SEALRIGHT REPORTS RECORD FIRST QUARTER
SEALRIGHT REPORTS RECORD FIRST QUARTER OVERLAND PARK, Kan., April 15 /PRNewswire/ -- Sealright Co., Inc.
(NASDAQ: SACO), a manufacturer of packaging and packaging systems for the grocery and dairy industries, today reported a 9-percent increase in net sales and a 34-percent increase in earnings for the first quarter of 1992.
Sales reached a record $65.9 million in the first quarter, compared with $60.3 million in the 1991 quarter. Five additional business days in the 1992 quarter accounted for part of the sales increase, along with continued growth in sales of frozen dessert packaging and flexible film packaging. Net income increased to a record $2.9 million (26 cents a share) from $2.1 million (19 cents a share) in the 1991 quarter. Chairman and Chief Executive Officer Marvin W. Ozley said the earnings increase can be attributed primarily to greater productivity resulting from plant reorganization, new equipment, and other capital investments in manufacturing. In addition, the company's interest expense continued to decline following the acquisition more than a year ago of Jaite Packaging, an Ohio-based supplier of flexible packaging to the food, beverage, and pharmaceutical industries. "We're pleased with our growth in the first quarter after a difficult first quarter a year ago," Ozley said. "Earnings are again up to the level we expect for our company, and we are confident they can be maintained in spite of ongoing economic and competitive challenges." Ozley said productivity showed particular improvement in the first quarter at the company's Western Division rigid-plastics plant, which underwent a major reorganization in the second half of 1991, and at the Central Division paperboard packaging plant. Sales growth was again strong in the Eastern Division as processors continued to adopt Sealright's Convocan packaging system and other round frozen dessert packages. The sales of flexible-packaging subsidiary Jaite were boosted by orders for pharmaceutical packaging and soft-drink promotion labeling. Sealright is North America's leading supplier of packaging and packaging systems for ice cream and other frozen dairy desserts. The company and its subsidiaries also produce paperboard packaging and plastic packaging and labeling. SEALRIGHT CO., INC. 1ST QUARTER COMPARISONS, 1992-1991 For the period ended March 31, 1992 (in thousands, except per-share data) 1992 1991 Net Sales $65,862 $60,333 Cost of Sales 50,679 47,424 Gross Profit 15,183 12,909 Selling, General & Admin. Expense 9,015 7,618 Operating Income 6,168 5,291 Interest Expense 783 1,068 Other Expense 464 411 Income Before Income Taxes 4,921 3,812 Provisions for Income Taxes 2,074 1,686 Net Income $ 2,847 $ 2,126 NET INCOME PER SHARE $0.26 $0.19 NUMBER OF SHARES OUTSTANDING 11,058 11,048 SEALRIGHT CO., INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) (in thousands) Comparisons as of March 31, 1992, and March 31, 1991 Assets 1992 1991 Total Current Assets $ 58,991 $ 57,095 Property, Plant & Equipment (Net) 89,802 83,014 Other Assets 16,379 19,546 Total Assets $165,172 $159,655 Liabilities & Stockholders' Equity Total Current Liabilities $ 26,290 $ 28,167 Long Term Debt 38,253 42,855 Other Liabilities 9,671 10,171 Total Stockholders' Equity 90,958 78,462 Total Liabilities & Stockholders' Equity $165,172 $159,655 -0- 4/15/92 /CONTACT: David Burket or Larry Pfautsch of Fleishman-Hillard, 816-474-9407/ (SRCO) CO: Sealright Co., Inc. ST: Kansas IN: PAP SU: ERN
KD -- NY124 -- 8983 04/15/92 17:50 EDT
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|Date:||Apr 15, 1992|
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