American Biltrite Announces Plans to Exit Wood Business.Business Editors WELLESLEY MILLS, Mass.--(BUSINESS WIRE)--Aug. 6, 2003 American Biltrite Inc. (AMEX AMEX See: American Stock Exchange :ABL) reported today that it plans to sell or otherwise dispose of its Janus pre-finished hardwood flooring business and will record a charge to second quarter earnings in connection with the planned disposition. American Biltrite's second quarter results will include $8.5 million in non-cash charges 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. reducing the carrying values Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , inventories, deferred tax assets, and other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. to amounts expected to be realized through the disposition. The Company expects these charges will represent the substantial majority of the expenses to exit this business. Future expenses in connection with the disposition, which will be reported as losses on discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , are currently anticipated to be approximately $2 million. The Company anticipates the disposition of Janus, net of future expenses, will generate between $3 million and $5 million in cash. Roger S. Marcus, Chairman of the Board, commented, "American Biltrite's decision to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose the Janus business will permit us to concentrate our capital and management resources on our other operations, where we believe we can earn acceptable returns. Despite a significant investment in acquiring and moving into a new manufacturing facility for the Janus operation, we have been unable to improve its efficiency or increase its sales to acceptable levels. The combination of downward pricing pressures in the market and higher costs for raw lumber have resulted in continuing operating losses operating loss 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. for Janus, and we do not believe that it would be in American Biltrite's best interests to continue funding those losses or invest further capital to try to grow sales beyond the break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. . We have therefore decided to sell or otherwise dispose of the Janus business, and unless it is sold, expect to cease its operations by October. I thank the employees of Janus for their efforts. Our decision and the market conditions that drove it are in no way a reflection on their dedication." WARNING REGARDING FORWARD LOOKING STATEMENTS THE ABOVE NEWS RELEASE CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS WITHIN THE MEANING 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, THAT INVOLVE RISKS, UNCERTAINTIES AND ASSUMPTIONS. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON AMERICAN BILTRITE'S EXPECTATIONS, AS OF THE DATE OF THIS RELEASE, OF FUTURE EVENTS. AMERICAN BILTRITE UNDERTAKES NO OBLIGATION TO UPDATE ANY OF THESE FORWARD LOOKING STATEMENTS. ALTHOUGH AMERICAN BILTRITE BELIEVES THAT ITS EXPECTATIONS ARE BASED ON REASONABLE ASSUMPTIONS, WITHIN THE BOUNDS OF ITS KNOWLEDGE OF ITS BUSINESS AND EXPERIENCE, INCLUDING THE JANUS BUSINESS, THERE CAN BE NO ASSURANCE THAT ACTUAL RESULTS WILL NOT DIFFER MATERIALLY FROM EXPECTATIONS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON ANY FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER FROM EXPECTATIONS INCLUDE: (I) AMERICAN BILTRITE'S ABILITY TO TIMELY SELL OR OTHERWISE DISPOSE OF THE JANUS BUSINESS ON TERMS ACCEPTABLE TO AMERICAN BILTRITE, (II) AMERICAN BILTRITE'S ABILITY TO REALIZE THE CASH PROCEEDS ANTICIPATED UPON ANY SALE OR OTHER DISPOSITIONS OF THE JANUS BUSINESS AND (III) AMERICAN BILTRITE'S ABILITY TO SATISFY ANY APPLICABLE REGULATORY OR OTHER LEGAL REQUIREMENTS, INCLUDING CANADIAN REGULATIONS AND LAWS. |
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