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GIBRALTAR PACKAGING GROUP REPORTS THIRD-QUARTER AND NINE-MONTH RESULTS; COMPLETES ACQUISITION OF RIDGEPAK CORPORATION

GIBRALTAR PACKAGING GROUP REPORTS THIRD-QUARTER AND NINE-MONTH RESULTS;
 COMPLETES ACQUISITION OF RIDGEPAK CORPORATION
 HASTINGS, Neb., April 28 /PRNewswire/ -- Gibraltar Packaging Group, Inc. (NASDAQ-NMS: PACK) today released its first earnings report since the company went public with an initial public offering of 1,314,055 common shares on March 5, 1992. he company said results were consistent with analysts' estimates.
 Pro Forma Results
 On a pro forma basis, giving effect to the acquisition of RidgePak Corporation as of July 1, 1990, sales for the third quarter ended March 31, 1992, were $9,670,000, as compared to $8,568,000 a year earlier. Pro forma net income for the third quarter ended March 31, 1992, was $549,322, or 13 cents per share, compared with $667,335, or 15 cents per share, in the 1991 quarter,
 For the nine months ended March 31, 1992, pro forma sales amounted to $29,884,000, as compared to $26,060,000 in the nine months ended March 31, 1991. Pro forma net income for the nine months ended March 31, 1992, was $1,873,496, or 43 cents per share, compared to $1,929,639, or 45 cents per share, in the 1991 nine months.
 The company said profits in the 1992 third quarter and nine months were affected by higher sales volume of lower margin folding carton products associated with greater penetration of new and existing customers, and for the third quarter, a higher effective tax rate. The company's Ohio manufacturing plant incurred start-up costs associated with a printing press installation which reduced profits in the nine months ended March 31, 1992. Profits were also affected by increased legal, audit and other acquisition costs associated with the August 1991 acquisition of certain assets of a distressed packaging manufacturing company. In contrast, results for the 1991 periods were positively affected by a $100,769 (1.4 cent per share ) gain on the sale of fixed assets.
 Per-share pro forma earnings are based on 4,314,055 shares outstanding in all periods.
 Historical Results
 As expected, net earnings for the 1992 quarter were affected by the amortization of intangibles including an inventory write-up, goodwill, and a write-up of fixed assets generated from the March 4, 1992, acquisition of RidgePak Corporation, which is accounted for under purchase method. These are non-cash charges to income. Management expects the inventory write-up will be fully amortized by year end.
 Chief Financial Officer Richard Gosnell, said the RidgePak transaction, which doubles the size of Gibraltar Packaging Group, should enhance its competitive position by extending its geographic market area and enabling Gibraltar and RidgePak to cross-sell products to each other's customers. The benefits of the merger of Gibraltar and RidgePak have not yet been realized due to the very recent timing of the combination of the two companies. Management expects merger benefits will begin to be realized by the company late in the fourth quarter.
 Net sales for the 1992 quarter rose 61 percent of $6,719,000 from $4,171,000. Net income for the 1992 third quarter was $61,484, or 2 cents per share, compared with $189,913, or 10 cents per share a year earlier.
 For the nine months ended March 31, 1992, sales rose 28 percent to $16,155,000 from $12,577,000 in the 1991 nine-month period. Net income was $513,562 for the nine months ended March 31, 1992, or 25 cents per share, compares with $504,135, or 27 cents per share, in the 1991 nine- month period. In 1992, earnings were diluted by a stock dividend of 101,250 common shares declared in January 1992; the issuance of 1,098,750 common shares on March 4, 1992, in the RidgePak acquisition; and the issuance of an additional 1,314,055 common shares in the initial public offering on March 5, 1992.
 Robert G. Shaw and John W. Lloyd were elected to the company's board of directors, bringing the number of directors to nine. Both are independent directors and members of the audit committee. Shaw is chairman, president and chief executive officer of International Jensen, Inc. and Lloyd is a general business consultant.
 Headquartered in Hastings, Gibraltar Packaging Group, Inc., with manufacturing plants in Indiana, Nebraska and Ohio, designs and manufacture high-quality printed paperboard packaging for the office supplies, paper products, automotive aftermarket parts, hardware, pharmaceutical, confectionery, toy and other consumer markets.
 GIBRALTAR PACKAGING GROUP, INC. & SUBSIDIARY
 Pro Forma(A) Consolidated Statements of Income
 (Unaudited)
 Periods ended Three months Nine months
 March 31 1992 1991 1992 1991
 Net sales $9,670,404 $8,568,435 $29,884,373 $26,059,552
 Cost of goods sold 7,506,892 6,467,853 23,056,405 19,499,777
 Gross profit 2,163,512 2,100,582 6,827,968 6,559,775
 Operating expenses:
 Selling 596,882 524,198 1,731,268 1,492,287
 Administrative 506,605 429,971 1,521,064 1,425,305
 Amortization of excess
 of purchase price over
 net assets acquired 58,502 61,425 181,352 184,275
 Total operating
 expenses 1,161,989 1,015,594 3,433,684 3,101,867
 Income from
 operations 1,001,523 1,084,988 3,394,284 3,457,908
 Other (income) expense:
 Interest and deferred
 finance costs 54,058 88,272 261,889 272,090
 Interest income, primarily
 from affiliate (9,710) (31,850) (72,954) (77,752)
 Gain on sale of
 fixed assets (547) (100,769) (547) (100,769)
 Other expense, net 43,801 (44,347) 188,388 93,569
 Income before
 income taxes 957,722 1,129,335 3,205,896 3,364,339
 Provision for
 income taxes 408,400 462,000 1,332,400 1,434,700
 Net income 549,322 667,335 1,873,496 1,929,639
 Net income per share $.13 $.15 $.43 $.45
 Weighted average shares
 outstanding 4,314,055 4,314,055 4,314,055 4,314,055
 (A) -- Giving effect, on a pro forma basis, to the acquisition of RidgePak Corporation as of July 1, 1990. The actual acquisition date was March 4, 1992. The inventory write-up has been excluded from the statements of income as a non-recurring expense.
 -0- 4/28/92
 /CONTACT: J. Richard Gosnell, chief financial officer of Gibraltar Packaging Group, 402-463-1366/
 (PACK) CO: Gibraltar Packaging Group Inc. ST: Nebraska IN: PAP SU: ERN


CK-SM -- NY047 -- 3748 04/28/92 11:43 EDT
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