News

Archive for June, 1999

AEP INDUSTRIES FILES REGISTRATION STATEMENT

Friday, June 4th, 1999

CONTACT: Paul Feeney
Executive Vice President and
Chief Financial Officer
(201) 807-2330
e-mail: feeneyp@aepinc.com

FOR IMMEDIATE RELEASE

South Hackensack, NJ, June 4, 1999 – AEP Industries Inc. (Nasdaq: AEPI, “the Company”) today filed a registration statement with the Securities Exchange Commission in connection with the proposed offering of common stock of the Company. The 2,412,818 shares of the Company to be sold in connection with proposed offering will be offered by the selling stockholder Borden, Inc., representing Borden’s entire 33% interest in the Company. J.P. Morgan & Co. will lead manage and Lehman Brothers Inc. will co-manage the offering. AEP is a leading worldwide manufacturer of plastic packaging films.

AEP Industries Inc. manufacturers, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company has operations in 11 countries throughout North America, Europe and Asia/Pacific.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer or sale would be unlawful prior to registration or qualification under the securities law of any such state.

AEP INDUSTRIES INC. REPORTS FISCAL 1999 SECOND QUARTER RESULTS

Thursday, June 3rd, 1999

CONTACT: Paul Feeney
Executive Vice President and
Chief Financial Officer
(201) 807-2330
e-mail: feeneyp@aepinc.com

FOR IMMEDIATE RELEASE

South Hackensack, NJ, June 3, 1999 – AEP Industries Inc. (Nasdaq: AEPI) today reported the results for its second quarter ended April 30, 1999.

Net sales from continuing operations for the fiscal 1999 second quarter totaled $165,754,000 compared with $169,667,000 in the same quarter last year. For the six months ended April 30, 1999, net sales from continuing operations were $317,652,000 versus $338,045,000 for the same period last year. The reduction in sales reflects a similar reduction in raw material costs. Volume increased nine percent for the quarter and five percent year to date compared to the prior period.

Income from continuing operations for the quarter amounted to $2,071,000, or $0.28 per share (diluted), compared to $1,187,000, or $0.16 per share (diluted) for the fiscal second quarter last year. For the six month period ended April 30, 1999, income from continuing operations was $3,906,000, or $0.54 per share (diluted), compared to $3,071,000, or $0.42 per share (diluted) for the same period last in 1998. Gross profit in the fiscal 1999 period reflects a one time restructuring charge of $1,457,000 during the current quarter, related to employee severance in AEP’s Belgium operations. Without the restructuring charge, AEP would have increased its income from continuing operations by an additional $874,000, or $0.12 per share (diluted).

Additionally, AEP reported a loss on the disposal of discontinued operations of $793,000, or $0.11 per share (diluted) during the quarter. This relates to the discontinuation of its Proponite business. During the 1998 second quarter, the Company reported a loss from discontinued operations of $1,757,000, or $0.24 per share (diluted). For the six month period ended April 30, 1999, there was a loss from discontinued operations of $18,394,000, or $2.53 per share (diluted), compared with a loss from discontinued operations of $2,387,000, or $0.33 per share (diluted) in the prior year period. The 1998 loss reflects the disposal of AEP’s Rigid Plastics businesses.

Net income for the quarter ended April 30, 1999 was $1,278,000, or $0.17 per share (diluted), compared to a loss of $570,000, or $0.08 per share (diluted), for the same period last year. For the first half of fiscal 1999, the Company reported a loss of $14,488,000, or $1.99 per share (diluted), compared to net income of $684,000, or $0.09 per share (diluted).

“These results are in line with our expectations,” said Brendan Barba, Chairman and Chief Executive Officer of AEP. “During the past year, we have taken the necessary steps to implement our strategy of focusing on profitable markets within the flexible packaging industry. As a result, our gross margins for the quarter have improved,” Barba added.

Despite lower sales from continuing operations and the restructuring charge, gross profit as a percentage of sales for the second quarter of fiscal 1999 increased to 24.7 percent compared with 22.4 percent for the same period last year. The increase was attributable to reduced raw materials cost, an increase in volume and a shift in the product mix of the Company’s North American operations to higher margin products. This is the fifth consecutive quarter that AEP has improved its gross margins.

Volume from continuing operations worldwide increased nine percent compared with last year’s second quarter results. In the second quarter of fiscal 1999, North American operations experienced a volume increase of eight percent over the same period last year. Europe also had strong growth with a 17 percent increase in volume. The Company notes volume decreased by seven percent in Australia resulting from shut downs in connection with consolidation of that business, which is now complete.

“Results for the second quarter reflect margin under-performance in our foreign operation due to difficult but improving economic conditions. The Company expects the continued implementation of its vigorous cost cutting programs in these businesses will appropriately position the company for future growth. Looking forward, long-term trends are encouraging, and we remain dedicated to further enhancing shareholder value,” Barba concluded.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company has operations in 11 countries throughout North America, Europe and Asia/Pacific.

Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.