Atlantis Plastics Announces Record Earnings; 36% Increase in Full Year EPS.Business Editors ATLANTA--(BUSINESS WIRE)--Feb. 8, 2000 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 fiscal year and fourth quarter ended December December: see month. 31, 1999. Net income for the 1999 fiscal year was the highest in the Company's history and totaled $9.2 million, or $1.18 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, representing increases of 38% and 36%, respectively, over 1998 income before extraordinary items of $6.7 million or $0.87 per diluted share. 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 1999 totaled $254.1 million compared with $250.8 million for 1998. Net income for the 1999 fiscal year of $9.2 million, or $1.18 per diluted share, represented increases of 47% and 44%, respectively, over 1998. In 1998, Atlantis incurred an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. extraordinary loss of $0.4 million related to the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt, due to the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $14.7 million of the Company's 11% Senior Notes due February February: see month. 2003. For the fourth quarter of 1999, net income was $2.0 million, or $0.25 per diluted share, compared with $2.1 million, or $0.27 per diluted share, in the fourth quarter of 1998. Net sales for the fourth quarter of 1999 were $64.9 million, or 9% above net sales of $59.4 million in the same period of 1998. 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.
For the full year, Atlantis' gross margin was 20%, an improvement of 2 percentage points over 1998. The Company's 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 achieved gross margins of 19% in 1999, an improvement of 6 percentage points over 1998, as a result of significant productivity improvements 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. business. In the Company's Plastic Films segment, gross margins for 1999 of 20% were unchanged from 1998. Atlantis' gross margin in the fourth quarter of 1999 was 19% compared with 21% in the same period of 1998 due primarily to an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 55% in Films 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 costs. The Company's 1999 selling, general &administrative expenses (&uot;SG&&uot;) were $25.1 million, reflecting an increase of 2% over 1998. Net interest expense for 1999 was $9.2 million versus $10.5 million in 1998. Net debt (total debt less cash) ended 1999 at $89.4 million compared with $84.3 million at the end of 1998. The increase in net debt was a result of increased capital expenditures associated with the Company's previously announced expansion plans and increases in resin prices, which caused an increase in working capital. Capital expenditures in 1999 totaled $15.7 million compared with $6.6 million in 1998. Anthony F. Bova Bova may refer to:
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. in our Films segment increased over 1998 -- a year when raw material prices tumbled. We are confident this new level of earnings performance is one from which we can continue our growth. Geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion, technical upgrading and capacity additions in our Films business, coupled with continued improvement in Molded Products, will be key to our growth.&uot; 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 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. 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. may include, but are not limited to, projections of revenues, income or losses, capital expenditures, plans for future operations, financing needs of plans, compliance with financial covenants in loan agreements, plans for liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy or sale of assets or businesses, plans relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc products or services of the Company, assessments of materiality MATERIALITY. That which is important; that which is not merely of form but of substance. 2. When a bill for discovery has been filed, for example, the defendant must answer every material fact which is charged in the bill, and the test in these cases seems to , predictions of future events, the ability to obtain additional financing, the Company's ability to meet obligations as they become due, the impact of pending and possible 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. , as well as assumptions relating to the foregoing. In addition, when used in this discussion, the words &uot;anticipates,&uot; &uot;believes,&uot; &uot;estimates,&uot; &uot;expects,&uot; &uot;intends,&uot; &uot;plans&uot; and similar expressions are intended to identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, including, but not limited to, the impact of leverage, dependence on major customers, fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. demand for the Company's products, risks in product and technology development, fluctuating resin prices, competition, litigation, labor disputes, capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , and other risk factors detailed in the Company's Securities and Exchange Commission filings, some of which cannot be predicted or quantified based on current expectations. Additional information is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.atlantisstock.com.
ATLANTIS PLASTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Net sales $64,926 $59,369 $254,055 $250,830
Cost of sales 52,836 47,053 203,943 205,067
-------- -------- -------- --------
Gross profit 12,090 12,316 50,112 45,763
Selling, general and
administrative expenses 6,201 6,206 25,127 24,648
-------- -------- -------- --------
Operating income 5,889 6,110 24,985 21,115
Net interest expense (2,386) (2,416) (9,186) (10,452)
-------- -------- -------- --------
Income from continuing
operations before
income taxes 3,503 3,694 15,799 10,663
Income tax provision (1,528) (1,628) (6,557) (3,974)
-------- -------- -------- --------
Income before
extraordinary items 1,975 2,066 9,242 6,689
Extraordinary loss on early
extinguishment of debt, net - - - (390)
-------- -------- -------- --------
Net income $ 1,975 $ 2,066 $ 9,242 $ 6,299
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per Common
Share (Basic)
Income before
extraordinary items $0.27 $0.28 $1.23 $0.90
Extraordinary loss on early
extinguishment of debt, net - - - (0.05)
-------- -------- -------- --------
Net income $0.27 $0.28 $1.23 $0.85
-------- -------- -------- --------
-------- -------- -------- --------
Weighted-average number
of shares 7,441 7,456 7,526 7,433
Earnings per Common Share
(Diluted)
Income before
extraordinary items $0.25 $0.27 $1.18 $0.87
Extraordinary loss on early
extinguishment of debt, net - - - (0.05)
-------- -------- -------- --------
Net income $0.25 $0.27 $1.18 $0.81
-------- -------- -------- --------
-------- -------- -------- --------
Weighted-average number
of shares 7,835 7,733 7,863 7,732
ATLANTIS PLASTICS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
1999 1998
ASSETS
Cash and cash equivalents $2,288 $2,879
Accounts receivable, net 30,987 25,240
Inventories 17,556 14,918
Other current assets 7,248 8,376
-------- --------
Current assets 58,079 51,413
Property and equipment, net 65,580 58,403
Goodwill, net of accumulated
amortization 45,957 47,390
Other assets 1,050 1,465
-------- --------
Total assets $170,666 $158,671
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $22,565 $22,116
Current portion of long-term debt 10,846 2,538
-------- --------
Current liabilities 33,411 24,654
Long-term debt, less current portion 80,888 84,620
Deferred income taxes 10,258 10,149
Other liabilities 95 544
-------- --------
Total liabilities 124,652 119,967
-------- --------
Commitments and contingencies - -
Shareholders' equity:
Class A Common Stock, $.10 par value,
20,000,000 shares authorized,
4,801,877 and 4,538,054 shares
issued and outstanding in 1999
and 1998 475 454
Class B Common Stock, $.10 par value,
7,000,000 shares authorized,
2,790,945 and 2,918,043 shares
issued and outstanding in 1999
and 1998 268 292
Additional paid-in capital 10,046 9,436
Notes receivable from sale of
Common Stock (1,410) (960)
Retained earnings 36,635 29,482
-------- --------
Total shareholders' equity 46,014 38,704
-------- --------
Total liabilities and
shareholder's equity $170,666 $158,671
-------- --------
-------- --------
SEGMENT/TREND INFORMATION
($ In millions)
1999
-----------------------------------------
Q4 Q3 Q2 Q1
-- -- -- --
NET SALES
Plastic Films $ 47.2 $ 44.7 $ 44.5 $ 40.7
Molded Plastics 17.7 20.4 20.5 18.3
-------- -------- --------- ---------
Total $ 64.9 $ 65.1 $ 65.0 $ 59.0
-------- -------- --------- ---------
-------- -------- --------- ---------
EBITDA (A) $8.5 $9.0 $9.2 $8.4
GROSS PROFIT
Plastic Films 17% 19% 21% 22%
Molded Plastics 22% 19% 19% 18%
Total 19% 19% 20% 21%
OPERATING INCOME
Plastic Films 9% 10% 11% 12%
Molded Plastics 10% 10% 9% 7%
Total 9% 10% 10% 10%
NET INTEREST EXPENSE $2.4 $2.2 $2.3 $2.3
--------------------
1998
-----------------------------------------
Q4 Q3 Q2 Q1
-- -- -- --
NET SALES
Plastic Films $ 42.7 $ 44.3 $ 44.4 $ 44.9
Molded Plastics 16.7 18.7 19.7 19.5
-------- -------- --------- ---------
Total $ 59.4 $ 63.0 $ 64.1 $ 64.4
-------- -------- --------- ---------
-------- -------- --------- ---------
EBITDA (A) $8.6 $7.3 $7.2 $7.7
GROSS PROFIT
Plastic Films 22% 20% 20% 19%
Molded Plastics 17% 11% 12% 15%
Total 21% 17% 17% 18%
OPERATING INCOME
Plastic Films 12% 11% 9% 9%
Molded Plastics 7% 1% 4% 6%
Total 10% 8% 8% 8%
NET INTEREST EXPENSE $2.4 $2.6 $2.7 $2.7
--------------------
(A) Earnings before interest, taxes,depreciation, and amortization
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