American Pad & Paper reports 1996 results.DALLAS--(BUSINESS WIRE)--Feb. 18, 1997-- Pro Forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share of $1.01 before extraordinary items American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Pad & Paper Co. (NYSE NYSE See: New York Stock Exchange :AGP (Accelerated Graphics Port) A high-speed 32-bit port from Intel for attaching a display adapter to a PC. It provides a direct connection between the card and memory, and only one AGP slot is on the motherboard. ) today reported results for the fourth quarter ended December December: see month. 31, 1996. The Company had 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 of $176.0 million, a 58.4% increase over net sales of $111.2 million reported in the fourth quarter of 1995. Net income for the fourth quarter was $10.5 million compared to a net loss, before an extraordinary item, of $12.3 million in 1995. Earnings per share in the fourth quarter was $0.36 compared to a loss of $0.42 before the extraordinary item in 1995. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net sales for the quarter were $176.0 million, a 5% increase over pro forma net sales of $168.2 million for the fourth quarter of 1995. The reduced cost of "uncoated free sheet," quarter to quarter, impacted our sales by $14 million, or 8%. Pro forma net income was $11.3 million, a 41% increase over pro forma net income, before an extraordinary item, of $8.1 million in 1995. Pro forma earnings per share in the fourth quarter was $0.38 compared to $0.27, before the extraordinary item, in 1995. Pro forma results for 1995 and 1996 primarily adjust for acquisitions and the reduction in interest expense from proceeds from the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . "1996 was the year we launched AP&P as a public company and the company performed exceptionally well during this critical phase," said Charles G. Hanson, III, the Company's Chairman and Chief Executive Officer. "We achieved our goals in revenue growth and profitability while increasing market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" with our target customers. "With the acquisition of Shade-Allied on February 11, 1997 we added Machine Papers to our core product lines of Writing Pads, File Folders and Envelopes," added Hanson. "This acquisition is part of our ongoing strategy of adding complementary product lines through accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. . This strengthens our position as supplier of choice to our giant customers, who are consolidating the office products market. We expect more of the same in 1997." For the year ended December 31, 1996, the Company had net sales of $583.9 million and, before an extraordinary item, income of $18.2 million, or earnings per share of $0.62 before the extraordinary item. For the year ended December 31, 1995 the Company had net sales of $257.2 million and a net loss of $5.0 million, or loss per share of $0.17 before the extraordinary item. Pro forma net sales for the year were $638.4 million and, before an extraordinary item, income of $29.9 million, or $1.01 per share. Pro forma results for the year of 1995 show net sales of $617.9 million and net income, before an extraordinary item, of $21.5 million, or $0.73 per share. American Pad & Paper Co., which invented the legal pad legal pad n. A pad of ruled, usually yellow writing paper that measures 8 1/2 by 14 inches. in 1888, is a leading manufacturer and marketer of paper-based office products 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. . In its 22 U.S. facilities, the Company manufactures and distributes writing pads, file folders, machine papers, envelopes and other office products. Name brands include: Ampad, Century, Embassy, Gold Fibre, Huxley Hux·ley , Andrew Fielding Born 1917. British physiologist. He shared a 1963 Nobel Prize for research on nerve cells. Huxley, Thomas Henry 1825-1895. , Karolton, Kent, Peel & Seel seel tr.v. seeled, seel·ing, seels To stitch closed the eyes of (a falcon). [Middle English silen, from Old French cillier, from Medieval Latin , SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. , Williamhouse and World Fibre. This release contains 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future financial results. Actual results may differ as a result of factors over which the Company has no control, including the strength of domestic and foreign economies, slower than anticipated sales growth, price and product competition and increases in raw material costs. Additional information which could affect the Company's financial results is included in the Company's prospectus on file with the Securities and Exchange Commission. -0-
AMERICAN PAD & PAPER CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended December 31
1996 1995 1996 1995
Actual Pro forma
Net Sales $176,046 $111,151 $176,046 $168,218
Gross Profit 40,914 24,049 40,914 35,118
Operating Income
(Loss) 26,447 (13,345)(1) 27,696 20,338
Income before
extraordinary item 10,466 (12,348) 11,340 8,073(2)
Net Income(Loss) 10,466 (22,000) 11,340 (1,081)
Weighted average
Common Shares
Outstanding 29,607 29,607 29,607 29,607
Earnings (Loss)
per share before
extraordinary item $0.36 ($0.42) $0.38 $0.27
(1) Operating results for the fourth quarter of 1995 included a non-
recurring compensation charge of $27,632 in connection with the
acquisition of Williamhouse and the Company's recapitalization.
(2) The pro forma net income for the three months ended December 31,
1995 has been adjusted to reflect an annualized effective tax rate of
36.1%, the Company's pro forma effective tax rate for all of 1995.
-0-
AMERICAN PAD & PAPER CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Year Ended December 31
1996 1995 1996 1995
Actual Pro forma
Net Sales $583,859 $257,160 $638,389 $617,869
Gross Profit 125,410 47,528 135,674 115,157
Operating Income 73,881 1,351(1) 82,718 65,356
Income before
extraordinary item 18,214 (5,034) 29,903 21,888(2)
Net Income (Loss) (1,781) (14,686) 9,908 12,751
Weighted average
Common Shares
Outstanding 29,607 29,607 29,607 29,607
Earnings (Loss)
per share
before extraordinary
item $0.62 (0.17) $1.01 $0.74
(1) Operating results for 1995 included a non-recurring compensation
charge of $27,632 in connection with the acquisition of Williamhouse
and the Company's recapitalization.
(2) The pro forma net income for the year ended December 31, 1995
has been adjusted to reflect an annualized effective tax rate of
36.1%, the Company's pro forma effective tax rate for all of 1995.
The previously published pro forma net income information for 1995
reflected an unusually low tax rate in 1995 due to the use of a loss
carryforward.
The unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated summary of operations for American Pad & Paper Company and its subsidiaries, in the opinion of management, reflects all adjustments necessary for a fair statement of the interim periods presented. It is suggested that this unaudited condensed consolidated summary of operations be read in conjunction with the financial statements and the notes included in the company prospectus and to be filed Form 10K. CONTACT: American Pad & Paper Co. Kevin W. McAleer 972/733-6244 OR Nicolazzo & Associates Richard E. Nicolazzo 617/951-0000 |
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