|
ATLANTIS PLASTICS ANNOUNCES
2000 FOURTH QUARTER AND FULL YEAR RESULTS
ATLANTA, GA
– (February 5, 2001) Atlantis Plastics, Inc. (ASE:AGH) today announced
its operating results for the fiscal year and fourth quarter ended
December 31, 2000. Net sales for 2000 totaled $250.3 million compared with
$254.1 million for 1999. Net income for the 2000 fiscal year was $0.2
million, or $0.03 per diluted share compared with $9.2 million, or $1.18
per diluted share in 1999.
For the fourth quarter of 2000 net loss
was $0.5 million, or $(0.07) per diluted share compared with net income of
$2.0 million, or $0.25 per diluted share in the fourth quarter of 1999.
Net sales for the fourth quarter of 2000 were $57.3 million, or 12% below
net sales of $64.9 million in the same period of 1999.
For the fourth quarter of 2000, sales
volume (measured in pounds) for the plastic films segment declined 7% from
the prior year due primarily to reductions in customer inventory levels in
both stretch and custom film products and continued weakness in demand.
Sales volume, (measured in pounds) for the year ended December 31, 2000 in
the plastic films segment declined 5% from prior year levels. Sales volume
in the molded products segment declined 7% for the quarter ended December
31, 2000 compared to the fourth quarter of 1999 due primarily to continued
weakness in the home building and durable goods sectors. For the year
ended December 31, 2000 the molded products segment’s net sales were 2%
lower than the prior year.
Earnings before interest, taxes,
depreciation and amortization ("EBITDA") for the year ended
December 31, 2000 were $22.3 million, compared with $35.1 million for
1999. Fourth quarter 2000 EBITDA was $4.8 million, compared with $8.5
million for the year ended December 31, 1999. Atlantis’ gross margin and
operating margin for the fiscal year 2000 were 15%, and 5% respectively,
compared with 20% and 10% respectively, for 1999.
Selling, general and administrative
expenses ("SG&A") were $25.7 million in 2000, reflecting an
increase of 2% over 1999. For the quarter ended December 31, 2000 SG&A
expense was $6.7 million, compared with $6.2 million for the quarter ended
December 31, 1999. Net interest expense for the year and quarter ended
December 31, 2000 was $10.2 million and $2.6 million, respectively,
compared with $9.2 million and $2.4 million, respectively, for the same
periods ended December 31, 1999. Net debt (total debt less cash), at
December 31, 2000 was $96.1 million compared with $89.4 million at
December 31, 1999. The increase in net debt was a result of increased
capital expenditures associated with the company’s previously announced
expansion plans and the purchase of Extrusion Masters, Inc., a custom
profile extruder of thermoplastic parts located in Elkhart, Indiana.
Anthony F. Bova, President and Chief
Executive Officer, said, "We experienced decreased profitability in
both stretch and custom films due to lower margins resulting primarily
from our inability to pass on the rapid increase in resin price to our
customers in the first half of the year. While margins improved slightly
in the last quarter, industry over capacity continued to exert strong
price pressure. In addition, our molded products segment was negatively
impacted by the weakness in the automotive, appliance, and home building
sectors."
"While market conditions were
difficult in 2000, we have continued to take steps to strengthen our
foundation for growth and improved profitability in 2001. Film production
will begin in late March 2001 on our new state of the art multi-layer cast
line for custom film. Our new stretch film plant located in Fontana,
California will begin production in February 2001. We have also taken
aggressive steps in all of our businesses to identify additional cost
reduction and production efficiency opportunities to reduce both fixed and
variable costs throughout our organization."
Atlantis Plastics, Inc. is a leading
U.S. manufacturer of polyethylene stretch and custom films and molded
plastic products. Stretch films are used to wrap pallets of materials for
shipping or storage, and custom films, which are made-to-order specialty
film products, are used in the industrial and packaging markets. Atlantis’
molded plastic products are used primarily in the appliance, automotive,
agricultural, building supply, and recreational vehicle industries.
Forward-looking statements may include,
but are not limited to, projections of revenues, income or losses, capital
expenditures, raw material prices, plans for future operations, financing
needs, compliance with financial covenants in loan agreements, plans for
liquidation or sale of assets or businesses, plans relating to products or
services of the Company (including dates of commencement of production),
assessments of materiality, predictions of future events, the ability to
obtain additional financing, the Company’s ability to meet obligations
as they become due, the impact of pending and possible litigation, as well
as assumptions relating to the foregoing. In addition, when used in this
discussion, the words "anticipates," "believes,"
"estimates," "expects," "intends,"
"plans" and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are inherently
subject to risks and uncertainties, including, but not limited to, the
impact of leverage, dependence on major customers, fluctuating demand for
the Company’s products, risks in product and technology development,
fluctuating resin prices, competition, litigation, labor disputes, capital
requirements, and other risk factors detailed in the Company’s
Securities and Exchange Commission filings, some of which cannot be
predicted or quantified based on current expectations.
Additional information is available on
the Internet at http://www.atlantisstock.com.
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ATLANTIS PLASTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
|
|
|
|
Three Months Ended |
|
Twelve Months
Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2000 |
|
1999 |
|
|
2000 |
|
1999 |
|
Net
sales................................................................. |
$57,334 |
|
$64,926 |
|
|
$250,265 |
|
$254,055 |
|
|
|
|
|
|
|
|
|
|
Cost of
sales......................................................... |
48,677 |
|
52,836 |
|
|
213,165 |
|
203,943 |
|
Gross profit.............................................. |
8,657 |
|
12,090 |
|
|
37,100 |
|
50,112 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses.. |
6,703 |
|
6,201 |
|
|
25,735 |
|
25,127 |
|
Operating income .................................. |
1,954 |
|
5,889 |
|
|
11,365 |
|
24,985 |
|
|
|
|
|
|
|
|
|
|
Net interest expense............................................ |
(2,605) |
|
(2,386) |
|
|
(10,224) |
|
(9,186) |
|
(Loss) income from continuing operations before income
taxes.......................... |
(651) |
|
3,503 |
|
|
1,141 |
|
15,799 |
|
|
|
|
|
|
|
|
|
|
Income tax benefit (provision)............................ |
109 |
|
(1,528) |
|
|
(949) |
|
(6,557) |
|
Net (loss) income...................................... |
$ (542) |
|
$ 1,975 |
|
|
$ 192 |
|
$ 9,242 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common Share (Basic) |
|
|
|
|
|
|
|
|
|
|
Net (loss) income..................................... |
($0.07) |
|
$0.27 |
|
|
$0.03 |
|
$1.23 |
|
Weighted -average number of shares outstanding - Basic |
7,534 |
|
7,441 |
|
|
7,520 |
|
7,526 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common Share (Diluted) |
|
|
|
|
|
|
|
|
|
|
Net (loss) income.................................... |
($0.07) |
|
$0.25 |
|
|
$0.03 |
|
$1.18 |
|
Weighted -average number of shares outstanding - Diluted |
7,534 |
|
7,835 |
|
|
7,619 |
|
7,863 |
|
ATLANTIS PLASTICS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands) |
|
|
December 31, 2000 |
|
December 31, 1999 |
|
ASSETS |
|
|
|
|
|
Cash and cash
equivalents................................................ |
|
$2,445 |
|
$2,288 |
|
Accounts receivable,
net................................................... |
|
25,227 |
|
30,987 |
|
Inventories........................................................................... |
|
18,346 |
|
17,556 |
|
Other current
assets........................................................... |
|
7,958 |
|
7,248 |
|
Current
assets................................................................ |
|
53,976 |
|
58,079 |
| |
|
|
|
|
|
Property and equipment,
net............................................. |
|
71,846 |
|
65,580 |
|
Goodwill, net of accumulated amortization...................... |
|
48,133 |
|
45,957 |
|
Other
assets......................................................................... |
|
511 |
|
1,050 |
|
Total
assets..................................................................... |
|
$174,466 |
|
$170,666 |
| |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
| |
|
|
|
|
|
Accounts payable and accrued expenses....................... |
|
$18,188 |
|
$22,565 |
|
Current portion of long-term
debt.................................... |
|
19,025 |
|
10,846 |
|
Current
liabilities............................................................ |
|
37,213 |
|
33,411 |
| |
|
|
|
|
|
Long-term debt, less current
portion................................ |
|
79,534 |
|
80,888 |
|
Deferred income
taxes......................................................... |
|
11,355 |
|
10,258 |
|
Other
liabilities..................................................................... |
|
51 |
|
95 |
|
Total
liabilities................................................................. |
|
128,153 |
|
124,652 |
| |
|
|
|
|
|
Commitments and contingencies |
|
- |
|
- |
| |
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Class A Common Stock, $.10 par value,
20,000,000
shares authorized, 4,856,846 and
4,752,991 shares
issued and outstanding in 2000 and
1999..................... |
|
|
|
|
|
|
486 |
|
475 |
|
Class B Common Stock, $.10 par value,
7,000,000
shares authorized, 2,676,947
shares issued and
outstanding in 2000 and
1999......................................... |
|
|
|
|
|
|
268 |
|
268 |
|
Additional paid-in
capital.................................................. |
|
10,679 |
|
10,046 |
|
Notes receivable from sale of Common Stock................ |
|
(1,625) |
|
(1,410) |
|
Retained
earnings............................................................... |
|
36,505 |
|
36,635 |
|
Total shareholders'
equity............................................ |
|
46,313 |
|
46,014 |
|
Total liabilities and shareholders'
equity................... |
|
$174,466 |
|
$170,666 |
|
SEGMENT/TREND INFORMATION |
|
($ In millions) |
|
|
2000 |
|
1999 |
|
|
Q4 |
Q3 |
Q2 |
|
Q1 |
|
Q4 |
|
Q3 |
|
Q2 |
|
Q1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plastic Films |
$ 40.9 |
|
$ 44.5 |
|
$ 45.9 |
|
$ 43.6 |
|
$ 47.2 |
|
$ 44.7 |
|
$ 44.5 |
|
$ 40.7 |
|
Molded Products |
16.5 |
|
18.7 |
|
19.3 |
|
20.9 |
|
17.7 |
|
20.4 |
|
20.5 |
|
18.3 |
|
Total |
$ 57.4 |
|
$ 63.2 |
|
$ 65.2 |
|
$ 64.5 |
|
$ 64.9 |
|
$ 65.1 |
|
$ 65.0 |
|
$ 59.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA** |
$4.8 |
|
$4.4 |
|
$6.0 |
|
$7.1 |
|
$8.5 |
|
$9.0 |
|
$9.2 |
|
$8.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plastic Films |
15% |
|
11% |
|
13% |
|
15% |
|
17% |
|
19% |
|
21% |
|
22% |
|
Molded Products |
15% |
|
16% |
|
18% |
|
21% |
|
22% |
|
19% |
|
19% |
|
18% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
15% |
|
13% |
|
15% |
|
17% |
|
19% |
|
19% |
|
20% |
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plastic Films |
4% |
|
1% |
|
4% |
|
5% |
|
9% |
|
10% |
|
11% |
|
12% |
|
Molded Products |
3% |
|
6% |
|
9% |
|
10% |
|
10% |
|
10% |
|
9% |
|
7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
3% |
|
3% |
|
5% |
|
7% |
|
9% |
|
10% |
|
10% |
|
10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST EXPENSE |
$2.6 |
|
$2.6 |
|
$2.6 |
|
$2.5 |
|
$2.4 |
|
$2.2 |
|
$2.3 |
|
$2.3 |
|
**Earnings before interest, taxes,depreciation, and amortization |
|
|
|
|
|
|
|
|
|
|
|
ATLANTIS PLASTICS, INC. |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in thousands) |
|
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
|
2000 |
|
1999 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
Net income
.................................................................................................... |
|
$192 |
|
$9,242 |
|
Adjustments to reconcile net income to |
|
|
|
|
net cash provided by operating activities: |
|
|
|
|
Depreciation............................................................................................. |
|
9,334 |
|
8,486 |
|
Loss on disposal of
assets.................................................................... |
|
122 |
|
62 |
|
Amortization of
goodwill....................................................................... |
|
1,594 |
|
1,572 |
|
Loan fee and other
amortization........................................................... |
|
522 |
|
390 |
|
Interest
receivable.................................................................................. |
|
(140) |
|
(100) |
|
Deferred income
taxes........................................................................... |
|
1,097 |
|
109 |
|
Changes in operating assets and liabilities,
net................................. |
|
722 |
|
(7,006) |
|
Total
adjustments.............................................................................. |
|
13,251 |
|
3,513 |
|
Net
cash provided by operating
activities.................................. |
|
13,443 |
|
12,755 |
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
Capital
expenditures................................................................................... |
|
(15,382) |
|
(15,911) |
|
Purchase of
business................................................................................. |
(4,864) |
|
- |
|
Proceeds from asset
dispositions............................................................. |
|
68 |
|
47 |
|
Net cash
used in investing
activities............................................. |
|
(20,178) |
|
(15,864) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
Borrowings under revolving credit
agreements..................................... |
|
9,400 |
|
7,100 |
|
Payments on long-term
debt..................................................................... |
|
(2,575) |
|
(2,524) |
|
Payments on notes receivable from
shareholders................................. |
|
193 |
|
75 |
|
Purchase of common
stock....................................................................... |
|
(388) |
|
(2,325) |
|
Proceeds from exercise of stock
options................................................ |
|
262 |
|
192 |
|
Net cash
provided by financing activities................................... |
|
6,892 |
|
2,518 |
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents........................ |
|
157 |
|
(591) |
|
|
|
|
|
|
Cash and cash equivalents at beginning of
year................................. |
|
2,288 |
|
2,879 |
|
|
|
|
|
|
Cash and cash equivalents at end of
year............................................ |
|
$2,445 |
|
$2,288 |
|