Atlantis Plastics Announces First Half Results.Business Editors ATLANTA--(BUSINESS WIRE)--Aug. 13, 2002 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. (AMEX AMEX See: American Stock Exchange :AGH AGH Akademia Gorniczo-Hutnicza AGH Allegheny General Hospital (Pittsburgh, PA, USA) AGH Alpena General Hospital (Michigan) AGH Helsingborg, Sweden - Angelholm/Helsingborg (Airport Code) ) today announced its operating results for the second quarter and six months ended June June: see month. 30, 2002. 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 second quarter of 2002 were $67.1 million, compared with $62.5 million for the second quarter of 2001. Net income for the second quarter of 2002 was $1.3 million, or $0.18 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 $0.3 million, or $0.04 per diluted share in the second quarter of 2001. In the second quarter of 2001, the Company benefited from an extraordinary gain of $423,000, net of income taxes, or $0.05 per diluted share associated with the buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may of $6.1 million of the Company's Senior Notes. Net sales for the first half of 2002 were $125.4 million, compared with $127.2 million for the first half of 2001. Net income for the first half of 2002 was $2.5 million, or $0.33 per diluted share, compared with $0.7 million, or $0.10 per diluted share for the six months ended June 30, 2001. Effective January January: see month. 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142, Accounting for Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , which eliminates the amortization of goodwill. The impact of this accounting change on the second quarter 2002 operating results was an increase in net income of $0.4 million or $0.06 per diluted share. The impact on the operating results for the six months ended June 30, 2002 was an increase in net income of $0.9 million or $0.12 per diluted share. In the Company's plastic films segment, net sales increased 3% in the second quarter and decreased 8% during the first six months of 2002, respectively, from the prior year. Plastic films sales volume (measured in pounds) increased 22% and 8%, respectively, from the comparable periods in 2001. Net sales for the second quarter of 2002 in Atlantis' 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. products segment increased 16% from the second quarter of 2001 and increased 14% for the six months ended June 30, 2002 from the comparable period in 2001. 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 second quarter of 2002 were 17%, and 6%, respectively, compared with 15% and 4%, respectively, for 2001. For the six months ended June 30, 2002, EBITDA, gross margin and operating margin were $13.6 million, 18%, and 6%, respectively, compared with $12.0 million, 15%, and 5%, respectively, for the six months ended June 30, 2001. Net debt (total debt less cash) at June 30, 2002 was $86.9 million, compared with $88.0 million at December December: see month. 31, 2001. Selling, general and administrative ("SG&A") expense was $7.5 million for the quarter ended June 30, 2002 compared with $6.3 million for the prior year comparable quarter. Through June 30, 2002 SG&A expense was $14.7 million compared with $12.8 million for the six months ended June 30, 2001. The increase is primarily the result of increases in health and general insurance costs and increases in incentive compensation costs. Anthony F. Bova Bova may refer to:
The period beginning at the start of the calendar year up to the current date. volume up 8% over 2001 levels. We have, however, seen margin pressure as a result of the three 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 price increases experienced this year. Industry overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. and competition have not allowed us to fully recover these price increases in the marketplace resulting in a decline in our films operating margins. We expect to see continuing pressure on our films margins through the balance of 2002 as a result of the industry overcapacity and the sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. ." "We are extremely pleased with the operating results of our molded products group this year. For the first six months of 2002 our molded products group has increased its sales, gross margin and 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. , by 14%, 42% and 76%, respectively, compared to the same period in 2001. We believe that our molded products group will continue to improve in year-over-year operating results through the balance of 2002 through continued growth in both our building products and appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. segments." 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, and custom films, which 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, are used in the industrial and packaging markets. Atlantis' molded plastic products are used primarily in the appliance, automotive, agricultural, building supply, and recreational vehicle industries. 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. that relate to future events or performance. These statements reflect the company's current expectations, and the company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, fluctuations in plastic resin prices, the company's high debt level, the risks inherent with 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 2001. Readers are cautioned not to place undue reliance on any forward-looking statements contained herein, which speak only 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" . The Company undertakes no obligation to publicly release the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements that may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events. Atlantis will hold its quarterly conference call to discuss operating results today at 11:00 a.m. eastern daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). time. To participate in the conference call, please call the following number at 10:55 a.m. eastern daylight time: 1-888-208-1814. For more information, please visit http://www.atlantisstock.com.
ATLANTIS PLASTICS, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(dollars in thousands) 2002 2001
------------ ------------
ASSETS
Cash and cash equivalents $ 664 $ 937
Accounts receivable, less allowance for
doubtful accounts and returned items
of $1,023 in 2002 and $1,072 in 2001 32,979 28,925
Inventories 19,750 16,112
Other current assets 4,577 5,710
Deferred income tax asset 2,437 2,437
------------ ------------
Total current assets 60,407 54,121
Property and equipment, net 68,137 69,067
Goodwill, net of accumulated amortization 46,402 46,402
Other assets 183 13
------------ ------------
Total assets $ 175,129 $ 169,603
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $ 25,870 $ 21,589
Current portion of long-term debt 74,369 25,188
------------ ------------
Total current liabilities 100,239 46,777
Long-term debt, less current portion 13,158 63,702
Deferred income taxes 11,706 12,049
Other liabilities 334 12
------------ ------------
Total liabilities 125,437 122,540
Commitments and contingencies - -
Shareholders' equity:
Class A Common Stock, $.10 par value,
20,000,000 shares authorized,
5,063,928 and 4,961,662 shares issued
and outstanding in 2002 and 2001 506 496
Class B Common Stock, $.10 par value,
7,000,000 shares authorized, 2,514,805
and 2,570,191 shares issued and
outstanding in 2002 and 2001 252 257
Additional paid-in capital 10,852 10,677
Notes receivable from sale of common stock (1,644) (1,589)
Retained earnings 39,726 37,222
------------ ------------
Total shareholders' equity 49,692 47,063
------------ ------------
Total liabilities and shareholders' equity $ 175,129 $ 169,603
============ ============
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
(dollars in thousands, except
per share data) 2002 2001 2002 2001
-------- -------- -------- --------
Net sales $ 67,117 $ 62,493 $125,380 $127,195
Cost of sales 55,556 53,240 102,870 107,542
-------- -------- -------- --------
Gross profit 11,561 9,253 22,510 19,653
Selling, general and
administrative expenses 7,548 6,256 14,742 12,750
Goodwill amortization - 443 - 891
-------- -------- -------- --------
Operating income 4,013 2,554 7,768 6,012
Net interest expense (1,844) (2,446) (3,730) (5,015)
-------- -------- -------- --------
Income before provision for
income taxes 2,169 108 4,038 997
Provision for income taxes (822) (211) (1,534) (674)
-------- -------- -------- --------
Income (loss) before
extraordinary item 1,347 (103) 2,504 323
Extraordinary gain on early
extinguishment of debt,
net of income taxes - 423 - 423
-------- -------- -------- --------
Net income $ 1,347 $ 320 $ 2,504 $ 746
======== ======== ======== ========
Earnings per share - Basic
Income (loss) before
extraordinary item $ 0.18 $ (0.01) $ 0.33 $ 0.04
Extraordinary gain on early
extinguishment of debt,
net of income taxes - 0.05 - 0.06
======== ======== ======== ========
Net income $ 0.18 $ 0.04 $ 0.33 $ 0.10
Weighted average number of
shares used in
computing basic earnings per
share (in thousands) 7,579 7,532 7,560 7,532
Earnings per share - Diluted
Income (loss) before
extraordinary item $ 0.18 $ (0.01) $ 0.33 $ 0.04
Extraordinary gain on early
extinguishment of debt,
net of income taxes - 0.05 - 0.06
======== ======== ======== ========
Net income $ 0.18 $ 0.04 $ 0.33 $ 0.10
Weighted average number of
shares used in computing
diluted earnings per share
(in thousands) 7,589 7,533 7,570 7,538
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
(dollars in thousands) 2002 2001
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 2,504 $ 746
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 5,824 5,060
Loss on disposal of assets 199 4
Amortization of goodwill - 891
Loan fee and other amortization 192 172
Interest receivable from shareholder loans (37) (58)
(Gain) on early extinguishment of debt - (138)
Deferred income taxes (343) 215
Changes in operating assets and liabilities, net (2,272) (1,217)
-------- --------
Total adjustments 3,563 4,929
-------- --------
Net cash provided by operating activities 6,067 5,675
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (5,093) (3,619)
Purchase of business - (46)
Proceeds from asset dispositions - 2
-------- --------
Net cash used in investing activities (5,093) (3,663)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings under revolving credit agreements 1,000 2,500
Payments on long-term debt (2,363) (6,715)
Payments on notes receivable from shareholders 96 140
Purchase of common stock - (9)
Proceeds from exercise of stock options 20 -
-------- --------
Net cash (used in) financing activities (1,247) (4,084)
-------- --------
Net (decrease) in cash and cash equivalents (273) (2,072)
Cash and cash equivalents at beginning of period 937 2,445
-------- --------
Cash and cash equivalents at end of period $ 664 $ 373
-------- --------
ATLANTIS PLASTICS, INC.
SEGMENT/TREND INFORMATION
2002 2001
--------------- -----------------------------
($ in millions) Q2 Q1 Q4 Q3 Q2 Q1
------ ------ ------ ------ ------ ------
NET SALES
Plastic Films $ 44.4 $ 37.8 $ 38.5 $ 42.9 $ 43.0 $ 46.3
Molded Products 22.7 20.5 18.7 20.5 19.5 18.4
------ ------ ------ ------ ------ ------
Total $ 67.1 $ 58.3 $ 57.2 $ 63.4 $ 62.5 $ 64.7
------ ------ ------ ------ ------ ------
EBITDA (1) $ 6.9 $ 6.7 $ 5.3 $ 5.9 $ 5.6 $ 6.4
------ ------ ------ ------ ------ ------
GROSS PROFIT
Plastic Films 16% 18% 17% 15% 14% 16%
Molded Products 19% 21% 15% 17% 17% 15%
------ ------ ------ ------ ------ ------
Total 17% 19% 16% 16% 15% 16%
OPERATING INCOME (2)
Plastic Films
(excluding goodwill) 5% 5% 4% 4% 4% 7%
Molded Products
(excluding goodwill) 8% 9% 5% 7% 7% 5%
------ ------ ------ ------ ------ ------
Total (including
goodwill) 6% 6% 4% 4% 4% 5%
------ ------ ------ ------ ------ ------
NET INTEREST EXPENSE $ 1.8 $ 1.9 $ 2.1 $ 2.3 $ 2.4 $ 2.6
------ ------ ------ ------ ------ ------
(1) Earnings before interest, taxes, depreciation, and
amortization.
(2) Previously reported segment operating margins have been
restated to exclude goodwill amortization in order to provide more
comparative information with the adoption of Statement of Financial
Accounting Standard No. 142, Accounting for Goodwill and Other
Intangible Assets, on January 1, 2002.
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