Printer Friendly

GAYLORD REPORTS FISCAL 1993 RESULTS

 DEERFIELD, Ill., Nov. 4 /PRNewswire/ -- Gaylord Container Corporation (AMEX: GCR) announced today that it had net income of $130.2 million, or $2.61 per share, for the fiscal year ended Sept. 30, 1993, which included an after-tax extraordinary gain of $201.5 million, or $4.04 per share, on the restructuring of subordinated debt. This compares with a net loss of $132.5 million, or $8.54 per share, for fiscal 1992. Net sales for fiscal 1993 totaled $734 million, up from $723 million a year ago. The company had an operating loss of $2.3 million for the current fiscal year vs. an operating loss of $21.5 million in fiscal 1992. The company said that per share amounts were calculated based on 49.8 million shares and 15.5 million shares outstanding for fiscal 1993 and fiscal 1992, respectively. The increase in fiscal 1993 was due to the additional shares issued in the company's restructuring completed in November 1992.
 Commenting on the year, Chairman and Chief Executive Officer Marvin A. Pomerantz said, "From an operational standpoint, our mill production and converted product shipments for fiscal 1993 were on target and well ahead of last year's levels. The approximately $24 million benefit to operating earnings from the volume gains, however, was more than offset by continued pressure on product pricing, which reduced operating earnings by approximately $45 million vs. the prior fiscal year. Among the year's most significant accomplishments were the successful completion of a comprehensive financial restructuring and a subsequent refinancing that resulted in a significant reduction of the company's debt and debt service requirements. Those transactions, along with funds available under our revolving credit facility and a new trade receivables-backed revolving credit facility, have given the company additional financial and operational flexibility, enhancing our ability to manage the company for the long term."
 Factors Affecting Earnings
 The company noted that an asset write-down and acquisition costs in fiscal 1992 and restructuring expenses in both years, as described below, distort the year-over-year comparisons. Fiscal 1992 results include a pre-tax charge of $32.9 million recorded in the fourth quarter for the write-down of certain assets at the company's California East mill, which was permanently idled, and $9.0 million for the acquisition of certain joint venture interests. In fiscal 1993, the company recorded a pre-tax charge in the fourth quarter of $2.1 million for costs associated with the consolidation of certain grocery bag and sack manufacturing operations. The company incurred expenses related to its comprehensive financial restructuring of $7.8 million and $17.0 million in fiscal 1993 and fiscal 1992, respectively.
 Net interest expense declined to $68.2 million in fiscal 1993 from $110.8 million primarily due to lower outstanding debt levels and lower interest rates compared with the prior year. At Sept. 30, 1993, the company's total debt was $675.8 million vs. $827.4 million on the same date in 1992.
 Operating Results
 During fiscal 1993, mill production increased to 1,152 thousand tons of containerboard and 241 thousand tons of unbleached kraft paper, compared with 1,087 thousand tons of containerboard and 227 thousand tons of unbleached kraft paper in fiscal 1992. Corrugated shipments increased to approximately 11.9 billion square feet, up from approximately 10.3 billion square feet, primarily due to the acquisition of two sheet feeder plants. Multiwall bag and grocery bag and sack shipments declined slightly to approximately 177 thousand tons, compared with 179 thousand tons a year ago.
 Fourth Quarter Results
 The company had a net loss of $20.5 million, or $0.38 per share, for the fourth quarter of fiscal 1993, compared with a net loss of $54.1 million, or $3.48 per share, for the fourth quarter of fiscal 1992. Per share amounts were calculated based on 53.4 million shares and 15.5 million shares outstanding for the fourth quarter of fiscal 1993 and fiscal 1992, respectively.
 Net sales were unchanged at $187 million. The company had an operating loss of $1.7 million for the current quarter, compared with an operating loss of $28.2 million in the year-ago fourth quarter. As noted earlier, the fourth quarter of fiscal 1993 includes a pre-tax charge of $2.1 million for costs associated with the consolidation of certain grocery bag and sack manufacturing operations. Operating earnings in the fourth quarter of fiscal 1992 were reduced by the previously mentioned $32.9 million asset write-down and $9.0 million of acquisition costs as well as $8.0 million of restructuring expenses.
 Outlook
 "Financing transactions in fiscal 1993 significantly enhanced our financial and operational flexibility. Between cash on hand and available bank credit facilities, the company currently has in excess of $125 million of liquidity. Looking ahead, we will continue to focus on controlling costs and capital expenditures; however, our return to profitability is dependent on realizing significantly improved product pricing. While there can be no assurance around the timing and magnitude of future price increases, our recently implemented $25 per ton increase in linerboard prices is a step in the right direction," Pomerantz said.
 Gaylord Container Corporation is a major national manufacturer and distributor of corrugated containers, containerboard, unbleached kraft paper, multiwall bags and grocery bags and sacks.
 GAYLORD CONTAINER CORPORATION
 Selected Financial and Operational Data
 (In millions of dollars, except per share amounts)
 Quarter Ended Sept. 30, Year Ended Sept. 30,
 Percent Percent
 1993 1992 Inc./(Dec) 1993 1992 Inc./(Dec)
 Financial Summary
 Net sales $187.2 $186.9 0.2 $733.5 $722.8 1.5
 Debt restructuring
 expenses (0.8) 8.0 N/M 7.8 17.0 (54.1)
 Operating loss (A) (1.7) (28.2) N/M (2.3) (21.5) N/M
 Interest expense-net 18.9 25.9 (27.0) 68.2 110.8 (38.4)
 Loss before extraordinary
 item and accounting
 change (20.5) (54.1) N/M (70.0) (132.5) N/M
 Extraordinary gain - - - 201.5 - N/M
 Accounting change (B) - - - (1.3) - N/M
 Net income (loss) (20.5) (54.1) N/M 130.2 (132.5) N/M
 Earnings per common and
 common equivalent share:
 Loss before extraordinary
 item and accounting
 change (0.38) (3.48) N/M (1.40) (8.54) N/M
 Extraordinary gain - - - 4.04 - N/M
 Accounting change (B) - - - (0.03) - N/M
 Net income (loss) (0.38) (3.48) N/M 2.61 (8.54) N/M
 Weighted average common
 and common equivalent
 shares outstanding (C) 53.4 15.5 244.5 49.8 15.5 221.3
 Operating Summary
 Mill production (thousands of tons)
 Containerboard 296.5 278.0 6.7 1,151.9 1,087.3 5.9
 Unbleached kraft paper 60.3 60.1 0.3 241.1 227.4 6.0
 Corrugated shipments(billions
 of square feet) 3.2 2.7 18.5 11.9 10.3 15.5
 Bag shipments (thousands
 of tons) 47.0 46.5 1.1 177.3 178.9 (0.9)
 (A) The periods ended September 30, 1993 and 1992 include pre-tax charges for the consolidation of certain facilities of $2.1 million and an asset write-down of $32.9 million, respectively. The year ended September 30, 1992 includes a $9 million pre-tax charge for costs associated with the acquisition of certain joint venture interests.
 (B) In the first quarter of fiscal 1993, the Company adopted financial Accounting Standard No. 106, "Accounting for Post-Retirement Benefits Other Than Pensions."
 (C) The increase in weighted average share amounts for the fiscal 1993 periods reflect the approximately 37.8 million shares of Class A Common Stock issued on November 2, 1992 pursuant to a restructuring. Of such shares, approximately 31.8 million are held by a trustee for issuance upon exercise of a like number of warrants.
 N/M - not meaningful
 -0- 11/4/93
 /CONTACT: Kathryn Chieger of Gaylord Container, 708-405-5645/
 (GCR)


CO: Gaylord Container Corporation ST: Illinois IN: PAP SU: ERN

SH-TW -- NY049 -- 0793 11/04/93 14:04 EST
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:Nov 4, 1993
Words:1331
Previous Article:FIBRONICS ANNOUNCES THIRD QUARTER OPERATING RESULTS
Next Article:MADERAS Y SINTETICOS S.A REPORTS RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1993
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters