Atlantis Plastics Announces Second 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 second quarter and six months ended June June: see month. 30, 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 second quarter of 2005 were $101.6 million, compared with $86.8 million for the second 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 $7.9 million was up 23% in the second quarter of 2005, compared with $6.4 million in the second quarter of 2004. Net income for the second quarter of 2005 was $2.4 million, or $0.30 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 $3.1 million, or $0.38 per diluted share, in the second quarter of 2004. Net sales for the first six months of 2005 were $202.0 million, compared with $167.0 million for the comparable period of 2004. Operating income, without 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 $13.9 million in 2005, up 19% compared with $11.7 million for the same period in 2004. Net income for the first six months of 2005 was $2.1 million, or $0.26 per diluted share, compared with $5.6 million, or $0.69 per diluted share, for the comparable period of 2004. On March 22, 2005, the Company entered into a new $220.0 million credit agreement. Borrowings under this agreement were used to repay then existing senior secured debt of $83.9 million, and pay a $103.2 million special dividend to shareholders, $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, and pay related fees and expenses. Net results for the six months ended June 30, 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. These charges, totaling $3.2 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 $0.40 in the first six months of 2005. 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 2005 were 16% and 8%, respectively, compared with 16% and 7%, respectively, for the comparable period in 2004. For the six months ended June 30, 2005, EBITDA, gross margin and operating margin were $18.6 million, 15% and 6%, respectively, compared with $17.5 million, 16% and 7%, respectively, for the six months ended June 30, 2004. EBITDA for the six months ended June 30, 2005 was negatively impacted by a total of $1.0 million in expenses relating to the Company's unconsummated financing and the cancellation of stock options. Net debt (total debt less cash) as of June 30, 2005 was $202.0 million, compared with $87.7 million as of December December: see month. 31, 2004. The increase in debt is largely a result 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 second quarter of 2005 were $8.5 million compared with $7.8 million for the second quarter of 2004. Selling, general and administrative expenses for the first six months of 2005 were $16.7 million compared to $15.4 million for the six months of 2004. Both increases were primarily due to increases in compensation costs. Net interest expense for the second quarter of 2005 was $4.1 million, compared with $1.3 million for the second quarter of 2004. Net interest expense for the first six months of 2005 was $5.9 million, compared with $2.7 million for the first six months of 2004. Both increases were a result of additional borrowings in connection with the one-time special dividend and option payments discussed above. 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 23% and EBITDA by 15%. For the first half of 2005, excluding the impact of the write-off of unconsummated financing and option cancellation charges, we increased our gross profit by 13%, operating profit by 19% and EBITDA by 12%. "In our Plastic Films segment, net sales volume (measured in pounds) decreased 4% in the second quarter compared to pounds shipped in the second quarter of 2004. With the peaking 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 in the first quarter of 2005, we saw the expected moderation of order rates as inventories returned to more normalized levels throughout our distribution channels. Despite flat year-over-year volume (measured in pounds) for the first six months of 2005, our focus on margin protection and operating cost reduction generated increases in gross profit of 15% and operating profit of 14%. With the second quarter 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. behind us, we anticipate increased second half order rates and a continuation continuation - continuation passing style of strong operating results in the second half 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 second quarter results due to strong growth in both our building products line 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 quarter, sales increased 15%, gross profit increased 18% and operating profit increased 34%. For the first half of 2005, sales increased 12%, gross profit increased 5% and operating profit increased 7%, compared with the first six months of 2004. After a first quarter slow start resulting from delays in the pass-through pass-through n. 1. An opening between two rooms, especially a shelved space between a kitchen and dining room that is used for passing food. 2. A route through which something is permitted to pass. 3. of resin price increases and weather related weakness in building products order rates, we have seen a significant increase in building products orders and we expect to see strong operating results from this segment in the second half of 2005. "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. 37% for the quarter and 44% for the six month period, primarily as a result of the acquisition of LaVanture in the fourth quarter of 2004. While second quarter operating income was negatively impacted by a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the recreational vehicle sector, we now have completed the integration of LaVanture and have an excellent business platform to support our customer base. For the first half of 2005, our Profile Extrusion business increased gross profit and operating profit by 23% and 6%, respectively, compared to the first six months of 2004." 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: 51417#). For more information, please visit http://www.atlantisstock.com.
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
(In thousands, except per
share data) (Unaudited) 2005 2004 2005 2004
--------------------------------------------------------------------
Net sales $101,585 $86,785 $202,006 $167,013
Cost of sales 85,263 72,529 171,376 139,846
--------------------------------------------------------------------
Gross profit 16,322 14,256 30,630 27,167
Selling, general and
administrative expenses 8,456 7,845 16,688 15,426
Stock option expense - - 461 -
Costs of unconsummated
financing - - 555 -
--------------------------------------------------------------------
Operating income 7,866 6,411 12,926 11,741
Unamortized deferred
financing cost write-off - - (3,794) -
Net interest expense (4,093) (1,346) (5,860) (2,675)
Other expense (43) (56) (59) (65)
--------------------------------------------------------------------
Income before provision for
income taxes 3,730 5,009 3,213 9,001
Provision for income taxes 1,285 1,880 1,100 3,376
--------------------------------------------------------------------
Net income $2,445 $3,129 $2,113 $5,625
--------------------------------------------------------------------
Basic earnings per share $0.30 $0.41 $0.26 $0.73
Diluted earnings per share $0.30 $0.38 $0.26 $0.69
--------------------------------------------------------------------
Weighted average number of
shares used in computing
earnings per share:
Basic 8,256 7,682 8,091 7,672
Diluted 8,256 8,132 8,091 8,097
---------------------------- --------- --------- --------- ---------
Cash dividends paid per
common share $12.50 $- $12.50 $-
---------------------------- --------- --------- --------- ---------
ATLANTIS PLASTICS, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(In thousands, except share and per share
data) 2005(1) 2004
---------------------------------------------------------------------
ASSETS
Cash and cash equivalents $73 $51
Accounts receivable (net of allowances of
$1,230 and $1,228) 52,104 45,982
Inventories 36,623 38,186
Other current assets 7,281 4,760
Deferred income tax assets 4,020 3,978
---------------------------------------------------------------------
Total current assets 100,101 92,957
Property and equipment, net 64,873 64,165
Goodwill, net of accumulated amortization 51,413 51,413
Other assets 6,986 4,759
---------------------------------------------------------------------
Total assets $223,373 $213,294
---------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' (DEFICIT)
EQUITY
Accounts payable and accrued expenses 34,693 41,048
Current maturities of long-term debt 1,200 6,955
---------------------------------------------------------------------
Total current liabilities 35,893 48,003
Long-term debt 200,900 80,790
Deferred income tax liabilities 11,429 11,211
Other liabilities 1,034 1,013
---------------------------------------------------------------------
Total liabilities 249,256 141,017
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 (25,884) 59,355
---------------------------------------------------------------------
Total shareholders' (deficit) equity (25,883) 72,277
---------------------------------------------------------------------
Total liabilities and shareholders' (deficit)
equity $223,373 $213,294
---------------------------------------------------------------------
(1) Unaudited
ATLANTIS PLASTICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
--------------------
(In thousands) (Unauited) 2005 2004
---------------------------------------------------------------------
Cash Flows From Operating Activities
Net income $2,113 $5,625
Adjustments to reconcile net income to net cash
used for operating activities:
Depreciation 5,775 5,727
Loan fee and other amortization 4,195 511
Stock option expense 461 -
Interest receivable from shareholder loans (5) 40
Gain on disposal of assets (8) -
Deferred income taxes 176 46
Change in operating assets and liabilities:
Accounts receivable (6,122) (5,966)
Inventory 1,563 1,369
Other current assets (2,521) (898)
Accounts payable, accrued expenses and other
current liabilities (10,793) (7,226)
Other assets and liabilities (355) (19)
---------------------------------------------------------------------
Net cash used for operating activities (5,521) (791)
---------------------------------------------------------------------
Cash Flows From Investing Activities
Capital expenditures (6,511) (3,759)
Proceeds from asset dispositions 38 4
---------------------------------------------------------------------
Net cash used for investing activities (6,473) (3,755)
---------------------------------------------------------------------
Cash Flows From Financing Activities
Net (repayments) borrowings under revolving
credit facility (9,760) 8,500
Borrowings under new credit agreement 194,700 -
Repayments under old term loans (70,587) (7,871)
Financing costs associated with new credit
agreement (5,836) -
Proceeds from exercise of stock options 2,522 344
Income tax benefit from employee stock options 3,718 -
Payment of special dividend (103,198) -
Repayments on notes receivable from shareholders 457 800
---------------------------------------------------------------------
Net cash provided by financing activities 12,016 1,773
---------------------------------------------------------------------
Net increase (decrease) in cash and cash
equivalents 22 (2,773)
Cash and cash equivalents at beginning of period 51 3,001
---------------------------------------------------------------------
Cash and cash equivalents at end of period $73 $228
---------------------------------------------------------------------
Supplemental disclosure of non-cash activities
Non-cash reduction of accounts receivable and
accounts payable in connection with supplier
agreements $(843) $(1,087)
ATLANTIS PLASTICS, INC.
SEGMENT/TREND INFORMATION
2005 2004
--------------- -------------------------------
(In millions) Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
PLASTIC FILMS VOLUME
(in pounds) 65.8 68.9 68.9 69.9 68.9 65.9
NET SALES
Plastic Films $62.4 $65.7 $60.6 $56.9 $54.1 $50.7
Injection Molding 30.1 26.1 23.9 26.1 26.1 23.8
Profile Extrusion 9.1 8.6 6.9 6.4 6.6 5.7
---------------------------------------------------------------------
Total $101.6 $100.4 $91.4 $89.4 $86.8 $80.2
GROSS MARGIN
Plastic Films 15% 14% 16% 16% 15% 15%
Injection Molding 17% 13% 14% 16% 17% 16%
Profile Extrusion 20% 20% 21% 24% 25% 23%
---------------------------------------------------------------------
Total 16% 14% 16% 17% 16% 16%
OPERATING MARGIN
Plastic Films 6% 4% 6% 6% 6% 6%
Injection Molding 10% 5% 6% 8% 8% 8%
Profile Extrusion 10% 11% 10% 14% 15% 12%
---------------------------------------------------------------------
Total 8% 5% 6% 7% 7% 7%
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA(1)
2005 2004
--------------- -------------------------------
(In millions) Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
Net (loss) income $2.4 $(0.3) $2.7 $3.2 $3.1 $2.5
Net interest expense 4.1 1.7 1.6 1.3 1.4 1.3
Unamortized deferred
financing cost write-
off (2) - 3.8 - - - -
(Benefit) provision
for income taxes 1.3 (0.2) 1.5 1.9 1.9 1.5
Depreciation and
amortization 2.9 2.9 2.8 2.7 2.9 2.9
---------------------------------------------------------------------
EBITDA $10.7 $7.9 $8.6 $9.1 $9.3 $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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