FiberMark Announces Fourth Consecutive Year Of Record Earnings For
1997
BRATTLEBORO, Vt.--(BUSINESS WIRE)--January 30, 1998--FiberMark, Inc. (NYSE:FMK - news) today announced
record results for the year ended December 31, 1997 and quarterly earnings equal to the record level established in the third
quarter.
Net earnings for the fourth quarter of 1997 at $3.3 million or $.50 per share (diluted) equaled the record level established in
the third quarter of this year and surpassed the comparable 1996 quarter by 25%. Earnings for the full year of 1997 increased
to $12.3 million or $1.90 per share (diluted), a 60% increase over 1996. The change in FASB rules for calculating the dilutive
effect of stock options, which was implemented in the fourth quarter of this year, effectively reduced full year 1997 earnings
per share by $.04. Results for both years exclude the effect of extraordinary and non-recurring items.
Net sales for the quarter increased by 25% to $58.7 million as compared to $47.0 million for the comparable quarter in 1996.
Revenues for the product lines acquired from the October 31, 1996 acquisitions of Custom Papers Group and Arcon Coating
Mills increased by $12.2 million. Fourth quarter sales for the markets in which the company was established prior to the
acquisitions were $26.2 million, down 2% from the comparable quarter in 1996. Sales in the office products market decreased
by 8.2% to $13.8 million, compared to $15.0 million in the fourth quarter of 1996. Durable specialty sales were $8.2 million, a
9% increase compared to $7.5 million for the comparable 1996 quarter. The book cover component of our technical specialty
sales grew 3.6% to $4.0 million as compared to $3.8 million in the fourth quarter of 1996.
For the full year ended December 31, 1997, net sales grew 88.7% to $235.4 million, compared to $124.7 million during
1996. The October 31, 1996 acquisitions added $107.6 million to 1997 sales. Net sales in 1997 for the balance of the
company's markets grew 2.8% to $107.5 million from $104.5 million in 1996. Office products sales grew 2.5% in 1997 to
$55.8 million compared to $54.4 million in 1996. Sales of durable specialties increased 6.8% to $35.0 million from $32.8
million in 1996. Book cover sales, within technical specialties, fell 1% to $15.6 million from $15.7 million.
''Continued productivity gains at several facilities, favorable and improving raw material costs, and overall steady demand for
our products were the primary factors behind our strong earnings,'' explained Alex Kwader, President and Chief Executive
Officer. ''As we move into the first quarter 1998, order levels have slackened in some markets compared to the strong pace
seen throughout much of 1997. On the cost side, raw material pricing shows signs of continued improvement. Additionally, the
recent consolidation of Arcon's Oceanside facility into our Quakertown, PA facility and the consolidation of Owensboro into
our other facilities will provide further productivity gains as we move into 1998,'' Kwader added. ''Finally, the Gessner
acquisition, completed in January of this year, is expected to be immediately accretive to earnings,'' according to Kwader.
FiberMark is a leading producer of specialty fiber-based materials meeting industrial and consumer needs worldwide.
Products cover a broad spectrum including filter materials for the automotive, heavy equipment, beverage and fast food
industries; cover and presentation materials for office and school supplies; specialty tape base and labels for medical tapes and
jeans labels; and technical specialties such as photographic and graphic arts materials, transformer paper, and base materials
for printed circuit boards, book covers and abrasives. The company, a leader in the use of recycled materials, currently has ten
facilities throughout the United States and Europe.
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This press release contains forward-looking statements. Actual results may differ depending on the ability of the company to
complete its public stock offering, the economy, and other factors discussed in the company's Form S-3 filed with the SEC
December 15, 1997.
Web address: fibermark.com |
