Sterling Chemicals Announces First Quarter Results.HOUSTON--(BUSINESS WIRE)--Jan. 20, 1997--Sterling Chemicals Holdings, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : STXX STXX Struts for Transforming Xml with Xsl ) today reported financial results for the first quarter of fiscal 1997. Revenues for the first quarter of fiscal 1997 were $187 million compared to revenues of $192 million for the first quarter of fiscal 1996, a decrease of 3 percent. The company generated a net loss of $7.2 million or $.68 per share for the first quarter of fiscal 1997 compared to net income of $12.8 million or $.23 per share for the first quarter of fiscal 1996. As a result of the recapitalization that occurred in August 1996, weighted average shares outstanding for the first quarter of fiscal 1997 were 10.6 million compared to 55.7 million for the first quarter of fiscal 1996. The financial performance of the pulp chemical business for the first quarter of fiscal 1997 was slightly better than the same period in fiscal 1996. The improvement was attributable to higher royalty revenues from the company's generator technology which resulted primarily from increased customer operating rates. In addition, sodium chlorate sodium chlorate n. A colorless crystalline compound, NaClO3, used as a bleaching and oxidizing agent and in explosives. sodium chlorate Noun results also were somewhat better for the quarter compared to the same period a year ago. The results of the petrochemical business for the first quarter of fiscal 1997 were significantly lower than the same period in fiscal 1996 primarily because of substantially lower average styrene sty·rene n. A colorless oily liquid from which polystyrenes, plastics, and synthetic rubber are produced. Also called vinylbenzene. sales prices and margins. In addition, acrylonitrile acrylonitrile /ac·ry·lo·ni·trile/ (ak?ri-lo-ni´tril) a colorless halogenated hydrocarbon used in the making of plastics and as a pesticide; its vapors are irritant to the respiratory tract and eyes, may cause systemic poisoning, and are experienced significantly lower average sales prices and margins and lower sales volumes during the first quarter of fiscal 1997 compared to the same period a year ago. Generally, the lower financial performance of styrene and acrylonitrile is attributable to continuing weak market conditions for both products, particularly in the Far East. In addition, the financial performance of the company was negatively affected by higher interest expense related to the increased debt resulting from the recapitalization that occurred in August 1996. Net interest expense was $18.6 million for the first quarter of fiscal 1997 compared to $1.6 million for the same period in fiscal 1996. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"As expected, weakness in the styrene and acrylonitrile markets affected our petrochemical business, and we believe this situation will remain with us over the coming months," said Robert W. Roten, president and chief executive officer of Sterling. "The pulp chemical business is performing well, and we have a favorable outlook for the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market. Cash flow from our pulp chemical business also will be enhanced by the addition of our Valdosta, Georgia The city of Valdosta is the county seat of Lowndes County, Georgia, United States. It is the principal city of the Valdosta, Georgia Metropolitan Statistical Area. As of the 2000 census, the city had a total population of 43,724. sodium chlorate plant which is now onstream," he added. "We are implementing the financial and operating strategies necessary to increase shareholder value, which include enhancing the stability of our cash flows," said Frank P. Diassi, chairman of Sterling. "By the end of January, we plan to complete the acquisition of Cytec Industries' acrylic fibers business, a first step for the company towards steadier cash flows going forward." Sterling Chemicals Holdings, Inc. is a holding company that, through its operating subsidiaries, is a major producer of petrochemicals and pulp chemicals. The company's petrochemical business manufactures styrene, acrylonitrile, acetic acid acetic acid (əsē`tĭk), CH3CO2H, colorless liquid that has a characteristic pungent odor, boils at 118°C;, and is miscible with water in all proportions; it is a weak organic carboxylic acid (see carboxyl group). , plasticizers plasticizers mostly triaryl phosphates, such as tricresyl, triphenyl phosphates, which are poisonous. See also triorthocresyl phosphate. , methanol, tertiary butylamine and sodium cyanide sodium cyanide n. A poisonous white crystalline compound, NaCN, used in extracting gold and silver from ores and in dye manufacture. Noun 1. at its Texas City, Texas facility. The pulp chemical business manufactures sodium chlorate at four locations in Canada and one location 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. . The pulp chemical business also manufactures sodium chlorite Sodium chlorite is a chemical compound used in the manufacture of paper. Manufacture The free acid, chlorous acid, HClO2, is only stable at low concentrations. Since it cannot be concentrated, it is not a commercial product. at one Canadian location and is the world's leading supplier of large-scale chlorine dioxide chlorine dioxide, n an oxidizing agent used in oral care to decrease amounts of volatile sulfur compounds that may cause halitosis. generators for the pulp and paper industry The global pulp and paper industry is dominated by North American (United States, Canada), northern European (Finland, Sweden) and East Asian countries (such as Japan). Australasia and Latin America also have significant pulp and paper industries. . Sterling's headquarters is located in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the . Certain statements in this news release regarding the acquisition of the Cytec acrylic fibers business, future expectations of the performance of the company's businesses and the company's results of operations may be regarded as "forward looking statements" within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act. Such statements are subject to various risks, including the company's high financial leverage, the cyclical nature of the markets for the company's products and raw materials, as well as other risks discussed in detail in the company's SEC filings, including the Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Sept. 30, 1996. Actual outcomes may vary materially. -0-
STERLING CHEMICALS HOLDINGS, INC.
CONSOLIDATED INCOME STATEMENT
(DOLLARS IN MILLIONS EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
December 31
-----------
1996 1995
---- ----
Revenues $186.9 $191.5
Cost of goods sold 171.8 162.1
------ ------
Gross profit 15.1 29.4
SG&A expense 6.4 8.0
Interest expense, net 18.6 1.6
Other income (.2) --
------ ------
Income (loss) before income taxes (9.7) 19.8
Provision (benefit) for income taxes (2.5) 7.0
------ ------
Net income (loss) $ (7.2) $ 12.8
====== ======
Net income (loss) per share $ (.68) $ .23
====== ======
Weighted average shares outstanding
(in millions) 10.6 (1) 55.7
====== ======
(1) Due to anti-dilutive effect, excludes warrants convertible
into 575,000 common shares.
STERLING CHEMICALS HOLDINGS, INC.
SELECTED DATA (1)
(DOLLARS IN MILLIONS)
(UNAUDITED)
Petrochemical Pulp Chemical
Business Business
Three Months Ended Three Months Ended
December 31, 1996 December 31, 1996
----------------- -----------------
Sales and other revenues $143.9 $ 43.0
Gross profit .4 14.7
SG&A expense 2.8 3.6
Interest expense, net 11.5 7.1
Net income (loss) (9.7) 2.5
Net cash provided by (used in)
operating activities (2.6) 15.0
Capital expenditures 7.1 11.3
Earnings before interest, taxes,
depreciation and amortization 4.5 14.9
Depreciation and amortization 7.0 3.6
At December 31, 1996:
---------------------
Current assets $165.3 $ 54.9
Property, plant and equipment (net) 221.8 152.5
Employees 855 (2) 313 (2)
-0- Consolidated stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. (deficiency in assets) was $(281.0) at Dec. 31, 1996, reflecting recapitalization accounting, and $250.1 at Dec. 31, 1995. Current portion of consolidated 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. was $15.4 at Dec. 31, 1996 and $13.4 at Dec. 31, 1995. Consolidated long-term debt (excluding current maturities) for the company was $714.7 at Dec. 31, 1996 and $100.2 at Dec. 31, 1995. (1) Amounts do not include consolidation eliminating entries. (2) Employee figures exclude contract and temporary personnel. CONTACT: Sterling Chemicals Holdings, Inc. Joe Baj, 713/654-9506 |
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