Atlantis Plastics Announces First Quarter 2005 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 first quarter ended March 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 first quarter of 2005 were $100.4 million, compared with $80.2 million for the first quarter of 2004. Net loss for the first quarter of 2005 was $0.3 million, or ($0.04) 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 $2.5 million, or $0.31 per diluted share, in the first quarter of 2004. On March 22, 2005, the Company entered into a new $220 million credit agreement. Borrowings under this agreement were used to repay then existing senior secured debt of $83.9 million, pay a $103.2 million special dividend to shareholders on April 8, 2005, pay $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 on April 8, 2005 and pay related fees and expenses. Net results for the first quarter of 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 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. These charges, totaling $3.0 million on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , reduced diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of by $0.38 in the first quarter of 2005. Excluding these charges, diluted earnings per share would have been $0.34 for the first quarter of 2005. In the Company's Plastic Films segment, net sales increased 30% in the first quarter of 2005, compared with the first quarter of 2004. Plastic Films' sales volume (measured in pounds) increased 5% for the quarter compared with 2004. In the 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, net sales for the quarter ended March 31, 2005 increased 10% from the first quarter of 2004. Net sales for the first quarter of 2005 in the Profile Extrusion segment increased 51%, compared with the first quarter of 2004. Atlantis' gross margin and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the first quarter of 2005 were 14% and 5%, respectively, compared with 16% and 7%, respectively, for the comparable period in 2004. 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.
Selling, general and administrative expenses for the first quarter of 2005 were $8.2 million compared with $7.6 million for the first quarter of 2004. The increase was primarily due to increases in compensation costs. 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 14%, diluted earnings per share by 10% and EBITDA by 9%. "In our Plastic Films segment, net sales increased 30% and film volume (measured in pounds) increased 5% from the first quarter of 2004. Even with our year-over-year raw material costs up 34%, our continued focus on margin protection and volume growth resulted in our films business increasing gross profit by 17% 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 37%, excluding the impact of the charges discussed above. With the rapid escalation es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. of 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 prices over the past twelve months, we believe that inventory levels are at relatively high levels within our distribution channels and we anticipate a moderation of order rates as inventory levels return to more normalized levels. We will continue to focus on margin protection and growing our market share in 2005. "In our 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, gross margins and operating margins for the quarter were impacted by a time lag in fully passing through all of the increases in raw material costs. Operating results were also negatively impacted by adverse weather conditions especially on the East Coast that resulted in a slowing of order entry rates for building products in 2005. While pricing is currently in place to recover these raw material increases, the time lag resulted in a decrease in gross profit of 10% and a decline in operating income of 27%. "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. 51% for the quarter primarily as a result of the acquisition of LaVanture in the fourth quarter of 2004. While gross profit and operating profit increased 33% and 30%, respectively, gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. decreased from 23% to 20% of sales in the first quarter of 2005 as a result of increases in raw material costs." 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 A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software 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 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 1-800-270-1153 (Participant Participant A party of a funding. It usually refers to the lowest rank or smallest level of funding. code: 29306#). For more information, please visit http://www.atlantisstock.com.
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
Three Months Ended
March 31,
(in thousands, except per share data) 2005 2004
=====================================================================
Net sales $100,421 $80,228
Cost of sales 86,113 67,317
---------------------------------------------------------------------
Gross profit 14,308 12,911
Selling, general and administrative
expenses 8,232 7,581
Stock option expense 461 -
Costs of unconsummated financing 555 -
---------------------------------------------------------------------
Operating income 5,060 5,330
Unamortized deferred financing cost
write-off (3,794) -
Net interest expense (1,767) (1,329)
Other expense (16) (9)
---------------------------------------------------------------------
(Loss) income before provision for income
taxes (517) 3,992
(Benefit) provision for income taxes (185) 1,496
---------------------------------------------------------------------
Net (loss) income $(332) $2,496
=====================================================================
Basic (loss) earnings per share $(0.04) $0.33
Diluted (loss) earnings per share $(0.04) $0.31
---------------------------------------------------------------------
Weighted average number of shares used in
computing (loss) earnings per share:
Basic 7,925 7,661
Diluted 7,925 8,061
ATLANTIS PLASTICS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share March 31, December 31,
data) 2005 2004
=====================================================================
ASSETS
Cash and cash equivalents $103,541 $51
Accounts receivable (net of allowances of
$1,268 and $1,228) 51,532 45,982
Inventories 35,666 38,186
Other current assets 9,970 4,760
Deferred income tax assets 4,054 3,978
---------------------------------------------------------------------
Total current assets 204,763 92,957
Property and equipment, net 64,199 64,165
Goodwill, net of accumulated amortization 51,413 51,413
Other assets 6,808 4,759
---------------------------------------------------------------------
Total assets $327,183 $213,294
=====================================================================
LIABILITIES AND SHAREHOLDERS' (DEFICIT)
EQUITY
Accounts payable and accrued expenses 45,223 41,048
Dividend payable 103,197 -
Current maturities of long-term debt 1,200 6,955
---------------------------------------------------------------------
Total current liabilities 149,620 48,003
Long-term debt 193,800 80,790
Deferred income tax liabilities 11,250 11,211
Other liabilities 1,054 1,013
---------------------------------------------------------------------
Total liabilities 355,724 141,017
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 (28,542) 59,355
---------------------------------------------------------------------
Total shareholders' (deficit) equity (28,541) 72,277
---------------------------------------------------------------------
Total liabilities and shareholders'
(deficit) equity $327,183 $213,294
=====================================================================
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
(in thousands) 2005 2004
=====================================================================
Operating Activities:
Net (loss) income $(332) $2,496
Adjustments to reconcile net (loss)
income to net cash used for operating
activities:
Depreciation 2,884 2,860
Loan fee and other amortization 3,998 255
Stock option expense 461 -
Interest receivable from shareholder loans (5) 44
Gain on disposal of assets (8) -
Deferred income taxes (37) 23
Change in operating assets and
liabilities:
Accounts receivable (5,550) (6,138)
Inventory 2,520 1,944
Other current assets (5,210) (457)
Accounts payable and accrued expenses (264) (10,445)
Other assets and liabilities (226) (20)
---------------------------------------------------------------------
Net cash used for operating activities (1,769) (9,438)
---------------------------------------------------------------------
Investing Activities:
Capital expenditures (2,946) (2,296)
Proceeds from asset dispositions 38 -
---------------------------------------------------------------------
Net cash used for investing activities (2,908) (2,296)
---------------------------------------------------------------------
Financing Activities:
Net (repayments) borrowings under revolving
credit facility (17,158) 14,900
Borrowings under new credit agreement 195,000 -
Repayments under old term loans (70,587) (6,563)
Financing costs associated with new credit
agreement (5,785) -
Proceeds from exercise of stock options 2,522 344
Income tax benefit from employee stock
options 3,718 -
Repayments on notes receivable from
shareholders 457 800
---------------------------------------------------------------------
Net cash provided by financing activities 108,167 9,481
---------------------------------------------------------------------
Net increase (decrease) in cash and cash
equivalents 103,490 (2,253)
Cash and cash equivalents at beginning of
period 51 3,001
---------------------------------------------------------------------
Cash and cash equivalents at end of period $103,541 $748
---------------------------------------------------------------------
Supplemental disclosure of non-cash
activities:
Non-cash reduction of accounts receivable
and accounts payable in
connection with supplier agreements $(821) $(75)
ATLANTIS PLASTICS, INC.
SEGMENT/TREND INFORMATION
2005 2004
-------- -----------------------------------
(in millions) Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
PLASTIC FILMS VOLUME
(in pounds) 68.9 68.9 69.9 68.9 65.9
NET SALES
Plastic Films $65.7 $60.6 $56.9 $54.1 $50.7
Injection Molding 26.1 23.9 26.1 26.1 23.8
Profile Extrusion 8.6 6.9 6.4 6.6 5.7
---------------------------------------------------------------------
Total $100.4 $91.4 $89.4 $86.8 $80.2
GROSS MARGIN
Plastic Films 14% 16% 16% 15% 15%
Injection Molding 13% 14% 16% 17% 16%
Profile Extrusion 20% 21% 24% 25% 23%
---------------------------------------------------------------------
Total 14% 16% 17% 16% 16%
OPERATING MARGIN
Plastic Films 4% 6% 6% 6% 6%
Injection Molding 5% 6% 8% 8% 8%
Profile Extrusion 11% 10% 14% 15% 12%
---------------------------------------------------------------------
Total 5% 6% 7% 7% 7%
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA(1)
2005 2004
-------- -----------------------------------
(in millions) Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
Net (loss) income $(0.3) $2.7 $3.2 $3.1 $2.5
Net interest expense 1.7 1.6 1.4 1.3 1.3
Unamortized deferred
financing cost
write-off (2) 3.8 - - - -
(Benefit) provision for
income taxes (0.2) 1.5 1.9 1.9 1.5
Depreciation and
amortization 2.9 2.8 2.7 2.9 2.9
---------------------------------------------------------------------
EBITDA $7.9 $8.6 $9.2 $9.2 $8.2
---------------------------------------------------------------------
(1) EBITDA as presented is defined as earnings before interest, taxes,
depreciation and amortization. The Company believes EBITDA is a
useful financial metric used by investors to assess financial
performance.
(2) This amount is actually a component of interest expense and has
been shown separately for informational purposes.
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