Consolidated Container Company LLC Reports Financial Results for the First Quarter 2004
Ga Consolidated Containr via BizWire
ATLANTA--(BUSINESS WIRE)--April 29, 2004--Consolidated Container
Company LLC announced today that it reported first quarter revenues of
approximately $185.4 million, net loss of $3.1 million and Adjusted
EBITDA (as defined below) of approximately $21.3 million. This
compares to revenues of $184.5 million, net loss of $5.9 million and
Adjusted EBITDA of approximately $19.3 million for the same period a
year ago. After adjusting for higher average resin prices during the
first quarter of 2004 (which higher prices typically increase the
Company's revenue as they are passed through to customers), we
estimate that revenues would have been approximately $6.8 million less
than the first quarter of 2003. The $2.8 million improvement in net
loss and the increase in Adjusted EBITDA were both driven primarily by
lower direct labor and delivery costs, and lower selling, general and
administrative expenses.
The company is reporting Adjusted EBITDA, which it defines as net
income (loss) plus interest expense (net of interest income), income
taxes, depreciation, amortization (related to lump sum payments on
customer contracts, non-compete agreements, and acquired contracts),
and other non-cash items such as goodwill impairment, stock
compensation expense, and (gain) loss on sale of assets. Adjusted
EBITDA is presented because we believe that it provides meaningful
additional information concerning our operating results and our
ability to service our long-term debt and to fund our growth, and we
believe measures similar to Adjusted EBITDA are frequently used by
securities analysts, investors and other interested parties, in
addition to and not in lieu of GAAP results, to evaluate the
performance of our Company and of other companies in the rigid plastic
packaging industry. Adjusted EBITDA is not a measurement of financial
performance under GAAP and should not be considered as an alternative
to cash flows from operating activities or as a measure of liquidity
or an alternative to net income as indicators of our operating
performance or any other measures of performance derived in accordance
with GAAP. Our method of computation may or may not be comparable to
other similarly titled measures used by other companies.
A reconciliation of net loss to Adjusted EBITDA is as follows:
Three Months Ended
--------------------------------
March 31, March 31,
2004 2003
--------------- ----------------
Net loss $ (3,096) $ (5,895)
Interest expense 13,997 14,607
Depreciation 9,312 9,542
Amortization 317 949
Stock compensation expense (a) 110 200
Loss (gain) on disposal of assets 705 (135)
--------------- ----------------
Adjusted EBITDA $ 21,345 $ 19,268
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(a) Stock compensation expense resulted from our 2002 adoption of
Statement of Financial Accounting Standard No. 123.
With regard to the company's release of first quarter results,
Steve Macadam, President and Chief Executive Officer, stated, "We
continue to see signs of the financial and operational turnaround in
the company in our first quarter results. We have seen significant
quarter-over-quarter improvements for the last two quarters, and
believe this is a result of not only the significant efforts we have
put into rebuilding customer relationships and improving our
operational performance, but also the fact that we have been
successful in securing a significant amount of new business. Based on
our expectations for continued improvements in operational performance
and continued success in securing new business, we are optimistic that
we will continue to see improved results going forward."
Consolidated Container Company LLC, which was created in 1999
through the merger of Reid Plastics Inc. with the domestic plastic
packaging operations of Suiza Foods Corporation (a predecessor to Dean
Foods Company), is a leading North American developer, manufacturer,
and marketer of rigid plastic containers for many of the largest
branded consumer products and beverage companies in the world. We have
long-term customer relationships with many blue-chip companies
including: Dean Foods, DS Waters of America, Kroger, Nestle Waters
North America, National Dairy Holdings, Procter & Gamble, Coca-Cola
North America, Quaker Oats, Scotts and Colgate-Palmolive. We serve our
customers with a wide range of manufacturing capabilities and services
through a nationwide network of 61 strategically located manufacturing
facilities and a research, development and engineering center located
in Atlanta, Georgia. In addition, we have four international
manufacturing facilities in Canada, Mexico and Puerto Rico.
The statements other than statements of historical facts included
in this press release, including, without limitation, statements
regarding our future financial position, business strategy, and future
operational performance, are forward-looking statements, as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. We have based
these forward-looking statements on our current assumptions,
expectations and projections about future events. Such statements are
subject to certain risks, uncertainties, or assumptions, and
therefore, management can make no representations or warranties as to
the accuracy or reasonableness of such statements. Should one or more
of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those set forth in applicable forward-looking statements. These
statements may also involve risks and uncertainties that could cause
our actual results of operations or financial condition to materially
differ from our expectations in this press release, including, but not
limited to the costs and availability of raw materials, particularly
resins; increases in the costs of compliance with laws and
regulations, including environmental laws and regulations; the loss of
any of our major customers, including the risk that our customers will
purchase less of our products than we expect under requirements
contracts; unseasonable weather changes, particularly during the
spring and summer months; the ability to compete effectively
regionally and nationally; the ability to develop or adapt to new
technologies; our dependence on key management; our ability to obtain
additional financing or make payments on our debt; our high degree of
leverage and substantial indebtedness; regulatory developments,
industry conditions and market conditions; and general economic
conditions. Any forward-looking statements made herein speak only as
of the date hereof. We expressly disclaim any obligation or
undertaking to release publicly any updates or revisions to any such
statements, to reflect any change in our expectations with regard
thereto or any change in events, conditions, or circumstances on which
any such statement is based.
CONSOLIDATED CONTAINER COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(Amounts in thousands)
Three Months Ended
-----------------------
March 31, March 31,
2004 2003
----------- -----------
Net sales $ 185,428 $ 184,504
Cost of sales 162,448 162,957
----------- -----------
Gross profit 22,980 21,547
Selling, general and administrative expense (11,255) (12,445)
Amortization expense (9) (325)
Stock based compensation expense (110) (200)
(Loss) gain on disposal of assets (705) 135
----------- -----------
Operating income 10,901 8,712
Interest expense (13,997) (14,607)
----------- -----------
Net loss (3,096) (5,895)
Other comprehensive (loss) income:
Foreign currency translation adjustment (57) 116
----------- -----------
Comprehensive Loss $ (3,153) $ (5,779)
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