Consumers Packaging Reports Third Quarter Results.Business Editors TORONTO--(BUSINESS WIRE)--Nov. 29, 2000 Abnormally high fuel costs and settlement of a legal dispute result in net loss; but customers agree to share fuel costs and accept price increases on products Consumers Packaging Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CGC CGC Canine Good Citizen (AKC Dog Title) CGC Commission Géologique du Canada (Geological Survey of Canada) CGC Confédération Générale des Cadres (French labor union) .TO) had a consolidated net loss of $24.7 million in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents , or $0.61 per share, for the three months ended September 30 on sales of $421.0 million. The loss is attributable to the abnormally high cost of natural gas and other fuels used in glass manufacturing and a charge of $5.9 million, plus legal costs, to settle a protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. legal dispute and secure a paid-up Paid-Up The state of a settlement when all payment obligations for a security have been completed in a customer account. When an individual has paid up, he or she has paid for the security in full. license for technology from a competitor. The company had a loss of $8.9 million, or $0.24 per share, for the third quarter of 1999 on sales of $453.2 million. John J. Ghaznavi, chairman and chief executive officer, said that customers have now agreed to share the high cost of natural gas and other fuels, the primary impediment A disability or obstruction that prevents an individual from entering into a contract. Infancy, for example, is an impediment in making certain contracts. Impediments to marriage include such factors as consanguinity between the parties or an earlier marriage that is still valid. to current profitability. He said customers in both Canada and the U.S. have also been receptive receptive /re·cep·tive/ (re-cep´tiv) capable of receiving or of responding to a stimulus. to general price increases on the company's products. Much of the benefit from both developments will be realized in 2001. Ghaznavi said the company's principal subsidiary, U.S.-based Anchor Glass Container Corporation, recently secured a US$100 million, three-year revolving bank loan, providing significantly increased liquidity. A similar financing for Consumers' Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. operations is under negotiation to replace a credit agreement with another lender that is presently due to expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on November 30, 2000. The company expects that the existing credit agreement will be extended beyond the current expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. . In view of the normal seasonal cycle of the industry and the current effect of fuel costs, Ghaznavi anticipates negative results in the final quarter of 2000 and improved results in 2001, although he cautioned that the high cost of fuels remains a major variable. For the nine months ended September 30, 2000, the consolidated net loss was $30.1 million in Canadian dollars, or $0.75 per share, on sales of $1,253.2 million. For the first nine months of 1999 the company reported a loss of $23.6 million, or $0.67 per share, on sales of $1,226.5 million. The company reports results in both Canadian dollars-Canadian GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). (generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) and US dollars-US GAAP. In US dollars-US GAAP for the three months ended September 30, 2000, the consolidated net loss was $16.6 million, or $0.41 per share, on sales of $284.1 million. The loss reflects a $2.5 million exchange loss arising from the translation of US denominated bond debt from Canadian dollars to US dollars. For the same period in 1999 the company reported a loss of $4.6 million, or $0.11 per share, on sales of $304.9 million. For the nine months ended September 30, 2000, the loss was $20.2 million, or $0.50 per share, reflecting a translation loss of $6.5 million. Sales for the period were $851.4 million. By comparison, for the first nine months of 1999 the loss was $12.9 million, or $0.35 per share, on sales of $857.5 million. These results include sales of approximately $35.0 million, not included in Canadian GAAP, related to the Glenshaw Glass acquisition, and a translation gain of $3.2 million.
Consumers Packaging Inc.
Three and nine months ended September 30, 2000 and 1999 Canadian
GAAP, Canadian dollars in thousands, except per share data Unaudited
Three months Nine months
ended Sept. 30 ended Sept. 30
2000 1999 2000 1999
Gross sales $ 421,013 $ 453,236 $1,253,177 $1,226,526
Operating income 5,430 15,270 48,601 55,556
Net loss (24,684) (8,911) (30,142) (23,645)
Net loss per share-
Basic and fully diluted $(0.61) $ (0.24) $ (0.75) $ (0.67)
Three and nine months ended September 30, 2000 and 1999 US GAAP,
US dollars in thousands, except per share data Unaudited
Three months Nine months
ended Sept. 30 ended Sept. 30
2000 1999 2000 1999
Gross sales $ 284,072 $ 304,868 $ 851,405 $ 857,532
Operating income 5,565 10,781 37,444 35,811
Net loss (16,643) (4,558) (20,163) (12,881)
Net loss per share-
Basic and fully
diluted $ (0.41) $ (0.11) $ (0.50) $ (0.35)
This news release contains forward-looking statements-typically identified by words such as "will" and "anticipate"-that are subject to a number of risks and uncertainties, many of which are beyond the control of the company. As a result of these risks and uncertainties, actual results for the company could differ materially from those contemplated by the 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. . There can be no assurance that the results and events contemplated by the forward-looking information will occur. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. |
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