Consolidated Container Co. Names New President/CEO, Announces Second Quarter Earnings.Business Editors IRVING, Texas--(BUSINESS WIRE)--Aug. 2, 2001 Consolidated Container Company today announced that Stephen E. Macadam macadam Form of pavement invented by John McAdam. McAdam's road cross-section consisted of a compacted subgrade of crushed granite or greenstone designed to support the load, covered by a surface of light stone to absorb wear and tear and shed water to the drainage ditches. has been named President and Chief Executive Officer effective August 13. Steve has been Executive Vice President of the Pulp and Paperboard paperboard, material similiar in shape and composition to paper, but generally thicker, stronger, and more rigid. Paper machines, e.g., Fourdrinier machines, are used to make sheets of paperboard. division of Georgia-Pacific Corporation (NYSE NYSE See: New York Stock Exchange : GP). Mr. Macadam will succeed William L. Estes, who has resigned to pursue other investment opportunities. Mr. Macadam, 41, joined Georgia-Pacific in March 1998. During his tenure, he dramatically improved the profitability of the $3.5 billion Pulp and Paperboard division, completed and integrated a $280 million acquisition and successfully 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. two joint ventures. Prior to Georgia-Pacific Mr. Macadam was with McKinsey & Company for ten years where he was a Partner in the Atlanta office and also began the firm's practice in Charlotte, NC. While at McKinsey he was a leader of the firm's operations practice. Before joining McKinsey he worked as an engineering manager for E.I. DuPont de Nemours. Mr. Macadam holds an MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration from Harvard Business School Harvard Business School, officially named the Harvard Business School: George F. Baker Foundation, and also known as HBS, is one of the graduate schools of Harvard University. , where he was named a Baker Scholar, the school's highest academic honor, and an M.S. in finance from Boston College Boston College, main campus at Chestnut Hill, Mass.; coeducational; Jesuit; est. and opened 1863. Actually a university, the school's Chestnut Hill campus comprises colleges of arts and sciences and business administration, the graduate school, and schools of nursing . He received a B.S. in mechanical engineering from the University of Kentucky The University of Kentucky, also referred to as UK, is a public, co-educational university located in Lexington, Kentucky. . James P. Kelley James P. Kelley is President and partner of Vestar Capital Partners, along with owner, Robert Rosner and CEO,Daniel O'connell. Vestar todays is a $7 billion private equity firm which concentrates its investments in management buyouts, growth capital, and recapitalizations. , a managing director of Vestar Capital Partners and a member of Consolidated Container's board of directors, said, "Bill Estes has done a good job rationalizing the many businesses that now make up Consolidated Container Company, reducing infrastructure cost, and pursuing new business opportunities. He took three separate companies and twelve smaller acquisitions and combined them to create one of the leading rigid plastic container companies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . With the rationalization rationalization, in psychology: see defense mechanism. now successfully behind us, it is now time to bring in a leader who can focus on fine-tuning the Company's business processes and building on the strategic platform that Bill established." Vestar Capital Partners is a private equity firm that is the controlling shareholder in Consolidated Container Company. Mr. Kelley added, "Steve Macadam demonstrated at Georgia-Pacific, and earlier at McKinsey, the leadership skills that can make Consolidated Container the preferred supplier to the many important customers that we serve. His experience in team building and innovation will also contribute to our goal of making Consolidated Container the best employer in the industry for our 4,400 employees. We're delighted to have attracted an executive of Steve's caliber to the Company." Consolidated Container Company LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control also reported today their financial results for the quarter ended June 30, 2001. Second quarter 2001 revenues were $211.7 million, an increase of $18.6 million or 9.6% from the $193.1 million recorded in the second quarter of 2000. Earnings before interest taxes, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) was $26.9 million for the second quarter 2001, as compared to $34.6 million for the comparable period a year ago. Last year's second quarter EBITDA included $3.0 million of income from a customer contract termination Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). and an insurance recovery. Excluding that income, second quarter 2001 EBITDA declined by $4.7 million or 14.9%. The $18.6 million increase in second quarter 2001 revenue is comprised of $7.8 million of higher sales prices as a result of the pass through of increased 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 and other ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. material costs and a $10.8 million, or approximately 5.5% increase in 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 as a result of higher volumes and the commercialization of two of our eight significant 2001 capital projects. The increased contribution from these sales was more than offset by increased plant operating costs operating costs npl → gastos mpl operacionales . As a result of increased labor, utility and leasing costs, and, to a lesser extent, delays in passing along higher resin costs to customers, second quarter 2001 gross profit decreased by $5.6 million or 16.2% as compared to the same period a year ago. Due to improvements in working capital management and the successful completion of a $28.8 million leasing program, net debt was reduced to $547.5 million, a decrease of $31.9 million from December 31, 2000 levels. Bryan J. Carey, Chief Financial Officer commented: "We are disappointed in our performance this quarter. While we have been successful in replacing business that was lost during 2000 and in being awarded significant new business, we have not been able to offset external cost pressures from rising utility and transportation costs. We are still incurring a higher level of expenses at locations where we have consolidated plants, as well as locations where we are anticipating new business." He further commented: "We have been awarded significant new business and will be commercializing much of this business in the latter part of this year. In addition, we are undertaking activities to offset external cost pressures to improve productivity and expect gradually improved results in the second half of 2001." The Company will further review fiscal 2001 second quarter results in an earnings conference call on August 3, 2001 at 12:00 PM ET. Consolidated Container Company is a leading U.S. developer, manufacturer and marketer of blow-molded rigid plastic containers for the beverage, consumer and industrial markets. The Company was created in 1999 through the merger of Reid Plastics Holdings with the domestic plastic packaging operations of Suiza Foods Corporation. Vestar Capital Partners has completed over thirty investments since the firm's founding in 1988, with a total value of approximately $10 billion. *These investments include Celestial Seasonings Celestial Seasonings is a tea company based in Boulder, Colorado, United States that specializes in herbal tea but also sells green and black tea (as well as white and oolong blends). They account for over $100,000,000 in Herbal Tea Blends Sales in the United States annually. , Insight Communications Insight Communications is the ninth largest cable operator in the United States with approximately 1.4 million customer relationships in the four contiguous states of Illinois, Kentucky, Indiana and Ohio. , La Petite Academy, Michael Foods, Prestone Products, Pyramid pyramid, structure pyramid. The true pyramid exists only in Egypt, though the term has also been applied to similar structures in other countries. Egyptian pyramids are square in plan and their triangular sides, which directly face the points of the Communications, Remington Products Remington Products is a worldwide producer of razors (shavers), epilators and haircare products for men and women. They used to make typewriters. External links
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Denver, Paris and Milan. This press release contains statements, estimates or projections, not historical in nature, that may 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. " as defined under U.S. federal securities laws. These statements, which speak only as of the date given, are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks are discussed in our Company's filings with the Securities and Exchange Commission including our Annual Report on 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. , which filings are available from the SEC.
CONSOLIDATED CONTAINER COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, June 30,
2000 2001
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 8,956 $ 22,815
Investment securities 123 117
Accounts receivable 87,001 106,946
Inventories 39,516 44,628
Other current assets 12,647 15,385
------- ------
Total current assets 148,243 189,891
PROPERTY AND EQUIPMENT, Net 314,466 294,609
INTANGIBLES AND OTHER ASSETS 538,916 529,860
-------- -------
$ 1,001,625 $ 1,014,360
============ ===========
LIABILITIES AND MEMBER'S EQUITY
CURRENT LIABILITIES:
Accounts payable $ 69,323 $ 100,080
Accrued liabilities 35,977 33,364
Revolving credit facility 34,500 25,000
Current portion of long-term debt 22,996 26,230
------- ------
Total current liabilities 162,796 184,674
LONG-TERM DEBT 530,971 519,125
OTHER LIABILITIES 29,417 28,759
MINORITY INTEREST 0 0
MEMBER'S EQUITY:
Member's equity 279,032 282,445
Foreign currency
translation adjustment (591) (643)
------ -----
Total member's equity 278,441 281,802
-------- -------
$ 1,001,625 $ 1,014,360
============ ============
CONSOLIDATED CONTAINER COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2000 2001 2000 2001
NET SALES $ 193,145 $ 211,722 $ 378,301 $ 401,424
COST OF SALES 158,525 182,709 313,017 344,083
-------- -------- -------- -------
GROSS PROFIT 34,620 29,013 65,284 57,341
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE (8,921) (10,260) (18,473) (19,567)
AMORTIZATION EXPENSE (3,495) (3,493) (6,989) (6,986)
RESTRUCTURING CHARGES 2,238 0 2,238 0
------ -- ------ -
OPERATING INCOME 24,442 15,260 42,060 30,788
INTEREST EXPENSE, Net (14,295) (12,648) (27,694) (26,820)
OTHER INCOME (EXPENSE) (21) (74) (63) (65)
----- ----- ----- ----
INCOME BEFORE
MINORITY INTEREST 10,126 2,538 14,303 3,903
MINORITY INTEREST
IN LOSS OF SUBSIDIARY 108 0 198 0
---- -- ---- -
NET INCOME 10,234 2,538 14,501 3,903
OTHER COMPREHENSIVE
INCOME (LOSS)-
Foreign currency
translation
adjustment (161) 141 29 (51)
------ ---- --- ----
COMPREHENSIVE INCOME $ 10,073 $ 2,679 $ 14,530 $ 3,852
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