AT Plastics Reports First Quarter 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)--April 30, 1998--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) ) announced financial results for the first quarter ended March 31, 1998. Consolidated sales for the period increased 6 percent to $50.0 million, compared with $47.0 million for the first quarter of 1997. Net income for the quarter was $2.2 million, or $0.14 per share, compared with $1.9 million, or $0.13 per share in 1997, despite a 2.9 percent increase in the weighted average number of outstanding shares since last year. "We are pleased with our first quarter results, which reflect higher margins in our Polymers business and an increase in sales volume in our Films and Packaging business," said J.G. (Geoff) Clarke, President & Chief Executive Officer. The first quarter is typically the Company's weakest period, mainly due to the seasonal nature of the agricultural, 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 construction markets. Polymers Business The Company's Polymers business benefited from higher selling prices compared to the first quarter of last year, as well as improvements in logistics costs and reduced production of wide specification material. Some inventory buildup build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. was required during the period to help lower logistics costs, and sales volume had to be reduced. Sales of Flexet(tm) specialty pipe compounds increased modestly in the first quarter of 1998. The Company expects that sales of PowerGuard(tm) medium voltage power cable insulation insulation (ĭn'səlā`shən, ĭn'sy  –), use of materials or devices to inhibit or prevent the conduction of heat or of electricity. will accelerate
when its Peachtree City, Georgia Peachtree City (zip code 30269) is a city in Fayette County, Georgia, United States. One of the newest planned cities in Georgia, Peachtree City was chartered on March 9, 1959. Founded in 1979 as Peachtree City Development Corp. plant - with its bulk shipping
facilities - comes on stream later this year. Films & PackagingSales volume in the Company's Films and Packaging business increased 15 percent in the first quarter of 1998, compared with the same period last year. This increase reflects strong sales of Milpac(r) film and shipping sack products. Sales of horticultural and agricultural films were also up over 1997, but seasonally slow as expected. Backlogs for packaging products continue to be strong for most product lines. A new two-year labour contract has recently been ratified rat·i·fy tr.v. rat·i·fied, rat·i·fy·ing, rat·i·fies To approve and give formal sanction to; confirm. See Synonyms at approve. at the Brampton packaging plant. -0-
Change in EBITDA
Q1 1998 Compared with
($millions) Q1 1997 Q4 1997
Lower Volume - Polymers (0.5) (0.3)
Higher Unit Margins - Polymers 0.8 2.5
Higher (Lower) Unit Margins - Films & Packaging (0.4) 0.2
Higher (Lower) Volume - Films & Packaging 0.7 (1.9)
Higher Fixed Costs (0.2) (0.8)
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0.4 (0.3)
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Selling prices in 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. 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 held firm during the first quarter of 1998, despite the continuing decline in the price of commodity polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n that began in the third quarter of 1997. Capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. at AT Plastics' Polymers plant have meant that the recent disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of the South East Asian market has had little effect on the Company. Current credit arrangements will allow the Company to continue shipments to South East Asian customers at acceptable risk, barring further deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of these economies. Expansion Update During the first quarter of 1998, the first stage (extrusion) in the expansion of the Company's Brampton packaging plant came on stream. The final stages in this expansion will be operational by May, and will allow the Company to serve the growing requirements of its packaging customers. Construction remains on schedule for the Company's specialty compounds facility in Peachtree City, Georgia, along with the copolymer copolymer: see polymer. expansion at its Edmonton facility. Startup of these facilities is expected for late summer and early fall respectively. Financing Activities In March 1998, AT Plastics completed the issue of 2,467,500 common shares at $10.75 per share, for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $24.9 million. In addition, the Company is negotiating a $30 million increase in its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The Company anticipates that net proceeds from these financing activities, along with internally generated funds, will be sufficient to meet cash requirements to complete its current expansion program, as well as general working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Quarterly Dividend The Board of Directors has approved a quarterly dividend on the Company's common shares of $0.045 per share, payable June 3, 1998, to shareholders of record May 14, 1998. 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 reports 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 . -0-
AT Plastics Inc.
Consolidated Balance Sheets
As at March 31, 1998 & 1997. (Unaudited)
(Thousands of dollars)
March 31, 1998 March 31, 1997
-------------- ---------------
ASSETS
CURRENT
Cash $5,783
Accounts receivable 37,161 28,132
Inventory 55,139 49,598
Prepaids 835 1,372
-----------------------------------------------------
98,918 79,102
OTHER 21,702 13,770
FIXED 294,347 186,176
-----------------------------------------------------
$414,967 $279,048
-----------------------------------------------------
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT
Bank overdraft - $415
Accounts payable 45,134 27,298
Current portion of
long-term debt 8,289 6,918
-----------------------------------------------------
53,423 34,631
OTHER LIABILITIES - 585
DEFERRED INCOME TAXES 16,407 11,044
LONG-TERM DEBT 163,639 84,631
-----------------------------------------------------
233,469 130,891
-----------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock 153,937 128,404
Retained earnings 27,561 19,753
-----------------------------------------------------
181,498 148,157
-----------------------------------------------------
$414,967 $279,048
-----------------------------------------------------
Certain comparative figures have been reclassified to conform
with the current year's presentation.
AT Plastics Inc.
Consolidated Statements Of Changes In Financial Position
For The 3 Months Ended March 31, 1998 & 1997 (Unaudited)
(Thousands of dollars, except per share amounts)
3 Months Ended
March 1998 March 1997
------------ ------------
CASH FROM (USED IN)
OPERATIONS
Net income
for the period $2,160 $1,940
Add items charged
to income not affecting cash
Depreciation and amortization 2,588 2,479
Amortization of exchange
on long term debt 165 86
Deferred income tax 1,362 1,045
-----------------------------------------------------------
Cash flow before change in
working capital & other
liabilities 6,275 5,550
Change in non-cash working
capital and other liabilities 1,779 (4,856)
-----------------------------------------------------------
8,054 694
-----------------------------------------------------------
FINANCING ACTIVITIES
Common shares issued 24,949 -
Long-term debt issued 15,000 -
Change in capital lease (9) 19
-----------------------------------------------------------
39,940 19
-----------------------------------------------------------
INVESTING ACTIVITIES
Purchase of fixed assets (41,516) (15,283)
Change in other assets (418) (383)
-----------------------------------------------------------
(41,934) (15,666)
-----------------------------------------------------------
DIVIDENDS PAID (688) (688)
-----------------------------------------------------------
INCREASE/(DECREASE) IN CASH
DURING THE PERIOD 5,372 (15,641)
CASH AND SHORT TERM INVESTMENTS
AT BEGINNING OF PERIOD 411 15,226
-----------------------------------------------------------
CASH/(BANK OVERDRAFT) AT
END OF PERIOD $5,783 ($415)
-----------------------------------------------------------
Cash flow per share from operations
before change in working
capital & other liabilities $0.40 $0.36
-----------------------------------------------------------
AT Plastics Inc.
Consolidated Statements Of Operations and Retained Earnings
For The 3 Months Ended March 31, 1998 & 1997 (Unaudited)
(Thousands of dollars, except per share amounts)
3 Months Ended
March 1998 March 1997
----------- -----------
SALES $49,886 $47,013
COST OF SALES AND OTHER EXPENSES 41,786 39,305
-----------------------------------------------------------
INCOME BEFORE THE UNDERNOTED ITEMS 8,100 7,708
LESS
Interest on long-term debt 1,562 1,934
Depreciation & amortization 2,588 2,479
Other interest (income) (39) (118)
Other expense 165 86
-----------------------------------------------------------
4,276 4,381
-----------------------------------------------------------
INCOME BEFORE INCOME TAXES 3,824 3,327
INCOME TAXES
Current 302 342
Deferred 1,362 1,045
-----------------------------------------------------------
1,664 1,387
-----------------------------------------------------------
NET INCOME FOR THE PERIOD 2,160 1,940
RETAINED EARNINGS AT
BEGINNING OF PERIOD 26,089 18,501
DIVIDENDS PAID (688) (688)
-----------------------------------------------------------
RETAINED EARNINGS AT END OF PERIOD $27,561 $19,753
-----------------------------------------------------------
AVERAGE NUMBER OF
SHARE OUTSTANDING ('000s) 15,732 15,293
-----------------------------------------------------------
NET INCOME PER SHARE $0.14 $0.13
-----------------------------------------------------------
CONTACT: AT Plastics Inc. Jim Donaghy, 905/ 452-6738 Web site: http://www.atplas.com |
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