American Pad & Paper reports second quarter results following a successful IPO of stock.DALLAS--(BUSINESS WIRE)--July 29, 1996--The American 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. ), in the first consolidated financial report following its 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. , today reported results for the second quarter ended June 30, 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 $114,099,000 and, before an extraordinary item, income of $691,000, or earnings per share of $0.04 before the extraordinary item. 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 results for the quarter showed net sales of $140,312,000 and, before an extraordinary item, income of $5,159,000, or $0.17 per share. The extraordinary item reported was a $1,300,000 loss, net of tax, due to the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt in May, 1996. During the second quarter ended June 30, 1995, on an actual basis the company had net sales of $44,772,000 and net income of $1,875,000, or earnings per share of $0.11. Pro forma results for the second quarter of 1995 show net sales of $143,523,000 and net income of $3,077,000, or $0.10 per share. Pro forma results for 1995 and 1996 primarily adjust for acquisitions and the reduction of debt with proceeds from the IPO. "We are very pleased with the strong sales and earnings growth," said Charles G. Hanson, III, the company's chairman and chief executive officer. "We achieved our profitability goals and are on target with new product introductions and 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" to our fast growing key customers: national contract stationers, office supply super stores, mass merchants and paper merchants. Our costs savings programs continue to yield results. The successful acquisition of Williamhouse, on an actual basis, has obscured the Net Income comparisons due to interest expenses and the Purchase accounting treatment associated with the acquisition in 1995." On June 29, 1996, American Pad & Paper completed the strategic acquisition of Niagara. "The Niagara purchase combines with the acquisition last year of Williamhouse to advance our growth strategy. This strategy aims to solidify our position as supplier of choice -- and sole source supplier -- of an expanding product line to the industry's growing national distribution channels," said Hanson. "To become the consolidator of choice, we will continue to grow internally and by acquisition." American Pad & Paper also successfully completed the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its Regency division which was part of the Williamhouse-Regency acquisition. Hanson added, "We realized the Regency division was a non-strategic part of our core business and favorably divested the division as planned." The company's IPO which was completed on July 8, 1996 raised $177 million on the sale of 12,500,000 shares of common stock. "The 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). are being used primarily to repay debt," said Gregory M. Benson, executive vice president, chief financial officer and director of strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. and acquisitions. "We will pay off $165 million of debt including $70 million of high cost subordinate debt See Junior debt. which will significantly reduce interest expenses in future periods. The company also secured a new $300 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility which will provide us with the financial flexibility to continue to lead the consolidation of our industry." While growing by acquisition, American Pad & Paper was also expanding its product line, with high margin value-added products, such as Gold Fibre pads. "In 1995," said Hanson, "$70 million in sales were in product lines that did not exist in 1992 and we project new product sales to expand to more than $100 million in 1996." For the six months ended June 30, 1996, the company had net sales of $234,207,000 and, before an extraordinary item, income of $821,000, or earnings per share of $0.05 before the extraordinary item. Pro forma results for the six month period showed net sales of $288,737,000 and, before an extraordinary item, income of $9,696,000, or $0.33 per share. During the six months ended June 30, 1995, on an actual basis, the company had net sales of $92,222,000 and net income of $2,464,000, or earnings per share of $0.14. Pro forma results for the six months of 1995 show net sales of $293,818,000 and net income of $4,662,000, or $0.16 per share. In addition to the acquisitions of Niagara and Williamhouse, the company previously acquired Globe-Weis in August, 1995. 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, envelopes and other office products. Name brands include: Ampad, Century, Embassy, Gold Fibre, Huxley, 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. -0- 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 June 30
1996 1995 1996 1995
Actual Pro forma
Net Sales $114,099 $44,772 $140,312 $143,523 Gross Profit 24,931 7,924 30,224 25,915 Operating Income 13,206 5,077 16,450 14,307 Income before extraordinary item 691 1,875 5,159 3,077 Net Income/(Loss) (609) 1,875 3,859 3,077 Weighted average common Shares outstanding 17,107 17,107 29,607 29,607 Earning per share before extraordinary item $0.04 $0.11 $0.17 $0.10 -0-
AMERICAN PAD & PAPER CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Six Months Ended June 30
1996 1995 1996 1995
Actual Pro forma
Net Sales $234,207 $92,222 $288,737 $293,818 Gross Profit 48,459 13,221 58,723 49,045 Operating Income 25,709 7,624 32,046 26,001 Income before extraordinary item 821 2,464 9,696 4,662 Net Income/(Loss) (479) 2,464 8,39 4,662 Weighted average common shares outstanding 17,107 17,107 29,607 29,607 Earning per share before extraordinary item $0.05 $0.14 $0.33 $0.16 -0- 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. CONTACT: Gregory M. Benson American Pad & Paper Co. 214/733-6200 or Richard E. Nicolazzo Nicolazzo & Associates 617/227-4150 |
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