard on employee benefits was to record an adjustment to related assets and liabilities of $14.4 million, reduce retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. by $9.2 million and reduce deferred tax liabilities by $5.2 million on the balance sheet as of January 1, 2000. The effect on earnings on a prospective basis is an estimated annual non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $600,000. The effect of the new accounting standard on income taxes was to record an increase in future taxes payable of $857,000 and a reduction of an equal amount from retained earnings on the balance sheet as of January 1, 2000. The effect on earnings on a prospective basis is not expected to be material. 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 are listed 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 trading symbol Trading symbol See: Ticker symbol "ATP", and on 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 trading symbol "ATJ". The preceding discussion is based on current available information and management expectations. Actual results may differ materially.
AT Plastics Inc.
Consolidated Balance Sheets
As at March 31, 2000 & 1999. (Unaudited)
(Thousands of dollars)
March 31, 2000 March 31, 1999
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ASSETS
CURRENT
Cash $667 $ -
Accounts receivable 43,261 34,368
Inventory 52,931 49,622
Prepaids 670 505
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97,529 84,495
FIXED 372,822 385,154
OTHER 30,304 36,970
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$500,655 $506,619
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LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT
Bank indebtedness $ - 970
Accounts payable 49,892 41,324
Current portion of long-term debt 13,207 12,390
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63,099 54,684
EMPLOYEE FUTURE BENEFITS 6,590 -
FUTURE INCOME TAXES 14,147 20,829
LONG-TERM DEBT 194,098 226,821
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277,934 302,334
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SHAREHOLDERS' EQUITY
Capital stock 206,200 171,278
Retained earnings 16,521 33,007
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222,721 204,285
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$500,655 506,619
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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 3 Months Ended March 31, 2000 & 1999 (Unaudited)
(Thousands of dollars, except per share amounts)
3 Months Ended
March 31, 2000 March 31, 1999
-------------- --------------
SALES $76,634 $55,836
COST OF SALES AND OTHER EXPENSES 66,238 49,099
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INCOME BEFORE THE UNDERNOTED ITEMS 10,396 6,737
LESS
Interest on long-term debt 4,901 2,368
Depreciation and amortization 6,251 3,780
Interest (income)/expense 773 12
Special charges 1,133 -
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13,058 6,160
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INCOME/(LOSS) BEFORE INCOME TAXES (2,662) 577
INCOME TAXES
Current 310 374
Future (1,018) 66
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(708) 440
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NET INCOME/(LOSS) FOR THE PERIOD (1,954) 137
RETAINED EARNINGS AT BEGINNING
OF PERIOD 28,575 33,771
DIVIDENDS PAID - (901)
ADJUSTMENT TO RETAINED EARNINGS FOR
EMPLOYEE FUTURE BENEFITS (9,243) -
ADJUSTMENT TO RETAINED EARNINGS FOR
FUTURE INCOME TAXES (857) -
RETAINED EARNINGS AT END OF PERIOD $16,521 $33,007
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AVERAGE NUMBER OF SHARE
OUTSTANDING ('000's) 25,693 19,011
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NET INCOME/(LOSS) PER SHARE ($0.08) $0.01
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AT Plastics Inc.
Consolidated Statements Of Cash Flows
For The 3 Months Ended March 31, 2000 & 1999 (Unaudited)
(Thousands of dollars, except per share amounts)
3 Months Ended
March 31, 2000 March 31, 1999
-------------- --------------
CASH FROM/(FOR) OPERATING ACTIVITIES
OPERATIONS
Net income/(loss) for the period ($1,954) $137
Adjustments for:
Depreciation and amortization 6,251 3,780
Future income taxes (1,018) 66
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3,279 3,983
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Changes in non-cash working capital
Accounts receivable (1,489) (2,337)
Inventory (3,820) (2,746)
Prepaids (100) 608
Accounts payable (2,892) (61)
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(8,301) (4,536)
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FINANCING ACTIVITIES
Common shares issued 34,033 16,954
Long term debt paid (27,592) (15,023)
Dividends paid - (901)
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6,441 1,030
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INVESTING ACTIVITIES
Purchase of fixed assets (742) (1,926)
Increase in other assets (1,072) (3,813)
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(1,814) (5,739)
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INCREASE/(DECREASE) IN CASH DURING
THE PERIOD (395) (5,262)
CASH AT BEGINNING OF PERIOD 1,062 4,292
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CASH/(BANK INDEBTEDNESS) AT END
OF PERIOD $667 ($970)
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SEGMENTED INFORMATION
As at March 31, 2000 & 1999. (Unaudited)
(Thousands of dollars)
Results by Business Segment:
2000 1999
-------------- ------------
(000's)
Segment Revenues
Revenues from external parties
Specialty Polymers $48,856 $28,565
Performance Compounds 6,526 8,400
Films & Packaging 21,252 18,871
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$76,634 $55,836
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Revenues from transactions with
other operating segments
Specialty Polymers $4,889 $1,323
Performance Compounds - 10
Films & Packaging 301 310
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$5,190 $1,643
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Earnings Before Interest, Taxes,
Depreciation, Amortization and
Special Charges
Specialty Polymers $11,561 $5,094
Performance Compounds (1,152) 1,357
Films & Packaging 2,080 1,693
Corporate (2,093) (1,407)
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10,396 6,737
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Depreciation & Amortization
Specialty Polymers 4,043 2,219
Performance Compounds 1,012 51
Films & Packaging 935 902
Corporate 261 608
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6,251 3,780
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Segment Operating Profits
Specialty Polymers 7,518 2,875
Performance Compounds (2,164) 1,306
Films & Packaging 1,145 791
Corporate (2,354) (2,015)
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Total Segment Operating Profits 4,145 2,957
Interest on long term debt 4,901 2,368
Interest expense 773 12
Special charges 1,133 -
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Income/(loss) Before Taxes (2,662) 577
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Results by Geographic Segment:
Segment Revenues
Canada $23,757 $15,833
United States 44,853 35,762
Other 8,024 4,241
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$76,634 $55,836
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