P. H. Glatfelter Company Announces 12% Increase in 3rd Quarter 2000 Earnings Compared to 3rd Quarter 1999.Business Editors
YORK York, former name of Toronto, Canada
York, Ont.: see Toronto, Ont., Canada.
York, city, England
York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. , Pa.--(BUSINESS WIRE)--Oct. 16, 2000
P. H. Glatfelter Company (NYSE NYSE
See: New York Stock Exchange :GLT GLT Gestion Logistique et Transport (French)
GLT Global Leadership Team
GLT Golden Lion Tamarin
GLT Großladungsträger (German)
GLT Guided Light Transit
GLT Grundlagentraining ) announced today that net income and earnings per share for the three months ended September September: see month. 30, 2000 were $7.2 million and $.17, respectively, as compared to $6.4 million and $.15, respectively, for the third quarter of 1999.
Net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
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 three months ended September 30, 2000 were $170.5 million, slightly higher than the net sales for the third quarter of 1999.
Net income and earnings per share for the first nine months of 2000 were $31.9 million and $.75, respectively, as compared to $27.1 million and $.64, respectively, for the first nine months of 1999. Results for the nine months ended September 30, 2000 reflect the impact of an after-tax af·ter-tax also af·ter·tax
Relating to or being that which remains after payment, especially of income taxes: after-tax profits. unusual charge of $2.1 million, or $.05 per share, recorded during the first quarter of 2000.
Earnings per share for the first nine months of 2000, excluding this one-time one-time
1. or one·time
a. Occurring or undertaken only once: a one-time winner in 1995.
b. charge, were $.80. Net sales for the nine months ended September 30, 2000 were $529.3 million, a 5% increase from $503.1 million in the first nine months of 1999.
"Our third quarter financial results are always negatively affected by the impact of scheduled annual maintenance shutdowns at our U.S. facilities," said George Glatfelter II, Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President. "This quarter's results were also hurt by the transitional costs of downsizing (1) Converting mainframe and mini-based systems to client/server LANs.
(2) To reduce equipment and associated costs by switching to a less-expensive system.
(jargon) downsizing our Pisgah Forest mill. This transition is nearing completion, and more recent results for the mill are close to our initial projections. Although we are not satisfied with the third quarter financial results, we are pleased with the current strength of our markets, the operating performance of all of our mills and the outlook for the fourth quarter.
"We are beginning to implement the IMPACT project, which will ultimately provide the organizational design and information systems support necessary to implement our business strategy. We also continue to realize cost savings through the DRIVE initiative and remain on pace to achieve our target of $50 million in sustainable, annual pre-tax cost savings. We are currently realizing savings on projects that when fully implemented by the fourth quarter of 2001 will result in $40 million of expected annual savings. The remaining $10 million should be realized, on an annualized annualized
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, by late-2002. Increased costs in certain areas of our business, primarily in energy and pulp, are currently negating a portion of our DRIVE savings."
The Company reported that cash generation remains strong. The Company's net debt/capital ratio dropped to 36.5% as of September 30, 2000 from 41.5% at the end of 1999. The Company's net debt/capital ratio was 48.3% at the end of the first quarter of 1998 following the acquisition of Schoeller and Hoesch.
Mr. Glatfelter added, "Our outlook for cash generation remains positive. We are fully committed (Law) committed to prison for trial, in distinction from being detained for examination.
See also: Fully to the IMPACT project and are excited about the business transformation that the project will generate. Despite a commitment to invest $49 million over the next two years in this initiative, our financial projections support the opportunity to re-institute disciplined share repurchases Share Repurchase
A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. in the future."
Any statements set forth in this press release with regard to the Company's expectations as to industry conditions, demand for its products, its cost reductions, its projected financial results or cash flow, share repurchases and other aspects of its business 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995.
Although the Company makes such statements based on assumptions that it believes to be reasonable, there can be no assurance that actual results will not differ materially from the Company's expectations. Factors that could cause or contribute to actual results differing materially from such forward-looking statements are discussed in the Company's Securities and Exchange Commission filings.
P. H. Glatfelter Company will hold a conference call today at 11 AM E.S.T. to discuss third quarter results. The conference call may be accessed via the internet at the Company's website at http://www.glatfelter.com or at the Streetfusion website at http://www.streetfusion.com.
P. H. GLATFELTER COMPANY YORK, PENNSYLVANIA SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION (in thousands except per share amounts) Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 2000 1999 2000 1999 ---- ---- ---- ---- Net sales $170,547 $170,030 $529,304 $503,110 Income before income taxes 11,180 9,949 49,689(a) 42,720 Income taxes - current and deferred 4,001 3,549 17,828 15,637 Net income 7,179 6,400 31,861(b) 27,083 Basic and diluted earnings per share $ 0.17 $ 0.15 $ 0.75(b) $ 0.64 Number of shares used in per share calculations: Basic 42,361 42,195 42,316 42,155 Diluted 42,499 42,554 42,458 42,402 (a) After impact of a one-time, pre-tax charge of $3,336,000 primarily related to the previously announced decision to reconfigure the Company's tobacco papers business by reducing production capacity and associated salary and labor costs. (b) After impact of a one-time, after-tax charge of $2,120,000, or $.05, related to the costs described in (a) above.