Polyair Inter Pack Triples Third Quarter Earnings.Business Editors TORONTO--(BUSINESS WIRE)--Sept. 4, 2002 Polyair Inter To cross over boundaries; for example, internetwork means from one network to another. Contrast with intra. Pack Inc, (AMEX AMEX See: American Stock Exchange :PPK Noun 1. PPK - a Marxist-Leninist terrorist group of Kurds trying to establish an independent Kurdish state in eastern Turkey Kurdistan Labor Pary, Kurdistan Workers Party, Partiya Karkeran Kurdistan )(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :PPK.TO) reported net income rising to $1.4 million for the fiscal period ended July July: see month. 27, 2002, a three-fold increase from $491,000 net income reported in the same period a year ago. Fiscal third quarter 2002 highlights (US$):
-- Sales increased 6.7% to $31.9 million, up from $29.9 million in the same period in 2001.
-- EBITDA increased 44.8% to $4.2 million, up from $2.9 million in the third quarter a year ago.
-- Total debt decreased by $12.5 million to $21.6 million, down from $34.1 million in the comparable quarter last year
-- Interest expense decreased 46.2% compared to the prior year due to lower borrowings and lower interest rates.
3 Months Ended 9 Months Ended
July 27 July 28 % July 27 July 28 %
2002 2001 Change 2002 2001 Change
Sales
Packaging
Products 20,705 19,613 5.6% 61,164 58,918 3.9%
Pool Products 11,166 10,305 8.7% 24,105 21,683 11.1%
Total Sales 31,871 29,918 6.7% 85,269 80,601 5.8%
Earnings Before
interest, 4,105 2,910 44.8% 9,773 6,053 62.3%
Taxes,
depreciation
(EBITDA)
Net Income 1,400 491 185.1% 2,599 24 ---
Earnings Per
Share - Diluted $0.22 $0.08 175.0% $0.41 $ NIL ---
All amounts are expressed in thousands of U.S. dollars except per
share amounts.
Management's perspective on the quarter "Polyair continued to deliver solid results in the quarter. We are pleased to report higher sales, improved gross profit, increased operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and growth in net earnings for the Company." Henry Schnurbach, Polyair Inter Pack President and Chief Executive Officer, said. "Our sales performance this quarter continues a trend of higher volumes in several of the products, partially offset by lower average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. for certain products. The increase in 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 is a result of lower material costs, continued focus on cost control measures and a change in the product mix." New credit facility for Polyair Inter Pack Additionally, during the quarter, Polyair negotiated a $56 million multi-year credit facility, which resulted in the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. of the current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. . "The credit facility we arranged this quarter is an important step," Mr. Schnurbach said. "It further enhances management's ability to realize strategic corporate objectives and continue to grow the intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. of the company, which includes strategic acquisitions, plant and equipment expansions and the development and introduction of new innovative products." Polyair Inter Pack Inc. (www.polyair.com and www.cantar Can´tar n. 1. 1. A weight used in southern Europe and East for heavy articles. It varies in different localities; thus, at Rome it is nearly 75 pounds, in Sardinia nearly 94 pounds, in Cairo it is 95 pounds, in Syria about 503 .com), through its Polyair Group manufactures protective packaging; through its Cantar Group the company manufactures swimming pool products, which are sold through a network of some 2,500 distributors across 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. . Polyair operates ten manufacturing facilities, seven of which are based in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. where the Company generates approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 85% of its annual sales. The shares are listed on both the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the symbol "PPK". Certain information included in this document contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated future revenues of the company and the success of certain product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any 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. made by or on behalf of Polyair Inter Pack Inc.
POLYAIR INTER PACK INC. - THIRD QUARTER RESULTS, 2002
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CONSOLIDATED BALANCE SHEETS
(in thousands of United AS AT
States dollars) JULY 27 OCTOBER 31 JULY 28
(UNAUDITED) 2002 2001 2001
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ASSETS
Current Assets:
Cash and short-term
investments $ 917 $ 897 $ 461
Accounts receivable,
net of allowance 15,618 16,162 16,146
for doubtful
accounts
Income taxes
receivable 1,558 809 2,316
Inventory 12,608 13,738 15,486
Future income tax
assets 371 359 474
Prepaid expenses and
other 1,010 768 939
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32,082 32,733 35,822
Capital assets, net 32,988 33,947 34,762
Future income tax
assets 511 511 590
Other assets, net 1,530 1,422 1,513
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67,111 68,613 72,687
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LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness 812 9,710 12,518
Accounts payable 11,895 10,409 12,625
Accrued liabilities 6,001 4,537 3,629
Income taxes payable 2,399 359 1,391
Current portion of
long term debt 2,773 11,589 3,308
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23,880 36,604 33,471
Long-term debt 17,983 9,361 18,247
Future income tax
liabilities 2,816 2,823 2,335
Shareholders'
equity:
Capital stock 10,021 9,933 9,933
Retained earnings 12,764 10,191 8,550
Cumulative
translation
adjustment (353) (299) 151
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22,432 19,825 18,634
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$ 67,111 $ 68,613 $ 72,687
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POLYAIR INTER PACK INC. - THIRD QUARTER RESULTS, 2002
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CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(3 months and 9 months ended July 27, 2002 and July 28, 2001)
(in thousands of United States dollars)
3 MONTHS ENDED JULY 9 MONTHS ENDED JULY
(UNAUDITED) 2002 2001 2002 2001
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Sales $ 31,871 $ 29,918 $ 85,269 $ 80,601
Cost of sales 24,397 24,045 65,650 65,044
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Gross profit 7,474 5,873 19,619 15,557
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Expenses:
Selling 2,666 2,380 7,690 7,477
General and
administrative 2,028 1,958 6,118 5,981
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4,694 4,338 13,808 13,458
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Operating profit 2,780 1,535 5,811 2,099
Interest expense, net 360 669 1,311 2,055
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Income (loss) before
income taxes and minority
interest 2,420 866 4,500 44
Minority interest (5) (11) (2) 23
Income taxes: 1,015 364 1,899 43
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Net income (loss) for the
period 1,400 491 2,599 24
Retained earnings,
beginning of period 11,364 8,059 10,191 8,780
Purchase of treasury
stock 0 0 (26) (254)
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Retained earnings, end of
period $ 12,764 $ 8,550 $ 12,764 $ 8,550
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Earnings per share:
Basic $ 0.23 $ 0.08 $ 0.42 $ 0.00
Diluted 0.22 0.08 0.41 0.00
Weighted average number of shares outstanding:
Basic 6,210,146 6,297,215 6,206,311 6,328,000
Diluted 6,339,403 6,297,215 6,295,039 6,328,000
POLYAIR INTER PACK INC. - THIRD QUARTER RESULTS, 2002
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(3 months and 9 months ended July 27, 2002 and July 28, 2001)
(in thousands of United States dollars)
3 MONTHS ENDED JULY 9 MONTHS ENDED JULY
(UNAUDITED) 2002 2001 2002 2001
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Cash provided by (used in):
Operating activities:
Net income (loss) for the
period $ 1,400 $ 491 $ 2,599 $ 24
Non-cash items:
Depreciation and
amortization 1,325 1,375 3,962 3,954
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Change in non-cash
components of working
capital 2,725 1,866 6,561 3,978
Accounts receivable 4,778 1,840 526 675
Inventory (402) (754) 1,082 (2,325)
Prepaid expenses and
other (142) 671 (244) (324)
Accounts payable and
accrued liabilities 2,837 1,075 3,173 438
Income taxes 856 625 1,279 (661)
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10,652 5,323 12,377 1,781
Financing activities:
Increase in long term
debt 2,655 0 2,655 0
Decrease in long term
debt (656) (652) (2,832) (2,168)
Increase (decrease) in
bank indebtedness (10,432) (2,942) (8,902) 5,387
Purchase of treasury
stock 0 0 (63) (697)
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(8,433) (3,594) (9,142) 2,522
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Investing activities:
Purchase and deposits on
building and equipment (1,263) (1,421) (2,911) (4,805)
Other (300) (16) (272) (418)
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(1,563) (1,437) (3,183) (5,223)
Effect of foreign
currency translation on
cash balances (47) (109) (32) 279
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Increase (decrease) in
cash position 609 183 20 (641)
Cash position, beginning
of period 308 278 897 1,102
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Cash position, end of
period $ 917 $ 461 $ 917 $ 461
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Supplementary
information:
Cash paid during the period for:
Interest $ 284 $ 584 $ 1,038 $ 1,873
Income taxes, net
of refunds 141 (172) 594 704
POLYAIR INTER PACK INC. - THIRD QUARTER RESULTS, 2002
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(3 months and 9 months ended July 27, 2002 and July 28, 2001)
(in thousands of United States dollars)
(UNAUDITED)
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1. Significant Accounting Policies These consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Company's consolidated financial statements for the year ended October October: see month. 31, 2001. These financial statements have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with 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. 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 using the same accounting policies as were applied in the consolidated financial statements for the year ended October 31, 2001. 2. Bank Indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. & Longterm Debt During the quarter the Company negotiated a new $56 million multi-year credit facility, of which $25 million is for working capital, with availability determined monthly based on eligible accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and inventory. As of July 27,2002 there is an unused available working capital line of credit of approximately $7.7 million. The remaining $31 million is for capital expenditures, acquisitions and new business opportunities. Accordingly, term loans under this agreement have been classified as long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. with an appropriate current portion disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). .
POLYAIR INTER PACK INC. - THIRD QUARTER RESULTS, 2002
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(3 months and 9 months ended July 27, 2002 and July 28, 2001)
(in thousands of United States dollars)
(UNAUDITED)
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3. Segmented Information:
The Company manufactures and markets packaging and pool products.
The Company operates in the United States and Canada.
By geographic region:
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3 MONTHS ENDED JULY 9 MONTHS ENDED JULY
2002 2001 2002 2001
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Sales:
United States $ 27,552 $ 25,679 $ 73,887 $ 70,033
Canada 4,319 4,239 11,382 10,568
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$ 31,871 $ 29,918 $ 85,269 $ 80,601
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AS AT JULY 27
2002 2001
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Capital assets and
goodwill:
United States $ 24,657 $ 26,135
Canada 7,406 7,210
Corporate 1,728 2,311
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$ 33,791 $ 35,656
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By operating segment:
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3 MONTHS ENDED JULY 9 MONTHS ENDED JULY
2002 2001 2002 2001
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Sales:
Packaging products $ 20,705 $ 19,613 $ 61,164 $ 58,918
Pool Products 11,166 10,305 24,105 21,683
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$ 31,871 $ 29,918 $ 85,269 $ 80,601
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Depreciation and
amortization:
Packaging products $ 925 $ 1,006 $ 2,711 $ 2,894
Pool products 183 178 572 512
Corporate 217 191 679 548
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$ 1,325 $ 1,375 $ 3,962 $ 3,954
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Operating profit (loss):
Packaging products $ 2,259 $ 657 $ 7,385 $ 3,916
Pool products 1,452 1,067 1,885 1,204
Corporate (931) (189) (3,459) (3,021)
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$ 2,780 $ 1,535 $ 5,811 $ 2,099
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Capital expenditures:
Packaging products $ 1,139 $ 1,079 $ 2,314 $ 3,649
Pool products 61 229 328 775
Corporate 63 113 269 381
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$ 1,263 $ 1,421 $ 2,911 $ 4,805
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AS AT JULY
2002 2001
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Total assets:
Packaging products $ 43,338 $ 44,881
Pool products 17,763 21,501
Corporate 6,010 6,305
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$ 67,111 $ 72,687
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