U. S. PLASTIC LUMBER CORP. ANNOUNCES
FIRST QUARTER 2003 OPERATING RESULTS
Contact:
Mark S. Alsentzer, CEO
Michael D. Schmidt, Chief Financial Officer
561-394-3511
BOCA RATON, Fla.--(BUSINESS WIRE)--May 16, 2003--U.S. Plastic Lumber Corp. (Nasdaq:USPL) today announced its operating results for the three months ended March 31, 2003. The results and discussion that follow pertain solely to the Company's continuing Plastic Lumber operations, as USPL completed the previously announced sale of its environmental recycling and remediation business, Clean Earth, Inc., ("CEI") on September 9, 2002.
Revenues for the first quarter of 2003 were $11.2 million compared with $14.2 million for the same quarter in 2002, a decrease of 21%. The company attributed the decrease in part to not having sufficient inventory to meet the demand for its building products due to cash constraints and slower production rates for its newly formulated decking products. USPL also stated that the price increase implemented in early 2003 resulted in reduced orders of decking products as distributors chose not to stock as much inventory in advance of the spring selling season as they did in the first quarter of 2002. Loss from continuing operations and net loss in the first quarter of 2003 was $2.3 million, or $0.04 per basic and diluted share, as compared to loss from continuing operations $3.2 million, or $0.08 per basic and diluted share, in the first quarter of 2002, as reduction in gross margins in 2003 were more than offset by significantly lower interest expense and selling, general and administrative ("SG&A") expenses. Net loss for the first quarter of 2002 was $2.8 million, or $0.07 per basic and diluted share.
Mark Alsentzer, Chairman, CEO and President of USPL said, "Our liquidity was severely limited during most of the first quarter due to certain restrictions on our revolving credit facility. However, we have since made substantial progress in increasing line speeds and reducing scrap rates in the production of our new line of decking products. We expect to see continuous improvement in these areas throughout the remainder of the year."
As previously announced, USPL completed the sale of its cornerboard packaging business earlier this week. The proceeds will be used to pay down debt and for general working capital purposes. Alsentzer added, "The majority of the proceeds we received from the sale of our non-strategic cornerboard assets should provide us with sufficient resources to expand our building products, transportation and industrial profile businesses. The combination of the additional resources with our previously announced contracts and expanded distribution agreements will hopefully help USPL get back on track for the rest of the year."
U.S. Plastic Lumber Corp. is engaged in the manufacture of plastic lumber, returnable packaging and other value added products from recycled plastic. U. S. Plastic Lumber is the nation's largest producer of 100% HDPE recycled plastic lumber. Headquartered in Boca Raton, Florida, USPL is a highly integrated, nationwide processor of a wide range of products made from recycled plastic feedstocks. USPL creates high quality, competitive building materials, furnishings, and industrial supplies by processing plastic waste streams into purified, consistent products. USPL's products are environmentally responsible and are both aesthetically pleasing and maintenance friendly. They include such brand names as Carefree Xteriors(R), RecycleDesign(TM), Trimax(R), Earth Care(TM), and OEM products including Cyclewood(R). USPL currently operates three plastic manufacturing centers.
Certain statements and information included in this press release constitute ``forward-looking statements'' within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases "will likely result", "are expected to", "will continue", "is anticipated", "estimate", "projected", "intends to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to risks associated with the Company's credit facilities and liquidity, the ability to obtain adequate financing on commercially acceptable terms, economic conditions, demand for products and services of the Company, newly developing technologies, the Company's ability to compete, regulatory matters, protection of the Company's proprietary technology, the effects of competition from entities with greater financial resources than that possessed by the Company and shareholder dilution. Such factors could materially adversely affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussion of such factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.
U.S. PLASTIC LUMBER CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended March 31, 2003 and 2002
(Dollars in thousands except share and per share amounts)
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2003 2002
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Revenues, net: $11,216 $14,204
Cost of goods sold 10,526 11,047
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Gross Profit 690 3,157
Selling, General and Administrative 2,474 3,203
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Operating Loss (1,784) (46)
Other income 87 66
Interest expense 586 3,314
Provision for income taxes - -
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Loss from continuing operations (2,283) (3,294)
Discontinued operations:
Income (Loss) from operations
discontinued environmental
recycling segment - 484
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Income (loss) from discontinued operations - 484
Net loss (2,283) (2,810)
Preferred dividends - (177)
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Net loss attributable to common stockholders $(2,283) $(2,987)
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Net Loss per common share - Basic and diluted:
Loss from continuing operations $(0.04) $(0.08)
Income (loss) from discontinued operations - 0.01
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Net loss per common share $(0.04) $(0.07)
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Weighted average common shares
outstanding - basic and diluted 64,428,676 41,028,479
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CONTACT: U.S. Plastic Lumber Corp., Boca Raton
Mark S. Alsentzer or Michael D. Schmidt, 561/394-3511
or
KCSA Worldwide
Evan Smith or Erica Pettit, 212/896-1251 or 212/896-1248
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