Numbers look good to me!
The company even bought back some stock. I'm still a buyer at below 4, if stock becomes available. Trading below 5 make this a hands off for most investors.
TORONTO--(BUSINESS WIRE)--June 7, 2000--Polyair Inter Pack Inc. (TSE and AMEX: PPK), a leading manufacturer of protective packaging and swimming pool accessory products, today reported results for its second quarter ended April 30, 2000. As of the first quarter of fiscal 2000, the Company began reporting results in United States dollars. The results of prior year periods have also been converted to United States dollars for comparison purposes at the exchange rate in effect on October 31, 1999 (USD$1.00 = CAD$1.47)
Sales for the second quarter of fiscal 2000 increased 31% to $25.7 million, up from $19.6 million in the comparable 1999 period. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 37% to $3.0 million in the second quarter of the current fiscal year from $2.2 million in the comparable 1999 period. Net earnings increased 36% to $1,028,000 or $0.15 per basic and fully diluted share from $754,000 or $0.11 per basic and fully diluted share in the comparable 1999 period.
For the six months ended April 30, 2000, sales increased 31% to $44.8 million from $34.1 million in the comparable 1999 period. EBITDA climbed 48% to $3.7 million in the first six months of fiscal 2000 from $2.5 million in the comparable 1999 period. Net earnings for the fiscal 2000 six month period increased to $732,000 or $0.11 per basic and fully diluted share, compared to $ 416,000 or $0.06 per basic and fully diluted share in the comparable 1999 period.
Sales of packaging products increased 30% to $32.8 million for the six month period ended April 30, 2000 from $25.2 million in the comparable 1999 period. Sales of pool products for the first six months of fiscal 2000 rose 35% to $12.0 million from $8.9 million in the comparable 1999 period.
During the second quarter of fiscal 2000, the Company purchased 25,200 shares of stock at an average cost of USD $4.02 pursuant to a Normal Course Issuer Bid which commenced on November 22, 1999. Through April 30, 2000, Polyair has purchased a total of 183,800 shares of stock under this current and one predecessor Normal Course Issuer Bid.
Henry Schnurbach, President and Chief Executive Officer of Polyair Inter Pack, commented, "The markets for our packaging and pool products continue to expand. In the packaging division, the new products we have introduced over the last year are attracting a rapidly growing customer base. While we are seeing solid growth across a wide range of our product lines, the AirSpace Pillow packaging system which is primarily used by e-commerce companies is enjoying very strong demand and has been one of our most successful product launches yet. Pool product sales have been exceptionally strong and continue to experience very active order volume. Our pool division is benefiting from the Internet as well, as our distributors have been successfully using the world wide web to highlight Cantar pool products."
Mr. Schnurbach continued, "To complement the strong internal growth we are achieving, we are pursuing a combination of equipment upgrades, plant expansions, relocations, new plant openings and acquisitions. Our goal is to continue to seek and acquire packaging and pool companies that will complement our existing operations and increase our ability to further grow our business. We believe we have the people in place that will allow us to accelerate our growth through increased sales of new and existing products, through more efficient operating practices and through accretive acquisitions."
Polyair Inter Pack Inc. (www.polyair.com and www.cantar.com) manufactures protective packaging and swimming pool accessory products, which are sold through a network of some 2,100 distributors across North America. Polyair operates ten manufacturing facilities, seven of which are based in the United States where the company generates approximately 86% of its annual sales. The shares are traded on the Toronto and The American Stock Exchange under the symbol "PPK".
Certain information included in this news release contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company and the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Polyair Inter Pack Inc.
POLYAIR INTER PACK INC. - SECOND QUARTER RESULTS, 2000
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CONSOLIDATED BALANCE SHEETS
As at April 29, 2000
(in thousands of United States dollars)
(UNAUDITED) 2000 1999
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ASSETS
Current Assets:
Cash and short-term investments $ 2,124 $ 3,410
Accounts receivable, net of allowances
for doubtful accounts 17,887 13,162
Income taxes receivable 1,486 710
Inventory 14,832 11,042
Prepaid expenses and other 1,223 632
Future income tax assets 195 126
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37,747 29,082
Capital assets, net 27,293 22,178
Future income tax assets 911 474
Minority Interest 0 0
Other assets, net 1,180 560
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67,131 52,294
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness 11,873 9,640
Accounts payable and accrued liabilities 18,363 11,547
Income taxes payable 0 0
Current portion of long term debt 2,673 1,472
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32,909 22,659
Long-term debt 14,867 13,664
Future income tax liabilities 1,731 870
Shareholders' equity:
Capital stock 10,594 10,674
Retained earnings 6,670 4,119
Cumulative translation adjustment 360 308
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17,624 15,101
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$ 67,131 $ 52,294
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