Atlantis Plastics Announces 2005 Fourth Quarter and Full Year Results.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- Atlantis Atlantis (ətlăntĭs, ăt–), in Greek legend, large island in the western sea (the Atlantic Ocean). Plato, in his dialogues the Timaeus and the Critias, Plastics, 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 :ATPL ATPL Airline Transport Pilot's Licence ATPL Acme Tele Power Limited (Haryana, India) ) today announced its operating results for the fourth quarter and fiscal year ended December December: see month. 31, 2005. 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 for the fourth quarter of 2005 were $115.7 million, compared with $91.4 million for the fourth quarter of 2004. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $8.8 million was up 54% in the fourth quarter of 2005, compared with $5.7 million in the fourth quarter of 2004. Net income for the fourth quarter of 2005 was $2.6 million, or $0.32 per 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. share, compared with net income of $2.7 million, or $0.33 per diluted share, in the fourth quarter of 2004. Net sales for the year ended December 31, 2005 were $424.3 million, compared with $347.8 million for 2004. Operating income, excluding the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges discussed below, was $30.1 million in 2005, up 26% compared with $23.8 million for 2004. Net income for the year ended December 31, 2005 was $6.7 million, or $0.81 per diluted share, compared with $11.5 million, or $1.42 per diluted share, for 2004. On March 22, 2005, the Company entered into a new $220.0 million credit agreement. Borrowings under this agreement were used to pay a $103.2 million special dividend to shareholders and $4.4 million to holders of outstanding stock options in exchange for the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of these options, both on April 8, 2005. Proceeds were also used to repay then existing senior secured debt of $83.9 million as well as to pay related fees and expenses. Net results for the year ended December 31, 2005 include a $3.8 million non-cash write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unamortized deferred financing costs on the previously existing senior debt, $0.6 million of cash costs associated with a financing effort that was not consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. , and $0.5 million of non-cash compensation expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the cancellation of stock options. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the fourth quarter of 2005 were 16% and 8%, respectively, compared with 16% and 6%, respectively, for the comparable period in 2004. For the year ended December 31, 2005, EBITDA, gross margin and operating margin were $41.2 million, 15% and 7%, respectively, compared with $35.2 million, 16% and 7%, respectively, for 2004. EBITDA for 2005 was negatively impacted by the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. $1.0 million in aggregate expenses relating to the Company's unconsummated financing and the cancellation of stock options. Net debt (total debt less cash) as of December 31, 2005 was $199.0 million, compared with $87.7 million as of December 31, 2004. The increase in debt is primarily a result of the financing of the special dividend paid to shareholders, the payment to holders of outstanding stock options in exchange for the cancellation of these options, and the payment of related fees and expenses, discussed above. Selling, general and administrative expenses for the fourth quarter of 2005 were $9.4 million, compared with $8.8 million for the fourth quarter of 2004. Selling, general and administrative expenses for the year ended December 31, 2005 were $36.1 million, compared with $32.7 million for the year ended December 31, 2004. Both increases were primarily due to higher incentive compensation costs. Additionally, the 2005 year was negatively impacted by the aforementioned $1.0 million in aggregate expenses relating to the Company's unconsummated financing and the non-cash compensation expense relating to the cancellation of stock options. Net interest expense for the fourth quarter of 2005 was $4.7 million, compared with $1.6 million for the fourth quarter of 2004. Net interest expense for the year ended December 31, 2005 was $18.8 million, compared with $5.6 million for the year ended December 31, 2004. Both increases were a result of the additional borrowings outstanding under the new credit agreement in connection with the one-time special dividend, option cancellations, and related fees and expenses. Additionally, net interest expense for 2005 includes the $3.8 million non-cash write-off of unamortized deferred financing costs on previously existing senior debt, as previously discussed. Anthony F. Bova Bova may refer to:
Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. by 54% and EBITDA by 42%. For the full calendar year, excluding the impact of the write-off of unconsummated financing and option cancellation charges, we increased our gross profit by 15%, operating profit by 27% and EBITDA by 20%. "In our Plastic Films segment, we achieved excellent operating results during a period characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by unprecedented increases in raw material costs as a result of the production disruptions affecting the oil and gas industry caused by the Gulf Coast hurricanes. While many of our competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. force majeure [French, A superior or irresistible power.] An event that is a result of the elements of nature, as opposed to one caused by human behavior. The term force majeure , our focus on the maintenance of our resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing supply channels allowed our Plastic Films manufacturing facilities to run all production lines without disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. and positioned our business to consistently meet the film demands of our customers. Our net sales volume (measured in pounds) increased 7% for the quarter and 4% for the full year. As a result of our continuing focus on inventory management and margin protection, our Plastic Films' gross profit and operating profit for the fourth quarter of 2005 increased 25% and 56%, respectively, from the fourth quarter in 2004. For 2005, we increased our Plastic Films' gross profit by 16% and operating profit by 27%, respectively, from the levels achieved in 2004. With the peaking of resin prices in the fourth quarter, we expect an inventory correction CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. in the first half of 2006 as all end-users reduce inventory levels from the peak levels achieved in the fourth quarter of 2005. "Our Injection Molding injection molding n. A manufacturing process for forming objects, as of plastic or metal, by heating the molding material to a fluid state and injecting it into a mold. segment had excellent operating results, with strong customer demand in both our building products lines and our traditional custom injection molded mold 1 n. 1. A hollow form or matrix for shaping a fluid or plastic substance. 2. A frame or model around or on which something is formed or shaped. 3. Something that is made in or shaped on a mold. business. For the fourth quarter of 2005, sales increased 17%, gross profit increased 34% and operating profit increased 96%. For the full year 2005, sales increased 16%, gross profit increased 16% and operating profit increased 31%, compared with the levels achieved in 2004. As we move into 2006, we believe that our Injection Molding business is positioned to see continued growth within the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. sector, as well as continued 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" and expansion of our building products customer base. "In our Profile Extrusion business, sales were up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 29% for the quarter and 37% for the full year, primarily resulting from the acquisition of LaVanture in the fourth quarter of 2004. Our fourth quarter operating results were negatively impacted by significant weakness in the RV sector and inefficiencies in manufacturing after the plant consolidation and integration of the LaVanture and Atlantis facilities in Elkhart Elkhart, city (1990 pop. 43,627), Elkhart co., N Ind., at the confluence of the Elkhart and St. Joseph rivers; settled 1824, inc. 1877. The city's status as a chief producer of band instruments began in 1875. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). . Operating profit for the fourth quarter and full year 2005 decreased 38% and 17%, respectively, from the comparable periods in 2004. We have implemented a specific operating plan to improve the performance of this business segment." Atlantis Plastics, Inc. is a leading U.S. manufacturer of polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n stretch and custom films and molded plastic products. Stretch films are used to wrap pallets of materials for shipping or storage. Custom films are made-to-order made-to-or·der adj. 1. Made in accordance with particular instructions or requirements; custom-made. 2. Very suitable: a made-to-order job. Adj. 1. specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. film products used in the industrial and packaging markets. Atlantis' injection molded and profile extruded plastic products are used primarily in the appliance, automotive, agricultural, building supply, and recreational vehicle industries. Statements herein regarding expected performance of the Company's business and expected levels of demand constitute 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. within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such statements are based on the Company's current expectations and beliefs and are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. With respect to these statements, the Company has made assumptions regarding expected economic conditions, expected volumes and price levels of purchases by customers and raw material costs. The forward-looking statements are subject to certain risks including, among others, that the foregoing assumptions are inaccurate. There are many factors that impact these forward-looking statements that cannot be predicted accurately. These risks and uncertainties include, but are not limited to, fluctuations in plastic resin prices, the Company's high debt level, the risks inherent in predicting revenue and earnings outcomes as well as other "Factors That May Affect Future Results" set forth in the Company's 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 fiscal 2004 filed with the Securities and Exchange Commission. Management believes its estimates are reasonable; however, undue reliance should not be placed on such estimates, which are based on current expectations. The information contained herein speaks as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the Company does not undertake any obligation to update such information as future events unfold unfold - inline . Atlantis will hold its quarterly conference call to discuss operating results today at 11:00 a.m. eastern time. To participate in the conference call, please call 1-800-270-1153 (Participant Participant A party of a funding. It usually refers to the lowest rank or smallest level of funding. code: 15045#). For more information, please visit http://www.atlantisstock.com.
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Twelve Months
Ended Ended
December 31, December 31,
-------------- ---------------
(In thousands, except per share
data) 2005 2004 2005 2004
----------------------------------------------------------------------
Net sales $115,735 $ 91,439 $424,326 $347,802
Cost of sales 97,541 76,899 359,176 291,334
----------------------------------------------------------------------
Gross profit 18,194 14,540 65,150 56,468
Selling, general and
administrative expenses 9,420 8,830 35,537 32,709
Costs of unconsummated financing - - 555 -
----------------------------------------------------------------------
Operating income 8,774 5,710 29,058 23,759
Unamortized deferred financing
cost write-off - - (3,794) -
Net interest expense (4,707) (1,635) (15,048) (5,643)
Other income 58 135 84 168
----------------------------------------------------------------------
Income before provision for income
taxes 4,125 4,210 10,300 18,284
Provision for income taxes 1,513 1,496 3,629 6,769
----------------------------------------------------------------------
Net income $ 2,612 $ 2,714 $ 6,671 $ 11,515
----------------------------------------------------------------------
Basic earnings per share $ 0.32 $ 0.35 $ 0.82 $ 1.49
Diluted earnings per share $ 0.32 $ 0.33 $ 0.81 $ 1.42
----------------------------------------------------------------------
Weighted average number of shares
used in computing earnings
per share (in thousands):
Basic 8,256 7,767 8,174 7,709
Diluted 8,256 8,199 8,221 8,131
----------------------------------------------------------------------
Cash dividends paid per common
share $ - $ - $ 12.50 $ -
----------------------------------------------------------------------
ATLANTIS PLASTICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share December 31, December 31,
data) 2005 2004
----------------------------------------------------------------------
ASSETS
Cash and cash equivalents $ 178 $ 51
Accounts receivable (net of allowances of
$1,835 and $1,228) 57,075 45,982
Inventories 41,667 38,186
Other current assets 7,513 4,760
Deferred income tax assets 3,694 3,978
----------------------------------------------------------------------
Total current assets 110,127 92,957
Property and equipment, net 69,208 64,165
Goodwill, net of accumulated amortization 51,351 51,413
Other assets 8,226 4,759
----------------------------------------------------------------------
Total assets $238,912 $213,294
----------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Accounts payable and accrued expenses 47,944 40,315
Current maturities of long-term debt 1,970 6,955
Other current liabilities 356 733
----------------------------------------------------------------------
Total current liabilities 50,270 48,003
Long-term debt 197,195 80,790
Deferred income tax liabilities 10,628 11,211
Other liabilities 702 1,013
----------------------------------------------------------------------
Total liabilities 258,795 141,017
Commitments and contingencies - -
Shareholders' (deficit) equity:
Class A Common Stock, $.0001 par value in
2005 and $0.10 par value in 2004,
20,000,000 shares authorized, 6,113,158
and 5,556,566 shares issued and
outstanding in 2005 and 2004,
respectively 1 556
Class B Common Stock, $.0001 par value in
2005 and $0.10 par value in 2004,
7,000,000 shares authorized, 2,142,665
and 2,227,057 shares issued and
outstanding in 2005 and 2004,
respectively - 223
Additional paid-in capital - 12,595
Notes receivable from sale of common stock - (452)
Retained (deficit) earnings (21,536) 59,355
Accumulated other comprehensive income, net
of income taxes of $862 1,652 -
----------------------------------------------------------------------
Total shareholders' (deficit) equity (19,883) 72,277
----------------------------------------------------------------------
Total liabilities and shareholders'
(deficit) equity $238,912 $213,294
----------------------------------------------------------------------
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended
December 31,
--------------------
(In thousands) 2005 2004
----------------------------------------------------------------------
Cash Flows From Operating Activities
Net income $ 6,671 $ 11,515
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 12,059 11,340
Loan fee and other amortization 5,677 1,029
Interest receivable from shareholder loans (5) 31
Loss (Gain) on disposal of assets 38 (29)
Deferred income taxes (1,199) 80
Change in operating assets and liabilities:
Accounts receivable (11,093) (6,381)
Inventory (3,509) (13,659)
Other current assets (2,753) (1,177)
Accounts payable, accrued expenses and other
current liabilities 2,942 4,093
Other assets and liabilities 20 (297)
----------------------------------------------------------------------
Net cash provided by operating activities 8,848 6,545
----------------------------------------------------------------------
Cash Flows From Investing Activities
Capital expenditures (16,917) (12,943)
Purchase of business - (9,404)
Proceeds from asset dispositions 38 4
----------------------------------------------------------------------
Net cash used for investing activities (16,879) (22,343)
----------------------------------------------------------------------
Cash Flows From Financing Activities
Net (repayments) borrowings under revolving
credit facility (15,860) 11,058
Proceeds from new credit agreement 195,000 -
Repayments of term loans under new credit
agreement (600) -
Payment of special dividend (103,198) -
Repayments under old term loans (70,587) (513)
Proceeds from issuance of long-term bonds 3,503 -
Repayments on bonds (35) -
Financing costs associated with credit agreements
& unconsummated financing (6,762) (23)
Proceeds from exercise of stock options 2,522 1,009
Income tax benefit from employee stock options 3,718 483
Repayments on notes receivable from shareholders 457 834
----------------------------------------------------------------------
Net cash provided by financing activities 8,158 12,848
----------------------------------------------------------------------
Net increase (decrease) in cash and cash
equivalents 127 (2,950)
Cash and cash equivalents at beginning of period 51 3,001
----------------------------------------------------------------------
Cash and cash equivalents at end of period $ 178 $ 51
----------------------------------------------------------------------
Supplemental disclosure of non-cash activities
Non-cash reduction of accounts receivable and
accounts payable in connection with
supplier agreements $ 914 $ 851
ATLANTIS PLASTICS, INC.
SEGMENT/TREND INFORMATION
2005
---------------------------------------
(In millions) Year Q4 Q3 Q2 Q1
----------------------------------------------------------------------
PLASTIC FILMS VOLUME (pounds) 284.0 74.0 75.3 65.8 68.9
NET SALES
Plastic Films $272.9 $ 78.8 $ 66.0 $ 62.4 $ 65.7
Injection Molding 116.1 27.9 32.0 30.1 26.1
Profile Extrusion 35.3 9.0 8.6 9.1 8.6
----------------------------------------------------------------------
Total $424.3 $115.7 $106.6 $101.6 $100.4
GROSS MARGIN
Plastic Films 15% 15% 15% 15% 14%
Injection Molding 16% 16% 16% 17% 13%
Profile Extrusion 19% 18% 16% 20% 20%
----------------------------------------------------------------------
Total 15% 16% 15% 16% 14%
OPERATING MARGIN
Plastic Films 6% 7% 6% 6% 4%
Injection Molding 8% 10% 9% 10% 5%
Profile Extrusion 8% 5% 6% 10% 11%
----------------------------------------------------------------------
Total 7% 8% 7% 8% 5%
2004
---------------------------------------
(In millions) Year Q4 Q3 Q2 Q1
----------------------------------------------------------------------
PLASTIC FILMS VOLUME (pounds) 273.6 68.9 69.9 68.9 65.9
NET SALES
Plastic Films $222.3 $ 60.6 $ 56.9 $ 54.1 $ 50.7
Injection Molding 99.9 23.9 26.1 26.1 23.8
Profile Extrusion 25.6 6.9 6.4 6.6 5.7
----------------------------------------------------------------------
Total $347.8 $ 91.4 $ 89.4 $ 86.8 $ 80.2
GROSS MARGIN
Plastic Films 16% 16% 16% 15% 15%
Injection Molding 16% 14% 16% 17% 16%
Profile Extrusion 23% 21% 24% 25% 23%
----------------------------------------------------------------------
Total 16% 16% 17% 16% 16%
OPERATING MARGIN
Plastic Films 6% 6% 6% 6% 6%
Injection Molding 7% 6% 8% 8% 8%
Profile Extrusion 13% 10% 14% 15% 12%
----------------------------------------------------------------------
Total 7% 6% 7% 7% 7%
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA(1)
2005
--------------------------------------
(In millions) Year Q4 Q3 Q2 Q1
----------------------------------------------------------------------
Net income (loss) $ 6.7 $ 2.6 $ 2.0 $ 2.4 $ (0.3)
Net interest expense 15.0 4.7 4.5 4.1 1.7
Unamortized deferred financing
cost write-off (2) 3.8 - - - 3.8
Provision (benefit) for income
taxes 3.6 1.5 1.0 1.3 (0.2)
Depreciation and amortization 12.1 3.4 2.9 2.9 2.9
----------------------------------------------------------------------
EBITDA $ 41.2 $ 12.2 $ 10.4 $ 10.7 $ 7.9
----------------------------------------------------------------------
2004
--------------------------------------
(In millions) Year Q4 Q3 Q2 Q1
----------------------------------------------------------------------
Net income (loss) $ 11.5 $ 2.7 $ 3.2 $ 3.1 $ 2.5
Net interest expense 5.6 1.6 1.3 1.4 1.3
Unamortized deferred financing
cost write-off (2) - - - - -
Provision (benefit) for income
taxes 6.8 1.5 1.9 1.9 1.5
Depreciation and amortization 11.3 2.8 2.7 2.9 2.9
----------------------------------------------------------------------
EBITDA $ 35.2 $ 8.6 $ 9.1 $ 9.3 $ 8.2
----------------------------------------------------------------------
(1) EBITDA as presented is defined as earnings before interest, taxes,
depreciation and amortization. EBITDA is a non-GAAP financial measure
and has material limitations resulting from the exclusion of certain
financial statement items when used as a financial measure, in
particular, because it does not include interest, taxes, depreciation
and amortization. However, the Company believes EBITDA is a useful
financial metric used by investors to assess financial operating
performance, and in addition, some of the Company's debt covenant
calculations and incentive target calculations include EBITDA.
(2) Unamortized deferred financing cost write-off is a component of
interest expense and has been shown separately for informational
purposes.
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