Printer Friendly

SPECIALTY PAPERBOARD REPORTS EARNINGS

 BRATTLEBORO, Vt., July 22 /PRNewswire/ -- Specialty Paperboard Inc. (NASDAQ: SPBI), a producer of special paper grades used in the manufacture of office products, book covers and gaskets, today reported earnings of 76 cents per share -- 7 cents of which is from operating income -- for the quarter ended June 30, 1993.
 During the quarter, sales were $19.3 million, down 15 percent from $22.6 million a year ago, reflecting soft market conditions.
 "Lower sales stemmed from customers cutting back in order activity because of the sluggish economy and internal inventory reduction programs," said Alex Kwader, president and chief executive officer.
 Kwader explained that volume in the office products market, which accounts for 64 percent of the company's annual sales was down 20 percent. The book cover market also experienced a decline of 11 percent from the same period last year, while the market for gasket materials remained stable.
 The lower sales, combined with higher expenses related to increased marketing efforts and insurance costs resulted in operating income of $1.1 million, 62 percent lower than $2.9 million reported in the same period a year ago.
 Pre-tax income of $4.9 million included $4.3 million in other income, the majority of which was related to an initial receipt of cash for a cogeneration agreement. The comparable pre-tax income in the 1992 period was $0.8 million.
 The cogeneration agreement calls for the company to receive a total of $11.5 million of cash plus significant discounts on its purchase of steam for a period of 15 years. The remaining $7 million will be in three payments over a two-year period, beginning with the plant's initial startup which is expected in mid-1995.
 Net income reached $3.1 million or 76 cents per share based on 4 million shares outstanding. This was composed of 7 cents from regular operations and 69 cents attributable to the cogeneration payment. 1992 net income of $0.8 million, calculated on the current level of shares outstanding, would have been 21 cents per share.
 For the year-to-date, sales were $40.3 million, compared to 42.8 million for the same period in 1992 -- a 5-percent decline, while net income rose to $1.6 million from $0.6 million. On a pro-forma basis -- which excludes the non-recurring effects of higher levels of debt and interest expenses prior to the public offering, expenses related to the retirement of debt, and the impact of the cogeneration payment -- net income for the current year-to-date would have been $1.7 million, or 42 cents per share based on the current number of shares outstanding. In the same 1992 period, net income was $0.6 million or 15 cents per share, based on the current 4 million shares outstanding.
 Looking ahead, Kwader said that external economic conditions continue to impact the company's sales. He emphasized that the sales downturn does not appear to be due to market share loss, but rather to a sluggish economy.
 Specialty Paperboard, which had 1992 revenues of $84.2 million, manufactures office products materials which are converted by its customers into products such as data binders, report covers, ring binders and file and index guides. The company also produces latex reinforced book cover and gasket materials.
 SPECIALTY PAPERBOARD INC.
 STATEMENT OF INCOME
 (in thousands except per share data)
 Three months ended June 30,
 1993 1993 1992 1992
 Actual Pro-Forma Actual Pro-Forma
 Net sales $19,263 $19,263 $22,580 $22,580
 Cost of sales 15,998 15,998 18,110 18,110
 Gross profit 3,265 3,265 4,470 4,470
 General and
 administrative
 expenses 2,179 2,179 1,600 1,600
 Income from operations 1,086 1,086 2,870 2,870
 Other (income)
 expenses, net (4,318) 86(a) 111 111
 Interest expense 531 531 1,927 1,927
 Income before income
 taxes and
 extraordinary item 4,873 469 832 832
 Provision for income
 taxes 1,823 175(b) - -
 Income before
 extraordinary item 3,050 294 832 832
 Net income $ 3,050 $ 294 $ 832 $ 832
 Preferred stock
 dividends - - 429 -(c)
 Net income applicable
 to common shares 3,050 294 403 832
 Income per common
 share 0.76 0.07 1.19 0.21
 Average number of shares
 outstanding 4,019 4,019 339 4,019(d)
 a) Adjusted to exclude $4404M in non-recurring income related to
 the cogeneration payment.
 b) Adjusted to current tax rate of 37.26 percent.
 c) Adjusted to exclude preferred dividend expense which is no
 longer applicable after the public offering.
 d) Adjusted to reflect the current level of outstanding shares.
 STATEMENT OF INCOME
 (in thousands except per share data)
 Six months ended June 30,
 1993 1993 1992 1992
 Actual Pro-Forma Actual Pro-Forma
 Net sales $40,330 $40,330 $42,767 $42,767
 Cost of sales 32,693 32,693 35,032 35,032
 Gross profit 7,637 7,637 7,735 7,735
 General and
 administrative
 expenses 3,686 3,686 3,007 3,007
 Income from operations 3,951 3,951 4,728 4,728
 Other (income)
 expenses, net (4,185) 171 (a) 243 243
 Interest expense 2,307 1,094 (b) 3,883 3,883
 Income before income
 taxes and
 extraordinary item 5,829 2,686 602 602
 Provision for income
 taxes 2,173 1,001 (c) - -
 Income before
 extraordinary item 3,656 1,685 602 602
 Extraordinary item-
 early extinguishment
 of debt (net of
 income tax benefit
 of $1,415) (2,103) - (d) - -
 Net income 1,553 1,685 602 602
 Preferred stock
 dividends 359 - (e) 853 -
 Net income (loss)
 applicable to common
 shares 1,194 1,885 (251) 602
 Income (loss) per
 common share:
 Income (loss) before
 extraordinary item 1.26 0.42 (0.74) 0.15
 Early extinguishment
 of debt (0.80) - - -
 Net income (loss) 0.46 0.42 (0.74) 0.15
 Average number of shares
 outstanding 2,616 4,019 (f) 339 4,019 (f)
 a) Adjusted to exclude $48M expense related to higher levels of
 debt amortization prior to the public offering and $4404M non-
 recurring income related to the cogeneration project.
 b) Adjusted to exclude $1213M in interest expense related to higher
 levels of debt and interest rates which existed prior to the
 public offering.
 c) Adjusted to current tax rate of 37.26 percent.
 d) Adjusted to exclude extraordinary expenses of $2103M related to
 extinguishment of debt with proceeds from the public offering.
 e) Adjusted to exclude preferred dividend expense which is no
 longer applicable after the public offering.
 f) Adjusted to reflect current levels of outstanding shares.
 -0- 7/22/93
 /CONTACT: Bruce Moore, vice president and chief financial officer, of Specialty Paperboard, 802-257-5902, or Dolores Chenoweth, investor relations counsel, of in.ves'com, 503-221-2087 for Specialty Paperboard/
 (SPBI)


CO: Specialty Paperboard ST: Vermont IN: PAP SU: ERN

LM-JH -- SE004 -- 4290 07/22/93 07:51 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1993
Words:1139
Previous Article:ADVANCED MARKETING SERVICES REPORTS EARNINGS, AGREEMENT FOR DISTRIBUTION IN MEXICO WITH K-MART
Next Article:ESCAGENETICS' PHYTOPHARMACEUTICALS INC. NAMES SCIENTIFIC ADVISORY BOARD; DR. MEINHART ZENK NAMED CHAIRMAN
Topics:


Related Articles
TEMPLE-INLAND SECOND QUARTER 1992 EARNINGS UP
TEMPLE-INLAND SECOND QUARTER 1992 EARNINGS UP
TEMPLE-INLAND INC. THIRD QUARTER EARNINGS UP 22 PERCENT FROM COMPARABLE 1991 QUARTER
SPECIALTY PAPERBOARD INC. DISCUSSES SECOND-QUARTER OUTLOOK; ANNOUNCES AGREEMENT FOR COGENERATION FACILITY
SPECIALTY PAPERBOARD REPORTS EARNINGS
REPUBLIC GYPSUM CO. ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED SEPT. 30, 1994 - SALES UP 44 PERCENT AND EARNINGS 75 PERCENT OVER PRIOR YEAR
MEAD REPORTS STRONG THIRD QUARTER EARNINGS
REPUBLIC GROUP INCORPORATED: SECOND QUARTER RECORD EARNINGS - UP 45%; NET SALES - UP 33%
TEMPLE-INLAND INC. REPORTS LOWER EARNINGS FOR FIRST QUARTER
Mead Reports Third Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters