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ABTco ANNOUNCES THIRD-QUARTER RESULTS

 NEENAH, Wis., Oct. 19 /PRNewswire/ -- ABT Building Products Corporation (NASDAQ-NMS: ABTC) reported that operating income more than tripled for both the third quarter and nine months ended Sept. 30, 1993. Operating income for the third quarter was $10.2 million compared to $3.1 million last year, and for nine months in 1993 was $26.4 million compared to $8.5 million for nine months in 1992.
 Net sales of $42.5 million for this year's third quarter and $123.3 million year to date were 10 percent and 6 percent higher than last year's similar periods. The company's operating margins improved from 8 percent to 23 percent of net sales for the third quarter and from 7 percent to 18 percent for the nine months ended Sept. 30, 1993, over 1992. The company purchased certain assets of the Building Products Division of Abitibi-Price Corporation on Oct. 20, 1992, and, therefore, comparable net income and per-share information is not available for 1992.
 Net income before extraordinary items was $5.8 million or $0.44 per share for the third quarter and $13.8 million or $1.23 per share for the nine months ended Sept. 30, 1993. The weighted average common shares outstanding for the quarter and nine months ended Sept. 30, 1993, were 13.2 million and 11.2 million, respectively. George T. Brophy, chairman, president and CEO, stated that the "improved operating results reflect the programs that were outlined in the recent prospectus for the company's initial public offering on July 7, 1993." Since Oct. 20, 1992, the company has instituted cost-improvement programs at its plants, reduced sales and administrative costs, and increased prices. In addition, new products were introduced in its Hardboard and Plastics lines. Brophy pointed out that the third-quarter selling, general and administrative expenses were $1 million below 1992's level while gross profits increased from 23 percent to 35 percent, clearly reflecting the profit-improvement programs.
 As previously reported, the company received proceeds from an initial public offering during the third quarter. The proceeds were used to reduce existing indebtedness incurred to finance the acquisition. As a result, the company wrote off $1.1 million (net after taxes) of deferred financing costs related to the retirement of the debt. Net income after this extraordinary item for the third quarter was $4.7 million or $0.36 per share and $12.7 million or $1.14 per share for the nine months ended Sept. 30, 1993.
 The company's financial condition continued to improve as all of its bank debt was paid off with the proceeds from the initial public offering and the company reported free cash flow of $21 million or $1.87 per share for the nine months ended Sept. 30, 1993. Stockholders' equity reached $73.5 million at the end of September and long-term debt was reduced to $17.5 million -- principally the subordinated note to Abitibi-Price, Inc., as a result of the acquisition.
 The company produces specialty building products manufactured from engineered wood and plastics. Premium products include paneling, mouldings, architectural trim, exterior shutters and siding. The major markets served are home improvement, remodeling and new construction.
 ABT BUILDING PRODCTS CORPORATION
 QUARTER ENDED SEPT. 30, 1993 1992
 Net sales $42,540 $38,656
 Operating income 10,182 3,118
 Net income before extraordinary item 5,771 (A)
 Net income after extraordinary item 4,701 ---
 Net income per share:
 Before extraordinary item .44 ---
 After extraordinary .36 ---
 Weighted average shares o/s 13,163 ---
 NINE MONTHS ENDED SEPT. 30,
 Net sales $123,296 $116,665
 Operating income 26,397 8,545
 Net income before extraordinary item 13,788 (A)
 Net income after extraordinary item 12,718 ---
 Net income per share:
 Before extraordinary item 1.23 ---
 After extraordinary 1.14 ---
 Weighted average shares o/s 11,173 ---
 (A) -- On Oct. 20, 1992, the company acquired certain assets of the Building Products Division of Abitibi-Price Corporation. Abitibi did not allocate income tax or interest expenses to the division. Accordingly, operating results reflect only earnings before interest and income taxes.
 -0- 10/19/93
 /CONTACT: Michael A. Lupo, executive vice president and chief financial officer of ABT Building Products Corporation, 414-751-4982/
 (ABTC)


CO: ABT Building Products Corporation ST: Wisconsin IN: CST SU: ERN

ML-KR -- DE005 -- 3787 10/19/93 09:14 EDT
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Publication:PR Newswire
Date:Oct 19, 1993
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