( BW)(GA-ATLANTIS-PLASTICS)(AGH) Atlantis Plastics Announces First Quarter Results Business Editors ATLANTA--(BUSINESS WIRE)--May 2, 2000--Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the first quarter ended March 31, 2000. Net income for the first quarter was $1.1 million, or $0.14 per diluted share, compared to $2.1 million, or $0.27 per diluted share in the first quarter of 1999. Net sales for the first quarter of 2000 were $64.5 million, an increase of 9% over the first quarter of 1999. Sales volume in Atlantis' molded products segment increased 14% from the first quarter of 1999 due primarily to strong volume from the appliance sector and new business. In the Company's plastic films segment, sales increased 7% over 1999 due to higher selling prices resulting from substantial increases in resin prices. After a stronger month in March 2000, Atlantis' films volume (measured in pounds) for the first quarter of 2000 was 6% below volume for the first quarter of 1999. Earlier, the Company reported that films volume through February 2000 was down 9% from the first two months of 1999. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the first quarter of 2000 was $7.1 million compared with $8.4 million for the year earlier period. Atlantis' gross margin for the most recent quarter was 17% compared with 21% for the comparable 1999 period, while operating margin was 7% compared with 10% in the year earlier period. Gross margin increased to 21% from 18% in the first quarter of 1999 in the molded products segment as a result of increased volume and continued cost improvement measures implemented over the past 15 months. In the plastic films segment, resin price increases squeezed gross margin to 15% versus 22% in the year earlier period. For the first quarter of 2000 selling, general and administrative ("SG&A") expense increased 1% over the first quarter 1999 to $6.6 million. Net interest expense increased to $2.5 million from $2.3 million due primarily to 1999 capital expenditures associated with the Company's previously announced expansion programs. During the first quarter of 2000, the Company repurchased 17,350 shares of Class A Common Stock at a total cost of $146,000. Net debt (total debt less cash) stood at $89.9 million as of March 31, 2000 compared with $89.4 million as of December 31, 1999. Anthony F. Bova, President and Chief Executive Officer, said, "It is very clear that the rapid rise in resin prices since early 1999 significantly impacted operating margins in our films business compared with year earlier results. More recent energy cost increases have exacerbated this situation. However, we are encouraged by strong volume in our stretch film business in March and April 2000. We continue to reap the benefits of our ongoing profit improvement efforts and increased volume in the molded products segment, particularly in our injection molding business." 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, 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, 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. -0- *T ATLANTIS PLASTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited - in thousands, except per share data) Three Months Ended March 31, ------------------- 2000 1999 ------------------- Net sales.....................................$64,474 $58,973 Cost of sales..................................53,482 46,559 ------- ------- Gross profit.................................10,992 12,414 Selling, general and administrative expenses....6,576 6,500 ------- ------- Operating income .............................4,416 5,914 Net interest expense...........................(2,506) (2,315) ------- ------- Income from continuing operations before income taxes.................................1,910 3,599 Income tax provision.............................(851) (1,493) ------- -------- Net income ..................................$1,059 $2,106 ======= ======== Earnings per Common Share (Basic) ------- -------- Net income ...................................$0.14 $0.28 ======= ========= Weighted -average number of shares outstanding - Basic 7,503 7,486 Earnings per Common Share (Diluted) ------- --------- Net income ...................................$0.14 $0.27 ======= ========= Weighted -average number of shares outstanding - Diluted 7,760 7,743 ATLANTIS PLASTICS, INC. CONSOLIDATED BALANCE SHEETS (unaudited-in-thousands) March 31, December 31, 2000 1999 --------- ----------- ASSETS Cash and cash equivalents.....................$2,062 $2,288 Accounts receivable, net......................31,523 30,987 Inventories...................................17,933 17,556 Other current assets...........................5,102 7,248 ---------- ----------- Current assets............................56,620 58,079 Property and equipment, net...................66,150 65,580 Goodwill, net of accumulated amortization.....45,590 45,957 Other assets.....................................938 1,050 ---------- ----------- Total assets............................$169,298 $170,666 ========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses........$19,615 $22,565 Current portion of long-term debt.............10,966 10,846 ---------- ----------- Current liabilities.......................30,581 33,411 Long-term debt, less current portion..........80,995 80,888 Deferred income taxes.........................10,280 10,258 Other liabilities............................. - 95 ---------- ----------- Total liabilities........................121,856 124,652 ---------- ----------- Commitments and contingencies - - Shareholders' equity: Class A Common Stock, $.10 par value, 20,000,000 shares authorized, 4,861,366 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..................10,617 10,046 Notes receivable from sale of Common Stock..(1,502) (1,410) Retained earnings...........................37,573 36,635 --------- ---------- Total shareholders' equity................47,442 46,014 --------- ---------- Total liabilities and shareholders' equity.................................$169,298 $170,666 ========= ========== SEGMENT/TREND INFORMATION ($ In millions) 2000 1999 --------- -------------------------------- Q1 Q4 Q3 Q2 Q1 -- -- -- -- -- NET SALES Plastic Films $ 43.6 $ 47.2 $ 44.7 $ 44.5 $ 40.7 Molded Products 20.9 17.7 20.4 20.5 18.3 --------- -------- -------- ------ ------- Total $ 64.5 $ 64.9 $ 65.1 $ 65.0 $ 59.0 ========= ======== ======== ====== ======= EBITDA(b) $7.1 $8.5 $9.0 $9.2 $8.4 GROSS PROFIT Plastic Films 15% 17% 19% 21% 22% Molded products 21% 22% 19% 19% 18% Total 17% 19% 19% 20% 21% OPERATING INCOME Plastic Films 5% 9% 10% 11% 12% Molded Products 10% 10% 10% 9% 7% Total 7% 9% 10% 10% 10% NET INTEREST EXPENSE $2.5 $2.4 $2.2 $2.3 $2.3 (b) Earnings before interest, taxes, depreciation, and amortization *T --30--jar/mi* CONTACT: Trivest, Miami Patricia C. Johnson Specialist, Corporate Communications 305/858-2200