Anchor Glass Container Corporation Reports 2004 First Quarter Results.Business Editors TAMPA, Fla.--(BUSINESS WIRE)--May 5, 2004 Anchor Glass Container Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AGCC) today reported financial results for its first quarter ended March 31, 2004. For the first quarter of 2004, 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 increased 16.7 percent to $189.6 million, from $162.4 million in the prior year, reflecting the impact of our new business awards and the continuation of the strong sales growth in all categories that began in the second half of 2003. Net loss in the first quarter of 2004 was $4.3 million, or 17 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), as compared with a net loss of $11.9 million for the first quarter of 2003. The improvement in sales was due primarily to the strong increase in shipping volumes, up 18.8 percent over the same period 2003 levels. Incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. volume from new business accounted for nearly half of the year-over-year increase, with all other segments showing solid growth, particularly the beer category. The decline in net loss resulted from the gains due to sales volume, increased manufacturing productivity due to our betterment bet·ter·ment n. 1. An improvement over what has been the case: financial betterment. 2. Law An improvement beyond normal upkeep and repair that adds to the value of real property. initiatives, lower interest cost and reduced rent expense as a result of the 2003 lease buyouts. These positive factors were partially offset by increased energy costs and higher freight expense In accounting, the concept of a freight expense account can be generalized as a payment for sending out a product to a customer. It falls under the umbrella category of Expenses and is treated like other expense accounts in relation to the accounting equation. . "We are excited to have initiated shipping under our new contracts and we continue to see strong growth in all segments, particularly the beer category. In addition, the plant upgrades we completed last year are showing the results we expected as productivity in the first quarter showed significant improvement over last year," said Richard M. Deneau, president and chief executive officer. Capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. for the quarter totaled $20.9 million as the Company performed a major reconstruction on one of the two furnaces in the Shakopee, Minnesota Shakopee is a city in Scott County, Minnesota, United States. The population was 20,568 in the 2000 census, with an estimated 2004 population of just short of 30,000, representing a growth of around 43 percent. It is the county seat of Scott County6. factory. This project has been completed and the new furnace furnace, enclosed space for the burning of fuel. There are many kinds of furnaces, the type depending upon the fuel and the use to which the heat produced within it is put. Most familiar are the furnaces used in the heating of buildings. is now fully operational. The Shakopee rebuild is the only major maintenance capital project planned for 2004. Dividend Declared The Board of Directors of Anchor declared a quarterly dividend of $0.04 per share of its common stock. The dividend is payable June 15, 2004 to stockholders of record at the close of business on June 1, 2004. First Quarter Conference Call Anchor Glass will discuss first quarter 2004 results during a conference call Thursday, May 6, 2004 at 8:30 a.m. Eastern Time. Interested parties may listen to the call through Shareholder.com investor center at www.shareholder.com/anchor/medialist.cfm or by phone at (800) 289-0572. Other Disclosures EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become is an amount equal to net loss plus interest expense; income taxes; depreciation and amortization; loss (gain) on fixed asset sales; and other non-cash items. EBITDA is not a presentation made in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) and is not intended to present a superior measure of financial condition or profitability from those determined under GAAP. EBITDA is a primary component of financial covenants under Anchor's debt agreements. Although management uses this measure, it is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. 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. This press release includes forward-looking statements. Forward- looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements involve risks and uncertainties faced by the Company including, but not limited to, economic, competitive, governmental and technological factors outside the control of the Company that may cause actual results to differ materially from the forward-looking statements. These risks and uncertainties may include the highly competitive nature of the glass container industry Glass containers are common parts of everyday life - we enjoy beverages such as water, soft drink, juice, beer, wine, spirit from bottles - jams and spreads from jars. The glass container's manufacture often involves a far greater level of complexity, automation and involvement and the intense competition from makers of alternative forms of packaging; fluctuations in the prices for energy, particularly natural gas, and other raw materials; the Company's focus on the beer industry and its dependence on certain key customers; the seasonal nature of brewing and other beverage industries; volatility in demand from emerging new markets; the Company's dependence on certain executive officers; and changes in environmental and other government regulations. The Company operates in a changing environment in which new risk factors can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in forward-looking statements. All forward-looking statements are subject to risks and uncertainties, including without limitation those identified in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which could cause actual results to differ from those projected. The Company disclaims any obligation to update any forward-looking statements. About Anchor Anchor Glass Container Corporation is the third largest manufacturer of glass containers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It has nine strategically located facilities where it produces a diverse line of flint (clear), amber, green and other colored glass containers for the beer, beverage, food, liquor and flavored alcoholic beverage alcoholic beverage Any fermented liquor, such as wine, beer, or distilled liquor, that contains ethyl alcohol, or ethanol, as an intoxicating agent. When an alcoholic beverage is ingested, the alcohol is rapidly absorbed in the stomach and intestines because it does not markets.
Anchor Glass Container Corporation
Financial Summary
Dollars in thousands. Unaudited.
First quarter ended March 31,
2004 2003
Net sales $189,561 $162,403
Cost of products sold 174,996 152,927
Selling and administrative expenses 7,091 6,646
Income from operations 7,474 2,830
Other income (expense), net 397 (588)
Interest expense (12,141) (14,131)
Net loss $(4,270) $(11,889)
Loss applicable to common stock $(4,270) $(14,230)
Basic and diluted net loss per share
applicable to common stock $(0.17) $(1.05)
Basic and diluted weighted average number
of common shares outstanding 24,516,244 13,499,995
EBITDA $25,188 $19,011
Other data for the first quarter ended March 31,
2004 2003
Depreciation $16,627 $15,439
Amortization 969 755
Capital expenditures 20,912 35,170
Balance sheet data
March 31, December 31,
2004 2003
Total assets $717,182 $706,544
Total debt 456,777 431,776
Total stockholders' equity 92,530 95,563
Reconciliation of net loss to EBITDA
First quarter ended March 31,
2004 2003
Net loss $(4,270) $(11,889)
Interest expense 12,141 14,131
Depreciation and amortization 17,596 16,194
Loss (gain) on fixed asset sales (1) 71
Other noncash items (278) 504
EBITDA $25,188 $19,011
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