Applied Extrusion Technologies, Inc. First Quarter EPS of $.10 Exceeds Expectations of $.05; Earnings Outlook Revised Upwards for Fiscal 2000 as Market Leadership Expands.Business Editors BOSTON--(BUSINESS WIRE)--Jan. 25, 2000 Applied Extrusion Technologies, Inc. (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 NMS See NetWare Management System. - AETC AETC Air Education & Training Command (US Air Force) AETC Air Education and Training Command AETC AIDS Education and Training Centers AETC Alabama Educational Technology Conference AETC Advanced Engineering Technology Conference ) today announced financial results for its first fiscal quarter ended December 31, 1999. The Company reported record first quarter sales of $60,151,000, an increase of $4,706,000, or 8.5 percent over the same quarter in 1999. Manufacturing improvement continued to drive profitability growth. resulting in record first quarter gross profit of $14,876,000, an increase of $4,030,000, or 37.2 percent over the first quarter of 1999. Gross margin was 24.7 percent for the quarter compared with 19.6 percent in the first quarter of 1999. First quarter operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was $6,806,000, or 11.3 percent of sales, compared with $3,328,000, or 6 percent of sales, in the first quarter of 1999. The comparative amounts presented above exclude the costs of a temporary plant shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down recorded in the first quarter of 1999. Net income for the quarter was $1,158,000, or $.10 per share, compared with a net loss of $4,735,000, or $.43 per share in the first quarter of 1999. &uot;We are pleased that our first quarter financial performance exceeded expectations, and we expect earnings for the remainder of the year to be significantly higher than previous expectations,&uot; said Thomas E. Williams, President and Chief Executive Officer. &uot;We have focused on obtaining a leadership position in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. OPP OPP Opposite OPP Opportunity/Opportunities OPP Office of Pesticide Programs OPP Ontario Provincial Police (Ontario, Canada) OPP Office of Polar Programs (National Science Foundation) films marketplace, competing with suppliers such as ExxonMobil. AET AET Aetna, Inc. AET After Extra Time AET Actual Evapotranspiration AET Alliance for Environmental Technology AET Alpha-Ethyltryptamine AET Applied Extrusion Technologies, Inc. has now solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. its leadership position, serving as the number one supplier to five of the six largest OPP film converters. This market leadership and our strengthening financial performance are the direct result of the successful execution of our core business strategies during the past three years,&uot; continued Williams. &uot;Manufacturing costs have been significantly reduced through increased productivity, headcount reductions and the introduction of highly efficient assets, while our ongoing investment in product development is driving the migration of our sales mix sales mix See product mix. toward higher-value products. We will continue to exploit opportunities for greater production efficiency and an enhanced sales mix. Meanwhile, the North American OPP films industry, with steady growth in demand and no new capacity initiated, should continue to strengthen gradually. Market conditions in the first quarter allowed the Company to increase selling prices, covering the majority of raw material cost increases experienced in the quarter. We currently anticipate further strengthening of the market as industry-wide capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. improves, which in combination with the strategic gains being realized by the Company, should drive strong earnings growth over the next several years,&uot; concluded Williams. Applied Extrusion Technologies, Inc. is a leading developer and manufacturer of highly specialized plastic films used primarily in consumer product labeling, flexible packaging, filtration and health care applications. Through its technological innovations, AET is a leader in the North American oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. polypropylene polypropylene (pŏl'ēprō`pəlēn), plastic noted for its light weight, being less dense than water; it is a polymer of propylene. It resists moisture, oils, and solvents. and apertured films markets. Except for the historical information contained herein, the matters discussed in this report are 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. that involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including those risks related to the timely development and acceptance of new products, fluctuations in raw materials and other production costs, the loss of one or more significant customers, the impact of competitive products and pricing, the timely completion of capital projects, the success of the Company's efforts to access capital markets on satisfactory terms, and to acquire, integrate, and operate new businesses and expand into new markets, as well as other risks detailed in Exhibit 99 of 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. for the fiscal year ended September 30, 1999 and from time to time in the Company's other reports filed with the Securities and Exchange Commission.
APPLIED EXTRUSION TECHNOLOGIES, INC.
Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended
---------------------
Dec. 31, Dec. 31,
1999 1998
---- ----
Sales $ 60,151 $ 55,445
Cost of sales 45,275 47,504
-------- --------
Gross profit 14,876 7,941
Operating expenses:
Selling, general and administrative 6,469 5,879
Research and development 1,601 1,639
-------- --------
Total operating expenses 8,070 7,518
Operating profit 6,806 423
Non-operating expenses:
Interest expense, net 4,997 4,852
Acquisition costs -- 3,462
-------- --------
Total non-operating expenses 4,997 8,314
Income (loss) before income taxes 1,809 (7,891)
Income tax expense (benefit) 651 (3,156)
-------- --------
Net income (loss) $ 1,158 $ (4,735)
======== ========
Earnings per common share $ 0.10 $ (0.43)
======== ========
Average common shares outstanding 11,814 11,112
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion