Badger Paper Mills Inc. announces earnings.PESHTIGO Peshtigo (pĕsh`tĭgō'), city (1990 pop. 3,154), Marinette co., NE Wis., on the Peshtigo River 6 mi (9.7 km) inland from its mouth on Green Bay; inc. 1903. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--April 25, 1995--Badger Paper Mills 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 Symbol BPMI BPMI Business Process Management Initiative (HP, Nortel, Sun, Sybase, Etc.) BPMI British Profile Management Initiative ) reported sales and earnings for the first quarter of 1995. Edwin Edwin or Eadwin (both: ĕd`wĭn), 585?–632, king of Northumbria (616–32), The son and heir of Ælla, king of Deira, he was kept from his inheritance by Æthelfrith. A. Meyer Mey·er , Annie Florance Nathan 1867-1951. American writer and a founder of Barnard College at Columbia University (1889). Her plays include The Dominant Sex (1911) and Black Souls (1932). , Jr., chairman, along with Claude Claude , Albert 1899-1983. Belgian-born American biologist who was among the first to use the electron microscope for biological research. He shared a 1974 Nobel Prize for developing methods of separating and analyzing cell components. L. Van Hefty heft·y adj. heft·i·er, heft·i·est 1. Of considerable weight; heavy. 2. Rugged and powerful. See Synonyms at heavy. 3. , president, announced preliminary results for the first quarter compared to the same period in 1994. Sales for the quarter totaled $22,114,000 compared to $17,049,000 reported in 1994. Net earnings in the first quarter of $241,000, or 12 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to a reported loss of $497,000, or 25 cents per share, in the same period a year ago. The operating results include a first quarter charge in the amount of $504,000 taken as a result of the expense incurred from the voluntary early retirement incentive plan offered to hourly workers. A copy of the report which will be mailed to shareholders is attached. Badger badger, name for several related members of the weasel family. Most badgers are large, nocturnal, burrowing animals, with broad, heavy bodies, long snouts, large, sharp claws, and long, grizzled fur. Paper Mills produces fine and 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. products, including printing and writing papers, xerographic xe·rog·ra·phy n. A dry photographic or photocopying process in which a negative image formed by a resinous powder on an electrically charged plate is electrically transferred to and thermally fixed as positive on a paper or other copying surface. , recycled papers, M. G. laminating lam·i·nate v. lam·i·nat·ed, lam·i·nat·ing, lam·i·nates v.tr. 1. To beat or compress into a thin plate or sheet. 2. To divide into thin layers. 3. grades, plain and printed waxed papers waxed paper n. Wax paper. waxed paper or wax paper Noun paper treated or coated with wax or paraffin to make it waterproof , and various other specialty products at its manufacturing and converting facilities located in Peshtigo and Oconto There are a few places named Oconto in the United States:
April 26, 1995 To Our Stockholders: Badger Paper Mills Inc. has reported increased sales of $22,114,000 for the first quarter of 1995, compared to $17,049,000 for first quarter of 1994. First quarter earnings of $241,000, or 12 cents per share, compared to a net loss of $497,000, or 25 cents per share, for the same period a year ago. Recent changes instituted in our manufacturing and converting facilities have resulted in increasing operating efficiencies and reducing production costs. The operating results include a first quarter charge in the amount of $504,000 taken as a result of the expense incurred from the voluntary early retirement incentive package offered to hourly workers. This program allowed the company to reduce the overstaffing brought about by changes implemented in the manufacturing process during 1994. The demand for uncoated free-sheet papers, which began to strengthen in the third quarter of 1994, has continued so that customers served by this market currently are on allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as . The purchased fiber market, which witnessed a doubling of prices in 1994, is the subject of further price increases announced for March and June June: see month. of 1995. Paper prices, which previously had lagged behind the increasing fiber market, have finally adjusted to reflect these rising fiber prices. Early in 1995, uncoated free-sheet prices returned to levels experienced during the second quarter of 1989. Industry publications project that the demand for uncoated free sheet printing and writing paper grades will increase 3.5% during 1995, while announced added production is estimated at 1.6% for the same period. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the strong demand for these papers will continue well into 1996, although we will carefully monitor market trends. The backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for flexible packaging papers produced on our Yankee Yankee, term used by Americans generally in reference to a native of New England and by non-Americans, especially the British, in reference to an American of any section. paper machine continues to be at manageable levels, which enable us to meet customer expectations. Positive pricing adjustments have been instituted, which reflect the rising cost of purchased fiber within flexible packaging papers. During the first quarter, Badger's Oconto Falls subsidiary, Plas-Techs Inc., announced an expansion project which will double the size of its existing facility. Plas-Techs' business has increased in excess of 30% annually since its acquisition in 1991, and has outgrown its original physical dimensions. Additional equipment will be installed to support its existing converting capacity. Plas-Techs was profitable in the first quarter, 1995. Capital expenditures during the first quarter, 1995, were $342,000 as compared to $526,000 for the first quarter of 1994. Major capital expenditures were reduced from prior periods due to the lack of profitability during previous quarters. Future capital improvement expenditures will be directed toward projects which will increase productivity, improve quality, and meet new product development requirements. Depreciation expense for the first quarter of 1995 was $822,000, compared to $874,000 for the same period in 1994. To further our commitment to quality, Badger initiated efforts in March 1995, to become ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certified See certification. . The ISO certification process will strengthen and improve our overall commitment to product quality. This effort will assist us in meeting customers' current and future quality needs, while maintaining current levels of market share. As we have discussed in prior reports, the major environmental issue facing the pulp and paper industry The global pulp and paper industry is dominated by North American (United States, Canada), northern European (Finland, Sweden) and East Asian countries (such as Japan). Australasia and Latin America also have significant pulp and paper industries. is the Environmental Protection Agency's proposed Cluster cluster, in astronomy: see star cluster; galaxy. (1) Two or more systems working together. See clustering. (2) Also called an "allocation unit" or "file allocation unit," it is some number of disk sectors that are treated as a unit. Rule. We have retained outside consultants to study the proposals of the Cluster Rule and its 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. impact on our sulphite sulphite or US sulfite Noun Chem any salt or ester of sulphurous acid operation, and to provide the estimated cost to achieve compliance should the Cluster Rule be implemented as currently proposed. Badger's financing instruments contain certain restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. which include a limitation on the payment of dividends. As a result, there will be no dividends paid during the second quarter. We will continue to make every effort to modify manufacturing processes and improve product quality and customer service, while increasing the return to our stockholders. The past few years have been difficult, not only for Badger, but also for the entire paper industry. As we look forward to improved profitability, we wish to take this opportunity to thank our employees, customers, suppliers, and you, our shareholders, for the loyal support that you have exhibited. Respectfully re·spect·ful adj. Showing or marked by proper respect. re·spect  ful·ly adv. submittedClaude L. Van Hefty President -0-
Badger Paper Mills Inc.
Consolidated Interim Statements of Operations:
Three Months Ended
March 31, March 31,
1995 1994
_________ _________
Net sales $22,114,107 $17,048,540 Cost of sales 20,925,117 16,392,820 _______________________________________________________________ Gross profit 1,188,990 655,720 Selling and administrative expenses 877,039 884,295 _______________________________________________________________ Operating income 311,951 (228,575) Other income 428,689 (252,198) Interest expense (374,757) (334,516) _______________________________________________________________ Earnings (loss) before provisions for income taxes 365,883 (815,289) Provision for income tax 124,470 (317,975) _______________________________________________________________ Net earnings (loss) $241,413 $ (497,314) _______________________________________________________________ _______________________________________________________________ Net earnings (loss) per share $ 0.123 $ (0.254) _______________________________________________________________ _______________________________________________________________ Average shares outstanding 1,956,830 1,957,330 Book value per share $ 9.89 $ 10.81 Consolidated Interim Balance Sheets
Assets: March 31, December 31,
1995 1994
_________ _________
Current assets:
Cash & temporary cash investments $ 842,822 $1,375,057
Marketable securities 3,630,613 3,397,184
Accounts receivable - net 7,880,656 6,770,635
Inventories 5,436,761 6,318,834
Refundable income taxes 299,348 299,348
Other current assets 1,527,064 1,368,163
_______________________________________________________________
Total current assets 19,617,264 19,529,221
Fixed assets - net 30,414,567 30,893,697
Other assets 2,034,143 1,985,210
Restricted funds from industrial
revenue bonds 1,936,343 1,973,595
_______________________________________________________________
$54,002,317 $54,381,723
_______________________________________________________________
_______________________________________________________________
Liabilities & Capital:
Revolving credit notes payable $12,000,000 $12,000,000
Current portion of long-term debt 111,232 111,232
Accounts payable 4,442,386 5,110,671
Accrued liabilities 3,430,728 3,582,795
_______________________________________________________________
Total current liabilities 19,984,346 20,804,698
Deferred income taxes 2,218,240 2,218,240
Long-term debt 10,639,904 10,650,714
Other liabilities 1,798,336 1,587,992
Stockholders' ownership 19,361,491 19,120,079
_______________________________________________________________
$54,002,317 $54,381,723
_______________________________________________________________
_______________________________________________________________
Consolidated Statements of Cash Flow
Three Months Ended
March 31, March 31,
1995 1994
___________ ___________
Cash flows from operating activities:
Net earnings (loss) $ 241,413 $ (497,314)
Adjustments to reconcile to net cash
Provided by (used in) operating activities:
Depreciation 821,532 874,404
Net change of marketable securities 60,000 (40,765)
Unrealized (gain) loss on marketable
securities (293,429) 417,737
(Increase) decrease in receivables, net (1,110,021) 217,350
Decrease (increase) in inventories 882,073 (343,179)
Decrease in accounts payable and
accrued liabilities (820,352) (457,009)
Other 2,509 3,817
____________________________________________________________________
Net cash (used in) provided by
operating activities (216,275) 175,041
____________________________________________________________________
Cash flows from investing activities:
Additions to property, plant and
equipment, net (342,402) (525,760)
Decrease in restricted funds from
industrial revenue bonds 37,252 35,037
____________________________________________________________________
Net cash used in investing activities (305,150) (490,723)
____________________________________________________________________
Cash flows from financing activities:
Payments on long-term debt (10,810) (9,981)
____________________________________________________________________
Net cash used in financing activities (10,810) (9,981)
____________________________________________________________________
Net decrease in cash and cash equivalents (532,235) (325,663)
Cash and cash equivalents:
Beginning of period 1,375,057 1,065,215
____________________________________________________________________
End of period $ 842,822 $ 739,552
____________________________________________________________________
____________________________________________________________________
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
1. The above statements, being interim statements, are subject to final audit. CONTACT: Badger Paper Mills Inc., Peshtigo Miles L. Kresl, Jr., 715/582-4551 |
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