Atlantis Plastics Announces Second Quarter 2004 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. (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, 2004. 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 2004 were $86.8 million compared with $67.2 million for the second quarter of 2003. Net income for the second quarter of 2004 was $3.1 million, or $0.38 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 $1.0 million, or $0.12 per diluted share, in the second quarter of 2003. Net sales for the first six months of 2004 were $167.0 million compared with $134.9 million for the comparable period of 2003. Net income for the first six months of 2004 was $5.6 million, or $0.69 per diluted share, compared with $2.6 million, or $0.34 per diluted share, for the comparable period of 2003. In the Company's Plastic Films segment, net sales increased 31% in the second quarter and 20% during the first six months of 2004 compared to the same periods in the prior year. Plastic Films' sales volume (measured in pounds) increased 34% and 15% for the quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. periods, respectively, from the comparable periods in 2003. 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 and six months ended June 30, 2004 increased 27% and 34%, respectively, from the comparable periods in 2003. Net sales for the second quarter and the first half of 2004 in the Profile Extrusion segment increased 25% and 22%, respectively, from the comparable periods in 2003. 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 2004 were 16% and 7%, respectively, compared with 15% and 4%, respectively, for the comparable period in 2003. For the six months ended June 30, 2004, EBITDA, gross margin and operating margin were $17.5 million, 16%, and 7%, respectively, compared with $12.8 million, 16%, and 5%, respectively, for the six months ended June 30, 2003. Net debt (total debt less cash) at June 30, 2004 was $77.6 million compared with $74.2 million at December December: see month. 31, 2003. This increase in net debt was largely a result of the need to support increased working capital driven primarily by an increase in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , related to higher net sales, and a decrease in accounts payable. Selling, general and administrative expenses for the second quarter of 2004 were $7.8 million compared with $7.3 million for the second quarter of 2003. Selling, general and administrative expenses for the first six months of 2004 were $15.4 million compared with $14.0 million for the first six months of 2003. Both increases are primarily the result of increases in incentive compensation costs. Anthony F. Bova Bova may refer to:
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 of 217% and increased EBITDA by 63% compared to the second quarter of 2003. "In our Plastic Films segment, net sales increased 31% from the second quarter of 2003. Film volume (measured in pounds) grew significantly for the quarter, with shipments up 34%. For the first half of 2004, our film shipments were up 15% compared to the prior year. Our Plastics Films business has realized year-over-year increases in gross profit of 21% and 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. of 54%. We have seen a more normalized buying pattern from our customers in the first half of 2004 compared to the 2003 first quarter inventory "buy in" that was followed by a significant 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 second quarter of 2003. With the demand pattern we have experienced in 2004, we believe we have grown our market share and we expect to see strong operating results continue in the second half of 2004. "Our Injection Molding segment continues to generate excellent operating results. As a result of the continuing strong growth within our building products line and strength within 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, our Injection Molding sales were up 27% for the second quarter and were up 34% for the first half of 2004 as compared to the prior year. This strong sales growth has resulted in continuing improvements in both gross profit and operating profit, with increases of 59% and 139%, respectively, in the first half of 2004 compared to the prior year. "We continue to see strong operating results from our Profile Extrusion business. Second quarter sales grew by 25% and operating profit increased by 29% over the prior year's quarter. For the first half of 2004, our Profile Extrusion business increased sales by 22% and increased gross profit and operating profit by 14% and 18%, respectively, compared to the first six months of 2003. With the continuing recovery of the RV sector, we expect to see strong operating results from this segment through the balance of the year." 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 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, 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 2003 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 1-800-930-1344. For more information, please visit http://www.atlantisstock.com.
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Six Months
Ended Ended
June 30, June 30,
(in thousands, except per share
data) 2004 2003 2004 2003
----------------------------------------------------------------------
Net sales $86,785 $67,207 $167,013 $134,876
Cost of sales 72,529 57,111 139,846 113,875
----------------------------------------------------------------------
Gross profit 14,256 10,096 27,167 21,001
Selling, general and
administrative expenses 7,845 7,306 15,426 13,974
----------------------------------------------------------------------
Operating income 6,411 2,790 11,741 7,027
Net interest expense 1,402 1,279 2,740 2,769
----------------------------------------------------------------------
Income before provision for
income taxes 5,009 1,511 9,001 4,258
Provision for income taxes 1,880 556 3,376 1,641
----------------------------------------------------------------------
Net income $3,129 $955 $5,625 $2,617
----------------------------------------------------------------------
Basic earnings per share $0.41 $0.13 $0.73 $0.34
Diluted earnings per share $0.38 $0.12 $0.69 $0.34
----------------------------------------------------------------------
Weighted average number of shares
used in computing earnings per
share (in thousands):
Basic 7,682 7,596 7,672 7,587
Diluted 8,132 7,699 8,097 7,659
ATLANTIS PLASTICS, INC.
CONSOLIDATED BALANCE SHEETS
June December
30, 31,
(in thousands, except share and per share data) 2004 2003
----------------------------------------------------------------------
ASSETS
Cash and cash equivalents $228 $3,001
Accounts receivable, net of allowances of $1,155 and
$1,281, respectively 45,567 39,601
Inventories 21,936 23,305
Other current assets 4,481 3,583
Deferred income tax asset 3,003 3,003
----------------------------------------------------------------------
Total current assets 75,215 72,493
Property and equipment, net 58,354 60,347
Goodwill, net of accumulated amortization 47,212 47,212
Other assets 4,237 4,748
----------------------------------------------------------------------
Total assets $185,018 $184,800
----------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $28,923 $36,149
Current portion of long-term debt 6,043 10,487
----------------------------------------------------------------------
Total current liabilities 34,966 46,636
Long-term debt, less current portion 71,786 66,713
Deferred income taxes 12,777 12,731
Other liabilities 275 315
----------------------------------------------------------------------
Total liabilities 119,804 126,395
Commitments and contingencies - -
Shareholders' equity:
Class A Common Stock, $.10 par value, 20,000,000
shares authorized,
5,361,165 and 5,170,842 shares issued and
outstanding in 2004 and 2003 536 517
Class B Common Stock, $.10 par value, 7,000,000
shares authorized,
2,320,658 and 2,456,981 shares issued and
outstanding in 2004 and 2003 232 246
Additional paid-in capital 11,458 11,119
Notes receivable from sale of common stock (477) (1,317)
Retained earnings 53,465 47,840
----------------------------------------------------------------------
Total shareholders' equity 65,214 58,405
----------------------------------------------------------------------
Total liabilities and shareholders' equity $185,018 $184,800
----------------------------------------------------------------------
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months
Ended
June 30,
(in thousands) 2004 2003
----------------------------------------------------------------------
OPERATING ACTIVITIES
Net income $5,625 $2,617
Adjustments to reconcile net income to net cash (used
for) provided by
operating activities:
Depreciation and other amortization 5,727 5,840
Loan fee amortization 511 478
Interest receivable from shareholder loans 40 (21)
Deferred income taxes 46 (802)
Changes in operating assets and liabilities:
Accounts receivable (5,966)(7,108)
Inventory 1,369 1,196
Other current assets (898) 3,637
Accounts payable and accrued expenses (7,226) 589
Other assets and liabilities (19) (338)
----------------------------------------------------------------------
Net cash (used for) provided by operating activities (791) 6,088
----------------------------------------------------------------------
INVESTING ACTIVITIES
Capital expenditures (3,759)(4,232)
Proceeds from asset dispositions 4 -
----------------------------------------------------------------------
Net cash used for investing activities (3,755)(4,232)
----------------------------------------------------------------------
FINANCING ACTIVITIES
Net borrowings under revolving credit agreements 8,500 1,450
Payments on long-term debt (7,871)(2,554)
Payments on notes receivable from shareholders 800 332
Proceeds from exercise of stock options 344 243
----------------------------------------------------------------------
Net cash provided by (used for) financing activities 1,773 (529)
----------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents (2,773) 1,327
Cash and cash equivalents at beginning of period 3,001 1,225
----------------------------------------------------------------------
Cash and cash equivalents at end of period $228 $2,552
----------------------------------------------------------------------
Supplemental disclosure of non-cash activities:
Non-cash change in accounts receivable and accounts
payable in connection
with supplier agreements $(1,087) $803
ATLANTIS PLASTICS, INC.
SEGMENT/TREND INFORMATION
2004 2003
------------- ---------------------------
(in millions) Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
NET SALES
Plastic Films $54.1 $50.7 $49.8 $49.1 $41.4 $46.1
Injection Molding 26.1 23.8 22.5 21.6 20.5 16.8
Profile Extrusion 6.6 5.7 5.3 5.9 5.3 4.8
---------------------------------------------------------------------
Total $86.8 $80.2 $77.6 $76.6 $67.2 $67.7
GROSS MARGIN
Plastic Films 15% 15% 18% 15% 14% 16%
Injection Molding 17% 16% 16% 15% 14% 13%
Profile Extrusion 25% 23% 19% 25% 26% 25%
---------------------------------------------------------------------
Total 16% 16% 18% 16% 15% 16%
OPERATING MARGIN
Plastic Films 6% 6% 8% 6% 2% 6%
Injection Molding 8% 8% 7% 7% 5% 4%
Profile Extrusion 15% 12% 7% 15% 14% 14%
---------------------------------------------------------------------
Total 7% 7% 8% 7% 4% 6%
RECONCILIATION OF NET INCOME TO EBITDA(1)
2004 2003
------------- ---------------------------
(in millions) Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
Net income $3.1 $2.5 $3.1 $2.5 $0.9 $1.7
Net interest expense 1.4 1.3 1.3 1.4 1.3 1.5
Provision for income taxes 1.9 1.5 1.6 1.6 0.6 1.0
Depreciation and
amortization 2.9 2.9 3.0 3.0 2.9 2.9
---------------------------------------------------------------------
EBITDA $9.3 $8.2 $9.0 $8.5 $5.7 $7.1
---------------------------------------------------------------------
(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.
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