Applied Extrusion Technologies reports record operating earnings in its 1995 first quarter; settles shareholder litigation.PEABODY, Mass.--(BUSINESS WIRE)--Jan. 16, 1995--Applied Extrusion Technologies Inc. (NASDAQ-NMS: 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 ) Monday announced record quarterly operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the third consecutive fiscal quarter. The 1995 results include the operations of AET's packaging films business, which was acquired in April 1994. For its fiscal 1995 first quarter ended Dec. 31, 1994, AET AET Aetna, Inc. AET After Extra Time AET Actual Evapotranspiration AET Alliance for Environmental Technology AET Alpha-Ethyltryptamine AET Applied Extrusion Technologies, Inc. reported sales of $50,742,000 compared with $9,423,000 for the corresponding 1994 three-month period. 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. for the 1995 first quarter rose to a record $8,594,000 from $370,000 in fiscal 1994. Reflected in the quarter is AET's settlement of its shareholder litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , brought in 1991, at a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern cost of $1,400,000 (an after-tax amount of $847,000 or 12 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. ). This settlement is subject to court approval. As a result of the company's strong operating earnings, even after deducting the cost of the litigation settlement, net income was $1,327,000, or 19 cents per share, in the quarter vs. $163,000, or 3 cents per share, in the first quarter of fiscal 1994. Exclusive of the after-tax impact of the litigation settlement, net income for the first quarter would have been $2,167,000, or 31 cents per share. "We are extremely pleased with the first quarter results and the earnings trend that they represent," commented President and Chief Executive Officer Thomas E. Williams. He stated, "The Company initiated major cost reduction programs immediately after the packaging films acquisition, and although we anticipated improvements during this first period in which we fully realized the benefits of these programs, the gross margin of 28% and the operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 17% exceeded our expectations. It was particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to experience these results in what historically has been the seasonally lowest quarter for the business. Market conditions remain strong allowing us to maintain a very confident outlook on fiscal 1995. Finally, while we continue to believe that the shareholder litigation was without merit, we are pleased that the matter was settled enabling management to remain focused upon operations and the continued growth of shareholder value." Applied Extrusion Technologies Inc. is a market leader in the development, manufacture and sale of plastic packaging films to the food, beverage, confectionery confectionery, delicacies or sweetmeats that have sugar as a principal ingredient, combined with coloring matter and flavoring and often with fruit or nuts. In the United States it is usually called candy, in Great Britain, sweets or boiled sweets. and other consumer products industries and is a leading manufacturer of oriented plastic netting products for the health care and other growth markets. -0-
Applied Extrusion Technologies Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Dec. 31, Dec. 31,
1994 1993
Sales $50,742 $9,423 Cost of sales 36,286 6,941 Gross profit 14,456 2,482 Gross margin 28% 26% Operating expenses: Selling, general and administrative 4,411 1,868 Research and development 1,451 244 Total operating expenses 5,862 2,112 Operating profit 8,594 370 Operating margin 17% 4%
Other:
Interest expense, net 4,982 99
Litigation settlement 1,400
6,382 99
Income before income taxes 2,212 271 Income tax expense 885 108 Net income $1,327 $163 Earnings per share $.19 $.03 Average shares outstanding 7,059 6,025 -0- CONTACT: Jay Jacobson Financial Relations (NYC NYC abbr. New York City NYC New York City ) 212/889-6362 |
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