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Synthetic Industries, Inc. posts 34.1% jump in operating income on sales of $299.5 million in fiscal 1996.

CHICKAMAUGA, Ga.--(BUSINESS WIRE)--November 25, 1996-- Synthetic Industries, Inc. (Nasdaq:SIND) today reported strong financial results for the fourth quarter and fiscal year ended September 30, 1996.

Net sales in the 1996 fourth quarter increased 13.5% to $87.5 million from $77.1 million. Operating income for the recent period increased 181% to $14.9 million from $5.3 million. Net income for the 1996 fourth quarter was $5.3 million or $0.90 per share, compared to a year-earlier net loss of $619,000 or $0.10 per share. Excluding a one-time pre-tax charge of $2.9 million against fourth quarter 1995 earnings, the increase in net income for the period was 388%.

The Company attributed the increases in sales and earnings largely to unit volume growth in each of its sales divisions and higher gross margins.

For the year ended September 30, 1996, net sales rose 10.4% to $299.5 million versus sales of $271.4 million in fiscal year 1995. Operating income for the fiscal year increased 34.1% to $38.5 million from $28.7 million in 1995. Net income for 1996 increased to $8.1 million or $1.37 per share, from $1.9 million or $0.33 per share. The percentage increase in net income excluding the one-time charge in 1995 would have been 122%.

The Company completed its initial public offering on November 1, 1996, raising net proceeds of approximately $34.0 million. On a pro forma basis, assuming the public offering had occurred at the beginning of fiscal 1996 and that the proceeds were used to repay outstanding bank indebtedness, Synthetic Industries would have had net income of $5.8 million, or $0.65 per share, for the fourth quarter, and $9.9 million, or $1.12 per share, for the fiscal year ended September 30, 1996.

"The increases in sales and earnings reflect strength across all of the company's product lines,'' said Leonard Chill, President and Chief Executive Officer. "Synthetic Industries' carpet backing business has grown at a faster rate than the industry as a whole. We have also seen rapid growth in our construction and civil engineering business, due to increased sales of our geotextile and erosion control products and continued acceptance of the company's proprietary concrete reinforcement products."

Synthetic Industries, Inc. is one of the world's leading producers of polypropylene fabrics and fibers for the home furnishing, construction, environmental, recreational and agricultural industries. The Company's diverse mix of products are sold worldwide for such end-uses as carpet backing, geotextiles, erosion control, concrete reinforcement and furniture construction fabrics. The Company operates six manufacturing facilities in Georgia and Tennessee and has 2,100 employees. -0-
 (In thousands, except per share amounts)

 Fourth Quarter Ended Twelve Months Ended
 9/30/96 9/30/95 9/30/96 9/30/95

Net sales $87,472 $77,078 $299,532 $271,427
Cost of goods sold 57,100 57,756 208,321 194,706
Gross profit 30,372 19,322 91,211 76,721
Selling, general and
 administrative 14,862 13,424 50,145 45,468
Amortization of
 intangibles 648 648 2,592 2,566
Operating profit 14,862 5,250 38,474 28,687
Interest expense 5,696 5,669 23,472 23,251
Income before taxes 9,166 (419) 15,002 5,436
Provision for
 income taxes 3,850 200 6,900 3,500
Net income $ 5,316 $ (619) $ 8,102 $ 1,936
Net income per share $ 0.90 $ (0.10) $ 1.37 $ 0.33
Weighted average common
 and common equivalent
 outstanding 5,930,502 5,930,502 5,930,502 5,930,502

CONTACT: Joseph Sinicropi

Chief Financial Officer

Synthetic Industries, Inc.

(706) 375-3121, Ext. 1400


Edward Nebb/Jeffrey Zack

Morgen-Walke Associates

(212) 850-5600
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Publication:Business Wire
Date:Nov 25, 1996
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